MetLife 2009 Annual Report Download - page 134

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 carrying amount and maximumexposuretolossrelatingtoVIEsforwhichtheCompanyholds
significant variable interests but is not the primary beneficiary and which have not been consolidated at December 31, 2009 and 2008:
Carrying
Amount
Maximum
Exposure
to Loss(1) Carrying Amount
Maximum
Exposure
to Loss(1)
2009 2008
December 31,
(In millions)
Fixed maturity securities available-for-sale:
Foreigncorporatesecurities .............................. $1,254 $1,254 $1,080 $1,080
U.S.corporatesecurities ................................ 1,216 1,216 992 992
Otherlimitedpartnershipinterests............................ 2,543 2,887 3,496 4,004
Otherinvestedassets.................................... 416 409 318 108
Equity securities available-for-sale:
Non-redeemablepreferred ............................... 31 31 — —
Realestatejointventures.................................. 30 30 32 32
Total.............................................. $5,490 $5,827 $5,918 $6,216
(1) The maximum exposure to loss relating to the fixed maturity securities available-for-sale and equity securities available-for-sale is equal to
the carrying amounts or carrying amounts of retained interests. The maximum exposure to loss relating to the real estate joint ventures and
other limited partnership interests is equal to the carrying amounts plus any unfunded commitments. Such a maximum loss would be
expected to occur only upon bankruptcy of the issuer or investee. For certain of its investments in other invested assets, the Company’s
return is in the form of tax credits which are guaranteed by a creditworthy third-party. For such investments, the maximum exposure to loss
is equal to the carrying amounts plus any unfunded commitments, reduced by amounts guaranteed by third parties of $232 million and
$278 million at December 31, 2009 and 2008, respectively.
As described in Note 16, the Company makes commitments to fund partnership investments in the normal course of business. Excluding
these commitments, the Company did not provide financial or other support to investees designated as VIEs during the years ended
December 31, 2009, 2008 and 2007.
4. Derivative Financial Instruments
Accounting for Derivative Financial Instruments
SeeNote1foradescriptionoftheCompany’saccounting policies for derivative financial instruments.
See Note 5 for information about the fair value hierarchy for derivatives.
F-50 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)