MetLife 2008 Annual Report Download - page 167

$948 million of U.S. corporate securities, $561 million of residential mortgage-backed securities, $409 million of asset-backed securities,
$98 million of commercial mortgage-backed securities, $95 million of foreign corporate securities, $21 million of state and political
subdivision securities and $5 million of foreign government securities. See Note 11.
(2) Real estate joint ventures include partnerships and other ventures which engage in the acquisition, development, management and
disposal of real estate investments. Upon consolidation, the assets and liabilities are reflected at the VIE’s carrying amounts. The assets
consist of $20 million of real estate and real estate joint ventures held-for-investment, $5 million of cash and cash equivalents and
$1 million of other assets. The liabilities of $15 million are included within other liabilities.
(3) Other limited partnership interests include partnerships established for the purpose of investing in public and private debt and equity
securities. Upon consolidation, the assets and liabilities are reflected at the VIE’s carrying amounts. The assets of $20 million are included
within other limited partnership interests while the liabilities of $3 million are included within other liabilities.
(4) Other invested assets include tax-credit partnerships and other investments established for the purpose of investing in low-income
housing and other social causes, where the primary return on investment is in the form of tax credits. Upon consolidation, the assets and
liabilities are reflected at the VIE’s carrying amounts. The assets of $10 million are included within other invested assets. The liabilities
consist of $2 million of long-term debt and $1 million of other liabilities.
The following table presents the carrying amount and maximum exposure to loss relating to VIEs for which the Company holds
significant variable interests but is not the primary beneficiary and which have not been consolidated at December 31, 2008:
Carrying
Amount(1)
Maximum
Exposure
to Loss(2)
December 31, 2008
(In millions)
Fixed maturity securities available-for-sale:
Foreigncorporatesecurities ............................................ $1,080 $1,080
U.S.Treasury/agencysecurities.......................................... 992 992
Realestatejointventures................................................ 32 32
Otherlimitedpartnershipinterests.......................................... 3,496 4,004
Otherinvestedassets.................................................. 318 108
Total............................................................. $5,918 $6,216
(1) See Note 1 for further discussion of the Company’s significant accounting policies with regards to the carrying amounts of these
investments.
(2) The maximum exposure to loss relating to the fixed maturity securities available-for-sale and equity securities available-for-sale is equal to
the carrying amounts or carrying amounts of retained interests. The maximum exposure to loss relating to the real estate joint ventures and
other limited partnership interests is equal to the carrying amounts plus any unfunded commitments. Such a maximum loss would be
expected to occur only upon bankruptcy of the issuer or investee. For certain of its investments in other invested assets, the Company’s
return is in the form of tax credits which are guaranteed by a creditworthy third party. For such investments, the maximum exposure to loss
is equal to the carrying amounts plus any unfunded commitments, reduced by amounts guaranteed by third parties.
As described in Note 16, the Company makes commitments to fund partnership investments in the normal course of business.
Excluding these commitments, MetLife did not provide financial or other support to investees designated as VIEs during the years ended
December 31, 2008, 2007 and 2006.
F-44 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)