MetLife 2007 Annual Report Download - page 141

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Information regarding the closed block revenues and expenses is as follows:
2007 2006 2005
Years Ended December 31,
(In millions)
Revenues
Premiums.......................................................... $2,870 $2,959 $3,062
Netinvestmentincomeandotherrevenues.................................... 2,350 2,355 2,382
Netinvestmentgains(losses)............................................. 28 (130) 10
Totalrevenues ..................................................... 5,248 5,184 5,454
Expenses
Policyholderbenefitsandclaims........................................... 3,457 3,474 3,478
Policyholderdividends.................................................. 1,492 1,479 1,465
Changeinpolicyholderdividendobligation .................................... — (114) (9)
Otherexpenses...................................................... 231 247 263
Totalexpenses..................................................... 5,180 5,086 5,197
Revenues,netofexpensesbeforeincometax.................................. 68 98 257
Incometax......................................................... 21 34 90
Revenues,netofexpensesandincometaxfromcontinuingoperations.................. 47 64 167
Revenues,netofexpensesandincometaxfromdiscontinuedoperations ................ — 1 —
Revenues,netofexpenses,incometaxesanddiscontinuedoperations.................. $ 47 $ 65 $ 167
The change in the maximum future earnings of the closed block is as follows:
2007 2006 2005
Years Ended December 31,
(In millions)
BalanceatDecember31, ............................................... $4,429 $4,480 $4,545
Less:
Cumulativeeffectofachangeinaccountingprinciple,netofincometax................ (4) — —
BalanceatJanuary1,.................................................. 4,480 4,545 4,712
Changeduringyear ................................................... $ (47) $ (65) $ (167)
MLIC 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. MLIC 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 2007 2006
December 31,
Interest Rates
(In millions)
Senior notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.00%-6.75% 5.60% 2011-2035 $ 7,515 $ 7,196
Repurchase agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.83%-5.65% 4.49% 2008-2013 1,213 998
Surplus notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.63%-7.88% 7.76% 2015-2025 697 697
Fixed rate notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.50%-7.25% 6.68% 2008 73 107
Other notes with varying interest rates . . . . . . . . . . . . . . . . . . . . . . 3.44%-6.10% 4.99% 2009-2012 75 68
Capitalleaseobligations............................... 55 63
Totallong-termdebt.................................. 9,628 9,129
Totalshort-termdebt ................................. 667 1,449
Total........................................... $10,295 $10,578
The aggregate maturities of long-term debt as of December 31, 2007 for the next five years are $458 million in 2008, $536 million in
2009, $285 million in 2010, $966 million in 2011, $471 million in 2012 and $6,912 million thereafter.
Repurchase agreements and capital lease obligations are collateralized and rank 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. Collateral financing arrangements are supported by either surplus notes of subsidiaries
or financing arrangements with the Holding Company and accordingly have priority consistent with other such obligations.
F-45MetLife, Inc.
MetLife, Inc.
Notes to Consolidated Financial Statements — (Continued)