MetLife 2013 Annual Report Download - page 127

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
6. Reinsurance (continued)
The amounts in the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of
reinsurance was as follows:
Years Ended December 31,
2013 2012 2011
(In millions)
Premiums
Direct premiums .................................................................................. $38,476 $38,719 $37,185
Reinsurance assumed ............................................................................. 1,472 1,488 1,484
Reinsurance ceded ............................................................................... (2,274) (2,232) (2,308)
Net premiums .................................................................................. $37,674 $37,975 $36,361
Universal life and investment-type product policy fees
Direct universal life and investment-type product policy fees ................................................ $10,197 $ 9,216 $ 8,455
Reinsurance assumed ............................................................................. 139 155 154
Reinsurance ceded ............................................................................... (885) (815) (803)
Net universal life and investment-type product policy fees ................................................ $ 9,451 $ 8,556 $ 7,806
Policyholder benefits and claims
Direct policyholder benefits and claims ................................................................ $40,211 $39,262 $37,588
Reinsurance assumed ............................................................................. 1,047 1,167 1,101
Reinsurance ceded ............................................................................... (3,151) (2,442) (3,218)
Net policyholder benefits and claims ................................................................ $38,107 $37,987 $35,471
Other expenses
Direct other expenses ............................................................................. $16,712 $17,848 $18,672
Reinsurance assumed ............................................................................. 147 228 168
Reinsurance ceded ............................................................................... (257) (321) (303)
Net other expenses ............................................................................. $16,602 $17,755 $18,537
The amounts in the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was
as follows at:
December 31,
2013 2012
Direct Assumed Ceded
Total
Balance
Sheet Direct Assumed Ceded
Total
Balance
Sheet
(In millions)
Assets
Premiums, reinsurance and other receivables ....... $ 6,248 $ 593 $15,018 $ 21,859 $ 6,286 $ 548 $14,800 $ 21,634
Deferred policy acquisition costs and value of
business acquired .......................... 26,954 104 (352) 26,706 24,789 92 (120) 24,761
Total assets ............................... $ 33,202 $ 697 $14,666 $ 48,565 $ 31,075 $ 640 $14,680 $ 46,395
Liabilities
Future policy benefits ......................... $185,908 $2,034 $ — $187,942 $190,321 $2,031 $ (1) $192,351
Policyholder account balances .................. 211,610 1,277 (2) 212,885 223,229 2,594 (2) 225,821
Other policy-related balances ................... 14,838 353 23 15,214 15,142 313 8 15,463
Other liabilities ............................... 19,591 533 3,044 23,168 18,925 543 3,024 22,492
Total liabilities .............................. $431,947 $4,197 $ 3,065 $439,209 $447,617 $5,481 $ 3,029 $456,127
Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the
deposit method of accounting. The deposit assets on reinsurance were $2.3 billion at both December 31, 2013 and 2012. The deposit liabilities on
reinsurance were $37 million and $45 million at December 31, 2013 and 2012, respectively.
7. Closed Block
On April 7, 2000 (the “Demutualization Date”), MLIC converted from a mutual life insurance company to a stock life insurance company and became
a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s
plan of reorganization, as amended (the “Plan”). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain
individual life insurance policies of MLIC. Assets have been allocated to the closed block in an amount that has been determined to produce cash flows
MetLife, Inc. 119