MetLife 2011 Annual Report Download - page 191

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
Information regarding the closed block policyholder dividend obligation was as follows:
Years Ended December 31,
2011 2010 2009
(In millions)
Balance at January 1, ................................................................ $ 876 $ — $—
Change in unrealized investment and derivative gains (losses) ................................. 2,043 876 —
Balance at December 31, ............................................................. $2,919 $876 $—
Information regarding the closed block revenues and expenses was as follows:
Years Ended December 31,
2011 2010 2009
(In millions)
Revenues
Premiums ...................................................................... $2,306 $2,461 $2,708
Net investment income ........................................................... 2,233 2,294 2,197
Net investment gains (losses): ......................................................
Other-than-temporary impairments on fixed maturity securities ........................... (14) (32) (107)
Other-than-temporary impairments on fixed maturity securities transferred to other
comprehensive income (loss) ................................................... 3 — 40
Other net investment gains (losses) ................................................ 43 71 327
Total net investment gains (losses) ............................................... 32 39 260
Net derivative gains (losses) ...................................................... 8 (27) (128)
Total revenues .............................................................. 4,579 4,767 5,037
Expenses
Policyholder benefits and claims .................................................... 2,991 3,115 3,329
Policyholder dividends ............................................................ 1,137 1,235 1,394
Other expenses ................................................................. 193 199 203
Total expenses .............................................................. 4,321 4,549 4,926
Revenues, net of expenses before provision for income tax expense (benefit) ................. 258 218 111
Provision for income tax expense (benefit) ............................................. 90 72 36
Revenues, net of expenses and provision for income tax expense (benefit) ................... $ 168 $ 146 $ 75
The change in the maximum future earnings of the closed block was as follows:
Years Ended December 31,
2011 2010 2009
(In millions)
Balance at December 31, ......................................................... $4,273 $4,441 $4,587
Less: .........................................................................
Closed block adjustment (1) ..................................................... — — 144
Balance at January 1, ............................................................ 4,441 4,587 4,518
Change during year .............................................................. $ (168) $ (146) $ (75)
(1) The closed block adjustment represents an intra-company reallocation of assets which affected the closed block. The adjustment had no impact on
the Company’s consolidated financial statements.
MLIC charges the closed block with federal income taxes, state and local premium taxes and other additive state or local taxes, as well as
investment management expenses relating to the closed block as provided in the Plan. MLIC also charges the closed block for expenses of maintaining
the policies included in the closed block.
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