MetLife 2009 Annual Report Download - page 119

With respect to equity securities, the Company considers in its OTTI analysis its intent and ability to hold a particular equity security for a
period of time sufficient to allow for the recovery of its value to an amount equal to or greater than cost. Decisions to sell equity securities are
based on current conditions in relation to the same broad portfolio management considerations in a manner consistent with that described
above for fixed maturity securities.
With respect to perpetual hybrid securities, some of which are classified as fixed maturity securities and some of which are classified as
equity securities, within non-redeemable preferred stock, the Company considers in its OTTI analysis whether there has been any
deterioration in credit of the issuer and the likelihood of recovery in value of the securities that are in a severe and extended unrealized
loss position. The Company also considers whether any perpetual hybrid securities with an unrealized loss, regardless of credit rating, have
deferred any dividend payments.
Net Unrealized Investment Gains (Losses)
The components of net unrealized investment gains (losses), included in accumulated other comprehensive income (loss), are as follows
at:
2009 2008 2007
Years Ended December 31,
(In millions)
Fixed maturity securities that were temporarily impaired . . . . . . . . . . . . . . . . . . . . . $(1,208) $(21,246) $ 3,479
Fixed maturity securities with noncredit OTTI losses in other comprehensive loss . . . . . (859) — —
Totalfixedmaturitysecurities..................................... (2,067) (21,246) 3,479
Equitysecurities............................................... (103) (934) 159
Derivatives .................................................. (144) (2) (373)
Other...................................................... 71 53 3
Subtotal .................................................. (2,243) (22,129) 3,268
Amounts allocated from:
Insuranceliabilitylossrecognition.................................. (118) 42 (608)
DAC and VOBA on which noncredit OTTI losses have been recognized . . . . . . . . . . 71 — —
DACandVOBA.............................................. 145 3,025 (327)
Policyholderdividendobligation ................................... — — (789)
Subtotal................................................. 98 3,067 (1,724)
Deferred income tax benefit (expense) on which noncredit OTTI losses have been
recognized................................................. 275 — —
Deferredincometaxbenefit(expense) ................................ 539 6,508 (423)
Netunrealizedinvestmentgains(losses)............................... (1,331) (12,554) 1,121
Net unrealized investment gains (losses) attributable to noncontrolling interests . . . . . . 1 (10) (150)
Net unrealized investment gains (losses) attributable to MetLife, Inc. . . . . . . . . . . . . . $(1,330) $(12,564) $ 971
Fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive loss, as presented above of $859 million,
includes $126 million related to the transition adjustment, $939 million ($857 million, net of DAC) of noncredit losses recognized in the year
ended December 31, 2009 and $206 million of subsequent increases in estimated fair value during the year ended December 31, 2009 on
such securities for which a noncredit loss was previously recognized in accumulated other comprehensive loss.
F-35MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)