MetLife 2010 Annual Report Download - page 235

Operations
Texas Life Insurance Company
During the fourth quarter of 2008, the Holding Company entered into an agreement to sell its wholly-owned subsidiary, Cova, the parent
company of Texas Life, to a third-party and the sale occurred in March 2009. See Note 2. The following table presents the amounts related to
the operations of Cova that have been reflected as discontinued operations in the consolidated statements of operations:
2009 2008
Years Ended December 31,
(In millions)
Totalrevenues ................................................... $25 $134
Totalexpenses................................................... 19 119
Incomebeforeprovisionforincometax ................................... 6 15
Provisionforincometax............................................. 2 4
Income from operations of discontinued operations, net of income tax . . . . . . . . . . . . . . . 4 11
Gainondisposal,netofincometax ..................................... 28 37
Incomefromdiscontinuedoperations,netofincometax ........................ $32 $ 48
Reinsurance Group of America, Incorporated
As more fully described in Note 2, the Company completed a tax-free split-off of its majority-owned subsidiary, RGA in September 2008.
The following table presents the amounts related to the operations of RGA that have been reflected as discontinued operations in the
consolidated statements of operations: Year Ended
December 31, 2008
(In millions)
Totalrevenues ......................................................... $3,952
Totalexpenses......................................................... 3,796
Incomebeforeprovisionforincometax ......................................... 156
Provisionforincometax................................................... 53
Income from discontinued operations, net of income tax, available to MetLife, Inc.’s common
shareholders......................................................... 103
Income from discontinued operations, net of income tax, attributable to noncontrolling interests . . . . 94
Lossondisposal,netofincometax ........................................... (458)
Income(loss)fromdiscontinuedoperations,netofincometax .......................... $ (261)
The operations of RGA included direct policies and reinsurance agreements with MetLife and some of its subsidiaries. These agreements
are generally terminable by either party upon 90 days written notice with respect to future new business. Agreements related to existing
business generally are not terminable, unless the underlying policies terminate or are recaptured. These direct policies and reinsurance
agreements do not constitute significant continuing involvement by the Company with RGA. Included in continuing operations in the
Company’s consolidated statements of operations are amounts related to these transactions, including ceded amounts that reduced
premiums and fees by $158 million and ceded amounts that reduced policyholder benefits and claims by $136 million for the year ended
December 31, 2008 that have not been eliminated as these transactions have continued after the RGA disposition.
24. Subsequent Events
Dividends
On February 18, 2011, the Holding Company announced dividends of $0.2500000 per share, for a total of $6 million, on its Series A
preferred shares, and $0.4062500 per share, for a total of $24 million, on its Series B preferred shares, subject to the final confirmation that it
has met the financial tests specified in the Series A and Series B preferred shares, which the Company anticipates will be made on or about
March 7, 2011. Both dividends will be payable March 15, 2011 to shareholders of record as of February 28, 2011.
Credit Facility
On February 1, 2011, the Holding Company entered into a committed facility with a third-party bank to provide letters of credit for the
benefit of Missouri Reinsurance (Barbados) Inc. (“MoRe”), a captive reinsurance subsidiary, to address its short-term solvency needs based
on guidance from the regulator. This one-year facility provides for the issuance of letters of credit in amounts up to $350 million. Under the
facility, a letter of credit for $250 million was issued on February 2, 2011 and increased to $295 million on February 23, 2011, which
management believes satisfies MoRe’s solvency requirements.
F-146 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)