MetLife 2008 Annual Report Download - page 7

Real Estate
Income related to real estate sold or classified as held-for-sale is presented as discontinued operations. The following information
presents the components of income from discontinued real estate operations:
2008 2007 2006 2005 2004
Years Ended December 31,
(In millions)
Investmentincome................................... $ 6 $21 $ 243 $ 405 $658
Investmentexpense .................................. (3) (9) (151) (246) (392)
Netinvestmentgains(losses)............................ 8 13 4,795 2,125 146
Totalrevenues .................................... 11 25 4,887 2,284 412
Interestexpense .................................... — — — — 13
Provisionforincometax ............................... 4 11 1,725 812 140
Income from discontinued operations, net of income tax . . . . . . . . . $ 7 $14 $3,162 $1,472 $ 259
Operations
In the fourth quarter of 2008, the Company entered into an agreement to sell its wholly-owned subsidiary, Cova, to a third party to be
completed in early 2009. In September 2008, the Company completed a tax-free split-off of its majority-owned subsidiary, Reinsurance
Group of America, Incorporated (“RGA”). In September 2007, September 2005 and January 2005, the Company sold its MetLife
Insurance Limited (“MetLife Australia”) annuities and pension businesses, P.T. Sejahtera (“MetLife Indonesia”) and SSRM Holdings, Inc.
(“SSRM”), respectively. The assets, liabilities and operations of Cova, RGA, MetLife Australia, MetLife Indonesia and SSRM have been
reclassified into discontinued operations for all years presented. The following tables present these discontinued operations:
2008 2007 2006 2005 2004
Years Ended December 31,
(In millions)
Revenues ................................... $4,086 $ 5,932 $ 5,467 $ 4,776 $ 4,492
Expenses ................................... 3,915 5,640 5,179 4,609 4,286
Income before provision for income tax . . . . . . . . . . . . . . . . 171 292 288 167 206
Provisionforincometax.......................... 57 101 99 60 74
Income from discontinued operations, net of income tax . . . . 114 191 189 107 132
Gain (loss) on sale of subsidiaries, net of income tax . . . . . . . (422) 10 32 187 —
Income (loss) from discontinued operations, net of income
tax..................................... $ (308) $ 201 $ 221 $ 294 $ 132
2008 2007 2006 2005 2004
December 31,
(In millions)
Generalaccountassets.......................... $ 946 $22,866 $21,918 $20,150 $16,852
Separateaccountassets ......................... — 17 16 14 14
Totalassets ................................ $ 946 $22,883 $21,934 $20,164 $16,866
Life and health policyholder liabilities(4) . . . . . . . . . . . . . . . . 721 15,780 15,557 15,109 12,210
Debt ...................................... — 528 307 401 425
Collateralfinancingarrangements.................... — 850 850 — —
Juniorsubordinateddebtsecurities................... — 399 399 399 —
Shares subject to mandatory redemption . . . . . . . . . . . . . . . — 159 159 159 158
Other...................................... 27 2,945 2,676 2,195 2,179
Totalliabilities ............................... $ 748 $20,661 $19,948 $18,263 $14,972
(3) The cumulative effect of a change in accounting, net of income tax, of $86 million for the year ended December 31, 2004, resulted from
the adoption of SOP 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for
Separate Account (“SOP 03-1”).
(4) Policyholder liabilities include future policy benefits, other policyholder funds and bank deposits. The life and health policyholder liabilities
also include policyholder account balances, policyholder dividends payable and the policyholder dividend obligation.
(5) The cumulative effect of changes in accounting principles, net of income tax, of $329 million, which decreased retained earnings at
January 1, 2007, resulted from $292 million related to the adoption of SOP 05-1, Accounting by Insurance Enterprises for Deferred
Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts, and $37 million related to the adoption of
Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes — An Interpretation of FASB
Statement No. 109. The cumulative effect of changes in accounting principles, net of income tax, of $27 million, which increased retained
4MetLife, Inc.