Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2021	Feb. 11, 2022	Jun. 30, 2021
Entity Information [Line Items]
Document Type	10-K
Entity Registrant Name	MetLife, Inc.
Document Annual Report	true
Document Period End Date	Dec. 31, 2021
Document Transition Report	false
Entity File Number	001-15787
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-4075851
Entity Address, Address Line One	200 Park Avenue,
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10166-0188
City Area Code	212
Local Phone Number	578-9500
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001099219
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		825,078,244
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Public Float			$ 51.5
Documents Incorporated by Reference [Text Block]	DOCUMENTS INCORPORATED BY REFERENCE Part III of this Form 10-K incorporates by reference certain information from the registrant’s definitive proxy statement for the Annual Meeting of Shareholders to be held on June 21, 2022, to be filed by the registrant with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the year ended December 31, 2021.
ICFR Auditor Attestation Flag	true
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01
Trading Symbol	MET
Security Exchange Name	NYSE
Floating Rate Non-Cumulative Preferred Stock, Series A, par value $0.01
Entity Information [Line Items]
Title of 12(b) Security	Floating Rate Non-Cumulative Preferred Stock, Series A, par value $0.01
Trading Symbol	MET PRA
Security Exchange Name	NYSE
Depositary Shares each representing a 1/1,000th interest in a share of 5.625% Non-Cumulative Preferred Stock, Series E
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares each representing a 1/1,000th interest in a share of 5.625% Non-Cumulative Preferred Stock, Series E
Trading Symbol	MET PRE
Security Exchange Name	NYSE
Depositary Shares, each representing a 1/1,000th interest in a share of 4.75% Non-Cumulative Preferred Stock, Series F
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1,000th interest in a share of 4.75% Non-Cumulative Preferred Stock, Series F
Trading Symbol	MET PRF
Security Exchange Name	NYSE
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D, par value $0.01
Entity Information [Line Items]
Title of 12(g) Security	Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D, par value $0.01
Fixed Rate Reset Non-Cumulative Preferred Stock, Series G, par value $0.01
Entity Information [Line Items]
Title of 12(g) Security	Fixed Rate Reset Non-Cumulative Preferred Stock, Series G, par value $0.01

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2021
Audit Information [Abstract]
Auditor Name	DELOITTE & TOUCHE LLP
Auditor Firm ID	34
Auditor Location	New York, New York

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $310,884 and $310,811, respectively; allowance for credit loss of $91 and $81, respectively)	$ 340,274	$ 354,809
Equity securities, at estimated fair value	1,269	1,079
Contractholder-directed equity securities and fair value option securities, at estimated fair value	12,142	13,319
Mortgage loans (net of allowance for credit loss of $634 and $590, respectively; includes $127 and $165, respectively, under the fair value option)	79,353	83,919
Policy loans	9,111	9,493
Real estate and real estate joint ventures (includes $240 and $169, respectively, under the fair value option and $175 and $128, respectively, of real estate held-for-sale)	12,216	11,933
Other limited partnership interests	14,625	9,470
Short-term investments, principally at estimated fair value	7,176	3,904
Other invested assets (includes $1,930 and $2,156, respectively, of leveraged and direct financing leases; $351 and $332, respectively, relating to variable interest entities and allowance for credit loss of $40 and $44, respectively)	18,655	20,593
Total investments	494,821	508,519
Cash and cash equivalents, principally at estimated fair value	20,047	19,795
Accrued investment income	3,185	3,388
Premiums, reinsurance and other receivables	17,149	17,870
Deferred policy acquisition costs and value of business acquired	16,061	16,389
Current income tax recoverable	184	0
Goodwill	9,535	10,112
Assets held-for-sale	7,238	7,418
Other assets	11,615	11,685
Separate account assets	179,873	199,970
Total assets	759,708	795,146
Liabilities
Future policy benefits	199,721	206,656
Policyholder account balances	203,473	205,176
Other policy-related balances	17,751	17,101
Policyholder dividends payable	478	587
Policyholder dividend obligation	1,682	2,969
Payables for collateral under securities loaned and other transactions	31,920	29,475
Short-term debt	341	393
Long-term debt	13,933	14,603
Collateral financing arrangement	766	845
Junior subordinated debt securities	3,156	3,153
Current income tax payable	0	129
Deferred income tax liability	9,693	11,008
Liabilities held-for-sale	6,634	4,650
Other liabilities	22,538	23,614
Separate account liabilities	179,873	199,970
Total liabilities	691,959	720,329
Contingencies, Commitments and Guarantees (Note 21)
MetLife, Inc.’s stockholders’ equity:
Preferred stock, par value $0.01 per share; $3,905 and $4,405, respectively, aggregate liquidation preference	0	0
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,186,540,473 and 1,181,614,288 shares issued, respectively; 825,540,267 and 892,910,600 shares outstanding, respectively	12	12
Additional paid-in capital	33,511	33,812
Retained earnings	41,197	36,491
Treasury stock, at cost; 361,000,206 and 288,703,688 shares, respectively	(18,157)	(13,829)
Accumulated other comprehensive income (loss)	10,919	18,072
Total MetLife, Inc.’s stockholders’ equity	67,482	74,558
Noncontrolling interests	267	259
Total equity	67,749	74,817
Total liabilities and equity	$ 759,708	$ 795,146

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Assets
Amortized Cost	$ 310,884	$ 310,811
Amortized cost of fixed maturity securities valuation allowances	91	81
Mortgage loans valuation allowances	634	590
Residential mortgage loans — FVO	79,353	83,919
Real estate and real estate joint ventures (includes $240 and $169, respectively, under the fair value option and $175 and $128, respectively, of real estate held-for-sale)	12,216	11,933
Real Estate Held-for-sale	175	128
Other Invested Assets - Leveraged and Direct Financing Leases	1,930	2,156
Other invested assets, at estimated fair value	18,655	20,593
Net Investment in Lease, Allowance for Credit Loss	$ 40	$ 44
MetLife, Inc.’s stockholders’ equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred Stock, Liquidation Preference, Value	$ 3,905	$ 4,405
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	3,000,000,000	3,000,000,000
Common stock, shares issued	1,186,540,473	1,181,614,288
Common stock, shares outstanding	825,540,267	892,910,600
Treasury stock, shares	361,000,206	288,703,688
Residential mortgage loans - FVO
Assets
Residential mortgage loans — FVO	$ 127	$ 165
Real estate and real estate joint venture [Member]
Assets
Real estate and real estate joint ventures (includes $240 and $169, respectively, under the fair value option and $175 and $128, respectively, of real estate held-for-sale)	240	169
Variable interest entities
Assets
Other invested assets, at estimated fair value	$ 351	$ 332

Consolidated Statements of Operations - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues
Premiums	$ 42,009	$ 42,034	$ 42,235
Universal life and investment-type product policy fees	5,756	5,603	5,603
Net investment income	21,395	17,117	18,868
Other revenues	2,619	1,849	1,842
Net investment gains (losses)	1,529	(110)	444
Net derivative gains (losses)	(2,228)	1,349	628
Total revenues	71,080	67,842	69,620
Expenses
Policyholder benefits and claims	43,954	41,461	41,461
Interest credited to policyholder account balances	5,538	5,214	6,464
Policyholder dividends	876	1,090	1,211
Other expenses	12,586	13,150	13,689
Total expenses	62,954	60,915	62,825
Income (loss) before provision for income tax	8,126	6,927	6,795
Provision for income tax expense (benefit)	1,551	1,509	886
Net income (loss)	6,575	5,418	5,909
Less: Net income (loss) attributable to noncontrolling interests	21	11	10
Net income (loss) attributable to MetLife, Inc.	6,554	5,407	5,899
Less: Preferred stock dividends	195	202	178
Preferred stock redemption premium	6	14	0
Net income (loss) available to MetLife, Inc.’s common shareholders	$ 6,353	$ 5,191	$ 5,721
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
Basic	$ 7.36	$ 5.72	$ 6.10
Diluted	$ 7.31	$ 5.68	$ 6.06

Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 6,575	$ 5,418	$ 5,909
Other comprehensive income (loss):
Unrealized investment gains (losses), net of related offsets	(8,171)	5,198	14,591
Unrealized gains (losses) on derivatives	137	(286)	60
Foreign currency translation adjustments	(1,306)	1,169	(42)
Defined benefit plans adjustment	328	181	30
Other comprehensive income (loss), before income tax	(9,012)	6,262	14,639
Income tax (expense) benefit related to items of other comprehensive income (loss)	1,862	(1,237)	(3,324)
Other comprehensive income (loss), net of income tax	(7,150)	5,025	11,315
Comprehensive income (loss)	(575)	10,443	17,224
Less: Comprehensive income (loss) attributable to noncontrolling interest, net of income tax	24	16	16
Comprehensive income (loss) attributable to MetLife, Inc.	$ (599)	$ 10,427	$ 17,208

Consolidated Statements of Equity - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment [Member]	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment [Member]	Treasury Stock at Cost	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjustment [Member]	Total MetLife, Inc.'s Stockholders' Equity	Total MetLife, Inc.'s Stockholders' Equity Cumulative Effect, Period of Adoption, Adjustment [Member]	Noncontrolling Interests
Beginning Balance at Dec. 31, 2018	$ 52,958	$ 95	$ 0	$ 12	$ 32,474	$ 28,926	$ 74	$ (10,393)	$ 1,722	$ 21	$ 52,741	$ 95	$ 217
Preferred stock redemption premium	0
Preferred stock issuance	0
Treasury stock acquired in connection with share repurchases	(2,285)							(2,285)			(2,285)
Stock-based compensation	206				206						206
Dividends on preferred stock	$ (178)					(178)					(178)
Dividend Per Share	$ 1.740
Dividends on common stock	$ (1,643)					(1,643)					(1,643)
Change in equity of noncontrolling interests	5										0		5
Net income (loss)	5,909					5,899					5,899		10
Other comprehensive income (loss), net of income tax	11,315								11,309		11,309		6
Ending Balance at Dec. 31, 2019	66,382	$ (121)	0	12	32,680	33,078	$ (121)	(12,678)	13,052		66,144	$ (121)	238
Redemption of preferred stock	(989)				(989)						(989)
Preferred stock redemption premium	(14)					(14)					(14)
Preferred stock issuance	1,961				1,961						1,961
Treasury stock acquired in connection with share repurchases	(1,151)							(1,151)			(1,151)
Stock-based compensation	160				160						160
Dividends on preferred stock	$ (202)					(202)					(202)
Dividend Per Share	$ 1.820
Dividends on common stock	$ (1,657)					(1,657)					(1,657)
Change in equity of noncontrolling interests	5										0		5
Net income (loss)	5,418					5,407					5,407		11
Other comprehensive income (loss), net of income tax	5,025								5,020		5,020		5
Ending Balance at Dec. 31, 2020	74,817		0	12	33,812	36,491		(13,829)	18,072		74,558		259
Redemption of preferred stock	(494)				(494)						(494)
Preferred stock redemption premium	(6)					(6)					(6)
Preferred stock issuance	0
Treasury stock acquired in connection with share repurchases	(4,328)							(4,328)			(4,328)
Stock-based compensation	193				193						193
Dividends on preferred stock	$ (195)					(195)					(195)
Dividend Per Share	$ 1.900
Dividends on common stock	$ (1,647)					(1,647)					(1,647)
Change in equity of noncontrolling interests	(16)										0		(16)
Net income (loss)	6,575					6,554					6,554		21
Other comprehensive income (loss), net of income tax	(7,150)								(7,153)		(7,153)		3
Ending Balance at Dec. 31, 2021	$ 67,749		$ 0	$ 12	$ 33,511	$ 41,197		$ (18,157)	$ 10,919		$ 67,482		$ 267

Consolidated Statements of Cash Flows $ in Millions	12 Months Ended
Consolidated Statements of Cash Flows $ in Millions	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Cash flows from operating activities
Net income (loss)	$ 6,575	$ 5,418	$ 5,909
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expenses	694	619	630
Amortization of premiums and accretion of discounts associated with investments, net	(855)	(816)	(999)
(Gains) losses on investments and from sales of businesses, net	(1,529)	110	(444)
(Gains) losses on derivatives, net	4,190	(656)	(135)
(Income) loss from equity method investments, net of dividends or distributions	(3,051)	76	254
Interest credited to policyholder account balances	5,490	5,348	6,464
Universal life and investment-type product policy fees	(3,638)	(3,664)	(5,603)
Change in contractholder-directed equity securities and fair value option securities	(231)	131	(139)
Change in accrued investment income	(11)	104	8
Change in premiums, reinsurance and other receivables	389	842	(514)
Change in deferred policy acquisition costs and value of business acquired, net	(106)	101	(463)
Change in income tax	598	(11)	233
Change in other assets	(681)	(361)	426
Change in insurance-related liabilities and policy-related balances	4,553	5,112	7,803
Change in other liabilities	71	(1,065)	71
Other, net	138	351	285
Net cash provided by (used in) operating activities	12,596	11,639	13,786
Cash flows from investing activities
Sales, maturities and repayments of fixed maturity securities available-for-sale	88,839	77,979	77,820
Sales, maturities and repayments of equity securities	708	367	294
Sales, maturities and repayments of mortgage loans	19,183	11,300	12,838
Sales, maturities and repayments of real estate and real estate joint ventures	1,285	120	1,123
Sales, maturities and repayments of other limited partnership interests	777	597	625
Purchases of fixed maturity securities available-for-sale	(97,368)	(89,633)	(87,455)
Purchases of equity securities	(451)	(169)	(130)
Purchases of mortgage loans	(14,961)	(14,652)	(17,657)
Purchases of real estate and real estate joint ventures	(1,375)	(1,287)	(1,962)
Purchases of other limited partnership interests	(3,227)	(1,979)	(1,674)
Cash received in connection with freestanding derivatives	3,453	4,847	2,914
Cash paid in connection with freestanding derivatives	(7,990)	(4,247)	(3,749)
Sales of businesses	3,270	0	0
Purchases of businesses	0	(1,684)	(32)
Net change in policy loans	228	250	5
Net change in short-term investments	(3,277)	(341)	152
Net change in other invested assets	(235)	(176)	(567)
Other, net	(46)	139	(131)
Net cash provided by (used in) investing activities	(11,187)	(18,569)	(17,586)
Cash flows from financing activities
Policyholder account balances: Deposits	96,367	93,497	92,122
Policyholder account balances: Withdrawals	(92,540)	(85,251)	(85,598)
Net change in payables for collateral under securities loaned and other transactions	1,883	3,538	2,019
Cash received for other transactions with tenors greater than three months	0	150	125
Cash paid for other transactions with tenors greater than three months	(100)	(175)	(200)
Long-term debt issued	29	1,124	1,382
Long-term debt repaid	(582)	(99)	(906)
Collateral financing arrangement repaid	(79)	(148)	(67)
Financing element on certain derivative instruments and other derivative related transactions, net	270	(46)	(126)
Treasury stock acquired in connection with share repurchases	(4,303)	(1,151)	(2,285)
Preferred stock issued, net of issuance costs	0	1,961	0
Redemption of preferred stock	(494)	(989)	0
Preferred stock redemption premium	(6)	(14)	0
Dividends on preferred stock	(195)	(202)	(178)
Dividends on common stock	(1,647)	(1,657)	(1,643)
Other, net	22	191	(77)
Net cash provided by (used in) financing activities	(1,375)	10,729	4,568
Effect of change in foreign currency exchange rates on cash and cash equivalents balances	(478)	163	9
Change in cash and cash equivalents	(444)	3,962	777
Cash and cash equivalents, including subsidiaries held-for-sale, beginning of year	20,560	16,598	15,821
Cash and cash equivalents, including subsidiaries held-for-sale, end of year	20,116	20,560	16,598
Cash and cash equivalents, subsidiaries held-for-sale, beginning of year	765	0	0
Cash and cash equivalents, subsidiaries held-for-sale, end of year	69	765	0
Cash and cash equivalents, beginning of year	19,795	16,598	15,821
Cash and cash equivalents, end of year	20,047	19,795	16,598
Supplemental disclosures of cash flow information
Net cash paid for Interest	914	891	964
Net cash paid (received) for Income tax	1,102	787	1,099
Business acquisitions: Assets	0	2,190	0
Business acquisitions: Liabilities	0	315	0
Purchases of businesses	0	1,875	0
Assets held-for-sale	7,238	7,418	0
Liabilities held-for-sale	6,634	4,650	0
Net assets held-for-sale	604	2,768	0
Non-cash transactions:
Fixed maturity securities available-for-sale received in connection with pension risk transfer transactions	423	2,037	637
Operating lease liability associated with the recognition of right-of-use assets	63	70	341
Real estate and real estate joint ventures acquired in satisfaction of debt	174	10	32
Increase in equity securities due to in-kind distributions received from other limited partnership interests	380	108	44
Reclassification of certain other invested assets to contractholder-directed equity securities and fair value option securities	$ 309	$ 0	$ 0

Statement of Cash Flows (Statement) (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Cash Flows [Abstract]
Cash Divested from Deconsolidation	$ 611	$ 0	$ 0
Cash Acquired from Acquisition	$ 0	$ 191	$ 0

Business, Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business, Basis of Presentation and Summary of Significant Accounting Policies

1. Business, Basis of Presentation and Summary of Significant Accounting Policies

Business

“MetLife” and the “Company” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. MetLife is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. MetLife is organized into five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MetLife Holdings.

Basis of Presentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the 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, including uncertainties associated with the COVID-19 pandemic. 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 MetLife, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has a controlling financial interest, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated.

Held-for-Sale

The Company classifies a business as held-for-sale when management has approved or received approval to sell the business, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current estimated fair value and certain other specified criteria are met. The business classified as held-for-sale is recorded at the lower of the carrying value and estimated fair value, less cost to sell. If the carrying value of the business exceeds its estimated fair value, less cost to sell, a loss is recognized and reported in net investment gains (losses). Assets and liabilities related to the business classified as held-for-sale are separately reported in the Company's consolidated balance sheets in the period in which the business is classified as held-for-sale. See Note 3 for information on a held-for-sale business. If a component of the Company has either been disposed of or is classified as held-for-sale and represents a strategic shift that has or will have a major effect on the Company’s operations and financial results, the results of the component are reported in discontinued operations.

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;

•investment objectives 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. Unit-linked separate account investments that are directed by contractholders but do not meet one or more of the other above criteria are included in Contractholder-directed equity securities.

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 to the current year presentation as discussed throughout the Notes to the Consolidated Financial Statements.

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
Goodwill			12
Employee Benefit Plans			18
Income Tax			19
Litigation Contingencies			21

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 and geographical area. 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 (“ULSG”) 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 life of the contract 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 S&P 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 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 life-contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”), elective annuitizations of guaranteed minimum income benefits (“GMIBs”), and the life contingent portion of GMIBs that require annuitization when the account balance goes to zero.

Guarantees accounted for as embedded derivatives in policyholder account balances include guaranteed minimum accumulation benefits (“GMABs”), the non-life contingent portion of GMWBs and certain non-life contingent portions of GMIBs. 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 settlement assignments, policyholder dividends due and unpaid, policyholder dividends left on deposit and negative value of business acquired (“VOBA”).

The liability for policy and contract claims generally relates to incurred but not reported (“IBNR”) death, disability, dental and vision claims. In addition, included in other policy-related balances are claims which have been reported but not yet settled for death, disability, dental and vision. 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. These amounts are then recognized in premiums when due.

The unearned revenue liability relates to universal life 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 “— Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles” for a discussion of negative VOBA.

Recognition of Insurance Revenues and Deposits

Premiums related to traditional life, annuity contracts with life contingencies, long-duration accident & health, and credit insurance policies 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 and disability, accident & health, and certain credit insurance contracts are recognized on a pro rata basis over the applicable contract term.

Deposits related to universal life 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.

Prior to the disposition of the Company’s Property & Casualty business, premiums related to property & casualty contracts are recognized as revenue on a pro rata basis over the applicable contract term. Unearned premiums, representing the portion of premium written related to the unexpired coverage, are included in future policy benefits. See Note 3 for information on the Company’s business dispositions.

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;

•other essential direct costs that would not have been incurred had a policy not been acquired or renewed; and

•the costs of direct-response advertising, the primary purpose of which is to elicit sales to customers who could be shown to have responded specifically to the advertising and that results in probable future benefits.

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.

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 with 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

•

Accident & 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

•

Credit insurance contracts

Actual and future earned premiums.

•

Property & casualty insurance contracts (prior to the disposition of the Company’s Property and Casualty business. See Note 3)

•

Other short-duration 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 the assets’ useful lives ranging from nine to 40 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.

For certain acquired blocks of business, the estimated fair value of the in-force contract obligations exceeded the book value of assumed in-force insurance policy liabilities, resulting in negative VOBA, which is presented separately from VOBA as an additional insurance liability. The estimated fair value of the in-force contract obligations is based on projections by each block of business. Negative VOBA is amortized over the policy period in proportion to the approximate consumption of losses included in the liability usually expressed in terms of insurance in-force or account value. Such amortization is recorded as an offset in other expenses.

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 amortized on a basis consistent with the methodologies and assumptions 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. Ceded (assumed) 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 for 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, consistent with credit loss guidance which requires recording an allowance for credit loss (“ACL”).

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.

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

Net investment income includes primarily interest income, including amortization of premium and accretion of discount, prepayment fees, dividend income, rental income and equity method income and is net of related investment expenses. Net investment income also includes, to a lesser extent, (i) realized gains (losses) on investments sold or disposed and (ii) unrealized gains (losses) recognized in earnings, representing changes in estimated fair value, primarily for Unit-linked investments (defined below) and fair value option (“FVO”) securities (“FVO Securities”).

Net Investment Gains (Losses)

Net investment gains (losses) include primarily (i) realized gains (losses) from sales and disposals of investments, which are determined by specific identification, (ii) intent-to-sell impairment losses on fixed maturity securities available-for-sale (“AFS”) and impairment losses on all other asset classes, and to a lesser extent, (iii) recognized gains (losses). Recognized gains (losses) are primarily comprised of the change in the ACL and unrealized gains (losses) for certain investments for which changes in estimated fair value are recognized in earnings. Changes in the ACL includes both (i) provisions for credit loss on fixed maturity securities AFS, mortgage loans and leveraged and direct financing leases and (ii) subsequent changes in the ACL. Unrealized gains (losses), representing changes in estimated fair value recognized in earnings, primarily relate to equity securities and certain other limited partnership interests and real estate joint ventures.

Net investment gains (losses) also include non-investment portfolio gains (losses) which do not relate to the performance of the investment portfolio, including gains (losses) from sales and divestitures of businesses and impairment of property, equipment, leasehold improvements and right-of-use (“ROU”) lease assets.

Accrued Investment Income

Accrued investment income is presented separately on the consolidated balance sheet and excluded from the carrying value of the related investments, primarily fixed maturity securities and mortgage loans.

Fixed Maturity Securities

The majority of the Company’s fixed maturity securities are classified as AFS and are reported at their estimated fair value. Changes in the estimated fair value of these securities not recognized in earnings representing unrecognized unrealized investment gains (losses) 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. Sales of securities 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 premium and accretion of discount, 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 Securities AFS — Methodology for Amortization of Premium and Accretion of Discount on Structured Products.” The amortization of premium and accretion of discount also take into consideration call and maturity dates. Generally, the accrual of income is ceased and accrued investment income that is considered uncollectible is recognized as a charge within net investment gains (losses) when securities are impaired.

The Company periodically evaluates these 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 described in Note 8 “— Fixed Maturity Securities AFS — Evaluation of Fixed Maturity Securities AFS for Credit Loss.”

After adoption of credit loss guidance on January 1, 2020, for securities in an unrealized loss position, a credit loss is recognized in earnings within net investment gains (losses) when it is anticipated that the amortized cost, excluding accrued investment income, 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 reduction of amortized cost and the loss 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 in earnings as a credit loss by establishing an ACL with a corresponding charge recorded in net investment gains (losses). However, the ACL is limited by the amount that the fair value is less than the amortized cost. This limitation is known as the “fair value floor.” If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors (“noncredit loss”) is recorded in OCI as an unrecognized loss.

During the year ended December 31, 2019, prior to the adoption of credit loss guidance on January 1, 2020, the Company applied other than temporary impairment (“OTTI”) guidance for securities in an unrealized loss position. An OTTI was recognized in earnings within net investment gains (losses) when it was anticipated that the amortized cost would not be recovered. When either: (i) the Company had the intent to sell the security, or (ii) it was more likely than not that the Company would be required to sell the security before recovery, the reduction of amortized cost and the OTTI recognized in earnings was the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions existed, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected was recognized as a reduction of amortized cost and an OTTI in earnings. If the estimated fair value was less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to noncredit loss was recorded in OCI as an unrecognized loss.

The credit loss guidance adopted on January 1, 2020, replaced the model for purchased credit impaired (“PCI”) fixed maturity securities AFS and financing receivables and requires the establishment of an ACL at acquisition, which is added to the purchase price to establish the initial amortized cost of the investment and is not recognized in earnings.

Equity Securities

Equity securities are reported at their estimated fair value, with unrealized gains (losses) representing changes in estimated fair value recognized in net investment gains (losses). Sales of securities are determined on a specific identification basis. Dividends are recognized in net investment income when declared.

Contractholder-Directed Equity Securities and Fair Value Option Securities

Contractholder-directed equity securities and FVO Securities (collectively, “Unit-linked and FVO Securities”) are investments for which the FVO has been elected, or which are otherwise required to be carried at estimated fair value, and include:

•contractholder-directed investments supporting unit-linked variable annuity type liabilities (“Unit-linked investments”) which do not qualify for presentation and reporting as separate account summary total assets and liabilities. These investments are primarily equity securities (including mutual funds) and, to a lesser extent, fixed income investments and cash and cash equivalents. The investment returns on these investments inure to contractholders and are offset by a corresponding change in policyholder account balances through interest credited to policyholder account balances; and

•fixed maturity and equity securities held-for-investment by the general account to support asset and liability management strategies for certain insurance products and investments in certain separate accounts.

Realized gains (losses) on investments sold or disposed and unrealized gains (losses), representing changes in estimated fair value, are both recognized in net investment income for Unit-linked investments and FVO Securities. Sales of these investments are determined on a specific identification basis.

Mortgage Loans

After adoption of credit loss guidance on January 1, 2020, the Company recognizes an ACL in earnings within net investment gains (losses) at time of purchase based on expected lifetime credit loss on financing receivables carried at amortized cost, including, but not limited to, mortgage loans and leveraged and direct financing leases, in an amount that represents the portion of the amortized cost basis of such financing receivables that the Company does not expect to collect, resulting in financing receivables being presented at the net amount expected to be collected.

During the year ended December 31, 2019, prior to the adoption of credit loss guidance on January 1, 2020, the Company applied incurred loss guidance where credit loss was recognized in earnings within net investment gains (losses) when incurred (when it was probable, based on current information and events, that all amounts due under the loan agreement would not be collected).

The Company disaggregates its mortgage loan investments into three portfolio segments: commercial, agricultural and residential. Also included in commercial mortgage loans are revolving line of credit loans collateralized by commercial properties. 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 ACL. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premium and deferred expenses and accretion of discount and deferred fees.

The Company ceases to accrue interest when the collection of interest is not considered probable, which is based on a current evaluation of the status of the borrower, including the number of days past due. When a loan is placed on non-accrual status, uncollected past due accrued interest income that is considered uncollectible is charged-off against net investment income. Generally, the accrual of interest income resumes after all delinquent amounts are paid and management believes all future principal and interest payments will be collected. The Company records cash receipts on non-accruing loans in accordance with the loan agreement. The Company records charge-offs of mortgage loan balances not considered collectible upon the realization of a credit loss, for commercial and agricultural mortgage loans typically through foreclosure or after a decision is made to sell a loan, and for residential mortgage loans, typically after considering the individual consumer’s financial status. The charge-off is recorded in net investment gains (losses), net of amounts recognized in ACL. Cash recoveries on principal amounts previously charged-off are generally reported in net investment gains (losses).

Also included in mortgage loans are residential mortgage loans for which the FVO was elected, and which are stated at estimated fair value. Changes in estimated fair value are recognized in net investment income.

Mortgage loans that are designated as held-for-sale, are carried at the lower of amortized cost or estimated fair value.

Policy Loans

Policy loans are stated at unpaid principal balances. Interest income is recognized 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 are deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy.

Real Estate

Real estate is stated at cost less accumulated depreciation. Depreciation is recognized on a straight-line basis, without any provision for salvage value, over the estimated useful life of the asset (typically up 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 for impairment and tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable. Properties whose carrying values are greater than their estimated 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 and is not depreciated. Real estate held-for-sale is stated at the lower of depreciated cost or estimated fair value less expected disposition costs.

Real Estate Joint Ventures and Other Limited Partnership Interests

The Company uses the equity method of accounting or the FVO for real estate joint ventures and other limited partnership interests (“investee”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations but does not hold a controlling financial interest, including when the Company is not deemed the primary beneficiary of a VIE. Under the equity method, the Company recognizes in earnings within net investment income its share of the investee’s earnings. Contributions paid by the Company increase carrying value and distributions received by the Company reduce carrying value. 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 accounts for its interest in real estate joint ventures and other limited partnership interests in which it has virtually no influence over the investee’s operations at estimated fair value. Unrealized gains (losses), representing changes in estimated fair value of these investments, are recognized in earnings within net investment gains (losses). Due to the nature and structure of these investments, they do not meet the characteristics of an equity security in accordance with applicable accounting guidance.

The Company consolidates real estate joint ventures and other limited partnership interests of which it holds a controlling financial interest, or it is deemed the primary beneficiary of a VIE. Assets of certain of these consolidated other limited partnership interests and real estate joint ventures are recorded at estimated fair value. Unrealized gains (losses) representing changes in estimated fair value are recognized in net investment income.

The Company routinely evaluates its equity method investments for impairment. When it is determined an equity method investment has had a loss in value that is other than temporary, it is impaired. Such an impairment is charged to net investment gains (losses).

Short-term Investments

Short-term investments include highly liquid securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase. Securities included within short-term investments are stated at estimated fair value, while other investments included within short-term investments are stated at amortized cost less ACL, which approximates estimated fair value.

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 19.

•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.

•Direct financing leases net investment is equal to the minimum lease payment receivables plus the unguaranteed residual value, less the unearned income, less ACL. Income is recognized by applying the pre-tax internal rate of return to the investment balance. The Company regularly reviews its minimum lease payment receivables for credit loss and residual value for impairments. Certain direct financing leases are linked to inflation.

•Leveraged leases net investment is equal to the minimum lease payment receivables plus the unguaranteed residual value, less the unearned income, less ACL and is reported 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 in those periods in which the net investment at the beginning of the period is positive. Leveraged leases derive investment returns in part from their income tax benefit. The Company regularly reviews its minimum lease payment receivables for credit loss and residual value for impairments.

•Investments in operating joint ventures that engage in insurance underwriting activities are accounted for under the equity method.

•Investments in Federal Home Loan Bank (“FHLB”) common stock are carried at redemption value and are considered restricted investments until redeemed by the respective regional FHLBs. Dividends are recognized in net investment income when declared.

•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.

Securities Lending Transactions and Repurchase Agreements

The Company accounts for securities lending transactions and repurchase agreements as financing arrangements and the associated liability is recorded at the amount of cash received. The securities loaned or sold under these agreements are included in invested assets. Income and expenses associated with securities lending transactions and repurchase agreements are recognized as investment income and investment expense, respectively, within net investment income.

Securities Lending Transactions

The Company enters into securities lending transactions, whereby securities are loaned to unaffiliated financial institutions. 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 consolidated financial statements. The Company monitors the ratio of the collateral held to 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.

Repurchase Agreements

The Company participates in short-term repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company sells securities and receives cash in an amount generally equal to 85% to 100% of the estimated fair value of the securities sold at the inception of the transaction, with a simultaneous agreement to repurchase such securities at a future date or on demand in an amount equal to the cash initially received plus interest. The Company monitors the ratio of the cash held to the estimated fair value of the securities sold throughout the duration of the transaction and additional cash or securities are obtained as necessary. Securities sold under such transactions may be sold or re-pledged by the transferee.

Derivatives

Freestanding Derivatives

Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement.

Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivative’s carrying value in other invested assets or other liabilities.

If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows:


Statement of Operations Presentation:	Derivative:
Policyholder benefits and claims	•	Economic hedges of variable annuity guarantees included in future policy benefits
Net investment income	•	Economic hedges of equity method investments in joint ventures
	•	Derivatives held within Unit-linked investments
	•	Economic hedges of FVO Securities which are linked to equity indices

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 the same line item as the earnings effect of the hedged item. The carrying value of the hedged recognized asset or liability is adjusted for changes in its estimated fair value due to the hedged risk.

•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 - in OCI and reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item.

•Net investment in a foreign operation (“NIFO”) hedge - in OCI, consistent with the translation adjustment for the hedged net investment in the foreign operation.

The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. Accruals on derivatives in net investment hedges are recognized in OCI.

In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness. 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 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 occurring, 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 of occurring are recognized immediately in net investment 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 issues certain products, which include variable annuities, 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.

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 unadjusted quoted prices are not available, estimated 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 significant management judgment are used to determine the estimated fair value of assets and liabilities. These unobservable inputs can be based on management’s judgment, assumptions or estimation and may not be observable in market activity. Unobservable inputs are based on management’s assumptions about the inputs market participants would use in pricing the assets.

Goodwill

Goodwill 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.

On January 1, 2020, the Company adopted accounting standards update (“ASU”) 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, using a prospective transition approach for goodwill impairment testing. The Company tests goodwill for impairment by either performing a qualitative assessment or a quantitative test. The qualitative impairment 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 impairment assessment for some or all of its reporting units and perform a quantitative impairment test. In performing the 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. The valuation methodologies utilized are subject to key judgments and assumptions that are sensitive to change.

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, an impairment charge would be recognized for the amount by which the carrying value exceeds the reporting unit’s fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. Additionally, the Company will consider income tax effects from any tax deductible goodwill on the carrying value of the reporting unit when measuring the goodwill impairment loss, if applicable.

On an ongoing basis, the Company evaluates potential triggering events that may affect the estimated fair value of the Company’s reporting units to assess whether any goodwill impairment exists. Deteriorating or adverse market conditions for certain reporting units may have a significant impact on the estimated fair value of these reporting units and could result in future impairments of goodwill.

Employee Benefit Plans

Certain subsidiaries of MetLife, Inc. sponsor defined benefit pension plans and other postretirement benefit plans covering eligible employees. Measurement dates used for all of the subsidiaries’ defined benefit pension and other postretirement benefit plans correspond with the fiscal year ends of sponsoring subsidiaries, which is December 31 for U.S. and non-U.S. subsidiaries.

The Company recognizes the funded status of each of its defined benefit pension and other 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 each plan’s actual experience and the assumed experience on plan assets or PBO/APBO 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/APBO 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 subsidiaries also sponsor defined contribution plans for substantially all U.S. 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.

Income Tax

MetLife, Inc. and its includable life insurance and non-life insurance subsidiaries file a consolidated U.S. federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended. Non-includable subsidiaries file either separate individual corporate tax returns or separate consolidated tax returns.

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.

In December 2017, H.R.1, commonly referred to as the Tax Cuts and Jobs Act of 2017 (“U.S. Tax Reform”) was signed into law. See Note 19 for additional information on U.S. Tax Reform.

Litigation Contingencies

The Company is a defendant in a large number of litigation matters and is involved in a number of regulatory investigations. 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 21, 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 consolidated financial statements.

Other Accounting Policies

Stock-Based Compensation

The Company grants certain employees and directors stock-based compensation awards under various plans, subject to vesting conditions. The Company recognizes compensation expense in an amount fixed at grant date or remeasured quarterly as described in Note 16. The Company generally recognizes this expense over the vesting period. However, the Company truncates the expense period to the date the employee attained age-and-service criteria to exercise or receive payment for the award regardless of continued employment. In such a case, the Company does not accelerate award exercise or payment timing. The Company also takes an estimation of forfeitures into account.

Cash and Cash Equivalents

The Company considers 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. Securities included within cash equivalents are stated at estimated fair value, while other investments included within cash equivalents are stated at amortized cost which approximates estimated fair value.

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 $2.7 billion and $2.8 billion at December 31, 2021 and 2020, respectively. Accumulated depreciation and amortization of property, equipment and leasehold improvements was $1.6 billion and $1.5 billion at December 31, 2021 and 2020, respectively. Related depreciation and amortization expense was $192 million, $194 million and $207 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Company recognized leasehold improvement impairment charges of $45 million, $0, and $24 million for the years ended December 31, 2021, 2020 and 2019, respectively. See Note 17 for further information on the 2019 impairment charges recorded as part of restructuring charges.

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 over a four-year period using the straight-line method. The cost basis of computer software was $4.0 billion and $3.7 billion at December 31, 2021 and 2020, respectively. Accumulated amortization of capitalized software was $2.7 billion and $2.5 billion at December 31, 2021 and 2020, respectively. Related amortization expense was $234 million, $207 million and $262 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Leases

The Company, as lessee, has entered into various lease and sublease agreements for office space and equipment. At contract inception, the Company determines that an arrangement contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. For contracts that contain a lease, the Company recognizes the ROU asset in Other assets and the lease liability in Other liabilities. The Company evaluates whether a ROU asset is impaired when events or changes in circumstances indicate that its carrying amount may not be recoverable. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the associated lease costs are recorded as an expense on a straight-line basis over the lease term.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are determined using the Company’s incremental borrowing rate based upon information available at commencement date to recognize the present value of lease payments over the lease term. ROU assets also include lease payments and excludes lease incentives. Lease terms may include options to extend or terminate the lease and are included in the lease measurement when it is reasonably certain that the Company will exercise that option.

The Company has lease agreements with lease and non-lease components. The Company does not separate lease and non-lease components and accounts for these items as a single lease component for all asset classes.

The majority of the Company’s leases and subleases are operating leases related to office space. The Company recognizes lease expense for operating leases on a straight-line basis over the lease term.

Other Revenues

Other revenues primarily include fees related to service contracts from customers for vision fee for service arrangements, prepaid legal plans, administrative services-only contracts, and investment management services. Substantially all of the revenue from the services is recognized over time as the applicable services are provided or are made available to the customers. The revenue recognized includes variable consideration to the extent it is probable that a significant reversal will not occur. In addition to the service fees, other revenues also include certain stable value fees and other miscellaneous revenues. These fees and miscellaneous revenues are recognized as earned.

Policyholder Dividends

Policyholder dividends are approved annually by the insurance subsidiaries’ boards 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 the insurance subsidiaries.

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. For most of the Company’s foreign operations, the local currency is the functional currency. For certain other foreign operations, such as Japan, the local currency and one or more other currencies qualify as 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.

Earnings Per Common Share

Basic earnings per common share are computed based on the weighted average number of common shares, or their equivalent, outstanding during the period. Diluted earnings per common share include the dilutive effect of the assumed exercise or issuance of stock-based awards using the treasury stock method. Under the treasury stock method, exercise or issuance of stock-based awards is assumed to occur with the proceeds used to purchase common stock at the average market price for the period. The difference between the number of shares assumed issued and number of shares assumed purchased represents the dilutive shares.

Recent Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of ASUs to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. The following tables provide a description of ASUs recently issued by the FASB and the impact of their adoption on the Company’s consolidated financial statements.

Adopted Accounting Pronouncements

The table below describes the impacts of the ASUs adopted by the Company, effective January 1, 2021.


Standard	Description	Effective Date and Method of Adoption	Impact on Financial Statements
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting; as clarified and amended by ASU 2021-01, Reference Rate Reform (Topic 848): Scope	The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, with certain exceptions. ASU 2021-01 amends the scope of the recent reference rate reform guidance. New optional expedients allow derivative instruments impacted by changes in the interest rate used for margining, discounting, or contract price alignment to qualify for certain optional relief.	Effective for contract modifications made between March 12, 2020 and December 31, 2022.	The guidance has reduced the operational and financial impacts of contract modifications that replace a reference rate, such as London Interbank Offered Rate (“LIBOR”), affected by reference rate reform. Contract modifications for invested assets and derivative instruments have occurred during 2021 and are expected to continue into 2022. Based on actions taken to date, the adoption of the guidance has not had a material impact on the Company’s consolidated financial statements. The Company does not expect the adoption of this guidance to have a material ongoing impact and will continue to evaluate the impacts of reference rate reform on contract modifications and hedging relationships through December 31, 2022.
ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes	The guidance simplifies the accounting for income taxes by removing certain exceptions to the tax accounting guidance and providing clarification to other specific tax accounting guidance to eliminate variations in practice. Specifically, it removes the exceptions related to the a) incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, b) recognition of a deferred tax liability when foreign investment ownership changes from equity method investment to consolidated subsidiary and vice versa and c) use of interim period tax accounting for year-to-date losses that exceed anticipated losses. The guidance also simplifies the application of the income tax guidance for franchise taxes that are partially based on income and the accounting for tax law changes during interim periods, clarifies the accounting for transactions that result in a step-up in tax basis of goodwill, provides for the option to elect allocation of consolidated income taxes to entities disregarded by taxing authorities for their stand-alone reporting, and requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date.	January 1, 2021. The Company adopted, using a prospective approach.	The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Future Adoption of Accounting Pronouncements

ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company’s consolidated financial statements or disclosures. ASUs issued but not yet adopted as of December 31, 2021 that are currently being assessed and may or may not have a material impact on the Company’s consolidated financial statements or disclosures are summarized in the table below.


