10-Q
 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 ______________________________________
Form 10-Q
(Mark One)
þ
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2015
or
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
Commission file number: 001-15787
 ________________________________________
MetLife, Inc.
(Exact name of registrant as specified in its charter)
Delaware
 
13-4075851
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
 
200 Park Avenue, New York, N.Y.
 
10166-0188
(Address of principal executive offices)
 
(Zip Code)
(212) 578-9500
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
þ
 
 
Accelerated filer
¨
Non-accelerated filer
¨
(Do not check if a smaller reporting company)
 
Smaller reporting company
¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨No þ
At October 30, 2015, 1,111,626,481 shares of the registrant’s common stock, $0.01 par value per share, were outstanding.
 
 


Table of Contents
 
 
Page
 
Item 1.
Financial Statements (at September 30, 2015 (Unaudited) and December 31, 2014 and for the Three Months and Nine Months Ended September 30, 2015 and 2014 (Unaudited))
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
 
 
 
 
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.
 
 
 
 
 
 
 
 
 

Table of Contents

As used in this Form 10‑Q, “MetLife,” the “Company,” “we,” “our” and “us” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates.
Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10‑Q, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and other words and terms of similar meaning, or are tied to future periods, in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends in operations and financial results.
Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining the actual future results of MetLife, Inc., its subsidiaries and affiliates. These statements are based on current expectations and the current economic environment. They involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements. Risks, uncertainties, and other factors that might cause such differences include the risks, uncertainties and other factors identified in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission. These factors include: (1) difficult conditions in the global capital markets; (2) increased volatility and disruption of the capital and credit markets, which may affect our ability to meet liquidity needs and access capital, including through our credit facilities, generate fee income and market-related revenue and finance statutory reserve requirements and may require us to pledge collateral or make payments related to declines in value of specified assets, including assets supporting risks ceded to certain of our captive reinsurers or hedging arrangements associated with those risks; (3) exposure to financial and capital market risks, including as a result of the disruption in Europe and possible withdrawal of one or more countries from the Euro zone; (4) impact of comprehensive financial services regulation reform on us, as a non-bank systemically important financial institution, or otherwise; (5) numerous rulemaking initiatives required or permitted by the Dodd-Frank Wall Street Reform and Consumer Protection Act which may impact how we conduct our business, including those compelling the liquidation of certain financial institutions; (6) regulatory, legislative or tax changes relating to our insurance, international, or other operations that may affect the cost of, or demand for, our products or services, or increase the cost or administrative burdens of providing benefits to employees; (7) adverse results or other consequences from litigation, arbitration or regulatory investigations; (8) potential liquidity and other risks resulting from our participation in a securities lending program and other transactions; (9) investment losses and defaults, and changes to investment valuations; (10) changes in assumptions related to investment valuations, deferred policy acquisition costs, deferred sales inducements, value of business acquired or goodwill; (11) impairments of goodwill and realized losses or market value impairments to illiquid assets; (12) defaults on our mortgage loans; (13) the defaults or deteriorating credit of other financial institutions that could adversely affect us; (14) economic, political, legal, currency and other risks relating to our international operations, including with respect to fluctuations of exchange rates; (15) downgrades in our claims paying ability, financial strength or credit ratings; (16) a deterioration in the experience of the “closed block” established in connection with the reorganization of Metropolitan Life Insurance Company; (17) availability and effectiveness of reinsurance or indemnification arrangements, as well as any default or failure of counterparties to perform; (18) differences between actual claims experience and underwriting and reserving assumptions; (19) ineffectiveness of risk management policies and procedures; (20) catastrophe losses; (21) increasing cost and limited market capacity for statutory life insurance reserve financings; (22) heightened competition, including with respect to pricing, entry of new competitors, consolidation of distributors, the development of new products by new and existing competitors, and for personnel; (23) exposure to losses related to variable annuity guarantee benefits, including from significant and sustained downturns or extreme volatility in equity markets, reduced interest rates, unanticipated policyholder behavior, mortality or longevity, and the adjustment for nonperformance risk; (24) our ability to address difficulties, unforeseen liabilities, asset impairments, or rating agency actions arising from business acquisitions and integrating and managing the growth of such acquired businesses, or arising from dispositions of businesses or legal entity reorganizations; (25) regulatory and other restrictions affecting MetLife, Inc.’s ability to pay dividends and repurchase common stock; (26) MetLife, Inc.’s primary reliance, as a holding company, on dividends from its subsidiaries to meet debt payment obligations and the applicable regulatory restrictions on the ability of the subsidiaries to pay such dividends; (27) the possibility that MetLife, Inc.’s Board of Directors may influence the outcome of stockholder votes through the voting provisions of the MetLife Policyholder Trust; (28) changes in accounting standards, practices and/or policies; (29) increased expenses relating to pension and postretirement benefit plans, as well as health care and other employee benefits; (30) inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others; (31) inability to attract and retain sales representatives; (32) provisions of laws and our incorporation documents may delay, deter or prevent takeovers and corporate combinations involving MetLife; (33) the effects of business disruption or economic contraction due to disasters such as terrorist attacks, cyberattacks, other hostilities, or natural catastrophes, including any related impact on the value of our investment portfolio, our disaster recovery systems, cyber- or other information security systems and management continuity planning; (34) the effectiveness of our programs and practices in avoiding giving our associates incentives to take excessive risks; and (35) other risks and uncertainties described from time to time in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission.
MetLife, Inc. does not undertake any obligation to publicly correct or update any forward-looking statement if MetLife, Inc. later becomes aware that such statement is not likely to be achieved. Please consult any further disclosures MetLife, Inc. makes on related subjects in reports to the U.S. Securities and Exchange Commission.
Corporate Information
We announce financial and other information about MetLife to our investors through the MetLife Investor Relations web page at www.metlife.com, as well as U.S. Securities and Exchange Commission filings, press releases, public conference calls and webcasts. MetLife encourages investors to visit the Investor Relations web page from time to time, as information is updated and new information is posted. The information found on our website is not incorporated by reference into this Quarterly Report on Form 10-Q or in any other report or document we file with the U.S. Securities and Exchange Commission, and any references to our website are intended to be inactive textual references only.
Note Regarding Reliance on Statements in Our Contracts
See “Exhibit Index — Note Regarding Reliance on Statements in Our Contracts” for information regarding agreements included as exhibits to this Quarterly Report on Form 10-Q.

