MetLife 2004 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2004 MetLife annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 101

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101

METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Liabilities for Unpaid Claims and Claim Expenses
The following table provides an analysis of the activity in the liability for unpaid claims and claim expenses relating to property and casualty, group
accident and non-medical health policies and contracts:
Years Ended December 31,
2004 2003 2002
(Dollars in millions)
Balance at January 1 ********************************************************************** $ 5,412 $ 4,885 $ 4,597
Reinsurance recoverables **************************************************************** (525) (498) (457)
Net balance at January 1 ****************************************************************** 4,887 4,387 4,140
Incurred related to:
Current year *************************************************************************** 4,591 4,483 4,219
Prior years ***************************************************************************** (29) 45 (81)
4,562 4,528 4,138
Paid related to:
Current year *************************************************************************** (2,717) (2,676) (2,559)
Prior years ***************************************************************************** (1,394) (1,352) (1,332)
(4,111) (4,028) (3,891)
Net Balance at December 31 *************************************************************** 5,338 4,887 4,387
Add: Reinsurance recoverables *********************************************************** 486 525 498
Balance at December 31 ****************************************************************** $ 5,824 $ 5,412 $ 4,885
Guarantees
The Company issues annuity contracts which may include contractual guarantees to the contractholder for: (i) return of no less than total deposits
made to the contract less any partial withdrawals (‘‘return of net deposits’’) and (ii) the highest contract value on a specified anniversary date minus any
withdrawals following the contract anniversary, or total deposits made to the contract less any partial withdrawals plus a minimum return (‘‘anniversary
contract value’’ or ‘‘minimum return’’). The Company also issues annuity contracts that apply a lower rate of funds deposited if the contractholder elects to
surrender the contract for cash and a higher rate if the contractholder elects to annuitize (‘‘two tier annuities’’). These guarantees include benefits that are
payable in the event of death or at annuitization.
The Company also issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary
guarantee or a guaranteed paid up benefit.
The Company had the following types of guarantees relating to annuity and universal and variable life contracts at:
Annuity Contracts
December 31, 2004
In the At
Event of Death Annuitization
(Dollars in millions)
RETURN OF NET DEPOSITS
Separate account value *********************************************************************** $ 6,925 N/A
Net amount at risk **************************************************************************** $ 22(1) N/A
Average attained age of contractholders********************************************************** 60 years N/A
ANNIVERSARY CONTRACT VALUE OR MINIMUM RETURN
Separate account value *********************************************************************** $ 43,414 $ 14,297
Net amount at risk **************************************************************************** $ 990(1) $ 51(2)
Average attained age of contractholders********************************************************** 61 years 58 years
TWO TIER ANNUITIES
General account value ************************************************************************ N/A $ 301
Net amount at risk **************************************************************************** N/A $ 36(3)
Average attained age of contractholders********************************************************** N/A 58 years
Universal and Variable Life Contracts
December 31, 2004
Secondary Paid Up
Guarantees Guarantees
(Dollars in millions)
Account value (general and separate account) ******************************************************* $ 4,715 $ 4,570
Net amount at risk ****************************************************************************** $ 94,163(1) $ 42,318(1)
Average attained age of policyholders ************************************************************** 45 years 52 years
(1) The net amount at risk for guarantees of amounts in the event of death is defined as the current guaranteed minimum death benefit in excess of the
current account balance at the balance sheet date.
MetLife, Inc.
F-30