MetLife 2011 Annual Report Download - page 229

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
Under Missouri State Insurance Law, MetLife Investors Insurance Company (“MLIIC”) is permitted, without prior insurance regulatory clearance, to
pay a stockholder dividend to its parent 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 net realized capital gains). MLIIC will be permitted to pay a cash dividend to
its parent 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
Missouri Commissioner of Insurance (the “Missouri Commissioner”) and the Missouri Commissioner 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 Missouri State Insurance Law, the Missouri 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.
Other Comprehensive Income (Loss)
The following table sets forth the balance and changes in accumulated other comprehensive income (loss) including reclassification adjustments
required for the years ended December 31, 2011, 2010 and 2009 in other comprehensive income (loss) that are included as part of net income for the
current year that have been reported as a part of other comprehensive income (loss) in the current or prior year:
Years Ended December 31,
2011 2010 2009
(In millions)
Holding gains (losses) on investments arising during the year ........................... $13,945 $10,092 $18,548
Income tax effect of holding gains (losses) ......................................... (4,783) (3,516) (6,243)
Reclassification adjustments for recognized holding (gains) losses included in current year
income ................................................................... 755 (733) 1,464
Income tax effect ............................................................. (260) 255 (493)
Unrealized investment loss of subsidiary at the date of disposal ......................... (105) — —
Income tax on unrealized investment loss of subsidiary at the date of disposal ............. 37 — —
Allocation of holding (gains) losses on investments relating to other policyholder amounts ..... (6,339) (2,813) (2,979)
Income tax effect of allocation of holding (gains) losses to other policyholder amounts ....... 2,174 980 1,002
Allocation of holding (gains) losses on investments relating to other policyholder amounts of
subsidiary at the date of disposal .............................................. 93 — —
Income tax effect of allocation of holding (gains) losses on investments relating to other
policyholder amounts of subsidiary at the date of disposal ........................... (33) — —
Net unrealized investment gains (losses), net of income tax ............................ 5,484 4,265 11,299
Foreign currency translation adjustments, net of income tax ............................ (135) (350) 63
Foreign currency translation adjustments of subsidiary at the date of disposal .............. (7) — —
Defined benefit plans adjustment, net of income tax .................................. (494) 96 (102)
Other comprehensive income (loss) .............................................. 4,848 4,011 11,260
Other comprehensive (income) loss attributable to noncontrolling interests ................ 38 (5) 11
Other comprehensive income (loss) attributable to MetLife, Inc., excluding cumulative effect of
change in accounting principle ................................................ 4,886 4,006 11,271
Cumulative effect of change in accounting principle, net of income tax of $0, $27 million and
$40 million (see Note 1) ...................................................... — 52 (76)
Other comprehensive income (loss) attributable to MetLife, Inc. ......................... $ 4,886 $ 4,058 $11,195
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