2
Table of Contents
Part I — Financial Information
Item 1. Financial Statements
MetLife, Inc.
Interim Condensed Consolidated Balance Sheets
September 30, 2015 (Unaudited) and December 31, 2014
(In millions, except share and per share data)



 
 
September 30, 2015
 
December 31, 2014
Assets
 
 
 
 
Investments:
 
 
 
 
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $329,203 and $334,780, respectively; includes $4,293 and $4,266, respectively, relating to variable interest entities)
 
$
351,578

 
$
365,425

Equity securities available-for-sale, at estimated fair value (cost: $3,096 and $3,076, respectively)
 
3,399

 
3,631

Fair value option and trading securities, at estimated fair value (includes $696 and $704, respectively, of actively traded securities; and $14 and $60, respectively, relating to variable interest entities)
 
15,361

 
16,689

Mortgage loans (net of valuation allowances of $311 and $305, respectively; includes $290 and $280, respectively, at estimated fair value, relating to variable interest entities; includes $315 and $308, respectively, under the fair value option)
 
63,553

 
60,118

Policy loans (includes $4 and $3, respectively, relating to variable interest entities)
 
11,549

 
11,618

Real estate and real estate joint ventures (includes $0 and $8, respectively, relating to variable interest entities; includes $905 and $172, respectively, of real estate held-for-sale)
 
9,923

 
10,525

Other limited partnership interests (includes $27 and $34, respectively, relating to variable interest entities)
 
7,901

 
8,085

Short-term investments, principally at estimated fair value (includes $26 and $20, respectively, relating to variable interest entities)
 
14,957

 
8,621

Other invested assets, principally at estimated fair value (includes $43 and $56, respectively, relating to variable interest entities)
 
23,356

 
21,283

Total investments
 
501,577

 
505,995

Cash and cash equivalents, principally at estimated fair value (includes $48 and $57, respectively, relating to variable interest entities)
 
10,216

 
10,808

Accrued investment income (includes $26 and $21, respectively, relating to variable interest entities)
 
4,187

 
4,120

Premiums, reinsurance and other receivables (includes $21 and $21, respectively, relating to variable interest entities)
 
25,808

 
22,244

Deferred policy acquisition costs and value of business acquired (includes $230 and $235, respectively, relating to variable interest entities)
 
23,996

 
24,442

Goodwill
 
9,546

 
9,872

Other assets (includes $146 and $134, respectively, relating to variable interest entities)
 
7,881

 
7,862

Separate account assets (includes $1,056 and $1,128, respectively, relating to variable interest entities)
 
299,249

 
316,994

Total assets
 
$
882,460

 
$
902,337

Liabilities and Equity
 
 
 
 
Liabilities
 
 
 
 
Future policy benefits (includes $670 and $579, respectively, relating to variable interest entities)
 
$
190,754

 
$
189,586

Policyholder account balances (includes $21 and $33, respectively, relating to variable interest entities)
 
202,291

 
209,294

Other policy-related balances (includes $225 and $198, respectively, relating to variable interest entities)
 
14,521

 
14,422

Policyholder dividends payable
 
716

 
684

Policyholder dividend obligation
 
2,309

 
3,155

Payables for collateral under securities loaned and other transactions
 
37,991

 
35,326

Short-term debt
 
100

 
100

Long-term debt (includes $162 and $151, respectively, at estimated fair value, relating to variable interest entities)
 
16,755

 
16,286

Collateral financing arrangements
 
4,152

 
4,196

Junior subordinated debt securities
 
3,194

 
3,193

Current income tax payable
 
21

 
184

Deferred income tax liability
 
11,363

 
11,821

Other liabilities (includes $71 and $80, respectively, relating to variable interest entities)
 
27,977

 
24,437

Separate account liabilities (includes $1,056 and $1,128, respectively, relating to variable interest entities)
 
299,249

 
316,994

Total liabilities
 
811,393

 
829,678

Contingencies, Commitments and Guarantees (Note 14)
 

