Statements of Assets and Liabilities - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Assets | ||
| Equity securities, at estimated fair value (cost: $1,860,850 and $1,953,328 at December 31, 2019 and 2018, respectively) | $ 7,171,211 | $ 6,078,344 |
| Cash | 41 | 31 |
| Receivable for equity securities sold | 2,537 | 1,767 |
| Dividends receivable from MetLife, Inc. | 68,535 | 72,988 |
| Total assets | 7,242,324 | 6,153,130 |
| Liabilities | ||
| Payable for equity securities purchased | 41 | 31 |
| Payable for Trust Interests redeemed | 2,537 | 1,767 |
| Dividends payable to Trust Beneficiaries | 68,535 | 72,988 |
| Total liabilities | 71,113 | 74,786 |
| Net assets | 7,171,211 | 6,078,344 |
| Net assets consist of: | ||
| Trust Interests | 1,860,850 | 1,953,328 |
| Net unrealized investment gains | 5,310,361 | 4,125,016 |
| Net assets available for Trust Interests outstanding | $ 7,171,211 | $ 6,078,344 |
| Net asset value per Trust Interest of ($7,171,211/140,694,733) and ($6,078,344/148,035,667) at December 31, 2019 and 2018, respectively | $ 50.97 | $ 41.06 |
Statements of Assets and Liabilities (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Assets | ||
| Cost of equity securities available-for-sale | $ 1,860,850 | $ 1,953,328 |
| Trusts Interests Outstanding | 140,694,733 | 148,035,667 |
| Net asset value | $ 7,171,211 | $ 6,078,344 |
Statements of Operations - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
| Income Statement [Abstract] | |||
| Net investment income | $ 251,406 | $ 251,980 | $ 255,010 |
| Net investment gains (losses): | |||
| Net realized investment gains | 176,067 | 170,789 | 279,435 |
| Change in net unrealized investment gains | 1,185,345 | (1,680,638) | (603,326) |
| Total net investment gains (losses) | 1,361,412 | (1,509,849) | (323,891) |
| Net increase (decrease) in net assets resulting from operations | $ 1,612,818 | $ (1,257,869) | $ (68,881) |
Significant Accounting Policies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Significant Accounting Policies | 1. Significant Accounting Policies Description of the Trust The MetLife Policyholder Trust (the “Trust”) was established under the Metropolitan Life Insurance Company (“Metropolitan Life”) plan of reorganization (the “Plan”) and pursuant to the MetLife Policyholder Trust Agreement, dated as of November 3, 1999, by and among Metropolitan Life, MetLife, Inc., Wilmington Trust Company (not in its individual capacity, but solely as trustee for the Trust, the “Trustee”) and ChaseMellon Shareholder Services, L.L.C., as custodian (now known as Computershare Inc., the “Custodian”), as amended on November 8, 2001 (the “Trust Agreement”), in connection with the conversion of Metropolitan Life from a mutual life insurance company to a stock life insurance company. The Trust is a single-purpose trust that does not engage in any business or activity other than voting and holding the Trust Shares (as defined below) and certain closely related activities, such as distributing cash dividends and other distributions. The Trust has no employees. Under the Plan and the Trust Agreement, each policyholder’s membership interest was extinguished and certain eligible policyholders of Metropolitan Life (the “Trust Eligible Policyholders”) received, in exchange for that interest, a number of interests in the Trust (“Trust Interests”) equal to the number of shares of common stock of MetLife, Inc., par value $0.01 per share (the “Common Stock”), allocated to them in accordance with the Plan. The assets of the Trust consist principally of the shares of Common Stock issued to the Trust (the “Trust Shares”) for the benefit of the Trust Eligible Policyholders and permitted transferees (collectively, the “Beneficiaries”). The Trust Shares are held in the name of the Trustee, on behalf of the Trust, which has legal title over the Trust Shares. The Beneficiaries do not have legal title to any part of the assets of the Trust. The Trust Interests represent undivided fractional interests in the Trust Shares and other assets of the Trust beneficially owned by a Trust Beneficiary through the Custodian. On April 7, 2000, the date of demutualization of Metropolitan Life, MetLife, Inc. distributed to the Trust 494,466,664 shares of Common Stock for the benefit of policyholders of Metropolitan Life. Withdrawals by Beneficiaries of Trust Shares, transactions by Beneficiaries under the Purchase and Sale Program (as defined below), and escheatment of unclaimed Trust Shares resulted in a net decrease in the number of Trust Shares from 148,035,667 at December 31, 2018 to 140,694,733 at December 31, 2019. See “— Termination of the Trust.” A Trust Interest entitles the Beneficiary to certain