MetLife 2011 Annual Report Download - page 228

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
Dividend Restrictions
The table below sets forth the dividends permitted to be paid by the respective insurance subsidiary without insurance regulatory approval and the
respective dividends paid:
2012 2011 2010
Company Permitted w/o Approval(1) Paid (2) Permitted w/o Approval(3) Paid(2) Permitted w/o Approval(3)
(In millions)
Metropolitan Life Insurance Company ...................... $1,350 $1,321(4) $1,321 $631(4) $1,262
American Life Insurance Company ........................ $ 168(5) $ 661 $ 661(5) $ —(6) $ 511(5)
MetLife Insurance Company of Connecticut ................. $ 504 $ 517 $ 517 $330 $ 659
Metropolitan Property and Casualty Insurance Company ....... $ — $ 30 $ — $260 $ —
Metropolitan Tower Life Insurance Company ................ $ 82 $ 80 $ 80 $569(7) $ 93
MetLife Investors Insurance Company ..................... $ 18 $ — $ — $ — $ —
Delaware American Life Insurance Company ................ $ 12 $ — $ — $ — $ —
(1) Reflects dividend amounts that may be paid during 2012 without prior regulatory approval. However, because dividend tests may be based on
dividends previously paid over rolling 12-month periods, if paid before a specified date during 2012, some or all of such dividends may require
regulatory approval.
(2) All amounts paid, including those requiring regulatory approval.
(3) Reflects dividend amounts that could have been paid during the relevant year without prior regulatory approval.
(4) Includes securities transferred to MetLife, Inc. of $170 million and $399 million during the years ended December 31, 2011 and 2010, respectively.
(5) Reflects approximate dividend amounts permitted to be paid without prior regulatory approval.
(6) Reflects the respective dividends paid since the Acquisition Date. See Note 2.
(7) Includes shares of an affiliate distributed to MetLife, Inc. as an in-kind dividend of $475 million.
Under New York State Insurance Law, MLIC is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to MetLife, Inc.
as long as the aggregate amount of all such dividends in any calendar year does not exceed the lesser of: (i) 10% of its surplus to policyholders as of
the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding
realized capital gains). MLIC will be permitted to pay a dividend to MetLife, Inc. in excess of the lesser of such two amounts only if it files notice of its
intention to declare such a dividend and the amount thereof with the Superintendent and the Superintendent does not disapprove the dividend within
30 days of its filing. Under New York State Insurance Law, the Superintendent has broad discretion in determining whether the financial condition of a
stock life insurance company would support the payment of such dividends to its shareholders.
Under Delaware State Insurance Law, each of American Life, DelAm and MTL is permitted, without prior insurance regulatory clearance, to pay a
stockholder dividend to MetLife, Inc. as long as the amount of the dividend when aggregated with all other dividends in the preceding 12 months does
not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain
from operations for the immediately preceding calendar year (excluding realized capital gains). Each of American Life, DelAm and MTL will be permitted
to pay a dividend to MetLife, Inc. in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount
thereof with the Delaware Commissioner of Insurance (the “Delaware Commissioner”) and the Delaware Commissioner either approves the distribution
of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as
unassigned funds) as of the last filed annual statutory statement requires insurance regulatory approval. Under Delaware State Insurance Law, the
Delaware Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the
payment of such dividends to its shareholders.
Under Connecticut State Insurance Law, MICC is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to its
stockholders as long as the amount of such dividends, when aggregated with all other dividends in the preceding 12 months, does not exceed the
greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for
the immediately preceding calendar year. MICC will be permitted to pay a dividend in excess of the greater of such two amounts only if it files notice of
its declaration of such a dividend and the amount thereof with the Connecticut Commissioner of Insurance (the “Connecticut Commissioner”) and the
Connecticut Commissioner does not disapprove the payment within 30 days after notice. In addition, any dividend that exceeds earned surplus
(unassigned funds, reduced by 25% of unrealized appreciation in value or revaluation of assets or unrealized profits on investments) as of the last filed
annual statutory statement requires insurance regulatory approval. Under Connecticut State Insurance Law, the Connecticut Commissioner has broad
discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its
shareholders.
Under Rhode Island State Insurance Law, MPC is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to MetLife,
Inc. as long as the aggregate amount of all such dividends in any twelve-month period does not exceed the lesser of: (i) 10% of its surplus to
policyholders as of the end of the immediately preceding calendar year; or (ii) net income, not including realized capital gains, for the immediately
preceding calendar year, which may include carry forward net income from the second and third preceding calendar years excluding realized capital
gains and less dividends paid in the second and immediately preceding calendar years. MPC will be permitted to pay a dividend to MetLife, Inc. in
excess of the lesser of such two amounts only if it files notice of its intention to declare such a dividend and the amount thereof with the Rhode Island
Commissioner of Insurance (the “Rhode Island Commissioner”) and the Rhode Island Commissioner does not disapprove the distribution within 30 days
of its filing. Under Rhode Island State Insurance Code, the Rhode Island Commissioner has broad discretion in determining whether the financial
condition of a stock property and casualty insurance company would support the payment of such dividends to its shareholders.
224 MetLife, Inc.