 

Redeemable noncontrolling interests in partially-owned consolidated subsidiaries
 
79

 
99

Equity
 
 
 
 
MetLife, Inc.’s stockholders’ equity:
 
 
 
 
Preferred stock, par value $0.01 per share; $2,100 aggregate liquidation preference
 
—

 
1

Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,159,310,431 and 1,153,998,144 shares issued, respectively; 1,114,764,365 and 1,131,927,894 shares outstanding, respectively
 
12

 
12

Additional paid-in capital
 
30,726

 
30,543

Retained earnings
 
35,153

 
32,020

Treasury stock, at cost; 44,546,066 and 22,070,250 shares, respectively
 
(2,279
)
 
(1,172
)
Accumulated other comprehensive income (loss)
 
6,891

 
10,649

Total MetLife, Inc.’s stockholders’ equity
 
70,503

 
72,053

Noncontrolling interests
 
485

 
507

Total equity
 
70,988

 
72,560

Total liabilities and equity
 
$
882,460

 
$
902,337

See accompanying notes to the interim condensed consolidated financial statements.

3
Table of Contents
MetLife, Inc.
Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
For the Three Months and Nine Months Ended September 30, 2015 and 2014 (Unaudited)
(In millions, except per share data)

 
 
Three Months 
 Ended 
 September 30,
 
Nine Months 
 Ended 
 September 30,
 
 
2015
 
2014
 
2015
 
2014
Revenues
 
 
 
 
 
 
 
 
Premiums
 
$
10,375

 
$
9,703

 
$
28,940

 
$
28,795

Universal life and investment-type product policy fees
 
2,346

 
2,628

 
7,174

 
7,507

Net investment income
 
3,959

 
5,410

 
14,367

 
15,704

Other revenues
 
484

 
518

 
1,497

 
1,486

Net investment gains (losses):
 
 
 
 
 
 
 
 
Other-than-temporary impairments on fixed maturity securities
 
(43
)
 
(17
)
 
(51
)
 
(40
)
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss)
 
16

 
(14
)
 
4

 
(16
)
Other net investment gains (losses)
 
409

 
140

 
582

 
(371
)
Total net investment gains (losses)
 
382

 
109

 
535

 
(427
)
Net derivative gains (losses)
 
485

 
478

 
394

 
1,132

Total revenues
 
18,031

 
18,846

 
52,907

 
54,197

Expenses
 
 
 
 
 
 
 
 
Policyholder benefits and claims
 
10,334

 
9,512

 
28,943

 
28,824

Interest credited to policyholder account balances
 
647

 
1,817

 
3,940

 
4,995

Policyholder dividends
 
354

 
347

 
1,024

 
1,047

Other expenses
 
4,533

 
4,218

 
12,665

 
12,603

Total expenses
 
15,868

 
15,894

 
46,572

 
47,469

Income (loss) from continuing operations before provision for income tax
 
2,163

 
2,952

 
6,335

 
6,728

Provision for income tax expense (benefit)
 
965

 
858

 
1,855

 
1,916

Income (loss) from continuing operations, net of income tax
 
1,198

 
2,094


4,480


4,812

Income (loss) from discontinued operations, net of income tax
 
—

 
—

 
—

 
(3
)
Net income (loss)
 
1,198

 
2,094

 
4,480

 
4,809

Less: Net income (loss) attributable to noncontrolling interests
 
(5
)
 
—

 
4

 
21

Net income (loss) attributable to MetLife, Inc.
 
1,203

 
2,094

 
4,476

 
4,788

Less: Preferred stock dividends
 
6

 
30

 
67

 
91

Preferred stock repurchase premium
 
—

 
—

 
42

 
—

Net income (loss) available to MetLife, Inc.’s common shareholders
 
$
1,197

 
$
2,064

 
$
4,367

 
$
4,697

Comprehensive income (loss)
 
$
1,653

 
$
1,972

 
$
760

 
$
10,682

Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax
 
2

 
(56
)
 
42

 
6

Comprehensive income (loss) attributable to MetLife, Inc.
 
$
1,651

 
$
2,028

 
$
718

 
$
10,676

Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders per common share:
 
 
 
 
 
 
 
 
Basic
 
$
1.07

 
$
1.83

 
$
3.90

 
$
4.17

Diluted
 
$
1.06

 
$
1.81

 
$
3.86

 
$
4.12

Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
 
 
 
 
 
 
 
 
Basic
 
$
1.07

 
$
1.83

 
$
3.90

 
$
4.17

Diluted
 
$
1.06

 
$
1.81

 
$
3.86

 
$
4.12

Cash dividends declared per common share
 
$
0.375

 
$
0.350

 
$
1.100

 
$
0.975

See accompanying notes to the interim condensed consolidated financial statements.


