Item 8. Financial Statements and Supplementary Data

Index to Consolidated Financial Statements, Notes and Schedules

			Page
Report of Independent Registered Public Accounting Firm (PCAOB ID 34)			130
Financial Statements at December 31, 2023 and 2022 and for the Years Ended December 31, 2023, 2022 and 2021:
Consolidated Balance Sheets			133
Consolidated Statements of Operations			134
Consolidated Statements of Comprehensive Income (Loss)			135
Consolidated Statements of Equity			136
Consolidated Statements of Cash Flows			137
Notes to the Consolidated Financial Statements
Note 1 — Business, Basis of Presentation and Summary of Significant Accounting Policies			139
Note 2 — Segment Information			168
Note 3 — Dispositions			174
Note 4 — Future Policy Benefits			175
Note 5 — Policyholder Account Balance			197
Note 6 — Market Risk Benefits			212
Note 7 — Separate Accounts			217
Note 8 — Deferred Policy Acquisition Costs, Value of Business Acquired, Unearned Revenue and Other Intangibles			221
Note 9 — Reinsurance			224
Note 10 — Closed Block			229
Note 11 — Investments			231
Note 12 — Derivatives			248
Note 13 — Fair Value			263
Note 14 — Leases			277
Note 15 — Goodwill			278
Note 16 — Long-term and Short-term Debt			279
Note 17 — Collateral Financing Arrangements			281
Note 18 — Junior Subordinated Debt Securities			282
Note 19 — Equity			283
Note 20 — Other Revenues and Other Expenses			300
Note 21 — Employee Benefit Plans			301
Note 22 — Income Tax			309
Note 23 — Earnings Per Common Share			313
Note 24 — Contingencies, Commitments and Guarantees			313
Note 25 — Quarterly Results of Operations (Unaudited)			318
Financial Statement Schedules at December 31, 2023 and 2022 and for the Years Ended December 31, 2023, 2022 and 2021:
Schedule I — Consolidated Summary of Investments — Other Than Investments in Related Parties			319
Schedule II — Condensed Financial Information (Parent Company Only)			320
Schedule III — Consolidated Supplementary Insurance Information			327
Schedule IV — Consolidated Reinsurance			329

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the stockholders and the Board of Directors of MetLife, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of MetLife, Inc. and subsidiaries (the “Company”) as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows for each of the three years in the period ended December 31, 2023, and the related notes and the schedules listed in the Index to Consolidated Financial Statements, Notes and Schedules (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 15, 2024, expressed an unqualified opinion on the Company’s internal control over financial reporting.

Adoption of New Accounting Standard

As discussed in Note 1 to the financial statements, the Company has changed its method of accounting and presentation related to long-duration insurance contracts and certain related balances effective January 1, 2023, due to the adoption of Accounting Standards Update No. 2018-12, Financial Services— Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, as amended (“ASU 2018-12”), with a transition date of January 1, 2021. Also see Critical Audit Matters section below.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Fixed Maturity Securities Available-for-Sale — Fair Value of Level 3 Fixed Maturity Securities — Refer to Notes 1, 11, and 13 to the financial statements

Critical Audit Matter Description

The Company has investments in certain fixed maturity securities classified as available-for-sale whose fair values are based on unobservable inputs that are supported by little or no market activity. When a price is not available in the active market, from an independent pricing service, or from independent broker quotations, management values the security using internal matrix pricing or discounted cash flow techniques. These investments are categorized as Level 3.

We have determined that the fair value of Level 3 fixed maturity securities valued using internal matrix pricing or discounted cash flow techniques is a critical audit matter because of the critical judgments made by management. This required complex auditor judgment and an increased extent of effort, including the use of fair value specialists, in performing audit procedures to evaluate the estimate of fair value of these securities.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the valuation of Level 3 fixed maturity securities determined using internal matrix pricing or discounted cash flow techniques included, among others, the following:

• We tested the effectiveness of controls over the determination of fair value.

• We tested the accuracy and completeness of relevant security attributes, including credit ratings, maturity dates and coupon rates, used in the determination of Level 3 fair values.

• With the involvement of our fair value specialists, we developed independent fair value estimates for a sample of securities and compared our estimates to the Company’s estimates and evaluated differences. We developed our estimate by evaluating the observable and unobservable inputs used by management or developing independent inputs.

Insurance Liabilities — Valuation of Future Policy Benefits for Long-Term Care Insurance — Refer to Notes 1 and 4 to the financial statements

Critical Audit Matter Description

The Company’s products include long-term care insurance policies. Liabilities for amounts payable under long-term care insurance are recorded in future policy benefits in the Company’s consolidated balance sheets. Such liabilities are established based on actuarial assumptions. Management’s estimate of future policy benefits for long-term care insurance in the MetLife Holdings segment was $15,240 million as of December 31, 2023.

Management applies considerable judgment in evaluating actual experience and other information to determine current best estimate assumptions. Principal assumptions used in the valuation of future policy benefits for long-term care insurance include incidence, claim terminations, utilization, premium rate increases and mortality.

We have determined that future policy benefits for long-term care insurance is a critical audit matter because of the significant judgments made by management when estimating future policy benefits liability. This required subjective auditor judgment and an increased extent of effort, including the involvement of actuarial specialists, when performing audit procedures to evaluate the judgments made and the reasonableness of the principal assumptions used in the valuation.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the assumptions used to determine the estimate of future policy benefits for long-term care insurance, included, among others, the following:

• We tested the effectiveness of controls over the assumptions used in the valuation of future policy benefits and the effectiveness of controls over the underlying data.

• With the involvement of our actuarial specialists, we:

◦evaluated judgments applied by management in setting principal assumptions, including evaluating the results of experience studies used as the basis for setting those assumptions.

◦evaluated that principal assumptions were applied in the valuation model as intended, on a sample basis.

Market Risk Benefits — Valuation of Market Risk Benefits for MetLife Holdings — Refer to Notes 1, 6 and 13 to the financial statements

Critical Audit Matter Description

Market risk benefits are contracts or contract features that guarantee benefits, such as guaranteed minimum benefits, in addition to an account balance, which expose insurance companies to other than nominal capital market risk and protect the contractholder from the same risk. The Company adopted ASU 2018-12, effective January 1, 2023 with a transition date of January 1, 2021 (see Adoption of New Accounting Standard explanatory paragraph above). As part of the adoption, market risk benefits were required to be measured at fair value, using a full retrospective transition method. Management’s estimates of market risk benefits in the MetLife Holdings segment were $2,878 million in liabilities and $156 million in assets as of December 31, 2023.

Management applies considerable judgment in determining the actuarial and capital market assumptions to be used in the valuation models to estimate the fair value of market risk benefits. In addition, at the transition date, management judgment was involved in estimating the assumptions at contract inception for the market risk benefits not previously accounted for as embedded derivatives. Principal assumptions include mortality, withdrawal, utilization, lapse and implied volatility.

We have identified the valuation of MetLife Holdings’ market risk benefits as a critical audit matter due to the high degree of auditor judgment and an increased extent of effort, including the use of specialists, when performing audit procedures to evaluate the judgments made by management to estimate the fair value of market risk benefits.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the valuation of market risk benefits included, among others, the following:

• We tested the effectiveness of controls over valuation of market risk benefits under ASU 2018-12, including the related methodologies, models and assumptions used for determining fair value.

• With the involvement of our valuation and actuarial specialists, we:

◦evaluated the results of underlying experience studies, capital market projections, and judgments applied by management in setting the principal assumptions

◦developed an independent estimate, on a sample basis, of the market risk benefits and evaluated differences.

/s/ DELOITTE & TOUCHE LLP

New York, New York

February 15, 2024

We have served as the Company’s auditor since at least 1968; however, an earlier year could not be reliably determined.

MetLife, Inc.

Consolidated Balance Sheets

December 31, 2023 and 2022

(In millions, except share and per share data)

						2023						2022
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (net of allowance for credit loss of $184 and $183, respectively); and amortized cost: $300,555 and $306,025, respectively						$	281,412					$	276,780
Equity securities, at estimated fair value						757						1,684
Contractholder-directed equity securities and fair value option securities, at estimated fair value						10,331						9,668
Mortgage loans (net of allowance for credit loss of $721 and $527, respectively)						92,506						83,763
Policy loans						8,788						8,874
Real estate and real estate joint ventures (includes $317 and $299, respectively, under the fair value option)						13,332						13,137
Other limited partnership interests						14,764						14,414
Short-term investments, principally at estimated fair value						6,045						4,935
Other invested assets (net of allowance for credit loss of $23 and $26, respectively; includes $1,993 and $1,926, respectively, of leveraged and direct financing leases; $333 and $326, respectively, relating to variable interest entities)						18,202						20,038
Total investments						446,137						433,293
Cash and cash equivalents, principally at estimated fair value						20,639						20,195
Accrued investment income						3,589						3,446
Premiums, reinsurance and other receivables						28,971						17,364
Market risk benefits, at estimated fair value						286						280
Deferred policy acquisition costs and value of business acquired						20,151						19,653
Current income tax recoverable						190						42
Deferred income tax asset						2,612						2,439
Goodwill						9,236						9,297
Other assets						11,139						11,025
Separate account assets						144,634						146,038
Total assets						$	687,584					$	663,072
Liabilities and Equity
Liabilities
Future policy benefits						$	196,406					$	187,222
Policyholder account balances						219,269						210,597
Market risk benefits, at estimated fair value						3,179						3,763
Other policy-related balances						19,736						18,424
Policyholder dividends payable						386						387
Payables for collateral under securities loaned and other transactions						17,524						20,937
Short-term debt						119						175
Long-term debt						15,548						14,647
Collateral financing arrangement						637						716
Junior subordinated debt securities						3,161						3,158
Deferred income tax liability						927						950
Other liabilities						35,805						25,933
Separate account liabilities						144,634						146,038
Total liabilities						657,331						632,947
Contingencies, Commitments and Guarantees (Note 24)
Equity
MetLife, Inc.’s stockholders’ equity:
Preferred stock, par value $0.01 per share; $3,905 aggregate liquidation preference						—						—
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,191,823,651 and 1,189,831,471 shares issued, respectively; 730,821,111 and 779,098,414 shares outstanding, respectively						12						12
Additional paid-in capital						33,690						33,616
Retained earnings						40,146						40,332
Treasury stock, at cost; 461,002,540 and 410,733,057 shares, respectively						(24,591)						(21,458)
Accumulated other comprehensive income (loss)						(19,242)						(22,621)
Total MetLife, Inc.’s stockholders’ equity						30,015						29,881
Noncontrolling interests						238						244
Total equity						30,253						30,125
Total liabilities and equity						$	687,584					$	663,072

See accompanying notes to the consolidated financial statements.

MetLife, Inc.

Consolidated Statements of Operations

Years Ended December 31, 2023, 2022 and 2021

(In millions, except per share data)

						2023						2022						2021
Revenues
Premiums						$	44,283					$	48,510					$	41,152
Universal life and investment-type product policy fees						5,152						5,225						5,244
Net investment income						19,908						15,916						21,395
Other revenues						2,526						2,630						2,619
Net investment gains (losses)						(2,824)						(1,260)						1,543
Net derivative gains (losses)						(2,140)						(2,251)						(3,257)
Total revenues						66,905						68,770						68,696
Expenses
Policyholder benefits and claims						44,590						49,507						43,118
Policyholder liability remeasurement (gains) losses						(45)						114						(172)
Market risk benefit remeasurement (gains) losses						(994)						(3,674)						(1,237)
Interest credited to policyholder account balances						7,860						3,894						5,571
Policyholder dividends						622						706						880
Other expenses						12,710						11,859						12,018
Total expenses						64,743						62,406						60,178
Income (loss) before provision for income tax						2,162						6,364						8,518
Provision for income tax expense (benefit)						560						1,062						1,642
Net income (loss)						1,602						5,302						6,876
Less: Net income (loss) attributable to noncontrolling interests						24						18						21
Net income (loss) attributable to MetLife, Inc.						1,578						5,284						6,855
Less: Preferred stock dividends						198						185						195
Preferred stock redemption premium						—						—						6
Net income (loss) available to MetLife, Inc.’s common shareholders						$	1,380					$	5,099					$	6,654

Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
Basic						$	1.82					$	6.35					$	7.71
Diluted						$	1.81					$	6.30					$	7.65

See accompanying notes to the consolidated financial statements.

MetLife, Inc.

Consolidated Statements of Comprehensive Income (Loss)

Years Ended December 31, 2023, 2022 and 2021

(In millions)

			2023						2022						2021
Net income (loss)			$	1,602					$	5,302					$	6,876
Other comprehensive income (loss):
Unrealized investment gains (losses), net of related offsets			10,325						(56,497)						(12,840)
Deferred gains (losses) on derivatives			(1,811)						(85)						137
Future policy benefits discount rate remeasurement gains (losses)			(4,361)						31,804						10,102
Market risk benefit instrument-specific credit risk remeasurement gains (losses)			(102)						(219)						257
Foreign currency translation adjustments			296						(1,238)						(1,266)
Defined benefit plans adjustment			(88)						279						328
Other comprehensive income (loss), before income tax			4,259						(25,956)						(3,282)
Income tax (expense) benefit related to items of other comprehensive income (loss)			(898)						5,779						519
Other comprehensive income (loss), net of income tax			3,361						(20,177)						(2,763)
Comprehensive income (loss)			4,963						(14,875)						4,113
Less: Comprehensive income (loss) attributable to noncontrolling interest, net of income tax			6						11						24
Comprehensive income (loss) attributable to MetLife, Inc.			$	4,957					$	(14,886)					$	4,089

See accompanying notes to the consolidated financial statements.

MetLife, Inc.

Consolidated Statements of Equity

Years Ended December 31, 2023, 2022 and 2021

(In millions)

						Preferred Stock						Common Stock						Additional Paid-in Capital						Retained Earnings						Treasury Stock at Cost						Accumulated Other Comprehensive Income (Loss)						Total MetLife, Inc.’s Stockholders’ Equity						Noncontrolling Interests						Total Equity
Balance at December 31, 2020						$	—					$	12					$	33,812					$	36,491					$	(13,829)					$	18,072					$	74,558					$	259					$	74,817
Cumulative effects of changes in accounting principles, net of income tax																								(4,667)												(17,757)						(22,424)												(22,424)
Redemption of preferred stock																		(494)																								(494)												(494)
Preferred stock redemption premium																								(6)																		(6)												(6)
Treasury stock acquired in connection with share repurchases																														(4,328)												(4,328)												(4,328)
Stock-based compensation																		193																								193												193
Dividends on preferred stock																								(195)																		(195)												(195)
Dividends on common stock (declared per share of $1.900)																								(1,647)																		(1,647)												(1,647)
Change in equity of noncontrolling interests																																										—						(16)						(16)
Net income (loss)																								6,855																		6,855						21						6,876
Other comprehensive income (loss), net of income tax																																				(2,766)						(2,766)						3						(2,763)
Balance at December 31, 2021						—						12						33,511						36,831						(18,157)						(2,451)						49,746						267						50,013
Treasury stock acquired in connection with share repurchases																														(3,301)												(3,301)												(3,301)
Stock-based compensation																		105																								105												105
Dividends on preferred stock																								(185)																		(185)												(185)
Dividends on common stock (declared per share of $1.980)																								(1,598)																		(1,598)												(1,598)
Change in equity of noncontrolling interests																																										—						(34)						(34)
Net income (loss)																								5,284																		5,284						18						5,302
Other comprehensive income (loss), net of income tax																																				(20,170)						(20,170)						(7)						(20,177)
Balance at December 31, 2022						—						12						33,616						40,332						(21,458)						(22,621)						29,881						244						30,125
Treasury stock acquired in connection with share repurchases (includes $30 million of excise tax)																														(3,133)												(3,133)												(3,133)
Stock-based compensation																		74																								74												74
Dividends on preferred stock																								(198)																		(198)												(198)
Dividends on common stock (declared per share of $2.060)																								(1,566)																		(1,566)												(1,566)
Change in equity of noncontrolling interests																																										—						(12)						(12)
Net income (loss)																								1,578																		1,578						24						1,602
Other comprehensive income (loss), net of income tax																																				3,379						3,379						(18)						3,361
Balance at December 31, 2023						$	—					$	12					$	33,690					$	40,146					$	(24,591)					$	(19,242)					$	30,015					$	238					$	30,253

See accompanying notes to the consolidated financial statements.

MetLife, Inc.

Consolidated Statements of Cash Flows

Years Ended December 31, 2023, 2022 and 2021

(In millions)

			2023						2022						2021
Cash flows from operating activities
Net income (loss)			$	1,602					$	5,302					$	6,876
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expenses			718						673						694
Amortization of premiums and accretion of discounts associated with investments, net			(1,332)						(992)						(874)
(Gains) losses on investments and from sales of businesses, net			2,800						1,260						(1,543)
(Gains) losses on derivatives, net			3,259						4,150						4,676
(Income) loss from equity method investments, net of dividends or distributions			1,090						505						(3,051)
Interest credited to policyholder account balances			7,970						3,771						5,628
Universal life and investment-type product policy fees			(4,031)						(3,969)						(3,663)
Change in contractholder-directed equity securities and fair value option securities			(539)						1,671						(231)
Change in accrued investment income			(194)						(357)						(11)
Change in premiums, reinsurance and other receivables			(1,952)						299						362
Change in market risk benefits			(658)						(3,347)						(839)
Change in deferred policy acquisition costs and value of business acquired, net			(660)						(800)						(708)
Change in income tax			(1,177)						198						856
Change in other assets			(124)						138						(1,008)
Change in insurance-related liabilities and policy-related balances			4,637						3,937						5,002
Change in other liabilities			2,115						360						68
Other, net			197						245						113
Net cash provided by (used in) operating activities			13,721						13,044						12,347
Cash flows from investing activities
Sales, maturities and repayments of:
Fixed maturity securities available-for-sale			58,816						88,937						88,839
Equity securities			1,018						873						708
Mortgage loans			8,505						10,779						19,183
Real estate and real estate joint ventures			143						1,096						1,285
Other limited partnership interests			915						1,615						777
Short-term investments			13,117						14,094						20,871
Purchases and originations of:
Fixed maturity securities available-for-sale			(63,460)						(82,956)						(97,368)
Equity securities			(73)						(1,368)						(451)
Mortgage loans			(8,795)						(16,403)						(14,961)
Real estate and real estate joint ventures			(1,057)						(1,208)						(1,375)
Other limited partnership interests			(1,670)						(2,674)						(3,227)
Short-term investments			(14,000)						(11,741)						(24,148)
Cash received in connection with freestanding derivatives			3,145						4,524						3,453
Cash paid in connection with freestanding derivatives			(5,662)						(7,793)						(7,990)
Sales of businesses, net of cash and cash equivalents disposed of $0, $67 and $611, respectively			—						590						3,270
Purchases of investments in operating joint ventures			—						(240)						—
Net change in policy loans			34						104						228
Net change in other invested assets			(1,079)						(786)						(235)
Other, net			(143)						(63)						(46)
Net cash provided by (used in) investing activities			$	(10,246)					$	(2,620)					$	(11,187)

See accompanying notes to the consolidated financial statements.

MetLife, Inc.

Consolidated Statements of Cash Flows — (continued)

Years Ended December 31, 2023, 2022 and 2021

(In millions)

			2023						2022						2021
Cash flows from financing activities
Policyholder account balances - deposits			$	95,587					$	103,901					$	97,206
Policyholder account balances - withdrawals			(90,876)						(98,591)						(93,130)
Payables for collateral under securities loaned and other transactions:
Net change in payables for collateral under securities loaned and other transactions			(3,283)						(10,730)						1,883
Cash paid for other transactions with tenors greater than three months			—						—						(100)
Long-term debt issued			1,989						1,013						29
Long-term debt repaid			(1,035)						(85)						(582)
Collateral financing arrangement repaid			(79)						(50)						(79)
Derivatives with certain financing elements and other derivative related transaction, net			(74)						(61)						270
Proceeds from mortgage loan secured financing			682						—						—
Repayments of mortgage loan secured financing			(845)						—						—
Treasury stock acquired in connection with share repurchases			(3,103)						(3,326)						(4,303)
Redemption of preferred stock			—						—						(494)
Preferred stock redemption premium			—						—						(6)
Dividends on preferred stock			(198)						(185)						(195)
Dividends on common stock			(1,566)						(1,598)						(1,647)
Other, net			(139)						(236)						22
Net cash provided by (used in) financing activities			(2,940)						(9,948)						(1,126)
Effect of change in foreign currency exchange rates on cash and cash equivalents balances			(91)						(397)						(478)
Change in cash and cash equivalents			444						79						(444)
Cash and cash equivalents, including subsidiaries held-for-sale, beginning of year			20,195						20,116						20,560
Cash and cash equivalents, including subsidiaries held-for-sale, end of year			$	20,639					$	20,195					$	20,116
Cash and cash equivalents, subsidiaries held-for-sale, beginning of year			$	—					$	69					$	765
Cash and cash equivalents, subsidiaries held-for-sale, end of year			$	—					$	—					$	69
Cash and cash equivalents, beginning of year			$	20,195					$	20,047					$	19,795
Cash and cash equivalents, end of year			$	20,639					$	20,195					$	20,047
Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest			$	989					$	905					$	914
Income tax			$	1,833					$	1,056					$	1,102
Non-cash transactions:
Fixed maturity securities available-for-sale disposed of in connection with a reinsurance transaction			$	8,984					$	—					$	—
Fixed maturity securities available-for-sale received in connection with pension risk transfer transactions			$	2,749					$	8,707					$	423
Mortgage loans disposed of in connection with a reinsurance transaction			$	196					$	—					$	—
Equity securities received due to in-kind distributions from other limited partnership interests			$	77					$	96					$	380
Real estate and real estate joint ventures acquired in satisfaction of debt			$	32					$	495					$	174
Other invested assets reclassified to contractholder-directed equity securities and fair value option securities			$	—					$	—					$	309

See accompanying notes to the consolidated financial statements.

MetLife, Inc.

Notes to the Consolidated Financial Statements

1. Business, Basis of Presentation and Summary of Significant Accounting Policies

Business

“MetLife” and the “Company” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. MetLife is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. In the fourth quarter of 2023, MetLife reorganized from five segments into the following six segments to reflect changes in management’s responsibilities: Group Benefits; Retirement and Income Solutions (“RIS”); Asia; Latin America; Europe, the Middle East and Africa (“EMEA”) and MetLife Holdings. The Group Benefits and RIS businesses were previously reported as the U.S. segment. In addition, the Company continues to report certain of its results of operations in Corporate & Other. See Note 2 for further information on the Company’s segments and Corporate & Other.

Basis of Presentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates.

Adoption of ASU 2018-12 - Targeted Improvements to the Accounting for Long-Duration Contracts

Effective January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, as amended by ASU 2019-09, Financial Services—Insurance (Topic 944): Effective Date; ASU 2020-11, Financial Services—Insurance (Topic 944): Effective Date and Early Application; and ASU 2022-05, Financial Services—Insurance (Topic 944): Transition for Sold Contracts (“LDTI”), with a transition date of January 1, 2021 (the “Transition Date”). Adoption of LDTI impacted the Company’s accounting and presentation related to long-duration insurance contracts and certain related balances for the years ended December 31, 2022 and 2021. Amounts within these consolidated financial statements which were previously presented, have been revised to conform with the current year accounting and presentation under LDTI. Disclosures as of the Transition Date are reflected in summary within “— Recent Accounting Pronouncements — Adoption of ASU 2018-12 - Targeted Improvements to the Accounting for Long-Duration Contracts,” and in further detail (at the disaggregated level) within Notes 4, 5, 6 and 8.

Consolidation

The accompanying consolidated financial statements include the accounts of MetLife, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has a controlling financial interest, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated.

The Company uses the equity method of accounting, unless the fair value option (“FVO”) is applied for real estate joint ventures and other limited partnership interests (“investee”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings in net investment income on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period.

Held-for-Sale

The Company classifies a business as held-for-sale when management has approved or received approval to sell the business, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current estimated fair value and certain other specified criteria are met. The business classified as held-for-sale is recorded at the lower of the carrying value and estimated fair value, less cost to sell. If the carrying value of the business exceeds its estimated fair value, less cost to sell, a loss is recognized and reported in net investment gains (losses). Assets and liabilities related to the business classified as held-for-sale are separately reported in the Company's consolidated balance sheets in the period in which the business first meets all the criteria to be classified as held-for-sale and in each reporting period thereafter until sold. See Note 3. If a component of the Company has either been disposed of or is classified as held-

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

for-sale and represents a strategic shift that has or will have a major effect on the Company’s operations and financial results, the results of the component are reported in discontinued operations.

Separate Accounts

Separate accounts are established in conformity with insurance laws. Generally, the assets of the separate accounts cannot be used to settle the liabilities that arise from any other business of the Company. Separate account assets are subject to general account claims only to the extent the value of such assets exceeds the separate account liabilities. The Company reports separately, as separate account assets and liabilities, investments held in separate accounts and corresponding policyholder liabilities of the same amount if all of the following criteria are met:

• such separate accounts are legally recognized;

• assets supporting the contract liabilities are legally insulated from the Company’s general account liabilities;

• investment objectives are directed by the contractholder; and

• all investment performance, net of contract fees and assessments, is passed through to the contractholder.

The Company reports separate account assets at their fair value which is based on the estimated fair values of the underlying assets comprising the individual separate account portfolios. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line on the statements of operations. Separate accounts credited with a contractual investment return are not reported as separate account assets and liabilities and are combined on a line-by-line basis with the Company’s general account assets, liabilities, revenues and expenses and the accounting for these investments is consistent with the methodologies described herein for similar financial instruments held within the general account. Unit-linked separate account investments that are directed by contractholders but do not meet one or more of the other above criteria are included in contractholder-directed equity securities with the corresponding liability included in policyholder account balances (“PABs”) on the balance sheets. Investment performance is reported within net investment income and a corresponding amount reported as interest credited to PABs in the statements of operations.

The Company’s revenues reflect fees charged to the separate accounts, including mortality charges, risk charges, policy administration fees, investment management fees and surrender charges. Such fees are included in universal life and investment-type product policy fees on the statements of operations.

Revisions

The Company originates mortgage loans and in certain cases transfers proportional rights to cash flows of mortgage loans to third parties. These transactions were previously accounted for by the Company as sales of portions of the related mortgage loans. During the second quarter of 2023, management determined that certain of these pre-existing transactions did not meet the criteria for sale accounting and recorded an adjustment to reflect those transfers as secured borrowings. This adjustment did not result in changes to the Company’s economic exposure or key financial reporting metrics. Based on management’s assessment of both quantitative and qualitative factors, the error correction was not material to the Company’s current period or prior period financial statements and prior periods have not been revised.

Summary of Significant Accounting Policies

The following table presents the Company’s significant accounting policies with cross-references to the notes which provide additional information on such policies.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Accounting Policy			Note
Future Policy Benefit Liabilities			4
Policyholder Account Balances			5
Market Risk Benefits			6
Deferred Policy Acquisition Costs, Value of Business Acquired, Unearned Revenue and Other Intangibles			8
Reinsurance			9
Investments			11
Derivatives			12
Fair Value			13
Goodwill			15
Employee Benefit Plans			21
Income Tax			22
Litigation Contingencies			24

Future Policy Benefit Liabilities

Traditional Non-participating and Limited-payment Long-duration products

The Company establishes future policy benefit liabilities (“FPBs”) for amounts payable under traditional non-participating and limited-payment long-duration insurance and reinsurance policies which include, but are not limited to most whole and term life & endowment products, accident & health, fixed annuities, pension risk transfers, structured settlements, institutional income annuities and long-term care products. Generally, amounts are payable over an extended period of time and the related liabilities are calculated as the present value of future expected benefits and claim settlement expenses to be paid, reduced by the present value of future expected net premiums.

FPBs are measured as cohorts (e.g., groups of long-duration contracts), with the exception of pension risk transfers and longevity reinsurance solutions contracts, each of which is generally considered its own cohort. Contracts from different subsidiaries or branches, issue years, benefit currencies and product types are not grouped together in the same cohort.

Such liabilities are established based on methods and underlying assumptions in accordance with GAAP and applicable actuarial standards. A net premium ratio (“NPR”) approach is utilized, where net premiums (i.e., the portion of gross premiums required to fund expected insurance benefits and claim settlement expenses) are accrued each period as FPBs. The NPR used to accrue the FPB in each period is determined by using the historical and present value of expected future benefits and claim settlement expenses for the cohort divided by the historical and present value of expected future gross premiums for the cohort.

Cash flow assumptions are incorporated into the calculation of a cohort's NPR and FPB reserve. These assumptions are used to project the amount and timing of expected benefits and claim settlement expenses to be paid and the expected amount of premiums to be collected for a cohort. The principal inputs and assumptions used in the establishment of FPBs are actual premiums, actual benefits, in-force policies, and best estimate cash flow assumptions to project future premium and benefit amounts. The Company’s primary best estimate cash flow assumptions include expectations related to mortality, morbidity, termination, claim settlement expense, policy lapse, renewal, retirement, disability incidence, disability terminations, inflation and other contingent events as appropriate to the respective product type and geographical area. Generally, the NPR and FPB reserve are updated retrospectively on a quarterly basis for actual experience and at least once a year for any changes in future cash flow assumptions, except for claim settlement expenses, for which the Company has elected to lock in assumptions at the Transition Date or inception (for contracts sold after the Transition Date), as allowed by LDTI. The resulting remeasurement (gain) loss is recorded through net income and reflects the impact of the change in the NPR based on experience at the end of the quarter applied to the cumulative premiums received from the inception of the cohort (or from the Transition Date for contracts issued prior to the Transition Date) to the beginning of the quarter. The total contractual profit pattern is recognized over the expected life of the cohort by retrospectively updating the NPR. If net premiums exceed gross premiums (i.e., expected benefits

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

exceed expected gross premiums), the FPB is increased, and a corresponding adjustment is recognized immediately in net income.

The change in FPB reflected in the statement of operations is calculated using a locked-in discount rate. For products issued prior to the Transition Date, a cohort level locked-in discount rate was developed that reflected the interest accretion rates that were locked in at inception of the underlying contracts (unless there was a historical premium deficiency event that resulted in updating the interest accretion rate prior to the Transition Date), or the acquisition date for contracts acquired through an assumed in-force reinsurance transaction or a business combination. For contracts issued subsequent to the Transition Date, the upper-medium grade discount rate used for interest accretion is locked-in for the cohort and represents the original upper-medium grade discount rate at the issue date of the underlying contracts. The FPB for all cohorts is remeasured to a current upper-medium grade discount rate at each reporting date through other comprehensive income (loss) (“OCI”).

The Company generally interprets the upper-medium grade discount rate to be a rate comparable to that of a corporate single A rate that reflects the duration characteristics of the liability. The upper-medium grade discount rate is determined by using observable market data, including published upper-medium grade discount curves. In situations where market data for an upper-medium grade discount curve is not available (e.g., in certain foreign jurisdictions), spreads are applied to adjust the available observable market data to an upper-medium grade discount curve. The last liquid point on the upper-medium grade discount curve for each jurisdiction grades to an ultimate forward rate, which is derived using assumptions of economic growth, inflation, and a long-term upper-medium grade spread.

The table below summarizes the market data and spreads applied to determine the upper-medium grade discount rate for products issued in key jurisdictions that are included in the disaggregated rollforwards in Note 4.

Disaggregated rollforwards			Jurisdiction			Observable base curve			Spread applied to derive upper-medium grade discount rate
RIS Annuities, MetLife Holdings Long-term Care			United States			Single A curve			No spread applied as there is an observable single A base discount curve.
Asia - Whole and Term Life & Endowments, Asia - Accident & Health			Japan			Japanese government bond yield			A spread is applied based on local corporate bonds whose credit is deemed to approximate single A bonds. The spread is based on weighted average bond yields up to 10 years and held flat for years 10 to 30.
Korea			Korean government bond yield			A spread is applied based on local corporate bonds whose credit is deemed to approximate single A bonds. The spread is based on weighted average bond yields up to five years and held flat for years five to 30.
Latin America Fixed Annuities			Chile			Chilean government bond yield			A blended spread is applied based on local corporate bonds whose credit is deemed to approximate single A bonds. The spread is based on weighted average bond yields up to 10 years and held flat for years 10 to 25.
Mexico			Mexican government bond yield			There are few public corporate bonds denominated in Mexican pesos with a credit rating higher than sovereign bonds. Therefore a spread is applied based on local corporate bond yields to approximate a single A equivalent bond.

For limited-payment long-duration contracts, the collection of premiums does not represent the completion of the earnings process, therefore, any gross premiums received in excess of net premiums is deferred and amortized as a deferred profit liability (“DPL”). The DPL is presented within FPBs and is amortized in proportion to either the present value of expected benefit payments or insurance in-force of each cohort to ensure that profits are recognized over the life of the underlying policies in that cohort, regardless of when premiums are received. This amortization of the DPL is

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

recorded through net income within policyholder benefits and claims. Consistent with the Company’s measurement of traditional long-duration products, management also recognizes a FPB reserve for limited-payment contracts that is representative of the difference between the present value of expected future benefits and the present value of expected future net premiums, subject to retrospective remeasurement through net income and OCI, as described above. The DPL is also subject to retrospective remeasurement through net income, however, it is not remeasured for changes in discount rates.

When a cohort’s present value of future net premiums exceeds the present value of future benefits, a “flooring” adjustment is required. The flooring adjustment ensures that the liability for future policy benefits for each cohort is not less than zero, and is reported in net income or OCI, depending on whether the flooring relates to the FPB discounted at the locked-in discount rate versus the current upper-medium grade discount rate, respectively.

Traditional Participating Products

The Company establishes FPBs for traditional participating contracts in the U.S., which include whole and term life participating contracts in both the open and closed block using a net premium approach, similar to traditional non-participating contracts. However, for participating contracts, the discount rate and actuarial assumptions are locked-in at inception, include a provision for adverse deviation, and all changes in the associated FPBs are reported within policyholder benefits and claims. See Note 10 for additional information on the closed block. For traditional participating contracts, the Company reviews its estimates of actuarial liabilities for future benefits and compares them with current best estimate assumptions. The Company revises estimates, to increase FPBs, if the Company determines that the liabilities previously established for future benefit payments less future expected net premiums in the aggregate for this line of business prove inadequate.

Additional Insurance Liabilities

Liabilities for universal, variable universal, and variable life policies with secondary guarantees (“ULSG”) and paid-up guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the life of the contract based on total expected assessments. The additional insurance liabilities are updated retrospectively on a quarterly basis for actual experience and at least once a year for any changes in future cash flow assumptions. The assumptions used in estimating the secondary and paid-up guarantee liabilities are investment income, mortality, lapse, and premium payment pattern and persistency. The assumptions of investment performance and volatility for variable products are consistent with historical experience of appropriate underlying equity indices, such as the S&P Global Ratings (“S&P”) 500 Index. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios.

The resulting adjustments are recorded as policyholder liability remeasurement (gains) losses in the statement of operations reflecting the impact on the change in the ratio of benefits payable to total assessments over the life of the contract based on experience at the end of the quarter applied to the cumulative assessments received as of the beginning of the quarter.

For annuitization benefits, future benefits expected to be paid during the annuitization phase are discounted using an upper-medium grade discount rate to determine the excess benefit upon annuitization. The discount rate is not locked in for expected annuitization benefits, and is required to be updated quarterly, consistent with other components of the annuitization benefit cash flows. Changes in the discount rate applied to the future annuitization payments are reflected in policyholder benefits and claims within the statement of operations.

Premium Deficiency Reserves

Premium deficiency reserves may be established for short-duration contracts to provide for expected future losses and certain expenses that exceed unearned premiums. These reserves are based on actuarial estimates of the amount of loss inherent in that period, including losses incurred for which claims have not been reported. The provisions for unreported claims are calculated using studies that measure the historical length of time between the incurred date of a claim and its eventual reporting to the Company. For universal life-type and certain participating contracts, a premium deficiency reserve may be established when existing contract liabilities, together with the present value of future fees and/or premiums, are not sufficient to cover the present value of future benefits and settlement costs. Anticipated investment income is also considered in the calculations of premium deficiency reserves for short-duration contracts, as well as universal life-type and certain participating contracts.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Policyholder Account Balances

PABs represent the amount held by the Company on behalf of the policyholder at each reporting date. This amount includes deposits received from the policyholder, interest credited to the policyholder’s account balance, net of charges assessed against the account balance and any policyholder withdrawals. This balance also includes liabilities for structured settlement and institutional income annuities, and certain other contracts, that do not contain significant insurance risk, as well as the estimated fair value of embedded derivatives associated with indexed annuity products.

Market Risk Benefits

As defined by LDTI, market risk benefits (“MRBs”) are contracts or contract features that guarantee benefits, such as guaranteed minimum benefits, in addition to an account balance, which expose insurance companies to other than nominal capital market risk (e.g., equity price, interest rate, and/or foreign currency exchange risk) and subsequently protect the contractholder from the same risk. These contracts and contract features were generally recorded as embedded derivatives or additional insurance liabilities prior to the Transition Date. Certain contracts may have multiple contract features or guarantees. In these cases, each feature is separately evaluated to determine whether it meets the definition of an MRB at contract inception. If a contract includes multiple benefits that meet the definition of an MRB, those benefits are aggregated and measured as a single compound MRB.

All identified MRBs are required to be measured at estimated fair value, whether the contract or contract feature represents a direct, assumed or ceded capital market risk. All MRBs in an asset position are aggregated and presented as an asset, and all MRBs in a liability position are aggregated and presented as a liability. Changes in the estimated fair value of MRBs are recognized in net income, except for the portion of the fair value change attributable to the change in nonperformance risk of the Company which is recorded as a separate component of OCI.

The Company generally uses an attributed fee approach to value MRBs, where the attributed fee is determined at contract inception by estimating the fair value of expected future benefits and the expected future fees. The attributed fee percentage is the portion of the expected future fees due from contractholders deemed necessary at contract inception to fund all future expected benefits. This typically results in a zero fair value for the MRB at inception. The estimated fair value of the expected future benefits is estimated using a stochastically-generated set of risk-neutral scenarios. Once calculated, the attributed fee percentage is fixed and does not change over the life of the contract. All fees due from contractholders (or payable to reinsurers in the case of ceded MRBs) in excess of the attributed fees are reported in universal life and investment-type product policy fees.

Other Policy-Related Balances

Other policy-related balances include policy and contract claims, premiums received in advance, unearned revenue (“UREV”) liabilities, obligations assumed under structured settlement assignments, policyholder dividends due and unpaid, policyholder dividends left on deposit and negative value of business acquired (“VOBA”).

The liability for policy and contract claims generally relates to incurred but not reported (“IBNR”) death, disability, dental and vision claims. In addition, generally included in other policy-related balances are claims which have been reported but not yet settled for death, disability, dental and vision. The liability for these claims is based on the Company’s estimated ultimate cost of settling all claims. The Company derives estimates for the development of IBNR claims principally from analyses of historical patterns of claims by business line. The methods used to determine these estimates are continually reviewed. Adjustments resulting from this continuous review process and differences between estimates and payments for claims are recognized in policyholder benefits and claims expense in the period in which the estimates are changed or payments are made.

The Company accounts for the prepayment of premiums on its individual life, group life and health contracts as premiums received in advance. These amounts are then recognized in premiums when due.

The UREV liability relates to universal life and investment-type products and represents policy charges for services to be provided in future periods. The charges are deferred as UREV and amortized on a basis consistent with the methodologies and assumptions used for amortizing deferred policy acquisition costs (“DAC”) for the related contracts. Changes in the UREV liability for each period (representing deferrals less amortization) are reported in universal life and investment-type product policy fees.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

See “— Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles” for a discussion of negative VOBA.

Recognition of Insurance Revenues and Deposits

Premiums related to long-duration whole and term life & endowment products, individual accident & health, disability, individual and group fixed annuities (including pension risk transfers, certain structured settlements, and certain income annuities), long-term care and participating products are recognized as revenues when due from policyholders. Policyholder benefits and expenses are provided to recognize profits over the estimated lives of the insurance policies. When premiums are due over a significantly shorter period than the period over which benefits are provided, any excess profit is deferred as a DPL and recognized into earnings in a constant relationship to insurance in-force or, for annuities, the present value of expected future policy benefit payments.

Premiums related to short-duration group term life, dental, disability, accident & health, vision and credit insurance contracts are recognized on a pro rata basis over the applicable contract term. Unearned premiums, representing the portion of premium written related to the unexpired coverage, are reflected as liabilities until earned.

Deposits related to universal life and investment-type products are credited to PABs. Revenues from such contracts consist of fees for mortality, policy administration and surrender charges and are recorded in universal life and investment-type product policy fees in the period in which services are provided. All fees due from contractholders (or payable to reinsurers in the case of ceded MRBs) in excess of the attributed fees on contracts with MRBs are reported in universal life and investment-type product policy fees. Amounts that are charged to earnings include interest credited and benefit claims incurred in excess of related PABs.

All revenues and expenses are presented net of reinsurance, as applicable.

Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles

The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include:

• incremental direct costs of contract acquisition, such as commissions;

• the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed;

• other essential direct costs that would not have been incurred had a policy not been acquired or renewed; and

• the costs of direct-response advertising, the primary purpose of which is to elicit sales to customers who could be shown to have responded specifically to the advertising and that results in probable future benefits.

All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred.

VOBA is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience with the purchased business may vary from these projections. VOBA is subject to periodic recoverability testing for traditional life and limited-payment contracts, as well as universal life type contracts.

DAC and VOBA for most long-duration products are amortized on a constant-level basis that approximates straight-line amortization on an individual contract basis. The DAC and VOBA related to RIS annuities are amortized over expected benefit payments, and for all other long-duration products are generally amortized in proportion to policy count. For short-duration products, DAC and VOBA are amortized in proportion to actual and expected future earned premiums.

DAC and VOBA are aggregated on the financial statements for reporting purposes. Amortization of DAC and VOBA is included in other expenses.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

The Company generally has two different types of sales inducements which are included in other assets: (i) the policyholder receives a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s deposit; and (ii) the policyholder receives a higher interest rate using a dollar cost averaging method than would have been received based on the normal general account interest rate credited. The Company defers sales inducements and amortizes them over the life of the policy using the same methodologies and assumptions used to amortize DAC for the related contracts. The amortization of deferred sales inducements (“DSI”) is included in policyholder benefits and claims. DSI assets were $146 million and $133 million at December 31, 2023 and 2022, respectively.

Value of distribution agreements acquired (“VODA”) is reported in other assets and represents the present value of expected future profits associated with the expected future business derived from the distribution agreements acquired as part of a business combination. Value of customer relationships acquired (“VOCRA”) is also reported in other assets and represents the present value of the expected future profits associated with the expected future business acquired through existing customers of the acquired company or business. The VODA and VOCRA associated with past business combinations are amortized over the assets’ useful lives ranging from nine to 40 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possible impairment exists, the Company reviews VODA and VOCRA to determine whether the asset is impaired.

For certain acquired blocks of business, the estimated fair value of the in-force contract obligations exceeded the book value of assumed in-force insurance policy liabilities, resulting in negative VOBA, which is presented separately from VOBA as an additional insurance liability included in other policy-related balances. The estimated fair value of the in-force contract obligations is based on projections by each block of business. Negative VOBA is amortized on a basis consistent with the methodologies and assumptions used for amortizing DAC for the related contracts. Such amortization is recorded as an offset in other expenses.

Reinsurance

For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims.

For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying reinsured contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is amortized on a basis consistent with the methodologies and assumptions used for amortizing DAC related to the underlying reinsured contracts. Subsequent accounting for in-force blocks and new business assumed is the same as if the business was directly sold by the Company.

For prospective reinsurance of short-duration contracts that meet the criteria for reinsurance accounting, amounts paid (received) are recorded as ceded (assumed) premiums and ceded (assumed) unearned premiums. Ceded (assumed) unearned premiums are reflected as a component of premiums, reinsurance and other receivables (future policy benefits). Such amounts are amortized through earned premiums over the remaining contract period in proportion to the amount of insurance protection provided. For retroactive reinsurance of short-duration contracts that meet the criteria for reinsurance accounting, amounts paid (received) in excess of the related insurance liabilities ceded (assumed) are recognized immediately as a loss and are reported in the appropriate line item within the statement of operations. Any gain on such retroactive agreement is deferred and is amortized as part of DAC, primarily using the recovery method.

The reinsurance recoverable for traditional non-participating and limited-payment contracts is generally measured using a net premium methodology to accrue the projected net gain or loss on reinsurance in proportion to the gross premiums of the underlying reinsured cohorts; and is updated retrospectively on a quarterly basis for actual experience and at least once a year for any changes in cash flow assumptions. The locked-in discount rate used to measure changes in the reinsurance recoverable recorded in net income was established at the Transition Date, or at the inception of the reinsurance coverage for new reinsurance agreements entered into subsequent to the Transition Date. The reinsurance recoverable is remeasured to an upper-medium grade discount rate through OCI at each reporting date, similar to the underlying reinsured contracts. The reinsurance recoverable for other long-duration contracts and associated contract

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

features is measured using assumptions and methods generally consistent with the underlying direct policies, except that for reinsured MRBs, the entire change in fair value is recognized in net income each reporting period.

Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, or when events or changes in circumstances indicate that its carrying amount may not be recoverable, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, consistent with credit loss guidance which requires recording an allowance for credit loss (“ACL”).

Premiums, fees, policyholder liability remeasurement (gains) losses, and policyholder benefits and claims include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other expenses.

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate.

Investments

Net Investment Income

Net investment income includes primarily interest income, including amortization of premium and accretion of discount, prepayment fees, dividend income, rental income and equity method income and is net of related investment expenses. Net investment income also includes; (i) realized gains (losses) on investments sold or disposed and (ii) unrealized gains (losses) recognized in earnings, representing changes in estimated fair value, primarily for Unit-linked investments (defined below) and FVO securities.

Net Investment Gains (Losses)

Net investment gains (losses) include primarily (i) realized gains (losses) from sales and disposals of investments, which are determined by specific identification, (ii) intent-to-sell impairment losses on fixed maturity securities available-for-sale (“AFS”) and impairment losses on all other asset classes and, to a lesser extent, (iii) recognized gains (losses). Recognized gains (losses) are primarily comprised of the change in the ACL and unrealized gains (losses) for certain investments for which changes in estimated fair value are recognized in earnings. Changes in the ACL includes both (i) provisions for credit loss on fixed maturity securities AFS, mortgage loans and leveraged and direct financing leases, and (ii) subsequent changes in the ACL. Unrealized gains (losses), representing changes in estimated fair value recognized in earnings, primarily relate to equity securities and certain other limited partnership interests and real estate joint ventures.

Net investment gains (losses) also include non-investment portfolio gains (losses) which do not relate to the performance of the investment portfolio, including gains (losses) from sales and divestitures of businesses and impairment of property, equipment, leasehold improvements and right-of-use (“ROU”) lease assets.

Accrued Investment Income

Accrued investment income is presented separately on the consolidated balance sheet and excluded from the carrying value of the related investments, primarily fixed maturity securities and mortgage loans.

Fixed Maturity Securities

The majority of the Company’s fixed maturity securities are classified as AFS and are reported at their estimated fair value. Changes in the estimated fair value of these securities not recognized in earnings representing unrecognized unrealized investment gains (losses) are recorded as a separate component of OCI, net of policy-related amounts and

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

deferred income taxes. All security transactions are recorded on a trade date basis. Sales of securities are determined on a specific identification basis.

Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premium and accretion of discount, and is based on the estimated economic life of the securities, which for mortgage-backed and asset-backed securities considers the estimated timing and amount of prepayments of the underlying loans. See Note 11 “— Fixed Maturity Securities AFS — Methodology for Amortization of Premium and Accretion of Discount on Structured Products.” The amortization of premium and accretion of discount also take into consideration call and maturity dates. Generally, the accrual of income is ceased and accrued investment income that is considered uncollectible is recognized as a charge within net investment gains (losses) when securities are impaired.

The Company periodically evaluates these securities for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value as described in Note 11 “— Fixed Maturity Securities AFS — Evaluation of Fixed Maturity Securities AFS for Credit Loss.”

For securities in an unrealized loss position, a credit loss is recognized in earnings within net investment gains (losses) when it is anticipated that the amortized cost, excluding accrued investment income, will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the reduction of amortized cost and the loss recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized in earnings as a credit loss by establishing an ACL with a corresponding charge recorded in net investment gains (losses). However, the ACL is limited by the amount that the fair value is less than the amortized cost. This limitation is known as the “fair value floor.” If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors (“noncredit loss”) is recorded in OCI as an unrecognized loss.

For purchased credit deteriorated (“PCD”) fixed maturity securities AFS and financing receivables, an ACL is established at acquisition, which is added to the purchase price to establish the initial amortized cost of the investment and is not recognized in earnings.

Equity Securities

Equity securities are reported at their estimated fair value, with unrealized gains (losses) representing changes in estimated fair value recognized in net investment gains (losses). Sales of securities are determined on a specific identification basis. Dividends are recognized in net investment income when declared.

Contractholder-Directed Equity Securities and Fair Value Option Securities

Contractholder-directed equity securities and FVO securities (collectively, “Unit-linked and FVO securities”) are investments for which the FVO has been elected, or which are otherwise required to be carried at estimated fair value, and include:

• contractholder-directed investments supporting unit-linked variable annuity type liabilities (“Unit-linked investments”) which do not qualify for presentation and reporting as separate account summary total assets and liabilities. These investments are primarily equity securities (including mutual funds). The investment returns on these investments inure to contractholders and are offset by a corresponding change in PABs through interest credited to PABs; and

• fixed maturity and equity securities held-for-investment by the general account to support asset and liability management strategies for certain insurance products and investments in certain separate accounts.

Interest income and dividend income on these investments are included in net investment income. Realized gains (losses) on investments sold or disposed and unrealized gains (losses), representing changes in estimated fair value, are both recognized in net investment income for Unit-linked investments and FVO securities. Sales of these investments are determined on a specific identification basis.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Mortgage Loans

The Company may originate or acquire mortgage loans and in certain cases transfer an interest to third parties under participation agreements. The Company accounts for transfers of an interest in a mortgage loan as sales if the transfers meet both the conditions of a participating interest and the conditions for sale accounting. A mortgage transfer that does not meet these conditions is recognized as a secured borrowing with a pledge of collateral.

The Company disaggregates its mortgage loan investments into three portfolio segments: commercial, agricultural and residential. Also included in commercial mortgage loans are revolving line of credit loans collateralized by commercial properties. The accounting policies that are applicable to all portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 11.

The Company recognizes an ACL in earnings within net investment gains (losses) at time of purchase or origination based on expected lifetime credit loss on financing receivables carried at amortized cost, including, but not limited to, mortgage loans, in an amount that represents the portion of the amortized cost basis of such financing receivables that the Company does not expect to collect, resulting in financing receivables being presented at the net amount expected to be collected.

The Company ceases to accrue interest when the collection of interest is not considered probable, which is based on a current evaluation of the status of the borrower, including the number of days past due. When a loan is placed on non-accrual status, uncollected past due accrued interest income that is considered uncollectible is charged-off against net investment income. Generally, the accrual of interest income resumes after all delinquent amounts are paid and management believes all future principal and interest payments will be collected. The Company records cash receipts on non-accruing loans in accordance with the loan agreement. The Company records charge-offs of mortgage loan balances not considered collectible upon the realization of a credit loss, for commercial and agricultural mortgage loans typically through foreclosure or after a decision is made to sell a loan, and for residential mortgage loans, typically after considering the individual consumer’s financial status. The charge-off is recorded in net investment gains (losses), net of amounts recognized in ACL. Cash recoveries on principal amounts previously charged-off are generally reported in net investment gains (losses).

Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of ACL. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premium and deferred expenses and accretion of discount and deferred fees.

Also included in mortgage loans are residential mortgage loans for which the FVO was elected, and which are stated at estimated fair value. Changes in estimated fair value are recognized in net investment income.

Mortgage loans that are designated as held-for-sale are carried at the lower of amortized cost or estimated fair value.

Policy Loans

Policy loans are stated at unpaid principal balances. Interest income is recognized as earned using the contractual interest rate. Generally, accrued interest is capitalized on the policy’s anniversary date. Valuation allowances are not established for policy loans, as they are fully collateralized by the cash surrender value of the underlying insurance policies. Any unpaid principal and accrued interest are deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy.

Real Estate

Real estate is stated at cost less accumulated depreciation. Depreciation is recognized on a straight-line basis, without any provision for salvage value, over the estimated useful life of the asset (typically up to 55 years). Rental income is recognized on a straight-line basis over the term of the respective leases. The Company periodically reviews its real estate for impairment and tests for recoverability when the carrying value of the real estate is less than its estimated fair value and whenever events or changes in circumstances indicate the carrying value may not be recoverable. Properties whose carrying values are greater than their estimated undiscounted cash flows are written down to their estimated fair value, which is generally computed using the present value of expected future cash flows discounted at a rate commensurate with the underlying risks.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition for a reasonable price in comparison to its estimated fair value is classified as held-for-sale and is not depreciated. Real estate held-for-sale is stated at the lower of depreciated cost or estimated fair value less expected disposition costs.

Real Estate Joint Ventures and Other Limited Partnership Interests

The Company uses the equity method of accounting or the FVO for an investee when it has more than a minor ownership interest or more than a minor influence over the investee’s operations but does not hold a controlling financial interest, including when the Company is not deemed the primary beneficiary of a VIE. Under the equity method, the Company recognizes its share of the investee's earnings within net investment income. Contributions paid by the Company increase carrying value and distributions received by the Company reduce carrying value. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period.

The Company accounts for its interest in real estate joint ventures and other limited partnership interests in which it has virtually no influence over the investee’s operations at estimated fair value. Unrealized gains (losses), representing changes in estimated fair value of these investments, are recognized in earnings within net investment gains (losses). Due to the nature and structure of these investments, they do not meet the characteristics of an equity security in accordance with applicable accounting guidance.

The Company consolidates real estate joint ventures and other limited partnership interests of which it holds a controlling financial interest, or it is deemed the primary beneficiary of a VIE. Assets of certain consolidated real estate joint ventures and other limited partnership interests are initially recorded at estimated fair value. The Company elects the FVO for certain real estate joint ventures that are managed on a total return basis. Unrealized gains (losses) representing changes in estimated fair value for real estate joint ventures and other limited partnership interests recorded at estimated fair value are recognized in net investment income.

The Company routinely evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amount is not recoverable and exceeds its estimated fair value. When it is determined an equity method investment has had a loss in value that is other than temporary, an impairment is recognized. Such an impairment is charged to net investment gains (losses).

Short-term Investments

Short-term investments include highly liquid securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase. Securities included within short-term investments are stated at estimated fair value, while other investments included within short-term investments are stated at amortized cost less ACL, which approximates estimated fair value.

Other Invested Assets

Other invested assets consist principally of the following:

• Freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below.

• Net investment in direct financing leases is equal to the minimum lease payment receivables plus the unguaranteed residual value, less the unearned income, less ACL. Income is recognized by applying the pre-tax internal rate of return to the investment balance. The Company regularly reviews its minimum lease payment receivables for credit loss and residual value for impairments. Certain direct financing leases are linked to inflation.

• Annuities funding structured settlement claims represent annuities funding claims assumed by the Company in its capacity as a structured settlements assignment company. The annuities are stated at their contract value, which represents the present value of the future periodic claim payments to be provided. The net investment income recognized reflects the amortization of discount of the annuity at its implied effective interest rate.

• Investments in operating joint ventures that engage in insurance underwriting activities are accounted for under the equity method.

• Company-owned life insurance policies (“COLI”) are carried at cash surrender value.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

• Tax credit and renewable energy partnerships which derive a significant source of investment return in the form of income tax credits or other tax incentives. The Company accounts for its tax credit and renewable energy investments under the equity method. See Note 22.

• Investments in Federal Home Loan Bank of New York (“FHLBNY”) common stock are carried at redemption value and are considered restricted investments until redeemed by FHLBNY. Dividends are recognized in net investment income when declared.

• Net investment in leveraged leases is equal to the minimum lease payment receivables plus the unguaranteed residual value, less the unearned income, less ACL and is reported net of non-recourse debt. Income is recognized by applying the leveraged lease’s estimated rate of return to the net investment in the lease in those periods in which the net investment at the beginning of the period is positive. Leveraged leases derive investment returns in part from their income tax benefit. The Company regularly reviews its minimum lease payment receivables for credit loss and residual value for impairments.

• Funds withheld represent a receivable for amounts contractually withheld by ceding companies in accordance with reinsurance agreements. The Company recognizes interest on funds withheld at rates defined by the terms of the agreement which may be contractually specified or directly related to the underlying investments.

Securities Lending Transactions and Repurchase Agreements

The Company accounts for securities lending transactions and repurchase agreements as financing arrangements and the associated liability is recorded at the amount of cash received. The securities loaned or sold under these agreements are included in invested assets. Income and expenses associated with securities lending transactions and repurchase agreements are recognized as investment income and investment expense, respectively, within net investment income.

Securities Lending Transactions

The Company enters into securities lending transactions, whereby securities are loaned to unaffiliated financial institutions. The Company obtains collateral at the inception of the loan, usually cash, in an amount generally equal to 102% of the estimated fair value of the securities loaned, and maintains it at a level greater than or equal to 100% for the duration of the loan. Securities loaned under such transactions may be sold or re-pledged by the transferee. The Company is liable to return to the counterparties the cash collateral received. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the Company’s consolidated financial statements. The Company monitors the ratio of the collateral held to the estimated fair value of the securities loaned on a daily basis and additional collateral is obtained as necessary throughout the duration of the loan.

Repurchase Agreements

The Company participates in short-term repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company sells securities and receives cash in an amount generally equal to 85% to 100% of the estimated fair value of the securities sold at the inception of the transaction, with a simultaneous agreement to repurchase such securities at a future date or on demand in an amount equal to the cash initially received plus interest. The Company monitors the ratio of the cash held to the estimated fair value of the securities sold throughout the duration of the transaction and additional cash or securities are obtained as necessary. Securities sold under such transactions may be sold or re-pledged by the transferee.

Derivatives

Freestanding Derivatives

Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement.

Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivative’s carrying value in other invested assets or other liabilities.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows:

Statement of Operations Presentation:			Derivative:
Net investment income			•			Economic hedges of equity method investments in joint ventures
			•			Derivatives held within unit-linked investments
			•			Economic hedges of FVO securities which are linked to equity indices

Hedge Accounting

To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows:

• Fair value hedge - a hedge of the estimated fair value of a recognized asset or liability - in the same line item as the earnings effect of the hedged item. The carrying value of the hedged recognized asset or liability is adjusted for changes in its estimated fair value due to the hedged risk.

• Cash flow hedge - a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability - in OCI and reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item.

• Net investment in a foreign operation (“NIFO”) hedge - in OCI, consistent with the translation adjustment for the hedged net investment in the foreign operation.

The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. Accruals on derivatives in net investment hedges are recognized in OCI.

In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income.

The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument.

When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. The changes in estimated fair value of derivatives related to discontinued cash flow hedges remain in OCI unless it is probable that the hedged forecasted transaction will not occur.

When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable of occurring are recognized immediately in net investment gains (losses).

In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses).

Embedded Derivatives

The Company issues certain products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if:

• the contract or contract feature does not meet the definition of a MRB;

• the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings;

• the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and

• a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument.

Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation.

Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition.

Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily and regularly obtainable. When such unadjusted quoted prices are not available, estimated fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring significant management judgment are used to determine the estimated fair value of assets and liabilities. These unobservable inputs can be based on management’s judgment, assumptions or estimation and may not be observable in market activity. Unobservable inputs are based on management’s assumptions about the inputs market participants would use in pricing the assets.

Goodwill

Goodwill represents the future economic benefits arising from net assets acquired in a business combination that are not individually identified and recognized. Goodwill is calculated as the excess of the cost of the acquired entity over the estimated fair value of such assets acquired and liabilities assumed. Goodwill is not amortized, but is tested for impairment at least annually, or more frequently if events or circumstances indicate that there may be justification for conducting an interim test. The Company performs its annual goodwill impairment testing during the third quarter based upon data as of the close of the second quarter. Goodwill associated with a business acquisition is not tested for impairment during the year the business is acquired unless there is a significant identified impairment event.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

The Company tests goodwill for impairment by performing a qualitative assessment and/or a quantitative test. The qualitative impairment assessment is an assessment of historical information and relevant current events and circumstances, including economic, industry and market considerations, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company may elect not to perform the qualitative impairment assessment for some or all of its reporting units and perform a quantitative impairment test. In performing the quantitative impairment test, the Company may determine the fair values of its reporting units by applying a market multiple, discounted cash flow, and/or an actuarial-based valuation approach. The valuation methodologies utilized are subject to key judgments and assumptions that are sensitive to change.

The impairment test is performed at the reporting unit level, which is the operating segment or a business one level below the operating segment, if discrete financial information is prepared and regularly reviewed by management at that level. For purposes of goodwill impairment testing, if the carrying value of a reporting unit exceeds its estimated fair value, an impairment charge would be recognized for the amount by which the carrying value exceeds the reporting unit’s fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. Additionally, the Company will consider income tax effects from any tax deductible goodwill on the carrying value of the reporting unit when measuring the goodwill impairment loss, if applicable.

On an ongoing basis, the Company evaluates potential triggering events that may affect the estimated fair value of the Company’s reporting units to assess whether any goodwill impairment exists. Deteriorating or adverse economic, industry and market conditions for certain reporting units may have a significant impact on the estimated fair value of these reporting units and could result in future impairments of goodwill.

Employee Benefit Plans

Certain subsidiaries of MetLife, Inc. sponsor defined benefit pension plans and other postretirement benefit plans covering eligible employees. Measurement dates used for all of the subsidiaries’ defined benefit pension and other postretirement benefit plans correspond with the fiscal year ends of sponsoring subsidiaries, which is December 31 for U.S. and non-U.S. subsidiaries.

The Company recognizes the funded status of each of its defined benefit pension and other postretirement benefit plans, measured as the difference between the fair value of plan assets and the benefit obligation, which is the projected benefit obligation (“PBO”) for pension benefits and the accumulated postretirement benefit obligation (“APBO”) for other postretirement benefits in other assets or other liabilities.

Actuarial gains and losses result from differences between each plan’s actual experience and the assumed experience on plan assets or PBO/APBO during a particular period and are recorded in accumulated OCI (“AOCI”). To the extent such gains and losses exceed 10% of the greater of the PBO/APBO or the estimated fair value of plan assets, the excess is amortized into net periodic benefit costs, generally over the average projected future service years of the active employees. In addition, prior service costs (credit) are recognized in AOCI at the time of the amendment and then amortized to net periodic benefit costs over the average projected future service years of the active employees.

Net periodic benefit costs are determined using management’s estimates and actuarial assumptions and are comprised of service cost, interest cost, settlement and curtailment costs, expected return on plan assets, amortization of net actuarial (gains) losses, and amortization of prior service costs (credit). Fair value is used to determine the expected return on plan assets.

The subsidiaries also sponsor defined contribution plans for substantially all U.S. employees under which a portion of employee contributions is matched. Applicable matching contributions are made each payroll period. Accordingly, the Company recognizes compensation cost for current matching contributions. As all contributions are transferred currently as earned to the defined contribution plans, no liability for matching contributions is recognized on the balance sheets.

Income Tax

MetLife, Inc. and its includable life insurance and non-life insurance subsidiaries file a consolidated U.S. federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended. Non-includable subsidiaries file either separate individual corporate tax returns or separate consolidated tax returns.

The Company’s accounting for income taxes represents management’s best estimate of various events and transactions.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse.

The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established against deferred tax assets when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. When making such determination, the Company considers many factors, including:

• the nature, frequency, and amount of cumulative financial reporting income and losses in recent years;

• the jurisdiction in which the deferred tax asset was generated;

• the length of time that carryforward can be utilized in the various taxing jurisdictions;

• future taxable income exclusive of reversing temporary differences and carryforwards;

• future reversals of existing taxable temporary differences;

• taxable income in prior carryback years; and

• tax planning strategies, including the intent and ability to hold certain AFS debt securities until they recover in value.

The Company may be required to change its provision for income taxes when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, the effect of changes in tax laws, tax regulations, or interpretations of such laws or regulations, is recognized in net income tax expense (benefit) in the period of change.

The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded on the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities and are charged to earnings in the period that such determination is made.

The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax expense.

Litigation Contingencies

The Company is a defendant in a large number of litigation matters and is involved in a number of regulatory investigations. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Except as otherwise disclosed in Note 24, legal costs are recognized as incurred. On a quarterly and annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected on the Company’s consolidated financial statements.

Other Accounting Policies

Stock-Based Compensation

The Company grants certain employees and directors stock-based compensation awards under various plans, subject to vesting conditions. The Company recognizes compensation expense in an amount fixed at grant date or remeasured quarterly as described in Note 19. The Company generally recognizes this expense over the vesting period. However, the Company truncates the expense period to the date the employee attained age-and-service criteria to exercise or receive payment for the award regardless of continued employment. In such a case, the Company does not accelerate award exercise or payment timing. The Company also takes an estimation of forfeitures into account.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Cash and Cash Equivalents

The Company considers highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Securities included within cash equivalents are stated at estimated fair value, while other investments included within cash equivalents are stated at amortized cost which approximates estimated fair value.

Property, Equipment, Leasehold Improvements and Computer Software

Property, equipment and leasehold improvements, which are included in other assets, are stated at cost, less accumulated depreciation and amortization. Included in property and equipment are capitalized costs related to purchased software, as well as certain internal and external costs incurred to develop internal-use computer software during the application development stage. Depreciation and amortization on property and equipment are determined using the straight-line method over the estimated useful lives of the assets, generally ranging from four to 40 years. Leasehold improvements are amortized over the shorter of the useful life or remaining lease term up to 20 years. The cost basis of the property, equipment and leasehold improvements was $7.3 billion and $6.9 billion at December 31, 2023 and 2022, respectively. Accumulated depreciation and amortization of property, equipment and leasehold improvements was $4.8 billion and $4.4 billion at December 31, 2023 and 2022, respectively. Related depreciation and amortization expense was $470 million, $423 million and $426 million for the years ended December 31, 2023, 2022 and 2021, respectively. The Company recognized leasehold improvement impairment charges of $0, $3 million, and $45 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Leases

The Company, as lessee, has entered into various lease and sublease agreements for office space and equipment. At contract inception, the Company determines that an arrangement contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. For contracts that contain a lease, the Company recognizes the ROU asset in other assets and the lease liability in other liabilities. The Company evaluates whether a ROU asset is impaired when events or changes in circumstances indicate that its carrying amount may not be recoverable. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the associated lease costs are recorded as an expense on a straight-line basis over the lease term.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are determined using the Company’s incremental borrowing rate based upon information available at commencement date to recognize the present value of lease payments over the lease term. ROU assets also include lease payments and excludes lease incentives. Lease terms may include options to extend or terminate the lease and are included in the lease measurement when it is reasonably certain that the Company will exercise that option.

The Company has lease agreements with lease and non-lease components. The Company does not separate lease and non-lease components and accounts for these items as a single lease component for all asset classes.

The majority of the Company’s leases and subleases are operating leases related to office space. The Company recognizes lease expense for operating leases on a straight-line basis over the lease term.

Other Revenues

Other revenues primarily include fees related to service contracts from customers for vision fee for service arrangements, prepaid legal plans, fee-based investment management, recordkeeping and administrative services, and administrative services-only contracts. Substantially all of the revenue from the services is recognized over time as the applicable services are provided or are made available to the customers. The revenue recognized includes variable consideration to the extent it is probable that a significant reversal will not occur. In addition to the service fees, other revenues also include certain stable value fees and other miscellaneous revenues. These fees and miscellaneous revenues are recognized as earned.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Policyholder Dividends

Policyholder dividends are approved annually by the insurance subsidiaries’ boards of directors. The aggregate amount of policyholder dividends is related to actual interest, mortality, morbidity and expense experience for the year, as well as management’s judgment as to the appropriate level of statutory surplus to be retained by the insurance subsidiaries.

Foreign Currency

Assets, liabilities and operations of foreign affiliates and subsidiaries, as well as investments accounted for under the equity method, are recorded based on the functional currency of each entity. The determination of the functional currency is made based on the appropriate economic and management indicators. For most of the Company’s foreign operations, the local currency is the functional currency. For certain other foreign operations, such as Japan, the local currency and one or more other currencies qualify as functional currencies. Assets and liabilities of foreign affiliates and subsidiaries are translated from the functional currency to U.S. dollars at the exchange rates in effect at each year-end and revenues and expenses are translated at the average exchange rates during the year. The resulting translation adjustments are charged or credited directly to OCI, net of applicable taxes. Gains and losses from foreign currency transactions, including the effect of re-measurement of monetary assets and liabilities to the appropriate functional currency, are reported as part of net investment gains (losses) in the period in which they occur.

Earnings Per Common Share

Basic earnings per common share are computed based on the weighted average number of common shares, or their equivalent, outstanding during the period. Diluted earnings per common share include the dilutive effect of the assumed exercise or issuance of stock-based awards using the treasury stock method. Under the treasury stock method, exercise or issuance of stock-based awards is assumed to occur with the proceeds used to purchase common stock at the average market price for the period. The difference between the number of shares assumed issued and number of shares assumed purchased represents the dilutive shares.

Recent Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of ASUs to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. The following tables provide a description of ASUs recently issued by the FASB and the impact of their adoption on the Company’s consolidated financial statements.

Adoption of ASU 2018-12 - Targeted Improvements to the Accounting for Long-Duration Contracts

The Company adopted LDTI effective January 1, 2023 with a Transition Date of January 1, 2021. The standard required a full retrospective transition approach for MRBs, and allowed for a transition method election for FPBs and DAC, as well as other balances that have historically been amortized in a manner consistent with DAC. The Company has elected the modified retrospective transition approach for all FPBs, DAC, and related balances on all long-duration contracts, subject to the transition provisions. Additionally, an amendment in LDTI allowed entities to make an accounting policy election to exclude certain sold or disposed contracts or legal entities from application of the transition guidance. The Company did not make such an election.

Under the modified retrospective approach, the Company was required to establish LDTI-compliant FPBs, DAC and related balances for the Company’s Transition Date opening balance sheet by utilizing the Company’s December 31, 2020 balances with certain adjustments as described below.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

The following table presents a summary of the Transition Date impacts associated with the implementation of LDTI to the consolidated balance sheet:

						Premiums, Reinsurance and Other Receivables						Deferred Policy Acquisition Costs and Value of Business Acquired						Other Assets						Future Policy Benefits						Policyholder Account Balances						Other Policy-related Balances						Market Risk Benefit Liabilities						Deferred Income Tax Liability						Retained Earnings						Accumulated Other Comprehensive Income (Loss)
						(In millions)
Balances as reported, December 31, 2020						$	17,870					$	16,389					$	11,685					$	206,656					$	205,176					$	17,101					$	—					$	11,008					$	36,491					$	18,072
Reclassification of carrying amounts of contracts and contract features that are market risk benefits and adjustment to negative VOBA as a result of the full retrospective application of MRB guidance						(59)						—						—						(1,818)						(958)						(72)						2,789						—						—						—
Adjustments for the difference between previous carrying amounts and fair value measurements for market risk benefits						(12)						—						—						—						—						—						5,112						(1,079)						(4,121)						76
Removal of related amounts in accumulated other comprehensive income						—						4,007						42						(7,911)						—						1,043						—						2,405						—						8,512
Adjustment of future policy benefits to remeasure cohorts where net premiums exceed gross premiums under the modified retrospective approach						32						—						—						719						—						—						—						(160)						(527)						—
Effect of remeasurement of future policy benefits to an upper-medium grade discount rate						351						—						—						34,119						—						—						—						(7,438)						—						(26,330)
Adjustments for the cumulative effect of adoption on additional insurance assets and liabilities						19						—						—						83						—						—						—						(13)						(42)						(9)
Other balance sheet reclassifications and adjustments upon adoption of the LDTI standard						(32)						21						15						(7,490)						7,519						(40)						—						—						23						(6)
Balances as adjusted, January 1, 2021						$	18,169					$	20,417					$	11,742					$	224,358					$	211,737					$	18,032					$	7,901					$	4,723					$	31,824					$	315

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

The Transition Date impacts associated with the implementation of LDTI were applied as follows:

Market Risk Benefits (See Note 6)

The full retrospective transition approach for MRBs required assessing products to determine whether contract or contract features expose the Company to other than nominal capital market risk. The population of MRBs identified was then reviewed to determine the historical measurement model prior to adoption of LDTI. If the MRB was a bifurcated embedded derivative prior to the adoption of LDTI, the existing measurement approach was retained, except that the fair value of the MRB at inception was recalculated to isolate the contract issue date nonperformance risk of the Company.

If, prior to the adoption of LDTI, the MRB was partially a bifurcated embedded derivative (e.g., a contract with multiple features where one was a bifurcated embedded derivative and one was an additional insurance liability), or was accounted for under a different model, the at-inception attributed fee ratio was calculated for every identified MRB, and using the at inception attributed fee ratio, the fair value of the MRB at the contract issue date was calculated to isolate the contract issue date nonperformance risk of the Company.

At the Transition Date, the impacts to the financial statements of the full retrospective approach for MRBs include the following:

• The amounts previously recorded for these contracts within additional insurance liabilities, embedded derivatives, and other insurance liabilities were reclassified to MRB liabilities and negative VOBA was adjusted as a result of the full retrospective application of MRB guidance;

• The difference between the fair value of the MRBs and the previously recorded carrying value at the Transition Date, excluding the cumulative effect of changes in nonperformance risk of the Company, was recorded as an adjustment to the opening balance of retained earnings;

• The cumulative effect of changes in nonperformance risk between the contract issue date and the Transition Date was recorded as an adjustment to opening AOCI as of the Transition Date; and

• Corresponding reinsured MRB balances were established at the Transition Date, with changes in counterparty credit risk recorded in opening retained earnings as of the Transition Date and are classified within premiums, reinsurance and other receivables.

Future Policy Benefits (See Note 4)

Traditional Non-participating Long-duration products

• Loss recognition balances related to unrealized investment gains associated with certain long-duration products previously recorded in AOCI were removed;

• Contracts in-force as of the Transition Date were grouped into cohorts; a revised NPR was calculated for each cohort using the existing Transition Date balance, best estimate cash flow assumptions without a provision for adverse deviation, and the historical discount rates used for the contracts within the cohort prior to the adoption of LDTI (the “locked-in” discount rate). For any cohorts where the net premiums exceeded gross premiums (NPR exceeded 100%), the FPB was increased for the excess of net premiums over gross premiums, with a corresponding adjustment recorded to opening retained earnings as of the Transition Date;

• The difference between the FPB balance calculated at the current upper-medium grade discount rate and the FPB balance calculated at the locked-in discount rate was recorded as an adjustment to opening AOCI as of the Transition Date; and

• Corresponding adjustments were made to ceded reinsurance balances.

Limited-payment Long-duration products

Limited-payment long-duration products transition to LDTI follows a similar approach to traditional non-participating products, except that these product cohorts may have a DPL which is adjusted at the Transition Date. If an increase to FPB depleted the DPL, the remaining adjustment was recorded to opening retained earnings as of the Transition Date.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Additional insurance liabilities

• The contracts and contract features that met the definition of a MRB were reclassified;

• The impact of updating assessments used in the calculation of the additional insurance liabilities to reflect the constant margin amortization basis for UREV liabilities was recorded as an adjustment to opening retained earnings and AOCI; and

• Corresponding adjustments were made to ceded reinsurance balances.

DAC and other balances to be amortized in a manner consistent with DAC (VOBA, DSI and UREV) (See Note 8 for information on DAC, VOBA and UREV)

The opening balances of these accounts were adjusted for removal of the related amounts in AOCI, as these balances are no longer amortized using expected future gross premiums, margins, profits or earned premiums.

Other balance sheet reclassifications and adjustments at LDTI adoption (See Notes 4,5 and 8)

Individual income annuities reclassification

Prior to the Transition Date, the Company classified all structured settlement and institutional income annuity products within FPBs. While the pre-LDTI GAAP reserving model was the same for these products, upon transition to LDTI, the reserving model for a subset of these products changed, requiring the Company to reclassify $7.4 billion of FPBs to PABs at the Transition Date.

Other reclassifications and adjustments

Other minor reclassifications and adjustments were made to conform to LDTI presentation requirements.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

The following table presents the effects of the retrospective application of the adoption of the new LDTI accounting guidance to the Company’s previously reported consolidated balance sheet:

						December 31, 2022
						As Previously Reported						Adoption Adjustment						Post Adoption
						(In millions)
Assets
Premiums, reinsurance and other receivables						$	17,461					$	(97)					$	17,364
Market risk benefits						$	—					$	280					$	280
Deferred policy acquisition costs and value of business acquired						$	22,983					$	(3,330)					$	19,653
Deferred income tax asset						$	2,830					$	(391)					$	2,439
Other assets						$	11,026					$	(1)					$	11,025
Total assets						$	666,611					$	(3,539)					$	663,072
Liabilities
Future policy benefits						$	204,228					$	(17,006)					$	187,222
Policyholder account balances						$	203,082					$	7,515					$	210,597
Market risk benefits						$	—					$	3,763					$	3,763
Other policy-related balances						$	19,651					$	(1,227)					$	18,424
Deferred income tax liability						$	325					$	625					$	950
Other liabilities						$	25,980					$	(47)					$	25,933
Total liabilities						$	639,324					$	(6,377)					$	632,947
Equity
Retained earnings						$	41,953					$	(1,621)					$	40,332
Accumulated other comprehensive income (loss)						$	(27,083)					$	4,462					$	(22,621)
Total MetLife, Inc.'s stockholders' equity						$	27,040					$	2,841					$	29,881
Noncontrolling interests						$	247					$	(3)					$	244
Total equity						$	27,287					$	2,838					$	30,125
Total liabilities and equity						$	666,611					$	(3,539)					$	663,072

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

The following table presents the effects of the retrospective application of the adoption of the new LDTI accounting guidance to the Company’s previously reported consolidated statement of operations:

						December 31,
						2022																		2021
						As Previously Reported						Adoption Adjustment						Post Adoption						As Previously Reported						Adoption Adjustment						Post Adoption
						(In millions)
Revenues
Premiums						$	49,397					$	(887)					$	48,510					$	42,009					$	(857)					$	41,152
Universal life and investment-type product policy fees						$	5,585					$	(360)					$	5,225					$	5,756					$	(512)					$	5,244
Other revenues						$	2,634					$	(4)					$	2,630					$	2,619					$	—					$	2,619
Net investment gains (losses)						$	(1,262)					$	2					$	(1,260)					$	1,529					$	14					$	1,543
Net derivative gains (losses)						$	(2,372)					$	121					$	(2,251)					$	(2,228)					$	(1,029)					$	(3,257)
Total revenues						$	69,898					$	(1,128)					$	68,770					$	71,080					$	(2,384)					$	68,696
Expenses
Policyholder benefits and claims						$	50,612					$	(1,105)					$	49,507					$	43,954					$	(836)					$	43,118
Policyholder liability remeasurement (gains) losses						$	—					$	114					$	114					$	—					$	(172)					$	(172)
Market risk benefit remeasurement (gains) losses						$	—					$	(3,674)					$	(3,674)					$	—					$	(1,237)					$	(1,237)
Interest credited to policyholder account balances						$	3,692					$	202					$	3,894					$	5,538					$	33					$	5,571
Policyholder dividends						$	701					$	5					$	706					$	876					$	4					$	880
Other expenses						$	12,034					$	(175)					$	11,859					$	12,586					$	(568)					$	12,018
Total expenses						$	67,039					$	(4,633)					$	62,406					$	62,954					$	(2,776)					$	60,178
Income (loss) before provision for income tax						$	2,859					$	3,505					$	6,364					$	8,126					$	392					$	8,518
Provision for income tax expense (benefit)						$	301					$	761					$	1,062					$	1,551					$	91					$	1,642
Net income (loss)						$	2,558					$	2,744					$	5,302					$	6,575					$	301					$	6,876
Net income (loss) attributable to noncontrolling interests						$	19					$	(1)					$	18					$	21					$	—					$	21
Net income (loss) attributable to MetLife, Inc.						$	2,539					$	2,745					$	5,284					$	6,554					$	301					$	6,855
Net income (loss) available to MetLife, Inc.'s common shareholders						$	2,354					$	2,745					$	5,099					$	6,353					$	301					$	6,654
Net income (loss) available to MetLife, Inc.'s common shareholders per common share:
Basic						$	2.93					$	3.42					$	6.35					$	7.36					$	0.35					$	7.71
Diluted						$	2.91					$	3.39					$	6.30					$	7.31					$	0.34					$	7.65

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

The following table presents the effects of the retrospective application of the adoption of the new LDTI accounting guidance to the Company’s previously reported consolidated statements of comprehensive income:

			December 31,
						2022																		2021
						As Previously Reported						Adoption Adjustment						Post Adoption						As Previously Reported						Adoption Adjustment						Post Adoption
			(In millions)
Net income (loss)						$	2,558					$	2,744					$	5,302					$	6,575					$	301					$	6,876
Unrealized investment gains (losses), net of related offsets						$	(47,831)					$	(8,666)					$	(56,497)					$	(8,171)					$	(4,669)					$	(12,840)
Future policy benefits discount rate remeasurement gains (losses)						$	—					$	31,804					$	31,804					$	—					$	10,102					$	10,102
Market risk benefits instrument-specific credit risk remeasurement gains (losses)						$	—					$	(219)					$	(219)					$	—					$	257					$	257
Foreign currency translation adjustments						$	(1,242)					$	4					$	(1,238)					$	(1,306)					$	40					$	(1,266)
Other comprehensive income (loss), before income tax						$	(48,879)					$	22,923					$	(25,956)					$	(9,012)					$	5,730					$	(3,282)
Income tax (expense) benefit related to items of other comprehensive income (loss)						$	10,871					$	(5,092)					$	5,779					$	1,862					$	(1,343)					$	519
Other comprehensive income (loss), net of income tax						$	(38,008)					$	17,831					$	(20,177)					$	(7,150)					$	4,387					$	(2,763)
Comprehensive income (loss)						$	(35,450)					$	20,575					$	(14,875)					$	(575)					$	4,688					$	4,113
Less: Comprehensive income (loss) attributable to noncontrolling interest, net of income tax						$	13					$	(2)					$	11					$	24					$	—					$	24
Comprehensive income (loss) attributable to MetLife, Inc.						$	(35,463)					$	20,577					$	(14,886)					$	(599)					$	4,688					$	4,089

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

The following table presents the effects of the retrospective application of the adoption of the new LDTI accounting guidance to the Company’s previously reported consolidated statements of equity:

																								As Previously Reported						Adoption Adjustment						Post Adoption
																								(In millions)
Retained Earnings
Balance at December 31, 2020																								$	36,491					$	—					$	36,491
Cumulative effects of changes in accounting principles, net of income tax																								$	—					$	(4,667)					$	(4,667)
Net income (loss)																								$	6,554					$	301					$	6,855
Balance at December 31, 2021																								$	41,197					$	(4,366)					$	36,831
Net income (loss)																								$	2,539					$	2,745					$	5,284
Balance at December 31, 2022																								$	41,953					$	(1,621)					$	40,332
Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2020																								$	18,072					$	—					$	18,072
Cumulative effects of changes in accounting principles, net of income tax																								$	—					$	(17,757)					$	(17,757)
Other comprehensive income (loss), net of income tax																								$	(7,153)					$	4,387					$	(2,766)
Balance at December 31, 2021																								$	10,919					$	(13,370)					$	(2,451)
Other comprehensive income (loss), net of income tax																								$	(38,002)					$	17,832					$	(20,170)
Balance at December 31, 2022																								$	(27,083)					$	4,462					$	(22,621)
Total MetLife, Inc.’s Stockholders’ Equity
Balance at December 31, 2020																								$	74,558					$	—					$	74,558
Cumulative effects of changes in accounting principles, net of income tax																								$	—					$	(22,424)					$	(22,424)
Net income (loss)																								$	6,554					$	301					$	6,855
Other comprehensive income (loss), net of income tax																								$	(7,153)					$	4,387					$	(2,766)
Balance at December 31, 2021																								$	67,482					$	(17,736)					$	49,746
Net income (loss)																								$	2,539					$	2,745					$	5,284
Other comprehensive income (loss), net of income tax																								$	(38,002)					$	17,832					$	(20,170)
Balance at December 31, 2022																								$	27,040					$	2,841					$	29,881
Noncontrolling Interests
Balance at December 31, 2021																								$	267					$	—					$	267
Change in equity of noncontrolling interests																								$	(33)					$	(1)					$	(34)
Net income (loss)																								$	19					$	(1)					$	18
Other comprehensive income (loss), net of income tax																								$	(6)					$	(1)					$	(7)
Balance at December 31, 2022																								$	247					$	(3)					$	244
Total Equity
Balance at December 31, 2020																								$	74,817					$	—					$	74,817
Cumulative effects of changes in accounting principles, net of income tax																								$	—					$	(22,424)					$	(22,424)
Net income (loss)																								$	6,575					$	301					$	6,876
Other comprehensive income (loss), net of income tax																								$	(7,150)					$	4,387					$	(2,763)
Balance at December 31, 2021																								$	67,749					$	(17,736)					$	50,013
Change in equity of noncontrolling interests																								$	(33)					$	(1)					$	(34)
Net income (loss)																								$	2,558					$	2,744					$	5,302
Other comprehensive income (loss), net of income tax																								$	(38,008)					$	17,831					$	(20,177)
Balance at December 31, 2022																								$	27,287					$	2,838					$	30,125

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

The following table presents the effects of the retrospective application of the adoption of the new LDTI accounting guidance to the Company’s previously reported consolidated statements of cash flows:

			December 31,
						2022																		2021
						As Previously Reported						Adoption Adjustment						Post Adoption						As Previously Reported						Adoption Adjustment						Post Adoption
			(In millions)
Cash flows from operating activities
Net income (loss)						$	2,558					$	2,744					$	5,302					$	6,575					$	301					$	6,876
Amortization of premiums and accretion of discounts associated with investments, net						$	(960)					$	(32)					$	(992)					$	(855)					$	(19)					$	(874)
(Gains) losses on investments and from sales of businesses, net						$	1,262					$	(2)					$	1,260					$	(1,529)					$	(14)					$	(1,543)
(Gains) losses on derivatives, net						$	4,317					$	(167)					$	4,150					$	4,190					$	486					$	4,676
Interest credited to policyholder account balances						$	3,737					$	34					$	3,771					$	5,490					$	138					$	5,628
Universal life and investment-type product policy fees						$	(3,970)					$	1					$	(3,969)					$	(3,638)					$	(25)					$	(3,663)
Change in premiums, reinsurance and other receivables						$	256					$	43					$	299					$	389					$	(27)					$	362
Change in market risk benefits						$	—					$	(3,347)					$	(3,347)					$	—					$	(839)					$	(839)
Change in deferred policy acquisition costs and value of business acquired, net						$	(568)					$	(232)					$	(800)					$	(106)					$	(602)					$	(708)
Change in income tax						$	(591)					$	789					$	198					$	598					$	258					$	856
Change in other assets						$	27					$	111					$	138					$	(681)					$	(327)					$	(1,008)
Change in insurance-related liabilities and policy-related balances						$	4,058					$	(121)					$	3,937					$	4,553					$	449					$	5,002
Change in other liabilities						$	341					$	19					$	360					$	71					$	(3)					$	68
Other, net						$	245					$	—					$	245					$	138					$	(25)					$	113
Net cash provided by (used in) operating activities						$	13,204					$	(160)					$	13,044					$	12,596					$	(249)					$	12,347
Cash flows from financing activities
Policyholder account balances - deposits						$	103,036					$	865					$	103,901					$	96,367					$	839					$	97,206
Policyholder account balances - withdrawals						$	(97,886)					$	(705)					$	(98,591)					$	(92,540)					$	(590)					$	(93,130)
Net cash provided by (used in) financing activities						$	(10,108)					$	160					$	(9,948)					$	(1,375)					$	249					$	(1,126)

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Other Adopted Accounting Pronouncements

The table below describes the impacts of the other ASUs adopted by the Company.

Standard			Description			Effective Date and Method of Adoption			Impact on Financial Statements
ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures			The amendments in the new ASU eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit loss guidance while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the amendments require that a public business entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases.			January 1, 2023, the Company adopted, using a prospective approach.			The new guidance has reduced the complexity involved with evaluating and accounting for certain loan modifications. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements, other than expanded disclosures in Note 11.
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting; as clarified and amended by ASU 2021-01, Reference Rate Reform (Topic 848): Scope; as amended by ASU 2022-06, Reference Rate Reform (Topic 848)—Deferral of the Sunset Date of Topic 848			The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, with certain exceptions. ASU 2021-01 amends the scope of the recent reference rate reform guidance. New optional expedients allow derivative instruments impacted by changes in the interest rate used for margining, discounting, or contract price alignment to qualify for certain optional relief. The amendments in ASU 2022-06 extend the sunset date of the reference rate reform optional expedients and exceptions to December 31, 2024.			Effective for contract modifications made between March 12, 2020 and December 31, 2024.			The guidance has reduced the operational and financial impacts of contract modifications that replace a reference rate, such as London Interbank Offered Rate (“LIBOR”), affected by reference rate reform. Contract modifications to replace reference rates affected by the reform occurred during 2021, 2022 and 2023. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Future Adoption of Accounting Pronouncements

ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company’s consolidated financial statements or disclosures. ASUs issued but not yet adopted as of December 31, 2023 that are currently being assessed and may or may not have a material impact on the Company’s consolidated financial statements or disclosures are summarized in the table below.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Standard			Description			Effective Date and Method of Adoption			Impact on Financial Statements
ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures			Among other things, the amendments in this update require that public business entities, on an annual basis: (i) disclose specific categories in the rate reconciliation and (ii) provide additional information for reconciling items that meet a quantitative threshold. In addition, the amendments in this update require that all entities disclose on an annual basis the following information about income taxes paid: (i) the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes and (ii) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received).			Effective for annual periods beginning January 1, 2025, to be applied prospectively with an option for retrospective application (with early adoption permitted).			The Company is evaluating the impact of the guidance on its consolidated financial statements.
ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures			The amendments in the ASU are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The key amendments include: (i) disclosures on significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss on an annual and interim basis; (ii) disclosures on an amount for other segment items by reportable segment and a description of its composition on an annual and interim basis. The other segment items category is the difference between segment revenue less the significant expenses disclosed and each reported measure of segment profit or loss; (iii) providing all annual disclosures on a reportable segment’s profit or loss and assets currently required by FASB ASC Topic 280, Segment Reporting in interim periods; and (iv) specifying the title and position of the CODM.			Effective for annual periods beginning January 1, 2024 and interim periods beginning January 1, 2025, to be applied on a retrospective basis unless it is impracticable (with early adoption permitted).			The Company is evaluating the impact of the guidance on its annual disclosures to be included in its 2024 consolidated financial statements and interim condensed consolidated financial statements to be issued thereafter.
ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method			The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. In addition, disclosures describing the nature of the investments and related income tax credits and benefits will be required.			January 1, 2024, to be applied on either a modified retrospective or a retrospective basis subject to certain exceptions (with early adoption permitted).			Effective January 1, 2024, the Company will elect to account for its tax equity investments using the proportional amortization method if certain criteria are met. The adoption of the proportional amortization method will be applied on a modified retrospective basis and the Company estimates that the January 1, 2024 transition date impact from adoption will result in a decrease to total equity not to exceed $250 million, net of income tax.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

2. Segment Information

In the fourth quarter of 2023, MetLife reorganized from five segments into the following six segments to reflect changes in management’s responsibilities: Group Benefits, RIS, Asia, Latin America, EMEA and MetLife Holdings. The Group Benefits and RIS businesses were previously reported as the U.S. segment. These changes were applied retrospectively and did not have an impact on prior period total consolidated net income (loss) or adjusted earnings. In addition, the Company continues to report certain of its results of operations in Corporate & Other.

Group Benefits

The Group Benefits segment, based in the U.S., offers a broad range of products to corporations and their respective employees, other institutions and their respective members, as well as individuals. These products include term, variable and universal life insurance, dental, group and individual disability, vision and accident & health insurance.

RIS

The RIS segment, based in the U.S., offers a broad range of life and annuity-based insurance and investment products to corporations and their respective employees, other institutions and their respective members, as well as individuals. These products include stable value and pension risk transfer products, institutional income annuities, structured settlements, longevity reinsurance solutions, benefit funding solutions and capital markets investment products.

Asia

The Asia segment offers a broad range of products and services to both individuals and corporations, as well as to other institutions, and their respective employees, which include life insurance, accident & health insurance and retirement and savings.

Latin America

The Latin America segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respective employees, which include life insurance, retirement and savings, accident & health insurance and credit insurance.

EMEA

The EMEA segment offers products to individuals, corporations, other institutions, and their respective employees, which include life insurance, retirement and savings, accident & health insurance and credit insurance.

MetLife Holdings

The MetLife Holdings segment consists of operations relating to products and businesses that the Company no longer actively markets in the United States. These include variable, universal, term and whole life insurance, variable, fixed and index-linked annuities and long-term care insurance. It also includes an in-force block of assumed variable annuity guarantees from a third party.

Corporate & Other

Corporate & Other contains various start-up, developing and run-off businesses. Also included in Corporate & Other are: the excess capital, as well as certain charges and activities, not allocated to the segments (including external integration and disposition costs, internal resource costs for associates committed to acquisitions and dispositions and enterprise-wide strategic initiatives), interest expense related to the majority of the Company’s outstanding debt, expenses associated with certain legal proceedings and income tax audit issues, the elimination of intersegment amounts (which generally relate to investment expenses and intersegment loans bearing interest rates commensurate with related borrowings), and the Company’s investment management business (through which the Company provides public fixed income, private capital and real estate investment solutions to institutional investors worldwide).

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

2. Segment Information (continued)

Financial Measures and Segment Accounting Policies

Adjusted earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is also the Company’s GAAP measure of segment performance and is reported below. Adjusted earnings should not be viewed as a substitute for net income (loss). The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business.

The adoption of LDTI impacted the Company’s calculation of adjusted earnings. With the adoption of LDTI, the measurement model was simplified for DAC and VOBA, and most embedded derivatives were reclassified as MRBs. As a result, the Company updated its calculation of adjusted earnings to remove certain adjustments related to the amortization of DAC, VOBA and related intangibles and adjusted for changes in measurement of certain guarantees. Under LDTI, adjusted earnings excludes changes in fair value associated with MRBs, changes in discount rates on certain annuitization guarantees, losses at contract inception for certain single premium business, and asymmetrical accounting associated with in-force reinsurance. All periods presented herein reflect the updated calculation of adjusted earnings.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax.

These financial measures focus on the Company’s primary businesses principally by excluding the impact of (i) market volatility which could distort trends, (ii) asymmetrical and non-economic accounting, and (iii) revenues and costs related to divested businesses, non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP.

Market volatility can have a significant impact on the Company’s financial results. Adjusted earnings excludes net investment gains (losses), net derivative gains (losses), MRB remeasurement gains (losses) and goodwill impairments. Further, policyholder benefits and claims exclude (i) changes in the discount rate on certain annuitization guarantees accounted for as additional liabilities and (ii) market value adjustments.

Asymmetrical and non-economic accounting adjustments are made to the line items indicated in calculating adjusted earnings:

• Net investment income includes earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment.

• Other revenues include settlements of foreign currency earnings hedges and exclude asymmetrical accounting associated with in-force reinsurance.

• Policyholder benefits and claims excludes (i) amortization of basis adjustments associated with de-designated fair value hedges of future policy benefits, (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments, (iii) asymmetrical accounting associated with in-force reinsurance, and (iv) non-economic losses incurred at contract inception for certain single premium annuity business. These losses are amortized into adjusted earnings within policyholder benefits and claims over the estimated lives of the contracts.

• Interest credited to PABs excludes amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass-through adjustments and asymmetrical accounting associated with in-force reinsurance.

Divested businesses are those that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP. Divested businesses also include the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP.

Other adjustments are made to the line items indicated in calculating adjusted earnings:

• Net investment income and interest credited to PABs excludes certain amounts related to contractholder-directed equity securities.

• Other revenues include fee revenue on synthetic guaranteed interest contracts (“GICs”) accounted for as freestanding derivatives.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

2. Segment Information (continued)

• Other revenues exclude and other expenses include fees received in connection with services provided under transition service agreements.

• Other expenses exclude (i) implementation of new insurance regulatory requirements and other costs, and (ii) acquisition, integration and other related costs. Other expenses include (i) deductions for net income attributable to noncontrolling interests, and (ii) benefits accrued on synthetic GICs accounted for as freestanding derivatives.

Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’s effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the years ended December 31, 2023, 2022 and 2021 and at December 31, 2023 and 2022. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for adjusted earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in the Company’s business.

The Company’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types. The Company’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards. The adoption of LDTI resulted in changes to the economic capital model. The changes related to this adoption do not represent a change in the composition of the segments and, in accordance with GAAP guidance for segment reporting, the Company will apply the changes to the economic capital model prospectively and did not update the economic model for 2022 and 2021.

Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, net income (loss) or adjusted earnings.

Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. With the adoption of LDTI, net investment income was reallocated for certain segments to reflect the impact of the change to certain liability balances, with no impact to consolidated net investment income. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company’s product pricing.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

2. Segment Information (continued)

Year Ended December 31, 2023						Group Benefits						RIS						Asia						Latin America						EMEA						MetLife Holdings						Corporate & Other						Total						Adjustments						Total Consolidated
			(In millions)
Revenues
Premiums						$	21,558					$	8,248					$	5,251					$	4,287					$	2,016					$	2,881					$	42					$	44,283					$	—					$	44,283
Universal life and investment-type product policy fees						878						313						1,632						1,398						298						632						1						5,152						—						5,152
Net investment income (1)						1,301						7,803						3,957						1,644						197						4,494						353						19,749						159						19,908
Other revenues						1,493						271						86						42						32						195						412						2,531						(5)						2,526
Net investment gains (losses)						—						—						—						—						—						—						—						—						(2,824)						(2,824)
Net derivative gains (losses)						—						—						—						—						—						—						—						—						(2,140)						(2,140)
Total revenues						25,230						16,635						10,926						7,371						2,543						8,202						808						71,715						(4,810)						66,905
Expenses
Policyholder benefits and claims and policyholder dividends						19,164						11,269						4,333						4,094						984						5,350						23						45,217						(5)						45,212
Policyholder liability remeasurement (gains) losses						(28)						(131)						105						(25)						(3)						37						—						(45)						—						(45)
Market risk benefit remeasurement (gains) losses						—						—						—						—						—						—						—						—						(994)						(994)
Interest credited to policyholder account balances						193						2,887						2,301						426						72						730						—						6,609						1,251						7,860
Capitalization of DAC						(20)						(176)						(1,583)						(651)						(457)						(22)						(8)						(2,917)						—						(2,917)
Amortization of DAC and VOBA						26						49						794						468						348						258						9						1,952						—						1,952
Amortization of negative VOBA						—						—						(22)						—						(4)						—						—						(26)						—						(26)
Interest expense on debt						2						14						—						11						—						13						1,005						1,045						—						1,045
Other expenses						3,796						565						3,158						1,911						1,260						927						946						12,563						93						12,656
Total expenses						23,133						14,477						9,086						6,234						2,200						7,293						1,975						64,398						345						64,743
Provision for income tax expense (benefit)						442						450						558						297						78						176						(407)						1,594						(1,034)						560
Adjusted earnings						$	1,655					$	1,708					$	1,282					$	840					$	265					$	733					$	(760)					5,723
Adjustments to:
Total revenues																																																(4,810)
Total expenses																																																(345)
Provision for income tax (expense) benefit																																																1,034
Net income (loss)																																																$	1,602											$	1,602

At December 31, 2023						Group Benefits						RIS						Asia						Latin America						EMEA						MetLife Holdings						Corporate & Other						Total
						(In millions)
Total assets (1),(2)						$	36,715					$	218,587					$	157,206					$	69,177					$	18,596					$	148,524					$	38,779					$	687,584
Separate account assets						$	1,159					$	53,093					$	9,187					$	41,320					$	4,327					$	35,548					$	—					$	144,634
Separate account liabilities						$	1,159					$	53,093					$	9,187					$	41,320					$	4,327					$	35,548					$	—					$	144,634

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(1)Net investment income from equity method invested assets represents 0%, 1%, 4%, 1% and 2% of segment net investment income, and equity method invested assets represent 1%, 3%, 6%, 0% and 4% of segment total assets for the Group Benefits, RIS, Asia, Latin America and MetLife Holdings segments, respectively.

(2)Asia segment total assets includes $132.2 billion of assets from the Company’s Japan operations which represents 19% of Company total assets.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

2. Segment Information (continued)

Year Ended December 31, 2022						Group Benefits						RIS						Asia						Latin America						EMEA						MetLife Holdings						Corporate & Other						Total						Adjustments						Total Consolidated
						(In millions)
Revenues
Premiums						$	21,051					$	13,619					$	5,563					$	3,224					$	1,962					$	3,066					$	(16)					$	48,469					$	41					$	48,510
Universal life and investment-type product policy fees						855						303						1,693						1,175						284						902						2						5,214						11						5,225
Net investment income (1)						1,136						6,204						3,909						1,593						160						4,914						273						18,189						(2,273)						15,916
Other revenues						1,360						392						90						39						35						155						396						2,467						163						2,630
Net investment gains (losses)						—						—						—						—						—						—						—						—						(1,260)						(1,260)
Net derivative gains (losses)						—						—						—						—						—						—						—						—						(2,251)						(2,251)
Total revenues						24,402						20,518						11,255						6,031						2,441						9,037						655						74,339						(5,569)						68,770
Expenses
Policyholder benefits and claims and policyholder dividends						19,076						16,163						4,564						3,320						976						5,636						(6)						49,729						484						50,213
Policyholder liability remeasurement (gains) losses						7						(36)						69						(21)						(6)						101						—						114						—						114
Market risk benefit remeasurement (gains) losses						—						—						—						—						—						—						—						—						(3,674)						(3,674)
Interest credited to policyholder account balances						143						1,914						2,003						335						71						813						—						5,279						(1,385)						3,894
Capitalization of DAC						(18)						(113)						(1,530)						(494)						(411)						(29)						(8)						(2,603)						(11)						(2,614)
Amortization of DAC and VOBA						26						40						745						410						323						270						9						1,823						8						1,831
Amortization of negative VOBA						—						—						(24)						—						(5)						—						—						(29)						—						(29)
Interest expense on debt						1						8						—						12						—						8						909						938						—						938
Other expenses						3,478						484						3,153						1,520						1,171						953						709						11,468						265						11,733
Total expenses						22,713						18,460						8,980						5,082						2,119						7,752						1,613						66,719						(4,313)						62,406
Provision for income tax expense (benefit)						357						423						658						220						73						254						(343)						1,642						(580)						1,062
Adjusted earnings						$	1,332					$	1,635					$	1,617					$	729					$	249					$	1,031					$	(615)					5,978
Adjustments to:
Total revenues																																																(5,569)
Total expenses																																																4,313
Provision for income tax (expense) benefit																																																580
Net income (loss)																																																$	5,302											$	5,302

At December 31, 2022						Group Benefits						RIS						Asia						Latin America						EMEA						MetLife Holdings						Corporate & Other						Total
						(In millions)
Total assets (2)						$	35,849					$	216,370					$	148,305					$	63,687					$	16,860					$	148,749					$	33,252					$	663,072
Separate account assets						$	990					$	60,040					$	8,292					$	39,428					$	3,314					$	33,974					$	—					$	146,038
Separate account liabilities						$	990					$	60,040					$	8,292					$	39,428					$	3,314					$	33,974					$	—					$	146,038

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(1)Net investment income from equity method invested assets represents 1%, 6%, 12%, 3% and 6% of segment net investment income for the Group Benefits, RIS, Asia, Latin America and MetLife Holdings segments, respectively.

