MetLife 2008 Annual Report Download - page 177

7. Insurance
Insurance Liabilities
Insurance liabilities are as follows:
2008 2007 2008 2007 2008 2007
December 31,
Future Policy
Benefits Policyholder Account Balances Other Policyholder Funds
(In millions)
Institutional
Grouplife................................... $ 3,346 $ 3,326 $ 14,044 $ 13,997 $2,532 $2,364
Retirement & savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,320 37,947 60,787 51,585 58 213
Non-medical health & other . . . . . . . . . . . . . . . . . . . . . . . . 11,619 10,617 501 501 609 597
Individual
Traditionallife................................. 52,968 52,378 1 1 1,423 1,478
Variable & universal life . . . . . . . . . . . . . . . . . . . . . . . . . . 1,129 949 15,062 14,583 1,452 1,417
Annuities ................................... 3,655 3,055 44,282 37,785 88 76
Other...................................... 2 — 2,524 2,398 1 1
International................................... 9,241 9,825 5,654 4,961 1,227 1,296
Auto&Home .................................. 3,083 3,273 — — 43 51
Corporate&Other............................... 5,192 4,646 6,950 4,531 329 345
Total ...................................... $130,555 $126,016 $149,805 $130,342 $7,762 $7,838
Value of Distribution Agreements and Customer Relationships Acquired
Information regarding the VODA and VOCRA, which are reported in other assets, is as follows:
2008 2007 2006
Years Ended December 31,
(In millions)
BalanceatJanuary1, ................................................. $706 $708 $715
Acquisitions........................................................ 144 11 —
Amortization ....................................................... (25) (16) (6)
Other............................................................ (3) 3 (1)
BalanceatDecember31,............................................... $822 $706 $708
The estimated future amortization expense allocated to other expenses for the next five years for VODA and VOCRA is $34 million in
2009, $40 million in 2010, $44 million in 2011, $49 million in 2012 and $52 million in 2013. See Note 2 for a description of acquisitions and
dispositions.
Sales Inducements
Information regarding deferred sales inducements, which are reported in other assets, is as follows:
2008 2007 2006
Years Ended
December 31,
(In millions)
BalanceatJanuary1,................................................. $677 $578 $414
Capitalization ...................................................... 176 181 194
Amortization ....................................................... (142) (82) (30)
BalanceatDecember31, .............................................. $711 $677 $578
Separate Accounts
Separate account assets and liabilities include two categories of account types: pass-through separate accounts totaling $96.6 billion
and $141.7 billion at December 31, 2008 and 2007, respectively, for which the policyholder assumes all investment risk, and separate
accounts with a minimum return or account value for which the Company contractually guarantees either a minimum return or account
value to the policyholder which totaled $24.2 billion and $18.4 billion at December 31, 2008 and 2007, respectively. The latter category
consisted primarily of Met Managed GICs and participating close-out contracts. The average interest rate credited on these contracts was
4.40% and 4.73% at December 31, 2008 and 2007, respectively.
Fees charged to the separate accounts by the Company (including mortality charges, policy administration fees and surrender charges)
are reflected in the Company’s revenues as universal life and investment-type product policy fees and totaled $3.2 billion, $2.8 billion and
$2.4 billion for the years ended December 31, 2008, 2007 and 2006, respectively.
F-54 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)