MetLife 2012 Annual Report Download - page 106

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
Years Ended December 31,
2012 2011 2010
(In millions)
Life insurance (1) .............................................................................. $31,723 $30,486 $23,978
Accident and health insurance .................................................................... 13,255 12,269 7,480
Property and casualty insurance .................................................................. 3,117 3,043 2,956
Non-insurance ................................................................................ 342 901 1,013
Total ...................................................................................... $48,437 $46,699 $35,427
(1) Includes annuities and corporate benefit funding products.
Revenues derived from any customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and
other revenues for the years ended December 31, 2012, 2011 and 2010.
The following table presents total premiums, universal life and investment-type product policy fees and other revenues associated with the
Company’s U.S. and foreign operations:
Years Ended December 31,
2012 2011 2010
(In millions)
U.S. ........................................................................................ $31,500 $30,108 $29,387
Foreign: .....................................................................................
Japan ..................................................................................... 7,833 7,184 568
Other ..................................................................................... 9,104 9,407 5,472
Total .................................................................................... $48,437 $46,699 $35,427
3. Acquisitions and Dispositions
Pending Dispositions
MetLife Bank
On January 11, 2013, MetLife Bank and MetLife, Inc. completed the sale of the depository business of MetLife Bank to GE Capital Retail Bank. On
February 14, 2013, MetLife, Inc. announced that it had received the required approvals from both the Federal Deposit Insurance Corporation and the
Board of Governors of the Federal Reserve (the “Federal Reserve Board”) to de-register as a bank holding company.
In January 2012, MetLife, Inc. announced it was exiting the business of originating forward residential mortgage loans. In April 2012, MetLife, Inc.
announced it was exiting the businesses of originating and servicing reverse residential mortgage loans and that MetLife Bank and MetLife, Inc. entered
into a definitive agreement to sell MetLife Bank’s reverse mortgage servicing portfolio. In June 2012, the Company sold the majority of MetLife Bank’s
reverse MSRs and related assets and liabilities, with the remainder sold in September 2012 pursuant to the same sales agreement. In November 2012,
MetLife Bank and MetLife, Inc. entered into a definitive agreement to sell MetLife Bank’s forward mortgage servicing portfolio to JPMorgan Chase Bank,
N.A. (“JPMorgan Chase”). With the assumption of the rights and obligations of the forward mortgage servicing portfolio by JPMorgan Chase on
December 31, 2012, MetLife Bank committed to exit the business of servicing forward mortgages.
In conjunction with exiting the depository, servicing and mortgage loan origination businesses (the “MetLife Bank Divestiture”), for the years ended
December 31, 2012 and 2011, the Company recorded net losses of $163 million and $212 million, respectively, net of income tax, related to the loss
on disposal of the MSRs, securities and mortgage loans sold and losses associated with lease impairments, other employee-related charges and
investment impairments. The Company expects to incur additional charges of $60 million to $85 million, net of income tax, related to exiting these
businesses. For servicing, collective net assets of $608 million were sold for $580 million in net consideration, of which $190 million has been collected
at December 31, 2012. The majority of the remaining amounts were collected in January 2013. In conjunction with the sale of reverse MSRs, the
Company also de-recognized $9.1 billion of the associated securitized reverse residential mortgage loans that previously did not qualify as sales, as well
as the corresponding liability of $9.1 billion related to these mortgage loans, from the consolidated balance sheet.
With the sale of its depository business and forward mortgage servicing portfolio, MetLife Bank has sold or has otherwise committed to exit
substantially all of its operations. Total assets and liabilities recorded in the consolidated balance sheets related to MetLife Bank’s businesses were
$7.8 billion and $6.8 billion at December 31, 2012, respectively and $21.3 billion and $19.9 billion at December 31, 2011, respectively. The disposition
of the assets and liabilities of these businesses did not qualify for classification as discontinued operations under GAAP.
MetLife Bank has historically taken advantage of collateralized borrowing opportunities with the Federal Home Loan Bank (“FHLB”) of New York
(“FHLB of NY”). In January 2012, MetLife Bank discontinued taking advances from the FHLB of NY. In April 2012, MetLife Bank transferred cash to
Metropolitan Life Insurance Company (“MLIC”) related to $3.8 billion of outstanding advances which had been included in long-term debt, and MLIC
assumed the associated obligations under terms similar to those of the transferred advances by issuing funding agreements which are included in
PABs. See Note 12.
Caribbean Business
In 2011, the Company entered into an agreement to sell its insurance operations in the Caribbean region, Panama and Costa Rica (the “Caribbean
Business”). As a result of this agreement, the Company recorded a loss of $21 million, net of income tax, for the year ended December 31, 2011.
During 2012, regulatory approvals were obtained for a majority of the jurisdictions and closings were finalized with the buyer, resulting in a gain of
$5 million, net of income tax. These amounts are reflected in net investment gains (losses) within the consolidated statements of operations. As of
December 31, 2011, the total assets and liabilities recorded in the consolidated balance sheets associated with the Caribbean Business were
$859 million and $707 million, respectively. Sales in the remaining jurisdictions are expected to close in the first quarter of 2013, subject to regulatory
100 MetLife, Inc.