MetLife 2011 Annual Report Download - page 132

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
Credit Loss Rollforward — Rollforward of the Cumulative Credit Loss Component of OTTI Loss Recognized in Earnings on
Fixed Maturity Securities Still Held for Which a Portion of the OTTI Loss Was Recognized in Other Comprehensive Income
(Loss)
The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still
held for which a portion of the OTTI loss was recognized in other comprehensive income (loss):
Years Ended December 31,
2011 2010
(In millions)
Balance, at January 1, .................................................................. $443 $ 581
Additions:
Initial impairments — credit loss OTTI recognized on securities not previously impaired .............. 45 109
Additional impairments — credit loss OTTI recognized on securities previously impaired ............. 143 125
Reductions:
Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as
credit loss OTTI .................................................................... (90) (260)
Securities de-recognized in connection with the adoption of new guidance related to the consolidation
of VIEs .......................................................................... — (100)
Securities impaired to net present value of expected future cash flows ........................... (57) (2)
Increases in cash flows — accretion of previous credit loss OTTI ............................... (13) (10)
Balance, at December 31, ............................................................... $471 $ 443
Net Investment Income
The components of net investment income were as follows:
Years Ended December 31,
2011 2010 2009
(In millions)
Investment income:
Fixed maturity securities ........................................................ $15,037 $12,407 $11,545
Equity securities .............................................................. 141 128 178
Trading and other securities — Actively Traded Securities and FVO general account
securities(1) ............................................................... 31 73 116
Mortgage loans .............................................................. 3,164 2,824 2,741
Policy loans ................................................................. 641 649 641
Real estate and real estate joint ventures .......................................... 704 391 (245)
Other limited partnership interests ................................................ 681 879 174
Cash, cash equivalents and short-term investments .................................. 167 101 128
International joint ventures(2) .................................................... 3 (81) (115)
Other ...................................................................... 178 236 205
Subtotal ................................................................ 20,747 17,607 15,368
Less: Investment expenses ................................................... 1,029 894 911
Subtotal, net ............................................................ 19,718 16,713 14,457
Trading and other securities — FVO contractholder-directed unit-linked investments(1) ....... (453) 372 284
FVO CSEs:
Commercial mortgage loans .................................................. 332 411 —
Securities ................................................................. 9 15 —
Subtotal ................................................................ (112) 798 284
Net investment income .................................................. $19,606 $17,511 $14,741
(1) Changes in estimated fair value subsequent to purchase for securities still held as of the end of the respective years included in net investment
income were:
Trading and other securities — Actively Traded Securities and FVO general account securities ........ $ (3) $ 30 $ 34
Trading and other securities — FVO contractholder-directed unit-linked investments ................ $(647) $322 $275
128 MetLife, Inc.