MetLife 2009 Annual Report Download - page 73

Credit and Committed Facilities. In 2007, the Holding Company and MetLife Funding entered into a credit agreement with various
financial institutions. The proceeds of this $2.85 billion unsecured credit facility, as amended in 2008, are available to be used for general
corporate purposes, as back-up for their commercial paper programs and for the issuance of letters of credit. At December 31, 2009, the
Holding Company had outstanding $548 million in letters of credit and no drawdowns against this facility. Remaining unused commitments
were $2.3 billion at December 31, 2009.
The Holding Company maintains committed facilities with a capacity of $1.8 billion. At December 31, 2009, the Holding Company had
outstanding $712 million in letters of credit and no aggregate drawdowns against these facilities. Remaining unused commitments were
$1.1 billion at December 31, 2009. In addition, the Holding Company is a party to committed facilities of certain of its subsidiaries, which
aggregated $11.0 billion at December 31, 2009. The committed facilities are used for collateral for certain of the Company’s affiliated
reinsurance liabilities.
For more information on Credit and Committed Facilities see Note 11 of the Notes to the Consolidated Financial Statements.
Covenants. Certain of the Holding Company’s debt instruments, credit facilities and committed facilities contain various administrative,
reporting, legal and financial covenants. The Holding Company believes it was in compliance with all covenants at December 31, 2009 and
2008.
Common and Preferred Stock. For information on Common Stock and Preferred Stock issued by the Holding Company, see “— The
Company — Liquidity and Capital Sources — Common Stock” and “— The Company — Liquidity and Capital Sources — Preferred Stock.”
Liquidity and Capital Uses
The primary uses of liquidity of the Holding Company include debt service, cash dividends on common and preferred stock, capital
contributions to subsidiaries, payment of general operating expenses, acquisitions and the repurchase of the Holding Company’s common
stock.
Affiliated Capital Transactions. During the years ended December 31, 2009 and 2008, the Holding Company invested an aggregate of
$986 million and $2.6 billion, respectively, in various subsidiaries.
The Holding Company lends funds, as necessary, to its subsidiaries, some of which are regulated, to meet their capital requirements.
Such loans are included in loans to subsidiaries and consisted of the following at:
Subsidiaries Interest Rate Maturity Date 2009 2008
December 31,
(In millions)
Metropolitan Life Insurance Company . . . . . . . . 3-month LIBOR + 1.15% December 31, 2009 $ — $ 700
Metropolitan Life Insurance Company . . . . . . . . 6-month LIBOR + 1.80% December 31, 2011 775 —
Metropolitan Life Insurance Company . . . . . . . . 6-month LIBOR + 1.80% December 31, 2011 300 —
Metropolitan Life Insurance Company . . . . . . . . 7.13% December 15, 2032 400 400
Metropolitan Life Insurance Company . . . . . . . . 7.13% January 15, 2033 100 100
Total ............................ $1,575 $1,200
Debt Repayments. None of the Holding Company’s debt is due before December 2011, so there is no near-term debt refinancing risk.
Support Agreements. The Holding Company is party to various capital support commitments and guarantees with certain of its
subsidiaries and a corporation in which it owns 50% of the equity. Under these arrangements, the Holding Company has agreed to cause
each such entity to meet specified capital and surplus levels or has guaranteed certain contractual obligations.
In December 2009, the Holding Company, in connection with MRV’s reinsurance of certain universal life and term life insurance risks,
committed to the Vermont Department of Banking, Insurance, Securities and Health Care Administration to take necessary action to cause the
third protected cell of MRV to maintain total adjusted capital equal to or greater than 200% of such protected cell’s authorized control
level RBC, as defined in state insurance statutes. See “— The Company — Liquidity and Capital Sources — Credit and Committed Facilities”
and Note 11 of the Notes to the Consolidated Financial Statements.
In October 2007, the Holding Company, in connection with MRV’s reinsurance of certain universal life and term life insurance risks,
committed to the Vermont Department of Banking, Insurance, Securities and Health Care Administration to take necessary action to cause
each of the two initial protected cells of MRV to maintain total adjusted capital equal to or greater than 200% of such protected cell’s
authorized control level RBC, as defined in state insurance statutes. See “— The Company — Liquidity and Capital Sources — Credit and
Committed Facilities” and Note 11 of the Notes to the Consolidated Financial Statements.
In December 2007, the Holding Company, in connection with the collateral financing arrangement associated with MRC’s reinsurance of a
portion of the liabilities associated with the closed block, committed to the South Carolina Department of Insurance to make capital
contributions, if necessary, to MRC so that MRC may at all times maintain its total adjusted capital at a level of not less than 200% of the
company action level RBC, as defined in state insurance statutes as in effect on the date of determination or December 31, 2007, whichever
calculation produces the greater capital requirement, or as otherwise required by the South Carolina Department of Insurance. See “— The
Company — Liquidity and Capital Sources — Debt Issuances and Other Borrowings” and Note 12 of the Notes to the Consolidated Financial
Statements.
In May 2007, the Holding Company, in connection with the collateral financing arrangement associated with MRSC’s reinsurance of
universal life secondary guarantees, committed to the South Carolina Department of Insurance to take necessary action to cause MRSC to
maintain total adjusted capital equal to the greater of $250,000 or 100% of MRSC’s authorized control level RBC, as defined in state insurance
statutes. See “— The Company — Liquidity and Capital Sources — Debt Issuances and Other Borrowings” and Note 12 of the Notes to the
Consolidated Financial Statements.
The Holding Company has net worth maintenance agreements with two of its insurance subsidiaries, MetLife Investors Insurance
Company and First MetLife Investors Insurance Company. Under these agreements, as subsequently amended, the Holding Company
agreed, without limitation as to the amount, to cause each of these subsidiaries to have a minimum capital and surplus of $10 million, total
adjusted capital at a level not less than 150% of the company action level RBC, as defined by state insurance statutes, and liquidity necessary
to enable it to meet its current obligations on a timely basis.
67MetLife, Inc.