Standard	Description	Effective Date and Method of Adoption	Impact on Financial Statements
ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, as amended by ASU 2019-09, Financial Services—Insurance (Topic 944): Effective Date, as amended by ASU 2020-11, Financial Services—Insurance (Topic 944): Effective Date and Early Application	The guidance (i) prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts, and requires assumptions for those liability valuations to be updated after contract inception, (ii) requires more market-based product guarantees on certain separate account and other account balance long-duration contracts to be accounted for at fair value, (iii) simplifies the amortization of DAC for virtually all long-duration contracts, and (iv) introduces certain financial statement presentation requirements, as well as significant additional quantitative and qualitative disclosures. The amendments in ASU 2019-09 defer the effective date of ASU 2018-12 to January 1, 2022 for all entities, and the amendments in ASU 2020-11 further defer the effective date of ASU 2018-12 for an additional year to January 1, 2023 for all entities.	January 1, 2023, to be applied retrospectively to January 1, 2021 (with early adoption permitted).	The Company’s implementation efforts and the evaluation of the impacts of the guidance continue to progress. Given the nature and extent of the required changes to a significant portion of the Company’s operations, the adoption of this guidance is expected to have a material impact on its financial position, results of operations, and disclosures, as well as systems, processes, and controls. The Company expects to adopt the guidance effective January 1, 2023. The modified retrospective approach will be used, except in regard to market risk benefits where the Company will use the full retrospective approach. The Company has created a governance framework and is managing a detailed implementation plan to support timely application of the guidance. The Company has made progress and continues to refine key accounting policy decisions, technology solutions and internal controls. These activities include, but are not limited to, modifications of actuarial valuation, accounting and financial reporting processes and systems including internal controls. The most significant transition impacts are expected to be from: (i) the requirement to account for variable annuity guarantees as market risk benefits measured at fair value, (except for the changes in fair value already recognized under an existing accounting model) and (ii) adjustments to AOCI for the change in the current discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment contracts and the removal of shadow account balances associated with long-duration products. Based on factors such as: (i) the measurement of market risk benefits at fair value; and (ii) the difference between the discount rate currently used for measuring the liability for future policy benefits for traditional and limited payment contracts compared to the observed upper medium grade investment yield at the date of transition for this guidance, the Company’s expected impact of adopting this guidance is anticipated to result in a reduction of total equity. The Company continues to evaluate the impact of the guidance on its consolidated financial statements.


Standard	Description	Effective Date and Method of Adoption	Impact on Financial Statements
ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance	The guidance requires entities to provide annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy and can include tax credits and other forms of government assistance. Entities are required to disclose information about (i) the nature of the transactions and the related accounting policy used to account for the transactions; (ii) the line items on the balance sheet and income statement that are affected by the transactions, including the associated amounts; and (iii) the significant terms and conditions of the transactions, including commitments and contingencies.	Annual periods beginning January 1, 2022, to be applied prospectively (with early adoption permitted).	The Company is currently evaluating the impact of the guidance on its annual disclosures to be included in its 2022 consolidated financial statements.
ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers	The guidance indicates how to determine whether a contract liability is recognized by the acquirer in a business combination and provides specific guidance on how to recognize and measure acquired contract assets and contract liabilities from revenue contracts in a business combination.	January 1, 2023, to be applied prospectively (with early adoption permitted).	The Company is currently evaluating the impact of the guidance on its consolidated financial statements.

Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

2. Segment Information

MetLife is organized into five segments: U.S.; Asia; Latin America; EMEA; and MetLife Holdings. In addition, the Company reports certain of its results of operations in Corporate & Other.

U.S.

The U.S. segment offers a broad range of protection products and services aimed at serving the financial needs of customers throughout their lives. These products are sold to corporations and their respective employees, other institutions and their respective members, as well as individuals. The U.S. segment is organized into two businesses: Group Benefits and Retirement and Income Solutions (“RIS”). Prior to its disposition, the Property & Casualty business was included in the U.S. segment. See Note 3.

•The Group Benefits business offers products such as term, variable and universal life insurance, dental, group and individual disability, vision and accident & health insurance.

•The RIS business offers a broad range of life and annuity-based insurance and investment products, including stable value and pension risk transfer products, institutional income annuities, structured settlements, longevity reinsurance solutions, benefit funding solutions and capital markets investment products.

Asia

The Asia segment offers a broad range of products and services to both individuals and corporations, as well as to other institutions, and their respective employees, which include life insurance, accident & health insurance and retirement and savings.

Latin America

The Latin America segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respective employees, which include life insurance, retirement and savings, accident & health insurance and credit insurance.

EMEA

The EMEA segment offers products to individuals, corporations, other institutions, and their respective employees, which include life insurance, accident & health insurance, retirement and savings and credit insurance.

MetLife Holdings

The MetLife Holdings segment consists of operations relating to products and businesses that the Company no longer actively markets in the United States. These include variable, universal, term and whole life insurance, variable, fixed and index-linked annuities, and long-term care insurance.

Corporate & Other

Corporate & Other contains various start-up, developing and run-off businesses. Also included in Corporate & Other are: the excess capital, as well as certain charges and activities, not allocated to the segments (including external integration and disposition costs, internal resource costs for associates committed to acquisitions and dispositions and enterprise-wide strategic initiative restructuring charges), interest expense related to the majority of the Company’s outstanding debt, expenses associated with certain legal proceedings and income tax audit issues, the elimination of intersegment amounts (which generally relate to affiliated reinsurance, investment expenses and intersegment loans bearing interest rates commensurate with related borrowings), and the Company’s investment management business (through which the Company provides public fixed income, private capital and real estate investment solutions to institutional investors worldwide).

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 is defined as adjusted revenues less adjusted expenses, net of income tax.

The financial measures of adjusted revenues and adjusted expenses focus on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also include the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP. Adjusted revenues also excludes net investment gains (losses) and net derivative gains (losses). Adjusted expenses also excludes goodwill impairments.

The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues:

•Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees (“GMIB fees”);

•Net investment income: (i) includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) excludes post-tax adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to contractholder-directed equity securities, (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP and (v) includes distributions of profits from certain other limited partnership interests that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in estimated fair value is recognized in net investment gains (losses) under GAAP; and

•Other revenues is adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided under transition service agreements (“TSA fees”).

The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:

•Policyholder benefits and claims and policyholder dividends excludes: (i) amortization of basis adjustments associated with de-designated fair value hedges of future policy benefits, (ii) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (iii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass through adjustments, (iv) benefits and hedging costs related to GMIBs (“GMIB costs”) and (v) market value adjustments associated with surrenders or terminations of contracts (“Market value adjustments”);

•Interest credited to policyholder account balances includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and excludes certain amounts related to net investment income earned on contractholder-directed equity securities;

•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;

•Amortization of negative VOBA excludes amounts related to Market value adjustments;

•Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and

•Other expenses excludes: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements costs, and (iii) acquisition, integration and other costs. Other expenses includes TSA fees.

Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’s effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the years ended December 31, 2021, 2020 and 2019 and at December 31, 2021 and 2020. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for adjusted earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in the Company’s business.

The Company’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types. The Company’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards.

Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, 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, 2021	U.S.		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	26,358	$	6,421	$	2,609	$	2,271	$	3,333	$	35	$	41,027	$	982	$	42,009
Universal life and investment-type product policy fees	1,140		1,814		1,109		395		1,101		2		5,561		195		5,756
Net investment income (1)	8,048		5,052		1,271		215		6,450		244		21,280		115		21,395
Other revenues	1,538		73		41		47		257		420		2,376		243		2,619
Net investment gains (losses)	—		—		—		—		—		—		—		1,529		1,529
Net derivative gains (losses)	—		—		—		—		—		—		—		(2,228)		(2,228)
Total revenues	37,084		13,360		5,030		2,928		11,141		701		70,244		836		71,080
Expenses
Policyholder benefits and claims and policyholder dividends	27,957		5,008		3,143		1,241		6,268		34		43,651		1,179		44,830
Interest credited to policyholder account balances	1,422		1,995		249		86		840		—		4,592		946		5,538
Capitalization of DAC	(65)		(1,607)		(414)		(469)		(33)		(11)		(2,599)		(119)		(2,718)
Amortization of DAC and VOBA	60		1,369		285		356		257		9		2,336		219		2,555
Amortization of negative VOBA	—		(27)		—		(7)		—		—		(34)		—		(34)
Interest expense on debt	7		—		5		—		5		902		919		1		920
Other expenses	3,632		3,388		1,401		1,324		992		562		11,299		564		11,863
Total expenses	33,013		10,126		4,669		2,531		8,329		1,496		60,164		2,790		62,954
Provision for income tax expense (benefit)	850		936		70		96		570		(591)		1,931		(380)		1,551
Adjusted earnings	$	3,221	$	2,298	$	291	$	301	$	2,242	$	(204)	8,149
Adjustments to:
Total revenues													836
Total expenses													(2,790)
Provision for income tax (expense) benefit													380
Net income (loss)													$	6,575			$	6,575


At December 31, 2021	U.S.		Asia (2)		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total
	(In millions)
Total assets	$	282,741	$	169,291	$	59,763	$	27,038	$	179,551	$	41,324	$	759,708
Separate account assets	$	81,217	$	10,241	$	37,632	$	3,098	$	47,685	$	—	$	179,873
Separate account liabilities	$	81,217	$	10,241	$	37,632	$	3,098	$	47,685	$	—	$	179,873

__________________

(1)Net investment income from equity method investments represents 23%, 30%, 7% and 26% of segment net investment income for the U.S., Asia, Latin America and MetLife Holdings segments, respectively.

(2)Total assets includes $142.7 billion of assets from the Company’s Japan operations which represents 19% of total consolidated assets.



Year Ended December 31, 2020	U.S.		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	27,265	$	6,571	$	2,265	$	2,259	$	3,600	$	22	$	41,982	$	52	$	42,034
Universal life and investment-type product policy fees	1,070		1,892		994		433		1,073		3		5,465		138		5,603
Net investment income (1)	6,903		3,938		992		269		5,184		42		17,328		(211)		17,117
Other revenues	957		61		38		52		238		344		1,690		159		1,849
Net investment gains (losses)	—		—		—		—		—		—		—		(110)		(110)
Net derivative gains (losses)	—		—		—		—		—		—		—		1,349		1,349
Total revenues	36,195		12,462		4,289		3,013		10,095		411		66,465		1,377		67,842
Expenses
Policyholder benefits and claims and policyholder dividends	26,309		5,213		2,406		1,196		6,738		(3)		41,859		692		42,551
Interest credited to policyholder account balances	1,622		1,834		240		109		868		—		4,673		541		5,214
Capitalization of DAC	(453)		(1,652)		(362)		(491)		(39)		(11)		(3,008)		(5)		(3,013)
Amortization of DAC and VOBA	471		1,415		276		454		370		8		2,994		166		3,160
Amortization of negative VOBA	—		(37)		—		(8)		—		—		(45)		—		(45)
Interest expense on debt	7		—		4		1		6		895		913		—		913
Other expenses	4,162		3,481		1,318		1,344		942		625		11,872		263		12,135
Total expenses	32,118		10,254		3,882		2,605		8,885		1,514		59,258		1,657		60,915
Provision for income tax expense (benefit)	853		643		127		81		234		(556)		1,382		127		1,509
Adjusted earnings	$	3,224	$	1,565	$	280	$	327	$	976	$	(547)	5,825
Adjustments to:
Total revenues													1,377
Total expenses													(1,657)
Provision for income tax (expense) benefit													(127)
Net income (loss)													$	5,418			$	5,418


At December 31, 2020	U.S.		Asia (2)		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total
	(In millions)
Total assets	$	291,483	$	173,884	$	75,047	$	28,372	$	184,566	$	41,794	$	795,146
Separate account assets	$	85,316	$	10,825	$	50,073	$	6,083	$	47,673	$	—	$	199,970
Separate account liabilities	$	85,316	$	10,825	$	50,073	$	6,083	$	47,673	$	—	$	199,970

__________________

(1)Net investment income from equity method investments represents 5%, 12%,1% and 5% of segment net investment income for the U.S., Asia, Latin America and MetLife Holdings segments, respectively.

(2)Total assets includes $146.0 billion of assets from the Company’s Japan operations which represents 18% of total consolidated assets.



Year Ended December 31, 2019	U.S.		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	26,801	$	6,632	$	2,723	$	2,177	$	3,748	$	83	$	42,164	$	71	$	42,235
Universal life and investment-type product policy fees	1,078		1,674		1,094		423		1,124		2		5,395		208		5,603
Net investment income (1)	7,021		3,691		1,271		291		5,281		275		17,830		1,038		18,868
Other revenues	887		56		44		54		253		291		1,585		257		1,842
Net investment gains (losses)	—		—		—		—		—		—		—		444		444
Net derivative gains (losses)	—		—		—		—		—		—		—		628		628
Total revenues	35,787		12,053		5,132		2,945		10,406		651		66,974		2,646		69,620
Expenses
Policyholder benefits and claims and policyholder dividends	26,165		5,185		2,623		1,176		6,970		73		42,192		480		42,672
Interest credited to policyholder account balances	1,984		1,710		332		98		905		—		5,029		1,435		6,464
Capitalization of DAC	(484)		(1,913)		(396)		(505)		(28)		(12)		(3,338)		(20)		(3,358)
Amortization of DAC and VOBA	475		1,288		291		428		299		6		2,787		109		2,896
Amortization of negative VOBA	—		(25)		—		(8)		—		—		(33)		—		(33)
Interest expense on debt	10		—		3		—		8		934		955		—		955
Other expenses	4,075		3,818		1,443		1,399		969		1,074		12,778		451		13,229
Total expenses	32,225		10,063		4,296		2,588		9,123		2,075		60,370		2,455		62,825
Provision for income tax expense (benefit)	724		585		227		75		249		(1,201)		659		227		886
Adjusted earnings	$	2,838	$	1,405	$	609	$	282	$	1,034	$	(223)	5,945
Adjustments to:
Total revenues													2,646
Total expenses													(2,455)
Provision for income tax (expense) benefit													(227)
Net income (loss)													$	5,909			$	5,909

__________________

(1)Net investment income from equity method investments represents 6%, 9%, 2% and 5% of segment net investment income for the U.S., Asia, Latin America and MetLife Holdings segments, respectively.

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,
	2021		2020		2019
	(In millions)
Life insurance	$	22,872	$	21,256	$	20,759
Accident & health insurance	17,498		15,346		15,159
Annuities	7,499		7,916		8,590
Other (1)	2,515		4,968		5,172
Total	$	50,384	$	49,486	$	49,680

__________________

(1)Includes Property & Casualty insurance products which are no longer a significant product group after the disposal of the Property & Casualty business. See Note 3.

The following table presents total premiums, universal life and investment-type product policy fees and other revenues associated with the Company’s U.S. and foreign operations:


	Years Ended December 31,
	2021		2020		2019
	(In millions)
U.S.	$	35,252	$	34,717	$	34,433
Foreign:
Japan	6,426		6,750		6,608
Other	8,706		8,019		8,639
Total	$	50,384	$	49,486	$	49,680

Revenues derived from any 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, 2021, 2020 and 2019.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Dispositions - Dispositions

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

Acquisitions and Dispositions

3. Acquisition and Dispositions

Acquisition

Acquisition of Versant Health

On December 30, 2020, the Company completed its acquisition of all of the issued and outstanding capital stock of Versant Health, Inc. (“Versant Health”), a managed vision care company, for $1.8 billion in an all-cash transaction. Versant Health owns the well-established marketplace brands, Davis Vision and Superior Vision.

Of the purchase price, $323 million and $95 million was allocated to the fair value of tangible assets acquired and liabilities assumed, respectively, at the acquisition date. The tangible assets primarily included $189 million of cash.

Additionally, $890 million was allocated to goodwill, $790 million was allocated to VOCRA, and $115 million was allocated to other intangibles. The goodwill recorded includes the certain expected synergies, assembled workforce and other benefits that management believes will result from combining the operations of Versant Health with the operations of MetLife, including strengthening and differentiating the Company’s vision benefit offering, reported in the U.S. segment, with one of the industry’s broadest networks of providers and plan options. The value of VOCRA, included in other assets, reflects the estimated fair value of the expected future profits associated with Versant Health’s customer relationships acquired. VOCRA is amortized over the assets’ useful lives ranging from nine to 15 years.

The allocated purchase price also included deferred tax liabilities of $217 million, which are attributable to the intangible assets and liabilities, excluding goodwill, established at the acquisition date. No portion of goodwill is deductible for tax purposes.

Total revenue of Versant Health represented less than 2% of pro forma total revenue of MetLife for each of the years ended December 31, 2020 and 2019 when evaluated as though the acquisition had occurred at the beginning of the earliest period presented.

Dispositions

Disposition of MetLife Seguros S.A.

In September 2021, the Company sold its wholly-owned Argentinian subsidiary, MetLife Seguros S.A. (“MetLife Seguros”). In connection with the sale, a loss of $205 million, net of income tax, was recorded for the year ended December 31, 2021, which is reflected in net investment gains (losses). At December 31, 2020, MetLife Seguros represented $201 million of total assets in the Latin America segment. MetLife Seguros results of operations are reported in the Latin America segment adjusted earnings through the date of sale.

Pending Disposition of MetLife Poland and Disposition of MetLife Greece

In July 2021, the Company entered into definitive agreements to sell its wholly-owned subsidiaries in Poland and Greece (collectively, “MetLife Poland and Greece”) to NN Group N.V. for $738 million in total consideration, including a pre-closing dividend of $43 million. In connection with the pending sale, an expected loss of $214 million, net of income tax, was recorded for the year ended December 31, 2021, which is reflected in net investment gains (losses). MetLife Poland and Greece results of operations are reported in the EMEA segment adjusted earnings through June 30, 2021. See Note 2 for information on accounting for divested business. In January 2022, the Company completed the sale of its wholly-owned subsidiaries in Greece. The Company expects the disposition of its wholly-owned subsidiaries in Poland to close in the first half of 2022 and is subject to regulatory approvals and satisfaction of other customary closing conditions.

MetLife Poland and Greece met the criteria in the second quarter of 2021 to be classified as held-for-sale but did not meet the criteria to be classified as discontinued operations. As a result, the related assets and liabilities are included in the separate held-for-sale line items of the asset and liability sections of the consolidated balance sheet.

The following table summarizes the assets and liabilities held-for-sale:


	December 31, 2021
	(In millions)
Assets:
Fixed maturity securities available-for-sale	$	2,043
Contractholder-directed equity securities	1,114
Other investments	118
Total investments	3,275
Cash and cash equivalents	69
Deferred policy acquisition costs and value of business acquired	138
Other	259
Separate account assets	3,497
Total assets held-for-sale	$	7,238

Liabilities:
Future policy benefits	$	916
Policyholder account balances	2,005
Other policy-related balances	103
Other	113
Separate account liabilities	3,497
Total liabilities held-for-sale	$	6,634

MetLife Poland and Greece income (loss) before provision for income tax as reflected in the consolidated statements of operations was $50 million, $30 million and $50 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Disposition of Metropolitan Property and Casualty Insurance Company

In December 2020, the Company entered into a definitive agreement to sell its wholly-owned subsidiary, Metropolitan Property and Casualty Insurance Company and certain of its wholly-owned subsidiaries (collectively, “MetLife P&C”) to Farmers Group, Inc. for $3.9 billion. In addition, the Company and the Farmers Exchanges have established a 10-year strategic partnership through which the Farmers Insurance Group will offer its personal line products on MetLife’s U.S. Group Benefits platform which commenced when the transaction closed. MetLife P&C results of operations are reported in the U.S. segment adjusted earnings through December 31, 2020. See Note 2 for more information on divested businesses. In April 2021, the Company completed the sale of MetLife P&C. As a result of the sale, the Company recognized a gain of $1.4 billion ($1.0 billion, net of income tax) in net investment gains (losses) for the year ended December 31, 2021, which includes customary purchase price adjustments recorded after the date of sale.

The disposition met the criteria to be classified as held-for-sale but did not meet the criteria to be classified as discontinued operations. As a result, the related assets and liabilities were included in the separate held-for-sale line items of the asset and liability sections of the consolidated balance sheet. The following table summarizes the assets and liabilities held-for-sale at December 31, 2020:


	December 31, 2020
	(In millions)
Assets:
Fixed maturity securities available-for-sale	$	4,096
Equity securities	57
Mortgage loans	355
Other invested assets	29
Total investments	4,537
Cash and cash equivalents	765
Accrued investment income	38
Premiums, reinsurance and other receivables	1,411
Deferred policy acquisition costs	196
Goodwill	328
Other assets	143
Total assets held-for-sale	$	7,418

Liabilities:
Future policy benefits	$	3,506
Other policy-related balances	33
Payables for collateral under securities loaned and other transactions	862
Other liabilities	249
Total liabilities held-for-sale	$	4,650

MetLife P&C income (loss) before provision for income tax as reflected in the consolidated statement of operations was $121 million, $399 million and $291 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Disposition of Joint-stock Company MetLife Insurance Company

In December 2020, the Company entered into an agreement to sell its wholly-owned Russian subsidiary, the Joint-stock Company MetLife Insurance Company (“MetLife Russia”). In connection with the sale, a loss of $133 million, net of income tax, was recorded for the year ended December 31, 2020 and is reflected in net investment gains (losses). At December 31, 2020, MetLife Russia represented $382 million of total assets in the EMEA segment. MetLife Russia results of operations are reported in the EMEA segment adjusted earnings through December 31, 2020. In January 2021, the Company completed the sale of MetLife Russia.

Disposition of MetLife Seguros de Retiro S.A.

In October 2020, the Company sold one of its wholly-owned Argentinian subsidiaries, MetLife Seguros de Retiro S.A. (“MetLife Seguros de Retiro”). In connection with the sale, a loss of $162 million, net of income tax, was recorded for the year ended December 31, 2020. This loss was comprised of a $130 million pre-tax loss, which is reflected in net investment gains (losses). Additionally, the $162 million loss included a $32 million net tax charge, which is recorded in the provision for income tax expense (benefit) and included previously deferred tax items and losses which are not recognized for tax purposes. MetLife Seguros de Retiro’s results of operations are reported in the Latin America segment adjusted earnings through June 30, 2020. See Note 2 for information on accounting for divested businesses.

Disposition of MetLife Limited and Metropolitan Life Insurance Company of Hong Kong Limited

In June 2019, the Company entered into a definitive agreement to sell its two wholly-owned subsidiaries, MetLife Limited and Metropolitan Life Insurance Company of Hong Kong Limited (collectively, “MetLife Hong Kong”). As a result of the agreement, a loss of $140 million, net of income tax, was recorded for the year ended December 31, 2019. This loss was comprised of a $100 million pre-tax loss, which is reflected in net investment gains (losses) and included allocated goodwill of $71 million. Additionally, the $140 million loss included a $40 million net tax charge, which is recorded in the provision for income tax expense (benefit) and included previously deferred tax items and losses which are not recognized for tax purposes. MetLife Hong Kong’s results of operations are reported in the Asia segment adjusted earnings through June 30, 2019. See Note 2 for information on accounting for divested businesses. In June 2020, the Company completed the sale and recorded a gain of $11 million, net of income tax, for the year ended December 31, 2020, which resulted in a total loss on the sale of $129 million, net of income tax.

Insurance

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

Insurance

4. Insurance

Insurance Liabilities

Insurance liabilities 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,
	2021		2020
	(In millions)
U.S.	$	162,999	$	162,524
Asia	125,839		126,912
Latin America	15,564		16,849
EMEA	13,031		17,252
MetLife Holdings	102,291		103,937
Corporate & Other	1,221		1,459
Total	$	420,945	$	428,933

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% for U.S. businesses and less than 1% to 10% for non-U.S. businesses and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends for U.S. businesses.
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% for U.S. businesses and less than 1% to 10% for non-U.S. businesses.
Individual 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% for U.S. businesses and less than 1% to 9% for non-U.S. businesses.
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 1% to 7% (primarily related to U.S. businesses).
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% for U.S. businesses and less than 1% to 9% for non-U.S. businesses.

Participating business represented 3% of the Company’s life insurance in-force at both December 31, 2021 and 2020. Participating policies represented 12%, 14% and 15% of gross traditional life insurance premiums for the years ended December 31, 2021, 2020 and 2019, respectively.

Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments and investment performance; (ii) credited interest, ranging from less than 1% to 8% for U.S. businesses and less than 1% to 10% for non-U.S. businesses, less expenses, mortality charges and withdrawals; and (iii) fair value adjustments relating to business combinations.

Guarantees

The Company issues directly and assumes through reinsurance variable annuity products with guaranteed minimum benefits. GMABs, the non-life contingent portion of GMWBs and certain non-life contingent portions of GMIBs 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 Life Contracts
	GMDBs and GMWBs		GMIBs		Secondary Guarantees		Paid-Up Guarantees		Total
	(In millions)
Direct and Assumed:
Balance at January 1, 2019	$	428	$	898	$	3,442	$	359	$	5,127
Incurred guaranteed benefits (1)	62		(3)		358		68		485
Paid guaranteed benefits	(25)		(1)		(38)		—		(64)
Balance at December 31, 2019	465		894		3,762		427		5,548
Incurred guaranteed benefits (1)	195		240		602		26		1,063
Paid guaranteed benefits	(21)		(5)		(99)		(45)		(170)
Balance at December 31, 2020	639		1,129		4,265		408		6,441
Incurred guaranteed benefits (1)	133		87		(37)		43		226
Paid guaranteed benefits	(29)		(7)		(102)		(47)		(185)
Reclassified to liabilities held-for-sale (2)	—		(32)		—		—		(32)
Balance at December 31, 2021	$	743	$	1,177	$	4,126	$	404	$	6,450
Ceded:
Balance at January 1, 2019	$	—	$	10	$	269	$	251	$	530
Incurred guaranteed benefits	(4)		—		80		30		106
Paid guaranteed benefits	4		—		—		—		4
Balance at December 31, 2019	—		10		349		281		640
Incurred guaranteed benefits	(11)		(3)		96		43		125
Paid guaranteed benefits	9		—		(18)		(32)		(41)
Balance at December 31, 2020	(2)		7		427		292		724
Incurred guaranteed benefits	(6)		2		57		30		83
Paid guaranteed benefits	8		—		(33)		(34)		(59)
Reclassified to liabilities held-for-sale (2)	—		—		—		—		—
Balance at December 31, 2021	$	—	$	9	$	451	$	288	$	748
Net:
Balance at January 1, 2019	$	428	$	888	$	3,173	$	108	$	4,597
Incurred guaranteed benefits	66		(3)		278		38		379
Paid guaranteed benefits	(29)		(1)		(38)		—		(68)
Balance at December 31, 2019	465		884		3,413		146		4,908
Incurred guaranteed benefits	206		243		506		(17)		938
Paid guaranteed benefits	(30)		(5)		(81)		(13)		(129)
Balance at December 31, 2020	641		1,122		3,838		116		5,717
Incurred guaranteed benefits	139		85		(94)		13		143
Paid guaranteed benefits	(37)		(7)		(69)		(13)		(126)
Reclassified to liabilities held-for-sale (2)	—		(32)		—		—		(32)
Balance at December 31, 2021	$	743	$	1,168	$	3,675	$	116	$	5,702

__________________

(1)Secondary guarantees include the effects of foreign currency translation of ($260) million, $125 million and $23 million at December 31, 2021, 2020 and 2019, respectively.

(2)See Note 3 for information on the Company’s business dispositions.

Information regarding the Company’s guarantee exposure, which includes direct and assumed business, but excludes offsets from hedging or ceded reinsurance, if any, was as follows at:


	December 31,
	2021						2020
	In the Event of Death			At Annuitization			In the Event of Death			At Annuitization
	(Dollars in millions)
Annuity Contracts:
Variable Annuity Guarantees:
Total account value (1), (2), (3)	$	62,281		$	23,121		$	65,044		$	24,170
Separate account value (1)	$	42,043		$	21,508		$	42,585		$	22,370
Net amount at risk (2)	$	1,490	(4)	$	500	(5)	$	1,579	(4)	$	614	(5)
Average attained age of contractholders	68 years			66 years			68 years			66 years
Other Annuity Guarantees:
Total account value (1), (3)	N/A			$	5,002		N/A			$	6,030
Net amount at risk	N/A			$	196	(6)	N/A			$	459	(6)
Average attained age of contractholders	N/A			56 years			N/A			50 years


	December 31,
	2021				2020
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (3)	$	13,678	$	2,694	$	13,426	$	2,808
Net amount at risk (7)	$	78,762	$	12,657	$	82,940	$	13,557
Average attained age of policyholders	55 years		66 years		54 years		65 years

__________________

(1)The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.

(2)Includes amounts, which are not reported on the consolidated balance sheets, from assumed variable annuity guarantees from the Company’s former operating joint venture in Japan.

(3)Includes the contractholder’s investments in the general account and separate account, if applicable.

(4)Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

(5)Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved.

(6)Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date.

(7)Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.

Guarantees — Separate Accounts

Account balances of contracts with guarantees were invested in separate account asset classes as follows at:


	December 31,
	2021		2020
	(In millions)
Fund Groupings:
Equity	$	29,346	$	28,581
Balanced	17,393		18,385
Bond	5,041		5,567
Money Market	218		149
Total	$	51,998	$	52,682

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 that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such funding agreements. For the years ended December 31, 2021, 2020 and 2019, the Company issued $40.8 billion, $40.4 billion and $37.3 billion, respectively, and repaid $41.2 billion, $36.7 billion and $36.4 billion, respectively, of such funding agreements. At December 31, 2021 and 2020, liabilities for funding agreements outstanding, which are included in policyholder account balances, were $39.5 billion and $39.9 billion, respectively.

Certain of the Company’s subsidiaries are or were members of regional FHLBs. Holdings of common stock of regional FHLBs, included in other invested assets, were as follows at:


	December 31,
	2021		2020
	(In millions)
FHLB of New York	$	769	$	812
FHLB of Des Moines	$	—	$	2

Certain subsidiaries have also entered into funding agreements with regional FHLBs 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,
	2021		2020		2021			2020
	(In millions)
FHLB of New York (1)	$	15,750	$	16,200	$	17,981	(2)	$	18,539	(2)
Farmer Mac (3)	$	2,050	$	2,375	$	2,159		$	2,450
FHLB of Des Moines (1)	$	—	$	50	$	—		$	72	(2)

__________________

(1)Represents funding agreements issued to the applicable regional FHLB in exchange for cash and for which such regional FHLB has been granted a lien on certain assets, some of which are in the custody of such regional FHLB, including residential mortgage-backed securities (“RMBS”), to collateralize obligations under such funding agreements. The applicable subsidiary of the Company is permitted to withdraw any portion of the collateral in the custody of such regional FHLB 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 such subsidiary, the applicable regional FHLB’s recovery on the collateral is limited to the amount of such subsidiary’s liability to such regional FHLB.

(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. 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 at December 31, 2021. 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. In order to eliminate potential fluctuations related to foreign exchange rates, liabilities and payments denominated in a foreign currency have been translated using the 2021 year end spot rates for all periods presented. The information about incurred and paid claims development prior to 2021 is presented as supplementary information.

U.S.

Group Life - Term


	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																				At December 31, 2021
	For the Years Ended December 31,																				Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Dollars in millions)
2012	$	6,503	$	6,579	$	6,569	$	6,546	$	6,568	$	6,569	$	6,569	$	6,572	$	6,574	$	6,575	$	1	210,236
2013			6,637		6,713		6,719		6,720		6,730		6,720		6,723		6,724		6,726		2		212,892
2014					6,986		6,919		6,913		6,910		6,914		6,919		6,920		6,918		1		215,694
2015							7,040		7,015		7,014		7,021		7,024		7,025		7,026		2		218,188
2016									7,125		7,085		7,095		7,104		7,105		7,104		3		219,581
2017											7,432		7,418		7,425		7,427		7,428		6		260,807
2018													7,757		7,655		7,646		7,650		10		246,519
2019															7,935		7,900		7,907		13		246,245
2020																	8,913		9,367		27		281,696
2021																			10,555		1,029		221,955
Total																			77,256
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(74,255)
All outstanding liabilities for incurral years prior to 2012, net of reinsurance																			21
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	3,022


	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(In millions)
2012	$	5,132	$	6,472	$	6,518	$	6,532	$	6,558	$	6,565	$	6,566	$	6,569	$	6,572	$	6,572
2013			5,216		6,614		6,664		6,678		6,711		6,715		6,720		6,721		6,723
2014					5,428		6,809		6,858		6,869		6,902		6,912		6,915		6,916
2015							5,524		6,913		6,958		6,974		7,008		7,018		7,022
2016									5,582		6,980		7,034		7,053		7,086		7,096
2017											5,761		7,292		7,355		7,374		7,400
2018													6,008		7,521		7,578		7,595
2019															6,178		7,756		7,820
2020																	6,862		9,103
2021																			8,008
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	74,255

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2021:


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9	10
Group Life - Term	77.5%	20.5%	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, 2021
	For the Years Ended December 31,																				Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Dollars in millions)
2012	$	966	$	979	$	980	$	1,014	$	1,034	$	1,037	$	1,021	$	1,015	$	1,011	$	1,007	$	—	20,086
2013			1,008		1,027		1,032		1,049		1,070		1,069		1,044		1,032		1,025		—		21,139
2014					1,076		1,077		1,079		1,101		1,109		1,098		1,097		1,081		—		22,853
2015							1,082		1,105		1,093		1,100		1,087		1,081		1,067		—		21,213
2016									1,131		1,139		1,159		1,162		1,139		1,124		—		17,971
2017											1,244		1,202		1,203		1,195		1,165		—		16,324
2018													1,240		1,175		1,163		1,147		—		15,172
2019															1,277		1,212		1,169		7		15,318
2020																	1,253		1,223		30		15,381
2021																			1,552		687		10,503
Total																			11,560
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(5,943)
All outstanding liabilities for incurral years prior to 2012, net of reinsurance																			1,559
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	7,176


	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(In millions)
2012	$	43	$	229	$	365	$	453	$	524	$	591	$	648	$	694	$	730	$	766
2013			43		234		382		475		551		622		676		722		764
2014					51		266		428		526		609		677		732		778
2015							50		264		427		524		601		665		718
2016									49		267		433		548		628		696
2017											56		290		476		579		655
2018													54		314		497		594
2019															57		342		522
2020																	59		355
2021																			95
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	5,943

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2021:


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9	10
Group Long-Term Disability	4.8%	20.9%	15.0%	9.1%	7.2%	6.4%	5.2%	4.4%	3.8%	3.6%

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 2021 compared to the 2020 incurral year due to the growth in the size of the business.

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.

Certain of our Group Life - Term customers have experience-rated contracts, whereby the group sponsor participates in the favorable and/or adverse claim experience, including favorable and/or adverse prior year development. Claim experience adjustments on these contracts are not reflected in the foregoing incurred and paid claim development tables, but are instead reflected as an increase (adverse experience) or decrease (favorable experience) to premiums on the consolidated statements of operations.

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 $6.2 billion and $6.0 billion at December 31, 2021 and 2020, respectively. Using interest rates ranging from 2% to 8%, based on the incurral year, the total discount applied to these liabilities was $1.1 billion and $1.2 billion at December 31, 2021 and 2020, respectively. The amount of interest accretion recognized was $518 million, $452 million and $470 million for the years ended December 31, 2021, 2020 and 2019, 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 incurred and paid claims disclosed for the Group Life - Term product includes activity related to the product’s continued protection feature; however, the associated actuarial reserve for future benefit obligations under this feature is excluded from the liability for unpaid claims.

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.

Asia

Group Disability & Group Life


	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																				At December 31, 2021
	For the Years Ended December 31,																				Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Dollars in millions)
2012	$	91	$	97	$	95	$	110	$	111	$	114	$	124	$	118	$	117	$	117	$	3	5,644
2013			138		140		161		156		156		164		164		168		168		9		6,554
2014					276		259		238		238		249		245		246		246		18		6,798
2015							260		249		252		245		257		259		262		21		6,708
2016									217		221		209		222		225		231		27		4,616
2017											282		262		270		289		297		40		5,268
2018													344		314		327		338		78		5,511
2019															372		347		364		127		5,321
2020																	413		385		221		3,983
2021																			394		311		2,474
Total																			2,802
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(1,947)
All outstanding liabilities for incurral years prior to 2012, net of reinsurance																			12
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	867


	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(In millions)
2012	$	28	$	60	$	79	$	92	$	99	$	104	$	105	$	108	$	112	$	114
2013			41		92		113		127		138		152		148		157		159
2014					65		134		167		188		211		212		223		228
2015							76		143		179		193		219		233		241
2016									61		126		143		179		194		204
2017											82		148		196		240		257
2018													90		166		224		260
2019															100		183		237
2020																	91		164
2021																			83
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	1,947

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2021:


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9	10
Group Disability & Group Life	25.6%	25.1%	13.9%	10.6%	7.3%	4.5%	1.5%	3.3%	2.3%	1.7%

Significant Methodologies and Assumptions

This business line consists of employer sponsored and industry sponsored Group Life and Group Disability risks.

For Group Life, the IBNR liability is determined by using the Bornhuetter-Ferguson Method, with factors derived by examining the experience of historical claims. A pending liability is also calculated for claims that have been reported but have not been paid. A claim eligibility ratio based on past experience is applied to the face amount of individual claims.

For Group Disability, the IBNR liability is calculated by applying a percentage to premiums in-force based on the expected delay as evidenced by the experience in the portfolio. The IBNR liability is then allocated back into different incurral years based on historical run-off patterns. As the benefit for this class of business is a regular series of payments, an additional reserve is required for the liability for ongoing benefit payments - claims in course of payment (“CICP”). The assumptions employed in the calculation of the CICP are adjusted for the Company’s own experience.

An expense liability is held for the future expenses associated with the payment of incurred but not yet paid claims. This is expressed as a percentage of the underlying claims liability and is based on past experience and the future expense structure.

The assumptions used in calculating the unpaid claims and claim adjustment expenses for Group Disability and Group Life 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.

The liabilities for unpaid claims and claim adjustment expenses were $1.2 billion and $1.0 billion at December 31, 2021 and 2020, respectively. These amounts were discounted using interest rates ranging from 1% to 7%, based on the incurral year. The total discount applied to these liabilities was $73 million and $68 million at December 31, 2021 and 2020, respectively. The amount of interest accretion recognized was $22 million, $24 million and $20 million for the years ended December 31, 2021, 2020 and 2019, respectively. These amounts were reflected in policyholder benefits and claims.

The Company tracks claim frequency by the number of reported claims as identified by a unique claim number assigned to individual claimants. Claim counts include claims that do not ultimately result in a liability. A liability is only established for those claims that are expected to result in a liability, based on historical factors.

