MetLife 2002 Annual Report Download - page 66

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METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The investment amounts set forth above are generally due in monthly installments. The payment periods generally range from two to 15 years, but in
certain circumstances are as long as 30 years. These receivables are generally collateralized by the related property. The Company’s deferred tax
provision related to leveraged leases was $981 million and $1,077 million at December 31, 2002 and 2001, respectively.
Net Investment Income
The components of net investment income were as follows:
Years Ended December 31,
2002 2001 2000
(Dollars in millions)
Fixed maturities ************************************************************************* $ 8,384 $ 8,574 $ 8,538
Equity securities ************************************************************************ 26 49 41
Mortgage loans on real estate************************************************************* 1,883 1,848 1,693
Real estate and real estate joint ventures(1) ************************************************* 1,053 932 989
Policy loans **************************************************************************** 543 536 515
Other limited partnership interests********************************************************** 57 48 142
Cash, cash equivalents and short-term investments ****************************************** 248 279 288
Other ********************************************************************************* 218 249 162
Total ****************************************************************************** 12,412 12,515 12,368
Less: Investment expenses(1) ************************************************************* 1,083 1,260 1,344
Net investment income ************************************************************** $11,329 $11,255 $11,024
(1) Excludes amounts related to real estate held-for-sale presented as discontinued operations in accordance with SFAS 144.
Net Investment Losses
Net investment losses, including changes in valuation allowances, were as follows:
Years Ended December 31,
2002 2001 2000
(Dollars in millions)
Fixed maturities ****************************************************************************** $(917) $(645) $(1,437)
Equity securities****************************************************************************** 224 65 192
Mortgage loans on real estate ****************************************************************** (22) (91) (18)
Real estate and real estate joint ventures(1)******************************************************* (6) (4) 101
Other limited partnership interests *************************************************************** (2) (161) (7)
Sales of businesses ************************************************************************** — 25 660
Other ************************************************************************************** (206) 74 65
Total *********************************************************************************** (929) (737) (444)
Amounts allocable to:
Deferred policy acquisition costs************************************************************** (5) (25) 95
Participating contracts*********************************************************************** (7) — (126)
Policyholder dividend obligation *************************************************************** 157 159 85
Total net investment losses **************************************************************** $(784) $(603) $ (390)
(1) The amount presented for the year ended December 31, 2002 excludes amounts related to sales of real estate held-for-sale presented as
discontinued operations in accordance with SFAS 144.
Investment gains and losses are net of related policyholder amounts. The amounts netted against investment gains and losses are (i) amortization of
deferred policy acquisition costs to the extent that such amortization results from investment gains and losses, (ii) adjustments to participating
contractholder accounts when amounts equal to such investment gains and losses are applied to the contractholder’s accounts, and (iii) adjustments to
the policyholder dividend obligation resulting from investment gains and losses. This presentation may not be comparable to presentations made by other
insurers.
MetLife, Inc.
F-22