MetLife 2009 Annual Report Download - page 202

Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future
policy benefit liabilities using different actuarial assumptions, reporting surplus notes as surplus instead of debt and valuing securities on a
different basis.
In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. The most significant
assets not admitted by the Company are net deferred income tax assets resulting from temporary differences between statutory accounting
principles basis and tax basis not expected to reverse and become recoverable within three years. Further, statutory accounting principles do
not give recognition to purchase accounting adjustments.
Statutory net income (loss) of Metropolitan Life Insurance Company, a New York domiciled insurer, was $1,221 million, ($338) million and
$2,123 million for the years ended December 31, 2009, 2008 and 2007, respectively. Statutory capital and surplus, as filed with the
Department, was $12.6 billion and $11.6 billion at December 31, 2009 and 2008, respectively.
Statutory net income of MetLife Insurance Company of Connecticut, a Connecticut domiciled insurer, was $81 million, $242 million and
$1,101 million for the years ended December 31, 2009, 2008 and 2007, respectively. Statutory capital and surplus, as filed with the
Connecticut Insurance Department, was $4.9 billion and $5.5 billion at December 31, 2009 and 2008, respectively.
Statutory net income of MPC, a Rhode Island domiciled insurer, was $266 million, $308 million and $400 million for the years ended
December 31, 2009, 2008 and 2007, respectively. Statutory capital and surplus, as filed with the Insurance Department of Rhode Island, was
$1.8 billion at both December 31, 2009 and 2008.
Statutory net income of Metropolitan Tower and Life Insurance Company (“MTL”), a Delaware domiciled insurer, was $57 million,
$212 million and $103 million for the years ended December 31, 2009, 2008 and 2007, respectively. Statutory capital and surplus, as filed
with the Delaware Insurance Department was $867 million and $885 million at December 31, 2009 and 2008, respectively.
Dividend Restrictions
The table below sets forth the dividends permitted to be paid by the respective insurance subsidiary without insurance regulatory approval
and the respective dividends paid:
Company Permitted w/o Approval(1) Paid(2) Permitted w/o Approval(3) Paid(2) Permitted w/o Approval(3)
2010 2009 2008
(In millions)
Metropolitan Life Insurance Company . . . . . . . . . . . . $1,262 $ — $552 $1,318 (4) $1,299
MetLife Insurance Company of Connecticut . . . . . . . . $ 659 $ — $714 $ 500 $1,026
MetropolitanTowerLifeInsuranceCompany........ $ 93 $ — $ 88 $ 277(5) $ 113
Metropolitan Property and Casualty Insurance
Company............................. $ — $300 $ 9 $ 300 $ —
(1) Reflects dividend amounts that may be paid during 2010 without prior regulatory approval. However, if paid before a specified date during
2010, some or all of such dividends may require regulatory approval.
(2) All amounts paid, including those requiring regulatory approval.
(3) Reflects dividend amounts that could have been paid during the relevant year without prior regulatory approval.
(4) As described in Note 2, consists of shares of RGA stock distributed by MLIC to the Holding Company as an in-kind dividend of
$1,318 million.
(5) Includes shares of an affiliate distributed to the Holding Company as an in-kind dividend in the amount of $164 million.
In addition to the amounts presented in the table above, for the years ended December 31, 2009 and 2008, cash dividends in the amount
of $215 million and $235 million, respectively, were paid to the Holding Company.
Under New York State Insurance Law, MLIC is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to the
Holding Company as long as the aggregate amount of all such dividends in any calendar year does not exceed the lesser of: (i) 10% of its
surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the
immediately preceding calendar year (excluding realized capital gains). MLIC will be permitted to pay a dividend to the Holding Company in
excess of the lesser of such two amounts only if it files notice of its intention to declare such a dividend and the amount thereof with the
Superintendent and the Superintendent does not disapprove the distribution within 30 days of its filing. Under New York State Insurance Law,
the Superintendent has broad discretion in determining whether the financial condition of a stock life insurance company would support the
payment of such dividends to its shareholders. The New York State Department of Insurance (the “Department”) has established informal
guidelines for such determinations. The guidelines, among other things, focus on the insurer’s overall financial condition and profitability
under statutory accounting practices.
Under Connecticut State Insurance Law, MICC is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to
its stockholders as long as the amount of such dividends, when aggregated with all other dividends in the preceding 12 months, does not
exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net
gain from operations for the immediately preceding calendar year. MICC will be permitted to pay a dividend in excess of the greater of such
two amounts only if it files notice of its declaration of such a dividend and the amount thereof with the Connecticut Commissioner of Insurance
(the “Connecticut Commissioner”) and the Connecticut Commissioner does not disapprove the payment within 30 days after notice. In
addition, any dividend that exceeds earned surplus (unassigned funds, reduced by 25% of unrealized appreciation in value or revaluation of
assets or unrealized profits on investments) as of the last filed annual statutory statement requires insurance regulatory approval. Under
F-118 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)