MetLife 2012 Annual Report Download - page 130

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows:
Years Ended December 31,
2012 2011
(In millions)
Balance, January 1, ........................................................................... $(724) $(601)
Noncredit OTTI losses recognized (1) .............................................................. (29) 31
Securities sold with previous noncredit OTTI loss ..................................................... 177 125
Subsequent changes in estimated fair value ........................................................ 215 (279)
Balance, December 31, ........................................................................ $(361) $(724)
(1) Noncredit OTTI losses recognized, net of DAC, were ($21) million and $33 million for the years ended December 31, 2012 and 2011, respectively.
The changes in net unrealized investment gains (losses) were as follows:
Years Ended December 31,
2012 2011 2010
(In millions)
Balance, beginning of period ...................................................................... $ 8,674 $ 3,122 $(1,338)
Cumulative effect of change in accounting principles, net of income tax .................................... — — 52
Fixed maturity securities on which noncredit OTTI losses have been recognized .............................. 363 (123) 242
Unrealized investment gains (losses) during the year .................................................... 12,467 14,823 9,117
Unrealized investment gains (losses) of subsidiary at the date of disposal ................................... — (105) —
Unrealized investment gains (losses) relating to:
Insurance liability gain (loss) recognition ............................................................ (2,053) (3,406) (554)
Insurance liability gain (loss) recognition of subsidiary at the date of disposal ............................... — 82 —
DAC and VOBA related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss) . . (28) 9 (33)
DAC and VOBA .............................................................................. (685) (808) (1,135)
DAC and VOBA of subsidiary at date of disposal .................................................... — 11 —
Policyholder dividend obligation .................................................................. (909) (2,043) (876)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other
comprehensive income (loss) ................................................................... (117) 39 (73)
Deferred income tax benefit (expense) .............................................................. (3,279) (2,936) (2,283)
Deferred income tax benefit (expense) of subsidiary at date of disposal ..................................... — 4 —
Net unrealized investment gains (losses) ............................................................. 14,433 8,669 3,119
Net unrealized investment gains (losses) attributable to noncontrolling interests ............................... (14) 5 3
Balance, end of period .......................................................................... $14,419 $ 8,674 $ 3,122
Change in net unrealized investment gains (losses) .................................................... $ 5,759 $ 5,547 $ 4,457
Change in net unrealized investment gains (losses) attributable to noncontrolling interests ....................... (14) 5 3
Change in net unrealized investment gains (losses) attributable to MetLife, Inc. ............................... $ 5,745 $ 5,552 $ 4,460
Concentrations of Credit Risk
Investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, were in fixed
income securities of the Japan government and its agencies of $22.4 billion and $21.0 billion, at estimated fair value, at December 31, 2012 and 2011,
respectively. The Company’s investment in fixed maturity and equity securities to counterparties that primarily conduct business in Japan were $28.7
billion and $28.4 billion, including Japan government and agency fixed maturity securities, at December 31, 2012 and 2011, respectively.
124 MetLife, Inc.