MetLife 2010 Annual Report Download - page 133

Concentration of Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
The Company’s gross unrealized losses related to its fixed maturity and equity securities, including the portion of OTTI loss on fixed
maturity securities recognized in accumulated other comprehensive income (loss) of $6.9 billion and $10.8 billion at December 31, 2010 and
2009, respectively, were concentrated, calculated as a percentage of gross unrealized loss and OTTI loss, by sector and industry as follows:
2010 2009
December 31,
Sector:
U.S.corporatesecurities.................................................... 24% 25%
RMBS................................................................ 20 24
Foreigncorporatesecurities.................................................. 14 11
ABS ................................................................. 10 12
Foreigngovernmentsecurities ................................................ 9 1
U.S.Treasury,agencyandgovernmentguaranteedsecurities............................ 8 9
Stateandpoliticalsubdivisionsecurities.......................................... 8 4
CMBS................................................................ 4 10
Other ................................................................ 3 4
Total................................................................ 100% 100%
Industry:
Mortgage-backed ........................................................ 24% 34%
Finance............................................................... 21 22
Asset-backed........................................................... 10 12
Foreigngovernmentsecurities ................................................ 9 1
U.S.Treasury,agencyandgovernmentguaranteedsecurities............................ 8 9
Stateandpoliticalsubdivisionsecurities.......................................... 8 4
Utility ................................................................ 5 4
Consumer ............................................................. 4 4
Communications ......................................................... 2 2
Industrial .............................................................. 2 1
Other ................................................................ 7 7
Total................................................................ 100% 100%
Evaluating Temporarily Impaired Available-for-Sale Securities
The following table presents the Company’s fixed maturity and equity securities, each with a gross unrealized loss of greater than
$10 million, the number of securities, total gross unrealized loss and percentage of total gross unrealized loss at:
Fixed Maturity
Securities Equity Securities Fixed Maturity Securities Equity Securities
2010 2009
December 31,
(In millions, except number of securities)
Numberofsecurities.............................. 107 6 223 9
Totalgrossunrealizedloss .......................... $2,014 $103 $4,465 $132
Percentageoftotalgrossunrealizedloss................. 30% 43% 43% 48%
Fixed maturity and equity securities, each with a gross unrealized loss greater than $10 million, decreased $2.5 billion during the year
ended December 31, 2010. The cause of the decline in, or improvement in, gross unrealized losses for the year ended December 31, 2010,
was primarily attributable to a decrease in interest rates and narrowing of credit spreads. These securities were included in the Company’s
OTTI review process. Based upon the Company’s current evaluation of these securities and other available-for-sale securities in an unrealized
loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of
security) about holding, selling and any requirements to sell these securities, the Company has concluded that these securities are not
other-than-temporarily impaired.
In the Company’s impairment review process, the duration and severity of an unrealized loss position for equity securities is given greater
weight and consideration than for fixed maturity securities. An extended and severe unrealized loss position on a fixed maturity security may
not have any impact on the ability of the issuer to service all scheduled interest and principal payments and the Company’s evaluation of
recoverability of all contractual cash flows or the ability to recover an amount at least equal to its amortized cost based on the present value of
the expected future cash flows to be collected. In contrast, for an equity security, greater weight and consideration is given by the Company to
a decline in market value and the likelihood such market value decline will recover.
F-44 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)