MetLife 2007 Annual Report Download - page 140

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earnings of the closed block is greater than the expected cumulative earnings of the closed block, the Company will pay the excess of the
actual cumulative earnings of the closed block over the expected cumulative earnings to closed block policyholders as additional
policyholder dividends unless offset by future unfavorable experience of the closed block and, accordingly, will recognize only the
expected cumulative earnings in income with the excess recorded as a policyholder dividend obligation. If over such period, the actual
cumulative earnings of the closed block is less than the expected cumulative earnings of the closed block, the Company will recognize only
the actual earnings in income. However, the Company may change policyholder dividend scales in the future, which would be intended to
increase future actual earnings until the actual cumulative earnings equal the expected cumulative earnings.
Information regarding the closed block liabilities and assets designated to the closed block is as follows:
2007 2006
December 31,
(In millions)
Closed Block Liabilities
Futurepolicybenefits............................................................. $43,362 $43,089
Otherpolicyholderfunds........................................................... 323 282
Policyholderdividendspayable....................................................... 709 701
Policyholderdividendobligation ...................................................... 789 1,063
Payablesforcollateralundersecuritiesloanedandothertransactions.............................. 5,610 6,483
Otherliabilities ................................................................. 290 192
Totalclosedblockliabilities........................................................ 51,083 51,810
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $29,631 and $30,286,
respectively)................................................................ 30,481 31,255
Equity securities available-for-sale, at estimated fair value (cost: $1,555 and $1,184, respectively) . . . . . . . . . 1,875 1,484
Mortgageloansonrealestate...................................................... 7,472 7,848
Policyloans.................................................................. 4,290 4,212
Realestateandrealestatejointventuresheld-for-investment.................................. 297 242
Short-terminvestments .......................................................... 14 62
Otherinvestedassets ........................................................... 829 644
Totalinvestments............................................................. 45,258 45,747
Cashandcashequivalents ......................................................... 333 255
Accruedinvestmentincome......................................................... 485 517
Deferredincometaxassets......................................................... 640 754
Premiumsandotherreceivables...................................................... 151 156
Totalassetsdesignatedtotheclosedblock............................................. 46,867 47,429
Excessofclosedblockliabilitiesoverassetsdesignatedtotheclosedblock......................... 4,216 4,381
Amounts included in accumulated other comprehensive income (loss):
Unrealized investment gains (losses), net of income tax of $424 and $457, respectively . . . . . . . . . . . . . . . . 751 812
Unrealized gains (losses) on derivative instruments, net of income tax of ($19) and ($18), respectively . . . . . . . (33) (32)
Allocated to policyholder dividend obligation, net of income tax of ($284) and ($381), respectively . . . . . . . . . . (505) (681)
Totalamountsincludedinaccumulatedothercomprehensiveincome(loss)......................... 213 99
Maximumfutureearningstoberecognizedfromclosedblockassetsandliabilities ..................... $ 4,429 $ 4,480
Information regarding the closed block policyholder dividend obligation is as follows:
2007 2006 2005
Years Ended December 31,
(In millions)
BalanceatJanuary1,.................................................. $1,063 $1,607 $2,243
Impactonrevenues,netofexpensesandincometax ............................. — (114) (9)
Changeinunrealizedinvestmentandderivativegains(losses)........................ (274) (430) (627)
BalanceatDecember31, ............................................... $ 789 $1,063 $1,607
F-44 MetLife, Inc.
MetLife, Inc.
Notes to Consolidated Financial Statements — (Continued)