MetLife 2009 Annual Report Download - page 133

Mortgage Servicing Rights
The following table presents the carrying value and changes in capitalized MSRs, which are included in other invested assets:
2009 2008
Years Ended December 31,
(In millions)
Estimatedfairvalue,January1,.......................................... $191 $ —
AcquisitionofMSRs ................................................. 117 350
OriginationofMSRs ................................................. 511 —
Reductionsduetoloanpayments ........................................ (113) (10)
Reductionsduetosales............................................... — —
Changes in estimated fair value due to:
Changesinvaluationmodelinputsorassumptions ............................ 172 (149)
Otherchangesinestimatedfairvalue..................................... — —
Estimatedfairvalue,December31, ....................................... $878 $191
The Company recognizes the rights to service residential mortgage loans as MSRs. MSRs are either acquired or are generated from the
sale of originated residential mortgage loans where the servicing rights are retained by the Company. MSRs are carried at estimated fair value
and changes in estimated fair value, primarily due to changes in valuation inputs and assumptions and to the collection of expected cash
flows, are reported in other revenues in the period in which the change occurs. See also Note 5 for further information about how the
estimated fair value of MSRs is determined and other related information.
Variable Interest Entities
The Company invests in certain entities that are VIEs, as a passive investor holding a limited partnership interest, or as a sponsor or debt
holder. The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the
primary beneficiary and which are consolidated in the Company’s financial statements at December 31, 2009 and 2008. Generally, creditors
or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as
the Company’s obligation to the VIEs is limited to the amount of its committed investment.
Total
Assets Total Liabilities Total Assets Tot al Liabilities
2009 2008
December 31,
(In millions)
MRSCcollateralfinancingarrangement(1)........................ $3,230 $— $2,361 $—
Otherlimitedpartnershipinterests............................. 367 72 20 3
Otherinvestedassets .................................... 27 1 10 3
Realestatejointventures .................................. 22 17 26 15
Total................................................ $3,646 $90 $2,417 $21
(1) See Note 12 for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement. At
December 31, 2009 and 2008, these assets are presented at estimated fair value and consist of the following:
2009 2008
December 31,
(In millions)
Fixed maturity securities available-for-sale:
U.S.corporatesecurities ................................................ $1,049 $ 948
ABS.............................................................. 963 409
RMBS............................................................. 672 561
CMBS ............................................................ 348 98
Foreigncorporatesecurities .............................................. 80 95
U.S.Treasury,agencyandgovernmentguaranteedsecurities......................... 33 —
Stateandpoliticalsubdivisionsecurities ...................................... 21 21
Foreigngovernmentsecurities............................................. 5 5
Cash and cash equivalents (including cash held in trust of less than $1 million and $60 million,
respectively) ........................................................ 59 224
Total............................................................... $3,230 $2,361
F-49MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)