MetLife 2011 Annual Report Download - page 133

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
(2) Amounts are presented net of changes in estimated fair value of derivatives related to economic hedges of the Company’s investment in these
equity method international joint venture investments that do not qualify for hedge accounting of ($23) million, $36 million, and ($143) million for the
years ended December 31, 2011, 2010, and 2009, respectively.
See “— Variable Interest Entities” for discussion of CSEs included in the table above.
Securities Lending
As described more fully in Note 1, the Company participates in a securities lending program whereby blocks of securities are loaned to third parties.
These transactions are treated as financing arrangements and the associated cash collateral received is recorded as a liability. The Company is
obligated to return the cash collateral received to its counterparties.
Elements of the securities lending program are presented below at:
December 31,
2011 2010
(In millions)
Securities on loan:(1)
Amortized cost ....................................................................... $20,613 $23,715
Estimated fair value .................................................................... $24,072 $24,230
Cash collateral on deposit from counterparties(2) .............................................. $24,223 $24,647
Security collateral on deposit from counterparties .............................................. $ 371 $ —
Reinvestment portfolio — estimated fair value ................................................. $23,940 $24,177
(1) Included within fixed maturity securities and short-term investments.
(2) Included within payables for collateral under securities loaned and other transactions.
Security collateral on deposit from counterparties in connection with the securities lending transactions may not be sold or repledged, unless the
counterparty is in default, and is not reflected in the consolidated financial statements.
Invested Assets on Deposit, Held in Trust and Pledged as Collateral
Invested assets on deposit, held in trust and pledged as collateral are presented in the table below at estimated fair value for cash and cash
equivalents, short-term investments, fixed maturity securities, equity securities, and trading and other securities and at carrying value for mortgage loans.
December 31,
2011 2010
(In millions)
Invested assets on deposit(1) .............................................................. $ 1,660 $ 2,110
Invested assets held in trust(2) ............................................................. 11,135 8,430
Invested assets pledged as collateral(3) ...................................................... 29,899 29,470
Total invested assets on deposit, held in trust and pledged as collateral ........................... $42,694 $40,010
(1) The Company has invested assets on deposit with regulatory agencies consisting primarily of cash and cash equivalents, short-term investments,
fixed maturity securities and equity securities.
(2) The Company held in trust cash and securities, primarily fixed maturity and equity securities, to satisfy requirements under certain collateral financing
agreements and certain reinsurance agreements.
(3) The Company has pledged fixed maturity securities, mortgage loans and cash and cash equivalents in connection with various agreements and
transactions, including funding and advances agreements (see Notes 8 and 11), collateralized borrowings (see Note 11), collateral financing
arrangements (see Note 12), derivative transactions (see Note 4), and short sale agreements (see “— Trading and Other Securities”).
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