Latin America

Protection Life


	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																				At December 31, 2021
	For the Years Ended December 31,																				Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Dollars in millions)
2012	$	133	$	180	$	185	$	186	$	186	$	184	$	185	$	186	$	188	$	188	$	—	27,664
2013			145		204		210		211		210		212		213		213		213		—		32,091
2014					218		333		342		313		316		316		317		317		—		40,904
2015							286		410		382		386		386		387		382		—		46,917
2016									302		395		407		413		414		415		—		40,751
2017											312		303		304		302		303		(1)		32,326
2018													290		280		278		280		(1)		30,855
2019															313		286		289		—		32,925
2020																	473		474		23		41,053
2021																			601		222		38,013
Total																			3,462
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(3,028)
All outstanding liabilities for incurral years prior to 2012, net of reinsurance																			10
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	444


	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(In millions)
2012	$	131	$	178	$	182	$	183	$	183	$	183	$	183	$	185	$	185	$	188
2013			142		198		202		203		202		204		205		207		208
2014					194		291		296		299		302		305		306		307
2015							232		328		348		355		361		363		364
2016									214		383		401		408		411		413
2017											184		277		292		295		298
2018													146		248		259		263
2019															163		247		267
2020																	205		410
2021																			310
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	3,028

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2021:


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9	10
Protection Life	57.4%	31.9%	3.9%	1.1%	0.6%	0.6%	0.3%	0.8%	0.2%	1.6%

Protection Health


	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																				At December 31, 2021
	For the Years Ended December 31,																				Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Dollars in millions)
2012	$	200	$	224	$	226	$	227	$	227	$	226	$	226	$	226	$	226	$	225	$	—	100,436
2013			216		244		246		246		244		244		244		244		244		—		104,332
2014					224		250		252		250		249		249		249		250		—		97,929
2015							193		219		221		220		219		220		220		—		87,412
2016									253		291		289		289		289		289		—		106,380
2017											366		341		342		341		341		—		121,221
2018													393		412		391		390		1		143,930
2019															131		170		164		4		130,963
2020																	473		465		10		146,176
2021																			608		38		121,301
Total																			3,196
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(3,100)
All outstanding liabilities for incurral years prior to 2012, net of reinsurance																			4
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	100


	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(In millions)
2012	$	200	$	224	$	226	$	227	$	227	$	226	$	226	$	226	$	226	$	227
2013			216		244		246		246		243		244		244		244		244
2014					223		248		250		246		247		247		247		247
2015							193		219		218		219		219		219		220
2016									238		285		287		288		288		288
2017											299		337		339		339		340
2018													335		382		385		386
2019															110		155		158
2020																	400		453
2021																			537
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	3,100

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2021:


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9	10
Protection Health	85.2%	13.6%	0.7%	—%	(0.1%)	—%	0.1%	—%	—%	0.4%

Significant Methodologies and Assumptions

The Latin America segment establishes liabilities for unpaid losses, which are equal to the accumulation of unpaid reported claims, plus an estimate for claims IBNR.

In general terms, for both the Protection Life and Protection Health products, the methodology for IBNR is the Bornhuetter-Ferguson Method, with factors derived by examining the experience of historical claims. In the more recent incurral months, the credibility is higher on expected loss ratios and lower on claims calculated using the experience-derived factors. The credibility grows for the factors as incurral months become older.

For Protection Health products, claim duration can be very long due to the multiple incidences that may occur over time for a single claim. The number of claims reported per year is based on the original claim occurrence date for each individual claim. Any subsequent claims that are considered part of the original claim occurrence are not counted as a new claim. For Protection Life products, claims are based upon individual death claims.

The assumptions used in calculating the unpaid claims and claim adjustment expenses for Protection Life and Protection Health are updated annually to reflect emerging trends in claim experience.

Certain of our Protection Life customers have experience-rated contracts, whereby the group sponsor participates in the favorable and/or adverse claim experience, including favorable and/or adverse prior year development. Claim experience adjustments on these contracts are not reflected in the foregoing incurred and paid claim development tables, but are instead reflected as an increase (adverse experience) or decrease (favorable experience) to premiums on the consolidated statements of operations.

Liabilities for unpaid claims and claim adjustment expenses were not discounted.

For Protection Life and Protection Health products, 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.

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, 2021
	(In millions)
Short-Duration:
Unpaid claims and allocated claims adjustment expenses, net of reinsurance:
U.S.:
Group Life - Term	$	3,022
Group Long-Term Disability	7,176


Total			$	10,198
Asia - Group Disability & Group Life			867
Latin America:
Protection Life	444
Protection Health	100
Total			544
Other insurance lines - all segments combined			2,023
Total unpaid claims and allocated claims adjustment expenses, net of reinsurance			13,632

Reinsurance recoverables on unpaid claims:
U.S.:
Group Life - Term	14
Group Long-Term Disability	166


Total			180
Asia - Group Disability & Group Life			375
Latin America:
Protection Life	10
Protection Health	13
Total			23
Other insurance lines - all segments combined			291
Total reinsurance recoverable on unpaid claims			869
Total unpaid claims and allocated claims adjustment expense			14,501
Unallocated claims adjustment expenses			2
Discounting			(1,205)
Liability for unpaid claims and claim adjustment liabilities - short-duration			13,298
Liability for unpaid claims and claim adjustment liabilities - all long-duration lines			6,715
Total liability for unpaid claims and claim adjustment expense (included in future policy benefits and other policy-related balances) (1)			$	20,013

__________________

(1)Excludes unpaid claims and allocated claims adjustment expense reclassified to liabilities held-for-sale. See Note 3 for information on the on the Company’s business dispositions.

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,
	2021		2020		2019
	(In millions)
Balance at January 1,	$	18,591	$	19,216	$	17,788
Less: Reinsurance recoverables	2,417		2,377		2,332
Net balance at January 1,	16,174		16,839		15,456
Incurred related to:
Current year	28,270		27,272		27,093
Prior years (1)	934		192		313
Total incurred	29,204		27,464		27,406
Paid related to:
Current year	(21,111)		(20,230)		(20,141)
Prior years	(7,256)		(6,241)		(5,882)
Total paid	(28,367)		(26,471)		(26,023)
Reclassified to liabilities held-for-sale (2)	(55)		(1,658)		—
Dispositions (2)	(64)		—		—
Net balance at December 31,	16,892		16,174		16,839
Add: Reinsurance recoverables	3,121		2,417		2,377
Balance at December 31,	$	20,013	$	18,591	$	19,216

__________________

(1)For the years ended December 31, 2021, 2020 and 2019, incurred claim activity and claim adjustment expenses associated with prior years increased due to events incurred in prior years but reported in the current year. The increase in the 2021 incurred claim activity and claim adjustment expenses associated with prior years is primarily due to the impacts from the COVID-19 pandemic, which are partially offset by additional premiums recorded for experience-rated contracts and are not reflected in the table above.

(2)See Note 3 for information on the Company’s business dispositions.

Separate AccountsSeparate account assets and liabilities include two categories of account types: pass-through separate accounts totaling $134.4 billion and $149.0 billion at December 31, 2021 and 2020, 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 $45.5 billion and $51.0 billion at December 31, 2021 and 2020, respectively. The latter category consisted primarily of guaranteed interest contracts (“GICs”). The average interest rate credited on these contracts was 2.18% and 2.55% at December 31, 2021 and 2020, respectively.

Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles

12 Months Ended

Dec. 31, 2021

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, non-medical health insurance, and accident & 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.

Credit Insurance and Other Short-Duration Contracts

The Company amortizes DAC for these contracts, which is primarily composed of commissions and certain underwriting expenses, in proportion to actual and future earned premium over the applicable contract term.

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,
	2021		2020		2019
	(In millions)
DAC:
Balance at January 1,	$	13,446	$	14,790	$	15,570
Capitalizations	2,718		3,013		3,358
Amortization related to:
Net investment gains (losses) and net derivative gains (losses)	(100)		(152)		(117)
Other expenses	(2,268)		(2,773)		(2,534)
Total amortization	(2,368)		(2,925)		(2,651)
Unrealized investment gains (losses)	811		(1,312)		(1,461)
Effect of foreign currency translation and other	(861)		76		(26)
Reclassified to assets held-for-sale (1)	(103)		(196)		—
Balance at December 31,	13,643		13,446		14,790
VOBA:
Balance at January 1,	2,943		3,043		3,325
Amortization related to:
Net investment gains (losses) and net derivative gains (losses)	—		(2)		—
Other expenses	(187)		(233)		(245)
Total amortization	(187)		(235)		(245)
Unrealized investment gains (losses)	11		(4)		(4)
Effect of foreign currency translation and other	(314)		139		(33)
Reclassified to assets held-for-sale (1)	(35)		—		—
Balance at December 31,	2,418		2,943		3,043
Total DAC and VOBA:
Balance at December 31,	$	16,061	$	16,389	$	17,833

__________________

(1)See Note 3 for information on the Company’s dispositions.

Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at:


	December 31,
	2021		2020
	(In millions)
U.S.	$	440	$	434
Asia	9,339		9,333
Latin America	2,021		2,092
EMEA	1,623		1,787
MetLife Holdings	2,607		2,712
Corporate & Other	31		31
Total	$	16,061	$	16,389

Information regarding other intangibles was as follows:


	Years Ended December 31,
	2021		2020		2019
	(In millions)
DSI:
Balance at January 1,	$	108	$	158	$	210
Capitalization	—		6		7
Amortization	(14)		(37)		(39)
Unrealized investment gains (losses)	20		(18)		(20)
Effect of foreign currency translation and other	(7)		(1)		—
Balance at December 31,	$	107	$	108	$	158

VODA and VOCRA:
Balance at January 1,	$	1,099	$	335	$	384
Acquisitions (1)	—		814		—
Amortization	(100)		(41)		(42)
Effect of foreign currency translation and other	(27)		(9)		(7)
Balance at December 31,	$	972	$	1,099	$	335
Accumulated amortization	$	575	$	475	$	434

Negative VOBA:
Balance at January 1,	$	738	$	750	$	779
Amortization	(34)		(45)		(33)
Effect of foreign currency translation and other	(81)		33		4
Balance at December 31,	$	623	$	738	$	750
Accumulated amortization	$	3,342	$	3,308	$	3,263

__________________

(1)Primarily related to the acquisition of Versant Health. See Note 3.

The estimated future amortization expense (credit) to be reported in other expenses for the next five years is as follows:


	VOBA		VODA and VOCRA		Negative VOBA
	(In millions)
2022	$	185	$	90	$	(35)
2023	$	180	$	87	$	(34)
2024	$	177	$	85	$	(32)
2025	$	166	$	83	$	(31)
2026	$	150	$	81	$	(29)

Reinsurance

12 Months Ended

Dec. 31, 2021

Reinsurance Disclosures [Abstract]

Reinsurance

6. ReinsuranceThe 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 third parties. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth.

Under the terms of the reinsurance agreements, the reinsurer agrees to reimburse the Company for the ceded amount in the event a claim is paid. Cessions under reinsurance agreements do not discharge the Company’s obligation as the primary insurer. In the event that reinsurers do not meet their obligations under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible.

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 its Group Benefits business, the Company generally retains most of the risk and only cedes particular risk 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 risks ceded under these agreements are generally quota shares of group life and disability policies. The cessions vary from 50% to 100% of all the risks of the policies.

Prior to the disposition of the Company’s Property & Casualty business, the Company purchased reinsurance to manage its exposure to large losses (primarily catastrophe losses) and to protect statutory surplus. The Company ceded losses and premiums based upon the exposure of the policies subject to reinsurance. To manage exposure to large property & casualty losses, the Company purchased property catastrophe, casualty and property per risk excess of loss reinsurance protection. See Note 3 for more information on the Company’s business dispositions.

The Company’s RIS business has engaged in reinsurance activities on an opportunistic basis. In 2020, a U.S. life insurance subsidiary of the Company began reinsuring longevity risks for certain pension products issued by unaffiliated providers located in the United Kingdom (“U.K.”).

Asia, Latin America and EMEA

For selected large corporate clients, the Company reinsures group employee benefits or credit insurance business with various client-affiliated reinsurance companies, covering policies issued to the employees or customers of the clients. Additionally, the Company cedes and assumes risk with other insurance companies when either company requires a business partner with the appropriate local licensing to issue certain types of policies in certain jurisdictions. In these cases, the assuming company typically underwrites the risks, develops the products and assumes most or all of the risk. The Company also has reinsurance agreements in-force that reinsure a portion of the living and death benefit guarantees issued in connection with variable annuity products. Under these agreements, the Company pays reinsurance fees associated with the guarantees collected from policyholders, and receives reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations. The Company may also reinsure certain risks with external reinsurers depending upon the nature of the risk and local regulatory requirements.

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. 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. The Company also assumes portions of the risk associated with certain whole life policies issued by a former affiliate and reinsures certain term life policies and universal life policies with secondary death benefit guarantees to such former affiliate.

For its other products, the Company has a reinsurance agreement in-force to reinsure the living and death benefit guarantees issued in connection with certain variable annuity guarantees from the Company’s former operating joint venture in Japan. Under this agreement, the Company receives reinsurance fees associated with the guarantees collected from policyholders, and provides reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations.

Catastrophe Coverage

The Company has exposure to catastrophes which could contribute to significant fluctuations in the Company’s results of operations. For the U.S. and EMEA, the Company purchases catastrophe coverage to reinsure risks issued within territories that the Company believes are subject to the greatest catastrophic risks. For its other segments, the Company uses excess of retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposure to larger risks. Excess of retention reinsurance agreements provide for a portion of a risk to remain with the direct writing company and quota share reinsurance agreements provide for the direct writing company to transfer a fixed percentage of all risks of a class of policies.

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, 2021 and 2020, were not significant. A U.S. life insurance subsidiary of the Company also secured collateral from its counterparties to mitigate counterparty default risk related to its longevity reinsurance agreements.

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 $3.6 billion and $3.8 billion of unsecured reinsurance recoverable balances at December 31, 2021 and 2020, respectively.

At December 31, 2021, the Company had $6.3 billion of net ceded reinsurance recoverables. Of this total, $4.1 billion, or 65%, were with the Company’s five largest ceded reinsurers, including $1.9 billion of net ceded reinsurance recoverables which were unsecured. At December 31, 2020, the Company had $6.6 billion of net ceded reinsurance recoverables. Of this total, $4.2 billion, or 64%, were with the Company’s five largest ceded reinsurers, including $2.0 billion of net ceded reinsurance recoverables which were unsecured.

The Company has reinsured with an unaffiliated third-party reinsurer, 59.25% 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,
	2021		2020		2019
	(In millions)
Premiums
Direct premiums	$	41,259	$	42,201	$	42,513
Reinsurance assumed	2,907		2,032		2,020
Reinsurance ceded	(2,157)		(2,199)		(2,298)
Net premiums	$	42,009	$	42,034	$	42,235
Universal life and investment-type product policy fees
Direct universal life and investment-type product policy fees	$	6,271	$	6,122	$	6,109
Reinsurance assumed	45		50		56
Reinsurance ceded	(560)		(569)		(562)
Net universal life and investment-type product policy fees	$	5,756	$	5,603	$	5,603
Policyholder benefits and claims
Direct policyholder benefits and claims	$	44,035	$	42,221	$	42,094
Reinsurance assumed	2,570		1,745		1,584
Reinsurance ceded	(2,651)		(2,505)		(2,217)
Net policyholder benefits and claims	$	43,954	$	41,461	$	41,461
Other expenses
Direct other expenses	$	12,450	$	13,013	$	13,559
Reinsurance assumed	375		371		382
Reinsurance ceded	(239)		(234)		(252)
Net other expenses	$	12,586	$	13,150	$	13,689

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,
	2021								2020
	Direct		Assumed		Ceded		Total Balance Sheet		Direct		Assumed		Ceded		Total Balance Sheet
	(In millions)
Assets
Premiums, reinsurance and other receivables	$	4,929	$	1,789	$	10,431	$	17,149	$	5,032	$	2,107	$	10,731	$	17,870
Deferred policy acquisition costs and value of business acquired	16,151		227		(317)		16,061		16,482		230		(323)		16,389
Total assets	$	21,080	$	2,016	$	10,114	$	33,210	$	21,514	$	2,337	$	10,408	$	34,259
Liabilities
Future policy benefits	$	195,915	$	3,806	$	—	$	199,721	$	203,000	$	3,656	$	—	$	206,656
Policyholder account balances	203,391		82		—		203,473		204,906		270		—		205,176
Other policy-related balances	16,380		1,368		3		17,751		15,769		1,332		—		17,101
Other liabilities	15,519		2,139		4,880		22,538		16,283		2,417		4,914		23,614
Total liabilities	$	431,205	$	7,395	$	4,883	$	443,483	$	439,958	$	7,675	$	4,914	$	452,547

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 $1.8 billion at both December 31, 2021 and 2020. The deposit liabilities on reinsurance were $1.4 billion at both December 31, 2021 and 2020.

Closed Block

12 Months Ended

Dec. 31, 2021

Closed Block Disclosure [Abstract]

Closed Block

7. Closed Block

On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“MLIC”) converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC. 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 net of income tax, to the closed block. 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,
	2021		2020
	(In millions)
Closed Block Liabilities
Future policy benefits	$	38,046	$	38,758
Other policy-related balances	290		321
Policyholder dividends payable	253		337
Policyholder dividend obligation	1,682		2,969
Deferred income tax liability	210		130
Other liabilities	263		172
Total closed block liabilities	40,744		42,687
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value	25,669		27,186
Equity securities, at estimated fair value	21		24
Mortgage loans	6,417		6,807
Policy loans	4,191		4,355
Real estate and real estate joint ventures	565		559
Other invested assets	535		468
Total investments	37,398		39,399
Cash and cash equivalents	126		—
Accrued investment income	384		402
Premiums, reinsurance and other receivables	50		50
Current income tax recoverable	81		28

Total assets designated to the closed block	38,039		39,879
Excess of closed block liabilities over assets designated to the closed block	2,705		2,808
AOCI:
Unrealized investment gains (losses), net of income tax	2,562		3,524
Unrealized gains (losses) on derivatives, net of income tax	107		23
Allocated to policyholder dividend obligation, net of income tax	(1,329)		(2,346)
Total amounts included in AOCI	1,340		1,201
Maximum future earnings to be recognized from closed block assets and liabilities	$	4,045	$	4,009

Information regarding the closed block policyholder dividend obligation was as follows:


	Years Ended December 31,
	2021		2020		2019
	(In millions)
Balance at January 1,	$	2,969	$	2,020	$	428
Change in unrealized investment and derivative gains (losses)	(1,287)		949		1,592
Balance at December 31,	$	1,682	$	2,969	$	2,020

Information regarding the closed block revenues and expenses was as follows:


	Years Ended December 31,
	2021		2020		2019
	(In millions)
Revenues
Premiums	$	1,298	$	1,498	$	1,580
Net investment income	1,541		1,596		1,740
Net investment gains (losses)	(36)		(25)		(7)
Net derivative gains (losses)	18		(17)		12
Total revenues	2,821		3,052		3,325
Expenses
Policyholder benefits and claims	2,150		2,330		2,291
Policyholder dividends	621		791		924
Other expenses	96		104		111
Total expenses	2,867		3,225		3,326
Revenues, net of expenses before provision for income tax expense (benefit)	(46)		(173)		(1)
Provision for income tax expense (benefit)	(10)		(36)		(2)
Revenues, net of expenses and provision for income tax expense (benefit)	$	(36)	$	(137)	$	1

MLIC charges the closed block with federal income taxes, state and local premium taxes and other state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan of Reorganization. MLIC also charges the closed block for expenses of maintaining the policies included in the closed block.

Investments

12 Months Ended

Dec. 31, 2021

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 ACL and 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 ACL and impairments is highly subjective and is based upon quarterly 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”), certain structured investment transactions and FVO Securities) 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 Securities AFS

Fixed Maturity Securities AFS by Sector

The following table presents fixed maturity securities AFS by sector. U.S. corporate and foreign corporate sectors include redeemable preferred stock. RMBS includes agency, prime, alternative and sub-prime mortgage-backed securities. ABS includes securities collateralized by corporate loans and consumer loans. Municipals includes taxable and tax-exempt revenue bonds and, to a much lesser extent, general obligations of states, municipalities and political subdivisions. Commercial mortgage-backed securities (“CMBS”) primarily includes securities collateralized by multiple commercial mortgage loans. RMBS, ABS and CMBS are, collectively, “Structured Products.”


	December 31,
	2021										2020
	Amortized Cost				Gross Unrealized (1)				Estimated Fair Value		Amortized Cost				Gross Unrealized (1)				Estimated Fair Value
Sector			Allowance for Credit Loss		Gains		Losses						Allowance for Credit Loss		Gains		Losses
	(In millions)
U.S. corporate	$	82,694	$	(30)	$	10,651	$	281	$	93,034	$	79,788	$	(44)	$	13,924	$	252	$	93,416
Foreign corporate	59,124		(28)		5,275		731		63,640		60,995		(16)		8,897		468		69,408
Foreign government	56,848		(19)		5,603		823		61,609		63,243		(21)		8,883		406		71,699
U.S. government and agency	41,068		—		5,807		276		46,599		39,094		—		8,095		89		47,100
RMBS	29,152		—		1,440		188		30,404		28,415		—		2,062		42		30,435
ABS	18,443		—		185		59		18,569		16,963		—		231		75		17,119
Municipals	11,761		—		2,464		13		14,212		10,982		—		2,746		6		13,722
CMBS	11,794		(14)		476		49		12,207		11,331		—		681		102		11,910
Total fixed maturity securities AFS	$	310,884	$	(91)	$	31,901	$	2,420	$	340,274	$	310,811	$	(81)	$	45,519	$	1,440	$	354,809

__________________

(1)Excludes gross unrealized gains (losses) related to assets held-for-sale; these unrealized gains (losses) are included in AOCI as no component of equity is held-for-sale. See Note 3 for information on the Company’s business dispositions.

Methodology for Amortization of Premium and Accretion of Discount on Structured Products

Amortization of premium and accretion of discount on Structured Products 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 Products are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive and certain prepayment-sensitive Structured Products, the effective yield is recalculated on a prospective basis. For all other Structured Products, the effective yield is recalculated on a retrospective basis.

Maturities of Fixed Maturity Securities AFS

The amortized cost, net of ACL, and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at December 31, 2021:


	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 Products		Total Fixed Maturity Securities AFS
	(In millions)
Amortized cost, net of ACL	$	7,513	$	55,284	$	58,215	$	130,406	$	59,375	$	310,793
Estimated fair value	$	7,623	$	57,395	$	63,550	$	150,526	$	61,180	$	340,274

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities AFS not due at a single maturity date have been presented in the year of final contractual maturity. Structured Products are shown separately, as they are not due at a single maturity.

Continuous Gross Unrealized Losses for Fixed Maturity Securities AFS by Sector

The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position without an ACL by sector and aggregated by length of time that the securities have been in a continuous unrealized loss position.


	December 31,
	2021								2020
	Less than 12 Months				Equal to or Greater than 12 Months				Less than 12 Months				Equal to or Greater than 12 Months
Sector & Credit Quality	Estimated Fair Value		Gross Unrealized Losses (1)		Estimated Fair Value		Gross Unrealized Losses (1)		Estimated Fair Value		Gross Unrealized Losses (1)		Estimated Fair Value		Gross Unrealized Losses (1)
	(Dollars in millions)
U.S. corporate	$	8,076	$	165	$	1,499	$	116	$	4,338	$	196	$	506	$	50
Foreign corporate	10,011		404		2,834		327		4,856		321		1,255		147
Foreign government	7,812		319		5,377		502		6,795		305		836		100
U.S. government and agency	14,419		138		1,571		138		4,619		87		33		2
RMBS	10,363		158		417		30		1,531		27		152		14
ABS	8,150		39		804		20		3,428		26		2,842		49
Municipals	524		10		65		3		273		6		—		—
CMBS	2,664		31		657		18		1,887		63		612		39
Total fixed maturity securities AFS	$	62,019	$	1,264	$	13,224	$	1,154	$	27,727	$	1,031	$	6,236	$	401
Investment grade	$	58,358	$	1,123	$	12,022	$	1,025	$	24,572	$	829	$	5,841	$	350
Below investment grade	3,661		141		1,202		129		3,155		202		395		51
Total fixed maturity securities AFS	$	62,019	$	1,264	$	13,224	$	1,154	$	27,727	$	1,031	$	6,236	$	401
Total number of securities in an unrealized loss position	4,774				979				2,177				690

________________

(1)Excludes gross unrealized losses related to assets held-for-sale; these unrealized losses are included in AOCI as no component of equity is held-for-sale. See Note 3 for information on the Company’s business dispositions.

Evaluation of Fixed Maturity Securities AFS for Credit Loss

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 credit loss evaluation process include, but are not limited to: (i) the extent to which the estimated fair value has been below amortized cost, (ii) adverse conditions specifically related to a security, an industry sector or sub-sector, or an economically depressed geographic area, adverse change in the financial condition of the issuer of the security, changes in technology, discontinuance of a segment of the business that may affect future earnings, and changes in the quality of credit enhancement, (iii) payment structure of the security and likelihood of the issuer being able to make payments, (iv) failure of the issuer to make scheduled interest and principal payments, (v) whether the issuer, or series of issuers or an industry has suffered a catastrophic loss or has exhausted natural resources, (vi) 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 Products, changes in forecasted cash flows after considering the changes in the financial condition of the underlying loan obligors and 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) changes in the rating of the security by a rating agency, and (ix) other subjective factors, including concentrations and information obtained from regulators.

The methodology and significant inputs used to determine the amount of credit loss 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 at the time of purchase for fixed-rate securities and the spot rate at the date of evaluation of credit loss for floating-rate securities.

•When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall credit loss 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 single best estimate, the most likely outcome in a range of possible 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; any private and public sector programs to restructure foreign government securities and municipals; 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 Products including, but not limited to: the quality of underlying collateral, historical performance of the underlying loan obligors, historical rent and vacancy levels, changes in the financial condition of the underlying loan obligors, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, changes in the quality of credit enhancement and the payment priority within the tranche structure of the security.

With respect to securities that have attributes of debt and equity (“perpetual hybrid securities”), consideration is given in the credit loss 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 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.

After the adoption of credit loss guidance on January 1, 2020, in periods subsequent to the recognition of an initial ACL on a security, the Company reassesses credit loss quarterly. Subsequent increases or decreases in the expected cash flow from the security result in corresponding decreases or increases in the ACL which are recognized in earnings and reported within net investment gains (losses); however, the previously recorded ACL is not reduced to an amount below zero. Full or partial write-offs are deducted from the ACL in the period the security, or a portion thereof, is considered uncollectible. Recoveries of amounts previously written off are recorded to the ACL in the period received. When the Company has the intent-to-sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, any ACL is written off and the amortized cost is written down to estimated fair value through a charge within net investment gains (losses), which becomes the new amortized cost of the security.

Methodologies used during the year ended December 31, 2019 to evaluate the recoverability of a security in an unrealized loss position using OTTI guidance were similar to those used after the adoption of credit loss guidance on January 1, 2020, except: (i) the length of time estimated fair value had been below amortized cost was considered for securities, and (ii) for non-functional currency denominated securities, the impact from weakening non-functional currencies on securities that were near maturity was considered in the evaluation. In addition, measurement methodologies were similar, except: (i) a fair value floor was not utilized to limit the credit loss recognized in earnings, (ii) the amortized cost of securities was adjusted for the OTTI to the expected recoverable amount and an ACL was not utilized, (iii) subsequent to a credit loss being recognized, increases in expected cash flows from the security did not result in an immediate increase in valuation recognized in earnings through net investment gains (losses) from reduction of the ACL instead such increases in value were recorded as unrecognized unrealized gains in OCI, and (iv) in periods subsequent to the recognition of OTTI on a security, the Company accounted 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 was accreted over the remaining term of the security in a prospective manner based on the amount and timing of estimated future cash flows.

Evaluation of Fixed Maturity Securities AFS in an Unrealized Loss Position

Gross unrealized losses on securities without an ACL increased $986 million for the year ended December 31, 2021 to $2.4 billion primarily due to increases in interest rates and widening of credit spreads.

Gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater were $1.2 billion at December 31, 2021, or 48% of the total gross unrealized losses on securities without an ACL.

Investment Grade Fixed Maturity Securities AFS

Of the $1.2 billion of gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater, $1.0 billion, or 89%, were related to 817 investment grade securities. Unrealized losses on investment grade securities are principally related to widening credit spreads since purchase and, with respect to fixed-rate securities, rising interest rates since purchase.

Below Investment Grade Fixed Maturity Securities AFS

Of the $1.2 billion of gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater, $129 million, or 11%, were related to 162 below investment grade securities. Unrealized losses on below investment grade securities are principally related to U.S. and foreign corporate securities (primarily industrial and consumer), foreign government securities and CMBS and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainty, as well as with respect to fixed-rate securities, rising interest rates since purchase. Management evaluates U.S. and foreign corporate securities based on several factors such as expected cash flows, financial condition and near-term and long-term prospects of the issuers. Management evaluates foreign government securities based on several factors impacting the issuers such as expected cash flows, financial condition of the issuers and any country specific economic conditions or public sector programs to restructure foreign government securities. Management evaluates CMBS based on actual and projected cash flows after considering the quality of underlying collateral, credit enhancements, 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.

Current Period Evaluation

At December 31, 2021, with respect to securities in an unrealized loss position without an ACL, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost. Based on the Company’s current evaluation of its securities in an unrealized loss position without an ACL, the Company concluded that these securities had not incurred a credit loss and should not have an ACL at December 31, 2021.

Future provisions for credit loss 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 and collateral valuation.

Rollforward of Allowance for Credit Loss for Fixed Maturity Securities AFS By Sector

The rollforward of ACL for fixed maturity securities AFS by sector is as follows:


	U.S. Corporate		Foreign Corporate		Foreign Government		RMBS		CMBS		Total
For the Year Ended December 31, 2021	(In millions)
Balance at January 1,	$	44	$	16	$	21	$	—	$	—	$	81
Additions:
ACL not previously recorded	48		26		—		—		11		85

Changes for securities with previously recorded ACL	3		(4)		—		—		3		2
Reductions:
Securities sold or exchanged	(52)		(10)		—		—		—		(62)
Securities intended/required to be sold prior to recovery of amortized cost basis	—		—		—		—		—		—
Dispositions (1)	—				(2)		—		—		(2)
Write-offs	(13)		—		—		—		—		(13)

Balance at December 31,	$	30	$	28	$	19	$	—	$	14	$	91


	U.S. Corporate		Foreign Corporate		Foreign Government		RMBS		CMBS		Total
For the Year Ended December 31, 2020	(In millions)
Balance at January 1,	$	—	$	—	$	—	$	—	$	—	$	—
Additions:
ACL not previously recorded	81		18		139		2		—		240

Reductions:
Changes for securities with previously recorded ACL	(5)		(2)		(5)		(2)		—		(14)
Securities sold or exchanged	(31)		—		(102)		—		—		(133)
Securities intended/required to be sold prior to recovery of amortized cost basis	(1)		—		—		—		—		(1)
Dispositions (1)	—		—		(11)		—		—		(11)
Write-offs	—		—		—		—		—		—

Balance at December 31,	$	44	$	16	$	21	$	—	$	—	$	81

________________

(1)In connection with the disposition of MetLife Seguros, ACL was reduced by $2 million for the year ended December 31, 2021. In connection with the disposition of MetLife Seguros de Retiro, ACL was reduced by $11 million for the year ended December 31, 2020. See Note 3 for additional information on the Company’s business dispositions.

Equity Securities

The following table presents equity securities by security type. Common stock includes common stock, exchange traded funds, mutual funds and real estate investment trusts.


	December 31,
	2021						2020
	Cost		Net Unrealized Gains (Losses) (1)		Estimated Fair Value		Cost		Net Unrealized Gains (Losses) (1)		Estimated Fair Value
Security Type
			(Dollars in millions)
Common stock	$	784	$	295	$	1,079	$	644	$	135	$	779
Non-redeemable preferred stock	189		1		190		297		3		300
Total	$	973	$	296	$	1,269	$	941	$	138	$	1,079

________________

(1)Represents cumulative changes in estimated fair value, recognized in earnings, and not in OCI.

Contractholder-Directed Equity Securities and FVO Securities

The following table presents these investments by asset type. Unit-linked investments are primarily equity securities (including mutual funds) and, to a lesser extent, fixed income investments and cash and cash equivalents.


	December 31,
	2021						2020
	Cost or Amortized Cost		Net Unrealized Gains (Losses) (1)		Estimated Fair Value		Cost or Amortized Cost		Net Unrealized Gains (Losses) (1)		Estimated Fair Value
Asset Type
			(Dollars in millions)
Unit-linked investments	$	8,643	$	1,897	$	10,540	$	9,934	$	1,774	$	11,708
FVO Securities	1,243		359		1,602		1,405		206		1,611
Total	$	9,886	$	2,256	$	12,142	$	11,339	$	1,980	$	13,319

________________

(1)Represents cumulative changes in estimated fair value, recognized in earnings, and not in OCI.

Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:


	December 31,
	2021				2020
Portfolio Segment	Carrying Value		% of Total		Carrying Value		% of Total
	(Dollars in millions)

Commercial	$	50,553	63.7	%	$	52,434	62.5	%
Agricultural	18,111		22.8		18,128		21.6
Residential	11,196		14.1		13,782		16.4
Total amortized cost	79,860		100.6		84,344		100.5
Allowance for credit loss	(634)		(0.8)		(590)		(0.7)
Subtotal mortgage loans, net	79,226		99.8		83,754		99.8
Residential — FVO	127		0.2		165		0.2



Total mortgage loans, net	$	79,353	100.0	%	$	83,919	100.0	%

The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis, with changes in estimated fair value included in net investment income. See Note 10 for further information.

The amount of net (discounts) premiums and deferred (fees) expenses, included within total amortized cost, primarily attributable to residential mortgage loans was ($759) million and ($946) million at December 31, 2021 and 2020, respectively. The accrued interest income excluded from total amortized cost for commercial, agricultural and residential mortgage loans at December 31, 2021 was $180 million, $161 million, and $86 million, respectively. The accrued interest income excluded from total amortized cost for commercial, agricultural and residential mortgage loans at December 31, 2020 was $209 million, $174 million and $108 million, respectively.

Purchases of mortgage loans, consisting primarily of residential mortgage loans, were $1.8 billion, $3.3 billion and $4.8 billion for the years ended December 31, 2021, 2020 and 2019, respectively.

Rollforward of Allowance for Credit Loss for Mortgage Loans by Portfolio Segment

The rollforward of ACL for mortgage loans, by portfolio segment, is as follows:


	For the Years Ended December 31,
	2021								2020								2019
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Balance at January 1,	$	252	$	106	$	232	$	590	$	246	$	52	$	55	$	353	$	238	$	46	$	58	$	342
Adoption of credit loss guidance	—		—		—		—		(118)		35		161		78		—		—		—		—
Provision (release)	88		6		(27)		67		124		22		30		176		8		11		7		26
Initial credit losses on PCD loans (1)	—		—		3		3		—		—		18		18		—		—		—		—
Charge-offs, net of recoveries	—		(24)		(2)		(26)		—		(2)		(32)		(34)		—		(5)		(10)		(15)
HFS transfer	—		—		—		—		—		(1)		—		(1)		—		—		—		—
Balance at December 31,	$	340	$	88	$	206	$	634	$	252	$	106	$	232	$	590	$	246	$	52	$	55	$	353

__________________

(1)Represents the initial credit losses accounted for as purchased financial assets with credit deterioration (“PCD”).

Allowance for Credit Loss Methodology

After the adoption of credit loss guidance on January 1, 2020, the Company records an allowance for expected lifetime credit loss in earnings within net investment gains (losses) in an amount that represents the portion of the amortized cost basis of mortgage loans that the Company does not expect to collect, resulting in mortgage loans being presented at the net amount expected to be collected. In determining the Company’s ACL, management applies significant judgment to estimate expected lifetime credit loss, including: (i) pooling mortgage loans that share similar risk characteristics, (ii) considering expected lifetime credit loss over the contractual term of its mortgage loans adjusted for expected prepayments and any extensions, and (iii) considering past events and current and forecasted economic conditions. Each of the Company’s commercial, agricultural and residential mortgage loan portfolio segments are evaluated separately. The ACL is calculated for each mortgage loan portfolio segment based on inputs unique to each loan portfolio segment. On a quarterly basis, mortgage loans within a portfolio segment that share similar risk characteristics, such as internal risk ratings or consumer credit scores, are pooled for calculation of ACL. On an ongoing basis, mortgage loans with dissimilar risk characteristics (i.e., loans with significant declines in credit quality), collateral dependent mortgage loans (i.e., when the borrower is experiencing financial difficulty, including when foreclosure is reasonably possible or probable) and reasonably expected troubled debt restructurings (“TDRs”) (i.e., the Company grants concessions to borrower that is experiencing financial difficulties) are evaluated individually for credit loss. The ACL for loans evaluated individually are established using the same methodologies for all three portfolio segments. For example, the ACL for a collateral dependent loan is established as the excess of amortized cost over the estimated fair value of the loan’s underlying collateral, less selling cost when foreclosure is probable. Accordingly, the change in the estimated fair value of collateral dependent loans, which are evaluated individually for credit loss, is recorded as a change in the ACL which is recorded on a quarterly basis as a charge or credit to earnings in net investment gains (losses).

During the year ended December 31, 2019, prior to the adoption of credit loss guidance on January 1, 2020, evaluation and measurement methodologies in determining the ACL were similar, except: (i) credit loss was recognized in earnings within net investment gains (losses) when incurred (when it was probable, based on current information and events, that all amounts due under the loan agreement would not be collected), (ii) pooling of loans with similar risk characteristics was permitted, but not required, (iii) forecasts of economic conditions were not considered in the evaluation, (iv) measurement of the expected lifetime credit loss over the contractual term, or expected term, was not considered in the measurement, and (v) the credit loss for loans evaluated individually could also be determined using either discounted cash flows using the loans’ original effective interest rate or observable market prices.

Commercial and Agricultural Mortgage Loan Portfolio Segments

Commercial and agricultural mortgage loan ACL are calculated in a similar manner. Within each loan portfolio segment, commercial and agricultural, loans are pooled by internal risk rating. Estimated lifetime loss rates, which vary by internal risk rating, are applied to the amortized cost of each loan, excluding accrued investment income, on a quarterly basis to develop the ACL. Internal risk ratings are based on an assessment of the loan’s credit quality, which can change over time. The estimated lifetime loss rates are based on several loan portfolio segment-specific factors, including (i) the Company’s experience with defaults and loss severity, (ii) expected default and loss severity over the forecast period, (iii) current and forecasted economic conditions including growth, inflation, interest rates and unemployment levels, (iv) loan specific characteristics including loan-to-value (“LTV”) ratios, and (v) internal risk ratings. These evaluations are revised as conditions change and new information becomes available. The Company uses its several decades of historical default and loss severity experience which capture multiple economic cycles. The Company uses a forecast of economic assumptions for a two-year period for most of its commercial and agricultural mortgage loans, while a one-year period is used for loans originated in certain markets. After the applicable forecast period, the Company reverts to its historical loss experience using a straight-line basis over two years. 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, recent loss and recovery trend experience as compared to historical loss and recovery experience, and loan specific characteristics including debt service coverage ratios (“DSCR”). In estimating expected lifetime credit loss over the term of its commercial mortgage loans, the Company adjusts for expected prepayment and extension experience during the forecast period using historical prepayment and extension experience considering the expected position in the economic cycle and the loan profile (i.e., floating rate, shorter-term fixed rate and longer-term fixed rate) and after the forecast period using long-term historical prepayment 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. In estimating expected lifetime credit loss over the term of its agricultural mortgage loans, the Company’s experience is much less sensitive to the position in the economic cycle and by loan profile; accordingly, historical prepayment experience is used, while extension terms are not prevalent with the Company’s agricultural mortgage loans.

Commercial mortgage loans are reviewed on an ongoing basis, which review includes, but is not limited to, an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, LTV ratios, DSCR 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 LTV ratios and lower DSCR. Agricultural mortgage loans are reviewed on an ongoing basis, which review includes, but is not limited to, property inspections, market analysis, estimated valuations of the underlying collateral, LTV ratios and borrower creditworthiness, as well as reviews on a geographic and property-type basis. The monitoring process for agricultural mortgage loans also focuses on higher risk loans.

For commercial mortgage loans, the primary credit quality indicator is the DSCR, 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 DSCR, the higher the risk of experiencing a credit loss. The Company also reviews the LTV ratio of its commercial mortgage loan portfolio. LTV ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the LTV ratio, the higher the risk of experiencing a credit loss. The DSCR and the values utilized in calculating the ratio are updated routinely. In addition, the LTV 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 LTV 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.

Commitments to lend: After loans are approved, the Company makes commitments to lend and, typically, borrowers draw down on some or all of the commitments. The timing of mortgage loan funding is based on the commitment expiration dates. A liability for credit loss for unfunded commercial and agricultural mortgage loan commitments that are not unconditionally cancellable is recognized in earnings and is reported within net investment gains (losses). The liability is based on estimated lifetime loss rates as described above and the amount of the outstanding commitments, which for lines of credit, considers estimated utilization rates. When the commitment is funded or expires, the liability is adjusted accordingly.