(2)Asia segment total assets includes $125.1 billion of assets from the Company’s Japan operations which represents 19% of Company total assets.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

2. Segment Information (continued)

Year Ended December 31, 2021						Group Benefits						RIS						Asia						Latin America						EMEA						MetLife Holdings						Corporate & Other						Total						Adjustments						Total Consolidated
						(In millions)
Revenues
Premiums						$	20,475					$	5,023					$	6,421					$	2,609					$	2,274					$	3,333					$	35					$	40,170					$	982					$	41,152
Universal life and investment-type product policy fees						829						311						1,626						1,140						387						923						2						5,218						26						5,244
Net investment income (1)						1,160						6,888						5,052						1,271						215						6,385						309						21,280						115						21,395
Other revenues						1,239						299						73						41						47						257						420						2,376						243						2,619
Net investment gains (losses)						—						—						—						—						—						—						—						—						1,543						1,543
Net derivative gains (losses)						—						—						—						—						—						—						—						—						(3,257)						(3,257)
Total revenues						23,703						12,521						13,172						5,061						2,923						10,898						766						69,044						(348)						68,696
Expenses
Policyholder benefits and claims and policyholder dividends						19,807						7,330						5,251						3,155						1,196						6,118						34						42,891						1,107						43,998
Policyholder liability remeasurement (gains) losses						(5)						(31)						(152)						(33)						32						16						—						(173)						1						(172)
Market risk benefit remeasurement (gains) losses						—						—						—						—						—						—						—						—						(1,237)						(1,237)
Interest credited to policyholder account balances						127						1,550						1,994						249						86						840						—						4,846						725						5,571
Capitalization of DAC						(19)						(95)						(1,601)						(406)						(469)						(31)						(11)						(2,632)						(119)						(2,751)
Amortization of DAC and VOBA						26						37						786						372						361						320						9						1,911						126						2,037
Amortization of negative VOBA						—						—						(28)						—						(7)						—						—						(35)						—						(35)
Interest expense on debt						1						6						—						5						—						5						902						919						1						920
Other expenses						3,177						455						3,388						1,385						1,324						992						562						11,283						564						11,847
Total expenses						23,114						9,252						9,638						4,727						2,523						8,260						1,496						59,010						1,168						60,178
Provision for income tax expense (benefit)						126						678						1,017						60						94						535						(574)						1,936						(294)						1,642
Adjusted earnings						$	463					$	2,591					$	2,517					$	274					$	306					$	2,103					$	(156)					8,098
Adjustments to:
Total revenues																																																(348)
Total expenses																																																(1,168)
Provision for income tax (expense) benefit																																																294
Net income (loss)																																																$	6,876											$	6,876

---

(1)Net investment income from equity method invested assets represents 5%, 26%, 30%, 7% and 26% of segment net investment income for the Group Benefits, RIS, Asia, Latin America and MetLife Holdings segments, respectively.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

2. Segment Information (continued)

The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other:

			Years Ended December 31,
			2023						2022						2021
			(In millions)
Life insurance			$	22,111					$	21,728					$	22,742
Accident & health insurance			18,014						17,441						17,367
Annuities			10,193						15,657						6,394
Other			1,643						1,539						2,512
Total			$	51,961					$	56,365					$	49,015

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,
			2023						2022						2021
			(In millions)
U.S.			$	36,869					$	42,250					$	34,191
Japan			5,020						5,460						6,183
Other			10,072						8,655						8,641
Total			$	51,961					$	56,365					$	49,015

Revenues derived from one RIS customer were $8.1 billion for the year ended December 31, 2022, which represented 14% of consolidated premiums, universal life and investment-type product policy fees and other revenues. The revenue was from a single premium received for a pension risk transfer. Revenues derived from any single 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, 2023 or 2021.

3. Dispositions

Pending Disposition of MetLife Malaysia

In October 2023, the Company entered into an agreement to sell its ownership interests in AmMetLife Insurance Berhad (Malaysia) and AmMetLife Takaful Berhad (Malaysia) (collectively, “MetLife Malaysia”), each an operating joint venture accounted for under the equity method and recorded to other invested assets. In connection with the anticipated disposal, an expected impairment loss of $136 million, net of income tax, was recorded for the year ended December 31, 2023, and is reflected in net investment gains (losses). MetLife Malaysia’s results are reported in the Asia segment’s adjusted earnings. The transaction is expected to close in 2024 and is subject to regulatory approvals and satisfaction of other closing conditions.

Disposition of MetLife Seguros S.A.

In September 2021, the Company sold its wholly-owned Argentinian subsidiary, MetLife Seguros S.A. (“MetLife Seguros”). In connection with the sale, a loss of $205 million, net of income tax, was recorded for the year ended December 31, 2021, which is reflected in net investment gains (losses). MetLife Seguros results of operations are reported in the Latin America segment adjusted earnings through the date of sale.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

3. Dispositions (continued)

Disposition of MetLife Poland and Greece

In July 2021, the Company entered into definitive agreements to sell its wholly-owned subsidiaries in Poland and Greece (collectively, “MetLife Poland and Greece”) to NN Group N.V. for $738 million in total consideration, including a pre-closing dividend of $43 million. In January 2022 and April 2022, the Company completed the sales of its wholly-owned subsidiaries in Greece and Poland, respectively. In connection with the sales, a loss of $25 million, net of income tax, was recorded for the year ended December 31, 2022, which was reflected in net investment gains (losses) and resulted in a total loss on the sales of $239 million, net of income tax. MetLife Poland and Greece results of operations are reported in the EMEA segment adjusted earnings through June 30, 2021. See Note 2 for information on accounting for divested business.

MetLife Poland and Greece income (loss) before provision for income tax as reflected in the consolidated statements of operations was $19 million and $50 million for the years ended December 31, 2022 and 2021, respectively.

Disposition of Metropolitan Property and Casualty Insurance Company

In December 2020, the Company entered into a definitive agreement to sell its wholly-owned subsidiary, Metropolitan Property and Casualty Insurance Company and certain of its wholly-owned subsidiaries (collectively, “MetLife P&C”) to Farmers Group, Inc. for $3.9 billion. In addition, the Company and the Farmers Exchanges have established a 10-year strategic partnership through which the Farmers Insurance Group will offer its personal line products on MetLife’s Group Benefits platform which commenced when the transaction closed. In April 2021, the Company completed the sale of MetLife P&C. As a result of the sale, the Company recognized a gain of $1.4 billion ($1.0 billion, net of income tax) in net investment gains (losses) for the year ended December 31, 2021, which includes customary purchase price adjustments recorded after the date of sale.

MetLife P&C income (loss) before provision for income tax as reflected in the consolidated statement of operation was $121 million for the year ended December 31, 2021.

4. Future Policy Benefits

The Company establishes liabilities for amounts payable under insurance policies. These liabilities are comprised of traditional and limited-payment contracts and associated DPLs, additional insurance liabilities, participating life and short-duration contracts.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

The LDTI transition adjustments related to traditional and limited-payment contracts, DPLs, and additional insurance liabilities, as well as the associated ceded recoverables, as described in Note 1, were as follows at the Transition Date:

						RIS Annuities						Asia Whole and Term Life & Endowments						Asia Accident & Health						Latin America Fixed Annuities						MetLife Holdings Long-Term Care						MetLife Holdings Participating Life						Other Long-Duration						Short-Duration and Other						Total
						(In millions)
Balance, future policy benefits, at December 31, 2020						$	66,030					$	17,990					$	16,330					$	8,393					$	14,281					$	51,148					$	19,128					$	13,356					$	206,656
Removal of additional insurance liabilities for separate presentation (1)						(4)						—						—						—						—						—						(6,561)						—						(6,565)
Subtotal - pre-adoption balance, excluding additional liabilities						66,026						17,990						16,330						8,393						14,281						51,148						12,567						13,356						200,091
Removal of related amounts in AOCI						(5,914)						—						—						(295)						(1,210)						—						(492)						—						(7,911)
Reclassification of carrying amounts of contracts and contract features that are market risk benefits						—						—						—						—						—						—						(176)						—						(176)
Adjustment of future policy benefits to remeasure cohorts where net premiums exceed gross premiums under the modified retrospective approach						337						51						154						121						—						—						56						—						719
Effect of remeasurement of future policy benefits to an upper-medium grade discount rate						15,834						4,386						285						2,869						8,270						—						2,475						—						34,119
Other balance sheet reclassifications and adjustments upon adoption of the LDTI standard						(7,416)						4						47						(1)						—						—						(124)						—						(7,490)
Removal of remeasured deferred profit liabilities for separate presentation (1)						(2,897)						(225)						(691)						(570)						—						—						(275)						—						(4,658)
Balance, traditional and limited-payment contracts, at January 1, 2021						$	65,970					$	22,206					$	16,125					$	10,517					$	21,341					$	51,148					$	14,031					$	13,356					$	214,694
Balance, deferred profit liabilities at January 1, 2021						$	2,897					$	225					$	691					$	570					$	—					$	—					$	275					$	—					$	4,658
Balance, ceded recoverables on traditional and limited-payment contracts at December 31, 2020						$	203					$	—					$	32					$	—					$	—											$	1,052											$	1,287
Effect of remeasurement of the ceded recoverable to an upper-medium grade discount rate						135						(15)						(66)						—						—												297												351
Adjustments for loss contracts (with net premiums in excess of gross premiums) under the modified retrospective approach						—						—						—						—						—												32												32
Adjustments for the cumulative effect of adoption on ceded recoverables on traditional and limited-payment contract						6						—						(2)						—						—												10												14
Balance ceded recoverables on traditional and limited-payment contracts at January 1, 2021						$	344					$	(15)					$	(36)					$	—					$	—											$	1,391											$	1,684

---

(1) LDTI requires separate disaggregated rollforwards of the additional insurance liabilities balance and the traditional and limited-payment FPBs. Therefore, the additional insurance liabilities and DPL amounts that are recorded in the FPB financial statement line item are removed to derive the opening balance of traditional and limited-payment contracts at the Transition Date.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

						Asia Variable Life						Asia Universal and Variable Universal Life						MetLife Holdings Universal and Variable Universal Life						Other Long-Duration						Total
						(In millions)
Additional insurance liabilities at December 31, 2020						$	1,824					$	788					$	1,976					$	1,977					$	6,565
Reclassification of carrying amounts of contracts and contract features that are market risk benefits						—						—						—						(1,642)						(1,642)
Adjustments for the cumulative effect of adoption on additional insurance liabilities						—						—						38						45						83
Additional insurance liabilities at January 1, 2021						$	1,824					$	788					$	2,014					$	380					$	5,006
Ceded recoverables on additional insurance liabilities at December 31, 2020						$	—					$	—					$	719					$	8					$	727
Reclassification of carrying amounts of contracts and contract features that are reinsured market risk benefits						—						—						—						(8)						(8)
Adjustments for the cumulative effect of adoption on ceded recoverables on additional insurance liabilities						—						—						1						—						1
Ceded recoverables on additional insurance liabilities at January 1, 2021						$	—					$	—					$	720					$	—					$	720
Balance, traditional and limited-payment contracts, at January 1, 2021																														$	214,694
Balance, deferred profit liabilities at January 1, 2021																														4,658
Balance, additional insurance liabilities at January 1, 2021																														5,006
Total future policy benefits at January 1, 2021																														$	224,358

The Company’s future policy benefits on the consolidated balance sheets was as follows at:

						December 31,
						2023						2022
						(In millions)
Traditional and Limited-Payment Contracts:
RIS - Annuities						$	64,324					$	58,495
Asia:
Whole and term life & endowments						12,874						12,792
Accident & health						10,712						10,040
Latin America - Fixed annuities						9,637						9,265
MetLife Holdings - Long-term care						15,240						13,845
Deferred Profit Liabilities:
RIS - Annuities						3,697						3,327
Asia:
Whole and term life & endowments						654						510
Accident & health						830						760
Latin America - Fixed annuities						562						560
Additional Insurance Liabilities:
Asia:
Variable life						1,258						1,381
Universal and variable universal life						424						455
MetLife Holdings - Universal and variable universal life						2,362						2,156
MetLife Holdings - Participating life						49,543						50,371
Other long-duration (1)						11,099						10,101
Short-duration and other						13,190						13,164
Total						$	196,406					$	187,222

---

(1) This balance represents liabilities for various smaller product lines across multiple segments, as well as Corporate & Other.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

Rollforwards - Traditional and Limited-Payment Contracts

The following information about the direct and assumed liability for future policy benefits includes disaggregated rollforwards of expected future net premiums and expected future benefits. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses. All amounts presented in the rollforwards and accompanying financial information do not include a reduction for amounts ceded to reinsurers, except with respect to ending net liability for future policy benefits balances where applicable. See Note 9 for further information regarding the impact of reinsurance on the consolidated balance sheets and the consolidated statements of operations.

RIS - Annuities

The RIS segment’s annuity products include pension risk transfers, certain structured settlements and certain institutional income annuities, which are mainly single premium spread-based products. Information regarding these products was as follows:

						Years Ended December 31,
						2023						2022						2021
						(Dollars in millions)
Present Value of Expected Net Premiums
Balance at January 1, at current discount rate at balance sheet date						$	—					$	—					$	—
Balance at January 1, at original discount rate						$	—					$	—					$	—
Effect of changes in cash flow assumptions (1)						—						—						—
Effect of actual variances from expected experience (2)						(106)						(94)						(60)
Adjusted balance						(106)						(94)						(60)
Issuances						6,572						12,672						3,995
Net premiums collected						(6,466)						(12,578)						(3,935)
Balance at December 31, at original discount rate						—						—						—
Balance at December 31, at current discount rate at balance sheet date						$	—					$	—					$	—
Present Value of Expected Future Policy Benefits
Balance at January 1, at current discount rate at balance sheet date						$	58,695					$	62,954					$	64,896
Balance at January 1, at original discount rate						$	61,426					$	50,890					$	49,061
Effect of changes in cash flow assumptions (1)						(284)						(115)						(130)
Effect of actual variances from expected experience (2)						(270)						(175)						(270)
Adjusted balance						60,872						50,600						48,661
Issuances						6,588						12,770						4,060
Interest accrual						2,897						2,519						2,336
Benefit payments						(5,620)						(4,463)						(4,167)
Balance at December 31, at original discount rate						64,737						61,426						50,890
Effect of changes in discount rate assumptions						(222)						(2,731)						12,064
Balance at December 31, at current discount rate at balance sheet date						64,515						58,695						62,954
Cumulative amount of fair value hedging adjustments						(191)						(200)						727
Net liability for future policy benefits						64,324						58,495						63,681
Less: Reinsurance recoverables						269						—						312
Net liability for future policy benefits, net of reinsurance						$	64,055					$	58,495					$	63,369
Undiscounted - Expected future benefit payments						$	130,878					$	113,932					$	96,623
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)						$	64,515					$	58,695					$	62,954
Weighted-average duration of the liability						9 years						9 years						12 years
Weighted-average interest accretion (original locked-in) rate						4.7		%				4.6		%				4.8		%
Weighted-average current discount rate at balance sheet date						5.1		%				5.5		%				2.9		%

---

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

(1) For the years ended December 31, 2023 and 2021, the net effect of changes in cash flow assumptions was largely offset by the corresponding impact in DPL associated with the RIS segment’s annuity products of $211 million and $112 million, respectively. For the year ended December 31, 2022, the net effect of changes in cash flow assumptions was more than offset by the corresponding impact in DPL associated with the RIS segment’s annuity products of $128 million.

(2) For the year ended December 31, 2023, the net effect of actual variances from expected experience was largely offset by the corresponding impact in DPL associated with the RIS segment’s annuity products of $118 million. For the year ended December 31, 2022, the net effect of actual variances from expected experience was partially offset by the corresponding impact in DPL associated with the RIS segment’s annuity products of $46 million. For the year ended December 31, 2021, the net effect of actual variances from expected experience was substantially offset by the corresponding impact in DPL associated with the RIS segment’s annuity products of $197 million.

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB for the RIS segment’s annuity products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, the current upper-medium grade discount rate at the balance sheet date and best estimate mortality assumptions.

For each of the years ended December 31, 2023, 2022 and 2021, the net effect of changes in cash flow assumptions was primarily driven by updates in biometric assumptions related to mortality.

For the year ended December 31, 2023, the net effect of actual variances from expected experience was primarily driven by favorable mortality and model refinements. For the years ended December 31, 2022 and 2021, the net effect of actual variances from expected experience was primarily driven by favorable mortality.

When single premium annuity contracts are issued, the FPB reserve is required to be measured at an upper-medium grade discount rate. Due to differences between the upper-medium grade discount rate and pricing assumptions used to determine the contractual premium, the initial FPB reserve at issue for a particular cohort may be greater than the contractual premium received, and the difference must be recognized as an immediate loss at issue. On these cohorts, future experience that differs from expected experience and changes in cash flow assumptions result in the recognition of remeasurement gains and losses with net remeasurement gains limited to the amount of the original loss at issue, after which any favorable experience is deferred and recorded within the DPL. For the year ended December 31, 2022, the Company incurred a loss at issue of $99 million and recognized a net remeasurement loss of $31 million attributable to cohorts with no DPL or where the DPL was depleted during the year.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

Asia

Whole and Term Life & Endowments

The Asia segment’s whole and term life & endowment products in Japan and Korea offer various life insurance coverages to customers. Information regarding these products was as follows:

						Years Ended December 31,
						2023						2022						2021
			(Dollars in millions)
Present Value of Expected Net Premiums
Balance at January 1, at current discount rate at balance sheet date						$	4,682					$	5,986					$	7,396
Balance at January 1, at original discount rate						$	4,943					$	5,881					$	7,243
Effect of changes in cash flow assumptions (1)						11						69						(60)
Effect of actual variances from expected experience (2)						(62)						28						(80)
Adjusted balance						4,892						5,978						7,103
Issuances						730						231						208
Interest accrual						59						44						51
Net premiums collected						(611)						(615)						(777)
Effect of foreign currency translation						(277)						(695)						(704)
Balance at December 31, at original discount rate						4,793						4,943						5,881
Effect of changes in discount rate assumptions						(242)						(247)						117
Effect of foreign currency translation on the effect of changes in discount rate assumptions						10						(14)						(12)
Balance at December 31, at current discount rate at balance sheet date						$	4,561					$	4,682					$	5,986
Present Value of Expected Future Policy Benefits
Balance at January 1, at current discount rate at balance sheet date						$	17,463					$	24,453					$	29,581
Balance at January 1, at original discount rate						$	18,209					$	21,276					$	25,063
Effect of changes in cash flow assumptions (1)						58						96						(108)
Effect of actual variances from expected experience (2)						(30)						54						(70)
Adjusted balance						18,237						21,426						24,885
Issuances						729						231						208
Interest accrual						370						364						422
Benefit payments						(1,174)						(1,406)						(1,794)
Effect of foreign currency translation						(964)						(2,406)						(2,445)
Balance at December 31, at original discount rate						17,198						18,209						21,276
Effect of changes in discount rate assumptions						224						(475)						3,545
Effect of foreign currency translation on the effect of changes in discount rate assumptions						13						(271)						(368)
Balance at December 31, at current discount rate at balance sheet date						17,435						17,463						24,453
Cumulative impact of flooring the future policyholder benefits reserve						—						11						5
Net liability for future policy benefits						12,874						12,792						18,472
Less: Amount due to reinsurer						(1)						(1)						(10)
Net liability for future policy benefits, net of reinsurance						$	12,875					$	12,793					$	18,482
Undiscounted:
Expected future gross premiums						$	9,331					$	9,369					$	11,097
Expected future benefit payments						$	28,130					$	28,507					$	32,372
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums						$	8,067					$	8,086					$	10,377
Expected future benefit payments						$	17,435					$	17,463					$	24,453
Weighted-average duration of the liability						17 years						15 years						18 years
Weighted -average interest accretion (original locked-in) rate						2.5		%				2.3		%				2.3		%
Weighted-average current discount rate at balance sheet date						2.6		%				2.7		%				1.5		%

---

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

(1) For the year ended December 31, 2023, the net effect of changes in cash flow assumptions was not offset by the corresponding impact in DPL associated with the Asia segment’s whole and term life & endowment products due to the diversification of the products and the underlying characteristics. For the years ended December 31, 2022 and 2021, the net effect of changes in cash flow assumptions was partially offset by the corresponding impact in DPL associated with the Asia segment’s whole and term life & endowment products of ($13) million and $1 million, respectively.

(2) For the years ended December 31, 2023 and 2022, the net effect of actual variances from expected experience was not offset by the corresponding impact in DPL associated with the Asia segment’s whole and term life & endowment product due to the diversification of the products and the underlying characteristics. For the year ended December 31, 2021, the net effect of actual variances from expected experience was partially offset by the corresponding impact in DPL associated with the Asia segment’s whole and term life & endowment products of ($6) million.

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB reserve for Asia segment’s whole and term life & endowment products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, the current upper-medium grade discount rate at the balance sheet date and best estimate assumptions. The best estimate assumptions include mortality, lapse, and morbidity.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

Accident & Health

The Asia segment’s accident & health products in Japan and Korea offer various hospitalization, cancer, critical illness, disability, income protection and personal accident coverage. Information regarding these products was as follows:

						Years Ended December 31,
						2023						2022						2021
						(Dollars in millions)
Present Value of Expected Net Premiums
Balance at January 1, at current discount rate at balance sheet date						$	21,181					$	26,543					$	30,327
Balance at January 1, at original discount rate						$	22,594					$	25,937					$	29,456
Effect of changes in cash flow assumptions (1)						867						24						64
Effect of actual variances from expected experience (2)						(158)						297						101
Adjusted balance						23,303						26,258						29,621
Issuances						1,030						1,387						1,488
Interest accrual						236						250						311
Net premiums collected						(2,016)						(2,160)						(2,509)
Effect of foreign currency translation						(1,321)						(3,141)						(2,974)
Balance at December 31, at original discount rate						21,232						22,594						25,937
Effect of changes in discount rate assumptions						(1,449)						(1,341)						674
Effect of foreign currency translation on the effect of changes in discount rate assumptions						52						(72)						(68)
Balance at December 31, at current discount rate at balance sheet date						$	19,835					$	21,181					$	26,543
Present Value of Expected Future Policy Benefits
Balance at January 1, at current discount rate at balance sheet date						$	30,879					$	41,874					$	46,282
Balance at January 1, at original discount rate						$	37,189					$	41,517					$	45,296
Effect of changes in cash flow assumptions (1)						898						(7)						126
Effect of actual variances from expected experience (2)						(180)						363						105
Adjusted balance						37,907						41,873						45,527
Issuances						1,028						1,387						1,487
Interest accrual						485						498						578
Benefit payments						(1,279)						(1,613)						(1,458)
Effect of foreign currency translation						(2,131)						(4,956)						(4,617)
Balance at December 31, at original discount rate						36,010						37,189						41,517
Effect of changes in discount rate assumptions						(5,793)						(6,291)						394
Effect of foreign currency translation on the effect of changes in discount rate assumptions						263						(19)						(37)
Balance at December 31, at current discount rate at balance sheet date						30,480						30,879						41,874
Cumulative impact of flooring the future policyholder benefits reserve						67						342						68
Net liability for future policy benefits						10,712						10,040						15,399
Less: Reinsurance recoverables/(Amount due to reinsurer)						142						143						(11)
Net liability for future policy benefits, net of reinsurance						$	10,570					$	9,897					$	15,410
Undiscounted:
Expected future gross premiums						$	41,734					$	43,440					$	49,959
Expected future benefit payments						$	47,046					$	48,147					$	53,327
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums						$	34,356					$	36,179					$	45,872
Expected future benefit payments						$	30,480					$	30,879					$	41,874
Weighted-average duration of the liability						25 years						17 years						30 years
Weighted-average interest accretion (original locked-in) rate						1.7		%				1.7		%				1.7		%
Weighted-average current discount rate at balance sheet date						2.5		%				2.7		%				1.4		%

---

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

(1) For the year ended December 31, 2023, the net effect of changes in cash flow assumptions was partially offset by the corresponding impact in DPL associated with the Asia segment’s accident & health products of ($10) million. For the years ended December 31, 2022 and 2021 the net effect of changes in cash flow assumptions was more than offset by the corresponding impact in DPL associated with the Asia segment’s accident & health products of $44 million and ($69) million, respectively.

(2) For the years ended December 31, 2023 and 2022, the net effect of actual variances from expected experience was partially offset by the corresponding impact in DPL associated with the Asia segment’s accident & health products of $4 million and ($20) million, respectively. For the year ended December 31, 2021, the net effect of actual variances from expected experience was more than offset by the corresponding impact in DPL associated with the Asia segment’s accident & health products of ($58) million.

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB reserve for the Asia segment’s accident & health products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, current upper-medium grade discount rate at the balance sheet date and best estimate assumptions. The best estimate assumptions include mortality, lapse, and morbidity.

For the year ended December 31, 2023, the net effect of changes in cash flow assumptions was primarily driven by updates in policyholder behavior assumptions related to lapses, partially offset by updates in biometric assumptions related to mortality and morbidity. For the year ended December 31, 2021, the effect of changes in cash flow assumptions was primarily driven by updates in biometric assumptions related to mortality and updates in policyholder behavior assumptions related to lapses, partially offset by updates in biometric assumptions related to morbidity.

Latin America - Fixed Annuities

The Latin America segment’s fixed annuity products in Chile and Mexico offer fixed income annuities that provide for asset distribution needs. Information regarding these products was as follows:

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

						Years Ended December 31,
						2023						2022						2021
						(Dollars in millions)
Present Value of Expected Net Premiums
Balance at January 1, at current discount rate at balance sheet date						$	—					$	—					$	—
Balance at January 1, at original discount rate						$	—					$	—					$	—
Effect of changes in cash flow assumptions (1)						—						—						—
Effect of actual variances from expected experience (2)						—						1						1
Adjusted balance						—						1						1
Issuances						1,045						714						415
Interest accrual						29						(3)						(6)
Net premiums collected						(1,074)						(712)						(410)
Balance at December 31, at original discount rate						—						—						—
Balance at December 31, at current discount rate at balance sheet date						$	—					$	—					$	—
Present Value of Expected Future Policy Benefits
Balance at January 1, at current discount rate at balance sheet date						$	9,265					$	7,343					$	10,517
Balance at January 1, at original discount rate						$	8,240					$	6,851					$	7,649
Effect of changes in cash flow assumptions (1)						(5)						(8)						(37)
Effect of actual variances from expected experience (2)						(31)						(32)						2
Adjusted balance						8,204						6,811						7,614
Issuances						1,153						757						491
Interest accrual						341						286						294
Benefit payments						(671)						(560)						(749)
Inflation adjustment						415						896						464
Effect of foreign currency translation						(193)						50						(1,263)
Balance at December 31, at original discount rate						9,249						8,240						6,851
Effect of changes in discount rate assumptions						391						1,026						658
Effect of foreign currency translation on the effect of changes in discount rate assumptions						(3)						(1)						(166)
Balance at December 31, at current discount rate at balance sheet date						9,637						9,265						7,343
Net liability for future policy benefits						$	9,637					$	9,265					$	7,343
Undiscounted - Expected future benefit payments						$	13,994					$	12,675					$	10,712
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)						$	9,637					$	9,265					$	7,343
Weighted-average duration of the liability						11 years						11 years						11 years
Weighted-average interest accretion (original locked-in) rate						3.6		%				3.9		%				4.2		%
Weighted-average current discount rate at balance sheet date						3.3		%				2.7		%				3.2		%

---

(1) For the years ended December 31, 2023, 2022 and 2021, the net effect of changes in cash flow assumptions was largely offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuity products of $4 million, $7 million and $30 million, respectively.

(2) For the year ended December 31, 2023, the net effect of actual variances from expected experience was not offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuity products primarily due to the variance coming from cohorts with no DPL. For the year ended December 31, 2022, the net effect of actual variances from expected experience was partially offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuity products of $20 million. For the year ended December 31, 2021, the net effect of actual variances from expected experience was more than offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuity products of ($28) million.

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB reserve for the Latin America segment’s fixed annuity products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, current upper-medium grade discount rate at the balance sheet date and best estimate mortality assumptions.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

MetLife Holdings - Long-term Care

The MetLife Holdings segment’s long-term care products offer protection against potentially high costs of long-term health care services. Information regarding these products was as follows:

						Years Ended December 31,
						2023						2022						2021
						(Dollars in millions)
Present Value of Expected Net Premiums
Balance at January 1, at current discount rate at balance sheet date						$	5,775					$	7,058					$	7,142
Balance at January 1, at original discount rate						$	5,807					$	5,699					$	5,516
Effect of changes in cash flow assumptions						(152)						272						270
Effect of actual variances from expected experience						199						120						183
Adjusted balance						5,854						6,091						5,969
Interest accrual						294						298						287
Net premiums collected						(582)						(582)						(557)
Balance at December 31, at original discount rate						5,566						5,807						5,699
Effect of changes in discount rate assumptions						121						(32)						1,359
Balance at December 31, at current discount rate at balance sheet date						$	5,687					$	5,775					$	7,058
Present Value of Expected Future Policy Benefits
Balance at January 1, at current discount rate at balance sheet date						$	19,619					$	27,627					$	28,483
Balance at January 1, at original discount rate						$	20,165					$	19,406					$	18,586
Effect of changes in cash flow assumptions						(190)						301						276
Effect of actual variances from expected experience						223						115						188
Adjusted balance						20,198						19,822						19,050
Interest accrual						1,070						1,043						998
Benefit payments						(774)						(700)						(642)
Balance at December 31, at original discount rate						20,494						20,165						19,406
Effect of changes in discount rate assumptions						433						(546)						8,221
Balance at December 31, at current discount rate at balance sheet date						20,927						19,619						27,627
Other adjustments						—						1						—
Net liability for future policy benefits						$	15,240					$	13,845					$	20,569
Undiscounted:
Expected future gross premiums						$	10,603					$	11,201					$	11,404
Expected future benefit payments						$	45,016					$	45,872					$	45,835
Discounted (at current discount rate at balance sheet date ):
Expected future gross premiums						$	7,139					$	7,200					$	9,049
Expected future benefit payments						$	20,927					$	19,619					$	27,627
Weighted-average duration of the liability						15 years						15 years						18 years
Weighted-average interest accretion (original locked-in) rate						5.4		%				5.5		%				5.5		%
Weighted-average current discount rate at balance sheet date						5.2		%				5.6		%				3.0		%

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB reserve for long-term care products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, current upper-medium grade discount rate at the balance sheet date and best estimate assumptions. The best estimate assumptions include mortality, lapse, incidence, claim utilization, claim cost inflation, claim continuance, and premium rate increases.

For the year ended December 31, 2023, the net effect of changes in cash flow assumptions was primarily driven by updates in policyholder behavior assumptions related to claim utilization experience, which lowered the expected cost of care. This was partially offset by updates in biometric assumptions associated with an increase in incidence rates. For the year ended December 31, 2022, the net effect of changes in cash flow assumptions was primarily driven by updates in operational assumptions related to inflation, which increased the expected cost of care.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

For the year ended December 31, 2021, the net effect of actual variances from expected experience was primarily driven by a model refinement resulting in unfavorable claim utilization expectations, largely offset by higher than expected claim terminations and mortality.

Rollforwards - Additional Insurance Liabilities

The Company establishes additional insurance liabilities for annuitization, death or other insurance benefits for variable life, universal life, and variable universal life contract features where the Company guarantees to the contractholder either a secondary guarantee or a guaranteed paid-up benefit. The policy can remain in force, even if the base policy account value is zero, as long as contractual secondary guarantee requirements have been met.

The following information about the direct liability for additional insurance liabilities includes disaggregated rollforwards. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses. All amounts presented in these rollforwards and accompanying financial information do not include a reduction for amounts ceded to reinsurers. See Note 9 for further information regarding the impact of reinsurance on the consolidated balance sheets and the consolidated statements of operations.

Asia

The Asia segment’s variable life, universal life, and variable universal life products in Japan offer a contract feature where the Company guarantees to the contractholder a secondary guarantee. Information regarding these additional insurance liabilities was as follows:

						Years Ended December 31,
						2023						2022						2021						2023						2022						2021
						Variable Life																		Universal and Variable Universal Life
						(Dollars in millions)
Balance, at January 1,						$	1,381					$	1,595					$	1,824					$	455					$	655					$	788
Less: AOCI adjustment						—						—						—						(33)						56						102
Balance, at January 1, before AOCI adjustment						1,381						1,595						1,824						488						599						686
Effect of changes in cash flow assumptions						(4)						9						—						(2)						(1)						—
Effect of actual variances from expected experience						(10)						2						(24)						(24)						(39)						(30)
Adjusted balance						1,367						1,606						1,800						462						559						656
Assessments accrual						(3)						(3)						(3)						—						(3)						5
Interest accrual						19						21						25						7						7						9
Excess benefits paid						(36)						(40)						(40)						—						—						—
Effect of foreign currency translation and other, net						(89)						(203)						(187)						(31)						(75)						(71)
Balance, at December 31, before AOCI adjustment						1,258						1,381						1,595						438						488						599
Add: AOCI adjustment						—						—						—						(14)						(33)						56
Balance, at December 31,						$	1,258					$	1,381					$	1,595					$	424					$	455					$	655
Weighted-average duration of the liability						16 years						17 years						18 years						42 years						42 years						41 years
Weighted-average interest accretion rate						1.5		%				1.4		%				1.5		%				1.4		%				1.4		%				1.5		%

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the additional insurance liability for the Asia segment’s variable life products include historical actual fees and benefits, in-force data, the locked-in discount rate, the stochastic fund return scenario assumption, and best estimate lapse and mortality assumptions.

The stochastic fund return scenario assumption includes the long-term average return and volatility for each fund, and the correlation matrix for each fund. For newer products, the discount rate is determined based on the weighting and return of each fund.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

The principal inputs used in the establishment of the additional insurance liability for the Asia segment’s universal and variable universal life products include historical actual fees and benefits, in-force data, the locked-in discount rate, the stochastic fund return scenario assumption, and best estimate lapse and mortality assumptions.

The stochastic fund return scenario assumption includes the foreign currency exchange long-term average trend, foreign currency exchange volatility, long-term U.S. swap and treasury yield, U.S. swap volatility and the correlation between foreign currency exchange and U.S. swap rates.

The locked-in discount rate used for these products is based on the earned rate and foreign currency exchange rates at acquisition.

MetLife Holdings

The MetLife Holdings segment’s universal life and variable universal life products offer a contract feature where the Company guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. Information regarding these additional insurance liabilities was as follows:

						Years Ended December 31,
						2023						2022						2021
						Universal and Variable Universal Life
						(Dollars in millions)
Balance, at January 1						$	2,156					$	2,117					$	2,014
Less: AOCI adjustment						(63)						67						95
Balance, at January 1, before AOCI adjustment						2,219						2,050						1,919
Effect of changes in cash flow assumptions						38						35						—
Effect of actual variances from expected experience						—						39						19
Adjusted balance						2,257						2,124						1,938
Assessments accrual						105						103						114
Interest accrual						124						116						107
Excess benefits paid						(110)						(124)						(109)
Balance, at December 31, before AOCI adjustment						2,376						2,219						2,050
Add: AOCI adjustment						(14)						(63)						67
Balance, at December 31						2,362						2,156						2,117
Less: Reinsurance recoverables						2,055						745						739
Balance, at December 31, net of reinsurance						$	307					$	1,411					$	1,378
Weighted-average duration of the liability						15 years						16 years						17 years
Weighted-average interest accretion rate						5.5		%				5.6		%				5.6		%

Significant Methodologies and Assumptions

Liabilities for ULSG and paid-up guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the life of the contract based on total expected assessments.

The guaranteed benefits are estimated over a range of scenarios. The significant assumptions used in estimating the ULSG and paid-up guarantee liabilities are investment income, mortality, lapses, and premium payment pattern and persistency. In addition, projected earned rate and crediting rates are used to project the account values and excess death benefits and assessments. The discount rate is equal to the crediting rate for each annual cohort and is locked-in at inception.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

The Company’s gross premiums or assessments and interest expense recognized in the consolidated statements of operations and comprehensive income (loss) for long-duration contracts, excluding MetLife Holdings’ participating life contracts, were as follows:

						Years Ended December 31,
						2023												2022												2021
						Gross Premiums or Assessments (1)						Interest Expense (2)						Gross Premiums or Assessments (1)						Interest Expense (2)						Gross Premiums or Assessments (1)						Interest Expense (2)
			(In millions)
Traditional and Limited-Payment Contracts:
RIS - Annuities						$	6,660					$	2,897					$	12,748					$	2,519					$	3,965					$	2,336
Asia:
Whole and term life & endowments						1,124						311						1,144						320						1,457						371
Accident & health						3,364						249						3,602						248						4,203						267
Latin America - Fixed annuities						1,074						312						712						289						410						300
MetLife Holdings - Long-term care						731						776						734						745						736						711
Deferred Profit Liabilities:
RIS - Annuities						N/A						167						N/A						154						N/A						147
Asia:
Whole and term life & endowments						N/A						31						N/A						26						N/A						18
Accident & health						N/A						18						N/A						16						N/A						14
Latin America - Fixed annuities						N/A						22						N/A						19						N/A						20
Additional Insurance Liabilities:
Asia:
Variable life						89						19						58						21						28						25
Universal and variable universal life						(31)						7						(26)						7						19						9
MetLife Holdings - Universal and variable universal life						730						124						805						116						831						107
Other long-duration						4,516						460						3,701						450						4,063						480
Total						$	18,257					$	5,393					$	23,478					$	4,930					$	15,712					$	4,805

---

(1)Gross premiums are related to traditional and limited-payment contracts and are included in premiums. Assessments are related to additional insurance liabilities and are included in universal life and investment-type product policy fees and net investment income.

(2)Interest expense is included in policyholder benefits and claims.

Participating Business

Participating business represented 2% of the Company’s life insurance in-force at both December 31, 2023 and 2022. Participating policies represented 10%, 11% and 12% of gross traditional life insurance premiums for the years ended December 31, 2023, 2022 and 2021, respectively.

Liabilities for Unpaid Claims and Claim Expenses

The following is information about incurred and paid claims development by segment at December 31, 2023. Such amounts are presented net of reinsurance, and are not discounted. The tables present claims development and cumulative claim payments by incurral year. The development tables are only presented for significant short-duration product liabilities within each segment. In order to eliminate potential fluctuations related to foreign exchange rates, liabilities and payments denominated in a foreign currency have been translated using the 2023 year-end spot rates for all periods presented. The information about incurred and paid claims development prior to 2023 is presented as supplementary information.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

Group Benefits

Group Life - Term

						Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																																																												At December 31, 2023
						Years Ended December 31,																																																												Total IBNR Liabilities Plus Expected Development on Reported Claims						Cumulative Number of Reported Claims
						(Unaudited)
Incurral Year						2014						2015						2016						2017						2018						2019						2020						2021						2022						2023
						(Dollars in millions)
2014						$	6,986					$	6,919					$	6,913					$	6,910					$	6,914					$	6,919					$	6,920					$	6,918					$	6,920					$	6,921					$	1					216,354
2015												7,040						7,015						7,014						7,021						7,024						7,025						7,026						7,026						7,028						1						219,102
2016																		7,125						7,085						7,095						7,104						7,105						7,104						7,107						7,109						2						221,155
2017																								7,432						7,418						7,425						7,427						7,428						7,428						7,432						2						264,341
2018																														7,757						7,655						7,646						7,650						7,651						7,652						2						252,744
2019																																				7,935						7,900						7,907						7,917						7,914						4						254,564
2020																																										8,913						9,367						9,389						9,384						11						299,634
2021																																																10,555						10,795						10,777						23						332,964
2022																																																						9,640						9,653						44						331,022
2023																																																												9,584						1,198						263,329
Total																																																												83,454
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																																																												(80,287)
All outstanding liabilities for incurral years prior to 2014, net of reinsurance																																																												20
Total unpaid claims and claim adjustment expenses, net of reinsurance																																																												$	3,187

						Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
						Years Ended December 31,
						(Unaudited)
Incurral Year						2014						2015						2016						2017						2018						2019						2020						2021						2022						2023
						(In millions)
2014						$	5,428					$	6,809					$	6,858					$	6,869					$	6,902					$	6,912					$	6,915					$	6,916					$	6,917					$	6,919
2015												5,524						6,913						6,958						6,974						7,008						7,018						7,022						7,024						7,027
2016																		5,582						6,980						7,034						7,053						7,086						7,096						7,100						7,106
2017																								5,761						7,292						7,355						7,374						7,400						7,414						7,427
2018																														6,008						7,521						7,578						7,595						7,629						7,646
2019																																				6,178						7,756						7,820						7,853						7,898
2020																																										6,862						9,103						9,242						9,296
2021																																																8,008						10,476						10,640
2022																																																						7,101						9,399
2023																																																												6,929
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																																																												$	80,287

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2023:

						Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years						1						2						3						4						5						6						7						8						9						10
Group Life - Term						76.3%						21.1%						0.9%						0.3%						0.5%						0.2%						0.1%						—%						—%						—%

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

Group Long-Term Disability

						Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																																																												At December 31, 2023
						Years Ended December 31,																																																												Total IBNR Liabilities Plus Expected Development on Reported Claims						Cumulative Number of Reported Claims
						(Unaudited)
Incurral Year						2014						2015						2016						2017						2018						2019						2020						2021						2022						2023
						(Dollars in millions)
2014						$	1,076					$	1,077					$	1,079					$	1,101					$	1,109					$	1,098					$	1,097					$	1,081					$	1,078					$	1,071					$	—					22,854
2015												1,082						1,105						1,093						1,100						1,087						1,081						1,067						1,086						1,078						—						21,218
2016																		1,131						1,139						1,159						1,162						1,139						1,124						1,123						1,086						—						17,974
2017																								1,244						1,202						1,203						1,195						1,165						1,181						1,101						—						16,329
2018																														1,240						1,175						1,163						1,147						1,170						1,102						—						15,215
2019																																				1,277						1,212						1,169						1,177						1,103						—						15,408
2020																																										1,253						1,223						1,155						1,100						—						15,773
2021																																																1,552						1,608						1,477						9						19,557
2022																																																						1,641						1,732						46						18,006
2023																																																												1,725						793						10,994
Total																																																												12,575
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																																																												(6,295)
All outstanding liabilities for incurral years prior to 2014, net of reinsurance																																																												1,477
Total unpaid claims and claim adjustment expenses, net of reinsurance																																																												$	7,757

						Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
						Years Ended December 31,
						(Unaudited)
Incurral Year						2014						2015						2016						2017						2018						2019						2020						2021						2022						2023
						(In millions)
2014						$	51					$	266					$	428					$	526					$	609					$	677					$	732					$	778					$	818					$	850
2015												50						264						427						524						601						665						718						764						801
2016																		49						267						433						548						628						696						750						769
2017																								56						290						476						579						655						719						718
2018																														54						314						497						594						666						663
2019																																				57						342						522						620						621
2020																																										59						355						535						560
2021																																																95						505						620
2022																																																						76						609
2023																																																												84
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																																																												$	6,295

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2023:

						Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years						1						2						3						4						5						6						7						8						9						10
Group Long-Term Disability						5.0%						24.0%						14.9%						8.3%						6.0%						4.8%						3.7%						3.4%						3.6%						3.0%

Significant Methodologies and Assumptions

Group Life - Term and Group Long-Term Disability incurred but not paid (“IBNP”) liabilities are developed using a combination of loss ratio and development methods. Claims in the course of settlement are then subtracted from the IBNP liabilities, resulting in the IBNR liabilities. The loss ratio method is used in the period in which the claims are neither sufficient nor credible. In developing the loss ratios, any material rate increases that could change the underlying premium without affecting the estimated incurred losses are taken into account. For periods where sufficient and credible claim data exists, the development method is used based on the claim triangles which categorize claims according to both the period in which they were incurred and the period in which they were paid, adjudicated or reported. The end result is a triangle of known data that is used to develop known completion ratios and factors. Claims paid are then subtracted from the estimated ultimate incurred claims to calculate the IBNP liability.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

An expense liability is held for the future expenses associated with the payment of incurred but not yet paid claims (IBNR and pending). This is expressed as a percentage of the underlying claims liability and is based on past experience and the anticipated future expense structure.

For Group Life - Term, first year incurred claims and allocated loss adjustment expenses decreased in 2023 compared to the 2022 incurral year due to the decline in COVID-19 related death claims. For Group Long-Term Disability, first year incurred claims and allocated loss adjustment expenses increased in 2023 compared to 2022 incurral year due to the growth in the size of the business.

The assumptions used in calculating the unpaid claims and claim adjustment expenses for Group Life - Term and Group Long-Term Disability are updated annually to reflect emerging trends in claim experience.

Certain of the Group Life - Term customers have experience-rated contracts, whereby the group sponsor participates in the favorable and/or adverse claim experience, including favorable and/or adverse prior year development. Claim experience adjustments on these contracts are not reflected in the foregoing incurred and paid claim development tables, but are instead reflected as an increase (adverse experience) or decrease (favorable experience) to premiums on the consolidated statements of operations.

Liabilities for Group Life - Term unpaid claims and claim adjustment expenses are not discounted.

The liabilities for Group Long-Term Disability unpaid claims and claim adjustment expenses were $6.7 billion and $6.5 billion at December 31, 2023 and 2022, respectively. Using interest rates ranging from 3% to 8%, based on the incurral year, the total discount applied to these liabilities was $1.3 billion and $1.2 billion at December 31, 2023 and 2022, respectively. The amount of interest accretion recognized was $516 million, $461 million and $518 million for the years ended December 31, 2023, 2022 and 2021, respectively. These amounts were reflected in policyholder benefits and claims.

For Group Life - Term, claims were based upon individual death claims. For Group Long-Term Disability, claim frequency was determined by the number of reported claims as identified by a unique claim number assigned to individual claimants. Claim counts initially include claims that do not ultimately result in a liability. These claims are omitted from the claim counts once it is determined that there is no liability.

The incurred and paid claims disclosed for the Group Life - Term product includes activity related to the product’s continued protection feature; however, the associated actuarial reserve for future benefit obligations under this feature is excluded from the liability for unpaid claims.

The Group Long-Term Disability IBNR, included in the development tables above, was developed using discounted cash flows, and is presented on a discounted basis.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

Asia

Group Disability & Group Life

						Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																																																												At December 31, 2023
						Years Ended December 31,																																																												Total IBNR Liabilities Plus Expected Development on Reported Claims						Cumulative Number of Reported Claims
						(Unaudited)
Incurral Year						2014						2015						2016						2017						2018						2019						2020						2021						2022						2023
						(Dollars in millions)
2014						$	259					$	243					$	223					$	224					$	234					$	230					$	231					$	231					$	225					$	226					$	6					6,930
2015												244						233						236						230						241						243						246						243						244						10						6,879
2016																		204						207						196						209						211						216						218						217						13						4,797
2017																								265						246						253						271						279						273						275						22						5,751
2018																														323						295						307						317						311						318						43						6,170
2019																																				349						326						341						337						346						57						6,307
2020																																										388						361						333						341						104						5,488
2021																																																369						384						404						154						6,617
2022																																																						491						454						230						6,955
2023																																																												453						359						3,544
Total																																																												3,278
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																																																												(2,280)
All outstanding liabilities for incurral years prior to 2014, net of reinsurance																																																												13
Total unpaid claims and claim adjustment expenses, net of reinsurance																																																												$	1,011

						Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
						Years Ended December 31,
						(Unaudited)
Incurral Year						2014						2015						2016						2017						2018						2019						2020						2021						2022						2023
						(In millions)
2014						$	61					$	126					$	157					$	176					$	198					$	199					$	209					$	214					$	217					$	219
2015												71						134						168						182						205						219						226						230						233
2016																		57						118						134						168						182						191						199						204
2017																								77						139						184						226						241						243						254
2018																														85						156						210						244						254						275
2019																																				93						171						222						258						289
2020																																										86						154						205						237
2021																																																78						172						249
2022																																																						90						225
2023																																																												95
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																																																												$	2,280

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2023:

						Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years						1						2						3						4						5						6						7						8						9						10
Group Disability & Group Life						24.9%						24.8%						14.6%						10.8%						7.2%						3.5%						3.7%						2.1%						1.3%						0.9%

Significant Methodologies and Assumptions

This business line consists of employer sponsored and industry sponsored Group Life and Group Disability risks.

For Group Life, the IBNR liability is determined by using the Bornhuetter-Ferguson Method, with factors derived by examining the experience of historical claims. A pending liability is also calculated for claims that have been reported but have not been paid. A claim eligibility ratio based on past experience is applied to the face amount of individual claims.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

For Group Disability, the IBNR liability is calculated by applying a percentage to premiums in-force based on the expected delay as evidenced by the experience in the portfolio. The IBNR liability is then allocated back into different incurral years based on historical run-off patterns. As the benefit for this class of business is a regular series of payments, an additional reserve is required for the liability for ongoing benefit payments - claims in course of payment (“CICP”). The assumptions employed in the calculation of the CICP are adjusted for the Company’s own experience.

An expense liability is held for the future expenses associated with the payment of incurred but not yet paid claims. This is expressed as a percentage of the underlying claims liability and is based on past experience and the future expense structure.

The assumptions used in calculating the unpaid claims and claim adjustment expenses for Group Disability and Group Life are updated annually to reflect emerging trends in claim experience.

No additional premiums or return premiums have been accrued as a result of the prior year development.

The liabilities for unpaid claims and claim adjustment expenses were $1.3 billion at both December 31, 2023 and 2022. These amounts were discounted using interest rates ranging from 1% to 7%, based on the incurral year. The total discount applied to these liabilities was $163 million and $118 million at December 31, 2023 and 2022, respectively. The amount of interest accretion recognized was $37 million, $22 million and $22 million for the years ended December 31, 2023, 2022 and 2021, respectively. These amounts were reflected in policyholder benefits and claims.

The Company tracks claim frequency by the number of reported claims as identified by a unique claim number assigned to individual claimants. Claim counts include claims that do not ultimately result in a liability. A liability is only established for those claims that are expected to result in a liability, based on historical factors.

