MetLife 2005 Annual Report Download - page 101

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METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Information regarding the policyholder dividend obligation is as follows:
Years Ended December 31,
2005 2004 2003
(In millions)
Balance at beginning of year ******************************************************************* $2,243 $2,130 $1,882
Impact on revenues, net of expenses and income taxes ******************************************** (9) 124 —
Change in unrealized investment and derivative gains (losses) *************************************** (627) (11) 248
Balance at end of year ************************************************************************ $1,607 $2,243 $2,130
Closed block revenues and expenses were as follows:
Years Ended December 31,
2005 2004 2003
(In millions)
Revenues
Premiums *********************************************************************************** $3,062 $3,156 $3,365
Net investment income and other revenues******************************************************* 2,382 2,504 2,554
Net investment gains (losses) ****************************************************************** 10 (19) (128)
Total revenues ***************************************************************************** 5,454 5,641 5,791
Expenses
Policyholder benefits and claims **************************************************************** 3,478 3,480 3,660
Policyholder dividends************************************************************************* 1,465 1,458 1,509
Change in policyholder dividend obligation******************************************************** (9) 124 —
Other expenses ****************************************************************************** 263 275 297
Total expenses***************************************************************************** 5,197 5,337 5,466
Revenues, net of expenses before income taxes ************************************************** 257 304 325
Income taxes ******************************************************************************** 90 109 118
Revenues, net of expenses and income taxes **************************************************** $ 167 $ 195 $ 207
The change in maximum future earnings of the closed block is as follows:
Years Ended December 31,
2005 2004 2003
(In millions)
Balance at end of year ************************************************************************ $4,545 $4,712 $4,907
Balance at beginning of year ******************************************************************* 4,712 4,907 5,114
Change during year*************************************************************************** $ (167) $ (195) $ (207)
Metropolitan Life charges the closed block with federal income taxes, state and local premium taxes, and other additive state or local taxes, as well
as investment management expenses relating to the closed block as provided in the plan of demutualization. Metropolitan Life also charges the closed
block for expenses of maintaining the policies included in the closed block.
8. Debt
At December 31, 2005 and 2004, debt outstanding is as follows:
Interest Rates
December 31,
Weighted
Range Average Maturity 2005 2004
(In millions)
Senior notes*************************************************** 5.00%-7.25% 5.66% 2006-2035 $ 7,616 $6,017
Repurchase agreements***************************************** 2.18%-5.65% 3.99% 2006-2013 855 105
Surplus notes************************************************** 7.63%-7.88% 7.76% 2015-2025 696 946
Junior subordinated debentures ********************************** 6.75% 6.75% 2065 399 —
Fixed rate notes************************************************ 4.20%-10.50% 5.10% 2006-2010 104 110
Other notes with varying interest rates ***************************** 3.44%-5.89% 4.86% 2006-2012 145 168
Capital lease obligations ***************************************** ———7366
Total long-term debt ******************************************** 9,888 7,412
Total short-term debt******************************************** 1,414 1,445
Total ***************************************************** $11,302 $8,857
Long-term Debt
In connection with financing the acquisition of Travelers on July 1, 2005, which is more fully described in Note 2, the Holding Company issued
the following debt:
On June 23, 2005, the Holding Company issued in the United States public market $1,000 million aggregate principal amount of 5.00% senior
notes due June 15, 2015 at a discount of $2.7 million ($997.3 million) and $1,000 million aggregate principal amount of 5.70% senior notes due
MetLife, Inc. F-39