MetLife 2007 Annual Report Download - page 171

Corporate & Other contains the excess capital not allocated to the business segments, various start-up entities, MetLife Bank and run-
off entities, as well as interest expense related to the majority of the Company’s outstanding debt and expenses associated with certain
legal proceedings and income tax audit issues. Corporate & Other also includes the elimination of all intersegment amounts, which
generally relate to intersegment loans, which bear interest rates commensurate with related borrowings, as well as intersegment
transactions. Additionally, the Company’s asset management business, including amounts reported as discontinued operations, is
included in the results of operations for Corporate & Other. See Note 23 for disclosures regarding discontinued operations, including
real estate.
Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide
a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in
MetLife’s businesses. As a part of the economic capital process, a portion of net investment income is credited to the segments based on
the level of allocated equity.
Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for
the years ended December 31, 2007, 2006 and 2005. The accounting policies of the segments are the same as those of the Company,
except for the method of capital allocation and the accounting for gains (losses) from intercompany sales, which are eliminated in
consolidation. The Company allocates equity to each segment based upon the economic capital model that allows the Company to
effectively manage its capital. The Company evaluates the performance of each segment based upon net income excluding net investment
gains (losses), net of income tax, adjustments related to net investment gains (losses), net of income tax, the impact from the cumulative
effect of changes in accounting, net of income tax and discontinued operations, other than discontinued real estate, net of income tax,
less preferred stock dividends. The Company allocates certain non-recurring items, such as expenses associated with certain legal
proceedings, to Corporate & Other.
For the Year Ended
December 31, 2007 Institutional Individual Auto & Home International Reinsurance Corporate & Other Total
(In millions)
Statement of Income:
Premiums ....................... $ 12,392 $ 4,496 $2,966 $ 3,096 $ 4,910 $ 35 $ 27,895
Universal life and investment- type product
policyfees ..................... 803 3,513 — 995 — — 5,311
Net investment income . . . . . . . . . . . . . . . 8,179 7,052 196 1,248 871 1,460 19,006
Otherrevenues.................... 726 599 45 23 77 63 1,533
Net investment gains (losses) . . . . . . . . . . . (580) (99) 16 55 (177) 47 (738)
Policyholder benefits and claims . . . . . . . . . 13,806 5,721 1,807 2,458 3,989 47 27,828
Interest credited to policyholder
account balances . . . . . . . . . . . . . . . . . 3,094 2,030 — 355 262 — 5,741
Policyholderdividends ............... — 1,718 4 4 — — 1,726
Other expenses. . . . . . . . . . . . . . . . . . . . 2,438 4,031 830 1,748 1,226 1,400 11,673
Income from continuing operations before provision
(benefit) for income tax . . . . . . . . . . . . . . . . 2,182 2,061 582 852 204 158 6,039
Provision (benefit) for income tax. . . . . . . . . 743 705 146 208 71 (114) 1,759
Income from continuing operations . . . . . . . 1,439 1,356 436 644 133 272 4,280
Income (loss) from discontinued operations,
netofincometax ................. 10 1 — (9) — 35 37
Netincome ...................... $ 1,449 $ 1,357 $ 436 $ 635 $ 133 $ 307 $ 4,317
Balance Sheet:
Total assets . . . . . . . . . . . . . . . . . . . . . . $204,005 $250,691 $5,672 $26,357 $21,331 $50,506 $558,562
DAC and VOBA . . . . . . . . . . . . . . . . . . . . $ 923 $ 14,236 $ 193 $ 2,648 $ 3,513 $ 8 $ 21,521
Goodwill ........................ $ 978 $ 2,957 $ 157 $ 313 $ 96 $ 409 $ 4,910
Separate account assets. . . . . . . . . . . . . . $ 52,046 $102,918 $ — $ 5,195 $ 17 $ (17) $160,159
Policyholder liabilities . . . . . . . . . . . . . . . . $121,147 $116,568 $3,324 $16,083 $15,113 $ 9,335 $281,570
Separate account liabilities . . . . . . . . . . . . $ 52,046 $102,918 $ — $ 5,195 $ 17 $ (17) $160,159
F-75MetLife, Inc.
MetLife, Inc.
Notes to Consolidated Financial Statements — (Continued)