MetLife 2008 Annual Report Download - page 173

settlement with the counterparty at an amount equal to the then current fair value of the credit default swaps. At December 31, 2008, the
Company would have paid $37 million to terminate all of these contracts.
The Company has also entered into credit default swaps to purchase credit protection on certain of the referenced credit obligations in
the table below. As a result, the maximum amount of potential future recoveries available to offset the $1,875 million from the table below
was $13 million at December 31, 2008.
The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of
written credit default swaps at December 31, 2008:
Rating Agency Designation of Referenced Credit Obligations(1)
Fair Value of
Credit Default
Swaps
Maximum Amount of
Future Payments
under Credit
Default Swaps(2) Weighted Average Years to Maturity (3)
December 31, 2008
(In millions)
Aaa/Aa/A
Singlenamecreditdefaultswaps(corporate) ....................... $ 1 $ 143 5.0
Creditdefaultswapsreferencingindices .......................... (33) 1,372 4.1
Subtotal.............................................. (32) 1,515 4.2
Baa
Singlenamecreditdefaultswaps(corporate) ....................... 2 110 2.6
Creditdefaultswapsreferencingindices .......................... (5) 215 4.1
Subtotal.............................................. (3) 325 3.6
Ba
Singlenamecreditdefaultswaps(corporate) ....................... — 25 1.6
Creditdefaultswapsreferencingindices .......................... — — —
Subtotal.............................................. — 25 1.6
B
Singlenamecreditdefaultswaps(corporate) ....................... — — —
Creditdefaultswapsreferencingindices .......................... (2) 10 5.0
Subtotal.............................................. (2) 10 5.0
Caa and lower
Singlenamecreditdefaultswaps(corporate) ....................... — — —
Creditdefaultswapsreferencingindices .......................... — — —
Subtotal.............................................. — — —
In or near default
Singlenamecreditdefaultswaps(corporate) ....................... — — —
Creditdefaultswapsreferencingindices .......................... — — —
Subtotal.............................................. — — —
$(37) $1,875 4.0
(1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P, and Fitch. If no
rating is available from a rating agency, then the MetLife rating is used.
(2) Assumes the value of the referenced credit obligations is zero.
(3) The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.
F-50 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)