Residential Mortgage Loan Portfolio Segment

The Company’s residential mortgage loan portfolio is comprised primarily of purchased closed end, amortizing residential mortgage loans, including both performing loans purchased within 12 months of origination and reperforming loans purchased after they have been performing for at least 12 months post-modification. Residential mortgage loans are pooled by loan type (i.e., new origination and reperforming) and pooled by similar risk profiles (including consumer credit score and LTV ratios). Estimated lifetime loss rates, which vary by loan type and risk profile, are applied to the amortized cost of each loan excluding accrued investment income on a quarterly basis to develop the ACL. The estimated lifetime loss rates are based on several factors, including (i) industry historical experience and expected results over the forecast period for defaults, (ii) loss severity, (iii) prepayment rates, (iv) current and forecasted economic conditions including growth, inflation, interest rates and unemployment levels, and (v) loan pool specific characteristics including consumer credit scores, LTV ratios, payment history and home prices. These evaluations are revised as conditions change and new information becomes available. The Company uses industry historical experience which captures multiple economic cycles as the Company has purchased most of its residential mortgage loans in the last five years. The Company uses a forecast of economic assumptions for a two-year period for most of its residential mortgage loans. After the applicable forecast period, the Company immediately reverts to industry historical loss experience.

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.

Mortgage Loan Concessions

In response to the adverse economic impact of the COVID-19 pandemic, in 2021 and 2020, the Company granted concessions to certain of its commercial, agricultural and residential mortgage loan borrowers, including payment deferrals and other loan modifications. The Company has elected the option under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the Consolidated Appropriations Act, 2021 and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) (“Interagency Statement”) issued by bank regulatory agencies, not to account for or report qualifying concessions as TDRs and not to classify such loans as either past due or nonaccrual during the payment deferral period. Additionally, in accordance with the FASB’s published response to a COVID-19 pandemic technical inquiry, the Company continues to accrue interest income on such loans that have deferred payment. The Company records an ACL on this accrued interest income through earnings, which is reported within net investment gains (losses).

Commercial

For some commercial mortgage loan borrowers (principally in the retail and hotel sectors), the Company granted concessions which were primarily interest and principal payment deferrals generally ranging from three to four months and, to a much lesser extent, maturity date extensions. Deferred commercial mortgage loan interest and principal payments were $27 million at December 31, 2021.

Agricultural

For some agricultural mortgage loan borrowers (principally in the annual crops and agribusiness sectors), the Company granted concessions which were primarily principal payment deferrals generally ranging from three to 12

months, and covenant changes and, to a much lesser extent, maturity date extensions. Deferred agricultural mortgage loan interest and principal payments were $4 million at December 31, 2021.

Residential

For some residential mortgage loan borrowers, the Company granted concessions which were primarily three-month interest and principal payment deferrals. Deferred residential mortgage loan interest and principal payments were $18 million at December 31, 2021.

Troubled Debt Restructurings

The Company assesses loan concessions prior to the issuance of, or outside the scope of, the CARES Act, the Consolidated Appropriations Act, 2021 and the Interagency Statement on a case-by-case basis to evaluate whether a TDR has occurred. The Company may grant concessions to borrowers experiencing financial difficulties, which, if not significant, are not classified as TDRs, while more significant concessions are classified as TDRs. 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 ACL recorded.

For both years ended December 31, 2021 and 2020, the Company did not have any commercial mortgage loans modified in a TDR; and did not have a significant amount of agricultural and residential mortgage loans modified in a TDR.

For both years ended December 31, 2021 and 2020, the Company did not have a significant amount of mortgage loans modified in a TDR with subsequent payment default.

Credit Quality of Mortgage Loans by Portfolio Segment

The amortized cost of commercial mortgage loans by credit quality indicator and vintage year was as follows at December 31, 2021:


Credit Quality Indicator	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
LTV ratios:
Less than 65%	$	5,675	$	4,970	$	5,379	$	5,650	$	4,176	$	10,873	$	2,443	$	39,166	77.5	%
65% to 75%	1,461		760		2,601		1,400		594		1,857		—		8,673		17.1
76% to 80%	3		50		414		200		161		218		—		1,046		2.1
Greater than 80%	—		—		4		79		290		1,295		—		1,668		3.3
Total	$	7,139	$	5,780	$	8,398	$	7,329	$	5,221	$	14,243	$	2,443	$	50,553	100.0	%
DSCR:
> 1.20x	$	6,418	$	5,288	$	7,682	$	6,787	$	4,780	$	11,199	$	2,164	$	44,318	87.7	%
1.00x - 1.20x	272		133		76		258		29		1,000		—		1,768		3.5
<1.00x	449		359		640		284		412		2,044		279		4,467		8.8
Total	$	7,139	$	5,780	$	8,398	$	7,329	$	5,221	$	14,243	$	2,443	$	50,553	100.0	%

The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at December 31, 2021:


Credit Quality Indicator	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
LTV ratios:
Less than 65%	$	2,483	$	2,989	$	1,855	$	2,549	$	922	$	4,325	$	968	$	16,091	88.8	%
65% to 75%	329		383		234		205		40		579		120		1,890		10.4
76% to 80%	—		—		—		—		—		11		—		11		0.1
Greater than 80%	—		—		76		—		—		43		—		119		0.7
Total	$	2,812	$	3,372	$	2,165	$	2,754	$	962	$	4,958	$	1,088	$	18,111	100.0	%

The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at December 31, 2021:


Credit Quality Indicator	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
Performance indicators:
Performing	$	695	$	460	$	1,277	$	583	$	283	$	7,448	$	—	$	10,746	96.0	%
Nonperforming (1)	2		5		54		20		4		365		—		450		4.0
Total	$	697	$	465	$	1,331	$	603	$	287	$	7,813	$	—	$	11,196	100.0	%

__________________

(1)Includes residential mortgage loans in process of foreclosure of $70 million and $103 million at December 31, 2021 and 2020, respectively.

LTV ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. The amortized cost of commercial and agricultural mortgage loans with an LTV ratio in excess of 100% was $809 million, or 1% of total commercial and agricultural mortgage loans at December 31, 2021.

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, 2021 and 2020. The Company defines delinquency consistent with industry practice, when mortgage loans are past due more than two or more months, as applicable, by portfolio segment. The past due and nonaccrual mortgage loans at amortized cost, prior to ACL, by portfolio segment, were as follows:


	Past Due				Greater than 90 Days Past Due and Still Accruing Interest				Nonaccrual
Portfolio Segment	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
	(In millions)
Commercial	$	13	$	10	$	13	$	7	$	155	$	317
Agricultural	124		252		16		20		225		266
Residential	450		556		8		64		442		534
Total	$	587	$	818	$	37	$	91	$	822	$	1,117

The amortized cost for nonaccrual commercial, agricultural and residential mortgage loans at beginning of year 2020 was $176 million, $137 million and $418 million, respectively. The amortized cost for nonaccrual commercial mortgage loans with no ACL was $0 and $168 million at December 31, 2021 and 2020, respectively. The amortized cost for nonaccrual agricultural mortgage loans with no ACL was $134 million and $178 million at December 31, 2021 and 2020, respectively. There were no nonaccrual residential mortgage loans without an ACL at either December 31, 2021 or 2020.

Purchased Investments with Credit Deterioration

Investments that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination are classified as PCD. The amortized cost for PCD investments is the purchase price plus an ACL for the initial estimate of expected lifetime credit losses established upon purchase. Subsequent changes in the ACL on PCD investments are recognized in earnings and are reported in net investment gains (losses). The non-credit discount or premium is accreted or amortized to net investment income on an effective yield basis.

The following table reconciles the contractual principal to the purchase price of PCD investments:


	For the Year Ended December 31, 2021
	Contractual Principal		ACL at Acquisition		Non-Credit (Discount) Premium		Purchase Price
	(In millions)

PCD residential mortgage loans	$	514	$	(3)	$	32	$	543

Prior to the adoption of credit loss guidance for the recognition of credit losses on financial instruments, the Company applied applicable guidance for investments acquired with evidence of credit quality deterioration since origination, known as PCI investments. The Company’s PCI investments had an outstanding principal balance of $3.3 billion at December 31, 2019, which represents the contractually required principal and accrued interest payments whether or not currently due and a carrying value (estimated fair value of the investments plus accrued interest) of $2.7 billion at December 31, 2019. Accretion of accretable yield on PCI investments recognized in net investment income was $178 million for the year ended December 31, 2019.

Real Estate and Real Estate Joint Ventures

The Company’s real estate investment portfolio is diversified by property type, geography and income stream, including income from operating leases, operating income and equity in earnings from equity method real estate joint ventures. Real estate investments, by income type, as well as income earned, were as follows at and for the periods indicated:


	December 31,				For the Years Ended December 31,
	2021		2020		2021		2020		2019
Income Type	Carrying Value				Income
	(In millions)
Leased real estate investments	$	5,146	$	5,450	$	429	$	435	$	380
Other real estate investments	474		419		199		133		192
Real estate joint ventures	6,596		6,064		326		(36)		104
Total real estate and real estate joint ventures	$	12,216	$	11,933	$	954	$	532	$	676

The carrying value of real estate investments acquired through foreclosure was $181 million and $20 million at December 31, 2021 and 2020, respectively. Depreciation expense on real estate investments was $123 million, $123 million and $100 million for the years ended December 31, 2021, 2020 and 2019, respectively. Real estate investments were net of accumulated depreciation of $883 million and $1.1 billion at December 31, 2021 and 2020, respectively.

Leases

Leased Real Estate Investments - Operating Leases

The Company, as lessor, leases investment real estate, principally commercial real estate for office and retail use, through a variety of operating lease arrangements, which typically include tenant reimbursement for property operating costs and options to renew or extend the lease. In some circumstances, leases may include an option for the lessee to purchase the property. In addition, certain leases of retail space may stipulate that a portion of the income earned is contingent upon the level of the tenants’ revenues. The Company has elected a practical expedient of not separating non-lease components related to reimbursement of property operating costs from associated lease components. These property operating costs have the same timing and pattern of transfer as the related lease component, because they are incurred over the same period of time as the operating lease. Therefore, the combined component is accounted for as a single operating lease. Risk is managed through lessee credit analysis, property type diversification, and geographic diversification. Leased real estate investments and income earned, by property type, were as follows at and for the periods indicated:


	December 31,				For the Years Ended December 31,
	2021		2020		2021		2020		2019
Property Type	Carrying Value				Income
	(In millions)
Leased real estate investments:
Office	$	2,322	$	2,351	$	196	$	188	$	175
Retail	938		1,147		75		93		102
Apartment	828		810		66		62		24
Land	635		621		28		25		21
Industrial	339		332		58		56		46
Hotel	84		96		6		5		7
Other	—		93		—		6		5
Total leased real estate investments	$	5,146	$	5,450	$	429	$	435	$	380

Future contractual receipts under operating leases at December 31, 2021 were $304 million in 2022, $259 million in 2023, $217 million in 2024, $197 million in 2025, $167 million in 2026, $1.2 billion thereafter and, in total, were $2.3 billion.

Leveraged and Direct Financing Leases

The Company has diversified leveraged and direct financing lease portfolios. Its leveraged leases principally include renewable energy generation facilities, rail cars, commercial real estate and commercial aircraft, and its direct financing leases principally include commercial real estate. These assets are leased through a variety of lease arrangements, which may include options to renew or extend the lease and options for the lessee to purchase the property. Residual values are estimated using available third-party data at inception of the lease. Risk is managed through lessee credit analysis, asset allocation, geographic diversification, and ongoing reviews of estimated residual values, using available third-party data and, in certain leases, linking the amount of future rental receipts to changes in inflation rates. Generally, estimated residual values are not guaranteed by the lessee or a third-party.

Investment in leveraged and direct financing leases consisted of the following at:


	December 31,
	2021				2020
	Leveraged Leases		Direct Financing Leases		Leveraged Leases		Direct Financing Leases
	(In millions)
Lease receivables, net (1)	$	542	$	1,755	$	597	$	2,055
Estimated residual values	560		39		573		42
Subtotal	1,102		1,794		1,170		2,097
Unearned income	(284)		(642)		(318)		(749)
Investment in leases, before ACL	818		1,152		852		1,348
ACL	(31)		(9)		(36)		(8)
Investment in leases, net of ACL	$	787	$	1,143	$	816	$	1,340

__________________

(1)Future contractual receipts under direct financing leases at December 31, 2021 were $100 million in 2022, $107 million in 2023, $91 million in 2024, $90 million in 2025, $102 million in 2026, $1.3 billion thereafter and, in total were $1.8 billion.

Lease receivables are generally due in periodic installments. The payment periods for leveraged leases generally range from one to 10 years, but in certain circumstances can be over 10 years, while the payment periods for direct financing

leases generally range from one to 25 years but in certain circumstances can be over 25 years. For lease receivables, the primary credit quality indicator is whether the lease receivable is performing or nonperforming, which is assessed monthly. The Company generally defines nonperforming lease receivables as those that are 90 days or more past due. At both December 31, 2021 and 2020, all leveraged lease receivables were performing. At December 31, 2021 and 2020, 99% and 96% of direct financing lease receivables were performing, respectively.

The deferred income tax liability related to leveraged leases was $272 million and $287 million at December 31, 2021 and 2020, respectively.

The components of income from investment in leveraged and direct financing leases, excluding net investment gains (losses), were as follows:


	For the Years Ended December 31,
	2021				2020				2019
	Leveraged Leases		Direct Financing Leases		Leveraged Leases		Direct Financing Leases		Leveraged Leases		Direct Financing Leases
	(In millions)
Lease investment income	$	34	$	96	$	39	$	106	$	48	$	109
Less: Income tax expense	7		20		8		22		10		23
Lease investment income, net of income tax	$	27	$	76	$	31	$	84	$	38	$	86

After the adoption of credit loss guidance on January 1, 2020, the Company records an allowance for expected lifetime credit loss in earnings within investment gains (losses) in an amount that represents the portion of the investment in leases that the Company does not expect to collect, resulting in the investment in leases being presented at the net amount expected to be collected. In determining the ACL, management applies significant judgment to estimate expected lifetime credit loss, including: (i) pooling leases that share similar risk characteristics, (ii) considering expected lifetime credit loss over the contractual term of the lease, and (iii) considering past events and current and forecasted economic conditions. Leases with dissimilar risk characteristics are evaluated individually for credit loss. Expected lifetime credit loss on leveraged lease receivables is estimated using a probability of default and loss given default model, where the probability of default incorporates third party credit ratings of the lessee and the related historical default data. Direct financing leases principally relate to leases of commercial real estate; accordingly, expected lifetime credit loss is estimated on such lease receivables consistent with the methodology for commercial mortgage loans (see “— Mortgage Loans — Allowance for Credit Loss Methodology”). The Company also assesses the non-guaranteed residual values for recoverability by comparison to the current estimated fair value of the leased asset and considers other relevant market information such as independent third-party forecasts, consulting, asset brokerage and investment banking reports and data, comparable market transactions, and factors such as the competitive dynamics impacting specific industries, technological change and obsolescence, government and regulatory rules, tax policy, potential environmental liabilities and litigation.

During the year ended December 31, 2019, prior to the adoption of credit loss guidance on January 1, 2020, lease impairment losses were recognized in earnings within investment gains (losses) as incurred. Under the incurred loss model, if all amounts due under the lease agreement would not be collected based on current information and events, an impairment loss was recognized in earnings. The impairment loss was recorded as a reduction of the investment in lease and within net investment gains (losses).

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, annuities funding structured settlement claims (see Note 1), direct financing and leveraged leases (see “— Leveraged and Direct Financing Leases”), operating joint ventures (see Note 1) and FHLB common stock (see “— Invested Assets on Deposit, Held in Trust and Pledged as Collateral”).

Tax Credit Partnerships

The carrying value of tax credit partnerships was $947 million and $1.1 billion at December 31, 2021 and 2020, respectively. Losses from tax credit partnerships included within net investment income were $195 million, $226 million and $240 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Cash Equivalents

Cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $9.0 billion and $9.7 billion, principally at estimated fair value, at December 31, 2021 and 2020, respectively.

Net Unrealized Investment Gains (Losses)

Unrealized investment gains (losses) on fixed maturity securities AFS and derivatives and the effect on policyholder liabilities, DAC, VOBA and DSI that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI.

The components of net unrealized investment gains (losses), included in AOCI, were as follows:


	December 31,
	2021		2020		2019
	(In millions)
Fixed maturity securities AFS	$	29,461	$	44,415	$	30,083

Derivatives	2,061		1,924		2,209
Other	389		267		310
Subtotal	31,911		46,606		32,602
Amounts allocated from:
Policyholder liabilities	(4,978)		(10,797)		(3,039)

DAC, VOBA and DSI	(3,208)		(4,050)		(2,716)

Subtotal	(8,186)		(14,847)		(5,755)
Deferred income tax benefit (expense)	(6,031)		(8,009)		(6,850)
Net unrealized investment gains (losses)	17,694		23,750		19,997
Net unrealized investment gains (losses) attributable to noncontrolling interests	(23)		(20)		(16)
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$	17,671	$	23,730	$	19,981

The changes in net unrealized investment gains (losses) were as follows:


	For the Years Ended December 31,
	2021		2020		2019
	(In millions)
Balance at January 1,	$	23,730	$	19,981	$	8,655
Cumulative effects of changes in accounting principles, net of income tax	—		—		21
Unrealized investment gains (losses) during the year	(14,695)		14,004		18,778
Unrealized investment gains (losses) relating to:
Policyholder liabilities	5,819		(7,758)		(2,642)

DAC, VOBA and DSI	842		(1,334)		(1,485)

Deferred income tax benefit (expense)	1,978		(1,159)		(3,340)
Net unrealized investment gains (losses)	17,674		23,734		19,987
Net unrealized investment gains (losses) attributable to noncontrolling interests	(3)		(4)		(6)
Balance at December 31,	$	17,671	$	23,730	$	19,981
Change in net unrealized investment gains (losses)	$	(6,056)	$	3,753	$	11,332
Change in net unrealized investment gains (losses) attributable to noncontrolling interests	(3)		(4)		(6)
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$	(6,059)	$	3,749	$	11,326

Concentrations of Credit Risk

Investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at estimated fair value at December 31, 2021 and 2020, were in fixed income securities of the Japanese government and its agencies of $32.7 billion and $35.8 billion, respectively, and in fixed income securities of the South Korean government and its agencies of $7.1 billion and $8.0 billion, respectively.

Securities Lending Transactions and Repurchase Agreements

Securities, Collateral and Reinvestment Portfolio

A summary of these transactions and agreements accounted for as secured borrowings were as follows:


	December 31,
	2021						2020
	Securities (1)						Securities (1)
Agreement Type	Estimated Fair Value		Cash Collateral Received from Counterparties (2)		Reinvestment Portfolio at Estimated Fair Value		Estimated Fair Value		Cash Collateral Received from Counterparties (2)		Reinvestment Portfolio at Estimated Fair Value
	(In millions)
Securities lending	$	20,654	$	21,055	$	21,319	$	18,262	$	18,628	$	18,884
Repurchase agreements	$	3,416	$	3,325	$	3,357	$	3,276	$	3,210	$	3,251

__________________

(1)These securities are included within fixed maturity securities AFS and short-term investments.

(2)The liability for cash collateral is included within payables for collateral under securities loaned and other transactions.

Contractual Maturities

Contractual maturities of these transactions and agreements accounted for as secured borrowings were as follows:


	December 31,
	2021										2020
	Remaining Maturities										Remaining Maturities
Security Type	Open (1)		1 Month or Less		Over 1 Month to 6 Months		Over 6 Months to 1 Year		Total		Open (1)		1 Month or Less		Over 1 Month to 6 Months		Over 6 Months to 1 Year		Total
	(In millions)
Cash collateral liability by security type:
Securities lending:
U.S. government and agency	$	5,900	$	7,052	$	7,055	$	—	$	20,007	$	2,946	$	10,553	$	4,009	$	—	$	17,508
Foreign government	—		285		762		—		1,047		—		291		826		—		1,117
U.S. corporate	1		—		—		—		1		3		—		—		—		3
Total	$	5,901	$	7,337	$	7,817	$	—	$	21,055	$	2,949	$	10,844	$	4,835	$	—	$	18,628
Repurchase agreements:
U.S. government and agency	$	—	$	3,325	$	—	$	—	$	3,325	$	—	$	3,210	$	—	$	—	$	3,210

__________________

(1)The related security could be returned to the Company on the next business day, which would require the Company to immediately return the cash collateral.

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell investments to meet the return obligation, it may have difficulty selling such collateral that is invested in a timely manner, be forced to sell investments in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both.

The securities lending and repurchase agreements reinvestment portfolios consist principally of high quality, liquid, publicly-traded fixed maturity securities AFS, short-term investments, cash equivalents or cash. If the securities, or the reinvestment portfolio become less liquid, liquidity resources within the general account are available to meet any potential cash demands when securities are put back by the counterparty.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value and were as follows at:


	December 31,
	2021		2020
	(In millions)
Invested assets on deposit (regulatory deposits)	$	1,872	$	1,933
Invested assets held in trust (external reinsurance agreements) (1)	1,114		1,124
Invested assets pledged as collateral (2)	24,261		25,884
Total invested assets on deposit, held in trust and pledged as collateral	$	27,247	$	28,941

__________________

(1)Represents assets held in trust related to third-party reinsurance agreements. Excludes assets held in trust related to reinsurance agreements between wholly-owned subsidiaries of $2.1 billion and $2.4 billion at December 31, 2021 and 2020, respectively.

(2)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4), derivative transactions (see Note 9), secured debt and short-term debt related to repurchase agreements (see Note 13), and a collateral financing arrangement (see Note 14).

See “— Securities Lending Transactions and Repurchase Agreements” for information regarding securities supporting securities lending transactions and repurchase agreements and Note 7 for information regarding investments designated to the closed block. In addition, the Company’s investment in FHLB common stock, included within other invested assets, which is considered restricted until redeemed by the issuers, was $769 million and $814 million, at redemption value, at December 31, 2021 and 2020, respectively.

Collectively Significant Equity Method Investments

The Company holds investments in real estate joint ventures, real estate funds and other limited partnership interests consisting of private equity funds, hedge funds, real estate joint ventures, real estate funds and other funds. The portion of these investments accounted for under the equity method had a carrying value of $23.5 billion at December 31, 2021. The Company’s maximum exposure to loss related to these equity method investments is limited to the carrying value of these investments plus unfunded commitments of $7.6 billion at December 31, 2021. Except for certain real estate joint ventures and certain funds, the Company’s investments in its remaining real estate funds and other limited partnership interests are generally of a passive nature in that the Company does not participate in the management of the entities.

As described in Note 1, the Company generally recognizes its share of earnings in its equity method investments within net investment income using 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. Aggregate net investment income from these equity method investments exceeded 10% of the Company’s consolidated pre-tax income (loss) for the three most recent annual periods.

The following aggregated summarized financial data reflects the latest available financial information and does not represent the Company’s proportionate share of the assets, liabilities, or earnings of such entities. Aggregate total assets of these entities totaled $1.1 trillion and $704.5 billion at December 31, 2021 and 2020, respectively. Aggregate total liabilities of these entities totaled $149.4 billion and $99.4 billion at December 31, 2021 and 2020, respectively. Aggregate net income (loss) of these entities totaled $231.0 billion, $41.6 billion and $47.0 billion for the years ended December 31, 2021, 2020 and 2019, respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses).

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.

Consolidated VIEs

Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment.

The following table presents the total assets and total liabilities relating to investment related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at:


	December 31,
	2021				2020
Asset Type	Total Assets (1)		Total Liabilities		Total Assets (1)		Total Liabilities
	(In millions)
Investment funds (1)	$	292	$	1	$	258	$	1
Renewable energy partnership (1)	79		—		87		—
Other investments (2)	1		—		4		5
Total	$	372	$	1	$	349	$	6

__________________

(1) Assets of the investment funds and renewable energy partnership primarily consisted of other invested assets.

(2) Assets of other investments primarily consisted of other assets at December 31, 2021, and cash and cash equivalents at December 31, 2020.

Unconsolidated VIEs

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:


	December 31,
	2021				2020
Asset Type	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS (2)	$	62,654	$	62,654	$	60,115	$	60,115



Other limited partnership interests	13,287		20,720		8,355		14,911
Other invested assets	1,257		1,314		1,320		1,404
Other investments	776		926		619		639
Total	$	77,974	$	85,614	$	70,409	$	77,069

__________________

(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 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 $5 million and $3 million at December 31, 2021 and 2020, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.

(2)For variable interests in Structured Products included within fixed maturity securities AFS, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.

As described in Note 21, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs for each of the years ended December 31, 2021, 2020 and 2019.

The Company securitizes certain residential mortgage loans and acquires an interest in the related RMBS issued. While the Company has a variable interest in the issuer of the securities, it is not the primary beneficiary of the issuer of the securities since it does not have any rights to remove the servicer or veto rights over the servicer’s actions. The resulting gains (losses) from the securitizations are included within net investment gains (losses). The estimated fair value of the related RMBS acquired in connection with the securitizations is included in the carrying amount and maximum exposure to loss for Structured Products presented in the table above.

The Company did not securitize any loans during 2021. The carrying value and the estimated fair value of residential mortgage loans securitized during the year ended December 31, 2020 were $308 million and $313 million, respectively. Gains on securitizations were $5 million and $24 million for the years ended December 31, 2020 and 2019, respectively, which are included within net investment gains (losses). The estimated fair value of RMBS acquired in connection with these securitizations was $0 and $43 million at December 31, 2021 and 2020, respectively.

See Note 10 for information on how the estimated fair value of mortgage loans and RMBS is determined, the valuation approaches and key inputs, their placement in the fair value hierarchy, and for certain RMBS, quantitative information about the significant unobservable inputs and the sensitivity of their estimated fair value to changes in those inputs.

Net Investment Income

The composition of net investment income by asset type was as follows:


	For the Years Ended December 31,
Asset Type	2021		2020		2019
	(In millions)

Fixed maturity securities AFS	$	10,996	$	11,304	$	11,886
Equity securities	36		50		61
FVO Securities	167		140		184
Mortgage loans	3,435		3,518		3,782
Policy loans	474		498		512
Real estate and real estate joint ventures	954		532		676
Other limited partnership interests	4,927		1,000		825
Cash, cash equivalents and short-term investments	103		213		457
Operating joint ventures	77		93		84
Other	223		255		348
Subtotal investment income	21,392		17,603		18,815
Less: Investment expenses	949		1,054		1,422
Subtotal, net	20,443		16,549		17,393
Unit-linked investments	952		568		1,475
Net investment income	$	21,395	$	17,117	$	18,868

Net investment income included realized and unrealized gains (losses) recognized in earnings of $1.1 billion, $655 million, and $1.5 billion for the years ended December 31, 2021, 2020 and 2019, respectively. The amount includes realized gains (losses) on sales and disposals, primarily related to FVO Securities and Unit-linked investments, of $518 million, $422 million and $467 million for the years ended December 31, 2021, 2020 and 2019, respectively. The amount also includes unrealized gains (losses), representing changes in estimated fair value, recognized in earnings, primarily related to FVO Securities and Unit-linked investments, of $616 million, $233 million and $1.0 billion for the years ended December 31, 2021, 2020 and 2019, respectively.

Changes in estimated fair value subsequent to purchase of FVO Securities and Unit-linked investments still held as of the end of the respective periods and included in net investment income were $730 million, $489 million and $1.0 billion for the years ended December 31, 2021, 2020 and 2019, respectively.

Net investment income from equity method investments, comprised primarily of real estate joint ventures, other limited partnership interests, tax credit and renewable energy partnerships and operating joint ventures, was $5.1 billion, $829 million and $795 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Net Investment Gains (Losses)

Net Investment Gains (Losses) by Asset Type and Transaction Type

The composition of net investment gains (losses) by asset type and transaction type was as follows:


	For the Years Ended December 31,
Asset Type	2021		2020		2019
	(In millions)
















Fixed maturity securities AFS	$	66	$	297	$	267







Equity securities	108		(137)		134
Mortgage loans	(18)		(213)		(11)
Real estate and real estate joint ventures (excluding changes in estimated fair value)	502		7		399
Other limited partnership interests (excluding changes in estimated fair value)	(6)		(15)		6
Other gains (losses)	131		198		(142)
Subtotal	783		137		653
Change in estimated fair value of other limited partnership interests and real estate joint ventures	45		(4)		(14)
Non-investment portfolio gains (losses)	701		(243)		(195)

Subtotal	746		(247)		(209)
Net investment gains (losses)	$	1,529	$	(110)	$	444

Transaction Type
Realized gains (losses) on investments sold or disposed	$	711	$	634	$	854
Impairment (losses)	(24)		(63)		(261)
Recognized gains (losses):
Change in allowance for credit loss recognized in earnings	(86)		(280)		(23)
Unrealized net gains (losses) recognized in earnings	227		(158)		69
Total recognized gains (losses)	141		(438)		46
Non-investment portfolio gains (losses)	701		(243)		(195)
Net investment gains (losses)	$	1,529	$	(110)	$	444

Net realized investment gains (losses) of $1.2 billion, $1.1 billion and $1.3 billion for the years ended December 31, 2021, 2020 and 2019, respectively, represent realized gains (losses) on sales and disposals from all invested asset classes, including realized gains (losses) on sales and disposals recognized in net investment income, primarily related to FVO Securities and Unit-linked investments.

Changes in estimated fair value subsequent to purchase of equity securities still held as of the end of the period included in net investment gains (losses) were $77 million, ($127) million and $122 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Other gains (losses) included $88 million and $129 million reclassified from AOCI to earnings due to the sale of certain investments that were hedged in qualifying cash flow hedges for the years ended December 31, 2021 and 2020, respectively. Other gains (losses) also included a leveraged lease gain of $87 million for the year ended December 31, 2020. Other gains (losses) included tax credit partnership impairment (losses) of ($92) million, leveraged lease impairment (losses) of ($30) million and a renewable energy partnership disposal gain of $46 million for the year ended December 31, 2019.

See Note 3 for information regarding the impact of the Company’s business dispositions included within non-investment portfolio gains (losses).

Net investment gains (losses) includes gains (losses) from foreign currency transactions of ($10) million, $79 million and ($124) million for the years ended December 31, 2021, 2020 and 2019, respectively.

Fixed Maturity Securities AFS and Equity Securities – Composition of Net Investment Gains (Losses)

The composition of net investment gains (losses) for these securities is as follows:


	For the Years Ended December 31,
Fixed Maturity Securities AFS	2021		2020		2019
	(In millions)
Proceeds	$	54,612	$	40,809	$	51,052
Gross investment gains	$	761	$	1,125	$	889
Gross investment (losses)	(656)		(674)		(493)
Realized gains (losses) on sales and disposals	105		451		396
Net credit loss (provision) release (change in ACL recognized in earnings)	(15)		(91)		—
Impairment (loss) (1), (2)	(24)		(63)		(129)
Net credit loss (provision) release and impairment (loss)	(39)		(154)		(129)
Net investment gains (losses)	$	66	$	297	$	267

Equity Securities
Realized gains (losses) on sales and disposals	$	(69)	$	16	$	50
Unrealized net gains (losses) recognized in earnings	177		(153)		84
Net investment gains (losses)	$	108	$	(137)	$	134

__________________

(1)Impairment (loss) by sector for foreign government, consumer corporate, industrial corporate, RMBS and finance corporate securities for the year ended December 31, 2019 were ($81) million, ($23) million, ($22) million, ($2) million and ($1) million, respectively. See “— Rollforward of Allowance for Credit Loss for Fixed Maturity Securities AFS By Sector.” Due to the adoption of credit loss guidance on January 1, 2020, prior period OTTI (loss) is presented as impairment (loss).

(2)After adoption of new guidance on January 1, 2020, impairment (loss) was comprised of intent-to-sell and direct write down losses; prior to January 1, 2020, it was comprised of OTTI losses and intent-to-sell losses.

Derivatives

12 Months Ended

Dec. 31, 2021

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 securities AFS. 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 a benchmark interest rate, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate total return swaps are used by the Company to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate total return swaps in nonqualifying hedging relationships.

The Company purchases interest rate caps primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, and interest rate floors primarily to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in nonqualifying hedging relationships.

In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swap curve performance, and to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. The Company utilizes exchange-traded interest rate futures in nonqualifying hedging relationships.

Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in nonqualifying hedging relationships. Swaptions are included in interest rate options.

The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow and nonqualifying hedging relationships.

A synthetic GIC is a contract that simulates the performance of a traditional GIC through the use of financial instruments. The contractholder owns the underlying assets, and the Company provides a guarantee (or “wrap”) on the participant funds for an annual risk charge. The Company’s maximum exposure to loss on synthetic GICs is the notional amount, in the event the values of all of the underlying assets were reduced to zero. The Company’s risk is substantially lower due to contractual provisions that limit the portfolio to high quality assets, which are pre-approved and monitored for compliance, as well as the collection of risk charges. In addition, the crediting rates reset periodically to amortize market value gains and losses over a period equal to the duration of the wrapped portfolio, subject to a 0% floor. While plan participants may transact at book value, contractholder withdrawals may only occur immediately at market value, or at book value paid over a period of time per contract provisions. Synthetic GICs are not designated as hedging instruments.

Foreign Currency Exchange Rate Derivatives

The Company uses foreign currency exchange rate derivatives, including foreign currency swaps, foreign currency forwards, currency options and exchange-traded currency futures, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. The Company also uses foreign currency derivatives to hedge the foreign currency exchange rate risk associated with certain of its net investments in foreign operations.

In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and nonqualifying hedging relationships.

In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in fair value, NIFO hedges and nonqualifying hedging relationships.

The Company enters into currency options that give it the right, but not the obligation, to sell the foreign currency amount in exchange for a functional currency amount within a limited time at a contracted price. The contracts may also be net settled in cash, based on differentials in the foreign currency exchange rate and the strike price. The Company uses currency options to hedge against the foreign currency exposure inherent in certain of its variable annuity products. The Company also uses currency options as an economic hedge of foreign currency exposure related to the Company’s non-U.S. subsidiaries. The Company utilizes currency options in NIFO hedges and nonqualifying hedging relationships.

To a lesser extent, the Company uses exchange-traded currency futures to hedge currency mismatches between assets and liabilities, and to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. The Company utilizes exchange-traded currency futures in nonqualifying hedging relationships.

Credit Derivatives

The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations and involuntary restructuring for corporate obligors, as well as repudiation, moratorium or governmental intervention for sovereign obligors. In each case, payout on a credit default swap is triggered only after the relevant third party, Credit Derivatives Determinations Committee determines 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, or other fixed maturity securities AFS. These credit default swaps are not designated as hedging instruments.

The Company enters into forwards to lock in the price to be paid for forward purchases of certain securities. The price is agreed upon at the time of the contract and payment for the contract is made at a specified future date. When the primary purpose of entering into these transactions is to hedge against the risk of changes in purchase price due to changes in credit spreads, the Company designates these transactions as credit forwards. The Company utilizes credit forwards in cash flow hedging relationships.

Equity Derivatives

The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and equity total return swaps.

Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products issued 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 issued 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 issued 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 a benchmark interest rate, 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,
		2021						2020
				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	$	3,550	$	2,164	$	6	$	3,186	$	3,224	$	4
Foreign currency swaps	Foreign currency exchange rate	801		11		23		1,106		8		78
Foreign currency forwards	Foreign currency exchange rate	1,636		—		58		1,936		24		—
Subtotal		5,987		2,175		87		6,228		3,256		82
Cash flow hedges:
Interest rate swaps	Interest rate	4,117		6		1		4,750		44		—
Interest rate forwards	Interest rate	6,889		89		119		7,377		513		120
Foreign currency swaps	Foreign currency exchange rate	41,095		1,600		1,557		38,604		1,549		2,017
Subtotal		52,101		1,695		1,677		50,731		2,106		2,137
NIFO hedges:
Foreign currency forwards	Foreign currency exchange rate	—		—		—		164		—		3
Currency options	Foreign currency exchange rate	3,000		139		—		3,600		70		—
Subtotal		3,000		139		—		3,764		70		3
Total qualifying hedges		61,088		4,009		1,764		60,723		5,432		2,222
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	38,860		3,644		115		49,561		3,683		38
Interest rate floors	Interest rate	7,701		145		—		12,701		350		—
Interest rate caps	Interest rate	65,559		124		—		40,730		13		—
Interest rate futures	Interest rate	1,615		4		—		1,498		—		2
Interest rate options	Interest rate	11,754		493		10		17,746		502		5
Interest rate forwards	Interest rate	374		—		26		351		—		10
Interest rate total return swaps	Interest rate	1,048		9		4		1,048		—		59
Synthetic GICs	Interest rate	40,121		—		—		38,646		—		—
Foreign currency swaps	Foreign currency exchange rate	12,787		768		614		13,265		603		693
Foreign currency forwards	Foreign currency exchange rate	16,230		36		666		15,643		209		310
Currency futures	Foreign currency exchange rate	839		—		2		914		3		—
Currency options	Foreign currency exchange rate	900		—		—		1,350		—		—
Credit default swaps — purchased	Credit	3,042		13		113		2,978		9		121
Credit default swaps — written	Credit	8,626		177		12		9,609		196		—
Equity futures	Equity market	4,204		12		5		5,427		14		38
Equity index options	Equity market	29,743		1,004		458		22,954		834		437
Equity variance swaps	Equity market	699		17		13		716		15		12
Equity total return swaps	Equity market	3,025		11		50		3,294		3		282
Total non-designated or nonqualifying derivatives		247,127		6,457		2,088		238,431		6,434		2,007
Total		$	308,215	$	10,466	$	3,852	$	299,154	$	11,866	$	4,229

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, 2021 and 2020. 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.

The Effects of Derivatives on the Consolidated Statements of Operations and Comprehensive Income (Loss)

The following table presents the consolidated financial statement location and amount of gain (loss) recognized on fair value, cash flow, NIFO, nonqualifying hedging relationships and embedded derivatives:


	Year Ended December 31, 2021
	Net Investment Income		Net Investment Gains (Losses)		Net Derivative Gains (Losses)		Policyholder Benefits and Claims		Interest Credited to Policyholder Account Balances		Other Expenses		OCI
	(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)	$	6	$	—	$	—	$	(456)	$	—	$	—	N/A
Hedged items	(6)		—		—		406		—		—		N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)	50		(191)		—		—		—		—		N/A
Hedged items	(44)		185		—		—		—		—		N/A
Amount excluded from the assessment of hedge effectiveness	—		—		—		—		—		—		N/A
Subtotal	6		(6)		—		(50)		—		—		N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		$	(599)
Amount of gains (losses) reclassified from AOCI into income	56		84		—		—		—		3		(143)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		500
Amount of gains (losses) reclassified from AOCI into income	8		(403)		—		—		—		2		393
Foreign currency transaction gains (losses) on hedged items	—		401		—		—		—		—		—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		(14)
Amount of gains (losses) reclassified from AOCI into income	—		—		—		—		—		—		—
Subtotal	64		82		—		—		—		5		137
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)	N/A		N/A		N/A		N/A		N/A		N/A		97
Non-derivative hedging instruments	N/A		N/A		N/A		N/A		N/A		N/A		42
Subtotal	N/A		N/A		N/A		N/A		N/A		N/A		139
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)	2		—		(1,992)		(49)		—		—		N/A
Foreign currency exchange rate derivatives (1)	—		—		(986)		2		—		—		N/A
Credit derivatives — purchased (1)	—		—		9		—		—		—		N/A
Credit derivatives — written (1)	—		—		41		—		—		—		N/A
Equity derivatives (1)	(56)		—		(1,280)		(302)		—		—		N/A
Foreign currency transaction gains (losses) on hedged items	—		—		249		—		—		—		N/A
Subtotal	(54)		—		(3,959)		(349)		—		—		N/A
Earned income on derivatives	151		—		984		213		(159)		—		—
Embedded derivatives (2)	N/A		N/A		747		—		N/A		N/A		N/A
Total	$	167	$	76	$	(2,228)	$	(186)	$	(159)	$	5	$	276


	Year Ended December 31, 2020
	Net Investment Income		Net Investment Gains (Losses)		Net Derivative Gains (Losses)		Policyholder Benefits and Claims		Interest Credited to Policyholder Account Balances		Other Expenses		OCI
	(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)	$	(10)	$	—	$	—	$	360	$	—	$	—	N/A
Hedged items	12		—		—		(399)		—		—		N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)	(46)		98		—		—		—		—		N/A
Hedged items	44		(93)		—		—		—		—		N/A
Amount excluded from the assessment of hedge effectiveness	—		(47)		—		—		—		—		N/A
Subtotal	—		(42)		—		(39)		—		—		N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		$	1,277
Amount of gains (losses) reclassified from AOCI into income	36		121		—		—		—		2		(159)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		(445)
Amount of gains (losses) reclassified from AOCI into income	4		851		—		—		—		2		(857)
Foreign currency transaction gains (losses) on hedged items	—		(765)		—		—		—		—		—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		(102)
Amount of gains (losses) reclassified from AOCI into income	—		—		—		—		—		—		—
Subtotal	40		207		—		—		—		4		(286)
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)	N/A		N/A		N/A		N/A		N/A		N/A		36
Non-derivative hedging instruments	N/A		N/A		N/A		N/A		N/A		N/A		(20)
Subtotal	N/A		N/A		N/A		N/A		N/A		N/A		16
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)	(6)		—		2,149		55		—		—		N/A
Foreign currency exchange rate derivatives (1)	—		—		(323)		(3)		—		—		N/A
Credit derivatives — purchased (1)	—		—		(28)		—		—		—		N/A
Credit derivatives — written (1)	—		—		(106)		—		—		—		N/A
Equity derivatives (1)	(28)		—		(1,151)		(203)		—		—		N/A
Foreign currency transaction gains (losses) on hedged items	—		—		(8)		—		—		—		N/A
Subtotal	(34)		—		533		(151)		—		—		N/A
Earned income on derivatives	217		—		926		190		(152)		—		—
Embedded derivatives (2)	N/A		N/A		(110)		—		N/A		N/A		N/A
Total	$	223	$	165	$	1,349	$	—	$	(152)	$	4	$	(270)


	Year Ended December 31, 2019
	Net Investment Income		Net Investment Gains (Losses)		Net Derivative Gains (Losses)		Policyholder Benefits and Claims		Interest Credited to Policyholder Account Balances		Other Expenses		OCI
	(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)	$	(3)	$	—	$	—	$	339	$	1	$	—	N/A
Hedged items	4		—		—		(369)		—		—		N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)	(55)		24		—		—		—		—		N/A
Hedged items	56		(23)		—		—		—		—		N/A
Amount excluded from the assessment of hedge effectiveness	—		(72)		—		—		—		—		N/A
Subtotal	2		(71)		—		(30)		1		—		N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		$	622
Amount of gains (losses) reclassified from AOCI into income	23		4		—		—		—		2		(29)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		(278)
Amount of gains (losses) reclassified from AOCI into income	(4)		240		—		—		—		2		(238)
Foreign currency transaction gains (losses) on hedged items	—		(236)		—		—		—		—		—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		6
Amount of gains (losses) reclassified from AOCI into income	1		—		—		—		—		—		(1)
Subtotal	20		8		—		—		—		4		82
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)	N/A		N/A		N/A		N/A		N/A		N/A		(32)
Non-derivative hedging instruments	N/A		N/A		N/A		N/A		N/A		N/A		(4)
Subtotal	N/A		N/A		N/A		N/A		N/A		N/A		(36)
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)	(3)		—		1,263		39		—		—		N/A
Foreign currency exchange rate derivatives (1)	—		—		(346)		2		—		—		N/A
Credit derivatives — purchased (1)	—		—		(38)		—		—		—		N/A
Credit derivatives — written (1)	—		—		248		—		—		—		N/A
Equity derivatives (1)	—		—		(1,339)		(205)		—		—		N/A
Foreign currency transaction gains (losses) on hedged items	—		—		55		—		—		—		N/A
Subtotal	(3)		—		(157)		(164)		—		—		N/A
Earned income on derivatives	237		—		513		138		(147)		—		—
Embedded derivatives (2)	N/A		N/A		272		—		N/A		N/A		N/A
Total	$	256	$	(63)	$	628	$	(56)	$	(146)	$	4	$	46

__________________

(1)Excludes earned income on derivatives.

