MetLife 2010 Annual Report Download - page 78

The Holding Company lends funds, as necessary, to its subsidiaries, some of which are regulated, to meet their capital requirements.
Such loans are included in loans to subsidiaries and consisted of the following at:
Subsidiaries Interest Rate Maturity Date 2010 2009
December 31,
(In millions)
Metropolitan Life Insurance Company . . . . . . . . 6-month LIBOR + 1.80% December 31, 2011 $ 775 $ 775
Metropolitan Life Insurance Company . . . . . . . . 6-month LIBOR + 1.80% December 31, 2011 — 300
Metropolitan Life Insurance Company . . . . . . . . 7.13% December 15, 2032 400 400
Metropolitan Life Insurance Company . . . . . . . . 7.13% January 15, 2033 100 100
Total ............................ $1,275 $1,575
Debt Repayments. The Holding Company intends to either repay all or refinance in whole or in part the debt that is due in December
2011. See “— The Holding Company — Liquidity and Capital Sources — Senior Notes.”
Support Agreements. The Holding Company is party to various capital support commitments and guarantees with certain of its
subsidiaries and a corporation in which it owns 50% of the equity. Under these arrangements, the Holding Company has agreed to cause
each such entity to meet specified capital and surplus levels or has guaranteed certain contractual obligations.
In November 2010, the Holding Company guaranteed the obligations of Exeter Reassurance Company, Ltd. (“Exeter”) in an aggregate
amount up to $1.0 billion, under a reinsurance agreement with MetLife Europe Limited (“MEL”), under which Exeter reinsures the guaranteed
living benefits and guaranteed death benefits associated with certain unit-linked annuity contracts issued by MEL.
In January 2010, the Holding Company guaranteed the obligations of its subsidiary, Missouri Reinsurance (Barbados) Inc. (“MoRe”), under
a retrocession agreement with RGA Reinsurance (Barbados) Inc., pursuant to which MoRe retrocedes certain group term life insurance
issued by MLIC.
In December 2009, the Holding Company, in connection with MetLife Reinsurance Company of Vermont (“MRV”)’s reinsurance of certain
universal life and term life insurance risks, committed to the Vermont Department of Banking, Insurance, Securities and Health Care
Administration to take necessary action to cause the third protected cell of MRV to maintain total adjusted capital equal to or greater than
200% of such protected cell’s authorized control level RBC, as defined in state insurance statutes. See “— The Company — Liquidity and
Capital Sources — Credit and Committed Facilities” and Note 11 of the Notes to the Consolidated Financial Statements.
The Holding Company, in connection with MRV’s reinsurance of certain universal life and term life insurance risks, committed to the
Vermont Department of Banking, Insurance, Securities and Health Care Administration to take necessary action to cause each of the two initial
protected cells of MRV to maintain total adjusted capital equal to or greater than 200% of such protected cell’s authorized control level RBC,
as defined in state insurance statutes. See “— The Company — Liquidity and Capital Sources — Credit and Committed Facilities” and
Note 11 of the Notes to the Consolidated Financial Statements.
The Holding Company, in connection with the collateral financing arrangement associated with MRC’s reinsurance of a portion of the
liabilities associated with the closed block, committed to the South Carolina Department of Insurance to make capital contributions, if
necessary, to MRC so that MRC may at all times maintain its total adjusted capital at a level of not less than 200% of the company action
level RBC, as defined in state insurance statutes as in effect on the date of determination or December 31, 2007, whichever calculation
produces the greater capital requirement, or as otherwise required by the South Carolina Department of Insurance. See “— The Company —
Liquidity and Capital Sources — Debt Issuances and Other Borrowings” and Note 12 of the Notes to the Consolidated Financial Statements.
The Holding Company, in connection with the collateral financing arrangement associated with MRSC’s reinsurance of universal life
secondary guarantees, committed to the South Carolina Department of Insurance to take necessary action to cause MRSC to maintain total
adjusted capital equal to the greater of $250,000 or 100% of MRSC’s authorized control level RBC, as defined in state insurance statutes. See
“— The Company — Liquidity and Capital Sources — Debt Issuances and Other Borrowings” and Note 12 of the Notes to the Consolidated
Financial Statements.
The Holding Company has net worth maintenance agreements with two of its insurance subsidiaries, MetLife Investors Insurance
Company and First MetLife Investors Insurance Company. Under these agreements, as subsequently amended, the Holding Company
agreed, without limitation as to the amount, to cause each of these subsidiaries to have a minimum capital and surplus of $10 million, total
adjusted capital at a level not less than 150% of the company action level RBC, as defined by state insurance statutes, and liquidity necessary
to enable it to meet its current obligations on a timely basis.
The Holding Company entered into a net worth maintenance agreement with Mitsui Sumitomo MetLife Insurance Company Limited (“MSI
MetLife”), an investment in Japan of which the Holding Company owns 50% of the equity. Under the agreement, the Holding Company agreed,
without limitation as to amount, to cause MSI MetLife to have the amount of capital and surplus necessary for MSI MetLife to maintain a
solvency ratio of at least 400%, as calculated in accordance with the Insurance Business Law of Japan, and to make such loans to MSI MetLife
as may be necessary to ensure that MSI MetLife has sufficient cash or other liquid assets to meet its payment obligations as they fall due. As
described in Note 2 of the Notes to the Consolidated Financial Statements, the Holding Company reached an agreement to sell its 50%
interest in MSI MetLife to a third-party. Upon the close of such sale, the Holding Company’s obligations under the net worth maintenance
agreement will terminate.
The Holding Company has guaranteed the obligations of its subsidiary, Exeter, under a reinsurance agreement with MSI MetLife, under
which Exeter reinsures variable annuity business written by MSI MetLife. This guarantee will remain in place until such time as the reinsurance
agreement between Exeter and MSI MetLife is terminated, notwithstanding any prior disposition of the Holding Company’s interest in MSI
MetLife as described in Note 2 of the Notes to the Consolidated Financial Statements.
The Holding Company also guarantees the obligations of a number of its subsidiaries under credit facilities with third-party banks. See
Note 11 of the Notes to the Consolidated Financial Statements.
Adoption of New Accounting Pronouncements
See “Adoption of New Accounting Pronouncements” in Note 1 of the Notes to the Consolidated Financial Statements.
75MetLife, Inc.