4
Table of Contents

MetLife, Inc.
Interim Condensed Consolidated Statements of Equity
For the Nine Months Ended September 30, 2015 and 2014 (Unaudited)
(In millions)
 
 
Preferred
Stock
 
Common
Stock
 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Treasury
Stock
at Cost
 
Accumulated Other Comprehensive Income (Loss)
 
Total
MetLife, Inc.’s
Stockholders’
Equity
 
Noncontrolling
Interests (1)
 
Total
Equity
Balance at December 31, 2014
 
$
1

 
$
12

 
$
30,543

 
$
32,020

 
$
(1,172
)
 
$
10,649

 
$
72,053

 
$
507

 
$
72,560

Repurchase of preferred stock
 
(1
)
 
 
 
(1,459
)
 
 
 
 
 
 
 
(1,460
)
 
 
 
(1,460
)
Preferred stock repurchase premium
 
 
 
 
 
 
 
(42
)
 
 
 
 
 
(42
)
 
 
 
(42
)
Preferred stock issuance
 
—

 
 
 
1,483

 
 
 
 
 
 
 
1,483

 
 
 
1,483

Treasury stock acquired in connection with share repurchases
 
 
 

 


 
 
 
(1,107
)
 
 
 
(1,107
)
 
 
 
(1,107
)
Stock-based compensation
 
 
 
 
 
159

 
 
 
 
 
 
 
159

 
 
 
159

Dividends on preferred stock
 
 
 
 
 
 
 
(67
)
 
 
 
 
 
(67
)
 
 
 
(67
)
Dividends on common stock
 
 
 
 
 
 
 
(1,234
)
 
 
 
 
 
(1,234
)
 
 
 
(1,234
)
Change in equity of noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
 
—

 
(64
)
 
(64
)
Net income (loss)
 
 
 
 
 
 
 
4,476

 
 
 
 
 
4,476

 
4

 
4,480

Other comprehensive income (loss), net of income tax
 
 
 
 
 
 
 
 
 
 
 
(3,758
)
 
(3,758
)
 
38

 
(3,720
)
Balance at September 30, 2015
 
$
—

 
$
12

 
$
30,726

 
$
35,153

 
$
(2,279
)
 
$
6,891

 
$
70,503

 
$
485

 
$
70,988

 
 
Preferred
Stock
 
Common
Stock
 
Additional Paid-in Capital
 
Retained
Earnings
 
Treasury
Stock
at Cost
 
Accumulated Other Comprehensive Income (Loss)
 
Total
MetLife, Inc.’s
Stockholders’
Equity
 
Noncontrolling
Interests (1)
 
Total
Equity
Balance at December 31, 2013
 
$
1

 
$
11

 
$
29,277

 
$
27,332

 
$
(172
)
 
$
5,104

 
$
61,553

 
$
543

 
$
62,096

Treasury stock acquired in connection with share repurchases
 
 
 
 
 
 
 
 
 
(443
)
 
 
 
(443
)
 
 
 
(443
)
Stock-based compensation
 
 
 
 
 
211

 
 
 
 
 
 
 
211

 
 
 
211

Dividends on preferred stock
 
 
 
 
 
 
 
(91
)
 
 
 
 
 
(91
)
 
 
 
(91
)
Dividends on common stock
 
 
 
 
 
 
 
(1,101
)
 
 
 
 
 
(1,101
)
 
 
 
(1,101
)
Change in equity of noncontrolling interests
 
 
 
 
 


 
 
 
 
 
 
 
—

 
(55
)
 
(55
)
Net income (loss)
 
 
 
 
 
 
 
4,788

 
 
 
 
 
4,788

 
21

 
4,809

Other comprehensive income (loss), net of income tax
 
 
 
 
 
 
 
 
 
 
 
5,888

 
5,888

 
(15
)
 
5,873

Balance at September 30, 2014
 
$
1

 
$
11

 
$
29,488

 
$
30,928

 
$
(615
)
 
$
10,992

 
$
70,805

 
$
494

 
$
71,299

__________________
(1)
Net income (loss) attributable to noncontrolling interests excludes losses of redeemable noncontrolling interests in partially-owned consolidated subsidiaries of less than $1 million at both September 30, 2015 and 2014.
See accompanying notes to the interim condensed consolidated financial statements.

5
Table of Contents
MetLife, Inc.
Interim Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2015 and 2014 (Unaudited)
(In millions)

 
Nine Months 
 Ended 
 September 30,
 
2015
 
2014
Net cash provided by (used in) operating activities
$
9,527

 
$
10,950

Cash flows from investing activities
 
 
 
Sales, maturities and repayments of:
 
 
 
Fixed maturity securities
109,308

 
85,187

Equity securities
478

 
455

Mortgage loans
9,775

 
10,917

Real estate and real estate joint ventures
1,644

 
532

Other limited partnership interests
859

 
555

Purchases of:
 
 
 
Fixed maturity securities
(105,128
)
 
(94,085
)
Equity securities
(431
)
 
(455
)
Mortgage loans
(13,814
)
 
(11,772
)
Real estate and real estate joint ventures
(977
)
 
(1,382
)
Other limited partnership interests
(935
)
 
(1,338
)
Cash received in connection with freestanding derivatives
2,376

 
977

Cash paid in connection with freestanding derivatives
(2,887
)
 
(2,530
)
Cash received under repurchase agreements (Note 5)
199

 
—

Cash paid under reverse repurchase agreements (Note 5)
(199
)
 
—

Sales of businesses, net of cash and cash equivalents disposed of $0 and $262, respectively
—