rights, including the right to: (i) receive dividends distributed upon Trust Shares; (ii) have Trust Shares withdrawn from the Trust to be sold for cash through a purchase and sale program established by MetLife, Inc. pursuant to the Plan (the “Purchase and Sale Program”); (iii) deposit in the Trust additional shares of Common Stock purchased through the Purchase and Sale Program; (iv) withdraw Trust Shares, including for exchange in connection with an exchange offer for Common Stock; and (v) instruct the Trustee to vote the Trust Shares on certain matters, each as further described in and limited by the terms of the Trust Agreement. The Trustee has no beneficial interest in the Trust Shares. The Trust accounts for Trust Interests transactions as follows:
The Trust Agreement provides that MetLife, Inc. shall pay, or reimburse directly, each of the Trustee and the Custodian for, all costs and expenses relating to the Trust, in the case of the Trustee, and relating to the holding of Trust Interests, in the case of the Custodian, including, but not limited to, the fees and expenses as provided in the Trust Agreement. MetLife, Inc. pays the Trustee an annual fee of $50 thousand. MetLife, Inc. paid to the Trustee $34 thousand, $40 thousand and $39 thousand for out-of-pocket expenses for the years ended December 31, 2019, 2018 and 2017, respectively. MetLife, Inc. paid to the Trust’s independent auditors $59 thousand for audit fees for each of the years ended December 31, 2019, 2018 and 2017. None of the aforementioned fees and expenses is included in the Trust’s financial statements. MetLife, Inc. also provides the Trustee with certain management and administrative services. The accompanying financial statements of the Trust have been prepared in conformity with accounting principles generally accepted in the United States of America. Termination of the Trust The Trust will be terminated on the first to occur (each, a “Termination Event”) of (i) the 90th day after the date on which the Trustee shall have received notice from MetLife, Inc. that the number of Trust Shares held by the Trust is equal to 10% or less of the number of issued and outstanding shares of Common Stock; or (ii) the date on which the last Trust Share shall have been withdrawn, distributed or exchanged. The Trust may be terminated earlier upon the first to occur of any of the following (each, an “Early Termination Event”):
The Trust Agreement also contains a provision which would cause termination under certain circumstances in order to comply with legal rules governing the duration of trusts. Upon a Termination Event or Early Termination Event, the Trustee and the Custodian will take such actions as may be necessary to wind up the Trust and distribute its assets to the Trust Beneficiaries pro rata in accordance with their respective Trust Interests, including the distribution in book-entry form to each Beneficiary, or as otherwise directed by such Beneficiary, together with the Beneficiary’s proportionate share of all unpaid distributions and dividends and interest earned thereon, if applicable. The Trust Agreement provides that MetLife, Inc. may, at its discretion, offer to purchase such shares at the market price of the Common Stock at the time of the purchase. Pursuant to the Trust Agreement, the Trust is eligible to be terminated at MetLife, Inc.’s discretion, as the Trust Shares constituted less than 25% of the number of issued and outstanding shares of Common Stock at December 31, 2019. As of December 31, 2019, MetLife, Inc. had not advised the Trustee of any intention to voluntarily terminate the Trust. Separation of Brighthouse On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”). MetLife, Inc. common shareholders, including the Trust and, by extension, the Beneficiaries, received a distribution of one share of Brighthouse Financial, Inc. common stock for every 11 shares of Common Stock they owned as of 5:00 p.m., New York City time, on the July 19, 2017 record date (the “distribution”). Beneficiaries who beneficially owned less than 11 shares of Common Stock, or others who would have otherwise received fractional shares, received cash. MetLife, Inc. distributed 96,776,670 of the 119,773,106 shares of Brighthouse Financial, Inc. common stock outstanding, representing approximately 80.8% of those shares. Following the distribution, a portion of the cost basis of the Trust Shares was allocated to the Brighthouse Financial, Inc. common stock distributed to Beneficiaries. Of the allocated cost basis, $217 million was attributable to whole shares which were recorded as a withdrawal of Trust Interests for the year ended December 31, 2017 and $24 million was attributable to the fractional shares that Beneficiaries would have otherwise received in the distribution. The cash received in lieu of such fractional shares of $83 million was recorded as a redemption of Trust Interests, net of the $24 million cost basis allocated to such fractional shares, resulting in net realized investment gains of $59 million for the year ended December 31, 2017. At December 31, 2017, the Trust did not hold any shares of Brighthouse Financial, Inc. common stock. Common Stock Repurchase Authorizations MetLife, Inc. announced that its Board of Directors authorized common stock repurchases as follows:
