MetLife 2007 Annual Report Download - page 136

The Company’s proportional interest in separate accounts is included in the consolidated balance sheets as follows:
2007 2006
December 31,
(In millions)
Fixedmaturitysecurities ...................................................... $35 $30
Equitysecurities ........................................................... $41 $36
Cashandcashequivalents .................................................... $ 5 $ 5
For the years ended December 31, 2007, 2006 and 2005, there were no investment gains (losses) on transfers of assets from the
general account to the separate accounts.
Obligations Under Guaranteed Interest Contract Program
The Company issues fixed and floating rate obligations under its GIC program which are denominated in either U.S. dollars or foreign
currencies. During the years ended December 31, 2007, 2006 and 2005, the Company issued $5.2 billion, $5.2 billion and $4.0 billion,
respectively, and repaid $4.3 billion, $2.6 billion and $1.1 billion, respectively, of GICs under this program. At December 31, 2007 and
2006, GICs outstanding, which are included in policyholder account balances, were $24.2 billion and $21.5 billion, respectively. During the
years ended December 31, 2007, 2006 and 2005, interest credited on the contracts, which are included in interest credited to
policyholder account balances, was $1.1 billion, $835 million and $464 million, respectively.
Obligations Under Funding Agreements
MetLife Insurance Company of Connecticut (“MICC”) is a member of the Federal Home Loan Bank of Boston (the “FHLB of Boston”) and
holds $70 million of common stock of the FHLB of Boston at both December 31, 2007 and 2006, which is included in equity securities.
MICC has also entered into funding agreements with the FHLB of Boston whereby MICC has issued such funding agreements in exchange
forcashandforwhichtheFHLBofBostonhasbeengrantedablanketlienoncertainMICCassets,includingresidentialmortgage-backed
securities, to collateralize MICC’s obligations under the funding agreements. MICC maintains control over these pledged assets, and may
use, commingle, encumber or dispose of any portion of the collateral as long as there is no event of default and the remaining qualified
collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by MICC, the FHLB of Boston’s recovery on the
collateral is limited to the amount of MICC’s liability to the FHLB of Boston. The amount of the Company’s liability for funding agreements
with the FHLB of Boston was $726 million and $926 million at December 31, 2007 and 2006, respectively, which is included in policyholder
account balances. The advances on these funding agreements are collateralized by residential mortgage-backed securities with fair values
of $901 million and $1.1 billion at December 31, 2007 and 2006, respectively.
MLIC is a member of the Federal Home Loan Bank of New York (“FHLB of NY”) and holds $339 million and $136 million of common stock
of the FHLB of NY at December 31, 2007 and 2006, respectively, which is included in equity securities. MLIC has also entered into funding
agreements with the FHLB of NY whereby MLIC has issued such funding agreements in exchange for cash and for which the FHLB of NY
has been granted a lien on certain MLIC assets, including residential mortgage-backed securities to collateralize MLIC’s obligations under
the funding agreements. MLIC maintains control over these pledged assets, and may use, commingle, encumber or dispose of any portion
of the collateral as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance
level. Upon any event of default by MLIC, the FHLB of NY’s recovery on the collateral is limited to the amount of MLIC’s liability to the FHLB
of NY. The amount of the Company’s liability for funding agreements with the FHLB of NY was $4.6 billion at December 31, 2007, which is
included in policyholder account balances. The advances on these agreements are collateralized by residential mortgage-backed
securities with fair values of $4.8 billion at December 31, 2007. MLIC did not have any funding agreements with the FHLB of NY at
December 31, 2006.
MLIC has issued funding agreements to certain trusts that have issued securities guaranteed as to payment of interest and principal by
the Federal Agricultural Mortgage Corporation, a federally chartered instrumentality of the United States. The obligations under these
funding agreements are secured by a pledge of certain eligible agricultural real estate mortgage loans and may, under certain circum-
stances, be secured by other qualified collateral. The amount of the Company’s liability for funding agreements issued to such trusts was
$2.5 billion and $1.5 billion at December 31, 2007 and 2006, respectively, which is included in policyholder account balances. The
obligations under these funding agreements are collateralized by designated agricultural real estate mortgage loans with fair values of
$2.9 billion and $1.7 billion at December 31, 2007 and 2006, respectively.
F-40 MetLife, Inc.
MetLife, Inc.
Notes to Consolidated Financial Statements — (Continued)