(2)The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were ($17) million, ($10) million and ($116) million for the years ended December 31, 2021, 2020 and 2019, respectively.

Fair Value Hedges

The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities; and (iii) foreign currency forwards to hedge the foreign currency fair value exposure of foreign currency denominated investments.

The following table presents the balance sheet classification, carrying amount and cumulative fair value hedging adjustments for items designated and qualifying as hedged items in fair value hedges:


Balance Sheet Line Item	Carrying Amount of the Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets/(Liabilities) (1)
	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
	(In millions)
Fixed maturity securities AFS	$	2,164	$	2,699	$	(1)	$	(1)
Mortgage loans	$	634	$	952	$	3	$	20
Future policy benefits	$	(4,735)	$	(5,512)	$	(877)	$	(1,307)

__________________

(1)Includes ($161) million and ($1) million of hedging adjustments on discontinued hedging relationships at December 31, 2021 and 2020, respectively.

For the Company’s foreign currency forwards, the change in the estimated fair value of the derivative related to the changes in the difference between the spot price and the forward price is excluded from the assessment of hedge effectiveness. The Company has elected to record changes in estimated fair value of excluded components in earnings. For all other derivatives, 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; (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed rate investments; and (v) interest rate swaps and interest rate forwards to hedge forecasted fixed rate borrowings.

In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified amounts from AOCI into income. These amounts were ($1) million, $21 million and $58 million for the years ended December 31, 2021, 2020 and 2019, respectively.

At December 31, 2021 and 2020, 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 seven years and eight years, respectively.

At December 31, 2021 and 2020, the balance in AOCI associated with cash flow hedges was $2.1 billion and $1.9 billion, respectively.

All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

At December 31, 2021, the Company expected to reclassify ($91) million of deferred net gains (losses) on derivatives in AOCI to earnings within the next 12 months.

NIFO Hedges

The Company uses foreign currency exchange rate derivatives, which may include foreign currency forwards and currency options, to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. The Company also designates a portion of its foreign-denominated debt as a non-derivative hedging instrument of its net investments in foreign operations. The Company assesses hedge effectiveness of its derivatives based upon the change in forward rates and assesses its non-derivative hedging instruments based upon the change in spot rates. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

When net investments in foreign operations are sold or substantially liquidated, the amounts in AOCI are reclassified to the statement of operations.

At December 31, 2021 and 2020, the cumulative foreign currency translation gain (loss) recorded in AOCI related to NIFO hedges was $303 million and $164 million, respectively. At December 31, 2021 and 2020, the carrying amount of debt designated as a non-derivative hedging instrument was $365 million and $407 million, respectively.

See Note 13 for additional information on foreign-denominated debt.

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 effects of derivatives on the consolidated statements of operations and comprehensive income (loss) 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 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.

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,
	2021					2020
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A
Single name credit default swaps (3)	$	4	$	159	3.1	$	5	$	208	2.7
Credit default swaps referencing indices	17		1,191		2.5	27		1,779		2.5
Subtotal	21		1,350		2.6	32		1,987		2.5
Baa
Single name credit default swaps (3)	2		101		3.4	3		249		2.5
Credit default swaps referencing indices	146		6,988		5.0	156		7,318		5.5
Subtotal	148		7,089		5.0	159		7,567		5.4
Ba
Single name credit default swaps (3)	1		82		1.2	—		—		—
Credit default swaps referencing indices	(1)		20		5.0	—		—		—
Subtotal	—		102		2.0	—		—		—
B

Credit default swaps referencing indices	5		55		4.0	5		55		5.0
Subtotal	5		55		4.0	5		55		5.0
Caa3
Credit default swaps referencing indices	(9)		30		4.5	—		—		—
Subtotal	(9)		30		4.5	—		—		—
Total	$	165	$	8,626	4.6	$	196	$	9,609	4.8

__________________

(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 municipals.

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 in jurisdictions in which it understands that close-out netting should be enforceable and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are governed by International Swaps and Derivatives Association, Inc. (“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, close-out netting permits the Company (subject to financial regulations such as the Orderly Liquidation Authority under Title II of Dodd-Frank) to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions and to apply collateral to the obligations, without application of the automatic stay, upon the counterparty’s bankruptcy. 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 as required by applicable law. Additionally, effective September 1, 2021, the Company is required to pledge initial margin for certain new OTC-bilateral derivative transactions to third party custodians.

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 brokers and central clearinghouses 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,
	2021				2020
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)	$	10,132	$	3,798	$	11,348	$	4,111
OTC-cleared (1)	448		24		593		20
Exchange-traded	16		7		17		40
Total gross estimated fair value of derivatives presented on the consolidated balance sheets (1)	10,596		3,829		11,958		4,171
Gross amounts not offset on the consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(2,204)		(2,204)		(2,926)		(2,926)
OTC-cleared	(6)		(6)		(7)		(7)
Exchange-traded	(2)		(2)		—		—
Cash collateral: (3), (4)
OTC-bilateral	(6,948)		—		(6,842)		—
OTC-cleared	(421)		(13)		(530)		(5)
Exchange-traded	—		(3)		—		(23)
Securities collateral: (5)
OTC-bilateral	(891)		(1,473)		(1,453)		(1,100)
OTC-cleared	—		(5)		—		(1)
Exchange-traded	—		(2)		—		(1)
Net amount after application of master netting agreements and collateral	$	124	$	121	$	200	$	108

__________________

(1)At December 31, 2021 and 2020, derivative assets included income (expense) accruals reported in accrued investment income or in other liabilities of $130 million and $92 million, respectively, and derivative liabilities included (income) expense accruals reported in accrued investment income or in other liabilities of ($23) million and ($58) 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, where the centralized clearinghouse treats variation margin as collateral, is included in cash and cash equivalents, short-term investments or in fixed maturity securities AFS, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. For certain collateral agreements, cash collateral is pledged to the Company as initial margin on its OTC-bilateral derivatives.

(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, 2021 and 2020, the Company received excess cash collateral of $172 million and $265 million, respectively, and provided excess cash collateral of $126 million and $238 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, 2021, none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities AFS 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, 2021 and 2020, the Company received excess securities collateral with an estimated fair value of $160 million and $231 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At December 31, 2021 and 2020, the Company provided excess securities collateral with an estimated fair value of $243 million and $269 million, respectively, for its OTC-bilateral derivatives, $1.2 billion and $2.1 billion, respectively, for its OTC-cleared derivatives, and $185 million and $318 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the collateral amount owed by that counterparty reaches a minimum transfer amount. Substantially all of the Company’s netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade credit rating from each of Moody’s and S&P. If a party’s credit or financial strength rating, as applicable, were to fall below that specific investment grade credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party’s reasonable valuation of the derivatives. A small number of these arrangements also include credit-contingent provisions that include a threshold above which collateral must be posted. Such agreements provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the credit ratings of MetLife, Inc. and/or the counterparty. At December 31, 2021, the amount of collateral not provided by the Company due to the existence of these thresholds was $15 million.

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.


	December 31,
	2021						2020
	Derivatives Subject to Credit-Contingent Provisions		Derivatives Not Subject to Credit-Contingent Provisions		Total		Derivatives Subject to Credit-Contingent Provisions		Derivatives Not Subject to Credit-Contingent Provisions		Total
	(In millions)
Estimated fair value of derivatives in a net liability position (1)	$	1,386	$	209	$	1,595	$	1,182	$	3	$	1,185
Estimated fair value of collateral provided:
Fixed maturity securities AFS	$	1,370	$	221	$	1,591	$	1,222	$	2	$	1,224

__________________

(1)After taking into consideration the existence of netting agreements.

Embedded Derivatives

The Company issues certain products or purchases certain investments that contain embedded derivatives that are required to be separated from their host contracts and accounted for as freestanding derivatives.

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	2021		2020
		(In millions)
Embedded derivatives within asset host contracts:
Ceded guaranteed minimum benefits	Premiums, reinsurance and other receivables	$	38	$	55
Embedded derivatives within liability host contracts:
Direct guaranteed minimum benefits	Policyholder account balances	$	324	$	651
Assumed guaranteed minimum benefits	Policyholder account balances	98		283
Funds withheld on ceded reinsurance	Other liabilities	57		100
Fixed annuities with equity indexed returns	Policyholder account balances	165		138
Other guarantees	Policyholder account balances	5		24
Embedded derivatives within liability host contracts		$	649	$	1,196

Fair Value

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value

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 AFS.


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, as well as 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 the market data used 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, 2021 (1)
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities AFS:
U.S. corporate	$	—	$	81,266	$	11,768	$	93,034
Foreign corporate	—		49,973		13,667		63,640
Foreign government	—		61,518		91		61,609
U.S. government and agency	25,482		21,117		—		46,599
RMBS	7		27,270		3,127		30,404
ABS	—		16,707		1,862		18,569
Municipals	—		14,212		—		14,212
CMBS	—		11,325		882		12,207
Total fixed maturity securities AFS	25,489		283,388		31,397		340,274
Equity securities	931		187		151		1,269
Unit-linked and FVO Securities (2)	9,173		2,068		901		12,142

Short-term investments (3)	5,607		950		3		6,560
Residential mortgage loans — FVO	—		—		127		127

Other investments	—		61		898		959
Derivative assets: (4)
Interest rate	4		6,577		97		6,678
Foreign currency exchange rate	—		2,551		3		2,554
Credit	—		173		17		190
Equity market	12		1,025		7		1,044
Total derivative assets	16		10,326		124		10,466
Embedded derivatives within asset host contracts (5)	—		—		38		38
Separate account assets (6)	76,312		101,424		2,137		179,873
Total assets (7)	$	117,528	$	398,404	$	35,776	$	551,708
Liabilities
Derivative liabilities: (4)
Interest rate	$	—	$	259	$	22	$	281
Foreign currency exchange rate	2		2,676		242		2,920
Credit	—		113		12		125
Equity market	5		521		—		526
Total derivative liabilities	7		3,569		276		3,852
Embedded derivatives within liability host contracts (5)	—		—		649		649
Separate account liabilities (6)	7		12		6		25
Total liabilities	$	14	$	3,581	$	931	$	4,526


	December 31, 2020 (1)
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities AFS:
U.S. corporate	$	—	$	83,214	$	10,202	$	93,416
Foreign corporate	—		55,509		13,899		69,408
Foreign government	—		71,582		117		71,699
U.S. government and agency	23,180		23,920		—		47,100
RMBS	—		27,133		3,302		30,435
ABS	—		15,734		1,385		17,119
Municipals	—		13,722		—		13,722
CMBS	—		11,308		602		11,910
Total fixed maturity securities AFS	23,180		302,122		29,507		354,809
Equity securities	636		293		150		1,079
Unit-linked and FVO Securities (2)	10,559		2,059		701		13,319
Short-term investments (3)	2,762		568		43		3,373
Residential mortgage loans — FVO	—		—		165		165

Other investments	83		229		573		885
Derivative assets: (4)
Interest rate	—		7,840		489		8,329
Foreign currency exchange rate	3		2,287		176		2,466
Credit	—		180		25		205
Equity market	14		830		22		866
Total derivative assets	17		11,137		712		11,866
Embedded derivatives within asset host contracts (5)	—		—		55		55
Separate account assets (6)	91,850		107,035		1,085		199,970
Total assets (7)	$	129,087	$	423,443	$	32,991	$	585,521
Liabilities
Derivative liabilities: (4)
Interest rate	$	2	$	168	$	68	$	238
Foreign currency exchange rate	—		3,063		38		3,101
Credit	—		121		—		121
Equity market	38		719		12		769
Total derivative liabilities	40		4,071		118		4,229
Embedded derivatives within liability host contracts (5)	—		—		1,196		1,196
Separate account liabilities (6)	12		8		6		26
Total liabilities	$	52	$	4,079	$	1,320	$	5,451

__________________

(1)Excludes amounts reclassified to assets held-for-sale or liabilities held-for-sale. Assets held-for-sale and liabilities held-for-sale are valued on a basis consistent with similar assets and liabilities described herein. See Note 3 for information on the Company’s business dispositions.

(2)Unit-linked and FVO Securities were primarily comprised of Unit-linked investments at both December 31, 2021 and 2020.

(3)Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis.

(4)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.

(5)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.

(6)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.

(7)Total assets included in the fair value hierarchy exclude other limited partnership interests that are measured at estimated fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient. At December 31, 2021 and 2020, the estimated fair value of such investments was $99 million and $75 million, respectively.

The following describes the valuation methodologies used to measure assets and liabilities at fair value.

Investments

Securities, Short-term Investments and Other Investments

When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company’s securities holdings and valuation of these securities does not involve management’s judgment.

When quoted prices in active markets are not available, the determination of estimated fair value of securities 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. Unobservable inputs are based on management’s assumptions about the inputs market participants would use in pricing such investments.

The estimated fair value of short-term investments and other investments is determined on a basis consistent with the methodologies described herein.

The valuation approaches and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy are presented below. The primary valuation approaches are the market approach, which considers recent prices from market transactions involving identical or similar assets or liabilities, and the income approach, which converts expected future amounts (e.g. cash flows) to a single current, discounted amount. 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 AFS

U.S. corporate and Foreign corporate securities

Valuation Approaches: Principally the market and income approaches.

Valuation Approaches: Principally the market approach.

Key Inputs:

•

quoted prices in markets that are not active

•

illiquidity premium

•

benchmark yields; spreads off benchmark yields; new issuances; issuer ratings

•

delta spread adjustments to reflect specific credit-related issues

•

trades of identical or comparable securities; duration

•

credit spreads

•

privately-placed securities are valued using the additional key inputs:

•

quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2

•

market yield curve; call provisions

•

observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer

•

independent non-binding broker quotations

•

delta spread adjustments to reflect specific credit-related issues

Foreign government securities, U.S. government and agency securities and Municipals

Valuation Approaches: Principally the market approach.

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 quotations

•

credit spreads

•

comparable securities that are actively traded

Structured Products

Valuation Approaches: Principally the market and income approaches.

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

•

credit ratings

•

average delinquency rates; DSCR

•

credit ratings

•

issuance-specific information, including, but not limited to:

•

collateral type; structure of the security; vintage of the loans

•

payment terms of the underlying assets

•

payment priority within the tranche; deal performance

Instrument

Level 2

Observable Inputs

Level 3

Unobservable Inputs

Equity securities

Valuation Approaches: Principally the market approach.

Valuation Approaches: Principally the market and income approaches.

Key Input:

Key Inputs:

•

quoted prices in markets that are not considered active

•

credit ratings; issuance structures

•

quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2

•

independent non-binding broker quotations

Unit-linked and FVO Securities, Short-term investments and Other investments

Valuation Approaches: Principally the market and income approaches.

Key Inputs:

•

Unit-linked and FVO Securities include mutual fund interests without readily determinable fair values given prices are not published publicly. Valuation of these mutual funds is based upon quoted prices or reported NAV provided by the fund managers, which were based on observable inputs.

•

Unit-linked and FVO Securities, short-term investments and other investments are of a similar nature and class to the fixed maturity securities AFS and equity securities described above; accordingly, the valuation approaches and unobservable inputs used in their valuation are also similar to those described above. Other investments also include certain real estate joint ventures and use the valuation approach and key inputs as described for other limited partnership interests below.

•

Short-term investments and other investments are of a similar nature and class to the fixed maturity securities AFS and equity securities described above; accordingly, the valuation approaches and observable 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 adjusting, if appropriate.

Key Inputs:

•

liquidity; bid/ask spreads; performance record of the fund manager

•

other relevant variables that may impact the exit value of the particular partnership interest

__________________

(1)Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. The estimated fair value of fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents is determined on a basis consistent with the assets described under “— Securities, Short-term Investments and Other Investments” 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 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. Unobservable inputs are based on management’s assumptions about the inputs market participants would use in pricing such derivatives.

Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income.

The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is, in part, due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period.

Freestanding Derivatives

Level 2 Valuation Approaches and Key Inputs:

This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3.

Level 3 Valuation Approaches and Key Inputs:

These valuation methodologies generally use the same inputs as described in the corresponding sections for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data.

Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. Key inputs are as follows:

Instrument

Interest Rate

Foreign Currency
Exchange Rate

Credit

Equity Market

Inputs common to Level 2 and Level 3 by instrument type

•

swap yield curves

•

swap yield curves

•

swap yield curves

•

swap yield curves

•

basis curves

•

basis curves

•

credit curves

•

spot equity index levels

•

interest rate volatility (1)

•

currency spot rates

•

recovery rates

•

dividend yield curves

•

cross currency basis curves

•

equity volatility (1)

•

currency volatility (1)

Level 3

•

swap yield curves (2)

•

swap yield curves (2)

•

swap yield curves (2)

•

dividend yield curves (2)

•

basis curves (2)

•

basis curves (2)

•

credit curves (2)

•

equity volatility (1), (2)

•

repurchase rates

•

cross currency basis curves (2)

•

credit spreads

•

correlation between model inputs (1)

•

interest rate volatility (1), (2)

•

currency correlation

•

repurchase rates

•

currency volatility (1)

•

independent non-binding broker quotations

__________________

(1)Option-based only.

(2)Extrapolation beyond the observable limits of the curve(s).

Embedded Derivatives

Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, annuity contracts, and investment risk within funds withheld related to certain 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 calculates the fair value of these embedded derivatives, which is 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, projecting future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates.

Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience.

The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries as compared to MetLife, Inc.

Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income.

The Company ceded the risk associated with certain of the GMIBs previously described. These reinsurance agreements contain embedded derivatives which are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses) or policyholder benefits and claims depending on the statement of operations classification of the direct risk. The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer.

The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as described in “— Investments — Securities, Short-term Investments and Other Investments.” The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income.

The Company issues certain annuity contracts which allow the policyholder to participate in returns from equity indices. These equity indexed features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

The estimated fair value of the embedded equity indexed derivatives, based on the present value of future equity returns to the policyholder using actuarial and present value assumptions including expectations concerning policyholder behavior, is calculated by the Company’s actuarial department. The calculation is based on in-force business and uses standard capital market techniques, such as Black-Scholes, to calculate the value of the portion of the embedded derivative for which the terms are set. The portion of the embedded derivative covering the period beyond where terms are set is calculated as the present value of amounts expected to be spent to provide equity indexed returns in those periods. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk.

Embedded Derivatives Within Asset and Liability Host Contracts

Level 3 Valuation Approaches and Key Inputs:

Direct and assumed guaranteed minimum benefits

These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curves, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curves and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin.

Reinsurance ceded on certain guaranteed minimum benefits

These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct and assumed guaranteed minimum benefits” and also include counterparty credit spreads.

Transfers between Levels

Overall, transfers between levels occur when there are changes in the observability of inputs and market activity.

Transfers into or out of Level 3:

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

The following table presents 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, 2021				December 31, 2020				Impact of Increase in Input on Estimated Fair Value (2)
	Valuation Techniques		Significant Unobservable Inputs		Range			Weighted Average (1)	Range			Weighted Average (1)
Fixed maturity securities AFS (3)
U.S. corporate and foreign corporate	•	Matrix pricing	•	Offered quotes (4)	1	-	165	109	—	-	186	117	Increase
	•	Market pricing	•	Quoted prices (4)	—	-	117	100	—	-	116	98	Increase
	•	Consensus pricing	•	Offered quotes (4)	99	-	104	100	54	-	104	101	Increase
RMBS	•	Market pricing	•	Quoted prices (4)	—	-	121	99	—	-	159	98	Increase (5)
ABS	•	Market pricing	•	Quoted prices (4)	3	-	110	102	1	-	112	100	Increase (5)
Derivatives
Interest rate	•	Present value techniques	•	Swap yield (6)	151	-	200	188	92	-	184	149	Increase (7)
			•	Repurchase rates (8)	—	-	—	—	(12)	-	1	(6)	Decrease (7)
			•	Volatility (9)	1%	-	1%	1%	—	-	—	—	Increase (7)
Foreign currency exchange rate	•	Present value techniques	•	Swap yield (6)	2	-	305	134	(309)	-	248	(144)	Increase (7)
Credit	•	Present value techniques	•	Credit spreads (10)	96	-	133	109	96	-	99	98	Decrease (7)
	•	Consensus pricing	•	Offered quotes (11)
Equity market	•	Present value techniques or option pricing models	•	Volatility (12)	—%	-	—%	—%	21%	-	29%	28%	Increase (7)
			•	Correlation (13)	—%	-	—%	—%	10%	-	30%	10%
Embedded derivatives
Direct, assumed and ceded guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates:
				Ages 0 - 40	0%	-	0.17%	0.08%	0%	-	0.17%	0.06%	Decrease (14)
				Ages 41 - 60	0.03%	-	0.75%	0.27%	0.03%	-	0.75%	0.30%	Decrease (14)
				Ages 61 - 115	0.12%	-	100%	2.08%	0.12%	-	100%	1.90%	Decrease (14)
			•	Lapse rates:
				Durations 1 - 10	0.25%	-	100%	6.30%	0.25%	-	100%	6.86%	Decrease (15)
				Durations 11 - 20	0.50%	-	100%	5.22%	0.50%	-	100%	5.18%	Decrease (15)
				Durations 21 - 116	0.50%	-	100%	5.22%	0.50%	-	100%	5.18%	Decrease (15)
			•	Utilization rates	0%	-	22%	0.22%	0%	-	22%	0.17%	Increase (16)
			•	Withdrawal rates	0%	-	20%	3.72%	0%	-	20%	3.98%	(17)
			•	Long-term equity volatilities	7.69%	-	25%	18.60%	8.33%	-	27%	18.70%	Increase (18)
			•	Nonperformance risk spread	0.04%	-	1.45%	0.35%	0.04%	-	1.18%	0.40%	Decrease (19)

__________________

(1)The weighted average for fixed maturity securities AFS and derivatives is determined based on the estimated fair value of the securities and derivatives. The weighted average for embedded derivatives is determined based on a combination of account values and experience data.

(2)The impact of a decrease in input would have resulted in 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 have resulted in substantially lower (higher) valuations.

(4)Range and weighted average are presented in accordance with the market convention for fixed maturity securities AFS of dollars per hundred dollars of par.

(5)Changes in the assumptions used for the probability of default would have been 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)Ranges represent the underlying interest rate volatility quoted in percentage points. Since this valuation methodology uses an equivalent of LIBOR for secured overnight financing rate volatility, presenting a range is more representative of the unobservable input used in the valuation.

(10)Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.

(11)At both December 31, 2021 and 2020, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.

(12)Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(13)Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations.

(14)Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(15)Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(16)The utilization rate assumption estimates the percentage of contractholders with GMIBs or a lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(17)The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(18)Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(19)Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative.

Generally, all other classes of assets and liabilities classified within Level 3 that are not included in the preceding table use the same valuation techniques and significant unobservable inputs as previously described for Level 3. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table. The valuation techniques and significant unobservable inputs used in the fair value measurement for the more significant assets measured at estimated fair value on a nonrecurring basis and determined using significant unobservable inputs (Level 3) are summarized in “— Nonrecurring Fair Value Measurements.”

The following tables summarize the change of all assets (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3):


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities AFS
	Corporate (7)		Foreign Government		Structured Products		Municipals		Equity Securities		Unit-linked and FVO Securities
	(In millions)
Balance, January 1, 2020	$	14,229	$	117	$	4,458	$	7	$	430	$	625
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)	(88)		(2)		49		—		12		67
Total realized/unrealized gains (losses) included in AOCI	1,774		(1)		41		—		—		—
Purchases (3)	5,013		29		1,975		—		11		47
Sales (3)	(1,107)		(8)		(918)		—		(156)		(101)
Issuances (3)	—		—		—		—		—		—
Settlements (3)	—		—		—		—		—		—
Transfers into Level 3 (4)	4,985		6		127		—		—		154
Transfers out of Level 3 (4), (5)	(705)		(24)		(443)		(7)		(147)		(91)
Balance, December 31, 2020	24,101		117		5,289		—		150		701
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)	(34)		—		46		—		27		101
Total realized/unrealized gains (losses) included in AOCI	(1,334)		(2)		(26)		—		—		—
Purchases (3)	4,988		1		1,824		—		12		42
Sales (3)	(1,543)		(8)		(1,326)		—		(35)		(18)
Issuances (3)	—		—		—		—		—		—
Settlements (3)	—		—		—		—		—		—
Transfers into Level 3 (4)	179		12		358		—		—		86
Transfers out of Level 3 (4)	(922)		(29)		(294)		—		(3)		(11)
Balance, December 31, 2021	$	25,435	$	91	$	5,871	$	—	$	151	$	901
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2019 (6)	$	(50)	$	—	$	44	$	—	$	39	$	48
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2020 (6)	$	(48)	$	(1)	$	54	$	—	$	2	$	69
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2021 (6)	$	(5)	$	—	$	42	$	—	$	13	$	101
Changes in unrealized gains (losses) included in AOCI for the instruments still held at December 31, 2020 (6)	$	1,754	$	(1)	$	47	$	—	$	—	$	—
Changes in unrealized gains (losses) included in AOCI for the instruments still held at December 31, 2021 (6)	$	(1,293)	$	(2)	$	(24)	$	—	$	—	$	—
Gains (Losses) Data for the year ended December 31, 2019:
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)	$	(49)	$	—	$	46	$	—	$	47	$	48
Total realized/unrealized gains (losses) included in AOCI	$	893	$	(2)	$	42	$	—	$	—	$	—


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Short-term Investments		Residential Mortgage Loans - FVO		Other Investments		Net Derivatives (8)		Net Embedded Derivatives (9)		Separate Accounts (10)
	(In millions)
Balance, January 1, 2020	$	32	$	188	$	455	$	(146)	$	(742)	$	980
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)	(7)		9		19		279		(110)		(5)
Total realized/unrealized gains (losses) included in AOCI	4		—		—		761		(34)		—
Purchases (3)	38		—		99		4		—		270
Sales (3)	(17)		(13)		—		—		—		(159)
Issuances (3)	—		—		—		(2)		—		(4)
Settlements (3)	—		(19)		—		(296)		(255)		1
Transfers into Level 3 (4)	9		—		—		—		—		1
Transfers out of Level 3 (4), (5)	(16)		—		—		(6)		—		(5)
Balance, December 31, 2020	43		165		573		594		(1,141)		1,079
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)	1		(5)		94		(460)		747		29
Total realized/unrealized gains (losses) included in AOCI	(3)		—		—		(334)		27		—
Purchases (3)	2		—		348		30		—		1,056
Sales (3)	(37)		(11)		(92)		—		—		(44)
Issuances (3)	—		—		—		(13)		—		(2)
Settlements (3)	—		(22)		—		32		(244)		6
Transfers into Level 3 (4)	—		—		—		1		—		10
Transfers out of Level 3 (4)	(3)		—		(25)		(2)		—		(3)
Balance, December 31, 2021	$	3	$	127	$	898	$	(152)	$	(611)	$	2,131
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2019 (6)	$	—	$	(14)	$	—	$	(129)	$	264	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2020 (6)	$	(7)	$	3	$	24	$	67	$	(124)	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2021 (6)	$	—	$	(10)	$	89	$	(361)	$	746	$	—
Changes in unrealized gains (losses) included in AOCI for the instruments still held at December 31, 2020 (6)	$	4	$	—	$	—	$	579	$	(33)	$	—
Changes in unrealized gains (losses) included in AOCI for the instruments still held at December 31, 2021 (6)	$	—	$	—	$	—	$	(128)	$	27	$	—
Gains (Losses) Data for the year ended December 31, 2019:
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)	$	—	$	7	$	—	$	(108)	$	274	$	7
Total realized/unrealized gains (losses) included in AOCI	$	(1)	$	—	$	—	$	157	$	(2)	$	—

__________________

(1)Amortization of premium/accretion of discount is included within net investment income. Impairments and changes in ACL charged to net income (loss) on certain securities are included in net investment gains (losses), while changes in estimated fair value of Unit-linked and FVO Securities and residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(2)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(3)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.

(4)Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.

(5)Transfers out of Level 3 for the year ended December 31, 2020 included $137 million of corporate securities and $29 million of Structured Products reclassified to assets held-for-sale. See Note 3 for information on the Company’s business dispositions.

(6)Changes in unrealized gains (losses) included in net income (loss) and included in AOCI relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(7)Comprised of U.S. and foreign corporate securities.

(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 income (loss). Separate account assets and liabilities are presented net for the purposes of the rollforward.

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,
	2021		2020
	(In millions)
Unpaid principal balance	$	130	$	172
Difference between estimated fair value and unpaid principal balance	(3)		(7)
Carrying value at estimated fair value	$	127	$	165
Loans in nonaccrual status	$	32	$	45
Loans more than 90 days past due	$	14	$	27
Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance	$	(7)	$	(13)

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), using significant unobservable inputs (Level 3).


	At December 31,				For the Years Ended December 31,
	2021		2020		2021		2020		2019
	Carrying Value After Measurement				Gains (Losses)
	(In millions)
Mortgage loans, net (1)	$	328	$	408	$	(116)	$	(127)	$	(2)
Other assets (2)	$	82	$	—	$	(74)	$	—	$	(43)

__________________

(1)Estimated fair values for impaired mortgage loans are based on estimated fair value of the underlying collateral.

(2)The Company recognized impairments related to the abandonment of certain leased office space and the related leasehold improvements.

Fair Value of Financial Instruments Carried at Other Than Fair Value

The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions, short-term debt and those short-term investments that are not securities, such as time deposits, and therefore are not included in the three-level hierarchy table disclosed in the “— Recurring Fair Value Measurements” section. The Company believes that due to the short-term nature of these excluded assets, which are primarily classified in Level 2, the estimated fair value approximates carrying value. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure.

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, 2021 (1)
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans (2)	$	79,226	$	—	$	—	$	82,788	$	82,788
Policy loans	$	9,111	$	—	$	—	$	10,751	$	10,751


Other invested assets	$	1,025	$	—	$	769	$	256	$	1,025
Premiums, reinsurance and other receivables	$	2,262	$	—	$	492	$	1,962	$	2,454
Other assets	$	290	$	—	$	101	$	190	$	291
Liabilities
Policyholder account balances	$	123,865	$	—	$	—	$	127,728	$	127,728
Long-term debt	$	13,852	$	—	$	16,621	$	—	$	16,621
Collateral financing arrangement	$	766	$	—	$	—	$	630	$	630
Junior subordinated debt securities	$	3,156	$	—	$	4,447	$	—	$	4,447
Other liabilities	$	2,143	$	—	$	514	$	2,321	$	2,835
Separate account liabilities	$	95,619	$	—	$	95,619	$	—	$	95,619


	December 31, 2020 (1)
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans (2)	$	83,754	$	—	$	—	$	88,675	$	88,675
Policy loans	$	9,493	$	—	$	—	$	11,598	$	11,598
Other invested assets	$	1,188	$	—	$	814	$	374	$	1,188
Premiums, reinsurance and other receivables	$	2,729	$	—	$	908	$	2,070	$	2,978
Other assets	$	300	$	—	$	111	$	190	$	301
Liabilities
Policyholder account balances	$	126,458	$	—	$	—	$	134,569	$	134,569
Long-term debt	$	14,492	$	—	$	18,332	$	—	$	18,332
Collateral financing arrangement	$	845	$	—	$	—	$	710	$	710
Junior subordinated debt securities	$	3,153	$	—	$	4,604	$	—	$	4,604
Other liabilities	$	2,113	$	—	$	527	$	2,606	$	3,133
Separate account liabilities	$	115,682	$	—	$	115,682	$	—	$	115,682

_________________

(1)Excludes amounts reclassified to assets held-for-sale or liabilities held-for-sale. See Note 3 for information on the Company’s business dispositions.

(2)Includes mortgage loans measured at estimated fair value on a nonrecurring basis and excludes mortgage loans measured at estimated fair value on a recurring basis.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Leases Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lessee, Operating Leases

11. Leases

The Company, as lessee, has entered into various lease and sublease agreements primarily for office space. The Company has operating leases with remaining lease terms of less than one year to 13 years. The remaining lease terms for the subleases are less than one year to 9 years.

ROU Assets and Lease Liabilities

ROU assets and lease liabilities for operating leases were:


	December 31, 2021		December 31, 2020
	(In millions)
ROU assets	$	1,110	$	1,314
Lease liabilities	$	1,295	$	1,470

Lease Costs

The components of operating lease costs were as follows:


	For the Years Ended December 31,
	2021		2020		2019
	(In millions)
Operating lease cost	$	271	$	286	$	282
Variable lease cost	$	32	$	39	$	49
Sublease income	$	(99)	$	(99)	$	(89)
Net lease cost	$	204	$	226	$	242

The Company recognized lease ROU asset impairment charges of $29 million, $0, and $19 million for the years ended December 31, 2021, 2020 and 2019, respectively. See Note 17 for further information on the 2019 impairment charges recorded as part of restructuring charges.

Other Information

Supplemental other information related to operating leases was as follows:


	December 31, 2021			December 31, 2020
	(Dollars in millions)
Cash paid for amounts included in the measurement of lease liability - operating cash flows	$	273		$	289
ROU assets obtained in exchange for new lease liabilities	$	63		$	70
Weighted-average remaining lease term	7 years			8 years
Weighted-average discount rate	3.4		%	3.4		%

Maturities of Lease Liabilities

Maturities of operating lease liabilities were as follows:


	December 31, 2021
	(In millions)
2022	$	250
2023	231
2024	209
2025	195
2026	179
Thereafter	379
Total undiscounted cash flows	1,443
Less: interest	148
Present value of lease liability	$	1,295

See Notes 8 and 13 for information about the Company’s investments in leased real estate, leveraged and direct financing leases, and financing lease obligations.

Goodwill

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

12. Goodwill

Information regarding goodwill by segment, as well as Corporate & Other, was as follows:


	U.S.		Asia (1)		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total
	(In millions)
Balance at January 1, 2019
Goodwill	$	1,451	$	4,690	$	1,172	$	1,119	$	1,567	$	103	$	10,102
Accumulated impairment	—		—		—		—		(680)		—		(680)
Total goodwill, net	1,451		4,690		1,172		1,119		887		103		9,422
Acquisitions	15		4		—		—		—		—		19
Disposition (2)	—		(71)		—		—		—		—		(71)

Effect of foreign currency translation and other	—		13		(73)		(2)		—		—		(62)
Balance at December 31, 2019
Goodwill	1,466		4,636		1,099		1,117		1,567		103		9,988
Accumulated impairment	—		—		—		—		(680)		—		(680)
Total goodwill, net	1,466		4,636		1,099		1,117		887		103		9,308
Acquisitions (3)	932		—		—		—		—		—		932

Effect of foreign currency translation and other	—		127		44		29		—		—		200
Reclassified to assets held-for-sale (4)	(328)		—		—		—		—		—		(328)
Balance at December 31, 2020
Goodwill	2,070		4,763		1,143		1,146		1,567		103		10,792
Accumulated impairment	—		—		—		—		(680)		—		(680)
Total goodwill, net	2,070		4,763		1,143		1,146		887		103		10,112

Effect of foreign currency translation and other	—		(211)		(166)		(200)		—		—		(577)
Balance at December 31, 2021
Goodwill	2,070		4,552		977		946		1,567		103		10,215
Accumulated impairment	—		—		—		—		(680)		—		(680)
Total goodwill, net	$	2,070	$	4,552	$	977	$	946	$	887	$	103	$	9,535

__________________

(1)Includes goodwill of $4.4 billion, $4.6 billion and $4.5 billion from the Company’s Japan operations at December 31, 2021, 2020 and 2019, respectively.

(2)In connection with the disposition of MetLife Hong Kong, goodwill was reduced by $71 million for the year ended December 31, 2019. See Note 3.

(3)Primarily related to the acquisition of Versant Health. See Note 3.

(4)See Note 3 for information on the disposition of MetLife P&C.

Long-term and Short-term Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Long-term and Short-term Debt

13. Long-term and Short-term Debt

Long-term and short-term debt outstanding, excluding debt relating to consolidated securitization entities, was as follows:


									December 31,
	Interest Rates (1)								2021						2020
	Range				Weighted Average	Maturity			Face Value		Unamortized Discount and Issuance Costs		Carrying Value		Face Value		Unamortized Discount and Issuance Costs		Carrying Value
									(In millions)
Senior notes	0.50	%	-	6.50%	4.44%	2023	-	2046	$	12,891	$	(77)	$	12,814	$	13,548	$	(85)	$	13,463
Surplus notes	7.63	%	-	7.88%	7.79%	2024	-	2025	507		(2)		505		507		(3)		504
Other notes	0.08	%	-	3.75%	2.48%	2022	-	2058	536		(3)		533		527		(2)		525
Financing lease obligations									81		—		81		106		—		106
Total long-term debt									14,015		(82)		13,933		14,688		(90)		14,598
Total short-term debt									341		—		341		393		—		393
Total									$	14,356	$	(82)	$	14,274	$	15,081	$	(90)	$	14,991

__________________

(1)Range of interest rates and weighted average interest rates are for the year ended December 31, 2021.

The aggregate maturities of long-term debt at December 31, 2021 for the next five years and thereafter are $109 million in 2022, $1.0 billion in 2023, $1.8 billion in 2024, $1.2 billion in 2025, $566 million in 2026 and $9.2 billion thereafter.

Financing lease obligations are collateralized and rank highest in priority, followed by unsecured senior notes and other notes, followed by subordinated debt which consists of junior subordinated debt securities (see Note 15). Payments of interest and principal on the Company’s surplus notes, which are subordinate to all other obligations of the operating company issuing the notes and are senior to obligations of MetLife, Inc., may be made only with the prior approval of the insurance department of the state of domicile of the notes issuer. The Company’s collateral financing arrangement (see Note 14) is supported by surplus notes of a subsidiary and, accordingly, has priority consistent with surplus notes.