Latin America

Protection Life

						Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																																																												At December 31, 2023
						Years Ended December 31,																																																												Total IBNR Liabilities Plus Expected Development on Reported Claims						Cumulative Number of Reported Claims
						(Unaudited)
Incurral Year						2014						2015						2016						2017						2018						2019						2020						2021						2022						2023
						(Dollars in millions)
2014						$	261					$	400					$	411					$	375					$	378					$	379					$	380					$	380					$	370					$	371					$	—					38,397
2015												342						492						458						463						463						464						458						446						447						—						44,554
2016																		362						475						488						496						497						498						487						486						—						38,936
2017																								373						363						363						362						362						352						351						—						31,052
2018																														347						335						333						334						333						333						—						29,857
2019																																				374						342						346						343						344						1						32,435
2020																																										567						567						573						576						7						43,062
2021																																																717						625						625						15						52,935
2022																																																						495						467						27						40,656
2023																																																												481						199						26,972
Total																																																												4,481
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																																																												(4,036)
All outstanding liabilities for incurral years prior to 2014, net of reinsurance																																																												1
Total unpaid claims and claim adjustment expenses, net of reinsurance																																																												$	446

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

						Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
						Years Ended December 31,
						(Unaudited)
Incurral Year						2014						2015						2016						2017						2018						2019						2020						2021						2022						2023
						(In millions)
2014						$	232					$	349					$	355					$	359					$	363					$	365					$	367					$	368					$	359					$	360
2015												278						394						418						426						433						436						437						426						428
2016																		257						460						481						490						493						496						488						489
2017																								221						331						350						354						357						348						349
2018																														174						297						310						315						312						314
2019																																				194						295						318						316						320
2020																																										245						490						504						513
2021																																																370						517						539
2022																																																						305						410
2023																																																												314
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																																																												$	4,036

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2023:

						Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years						1						2						3						4						5						6						7						8						9						10
Protection Life						58.2%						31.7%						4.2%						1.2%						0.7%						—%						(0.1)%						(0.7)%						(1.0)%						0.3%

Protection Health

						Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																																																												At December 31, 2023
						Years Ended December 31,																																																												Total IBNR Liabilities Plus Expected Development on Reported Claims						Cumulative Number of Reported Claims
						(Unaudited)
Incurral Year						2014						2015						2016						2017						2018						2019						2020						2021						2022						2023
						(Dollars in millions)
2014						$	271					$	302					$	304					$	302					$	301					$	301					$	301					$	302					$	303					$	302					$	—					98,246
2015												233						265						267						265						265						265						266						266						266						—						87,711
2016																		306						352						349						349						349						349						349						350						—						106,797
2017																								443						412						413						412						412						412						413						—						121,765
2018																														474						498						472						471						471						471						—						144,770
2019																																				158						206						199						198						199						1						132,789
2020																																										572						562						560						559						2						150,117
2021																																																735						737						733						7						171,217
2022																																																						800						790						17						196,579
2023																																																												1,011						96						159,272
Total																																																												5,094
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																																																												(4,900)
All outstanding liabilities for incurral years prior to 2014, net of reinsurance																																																												2
Total unpaid claims and claim adjustment expenses, net of reinsurance																																																												$	196

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

						Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
						Years Ended December 31,
						(Unaudited)
Incurral Year						2014						2015						2016						2017						2018						2019						2020						2021						2022						2023
						(In millions)
2014						$	269					$	300					$	302					$	298					$	298					$	298					$	298					$	298					$	299					$	299
2015												233						265						263						264						265						265						266						266						266
2016																		288						344						347						348						348						349						349						350
2017																								361						407						409						410						411						412						413
2018																														405						461						465						466						468						469
2019																																				133						187						191						194						196
2020																																										484						547						552						554
2021																																																649						718						724
2022																																																						678						771
2023																																																												858
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																																																												$	4,900

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2023:

						Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years						1						2						3						4						5						6						7						8						9						10
Protection Health						84.5%						13.4%						0.7%						0.2%						0.3%						0.1%						0.2%						0.1%						0.2%						—%

Significant Methodologies and Assumptions

The Latin America segment establishes liabilities for unpaid losses, which are equal to the accumulation of unpaid reported claims, plus an estimate for claims IBNR.

In general terms, for both the Protection Life and Protection Health products, the methodology for IBNR is the Bornhuetter-Ferguson Method, with factors derived by examining the experience of historical claims. In the more recent incurral months, the credibility is higher on expected loss ratios and lower on claims calculated using the experience-derived factors. The credibility grows for the factors as incurral months become older.

For Protection Health products, claim duration can be very long due to the multiple incidences that may occur over time for a single claim. Depending on the characteristics of the product, the number of claims reported per year may or may not be based on the original claim occurrence date for each individual claim. For Protection Life products, claims are based upon individual death claims.

The assumptions used in calculating the unpaid claims and claim adjustment expenses for Protection Life and Protection Health are updated annually to reflect emerging trends in claim experience.

Certain of the Protection Life customers have experience-rated contracts, whereby the group sponsor participates in the favorable and/or adverse claim experience, including favorable and/or adverse prior year development. Claim experience adjustments on these contracts are not reflected in the foregoing incurred and paid claim development tables, but are instead reflected as an increase (adverse experience) or decrease (favorable experience) to premiums on the consolidated statements of operations.

Liabilities for unpaid claims and claim adjustment expenses were not discounted.

For Protection Life and Protection Health products, claim counts initially include claims that do not ultimately result in a liability. These claims are omitted from the claim counts once it is determined that there is no liability.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid Claims and Claim Adjustment Expenses

The reconciliation of the net incurred and paid claims development tables to the liability for unpaid claims and claims adjustment expenses on the consolidated balance sheet was as follows at:

						December 31, 2023
						(In millions)
Short-Duration:
Unpaid claims and allocated claims adjustment expenses, net of reinsurance:
Group Benefits:
Group Life - Term						$	3,187
Group Long-Term Disability						7,757
Total									$	10,944
Asia - Group Disability & Group Life									1,011
Latin America:
Protection Life						446
Protection Health						196
Total									642
Other insurance lines - all segments combined									1,871
Total unpaid claims and allocated claims adjustment expenses, net of reinsurance									14,468
Reinsurance recoverables on unpaid claims:
Group Benefits:
Group Life - Term						8
Group Long-Term Disability						272
Total									280
Asia - Group Disability & Group Life									475
Latin America:
Protection Life						14
Protection Health						24
Total									38
Other insurance lines - all segments combined									285
Total reinsurance recoverable on unpaid claims									1,078
Total unpaid claims and allocated claims adjustment expense									15,546
Unallocated claims adjustment expenses									—
Discounting									(1,488)
Liability for unpaid claims and claim adjustment liabilities - short-duration									14,058
Liability for unpaid claims and claim adjustment liabilities - all long-duration lines									2,410
Total liability for unpaid claims and claim adjustment expense (included in future policy benefits and other policy-related balances)									$	16,468

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Future Policy Benefits (continued)

Rollforward of Claims and Claim Adjustment Expenses

Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows:

						Years Ended December 31,
						2023						2022						2021
						(In millions)
Balance at January 1,						$	16,098					$	15,598					$	14,698
Less: Reinsurance recoverables						2,452						2,629						1,896
Net balance at January 1,						13,646						12,969						12,802
Incurred related to:
Current year						27,080						26,505						26,903
Prior years (1)						374						668						922
Total incurred						27,454						27,173						27,825
Paid related to:
Current year						(20,220)						(19,917)						(21,027)
Prior years						(7,004)						(6,579)						(6,512)
Total paid						(27,224)						(26,496)						(27,539)
Reclassified to liabilities held-for-sale (2)						—						—						(55)
Dispositions (2)						—						—						(64)
Net balance at December 31,						13,876						13,646						12,969
Add: Reinsurance recoverables						2,592						2,452						2,629
Balance at December 31,						$	16,468					$	16,098					$	15,598

---

(1)For the year ended December 31, 2023, incurred claims and claim adjustment expenses associated with prior years increased due to events incurred in prior years but reported in the current year. For the years ended December 31, 2022 and 2021, incurred claims and claim adjustment expenses include expenses associated with prior years but reported in 2022 and 2021 which contain impacts related to the COVID-19 pandemic, partially offset by additional premiums recorded for experience-rated contracts that are not reflected in the table above.

(2)See Note 3 for information on the Company’s business dispositions.

5. Policyholder Account Balances

The Company establishes liabilities for PABs, which are generally equal to the account value, and which includes accrued interest credited, but excludes the impact of any applicable charge that may be incurred upon surrender.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

The LDTI transition adjustments related to PABs, as described in Note 1, were as follows at the Transition Date:

						Group Benefits Group Life						RIS Capital Markets Investment Products and Stable Value GICs						RIS Annuities and Risk Solutions						Asia Universal and Variable Universal Life						Asia Fixed Annuities						EMEA Variable Annuities						MetLife Holdings Annuities						MetLife Holdings Life and Other						Other						Total
						(In millions)
Balance at December 31, 2020						$	7,586					$	62,908					$	6,250					$	43,868					$	31,422					$	4,777					$	15,727					$	13,129					$	19,509					$	205,176
Reclassification of carrying amounts of contracts and contract features that are market risk benefits						—						—						(24)						—						—						2						(493)						(273)						(170)						(958)
Other balance sheet reclassifications upon adoption of the LDTI standard						—						—						7,417						—						—						—						—						—						102						7,519
Balance at January 1, 2021						$	7,586					$	62,908					$	13,643					$	43,868					$	31,422					$	4,779					$	15,234					$	12,856					$	19,441					$	211,737

The Company’s PABs on the consolidated balance sheets were as follows at:

						December 31, 2023						December 31, 2022
						(In millions)
Group Benefits - Group Life						$	7,692					$	8,028
RIS:
Capital Markets Investment Products and Stable Value GICs						64,140						63,723
Annuities and Risk Solutions						17,711						15,549
Asia:
Universal and Variable Universal Life						49,739						46,417
Fixed Annuities						36,863						32,454
EMEA - Variable Annuities						2,720						2,802
MetLife Holdings:
Annuities						11,537						13,286
Life and Other						11,641						12,402
Other						17,226						15,936
Total						$	219,269					$	210,597

Rollforwards

The following information about the direct and assumed liability for PABs includes year-to-date disaggregated rollforwards. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business. Policy charges presented in each disaggregated rollforward reflect a premium and/or assessment based on the account balance.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

Group Benefits

Group Life

The Group Benefits segment’s group life PABs predominantly consist of retained asset accounts, universal life products, and the fixed account of variable life insurance products. Information regarding this liability was as follows:

						Years Ended December 31,
						2023						2022						2021
						(Dollars in millions)
Balance at January 1,						$	8,028					$	7,893					$	7,586
Deposits						3,311						3,361						3,450
Policy charges						(635)						(612)						(589)
Surrenders and withdrawals						(3,192)						(2,744)						(2,670)
Benefit payments						(12)						(10)						(9)
Net transfers from (to) separate accounts						—						(2)						(1)
Interest credited						192						142						126
Balance at December 31,						$	7,692					$	8,028					$	7,893
Weighted-average annual crediting rate						2.5 %						1.8 %						1.6 %
At period end:
Cash surrender value						$	7,630					$	7,974					$	7,840
Net amount at risk, excluding offsets from reinsurance:
In the event of death (1)						$	250,033					$	244,638					$	238,062

---

(1)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

The Group Benefits segment’s group life product account values by range of guaranteed minimum crediting rates (“GMCR”) and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
December 31, 2023
Equal to or greater than 0% but less than 2%						$	—					$	86					$	863					$	4,558					$	5,507
Equal to or greater than 2% but less than 4%						1,196						9						62						2						1,269
Equal to or greater than 4%						727						1						43						34						805
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						111
Total						$	1,923					$	96					$	968					$	4,594					$	7,692
December 31, 2022
Equal to or greater than 0% but less than 2%						$	—					$	973					$	4,471					$	236					$	5,680
Equal to or greater than 2% but less than 4%						1,303						52						21						—						1,376
Equal to or greater than 4%						803						1						11						30						845
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						127
Total						$	2,106					$	1,026					$	4,503					$	266					$	8,028
December 31, 2021
Equal to or greater than 0% but less than 2%						$	5,229					$	135					$	—					$	131					$	5,495
Equal to or greater than 2% but less than 4%						1,374						50						23						—						1,447
Equal to or greater than 4%						793						—						—						29						822
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						129
Total						$	7,396					$	185					$	23					$	160					$	7,893

RIS

Capital Markets Investment Products and Stable Value GICs

The RIS segment’s capital markets investment products and stable value GICs in PABs are investment-type products, mainly funding agreements.

In addition, certain subsidiaries of the Company have entered into funding agreements with FHLBNY and a subsidiary of the Federal Agricultural Mortgage Corporation, a federally chartered instrumentality of the U.S. (“Farmer Mac”). The PAB balances for FHLBNY funding agreements were $14.6 billion and $14.9 billion at December 31, 2023 and 2022, respectively. These advances are collateralized by residential mortgage-backed securities (“RMBS”) with an estimated fair value of $17.8 billion and $17.9 billion at December 31, 2023 and 2022, respectively. The applicable subsidiary of the Company is permitted to withdraw any portion of the collateral in the custody of FHLBNY 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 such subsidiary, FHLBNY’s recovery on the collateral is limited to the amount of such subsidiary’s liability to FHLBNY. The PAB balances for the Farmer Mac funding agreements were $2.1 billion at both December 31, 2023 and 2022. The obligations under the Farmer Mac funding agreements are secured by a pledge of certain eligible agricultural mortgage loans and may, under certain circumstances, be secured by other qualified collateral. The carrying value of such collateral was $2.2 billion and $2.1 billion at December 31, 2023 and 2022, respectively.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

Information regarding the RIS segment’s capital markets investment products and stable value GICs in PABs was as follows:

						Years Ended December 31,
						2023						2022						2021
						(Dollars in millions)
Balance at January 1,						$	63,723					$	62,521					$	62,908
Deposits						69,229						81,050						76,672
Surrenders and withdrawals						(71,938)						(80,382)						(77,524)
Interest credited						2,091						1,276						914
Effect of foreign currency translation and other, net						1,035						(742)						(449)
Balance at December 31,						$	64,140					$	63,723					$	62,521
Weighted-average annual crediting rate						3.3 %						2.0 %						1.5 %
Cash surrender value at period end						$	2,126					$	2,071					$	1,882

The RIS segment’s capital markets investment products and stable value GICs account values by range of GMCR and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
December 31, 2023
Equal to or greater than 0% but less than 2%						$	—					$	—					$	1					$	2,621					$	2,622
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						61,518
Total						$	—					$	—					$	1					$	2,621					$	64,140
December 31, 2022
Equal to or greater than 0% but less than 2%						$	—					$	—					$	1					$	3,553					$	3,554
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						60,169
Total						$	—					$	—					$	1					$	3,553					$	63,723
December 31, 2021
Equal to or greater than 0% but less than 2%						$	—					$	632					$	4,142					$	10					$	4,784
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						57,737
Total						$	—					$	632					$	4,142					$	10					$	62,521

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

Annuities and Risk Solutions

The RIS segment’s annuities and risk solutions PABs include certain structured settlements and institutional income annuities, and benefit funding solutions that include postretirement benefits and company-, bank- or trust-owned life insurance used to finance nonqualified benefit programs for executives. Information regarding this liability was as follows:

						Years Ended December 31,
						2023						2022						2021
						(Dollars in millions)
Balance at January 1,						$	15,549					$	14,431					$	13,643
Deposits						2,734						1,843						1,615
Policy charges						(178)						(153)						(126)
Surrenders and withdrawals						(210)						(120)						(442)
Benefit payments						(812)						(739)						(704)
Net transfers from (to) separate accounts						53						(26)						11
Interest credited						637						543						517
Other						(62)						(230)						(83)
Balance at December 31,						$	17,711					$	15,549					$	14,431
Weighted-average annual crediting rate						3.9 %						3.7 %						3.8 %
At period end:
Cash surrender value						$	7,912					$	7,331					$	6,559
Net amount at risk, excluding offsets from ceded reinsurance:
In the event of death (1)						$	40,397					$	40,607					$	38,066

---

(1)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

The RIS segment’s annuities and risk solutions account values by range of GMCR and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
December 31, 2023
Equal to or greater than 0% but less than 2%						$	—					$	—					$	20					$	1,651					$	1,671
Equal to or greater than 2% but less than 4%						249						34						105						432						820
Equal to or greater than 4%						4,346						—						282						5						4,633
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						10,587
Total						$	4,595					$	34					$	407					$	2,088					$	17,711
December 31, 2022
Equal to or greater than 0% but less than 2%						$	—					$	—					$	64					$	1,232					$	1,296
Equal to or greater than 2% but less than 4%						301						39						124						375						839
Equal to or greater than 4%						4,446						122						63						4						4,635
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						8,779
Total						$	4,747					$	161					$	251					$	1,611					$	15,549
December 31, 2021
Equal to or greater than 0% but less than 2%						$	—					$	—					$	115					$	490					$	605
Equal to or greater than 2% but less than 4%						258						36						125						469						888
Equal to or greater than 4%						4,435						126						54						5						4,620
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						8,318
Total						$	4,693					$	162					$	294					$	964					$	14,431

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

Asia

Universal and Variable Universal Life

The Asia segment’s universal and variable universal life PABs in Japan primarily include interest sensitive whole life products. Information regarding this liability was as follows:

						Years Ended December 31,
						2023						2022						2021
						(Dollars in millions)
Balance at January 1,						$	46,417					$	46,590					$	43,868
Deposits						7,595						5,673						6,487
Policy charges						(1,210)						(1,103)						(1,178)
Surrenders and withdrawals						(2,959)						(2,993)						(1,265)
Benefit payments						(508)						(502)						(514)
Interest credited						1,408						1,066						1,199
Effect of foreign currency translation and other, net						(1,004)						(2,314)						(2,007)
Balance at December 31,						$	49,739					$	46,417					$	46,590
Weighted-average annual crediting rate						3.0 %						2.3 %						2.7 %
At period end:
Cash surrender value						$	42,577					$	39,737					$	43,329
Net amount at risk, excluding offsets from reinsurance:
In the event of death (1)						$	93,172					$	95,412					$	104,551

---

(1)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

The Asia segment’s universal and variable universal life account values by range of GMCR and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
December 31, 2023
Equal to or greater than 0% but less than 2%						$	10,640					$	24					$	231					$	1,001					$	11,896
Equal to or greater than 2% but less than 4%						5,932						15,634						7,801						7,669						37,036
Equal to or greater than 4%						250						—						—						—						250
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						557
Total						$	16,822					$	15,658					$	8,032					$	8,670					$	49,739
December 31, 2022
Equal to or greater than 0% but less than 2%						$	10,965					$	76					$	138					$	75					$	11,254
Equal to or greater than 2% but less than 4%						21,184						2,847						5,583						4,846						34,460
Equal to or greater than 4%						265						—						—						—						265
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						438
Total						$	32,414					$	2,923					$	5,721					$	4,921					$	46,417
December 31, 2021
Equal to or greater than 0% but less than 2%						$	11,754					$	152					$	—					$	—					$	11,906
Equal to or greater than 2% but less than 4%						21,672						2,625						5,160						4,517						33,974
Equal to or greater than 4%						282						—						—						—						282
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						428
Total						$	33,708					$	2,777					$	5,160					$	4,517					$	46,590

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

Fixed Annuities

Information regarding the Asia segment’s fixed annuity PABs in Japan was as follows:

						Years Ended December 31,
						2023						2022						2021
						(Dollars in millions)
Balance at January 1,						$	32,454					$	30,976					$	31,422
Deposits						8,115						7,813						3,681
Policy charges						(2)						(2)						(3)
Surrenders and withdrawals						(2,344)						(4,024)						(1,260)
Benefit payments						(2,156)						(2,014)						(2,500)
Interest credited						866						623						617
Effect of foreign currency translation and other, net						(70)						(918)						(981)
Balance at December 31,						$	36,863					$	32,454					$	30,976
Weighted-average annual crediting rate						2.5 %						2.0 %						2.0 %
At period end:
Cash surrender value						$	31,936					$	27,902					$	29,835
Net amount at risk, excluding offsets from reinsurance:
In the event of death (1)						$	73					$	1					$	64

---

(1)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

The Asia segment’s fixed annuities account values by range of GMCR and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
December 31, 2023
Equal to or greater than 0% but less than 2%						$	322					$	584					$	6,274					$	28,343					$	35,523
Equal to or greater than 2% but less than 4%						—						5						—						—						5
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						1,335
Total						$	322					$	589					$	6,274					$	28,343					$	36,863
December 31, 2022
Equal to or greater than 0% but less than 2%						$	438					$	664					$	7,160					$	22,755					$	31,017
Equal to or greater than 2% but less than 4%						—						6						—						—						6
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						1,431
Total						$	438					$	670					$	7,160					$	22,755					$	32,454
December 31, 2021
Equal to or greater than 0% but less than 2%						$	264					$	1,153					$	8,100					$	19,817					$	29,334
Equal to or greater than 2% but less than 4%						8						—						—						—						8
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						1,634
Total						$	272					$	1,153					$	8,100					$	19,817					$	30,976

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

EMEA

Variable Annuities

Information regarding the EMEA segment’s variable annuity PABs in the United Kingdom (“U.K.”) was as follows:

						Years Ended December 31,
						2023						2022						2021
						(Dollars in millions)
Balance at January 1,						$	2,802					$	4,215					$	4,779
Deposits						4						5						8
Policy charges						(63)						(73)						(95)
Surrenders and withdrawals						(285)						(313)						(483)
Benefit payments						(125)						(137)						(157)
Interest credited (1)						228						(465)						208
Effect of foreign currency translation and other, net						159						(430)						(45)
Balance at December 31,						$	2,720					$	2,802					$	4,215
Weighted-average annual crediting rate						8.6 %						(12.4) %						4.7 %
At period end:
Cash surrender value						$	2,720					$	2,802					$	4,215
Net amount at risk, excluding offsets from reinsurance:
In the event of death (2)						$	456					$	557					$	182
At annuitization or exercise of other living benefits (3)						$	585					$	699					$	257

---

(1)Interest credited on EMEA’s variable annuity products represents gains or losses which are passed through to the policyholder based on the underlying unit-linked investment fund returns, which may be positive or negative depending on market conditions. There are no GMCR on these products.

(2)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

(3)For benefits that are payable in the event of annuitization or exercise of other living benefits, the net amount at risk is generally defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates or to provide other living benefits. This amount represents the Company’s potential economic exposure in the event all contractholders were to annuitize or to exercise other living benefits at the balance sheet date.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

MetLife Holdings

Annuities

The MetLife Holdings segment’s annuity PABs primarily includes fixed deferred annuities, the fixed account portion of variable annuities, certain income annuities, and embedded derivatives related to equity-indexed annuities. Information regarding this liability was as follows:

						Years Ended December 31,
						2023						2022						2021
						(Dollars in millions)
Balance at January 1,						$	13,286					$	14,398					$	15,234
Deposits						176						233						284
Policy charges						(15)						(16)						(16)
Surrenders and withdrawals						(1,981)						(1,494)						(1,380)
Benefit payments						(420)						(415)						(413)
Net transfers from (to) separate accounts						72						198						237
Interest credited						396						406						425
Other						23						(24)						27
Balance at December 31,						$	11,537					$	13,286					$	14,398
Weighted-average annual crediting rate						3.3 %						3.0 %						3.0 %
At period end:
Cash surrender value						$	10,904					$	12,373					$	13,256
Net amount at risk, excluding offsets from ceded reinsurance (1):
In the event of death (2)						$	2,821					$	4,354					$	1,119
At annuitization or exercise of other living benefits (3)						$	688					$	960					$	581

---

(1)Includes amounts for certain variable annuities recorded as PABs with the related guarantees recorded as MRBs which are disclosed in “MetLife Holdings – Annuities” in Note 6.

(2)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

(3)For benefits that are payable in the event of annuitization or exercise of other living benefits, the net amount at risk is generally defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates or to provide other living benefits. This amount represents the Company’s potential economic exposure in the event all contractholders were to annuitize or to exercise other living benefits at the balance sheet date.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

The MetLife Holdings segment’s annuities account values by range of GMCR and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
December 31, 2023
Equal to or greater than 0% but less than 2%						$	36					$	307					$	378					$	252					$	973
Equal to or greater than 2% but less than 4%						1,033						7,205						459						202						8,899
Equal to or greater than 4%						788						411						32						—						1,231
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						434
Total						$	1,857					$	7,923					$	869					$	454					$	11,537
December 31, 2022
Equal to or greater than 0% but less than 2%						$	934					$	4					$	8					$	16					$	962
Equal to or greater than 2% but less than 4%						9,388						892						191						12						10,483
Equal to or greater than 4%						1,261						43						5						—						1,309
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						532
Total						$	11,583					$	939					$	204					$	28					$	13,286
December 31, 2021
Equal to or greater than 0% but less than 2%						$	1,066					$	7					$	14					$	11					$	1,098
Equal to or greater than 2% but less than 4%						10,679						299						197						1						11,176
Equal to or greater than 4%						1,307						40						5						—						1,352
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						772
Total						$	13,052					$	346					$	216					$	12					$	14,398

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

Life and Other

The MetLife Holdings segment’s life and other PABs include retained asset accounts, universal life products, the fixed account of variable life insurance products and funding agreements. Information regarding this liability was as follows:

						Years Ended December 31,
						2023						2022						2021
						(Dollars in millions)
Balance at January 1,						$	12,402					$	12,699					$	12,856
Deposits						783						895						1,172
Policy charges						(702)						(718)						(731)
Surrenders and withdrawals						(1,171)						(785)						(887)
Benefit payments						(152)						(183)						(213)
Net transfers from (to) separate accounts						35						29						32
Interest credited						445						460						470
Other						1						5						—
Balance at December 31,						$	11,641					$	12,402					$	12,699
Weighted-average annual crediting rate						3.8 %						3.7 %						3.8 %
At period end:
Cash surrender value						$	11,177					$	11,882					$	12,170
Net amount at risk, excluding offsets from ceded reinsurance:
In the event of death (1), (2)						$	67,786					$	71,548					$	73,840

---

(1)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

(2)Taking into consideration reinsurance, the net amount at risk at December 31, 2023, 2022 and 2021 as presented in the above table, would be reduced by 99%, 65%, and 66%, respectively.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

5. Policyholder Account Balances (continued)

The MetLife Holdings segment’s life and other products account values by range of GMCR and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
December 31, 2023
Equal to or greater than 0% but less than 2%						$	—					$	—					$	16					$	55					$	71
Equal to or greater than 2% but less than 4%						4,453						171						280						549						5,453
Equal to or greater than 4%						5,066						124						413						13						5,616
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						501
Total						$	9,519					$	295					$	709					$	617					$	11,641
December 31, 2022
Equal to or greater than 0% but less than 2%						$	—					$	20					$	50					$	5					$	75
Equal to or greater than 2% but less than 4%						5,025						144						441						410						6,020
Equal to or greater than 4%						5,253						128						420						5						5,806
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						501
Total						$	10,278					$	292					$	911					$	420					$	12,402
December 31, 2021
Equal to or greater than 0% but less than 2%						$	26					$	8					$	—					$	—					$	34
Equal to or greater than 2% but less than 4%						5,122						145						313						571						6,151
Equal to or greater than 4%						5,448						132						427						6						6,013
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						501
Total						$	10,596					$	285					$	740					$	577					$	12,699

6. Market Risk Benefits

The Company establishes liabilities for certain retirement assurance and variable annuity contract features which include a minimum benefit guarantee that provides to the contractholder a minimum return based on their initial deposit less withdrawals. In some cases, the benefit base may be increased by additional deposits, bonus amounts, accruals or optional market value resets.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

6. Market Risk Benefits (continued)

The LDTI transition adjustments related to MRB liabilities, as described in Note 1, were as follows at the Transition Date:

						Asia Retirement Assurance						MetLife Holdings Annuities						Other						Total
						(In millions)
Direct and assumed MRB liabilities at December 31, 2020						$	—					$	—					$	—					$	—
Reclassification of carrying amounts of contracts and contract features that are market risk benefits						247						2,291						251						2,789
Adjustments for the cumulative effect of changes in nonperformance risk between contract issue date and Transition Date						(7)						(54)						(38)						(99)
Adjustments for the difference between the fair value of the MRB balance, excluding the cumulative effect of changes in nonperformance risk, and the historical carrying value						78						4,764						369						5,211
Direct and assumed MRB liabilities at January 1, 2021						$	318					$	7,001					$	582					$	7,901
Reinsured MRB assets at December 31, 2020						$	—					$	—					$	—					$	—
Reclassification of carrying amounts of contracts and contract features that are market risk benefits						—						—						63						63
Adjustments for the difference between previous carrying amounts and fair value measurements						—						—						(12)						$	(12)
Reinsured MRB assets at January 1, 2021 (1)						$	—					$	—					$	51					$	51

---

(1)Reinsured MRB assets are classified within premiums, reinsurance and other receivables on the consolidated balance sheets.

The Company’s MRB assets and MRB liabilities on the consolidated balance sheets were as follows at:

						December 31,
						2023																		2022
						Asset						Liability						Net						Asset						Liability						Net
						(In millions)
Asia - Retirement Assurance						$	—					$	203					$	203					$	—					$	226					$	226
MetLife Holdings - Annuities						156						2,878						2,722						153						3,378						3,225
Other						130						98						(32)						127						159						32
Total						$	286					$	3,179					$	2,893					$	280					$	3,763					$	3,483

Rollforwards

The following information about the direct and assumed liability for MRBs includes disaggregated rollforwards. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business.

Asia - Retirement Assurance

The Asia segment’s retirement assurance product in Japan offers a contract feature where the Company guarantees the greater of the account value or a return of premium accumulated at a guaranteed rate upon maturity. Information regarding this liability was as follows:

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

6. Market Risk Benefits (continued)

						Years Ended December 31,
						2023						2022						2021
						(In millions)
Balance at January 1,						$	226					$	277					$	318
Balance, beginning of period, before effect of cumulative changes in the instrument-specific credit risk						$	233					$	284					$	326
Attributed fees collected						3						3						4
Benefit payments						(12)						—						(7)
Effect of changes in interest rates						1						(25)						(6)
Effect of changes in equity index volatility						—						—						(3)
Actual policyholder behavior different from expected behavior						(1)						6						(16)
Effect of changes in future expected policyholder behavior and other assumptions						(1)						5						—
Effect of foreign currency translation and other, net						(18)						(40)						(14)
Balance, end of period, before the cumulative effect of changes in the instrument-specific credit risk						205						233						284
Cumulative effect of changes in the instrument-specific credit risk						(2)						(8)						(8)
Effect of foreign currency translation on the cumulative instrument-specific credit risk						—						1						1
Balance at December 31,						$	203					$	226					$	277
At period end:
Net amount at risk, excluding offsets from hedging:
At annuitization or exercise of other living benefits (1)						$	119					$	127					$	119
Weighted-average attained age of contractholders:
At annuitization or exercise of other living benefits (1)						58 years						58 years						57 years

---

(1) For benefits that are payable in the event of annuitization or exercise of other living benefits, the net amount at risk is generally defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates or to provide other living benefits. This amount represents the Company’s potential economic exposure in the event all contractholders were to annuitize or to exercise other living benefits at the balance sheet date.

Significant Methodologies and Assumptions

The Company issues certain retirement assurance products with guarantees that meet the definition of MRBs, which are measured, in aggregate, as one compound MRB, at estimated fair value, with changes in estimated fair value reported in net income, except for changes in nonperformance risk of the Company which are recorded in OCI.

The Company calculates the fair value of these MRBs, which is estimated as the present value of projected future benefits minus the present value of projected attributed fees, using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, projecting future cash flows from the MRB over multiple risk neutral stochastic scenarios using observable risk-free rates.

Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. See Note 13 for additional information on significant unobservable inputs.

The valuation of these MRBs includes a nonperformance risk adjustment and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries as compared to MetLife, Inc.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

6. Market Risk Benefits (continued)

Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions at annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees.

These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, impact the estimated fair value of the guarantees and affect net income, and changes in nonperformance risk of the Company affect OCI.

MetLife Holdings - Annuities

The MetLife Holdings segment’s variable annuity products offer contract features where the Company guarantees to the contractholder a minimum benefit, which includes guaranteed minimum death benefits (“GMDBs”) and living benefit guarantees. The GMDB contract features include return of premium, which provides a return of the purchase payment upon death, annual step-up and roll-up and step-up combinations. The living benefit guarantees contract features primarily include guaranteed minimum income benefits (“GMIBs”), which provide a minimum accumulation of purchase payments that can be annuitized to receive a monthly income stream, and guaranteed minimum withdrawal benefits (“GMWBs”), which provide a series of withdrawals, provided that withdrawals in a contract year do not exceed a contractual limit. This segment also includes an in-force block of assumed variable annuity guarantees from a third party. Information regarding MetLife Holdings annuity products (including assumed reinsurance) was as follows:

						Years Ended December 31,
						2023						2022						2021
						(In millions)
Balance at January 1,						$	3,225					$	5,929					$	7,001
Balance, beginning of period, before effect of cumulative changes in the instrument-specific credit risk						$	3,360					$	6,229					$	7,055
Attributed fees collected						377						387						413
Benefit payments						(58)						(42)						(41)
Effect of changes in interest rates						(161)						(3,610)						(536)
Effect of changes in capital markets						(900)						861						(1,163)
Effect of changes in equity index volatility						(135)						38						25
Actual policyholder behavior different from expected behavior						144						20						(92)
Effect of changes in future expected policyholder behavior and other assumptions (1)						9						(328)						563
Effect of foreign currency translation and other, net (2)						152						36						350
Effect of changes in risk margin						(16)						(231)						(345)
Balance, end of period, before the cumulative effect of changes in the instrument-specific credit risk						2,772						3,360						6,229
Cumulative effect of changes in the instrument-specific credit risk						(54)						(130)						(304)
Effect of foreign currency translation on the cumulative instrument-specific credit risk						4						(5)						4
Balance at December 31,						$	2,722					$	3,225					$	5,929
At period end:
Net amount at risk, excluding offsets from hedging (3):
In the event of death (4)						$	2,828					$	4,387					$	1,131
At annuitization or exercise of other living benefits (5)						$	675					$	1,141					$	565
Weighted-average attained age of contractholders:
In the event of death (4)						70 years						69 years						70 years
At annuitization or exercise of other living benefits (5)						70 years						71 years						68 years

---

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

6. Market Risk Benefits (continued)

(1) For the year ended December 31, 2022, the effect of changes in future expected policyholder behavior and other assumptions was primarily driven by changes in policyholder behavior assumptions relating to projected annuitizations for variable annuities.

(2) Included is the covariance impact from aggregating the market observable inputs, mostly driven by interest rate and capital market volatility.

(3) Includes amounts for certain variable annuities guarantees recorded as MRBs on contracts also recorded as PABs which are disclosed in “MetLife Holdings – Annuities” in Note 5.

(4) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

(5) For benefits that are payable in the event of annuitization or exercise of other living benefits, the net amount at risk is generally defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates or to provide other living benefits. This amount represents the Company’s potential economic exposure in the event all contractholders were to annuitize or to exercise other living benefits at the balance sheet date.

Significant Methodologies and Assumptions

The Company issues GMDBs, GMWBs, guaranteed minimum accumulation benefits (“GMABs”) and GMIBs that typically meet the definition of MRBs, which are measured, in aggregate, as one compound MRB, at estimated fair value separately from the variable annuity contract, with changes in estimated fair value reported in net income, except for changes in nonperformance risk of the Company which are recorded in OCI.

The Company calculates the fair value of these MRBs, which is estimated as the present value of projected future benefits minus the present value of projected attributed fees, using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, projecting future cash flows from the MRB over multiple risk neutral stochastic scenarios using observable risk-free rates.

Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. See Note 13 for additional information on significant unobservable inputs.

The valuation of these MRBs includes a nonperformance risk adjustment and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries as compared to MetLife, Inc.

Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions at annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees.

These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, impact the estimated fair value of the guarantees and affect net income, and changes in nonperformance risk of the Company affect OCI.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

6. Market Risk Benefits (continued)

Other

In addition to the disaggregated MRB product rollforwards above, the Company offers other products with guaranteed minimum benefit features across various segments. These MRBs are measured at estimated fair value, with changes in estimated fair value reported in net income, except for changes in nonperformance risk of the Company which are recorded in OCI. See Note 13 for additional information on significant unobservable inputs used in the fair value measurement of MRBs. Information regarding these product liabilities was as follows:

						Years Ended December 31,
						2023						2022						2021
						(In millions)
Balance at January 1,						$	32					$	491					$	582
Balance, beginning of period, before effect of cumulative changes in the instrument-specific credit risk						$	24					$	539					$	619
Attributed fees collected						34						61						72
Benefit payments						(28)						(4)						(2)
Effect of changes in interest rates						(3)						(499)						(227)
Effect of changes in capital markets						(41)						139						(110)
Effect of changes in equity index volatility						(6)						31						4
Actual policyholder behavior different from expected behavior						(22)						(12)						29
Effect of changes in future expected policyholder behavior and other assumptions						2						(1)						56
Effect of foreign currency translation and other, net						(9)						(224)						100
Effect of changes in risk margin						(1)						(6)						(2)
Balance, end of period, before the cumulative effect of changes in the instrument-specific credit risk						(50)						24						539
Cumulative effect of changes in the instrument-specific credit risk						17						7						(49)
Effect of foreign currency translation on the cumulative instrument-specific credit risk						1						1						1
Net balance at December 31,						(32)						32						491
Less: Reinsurance recoverable						18						23						33
Balance at December 31,						$	(50)					$	9					$	458

7. Separate Accounts

Separate account assets consist of investment accounts established and maintained by the Company. The investment objectives of these assets are directed by the contractholder. An equivalent amount is reported as separate account liabilities. These accounts are reported separately from the general account assets and liabilities.

Separate account assets and liabilities include two categories of account types: pass-through separate accounts totaling $115.6 billion and $108.9 billion at December 31, 2023 and 2022, respectively, for which the contractholder assumes all investment risk, and separate accounts for which the Company contractually guarantees either a minimum return or account value to the contractholder which totaled $29.0 billion and $37.1 billion at December 31, 2023 and 2022, respectively. The latter category consisted primarily of GICs. The average interest rate credited on these contracts was 2.6% and 2.5% at December 31, 2023 and 2022, respectively.

Separate Account Liabilities

The Company’s separate account liabilities on the consolidated balance sheets were as follows at:

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

7. Separate Accounts (continued)

			December 31, 2023						December 31, 2022
			(In millions)
RIS:
Stable Value and Risk Solutions			$	41,343					$	48,265
Annuities			11,659						11,694
Latin America - Pensions			41,320						39,428
MetLife Holdings - Annuities			29,224						28,499
Other			21,088						18,152
Total			$	144,634					$	146,038

Rollforwards

The following information about the separate account liabilities includes disaggregated rollforwards. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business.

The separate account liabilities are primarily comprised of the following: RIS stable value and risk solutions contracts, RIS annuities participating and non-participating group contracts, Latin America savings-oriented pension product in Chile under a mandatory privatized social security system, and MetLife Holdings variable annuities.

The balances of and changes in separate account liabilities were as follows:

						RIS Stable Value and Risk Solutions						RIS Annuities						Latin America Pensions						MetLife Holdings Annuities
						(In millions)
Balance, January 1, 2021						$	62,150					$	21,895					$	50,075					$	40,825
Premiums and deposits						3,676						944						6,251						298
Policy charges						(302)						(35)						(228)						(789)
Surrenders and withdrawals						(8,170)						(2,457)						(4,432)						(4,461)
Benefit payments						(142)						—						(6,410)						(500)
Investment performance						833						1,189						825						5,037
Net transfers from (to) general account						(41)						30						—						(237)
Effect of foreign currency translation and other, net						469						(274)						(8,450)						—
Balance, December 31, 2021						$	58,473					$	21,292					$	37,631					$	40,173
Premiums and deposits						5,253						1,233						7,058						267
Policy charges						(309)						(25)						(253)						(665)
Surrenders and withdrawals						(5,885)						(7,481)						(5,155)						(2,911)
Benefit payments						(125)						—						(1,559)						(431)
Investment performance						(4,503)						(2,823)						1,490						(7,738)
Net transfers from (to) general account						82						(56)						—						(199)
Effect of foreign currency translation and other, net (1)						(4,721)						(446)						216						3
Balance, December 31, 2022						$	48,265					$	11,694					$	39,428					$	28,499
Premiums and deposits						2,203						175						7,936						256
Policy charges						(285)						(21)						(287)						(609)
Surrenders and withdrawals						(11,123)						(944)						(5,781)						(2,948)
Benefit payments						(99)						—						(1,702)						(464)
Investment performance						2,595						774						2,814						4,561
Net transfers from (to) general account						(56)						3						—						(74)
Effect of foreign currency translation and other, net						(157)						(22)						(1,088)						3
Balance, December 31, 2023						$	41,343					$	11,659					$	41,320					$	29,224
Cash surrender value at December 31, 2021 (2)						$	48,276					N/A						$	37,631					$	39,932
Cash surrender value at December 31, 2022 (2)						$	42,728					N/A						$	39,428					$	28,348
Cash surrender value at December 31, 2023 (2)						$	35,950					N/A						$	41,320					$	29,078

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

7. Separate Accounts (continued)

---

(1)The effect of foreign currency translation and other, net for RIS stable value and risk solutions primarily includes changes related to unsettled trades of mortgage-backed securities.

(2)Cash surrender value represents the amount of the contractholders’ account balances distributable at the balance sheet date less policy loans and certain surrender charges.

Separate Account Assets

The Company’s aggregate fair value of assets, by major investment asset category, supporting separate account liabilities was as follows at:

						December 31, 2023
						Group Benefits						RIS						Asia						Latin America						EMEA						MetLife Holdings						Total
						(In millions)
Fixed maturity securities:
Bonds:
Foreign government						$	—					$	509					$	1,190					$	1,051					$	2,638					$	—					$	5,388
U.S. government and agency						—						9,673						—						9,920						—						18						19,611
Public utilities						—						1,077						308						—						—						4						1,389
Municipals						—						380						31						—						—						13						424
Corporate bonds:
Materials						—						144						—						—						—						—						144
Communications						—						893						8						—						—						3						904
Consumer						—						1,882						39						—						—						8						1,929
Energy						—						911						105						—						—						2						1,018
Financial						—						2,717						551						6,006						398						15						9,687
Industrial and other						—						764						38						3,598						—						3						4,403
Technology						—						547						—						—						—						3						550
Foreign						—						1,920						—						3,095						27						13						5,055
Total corporate bonds						—						9,778						741						12,699						425						47						23,690
Total bonds						—						21,417						2,270						23,670						3,063						82						50,502
Mortgage-backed securities						—						9,671						—						—						—						35						9,706
Asset-backed securities and collateralized loan obligations						—						2,557						18						—						—						11						2,586
Redeemable preferred stock						—						9						—						—						—						—						9
Total fixed maturity securities						—						33,654						2,288						23,670						3,063						128						62,803
Equity securities:
Common stock:
Industrial, miscellaneous and all other						—						2,411						2,661						2,453						677						—						8,202
Banks, trust and insurance companies						—						731						269						392						341						—						1,733
Public utilities						—						67						19						—						72						—						158
Non-redeemable preferred stock						—						—						115						—						—						—						115
Mutual funds						1,159						8,517						2,929						10,099						109						35,418						58,231
Total equity securities						1,159						11,726						5,993						12,944						1,199						35,418						68,439
Other invested assets						—						1,620						403						4,212						30						—						6,265
Total investments						1,159						47,000						8,684						40,826						4,292						35,546						137,507
Other assets						—						6,093						503						494						35						2						7,127
Total						$	1,159					$	53,093					$	9,187					$	41,320					$	4,327					$	35,548					$	144,634

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

7. Separate Accounts (continued)

						December 31, 2022
						Group Benefits (1)						RIS (1)						Asia						Latin America						EMEA						MetLife Holdings						Total
						(In millions)
Fixed maturity securities:
Bonds:
Foreign government						$	—					$	588					$	1,047					$	593					$	1,988					$	—					$	4,216
U.S. government and agency						—						11,340						—						8,828						—						13						20,181
Public utilities						—						1,183						281						—						—						4						1,468
Municipals						—						504						33						—						—						12						549
Corporate bonds:
Materials						—						242						—						—						—						—						242
Communications						—						1,182						8						—						—						3						1,193
Consumer						—						2,393						—						—						—						7						2,400
Energy						—						866						103						—						—						1						970
Financial						—						3,538						527						7,389						444						16						11,914
Industrial and other						—						882						186						3,635						—						3						4,706
Technology						—						717						—						—						—						3						720
Foreign						—						2,473						—						4,018						21						12						6,524
Total corporate bonds						—						12,293						824						15,042						465						45						28,669
Total bonds						—						25,908						2,185						24,463						2,453						74						55,083
Mortgage-backed securities						—						12,328						—						—						—						32						12,360
Asset-backed securities and collateralized loan obligations						—						2,926						28						—						—						14						2,968
Redeemable preferred stock						—						4						—						—						—						—						4
Total fixed maturity securities						—						41,166						2,213						24,463						2,453						120						70,415
Equity securities:
Common stock:
Industrial, miscellaneous and all other						—						2,910						2,330						2,100						475						—						7,815
Banks, trust and insurance companies						—						599						270						347						188						—						1,404
Public utilities						—						96						27						—						45						—						168
Non-redeemable preferred stock						—						2						—						—						—						—						2
Mutual funds						988						7,259						2,607						8,639						75						33,848						53,416
Total equity securities						988						10,866						5,234						11,086						783						33,848						62,805
Other invested assets						2						1,863						411						3,687						43						—						6,006
Total investments						990						53,895						7,858						39,236						3,279						33,968						139,226
Other assets						—						6,145						434						192						35						6						6,812
Total						$	990					$	60,040					$	8,292					$	39,428					$	3,314					$	33,974					$	146,038

---

(1)See Note 2 for information on the reorganization of the Company’s segments.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

8. Deferred Policy Acquisition Costs, Value of Business Acquired, Unearned Revenue and Other Intangibles

The transition adjustments related to DAC, VOBA, UREV and negative VOBA, as described in Note 1, were as follows at the Transition Date:

			Group Benefits (1)						RIS (1)						Asia						Latin America						EMEA						MetLife Holdings						Corporate & Other						Total
			(In millions)
DAC:
Balance at December 31, 2020			$	279					$	130					$	7,432					$	1,344					$	1,551					$	2,679					$	31					$	13,446
Removal of related amounts in AOCI			—						—						2,309						50						—						1,621						—						3,980
Other adjustments upon adoption of the LDTI standard			—						—						—						—						14						11						—						25
Balance at January 1, 2021			$	279					$	130					$	9,741					$	1,394					$	1,565					$	4,311					$	31					$	17,451
VOBA:
Balance at December 31, 2020			$	—					$	25					$	1,901					$	748					$	236					$	33					$	—					$	2,943
Removal of related amounts in AOCI			—						—						14						8						—						5						—						27
Other adjustments upon adoption of the LDTI standard			—						—						—						—						(4)						—						—						(4)
Balance at January 1, 2021			$	—					$	25					$	1,915					$	756					$	232					$	38					$	—					$	2,966
UREV:
Balance at December 31, 2020			$	—					$	42					$	587					$	740					$	556					$	188					$	—					$	2,113
Removal of related amounts in AOCI			—						—						1,029						95						(81)						—						—						1,043
Other adjustments upon adoption of the LDTI standard			—						—						—						—						7						—						—						7
Balance at January 1, 2021			$	—					$	42					$	1,616					$	835					$	482					$	188					$	—					$	3,163
Negative VOBA:
Balance at December 31, 2020																																													$	738
Reclassification of carrying amounts of contracts and contract features that are market risk benefits																																													(72)
Balance at January 1, 2021																																													$	666

---

(1)See Note 2 for information on the reorganization of the Company’s segments.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

8. Deferred Policy Acquisition Costs, Value of Business Acquired, Unearned Revenue and Other Intangibles (continued)

DAC and VOBA

Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at:

			Group Benefits (1)						RIS (1)						Asia (2)						Latin America (3)						EMEA (3)						MetLife Holdings (4)						Corporate & Other						Total
			(In millions)
DAC:
Balance at January 1, 2021			$	279					$	130					$	9,741					$	1,394					$	1,565					$	4,311					$	31					$	17,451
Capitalizations (5)			19						95						1,601						406						499						31						100						2,751
Amortization (5)			(26)						(34)						(655)						(311)						(360)						(313)						(107)						(1,806)
Effect of foreign currency translation and other, net (5)			—						—						(629)						(128)						(129)						—						8						(878)
Reclassified to assets held-for-sale (6)			—						—						—						—						(103)						—						—						(103)
Balance at December 31, 2021			272						191						10,058						1,361						1,472						4,029						32						17,415
Capitalizations			18						113						1,530						494						422						29						8						2,614
Amortization			(26)						(37)						(644)						(361)						(311)						(267)						(9)						(1,655)
Effect of foreign currency translation and other, net			—						—						(674)						48						(103)						—						(1)						(730)
Balance at December 31, 2022			264						267						10,270						1,542						1,480						3,791						30						17,644
Capitalizations			20						176						1,583						651						457						22						8						2,917
Amortization			(26)						(46)						(705)						(418)						(332)						(255)						(9)						(1,791)
Effect of foreign currency translation and other, net (7)			—						—						(284)						175						13						(287)						1						(382)
Balance at December, 31, 2023			$	258					$	397					$	10,864					$	1,950					$	1,618					$	3,271					$	30					$	18,388
VOBA:
Balance at January 1, 2021			$	—					$	25					$	1,915					$	756					$	232					$	38					$	—					$	2,966
Amortization			—						(3)						(131)						(61)						(29)						(7)						—						(231)
Effect of foreign currency translation and other, net			—						—						(191)						(104)						(15)						—						—						(310)
Reclassified to assets held-for-sale (6)			—						—						—						—						(34)						—						—						(34)
Balance at December 31, 2021			—						22						1,593						591						154						31						—						2,391
Amortization			—						(3)						(101)						(49)						(20)						(3)						—						(176)
Effect of foreign currency translation and other, net			—						—						(202)						3						(7)						—						—						(206)
Balance at December 31, 2022			—						19						1,290						545						127						28						—						2,009
Amortization			—						(3)						(89)						(50)						(16)						(3)						—						(161)
Effect of foreign currency translation and other, net (7)			—						—						(82)						2						2						(7)						—						(85)
Balance at December 31, 2023			$	—					$	16					$	1,119					$	497					$	113					$	18					$	—					$	1,763
Total DAC and VOBA:
Balance at December 31, 2021																																													$	19,806
Balance at December 31, 2022																																													$	19,653
Balance at December 31, 2023																																													$	20,151

---

(1)See Note 2 for information on the reorganization of the Company’s segments.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

8. Deferred Policy Acquisition Costs, Value of Business Acquired, Unearned Revenue and Other Intangibles (continued)

(2)Includes DAC balances primarily related to accident & health, universal and variable universal life, variable life and fixed annuity products and VOBA balances primarily related to accident & health products.

(3)Includes DAC balances primarily related to universal life and variable universal life products.

(4)Includes DAC balances primarily related to universal life, variable universal life, whole life, term life and variable annuity products.

(5)Corporate & Other includes activity related to MetLife P&C, a former subsidiary of the Company, that was previously reported in the former U.S. segment. See Notes 2 and 3.

(6)See Note 3 for information on the Company’s dispositions.

(7)MetLife Holdings segment includes activity for total DAC and total VOBA ceded at the date of inception related to a reinsurance agreement. See Note 9 for further information on the transaction.

Significant Methodologies and Assumptions

The Company amortizes DAC and VOBA related to long-duration contracts over the estimated lives of the contracts in proportion to benefits in-force for RIS annuities and policy count for all other products. The amortization amount is calculated using the same cohorts as the corresponding liabilities on a quarterly basis, using an amortization rate that includes current period reporting experience and end of period persistency and longevity assumptions that are consistent with those used to measure the corresponding liabilities.

The Company amortizes DAC for credit insurance and other short-duration contracts, which is primarily comprised of commissions and certain underwriting expenses, in proportion to actual and future earned premium over the applicable contract term.

