MetLife 2008 Annual Report Download - page 212

Dividend Restrictions
The table below sets forth the dividends permitted to be paid by the respective insurance subsidiary without insurance regulatory
approval and the respective dividends paid:
Company Permitted w/o Approval(1) Paid(2) Permitted w/o Approval(3) Paid(2) Permitted w/o Approval(3)
2009 2008 2007
(In millions)
Metropolitan Life Insurance Company . . . . . . . . . . . . . . . . . $552 $1,318(4) $1,299 $500 $919
MetLife Insurance Company of Connecticut . . . . . . . . . . . . . $714 $ 500 $1,026 $690(6) $690
Metropolitan Tower Life Insurance Company . . . . . . . . . . . . $ 88 $ 277(5) $ 113 $ — $104
Metropolitan Property and Casualty Insurance Company . . . . . $ 9 $ 300 $ — $400 $ 16
(1) Reflects dividend amounts that may be paid during 2009 without prior regulatory approval. However, if paid before a specified date during
2009, some or all of such dividends may require regulatory approval.
(2) All amounts paid, including those requiring regulatory approval.
(3) Reflects dividend amounts that could have been paid during the relevant year without prior regulatory approval.
(4) As described in Note 2, consists of shares of RGA stock distributed by MLIC to the Holding Company as an in-kind dividend of
$1,318 million.
(5) Includes shares of an affiliate distributed to the Holding Company as an in-kind dividend in the amount of $164 million.
(6) Includes a return of capital of $404 million as approved by the applicable insurance department, of which $350 million was paid to the
Holding Company.
Under New York State Insurance Law, MLIC is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to
the Holding Company as long as the aggregate amount of all such dividends in any calendar year does not exceed the lesser of: (i) 10% of
its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the
immediately preceding calendar year (excluding realized capital gains). MLIC will be permitted to pay a cash dividend to the Holding
Company in excess of the lesser of such two amounts only if it files notice of its intention to declare such a dividend and the amount thereof
with the Superintendent and the Superintendent does not disapprove the distribution within 30 days of its filing. Under New York State
Insurance Law, the Superintendent has broad discretion in determining whether the financial condition of a stock life insurance company
would support the payment of such dividends to its shareholders. The New York State Department of Insurance (the “Department”) has
established informal guidelines for such determinations. The guidelines, among other things, focus on the insurer’s overall financial
condition and profitability under statutory accounting practices.
Under Connecticut State Insurance Law, MICC is permitted, without prior insurance regulatory clearance, to pay shareholder dividends
to its parent as long as the amount of such dividends, when aggregated with all other dividends in the preceding 12 months, does not
exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net
gain from operations for the immediately preceding calendar year. MICC will be permitted to pay a cash dividend in excess of the greater of
such two amounts only if it files notice of its declaration of such a dividend and the amount thereof with the Connecticut Commissioner of
Insurance (the “Connecticut Commissioner”) and the Connecticut Commissioner does not disapprove the payment within 30 days after
notice. In addition, any dividend that exceeds earned surplus (unassigned funds, reduced by 25% of unrealized appreciation in value or
revaluation of assets or unrealized profits on investments) as of the last filed annual statutory statement requires insurance regulatory
approval. Under Connecticut State Insurance Law, the Connecticut Commissioner has broad discretion in determining whether the
financial condition of a stock life insurance company would support the payment of such dividends to its shareholders. The Connecticut
State Insurance Law requires prior approval for any dividends for a period of two years following a change in control. As a result of the
acquisition of MICC by the Holding Company on July 1, 2005, under Connecticut State Insurance Law, all dividend payments by MICC
through June 30, 2007 required prior approval of the Connecticut Commissioner.
Under Delaware State Insurance Law, Metropolitan Tower Life Insurance Company is permitted, without prior insurance regulatory
clearance, to pay a stockholder dividend to the Holding Company as long as the amount of the dividend when aggregated with all other
dividends in the preceding 12 months does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the
immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding
realized capital gains). MTL will be permitted to pay a cash dividend to the Holding Company in excess of the greater of such two amounts
only if it files notice of the declaration of such a dividend and the amount thereof with the Delaware Commissioner of Insurance (the
“Delaware Commissioner”) and the Delaware Commissioner does not disapprove the distribution within 30 days of its filing. In addition, any
dividend that exceeds earned surplus (defined as unassigned funds) as of the last filed annual statutory statement requires insurance
regulatory approval. Under Delaware State Insurance Law, the Delaware Commissioner has broad discretion in determining whether the
financial condition of a stock life insurance company would support the payment of such dividends to its shareholders.
Under Rhode Island State Insurance Law, MPC is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend
to the Holding Company as long as the aggregate amount of all such dividends in any twelve-month period does not exceed the lesser of:
(i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) net income, not including realized
capital gains, for the immediately preceding calendar year, which may include carry forward net income from the second and third
preceding calendar years excluding realized capital gains and less dividends paid in the second and immediately preceding calendar
years. MPC will be permitted to pay a cash dividend to the Holding Company in excess of the lesser of such two amounts only if it files
notice of its intention to declare such a dividend and the amount thereof with the Rhode Island Commissioner of Insurance (the “Rhode
Island Commissioner”) and the Rhode Island Commissioner does not disapprove the distribution within 30 days of its filing. Under Rhode
F-89MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)