For the years ended December 31, 2019, 2018 and 2017, MetLife, Inc. repurchased 49,131,501 shares, 88,029,138 shares and 56,599,540 shares under these repurchase authorizations for $2.3 billion, $4.0 billion and $2.9 billion, respectively. See Note 5 for information regarding subsequent Common Stock repurchases. Under these authorizations, MetLife, Inc. may purchase its Common Stock from the 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 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 MetLife, Inc.’s capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of the Common Stock compared to management’s assessment of the stock’s underlying value, applicable regulatory approvals, and other legal and accounting factors. MetLife, Inc. did not repurchase any shares of Common Stock from the Trust during any of the years ended December 31, 2019, 2018 and 2017. Equity Securities Equity securities, which are entirely comprised of Common Stock, are reported at their estimated fair value based on the quoted prices in active markets that are readily and regularly obtainable. As such, these securities are categorized as Level 1 in three-level fair value hierarchy in accordance with fair value measurement guidance. Unrealized investment gains and losses on securities are recorded in the statements of operations and statements of changes in net assets. Realized gains and losses on sales of securities are determined on a first-in first-out basis. The Trust Agreement provides that regular cash dividends, if any, collected or received by the Trustee with respect to the Trust Shares shall be distributed by the Custodian semi-annually to the Beneficiaries within 90 days after receipt by the Trustee. Distributions of all other cash dividends shall be made by the Custodian to the Beneficiaries on the first business day following the 30th day after the Trust receives the dividends. Alternatively, the Trust Agreement provides that the Trustee may arrange with MetLife, Inc. for the direct payment by MetLife, Inc. of such cash dividends to the Beneficiaries. Historically, MetLife, Inc. has used the latter method. See “— Receivable from MetLife, Inc. and Dividends Payable to Trust Beneficiaries.” The Trust Agreement further provides that pending such distribution, cash dividends (unless distributed directly by MetLife, Inc. to Beneficiaries) shall be invested by the Trustee in short-term obligations of or guaranteed by the United States, or any agency or instrumentality thereof, and in certificates of deposit of any bank or trust company having, at the time of the investment, a combined capital and surplus not less than $500,000,000. Dividends or other distributions in Common Stock will be allocated to the Beneficiaries in proportion to their Trust Interests and held by the Trustee as Trust Shares. Generally, all other distributions by MetLife, Inc. to its stockholders will be held and distributed by the Trustee to the Custodian and by the Custodian to the Beneficiaries in proportion to their Trust Interests within 60 days of receipt of such distribution by the Trustee, subject to limited exceptions. All security transactions are recorded on a trade date basis. See Note 5 for information on Common Stock dividends declared and paid subsequent to December 31, 2019. Receivable from MetLife, Inc. and Dividends Payable to Trust Beneficiaries In accordance with the Trust Agreement, MetLife, Inc. distributes cash dividends directly to the Beneficiaries at the same time as the payment of dividends to MetLife, Inc.’s stockholders. In the event that dividends are undeliverable to the Beneficiaries, MetLife, Inc. retains such dividends until they are claimed by such Beneficiaries or escheated in accordance with applicable state law. Cash dividends that have been declared but are undeliverable to the Beneficiaries and the cash amounts of dividend checks that have not been cashed by the Beneficiaries have been recorded as a receivable from MetLife, Inc. and a liability of the Trust to such Beneficiaries. Income Tax As a grantor trust, the Trust is not subject to U.S. federal income taxes.