Information regarding other intangibles was as follows:

						Years Ended December 31,
						2023						2022						2021
						(In millions)
VODA and VOCRA:
Balance at January 1,						$	876					$	972					$	1,099
Acquisitions						—						—						—
Amortization						(88)						(92)						(100)
Effect of foreign currency translation and other						6						(4)						(27)
Balance at December 31,						$	794					$	876					$	972
Accumulated amortization						$	755					$	667					$	575
Negative VOBA:
Balance at January 1,						$	473					$	557					$	666
Amortization						(26)						(29)						(35)
Effect of foreign currency translation and other						(20)						(55)						(74)
Balance at December 31,						$	427					$	473					$	557
Accumulated amortization						$	3,398					$	3,372					$	3,343

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

8. Deferred Policy Acquisition Costs, Value of Business Acquired, Unearned Revenue and Other Intangibles (continued)

The estimated future amortization expense (credit) to be reported in other expenses for the next five years is as follows:

						VOBA						VODA and VOCRA						Negative VOBA
						(In millions)
2024						$	148					$	84					$	(26)
2025						$	138					$	82					$	(24)
2026						$	129					$	80					$	(23)
2027						$	118					$	78					$	(22)
2028						$	109					$	75					$	(21)

Unearned Revenue

Information regarding the Company’s UREV primarily related to universal life and variable universal life products by segment included in other policy-related balances was as follows:

						RIS (1)						Asia						Latin America						EMEA						MetLife Holdings						Total
						(In millions)
Balance at January 1, 2021						$	42					$	1,616					$	835					$	482					$	188					$	3,163
Deferrals						3						610						110						97						64						884
Amortization						(7)						(147)						(96)						(59)						(14)						(323)
Effect of foreign currency translation and other - net						—						(46)						(54)						1						—						(99)
Balance at December 31, 2021						38						2,033						795						521						238						3,625
Deferrals						5						546						134						111						60						856
Amortization						(7)						(144)						(116)						(59)						(17)						(343)
Effect of foreign currency translation and other - net						—						(53)						35						(14)						—						(32)
Balance at December 31, 2022						36						2,382						848						559						281						4,106
Deferrals						2						667						147						95						48						959
Amortization						(7)						(181)						(116)						(63)						(18)						(385)
Effect of foreign currency translation and other - net (2)						—						(18)						110						17						(252)						(143)
Balance at December 31, 2023						$	31					$	2,850					$	989					$	608					$	59					$	4,537

---

(1)See Note 2 for information on the reorganization of the Company’s segments.

(2)MetLife Holdings segment includes activity for total UREV ceded at the date of inception related to a reinsurance agreement. See Note 9 for further information on the transaction.

Significant Methodologies and Assumptions

UREV is amortized similarly to DAC and VOBA, see “— DAC and VOBA.”

9. Reinsurance

The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by third parties. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth.

Under the terms of the reinsurance agreements, the reinsurer agrees to reimburse the Company for the ceded amount in the event a claim is paid. Cessions under reinsurance agreements do not discharge the Company’s obligation as the primary insurer. In the event that reinsurers do not meet their obligations under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

9. Reinsurance (continued)

Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in “ – Fixed Maturity Securities AFS – Evaluation of Fixed Maturity Securities AFS for Credit Loss” in Note 11.

Group Benefits

For its Group Benefits segment, the Company generally retains most of the risk, with the exception of its Group Term Life business and certain client arrangements.

The Company reinsures an 80% quota share of its Group Term Life business for capital management purposes. The majority of the Company’s other reinsurance activity within this segment relates to client agreements for employer sponsored captive programs, risk-sharing agreements and multinational pooling. The risks ceded under these agreements are generally quota shares of group life and disability policies. The cessions vary and the Company may cede up to 100% of all the risks of the policies.

RIS

The Company’s RIS segment has engaged in reinsurance activities on an opportunistic basis. The Company reinsures longevity risks for certain pension products issued by unaffiliated providers located in the U.K.

Asia, Latin America and EMEA

For selected large corporate clients, the Company reinsures group employee benefits or credit insurance business with various client-affiliated reinsurance companies, covering policies issued to the employees or customers of the clients. Additionally, the Company cedes and assumes risk with other insurance companies when either company requires a business partner with the appropriate local licensing to issue certain types of policies in certain jurisdictions. In these cases, the assuming company typically underwrites the risks, develops the products and assumes most or all of the risk. The Company also has reinsurance agreements in-force that reinsure a portion of the living and death benefit guarantees issued in connection with variable annuity products. Under these agreements, the Company pays reinsurance fees associated with the guarantees collected from policyholders and receives reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations. The Company may also reinsure certain risks with external reinsurers depending upon the nature of the risk and local regulatory requirements.

MetLife Holdings

For its life products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis. In addition to reinsuring mortality risk as described above, the Company reinsures other risks, as well as specific coverages. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specified characteristics. The Company also assumes portions of the risk associated with certain whole life policies issued by a former affiliate and reinsures certain term life policies and universal life policies with secondary death benefit guarantees to such former affiliate. In 2023, the Company reinsured an in-force block of universal life, variable universal life, universal life with secondary guarantees and fixed annuities to a third party on a 100% quota share basis.

For its other products, the Company has a reinsurance agreement in-force to reinsure the living and death benefit guarantees issued in connection with certain variable annuity guarantees from a third party in Japan. Under this agreement, the Company receives reinsurance fees associated with the guarantees collected from policyholders, and provides reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations.

Catastrophe Coverage

The Company has exposure to catastrophes which could contribute to significant fluctuations in the Company’s results of operations. For the Group Benefits and EMEA segments, the Company purchases catastrophe coverage to reinsure risks issued within territories that the Company believes are subject to the greatest catastrophic risks. For its other segments, the Company uses excess of retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposure to larger risks. Excess of retention reinsurance agreements provide for a portion of a risk to remain with the direct writing company and quota share reinsurance agreements provide for the direct writing company to transfer a fixed percentage of all risks of a class of policies.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

9. Reinsurance (continued)

Reinsurance Recoverables

The Company reinsures its business through a diversified group of well-capitalized reinsurers. The Company analyzes recent trends in arbitration and litigation outcomes in disputes, if any, with its reinsurers. The Company monitors ratings and evaluates the financial strength of its reinsurers by analyzing their financial statements. In addition, the reinsurance recoverable balance due from each reinsurer is evaluated as part of the overall monitoring process. Recoverability of reinsurance recoverable balances is evaluated based on these analyses. The Company generally secures large reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. These reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, which at December 31, 2023 and 2022, were not significant. A U.S. life insurance subsidiary of the Company also secured collateral from its counterparties to mitigate counterparty default risk related to its longevity reinsurance agreements.

The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. The Company had $4.4 billion and $3.8 billion of unsecured reinsurance recoverable balances at December 31, 2023 and 2022, respectively.

At December 31, 2023, the Company had $16.7 billion of net ceded reinsurance recoverables. Of this total, $14.1 billion, or 84%, were with the Company’s five largest ceded reinsurers, including $2.5 billion of net ceded reinsurance recoverables which were unsecured. At December 31, 2022, the Company had $6.1 billion of net ceded reinsurance recoverables. Of this total, $4.2 billion, or 69%, were with the Company’s five largest ceded reinsurers, including $2.3 billion of net ceded reinsurance recoverables which were unsecured.

The Company has reinsured, with an unaffiliated third-party reinsurer, 59% of the closed block through a modified coinsurance agreement. The Company accounts for this agreement under the deposit method of accounting. The Company, having the right of offset, has offset the modified coinsurance deposit liability with the deposit recoverable.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

9. Reinsurance (continued)

The amounts on the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows:

						Years Ended December 31,
						2023						2022						2021
						(In millions)
Premiums
Direct premiums						$	43,359					$	47,618					$	40,377
Reinsurance assumed						3,112						3,035						2,909
Reinsurance ceded						(2,188)						(2,143)						(2,134)
Net premiums						$	44,283					$	48,510					$	41,152
Universal life and investment-type product policy fees
Direct universal life and investment-type product policy fees						$	5,787					$	5,687					$	5,813
Reinsurance assumed						(19)						32						(13)
Reinsurance ceded						(616)						(494)						(556)
Net universal life and investment-type product policy fees						$	5,152					$	5,225					$	5,244
Policyholder benefits and claims
Direct policyholder benefits and claims						$	44,155					$	49,308					$	43,199
Reinsurance assumed						2,904						2,604						2,546
Reinsurance ceded						(2,469)						(2,405)						(2,627)
Net policyholder benefits and claims						$	44,590					$	49,507					$	43,118
Policyholder liability remeasurement (gains) losses
Direct policyholder liability remeasurement (gains) losses						$	(54)					$	94					$	(185)
Reinsurance assumed						(20)						9						21
Reinsurance ceded						29						11						(8)
Net policyholder liability remeasurement (gains) losses						$	(45)					$	114					$	(172)
Market risk benefits remeasurement (gains) losses
Direct market risk benefits remeasurement (gains) losses						$	(785)					$	(3,636)					$	(959)
Reinsurance assumed						(214)						(46)						(291)
Reinsurance ceded						5						8						13
Net market risk benefits remeasurement (gains) losses						$	(994)					$	(3,674)					$	(1,237)
Other expenses
Direct other expenses						$	12,760					$	11,854					$	11,984
Reinsurance assumed						235						268						329
Reinsurance ceded						(285)						(263)						(295)
Net other expenses						$	12,710					$	11,859					$	12,018

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

9. Reinsurance (continued)

The amounts on the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at:

						December 31,
						2023																								2022
						Direct						Assumed						Ceded						Total Balance Sheet						Direct						Assumed						Ceded						Total Balance Sheet
						(In millions)
Assets
Premiums, reinsurance and other receivables						$	6,044					$	1,405					$	21,522					$	28,971					$	5,427					$	1,505					$	10,432					$	17,364
Market risk benefits						279						7						—						286						273						7						—						280
Deferred policy acquisition costs and value of business acquired						20,297						353						(499)						20,151						19,522						352						(221)						19,653
Total assets						$	26,620					$	1,765					$	21,023					$	49,408					$	25,222					$	1,864					$	10,211					$	37,297
Liabilities
Future policy benefits						$	192,424					$	3,982					$	—					$	196,406					$	183,377					$	3,845					$	—					$	187,222
Market risk benefits						3,141						38						—						3,179						3,591						172						—						3,763
Other policy-related balances						18,852						1,152						(268)						19,736						17,250						1,183						(9)						18,424
Other liabilities						27,125						1,892						6,788						35,805						18,654						2,006						5,273						25,933
Total liabilities						$	241,542					$	7,064					$	6,520					$	255,126					$	222,872					$	7,206					$	5,264					$	235,342

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. Included in the above table are deposit assets on reinsurance of $5.1 billion and $1.9 billion at December 31, 2023 and 2022, respectively. Also, included in the table above are deposit liabilities on reinsurance of $1.3 billion and $1.4 billion at December 31, 2023 and 2022, respectively.

In November 2023, the Company completed a risk transfer transaction with subsidiaries of Global Atlantic Financial Group, a retirement and life insurance company, to reinsure an in-force block of universal life, variable universal life, universal life with secondary guarantees, and fixed annuities, which are reported in the MetLife Holdings segment. The Company entered into reinsurance agreements on a coinsurance basis for the general account products and on a modified coinsurance basis for the separate account products. The Company recorded reinsurance recoverables and deposit receivables of $10.3 billion at December 31, 2023 reported in premiums, reinsurance and other receivables. At inception of the agreement, in addition to recording the amount recoverable, the Company (i) transferred to the reinsurer $9.5 billion of assets primarily consisting of fixed maturity securities AFS and mortgage loans supporting the general account liabilities reduced by a $2.2 billion pre-tax ceding commission, (ii) retained $5.0 billion separate account assets under the modified coinsurance arrangement and (iii) recorded the net cost of reinsurance of $770 million within other liabilities, related to universal life, variable universal life and universal life with secondary guarantees reinsured. The net cost of reinsurance will be amortized on a basis consistent with the methodologies and assumptions used for amortizing DAC related to the underlying reinsured contracts in policyholder benefits and claims.

As part of this transaction, the Company’s investment management business entered into investment advisory and other agreements with subsidiaries of Global Atlantic Financial Group to serve as the investment manager for certain of the transferred general account assets. With certain exceptions, the agreements contemplate a term of five years.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

10. Closed Block

On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“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 of Reorganization”). 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 which, together with anticipated revenues from the policies included in the closed block, are reasonably expected to be sufficient to support obligations and liabilities relating to these policies, including, but not limited to, provisions for the payment of claims and certain expenses and taxes, and to provide for the continuation of policyholder dividend scales in effect for 1999, if the experience underlying such dividend scales continues, and for appropriate adjustments in such scales if the experience changes. At least annually, the Company compares actual and projected experience against the experience assumed in the then-current dividend scales. Dividend scales are adjusted periodically to give effect to changes in experience.

The closed block assets, the cash flows generated by the closed block assets and the anticipated revenues from the policies in the closed block will benefit only the holders of the policies in the closed block. To the extent that, over time, cash flows from the assets allocated to the closed block and claims and other experience related to the closed block are, in the aggregate, more or less favorable than what was assumed when the closed block was established, total dividends paid to closed block policyholders in the future may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect for 1999 had been continued. Any cash flows in excess of amounts assumed will be available for distribution over time to closed block policyholders and will not be available to stockholders. If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside of the closed block. The closed block will continue in effect as long as any policy in the closed block remains in-force. The expected life of the closed block is over 100 years from the Demutualization Date.

The Company uses the same accounting principles to account for the participating policies included in the closed block as it used prior to the Demutualization Date. However, the Company establishes a policyholder dividend obligation for earnings that will be paid to policyholders as additional dividends as described below. The excess of closed block liabilities over closed block assets at the Demutualization Date (adjusted to eliminate the impact of related amounts in AOCI) represents the estimated maximum future earnings from the closed block expected to result from operations, attributed net of income tax, to the closed block. Earnings of the closed block are recognized in income over the period the policies and contracts in the closed block remain in-force.

If, over the period the closed block remains in existence, the actual cumulative earnings of the closed block are greater than the expected cumulative earnings of the closed block, the Company will pay the excess to closed block policyholders as additional policyholder dividends unless offset by future unfavorable experience of the closed block and, accordingly, will recognize only the expected cumulative earnings in income with the excess recorded as a policyholder dividend obligation. If over such period, the actual cumulative earnings of the closed block are less than the expected cumulative earnings of the closed block, the Company will recognize only the actual earnings in income. However, the Company may change policyholder dividend scales in the future, which would be intended to increase future actual earnings until the actual cumulative earnings equal the expected cumulative earnings.

At least annually, management performs a premium deficiency test using best estimate assumptions to determine whether the projected future earnings of the closed block are sufficient to support the payment of future closed block contractual benefits. The most recent deficiency test demonstrated that the projected future earnings of the closed block are sufficient to support the payment of future closed block contractual benefits.

Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon policy count within the closed block.

Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

10. Closed Block (continued)

Information regarding the liabilities and assets designated to the closed block was as follows at:

						December 31,
						2023						2022
						(In millions)
Closed Block Liabilities
Future policy benefits						$	36,142					$	37,222
Other policy-related balances						319						273
Policyholder dividends payable						174						181
Other liabilities						668						455
Total closed block liabilities						37,303						38,131
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value						19,939						19,648
Equity securities, at estimated fair value						10						13
Mortgage loans						6,151						6,564
Policy loans						3,960						4,084
Real estate and real estate joint ventures						668						635
Other invested assets						496						692
Total investments						31,224						31,636
Cash and cash equivalents						717						437
Accrued investment income						383						375
Premiums, reinsurance and other receivables						54						52
Current income tax recoverable						3						88
Deferred income tax asset						312						423
Total assets designated to the closed block						32,693						33,011
Excess of closed block liabilities over assets designated to the closed block						4,610						5,120
AOCI:
Unrealized investment gains (losses), net of income tax						(820)						(1,357)
Unrealized gains (losses) on derivatives, net of income tax						130						262
Total amounts included in AOCI						(690)						(1,095)
Maximum future earnings to be recognized from closed block assets and liabilities						$	3,920					$	4,025

Information regarding the closed block policyholder dividend obligation was as follows:

						Years Ended December 31,
						2023						2022						2021
						(In millions)
Balance at January 1,						$	—					$	1,682					$	2,969
Change in unrealized investment and derivative gains (losses)						—						(1,682)						(1,287)
Balance at December 31,						$	—					$	—					$	1,682

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

10. Closed Block (continued)

Information regarding the closed block revenues and expenses was as follows:

						Years Ended December 31,
						2023						2022						2021
						(In millions)
Revenues
Premiums						$	922					$	1,104					$	1,298
Net investment income						1,362						1,382						1,541
Net investment gains (losses)						7						(51)						(36)
Net derivative gains (losses)						—						33						18
Total revenues						2,291						2,468						2,821
Expenses
Policyholder benefits and claims						1,706						1,890						2,150
Policyholder dividends						366						458						626
Other expenses						86						90						96
Total expenses						2,158						2,438						2,872
Revenues, net of expenses before provision for income tax expense (benefit)						133						30						(51)
Provision for income tax expense (benefit)						28						6						(11)
Revenues, net of expenses and provision for income tax expense (benefit)						$	105					$	24					$	(40)

MLIC charges the closed block with federal income taxes, state and local premium taxes and other state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan of Reorganization. MLIC also charges the closed block for expenses of maintaining the policies included in the closed block.

11. Investments

See Note 13 for information about the fair value hierarchy for investments and the related valuation methodologies.

Investment Risks and Uncertainties

Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of ACL and impairments, the recognition of income on certain investments and the potential consolidation of VIEs. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the consolidated financial statements.

The determination of ACL and impairments is highly subjective and is based upon quarterly evaluations and assessments of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available.

The recognition of income on certain investments (e.g. structured securities, including mortgage-backed securities, asset-backed securities and collateralized loan obligations (“ABS & CLO”), certain structured investment transactions and FVO securities) is dependent upon certain factors such as prepayments and defaults, and changes in such factors could result in changes in amounts to be earned.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

Fixed Maturity Securities AFS

Fixed Maturity Securities AFS by Sector

The following table presents fixed maturity securities AFS by sector. U.S. corporate and foreign corporate sectors include redeemable preferred stock. RMBS includes agency, prime, prime investor, non-qualified residential mortgage, alternative, reperforming and sub-prime mortgage-backed securities. ABS & CLO includes securities collateralized by consumer loans, corporate loans and broadly syndicated bank loans. Municipals includes taxable and tax-exempt revenue bonds and, to a much lesser extent, general obligations of states, municipalities and political subdivisions. Commercial mortgage-backed securities (“CMBS”) primarily includes securities collateralized by multiple commercial mortgage loans. RMBS, ABS & CLO and CMBS are, collectively, “Structured Products.”

						December 31,
						2023																														2022
						Amortized Cost												Gross Unrealized												Estimated Fair Value						Amortized Cost												Gross Unrealized												Estimated Fair Value
Sector									Allowance for Credit Loss						Gains						Losses						Allowance for Credit Loss						Gains						Losses
						(In millions)
U.S. corporate						$	85,563					$	(68)					$	1,894					$	6,672					$	80,717					$	88,466					$	(29)					$	1,133					$	9,540					$	80,030
Foreign corporate						59,123						(2)						1,750						5,427						55,444						59,696						(5)						1,213						8,332						52,572
Foreign government						48,260						(88)						1,754						4,437						45,489						50,047						(130)						1,876						5,046						46,747
U.S. government and agency						35,374						—						590						3,712						32,252						35,658						—						431						3,860						32,229
RMBS						31,479						(1)						353						2,735						29,096						29,496						—						187						3,518						26,165
ABS & CLO						17,910						(7)						54						663						17,294						17,991						—						23						1,192						16,822
Municipals						11,991						—						408						1,228						11,171						13,548						—						317						1,713						12,152
CMBS						10,855						(18)						73						961						9,949						11,123						(19)						59						1,100						10,063
Total fixed maturity securities AFS						$	300,555					$	(184)					$	6,876					$	25,835					$	281,412					$	306,025					$	(183)					$	5,239					$	34,301					$	276,780

Methodology for Amortization of Premium and Accretion of Discount on Structured Products

Amortization of premium and accretion of discount on Structured Products considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Products are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive and certain prepayment-sensitive Structured Products, the effective yield is recalculated on a prospective basis. For all other Structured Products, the effective yield is recalculated on a retrospective basis.

Maturities of Fixed Maturity Securities AFS

The amortized cost, net of ACL, and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at December 31, 2023:

			Due in One Year or Less						Due After One Year Through Five Years						Due After Five Years Through Ten Years						Due After Ten Years						Structured Products						Total Fixed Maturity Securities AFS
			(In millions)
Amortized cost, net of ACL			$	9,644					$	48,922					$	51,837					$	129,750					$	60,218					$	300,371
Estimated fair value			$	9,677					$	48,325					$	50,598					$	116,473					$	56,339					$	281,412

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities AFS not due at a single maturity date have been presented in the year of final contractual maturity. Structured Products are shown separately, as they are not due at a single maturity.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

Continuous Gross Unrealized Losses for Fixed Maturity Securities AFS by Sector

The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position without an ACL by sector and aggregated by length of time that the securities have been in a continuous unrealized loss position.

			December 31,
			2023																								2022
			Less than 12 Months												Equal to or Greater than 12 Months												Less than 12 Months												Equal to or Greater than 12 Months
Sector & Credit Quality			Estimated Fair Value						Gross Unrealized Losses						Estimated Fair Value						Gross Unrealized Losses						Estimated Fair Value						Gross Unrealized Losses						Estimated Fair Value						Gross Unrealized Losses
			(Dollars in millions)
U.S. corporate			$	4,722					$	420					$	45,373					$	6,208					$	55,210					$	7,573					$	6,484					$	1,965
Foreign corporate			3,210						187						32,355						5,240						31,932						5,999						8,956						2,332
Foreign government			3,913						246						19,715						4,187						16,568						2,170						8,308						2,874
U.S. government and agency			7,856						368						13,960						3,344						20,436						2,784						4,177						1,076
RMBS			3,465						60						17,128						2,675						16,223						1,890						6,650						1,628
ABS & CLO			1,662						31						11,438						629						10,924						712						4,326						480
Municipals			483						34						5,449						1,194						7,277						1,514						482						199
CMBS			1,034						36						6,671						917						6,890						764						2,037						335
Total fixed maturity securities AFS			$	26,345					$	1,382					$	152,089					$	24,394					$	165,460					$	23,406					$	41,420					$	10,889
Investment grade			$	24,834					$	1,287					$	146,138					$	23,675					$	157,654					$	22,713					$	38,785					$	10,298
Below investment grade			1,511						95						5,951						719						7,806						693						2,635						591
Total fixed maturity securities AFS			$	26,345					$	1,382					$	152,089					$	24,394					$	165,460					$	23,406					$	41,420					$	10,889
Total number of securities in an unrealized loss position			2,922												13,049												15,204												4,303

Evaluation of Fixed Maturity Securities AFS for Credit Loss

Evaluation and Measurement Methodologies

Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the credit loss evaluation process include, but are not limited to: (i) the extent to which the estimated fair value has been below amortized cost, (ii) adverse conditions specifically related to a security, an industry sector or sub-sector, or an economically depressed geographic area, adverse change in the financial condition of the issuer of the security, changes in technology, discontinuance of a segment of the business that may affect future earnings, and changes in the quality of credit enhancement, (iii) payment structure of the security and likelihood of the issuer being able to make payments, (iv) failure of the issuer to make scheduled interest and principal payments, (v) whether the issuer, or series of issuers or an industry has suffered a catastrophic loss or has exhausted natural resources, (vi) whether the Company has the intent to sell or will more likely than not be required to sell, including transfers in connection with reinsurance transactions, a particular security before the decline in estimated fair value below amortized cost recovers, (vii) with respect to Structured Products, changes in forecasted cash flows after considering the changes in the financial condition of the underlying loan obligors and quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security, (viii) changes in the rating of the security by a rating agency, and (ix) other subjective factors, including concentrations and information obtained from regulators.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

The methodology and significant inputs used to determine the amount of credit loss are as follows:

• The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security at the time of purchase for fixed-rate securities and the spot rate at the date of evaluation of credit loss for floating-rate securities.

• When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall credit loss evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management’s single best estimate, the most likely outcome in a range of possible outcomes, after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security’s position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; any private and public sector programs to restructure foreign government securities and municipals; and changes to the rating of the security or the issuer by rating agencies.

• Additional considerations are made when assessing the features that apply to certain Structured Products including, but not limited to: the quality of underlying collateral, historical performance of the underlying loan obligors, historical rent and vacancy levels, changes in the financial condition of the underlying loan obligors, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, changes in the quality of credit enhancement and the payment priority within the tranche structure of the security.

With respect to securities that have attributes of debt and equity (“perpetual hybrid securities”), consideration is given in the credit loss analysis as to whether there has been any deterioration in the credit of the issuer and the likelihood of recovery in value of the securities that are in a severe unrealized loss position. Consideration is also given as to whether any perpetual hybrid securities with an unrealized loss, regardless of credit rating, have deferred any dividend payments.

In periods subsequent to the recognition of an initial ACL on a security, the Company reassesses credit loss quarterly. Subsequent increases or decreases in the expected cash flow from the security result in corresponding decreases or increases in the ACL which are recognized in earnings and reported within net investment gains (losses); however, the previously recorded ACL is not reduced to an amount below zero. Full or partial write-offs are deducted from the ACL in the period the security, or a portion thereof, is considered uncollectible. Recoveries of amounts previously written off are recorded to the ACL in the period received. When the Company has the intent-to-sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, any ACL is written off and the amortized cost is written down to estimated fair value through a charge within net investment gains (losses), which becomes the new amortized cost of the security.

Evaluation of Fixed Maturity Securities AFS in an Unrealized Loss Position

Gross unrealized losses on securities without an ACL decreased $8.5 billion for the year ended December 31, 2023 to $25.8 billion primarily due to interest rate volatility, narrowing credit spreads, impairments in connection with a reinsurance transaction and, to a lesser extent, the strengthening of foreign currencies on certain non-functional currency denominated fixed maturity securities.

As shown above, most of the gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater at December 31, 2023 relate to investment grade securities. These unrealized losses are principally due to widening credit spreads since purchase and, with respect to fixed-rate securities, rising interest rates since purchase.

As of December 31, 2023, $719 million of gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater on below investment grade securities were concentrated in the consumer, transportation, and communications sectors within corporate securities and in foreign government securities. These unrealized losses are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainty and, with respect to fixed-rate securities, rising interest rates since purchase.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

At December 31, 2023, the Company did not intend to sell its securities in an unrealized loss position without an ACL, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost. Therefore, the Company concluded that these securities had not incurred a credit loss and should not have an ACL at December 31, 2023.

Future provisions for credit loss will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings and collateral valuation.

Rollforward of Allowance for Credit Loss for Fixed Maturity Securities AFS By Sector

The rollforward of ACL for fixed maturity securities AFS by sector is as follows:

						U.S. Corporate						Foreign Corporate						Foreign Government												RMBS						ABS & CLO												CMBS						Total
Year Ended December 31, 2023						(In millions)
Balance at January 1,						$	29					$	5					$	130											$	—					$	—											$	19					$	183
ACL not previously recorded						36						—						—												2						7												2						47
Changes for securities with previously recorded ACL						7						—						(23)												(1)						—												8						(9)
Securities sold or exchanged						(4)						(3)						(19)												—						—												(11)						(37)
Balance at December 31,						$	68					$	2					$	88											$	1					$	7											$	18					$	184

						U.S. Corporate						Foreign Corporate						Foreign Government												RMBS						ABS & CLO												CMBS						Total
Year Ended December 31, 2022						(In millions)
Balance at January 1,						$	30					$	28					$	19											$	—					$	—											$	14					$	91
ACL not previously recorded						13						67						207												—						—												5						292
Changes for securities with previously recorded ACL						17						2						(48)												—						—												—						(29)
Securities sold or exchanged						(9)						(93)						(37)												—						—												—						(139)
Effect of foreign currency translation						—						1						(11)												—						—												—						(10)
Write-offs						(22)						—						—												—						—												—						(22)
Balance at December 31,						$	29					$	5					$	130											$	—					$	—											$	19					$	183

Equity Securities

The following table presents equity securities by security type. Common stock includes common stock, exchange traded funds, certain mutual funds and certain real estate investment trusts.

						December 31,
						2023																		2022
						Cost						Net Unrealized Gains (Losses) (1)						Estimated Fair Value						Cost						Net Unrealized Gains (Losses) (1)						Estimated Fair Value
Security Type
												(In millions)
Common stock						$	424					$	239					$	663					$	1,347					$	195					$	1,542
Non-redeemable preferred stock						90						4						94						148						(6)						142
Total						$	514					$	243					$	757					$	1,495					$	189					$	1,684

---

(1)Represents cumulative changes in estimated fair value, recognized in earnings, and not in OCI.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

Contractholder-Directed Equity Securities and FVO Securities

The following table presents these investments by asset type. Unit-linked investments are primarily equity securities (including mutual funds). FVO securities includes fixed maturity and equity securities to support asset and liability management strategies for certain insurance products and investments in certain separate accounts.

						December 31,
						2023																		2022
						Cost or Amortized Cost						Net Unrealized Gains (Losses) (1)						Estimated Fair Value						Cost or Amortized Cost						Net Unrealized Gains (Losses) (1)						Estimated Fair Value
Asset Type
						(In millions)
Unit-linked investments						$	7,770					$	1,112					$	8,882					$	7,945					$	288					$	8,233
FVO securities						972						477						1,449						1,161						274						1,435
Total						$	8,742					$	1,589					$	10,331					$	9,106					$	562					$	9,668

---

(1)Represents cumulative changes in estimated fair value, recognized in earnings, and not in OCI.

Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

						December 31,
						2023												2022
Portfolio Segment						Carrying Value (1)						% of Total						Carrying Value						% of Total
						(Dollars in millions)
Commercial						$	60,326					65.2		%				$	52,502					62.7		%
Agricultural						19,805						21.4						19,306						23.0
Residential						13,096						14.2						12,482						14.9
Total amortized cost						93,227						100.8						84,290						100.6
Allowance for credit loss						(721)						(0.8)						(527)						(0.6)
Total mortgage loans						$	92,506					100.0		%				$	83,763					100.0		%

---

(1)Includes certain mortgage loans originated for third parties of $8.5 billion at amortized cost ($8.2 billion commercial and $246 million agricultural) and the related ACL of $73 million, with the corresponding mortgage loan secured financing liability of $8.5 billion included in other liabilities on the consolidated balance sheet. The investment income on these mortgage loans originated for third parties and the interest expense on the mortgage loan secured financing liability was $408 million for the year ended December 31, 2023, and recorded in investment income and investment expenses, within net investment income. See Note 1.

The amount of net (discounts) premiums and deferred (fees) expenses, included within total amortized cost, primarily attributable to residential mortgage loans was ($736) million and ($744) million at December 31, 2023 and 2022, respectively. The accrued interest income excluded from total amortized cost for commercial, agricultural and residential mortgage loans at December 31, 2023 was $277 million, $204 million, and $95 million, respectively. The accrued interest income excluded from total amortized cost for commercial, agricultural and residential mortgage loans at December 31, 2022 was $219 million, $176 million and $81 million, respectively.

Purchases of mortgage loans, consisting primarily of residential mortgage loans, were $1.5 billion, $3.1 billion and $1.8 billion for the years ended December 31, 2023, 2022 and 2021, respectively.

During the year ended December 31, 2023, the Company disposed of commercial mortgage loans with an amortized cost of $254 million in connection with a reinsurance transaction. The disposition resulted in a loss of $58 million for the year ended December 31, 2023.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

During the years ended December 31, 2023 and 2022, the Company contributed commercial mortgage loans with an amortized cost of $15 million and $489 million, respectively, to joint ventures in anticipation of subsequent foreclosure or deed-in-lieu of foreclosure transactions. During the years ended December 31, 2023 and 2022, the joint ventures completed foreclosure or deed-in-lieu of foreclosure transactions on loans with an amortized cost of $37 million and $467 million, respectively. During the year ended December 31, 2023, no gains or losses were recognized on foreclosures or deed-in-lieu of foreclosures within joint ventures as the estimated fair value of the real estate collateralizing the foreclosures or deed-in-lieu of foreclosures approximated amortized cost. The real estate collateralizing the 2022 foreclosures or deed-in-lieu of foreclosures had an estimated fair value in excess of amortized cost. Therefore, during the year ended December 31, 2022, the Company recognized its pro rata share of $34 million within net investment gains (losses) upon consummation of the foreclosures or deed-in-lieu of foreclosures. See “— Real Estate and Real Estate Joint Ventures” for the carrying value of wholly-owned real estate acquired through foreclosure.

Rollforward of Allowance for Credit Loss for Mortgage Loans by Portfolio Segment

The rollforward of ACL for mortgage loans, by portfolio segment, is as follows:

			Years Ended December 31,
			2023																								2022																								2021
			Commercial						Agricultural						Residential						Total						Commercial						Agricultural						Residential						Total						Commercial						Agricultural						Residential						Total
			(In millions)
Balance at January 1,			$	218					$	119					$	190					$	527					$	340					$	88					$	206					$	634					$	252					$	106					$	232					$	590
Provision (release)			168						89						(8)						249						(2)						53						(8)						43						88						6						(27)						67
Initial credit losses on PCD loans (1)			—						—						—						—						—						—						—						—						—						—						3						3
Charge-offs, net of recoveries			(19)						(36)						—						(55)						(120)						(22)						(8)						(150)						—						(24)						(2)						(26)
Balance at December 31,			$	367					$	172					$	182					$	721					$	218					$	119					$	190					$	527					$	340					$	88					$	206					$	634

---

(1)Represents the initial credit losses on purchased mortgage loans accounted for as PCD.

Allowance for Credit Loss Methodology

The Company records an allowance for expected lifetime credit loss in earnings within net investment gains (losses) in an amount that represents the portion of the amortized cost basis of mortgage loans that the Company does not expect to collect, resulting in mortgage loans being presented at the net amount expected to be collected. In determining the Company’s ACL, management applies significant judgment to estimate expected lifetime credit loss, including: (i) pooling mortgage loans that share similar risk characteristics, (ii) considering expected lifetime credit loss over the contractual term of its mortgage loans adjusted for expected prepayments and any extensions, and (iii) considering past events and current and forecasted economic conditions. Each of the Company’s commercial, agricultural and residential mortgage loan portfolio segments are evaluated separately. The ACL is calculated for each mortgage loan portfolio segment based on inputs unique to each loan portfolio segment. On a quarterly basis, mortgage loans within a portfolio segment that share similar risk characteristics, such as internal risk ratings or consumer credit scores, are pooled for calculation of ACL. On an ongoing basis, mortgage loans with dissimilar risk characteristics (i.e., loans with significant declines in credit quality), such as collateral dependent mortgage loans (i.e., when the borrower is experiencing financial difficulty, including when foreclosure is reasonably possible or probable), are evaluated individually for credit loss. The ACL for loans evaluated individually are established using the same methodologies for all three portfolio segments. For example, the ACL for a collateral dependent loan is established as the excess of amortized cost over the estimated fair value of the loan’s underlying collateral, less selling cost when foreclosure is probable. Accordingly, the change in the estimated fair value of collateral dependent loans, which are evaluated individually for credit loss, is recorded as a change in the ACL which is recorded on a quarterly basis as a charge or credit to earnings in net investment gains (losses).

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

Commercial and Agricultural Mortgage Loan Portfolio Segments

Within each loan portfolio segment, commercial and agricultural loans are pooled by internal risk rating. Estimated lifetime loss rates, which vary by internal risk rating, are applied to the amortized cost of each loan, excluding accrued investment income, on a quarterly basis to develop the ACL. Internal risk ratings are based on an assessment of the loan’s credit quality, which can change over time. The estimated lifetime loss rates are based on several loan portfolio segment-specific factors, including (i) the Company’s experience with defaults and loss severity, (ii) expected default and loss severity over the forecast period, (iii) current and forecasted economic conditions including growth, inflation, interest rates and unemployment levels, (iv) loan specific characteristics including loan-to-value (“LTV”) ratios, and (v) internal risk ratings. These evaluations are revised as conditions change and new information becomes available. The Company uses its several decades of historical default and loss severity experience which capture multiple economic cycles. The Company uses a forecast of economic assumptions for a two-year period for most of its commercial and agricultural mortgage loans, while a one-year period is used for loans originated in certain markets. After the applicable forecast period, the Company reverts to its historical loss experience using a straight-line basis over two years. For evaluations of commercial mortgage loans, in addition to historical experience, management considers factors that include the impact of a rapid change to the economy, which may not be reflected in the loan portfolio, recent loss and recovery trend experience as compared to historical loss and recovery experience, and loan specific characteristics including debt service coverage ratios (“DSCR”). In estimating expected lifetime credit loss over the term of its commercial mortgage loans, the Company adjusts for expected prepayment and extension experience during the forecast period using historical prepayment and extension experience considering the expected position in the economic cycle and the loan profile (i.e., floating rate, shorter-term fixed rate and longer-term fixed rate) and after the forecast period using long-term historical prepayment experience. For evaluations of agricultural mortgage loans, in addition to historical experience, management considers factors that include increased stress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. In estimating expected lifetime credit loss over the term of its agricultural mortgage loans, the Company’s experience is much less sensitive to the position in the economic cycle and by loan profile; accordingly, historical prepayment experience is used, while extension terms are not prevalent with the Company’s agricultural mortgage loans.

Commercial mortgage loans are reviewed on an ongoing basis, which review includes, but is not limited to, an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, LTV ratios, DSCR and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher LTV ratios and lower DSCR. Agricultural mortgage loans are reviewed on an ongoing basis, which review includes, but is not limited to, property inspections, market analysis, estimated valuations of the underlying collateral, LTV ratios and borrower creditworthiness, as well as reviews on a geographic and property-type basis. The monitoring process for agricultural mortgage loans also focuses on higher risk loans.

For commercial mortgage loans, the primary credit quality indicator is the DSCR, which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the DSCR, the higher the risk of experiencing a credit loss. The Company also reviews the LTV ratio of its commercial mortgage loan portfolio. LTV ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the LTV ratio, the higher the risk of experiencing a credit loss. The DSCR and the values utilized in calculating the ratio are updated routinely. In addition, the LTV ratio is routinely updated for all but the lowest risk loans as part of the Company’s ongoing review of its commercial mortgage loan portfolio.

For agricultural mortgage loans, the Company’s primary credit quality indicator is the LTV ratio. The values utilized in calculating this ratio are developed in connection with the ongoing review of the agricultural mortgage loan portfolio and are routinely updated.

After commercial and agricultural mortgage loans are approved, the Company makes commitments to lend and, typically, borrowers draw down on some or all of the commitments. The timing of mortgage loan funding is based on the commitment expiration dates. A liability for credit loss for unfunded commercial and agricultural mortgage loan commitments that is not unconditionally cancellable is recognized in earnings and is reported within net investment gains (losses). The liability is based on estimated lifetime loss rates as described above and the amount of the outstanding commitments, which for lines of credit, considers estimated utilization rates. When the commitment is funded or expires, the liability is adjusted accordingly.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

Residential Mortgage Loan Portfolio Segment

The Company’s residential mortgage loan portfolio is comprised primarily of purchased closed end, amortizing residential mortgage loans, including both performing loans purchased within 12 months of origination and reperforming loans purchased after they have been performing for at least 12 months post-modification. Residential mortgage loans are pooled by loan type (i.e., new origination and reperforming) and pooled by similar risk profiles (including consumer credit score and LTV ratios). Estimated lifetime loss rates, which vary by loan type and risk profile, are applied to the amortized cost of each loan excluding accrued investment income on a quarterly basis to develop the ACL. The estimated lifetime loss rates are based on several factors, including (i) industry historical experience and expected results over the forecast period for defaults, (ii) loss severity, (iii) prepayment rates, (iv) current and forecasted economic conditions including growth, inflation, interest rates and unemployment levels, and (v) loan pool specific characteristics including consumer credit scores, LTV ratios, payment history and home prices. These evaluations are revised as conditions change and new information becomes available. The Company uses industry historical experience which captures multiple economic cycles as the Company has purchased most of its residential mortgage loans in the last five years. The Company uses a forecast of economic assumptions for a two-year period for most of its residential mortgage loans. After the applicable forecast period, the Company reverts to industry historical loss experience using a straight-line basis over one year.

For residential mortgage loans, the Company’s primary credit quality indicator is whether the loan is performing or nonperforming. The Company generally defines nonperforming residential mortgage loans as those that are 60 or more days past due and/or in nonaccrual status which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss.

Modifications to Borrowers Experiencing Financial Difficulty

The Company may modify mortgage loans to borrowers. Each mortgage loan modification is evaluated to determine whether the borrower was experiencing financial difficulties. Disclosed below are those modifications, in materially impacted segments, where the borrower was determined to be experiencing financial difficulties and the mortgage loans were modified by any of the following means, principal forgiveness, interest rate reduction, other-than-insignificant payment delay or term extension. The amount, timing and extent of modifications granted are considered in determining any ACL recorded. Mortgage loans are summarized as follows at:

			December 31, 2023
			Maturity Extension																								Weighted Average Life Increase												% of Total BV
			Amortized Cost																								Affected Loans (in Years)
			(Dollars in millions)
Commercial			$	522																							Less than one year																		1.0		%

For the year ended December 31, 2023, the Company did not have a significant amount of mortgage loans that were modified to borrowers experiencing financial difficulty that are not considered current.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

Credit Quality of Mortgage Loans by Portfolio Segment

The amortized cost of commercial mortgage loans by credit quality indicator and vintage year was as follows at December 31, 2023:

Credit Quality Indicator						2023						2022						2021						2020						2019						Prior						Revolving Loans						Total						% of Total
						(Dollars in millions)
LTV ratios:
Less than 65%						$	2,592					$	2,724					$	3,392					$	1,787					$	4,220					$	13,082					$	2,698					$	30,495					50.6		%
65% to 75%						372						4,465						2,737						1,651						1,636						6,114						—						16,975						28.1
76% to 80%						58						846						335						377						1,367						1,692						—						4,675						7.7
Greater than 80%						46						794						977						899						1,392						4,073						—						8,181						13.6
Total						$	3,068					$	8,829					$	7,441					$	4,714					$	8,615					$	24,961					$	2,698					$	60,326					100.0		%
DSCR:
> 1.20x						$	2,088					$	7,387					$	6,880					$	4,372					$	7,243					$	21,644					$	2,698					$	52,312					86.7		%
1.00x - 1.20x						666						590						543						—						849						1,986						—						4,634						7.7
<1.00x						314						852						18						342						523						1,331						—						3,380						5.6
Total						$	3,068					$	8,829					$	7,441					$	4,714					$	8,615					$	24,961					$	2,698					$	60,326					100.0		%

The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at December 31, 2023:

Credit Quality Indicator						2023						2022						2021						2020						2019						Prior						Revolving Loans						Total						% of Total
						(Dollars in millions)
LTV ratios:
Less than 65%						$	1,123					$	2,796					$	2,650					$	2,725					$	1,728					$	5,953					$	1,394					$	18,369					92.8		%
65% to 75%						30						96						301						160						24						542						121						1,274						6.4
76% to 80%						—						—						—						—						—						—						—						—						—
Greater than 80%						4						—						—						5						133						14						6						162						0.8
Total						$	1,157					$	2,892					$	2,951					$	2,890					$	1,885					$	6,509					$	1,521					$	19,805					100.0		%

The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at December 31, 2023:

Credit Quality Indicator						2023						2022						2021						2020						2019						Prior						Revolving Loans						Total						% of Total
						(Dollars in millions)
Performance indicators:
Performing						$	767					$	2,508					$	1,501					$	336					$	927					$	6,639					$	—					$	12,678					96.8		%
Nonperforming (1)						5						46						22						16						44						285						—						418						3.2
Total						$	772					$	2,554					$	1,523					$	352					$	971					$	6,924					$	—					$	13,096					100.0		%

---

(1)Includes residential mortgage loans in process of foreclosure of $140 million and $146 million at December 31, 2023 and 2022, respectively.

LTV ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. The amortized cost of commercial and agricultural mortgage loans with an LTV ratio in excess of 100% was $1.6 billion, or 2% of total commercial and agricultural mortgage loans, at December 31, 2023.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

Past Due and Nonaccrual Mortgage Loans

The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both December 31, 2023 and 2022. The Company defines delinquency consistent with industry practice, when mortgage loans are past due more than two or more months, as applicable, by portfolio segment. The past due and nonaccrual mortgage loans at amortized cost, prior to ACL by portfolio segment, were as follows:

						Past Due												Past Due and Still Accruing Interest												Nonaccrual
Portfolio Segment						December 31, 2023						December 31, 2022						December 31, 2023						December 31, 2022						December 31, 2023						December 31, 2022
						(In millions)
Commercial						$	75					$	6					$	3					$	6					$	427					$	169
Agricultural						40						124						—						21						206						131
Residential						418						473						16						12						402						462
Total						$	533					$	603					$	19					$	39					$	1,035					$	762

Real Estate and Real Estate Joint Ventures

The Company’s real estate investment portfolio is diversified by property type, geography and income stream, including income from operating leases, operating income and equity in earnings from equity method real estate joint ventures. Real estate investments, by income type, as well as income earned, were as follows at and for the periods indicated:

						December 31,												Years Ended December 31,
						2023						2022						2023						2022						2021
Income Type						Carrying Value												Income
						(In millions)
Wholly-owned real estate:
Leased real estate						$	4,446					$	4,523					$	366					$	392					$	429
Other real estate						507						487						297						252						199
Real estate joint ventures						8,379						8,127						(225)						556						326
Total real estate and real estate joint ventures						$	13,332					$	13,137					$	438					$	1,200					$	954

The carrying value of wholly-owned real estate acquired through foreclosure was $190 million and $182 million at December 31, 2023 and 2022, respectively. Depreciation expense on real estate investments was $112 million, $118 million and $123 million for the years ended December 31, 2023, 2022 and 2021, respectively. Real estate investments were net of accumulated depreciation of $952 million and $863 million at December 31, 2023 and 2022, respectively.

Leases

Leased Real Estate Investments - Operating Leases

The Company, as lessor, leases investment real estate, principally commercial real estate for office and retail use, through a variety of operating lease arrangements, which typically include tenant reimbursement for property operating costs and options to renew or extend the lease. In some circumstances, leases may include an option for the lessee to purchase the property. In addition, certain leases of retail space may stipulate that a portion of the income earned is contingent upon the level of the tenants’ revenues. The Company has elected a practical expedient of not separating non-lease components related to reimbursement of property operating costs from associated lease components. These property operating costs have the same timing and pattern of transfer as the related lease component, because they are incurred over the same period of time as the operating lease. Therefore, the combined component is accounted for as a single operating lease. Risk is managed through lessee credit analysis, property type diversification, and geographic diversification. Leased real estate investments and income earned, by property type, were as follows at and for the periods indicated:

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

						December 31,												Years Ended December 31,
						2023						2022						2023						2022						2021
Property Type						Carrying Value												Income
						(In millions)
Leased real estate investments:
Office						$	2,221					$	2,206					$	228					$	183					$	196
Retail						753						804						47						60						75
Apartment						641						625						47						56						66
Land						564						562						24						26						28
Industrial						200						254						15						62						58
Hotel						67						72						5						5						6
Total leased real estate investments						$	4,446					$	4,523					$	366					$	392					$	429

Future contractual receipts under operating leases at December 31, 2023 were $244 million in 2024, $200 million in 2025, $164 million in 2026, $144 million in 2027, $125 million in 2028, $957 million thereafter and, in total, were $1.8 billion.

Other Invested Assets

Other invested assets is comprised primarily of freestanding derivatives with positive estimated fair values (see Note 12), direct financing and leveraged leases (see Note 1), annuities funding structured settlement claims (see Note 1),operating joint ventures (see Note 1), COLI (see Note 1), tax credit and renewable energy partnerships (see Note 1) and FHLBNY common stock (see “— Invested Assets on Deposit, Held in Trust and Pledged as Collateral”).

Tax Credit Partnerships

The carrying value of tax credit partnerships was $518 million and $759 million at December 31, 2023 and 2022, respectively. Losses from tax credit partnerships included within net investment income were $145 million, $174 million and $195 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Cash Equivalents

Cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $10.8 billion and $10.0 billion, principally at estimated fair value, at December 31, 2023 and 2022, respectively.

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, at estimated fair value, were in fixed income securities of the following foreign governments and their agencies:

						December 31,
						2023						2022
						(In millions)
Japan						$	22,606					$	24,295
South Korea						$	6,411					$	5,887
Mexico						$	3,778					$	3,463

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

Securities Lending Transactions and Repurchase Agreements

Securities, Collateral and Reinvestment Portfolio

A summary of these transactions and agreements accounted for as secured borrowings were as follows:

						December 31,
						2023																		2022
						Securities (1)																		Securities (1)
Agreement Type						Estimated Fair Value						Cash Collateral Received from Counterparties (2)						Reinvestment Portfolio at Estimated Fair Value						Estimated Fair Value						Cash Collateral Received from Counterparties (2)						Reinvestment Portfolio at Estimated Fair Value
						(In millions)
Securities lending						$	10,510					$	10,788					$	10,553					$	11,756					$	12,092					$	11,833
Repurchase agreements						$	3,029					$	2,975					$	2,913					$	3,176					$	3,125					$	3,057

---

(1)These securities were included within fixed maturity securities AFS, short-term investments and cash equivalents at December 31, 2023 and within fixed maturity securities AFS and short-term investments at December 31, 2022.

(2)The liability for cash collateral is included within payables for collateral under securities loaned and other transactions.

Contractual Maturities

Contractual maturities of these transactions and agreements accounted for as secured borrowings were as follows:

						December 31,
						2023																														2022
						Remaining Maturities																														Remaining Maturities
Security Type						Open (1)						1 Month or Less						Over 1 Month to 6 Months						Over 6 Months to 1 Year						Total						Open (1)						1 Month or Less						Over 1 Month to 6 Months						Over 6 Months to 1 Year						Total
						(In millions)
Cash collateral liability by security type:
Securities lending:
U.S. government and agency						$	1,393					$	4,106					$	3,919					$	—					$	9,418					$	1,945					$	5,448					$	3,101					$	—					$	10,494
Foreign government						—						483						624						—						1,107						—						422						922						—						1,344
Agency RMBS						—						88						175						—						263						—						63						191						—						254
Total						$	1,393					$	4,677					$	4,718					$	—					$	10,788					$	1,945					$	5,933					$	4,214					$	—					$	12,092
Repurchase agreements:
U.S. government and agency						$	—					$	2,975					$	—					$	—					$	2,975					$	—					$	3,125					$	—					$	—					$	3,125

---

(1)The related security could be returned to the Company on the next business day, which would require the Company to immediately return the cash collateral.

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell investments to meet the return obligation, it may have difficulty selling such collateral that is invested in a timely manner, be forced to sell investments in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both.

The securities lending and repurchase agreements reinvestment portfolios consist principally of high quality, liquid, publicly-traded fixed maturity securities AFS, short-term investments, cash equivalents or cash. If the securities in the reinvestment portfolio become less liquid, liquidity resources within the general account are available to meet any potential cash demands when securities are put back by the counterparty.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value and were as follows at:

						December 31,
						2023						2022
						(In millions)
Invested assets on deposit (regulatory deposits)						$	1,596					$	1,514
Invested assets held in trust (external reinsurance agreements) (1)						941						881
Invested assets pledged as collateral (2)						26,017						25,442
Total invested assets on deposit, held in trust and pledged as collateral						$	28,554					$	27,837

---

(1)Represents assets held in trust related to third-party reinsurance agreements. Excludes assets held in trust related to reinsurance agreements between wholly-owned subsidiaries of $2.0 billion and $1.9 billion at December 31, 2023 and 2022, respectively.

