MetLife 2006 Annual Report Download - page 128

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Information regarding the closed block revenues and expenses is as follows:
2006 2005 2004
Years Ended December 31,
(In millions)
Revenues
Premiums.......................................................... $2,959 $3,062 $3,156
Netinvestmentincomeandotherrevenues.................................... 2,355 2,382 2,504
Netinvestmentgains(losses)............................................. (130) 10 (19)
Totalrevenues ..................................................... 5,184 5,454 5,641
Expenses
Policyholderbenefitsandclaims ........................................... 3,474 3,478 3,480
Policyholderdividends.................................................. 1,479 1,465 1,458
Changeinpolicyholderdividendobligation .................................... (114) (9) 124
Otherexpenses...................................................... 247 263 275
Totalexpenses..................................................... 5,086 5,197 5,337
Revenues,netofexpensesbeforeincometax.................................. 98 257 304
Incometax......................................................... 34 90 109
Revenues,netofexpensesandincometaxfromcontinuingoperations.................. 64 167 195
Revenues,netofexpensesandincometaxfromdiscontinuedoperations ................ 1 — —
Revenues,netofexpenses,incometaxesanddiscontinuedoperations.................. $ 65 $ 167 $ 195
The change in the maximum future earnings of the closed block is as follows:
2006 2005 2004
Years Ended December 31,
(In millions)
BalanceatDecember31, ............................................... $4,480 $4,545 $4,712
BalanceatJanuary1,.................................................. 4,545 4,712 4,907
Changeduringyear ................................................... $ (65) $ (167) $ (195)
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. Metropolitan Life also charges the
closed block for expenses of maintaining the policies included in the closed block.
10. Long-term and Short-term Debt
Long-term and short-term debt outstanding is as follows:
Range Weighted
Average Maturity 2006 2005
December 31,
Interest Rates
(In millions)
Senior notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.00%-6.75% 5.67% 2011-2036 $ 8,046 $ 7,616
Repurchase agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.18%-5.65% 4.77% 2007-2013 998 855
Surplus notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.63%-7.88% 7.76% 2015-2025 697 696
Fixed rate notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.76%-6.47% 5.95% 2007-2011 107 104
Other notes with varying interest rates . . . . . . . . . . . . . . . . . . . . . . 3.44%-6.10% 4.33% 2009-2012 68 145
Capitalleaseobligations............................... 63 73
Totallong-termdebt.................................. 9,979 9,489
Totalshort-termdebt ................................. 1,449 1,414
Total........................................... $11,428 $10,903
The aggregate maturities of long-term debt as of December 31, 2006 for the next five years are $116 million in 2007, $383 million in
2008, $398 million in 2009, $194 million in 2010, $992 million in 2011 and $7,896 million thereafter.
Collateralized debt, which consists of repurchase agreements and capital lease obligations, ranks highest in priority, followed by
unsecured senior debt which consists of senior notes, fixed rate notes and other notes with varying interest rates, followed by
subordinated debt which consists of junior subordinated debentures. Payments of interest and principal on the Company’s surplus
notes, which are subordinate to all other obligations at the operating company level and senior to obligations at the Holding Company, may
be made only with the prior approval of the insurance department of the state of domicile.
Senior Notes
The Holding Company repaid a $500 million 5.25% senior note which matured on December 1, 2006 and a $1,006 million
3.911% senior note which matured on May 15, 2005. RGA repaid a $100 million 7.25% senior note which matured on April 1, 2006.
F-45MetLife, Inc.
METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)