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Purchase and Sale Program |
12 Months Ended |
|---|---|
Dec. 31, 2019 | |
| Purchase And Sale Program [Abstract] | |
| Purchase and Sale Program | 2. Purchase and Sale Program Beneficiaries may instruct the program agent for the Purchase and Sale Program to withdraw their allocated shares from the Trust for sale through the Purchase and Sale Program. Trust Interests of 5,187,053, 5,124,688 and 5,693,260 were redeemed for this purpose, which generated net realized investment gains of $176 million, $171 million and $279 million for the years ended December 31, 2019, 2018 and 2017, respectively. Beneficiaries allocated less than 1,000 shares of Common Stock under the Plan are also entitled to purchase in the Purchase and Sale Program additional shares to bring their Trust Interests up to 1,000 shares, subject to a minimum of $250 per purchase (or such lesser amount that would cause the Beneficiary to hold the 1,000 maximum number of Trust Interests). Trust Interests of 38,441, 55,073 and 58,469 for the years ended December 31, 2019, 2018 and 2017, respectively, were issued for this purpose. The number of Trust Interests allocated to Beneficiaries will be adjusted for any shares of Common Stock purchased or sold in the Purchase and Sale Program such that the Trust Interests held by a Beneficiary will always equal the number of shares of Common Stock allocated to the Beneficiary. Beneficiaries may withdraw all, but generally not less than all, of their allocated shares of Common Stock from the Trust at any time by providing written notice to the Custodian. After the passage of sufficient time, any unclaimed cash and Common Stock will be remitted as unclaimed property to the state of last known residence of the Beneficiary, as is the case with other types of unclaimed property. The schedule by which unclaimed property escheats varies by state, but is generally within three to five years of abandonment.
|
Contingencies |
12 Months Ended |
|---|---|
Dec. 31, 2019 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Contingencies | 3. Contingencies Litigation There is no pending or threatened litigation, claim or assessment against the Trust.
|
Beneficiary Voting Rights |
12 Months Ended |
|---|---|
Dec. 31, 2019 | |
| Beneficiary Voting Rights [Abstract] | |
| Beneficiary Voting Rights | 4. Beneficiary Voting Rights The Trust Agreement provides the Trustee with directions as to the manner in which to vote, assent or consent the Trust Shares at all times during the term of the Trust. On all matters brought for a vote before the stockholders of MetLife, Inc., with the exception of a Beneficiary Consent Matter (as defined in the Trust Agreement), the Trustee will vote or abstain from voting in accordance with the recommendation given by the Board of Directors of MetLife, Inc. to its stockholders or, if no such recommendation is given, as directed by the Board. On all Beneficiary Consent Matters, the Trustee will vote all of the Trust Shares in favor of, in opposition to or abstain from the matter in the same ratio as the Trust Interests of the Beneficiaries that returned voting instructions to the Trustee indicated preferences for voting in favor of, in opposition to or abstaining from such matter. The Trust Agreement also contains provisions allowing Beneficiaries to instruct the Custodian to withdraw their allocated Trust Shares to participate in any tender or exchange offer for the Common Stock and to make any cash or share election, or perfect any dissenter’s rights, in connection with a merger of MetLife, Inc.
|
Subsequent Event |
12 Months Ended |
|---|---|
Dec. 31, 2019 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | 5. Subsequent Events Common Stock Repurchases In 2020, through February 14, 2020, MetLife, Inc. repurchased 973,315 shares of Common Stock in the open market for $51 million. Common Stock Dividends On January 7, 2020, the MetLife, Inc.’s Board of Directors declared a first quarter 2020 Common Stock dividend of $0.44 per share payable on March 13, 2020 to shareholders of record as of February 4, 2020. The aggregate dividend payment to Beneficiaries was $62 million. Value of Trust Interests In late February through the date of this filing, the significant volatility in global financial markets has caused, among other things, significant changes to the market price of the Common Stock. This has affected the value of the Trust Shares and, correspondingly, the value of the Beneficiaries’ Trust Interests. The ultimate impact of these events on the Trust and the Common Stock cannot be estimated as of the date of this filing.
|
Significant Accounting Policies (Policies) |
12 Months Ended |
|---|---|
Dec. 31, 2019 | |
| Accounting Policies [Abstract] | |
| Basis of Accounting | The accompanying financial statements of the Trust have been prepared in conformity with accounting principles generally accepted in the United States of America.