Certain of the Company’s debt instruments and committed facilities, as well as its $3.0 billion unsecured revolving credit facility (the “Credit Facility”), contain various administrative, reporting, legal and financial covenants. The Company believes it was in compliance with all applicable financial covenants at December 31, 2021.

Senior Notes

In July 2021, MetLife, Inc. redeemed for cash and canceled $500 million aggregate principal amount of its outstanding 3.048% senior notes due December 2022. The Company recorded a premium of $17 million paid in excess of the debt principal and accrued and unpaid interest to other expenses for the year ended December 31, 2021.

In March 2020, MetLife, Inc. issued $1.0 billion of senior notes due March 2030 which bear interest at a fixed rate of 4.550%, the interest on which is payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $6 million of related costs which will be amortized over the term of the senior notes.

In June 2019, MetLife, Inc. redeemed for cash and canceled its £400 million ($509 million at repayment) aggregate principal amount 5.250% senior notes due June 2020 and the remaining $368 million aggregate principal amount of its 4.750% senior notes due February 2021. The Company recorded a premium of $40 million paid in excess of the debt principal and accrued and unpaid interest to other expenses for the year ended December 31, 2019.

In May 2019, MetLife, Inc. issued the following fixed rate senior notes (“Senior Notes”), interest on which is payable semi-annually beginning in November 2019:

•¥25.2 billion ($230 million at issuance) due May 2026 which bear interest annually at 0.495%;

•¥64.9 billion ($591 million at issuance) due May 2029 which bear interest annually at 0.769%;

•¥10.7 billion ($98 million at issuance) due May 2031 which bear interest annually at 0.898%;

•¥26.5 billion ($241 million at issuance) due May 2034 which bear interest annually at 1.189%; and

•¥24.4 billion ($222 million at issuance) due May 2039 which bear interest annually at 1.385%.

In connection with the issuances, MetLife, Inc. incurred $9 million of related costs which are amortized over the applicable term of each series of the Senior Notes. MetLife, Inc. may redeem each series of the Senior Notes at its option, in whole, but not in part, at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest thereon, if certain events occur affecting the U.S. tax treatment of the Senior Notes

Other Notes

At December 31, 2021, MetLife Private Equity Holdings, LLC (“MPEH”), a wholly-owned indirect investment subsidiary of MLIC, was party to a credit agreement providing for $350 million of term loans and $75 million of a revolving loan (the “Credit Agreement”), which matures in September 2026. In March 2020, MPEH borrowed $75 million on a revolving loan under the Credit Agreement and repaid this loan in July 2020. Simultaneously, in July 2020, MPEH borrowed $50 million on the term loan under the Credit Agreement. MPEH has pledged invested assets to secure the loans; however, these loans are non-recourse to MLIC and MetLife, Inc.

Short-term Debt

Short-term debt with maturities of one year or less was as follows:


	December 31,
	2021		2020
	(Dollars in millions)
Commercial paper	$	100	$	100
Short-term borrowings (1)	241		293
Total short-term debt	$	341	$	393
Average daily balance	$	300	$	326
Average days outstanding	155 days		69 days

__________________

(1)Includes $241 million and $293 million at December 31, 2021 and 2020, respectively, of short-term debt related to repurchase agreements, secured by assets of subsidiaries.

For the years ended December 31, 2021, 2020 and 2019, the weighted average interest rate on short-term debt was 1.41%, 2.01% and 2.88%, respectively.

Interest Expense

Interest expense included in other expenses was $647 million, $632 million and $656 million for the years ended December 31, 2021, 2020 and 2019, respectively. Such amounts do not include interest expense on long-term debt related to the collateral financing arrangement or junior subordinated debt securities. See Notes 14 and 15.

Credit and Committed Facilities

At December 31, 2021, the Company maintained the Credit Facility, as well as certain committed facilities aggregating $3.2 billion (the “Committed Facilities”). 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 $10 million, $14 million and $12 million for the years ended December 31, 2021, 2020 and 2019, respectively, and were included in other expenses. Information on the Credit Facility at December 31, 2021 was as follows:


Borrower(s)	Expiration		Maximum Capacity		Letters of Credit Issued		Drawdowns		Unused Commitments
			(In millions)
MetLife, Inc. and MetLife Funding, Inc.	February 2026	(1)	$	3,000	$	459	$	—	$	2,541

__________________

(1)In February 2021, the Credit Facility was amended and restated to, among other things, extend the maturity date. The Company incurred costs of $6 million related to the Credit Facility, which were capitalized and included in other assets. These costs are being amortized over the remaining term of the Credit Facility. All borrowings under the amended and restated Credit Facility must be repaid by February 26, 2026, except that letters of credit outstanding upon termination may remain outstanding until February 26, 2027.

Committed Facilities

Letters of credit issued under the Committed Facilities are used for collateral for certain of the Company’s affiliated reinsurance liabilities. Total fees associated with the Committed Facilities, included in other expenses, were $12 million for each of the years ended December 31, 2021, 2020 and 2019. Information on the Committed Facilities at December 31, 2021 was as follows:


Account Party/Borrower(s)	Expiration		Maximum Capacity		Letters of Credit Issued		Drawdowns		Unused Commitments
			(In millions)
MetLife Reinsurance Company of Vermont and MetLife, Inc.	November 2026	(1), (2)	$	350	$	350	$	—	$	—
MetLife Reinsurance Company of Vermont and MetLife, Inc.	December 2037	(1), (3)	2,896		2,492		—		404
Total			$	3,246	$	2,842	$	—	$	404

__________________

(1)MetLife, Inc. is a guarantor under the applicable facility.

(2)The issuance of additional letters of credit is at the discretion of the counterparty.

(3)Capacity at December 31, 2021 of $2.8 billion increases periodically to a maximum of $2.9 billion in 2024, decreases periodically commencing in 2025 to $2.0 billion in 2037, and decreases to $0 at expiration in December 2037. Unused commitment of $404 million is based on maximum capacity. At December 31, 2021, Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”), a former subsidiary of MetLife, Inc., is a beneficiary of $2.5 billion of letters of credit issued under this facility and, in consideration, Brighthouse reimburses MetLife, Inc. for a portion of the letter of credit fees.

In addition to the Committed Facilities, see also “— Other Notes” for information about the Credit Agreement.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
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-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Collateral Financing Arrangements

12 Months Ended

Dec. 31, 2021

Secured Debt [Abstract]

Collateral Financing Arrangements

14. Collateral Financing Arrangement

Information related to the collateral financing arrangement associated with the closed block (see Note 7) was as follows at:


	December 31,
	2021		2020
	(In millions)
Surplus notes outstanding (1)	$	766	$	845
Receivable from unaffiliated financial institution (1)	$	100	$	110
Pledged collateral (2)	$	38	$	41
Assets held in trust (2)	$	1,388	$	1,408

__________________

(1)Carrying value.

(2)Estimated fair value.

Interest expense on the collateral financing arrangement was $11 million, $20 million and $38 million for the years ended December 31, 2021, 2020 and 2019, respectively, which is included in other expenses.

In December 2007, MLIC reinsured a portion of its closed block liabilities to MetLife Reinsurance Company of Charleston (“MRC”), a wholly-owned subsidiary of MetLife, Inc. In connection with this transaction, MRC issued, to investors placed by an unaffiliated financial institution, $2.5 billion in aggregate principal amount of 35-year surplus notes to provide statutory reserve support for the assumed closed block liabilities. Interest on the surplus notes accrues at an annual rate of three-month LIBOR plus 0.55%, payable quarterly. The ability of MRC to make interest and principal payments on the surplus notes is contingent upon South Carolina regulatory approval.

Simultaneously with the issuance of the surplus notes, MetLife, Inc. entered into an agreement with the unaffiliated financial institution, under which MetLife, Inc. is entitled to the interest paid by MRC on the surplus notes of three-month LIBOR plus 0.55% in exchange for the payment of three-month LIBOR plus 1.12%, payable quarterly on such amount as adjusted, as described below. MetLife, Inc. may also be required to pledge collateral or make payments to the unaffiliated financial institution related to any decline in the estimated fair value of the surplus notes. Any such payments are accounted for as a receivable and included in other assets on the Company’s consolidated balance sheets and do not reduce the principal amount outstanding of the surplus notes. Such payments, however, reduce the amount of interest payments due from MetLife, Inc. under the agreement. Any payment received from the unaffiliated financial institution reduces the receivable by an amount equal to such payment and also increases the amount of interest payments due from MetLife, Inc. under the agreement. In addition, the unaffiliated financial institution may be required to pledge collateral to MetLife, Inc. related to any increase in the estimated fair value of the surplus notes.

For the years ended December 31, 2021, 2020 and 2019, following regulatory approval, MRC repurchased $79 million, $148 million and $67 million, respectively, in aggregate principal amount of the surplus notes. Payments made by the Company in 2021, 2020 and 2019 associated with the repurchases were exclusive of accrued interest on the surplus notes. In connection with the repurchases for the years ended December 31, 2021, 2020 and 2019, the Company received payments in the aggregate amount of $10 million, $20 million and $9 million, respectively, from the unaffiliated financial institution, which reduced the amount receivable from the unaffiliated financial institution by the same amounts. No other payments related to an increase or decrease in the estimated fair value of the surplus notes were made by MetLife, Inc. or received from the unaffiliated financial institution for the years ended December 31, 2021, 2020 or 2019.

A majority of the proceeds from the offering of the surplus notes was placed in a trust, which is consolidated by the Company, to support MRC’s statutory obligations associated with the assumed closed block liabilities. For the years ended December 31, 2021 and 2019, MRC transferred $78 million and $2 million, respectively, to the trust out of its general account. For the year ended December 31, 2020, MRC transferred $78 million out of the trust to its general account. The assets are principally invested in fixed maturity securities AFS and are presented as such within the Company’s consolidated balance sheets, with the related income included within net investment income on the Company’s consolidated statements of operations.

Junior Subordinated Debt Securities

12 Months Ended

Dec. 31, 2021

Junior Subordinated Notes [Abstract]

Junior Subordinated Debt Securities

15. Junior Subordinated Debt Securities

Outstanding Junior Subordinated Debt Securities

Outstanding junior subordinated debt securities and exchangeable surplus trust securities which are exchangeable for junior subordinated debt securities prior to redemption or repayment, were as follows:


						December 31,
						2021						2020
Issuer	Issue Date	Interest Rate (1)	Scheduled Redemption Date	Interest Rate Subsequent to Scheduled Redemption Date (2)	Final Maturity	Face Value		Unamortized Discount and Issuance Costs		Carrying Value		Face Value		Unamortized Discount and Issuance Costs		Carrying Value
						(In millions)
MetLife, Inc.	December 2006	6.400%	December 2036	LIBOR + 2.205%	December 2066	$	1,250	$	(16)	$	1,234	$	1,250	$	(17)	$	1,233
MetLife Capital Trust IV (3)	December 2007	7.875%	December 2037	LIBOR + 3.960%	December 2067	700		(13)		687		700		(14)		686
MetLife, Inc.	April 2008	9.250%	April 2038	LIBOR + 5.540%	April 2068	750		(9)		741		750		(10)		740
MetLife, Inc.	July 2009	10.750%	August 2039	LIBOR + 7.548%	August 2069	500		(6)		494		500		(6)		494
Total						$	3,200	$	(44)	$	3,156	$	3,200	$	(47)	$	3,153

_________________

(1)Prior to the scheduled redemption date, interest is payable semiannually in arrears.

(2)In the event the securities are not redeemed on or before the scheduled redemption date, interest will accrue after such date at an annual rate of three-month LIBOR plus the indicated margin, payable quarterly in arrears. On March 5, 2021, the Intercontinental Exchange Benchmark Administration, the administrator of LIBOR, announced that it will cease the publication of three-month U.S. Dollar LIBOR at the end of June 2023. Existing contract fallback provisions, and whether, how, and when the Company develops and adopts alternative reference rates, will influence the effect of any changes to or discontinuation of LIBOR on the Company.

(3)MetLife Capital Trust IV is a VIE which is consolidated on the financial statements of the Company. The securities issued by this entity are exchangeable surplus trust securities, which are exchangeable for a like amount of MetLife, Inc.’s junior subordinated debt securities on the scheduled redemption date, mandatorily under certain circumstances, and at any time upon MetLife, Inc. exercising its option to redeem the securities.

In connection with each of the securities described above, MetLife, Inc. may redeem or may cause the redemption of the securities (i) in whole or in part, at any time on or after the date five years prior to the scheduled redemption date at their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption, or (ii) in certain circumstances, in whole or in part, prior to the date five years prior to the scheduled redemption date at their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption or, if greater, a make-whole price. MetLife, Inc. also has the right to, and in certain circumstances the requirement to, defer interest payments on the securities for a period up to 10 years. Interest compounds during such periods of deferral. If interest is deferred for more than five consecutive years, MetLife, Inc. is required to use proceeds from the sale of its common stock or warrants on common stock to satisfy this interest payment obligation. In connection with each of the securities described above, MetLife, Inc. entered into a separate replacement capital covenant (“RCC”). As part of each RCC, MetLife, Inc. agreed that it will not repay, redeem, or purchase the securities on or before a date 10 years prior to the final maturity date of each issuance, unless, subject to certain limitations, it has received cash proceeds during a specified period from the sale of specified replacement securities. Each RCC will terminate upon the occurrence of certain events, including an acceleration of the applicable securities due to the occurrence of an event of default. The RCCs are not intended for the benefit of holders of the securities and may not be enforced by them. Rather, each RCC is for the benefit of the holders of a designated series of MetLife, Inc.’s other indebtedness (the “Covered Debt”). Initially, the Covered Debt for each of the securities described above was MetLife, Inc.’s 5.700% senior notes due 2035 (the “5.700% Senior Notes”). As a result of the issuance of MetLife, Inc.’s 10.750% Fixed-to-Floating Rate Junior Subordinated Debentures due 2069 (the “10.750% JSDs”), the 10.750% JSDs became the Covered Debt with respect to, and in accordance with, the terms of the RCC relating to MetLife, Inc.’s 6.40% Fixed-to-Floating Rate Junior Subordinated Debentures due 2066. The 5.700% Senior Notes continue to be the Covered Debt with respect to, and in accordance with, the terms of the RCCs relating to each of MetLife Capital Trust IV’s 7.875% Fixed-to-Floating Rate Exchangeable Surplus Trust Securities, MetLife, Inc.’s 9.250% Fixed-to-Floating Rate Junior Subordinated Debentures and the 10.750% JSDs. MetLife, Inc. also entered into a replacement capital obligation which will commence during the six-month period prior to the scheduled redemption date of each of the securities described above and under which MetLife, Inc. must use reasonable commercial efforts to raise replacement capital to permit repayment of the securities through the issuance of certain qualifying capital securities.

Interest expense on outstanding junior subordinated debt securities was $261 million for each of the years ended December 31, 2021, 2020 and 2019, which is included in other expenses.

Equity

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Equity

16. Equity

Preferred Stock

Preferred stock authorized, issued and outstanding was as follows:


	December 31, 2021		December 31, 2020
Series	Shares Authorized	Shares Issued and Outstanding	Shares Authorized	Shares Issued and Outstanding
Series A preferred stock	27,600,000	24,000,000	27,600,000	24,000,000
Series C preferred stock (1)	—	—	1,500,000	500,000
Series D preferred stock	500,000	500,000	500,000	500,000
Series E preferred stock	32,200	32,200	32,200	32,200
Series F preferred stock	40,000	40,000	40,000	40,000
Series G preferred stock	1,000,000	1,000,000	1,000,000	1,000,000
Series A Junior Participating Preferred Stock	10,000,000	—	10,000,000	—
Not designated	160,827,800	—	159,327,800	—
Total	200,000,000	25,572,200	200,000,000	26,072,200

__________________

(1)As discussed below, on June 15, 2021, MetLife, Inc. redeemed and canceled the outstanding 500,000 shares of MetLife, Inc.’s 5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C (the “Series C preferred stock”).

In May 2021, MetLife, Inc. delivered a notice of redemption to the holders of the Series C preferred stock pursuant to which it would redeem the remaining 500,000 shares of Series C preferred stock at a redemption price of $1,000 per share. In connection with the redemption, MetLife, Inc. recognized a preferred stock redemption premium of $6 million (calculated as

the difference between the carrying value of the Series C preferred stock and the total amount paid by MetLife, Inc. to the holders of the Series C preferred stock in connection with the redemption), which was recorded as a reduction of retained earnings at June 30, 2021. All outstanding shares of Series C preferred stock were redeemed on the dividend payment date of June 15, 2021 for an aggregate redemption price of $500 million in cash.

In June 2021, MetLife, Inc. filed a Certificate of Elimination (the “Certificate of Elimination”) of Series C preferred stock with the Secretary of State of the State of Delaware to eliminate all references to the Series C preferred stock in MetLife, Inc.’s Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”), including the related Certificate of Designations. As a result of the filing of the Certificate of Elimination, MetLife, Inc.’s Certificate of Incorporation was amended to eliminate all references therein to the Series C preferred stock, and the shares that were designated to such series were returned to the status of authorized but unissued shares of preferred stock, par value $0.01 per share, of MetLife, Inc., without designation as to series. The Certificate of Elimination does not affect the total number of authorized shares of capital stock of MetLife, Inc. or the total number of authorized shares of preferred stock.

In September 2020, MetLife, Inc. delivered a notice of partial redemption to the holders of the Series C preferred stock pursuant to which it would redeem 1,000,000 of its 1,500,000 shares of Series C preferred stock at a redemption price of $1,000 per share, plus an amount equal to accrued but unpaid dividends on the Series C preferred stock to, but excluding, October 10, 2020, the redemption date. In connection with the redemption, MetLife, Inc. recognized a preferred stock redemption premium of $14 million (calculated as the difference between the carrying value of the Series C preferred stock and the total amount paid by MetLife, Inc. to the holders of the Series C preferred stock in connection with the redemption). In October 2020, MetLife, Inc. redeemed and canceled 1,000,000 shares of Series C preferred stock for an aggregate redemption price of $1.0 billion in cash.

In September 2020, MetLife, Inc. issued 1,000,000 shares of 3.85% Fixed Rate Reset Non-Cumulative Preferred Stock, Series G (the “Series G preferred stock”) with a $0.01 par value per share and a liquidation preference of $1,000 per share, for aggregate net proceeds of $989 million. In connection with the offering of the Series G preferred stock, MetLife, Inc. incurred approximately $11 million of issuance costs which have been recorded as a reduction of additional paid-in capital.

In January 2020, MetLife, Inc. issued 40,000 shares of 4.75% Non-Cumulative Preferred Stock, Series F (the “Series F preferred stock”) with a $0.01 par value per share and a liquidation preference of $25,000 per share, for aggregate net proceeds of $972 million. MetLife, Inc. deposited the Series F preferred stock under a deposit agreement with a depositary, which issued interests in fractional shares of the Series F preferred stock in the form of depositary shares (“Series F Depositary Shares”) evidenced by depositary receipts; each Series F Depositary Share representing 1/1,000th interest in a share of the Series F preferred stock. In connection with the offering of the Series F Depositary Shares, MetLife, Inc. incurred approximately $28 million of issuance costs which have been recorded as a reduction of additional paid-in capital.

The outstanding preferred stock ranks senior to MetLife, Inc.’s common stock with respect to the payment of dividends and distributions upon liquidation, dissolution or winding-up. Holders of the outstanding preferred stock are entitled to receive dividend payments only when, as and if declared by MetLife, Inc.’s Board of Directors or a duly authorized committee thereof. Dividends on the preferred stock are not cumulative or mandatory. Accordingly, if dividends are not declared on the preferred stock of the applicable series for any dividend period, then any accrued dividends for that dividend period will cease to accrue and be payable. If a dividend is not declared before the dividend payment date for any such dividend period, MetLife, Inc. will have no obligation to pay dividends accrued for such dividend period whether or not dividends are declared for any future period. No dividends may be paid or declared on MetLife, Inc.’s common stock (or any other securities ranking junior to the preferred stock) and MetLife, Inc. may not purchase, redeem, or otherwise acquire its common stock (or other such junior stock) unless the full dividends for the latest completed dividend period on all outstanding shares of preferred stock, and any parity stock, have been declared and paid or provided for.

The table below presents the dividend rates of MetLife, Inc.’s preferred stock outstanding at December 31, 2021:


Series						Per Annum Dividend Rate
A						Three-month LIBOR + 1.00%, with floor of 4.00%, payable quarterly in March, June, September and December
D						5.875% from issuance date to, but excluding, March 15, 2028, payable semiannually in March and September; three-month LIBOR + 2.959% payable quarterly in March, June, September and December, thereafter
E						5.625% from issuance date, payable quarterly in March, June, September and December
F						4.750% from issuance date, payable quarterly in March, June, September and December, commencing in June 2020
G						3.850% from issuance date, but excluding, September 15, 2025, payable semiannually in March and September commencing in March 2021; five year treasury rate, reset every five years, + 3.576% payable semiannually in March and September, thereafter

In the table above, dividends on each series of preferred stock are payable in arrears for the periods specified, if declared.

MetLife, Inc. is prohibited from declaring dividends on the Floating Rate Non-Cumulative Preferred Stock, Series A (the “Series A preferred stock”) if it fails to meet specified capital adequacy, net income and stockholders’ equity levels. See “— Dividend Restrictions — MetLife, Inc.”

Holders of the preferred stock do not have voting rights except in certain circumstances, including where the dividends have not been paid for a specified number of dividend payment periods whether or not those periods are consecutive. Under such circumstances, the holders of the preferred stock have certain voting rights with respect to members of the Board of Directors of MetLife, Inc.

The preferred stock is not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions.

The Series A preferred stock is redeemable at MetLife, Inc.’s option in whole or in part, at a redemption price of $25 per share of Series A preferred stock, plus declared and unpaid dividends.

MetLife, Inc. may, at its option, redeem the 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D (the “Series D preferred stock”), (i) in whole but not in part at any time prior to March 15, 2028, within 90 days after the occurrence of a “rating agency event,” at a redemption price equal to $1,020 per share of Series D preferred stock, plus an amount equal to any dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, such redemption date; (ii) in whole but not in part, at any time prior to March 15, 2028, within 90 days after the occurrence of a “regulatory capital event;” and (iii) in whole or in part, at any time or from time to time, on or after March 15, 2028, in the case of (ii) or (iii), at a redemption price equal to $1,000 per share of Series D preferred stock, plus an amount equal to any dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, such redemption date.

MetLife, Inc. may, at its option, redeem the 5.625% Non-Cumulative Preferred Stock, Series E (the “Series E preferred stock”), (i) in whole but not in part at any time prior to June 15, 2023, within 90 days after the occurrence of a “rating agency event,” at a redemption price equal to $25,500 per share of Series E preferred stock (equivalent to $25.50 per depositary share, each Series E depositary share representing a 1/1,000th interest in a share of the Series E preferred stock (“Series E Depositary Share”)), plus an amount equal to any dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, such redemption date; (ii) in whole but not in part, at any time prior to June 15, 2023, within 90 days after the occurrence of a “regulatory capital event;” and (iii) in whole or in part, at any time or from time to time, on or after June 15, 2023, in the case of (ii) or (iii), at a redemption price equal to $25,000 per share of Series E preferred stock (equivalent to $25 per Series E Depositary Share), plus an amount equal to any dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, such redemption date.

MetLife, Inc. may, at its option, redeem the Series F preferred stock, (i) in whole but not in part at any time prior to March 15, 2025, within 90 days after the occurrence of a “rating agency event,” at a redemption price equal to $25,500 per share of Series F preferred stock (equivalent to $25.50 per Series F Depositary Share), plus an amount equal to any accrued and unpaid dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, the redemption date, (ii) in whole but not in part, at any time prior to March 15, 2025, within 90 days after the occurrence of a “regulatory capital event;” and (iii) in whole or in part, at any time or from time to time, on or after March 15, 2025, in the case of (ii) or (iii), at a redemption price equal to $25,000 per share of Series F preferred stock

(equivalent to $25 per Series F Depositary Share), plus an amount equal to any dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, such redemption date.

MetLife, Inc. may, at its option, redeem the Series G preferred stock, (a) in whole but not in part, at any time, within 90 days after the conclusion of any review or appeal process instituted by the Company following the occurrence of a “rating agency event” or, in the absence of any such review or appeal process, from such “rating agency event,” at a redemption price equal to $1,020 per share of Series G preferred stock, plus an amount equal to any dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, such redemption date and (b)(i) in whole but not in part, at any time, within 90 days after the occurrence of a “regulatory capital event,” or (ii) in whole or in part, on any dividend payment date, on or after September 15, 2025, in each case, at a redemption price equal to $1,000 per share of Series G preferred stock, plus an amount equal to any dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, such redemption date.

A “rating agency event” means that any nationally recognized statistical rating organization that then publishes a rating for MetLife, Inc. amends, clarifies or changes the criteria used to assign equity credit to securities like the Series D preferred stock, Series E preferred stock, Series F preferred stock or Series G preferred stock, which results in the lowering of the equity credit assigned to the security, or shortens the length of time that the security is assigned a particular level of equity credit. A “regulatory capital event” could occur as a result of a change or proposed change in laws, rules, regulations or regulatory standards, including capital adequacy rules (or the interpretation or application thereof) of the United States or any political subdivision thereof, including any capital regulator, including but not limited to the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), the Federal Insurance Office, the National Association of Insurance Commissioners (“NAIC”) or any state insurance regulator as may then have group-wide oversight of MetLife, Inc.’s regulatory capital, from those laws, rules, regulations or regulatory standards (or the interpretation or application thereof) in effect as of March 22, 2018, in the case of the Series D preferred stock, June 4, 2018, in the case of the Series E preferred stock, January 15, 2020, in the case of the Series F preferred stock, or September 10, 2020, in the case of the Series G preferred stock, that would create a more than insubstantial risk, as determined by MetLife, Inc., that the security would not be treated as “Tier 1 capital” or as capital with attributes similar to those of Tier 1 capital, except that a “regulatory capital event” will not include a change or proposed change (or the interpretation or application thereof) that would result in the adoption of any criteria substantially the same as the criteria in the capital adequacy rules of the Federal Reserve Board applicable to bank holding companies as of March 22, 2018, in the case of the Series D preferred stock, June 4, 2018, in the case of the Series E preferred stock, January 15, 2020, in the case of the Series F preferred stock, or September 10, 2020, in the case of the Series G preferred stock.

The per share and aggregate dividends declared for MetLife, Inc.’s preferred stock were as follows for the years ended December 31, 2021, 2020 and 2019:


	For the Years Ended December 31,
	2021				2020				2019
Series	Per Share		Aggregate		Per Share		Aggregate		Per Share		Aggregate
	(In millions, except per share data)
A	$	1.015	$	24	$	1.015	$	24	$	1.017	$	24
C (1)	$	19.085	10		$	45.860	59		$	52.500	79
D	$	58.750	29		$	58.750	30		$	58.750	30
E	$	1,406.252	45		$	1,406.252	45		$	1,406.252	45
F	$	1,187.500	48		$	1,088.542	44		$	—	—
G	$	39.035	39		$	—	—		$	—	—
Total			$	195			$	202			$	178

__________________

(1)Dividends were paid through the dividend payment date of June 15, 2021, when all outstanding shares of Series C preferred stock were redeemed and eliminated.

Common Stock

Issuances

For the years ended December 31, 2021, 2020 and 2019, MetLife, Inc. issued 4,926,185 shares, 3,933,989 shares and 5,856,057 shares of its common stock for $195 million, $153 million and $199 million, respectively, in connection with stock option exercises and other stock-based awards. There were no shares of common stock issued from treasury stock for each of the years ended December 31, 2021, 2020 and 2019.

Repurchase Authorizations

MetLife, Inc. announced that its Board of Directors authorized common stock repurchases as follows:


			Authorization Remaining at
Announcement Date	Authorization Amount		December 31, 2021
	(In millions)
August 4, 2021	$	3,000	$	1,506
December 11, 2020	$	3,000	$	—
July 31, 2019	$	2,000	$	—

Under these authorizations, MetLife, Inc. may purchase its common stock from the MetLife Policyholder Trust, in the open market (including pursuant to the terms of a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934 (“Exchange Act”)), and in privately negotiated transactions. Common stock repurchases are subject to the discretion of MetLife, Inc.’s Board of Directors and will depend upon the Company’s capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to management’s assessment of the stock’s underlying value, applicable regulatory approvals, and other legal and accounting factors.

For the years ended December 31, 2021, 2020 and 2019, MetLife, Inc. repurchased 72,296,518 shares, 26,361,487 shares and 49,131,501 shares under these repurchase authorizations for $4.3 billion, $1.2 billion, and $2.3 billion, respectively. At December 31, 2021, $25 million of the aforementioned 2021 share repurchases was included in other liabilities. At December 31, 2021, MetLife, Inc. had $1.5 billion remaining under its August 2021 common stock repurchase authorization.

Dividends

The funding of the cash dividends and operating expenses of MetLife, Inc. is primarily provided by cash dividends from MetLife, Inc.’s insurance subsidiaries. The statutory capital and surplus, or net assets, of MetLife, Inc.’s insurance subsidiaries are subject to regulatory restrictions except to the extent that dividends are allowed to be paid in a given year without prior regulatory approval. Dividends exceeding these limitations can generally be made subject to regulatory approval. The nature and amount of these dividend restrictions, as well as the statutory capital and surplus of MetLife, Inc.’s U.S. insurance subsidiaries, are disclosed in “— Statutory Equity and Income” and “— Dividend Restrictions — Insurance Operations.” MetLife, Inc.’s principal non-U.S. insurance operations are branches or subsidiaries of American Life Insurance Company (“American Life”), a U.S. insurance subsidiary of the Company. In addition, the payment of dividends by MetLife, Inc. to its shareholders is also subject to restrictions. See “— Dividend Restrictions — MetLife, Inc.”

Stock-Based Compensation Plans

Plans for Employees and Agents

Under the MetLife, Inc. 2015 Stock and Incentive Compensation Plan (the “2015 Stock Plan”), MetLife, Inc. may grant awards to employees and agents in the form of Stock Options, Stock Appreciation Rights, Performance Shares or Performance Share Units, Restricted Stock or Restricted Stock Units, Cash-Based Awards and Stock-Based Awards (each, as applicable, as defined in the 2015 Stock Plan with reference to shares of MetLife, Inc. common stock (“Shares”)). Awards under the 2015 Stock Plan and its predecessor plan, the MetLife, Inc. 2005 Stock and Incentive Compensation Plan (the “2005 Stock Plan”), were outstanding at December 31, 2021. MetLife, Inc. granted all awards to employees and agents in 2021 under the 2015 Stock Plan.

The aggregate number of Shares authorized for issuance under the 2015 Stock Plan at December 31, 2021 was 32,565,228.

MetLife recognizes compensation expense related to each award under the 2005 Stock Plan or 2015 Stock Plan in one of two ways:

•For cash-settled awards and the Performance Shares it granted in 2017 and 2018, MetLife remeasures the compensation expense quarterly.

•For other awards, MetLife recognizes an expense based on the number of awards it expects to vest, which represents the awards granted less expected forfeitures over the life of the award, as estimated at the date of grant. Unless MetLife observes a material deviation from the assumed forfeiture rate during the term in which the awards are expensed, MetLife recognizes any adjustment necessary to reflect differences in actual experience in the period the award becomes payable or exercisable.

Compensation expense related to awards under the 2005 Stock Plan principally relates to the issuance of Stock Options. Under the 2015 Stock Plan, compensation expense principally relates to Stock Options, Unit Options, Performance Shares, Performance Units, Restricted Stock Units and Restricted Units. MetLife, Inc. granted the majority of each year’s awards under the 2005 Stock Plan and 2015 Stock Plan in the first quarter of the year.

Awards that have become payable in Shares but the issuance of which has been deferred (“Deferred Shares”), payable to employees or agents related to awards under all plans equaled 702,332 Shares at December 31, 2021.

MetLife granted cash-settled awards based in whole or in part on the price of Shares or changes in the price of Shares (“Phantom Stock-Based Awards”) under the MetLife, Inc. International Unit Option Incentive Plan, the MetLife International Performance Unit Incentive Plan, and the MetLife International Restricted Unit Incentive Plan prior to 2015, and under the 2015 Stock Plan in 2015 and later.

Plans for Non-Management Directors

Under the MetLife, Inc. 2015 Non-Management Director Stock Compensation Plan (the “2015 Director Stock Plan”), MetLife, Inc. may grant non-management Directors of MetLife, Inc. awards in the form of nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock or Restricted Stock Units, or Stock-Based Awards (each, as applicable, as defined in the 2015 Director Stock Plan with reference to Shares).

The only awards MetLife, Inc. granted under the 2015 Director Stock Plan and its predecessor plan, the MetLife, Inc. 2005 Non-Management Director Stock Compensation Plan (the “2005 Director Stock Plan”), through December 31, 2021 were Stock-Based Awards that vested immediately. As a result, no awards under the 2005 Director Stock Plan or 2015 Director Stock Plan remained outstanding at December 31, 2021.

The aggregate number of Shares authorized for issuance under the 2015 Director Stock Plan at December 31, 2021 was 1,507,886.

MetLife recognizes compensation expense related to awards under the 2015 Director Stock Plan based on the number of Shares awarded.

Deferred Shares payable to Directors related to awards under the 2005 Director Stock Plan, 2015 Director Stock Plan, or earlier applicable plans equaled 312,131 Shares at December 31, 2021.

Compensation Expense Related to Stock-Based Compensation

The components of compensation expense related to stock-based compensation includes compensation expense related to Phantom Stock-Based Awards and excludes the insignificant compensation expense related to the 2015 Director Stock Plan. Those components were:


	Years Ended December 31,
	2021		2020		2019
	(In millions)
Stock Options and Unit Options	$	9	$	6	$	7
Performance Shares and Performance Units (1)	98		63		89
Restricted Stock Units and Restricted Units	66		58		54
Total compensation expense	$	173	$	127	$	150
Income tax benefit	$	36	$	27	$	32

__________________

(1)The Company may further adjust the number of Performance Shares and Performance Units it expects to vest, and the related compensation expense, if management changes its estimate of the most likely final performance factor.

The following table presents the total unrecognized compensation expense related to stock-based compensation and the expected weighted average period over which these expenses will be recognized at:


	December 31, 2021
	Expense		Weighted Average Period
	(In millions)		(Years)
Stock Options	$	3	1.83
Performance Shares	$	28	1.70
Restricted Stock Units	$	36	1.73

Equity Awards

Stock Options

Stock Options are the contingent right of award holders to purchase Shares at a stated price for a limited time. All Stock Options have an exercise price equal to the closing price of a Share reported on the New York Stock Exchange (“NYSE”) on the date of grant and have a maximum term of 10 years. The majority of Stock Options MetLife, Inc. has granted have become or will become exercisable at a rate of one-third of each award on each of the first three anniversaries of the grant date. Other Stock Options have become or will become exercisable on the third anniversary of the grant date. Vesting is subject to continued service, except for employees who meet specified age and service criteria and in certain other limited circumstances.

Stock Option Activity

A summary of the activity related to Stock Options was as follows:


	Shares Under Option	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (1)
				(Years)	(In millions)
Outstanding at January 1, 2021	7,042,441	$	40.25	3.95	$	47
Granted	477,416	$	57.43
Exercised	(3,150,217)	$	37.69
Expired (2)	(75,804)	$	40.63
Forfeited (3)	(25,745)	$	46.28
Outstanding at December 31, 2021	4,268,091	$	44.02	5.03	$	79
Vested and expected to vest at December 31, 2021	4,256,858	$	43.99	5.02	$	79
Exercisable at December 31, 2021	3,293,523	$	41.72	4.03	$	68

__________________

(1)The intrinsic value of each Stock Option is the closing price on a particular date less the exercise price of the Stock Option, so long as the difference is greater than zero. The aggregate intrinsic value of all outstanding Stock Options is computed using the closing Share price on December 31, 2021 of $62.49 and December 31, 2020 of $46.95, as applicable.

(2)Expired options were exercisable, but unexercised, as of their expiration date.

(3)Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria for post-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of the awards.

MetLife estimates the fair value of Stock Options on the date of grant using a binomial lattice model. The significant assumptions the Company uses in its binomial lattice model include: expected volatility of the price of Shares; risk-free rate of return; dividend yield on Shares; exercise multiple; and the post-vesting termination rate.

MetLife bases expected volatility on an analysis of historical prices of Shares and call options on Shares traded on the open market. The Company uses a weighted-average of the implied volatility for publicly-traded call options with the longest remaining maturity nearest to the money as of each valuation date and the historical volatility, calculated using monthly closing prices of Shares. The Company chose a monthly measurement interval for historical volatility as this interval reflects the Company’s view that employee option exercise decisions are based on longer-term trends in the price of the underlying Shares rather than on daily price movements.

The Company’s binomial lattice model incorporates different risk-free rates based on the imputed forward rates for U.S. Treasury Strips for each year over the contractual term of the option. The table below presents the full range of rates that were used for options granted during the respective periods.

The Company determines dividend yield based on historical dividend distributions compared to the price of the underlying Shares as of the valuation date and held constant over the life of the Stock Option.

The Company’s binomial lattice model incorporates the term of the Stock Options, expected exercise behavior and a post-vesting termination rate, or the rate at which vested options are exercised or expire prematurely due to termination of employment. From these factors, the model derives an expected life of the Stock Option. The model’s exercise behavior is a multiple that reflects the ratio of stock price at the time of exercise over the exercise price of the Stock Option at the time the model expects holders to exercise. The model derives the exercise multiple from actual exercise activity. The model determines the post-vesting termination rate from actual exercise experience and expiration activity under the Incentive Plans.

The following table presents the weighted average assumptions, with the exception of risk-free rate (which is expressed as a range), that the model uses to determine the fair value of unexercised Stock Options:


	Years Ended December 31,
	2021	2020	2019
Dividend yield	3.20%	3.70%	3.76%
Risk-free rate of return	0.08% - 2.48%	1.30% - 1.57%	2.52% - 3.32%
Expected volatility	29.72%	25.55%	30.27%
Exercise multiple	1.44	1.44	1.43
Post-vesting termination rate	3.58%	3.79%	3.86%
Contractual term (years)	10	10	10
Expected life (years)	7	7	6
Weighted average exercise price of stock options granted	$57.43	$47.58	$44.65
Weighted average fair value of stock options granted	$12.76	$9.02	$10.36

The following table presents a summary of Stock Option exercise activity:


	Years Ended December 31,
	2021		2020		2019
	(In millions)
Total intrinsic value of stock options exercised	$	60	$	29	$	60
Cash received from exercise of stock options	$	119	$	89	$	125
Income tax benefit realized from stock options exercised	$	13	$	6	$	13

Performance Shares

Performance Shares are units that, if they vest, are multiplied by a performance factor to produce a number of final Shares payable. MetLife accounts for Performance Shares as equity awards. MetLife, Inc. does not credit Performance Shares with dividend-equivalents for dividends paid on Shares. Performance Share awards normally vest in their entirety at the end of the three-year performance period. Vesting is subject to continued service, except for employees who meet specified age and service criteria and in certain other limited circumstances.

For awards granted for the 2018 – 2020 and earlier performance periods, the vested Performance Shares will be multiplied by a performance factor of 0% to 175% that the MetLife, Inc. Compensation Committee will determine in its discretion (subject to MetLife, Inc. meeting threshold performance goals related to its adjusted income or total shareholder return). In doing so, the Compensation Committee may consider MetLife, Inc.’s total shareholder return relative to the performance of its competitors and adjusted return on MetLife, Inc.’s common stockholders’ equity relative to its financial plan. MetLife estimates the fair value of Performance Shares each quarter until they become payable. For awards granted for the 2019 – 2021 and later performance periods in progress through December 31, 2021, the vested Performance Shares will be multiplied by a performance factor of 0% to 175% that the MetLife, Inc. Compensation Committee will determine by (a) the Company’s annual adjusted return on equity performance over the three-year period compared to the Company’s three-year business plan goal; (b) the Company’s total shareholder return over the same three-year period compared to a peer group of companies; and (c) a cap of 100% if the Company’s total shareholder return for the three-year period is zero or less. The Compensation Committee will exclude the impact of a “Significant Event” from the Company’s adjusted return on equity or the business plan goal, to the extent the Committee determines in its informed judgment that the event changed the adjusted return on equity performance factor component. “Significant Events” include accounting changes, business combinations, restructuring, nonrecurring tax events, common share issuance or repurchases, catastrophes, litigation and regulatory settlements, asbestos and environmental events, certain specified classes of non-coupon investments, and other significant nonrecurring, infrequent, or unusual items.

