MetLife 2013 Annual Report Download - page 121

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
4. Insurance (continued)
Obligations Under Funding Agreements
The Company issues fixed and floating rate funding agreements, which are denominated in either U.S. dollars or foreign currencies, to certain
special purpose entities (“SPEs”) that have issued either debt securities or commercial paper for which payment of interest and principal is secured by
such funding agreements. During the years ended December 31, 2013, 2012 and 2011, the Company issued $37.7 billion, $35.1 billion and
$39.9 billion, respectively, and repaid $36.8 billion, $31.1 billion and $41.6 billion, respectively, of such funding agreements. At December 31, 2013
and 2012, liabilities for funding agreements outstanding, which are included in PABs, were $31.2 billion and $30.0 billion, respectively.
Certain of the Company’s subsidiaries are members of regional banks in the FHLB system (“FHLBanks”). Holdings of common stock of FHLBanks,
included in equity securities, were as follows at:
December 31,
2013 2012
(In millions)
FHLB of NY ................................................................................................. $700 $736
FHLB of Des Moines .......................................................................................... $ 76 $ 83
FHLB of Boston .............................................................................................. $ 64 $ 67
FHLB of Pittsburgh ........................................................................................... $ 30 $ 14
Such subsidiaries have also entered into funding agreements with FHLBanks and the Federal Agricultural Mortgage Corporation, a federally
chartered instrumentality of the U.S. (“Farmer Mac”). The liability for such funding agreements is included in PABs. Information related to such funding
agreements was as follows at:
Liability Collateral
December 31,
2013 2012 2013 2012
(In millions)
FHLB of NY(1) ...................................................................... $12,770 $13,512 $14,287 (2) $14,611 (2)
Farmer Mac(3) ...................................................................... $ 2,750 $ 2,750 $ 3,159 $ 3,159
FHLB of Des Moines(1) ............................................................... $ 1,405 $ 1,405 $ 1,596 (2) $ 1,902 (2)
FHLB of Boston(1) ................................................................... $ 450 $ 450 $ 808(2)$ 537(2)
FHLB of Pittsburgh(1) ................................................................. $ 375 $ — $ 976(2)$ 810(2)
(1) Represents funding agreements issued to the applicable FHLBank in exchange for cash and for which such FHLBank has been granted a lien on
certain assets, some of which are in the custody of such FHLBank, including residential mortgage-backed securities (“RMBS”), to collateralize
obligations under advances evidenced by funding agreements. The Company is permitted to withdraw any portion of the collateral in the custody of
such FHLBank as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon
any event of default by the Company, such FHLBank’s recovery on the collateral is limited to the amount of the Company’s liability to such FHLBank.
(2) Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value.
(3) Represents funding agreements issued to certain SPEs that have issued debt securities for which payment of interest and principal is secured by
such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by Farmer Mac. The obligations
under these funding agreements are secured by a pledge of certain eligible agricultural real estate mortgage loans and may, under certain
circumstances, be secured by other qualified collateral. The amount of collateral presented is at carrying value.
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