|
| Equity Securities | Equity Securities Equity securities, which are entirely comprised of Common Stock, are reported at their estimated fair value based on the quoted prices in active markets that are readily and regularly obtainable. As such, these securities are categorized as Level 1 in three-level fair value hierarchy in accordance with fair value measurement guidance. Unrealized investment gains and losses on securities are recorded in the statements of operations and statements of changes in net assets. Realized gains and losses on sales of securities are determined on a first-in first-out basis.
|
| Receivable From Metlife, Inc. and Dividends Payable To Trust Beneficiaries | Receivable from MetLife, Inc. and Dividends Payable to Trust Beneficiaries In accordance with the Trust Agreement, MetLife, Inc. distributes cash dividends directly to the Beneficiaries at the same time as the payment of dividends to MetLife, Inc.’s stockholders. In the event that dividends are undeliverable to the Beneficiaries, MetLife, Inc. retains such dividends until they are claimed by such Beneficiaries or escheated in accordance with applicable state law. Cash dividends that have been declared but are undeliverable to the Beneficiaries and the cash amounts of dividend checks that have not been cashed by the Beneficiaries have been recorded as a receivable from MetLife, Inc. and a liability of the Trust to such Beneficiaries.
|
| Income Tax | Income Tax As a grantor trust, the Trust is not subject to U.S. federal income taxes.
|
Significant Accounting Policies Common Stock Repurchase Authorizations (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock Repurchase Authorizations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock Repurchase Authorizations | MetLife, Inc. announced that its Board of Directors authorized common stock repurchases as follows:
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Significant Accounting Policies Common Stock Repurchase Authorizations (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Jul. 31, 2019 |
Nov. 01, 2018 |
May 22, 2018 |
Nov. 01, 2017 |
|---|---|---|---|---|---|
| MetLife, Inc. [Member] | |||||
| Common Stock Repurchase Authorizations [Line Items] | |||||
| Stock Repurchase Program, Authorized Amount | $ 2,000 | $ 2,000 | $ 1,500 | $ 2,000 | |
| July2019Authorization [Member] | |||||
| Common Stock Repurchase Authorizations [Line Items] | |||||
| Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 985 | ||||
| November2018Authorization [Member] | |||||
| Common Stock Repurchase Authorizations [Line Items] | |||||
| Stock Repurchase Program, Remaining Authorized Repurchase Amount | 0 | ||||
| May2018Authorization [Member] | |||||
| Common Stock Repurchase Authorizations [Line Items] | |||||
| Stock Repurchase Program, Remaining Authorized Repurchase Amount | 0 | ||||
| November2017Authorization [Member] | |||||
| Common Stock Repurchase Authorizations [Line Items] | |||||
| Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 0 |
Purchase and Sale Program (Details) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
| Purchase And Sale Program [Abstract] | |||
| Trust Interests redeemed | 5,187,053 | 5,124,688 | 5,693,260 |
| Net realized investment gains | $ 176,067,000 | $ 170,789,000 | $ 279,435,000 |
| Maximum Trust Interests Per Beneficiary | 1,000 | ||
| Amount Of Minimum Purchase Requirement | $ 250 | ||
| Trust Interests issued | 38,441 | 55,073 | 58,469 |
Contingencies (Details) |
Dec. 31, 2019 |
|---|---|
| Commitments and Contingencies Disclosure [Abstract] | |
| Loss Contingency, Pending Claims, Number | 0 |
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Thousands |
2 Months Ended | 3 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
Feb. 14, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
| Subsequent Event [Line Items] | |||||
| Net investment income | $ 251,406 | $ 251,980 | $ 255,010 | ||
| MetLife, Inc. [Member] | |||||
| Subsequent Event [Line Items] | |||||
| Treasury Stock, Shares, Acquired | 49,131,501 | 88,029,138 | 56,599,540 | ||
| Treasury Stock, Value, Acquired, Cost Method | $ 2,300,000 | $ 4,000,000 | $ 2,900,000 | ||
| Subsequent Event [Member] | MetLife, Inc. [Member] | |||||
| Subsequent Event [Line Items] | |||||
| Treasury Stock, Shares, Acquired | 973,315 | ||||
| Treasury Stock, Value, Acquired, Cost Method | $ 51,000 | ||||
| MetLife, Inc. Common Stock Dividend, Amount Per Share | $ 0.44 | ||||
| Net investment income | $ 62,000 | ||||