MetLife 2010 Annual Report Download - page 226

Dividend Restrictions
The table below sets forth the dividends permitted to be paid by the respective insurance subsidiary without insurance regulatory approval
and the respective dividends paid:
Company Permitted w/o Approval(1) Paid (2) Permitted w/o Approval(3) Paid(2) Permitted w/o Approval(3)
2011 2010 2009
(In millions)
Metropolitan Life Insurance Company . . . . . . . . . . $1,321 $631 (4) $1,262 $ — $552
American Life Insurance Company (5) . . . . . . . . . . $ 661 $ — $ 511 N/A N/A
MetLife Insurance Company of Connecticut . . . . . . $ 517 $330 $ 659 $ — $714
Metropolitan Property and Casualty Insurance
Company . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $260 $ — $300 $ 9
Metropolitan Tower Life Insurance Company . . . . . . $ 80 $569 (6) $ 93 $ — $ 88
(1) Reflects dividend amounts that may be paid during 2011 without prior regulatory approval. However, because dividend tests may be
based on dividends previously paid over rolling 12-month periods, if paid before a specified date during 2011, some or all of such
dividends may require regulatory approval.
(2) All amounts paid, including those requiring regulatory approval.
(3) Reflects dividend amounts that could have been paid during the relevant year without prior regulatory approval.
(4) Includes securities transferred to the Holding Company of $399 million.
(5) Reflects approximate dividends permitted to be paid and the respective dividends paid since the Acquisition Date. See Note 2.
(6) Includes shares of an affiliate distributed to the Holding Company as an in-kind dividend of $475 million.
In addition to the amounts presented in the table above, for the years ended December 31, 2010 and 2009, cash dividends in the
aggregate amount of $0 and $215 million, respectively, were paid to the Holding Company.
Under New York State Insurance Law, MLIC is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to the
Holding Company as long as the aggregate amount of all such dividends in any calendar year does not exceed the lesser of: (i) 10% of its
surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the
immediately preceding calendar year (excluding realized capital gains). MLIC will be permitted to pay a dividend to the Holding Company in
excess of the lesser of such two amounts only if it files notice of its intention to declare such a dividend and the amount thereof with the
Superintendent and the Superintendent does not disapprove the dividend within 30 days of its filing. Under New York State Insurance Law,
the Superintendent has broad discretion in determining whether the financial condition of a stock life insurance company would support the
payment of such dividends to its shareholders.
Under Delaware State Insurance Law, each of American Life and MTL is permitted, without prior insurance regulatory clearance, to pay a
stockholder dividend to the Holding Company as long as the amount of the dividend when aggregated with all other dividends in the
preceding 12 months does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding
calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). Each
of American Life and MTL will be permitted to pay a dividend to the Holding Company in excess of the greater of such two amounts only if it files
notice of the declaration of such a dividend and the amount thereof with the Delaware Commissioner of Insurance (the “Delaware
Commissioner”) and the Delaware Commissioner either approves the distribution of the dividend or does not disapprove the distribution
within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as unassigned funds) as of the last filed annual
statutory statement requires insurance regulatory approval. Under Delaware State Insurance Law, the Delaware Commissioner has broad
discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its
shareholders.
Under Connecticut State Insurance Law, MICC is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to
its stockholders as long as the amount of such dividends, when aggregated with all other dividends in the preceding 12 months, does not
exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net
gain from operations for the immediately preceding calendar year. MICC will be permitted to pay a dividend in excess of the greater of such
two amounts only if it files notice of its declaration of such a dividend and the amount thereof with the Connecticut Commissioner of Insurance
(the “Connecticut Commissioner”) and the Connecticut Commissioner does not disapprove the payment within 30 days after notice. In
addition, any dividend that exceeds earned surplus (unassigned funds, reduced by 25% of unrealized appreciation in value or revaluation of
assets or unrealized profits on investments) as of the last filed annual statutory statement requires insurance regulatory approval. Under
Connecticut State Insurance Law, the Connecticut Commissioner has broad discretion in determining whether the financial condition of a
stock life insurance company would support the payment of such dividends to its shareholders.
Under Rhode Island State Insurance Law, MPC is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to
the Holding Company as long as the aggregate amount of all such dividends in any twelve-month period does not exceed the lesser of: (i) 10%
of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) net income, not including realized capital gains,
for the immediately preceding calendar year, which may include carry forward net income from the second and third preceding calendar years
excluding realized capital gains and less dividends paid in the second and immediately preceding calendar years. MPC will be permitted to
pay a dividend to the Holding Company in excess of the lesser of such two amounts only if it files notice of its intention to declare such a
dividend and the amount thereof with the Rhode Island Commissioner of Insurance (the “Rhode Island Commissioner”) and the Rhode Island
Commissioner does not disapprove the distribution within 30 days of its filing. Under Rhode Island State Insurance Code, the Rhode Island
F-137MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)