The performance factor for the 2018 - 2020 performance period was 110.8%.

Restricted Stock Units

Restricted Stock Units are units that, if they vest, are payable in an equal number of Shares. MetLife accounts for Restricted Stock Units as equity awards. MetLife, Inc. does not credit Restricted Stock Units with dividend-equivalents for dividends paid on Shares. Accordingly, the estimated fair value of Restricted Stock Units is based upon the closing price of Shares on the date of grant, reduced by the present value of estimated dividends to be paid on that stock.

The majority of Restricted Stock Units normally vest in thirds on or shortly after the first three anniversaries of their grant date. Other Restricted Stock Units normally vest in their entirety on the third or later anniversary of their grant date. Vesting is subject to continued service, except for employees who meet specified age and service criteria and in certain other limited circumstances.

Performance Share and Restricted Stock Unit Activity

The following table presents a summary of Performance Share and Restricted Stock Unit activity:


	Performance Shares			Restricted Stock Units
	Shares	Weighted Average Fair Value (1)		Units	Weighted Average Fair Value (1)
Outstanding at January 1, 2021	4,101,854	$	40.61	2,788,150	$	40.51
Granted	1,175,558	$	51.37	1,159,193	$	51.37
Forfeited (2)	(162,746)	$	43.05	(179,288)	$	44.38
Payable (3)	(1,266,651)	$	40.83	(1,317,009)	$	40.45
Outstanding at December 31, 2021	3,848,015	$	43.74	2,451,046	$	45.39
Vested and expected to vest at December 31, 2021	3,793,017	$	43.65	2,409,077	$	45.36

__________________

(1)Values for awards outstanding at January 1, 2021, represent weighted average number of awards multiplied by their fair value per Share at December 31, 2020. Otherwise, all values represent weighted average of number of awards multiplied by the fair value per Share at December 31, 2021. Fair value of Performance Shares and Restricted Stock Units on December 31, 2021 was equal to Grant Date fair value.

(2)Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria for post-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of the awards.

(3)Includes both Shares paid and Deferred Shares for later payment.

Performance Share amounts above represent aggregate awards at target, and do not reflect potential increases or decreases that may result from the performance factor. At December 31, 2021, the performance period for the 2019 — 2021 Performance Share grants was completed, but the performance factor had not yet been determined. Included in the immediately preceding table are 1,485,512 outstanding Performance Shares to which the 2019 — 2021 performance factor will be applied.

Liability Awards (Phantom Stock-Based Awards)

Certain MetLife subsidiaries have a liability for Phantom Stock-Based Awards in the form of Unit Options, Performance Units, and/or Restricted Units. These Share-based cash settled awards are recorded as liabilities until MetLife makes payment. The fair value of unsettled or unvested liability awards is re-measured at the end of each reporting period based on the change in fair value of one Share. The liability and corresponding expense are adjusted accordingly until the award is settled.

Unit Options

Unit Options are the contingent right of award holders to receive a cash payment equal to the closing price of a Share on the exercise date, less the closing price on the grant date, if the difference is greater than zero, for a limited time. All Unit Options have an exercise price equal to the closing price of a Share reported on the NYSE on the date of grant and have a maximum term of 10 years. The majority of Unit Options have become or will become eligible for exercise at a rate of one-third of each award on each of the first three anniversaries of the grant date. Other Unit Options have become or will become eligible for exercise on the third anniversary of the grant date. Vesting is subject to continued service, except for employees who meet specified age and service criteria and in certain other limited circumstances.

Performance Units

Performance Units are units that, if they vest, are multiplied by a performance factor to produce a number of final Performance Units which are payable in cash equal to the closing price of a Share on a date following the last day of the three-year performance period. Performance Units are accounted for as liability awards. MetLife, Inc. does not credit them with dividend-equivalents for dividends paid on Shares. Accordingly, the estimated fair value of Performance Units is based upon the closing price of a Share on the date of grant, reduced by the present value of estimated dividends to be paid on that stock during the performance period. MetLife determines each performance period’s performance factor in the same way it does for the same performance period’s Performance Shares.

See “— Equity Awards — Performance Shares” for a discussion of the Performance Shares vesting period and performance factor calculation, which are also used for Performance Units.

Restricted Units

Restricted Units are units that, if they vest, are payable in cash equal to the closing price of a Share on the last day of the restriction period. The majority of Restricted Units normally vest in thirds on or shortly after the first three anniversaries of their grant date. Other Restricted Units normally vest in their entirety on the third or later anniversary of their grant date. Vesting is subject to continued service, except for employees who meet specified age and service criteria and in certain other limited circumstances. Restricted Units are accounted for as liability awards. MetLife, Inc. does not credit Restricted Units with dividend-equivalents for dividends paid on Shares. Accordingly, the estimated fair value of Restricted Units is based upon the closing price of a Share on the date of grant, reduced by the present value of estimated dividends to be paid on that stock during the performance period.

Liability Award Activity

The following table presents a summary of Liability Awards activity:


	Unit Options	Performance Units	Restricted Units
Outstanding at January 1, 2021	378,434	515,235	605,447
Granted	—	141,110	261,257
Exercised	(224,681)	—	—
Expired (1)	(28,767)	—	—
Forfeited (2)	—	(37,145)	(60,473)
Paid	—	(170,214)	(291,675)
Outstanding at December 31, 2021	124,986	448,986	514,556
Vested and expected to vest at December 31, 2021	124,668	436,452	501,530

__________________

(1)Expired options were exercisable, but unexercised, as of their expiration date.

(2)Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria for post-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of the awards.

Performance Units amounts above represent aggregate awards at target, and do not reflect potential increases or decreases that may result from the performance factor. At December 31, 2021, the performance period for the 2019 - 2021 Performance Unit grants was completed, but the performance factor had not yet been determined. Included in the immediately preceding table are 156,090 outstanding Performance Units to which the 2019 - 2021 performance factor will be applied.

Statutory Equity and Income

The states of domicile of MetLife, Inc.’s U.S. insurance subsidiaries each impose risk-based capital (“RBC”) requirements that were developed by the NAIC. American Life does not write business in Delaware or any other U.S. state and, as such, is exempt from RBC requirements by Delaware law. 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 (“Company Action Level RBC”). While not required by or filed with insurance regulators, the Company also calculates an internally defined combined RBC ratio (“Statement-Based Combined RBC Ratio”), which is determined by dividing the sum of TAC for MetLife, Inc.’s principal U.S. insurance subsidiaries, excluding American Life, by the sum of Company Action Level RBC for such subsidiaries. The Company’s Statement-Based Combined RBC Ratio was in excess of 360% and in excess of 350% at December 31, 2021 and 2020, respectively. In addition, all non-exempted U.S. insurance subsidiaries individually exceeded Company Action Level RBC for all periods presented.

MetLife, Inc.’s foreign insurance operations are regulated by applicable authorities of the jurisdictions in which each entity operates and are subject to minimum capital and solvency requirements in those jurisdictions before corrective action commences. At December 31, 2021 and 2020, the adjusted capital of American Life’s insurance subsidiary in Japan, the Company’s largest foreign insurance operation, was in excess of four times the 200% solvency margin ratio that would require corrective action. Excluding Japan, the aggregate required capital and surplus of the Company’s other foreign insurance operations was $4.3 billion and the aggregate actual regulatory capital and surplus of such operations was $10.6 billion as of the date of the most recent required capital adequacy calculation for each jurisdiction. The Company’s foreign insurance operations exceeded the minimum capital and solvency requirements as of the date of the most recent fiscal year-end capital adequacy calculation for each jurisdiction.

MetLife, Inc.’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 or applicable foreign jurisdiction. 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 various state insurance departments may impact the effect of Statutory Codification on the statutory capital and surplus of MetLife, Inc.’s U.S. insurance subsidiaries.

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 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. Further, statutory accounting principles do not give recognition to purchase accounting adjustments. MetLife, Inc.’s 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 Considerations Letter, which mandates certain assumptions in asset adequacy testing. The collective impact of these prescribed accounting practices decreased the statutory capital and surplus of MLIC by $1.2 billion and $1.6 billion at December 31, 2021 and 2020, respectively, compared to what capital and surplus would have been had it been measured under NAIC guidance.

American Life calculates its policyholder reserves on insurance written in each foreign jurisdiction in accordance with the reserve standards required by such jurisdiction. Additionally, American Life’s insurance subsidiaries are valued based on each respective subsidiary’s underlying local statutory equity, adjusted in a manner consistent with the reporting prescribed for its branch operations. The prescribed practice exempts American Life from calculating and disclosing the impact to its statutory capital and surplus.

The tables below present amounts from MetLife, Inc.’s U.S. insurance subsidiaries, which are derived from the 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	2021		2020		2019
		(In millions)
Metropolitan Life Insurance Company	New York	$	3,513	$	3,392	$	3,859
American Life Insurance Company	Delaware	$	48	$	980	$	1,386
Metropolitan Property and Casualty Insurance Company (1)	Rhode Island	N/A		$	336	$	245
Metropolitan Tower Life Insurance Company	Nebraska	$	185	$	(237)	$	(13)
Other	Various	$	76	$	84	$	12

__________________

(1)See Note 3 for information on the Company’s business dispositions.

Statutory capital and surplus was as follows at:


	December 31,
Company	2021		2020
	(In millions)
Metropolitan Life Insurance Company	$	11,804	$	11,312
American Life Insurance Company	$	5,584	$	4,419
Metropolitan Property and Casualty Insurance Company (1)	N/A		$	2,249
Metropolitan Tower Life Insurance Company	$	1,638	$	1,387
Other	$	193	$	186

__________________

(1)See Note 3 for information on the Company’s business dispositions.

The Company’s U.S. captive life reinsurance subsidiaries, which reinsure risks including the closed block, level premium term life and ULSG assumed from other MetLife subsidiaries, have no state prescribed accounting practices, except for MetLife Reinsurance Company of Vermont (“MRV”).

MRV, with the explicit permission of the Commissioner of Insurance of the State of Vermont, has included, as admitted assets, the value of letters of credit serving as collateral for reinsurance credit taken by various affiliated cedants, in connection with reinsurance agreements entered into between MRV and the various affiliated cedants, which resulted in higher statutory capital and surplus of $2.0 billion at both December 31, 2021 and 2020. MRV’s RBC would have triggered a regulatory event without the use of the state prescribed practice.

The combined statutory net income (loss) of MetLife, Inc.’s U.S. captive life reinsurance subsidiaries was $41 million, ($7) million and ($27) million for the years ended December 2021, 2020 and 2019, respectively, and the combined statutory capital and surplus, including the aforementioned prescribed practice, was $693 million and $691 million at December 31, 2021 and 2020, respectively.

Dividend Restrictions

Insurance Operations

The table below sets forth the dividends permitted to be paid by MetLife, Inc.’s primary insurance subsidiaries without insurance regulatory approval and the actual dividends paid:


	2022		2021			2020
Company	Permitted Without Approval (1)		Paid (2)			Paid (2)
	(In millions)
Metropolitan Life Insurance Company	$	3,539	$	3,393		$	2,832
American Life Insurance Company	$	554	$	1,135		$	1,200	(3)
Metropolitan Property and Casualty Insurance Company	N/A		$	35	(4)	$	250
Metropolitan Tower Life Insurance Company	$	163	$	—		$	—

__________________

(1)Reflects dividend amounts that may be paid by the end of 2022 without prior regulatory approval.

(2)Reflects all amounts paid, including those where regulatory approval was obtained as required.

(3)Includes a $341 million non-cash dividend.

(4)Consists of the stock of a subsidiary paid to MetLife, Inc. See Note 3 for information on the Company’s business dispositions.

Under the New York State Insurance Law, MLIC 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, MLIC 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, MLIC 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, MLIC 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, MLIC 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 New York Superintendent of Financial Services (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 the 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 stockholder.

Under the Delaware Insurance Code, American Life is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to MetLife, Inc. as long as the amount of the dividend, when aggregated with all other dividends in the preceding 12 months, does not exceed 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 including pro rata distributions of American Life’s own securities. American Life will be permitted to pay a dividend to MetLife, Inc. in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Delaware Commissioner of Insurance (the “Delaware Commissioner”) and the Delaware Commissioner either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as “unassigned funds (surplus)”) as of the immediately preceding calendar year requires insurance regulatory approval. Under the Delaware Insurance Code, the Delaware Commissioner 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.

Under the Nebraska Insurance Code, Metropolitan Tower Life Insurance Company (“MTL”) is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to MetLife, Inc. as long as the amount of the dividend, when aggregated with all other dividends in the preceding 12 months, does not exceed 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 including pro rata distributions of MTL’s own securities. MTL will be permitted to pay a dividend to MetLife, Inc. in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Director of the Nebraska Department of Insurance (the “Nebraska Director”) and the Nebraska Director either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as “unassigned funds (surplus)” excluding unrealized capital gains) as of the immediately preceding calendar year requires insurance regulatory approval. Under the Nebraska Insurance Code, the Nebraska Director 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.

MetLife, Inc.

The declaration and payment of dividends are subject to the discretion of MetLife, Inc.’s Board of Directors and will depend on its financial condition, results of operations, cash requirements, future prospects, regulatory restrictions on the payment of dividends by MetLife, Inc.’s insurance subsidiaries and other factors deemed relevant by the Board of Directors. In addition, the payment of dividends on MetLife, Inc.’s common stock, and MetLife, Inc.’s ability to repurchase its common stock, may be subject to restrictions described below arising under the terms of MetLife, Inc.’s Series A preferred stock and its junior subordinated debentures in situations where MetLife, Inc. may be experiencing financial stress, as described below. For purposes of this discussion, “junior subordinated debentures” are deemed to include MetLife, Inc.’s Fixed-to-Floating Rate Exchangeable Surplus Trust Securities, as discussed in Note 15.

“Dividend Stopper” Provisions in the Preferred Stock and Junior Subordinated Debentures

If MetLife, Inc. has not paid the full dividends on its preferred stock for the latest completed dividend period, MetLife, Inc. may not repurchase or pay dividends on its common stock during a dividend period under so-called “dividend stopper” provisions. Further, MetLife, Inc.’s Series A preferred stock and its junior subordinated debentures contain provisions that would suspend the payment of preferred stock dividends and interest on junior subordinated debentures if MetLife, Inc. fails to meet certain RBC ratio, net income and stockholders’ equity tests at specified times, except to the extent of the net proceeds from the issuance of certain securities during specified periods. If Series A preferred stock dividends or interest on junior subordinated debentures are not paid, certain provisions in those instruments (including under “dividend stopper” provisions) may restrict MetLife, Inc. from repurchasing its common or preferred stock or paying dividends on its common or preferred stock and interest on its junior subordinated debentures.

The junior subordinated debentures further provide that MetLife, Inc. may, at its option and provided that certain conditions are met, defer payment of interest without giving rise to an event of default for periods of up to 10 years. In that case, after five years MetLife, Inc. would be obligated to use commercially reasonable efforts to sell equity securities to raise proceeds to pay the interest. MetLife, Inc. would not be subject to limitations on the number of deferral periods that MetLife, Inc. could begin, so long as all accrued and unpaid interest is paid with respect to prior deferral periods. If MetLife, Inc. were to defer payments of interest, the “dividend stopper” provisions in the junior subordinated debentures would thus prevent MetLife, Inc. from repurchasing or paying dividends on its common stock or other capital stock (including the preferred stock) during the period of deferral, subject to exceptions.

MetLife, Inc. is a party to certain RCCs which limit its ability to eliminate these restrictions through the repayment, redemption or purchase of junior subordinated debentures by requiring MetLife, Inc., with some limitations, to receive cash proceeds during a specified period from the sale of specified replacement securities prior to any repayment, redemption or purchase. See Note 15 for a description of such covenants.

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc. 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, 2018	$	7,042	$	1,613	$	(4,905)	$	(2,028)	$	1,722
OCI before reclassifications	14,850		328		(43)		(88)		15,047
Deferred income tax benefit (expense)	(3,408)		34		21		14		(3,339)
AOCI before reclassifications, net of income tax	18,484		1,975		(4,927)		(2,102)		13,430
Amounts reclassified from AOCI	(265)		(268)		—		118		(415)
Deferred income tax benefit (expense)	61		(27)		—		(18)		16
Amounts reclassified from AOCI, net of income tax	(204)		(295)		—		100		(399)
Cumulative effects of changes in accounting principles	4		22		—		—		26
Deferred income tax benefit (expense), cumulative effects of changes in accounting principles	(1)		(4)		—		—		(5)
Cumulative effects of changes in accounting principles, net of income tax	3		18		—		—		21

Balance at December 31, 2019	18,283		1,698		(4,927)		(2,002)		13,052
OCI before reclassifications	5,775		730		1,002		95		7,602
Deferred income tax benefit (expense)	(1,349)		(257)		(36)		(22)		(1,664)
AOCI before reclassifications, net of income tax	22,709		2,171		(3,961)		(1,929)		18,990
Amounts reclassified from AOCI	(357)		(1,016)		—		86		(1,287)
Deferred income tax benefit (expense)	83		358		—		(20)		421
Amounts reclassified from AOCI, net of income tax	(274)		(658)		—		66		(866)





Sale of subsidiaries, net of income tax (2)	(218)		—		166		—		(52)
Balance at December 31, 2020	22,217		1,513		(3,795)		(1,863)		18,072
OCI before reclassifications	(7,829)		(113)		(1,567)		237		(9,272)
Deferred income tax benefit (expense)	1,918		18		(53)		(46)		1,837
AOCI before reclassifications, net of income tax	16,306		1,418		(5,415)		(1,672)		10,637
Amounts reclassified from AOCI	(125)		250		—		91		216
Deferred income tax benefit (expense)	29		(39)		—		(17)		(27)
Amounts reclassified from AOCI, net of income tax	(96)		211		—		74		189



Sale of subsidiaries, net of income tax (2)	(168)		—		261		—		93

Balance at December 31, 2021	$	16,042	$	1,629	$	(5,154)	$	(1,598)	$	10,919

__________________

(1)See Note 8 for information on offsets to investments related to policyholder liabilities, DAC, VOBA and DSI.

(2)See Note 3 for information on the Company’s business dispositions.

Information regarding amounts reclassified out of each component of AOCI was as follows:


	Years Ended December 31,
	2021		2020		2019
AOCI Components	Amounts Reclassified from AOCI						Consolidated Statements of Operations Locations
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	72	$	362	$	270	Net investment gains (losses)
Net unrealized investment gains (losses)	(16)		(24)		(30)		Net investment income
Net unrealized investment gains (losses)	69		19		25		Net derivative gains (losses)

Net unrealized investment gains (losses), before income tax	125		357		265
Income tax (expense) benefit	(29)		(83)		(61)
Net unrealized investment gains (losses), net of income tax	96		274		204
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate derivatives	56		36		23		Net investment income
Interest rate derivatives	84		121		4		Net investment gains (losses)

Interest rate derivatives	3		2		2		Other expenses

Foreign currency exchange rate derivatives	8		4		(4)		Net investment income
Foreign currency exchange rate derivatives	(403)		851		240		Net investment gains (losses)

Foreign currency exchange rate derivatives	2		2		2		Other expenses

Credit derivatives	—		—		1		Net investment income


Gains (losses) on cash flow hedges, before income tax	(250)		1,016		268
Income tax (expense) benefit	39		(358)		27
Gains (losses) on cash flow hedges, net of income tax	(211)		658		295



Defined benefit plans adjustment: (1)
Amortization of net actuarial gains (losses)	(120)		(105)		(145)
Amortization of prior service (costs) credit	29		19		27

Amortization of defined benefit plan items, before income tax	(91)		(86)		(118)
Income tax (expense) benefit	17		20		18
Amortization of defined benefit plan items, net of income tax	(74)		(66)		(100)
Total reclassifications, net of income tax	$	(189)	$	866	$	399

__________________

(1)These AOCI components are included in the computation of net periodic benefit costs. See Note 18.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Other Revenues and Other Expenses

12 Months Ended

Dec. 31, 2021

Other Income and Expenses [Abstract]

Other Revenues and Other Expenses Disclosure

17. Other Revenues and Other Expenses

Other Revenues

Information on other revenues, which primarily includes fees related to service contracts from customers, was as follows:


	Years Ended December 31,
	2021		2020		2019
	(In millions)
Vision fee for service arrangements (1)	$	546	$	—	$	—
Prepaid legal plans	432		395		347
Fee-based investment management	363		318		286
Recordkeeping and administrative services (2)	213		196		206
Administrative services-only contracts	231		218		210
Other revenue from service contracts from customers	289		227		240
Total revenues from service contracts from customers	2,074		1,354		1,289
Other	545		495		553
Total other revenues	$	2,619	$	1,849	$	1,842

__________________

(1)For information regarding the Company’s acquisition of Versant Health, see Note 3.

(2)Related to products and businesses no longer actively marketed by the Company.

Receivables related to revenues from service contracts from customers were $235 million and $132 million as of December 31, 2021 and 2020, respectively.

Other Expenses

Information on other expenses was as follows:


	Years Ended December 31,
	2021		2020		2019
	(In millions)
Employee related costs (1)	$	3,515	$	3,514	$	3,665
Third party staffing costs	1,423		1,335		1,755
General and administrative expenses	686		761		901
Pension, postretirement and postemployment benefit costs	147		165		233
Premium taxes, other taxes, and licenses & fees	629		764		674
Commissions and other variable expenses	5,463		5,596		6,001
Capitalization of DAC	(2,718)		(3,013)		(3,358)
Amortization of DAC and VOBA	2,555		3,160		2,896
Amortization of negative VOBA	(34)		(45)		(33)
Interest expense on debt	920		913		955
Total other expenses	$	12,586	$	13,150	$	13,689

__________________

(1)Includes ($144) million, ($147) million and ($219) million for the years ended December 31, 2021, 2020 and 2019, respectively, for the net change in cash surrender value of investments in certain life insurance policies, net of premiums paid.

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.

Expenses related to Debt See Notes 13, 14, and 15 for attribution of interest expense by debt issuance and other expenses related to debt transactions.

Restructuring Charges

In December 2019, the Company incurred the remaining restructuring charges related to its unit cost improvement program. During this program period, restructuring charges were included in other expenses and reported in Corporate & Other. Such restructuring charges were as follows:


	Years Ended December 31,
	2021		2020		2019
	Severance
	(In millions)
Balance at January 1,	$	6	$	57	$	23
Restructuring charges	—		—		108
Cash payments	(1)		(51)		(74)
Balance at December 31,	$	5	$	6	$	57
Total severance charges incurred since inception of initiative	$	244	$	244	$	244

In addition to the above severance charges, the Company recognized lease and asset impairment charges of $0, $0 and $43 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Employee Benefit Plans

18. Employee Benefit Plans

Pension and Other Postretirement Benefit Plans

Certain subsidiaries of MetLife, Inc. sponsor a U.S. qualified and various U.S. and non-U.S. nonqualified defined benefit pension plans covering employees who meet specified eligibility requirements. U.S. 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 final 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. In September 2018, the U.S. qualified and nonqualified defined benefit pension plans were amended, effective January 1, 2023, to provide benefits accruals for all active participants under the cash balance formula and to cease future accruals under the traditional formula. The U.S. nonqualified pension plans provide supplemental benefits in excess of limits applicable to a qualified plan. The non-U.S. pension plans generally provide benefits based upon either years of credited service and earnings preceding retirement or points earned on job grades and other factors in years of service.

These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for U.S. and non-U.S. retired employees. U.S. employees of these subsidiaries who were hired prior to 2003 (or, in certain cases, rehired during or after 2003) and meet age and service criteria while working for one of the subsidiaries 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. U.S. employees hired after 2003 are not eligible for any employer subsidy for postretirement medical benefits. In September 2018, the U.S. postretirement medical and life insurance benefit plans were amended, effective January 1, 2023, to discontinue the accrual of the employer subsidy credits for eligible employees.

The benefit obligations, funded status and net periodic benefit costs related to these pension and other postretirement benefits were comprised of the following:


	December 31, 2021												December 31, 2020
	Pension Benefits						Other Postretirement Benefits						Pension Benefits						Other Postretirement Benefits
	U.S. Plans		Non- U.S. Plans		Total		U.S. Plans		Non- U.S. Plans		Total		U.S. Plans		Non- U.S. Plans		Total		U.S. Plans		Non- U.S. Plans		Total
	(In millions)
Benefit obligations	$	11,086	$	1,096	$	12,182	$	1,099	$	39	$	1,138	$	11,700	$	1,173	$	12,873	$	1,208	$	44	$	1,252
Estimated fair value of plan assets	10,392		579		10,971		1,417		26		1,443		10,692		564		11,256		1,465		27		1,492
Over (under) funded status	$	(694)	$	(517)	$	(1,211)	$	318	$	(13)	$	305	$	(1,008)	$	(609)	$	(1,617)	$	257	$	(17)	$	240
Net periodic benefit costs	$	97	$	97	$	194	$	(55)	$	2	$	(53)	$	143	$	103	$	246	$	(94)	$	2	$	(92)

Obligations and Funded Status


	December 31,
	2021				2020
	Pension Benefits (1)		Other Postretirement Benefits		Pension Benefits (1)		Other Postretirement Benefits
	(In millions)
Change in benefit obligations:
Benefit obligations at January 1,	$	12,873	$	1,252	$	11,950	$	1,289
Service costs	215		4		226		5
Interest costs	342		37		363		42
Plan participants’ contributions	—		32		—		32
Plan amendments	1		—		—		—
Net actuarial (gains) losses (2)	(363)		(96)		928		(15)
Acquisition, divestitures, settlements and curtailments	(111)		8		(55)		—
Benefits paid	(665)		(99)		(589)		(101)
Effect of foreign currency translation	(110)		—		50		—
Benefit obligations at December 31,	12,182		1,138		12,873		1,252
Change in plan assets:
Estimated fair value of plan assets at January 1,	11,256		1,492		10,230		1,468
Actual return on plan assets	310		14		1,491		89
Acquisition, divestitures and settlements	(35)		(1)		(55)		—
Plan participants’ contributions	—		32		—		32
Employer contributions	163		5		155		4
Benefits paid	(665)		(99)		(589)		(101)
Effect of foreign currency translation	(58)		—		24		—
Estimated fair value of plan assets at December 31,	10,971		1,443		11,256		1,492
Over (under) funded status at December 31,	$	(1,211)	$	305	$	(1,617)	$	240
Amounts recognized on the consolidated balance sheets:
Other assets	$	640	$	788	$	390	$	756
Other liabilities	(1,851)		(483)		(2,007)		(516)
Net amount recognized	$	(1,211)	$	305	$	(1,617)	$	240
AOCI:
Net actuarial (gains) losses	$	2,416	$	(332)	$	2,780	$	(327)
Prior service costs (credit)	(55)		—		(86)		1
AOCI, before income tax	$	2,361	$	(332)	$	2,694	$	(326)
Accumulated benefit obligation	$	11,934	N/A		$	12,510	N/A

__________________

(1)Includes nonqualified unfunded plans, for which the aggregate PBO was $1.3 billion and $1.4 billion at December 31, 2021 and 2020, respectively.

(2)For the year ended December 31, 2021, significant sources of actuarial (gains) losses for pension and other postretirement benefits include the impact of changes to the financial assumptions of ($389) million and ($34) million, respectively, demographic assumptions of $0 and ($4) million, respectively, and plan experience of $26 million and ($58) million, respectively. For the year ended December 31, 2020, significant sources of actuarial (gains) losses for pension and other postretirement benefits include the impact of changes to the financial assumptions of $851 million and $103 million, respectively, demographic assumptions of $31 million and $4 million, respectively, and plan experience of $46 million and ($122) million, respectively.

Information for pension plans and other postretirement benefit plans with PBOs and/or accumulated benefit obligations (“ABO”) or APBO in excess of plan assets was as follows at:


	December 31,
	2021		2020		2021		2020		2021		2020
	PBO Exceeds Estimated Fair Value of Plan Assets				ABO Exceeds Estimated Fair Value of Plan Assets				APBO Exceeds Estimated Fair Value of Plan Assets
	(In millions)
Projected benefit obligations	$	1,840	$	2,469	$	1,831	$	2,441	N/A		N/A
Accumulated benefit obligations	$	1,740	$	2,332	$	1,740	$	2,312	N/A		N/A
Accumulated postretirement benefit obligations	N/A		N/A		N/A		N/A		$	813	$	868
Estimated fair value of plan assets	$	9	$	564	$	—	$	539	$	331	$	355

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,
	2021				2020				2019
	Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits
	(In millions)
Net periodic benefit costs:
Service costs	$	215	$	4	$	226	$	5	$	214	$	5
Interest costs	342		37		363		42		425		53
Settlement and curtailment (gains) losses	(7)		1		10		—		—		2
Expected return on plan assets	(506)		(56)		(528)		(62)		(489)		(67)
Amortization of net actuarial (gains) losses	162		(39)		189		(74)		201		(48)
Amortization of prior service costs (credit)	(12)		—		(14)		(3)		(15)		(12)
Total net periodic benefit costs (credit)	194		(53)		246		(92)		336		(67)
Other changes in plan assets and benefit obligations recognized in OCI:
Net actuarial (gains) losses	(166)		(54)		(35)		(42)		231		(138)
Prior service costs (credit)	1		(1)		—		—		3		—
Amortization of net actuarial (gains) losses	(162)		39		(189)		74		(201)		48
Amortization of prior service (costs) credit	12		—		14		3		15		12
Settlement and curtailment (gains) losses	(10)		10		(10)		—		—		—
Exchange rate changes	(8)		—		5		—		—		—

Total recognized in OCI	(333)		(6)		(215)		35		48		(78)
Total recognized in net periodic benefit costs and OCI	$	(139)	$	(59)	$	31	$	(57)	$	384	$	(145)

Assumptions

Assumptions used in determining benefit obligations for the U.S. plans were as follows:


	Pension Benefits			Other Postretirement Benefits
December 31, 2021
Weighted average discount rate	2.95%			3.05%
Weighted average interest crediting rate	3.18%			N/A
Rate of compensation increase	2.50%	-	8.00%	N/A
December 31, 2020
Weighted average discount rate	2.65%			2.85%
Weighted average interest crediting rate	3.46%			N/A
Rate of compensation increase	2.50%	-	8.00%	N/A

Assumptions used in determining net periodic benefit costs for the U.S. plans were as follows:


	Pension Benefits			Other Postretirement Benefits
Year Ended December 31, 2021
Weighted average discount rate	3.01%			3.14%
Weighted average interest crediting rate	3.24%			N/A
Weighted average expected rate of return on plan assets	5.00%			3.87%
Rate of compensation increase	2.5%	-	8.00%	N/A
Year Ended December 31, 2020
Weighted average discount rate	3.30%			3.45%
Weighted average interest crediting rate	3.38%			N/A
Weighted average expected rate of return on plan assets	5.50%			4.31%
Rate of compensation increase	2.25%	-	8.50%	N/A
Year Ended December 31, 2019
Weighted average discount rate	4.35%			4.35%
Weighted average interest crediting rate	4.01%			N/A
Weighted average expected rate of return on plan assets	5.75%			5.04%
Rate of compensation increase	2.25%	-	8.50%	N/A

The weighted average discount rate for the U.S. plans 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 measurement 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 for the U.S. plans is based on anticipated performance of the various asset sectors in which the plans invest, weighted by target allocation percentages. Anticipated future performance is based on long-term historical returns of the plan assets by sector, adjusted for the 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 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 2022 is currently anticipated to be 5.00% for U.S. pension benefits and 3.86% for U.S. other postretirement benefits.

The weighted average interest crediting rate is determined annually based on the plan selected rate, long-term financial forecasts of that rate and the demographics of the plan participants.

The assumed healthcare costs trend rates used in measuring the APBO and net periodic benefit costs were as follows:


	December 31,
	2021				2020
	Before Age 65		Age 65 and older		Before Age 65		Age 65 and older
Following year	5.1	%	3.3	%	5.8	%	5.6	%
Ultimate rate to which cost increase is assumed to decline	3.7	%	3.8	%	3.8	%	3.8	%
Year in which the ultimate trend rate is reached	2074		2074		2074		2074

Plan Assets

Certain U.S. subsidiaries provide 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 these U.S. subsidiaries’ qualified pension plans are held in an insurance group annuity contract, and the vast majority of the assets of the postretirement medical plan are held in a trust which largely utilizes insurance contracts to hold the assets. All of these contracts are issued by the Company’s insurance affiliates, 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 securities AFS, equity securities, derivatives, real estate and private equity investments. The assets backing the retiree life coverage also utilize insurance contracts issued by the Company’s insurance affiliate and are held in a general account Life Insurance Funding Agreement.

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, 2021 for the Invested Plans:


	December 31,
	2021								2020
	U.S. Pension Benefits				U.S. Other Postretirement Benefits (1)				U.S. Pension Benefits		U.S. Other Postretirement Benefits (1)
	Target		Actual Allocation		Target		Actual Allocation		Actual Allocation		Actual Allocation
Asset Class
Fixed maturity securities AFS	85	%	84	%	95	%	95	%	85	%	95	%
Equity securities (2)	7	%	7	%	5	%	5	%	8	%	5	%
Alternative securities (3)	8	%	9	%	—	%	—	%	7	%	—	%
Total assets			100	%			100	%	100	%	100	%

__________________

(1)U.S. other postretirement benefits do not reflect postretirement life’s plan assets invested in fixed maturity securities AFS.

(2)Equity securities percentage includes derivative assets.

(3)Alternative securities primarily include 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, 2021
	Pension Benefits								Other Postretirement Benefits
	Fair Value Hierarchy								Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities AFS:
Corporate	$	—	$	4,305	$	—	$	4,305	$	—	$	222	$	—	$	222
U.S. government bonds	1,824		80		—		1,904		69		—		—		69
Foreign bonds	—		1,115		1		1,116		—		51		—		51
Federal agencies	—		83		—		83		—		10		—		10
Municipals	—		248		—		248		—		8		—		8
Short-term investments	142		484		—		626		486		482		—		968
Other (1)	155		627		1		783		14		45		—		59
Total fixed maturity securities AFS	2,121		6,942		2		9,065		569		818		—		1,387
Equity securities	601		283		11		895		55		—		—		55
Other investments	42		1		954		997		1		—		—		1
Derivative assets	14		—		—		14		—		—		—		—
Total assets	$	2,778	$	7,226	$	967	$	10,971	$	625	$	818	$	—	$	1,443


	December 31, 2020
	Pension Benefits								Other Postretirement Benefits
	Fair Value Hierarchy								Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities AFS:
Corporate	$	—	$	4,704	$	—	$	4,704	$	—	$	244	$	—	$	244
U.S. government bonds	1,820		48		—		1,868		51		—		—		51
Foreign bonds	—		990		—		990		—		69		—		69
Federal agencies	—		114		—		114		—		2		—		2
Municipals	—		310		—		310		—		8		—		8
Short-term investments	—		265		—		265		471		503		—		974
Other (1)	399		757		—		1,156		44		44		—		88
Total fixed maturity securities AFS	2,219		7,188		—		9,407		566		870		—		1,436
Equity securities	826		275		—		1,101		56		—		—		56
Other investments	26		—		708		734		—		—		—		—
Derivative assets	14		—		—		14		—		—		—		—
Total assets	$	3,085	$	7,463	$	708	$	11,256	$	622	$	870	$	—	$	1,492

__________________

(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)
	Fixed Maturity Securities AFS:
	Foreign Bonds		Other (1)		Equity Securities		Other Investments
	(In millions)
Balance, January 1, 2020	$	—	$	3	$	—	$	686
Realized gains (losses)	—		—		—		—
Unrealized gains (losses)	—		—		—		(55)
Purchases, sales, issuances and settlements, net	—		(3)		—		77
Transfers into and/or out of Level 3	—		—		—		—
Balance, December 31, 2020	$	—	$	—	$	—	$	708
Realized gains (losses)	—		—		—		—
Unrealized gains (losses)	—		—		—		63
Purchases, sales, issuances and settlements, net	1		1		11		183
Transfers into and/or out of Level 3	—		—		—		—
Balance, December 31, 2021	$	1	$	1	$	11	$	954

__________________

(1)Other includes ABS and collateralized mortgage obligations.

Expected Future Contributions and Benefit Payments

It is the subsidiaries’ practice to make contributions to the U.S. qualified pension plan to comply with minimum funding requirements of ERISA. In accordance with such practice, no contributions are expected to be required for 2022. The subsidiaries do not expect to make any discretionary contributions to the qualified pension plan in 2022. For information on employer contributions, see “— Obligations and Funded Status.”

Benefit payments due under the U.S. nonqualified pension plans are primarily funded from the subsidiaries’ general assets as they become due under the provisions of the plans, and therefore benefit payments equal employer contributions. The U.S. subsidiaries expect to make contributions of $85 million to fund the benefit payments in 2022.

Postretirement benefits are either: (i) not vested under law; (ii) a non-funded obligation of the subsidiaries; or (iii) both. Current regulations do not require funding for these benefits. The subsidiaries use their 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 subsidiaries may be reimbursed from plan assets for postretirement medical claims paid from their general assets. The U.S. subsidiaries expect to make contributions of $30 million towards benefit obligations in 2022 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)
2022	$	704	$	72
2023	$	712	$	71
2024	$	728	$	69
2025	$	733	$	67
2026	$	751	$	65
2027-2031	$	3,779	$	304

Defined Contribution Plans

Certain subsidiaries sponsor defined contribution plans under which a portion of employee contributions are matched. These subsidiaries contributed $88 million, $95 million and $96 million for the years ended December 31, 2021, 2020 and 2019, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section S99
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (o)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (p)
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+ Details

Income Tax

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Tax

19. Income Tax

The provision for income tax was as follows:


	Years Ended December 31,
	2021		2020		2019
	(In millions)
Current:
U.S. federal	$	62	$	271	$	(189)
U.S. state and local	38		27		4
Non-U.S.	795		882		850
Subtotal	895		1,180		665
Deferred:
U.S. federal	837		(115)		(235)
U.S. state and local	(2)		1		—
Non-U.S.	(179)		443		456
Subtotal	656		329		221
Provision for income tax expense (benefit)	$	1,551	$	1,509	$	886

The Company’s income (loss) before income tax expense (benefit) was as follows:


	Years Ended December 31,
	2021		2020		2019
	(In millions)
Income (loss):
U.S.	$	4,841	$	2,970	$	2,094
Non-U.S.	3,285		3,957		4,701
Total	$	8,126	$	6,927	$	6,795

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,
	2021		2020		2019
	(In millions)
Tax provision at U.S. statutory rate	$	1,706	$	1,455	$	1,427
Tax effect of:
Dividend received deduction	(40)		(34)		(37)
Tax-exempt income	(36)		(45)		(64)
Prior year tax (1), (2)	(127)		(27)		(179)
Low income housing tax credits	(178)		(202)		(254)
Other tax credits	(46)		(45)		(52)
Foreign tax rate differential (3), (4), (5)	267		414		395
Change in valuation allowance	1		(5)		(22)
U.S. Tax Reform impact (6)	—		—		(326)
Other, net (7)	4		(2)		(2)
Provision for income tax expense (benefit)	$	1,551	$	1,509	$	886

__________________

(1)As discussed further below, prior year tax primarily includes a non-cash benefit related to uncertain tax positions of $117 million and $158 million for the years ended December 31, 2021 and 2019, respectively.

(2)For the year ended December 31, 2020, prior year tax primarily includes a $40 million tax benefit related to an Internal Revenue Service (“IRS”) audit matter.

(3)For the year ended December 31, 2021, foreign tax rate differential includes tax charges of $50 million related to the pending disposition of MetLife Poland and disposition of MetLife Greece, $41 million related to the sale of MetLife Seguros and $30 million related to the U.S. tax on Global Intangible Low-Taxed Income (“GILTI”) of which $42 million is a current year charge offset by a $12 million tax benefit revising the 2020 estimate. See Note 3 for information on the Company’s business dispositions.

(4)For the year ended December 31, 2020, foreign tax rate differential includes tax charges of $60 million and $24 million related to the sales of MetLife Seguros de Retiro and MetLife Russia, respectively, and $43 million related to the U.S. tax on GILTI. See Note 3 for information on the Company’s business dispositions.

(5)For the year ended December 31, 2019, foreign tax rate differential includes tax charges of $61 million from the definitive agreement to sell MetLife Hong Kong and $12 million related to GILTI, of which $35 million is a current year charge offset by a $23 million tax benefit revising the 2018 estimate. See Note 3 for information on the disposition of MetLife Hong Kong.

(6)For the year ended December 31, 2019, U.S. Tax Reform impact includes a $317 million tax benefit related to the deemed repatriation transition tax and $9 million related to the effect of sequestration on the alternative minimum tax credit.

