MetLife 2010 Annual Report Download - page 190

At December 31, 2010, the Company had $13.1 billion of net unaffiliated ceded reinsurance recoverables. Of this total, $10.0 billion, or
76%, were with the Company’s five largest unaffiliated ceded reinsurers, including $3.6 billion of which were unsecured. At December 31,
2009, the Company had $11.7 billion of net unaffiliated ceded reinsurance recoverables. Of this total, $9.2 billion, or 79%, were with the
Company’s five largest unaffiliated ceded reinsurers, including $3.0 billion of which were unsecured.
The Company has reinsured with an unaffiliated third-party reinsurer, 49.25% of the closed block through a modified coinsurance
agreement. The Company accounts for this agreement under the deposit method of accounting. The Company, having the right of offset, has
offset the modified coinsurance deposit with the deposit recoverable.
The amounts in the consolidated statements of operations include the impact of reinsurance. Information regarding the effect of
reinsurance is as follows:
2010 2009 2008
Years Ended December 31,
(In millions)
Premiums:
Directpremiums............................................. $27,923 $27,472 $27,058
Reinsuranceassumed......................................... 1,377 1,313 1,466
Reinsuranceceded........................................... (1,906) (2,325) (2,610)
Netpremiums............................................. $27,394 $26,460 $25,914
Universal life and investment-type product policy fees:
Directuniversallifeandinvestment-typeproductpolicyfees ................ $ 6,630 $ 5,790 $ 5,909
Reinsuranceassumed......................................... 138 106 79
Reinsuranceceded........................................... (731) (693) (607)
Netuniversallifeandinvestment-typeproductpolicyfees ................ $ 6,037 $ 5,203 $ 5,381
Other revenues:
Directotherrevenues ......................................... $ 2,256 $ 2,264 $ 1,481
Reinsuranceassumed......................................... — 1 —
Reinsuranceceded........................................... 72 64 105
Netotherrevenues ......................................... $ 2,328 $ 2,329 $ 1,586
Policyholder benefits and claims:
Directpolicyholderbenefitsandclaims.............................. $31,762 $30,363 $29,772
Reinsuranceassumed......................................... 1,275 1,024 1,235
Reinsuranceceded........................................... (3,492) (3,051) (3,570)
Netpolicyholderbenefitsandclaims .............................. $29,545 $28,336 $27,437
Interest credited to policyholder account balances:
Directinterestcreditedtopolicyholderaccountbalances .................. $ 4,923 $ 4,846 $ 4,787
Reinsuranceassumed......................................... 2 3 1
Reinsuranceceded........................................... — — —
Netinterestcreditedtopolicyholderaccountbalances .................. $ 4,925 $ 4,849 $ 4,788
Policyholder dividends:
Directpolicyholderdividends .................................... $ 1,486 $ 1,650 $ 1,751
Reinsuranceassumed......................................... 17 13 5
Reinsuranceceded........................................... (17) (13) (5)
Netpolicyholderdividends..................................... $ 1,486 $ 1,650 $ 1,751
Other expenses:
Directotherexpenses......................................... $12,911 $10,602 $12,107
Reinsuranceassumed......................................... 116 100 57
Reinsuranceceded........................................... (224) (146) (217)
Netotherexpenses ......................................... $12,803 $10,556 $11,947
F-101MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)