 
452

Purchases of investments in insurance joint ventures
—

 
(277
)
Net change in policy loans
10

 
(19
)
Net change in short-term investments
(6,644
)
 
1,496

Net change in other invested assets
(350
)
 
(251
)
Other, net
(191
)
 
(131
)
Net cash provided by (used in) investing activities
(6,907
)
 
(11,669
)
Cash flows from financing activities
 
 
 
Policyholder account balances:
 
 
 
Deposits
69,383

 
73,855

Withdrawals
(72,940
)
 
(71,301
)
Net change in payables for collateral under securities loaned and other transactions
2,664

 
3,481

Net change in short-term debt
—

 
(75
)
Long-term debt issued
1,578

 
1,000

Long-term debt repaid
(1,078
)
 
(2,802
)
Collateral financing arrangements repaid
(44
)
 
—

Cash received (paid) in connection with collateral financing arrangements
6

 
—

Treasury stock acquired in connection with share repurchases
(1,107
)
 
(443
)
Preferred stock issued, net of issuance costs
1,483

 
—

Repurchase of preferred stock
(1,460
)
 
—

Preferred stock repurchase premium
(42
)
 
—

Dividends on preferred stock
(67
)
 
(91
)
Dividends on common stock
(1,234
)
 
(1,101
)
Other, net
6

 
(546
)
Net cash provided by (used in) financing activities
(2,852
)
 
1,977

Effect of change in foreign currency exchange rates on cash and cash equivalents balances
(360
)
 
(60
)
Change in cash and cash equivalents
(592
)
 
1,198

Cash and cash equivalents, beginning of period
10,808

 
7,585

Cash and cash equivalents, end of period
$
10,216

 
$
8,783

Supplemental disclosures of cash flow information
 
 
 
Net cash paid (received) for:
 
 
 
Interest
$
836

 
$
841

Income tax
$
904

 
$
413

Non-cash transactions:
 
 
 
Fixed maturity securities received in connection with pension closeout transactions
$
903

 
$
—

Deconsolidation of MetLife Core Property Fund:
 
 
 
Reduction of redeemable noncontrolling interests
$
—

 
$
774

Reduction of long-term debt
$
—

 
$
413

Reduction of real estate and real estate joint ventures
$
—

 
$
1,132

See accompanying notes to the interim condensed consolidated financial statements.

6
Table of Contents
MetLife, Inc.
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited)

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 a global provider of life insurance, annuities, employee benefits and asset management. MetLife is organized into six segments: Retail; Group, Voluntary & Worksite Benefits; Corporate Benefit Funding; and Latin America (collectively, the “Americas”); Asia; and Europe, the Middle East and Africa (“EMEA”).
Basis of Presentation
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from estimates.
The accompanying interim condensed consolidated financial statements include the accounts of MetLife, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated.
Certain international subsidiaries have a fiscal year cutoff of November 30th. Accordingly, the Company’s interim condensed consolidated financial statements reflect the assets and liabilities of such subsidiaries as of August 31, 2015 and November 30, 2014 and the operating results of such subsidiaries for the three months and nine months ended August 31, 2015 and 2014.
The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations, but does not have a controlling financial interest. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations.
Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the 2015 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements.
The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2014 consolidated balance sheet data was derived from audited consolidated financial statements included in MetLife, Inc.’s Annual Report on Form 10‑K for the year ended December 31, 2014, as revised by MetLife, Inc.’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (“SEC”) on May 21, 2015 (as revised, the “2014 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2014 Annual Report.
Adoption of New Accounting Pronouncements
Effective January 1, 2015, the Company adopted guidance requiring repurchase-to-maturity transactions and repurchase financing arrangements to be accounted for as secured borrowings and providing for enhanced disclosures, including the nature of collateral pledged and the time to maturity. Certain interim period disclosures for repurchase agreements and securities lending transactions were not required until the second quarter of 2015. The Company has provided these enhanced disclosures in Note 5. The adoption of this new guidance did not have a material impact on the Company’s consolidated financial statements.

