MetLife 2001 Annual Report Download - page 59

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METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Net Unrealized Investment Gains (Losses)
The components of net unrealized investment gains (losses), included in accumulated other comprehensive income (loss), were as follows:
Years ended December 31,
2001 2000 1999
(Dollars in millions)
Fixed maturities*************************************************************************** $ 3,110 $ 1,677 $(1,828)
Equity securities ************************************************************************** 604 744 875
Derivatives ******************************************************************************* 71 — —
Other invested assets ********************************************************************* 58 58 153
Total ******************************************************************************** 3,843 2,479 (800)
Amounts allocable to:
Future policy benefit loss recognition ******************************************************* (30) (284) (249)
Deferred policy acquisition costs ********************************************************** (21) 119 709
Participating contracts ******************************************************************* (127) (133) (118)
Policyholder dividend obligation *********************************************************** (707) (385) —
Deferred income taxes********************************************************************* (1,079) (621) 161
Total ******************************************************************************** (1,964) (1,304) 503
Net unrealized investment gains (losses) ********************************************** $ 1,879 $ 1,175 $ (297)
The changes in net unrealized investment gains (losses) were as follows:
Years ended December 31,
2001 2000 1999
(Dollars in millions)
Balance at January 1 *********************************************************************** $1,175 $ (297) $ 1,540
Unrealized investment gains (losses) during the year ********************************************* 1,364 3,279 (6,583)
Unrealized investment gains (losses) relating to:
Future policy benefit (loss) gain recognition *************************************************** 254 (35) 1,999
Deferred policy acquisition costs *********************************************************** (140) (590) 1,628
Participating contracts ******************************************************************** 6 (15) 94
Policyholder dividend obligation ************************************************************ (322) (385) —
Deferred income taxes********************************************************************** (458) (782) 1,025
Balance at December 31 ******************************************************************* $1,879 $1,175 $ (297)
Net change in unrealized investment gains (losses) ********************************************** $ 704 $1,472 $(1,837)
4. Derivative Instruments
The table below provides a summary of the carrying value, notional amount and current market or fair value of derivative financial instruments held at
December 31, 2001 and 2000:
2001 2000
Current Market Current Market
or Fair Value or Fair Value
Carrying Notional Carrying Notional
Value Amount Assets Liabilities Value Amount Assets Liabilities
(Dollars in millions)
Financial futures ********************************************** $— $ — $— $— $23 $ 254 $23 $—
Interest rate swaps******************************************** 70 1,849 79 9 41 1,450 41 1
Floors******************************************************* 11 325 11 — — 325 3 —
Caps ******************************************************* 5 7,890 5 — — 9,950 — —
Foreign currency swaps *************************************** 162 1,925 188 26 (1) 1,449 114 44
Exchange traded options*************************************** (12) 1,857 — 12 1 9 1 —
Forward exchange contracts************************************ 4674—— ———
Written covered call options ************************************ —40——— 40——
Credit default swaps ****************************************** — 270—— — ———
Total contractual commitments ********************************** $240 $14,223 $287 $47 $64 $13,477 $182 $45
MetLife, Inc.
F-20