(2)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 5), derivative transactions (see Note 12), secured debt and short-term debt related to repurchase agreements (see Note 16), and a collateral financing arrangement (see Note 17).

See “— Securities Lending Transactions and Repurchase Agreements” for information regarding securities supporting securities lending transactions and repurchase agreements and Note 10 for information regarding investments designated to the closed block. In addition, the Company’s investment in FHLBNY common stock, included within other invested assets, which is considered restricted until redeemed by the issuer, was $714 million and $729 million, at redemption value, at December 31, 2023 and 2022, respectively.

Collectively Significant Equity Method Investments

The Company held equity method investments of $25.2 billion at December 31, 2023, comprised primarily of other limited partnership interests (private equity funds and hedge funds), real estate joint ventures (including real estate funds), tax credit and renewable energy partnerships and operating joint ventures. The Company’s maximum exposure to loss related to these equity method investments was limited to the carrying value of these investments plus $6.7 billion of unfunded commitments at December 31, 2023.

As described in Note 1, the Company generally recognizes its share of earnings in its equity method investments within net investment income using a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. Aggregate net investment income from these equity method investments exceeded 10% of the Company’s consolidated pre-tax income (loss) for two of the three most recent annual periods: 2022 and 2021.

The following aggregated summarized financial data reflects the latest available financial information and does not represent the Company’s proportionate share of the assets, liabilities, or earnings of such entities. Aggregate total assets of these entities totaled $1.2 trillion at both December 31, 2023 and 2022. Aggregate total liabilities of these entities totaled $148.0 billion and $148.9 billion at December 31, 2023 and 2022, respectively. Aggregate net income (loss) of these entities totaled $32.8 billion, ($11.8) billion and $231.0 billion for the years ended December 31, 2023, 2022 and 2021, respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income (loss) and realized and unrealized investment gains (losses).

Variable Interest Entities

The Company has invested in legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

Consolidated VIEs

Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment.

The following table presents the total assets and total liabilities relating to investment related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at:

						December 31,
						2023												2022
Asset Type						Total Assets						Total Liabilities						Total Assets						Total Liabilities
						(In millions)
Investment funds (primarily other invested assets)						$	282					$	1					$	266					$	1
Renewable energy partnership (primarily other invested assets)						64						—						76						—
Total						$	346					$	1					$	342					$	1

Unconsolidated VIEs

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:

						December 31,
						2023												2022
Asset Type						Carrying Amount						Maximum Exposure to Loss (1)						Carrying Amount						Maximum Exposure to Loss (1)
						(In millions)
Fixed maturity securities AFS (2)						$	54,182					$	54,182					$	51,422					$	51,422
Other limited partnership interests						14,034						19,591						13,244						18,906
Other invested assets						1,206						1,275						1,310						1,387
Other investments (Real estate joint ventures and FVO securities)						1,039						1,055						945						948
Total						$	70,461					$	76,103					$	66,921					$	72,663

---

(1)The maximum exposure to loss relating to fixed maturity securities AFS and FVO securities is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests (“OLPI”) and real estate joint ventures (“REJV”) is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.

(2)For variable interests in Structured Products included within fixed maturity securities AFS, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.

In connection with the reinsurance transaction with subsidiaries of Global Atlantic Financial Group, collateral securing the reinsurance transaction was transferred to trusts that do not have substantial equity. The Company does not have a carrying amount related to the trusts but does manage a portion of the invested assets. For managing these assets, the Company will receive an investment management fee which represents a variable interest. The Company’s maximum exposure to loss is limited to the investment management fee revenue that has been earned but not yet received. See Note 9 for further information on this reinsurance transaction.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

As described in Note 24, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs for each of the years ended December 31, 2023, 2022 and 2021.

Net Investment Income

The composition of net investment income by asset type was as follows:

						Years Ended December 31,
Asset Type						2023						2022						2021
						(In millions)
Fixed maturity securities AFS						$	12,990					$	11,490					$	10,996
Equity securities						32						36						36
FVO securities						188						(127)						167
Mortgage loans						4,761						3,539						3,435
Policy loans						471						460						474
Real estate and REJV						438						1,200						954
OLPI						454						858						4,927
Cash, cash equivalents and short-term investments						1,011						358						103
Operating joint ventures						38						51						77
Other						604						633						223
Subtotal investment income						20,987						18,498						21,392
Less: Investment expenses						2,262						1,284						949
Subtotal, net						18,725						17,214						20,443
Unit-linked investments						1,183						(1,298)						952
Net investment income						$	19,908					$	15,916					$	21,395
Net Investment Income (“NII”) Information
Net realized and unrealized gains (losses) recognized in NII:
Net realized gains (losses) from sales and disposals (primarily FVO securities and Unit-linked investments)						$	207					$	155					$	518
Net unrealized gains (losses) from changes in estimated fair value (primarily FVO securities and Unit-linked investments)						1,168						(1,586)						616
Net realized and unrealized gains (losses) recognized in NII						$	1,375					$	(1,431)					$	1,134
Changes in estimated fair value subsequent to purchase of FVO securities and Unit-linked investments still held at the end of the respective periods and recognized in NII						$	1,119					$	(1,286)					$	730
Equity method investments NII (primarily REJV, OLPI, tax credit and renewable energy partnerships and operating joint ventures)						$	151					$	1,305					$	5,136

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

Net Investment Gains (Losses)

Net Investment Gains (Losses) by Asset Type and Transaction Type

The composition of net investment gains (losses) by asset type and transaction type was as follows:

						Years Ended December 31,
Asset Type						2023						2022						2021
						(In millions)
Fixed maturity securities AFS (1)						$	(2,471)					$	(1,912)					$	66
Equity securities						81						(133)						108
Mortgage loans (1)						(270)						21						(18)
Real estate and REJV (excluding changes in estimated fair value)						69						653						502
OLPI (excluding changes in estimated fair value)						12						53						(6)
Other gains (losses) (2)						(158)						178						131
Subtotal						(2,737)						(1,140)						783
Change in estimated fair value of OLPI and REJV						(6)						(14)						45
Non-investment portfolio gains (losses)						(81)						(106)						715
Subtotal						(87)						(120)						760
Net investment gains (losses)						$	(2,824)					$	(1,260)					$	1,543
Transaction Type
Realized gains (losses) on investments sold or disposed (1)						$	(1,028)					$	(880)					$	711
Impairment (losses) (1), (2)						(1,498)						(40)						(24)
Recognized gains (losses):
Change in allowance for credit loss recognized in earnings						(271)						(134)						(86)
Unrealized net gains (losses) recognized in earnings						54						(100)						227
Total recognized gains (losses)						(217)						(234)						141
Non-investment portfolio gains (losses)						(81)						(106)						715
Net investment gains (losses)						$	(2,824)					$	(1,260)					$	1,543
Net Investment Gains (Losses) (“NIGL”) Information
Changes in estimated fair value subsequent to purchase of equity securities still held at the end of the respective periods and recognized in NIGL						$	22					$	(89)					$	77
Other gains (losses) include:
Gains (losses) on disposed investments which were previously in a qualified cash flow hedge relationship						$	(7)					$	38					$	88
Gains (losses) on leveraged leases and renewable energy partnerships						$	24					$	33					$	12
Foreign currency gains (losses)						$	52					$	183					$	(9)
Net Realized Investment Gains (Losses) From Sales and Disposals of Investments
Recognized in NIGL						$	(1,028)					$	(880)					$	711
Recognized in NII						207						155						518
Net realized investment gains (losses) from sales and disposals of investments						$	(821)					$	(725)					$	1,229

---

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

11. Investments (continued)

(1)Includes a net loss of $1.2 billion during the year ended December 31, 2023 for investments disposed of in connection with a reinsurance transaction.The net loss was comprised of ($1.3) billion of impairments and $95 million of realized gains on disposal for fixed maturity securities AFS, ($56) million of adjustments to mortgage loans, reflected as impairments, (calculated at lower of amortized cost or estimated fair value), and ($2) million of realized losses on disposal for mortgage loans. See Note 9 for further information on this reinsurance transaction.

(2)See Note 3 for information regarding the Company’s pending disposition of MetLife Malaysia.

Fixed Maturity Securities AFS and Equity Securities – Composition of Net Investment Gains (Losses)

The composition of net investment gains (losses) for these securities is as follows:

						Years Ended December 31,
Fixed Maturity Securities AFS						2023						2022						2021
						(In millions)
Proceeds						$	40,625					$	67,754					$	54,612
Gross investment gains						$	563					$	935					$	761
Gross investment (losses)						(1,732)						(2,704)						(656)
Realized gains (losses) on sales and disposals						(1,169)						(1,769)						105
Net credit loss (provision) release (change in ACL recognized in earnings)						(2)						(103)						(15)
Impairment (losses)						(1,300)						(40)						(24)
Net credit loss (provision) release and impairment (losses)						(1,302)						(143)						(39)
Net investment gains (losses)						$	(2,471)					$	(1,912)					$	66
Equity Securities
Realized gains (losses) on sales and disposals						$	21					$	(47)					$	(69)
Unrealized net gains (losses) recognized in earnings						60						(86)						177
Net investment gains (losses)						$	81					$	(133)					$	108

12. Derivatives

Accounting for Derivatives

See Note 1 for a description of the Company’s accounting policies for derivatives and Note 13 for information about the fair value hierarchy for derivatives.

Derivative Strategies

The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives.

Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets.

Interest Rate Derivatives

The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, interest rate total return swaps, caps, floors, swaptions, futures and forwards.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and nonqualifying hedging relationships.

The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. government and agency, or other fixed maturity securities AFS. Structured interest rate swaps are included in interest rate swaps and are not designated as hedging instruments.

Interest rate total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and a benchmark interest rate, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate total return swaps are used by the Company to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate total return swaps in nonqualifying hedging relationships.

The Company purchases interest rate caps primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, and interest rate floors primarily to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in nonqualifying hedging relationships.

In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swap curve performance, and to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. The Company utilizes exchange-traded interest rate futures in nonqualifying hedging relationships.

Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in nonqualifying hedging relationships. Swaptions are included in interest rate options.

The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow and nonqualifying hedging relationships.

Synthetic GICs are contracts that simulate the performance of traditional GICs through the use of financial instruments. The contractholder owns the underlying assets, and the Company provides a guarantee (or “wrap”) on the participant funds for an annual risk charge. The Company’s maximum exposure to loss on synthetic GICs is the notional amount, in the event the values of all of the underlying assets were reduced to zero. The Company’s risk is substantially lower due to contractual provisions that limit the portfolio to high quality assets, which are pre-approved and monitored for compliance, as well as the collection of risk charges. In addition, the crediting rates reset periodically to amortize market value gains and losses over a period equal to the duration of the wrapped portfolio, subject to a 0% floor. While plan participants may transact at book value, contractholder withdrawals may only occur immediately at market value, or at book value paid over a period of time per contract provisions. Synthetic GICs are not designated as hedging instruments.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

Foreign Currency Exchange Rate Derivatives

The Company uses foreign currency exchange rate derivatives, including foreign currency swaps, foreign currency forwards, currency options and exchange-traded currency futures, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. The Company also uses foreign currency derivatives to hedge the foreign currency exchange rate risk associated with certain of its net investments in foreign operations.

In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and nonqualifying hedging relationships.

In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in fair value, NIFO hedges and nonqualifying hedging relationships.

The Company enters into currency options that give it the right, but not the obligation, to sell the foreign currency amount in exchange for a functional currency amount within a limited time at a contracted price. The contracts may also be net settled in cash, based on differentials in the foreign currency exchange rate and the strike price. The Company uses currency options to hedge against the foreign currency exposure inherent in certain of its variable annuity products. The Company also uses currency options as an economic hedge of foreign currency exposure related to the Company’s non-U.S. subsidiaries. The Company utilizes currency options in NIFO hedges and nonqualifying hedging relationships.

To a lesser extent, the Company uses exchange-traded currency futures to hedge currency mismatches between assets and liabilities, and to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. The Company utilizes exchange-traded currency futures in nonqualifying hedging relationships.

Credit Derivatives

The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations and involuntary restructuring for corporate obligors, as well as repudiation, moratorium or governmental intervention for sovereign obligors. In each case, payout on a credit default swap is triggered only after the relevant third party, Credit Derivatives Determinations Committee determines that a credit event has occurred. The Company utilizes credit default swaps in nonqualifying hedging relationships.

The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. government and agency, or other fixed maturity securities AFS. These credit default swaps are not designated as hedging instruments.

The Company enters into forwards to lock in the price to be paid for forward purchases of certain securities. The price is agreed upon at the time of the contract and payment for the contract is made at a specified future date. When the primary purpose of entering into these transactions is to hedge against the risk of changes in purchase price due to changes in credit spreads, the Company designates these transactions as credit forwards. The Company utilizes credit forwards in cash flow hedging relationships.

Equity Derivatives

The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and equity total return swaps.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the underlying equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of these contracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in nonqualifying hedging relationships.

Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in nonqualifying hedging relationships.

In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. The Company utilizes exchange-traded equity futures in nonqualifying hedging relationships.

In an equity total return swap, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and a benchmark interest rate, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses equity total return swaps to hedge its equity market guarantees in certain of its insurance products. Equity total return swaps can be used as hedges or to synthetically create investments. The Company utilizes equity total return swaps in nonqualifying hedging relationships.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

Primary Risks Managed by Derivatives

The following table presents the primary underlying risk exposure, gross notional amount and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at:

			Primary Underlying Risk Exposure						December 31,
			2023																		2022
									Estimated Fair Value																		Estimated Fair Value
			Gross Notional Amount						Assets						Liabilities						Gross Notional Amount						Assets						Liabilities
									(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges:
Interest rate swaps			Interest rate						$	4,550					$	1,257					$	535					$	4,143					$	1,353					$	467
Foreign currency swaps			Foreign currency exchange rate						1,475						55						—						602						82						—
Foreign currency forwards			Foreign currency exchange rate						450						—						65						1,336						10						89
Subtotal									6,475						1,312						600						6,081						1,445						556
Cash flow hedges:
Interest rate swaps			Interest rate						4,156						1						265						4,107						8						262
Interest rate forwards			Interest rate						6,115						51						938						7,447						1						1,354
Foreign currency swaps			Foreign currency exchange rate						43,906						2,457						1,509						42,608						3,554						1,699
Subtotal									54,177						2,509						2,712						54,162						3,563						3,315
NIFO hedges:
Foreign currency forwards			Foreign currency exchange rate						503						—						8						680						—						38
Currency options			Foreign currency exchange rate						3,000						394						—						3,000						236						—
Subtotal									3,503						394						8						3,680						236						38
Total qualifying hedges									64,155						4,215						3,320						63,923						5,244						3,909
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps			Interest rate						29,801						1,497						1,102						31,661						1,660						1,354
Interest rate floors			Interest rate						15,321						41						—						25,270						125						—
Interest rate caps			Interest rate						30,016						373						—						48,290						950						—
Interest rate futures			Interest rate						1,243						1						5						1,453						2						1
Interest rate options			Interest rate						43,926						385						103						44,391						473						88
Interest rate forwards			Interest rate						2,383						69						36						381						—						32
Synthetic GICs			Interest rate						49,066						—						—						46,316						—						—
Foreign currency swaps			Foreign currency exchange rate						11,891						1,200						356						12,815						1,454						383
Foreign currency forwards			Foreign currency exchange rate						14,128						310						806						16,195						544						661
Currency futures			Foreign currency exchange rate						314						2						—						333						8						—
Currency options			Foreign currency exchange rate						50						—						—						—						—						—
Credit default swaps — purchased			Credit						2,877						3						79						2,925						18						79
Credit default swaps — written			Credit						12,468						233						5						11,512						133						28
Equity futures			Equity market						2,163						8						11						2,988						8						4
Equity index options			Equity market						19,421						399						255						16,701						765						323
Equity variance swaps			Equity market						99						—						2						163						4						1
Equity total return swaps			Equity market						1,912						1						218						2,799						23						112
Total non-designated or nonqualifying derivatives									237,079						4,522						2,978						264,193						6,167						3,066
Total									$	301,234					$	8,737					$	6,298					$	328,116					$	11,411					$	6,975

Included in the table above, the Company uses various OTC and exchange traded derivatives to hedge variable annuity guarantees. The table below presents the gross notional amount, estimated fair value and primary underlying risk exposure of the derivatives hedging variable annuity guarantees accounted for as MRBs:

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

						December 31, 2023																		December 31, 2022
Primary Underlying Risk Exposure						Gross Notional Amount						Estimated Fair Value												Gross Notional Amount						Estimated Fair Value
Assets						Liabilities						Assets						Liabilities
						(In millions)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate						$	9,096					$	13					$	663					$	9,098					$	41					$	764
Foreign currency exchange rate						716						22						2						887						26						2
Equity market						5,189						77						373						8,829						233						381
						$	15,001					$	112					$	1,038					$	18,814					$	300					$	1,147

The change in estimated fair values and earned income of derivatives hedging variable annuity guarantees, recorded in net derivative gains (losses), was ($596) million and ($640) million for the years ended December 31, 2023 and 2022, respectively.

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both December 31, 2023 and 2022. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge MRBs that do not qualify for hedge accounting because the changes in estimated fair value of the MRBs are already recorded in net income; and (iv) written credit default swaps and interest rate swaps that are used to synthetically create investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

The Effects of Derivatives on the Consolidated Statements of Operations and Comprehensive Income (Loss)

The following table presents the consolidated financial statement location and amount of gain (loss) recognized on fair value, cash flow, NIFO, nonqualifying hedging relationships and embedded derivatives:

						Year Ended December 31, 2023
						Net Investment Income						Net Investment Gains (Losses)						Net Derivative Gains (Losses)						Policyholder Benefits and Claims						Interest Credited to Policyholder Account Balances						Other Expenses						OCI
						(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)						$	(3)					$	—					N/A						$	—					$	29					$	—					N/A
Hedged items						3						—						N/A						(26)						(31)						—						N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)						(39)						(41)						N/A						—						20						—						N/A
Hedged items						38						33						N/A						—						(24)						—						N/A
Amount excluded from the assessment of hedge effectiveness						—						(20)						N/A						—						—						—						N/A
Subtotal						(1)						(28)						N/A						(26)						(6)						—						N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI						N/A						N/A						N/A						N/A						N/A						N/A						$	109
Amount of gains (losses) reclassified from AOCI into income						50						90						—						—						—						—						(140)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI						N/A						N/A						N/A						N/A						N/A						N/A						(1,215)
Amount of gains (losses) reclassified from AOCI into income						4						558						—						—						—						2						(564)
Foreign currency transaction gains (losses) on hedged items						—						(547)						—						—						—						—						—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI						N/A						N/A						N/A						N/A						N/A						N/A						—
Amount of gains (losses) reclassified from AOCI into income						—						1						—						—						—						—						(1)
Subtotal						54						102						—						—						—						2						(1,811)
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)						N/A						5						N/A						N/A						N/A						N/A						226
Non-derivative hedging instruments						N/A						N/A						N/A						N/A						N/A						N/A						20
Subtotal						N/A						5						N/A						N/A						N/A						N/A						246
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)						—						N/A						(979)						N/A						N/A						N/A						N/A
Foreign currency exchange rate derivatives (1)						—						N/A						(1,443)						N/A						N/A						N/A						N/A
Credit derivatives — purchased (1)						—						N/A						(17)						N/A						N/A						N/A						N/A
Credit derivatives — written (1)						—						N/A						135						N/A						N/A						N/A						N/A
Equity derivatives (1)						(52)						N/A						(1,296)						N/A						N/A						N/A						N/A
Foreign currency transaction gains (losses) on hedged items						—						N/A						366						N/A						N/A						N/A						N/A
Subtotal						(52)						N/A						(3,234)						N/A						N/A						N/A						N/A
Earned income on derivatives						178						—						1,055						4						(149)						—						—
Synthetic GICs						N/A						N/A						75						N/A						N/A						N/A						N/A
Embedded derivatives						N/A						N/A						(36)						N/A						N/A						N/A						N/A
Total						$	179					$	79					$	(2,140)					$	(22)					$	(155)					$	2					$	(1,565)

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

						Year Ended December 31, 2022
						Net Investment Income						Net Investment Gains (Losses)						Net Derivative Gains (Losses)						Policyholder Benefits and Claims						Interest Credited to Policyholder Account Balances						Other Expenses						OCI
						(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)						$	9					$	—					N/A						$	(959)					$	(254)					$	—					N/A
Hedged items						(9)						—						N/A						905						249						—						N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)						109						(220)						N/A						—						—						—						N/A
Hedged items						(110)						217						N/A						—						—						—						N/A
Amount excluded from the assessment of hedge effectiveness						—						46						N/A						—						—						—						N/A
Subtotal						(1)						43						N/A						(54)						(5)						—						N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI						N/A						N/A						N/A						N/A						N/A						N/A						$	(2,367)
Amount of gains (losses) reclassified from AOCI into income						59						41						—						—						—						4						(104)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI						N/A						N/A						N/A						N/A						N/A						N/A						1,784
Amount of gains (losses) reclassified from AOCI into income						6						(609)						—						—						—						1						602
Foreign currency transaction gains (losses) on hedged items						—						587						—						—						—						—						—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI						N/A						N/A						N/A						N/A						N/A						N/A						—
Amount of gains (losses) reclassified from AOCI into income						—						—						—						—						—						—						—
Subtotal						65						19						—						—						—						5						(85)
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)						N/A						N/A						N/A						N/A						N/A						N/A						85
Non-derivative hedging instruments						N/A						N/A						N/A						N/A						N/A						N/A						47
Subtotal						N/A						N/A						N/A						N/A						N/A						N/A						132
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)						3						N/A						(3,967)						N/A						N/A						N/A						N/A
Foreign currency exchange rate derivatives (1)						2						N/A						(372)						N/A						N/A						N/A						N/A
Credit derivatives — purchased (1)						—						N/A						75						N/A						N/A						N/A						N/A
Credit derivatives — written (1)						—						N/A						(92)						N/A						N/A						N/A						N/A
Equity derivatives (1)						45						N/A						673						N/A						N/A						N/A						N/A
Foreign currency transaction gains (losses) on hedged items						—						N/A						282						N/A						N/A						N/A						N/A
Subtotal						50						N/A						(3,401)						N/A						N/A						N/A						N/A
Earned income on derivatives						376						—						1,029						112						(120)						—						—
Synthetic GICs						N/A						N/A						—						N/A						N/A						N/A						N/A
Embedded derivatives						N/A						N/A						121						N/A						N/A						N/A						N/A
Total						$	490					$	62					$	(2,251)					$	58					$	(125)					$	5					$	47

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

						Year Ended December 31, 2021
						Net Investment Income						Net Investment Gains (Losses)						Net Derivative Gains (Losses)						Policyholder Benefits and Claims						Interest Credited to Policyholder Account Balances						Other Expenses						OCI
						(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)						$	6					$	—					N/A						$	(373)					$	(83)					$	—					N/A
Hedged items						(6)						—						N/A						328						78						—						N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)						50						(191)						N/A						—						—						—						N/A
Hedged items						(44)						185						N/A						—						—						—						N/A
Amount excluded from the assessment of hedge effectiveness						—						—						N/A						—						—						—						N/A
Subtotal						6						(6)						N/A						(45)						(5)						—						N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI						N/A						N/A						N/A						N/A						N/A						N/A						$	(599)
Amount of gains (losses) reclassified from AOCI into income						56						84						—						—						—						3						(143)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI						N/A						N/A						N/A						N/A						N/A						N/A						500
Amount of gains (losses) reclassified from AOCI into income						8						(403)						—						—						—						2						393
Foreign currency transaction gains (losses) on hedged items						—						401						—						—						—						—						—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI						N/A						N/A						N/A						N/A						N/A						N/A						(14)
Amount of gains (losses) reclassified from AOCI into income						—						—						—						—						—						—						—
Subtotal						64						82						—						—						—						5						137
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)						N/A						N/A						N/A						N/A						N/A						N/A						97
Non-derivative hedging instruments						N/A						N/A						N/A						N/A						N/A						N/A						42
Subtotal						N/A						N/A						N/A						N/A						N/A						N/A						139
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)						2						N/A						(2,041)						N/A						N/A						N/A						N/A
Foreign currency exchange rate derivatives (1)						—						N/A						(983)						N/A						N/A						N/A						N/A
Credit derivatives — purchased (1)						—						N/A						9						N/A						N/A						N/A						N/A
Credit derivatives — written (1)						—						N/A						41						N/A						N/A						N/A						N/A
Equity derivatives (1)						(56)						N/A						(1,580)						N/A						N/A						N/A						N/A
Foreign currency transaction gains (losses) on hedged items						—						N/A						249						N/A						N/A						N/A						N/A
Subtotal						(54)						N/A						(4,305)						N/A						N/A						N/A						N/A
Earned income on derivatives						151						—						993						166						(121)						—						—
Synthetic GICs						N/A						N/A						—						N/A						N/A						N/A						N/A
Embedded derivatives						N/A						N/A						55						—						N/A						N/A						N/A
Total						$	167					$	76					$	(3,257)					$	121					$	(126)					$	5					$	276

---

(1)Excludes earned income on derivatives.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

Fair Value Hedges

The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities; and (iii) foreign currency forwards to hedge the foreign currency fair value exposure of foreign currency denominated investments.

The following table presents the balance sheet classification, carrying amount and cumulative fair value hedging adjustments for items designated and qualifying as hedged items in fair value hedges:

Balance Sheet Line Item						Carrying Amount of the Hedged Assets/(Liabilities)																		Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets/(Liabilities) (1)
						December 31, 2023						December 31, 2022												December 31, 2023						December 31, 2022
						(In millions)
Fixed maturity securities AFS						$	454					$	1,411											$	3					$	1
Mortgage loans						$	359					$	331											$	(11)					$	(19)
Future policy benefits						$	(2,863)					$	(2,816)											$	191					$	199
Policyholder account balances						$	(1,911)					$	(1,789)											$	25					$	104

---

(1)Includes ($111) million and ($136) million of hedging adjustments on discontinued hedging relationships at December 31, 2023 and 2022, respectively.

For the Company’s foreign currency forwards, the change in the estimated fair value of the derivative related to the changes in the difference between the spot price and the forward price is excluded from the assessment of hedge effectiveness. The Company has elected to record changes in estimated fair value of excluded components in earnings. For all other derivatives, all components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

Cash Flow Hedges

The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed rate investments; and (v) interest rate swaps and interest rate forwards to hedge forecasted fixed rate borrowings.

In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified amounts from AOCI into income. These amounts were $31 million, $30 million and ($1) million for the years ended December 31, 2023, 2022 and 2021, respectively.

At December 31, 2023 and 2022, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed five years and six years, respectively.

At December 31, 2023 and 2022, the balance in AOCI associated with cash flow hedges was $166 million and $2.0 billion, respectively.

All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

At December 31, 2023, the Company expected to reclassify $41 million of deferred net gains (losses) on derivatives in AOCI to earnings within the next 12 months.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

NIFO Hedges

The Company uses foreign currency exchange rate derivatives, which may include foreign currency forwards and currency options, to hedge portions of its NIFO against adverse movements in exchange rates. The Company also designates a portion of its foreign-denominated debt as a non-derivative hedging instrument of its net investments in foreign operations. The Company assesses hedge effectiveness of its derivatives based upon the change in forward rates and assesses its non-derivative hedging instruments based upon the change in spot rates. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

When net investments in foreign operations are sold or substantially liquidated, the amounts in AOCI are reclassified to the statement of operations.

At December 31, 2023 and 2022, the cumulative foreign currency translation gain (loss) recorded in AOCI related to NIFO hedges was $681 million and $435 million, respectively. At December 31, 2023 and 2022, the carrying amount of debt designated as a non-derivative hedging instrument was $298 million and $318 million, respectively.

See Note 16 for additional information on foreign-denominated debt.

Credit Derivatives

In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the effects of derivatives on the consolidated statements of operations and comprehensive income (loss) table. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current estimated fair value of the credit default swaps.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at:

						December 31,
						2023																		2022
Rating Agency Designation of Referenced Credit Obligations (1)						Estimated Fair Value of Credit Default Swaps						Maximum Amount of Future Payments under Credit Default Swaps						Weighted Average Years to Maturity (2)						Estimated Fair Value of Credit Default Swaps						Maximum Amount of Future Payments under Credit Default Swaps						Weighted Average Years to Maturity (2)
						(Dollars in millions)
Aaa/Aa/A
Single name credit default swaps (3)						$	2					$	150					1.6						$	3					$	158					2.2
Credit default swaps referencing indices						80						3,830						2.7						79						4,251						3.4
Subtotal						82						3,980						2.6						82						4,409						3.4
Baa
Single name credit default swaps (3)						1						99						2.1						1						81						2.5
Credit default swaps referencing indices						145						8,188						5.4						28						6,775						5.6
Subtotal						146						8,287						5.3						29						6,856						5.5
Ba
Single name credit default swaps (3)						—						17						2.1						—						62						1.3
Credit default swaps referencing indices						2						25						3.0						2						25						4.0
Subtotal						2						42						2.6						2						87						2.1
B
Credit default swaps referencing indices						2						129						5.0						2						130						4.7
Subtotal						2						129						5.0						2						130						4.7
Caa
Credit default swaps referencing indices						(4)						30						2.5						(10)						30						3.5
Subtotal						(4)						30						2.5						(10)						30						3.5
Total						$	228					$	12,468					4.5						$	105					$	11,512					4.7

---

(1)The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), S&P and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used.

(2)The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

(3)Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or municipals.

Credit Risk on Freestanding Derivatives

The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties in jurisdictions in which it understands that close-out netting should be enforceable and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are governed by International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, close-out netting permits the Company (subject to financial regulations such as the Orderly Liquidation Authority under Title II of Dodd-Frank) to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions and to apply collateral to the obligations, without application of the automatic stay, upon the counterparty’s bankruptcy. All of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives as required by applicable law. Additionally, the Company is required to pledge initial margin for certain new OTC-bilateral derivative transactions to third party custodians.

The Company’s OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by brokers and central clearinghouses to such derivatives.

See Note 13 for a description of the impact of credit risk on the valuation of derivatives.

The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

						December 31,
						2023												2022
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement						Assets						Liabilities						Assets						Liabilities
						(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)						$	8,749					$	6,014					$	11,438					$	6,628
OTC-cleared (1)						158						277						121						342
Exchange-traded						11						16						18						5
Total gross estimated fair value of derivatives presented on the consolidated balance sheets (1)						8,918						6,307						11,577						6,975
Gross amounts not offset on the consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral						(3,568)						(3,568)						(4,579)						(4,579)
OTC-cleared						(5)						(5)						(33)						(33)
Exchange-traded						(1)						(1)						(1)						(1)
Cash collateral: (3), (4)
OTC-bilateral						(3,448)						—						(5,432)						—
OTC-cleared						(150)						(239)						(35)						(295)
Exchange-traded						—						(5)						—						(3)
Securities collateral: (5)
OTC-bilateral						(1,563)						(2,427)						(1,322)						(2,024)
OTC-cleared						—						(33)						—						(14)
Exchange-traded						—						(10)						—						(1)
Net amount after application of master netting agreements and collateral						$	183					$	19					$	175					$	25

---

(1)At December 31, 2023 and 2022, derivative assets included income (expense) accruals reported in accrued investment income or in other liabilities of $181 million and $166 million, respectively, and derivative liabilities included (income) expense accruals reported in accrued investment income or in other liabilities of $9 million and $0, respectively.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

(2)Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.

(3)Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives, where the central clearinghouse treats variation margin as collateral, is included in cash and cash equivalents, short-term investments or in fixed maturity securities AFS, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. For certain collateral agreements, cash collateral is pledged to the Company as initial margin on its OTC-bilateral derivatives.

(4)The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2023 and 2022, the Company received excess cash collateral of $163 million and $252 million, respectively, and provided excess cash collateral of $98 million and $125 million, respectively, which is not included in the table above due to the foregoing limitation.

(5)Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2023, none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities AFS on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At December 31, 2023 and 2022, the Company received excess securities collateral with an estimated fair value of $298 million and $398 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At December 31, 2023 and 2022, the Company provided excess securities collateral with an estimated fair value of $1.5 billion and $1.2 billion, respectively, for its OTC-bilateral derivatives, $945 million and $1.0 billion, respectively, for its OTC-cleared derivatives, and $137 million and $184 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the collateral amount owed by that counterparty reaches a minimum transfer amount. Substantially all of the Company’s netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade credit rating from each of Moody’s and S&P. If a party’s credit or financial strength rating, as applicable, were to fall below that specific investment grade credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement payment based on such party’s reasonable valuation of the derivatives. A small number of these arrangements also include credit-contingent provisions that include a threshold above which collateral must be posted. Such agreements provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the credit ratings of MetLife, Inc. and/or the counterparty. At December 31, 2023, the amount of collateral not provided by the Company due to the existence of these thresholds was $15 million.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

12. Derivatives (continued)

The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that were in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged.

						December 31,
						2023																		2022
						Derivatives Subject to Credit-Contingent Provisions						Derivatives Not Subject to Credit-Contingent Provisions						Total						Derivatives Subject to Credit-Contingent Provisions						Derivatives Not Subject to Credit-Contingent Provisions						Total
						(In millions)
Estimated fair value of derivatives in a net liability position (1)						$	2,443					$	4					$	2,447					$	2,049					$	—					$	2,049
Estimated fair value of collateral provided:
Fixed maturity securities AFS						$	3,011					$	6					$	3,017					$	2,267					$	—					$	2,267

---

(1)After taking into consideration the existence of netting agreements.

Embedded Derivatives

The Company issues certain products or purchases certain investments that contain embedded derivatives that are required to be separated from their host contracts and accounted for as freestanding derivatives.

The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at:

												December 31,
						Balance Sheet Location						2023						2022
												(In millions)
Funds withheld on ceded reinsurance						Other liabilities						$	(70)					$	(123)
Fixed annuities with equity indexed returns						Policyholder account balances						163						140
Total												$	93					$	17

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value

When developing estimated fair values, the Company considers three broad valuation approaches: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation approach to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows:

Level 1			Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities AFS.

Level 2			Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3			Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability.

Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. The Company’s ability to sell securities, as well as the price ultimately realized for these securities, depends upon the demand and liquidity in the market and increases the use of judgment in determining the estimated fair value of certain securities.

Considerable judgment is often required in interpreting the market data used to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts.

Table of Contents

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value (continued)

Recurring Fair Value Measurements

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at:

						December 31, 2023
						Fair Value Hierarchy
						Level 1						Level 2						Level 3						Total Estimated Fair Value
						(In millions)
Assets
Fixed maturity securities AFS:
U.S. corporate						$	—					$	67,003					$	13,714					$	80,717
Foreign corporate						—						40,813						14,631						55,444
Foreign government						—						45,438						51						45,489
U.S. government and agency						15,327						16,925						—						32,252
RMBS						3						27,495						1,598						29,096
ABS & CLO						—						15,191						2,103						17,294
Municipals						—						11,171						—						11,171
CMBS						—						9,099						850						9,949
Total fixed maturity securities AFS						15,330						233,135						32,947						281,412
Equity securities						429						79						249						757
Unit-linked and FVO securities (1)						7,520						1,708						1,103						10,331
Short-term investments (2)						5,103						667						27						5,797
Other investments						48						363						975						1,386
Derivative assets: (3)
Interest rate						1						3,674						—						3,675
Foreign currency exchange rate						2						4,393						23						4,418
Credit						—						228						8						236
Equity market						8						393						7						408
Total derivative assets						11						8,688						38						8,737
Market risk benefits						—						—						286						286
Reinsured market risk benefits (4)						—						—						18						18
Separate account assets (5)						66,229						77,258						1,147						144,634
Total assets (6)						$	94,670					$	321,898					$	36,790					$	453,358
Liabilities
Derivative liabilities: (3)
Interest rate						$	5					$	2,805					$	174					$	2,984
Foreign currency exchange rate						—						2,737						7						2,744
Credit						—						84						—						84
Equity market						11						475						—						486
Total derivative liabilities						16						6,101						181						6,298
Embedded derivatives within liability host contracts (7)						—						—						93						93
Market risk benefits						—						—						3,179						3,179
Separate account liabilities (5)						4						4						—						8
Total liabilities						$	20					$	6,105					$	3,453					$	9,578

Table of Contents

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value (continued)

						December 31, 2022
						Fair Value Hierarchy
						Level 1						Level 2						Level 3						Total Estimated Fair Value
						(In millions)
Assets
Fixed maturity securities AFS:
U.S. corporate						$	—					$	67,578					$	12,452					$	80,030
Foreign corporate						—						40,623						11,949						52,572
Foreign government						—						46,644						103						46,747
U.S. government and agency						15,955						16,274						—						32,229
RMBS						4						24,515						1,646						26,165
ABS & CLO						—						14,895						1,927						16,822
Municipals						—						12,152						—						12,152
CMBS						—						9,367						696						10,063
Total fixed maturity securities AFS						15,959						232,048						28,773						276,780
Equity securities						1,293						132						259						1,684
Unit-linked and FVO securities (1)						7,101						1,780						787						9,668
Short-term investments (2)						3,830						686						57						4,573
Other investments						—						206						926						1,132
Derivative assets: (3)
Interest rate						2						4,570						—						4,572
Foreign currency exchange rate						8						5,670						210						5,888
Credit						—						69						82						151
Equity market						8						785						7						800
Total derivative assets						18						11,094						299						11,411
Market risk benefits						—						—						280						280
Reinsured market risk benefits (4)						—						—						23						23
Separate account assets (5)						65,107						79,703						1,228						146,038
Total assets (6)						$	93,308					$	325,649					$	32,632					$	451,589
Liabilities
Derivative liabilities: (3)
Interest rate						$	1					$	3,153					$	404					$	3,558
Foreign currency exchange rate						—						2,820						50						2,870
Credit						—						92						15						107
Equity market						4						436						—						440
Total derivative liabilities						5						6,501						469						6,975
Embedded derivatives within liability host contracts (7)						—						—						17						17
Market risk benefits						—						—						3,763						3,763
Separate account liabilities (5)						8						15						18						41
Total liabilities						$	13					$	6,516					$	4,267					$	10,796

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(1)Unit-linked and FVO securities were primarily comprised of Unit-linked investments at both December 31, 2023 and 2022.

(2)Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis.

(3)Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables.

(4)Reinsured MRBs are presented within premiums, reinsurance and other receivables on the consolidated balance sheets.

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value (continued)

(5)Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilities presented in the tables above represent derivative liabilities.

(6)Total assets included in the fair value hierarchy exclude OLPI that are measured at estimated fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient. At December 31, 2023 and 2022, the estimated fair value of such investments was $52 million and $65 million, respectively.

(7)Embedded derivatives within liability host contracts are presented within PABs and other liabilities on the consolidated balance sheets.

The following describes the valuation methodologies used to measure assets and liabilities at fair value.

Investments

Securities, Short-term Investments and Other Investments

When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company’s securities holdings and valuation of these securities does not involve management’s judgment.

When quoted prices in active markets are not available, the determination of estimated fair value of securities is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based, in large part, on management’s judgment or estimation and cannot be supported by reference to market activity. Unobservable inputs are based on management’s assumptions about the inputs market participants would use in pricing such investments.

The estimated fair value of short-term investments and other investments is determined on a basis consistent with the methodologies described herein.

The valuation approaches and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy are presented below. The primary valuation approaches are the market approach, which considers recent prices from market transactions involving identical or similar assets or liabilities, and the income approach, which converts expected future amounts (e.g., cash flows) to a single current, discounted amount. The valuation of most instruments listed below is determined using independent pricing sources, matrix pricing, discounted cash flow methodologies or other similar techniques that use either observable market inputs or unobservable inputs.

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value (continued)

Instrument						Level 2 Observable Inputs						Level 3 Unobservable Inputs
Fixed maturity securities AFS
U.S. corporate and Foreign corporate securities
			Valuation Approaches: Principally the market and income approaches.									Valuation Approaches: Principally the market approach.
			Key Inputs:									Key Inputs:
			•			quoted prices in markets that are not active						•			illiquidity premium
			•			benchmark yields; spreads off benchmark yields; new issuances; issuer ratings						•			delta spread adjustments to reflect specific credit-related issues
			•			trades of identical or comparable securities; duration						•			credit spreads
			•			privately-placed securities are valued using the additional key inputs:						•			quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
						•			market yield curve; call provisions
						•			observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer			•			independent non-binding broker quotations
						•			delta spread adjustments to reflect specific credit-related issues
Foreign government securities, U.S. government and agency securities and Municipals
			Valuation Approaches: Principally the market approach.									Valuation Approaches: Principally the market approach.
			Key Inputs:									Key Inputs:
			•			quoted prices in markets that are not active						•			independent non-binding broker quotations
			•			benchmark U.S. Treasury yield or other yields						•			quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
			•			the spread off the U.S. Treasury yield curve for the identical security
			•			issuer ratings and issuer spreads; broker-dealer quotations						•			credit spreads
			•			comparable securities that are actively traded
Structured Products
			Valuation Approaches: Principally the market and income approaches.									Valuation Approaches: Principally the market and income approaches.
			Key Inputs:									Key Inputs:
			•			quoted prices in markets that are not active						•			credit spreads
			•			spreads for actively traded securities; spreads off benchmark yields						•			quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
			•			expected prepayment speeds and volumes
			•			current and forecasted loss severity; ratings; geographic region						•			independent non-binding broker quotations
			•			weighted average coupon and weighted average maturity						•			credit ratings
			•			average delinquency rates; DSCR
			•			credit ratings
			•			issuance-specific information, including, but not limited to:
						•			collateral type; structure of the security; vintage of the loans
						•			payment terms of the underlying assets
						•			payment priority within the tranche; deal performance

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value (continued)

Instrument			Level 2 Observable Inputs									Level 3 Unobservable Inputs
Equity securities
			Valuation Approaches: Principally the market approach.									Valuation Approaches: Principally the market and income approaches.
			Key Input:									Key Inputs:
			•			quoted prices in markets that are not considered active						•			credit ratings; issuance structures
												•			quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
												•			independent non-binding broker quotations
Unit-linked and FVO securities, Short-term investments and Other investments
			Valuation Approaches: Principally the market and income approaches.									Valuation Approaches: Principally the market and income approaches.
			Key Inputs:									Key Inputs:
			•			Unit-linked and FVO securities include mutual fund interests without readily determinable fair values given prices are not published publicly. Valuation of these mutual funds is based upon quoted prices or reported NAV provided by the fund managers, which were based on observable inputs.						•			Unit-linked and FVO securities, short-term investments and other investments are of a similar nature and class to the fixed maturity securities AFS and equity securities described above; accordingly, the valuation approaches and unobservable inputs used in their valuation are also similar to those described above. Other investments also include certain REJV and use the valuation approach and key inputs as described for OLPI below.
			•			Short-term investments and other investments are of a similar nature and class to the fixed maturity securities AFS and equity securities described above; accordingly, the valuation approaches and observable inputs used in their valuation are also similar to those described above.
Separate account assets and Separate account liabilities (1)
Mutual funds and hedge funds without readily determinable fair values as prices are not published publicly
			Key Input:									•			N/A
			•			quoted prices or reported NAV provided by the fund managers
OLPI
			•			N/A						Valued giving consideration to the underlying holdings of the partnerships and adjusting, if appropriate.
									Key Inputs:
									•			liquidity; bid/ask spreads; performance record of the fund manager
									•			other relevant variables that may impact the exit value of the particular partnership interest

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(1)Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, hedge funds, OLPI, short-term investments and cash and cash equivalents. The estimated fair value of fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents is determined on a basis consistent with the assets described under “— Securities, Short-term Investments and Other Investments” and “— Derivatives — Freestanding Derivatives.”

Derivatives

The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models.

The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. With respect to certain OTC-bilateral and OTC-cleared derivatives, management may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Unobservable inputs are based on management’s assumptions about the inputs market participants would use in pricing such derivatives.

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value (continued)

Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income.

The credit risk of both the counterparty and the Company is considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is, in part, due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period.

Freestanding Derivatives

Level 2 Valuation Approaches and Key Inputs:

This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3.

Level 3 Valuation Approaches and Key Inputs:

These valuation methodologies generally use the same inputs as described in the corresponding sections for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data.

Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. Key inputs are as follows:

Instrument						Interest Rate						Foreign Currency Exchange Rate						Credit						Equity Market
Inputs common to Level 2 and Level 3 by instrument type			•			swap yield curves			•			swap yield curves			•			swap yield curves			•			swap yield curves
•			basis curves			•			basis curves			•			credit curves			•			spot equity index levels
•			interest rate volatility (1)			•			currency spot rates			•			recovery rates			•			dividend yield curves
									•			cross currency basis curves									•			equity volatility (1)
									•			currency volatility (1)
Level 3			•			swap yield curves (2)			•			swap yield curves (2)			•			swap yield curves (2)			•			dividend yield curves (2)
			•			basis curves (2)			•			basis curves (2)			•			credit curves (2)			•			equity volatility (1), (2)
			•			repurchase rates			•			cross currency basis curves (2)			•			credit spreads			•			correlation between model inputs (1)
			•			interest rate volatility (1), (2)			•			currency correlation			•			repurchase rates
									•			currency volatility (1)			•			independent non-binding broker quotations

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(1)Option-based only.

(2)Extrapolation beyond the observable limits of the curve(s).

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value (continued)

Embedded Derivatives

Embedded derivatives principally include equity-indexed annuity contracts and investment risk within funds withheld related to certain reinsurance agreements. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income.

The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as described in “— Investments — Securities, Short-term Investments and Other Investments.” The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income.

The estimated fair value of the embedded equity indexed derivatives, based on the present value of future equity returns to the policyholder using actuarial and present value assumptions including expectations concerning policyholder behavior, is calculated by the Company’s actuarial department. The calculation is based on in-force business and uses standard capital market techniques, such as Black-Scholes, to calculate the value of the portion of the embedded derivative for which the terms are set. The portion of the embedded derivative covering the period beyond where terms are set is calculated as the present value of amounts expected to be spent to provide equity indexed returns in those periods. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk.

Market Risk Benefits

See Note 6 for information on the Company’s valuation approaches and key inputs for MRBs.

Transfers between Levels

Overall, transfers between levels occur when there are changes in the observability of inputs and market activity.

Transfers into or out of Level 3:

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value (continued)

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at:

																					December 31, 2023																		December 31, 2022																		Impact of Increase in Input on Estimated Fair Value (2)
			Valuation Techniques									Significant Unobservable Inputs									Range												Weighted Average (1)						Range												Weighted Average (1)
Fixed maturity securities AFS (3)
U.S. corporate and foreign corporate			•			Matrix pricing						•			Offered quotes (4)						4			-			131						93						—			-			126						87						Increase
			•			Market pricing						•			Quoted prices (4)						—			-			110						92						20			-			109						90						Increase
			•			Consensus pricing						•			Offered quotes (4)						86			-			102						96						5			-			99						93						Increase
RMBS			•			Market pricing						•			Quoted prices (4)						—			-			112						93						—			-			106						93						Increase (5)
ABS & CLO			•			Market pricing						•			Quoted prices (4)						3			-			101						93						3			-			102						91						Increase (5)
Derivatives
Interest rate			•			Present value techniques						•			Swap yield (6)						367			-			399						385						372			-			392						381						Increase (7)
Foreign currency exchange rate			•			Present value techniques						•			Swap yield (6)						185			-			399						193						74			-			1,938						208						Increase (7)
Credit			•			Present value techniques						•			Credit spreads (8)						—			-			—						—						84			-			138						101						Decrease (7)
			•			Consensus pricing						•			Offered quotes (9)
Market Risk Benefits and Reinsured Market Risk Benefits
Direct, assumed and ceded guaranteed minimum benefits			•			Option pricing techniques						•			Mortality rates:
															Ages 0 - 40						0%			-			0.15%						0.05%						0%			-			0.15%						0.05%						(10)
															Ages 41 - 60						0.04%			-			0.75%						0.22%						0.05%			-			0.75%						0.20%						(10)
															Ages 61 - 115						0%			-			100%						1.23%						0.23%			-			100%						1.44%						(10)
												•			Lapse rates:
															Durations 1 - 10						0.39%			-			20.10%						8.72%						0.40%			-			37.50%						8.96%						Decrease (11)
															Durations 11 - 20						0.39%			-			15%						4.34%						0.49%			-			35.75%						6.52%						Decrease (11)
															Durations 21 - 116						0.10%			-			15%						4.59%						0.49%			-			35.75%						2.89%						Decrease (11)
												•			Utilization rates						0.20%			-			22%						0.44%						0.20%			-			22%						0.38%						Increase (12)
												•			Withdrawal rates						0%			-			20%						4.47%						0%			-			20%						4.02%						(13)
												•			Long-term equity volatilities						8.05%			-			21.85%						18.55%						8.26%			-			22.01%						18.49%						Increase (14)
												•			Nonperformance risk spread						0.38%			-			1.59%						0.73%						0.34%			-			1.77%						0.75%						Decrease (15)

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(1)The weighted average for fixed maturity securities AFS and derivatives is determined based on the estimated fair value of the securities and derivatives. The weighted average for MRBs is determined based on a combination of account values and experience data.

(2)The impact of a decrease in input would have resulted in the opposite impact on estimated fair value. For MRBs, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions.

(3)Significant increases (decreases) in expected default rates in isolation would have resulted in substantially lower (higher) valuations.

(4)Range and weighted average are presented in accordance with the market convention for fixed maturity securities AFS of dollars per hundred dollars of par.

(5)Changes in the assumptions used for the probability of default would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates.

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value (continued)

(6)Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(7)Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.

(8)Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.

(9)At December 31, 2023 and 2022, independent non-binding broker quotations were used in the determination of less than 1% and 1%, respectively, of the total net derivative estimated fair value.

(10)Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the MRBs. For contracts that contain only a GMDB, any increase (decrease) in mortality rates result in an increase (decrease) in the estimated fair value of MRBs. Generally, for contracts that contain both a GMDB and a living benefit (e.g., GMIB, GMWB, GMAB), any increase (decrease) in mortality rates result in a decrease (increase) in the estimated fair value of MRBs.

(11)Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the MRBs.

(12)The utilization rate assumption estimates the percentage of contractholders with GMIBs or a lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the MRBs.

(13)The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the MRB. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(14)Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the MRBs.

(15)Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the MRBs.

All other classes of securities classified within Level 3, including those within Unit-linked and FVO securities, Other investments, Separate account assets, and Embedded derivatives within funds withheld related to certain ceded reinsurance, use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. Generally, all other classes of assets and liabilities classified within Level 3 that are not included above use the same valuation techniques and significant unobservable inputs as previously described for Level 3. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table. The valuation techniques and significant unobservable inputs used in the fair value measurement for the more significant assets measured at estimated fair value on a nonrecurring basis and determined using significant unobservable inputs (Level 3) are summarized in “— Nonrecurring Fair Value Measurements.”

