MetLife 2010 Annual Report Download - page 191

The amounts in the consolidated balance sheets include the impact of reinsurance. Information regarding the effect of reinsurance is as
follows:
Total
Balance
Sheet Assumed Ceded Total , Net of Reinsurance
December 31, 2010
(In millions)
Assets:
Premiums,reinsuranceandotherreceivables ................. $ 19,830 $ 722 $13,561 $ 5,547
Deferred policy acquisition costs and value of business acquired . . . . . 27,307 176 (179) 27,310
Totalassets...................................... $ 47,137 $ 898 $13,382 $ 32,857
Liabilities:
Futurepolicybenefits................................. $173,373 $2,074 $ (65) $171,364
Policyholder account balances . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,020 2,237 — 208,783
Otherpolicy-relatedbalances............................ 15,806 265 506 15,035
Otherliabilities ..................................... 20,386 608 2,703 17,075
Totalliabilities..................................... $420,585 $5,184 $ 3,144 $412,257
Total
Balance
Sheet Assumed Ceded Total , Net of Reinsurance
December 31, 2009
(In millions)
Assets:
Premiums,reinsuranceandotherreceivables ................. $ 16,752 $ 550 $12,274 $ 3,928
Deferred policy acquisition costs and value of business acquired . . . . . 19,256 190 (206) 19,272
Totalassets...................................... $ 36,008 $ 740 $12,068 $ 23,200
Liabilities:
Futurepolicybenefits................................. $135,879 $2,000 $ (43) $133,922
Policyholder account balances . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,673 1,321 — 137,352
Otherpolicy-relatedbalances............................ 8,446 257 494 7,695
Otherliabilities ..................................... 15,989 364 2,489 13,136
Totalliabilities..................................... $298,987 $3,942 $ 2,940 $292,105
Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded
using the deposit method of accounting. The deposit assets on ceded reinsurance were $2,530 million and $2,564 million at December 31,
2010 and 2009, respectively. The deposit liabilities for assumed reinsurance were $47 million and $52 million at December 31, 2010 and
2009, respectively.
10. Closed Block
On April 7, 2000 (the “Demutualization Date”), MLIC converted from a mutual life insurance company to a stock life insurance company and
became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance
(the “Superintendent”) approving MLIC’s plan of reorganization, as amended (the “Plan”). On the Demutualization Date, MLIC established a
closed block for the benefit of holders of certain individual life insurance policies of MLIC. Assets have been allocated to the closed block in an
amount that has been determined to produce cash flows which, together with anticipated revenues from the policies included in the closed
block, are reasonably expected to be sufficient to support obligations and liabilities relating to these policies, including, but not limited to,
provisions for the payment of claims and certain expenses and taxes, and to provide for the continuation of policyholder dividend scales in
effect for 1999, if the experience underlying such dividend scales continues, and for appropriate adjustments in such scales if the experience
changes. At least annually, the Company compares actual and projected experience against the experience assumed in the then-current
dividend scales. Dividend scales are adjusted periodically to give effect to changes in experience.
The closed block assets, the cash flows generated by the closed block assets and the anticipated revenues from the policies in the closed
block will benefit only the holders of the policies in the closed block. To the extent that, over time, cash flows from the assets allocated to the
closed block and claims and other experience related to the closed block are, in the aggregate, more or less favorable than what was
assumed when the closed block was established, total dividends paid to closed block policyholders in the future may be greater than or less
than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect for 1999 had been
continued. Any cash flows in excess of amounts assumed will be available for distribution over time to closed block policyholders and will not
be available to stockholders. If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be
made from assets outside of the closed block. The closed block will continue in effect as long as any policy in the closed block remains in-
force. The expected life of the closed block is over 100 years.
F-102 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)