MetLife 2013 Annual Report Download - page 120

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
4. Insurance (continued)
Based on the type of guarantee, the Company defines net amount at risk as listed below. These amounts include direct and assumed business, but
exclude offsets from hedging or reinsurance, if any.
Variable Annuity Guarantees
In the Event of Death
Defined as the death benefit less the total contract account value, as of the balance sheet date. It represents the amount of the claim that the
Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated
with riders purchased to assist with covering income taxes payable upon death.
At Annuitization
Defined as the amount (if any) that would be required to be added to the total contract account value to purchase a lifetime income stream, based
on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential
economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts
contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have
achieved.
Two Tier Annuities
Defined as the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date. These contracts apply a lower
rate on funds if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize.
Universal and Variable Life Contracts
Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company
would incur if death claims were filed on all contracts on the balance sheet date.
Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts was as follows at:
December 31,
2013 2012
In the
Event of Death At Annuitization In the Event of Death At Annuitization
(In millions)
Annuity Contracts (1)
Variable Annuity Guarantees
Total contract account value (2) .......................................... $201,395 $100,527 $184,095 $ 89,137
Separate account value ................................................ $164,500 $ 96,459 $143,893 $ 84,354
Net amount at risk .................................................... $ 4,203 $ 1,219 $ 9,501 $ 4,593
Average attained age of contractholders ................................... 63years 63 years 62 years 62 years
Two Tier Annuities
General account value ................................................. N/A $ 880 N/A $ 848
Net amount at risk .................................................... N/A $ 234 N/A $ 232
Average attained age of contractholders ................................... N/A 50years N/A 51 years
December 31,
2013 2012
Secondary
Guarantees Paid-Up Guarantees Secondary Guarantees Paid-Up Guarantees
(In millions)
Universal and Variable Life Contracts (1)
Account value (general and separate account) .............................. $ 16,048 $ 3,700 $ 14,256 $ 3,828
Net amount at risk .................................................... $185,920 $ 21,737 $189,197 $ 23,276
Average attained age of policyholders ..................................... 55years 60 years 54 years 60 years
(1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts
listed above may not be mutually exclusive.
(2) Includes amounts, which are not reported in the consolidated balance sheets, from assumed reinsurance of certain variable annuity products from
the Company’s former operating joint venture in Japan.
112 MetLife, Inc.