7
Table of Contents
MetLife, Inc.
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (Continued)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Future Adoption of New Accounting Pronouncements
In May 2015, the Financial Accounting Standards Board (“FASB”) issued new guidance on short-duration insurance contracts (Accounting Standards Update (“ASU”) 2015-09, Financial Services - Insurance (Topic 944): Disclosures about Short-Duration Contracts). The amendments in this new guidance are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. The new guidance should be applied retrospectively by providing comparative disclosures for each period presented, except for those requirements that apply only to the current period. The new guidance requires insurance entities to provide users of financial statements with more transparent information about initial claim estimates and subsequent adjustments to these estimates, including information on: (i) reconciling from the claim development table to the balance sheet liability, (ii) methodologies and judgments in estimating claims, and (iii) the timing, and frequency of claims. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
In May 2015, the FASB issued new guidance on fair value measurement (ASU 2015‑07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)), effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years and which should be applied retrospectively to all periods presented. Earlier application is permitted. The new amendments in this ASU remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value (“NAV”) per share practical expedient. In addition, the amendments remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
In April 2015, the FASB issued new guidance on accounting for fees paid in a cloud computing arrangement (ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement), effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the new guidance is permitted and an entity can elect to adopt the guidance either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. The new guidance provides that all software licenses included in cloud computing arrangements be accounted for consistent with other licenses of intangible assets. However, if a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract, the accounting for which did not change. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
In February 2015, the FASB issued certain amendments to the consolidation analysis to improve consolidation guidance for legal entities (ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis), effective for fiscal years beginning after December 15, 2015 and interim periods within those years and early adoption is permitted. The new standard is intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The amendments in this ASU affect the consolidation evaluation for reporting organizations. In addition, the amendments in this ASU simplify and improve current GAAP by reducing the number of consolidation models. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
In May 2014, the FASB issued a comprehensive new revenue recognition standard (ASU 2014-09, Revenue from Contracts with Customers (Topic 606)), effective for fiscal years beginning after December 15, 2016 and interim periods within those years and should be applied retrospectively. In July 2015, the FASB voted to defer the effective date of this ASU by one year, effective for fiscal years beginning after December 15, 2017. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The new guidance will supersede nearly all existing revenue recognition guidance under GAAP; however, it will not impact the accounting for insurance contracts, leases, financial instruments and guarantees. For those contracts that are impacted by the new guidance, the guidance will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
2. Segment Information
MetLife is organized into six segments, reflecting three broad geographic regions: Retail; Group, Voluntary & Worksite Benefits; Corporate Benefit Funding; and Latin America (collectively, the “Americas”); Asia; and EMEA. In addition, the Company reports certain of its results of operations in Corporate & Other.

8
Table of Contents
MetLife, Inc.
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (Continued)
2. Segment Information (continued)

In the first quarter of 2015, the Company implemented certain segment reporting changes related to the (i) measurement of segment operating earnings, which included revising the Company’s capital allocation methodology, and (ii) the realignment of consumer direct business. These changes were applied retrospectively and did not have an impact on total consolidated operating earnings or net income.
Americas
The Americas consists of the following segments:
Retail
The Retail segment offers a broad range of protection products and services and a variety of annuities to individuals and employees of corporations and other institutions, and is organized into two businesses: Life & Other and Annuities. Life & Other insurance products and services include variable life, universal life, term life and whole life products. Additionally, through broker-dealer affiliates, the Company offers a full range of mutual funds and other securities products. Life & Other products and services also include individual disability income products and personal lines property & casualty insurance, including private passenger automobile, homeowners and personal excess liability insurance. Annuities includes a variety of variable and fixed annuities which provide for both asset accumulation and asset distribution needs.
Group, Voluntary & Worksite Benefits
The Group, Voluntary & Worksite Benefits segment offers a broad range of protection products and services to individuals and corporations, as well as other institutions and their respective employees. Group, Voluntary & Worksite Benefits insurance products and services include life, dental, group short- and long-term disability and accidental death and dismemberment (“AD&D”) coverages. In addition, the Group, Voluntary & Worksite Benefits segment offers property & casualty insurance, including private passenger automobile, homeowners and personal excess liability, which is offered to employees on a voluntary basis, long-term care, critical illness and accident & health coverages, as well as prepaid legal plans.
Corporate Benefit Funding
The Corporate Benefit Funding segment offers a broad range of annuity and investment products, including guaranteed interest products and other stable value products, income annuities and separate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes structured settlements and certain products to fund postretirement benefits and company-, bank- or trust-owned life insurance used to finance non-qualified benefit programs for executives.
Latin America
The Latin America segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, accident & health insurance, group medical, dental, credit insurance, endowment and retirement & savings products written in Latin America. The Latin America segment also includes U.S. direct business, comprised of group and individual products sold through sponsoring organizations, affinity groups and direct to consumer. Products included are life, dental, group short- and long-term disability, AD&D coverages, property & casualty and other accident & health coverages, as well as non-insurance products such as identity protection.
Asia
The Asia segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include whole life, term life, variable life, universal life, accident & health insurance, fixed and variable annuities, credit insurance and endowment products.
EMEA
The EMEA segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, accident & health insurance, credit insurance, annuities, endowment and retirement & savings products.

9
Table of Contents
MetLife, Inc.
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (Continued)
2. Segment Information (continued)

Corporate & Other
Corporate & Other contains the excess capital, as well as certain charges and activities, not allocated to the segments, including external integration costs, internal resource costs for associates committed to acquisitions, enterprise-wide strategic initiative restructuring charges, various start-up businesses (including expatriate benefits insurance and the investment management business through which the Company offers fee-based investment management services to institutional clients) and certain run-off businesses. Corporate & Other also includes assumed reinsurance of certain variable annuity products from the Company’s former operating joint venture in Japan. Under this in-force reinsurance agreement, the Company reinsures living and death benefit guarantees issued in connection with variable annuity products. Additionally, Corporate & Other includes interest expense related to the majority of the Company’s outstanding debt and expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes the elimination of intersegment amounts, which generally relate to intersegment loans, which bear interest rates commensurate with related borrowings.
Financial Measures and Segment Accounting Policies
Operating earnings is the measure of segment profit or loss the Company uses to evaluate segment performance and allocate resources. Consistent with GAAP guidance for segment reporting, operating earnings is the Company’s measure of segment performance and is reported below. Operating earnings should not be viewed as a substitute for income (loss) from continuing operations, net of income tax. The Company believes the presentation of operating 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.
Operating earnings is defined as operating revenues less operating expenses, both net of income tax.
Operating revenues and operating expenses exclude results of discontinued operations and other businesses that have been or will be sold or exited by MetLife and are referred to as divested businesses. Operating revenues also excludes net investment gains (losses) and net derivative gains (losses). Operating expenses also excludes goodwill impairments.
The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues:
•
Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity guaranteed minimum income benefits (“GMIBs”) fees (“GMIB Fees”);
•
Net investment income: (i) includes amounts for scheduled periodic settlement payments 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) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iv) excludes certain amounts related to contractholder-directed unit-linked investments, and (v) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and
•
Other revenues are adjusted for settlements of foreign currency earnings hedges.