Table of Contents

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value (continued)

The following tables summarize the change of all assets (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3):

						Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
						Fixed Maturity Securities AFS
						Corporate (6)												Foreign Government						Structured Products												Equity Securities						Unit-linked and FVO Securities
						(In millions)
Balance, January 1, 2022						$	25,435											$	91					$	5,871											$	151					$	901
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)						(7)												(38)						29												16						(133)
Total realized/unrealized gains (losses) included in AOCI						(6,221)												(13)						(478)												—						—
Purchases (3)						5,273												36						967												108						28
Sales (3)						(1,762)												(9)						(984)												(14)						(24)
Issuances (3)						—												—						—												—						—
Settlements (3)						—												—						—												—						—
Transfers into Level 3 (4)						2,127												46						251												—						23
Transfers out of Level 3 (4)						(444)												(10)						(1,387)												(2)						(8)
Balance, December 31, 2022						24,401												103						4,269												259						787
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)						(35)												2						(11)												9						138
Total realized/unrealized gains (losses) included in AOCI						1,413												(3)						33												—						—
Purchases (3)						4,896												13						757												2						205
Sales (3)						(2,112)												(12)						(707)												(21)						(19)
Issuances (3)						—												—						—												—						—
Settlements (3)						—												—						—												—						—
Transfers into Level 3 (4)						249												4						322												—						1
Transfers out of Level 3 (4)						(467)												(56)						(112)												—						(9)
Balance, December 31, 2023						$	28,345											$	51					$	4,551											$	249					$	1,103
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2021 (5)						$	(5)											$	—					$	42											$	13					$	101
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2022 (5)						$	(3)											$	(38)					$	27											$	11					$	(131)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2023 (5)						$	(10)											$	2					$	10											$	—					$	136
Changes in unrealized gains (losses) included in AOCI for the instruments still held at December 31, 2021 (5)						$	(1,293)											$	(2)					$	(24)											$	—					$	—
Changes in unrealized gains (losses) included in AOCI for the instruments still held at December 31, 2022 (5)						$	(6,136)											$	(13)					$	(450)											$	—					$	—
Changes in unrealized gains (losses) included in AOCI for the instruments still held at December 31, 2023 (5)						$	1,371											$	(3)					$	14											$	—					$	—
Gains (Losses) Data for the year ended December 31, 2021:
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)						$	(34)											$	—					$	46											$	27					$	101
Total realized/unrealized gains (losses) included in AOCI						$	(1,334)											$	(2)					$	(26)											$	—					$	—

Table of Contents

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value (continued)

						Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
						Short-term Investments						Residential Mortgage Loans - FVO						Other Investments						Net Derivatives (7)						Net Embedded Derivatives (8)						Separate Accounts (9)
						(In millions)
Balance, January 1, 2022						$	3					$	127					$	898					$	(152)					$	(222)					$	2,131
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)						—						(8)						57						238						121						61
Total realized/unrealized gains (losses) included in AOCI						—						—						—						(537)						—						—
Purchases (3)						56						—						246						82						—						202
Sales (3)						(2)						(108)						(177)						—						—						(1,164)
Issuances (3)						—						—						—						(3)						—						(2)
Settlements (3)						—						(11)						—						201						84						4
Transfers into Level 3 (4)						—						—						—						—						—						1
Transfers out of Level 3 (4)						—						—						(98)						1						—						(23)
Balance, December 31, 2022						57						—						926						(170)						(17)						1,210
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)						—						—						22						(39)						(36)						(60)
Total realized/unrealized gains (losses) included in AOCI						1						—						—						(5)						—						—
Purchases (3)						27						—						27						—						—						167
Sales (3)						(48)						—						—						—						—						(180)
Issuances (3)						—						—						—						—						—						—
Settlements (3)						—						—						—						199						(40)						1
Transfers into Level 3 (4)						—						—						—						—						—						13
Transfers out of Level 3 (4)						(10)						—						—						(128)						—						(4)
Balance, December 31, 2023						$	27					$	—					$	975					$	(143)					$	(93)					$	1,147
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2021 (5)						$	—					$	(10)					$	89					$	(361)					$	55					$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2022 (5)						$	—					$	—					$	56					$	325					$	121					$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2023 (5)						$	—					$	—					$	23					$	(39)					$	(36)					$	—
Changes in unrealized gains (losses) included in AOCI for the instruments still held at December 31, 2021 (5)						$	—					$	—					$	—					$	(128)					$	—					$	—
Changes in unrealized gains (losses) included in AOCI for the instruments still held at December 31, 2022 (5)						$	—					$	—					$	—					$	(459)					$	—					$	—
Changes in unrealized gains (losses) included in AOCI for the instruments still held at December 31, 2023 (5)						$	—					$	—					$	—					$	(5)					$	—					$	—
Gains (Losses) Data for the year ended December 31, 2021:
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)						$	1					$	(5)					$	94					$	(460)					$	55					$	29
Total realized/unrealized gains (losses) included in AOCI						$	(3)					$	—					$	—					$	(334)					$	—					$	—

---

(1)Amortization of premium/accretion of discount is included within net investment income. Impairments and changes in ACL charged to net income (loss) on certain securities are included in net investment gains (losses), while changes in estimated fair value of Unit-linked and FVO securities and residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

Table of Contents

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value (continued)

(2)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(3)Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.

(4)Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.

(5)Changes in unrealized gains (losses) included in net income (loss) and included in AOCI relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(6)Comprised of U.S. and foreign corporate securities.

(7)Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.

(8)Embedded derivative assets and liabilities are presented net for purposes of the rollforward.

(9)Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net income (loss). Separate account assets and liabilities are presented net for the purposes of the rollforward.

Nonrecurring Fair Value Measurements

The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment), using significant unobservable inputs (Level 3).

			December 31,
			2023						2022
			(In millions)
Carrying value after measurement:
Mortgage loans (1)			$	474					$	263
Other invested assets (2)			$	63					$	—
Other assets (3)			$	—					$	1

			Years Ended December 31,
			2023						2022						2021
			(In millions)
Realized gains (losses) net:
Mortgage loans (1)			$	(215)					$	(13)					$	(116)
Other invested assets (2)			$	(136)					$	—					$	—
Other assets (3)			$	(5)					$	(14)					$	(74)

---

(1)Estimated fair values of impaired mortgage loans are based on the underlying collateral or discounted cash flows. See Note 11.

(2)The Company recognized an impairment loss for the year ended December 31, 2023 in connection with the pending disposition of MetLife Malaysia. See Note 3.

(3)The Company recognized impairments related to the abandonment of certain leased office space and the related leasehold improvements.

Table of Contents

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

13. Fair Value (continued)

Fair Value of Financial Instruments Carried at Other Than Fair Value

The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions, short-term debt and those short-term investments that are not securities, such as time deposits, and therefore are not included in the three-level hierarchy table disclosed in the “— Recurring Fair Value Measurements” section. The Company believes that due to the short-term nature of these excluded assets, which are primarily classified in Level 2, the estimated fair value approximates carrying value. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure.

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:

						December 31, 2023
												Fair Value Hierarchy
						Carrying Value						Level 1						Level 2						Level 3						Total Estimated Fair Value
						(In millions)
Assets
Mortgage loans (1)						$	92,506					$	—					$	—					$	87,753					$	87,753
Policy loans						$	8,788					$	—					$	—					$	9,516					$	9,516
Other invested assets						$	919					$	—					$	714					$	205					$	919
Premiums, reinsurance and other receivables						$	5,182					$	—					$	791					$	4,400					$	5,191
Other assets						$	268					$	—					$	82					$	184					$	266
Liabilities
Policyholder account balances						$	138,233					$	—					$	—					$	134,025					$	134,025
Long-term debt						$	15,516					$	—					$	15,621					$	—					$	15,621
Collateral financing arrangement						$	637					$	—					$	—					$	551					$	551
Junior subordinated debt securities						$	3,161					$	—					$	3,552					$	—					$	3,552
Other liabilities						$	10,556					$	—					$	609					$	9,651					$	10,260
Separate account liabilities						$	75,705					$	—					$	75,705					$	—					$	75,705

						December 31, 2022
												Fair Value Hierarchy
						Carrying Value						Level 1						Level 2						Level 3						Total Estimated Fair Value
						(In millions)
Assets
Mortgage loans (1)						$	83,763					$	—					$	—					$	78,694					$	78,694
Policy loans						$	8,874					$	—					$	—					$	9,682					$	9,682
Other invested assets						$	946					$	—					$	729					$	217					$	946
Premiums, reinsurance and other receivables						$	2,905					$	—					$	1,042					$	1,921					$	2,963
Other assets						$	267					$	—					$	90					$	175					$	265
Liabilities
Policyholder account balances						$	133,788					$	—					$	—					$	127,514					$	127,514
Long-term debt						$	14,591					$	—					$	14,241					$	—					$	14,241
Collateral financing arrangement						$	716					$	—					$	—					$	591					$	591
Junior subordinated debt securities						$	3,158					$	—					$	3,502					$	—					$	3,502
Other liabilities						$	2,908					$	—					$	1,377					$	1,793					$	3,170
Separate account liabilities						$	81,976					$	—					$	81,976					$	—					$	81,976

---

(1)Includes mortgage loans measured at estimated fair value on a nonrecurring basis.

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

14. Leases

The Company, as lessee, has entered into various lease and sublease agreements primarily for office space. The Company has operating leases with remaining lease terms of less than one year to 14 years. The remaining lease terms for the subleases are less than one year to seven years.

ROU Assets and Lease Liabilities

ROU assets and lease liabilities for operating leases were:

						December 31, 2023						December 31, 2022
						(In millions)
ROU assets						$	1,061					$	961
Lease liabilities						$	1,231					$	1,147

Lease Costs

The components of operating lease costs were as follows:

			Years Ended December 31,
			2023						2022						2021
			(In millions)
Operating lease cost			$	244					$	246					$	271
Variable lease cost			$	52					$	45					$	32
Sublease income			$	(95)					$	(103)					$	(99)
Net lease cost			$	201					$	188					$	204

The Company recognized lease ROU asset impairment charges of $5 million, $10 million, and $29 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Other Information

Supplemental other information related to operating leases was as follows:

			December 31, 2023						December 31, 2022
			(Dollars in millions)
Cash paid for amounts included in the measurement of lease liability - operating cash flows			$	253					$	249
ROU assets obtained in exchange for new lease liabilities			$	242					$	58
Weighted-average remaining lease term			8 years						6 years
Weighted-average discount rate			4.4		%				3.5		%

Table of Contents

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

14. Leases (continued)

Maturities of Lease Liabilities

Maturities of operating lease liabilities were as follows:

						December 31, 2023
						(In millions)
2024						$	246
2025						225
2026						203
2027						168
2028						121
Thereafter						526
Total undiscounted cash flows						1,489
Less: interest						258
Present value of lease liability						$	1,231

See Notes 11 and 16 for information about the Company’s investments in leased real estate and financing lease obligations.

15. Goodwill

Information regarding goodwill by segment, as well as Corporate & Other, was as follows:

						Group Benefits (1)						RIS (1)						Asia (2)						Latin America						EMEA						MetLife Holdings						Corporate & Other												Total
						(In millions)
Balance at January 1, 2021
Goodwill						$	1,158					$	912					$	4,763					$	1,143					$	1,146					$	1,567					$	103											$	10,792
Accumulated impairment						—						—						—						—						—						(680)						—												(680)
Total goodwill, net						1,158						912						4,763						1,143						1,146						887						103												10,112
Effect of foreign currency translation and other						—						—						(211)						(166)						(200)						—						—												(577)
Balance at December 31, 2021
Goodwill						1,158						912						4,552						977						946						1,567						103												10,215
Accumulated impairment						—						—						—						—						—						(680)						—												(680)
Total goodwill, net						1,158						912						4,552						977						946						887						103												9,535
Acquisitions						—						—						—						—						—						—						40												40
Effect of foreign currency translation and other						—						—						(243)						3						(38)						—						—												(278)
Balance at December 31, 2022
Goodwill						1,158						912						4,309						980						908						1,567						143												9,977
Accumulated impairment						—						—						—						—						—						(680)						—												(680)
Total goodwill, net						1,158						912						4,309						980						908						887						143												9,297
Acquisitions						—						—						—						—						—						—						30												30
Effect of foreign currency translation and other						—						—						(95)						(4)						8						—						—												(91)
Balance at December 31, 2023
Goodwill						1,158						912						4,214						976						916						1,567						173												9,916
Accumulated impairment						—						—						—						—						—						(680)						—												(680)
Total goodwill, net						$	1,158					$	912					$	4,214					$	976					$	916					$	887					$	173											$	9,236

---

(1)See Note 2 for information on the reorganization of the Company’s segments.

(2)Includes goodwill of $4.1 billion, $4.2 billion and $4.4 billion from the Company’s Japan operations at December 31, 2023, 2022 and 2021, respectively.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

16. Long-term and Short-term Debt

Long-term and short-term debt outstanding was as follows:

																																	December 31,
			Interest Rates (1)																								2023																		2022
			Range															Maturity									Face Value						Unamortized Discount and Issuance Costs						Carrying Value						Face Value						Unamortized Discount and Issuance Costs						Carrying Value
																																	(In millions)
Senior notes			0.50		%				-						6.50%						2024			-			2054						$	14,622					$	(106)					$	14,516					$	13,671					$	(83)					$	13,588
Surplus notes			7.63		%				-						7.88%						2024			-			2025						507						—						507						507						(1)						506
Other notes			2.03		%				-						8.43%						2024			-			2028						495						(2)						493						500						(3)						497
Financing lease obligations																																	32						—						32						56						—						56
Total long-term debt																																	15,656						(108)						15,548						14,734						(87)						14,647
Total short-term debt																																	119						—						119						175						—						175
Total																																	$	15,775					$	(108)					$	15,667					$	14,909					$	(87)					$	14,822

---

(1)Range of interest rates are for the year ended December 31, 2023.

The aggregate maturities of long-term debt at December 31, 2023 for the next five years and thereafter are $1.8 billion in 2024, $1.3 billion in 2025, $180 million in 2026, $52 million in 2027, $348 million in 2028 and $11.9 billion thereafter.

Financing lease obligations are collateralized and rank highest in priority, followed by unsecured senior notes and other notes, and then subordinated debt which consists of junior subordinated debt securities (see Note 18). Payments of interest and principal on the Company’s surplus notes, which are subordinate to all other obligations of the operating company issuing the notes and are senior to obligations of MetLife, Inc., may be made only with the prior approval of the insurance department of the state of domicile of the issuer of the notes. The Company’s collateral financing arrangement (see Note 17) is supported by surplus notes of a subsidiary and, accordingly, has priority consistent with surplus notes.

Certain of the Company’s debt instruments and committed facilities, as well as its $3.0 billion unsecured revolving credit facility (the “Credit Facility”), contain various administrative, reporting, legal and financial covenants. The Company believes it was in compliance with all applicable financial covenants at December 31, 2023.

Senior Notes

In July 2023, MetLife, Inc. issued $1.0 billion of senior notes due July 2033 which bear interest at a fixed rate of 5.375%, payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $6 million of related costs which will be amortized over the term of the senior notes.

In February 2023, MetLife, Inc. redeemed for cash and canceled $1.0 billion aggregate principal amount of its outstanding 4.368% senior notes due September 2023.

In January 2023, MetLife, Inc. issued $1.0 billion of senior notes due January 2054 which bear interest at a fixed rate of 5.250%, payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $11 million of related costs which will be amortized over the term of the senior notes.

In July 2022, MetLife, Inc. issued $1.0 billion of senior notes due July 2052 which bear interest at a fixed rate of 5.00%, payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $11 million of related costs which will be amortized over the term of the senior notes.

In July 2021, MetLife, Inc. redeemed for cash and canceled $500 million aggregate principal amount of its outstanding 3.048% senior notes due December 2022. The Company recorded a premium of $17 million paid in excess of the debt principal and accrued and unpaid interest to other expenses for the year ended December 31, 2021.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

16. Long-term and Short-term Debt (continued)

Short-term Debt

Short-term debt with maturities of one year or less was as follows:

						December 31,
						2023						2022
						(Dollars in millions)
Commercial paper						$	—					$	99
Short-term borrowings (1)						119						76
Total short-term debt						$	119					$	175
Average daily balance						$	142					$	237
Average days outstanding						65 days						157 days

---

(1)Includes $115 million and $76 million at December 31, 2023 and 2022, respectively, of short-term debt related to repurchase agreements, secured by assets of subsidiaries.

For the years ended December 31, 2023, 2022 and 2021, the weighted average interest rate on short-term debt was 8.63%, 5.23% and 1.41%, respectively.

Interest Expense

Interest expense included in other expenses was $740 million, $655 million and $647 million for the years ended December 31, 2023, 2022 and 2021, respectively. Such amounts do not include interest expense on long-term debt related to the collateral financing arrangement or junior subordinated debt securities. See Notes 17 and 18.

Credit and Committed Facilities

At December 31, 2023, the Company maintained the Credit Facility, as well as certain committed facilities aggregating $3.2 billion (the “Committed Facilities”). When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements.

Credit Facility

The Company’s Credit Facility is used for general corporate purposes, to support the borrowers’ commercial paper programs and for the issuance of letters of credit. Total fees associated with the Credit Facility were $6 million, $8 million and $10 million for the years ended December 31, 2023, 2022 and 2021, respectively, and were included in other expenses. Information on the Credit Facility at December 31, 2023 was as follows:

Borrower(s)						Expiration									Maximum Capacity									Letters of Credit Issued						Drawdowns						Unused Commitments
															(In millions)
MetLife, Inc. and MetLife Funding, Inc.						May 2028			(1)						$	3,000								$	297					$	—					$	2,703

---

(1) In May 2023, the Credit Facility was amended and restated to, among other things, extend the maturity date. All borrowings under the Credit Facility must be repaid by May 8, 2028, except that letters of credit outstanding on that date may remain outstanding until no later than May 8, 2029.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

16. Long-term and Short-term Debt (continued)

Committed Facilities

Letters of credit issued under the Committed Facilities are used for collateral for certain of the Company’s affiliated reinsurance liabilities. Total fees associated with the Committed Facilities, included in other expenses, were $9 million, $9 million and $12 million for the years ended December 31, 2023, 2022 and 2021, respectively. Information on the Committed Facilities at December 31, 2023 was as follows:

Account Party/Borrower(s)						Expiration									Maximum Capacity						Letters of Credit Issued						Drawdowns						Unused Commitments
															(In millions)
MetLife Reinsurance Company of Vermont and MetLife, Inc.						November 2026			(1), (2)						$	350					$	350					$	—					$	—
MetLife Reinsurance Company of Vermont and MetLife, Inc.						December 2037			(1), (3)						2,896						2,499						—						397
Total															$	3,246					$	2,849					$	—					$	397

---

(1)MetLife, Inc. is a guarantor under the applicable facility.

(2)The issuance of additional letters of credit is at the discretion of the counterparty.

(3)Capacity at December 31, 2023 of $2.9 billion decreases gradually between 2025 and 2037 to $2.0 billion, and the facility expires in December 2037. Unused commitment of $397 million is based on maximum capacity. At December 31, 2023, Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”), a former subsidiary of MetLife, Inc., is a beneficiary of $2.5 billion of letters of credit issued under this facility and, in consideration, Brighthouse reimburses MetLife, Inc. for a portion of the letter of credit fees.

17. Collateral Financing Arrangement

Information related to the collateral financing arrangement associated with the closed block (See Note 10) was as follows at:

						December 31,
						2023						2022
						(In millions)
Surplus notes outstanding (1)						$	637					$	716
Receivable from unaffiliated financial institution (1)						$	85					$	93
Pledged collateral (2)						$	10					$	43
Assets held in trust (2)						$	1,397					$	1,369

---

(1)At carrying value.

(2)At estimated fair value.

Interest expense on the collateral financing arrangement was $44 million, $22 million and $11 million for the years ended December 31, 2023, 2022 and 2021, respectively, which is included in other expenses.

In December 2007, MLIC reinsured a portion of its closed block liabilities to MetLife Reinsurance Company of Charleston (“MRC”), a wholly-owned subsidiary of MetLife, Inc. In connection with this transaction, MRC issued, to investors placed by an unaffiliated financial institution, $2.5 billion in aggregate principal amount of 35-year surplus notes to provide statutory reserve support for the assumed closed block liabilities. Interest on the surplus notes accrued at an annual rate of three-month LIBOR plus 0.55%, payable quarterly. For interest periods that commenced after June 30, 2023, the three-month LIBOR rate was replaced with the CME Term Secured Overnight Financing Rate (“SOFR”) published for a three-month tenor plus a spread adjustment of 0.26161%. The ability of MRC to make interest and principal payments on the surplus notes is contingent upon South Carolina regulatory approval.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

17. Collateral Financing Arrangement (continued)

Simultaneously with the issuance of the surplus notes, MetLife, Inc. entered into an agreement with the unaffiliated financial institution, under which MetLife, Inc. received interest payable by MRC on the surplus notes in exchange for the payment of three-month LIBOR plus 1.12%, payable quarterly on such amount as adjusted, as described below. For interest periods that commenced after June 30, 2023, the three-month LIBOR rate under the agreement was replaced with compounded SOFR calculated in arrears plus a spread adjustment of 0.26161%. MetLife, Inc. may also be required to pledge collateral or make payments to the unaffiliated financial institution related to any decline in the estimated fair value of the surplus notes. Any such payments are accounted for as a receivable and included in other assets on the Company’s consolidated balance sheets and do not reduce the principal amount outstanding of the surplus notes. Such payments, however, reduce the amount of interest payments due from MetLife, Inc. under the agreement. Any payment received from the unaffiliated financial institution reduces the receivable by an amount equal to such payment and also increases the amount of interest payments due from MetLife, Inc. under the agreement. In addition, the unaffiliated financial institution may be required to pledge collateral to MetLife, Inc. related to any increase in the estimated fair value of the surplus notes.

For the years ended December 31, 2023, 2022 and 2021, following regulatory approval, MRC repurchased $79 million, $50 million and $79 million, respectively, in aggregate principal amount of the surplus notes. Payments made by the Company in 2023, 2022 and 2021 associated with the repurchases were exclusive of accrued interest on the surplus notes. In connection with the repurchases for the years ended December 31, 2023, 2022 and 2021, the Company received payments in the aggregate amount of $8 million, $7 million and $10 million, respectively, from the unaffiliated financial institution, which reduced the amount receivable from the unaffiliated financial institution by the same amounts. No other payments related to an increase or decrease in the estimated fair value of the surplus notes were made by MetLife, Inc. or received from the unaffiliated financial institution for the years ended December 31, 2023, 2022 or 2021.

A majority of the proceeds from the offering of the surplus notes was placed in a trust, which is consolidated by the Company, to support MRC’s statutory obligations associated with the assumed closed block liabilities. The assets are principally invested in fixed maturity securities AFS and are presented as such within the Company’s consolidated balance sheets, with the related income included within net investment income on the Company’s consolidated statements of operations.

18. Junior Subordinated Debt Securities

Outstanding Junior Subordinated Debt Securities

Outstanding junior subordinated debt securities and exchangeable surplus trust securities which are exchangeable for junior subordinated debt securities prior to redemption or repayment, were as follows:

																																				December 31,
																																				2023																		2022
Issuer						Issue Date						Interest Rate (1)						Scheduled Redemption Date						Interest Rate Subsequent to Scheduled Redemption Date (2)						Final Maturity						Face Value						Unamortized Discount and Issuance Costs						Carrying Value						Face Value						Unamortized Discount and Issuance Costs						Carrying Value
																																				(In millions)
MetLife, Inc.						December 2006						6.400%						December 2036						SOFR + 0.26161% + 2.205%						December 2066						$	1,250					$	(14)					$	1,236					$	1,250					$	(15)					$	1,235
MetLife Capital Trust IV (3)						December 2007						7.875%						December 2037						SOFR + 0.26161% + 3.960%						December 2067						700						(12)						688						700						(13)						687
MetLife, Inc.						April 2008						9.250%						April 2038						SOFR + 0.26161% + 5.540%						April 2068						750						(8)						742						750						(9)						741
MetLife, Inc.						July 2009						10.750%						August 2039						SOFR + 0.26161% + 7.548%						August 2069						500						(5)						495						500						(5)						495
Total																																				$	3,200					$	(39)					$	3,161					$	3,200					$	(42)					$	3,158

---

(1)Prior to the scheduled redemption date, interest is payable semiannually in arrears.

(2)In the event the securities are not redeemed on or before the scheduled redemption date, interest will accrue after such date at an annual rate based on the three-month CME Term SOFR plus 0.26161% and the indicated margin, payable quarterly in arrears.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

18. Junior Subordinated Debt Securities (continued)

(3)MetLife Capital Trust IV is a VIE which is consolidated on the financial statements of the Company. The securities issued by this entity are exchangeable surplus trust securities, which are exchangeable for a like amount of MetLife, Inc.’s junior subordinated debt securities on the scheduled redemption date, mandatorily under certain circumstances, and at any time upon MetLife, Inc. exercising its option to redeem the securities.

In connection with each of the securities described above, MetLife, Inc. may redeem or may cause the redemption of the securities (i) in whole or in part, at any time on or after the date five years prior to the scheduled redemption date at their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption, or (ii) in certain circumstances, in whole or in part, prior to the date five years prior to the scheduled redemption date at their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption or, if greater, a make-whole price. MetLife, Inc. also has the right to, and in certain circumstances the requirement to, defer interest payments on the securities for a period up to 10 years. Interest compounds during such periods of deferral. If interest is deferred for more than five consecutive years, MetLife, Inc. is required to use proceeds from the sale of its common stock or warrants on common stock to satisfy this interest payment obligation. In connection with each of the securities described above, MetLife, Inc. entered into a separate replacement capital covenant (“RCC”). As part of each RCC, MetLife, Inc. agreed that it will not repay, redeem, or purchase the securities on or before a date 10 years prior to the final maturity date of each issuance, unless, subject to certain limitations, it has received cash proceeds during a specified period from the sale of specified replacement securities. Each RCC will terminate upon the occurrence of certain events, including an acceleration of the applicable securities due to the occurrence of an event of default. The RCCs are not intended for the benefit of holders of the securities and may not be enforced by them. Rather, each RCC is for the benefit of the holders of a designated series of MetLife, Inc.’s other indebtedness (the “Covered Debt”). Initially, the Covered Debt for each of the securities described above was MetLife, Inc.’s 5.700% senior notes due 2035 (the “5.700% Senior Notes”). As a result of the issuance of MetLife, Inc.’s 10.750% Fixed-to-Floating Rate Junior Subordinated Debentures due 2069 (the “10.750% JSDs”), the 10.750% JSDs became the Covered Debt with respect to, and in accordance with, the terms of the RCC relating to MetLife, Inc.’s 6.40% Fixed-to-Floating Rate Junior Subordinated Debentures due 2066. The 5.700% Senior Notes continue to be the Covered Debt with respect to, and in accordance with, the terms of the RCCs relating to each of MetLife Capital Trust IV’s 7.875% Fixed-to-Floating Rate Exchangeable Surplus Trust Securities, MetLife, Inc.’s 9.250% Fixed-to-Floating Rate Junior Subordinated Debentures and the 10.750% JSDs. MetLife, Inc. also entered into a replacement capital obligation which will commence during the six-month period prior to the scheduled redemption date of each of the securities described above and under which MetLife, Inc. must use reasonable commercial efforts to raise replacement capital to permit repayment of the securities through the issuance of certain qualifying capital securities.

Interest expense on outstanding junior subordinated debt securities was $261 million for each of the years ended December 31, 2023, 2022 and 2021, which is included in other expenses.

19. Equity

Preferred Stock

Preferred stock authorized, issued and outstanding was as follows at both December 31, 2023 and 2022:

Series						Shares Authorized						Shares Issued and Outstanding
Series A preferred stock						27,600,000						24,000,000
Series D preferred stock						500,000						500,000
Series E preferred stock						32,200						32,200
Series F preferred stock						40,000						40,000
Series G preferred stock						1,000,000						1,000,000
Series A Junior Participating Preferred Stock						10,000,000						—
Not designated						160,827,800						—
Total						200,000,000						25,572,200

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

In May 2021, MetLife, Inc. delivered a notice of redemption to the holders of MetLife, Inc.’s 5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C (the “Series C preferred stock”) pursuant to which it would redeem the remaining 500,000 shares of Series C preferred stock at a redemption price of $1,000 per share. In connection with the redemption, MetLife, Inc. recognized a preferred stock redemption premium of $6 million (calculated as the difference between the carrying value of the Series C preferred stock and the total amount paid by MetLife, Inc. to the holders of the Series C preferred stock in connection with the redemption), which was recorded as a reduction of retained earnings at June 30, 2021. All outstanding shares of Series C preferred stock were redeemed on the dividend payment date of June 15, 2021 for an aggregate redemption price of $500 million in cash.

In June 2021, MetLife, Inc. filed a Certificate of Elimination (the “Certificate of Elimination”) of Series C preferred stock with the Secretary of State of the State of Delaware to eliminate all references to the Series C preferred stock in MetLife, Inc.’s Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”), including the related Certificate of Designations. As a result of the filing of the Certificate of Elimination, MetLife, Inc.’s Certificate of Incorporation was amended to eliminate all references therein to the Series C preferred stock, and the shares that were designated to such series were returned to the status of authorized but unissued shares of preferred stock, par value $0.01 per share, of MetLife, Inc., without designation as to series. The Certificate of Elimination does not affect the total number of authorized shares of capital stock of MetLife, Inc. or the total number of authorized shares of preferred stock.

The outstanding preferred stock ranks senior to MetLife, Inc.’s common stock with respect to the payment of dividends and distributions upon liquidation, dissolution or winding-up. Holders of the outstanding preferred stock are entitled to receive dividend payments only when, as and if declared by MetLife, Inc.’s Board of Directors or a duly authorized committee thereof. Dividends on the preferred stock are not cumulative or mandatory. Accordingly, if dividends are not declared on the preferred stock of the applicable series for any dividend period, then any accrued dividends for that dividend period will cease to accrue and be payable. If a dividend is not declared before the dividend payment date for any such dividend period, MetLife, Inc. will have no obligation to pay dividends accrued for such dividend period whether or not dividends are declared for any future period. No dividends may be paid or declared on MetLife, Inc.’s common stock (or any other securities ranking junior to the preferred stock) and MetLife, Inc. may not purchase, redeem, or otherwise acquire its common stock (or other such junior stock) unless the full dividends for the latest completed dividend period on all outstanding shares of preferred stock, and any parity stock, have been declared and paid or provided for.

The table below presents the dividend rates of MetLife, Inc.’s preferred stock outstanding at December 31, 2023:

Series						Per Annum Dividend Rate
A						Three-month CME Term SOFR plus a spread adjustment of 0.26161% + 1.000%, with floor of 4.000%, payable quarterly in March, June, September and December
D						5.875% from issuance date to, but excluding, March 15, 2028, payable semiannually in March and September; three-month CME Term SOFR plus a spread adjustment of 0.26161% + 2.959% payable quarterly in March, June, September and December, thereafter
E						5.625% from issuance date, payable quarterly in March, June, September and December
F						4.750% from issuance date, payable quarterly in March, June, September and December
G						3.850% from issuance date, but excluding, September 15, 2025, payable semiannually in March and September commencing in March 2021; five year treasury rate, reset every five years, + 3.576% payable semiannually in March and September, thereafter

In the table above, dividends on each series of preferred stock are payable in arrears for the periods specified, if declared.

MetLife, Inc. is prohibited from declaring dividends on the Floating Rate Non-Cumulative Preferred Stock, Series A (the “Series A preferred stock”) if it fails to meet specified capital adequacy, net income and stockholders’ equity levels. See “— Dividend Restrictions — MetLife, Inc.”

Holders of the preferred stock do not have voting rights except in certain circumstances, including where the dividends have not been paid for a specified number of dividend payment periods whether or not those periods are consecutive. Under such circumstances, the holders of the preferred stock have certain voting rights with respect to members of the Board of Directors of MetLife, Inc.

The preferred stock is not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions.

The Series A preferred stock is redeemable at MetLife, Inc.’s option in whole or in part, at a redemption price of $25 per share of Series A preferred stock, plus declared and unpaid dividends.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

MetLife, Inc. may, at its option, redeem the 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D (the “Series D preferred stock”), (i) in whole but not in part at any time prior to March 15, 2028, within 90 days after the occurrence of a “rating agency event,” at a redemption price equal to $1,020 per share of Series D preferred stock, plus an amount equal to any dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, such redemption date; (ii) in whole but not in part, at any time prior to March 15, 2028, within 90 days after the occurrence of a “regulatory capital event;” and (iii) in whole or in part, at any time or from time to time, on or after March 15, 2028, in the case of (ii) or (iii), at a redemption price equal to $1,000 per share of Series D preferred stock, plus an amount equal to any dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, such redemption date.

MetLife, Inc. may, at its option, redeem the 5.625% Non-Cumulative Preferred Stock, Series E (the “Series E preferred stock”), in whole or in part, at any time or from time to time at a redemption price equal to $25,000 per share of Series E preferred stock (equivalent to $25 per depositary share, each Series E depositary share representing a 1/1,000th interest in a share of the Series E preferred stock), plus an amount equal to any dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, such redemption date.

MetLife, Inc. may, at its option, redeem the 4.75% Non-Cumulative Preferred Stock, Series F (the “Series F preferred stock”), (i) in whole but not in part at any time prior to March 15, 2025, within 90 days after the occurrence of a “rating agency event,” at a redemption price equal to $25,500 per share of Series F preferred stock (equivalent to $25.50 per Series F Depositary Share), plus an amount equal to any accrued and unpaid dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, the redemption date, (ii) in whole but not in part, at any time prior to March 15, 2025, within 90 days after the occurrence of a “regulatory capital event;” and (iii) in whole or in part, at any time or from time to time, on or after March 15, 2025, in the case of (ii) or (iii), at a redemption price equal to $25,000 per share of Series F preferred stock (equivalent to $25 per Series F Depositary Share), plus an amount equal to any dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, such redemption date.

MetLife, Inc. may, at its option, redeem the 3.85% Fixed Rate Reset Non-Cumulative Preferred Stock, Series G (the “Series G preferred stock”), (a) in whole but not in part, at any time, within 90 days after the conclusion of any review or appeal process instituted by the Company following the occurrence of a “rating agency event” or, in the absence of any such review or appeal process, from such “rating agency event,” at a redemption price equal to $1,020 per share of Series G preferred stock, plus an amount equal to any dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, such redemption date and (b)(i) in whole but not in part, at any time, within 90 days after the occurrence of a “regulatory capital event,” or (ii) in whole or in part, on any dividend payment date, on or after September 15, 2025, in each case, at a redemption price equal to $1,000 per share of Series G preferred stock, plus an amount equal to any dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, such redemption date.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

A “rating agency event” means that any nationally recognized statistical rating organization that then publishes a rating for MetLife, Inc. amends, clarifies or changes the criteria used to assign equity credit to securities like the Series D preferred stock, Series E preferred stock, Series F preferred stock or Series G preferred stock, which results in the lowering of the equity credit assigned to the security, or shortens the length of time that the security is assigned a particular level of equity credit. A “regulatory capital event” could occur as a result of a change or proposed change in laws, rules, regulations or regulatory standards, including capital adequacy rules (or the interpretation or application thereof) of the United States or any political subdivision thereof, including any capital regulator, including but not limited to the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), the Federal Insurance Office, the National Association of Insurance Commissioners (“NAIC”) or any state insurance regulator as may then have group-wide oversight of MetLife, Inc.’s regulatory capital, from those laws, rules, regulations or regulatory standards (or the interpretation or application thereof) in effect as of March 22, 2018, in the case of the Series D preferred stock, June 4, 2018, in the case of the Series E preferred stock, January 15, 2020, in the case of the Series F preferred stock, or September 10, 2020, in the case of the Series G preferred stock, that would create a more than insubstantial risk, as determined by MetLife, Inc., that the security would not be treated as “Tier 1 capital” or as capital with attributes similar to those of Tier 1 capital, except that a “regulatory capital event” will not include a change or proposed change (or the interpretation or application thereof) that would result in the adoption of any criteria substantially the same as the criteria in the capital adequacy rules of the Federal Reserve Board applicable to bank holding companies as of March 22, 2018, in the case of the Series D preferred stock, June 4, 2018, in the case of the Series E preferred stock, January 15, 2020, in the case of the Series F preferred stock, or September 10, 2020, in the case of the Series G preferred stock.

The per share and aggregate dividends declared for MetLife, Inc.’s preferred stock were as follows:

						Years Ended December 31,
						2023												2022												2021
Series						Per Share						Aggregate						Per Share						Aggregate						Per Share						Aggregate
						(In millions, except per share data)
A						$	1.577					$	37					$	1.033					$	24					$	1.015					$	24
C (1)						$	—					—						$	—					—						$	19.085					10
D						$	58.750					29						$	58.750					29						$	58.750					29
E						$	1,406.252					45						$	1,406.252					45						$	1,406.252					45
F						$	1,187.500					48						$	1,187.500					48						$	1,187.500					48
G						$	38.500					39						$	38.500					39						$	39.035					39
Total												$	198											$	185											$	195

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(1)Dividends were paid through the dividend payment date of June 15, 2021, when all outstanding shares of Series C preferred stock were redeemed and eliminated.

Common Stock

Issuances

For the years ended December 31, 2023, 2022 and 2021, MetLife, Inc. issued 1,992,180 shares, 3,290,998 shares and 4,926,185 shares of its common stock for $110 million, $156 million and $195 million, respectively, in connection with stock option exercises and other stock-based awards. There were no shares of common stock issued from treasury stock for any of the years ended December 31, 2023, 2022 or 2021.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

Repurchase Authorizations

MetLife, Inc. announced that its Board of Directors authorized common stock repurchases as follows:

												Authorization Remaining at
Announcement Date						Authorization Amount						December 31, 2023
						(In millions)
May 25, 2023						$	1,000					$	1,000
May 3, 2023						$	3,000					$	1,102
May 4, 2022						$	3,000					$	—
August 4, 2021						$	3,000					$	—

Under these authorizations, MetLife, Inc. may purchase its common stock from the MetLife Policyholder Trust, in the open market (including pursuant to the terms of a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934), and in privately negotiated transactions. Common stock repurchases are subject to the discretion of MetLife, Inc.’s Board of Directors and will depend upon the Company’s capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to management’s assessment of the stock’s underlying value, applicable regulatory approvals, and other legal and accounting factors.

For the years ended December 31, 2023, 2022 and 2021, MetLife, Inc. repurchased 50,269,483 shares, 49,732,851 shares and 72,296,518 shares under these repurchase authorizations for $3.1 billion, $3.3 billion, and $4.3 billion, respectively. The Inflation Reduction Act, signed into law on August 16, 2022, imposes a one percent excise tax, net of any allowable offsets, on certain corporate stock buybacks made after December 31, 2022. Neither the authorization remaining, nor the amount repurchased, at December 31, 2023 reflects the $30 million of applicable excise tax payable in connection with such repurchases for the year ended December 31, 2023. The $30 million of excise tax is reflected in treasury stock as part of the cost basis of the common stock repurchased, and a corresponding liability for the excise tax payable was recorded in other liabilities. At December 31, 2021, $25 million of the aforementioned 2021 share repurchases were included in other liabilities, and settled in 2022.

Dividends

For each of the years ended December 31, 2023, 2022 and 2021, MetLife, Inc. paid dividends on its common stock of $1.6 billion. The payment of dividends by MetLife, Inc. to its shareholders is subject to restrictions. See “— Dividend Restrictions — MetLife, Inc.”

The funding of the cash dividends and operating expenses of MetLife, Inc. is primarily provided by cash dividends from MetLife, Inc.’s insurance subsidiaries. The statutory capital and surplus, or net assets, of MetLife, Inc.’s insurance subsidiaries are subject to regulatory restrictions except to the extent that dividends are allowed to be paid in a given year without prior regulatory approval. Dividends exceeding these limitations can generally be made subject to regulatory approval. The nature and amount of these dividend restrictions, as well as the statutory capital and surplus of MetLife, Inc.’s U.S. insurance subsidiaries, are disclosed in “— Statutory Equity and Income” and “— Dividend Restrictions — Insurance Operations.” MetLife, Inc.’s principal non-U.S. insurance operations are branches or subsidiaries of American Life Insurance Company (“American Life”), a U.S. insurance subsidiary of the Company.

Stock-Based Compensation Plans

Plans for Employees and Agents

Under the MetLife, Inc. 2015 Stock and Incentive Compensation Plan (the “2015 Stock Plan”), MetLife, Inc. may grant awards to employees and agents in the form of Stock Options, Stock Appreciation Rights, Performance Shares or Performance Share Units, Restricted Stock or Restricted Stock Units, Cash-Based Awards and Stock-Based Awards (each, as applicable, as defined in the 2015 Stock Plan with reference to shares of MetLife, Inc. common stock (“Shares”)). Awards under the 2015 Stock Plan and its predecessor plan, the MetLife, Inc. 2005 Stock and Incentive Compensation Plan (the “2005 Stock Plan”), were outstanding at December 31, 2023. MetLife, Inc. granted all awards to employees and agents in 2023 under the 2015 Stock Plan.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

The aggregate number of Shares available for issuance under the 2015 Stock Plan at December 31, 2023 was 30,627,419.

MetLife recognizes compensation expense related to each award under the 2005 Stock Plan or 2015 Stock Plan in one of two ways:

• For cash-settled awards, MetLife remeasures the compensation expense quarterly.

• For other awards, MetLife recognizes an expense based on the number of awards it expects to vest, which represents the awards granted less expected forfeitures over the life of the award, as estimated at the date of grant. Unless MetLife observes a material deviation from the assumed forfeiture rate during the term in which the awards are expensed, MetLife recognizes any adjustment necessary to reflect differences in actual experience in the period the award becomes payable or exercisable.

Compensation expense related to awards under the 2005 Stock Plan principally relates to the issuance of Stock Options. Under the 2015 Stock Plan, compensation expense principally relates to Stock Options, Unit Options, Performance Shares, Performance Units, Restricted Stock Units and Restricted Units. MetLife, Inc. granted the majority of each year’s awards under the 2005 Stock Plan prior to 2015, and under the 2015 Stock Plan in 2015 and later in the first quarter of the year.

Awards that have become payable in Shares but the issuance of which has been deferred (“Deferred Shares”), payable to employees or agents related to awards under all plans equaled 642,768 Shares at December 31, 2023.

MetLife granted cash-settled awards based in whole or in part on the price of Shares or changes in the price of Shares (“Phantom Stock-Based Awards”) under the MetLife, Inc. International Unit Option Incentive Plan, the MetLife International Performance Unit Incentive Plan, and the MetLife International Restricted Unit Incentive Plan prior to 2015, and under the 2015 Stock Plan in 2015 and later.

Plans for Non-Management Directors

Under the MetLife, Inc. 2015 Non-Management Director Stock Compensation Plan (the “2015 Director Stock Plan”), MetLife, Inc. may grant non-management Directors of MetLife, Inc. awards in the form of nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock or Restricted Stock Units, or Stock-Based Awards (each, as applicable, as defined in the 2015 Director Stock Plan with reference to Shares).

The only awards MetLife, Inc. granted under the 2015 Director Stock Plan and its predecessor plan, the MetLife, Inc. 2005 Non-Management Director Stock Compensation Plan (the “2005 Director Stock Plan”), through December 31, 2023 were Stock-Based Awards that vested immediately. As a result, no awards under the 2005 Director Stock Plan or 2015 Director Stock Plan remained outstanding at December 31, 2023.

The aggregate number of Shares available for issuance under the 2015 Director Stock Plan at December 31, 2023 was 1,419,598.

MetLife recognizes compensation expense related to awards under the 2015 Director Stock Plan based on the number of Shares awarded.

Deferred Shares payable to Directors related to awards under the 2005 Director Stock Plan, 2015 Director Stock Plan, or earlier applicable plans equaled 348,977 Shares at December 31, 2023.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

Compensation Expense Related to Stock-Based Compensation

The components of compensation expense related to stock-based compensation includes compensation expense related to Phantom Stock-Based Awards and excludes the insignificant compensation expense related to the 2015 Director Stock Plan. Those components were:

			Years Ended December 31,
			2023						2022						2021
			(In millions)
Stock Options and Unit Options			$	7					$	7					$	9
Performance Shares and Performance Units (1)			98						108						98
Restricted Stock Units and Restricted Units			66						69						66
Total compensation expense			$	171					$	184					$	173
Income tax benefit			$	36					$	39					$	36

---

(1)The Company may further adjust the number of Performance Shares and Performance Units it expects to vest, and the related compensation expense, if management changes its estimate of the most likely final performance factor.

The following table presents the total unrecognized compensation expense related to stock-based compensation and the expected weighted average period over which these expenses will be recognized at:

			December 31, 2023
			Expense						Weighted Average Period
			(In millions)						(Years)
Stock Options			$	3					1.77
Performance Shares			$	28					1.68
Restricted Stock Units			$	36					1.94

Equity Awards

Stock Options

Stock Options are the contingent right of award holders to purchase Shares at a stated price for a limited time. All Stock Options have an exercise price equal to the closing price of a Share reported on the New York Stock Exchange (“NYSE”) on the date of grant and have a maximum term of 10 years. The majority of Stock Options that MetLife, Inc. has granted have become or will become exercisable at a rate of one-third of each award on each of the first three anniversaries of the grant date. Other Stock Options have become or will become exercisable on the third anniversary of the grant date. Vesting is subject to continued service, except for employees who meet specified age and service criteria and in certain other limited circumstances.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

Stock Option Activity

A summary of the activity related to Stock Options was as follows:

			Shares Under Option						Weighted Average Exercise Price						Weighted Average Remaining Contractual Term						Aggregate Intrinsic Value (1)
															(Years)						(In millions)
Outstanding at January 1, 2023			3,386,041						$	49.24					5.58						$	78
Granted			405,544						$	71.73
Exercised			(250,757)						$	43.54
Expired (2)			(6,491)						$	65.52
Forfeited (3)			(34,331)						$	68.22
Outstanding at December 31, 2023			3,500,006						$	52.04					5.21						$	53
Vested and expected to vest at December 31, 2023			3,491,957						$	52.00					5.20						$	53
Exercisable at December 31, 2023			2,709,467						$	47.34					4.26						$	51

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(1)The intrinsic value of each Stock Option is the closing price on a particular date less the exercise price of the Stock Option, so long as the difference is greater than zero. The aggregate intrinsic value of all outstanding Stock Options is computed using the closing Share price on December 31, 2023 of $66.13 and December 31, 2022 of $72.37, as applicable.

(2)Expired options were exercisable, but unexercised, as of their expiration date.

(3)Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria for post-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of the awards.

MetLife estimates the fair value of Stock Options on the date of grant using a binomial lattice model. The significant assumptions the Company uses in its binomial lattice model include: expected volatility of the price of Shares; risk-free rate of return; dividend yield on Shares; exercise multiple; and the post-vesting termination rate.

MetLife bases expected volatility on an analysis of historical prices of Shares and call options on Shares traded on the open market. The Company uses a weighted-average of the implied volatility for publicly-traded call options with the longest remaining maturity nearest to the money as of each valuation date and the historical volatility, calculated using monthly closing prices of Shares. The Company chose a monthly measurement interval for historical volatility as this interval reflects the Company’s view that employee option exercise decisions are based on longer-term trends in the price of the underlying Shares rather than on daily price movements.

The Company’s binomial lattice model incorporates different risk-free rates based on the imputed forward rates for U.S. Treasury Strips for each year over the contractual term of the option. The table below presents the full range of rates that were used for options granted during the respective periods.

The Company determines dividend yield based on historical dividend distributions compared to the price of the underlying Shares as of the valuation date and held constant over the life of the Stock Option.

The Company’s binomial lattice model incorporates the term of the Stock Options, expected exercise behavior and a post-vesting termination rate, or the rate at which vested options are exercised or expire prematurely due to termination of employment. From these factors, the model derives an expected life of the Stock Option. The model’s exercise behavior is a multiple that reflects the ratio of stock price at the time of exercise over the exercise price of the Stock Option at the time the model expects holders to exercise. The model derives the exercise multiple from actual exercise activity. The model determines the post-vesting termination rate from actual exercise experience and expiration activity under the Incentive Plans.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

The following table presents the weighted average assumptions, with the exception of risk-free rate (which is expressed as a range), that the model uses to determine the fair value of unexercised Stock Options:

						Years Ended December 31,
						2023						2022						2021
Dividend yield						2.79%						2.78%						3.20%
Risk-free rate of return						5.02% - 3.47%						1.17% - 1.97%						0.08% - 2.48%
Expected volatility						25.73%						26.67%						29.72%
Exercise multiple						1.45						1.45						1.44
Post-vesting termination rate						3.47%						3.58%						3.58%
Contractual term (years)						10						10						10
Expected life (years)						6						6						7
Weighted average exercise price of stock options granted						$71.73						$68.96						$57.43
Weighted average fair value of stock options granted						$17.56						$15.18						$12.76

The following table presents a summary of Stock Option exercise activity:

						Years Ended December 31,
						2023						2022						2021
						(In millions)
Total intrinsic value of stock options exercised						$	6					$	40					$	60
Cash received from exercise of stock options						$	11					$	48					$	119
Income tax benefit realized from stock options exercised						$	1					$	8					$	13

Performance Shares

Performance Shares are units that, if they vest, are multiplied by a performance factor to produce a number of final Shares payable. MetLife accounts for Performance Shares as equity awards. MetLife, Inc. does not credit Performance Shares with dividend-equivalents for dividends paid on Shares. Performance Share awards normally vest in their entirety at the end of the three-year performance period. Vesting is subject to continued service, except for employees who meet specified age and service criteria and in certain other limited circumstances.

For awards granted for the 2019 – 2021 and later performance periods in progress through December 31, 2023, the vested Performance Shares will be multiplied by a performance factor of 0% to 175% that the MetLife, Inc. Compensation Committee will determine by (a) the Company’s annual adjusted return on equity performance over the three-year period compared to the Company’s three-year business plan goal; (b) the Company’s total shareholder return over the same three-year period compared to a peer group of companies; and (c) a cap of 100% if the Company’s total shareholder return for the three-year period is zero or less. The Compensation Committee will exclude the impact of a “Significant Event” from the Company’s adjusted return on equity or the business plan goal, to the extent the Committee determines in its informed judgment that the event changed the adjusted return on equity performance factor component. “Significant Events” include accounting changes, business combinations, restructuring, nonrecurring tax events, common share issuance or repurchases, catastrophes, litigation and regulatory settlements, asbestos and environmental events, certain specified classes of non-coupon investments, and other significant nonrecurring, infrequent, or unusual items.

The performance factor for the 2020 - 2022 performance period was 156.3%.

Restricted Stock Units

Restricted Stock Units are units that, if they vest, are payable in an equal number of Shares. MetLife accounts for Restricted Stock Units as equity awards. MetLife, Inc. does not credit Restricted Stock Units with dividend-equivalents for dividends paid on Shares. Accordingly, the estimated fair value of Restricted Stock Units is based upon the closing price of Shares on the date of grant, reduced by the present value of estimated dividends to be paid on that stock.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

The majority of Restricted Stock Units normally vest in thirds on or shortly after the first three anniversaries of their grant date. Other Restricted Stock Units normally vest in their entirety on the third or later anniversary of their grant date. Vesting is subject to continued service, except for employees who meet specified age and service criteria and in certain other limited circumstances.

Performance Share and Restricted Stock Unit Activity

The following table presents a summary of Performance Share and Restricted Stock Unit activity:

			Performance Shares												Restricted Stock Units
			Shares						Weighted Average Fair Value (1)						Units						Weighted Average Fair Value (1)
Outstanding at January 1, 2023			3,206,738						$	51.26					1,999,964						$	53.62
Granted			998,687						$	65.68					959,434						$	64.85
Forfeited (2)			(116,526)						$	59.49					(65,491)						$	61.38
Payable (3)			(1,175,401)						$	41.90					(1,044,290)						$	49.17
Outstanding at December 31, 2023			2,913,498						$	59.65					1,849,617						$	61.68
Vested and expected to vest at December 31, 2023			2,872,871						$	59.58					1,814,816						$	61.67

---

(1)Values for awards outstanding at January 1, 2023, represent weighted average number of awards multiplied by their fair value per Share at December 31, 2022. Otherwise, all values represent weighted average of number of awards multiplied by the fair value per Share at December 31, 2023. Fair value of Performance Shares and Restricted Stock Units on December 31, 2023 was equal to Grant Date fair value.

