MetLife 2004 Annual Report Download - page 76

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METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
December 31,
2004 2003
(Dollars in millions)
ASSETS DESIGNATED TO THE CLOSED BLOCK
Investments:
Fixed maturities available-for-sale, at fair value (amortized cost: $27,757 and $30,381, respectively) **** 29,766 32,348
Equity securities, at fair value (cost: $898 and $217, respectively)********************************* 979 250
Mortgage loans on real estate *************************************************************** 8,165 7,431
Policy loans ****************************************************************************** 4,067 4,036
Short-term investments********************************************************************* 101 123
Other invested assets********************************************************************** 221 108
Total investments******************************************************************** 43,299 44,296
Cash and cash equivalents ******************************************************************* 325 531
Accrued investment income******************************************************************* 511 527
Deferred income taxes *********************************************************************** 1,002 1,043
Premiums and other receivables *************************************************************** 103 164
Total assets designated to the closed block ********************************************* 45,240 46,561
Excess of closed block liabilities over assets designated to the closed block************************** 4,785 5,037
Amounts included in accumulated other comprehensive loss:
Net unrealized investment gains, net of deferred income tax of $752 and $730, respectively ********** 1,338 1,270
Unrealized derivative gains (losses), net of deferred income tax benefit of ($31) and ($28), respectively ** (55) (48)
Allocated from policyholder dividend obligation, net of deferred income tax benefit of ($763) and ($778),
respectively **************************************************************************** (1,356) (1,352)
(73) (130)
Maximum future earnings to be recognized from closed block assets and liabilities********************* $ 4,712 $ 4,907
Information regarding the policyholder dividend obligation is as follows:
Years Ended December 31
2004 2003 2002
(Dollars in millions)
Balance at beginning of year ******************************************************************* $2,130 $1,882 $ 708
Impact on revenues, net of expenses and income taxes ******************************************** 124 — —
Change in unrealized investment and derivative gains (losses) *************************************** (11) 248 1,174
Balance at end of year ************************************************************************ $2,243 $2,130 $1,882
Closed block revenues and expenses were as follows:
Years Ended December 31,
2004 2003 2002
(Dollars in millions)
REVENUES
Premiums *********************************************************************************** $3,156 $3,365 $3,551
Net investment income and other revenues******************************************************* 2,504 2,554 2,568
Net investment gains (losses) ****************************************************************** (19) (128) 11
Total revenues *********************************************************************** 5,641 5,791 6,130
EXPENSES
Policyholder benefits and claims **************************************************************** 3,480 3,660 3,770
Policyholder dividends************************************************************************* 1,458 1,509 1,573
Change in policyholder dividend obligation******************************************************** 124 — —
Other expenses ****************************************************************************** 275 297 310
Total expenses*********************************************************************** 5,337 5,466 5,653
Revenues net of expenses before income taxes*************************************************** 304 325 477
Income taxes ******************************************************************************** 109 118 173
Revenues net of expenses and income taxes ***************************************************** $ 195 $ 207 $ 304
MetLife, Inc. F-33