(7)For the year ended December 31, 2021, other primarily includes tax charges of $54 million related to the sale of MetLife P&C offset by a tax benefit of $53 million related to a non-cash transfer of assets from a wholly-owned U.K. subsidiary to its U.S. parent.

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,
	2021		2020
	(In millions)
Deferred income tax assets:
Policyholder liabilities and receivables	$	3,787	$	3,890
Net operating loss carryforwards (1)	235		301
Employee benefits	583		673
Capital loss carryforwards	9		9
Tax credit carryforwards (2)	825		922
Litigation-related and government mandated	95		126
Total gross deferred income tax assets	5,534		5,921
Less: Valuation allowance (1)	299		309
Total net deferred income tax assets	5,235		5,612
Deferred income tax liabilities:
Investments, including derivatives	4,167		4,421
Intangibles	1,188		1,387
Net unrealized investment gains	5,551		7,422
DAC	3,471		3,162
Other	362		134
Total deferred income tax liabilities	14,739		16,526
Net deferred income tax asset (liability) (3)	$	(9,504)	$	(10,914)

__________________

(1)The Company has recorded a deferred tax asset of $235 million related to U.S. state and non-U.S. net operating loss carryforwards and an offsetting valuation allowance for the year ended December 31, 2021. Certain net operating loss carryforwards will expire between 2022 and 2041, whereas others have an unlimited carryforward period.

(2)Tax credit carryforwards for the year ended December 31, 2021 primarily reflect general business credits expiring between 2038 and 2041 and are reduced by $44 million related to unrecognized tax benefits.

(3)On the consolidated balance sheet for the years ended December 31, 2021 and 2020, $9,693 million and $11,008 million, respectively, is reported in Deferred income tax liability for jurisdictions in a net deferred income tax liability position and $189 million and $94 million, respectively, of a deferred income tax asset is reported in Other assets for jurisdictions in a net deferred income tax asset position.

The Company has not provided for U.S. deferred taxes on the remaining excess of book bases over tax bases of certain investments in non-U.S. subsidiaries that are essentially permanent in duration. The amount of deferred tax liability related to the Company’s remaining basis difference in these non-U.S. subsidiaries was $260 million at December 31, 2021.

The Company files income tax returns with the U.S. federal government and various U.S. state and local jurisdictions, as well as non-U.S. jurisdictions. The Company is under continuous examination by the 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 2014. In material non-U.S. jurisdictions, the Company is no longer subject to income tax examinations for years prior to 2015.

In 2021, the Company filed amended Federal income tax returns with the IRS for MetLife, Inc. and subsidiaries for tax years 2010 through 2013. In 2021, the IRS reviewed and acknowledged acceptance of the 2010 through 2013 amended

Federal income tax returns and closed the years to further audit. Accordingly, in 2021, the Company recorded a non-cash benefit to net income of $53 million in provision for income tax expense (benefit). In addition, in 2021, the IRS concluded its Federal income tax audit of American Life for tax years 2010 through 2013. Accordingly, in 2021, the Company recorded a non-cash benefit to net income of $42 million, net of tax, comprised of a $34 million tax benefit recorded in provision for income tax expense (benefit) and a $10 million interest benefit ($8 million, net of tax) included in other expenses.

The Company filed refund claims in 2017 with the IRS for 2000 through 2002 to recover tax and interest predominantly related to the disallowance of certain foreign tax credits for which the Company received a statutory notice of deficiency in 2015 and paid the tax thereon. The disallowed foreign tax credits relate to certain non-U.S. investments held by MLIC in support of its life insurance business through a U.K. investment subsidiary that was structured as a joint venture until early 2009. In 2020, the Company received refunds from these claims filed in 2017, and as a result, the Company recorded a $28 million interest benefit ($22 million, net of tax) included in other expenses. For tax years 2000 through 2002 and tax years 2007 through 2009, the Company entered into binding agreements with the IRS in 2019 under which all remaining issues regarding the foreign tax credit matter noted above were resolved. Accordingly, in 2019, the Company recorded a non-cash benefit to net income of $226 million, net of tax, comprised of a $158 million tax benefit recorded in provision for income tax expense (benefit) and a $86 million interest benefit ($68 million, net of tax) included in other expenses.

The Company’s overall liability for unrecognized tax benefits may increase or decrease in the next 12 months. For example, U.S. federal tax legislation and regulation 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,
	2021		2020		2019
	(In millions)
Balance at January 1,	$	272	$	256	$	1,111
Additions for tax positions of prior years	19		16		6
Reductions for tax positions of prior years (1)	(112)		(1)		(493)
Additions for tax positions of current year	5		12		13
Reductions for tax positions of current year	(18)		—		—
Settlements with tax authorities (2)	(3)		(1)		(381)
Lapses of statute of limitations	—		(10)		—
Balance at December 31,	$	163	$	272	$	256
Unrecognized tax benefits that, if recognized, would impact the effective rate	$	103	$	203	$	194

__________________

(1) The decreases in 2021 and 2019 are primarily related to non-cash benefits from tax audit settlements.

(2) The decrease in 2019 is primarily related to tax audit settlements, of which $377 million was reclassified to the current income tax payable account.

The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses.

Interest was as follows:


	Years Ended December 31,
	2021		2020		2019
	(In millions)
Interest expense (benefit) recognized on the consolidated statements of operations (1)	$	(36)	$	12	$	(179)

			December 31,
			2021		2020
			(In millions)
Interest included in other liabilities on the consolidated balance sheets			$	15	$	51

__________________

(1) The decreases in 2021 and 2019 are primarily related to the tax audit settlements, of which $10 million and $60 million, respectively, were recorded in other expenses, and $26 million and $119 million, respectively, were reclassified to the current income tax payable account.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Earnings Per Common Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Common Share

20. Earnings Per Common Share

The following table presents the weighted average shares, basic earnings per common share and diluted earnings per common share:


	Years Ended December 31,
	2021		2020		2019
	(In millions, except per share data)
Weighted Average Shares:
Weighted average common stock outstanding - basic	862.7		907.8		937.6


Incremental common shares from assumed exercise or issuance of stock-based awards	6.7		5.4		6.8
Weighted average common stock outstanding - diluted	869.4		913.2		944.4








Net Income (Loss):
Net income (loss)	$	6,575	$	5,418	$	5,909
Less: Net income (loss) attributable to noncontrolling interests	21		11		10
Less: Preferred stock dividends	195		202		178
Preferred stock redemption premium	6		14		—
Net income (loss) available to MetLife, Inc.’s common shareholders	$	6,353	$	5,191	$	5,721
Basic	$	7.36	$	5.72	$	6.10
Diluted	$	7.31	$	5.68	$	6.06

Contingencies, Commitments and Guarantees

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies, Commitments and Guarantees

21. Contingencies, Commitments and Guarantees

Contingencies

Litigation

The Company is a defendant in a large number of litigation matters. Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed below and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, mortgage lending bank, employer, investor, investment advisor, broker-dealer, and taxpayer.

The Company also 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 U.S. Securities and Exchange Commission; federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority, as well as from local and national regulators and government authorities in jurisdictions outside the United States where the Company conducts business. The issues involved in information requests and regulatory matters vary widely, but can include inquiries or investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. The Company cooperates in these inquiries.

It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. 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. In certain circumstances where liabilities have been established there may be coverage under one or more corporate insurance policies, pursuant to which there may be an insurance recovery. Insurance recoveries are recognized as gains when any contingencies relating to the insurance claim have been resolved, which is the earlier of when the gains are realized or realizable. 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, 2021. 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. 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.

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 matters where a loss is believed to be reasonably possible, but not probable, the Company has not made an accrual. As of December 31, 2021, the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $125 million.

Matters as to Which an Estimate Cannot Be Made

For other matters disclosed below, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Asbestos-Related Claims

MLIC is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege that the plaintiff or plaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. MLIC has never engaged in the business of manufacturing or selling asbestos-containing products, nor has MLIC issued liability or workers’ compensation insurance to companies in the business of manufacturing or selling asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication and other activities of one or more of MLIC’s employees during the period from the 1920s through approximately the 1950s and allege that MLIC learned or should have learned of certain health risks posed by asbestos and, among other things, improperly publicized or failed to disclose those health risks. MLIC believes that it should not have legal liability in these cases. The outcome of most asbestos litigation matters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the nature of the alleged injury and factors unrelated to the ultimate legal merit of the claims asserted against MLIC.

MLIC’s defenses include that: (i) MLIC owed no duty to the plaintiffs; (ii) plaintiffs did not rely on any actions of MLIC; (iii) MLIC’s conduct was not the cause of the plaintiffs’ injuries; and (iv) plaintiffs’ exposure occurred after the dangers of asbestos were known. During the course of the litigation, certain trial courts have granted motions dismissing claims against MLIC, while other trial courts have denied MLIC’s motions. There can be no assurance that MLIC will receive favorable decisions on motions in the future. While most cases brought to date have settled, MLIC intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials.

The approximate total number of asbestos personal injury claims pending against MLIC 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,
	2021		2020		2019
	(In millions, except number of claims)
Asbestos personal injury claims at year end	58,785		60,618		61,134
Number of new claims during the year	2,824		2,496		3,187
Settlement payments during the year (1)	$	53.0	$	52.9	$	49.4

__________________

(1)Settlement payments represent payments made by MLIC during the year in connection with settlements made in that year and in prior years. Amounts do not include MLIC’s attorneys’ fees and expenses.

The number of asbestos cases that may be brought, the aggregate amount of any liability that MLIC may incur, and the total amount paid in settlements in any given year are uncertain and may vary significantly from year to year.

The ability of MLIC to estimate its ultimate asbestos exposure is subject to considerable uncertainty, and the conditions impacting its liability can be dynamic and subject to change. The availability of reliable data is limited and it is difficult to predict the numerous variables that can affect liability estimates, including the number of future claims, the cost to resolve claims, the disease mix and severity of disease in pending and future claims, the willingness of courts to allow plaintiffs to pursue claims against MLIC when exposure to asbestos took place after the dangers of asbestos exposure were well known, and the impact of any possible future adverse verdicts and their amounts.

The ability to make estimates regarding ultimate asbestos exposure declines significantly as the estimates relate to years further in the future. In the Company’s judgment, there is a future point after which losses cease to be probable and reasonably estimable. It is reasonably possible that the Company’s total exposure to asbestos claims may be materially greater than the asbestos liability currently accrued and that future charges to income may be necessary, but management does not believe any such charges are likely to have a material effect on the Company’s financial position.

The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for asbestos-related claims. MLIC’s recorded asbestos liability covers pending claims, claims not yet asserted, and legal defense costs and is based on estimates and includes significant assumptions underlying its analysis.

MLIC reevaluates on a quarterly and annual basis its exposure from asbestos litigation, including studying its claims experience, reviewing external literature regarding asbestos claims experience in the United States, assessing relevant trends impacting asbestos liability and considering numerous variables that can affect its asbestos liability exposure on an overall or per claim basis. Based upon its regular reevaluation of its exposure from asbestos litigation, MLIC has updated its recorded liability for asbestos-related claims to $372 million at December 31, 2021. The recorded liability was $425 million at December 31, 2020.

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 (“FLSA”), the New York Labor Law, and the Connecticut Minimum Wage Act. The suit alleges that MLIC 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. Plaintiffs seek unspecified compensatory and punitive damages, as well as other relief. The court denied the plaintiffs’ motion to certify the class and the United States Circuit Court for the Second Circuit denied plaintiffs leave to appeal this ruling. The court granted MLIC’s motion for summary judgment as to the lead plaintiff’s FLSA claims and MLIC’s motion to de-certify the class as a collective action. Plaintiffs’ motion for interlocutory review of the de-certification ruling is still pending. MLIC intends to defend this action vigorously.

Total Asset Recovery Services, LLC. v. MetLife, Inc., et al. (Supreme Court of the State of New York, County of New York, filed December 27, 2017)

Total Asset Recovery Services (the “Relator”) brought an action under the qui tam provision of the New York False Claims Act (the “Act”) on behalf of itself and the State of New York. The Relator originally filed this action under seal in 2010, and the complaint was unsealed on December 19, 2017. The Relator alleges that MetLife, Inc., MLIC, and several other insurance companies violated the Act by filing false unclaimed property reports with the State of New York from 1986 to 2017, to avoid having to escheat the proceeds of more than 25,000 life insurance policies, including policies for which the defendants escheated funds as part of their demutualizations in the late 1990s. The Relator seeks treble damages and other relief. The Appellate Division of the New York State Supreme Court, First Department, reversed the court’s order granting MetLife, Inc. and MLIC’s motion to dismiss and remanded the case to the trial court where the Relator has filed an amended complaint. The Company intends to defend the action vigorously.

Matters Related to Group Annuity Benefits and Assumed Variable Annuity Guarantee Reserves

In 2018, the Company announced that it identified two material weaknesses in its internal control over financial reporting related to the practices and procedures for estimating reserves for certain group annuity benefits and the calculation of reserves associated with certain variable annuity guarantees assumed from the former operating joint venture in Japan. Several regulators have made inquiries into these issues and it is possible that other jurisdictions may pursue similar investigations or inquiries. The Company is exposed to lawsuits, and could be exposed to additional legal actions relating to these issues. 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.

Parchmann v. MetLife, Inc., et. al. (E.D.N.Y., filed February 5, 2018)

Plaintiff filed this putative class action seeking to represent a class of persons who purchased MetLife, Inc. common stock from February 27, 2013 through January 29, 2018. Plaintiff alleges that MetLife, Inc., its former Chief Executive Officer and Chairman of the Board, and its former Chief Financial Officer violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder by issuing materially false and/or misleading financial statements. Plaintiff alleges that MetLife’s practices and procedures for estimating reserves for certain group annuity benefits were inadequate, and that MetLife had inadequate internal control over financial reporting. Plaintiff seeks unspecified compensatory damages and other relief. On January 11, 2021, the court granted MetLife’s motion to dismiss and dismissed the complaint in its entirety. The United States Court of Appeals for the Second Circuit affirmed the dismissal.

Derivative Demands

The MetLife, Inc. Board of Directors received six letters, dated March 28, 2018, May 11, 2018, July 16, 2018, December 20, 2018, February 5, 2019, and April 7, 2020, written on behalf of individual stockholders, demanding that MetLife, Inc. take action against current and former directors and officers for alleged breaches of fiduciary duty and/or investigate, remediate, and recover damages allegedly suffered by the Company as a result of (i) the Company’s allegedly inadequate practices and procedures for estimating reserves for certain group annuity benefits, (ii) the Company’s allegedly inadequate internal controls over financial reporting and corporate governance practices and procedures, and (iii) the alleged dissemination of false or misleading information related to these issues. The MetLife, Inc. Board of Directors appointed a special committee to investigate the allegations set forth in these six letters.

Commitments

Mortgage Loan Commitments

The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $4.6 billion and $3.3 billion at December 31, 2021 and 2020, 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 $9.1 billion and $8.5 billion at December 31, 2021 and 2020, 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 million to $329 million, with a cumulative maximum of $640 million, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments.

In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.

The Company also has minimum fund yield requirements on certain pension funds. Since these guarantees are not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future.

The Company’s recorded liabilities were $20 million at both December 31, 2021 and 2020 for indemnities, guarantees and commitments.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2021
Subsequent Events [Abstract]
Subsequent Events [Text Block]	22. Subsequent Events Disposition of MetLife Greece See Note 3 for information on the disposition of MetLife, Inc.’s wholly-owned subsidiaries in Greece.

Consolidated Summary of Investments - Other Than Investments in Related Parties

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract]

Consolidated Summary of Investments - Other Than Investments in Related Parties

MetLife, Inc.

Schedule I

Consolidated Summary of Investments —

Other Than Investments in Related Parties

December 31, 2021

(In millions)


Types of Investments	Cost or Amortized Cost (1)		Estimated Fair Value		Amount at Which Shown on Balance Sheet
Fixed maturity securities AFS:
Bonds:
Foreign government	$	56,848	$	61,609	$	61,609
U.S. government and agency	41,068		46,599		46,599
Public utilities	11,735		13,481		13,481
Municipals	11,761		14,212		14,212
All other corporate bonds	129,145		142,133		142,133
Total bonds	250,557		278,034		278,034
Mortgage-backed and asset-backed securities	59,389		61,180		61,180
Redeemable preferred stock	938		1,060		1,060
Total fixed maturity securities AFS	310,884		340,274		340,274
Unit-linked and FVO Securities	9,886		12,142		12,142
Equity securities:
Common stock:
Industrial, miscellaneous and all other	335		545		545
Banks, trust and insurance companies	446		530		530
Public utilities	3		4		4
Non-redeemable preferred stock	189		190		190
Total equity securities	973		1,269		1,269
Mortgage loans	79,987				79,353



Policy loans	9,111				9,111
Real estate and real estate joint ventures	12,035				12,035
Real estate acquired in satisfaction of debt	181				181
Other limited partnership interests	14,625				14,625
Short-term investments	7,216				7,176
Other invested assets	18,655				18,655
Total investments	$	463,553			$	494,821

__________________

(1)Unit-linked and FVO Securities are primarily equity securities (including mutual funds) and fixed maturity securities. Amortized cost for fixed maturity securities AFS, Unit-linked and FVO Securities, mortgage loans, policy loans and short-term investments represents original cost reduced by repayments and adjusted for amortization of premium or accretion of discount; for equity securities, cost represents original cost; 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.

Condensed Financial Information (Parent Company)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information (Parent Company)

MetLife, Inc.

Schedule II

Condensed Financial Information

(Parent Company Only)

December 31, 2021 and 2020

(In millions, except share and per share data)


	2021		2020
Condensed Balance Sheets
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $2,742 and $3,400, respectively)	$	2,745	$	3,443


Short-term investments, principally at estimated fair value	—		156
Other invested assets, at estimated fair value	314		187
Total investments	3,059		3,786
Cash and cash equivalents	1,961		441
Accrued investment income	4		11
Investment in subsidiaries	80,165		88,684
Loans to subsidiaries	35		—

Other assets	798		966
Total assets	$	86,022	$	93,888
Liabilities and Stockholders’ Equity
Liabilities
Payables for collateral under derivatives transactions	$	153	$	65
Long-term debt — unaffiliated	12,814		13,463
Long-term debt — affiliated	1,884		2,073
Junior subordinated debt securities	2,463		2,461
Other liabilities	1,226		1,268
Total liabilities	18,540		19,330
Stockholders’ Equity
Preferred stock, par value $0.01 per share; $3,905 and $4,405, respectively, aggregate liquidation preference	—		—
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,186,540,473 and 1,181,614,288 shares issued, respectively; 825,540,267 and 892,910,600 shares outstanding, respectively	12		12
Additional paid-in capital	33,511		33,812
Retained earnings	41,197		36,491
Treasury stock, at cost; 361,000,206 and 288,703,688 shares, respectively	(18,157)		(13,829)
Accumulated other comprehensive income (loss)	10,919		18,072
Total stockholders’ equity	67,482		74,558
Total liabilities and stockholders’ equity	$	86,022	$	93,888

See accompanying notes to the condensed financial information.

MetLife, Inc.

Schedule II

Condensed Financial Information — (continued)

(Parent Company Only)

For the Years Ended December 31, 2021, 2020 and 2019

(In millions)


	2021		2020		2019
Condensed Statements of Operations
Revenues
Net investment income	$	25	$	50	$	77
Other revenues	19		29		27
Net investment gains (losses)	1,655		(154)		(40)
Net derivative gains (losses)	116		(61)		(45)
Total revenues	1,815		(136)		19
Expenses
Interest expense	847		833		850


Other expenses	207		154		153
Total expenses	1,054		987		1,003
Income (loss) before provision for income tax and equity in earnings of subsidiaries	761		(1,123)		(984)
Provision for income tax (expense) benefit	(202)		267		582
Equity in earnings of subsidiaries	5,995		6,263		6,301
Net income (loss)	6,554		5,407		5,899
Less: Preferred stock dividends	195		202		178
Preferred stock redemption premium	$	6	$	14	$	—
Net income (loss) available to common shareholders	$	6,353	$	5,191	$	5,721
Comprehensive income (loss)	$	(599)	$	10,427	$	17,208

See accompanying notes to the condensed financial information.

MetLife, Inc.

Schedule II

Condensed Financial Information — (continued)

(Parent Company Only)

For the Years Ended December 31, 2021, 2020 and 2019

(In millions)


	2021		2020		2019
Condensed Statements of Cash Flows
Cash flows from operating activities
Net income (loss)	$	6,554	$	5,407	$	5,899
Earnings of subsidiaries	(5,995)		(6,263)		(6,301)
Dividends from subsidiaries	4,830		3,970		4,790
(Gains) losses on investments and from sales of businesses, net	(1,655)		154		40


Other, net	23		211		(251)
Net cash provided by (used in) operating activities	3,757		3,479		4,177
Cash flows from investing activities
Sales and maturities of fixed maturity securities available-for-sale	5,078		3,693		3,153
Purchases of fixed maturity securities available-for-sale	(4,371)		(3,858)		(3,380)

Cash received in connection with freestanding derivatives	111		71		101
Cash paid in connection with freestanding derivatives	(27)		(100)		(392)
Sales of businesses	3,902		—		—
Purchases of businesses	—		(1,875)		—
Expense paid on behalf of subsidiaries	(15)		(15)		(13)
Receipts on loans to subsidiaries	195		100		—
Issuances of loans to subsidiaries	(230)		—		—

Returns of capital from subsidiaries	13		16		10
Capital contributions to subsidiaries	(88)		(422)		(75)
Net change in short-term investments	156		4		14
Other, net	9		(2)		28
Net cash provided by (used in) investing activities	4,733		(2,388)		(554)
Cash flows from financing activities
Net change in payables for collateral under derivative transactions	88		49		7
Long-term debt issued	496		1,246		1,382
Long-term debt repaid	(996)		(251)		(877)


Treasury stock acquired in connection with share repurchases	(4,303)		(1,151)		(2,285)
Preferred stock issued, net of issuance costs	—		1,961		—
Redemption of preferred stock	(494)		(989)		—
Preferred stock redemption premium	(6)		(14)		—
Dividends on preferred stock	(195)		(202)		(178)
Dividends on common stock	(1,647)		(1,657)		(1,643)
Other, net	87		(19)		(28)
Net cash provided by (used in) financing activities	(6,970)		(1,027)		(3,622)
Change in cash and cash equivalents	1,520		64		1
Cash and cash equivalents, beginning of year	441		377		376
Cash and cash equivalents, end of year	$	1,961	$	441	$	377

MetLife, Inc.

Schedule II

Condensed Financial Information — (continued)

(Parent Company Only)

For the Years Ended December 31, 2021, 2020 and 2019

(In millions)


	2021		2020		2019
Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest	$	853	$	815	$	864
Income tax:
Amounts paid to (received from) subsidiaries, net	$	(110)	$	(392)	$	(152)

Income tax paid (received) by MetLife, Inc., net	128		96		(3)
Total income tax, net	$	18	$	(296)	$	(155)
Non-cash transactions:
Dividends from subsidiary	$	14	$	341	$	—
Returns of capital from subsidiaries	$	7	$	13	$	29
Capital contributions to subsidiaries	$	15	$	1	$	30

MetLife, Inc.

Schedule II

Notes to the Condensed Financial Information

(Parent Company Only)

1. Basis of Presentation

The condensed financial information of MetLife, Inc. (parent company only) should be read in conjunction with the consolidated financial statements of MetLife, Inc. and its subsidiaries and the notes thereto (the “Consolidated Financial Statements”). These condensed unconsolidated financial statements reflect the results of operations, financial position and cash flows for MetLife, Inc. Investments in subsidiaries are accounted for using the equity method of accounting.

The preparation of these condensed unconsolidated financial statements in conformity with GAAP requires management to adopt accounting policies and make certain estimates and assumptions. The most important of these estimates and assumptions relate to the fair value measurements, the accounting for goodwill and identifiable intangible assets and the provision for potential losses that may arise from litigation and regulatory proceedings and tax audits, which may affect the amounts reported in the condensed unconsolidated financial statements and accompanying notes. Actual results could differ from these estimates.

2. Investment in Subsidiaries

In April 2021, MetLife, Inc. received $3.9 billion in cash in connection with the disposition of MetLife P&C.

In December 2020, MetLife, Inc. paid $1.8 billion in cash in connection with the acquisition of Versant Health.

See Note 3 of the Notes to the Consolidated Financial Statements for additional information.

3. Loans to Subsidiaries

MetLife, Inc. lends funds as necessary, through credit agreements or otherwise to its subsidiaries, some of which are regulated, to meet their capital requirements or to provide liquidity. Payments of interest and principal on surplus notes of regulated subsidiaries, which are subordinate to all other obligations of the issuing company, may be made only with the prior approval of the insurance department of the state of domicile.

In December 2021, Missouri Reinsurance, Inc. (“MoRe”), issued a $35 million promissory note to MetLife, Inc. The promissory note bears interest at a fixed rate of 2.12%, payable semi-annually, and matures in December 2024.

During 2021, under an existing credit facility, MetLife Services and Solutions, LLC issued $195 million in short-term notes to MetLife, Inc. which were repaid by August 2021. The short-term notes bore interest at six-month LIBOR plus 1.00%.

Interest income earned on loans to subsidiaries of $1 million, $2 million and $3 million for the years ended December 31, 2021, 2020 and 2019, respectively, is included in net investment income.

4. Long-term Debt

Long-term debt outstanding was as follows:


	Interest Rates (1)							December 31,
	Range			Weighted Average	Maturity			2021		2020
	(Dollars in millions)
Senior notes — unaffiliated (2)	0.50%	-	6.50%	4.44%	2023	-	2046	$	12,814	$	13,463
Senior notes — affiliated	1.59%	-	2.02%	2.25%	2023	-	2031	1,884		2,073
Total								$	14,698	$	15,536

__________________

(1)Range of interest rates and weighted average interest rates are for the year ended December 31, 2021.

(2)Net of $77 million and $85 million of unamortized issuance costs and net premiums and discounts at December 31, 2021 and 2020, respectively.

See Note 13 of the Notes to the Consolidated Financial Statements.

The aggregate maturities of long-term debt at December 31, 2021 for the next five years and thereafter are $0 in 2022, $1.3 billion in 2023, $1.5 billion in 2024, $1.2 billion in 2025, $582 million in 2026 and $10.1 billion thereafter.

Senior Notes – Affiliated

In December 2021, ¥54.6 billion 3.1350% senior unsecured notes issued to various subsidiaries matured and were refinanced with the following senior unsecured notes issued to various subsidiaries: (i) ¥12.2 billion 1.588% due December 2026, (ii) ¥19.1 billion 1.7185% due December 2028 and (iii) ¥23.3 billion 1.850% due December 2031.

In July 2021, ¥53.7 billion 2.9725% senior unsecured notes issued to various subsidiaries matured and were refinanced with the following senior unsecured notes issued to various subsidiaries: (i) ¥13.7 billion 1.610% due July 2026, (ii) ¥14.3 billion 1.755% due July 2028 and (iii) ¥25.7 billion 1.852% due July 2031.

In June 2020, MetLife, Inc. issued a new $250 million senior unsecured floating rate note to MetLife Insurance K.K. The senior unsecured floating rate note matures in June 2025 and bears interest at a variable rate of three-month LIBOR plus 1.82%, payable quarterly.

In July 2019, MetLife, Inc, issued a ¥37.3 billion 1.602% senior note due July 2023 and a ¥16.0 billion 1.637% senior note due July 2026. Both notes were issued to MLIC to refinance previously issued notes and are payable semi-annually.

In October 2019, MetLife Inc. issued a ¥26.5 billion 1.81% senior note due October 2029. The note was issued to MLIC to refinance previously issued notes, and is payable semi-annually.

Interest Expense

Interest expense was comprised of the following:


	Years Ended December 31,
	2021		2020		2019
	(In millions)
Long-term debt — unaffiliated	$	590	$	570	$	591
Long-term debt — affiliated	47		52		48
Collateral financing arrangements	5		6		6
Junior subordinated debt securities	205		205		205
Total	$	847	$	833	$	850

See Notes 14 and 15 of the Notes to the Consolidated Financial Statements for information about the collateral financing arrangement and junior subordinated debt securities.

5. Support Agreements

MetLife, Inc. is party to various capital support commitments and guarantees with certain of its subsidiaries. Under these arrangements, MetLife, Inc. has agreed to cause each such entity to meet specified capital and surplus levels or has guaranteed certain contractual obligations.

MetLife, Inc. guarantees the obligations of MoRe, under a retrocession agreement with RGA Reinsurance (Barbados) Inc., pursuant to which MoRe retrocedes a portion of the closed block liabilities associated with industrial life and ordinary life insurance policies that it assumed from MLIC.

MetLife, Inc. guarantees the obligations of MetLife Reinsurance Company of Bermuda, Ltd. (“MrB”), a Bermuda insurance affiliate and an indirect, wholly-owned subsidiary of MetLife, Inc. under a reinsurance agreement with Mitsui Sumitomo Primary Life Insurance Co., Ltd. (“Mitsui”), a former affiliate that is now an unaffiliated third party, under which MrB reinsures certain variable annuity business written by Mitsui.

MetLife, Inc. guarantees the obligations of MrB in an aggregate amount up to $1.0 billion, under a reinsurance agreement with MetLife Europe d.a.c., in respect of MrB’s reinsurance of the guaranteed living benefits and guaranteed death benefits associated with certain unit-linked variable annuity type liability contracts issued by MetLife Europe d.a.c.

MetLife, Inc., in connection with MRV’s reinsurance of certain universal life and term life insurance risks, committed to the Vermont Department of Banking, Insurance, Securities and Health Care Administration to take necessary action to cause the two protected cells of MRV to maintain total adjusted capital in an amount that is equal to or greater than 200% of each such protected cell’s authorized control level RBC, as defined in Vermont state insurance statutes.

MetLife, Inc., in connection with the collateral financing arrangement associated with MRC’s reinsurance of a portion of the liabilities associated with the closed block, committed to the South Carolina Department of Insurance to make capital contributions, if necessary, to MRC so that MRC may at all times maintain its total adjusted capital in an amount that is equal to or greater than 200% of the Company Action Level RBC, as defined in South Carolina state insurance statutes as in effect on the date of determination or December 31, 2007, whichever calculation produces the greater capital requirement, or as otherwise required by the South Carolina Department of Insurance. See Note 14 of the Notes to the Consolidated Financial Statements.

MetLife, Inc. guarantees obligations arising from OTC-bilateral derivatives of MrB. MrB is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. MrB uses a variety of strategies to manage these risks, including the use of derivatives. Further, MrB’s derivatives are subject to industry standard netting agreements and collateral agreements that limit the unsecured portion of any open derivative position. On a net counterparty basis at December 31, 2021 and 2020, derivative transactions with positive mark-to-market values (in-the-money) were $255 million and $366 million, respectively, and derivative transactions with negative mark-to-market values (out-of-the-money) were $116 million and $158 million, respectively. To secure the obligations represented by the out-of-the-money transactions, MrB had provided collateral to its counterparties with an estimated fair value of $114 million and $158 million at December 31, 2021 and 2020, respectively. Accordingly, unsecured derivative liabilities guaranteed by MetLife, Inc. were $2 million and $0 at December 31, 2021 and 2020, respectively.

MetLife, Inc. also guarantees the obligations of certain of its subsidiaries under committed facilities with third-party banks. See Note 13 of the Notes to the Consolidated Financial Statements.

Consolidated Supplementary Insurance Information

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract]

Consolidated Supplementary Insurance Information

MetLife, Inc.

Schedule III

Consolidated Supplementary Insurance Information

December 31, 2021 and 2020

(In millions)


Segment	DAC and VOBA		Future Policy Benefits, Other Policy-Related Balances and Policyholder Dividend Obligation		Policyholder Account Balances		Policyholder Dividends Payable		Unearned Premiums (1), (2)		Unearned Revenue (1)
2021
U.S.	$	440	$	85,108	$	77,891	$	—	$	325	$	38
Asia	9,339		42,103		83,736		85		2,386		790
Latin America	2,021		10,541		5,023		—		1		797
EMEA	1,623		3,639		9,392		—		21		553
MetLife Holdings	2,607		76,523		27,450		393		159		190
Corporate & Other	31		1,240		(19)		—		—		—
Total	$	16,061	$	219,154	$	203,473	$	478	$	2,892	$	2,368
2020
U.S.	$	434	$	85,037	$	77,487	$	—	$	175	$	42
Asia	9,333		45,202		81,710		87		2,493		587
Latin America	2,092		11,749		5,100		—		1		740
EMEA	1,787		5,215		12,037		6		23		555
MetLife Holdings	2,712		78,048		28,858		494		154		188
Corporate & Other	31		1,475		(16)		—		—		—
Total	$	16,389	$	226,726	$	205,176	$	587	$	2,846	$	2,112

__________________

(1)Amounts are included within the future policy benefits, other policy-related balances and policyholder dividend obligation column.

(2)Includes premiums received in advance.

MetLife, Inc.

Schedule III

Consolidated Supplementary Insurance Information — (continued)

For the Years Ended December 31, 2021, 2020 and 2019

(In millions)


Segment	Premiums and Universal Life and Investment-Type Product Policy Fees		Net Investment Income		Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances		Amortization of DAC and VOBA Charged to Other Expenses		Other Expenses (1)
2021
U.S.	$	28,363	$	7,738	$	29,987	$	158	$	3,707
Asia	8,308		5,110		7,295		1,404		1,751
Latin America	3,718		1,207		3,442		285		989
EMEA	2,825		932		2,162		382		900
MetLife Holdings	4,514		6,157		6,571		317		1,839
Corporate & Other	37		251		35		9		1,721
Total	$	47,765	$	21,395	$	49,492	$	2,555	$	10,907
2020
U.S.	$	28,335	$	6,563	$	27,966	$	471	$	3,716
Asia	8,554		3,931		7,249		1,468		1,825
Latin America	3,257		991		2,857		276		971
EMEA	2,709		697		1,623		452		860
MetLife Holdings	4,757		4,900		6,983		485		1,976
Corporate & Other	25		35		(3)		8		1,732
Total	$	47,637	$	17,117	$	46,675	$	3,160	$	11,080
2019
U.S.	$	27,879	$	6,821	$	28,165	$	475	$	3,603
Asia	8,482		3,920		7,278		1,380		1,907
Latin America	3,817		1,262		3,210		291		1,039
EMEA	2,615		1,442		2,361		420		921
MetLife Holdings	4,960		5,140		6,842		324		2,246
Corporate & Other	85		283		69		6		2,288
Total	$	47,838	$	18,868	$	47,925	$	2,896	$	12,004

______________

(1)Includes other expenses and policyholder dividends, excluding amortization of DAC and VOBA charged to other expenses.

Consolidated Reinsurance

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract]

Consolidated Reinsurance

MetLife, Inc.

Schedule IV

Consolidated Reinsurance

December 31, 2021, 2020 and 2019

(Dollars in millions)


	Gross Amount		Ceded		Assumed		Net Amount		% Amount Assumed to Net
2021
Life insurance in-force	$	5,273,869	$	394,023	$	662,901	$	5,542,747	12.0	%
Insurance premium
Life insurance (1)	$	23,597	$	1,490	$	2,346	$	24,453	9.6	%
Accident & health insurance	16,752		639		553		16,666		3.3	%
Property and casualty insurance	910		28		8		890		0.9	%
Total insurance premium	$	41,259	$	2,157	$	2,907	$	42,009	6.9	%
2020
Life insurance in-force	$	5,222,988	$	442,381	$	597,903	$	5,378,510	11.1	%
Insurance premium
Life insurance (1)	$	23,629	$	1,620	$	1,809	$	23,818	7.6	%
Accident & health insurance	14,958		516		208		14,650		1.4	%
Property and casualty insurance	3,614		63		15		3,566		0.4	%
Total insurance premium	$	42,201	$	2,199	$	2,032	$	42,034	4.8	%
2019
Life insurance in-force	$	5,100,675	$	488,958	$	623,662	$	5,235,379	11.9	%
Insurance premium
Life insurance (1)	$	23,938	$	1,704	$	1,794	$	24,028	7.5	%
Accident & health insurance	14,835		523		207		14,519		1.4	%
Property and casualty insurance	3,740		71		19		3,688		0.5	%
Total insurance premium	$	42,513	$	2,298	$	2,020	$	42,235	4.8	%

__________________

(1)Includes annuities with life contingencies.

Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

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, including uncertainties associated with the COVID-19 pandemic. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates.

Consolidation of Subsidiaries

Consolidation

The accompanying consolidated financial statements include the accounts of MetLife, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has a controlling financial interest, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated.

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.

Held-for-Sale

Held-for-SaleThe Company classifies a business as held-for-sale when management has approved or received approval to sell the business, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current estimated fair value and certain other specified criteria are met. The business classified as held-for-sale is recorded at the lower of the carrying value and estimated fair value, less cost to sell. If the carrying value of the business exceeds its estimated fair value, less cost to sell, a loss is recognized and reported in net investment gains (losses). Assets and liabilities related to the business classified as held-for-sale are separately reported in the Company's consolidated balance sheets in the period in which the business is classified as held-for-sale. See Note 3 for information on a held-for-sale business. If a component of the Company has either been disposed of or is classified as held-for-sale and represents a strategic shift that has or will have a major effect on the Company’s operations and financial results, the results of the component are reported in discontinued operations.

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;

•investment objectives 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. Unit-linked separate account investments that are directed by contractholders but do not meet one or more of the other above criteria are included in Contractholder-directed equity securities.

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

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 and geographical area. 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 (“ULSG”) 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 life of the contract 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 S&P 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

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% for U.S. businesses and less than 1% to 10% for non-U.S. businesses and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends for U.S. businesses.
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% for U.S. businesses and less than 1% to 10% for non-U.S. businesses.
Individual 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% for U.S. businesses and less than 1% to 9% for non-U.S. businesses.
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 1% to 7% (primarily related to U.S. businesses).
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% for U.S. businesses and less than 1% to 9% for non-U.S. businesses.

Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments and investment performance; (ii) credited interest, ranging from less than 1% to 8% for U.S. businesses and less than 1% to 10% for non-U.S. businesses, less expenses, mortality charges and withdrawals; and (iii) fair value adjustments relating to business combinations.

Variable Annuity Guaranteed Minimum Benefits

The Company issues directly and assumes through reinsurance 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 life-contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”), elective annuitizations of guaranteed minimum income benefits (“GMIBs”), and the life contingent portion of GMIBs that require annuitization when the account balance goes to zero.

Guarantees accounted for as embedded derivatives in policyholder account balances include guaranteed minimum accumulation benefits (“GMABs”), the non-life contingent portion of GMWBs and certain non-life contingent portions of GMIBs. 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 directly and assumes through reinsurance variable annuity products with guaranteed minimum benefits. GMABs, the non-life contingent portion of GMWBs and certain non-life contingent portions of GMIBs 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.

Other Policy-Related Balances

Other policy-related balances include policy and contract claims, premiums received in advance, unearned revenue liabilities, obligations assumed under structured settlement assignments, policyholder dividends due and unpaid, policyholder dividends left on deposit and negative value of business acquired (“VOBA”).

The liability for policy and contract claims generally relates to incurred but not reported (“IBNR”) death, disability, dental and vision claims. In addition, included in other policy-related balances are claims which have been reported but not yet settled for death, disability, dental and vision. 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. These amounts are then recognized in premiums when due.

The unearned revenue liability relates to universal life 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 “— Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles” for a discussion of negative VOBA.For certain acquired blocks of business, the estimated fair value of the in-force contract obligations exceeded the book value of assumed in-force insurance policy liabilities, resulting in negative VOBA, which is presented separately from VOBA as an additional insurance liability. The estimated fair value of the in-force contract obligations is based on projections by each block of business. Negative VOBA is amortized over the policy period in proportion to the approximate consumption of losses included in the liability usually expressed in terms of insurance in-force or account value. Such amortization is recorded as an offset in other expenses.

Recognition of Insurance Revenues and Deposits

Premiums related to traditional life, annuity contracts with life contingencies, long-duration accident & health, and credit insurance policies 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 and disability, accident & health, and certain credit insurance contracts are recognized on a pro rata basis over the applicable contract term.

Deposits related to universal life 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.

Prior to the disposition of the Company’s Property & Casualty business, premiums related to property & casualty contracts are recognized as revenue on a pro rata basis over the applicable contract term. Unearned premiums, representing the portion of premium written related to the unexpired coverage, are included in future policy benefits. See Note 3 for information on the Company’s business dispositions.

All revenues and expenses are presented net of reinsurance, as applicable.

Deferred Policy Acquisition Costs and Value of Business Acquired