MetLife 2011 Annual Report Download - page 188

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
At December 31, 2011, the Company had $13.5 billion of net unaffiliated ceded reinsurance recoverables. Of this total, $10.3 billion, or 76%, were
with the Company’s five largest unaffiliated ceded reinsurers, including $3.2 billion of which were unsecured. At December 31, 2010, the Company had
$13.1 billion of net unaffiliated ceded reinsurance recoverables. Of this total, $10.0 billion, or 76%, were with the Company’s five largest unaffiliated
ceded reinsurers, including $3.6 billion of which were unsecured.
The Company has reinsured with an unaffiliated third-party reinsurer, 49.25% of the closed block through a modified coinsurance agreement. The
Company accounts for this agreement under the deposit method of accounting. The Company, having the right of offset, has offset the modified
coinsurance deposit with the deposit recoverable.
The amounts in the consolidated statements of operations include the impact of reinsurance. Information regarding the effect of reinsurance was as
follows:
Years Ended December 31,
2011 2010 2009
(In millions)
Premiums:
Direct premiums ............................................................. $37,185 $27,596 $27,165
Reinsurance assumed ......................................................... 1,484 1,377 1,313
Reinsurance ceded ........................................................... (2,308) (1,902) (2,321)
Net premiums ........................................................... $36,361 $27,071 $26,157
Universal life and investment-type product policy fees:
Direct universal life and investment-type product policy fees ............................ $ 8,455 $ 6,621 $ 5,784
Reinsurance assumed ......................................................... 154 138 106
Reinsurance ceded ........................................................... (803) (731) (693)
Net universal life and investment-type product policy fees .......................... $ 7,806 $ 6,028 $ 5,197
Other revenues:
Direct other revenues ......................................................... $ 2,468 $ 2,256 $ 2,264
Reinsurance assumed ......................................................... 2 — 1
Reinsurance ceded ........................................................... 62 72 64
Net other revenues ....................................................... $ 2,532 $ 2,328 $ 2,329
Policyholder benefits and claims:
Direct policyholder benefits and claims ............................................ $37,574 $31,400 $30,029
Reinsurance assumed ......................................................... 1,101 1,275 1,024
Reinsurance ceded ........................................................... (3,218) (3,490) (3,050)
Net policyholder benefits and claims .......................................... $35,457 $29,185 $28,003
Interest credited to policyholder account balances:
Direct interest credited to policyholder account balances .............................. $ 5,600 $ 4,917 $ 4,842
Reinsurance assumed ......................................................... 3 2 3
Reinsurance ceded ........................................................... — — —
Net interest credited to policyholder account balances ............................ $ 5,603 $ 4,919 $ 4,845
Policyholder dividends:
Direct policyholder dividends .................................................... $ 1,446 $ 1,485 $ 1,649
Reinsurance assumed ......................................................... 17 17 13
Reinsurance ceded ........................................................... (17) (17) (13)
Net policyholder dividends .................................................. $ 1,446 $ 1,485 $ 1,649
Other expenses:
Direct other expenses ......................................................... $17,865 $12,870 $10,565
Reinsurance assumed ......................................................... 168 116 100
Reinsurance ceded ........................................................... (303) (222) (144)
Net other expenses ....................................................... $17,730 $12,764 $10,521
184 MetLife, Inc.