MetLife 2011 Annual Report Download - page 183

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
Separate Accounts
Separate account assets and liabilities include two categories of account types: pass-through separate accounts totaling $158.8 billion and
$149.0 billion at December 31, 2011 and 2010, respectively, for which the policyholder assumes all investment risk, and separate accounts for which
the Company contractually guarantees either a minimum return or account value to the policyholder which totaled $44.2 billion and $34.1 billion at
December 31, 2011 and 2010, respectively. The latter category consisted primarily of funding agreements and participating close-out contracts. The
average interest rate credited on these contracts was 3.12% and 3.32% at December 31, 2011 and 2010, respectively.
For the years ended December 31, 2011, 2010 and 2009, there were no investment gains (losses) on transfers of assets from the general account
to the separate accounts.
Obligations Under Funding Agreements
The Company issues fixed and floating rate funding agreements, which are denominated in either U.S. dollars or foreign currencies, to certain
special purpose entities (“SPEs”) that have issued either debt securities or commercial paper for which payment of interest and principal is secured by
such funding agreements. During the years ended December 31, 2011, 2010 and 2009, the Company issued $39.9 billion, $34.1 billion and
$28.6 billion, respectively, and repaid $41.6 billion, $30.9 billion and $32.0 billion, respectively, of such funding agreements. At December 31, 2011
and 2010, funding agreements outstanding, which are included in PABs, were $25.5 billion and $27.2 billion, respectively.
Certain subsidiaries of MetLife, Inc. are members of the Federal Home Loan Bank (“FHLB”). Holdings of FHLB common stock by branch, included in
equity securities, were as follows at:
December 31,
2011 2010
(In millions)
FHLB of New York (“FHLB of NY”) ................................................................ $658 $890
FHLB of Boston ............................................................................. $ 70 $ 70
FHLB of Des Moines .......................................................................... $ 51 $ 20
Certain subsidiaries of MetLife, Inc. have also entered into funding agreements. The liability for funding agreements is included in PABs. Information
related to the funding agreements was as follows:
Liability Collateral
December 31,
2011 2010 2011 2010
(In millions)
FHLB of NY(1) ................................................. $11,655 $12,555 $13,002(2) $14,204(2)
Farmer Mac(3) ................................................. $ 2,750 $ 2,750 $ 3,157(4) $ 3,159(4)
FHLB of Boston(1) .............................................. $ 450 $ 100 $ 518(2) $ 211(2)
FHLB of Des Moines(1) .......................................... $ 695 $ — $ 953(2) $ —(2)
(1) Represents funding agreements issued to the FHLB in exchange for cash and for which the FHLB has been granted either a blanket lien or a lien on
certain assets, including RMBS, to collateralize obligations under the funding agreements. The Company maintains control over these pledged
assets, and may use, commingle, encumber or dispose of any portion of the collateral as long as there is no event of default and the remaining
qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by the Company, the FHLB’s recovery on the
collateral is limited to the amount of the Company’s liability to the FHLB.
(2) Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value.
(3) Represents funding agreements issued to certain SPEs that have issued debt securities for which payment of interest and principal is secured by
such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by the Federal Agricultural Mortgage
Corporation, a federally chartered instrumentality of the United States (“Farmer Mac”).
(4) Secured by a pledge of certain eligible agricultural real estate mortgage loans. The amount of collateral presented is at carrying value.
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