10
Table of Contents
MetLife, Inc.
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (Continued)
2. Segment Information (continued)

The following additional adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses:
•
Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass through adjustments, (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”), and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”);
•
Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments;
•
Amortization of deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments;
•
Amortization of negative VOBA excludes amounts related to Market Value Adjustments;
•
Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and
•
Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) acquisition and integration costs.
Operating 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. In addition to the tax impact of the adjustments mentioned above, provision for income tax expense (benefit) also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.
In the first quarter of 2015, the Company implemented certain segment reporting changes related to the (i) measurement of segment operating earnings, which included revising the Company’s capital allocation methodology, and (ii) the realignment of consumer direct business. Consequently, prior period results for the three months and nine months ended September 30, 2014 were impacted as follows:
•
Retail’s operating earnings increased (decreased) by $86 million and $135 million, net of ($111) million and ($200) million of income tax expense (benefit), respectively;
•
Group, Voluntary & Worksite Benefits’ operating earnings increased (decreased) by $4 million and $10 million, net of ($2) million and $2 million of income tax expense (benefit), respectively;
•
Corporate Benefit Funding’s operating earnings increased (decreased) by ($13) million and ($39) million, net of ($10) million and ($32) million of income tax expense (benefit), respectively;
•
Latin America’s operating earnings increased (decreased) by ($30) million and ($79) million, net of ($16) million and ($46) million of income tax expense (benefit), respectively;
•
Asia’s operating earnings increased (decreased) by $4 million and $14 million, net of $3 million and $5 million of income tax expense (benefit), respectively;
•
EMEA’s operating earnings increased (decreased) by ($18) million and ($56) million, net of ($13) million and ($31) million of income tax expense (benefit), respectively; and
•
Corporate & Other’s operating earnings increased (decreased) by ($33) million and $15 million, net of $149 million and $302 million of income tax expense (benefit), respectively.
Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the three months and nine months ended September 30, 2015 and 2014. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for operating earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

11
Table of Contents
MetLife, Inc.
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (Continued)
2. Segment Information (continued)

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, operating earnings or income (loss) from continuing operations, net of income tax.
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.

12
Table of Contents
MetLife, Inc.
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (Continued)
2. Segment Information (continued)

 
 
Operating Results
 
 
 
 
 
 
Americas
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2015
 
Retail
 
Group,
Voluntary
& Worksite
Benefits
 
Corporate
Benefit
Funding
 
Latin
America
 
Total
 
Asia
 
EMEA
 
Corporate
& Other
 
Total
 
Adjustments
 
Total
Consolidated
 
 
(In millions)
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
 
$
1,806

 
$
4,092

 
$
1,555

 
$
668

 
$
8,121

 
$
1,736

 
$
501

 
$
18

 
$
10,376

 
$
(1
)
 
$
10,375

Universal life and investment-type product policy fees
 
1,229

 
188

 
55

 
261

 
1,733

 
382

 
106

 
26

 
2,247

 
99

 
2,346

Net investment income
 
1,930

 
485

 
1,391

 
279

 
4,085

 
670

 
82

 
12

 
4,849

 
(890
)
 
3,959

Other revenues
 
241

 
113

 
70

 
11

 
435

 
26

 
11

 
23

 
495

 
(11
)
 
484

Net investment gains (losses)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
382

 
382

Net derivative gains (losses)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
485

 
485

Total revenues
 
5,206

 
4,878

 
3,071

 
1,219

 
14,374

 
2,814

 
700

 
79

 
17,967

 
64

 
18,031

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policyholder benefits and claims and policyholder dividends
 
2,607

 
3,805

 
2,154

 
630

 
9,196

 
1,331

 
233

 
20

 
10,780

 
(92
)
 
10,688

Interest credited to policyholder account balances
 
550

 
39

 
295

 
88

 
972

 
327

 
27

 
5

 
1,331

 
(684
)
 
647

Capitalization of DAC
 
(266
)
 
(41
)
 
(1
)
 
(105
)
 
(413
)
 
(435
)
 
(107
)
 
—

 
(955
)
 
—

 
(955
)
Amortization of DAC and VOBA
 
432

 
40

 
6

 
57

 
535

 
309

 
127

 
—

 
971

 
160

 
1,131

Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
(77
)
 
(5
)
 
—

 
(82
)
 
(8
)
 
