MetLife 2009 Annual Report Download - page 66

Share Repurchases. The table below presents the common stock repurchase programs authorized by the Company’s Board of Directors
and the aggregate amount and number of shares of MetLife, Inc.’s common stock purchased pursuant to these authorizations:
Amount Shares Repurchased
(In millions)
Remaining authorization at December 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 216
February 2007 and September 2007 additional authorizations . . . . . . . . . . . . . . . . . . . . 2,000
Accelerated share repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,505) 23,455,124
Open market repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (200) 3,171,700
Remaining authorization at December 31, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511
January 2008 and April 2008 additional authorizations . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Accelerated share repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,162) 19,716,418
Open market repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (88) 1,550,000
Remaining authorization at December 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,261
Additionalauthorizations............................................ —
Acceleratedsharerepurchases ....................................... —
Openmarketrepurchases........................................... —
Remaining authorization at December 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,261
Under these authorizations, the Holding Company may purchase its common stock from the MetLife Policyholder Trust, in the open market
(including pursuant to the terms of a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Exchange Act) and in privately
negotiated transactions. Future common stock repurchases will be dependent upon several factors, including the Company’s capital
position, its financial strength and credit ratings, general market conditions and the price of MetLife, Inc.’s common stock. The Company does
not intend to make any purchases under the common stock repurchase program in 2010.
MetLife Bank. At December 31, 2009, the Company held $2,728 million in residential mortgage loans held-for-sale, compared with
$2,012 million at December 31, 2008, an increase of $716 million. From time to time, MetLife Bank has an increased cash need to fund
mortgage loans that it generally holds for a relatively short period before selling them to one of the government-sponsored enterprises such as
FNMA or FHLMC. To meet these increased funding requirements, as well as to increase overall liquidity, MetLife Bank takes advantage of
collateralized borrowing opportunities with the Federal Reserve Bank of New York and the FHLB of NY. For further detail on MetLife Bank’s use
of these funding sources, see “— The Company — Liquidity and Capital Sources — Global Funding Sources.”
Investment and Other. Additional cash outflows include those related to obligations of securities lending activities, investments in real
estate, limited partnerships and joint ventures, as well as litigation-related liabilities. Also, the Company pledges collateral to, and has
collateral pledged to it by, counterparties under the Company’s current derivative transactions. With respect to derivative transactions with
credit ratings downgrade triggers, a two-notch downgrade would have impacted the Company’s derivative collateral requirements by
$146 million at December 31, 2009. In addition, the Company has pledged collateral and has had collateral pledged to it, and may be required
from time to time to pledge additional collateral or be entitled to have additional collateral pledged to it, in connection with collateral financing
arrangements related to the reinsurance of closed block liabilities and universal life secondary guarantee liabilities. See “— The Company —
Liquidity and Capital Sources — Collateral Financing Arrangements.”
Securities Lending. The Company participates in a securities lending program whereby blocks of securities, which are included in fixed
maturity securities and short-term investments, are loaned to third parties, primarily brokerage firms and commercial banks, and the Company
receives cash collateral from the borrower, which must be returned to the borrower when the loaned securities are returned to the Company.
Under the Company’s securities lending program, the Company was liable for cash collateral under its control of $21.5 billion and $23.3 billion
at December 31, 2009 and 2008, respectively. Of these amounts, $3.3 billion and $5.1 billion at December 31, 2009 and 2008, respectively,
were on open terms, meaning that the related loaned security could be returned to the Company on the next business day upon return of cash
collateral. Of the $3.2 billion of estimated fair value of the securities related to the cash collateral on open terms at December 31, 2009,
$3.0 billion were U.S. Treasury, agency and government guaranteed securities which, if put to the Company, can be immediately sold to
satisfy the cash requirements. See “— Investments — Securities Lending” for further information.
Other. In September 2008, in connection with the split-off of RGA as described in Note 2 of the Notes to the Consolidated Financial
Statements, the Company received from MetLife stockholders 23,093,689 shares of MetLife Inc.’s common stock with a market value of
$1,318 million and, in exchange, delivered 29,243,539 shares of RGA Class B common stock with a net book value of $1,716 million resulting
in a loss on disposition, including transaction costs, of $458 million.
60 MetLife, Inc.