MetLife 2009 Annual Report Download - page 124

The following table presents certain information about the Company’s equity securities available-for-sale with a gross unrealized loss of
20% or more at December 31, 2009:
Gross
Unrealized
Loss
Gross
Unrealized
Loss
%ofAll
Equity
Securities
Gross
Unrealized
Loss
%ofAll
Non-Redeemable
Preferred Stock
Gross
Unrealized
Loss %ofAll Industries
%A
Rated or
Better
All Types of
Non-Redeemable
Preferred Stock
All Equity
Securities All Industries Financial Services Industry
Investment Grade
Non-Redeemable Preferred Stock
(In millions)
Lessthansixmonths......... $ 14 $ 13 93% $ 9 69% $ 9 100% 3%
Six months or greater but less
than twelve months . . . . . . . . . 40 39 98% 39 100% 37 95% 99%
Twelve months or greater . . . . . . 138 138 100% 138 100% 136 99% 62%
All equity securities with a gross
unrealized loss of 20% or
more.................. $192 $190 99% $186 98% $182 98% 67%
In connection with the equity securities impairment review process at December 31, 2009, the Company evaluated its holdings in non-
redeemable preferred stock, particularly those of financial services companies. The Company considered several factors including whether
there has been any deterioration in credit of the issuer and the likelihood of recovery in value of non-redeemable preferred stock with a severe
or an extended unrealized loss. The Company also considered whether any non-redeemable preferred stock with an unrealized loss,
regardless of credit rating, have deferred any dividend payments. No such dividend payments were deferred.
With respect to common stock holdings, the Company considered the duration and severity of the unrealized losses for securities in an
unrealized loss position of 20% or more; and the duration of unrealized losses for securities in an unrealized loss position of 20% or less in an
extended unrealized loss position (i.e., 12 months or greater).
Future other-than-temporary impairments will depend primarily on economic fundamentals, issuer performance (including changes in the
present value of future cash flows expected to be collected), changes in credit rating, changes in collateral valuation, changes in interest
rates and changes in credit spreads. If economic fundamentals and any of the above factors deteriorate, additional other-than-temporary
impairments may be incurred in upcoming quarters.
Net Investment Gains (Losses)
As described more fully in Note 1, effective April 1, 2009, the Company adopted new guidance on the recognition and presentation of OTTI
that amends the methodology to determine for fixed maturity securities whether an OTTI exists, and for certain fixed maturity securities,
changes how OTTI losses that are charged to earnings are measured. There was no change in the methodology for identification and
measurement of OTTI losses charged to earnings for impaired equity securities.
The components of net investment gains (losses) are as follows:
2009 2008 2007
Years Ended December 31,
(In millions)
Total losses on fixed maturity securities:
TotalOTTIlossesrecognized......................................... $(2,439) $(1,296) $ (78)
Less: Noncredit portion of OTTI losses transferred to and recognized in other
comprehensiveloss............................................. 939 — —
NetOTTIlossesonfixedmaturitysecuritiesrecognizedinearnings .............. (1,500) (1,296) (78)
Fixedmaturitysecurities—netgains(losses)onsalesanddisposals............. (163) (657) (537)
Totallossesonfixedmaturitysecurities............................... (1,663) (1,953) (615)
Other net investment gains (losses):
Equitysecurities ............................................... (399) (253) 164
Mortgageloans................................................ (442) (136) 3
Realestateandrealestatejointventures ............................... (164) (18) 46
Otherlimitedpartnershipinterests.................................... (356) (140) 16
Freestandingderivatives .......................................... (6,624) 6,560 61
Embeddedderivatives............................................ 1,758 (2,650) (321)
Other ...................................................... 118 402 68
Total net investment gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(7,772) $ 1,812 $(578)
F-40 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)