(90
)
Interest expense on debt
 
(1
)
 
—

 
1

 
—

 
—

 
—

 
—

 
294

 
294

 
8

 
302

Other expenses
 
1,197

 
666

 
113

 
410

 
2,386

 
896

 
352

 
492

 
4,126

 
19

 
4,145

Total expenses
 
4,519

 
4,509

 
2,568

 
1,080

 
12,676

 
2,351

 
627

 
811

 
16,465

 
(597
)
 
15,868

Provision for income tax expense (benefit)
 
164

 
131

 
177

 
(37
)
 
435

 
125

 
7

 
224

 
791

 
174

 
965

Operating earnings
 
$
523

 
$
238

 
$
326

 
$
176

 
$
1,263

 
$
338

 
$
66

 
$
(956
)
 
711

 
 
 
 
Adjustments to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
64

 
 
 
 
Total expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
597

 
 
 
 
Provision for income tax (expense) benefit
 
(174
)
 
 
 
 
Income (loss) from continuing operations, net of income tax
 
$
1,198

 
 
 
$
1,198


13
Table of Contents
MetLife, Inc.
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (Continued)
2. Segment Information (continued)

 
 
Operating Results
 
 
 
 
 
 
Americas
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2014
 
Retail
 
Group,
Voluntary
& Worksite
Benefits
 
Corporate
Benefit
Funding
 
Latin
America
 
Total
 
Asia
 
EMEA
 
Corporate
& Other
 
Total
 
Adjustments
 
Total
Consolidated
 
 
(In millions)
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
 
$
1,869

 
$
4,010

 
$
451

 
$
812

 
$
7,142

 
$
1,939

 
$
581

 
$
23

 
$
9,685

 
$
18

 
$
9,703

Universal life and investment-type product policy fees
 
1,311

 
180

 
60

 
328

 
1,879

 
487

 
127

 
29

 
2,522

 
106

 
2,628

Net investment income
 
1,965

 
475

 
1,464

 
317

 
4,221

 
738

 
109

 
125

 
5,193

 
217

 
5,410

Other revenues
 
275

 
103

 
71

 
7

 
456

 
27

 
22

 
13

 
518

 
—

 
518

Net investment gains (losses)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
109

 
109

Net derivative gains (losses)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
478

 
478

Total revenues
 
5,420

 
4,768

 
2,046

 
1,464

 
13,698

 
3,191

 
839

 
190

 
17,918

 
928

 
18,846

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policyholder benefits and claims and policyholder dividends
 
2,555

 
3,729

 
1,033

 
735

 
8,052

 
1,535

 
252

 
15

 
9,854

 
5

 
9,859

Interest credited to policyholder account balances
 
567

 
38

 
279

 
97

 
981

 
394

 
43

 
8

 
1,426

 
391

 
1,817

Capitalization of DAC
 
(239
)
 
(37
)
 
(11
)
 
(112
)
 
(399
)
 
(507
)
 
(165
)
 
—

 
(1,071
)
 
—

 
(1,071
)
Amortization of DAC and VOBA
 
335

 
38

 
5

 
102

 
480

 
367

 
152

 
—

 
999

 
55

 
1,054

Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
(89
)
 
(7
)
 
—

 
(96
)
 
(11
)
 
(107
)
Interest expense on debt
 
(1
)
 
—

 
2

 
—

 
1

 
—

 
—

 
291

 
292

 
3

 
295

Other expenses
 
1,163

 
634

 
133

 
450

 
2,380

 
1,027

 
463

 
133

 
4,003

 
44

 
4,047

Total expenses
 
4,380

 
4,402

 
1,441

 
1,272

 
11,495

 
2,727

 
738

 
447

 
15,407

 
487

 
15,894

Provision for income tax expense (benefit)
 
255

 
125

 
210

 
70

 
660

 
154

 
23

 
(181
)
 
656

 
202

 
858

Operating earnings
 
$
785

 
$
241

 
$
395

 
$
122

 
$
1,543

 
$
310

 
$
78

 
$
(76
)
 
1,855

 
 
 
 
Adjustments to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
928

 
 
 
 
Total expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(487
)
 
 
 
 
Provision for income tax (expense) benefit
 
(202
)
 
 
 
 
Income (loss) from continuing operations, net of income tax
 
$
2,094

 
 
 
$
2,094


14
Table of Contents
MetLife, Inc.
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (Continued)
2. Segment Information (continued)



Operating Results






Americas












Nine Months Ended September 30, 2015

Retail

Group,
Voluntary
& Worksite
Benefits

Corporate
Benefit
Funding

Latin
America

Total

Asia

EMEA

Corporate
& Other

Total

Adjustments

Total
Consolidated


(In millions)
Revenues






















Premiums

$
5,302


$
12,313


$
2,292


$
2,150


$
22,057


$
5,297


$
1,534


$
54


$
28,942


$
(2
)

$
28,940

Universal life and investment-type product policy fees

3,717


559


168


856


5,300


1,179


322


75


6,876


298


7,174

Net investment income

5,913


1,444


4,347


780


12,484


2,033


249


250


15,016


(649
)

14,367

Other revenues

755


340


218


28


1,341


82


40


62


1,525