(2)Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria for post-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of the awards.

(3)Includes both Shares paid and Deferred Shares.

Performance Share amounts above represent aggregate awards at target, and do not reflect potential increases or decreases that may result from the performance factor. At December 31, 2023, the performance period for the 2021 - 2023 Performance Share grants was completed, but the performance factor had not yet been determined. Included in the immediately preceding table are 1,048,303 outstanding Performance Shares to which the 2021 - 2023 performance factor will be applied.

Liability Awards (Phantom Stock-Based Awards)

Certain MetLife subsidiaries have a liability for Phantom Stock-Based Awards in the form of Unit Options, Performance Units, and/or Restricted Units. These Share-based cash settled awards are recorded as liabilities until MetLife makes payment. The fair value of unsettled or unvested liability awards is re-measured at the end of each reporting period based on the change in fair value of one Share. The liability and corresponding expense are adjusted accordingly until the award is settled.

Unit Options

Unit Options are the contingent right of award holders to receive a cash payment equal to the closing price of a Share on the exercise date, less the closing price on the grant date, if the difference is greater than zero, for a limited time. All Unit Options have an exercise price equal to the closing price of a Share reported on the NYSE on the date of grant and have a maximum term of 10 years. The majority of Unit Options have become or will become eligible for exercise at a rate of one-third of each award on each of the first three anniversaries of the grant date. Other Unit Options have become or will become eligible for exercise on the third anniversary of the grant date. Vesting is subject to continued service, except for employees who meet specified age and service criteria and in certain other limited circumstances.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

Performance Units

Performance Units are units that, if they vest, are multiplied by a performance factor to produce a number of final Performance Units which are payable in cash equal to the closing price of a Share on a date following the last day of the three-year performance period. Performance Units are accounted for as liability awards. MetLife, Inc. does not credit them with dividend-equivalents for dividends paid on Shares. Accordingly, the estimated fair value of Performance Units is based upon the closing price of a Share on the date of grant, reduced by the present value of estimated dividends to be paid on that stock during the performance period. MetLife determines each performance period’s performance factor in the same way it does for the same performance period’s Performance Shares.

See “— Equity Awards — Performance Shares” for a discussion of the Performance Shares vesting period and performance factor calculation, which are also used for Performance Units.

Restricted Units

Restricted Units are units that, if they vest, are payable in cash equal to the closing price of a Share on the last day of the restriction period. The majority of Restricted Units normally vest in thirds on or shortly after the first three anniversaries of their grant date. Other Restricted Units normally vest in their entirety on the third or later anniversary of their grant date. Vesting is subject to continued service, except for employees who meet specified age and service criteria and in certain other limited circumstances. Restricted Units are accounted for as liability awards. MetLife, Inc. does not credit Restricted Units with dividend-equivalents for dividends paid on Shares. Accordingly, the estimated fair value of Restricted Units is based upon the closing price of a Share on the date of grant, reduced by the present value of estimated dividends to be paid on that stock during the performance period.

Liability Award Activity

The following table presents a summary of Liability Awards activity:

			Unit Options						Performance Units						Restricted Units
Outstanding at January 1, 2023			54,731						391,920						441,555
Granted			12,847						118,426						195,192
Exercised			(22,066)						—						—
Expired (1)			(6,360)						—						—
Forfeited (2)			—						(15,901)						(22,728)
Paid			—						(154,904)						(224,528)
Outstanding at December 31, 2023			39,152						339,541						389,491
Vested and expected to vest at December 31, 2023			38,667						331,974						381,156

---

(1)Expired options were exercisable, but unexercised, as of their expiration date.

(2)Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria for post-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of the awards.

Performance Units amounts above represent aggregate awards at target, and do not reflect potential increases or decreases that may result from the performance factor. At December 31, 2023, the performance period for the 2021 - 2023 Performance Unit grants was completed, but the performance factor had not yet been determined. Included in the immediately preceding table are 118,848 outstanding Performance Units to which the 2021 - 2023 performance factor will be applied.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

Statutory Equity and Income

The states of domicile of MetLife, Inc.’s U.S. insurance subsidiaries each impose risk-based capital (“RBC”) requirements that were developed by the NAIC. American Life does not write business in Delaware or any other U.S. state and, as such, is exempt from RBC requirements by Delaware law. Regulatory compliance is determined by a ratio of a company’s total adjusted capital, calculated in the manner prescribed by the NAIC (“TAC”), to its authorized control level RBC, calculated in the manner prescribed by the NAIC (“ACL RBC”), based on the statutory-based financial statements. Companies below specific trigger levels or ratios are classified by their respective levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences is twice ACL RBC (“Company Action Level RBC”). While not required by or filed with insurance regulators, the Company also calculates an internally defined combined RBC ratio (“Statement-Based Combined RBC Ratio”), which is determined by dividing the sum of TAC for MetLife, Inc.’s principal U.S. insurance subsidiaries, excluding American Life, by the sum of Company Action Level RBC for such subsidiaries. The Company’s Statement-Based Combined RBC Ratio was in excess of 380% and in excess of 340% at December 31, 2023 and 2022, respectively. In addition, all non-exempted U.S. insurance subsidiaries individually exceeded Company Action Level RBC for all periods presented.

MetLife, Inc.’s foreign insurance operations are regulated by applicable authorities of the jurisdictions in which each entity operates and are subject to minimum capital and solvency requirements in those jurisdictions before corrective action commences. At both December 31, 2023 and 2022, the adjusted capital of American Life’s insurance subsidiary in Japan, the Company’s largest foreign insurance operation, was in excess of three times the 200% solvency margin ratio that would require corrective action. Excluding Japan, the aggregate required and actual capital and surplus of the Company’s other foreign insurance operations was $3.1 billion and $7.4 billion, respectively, as of the date of the most recent fiscal year-end capital adequacy calculation for each jurisdiction, exceeding the respective minimum capital and solvency requirements.

MetLife, Inc.’s insurance subsidiaries prepare statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile or applicable foreign jurisdiction. The NAIC has adopted the Codification of Statutory Accounting Principles (“Statutory Codification”). Statutory Codification is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting principles continue to be established by individual state laws and permitted practices. Modifications by the various state insurance departments may impact the effect of Statutory Codification on the statutory capital and surplus of MetLife, Inc.’s U.S. insurance subsidiaries.

Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing FPBs using different actuarial assumptions, reporting surplus notes as surplus instead of debt and valuing securities on a different basis.

In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. The most significant assets not admitted by the Company are net deferred income tax assets resulting from temporary differences between statutory accounting principles basis and tax basis not expected to reverse and become recoverable within three years. Further, statutory accounting principles do not give recognition to purchase accounting adjustments. MetLife, Inc.’s U.S. insurance subsidiaries have no material state prescribed accounting practices, except as described below.

New York has adopted certain prescribed accounting practices, primarily consisting of the continuous Commissioners’ Annuity Reserve Valuation Method, which impacts deferred annuities, and the New York Special Considerations Letter, which mandates certain assumptions in asset adequacy testing. The collective impact of these prescribed accounting practices decreased the statutory capital and surplus of MLIC by $1.4 billion and $1.3 billion at December 31, 2023 and 2022, respectively, compared to what capital and surplus would have been had it been measured under NAIC guidance.

American Life calculates its policyholder reserves on insurance written in each foreign jurisdiction in accordance with the reserve standards required by such jurisdiction. Additionally, American Life’s insurance subsidiaries are valued based on each respective subsidiary’s underlying local statutory equity, adjusted in a manner consistent with the reporting prescribed for its branch operations. The prescribed practice exempts American Life from calculating and disclosing the impact to its statutory capital and surplus.

The tables below present amounts for MetLife, Inc.’s U.S. insurance subsidiaries, prepared in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

Statutory net income (loss) was as follows:

												Years Ended December 31,
Company						State of Domicile						2023						2022						2021
												(In millions)
Metropolitan Life Insurance Company						New York						$	3,407					$	2,737					$	3,513
American Life Insurance Company						Delaware						$	767					$	824					$	48
Metropolitan Tower Life Insurance Company						Nebraska						$	411					$	232					$	185
Other						Various						$	53					$	91					$	76

Statutory capital and surplus was as follows at:

						December 31,
Company						2023						2022
						(In millions)
Metropolitan Life Insurance Company						$	11,593					$	10,869
American Life Insurance Company						$	8,272					$	5,040
Metropolitan Tower Life Insurance Company						$	2,461					$	1,896
Other						$	358					$	209

The Company’s U.S. captive life reinsurance subsidiaries, which reinsure risks including the closed block, level premium term life and ULSG assumed from other MetLife subsidiaries, have no state prescribed accounting practices, except for MetLife Reinsurance Company of Vermont (“MRV”).

MRV, with the explicit permission of the Commissioner of Insurance of the State of Vermont, has included, as admitted assets, the value of letters of credit serving as collateral for reinsurance credit taken by various affiliated cedants, in connection with reinsurance agreements entered into between MRV and the various affiliated cedants, which resulted in higher statutory capital and surplus of $2.0 billion at both December 31, 2023 and 2022. MRV’s RBC would have triggered a regulatory event without the use of the state prescribed practice.

The combined statutory net income (loss) of MetLife, Inc.’s U.S. captive life reinsurance subsidiaries was $63 million, $44 million and $41 million for the years ended December 2023, 2022 and 2021, respectively, and the combined statutory capital and surplus, reflecting the aforementioned prescribed accounting practices, was $723 million and $726 million at December 31, 2023 and 2022, respectively.

Dividend Restrictions

Insurance Operations

The table below sets forth the dividends permitted to be paid by MetLife, Inc.’s primary insurance subsidiaries without insurance regulatory approval and the actual dividends paid:

						2024						2023									2022
Company						Permitted Without Approval (1)						Paid (2)									Paid (2)
						(In millions)
Metropolitan Life Insurance Company						$	3,476					$	2,471								$	3,539
American Life Insurance Company						$	945					$	1,887								$	1,289
Metropolitan Tower Life Insurance Company						$	373					$	189								$	—

---

(1)Reflects dividend amounts that may be paid by the end of 2024 without prior regulatory approval.

(2)Reflects all amounts paid, including those where regulatory approval was obtained as required.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

Under the New York State Insurance Law, MLIC is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to MetLife, Inc. in any calendar year based on either of two standards. Under one standard, MLIC is permitted, without prior insurance regulatory clearance, to pay dividends out of earned surplus (defined as positive unassigned funds (surplus), excluding 85% of the change in net unrealized capital gains or losses (less capital gains tax), for the immediately preceding calendar year), in an amount up to the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains), not to exceed 30% of surplus to policyholders as of the end of the immediately preceding calendar year. In addition, under this standard, MLIC may not, without prior insurance regulatory clearance, pay any dividends in any calendar year immediately following a calendar year for which its net gain from operations, excluding realized capital gains, was negative. Under the second standard, if dividends are paid out of other than earned surplus, MLIC may, without prior insurance regulatory clearance, pay an amount up to the lesser of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). In addition, MLIC will be permitted to pay a dividend to MetLife, Inc. in excess of the amounts allowed under both standards only if it files notice of its intention to declare such a dividend and the amount thereof with the New York Superintendent of Financial Services (the “Superintendent”) and the Superintendent either approves the distribution of the dividend or does not disapprove the dividend within 30 days of its filing. Under the New York State Insurance Law, the Superintendent has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholder.

Under the Delaware Insurance Code, American Life is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to MetLife, Inc. as long as the amount of the dividend, when aggregated with all other dividends in the preceding 12 months, does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains), not including pro rata distributions of American Life’s own securities. American Life will be permitted to pay a dividend to MetLife, Inc. in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Delaware Commissioner of Insurance (the “Delaware Commissioner”) and the Delaware Commissioner either approves the distribution of the dividend or does not disapprove the dividend within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as “unassigned funds (surplus)”) as of the immediately preceding calendar year requires insurance regulatory approval. Under the Delaware Insurance Code, the Delaware Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders.

Under the Nebraska Insurance Code, Metropolitan Tower Life Insurance Company (“MTL”) is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to MetLife, Inc. as long as the amount of the dividend, when aggregated with all other dividends in the preceding 12 months, does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains), not including pro rata distributions of MTL’s own securities. MTL will be permitted to pay a dividend to MetLife, Inc. in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Director of the Nebraska Department of Insurance (the “Nebraska Director”) and the Nebraska Director either approves the distribution of the dividend or does not disapprove the dividend within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as “unassigned funds (surplus)” excluding unrealized capital gains) as of the immediately preceding calendar year requires insurance regulatory approval. Under the Nebraska Insurance Code, the Nebraska Director has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

MetLife, Inc.

The declaration and payment of dividends are subject to the discretion of MetLife, Inc.’s Board of Directors and will depend on its financial condition, results of operations, cash requirements, future prospects, regulatory restrictions on the payment of dividends by MetLife, Inc.’s insurance subsidiaries and other factors deemed relevant by the Board of Directors. In addition, the payment of dividends on MetLife, Inc.’s common stock, and MetLife, Inc.’s ability to repurchase its common stock, may be subject to restrictions described below arising under the terms of MetLife, Inc.’s Series A preferred stock and its junior subordinated debentures in situations where MetLife, Inc. may be experiencing financial stress, as described below. For purposes of this discussion, “junior subordinated debentures” are deemed to include MetLife, Inc.’s Fixed-to-Floating Rate Exchangeable Surplus Trust Securities, as discussed in Note 18.

“Dividend Stopper” Provisions in the Preferred Stock and Junior Subordinated Debentures

If MetLife, Inc. has not paid the full dividends on its preferred stock for the latest completed dividend period, MetLife, Inc. may not repurchase or pay dividends on instruments junior to those instruments, including its common stock, during a dividend period under so-called “dividend stopper” provisions. Further, MetLife, Inc.’s Series A preferred stock and its junior subordinated debentures contain provisions that would suspend the payment of preferred stock dividends and interest on junior subordinated debentures if MetLife, Inc. fails to meet certain RBC ratio, net income and stockholders’ equity tests at specified times, except to the extent of the net proceeds from the issuance of certain securities during specified periods. If Series A preferred stock dividends or interest on junior subordinated debentures are not paid, certain provisions in those instruments (including under “dividend stopper” provisions) may restrict MetLife, Inc. from repurchasing its common or preferred stock or paying dividends on its common or preferred stock and interest on its junior subordinated debentures.

The junior subordinated debentures further provide that MetLife, Inc. may, at its option and provided that certain conditions are met, defer payment of interest without giving rise to an event of default for periods of up to 10 years. In that case, after five years MetLife, Inc. would be obligated to use commercially reasonable efforts to sell equity securities to raise proceeds to pay the interest. MetLife, Inc. would not be subject to limitations on the number of deferral periods that MetLife, Inc. could begin, so long as all accrued and unpaid interest is paid with respect to prior deferral periods. If MetLife, Inc. were to defer payments of interest, the “dividend stopper” provisions in the junior subordinated debentures would thus prevent MetLife, Inc. from repurchasing or paying dividends on its common stock or other capital stock (including the preferred stock) during the period of deferral, subject to exceptions.

MetLife, Inc. is a party to certain RCCs which limit its ability to eliminate these restrictions through the repayment, redemption or purchase of junior subordinated debentures by requiring MetLife, Inc., with some limitations, to receive cash proceeds during a specified period from the sale of specified replacement securities prior to any repayment, redemption or purchase. See Note 18 for a description of such covenants.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc. was as follows:

			Unrealized Investment Gains (Losses), Net of Related Offsets (1)						Deferred Gains (Losses) on Derivatives						Future Policy Benefits Discount Rate Remeasurement Gains (Losses)						Market Risk Benefits Instrument-Specific Credit Risk Remeasurement Gains(Losses)						Foreign Currency Translation Adjustments						Defined Benefit Plans Adjustment						Total
			(In millions)
Balance at December 31, 2020			$	22,217					$	1,513					$	—					$	—					$	(3,795)					$	(1,863)					$	18,072
Cumulative effects of changes in accounting principles, net of income tax			8,503						—						(26,330)						76						(6)						—						(17,757)
Balance at January 1, 2021			30,720						1,513						(26,330)						76						(3,801)						(1,863)						315
OCI before reclassifications			(12,498)						(113)						10,102						257						(1,527)						237						(3,542)
Deferred income tax benefit (expense)			2,961						18						(2,331)						(54)						(54)						(46)						494
AOCI before reclassifications, net of income tax			21,183						1,418						(18,559)						279						(5,382)						(1,672)						(2,733)
Amounts reclassified from AOCI			(125)						250						—						—						—						91						216
Deferred income tax benefit (expense)			29						(39)						—						—						—						(17)						(27)
Amounts reclassified from AOCI, net of income tax			(96)						211						—						—						—						74						189
Sale of subsidiaries, net of income tax (2)			(168)						—						—						—						261						—						93
Balance at December 31, 2021			20,919						1,629						(18,559)						279						(5,121)						(1,598)						(2,451)
OCI before reclassifications			(58,093)						(583)						31,755						(219)						(1,625)						188						(28,577)
Deferred income tax benefit (expense)			13,298						89						(7,116)						47						(18)						(39)						6,261
AOCI before reclassifications, net of income tax			(23,876)						1,135						6,080						107						(6,764)						(1,449)						(24,767)
Amounts reclassified from AOCI			1,607						498						—						—						—						93						2,198
Deferred income tax benefit (expense)			(368)						(76)						—						—						—						(19)						(463)
Amounts reclassified from AOCI, net of income tax			1,239						422						—						—						—						74						1,735
Sale of subsidiaries, net of income tax (2)			(9)						—						35						—						387						(2)						411
Balance at December 31, 2022			(22,646)						1,557						6,115						107						(6,377)						(1,377)						(22,621)
OCI before reclassifications			7,820						(1,106)						(4,361)						(102)						296						(207)						2,340
Deferred income tax benefit (expense)			(1,666)						267						904						22						(77)						45						(505)
AOCI before reclassifications, net of income tax			(16,492)						718						2,658						27						(6,158)						(1,539)						(20,786)
Amounts reclassified from AOCI			2,523						(705)						—						—						—						119						1,937
Deferred income tax benefit (expense)			(537)						170						—						—						—						(26)						(393)
Amounts reclassified from AOCI, net of income tax			1,986						(535)						—						—						—						93						1,544
Balance at December 31, 2023			$	(14,506)					$	183					$	2,658					$	27					$	(6,158)					$	(1,446)					$	(19,242)

---

(1)Primarily unrealized gains (losses) on fixed maturity securities.

(2)See Note 3 for information on the Company’s business dispositions.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

19. Equity (continued)

Information regarding amounts reclassified out of each component of AOCI was as follows:

						Years Ended December 31,
						2023						2022						2021
AOCI Components						Amounts Reclassified from AOCI																		Consolidated Statements of Operations Locations
						(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)						$	(2,620)					$	(1,802)					$	72					Net investment gains (losses)
Net unrealized investment gains (losses)						8						7						(16)						Net investment income
Net unrealized investment gains (losses)						89						188						69						Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax						(2,523)						(1,607)						125
Income tax (expense) benefit						537						368						(29)
Net unrealized investment gains (losses), net of income tax						(1,986)						(1,239)						96
Deferred gains (losses) on derivatives — cash flow hedges:
Interest rate derivatives						50						59						56						Net investment income
Interest rate derivatives						90						41						84						Net investment gains (losses)
Interest rate derivatives						—						4						3						Other expenses
Foreign currency exchange rate derivatives						4						6						8						Net investment income
Foreign currency exchange rate derivatives						558						(609)						(403)						Net investment gains (losses)
Foreign currency exchange rate derivatives						2						1						2						Other expenses
Credit derivatives						1						—						—						Net investment gains (losses)
Gains (losses) on cash flow hedges, before income tax						705						(498)						(250)
Income tax (expense) benefit						(170)						76						39
Gains (losses) on cash flow hedges, net of income tax						535						(422)						(211)
Defined benefit plans adjustment: (1)
Amortization of net actuarial gains (losses)						(130)						(104)						(120)
Amortization of prior service (costs) credit						11						11						29
Amortization of defined benefit plan items, before income tax						(119)						(93)						(91)
Income tax (expense) benefit						26						19						17
Amortization of defined benefit plan items, net of income tax						(93)						(74)						(74)
Total reclassifications, net of income tax						$	(1,544)					$	(1,735)					$	(189)

---

(1)These AOCI components are included in the computation of net periodic benefit costs. See Note 21.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

20. Other Revenues and Other Expenses

Other Revenues

Information on other revenues, which primarily includes fees related to service contracts from customers, was as follows:

						Years Ended December 31,
						2023						2022						2021
						(In millions)
Vision fee for service arrangements						$	598					$	566					$	546
Prepaid legal plans						516						471						432
Fee-based investment management						408						396						363
Administrative services-only contracts						259						238						231
Recordkeeping and administrative services (1)						150						168						213
Other revenue from service contracts from customers						298						271						289
Total revenues from service contracts from customers						2,229						2,110						2,074
Other						297						520						545
Total other revenues						$	2,526					$	2,630					$	2,619

---

(1)Related to products and businesses no longer actively marketed by the Company.

Receivables related to revenues from service contracts from customers were $243 million and $226 million as of December 31, 2023 and 2022, respectively.

Other Expenses

Information on other expenses was as follows:

						Years Ended December 31,
						2023						2022						2021
						(In millions)
Employee-related costs (1)						$	3,626					$	3,520					$	3,515
Third party staffing costs						1,477						1,573						1,423
General and administrative expenses						828						669						670
Pension, postretirement and postemployment benefit costs						246						98						147
Premium taxes, other taxes, and licenses & fees						660						608						629
Commissions and other variable expenses						5,819						5,265						5,463
Capitalization of DAC						(2,917)						(2,614)						(2,751)
Amortization of DAC and VOBA						1,952						1,831						2,037
Amortization of negative VOBA						(26)						(29)						(35)
Interest expense on debt						1,045						938						920
Total other expenses						$	12,710					$	11,859					$	12,018

---

(1)Includes ($140) million, $93 million and ($144) million for the years ended December 31, 2023, 2022 and 2021, respectively, for the net change in cash surrender value of investments in certain life insurance policies, net of premiums paid.

Capitalization of DAC and Amortization of DAC and VOBA

See Note 8 for additional information on DAC and VOBA including impacts of capitalization and amortization. See also Note 10 for a description of the DAC amortization impact associated with the closed block.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

20. Other Revenues and Other Expenses (continued)

Expenses related to Debt

See Notes 16, 17, and 18 for attribution of interest expense by debt issuance and other expenses related to debt transactions.

21. Employee Benefit Plans

Pension and Other Postretirement Benefit Plans

Certain subsidiaries of MetLife, Inc. sponsor a U.S. qualified and various U.S. and non-U.S. nonqualified defined benefit pension plans covering employees who meet specified eligibility requirements. U.S. pension benefits are provided utilizing either a traditional formula or cash balance formula. The traditional formula provides benefits that are primarily based upon years of credited service and final average earnings. The cash balance formula utilizes hypothetical or notional accounts which credit participants with benefits equal to a percentage of eligible pay, as well as interest credits, determined annually based upon the annual rate of interest on 30-year U.S. Treasury securities, for each account balance. In September 2018, the U.S. qualified and nonqualified defined benefit pension plans were amended, effective January 1, 2023, to provide benefits accruals for all active participants under the cash balance formula and to cease future accruals under the traditional formula. The U.S. nonqualified pension plans provide supplemental benefits in excess of limits applicable to a qualified plan. The non-U.S. pension plans generally provide benefits based upon either years of credited service and earnings preceding retirement or points earned on job grades and other factors in years of service.

These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for U.S. and non-U.S. retired employees. U.S. employees of these subsidiaries who were hired prior to 2003 (or, in certain cases, rehired during or after 2003) and meet age and service criteria while working for one of the subsidiaries may become eligible for these other postretirement benefits, at various levels, in accordance with the applicable plans. Virtually all retirees, or their beneficiaries, contribute a portion of the total costs of postretirement medical benefits. U.S. employees hired after 2003 are not eligible for any employer subsidy for postretirement medical benefits. In September 2018, the U.S. postretirement medical and life insurance benefit plans were amended, effective January 1, 2023, to discontinue the accrual of the employer subsidy credits for eligible employees.

The benefit obligations, funded status and net periodic benefit costs related to these pension and other postretirement benefits were comprised of the following:

			December 31, 2023																																				December 31, 2022
			Pension Benefits																		Other Postretirement Benefits																		Pension Benefits																		Other Postretirement Benefits
			U.S. Plans						Non- U.S. Plans						Total						U.S. Plans						Non- U.S. Plans						Total						U.S. Plans						Non- U.S. Plans						Total						U.S. Plans						Non- U.S. Plans						Total
			(In millions)
Benefit obligations			$	8,649					$	849					$	9,498					$	723					$	42					$	765					$	8,425					$	873					$	9,298					$	758					$	36					$	794
Estimated fair value of plan assets			7,786						484						8,270						1,307						27						1,334						7,831						463						8,294						1,277						26						1,303
Over (under) funded status			$	(863)					$	(365)					$	(1,228)					$	584					$	(15)					$	569					$	(594)					$	(410)					$	(1,004)					$	519					$	(10)					$	509
Net periodic benefit costs			$	227					$	64					$	291					$	(41)					$	3					$	(38)					$	49					$	73					$	122					$	(43)					$	1					$	(42)

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

21. Employee Benefit Plans (continued)

Obligations and Funded Status

						December 31,
						2023												2022
						Pension Benefits (1)						Other Postretirement Benefits						Pension Benefits (1)						Other Postretirement Benefits
						(In millions)
Change in benefit obligations:
Benefit obligations at January 1,						$	9,298					$	794					$	12,182					$	1,138
Service costs						143						3						187						4
Interest costs						474						43						328						34
Plan participants’ contributions						—						30						—						32
Plan amendments						—						—						8						—
Net actuarial (gains) losses (2)						299						(23)						(2,609)						(289)
Acquisition, divestitures, settlements and curtailments						(35)						—						(45)						—
Benefits paid						(636)						(86)						(630)						(125)
Effect of foreign currency translation						(45)						4						(123)						—
Benefit obligations at December 31,						9,498						765						9,298						794
Change in plan assets:
Estimated fair value of plan assets at January 1,						8,294						1,303						10,971						1,443
Actual return on plan assets						529						72						(2,095)						(43)
Acquisition, divestitures and settlements						(35)						—						(38)						—
Plan participants’ contributions						—						30						—						32
Employer contributions						140						13						152						(3)
Benefits paid						(636)						(86)						(630)						(125)
Effect of foreign currency translation						(22)						2						(66)						(1)
Estimated fair value of plan assets at December 31,						8,270						1,334						8,294						1,303
Over (under) funded status at December 31,						$	(1,228)					$	569					$	(1,004)					$	509
Amounts recognized on the consolidated balance sheets:
Other assets						$	229					$	886					$	428					$	796
Other liabilities						(1,457)						(317)						(1,432)						(287)
Net amount recognized						$	(1,228)					$	569					$	(1,004)					$	509
AOCI:
Net actuarial (gains) losses						$	2,360					$	(509)					$	2,277					$	(498)
Prior service costs (credit)						(25)						—						(36)						—
AOCI, before income tax						$	2,335					$	(509)					$	2,241					$	(498)
Accumulated benefit obligation						$	9,377					N/A						$	9,185					N/A

---

(1)Includes nonqualified unfunded plans, for which the aggregate PBO was $1.0 billion at both December 31, 2023 and 2022.

(2)For the year ended December 31, 2023, significant sources of actuarial (gains) losses for pension and other postretirement benefits include the impact of changes to the financial assumptions of $256 million and $8 million, respectively, demographic assumptions of ($54) million and ($8) million, respectively, and plan experience of $97 million and ($23) million, respectively. For the year ended December 31, 2022, significant sources of actuarial (gains) losses for pension and other postretirement benefits include the impact of changes to the financial assumptions, primarily related to an increase in the discount rate, of ($2.6) billion and ($276) million, respectively, and plan experience of $14 million and ($13) million, respectively.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

21. Employee Benefit Plans (continued)

Information regarding pension plans and other postretirement benefit plans with PBOs and/or accumulated benefit obligations (“ABO”) or APBO in excess of plan assets was as follows at:

			December 31,
			2023						2022						2023						2022						2023						2022
			PBO Exceeds Estimated Fair Value of Plan Assets												ABO Exceeds Estimated Fair Value of Plan Assets												APBO Exceeds Estimated Fair Value of Plan Assets
			(In millions)
Projected benefit obligations			$	1,474					$	1,444					$	1,459					$	1,434					N/A						N/A
Accumulated benefit obligations			$	1,411					$	1,384					$	1,411					$	1,384					N/A						N/A
Accumulated postretirement benefit obligations			N/A						N/A						N/A						N/A						$	580					$	562
Estimated fair value of plan assets			$	15					$	10					$	2					$	—					$	266					$	276

Net Periodic Benefit Costs

The components of net periodic benefit costs and other changes in plan assets and benefit obligations recognized in OCI were as follows:

			Years Ended December 31,
			2023												2022												2021
			Pension Benefits						Other Postretirement Benefits						Pension Benefits						Other Postretirement Benefits						Pension Benefits						Other Postretirement Benefits
			(In millions)
Net periodic benefit costs:
Service costs			$	143					$	3					$	187					$	4					$	215					$	4
Interest costs			474						43						328						34						342						37
Settlement and curtailment (gains) losses			6						—						5						—						(7)						1
Expected return on plan assets			(480)						(54)						(516)						(55)						(506)						(56)
Amortization of net actuarial (gains) losses			159						(30)						129						(25)						162						(39)
Amortization of prior service costs (credit)			(11)						—						(11)						—						(12)						—
Total net periodic benefit costs (credit)			291						(38)						122						(42)						194						(53)
Other changes in plan assets and benefit obligations recognized in OCI:
Net actuarial (gains) losses			250						(41)						2						(191)						(166)						(54)
Prior service costs (credit)			—						—						8						—						1						(1)
Amortization of net actuarial gains (losses)			(159)						30						(129)						25						(162)						39
Amortization of prior service (costs) credit			11						—						11						—						12						—
Settlement and curtailment (gains) losses			(6)						—						(5)						—						(10)						10
Exchange rate changes			(2)						—						(7)						—						(8)						—
Total recognized in OCI			94						(11)						(120)						(166)						(333)						(6)
Total recognized in net periodic benefit costs and OCI			$	385					$	(49)					$	2					$	(208)					$	(139)					$	(59)

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

21. Employee Benefit Plans (continued)

Assumptions

Assumptions used in determining benefit obligations for the U.S. plans were as follows:

			Pension Benefits												Other Postretirement Benefits
December 31, 2023
Weighted average discount rate			5.25%												5.35%
Weighted average interest crediting rate			4.00%												N/A
Rate of compensation increase			2.50%			-			8.00%						N/A
December 31, 2022
Weighted average discount rate			5.60%												5.70%
Weighted average interest crediting rate			4.00%												N/A
Rate of compensation increase			2.50%			-			8.00%						N/A

Assumptions used in determining net periodic benefit costs for the U.S. plans were as follows:

			Pension Benefits												Other Postretirement Benefits
Year Ended December 31, 2023
Weighted average discount rate			5.60%												5.70%
Weighted average interest crediting rate			4.00%												N/A
Weighted average expected rate of return on plan assets			6.25%												4.25%
Rate of compensation increase			2.50%			-			8.00%						N/A
Year Ended December 31, 2022
Weighted average discount rate			2.95%												3.05%
Weighted average interest crediting rate			3.43%												N/A
Weighted average expected rate of return on plan assets			5.00%												3.86%
Rate of compensation increase			2.50%			-			8.00%						N/A
Year Ended December 31, 2021
Weighted average discount rate			3.01%												3.14%
Weighted average interest crediting rate			3.24%												N/A
Weighted average expected rate of return on plan assets			5.00%												3.87%
Rate of compensation increase			2.50%			-			8.00%						N/A

The weighted average discount rate for the U.S. plans is determined annually based on the yield, measured on a yield to worst basis, of a hypothetical portfolio constructed of high quality debt instruments available on the measurement date, which would provide the necessary future cash flows to pay the aggregate PBO when due.

The weighted average expected rate of return on plan assets for the U.S. plans is based on anticipated performance of the various asset sectors in which the plans invest, weighted by target allocation percentages. Anticipated future performance is based on long-term historical returns of the plan assets by sector, adjusted for the long-term expectations on the performance of the markets. While the precise expected rate of return derived using this approach will fluctuate from year to year, the policy is to hold this long-term assumption constant as long as it remains within reasonable tolerance from the derived rate.

The weighted average expected rate of return on plan assets for use in that plan’s valuation in 2024 is currently anticipated to be 6.00% for U.S. pension benefits and 4.25% for U.S. other postretirement benefits.

The weighted average interest crediting rate is determined annually based on the plan selected rate, long-term financial forecasts of that rate and the demographics of the plan participants.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

21. Employee Benefit Plans (continued)

The assumed healthcare costs trend rates used in measuring the APBO and net periodic benefit costs were as follows:

			December 31,
			2023												2022
			Before Age 65						Age 65 and older						Before Age 65						Age 65 and older
Following year			6.2		%				4.5		%				5.2		%				3.9		%
Ultimate rate to which cost increase is assumed to decline			3.7		%				4.5		%				3.7		%				4.5		%
Year in which the ultimate trend rate is reached			2074						2102						2074						2100

Plan Assets

Certain U.S. subsidiaries provide employees with benefits under various Employee Retirement Income Security Act of 1974 (“ERISA”) benefit plans. These include qualified pension plans, postretirement medical plans and certain retiree life insurance coverage. The assets of these U.S. subsidiaries’ qualified pension plans are held in insurance group annuity contracts, and the vast majority of the assets of the postretirement medical plan are held in a trust which largely utilizes insurance contracts to hold the assets. All of these contracts are issued by the Company and the assets under the contracts are held in insurance separate accounts. The underlying assets of the separate accounts are principally comprised of cash and cash equivalents, short-term investments, fixed maturity securities AFS, equity securities, derivatives, real estate and private equity investments. The assets backing the retiree life coverage also utilize insurance contracts issued by the Company’s insurance affiliate and are held in a general account Life Insurance Funding Agreement.

The insurance contract provider engages investment management firms (“Managers”) to serve as sub-advisors for the separate accounts based on the specific investment needs and requests identified by the plan fiduciary. These Managers have portfolio management discretion over the purchasing and selling of securities and other investment assets pursuant to the respective investment management agreements and guidelines established for each insurance separate account. The assets of the qualified pension plans and postretirement medical plans (the “Invested Plans”) are well diversified across multiple asset categories and across a number of different Managers, with the intent of minimizing risk concentrations within any given asset category or with any of the given Managers.

The Invested Plans, other than those held in participant directed investment accounts, are managed in accordance with investment policies consistent with the longer-term nature of related benefit obligations and within prudent risk parameters. Specifically, investment policies are oriented toward (i) maximizing the Invested Plan’s funded status; (ii) minimizing the volatility of the Invested Plan’s funded status; (iii) generating asset returns that exceed liability increases; and (iv) targeting rates of return in excess of a custom benchmark and industry standards over appropriate reference time periods. These goals are expected to be met through identifying appropriate and diversified asset classes and allocations, ensuring adequate liquidity to pay benefits and expenses when due and controlling the costs of administering and managing the Invested Plan’s investments. Independent investment consultants are periodically used to evaluate the investment risk of the Invested Plan’s assets relative to liabilities, analyze the economic and portfolio impact of various asset allocations and management strategies and recommend asset allocations.

Derivative contracts may be used to reduce investment risk, to manage duration and to replicate the risk/return profile of an asset or asset class. Derivatives may not be used to leverage a portfolio in any manner, such as to magnify exposure to an asset, asset class, interest rates or any other financial variable. Derivatives are also prohibited for use in creating exposures to securities, currencies, indices or any other financial variable that is otherwise restricted.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

21. Employee Benefit Plans (continued)

The table below summarizes the actual weighted average allocation of the estimated fair value of total plan assets by asset class at December 31 for the years indicated and the approved target allocation by major asset class at December 31, 2023 for the Invested Plans:

						December 31,
						2023																								2022
						U.S. Pension Benefits												U.S. Other Postretirement Benefits (1)												U.S. Pension Benefits						U.S. Other Postretirement Benefits (1)
						Target						Actual Allocation						Target						Actual Allocation						Actual Allocation						Actual Allocation
Asset Class
Fixed maturity securities AFS						85		%				82		%				95		%				94		%				83		%				96		%
Equity securities (2)						7		%				6		%				5		%				6		%				6		%				4		%
Alternative securities (3)						8		%				12		%				—		%				—		%				11		%				—		%
Total assets												100		%										100		%				100		%				100		%

---

(1)U.S. other postretirement benefits do not reflect postretirement life’s plan assets invested in fixed maturity securities AFS.

(2)Equity securities percentage includes derivative assets.

(3)Alternative securities primarily include private equity and real estate funds.

Estimated Fair Value

The pension and other postretirement benefit plan assets are categorized into a three-level fair value hierarchy, as described in Note 13, based upon the significant input with the lowest level in its valuation. The Level 2 asset category includes certain separate accounts that are primarily invested in liquid and readily marketable securities. The estimated fair value of such separate accounts is based upon reported NAV provided by fund managers and this value represents the amount at which transfers into and out of the respective separate account are effected. These separate accounts provide reasonable levels of price transparency and can be corroborated through observable market data. Directly held investments are primarily invested in U.S. and foreign government and corporate securities. The Level 3 asset category includes separate accounts that are invested in assets that provide little or no price transparency due to the infrequency with which the underlying assets trade and generally require additional time to liquidate in an orderly manner. Accordingly, the values for separate accounts invested in these alternative asset classes are based on inputs that cannot be readily derived from or corroborated by observable market data.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

21. Employee Benefit Plans (continued)

The pension and other postretirement plan assets measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are summarized as follows:

						December 31, 2023
						Pension Benefits																								Other Postretirement Benefits
						Fair Value Hierarchy																								Fair Value Hierarchy
						Level 1						Level 2						Level 3						Total Estimated Fair Value						Level 1						Level 2						Level 3						Total Estimated Fair Value
						(In millions)
Assets
Fixed maturity securities AFS:
Corporate						$	—					$	3,029					$	54					$	3,083					$	—					$	167					$	—					$	167
U.S. government bonds						1,537						38						—						1,575						52						6						—						58
Foreign bonds						—						808						2						810						—						46						—						46
Federal agencies						62						141						—						203						1						—						—						1
Municipals						—						147						—						147						—						8						—						8
Short-term investments						13						184						—						197						554						403						—						957
Other (1)						114						577						8						699						4						33						—						37
Total fixed maturity securities AFS						1,726						4,924						64						6,714						611						663						—						1,274
Equity securities						436						162						12						610						59						—						—						59
Other investments						41						—						828						869						1						—						—						1
Derivative assets						10						67						—						77						—						—						—						—
Total assets						$	2,213					$	5,153					$	904					$	8,270					$	671					$	663					$	—					$	1,334

						December 31, 2022
						Pension Benefits																								Other Postretirement Benefits
						Fair Value Hierarchy																								Fair Value Hierarchy
						Level 1						Level 2						Level 3						Total Estimated Fair Value						Level 1						Level 2						Level 3						Total Estimated Fair Value
						(In millions)
Assets
Fixed maturity securities AFS:
Corporate						$	—					$	2,946					$	55					$	3,001					$	—					$	205					$	—					$	205
U.S. government bonds						1,462						45						—						1,507						68						—						—						68
Foreign bonds						—						769						—						769						—						61						—						61
Federal agencies						87						190						—						277						3						1						—						4
Municipals						—						159						—						159						—						15						—						15
Short-term investments						12						384						—						396						463						396						—						859
Other (1)						92						598						3						693						8						36						—						44
Total fixed maturity securities AFS						1,653						5,091						58						6,802						542						714						—						1,256
Equity securities						416						151						3						570						47						—						—						47
Other investments						40						1						855						896						—						—						—						—
Derivative assets						21						1						4						26						—						—						—						—
Total assets						$	2,130					$	5,244					$	920					$	8,294					$	589					$	714					$	—					$	1,303

---

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

21. Employee Benefit Plans (continued)

(1)Other primarily includes money market securities, mortgage-backed securities, collateralized mortgage obligations and ABS & CLO.

A rollforward of all pension and other postretirement benefit plan assets measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs was as follows:

						Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
						Fixed Maturity Securities AFS:
						Foreign Bonds						Corporate						Other						Equity Securities						Other Investments						Derivative Assets
						(In millions)
Balance, January 1, 2022						$	1					$	—					$	1					$	11					$	954					$	—
Realized gains (losses)						—						—						—						—						—						—
Unrealized gains (losses)						—						(1)						—						—						54						1
Purchases, sales, issuances and settlements, net						—						56						3						(8)						(153)						3
Transfers into and/or out of Level 3						(1)						—						(1)						—						—						—
Balance, December 31, 2022						$	—					$	55					$	3					$	3					$	855					$	4
Realized gains (losses)						—						—						—						—						(1)						—
Unrealized gains (losses)						—						1						—						1						(51)						(1)
Purchases, sales, issuances and settlements, net						—						2						—						8						25						(3)
Transfers into and/or out of Level 3						2						(4)						5						—						—						—
Balance, December 31, 2023						$	2					$	54					$	8					$	12					$	828					$	—

Expected Future Contributions and Benefit Payments

It is the subsidiaries’ practice to make contributions to the U.S. qualified pension plan to comply with minimum funding requirements of ERISA. In accordance with such practice, no contributions are expected to be required for 2024. The subsidiaries do not expect to make any discretionary contributions to the qualified pension plan in 2024. For information on employer contributions, see “— Obligations and Funded Status.”

Benefit payments due under the U.S. nonqualified pension plans are primarily funded from the subsidiaries’ general assets as they become due under the provisions of the plans, and therefore benefit payments equal employer contributions. The U.S. subsidiaries expect to make contributions of $80 million to fund the benefit payments in 2024.

Postretirement benefits are either: (i) not vested under law; (ii) a non-funded obligation of the subsidiaries; or (iii) both. Current regulations do not require funding for these benefits. The subsidiaries use their general assets, net of participant’s contributions, to pay postretirement medical claims as they come due. As permitted under the terms of the governing trust document, the subsidiaries may be reimbursed from plan assets for postretirement medical claims paid from their general assets. The U.S. subsidiaries expect to make contributions of $20 million towards benefit obligations in 2024 to pay postretirement medical claims.

Gross benefit payments for the next 10 years, which reflect expected future service where appropriate, are expected to be as follows:

						Pension Benefits						Other Postretirement Benefits
						(In millions)
2024						$	690					$	61
2025						$	697					$	58
2026						$	707					$	57
2027						$	718					$	57
2028						$	735					$	56
2029-2033						$	3,668					$	267

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

21. Employee Benefit Plans (continued)

Defined Contribution Plans

Certain subsidiaries sponsor defined contribution plans under which a portion of employee contributions are matched. These subsidiaries contributed $90 million, $46 million and $88 million for the years ended December 31, 2023, 2022 and 2021, respectively.

22. Income Tax

The provision for income tax was as follows:

			Years Ended December 31,
			2023						2022						2021
			(In millions)
Current:
U.S. federal			$	381					$	159					$	62
U.S. state and local			46						45						38
Non-U.S.			1,240						1,074						795
Subtotal			1,667						1,278						895
Deferred:
U.S. federal			(591)						1,234						872
U.S. state and local			(4)						—						(2)
Non-U.S.			(512)						(1,450)						(123)
Subtotal			(1,107)						(216)						747
Provision for income tax expense (benefit)			$	560					$	1,062					$	1,642

The Company’s income (loss) before income tax expense (benefit) was as follows:

			Years Ended December 31,
			2023						2022						2021
			(In millions)
Income (loss):
U.S.			$	(95)					$	5,785					$	4,924
Non-U.S.			2,257						579						3,594
Total			$	2,162					$	6,364					$	8,518

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

22. Income Tax (continued)

The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported was as follows:

			Years Ended December 31,
			2023						2022						2021
			(In millions)
Tax provision at U.S. statutory rate			$	454					$	1,337					$	1,789
Tax effect of:
Dividend received deduction			(18)						(20)						(40)
Tax-exempt income			(34)						15						(36)
Prior year tax (1)			(12)						(15)						(127)
Low income housing tax credits			(116)						(143)						(178)
Other tax credits			(39)						(44)						(46)
Foreign tax rate differential (2), (3), (4)			312						(85)						275
Changes in tax law (5)			(198)						—						—
Change in valuation allowance (5)			187						—						1
Other, net			24						17						4
Provision for income tax expense (benefit)			$	560					$	1,062					$	1,642

---

(1)As discussed further below, prior year tax primarily includes non-cash benefits related to uncertain tax positions of $32 million and $117 million for the years ended December 31, 2022 and 2021, respectively.

(2)For the year ended December 31, 2023, foreign tax rate differential includes tax charges of $28 million related to the pending disposition of MetLife Malaysia and $22 million related to the U.S. tax on Global Intangible Low-Taxed Income (“GILTI”) of which $28 million is a current year charge, offset by a $6 million tax benefit revising the 2022 estimate. See Note 3 for further information on the Company’s business dispositions.

(3)For the year ended December 31, 2022, foreign tax rate differential includes tax charges of $12 million related to the U.S. tax on GILTI of which $33 million is a current year charge, offset by a $21 million tax benefit revising the 2021 estimate.

(4)For the year ended December 31, 2021, foreign tax rate differential includes tax charges of $50 million related to the disposition of MetLife Poland and Greece, $41 million related to the sale of MetLife Seguros and $30 million related to the U.S. tax on GILTI, which included a $42 million 2021 charge, offset by a $12 million tax benefit revising the 2020 estimate. See Note 3 for information on the Company’s business dispositions.

(5)For the year ended December 31, 2023, changes in tax law include tax benefits of $198 million and a change in valuation allowance includes a tax charge of $198 million related to adjustments of deferred taxes due to the enactment of the Bermuda Corporate Income Tax (“BCIT”), as discussed further below.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

22. Income Tax (continued)

Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at:

			December 31,
			2023						2022
			(In millions)
Deferred income tax assets:
Policyholder liabilities and receivables			$	3,476					$	758
Net operating loss carryforwards (1)			256						238
Employee benefits			523						475
Capital loss carryforwards			29						15
Tax credit carryforwards (2)			82						590
Net unrealized investment losses			4,308						5,946
Litigation-related and government mandated			101						90
Other			393						67
Total gross deferred income tax assets			9,168						8,179
Less: Valuation allowance (1)			496						291
Total net deferred income tax assets			8,672						7,888
Deferred income tax liabilities:
Investments, including derivatives			2,054						1,691
Intangibles			1,004						1,096
DAC			3,929						3,612
Total deferred income tax liabilities			6,987						6,399
Net deferred income tax asset (liability)			$	1,685					$	1,489

---

(1)The Company has recorded a deferred tax asset of $256 million related to U.S. state and non-U.S. net operating loss carryforwards and an offsetting valuation allowance for the year ended December 31, 2023. Certain net operating loss carryforwards will expire between 2024 and 2042, whereas others have an unlimited carryforward period. The Company’s deferred tax asset for the year ended December 31, 2023 includes $198 million recognized due to the BCIT with an offsetting valuation allowance as management believes it is more likely than not that the deferred tax asset will not be realized.

(2)Tax credit carryforwards for the year ended December 31, 2023 primarily reflect foreign tax credits which have no expiration date.

The Company has not provided for U.S. deferred taxes on the remaining excess of book bases over tax bases of certain investments in non-U.S. subsidiaries that are essentially permanent in duration. The amount of deferred tax liability related to the Company’s remaining basis difference in these non-U.S. subsidiaries was $223 million at December 31, 2023.

The Company files income tax returns with the U.S. federal government and various U.S. state and local jurisdictions, as well as non-U.S. jurisdictions. The Company is under continuous examination by the Internal Revenue Service (“IRS”) and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction and subsidiary. The Company is no longer subject to U.S. federal, state, or local income tax examinations for years prior to 2017. In material non-U.S. jurisdictions, the Company is no longer subject to income tax examinations for years prior to 2016.

In 2022, the IRS began a federal income tax audit of MetLife, Inc. and subsidiaries for tax years 2017-2019. The audit is ongoing and to date, no material issues have been raised and no adjustments have been proposed.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

22. Income Tax (continued)

In 2021, the Company filed amended federal income tax returns with the IRS for MetLife, Inc. and subsidiaries for tax years 2014 through 2016. In 2022, the IRS reviewed and acknowledged acceptance of the 2014 through 2016 amended federal income tax returns and closed the years to further audit. Accordingly, in 2022, the Company recorded a non-cash benefit to net income of $70 million, net of income tax, comprised of a $67 million tax benefit recorded in provision for income tax expense (benefit) and a $4 million interest benefit ($3 million, net of income tax) included in other expenses.

In 2021, the Company filed amended federal income tax returns with the IRS for MetLife, Inc. and subsidiaries for tax years 2010 through 2013. In 2021, the IRS reviewed and acknowledged acceptance of the 2010 through 2013 amended federal income tax returns and closed the years to further audit. Accordingly, in 2021, the Company recorded a non-cash benefit to net income of $53 million in provision for income tax expense (benefit). In addition, in 2021, the IRS concluded its federal income tax audit of American Life for tax years 2010 through 2013. Accordingly, in 2021, the Company recorded a non-cash benefit to net income of $42 million, net of income tax, comprised of a $34 million tax benefit recorded in provision for income tax expense (benefit) and a $10 million interest benefit ($8 million, net of income tax) included in other expenses.

The Company’s overall liability for unrecognized tax benefits may increase or decrease in the next 12 months. For example, U.S. federal tax legislation and regulation could impact unrecognized tax benefits. A reasonable estimate of the increase or decrease cannot be made at this time. However, the Company continues to believe that the ultimate resolution of the pending issues will not result in a material change to its consolidated financial statements, although the resolution of income tax matters could impact the Company’s effective tax rate for a particular future period.

A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:

			Years Ended December 31,
			2023						2022						2021
			(In millions)
Balance at January 1,			$	129					$	163					$	272
Additions for tax positions of prior years			27						42						19
Reductions for tax positions of prior years (1)			(30)						(93)						(112)
Additions for tax positions of current year			5						22						5
Reductions for tax positions of current year			—						(3)						(18)
Settlements with tax authorities			—						(2)						(3)
Balance at December 31,			$	131					$	129					$	163
Unrecognized tax benefits that, if recognized, would impact the effective rate			$	90					$	80					$	103

---

(1) For the years ended December 31, 2022 and 2021, primarily includes reductions related to non-cash benefits from tax audit settlements.

The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

22. Income Tax (continued)

Interest was as follows:

			Years Ended December 31,
			2023						2022						2021
			(In millions)
Interest expense (benefit) recognized on the consolidated statements of operations (1)			$	7					$	—					$	(36)
									December 31,
									2023						2022
									(In millions)
Interest included in other liabilities on the consolidated balance sheets									$	22					$	15

---

(1) For the year ended December 31, 2021, the interest benefit is primarily related to a tax audit settlement of $10 million which was recorded in other expenses and a reclassification of $26 million to current income tax payable.

23. Earnings Per Common Share

The following table presents the weighted average shares, basic earnings per common share and diluted earnings per common share:

			Years Ended December 31,
			2023						2022						2021
			(In millions, except per share data)
Weighted Average Shares:
Weighted average common stock outstanding - basic			757.7						803.2						862.7
Incremental common shares from assumed exercise or issuance of stock-based awards			4.6						5.7						6.7
Weighted average common stock outstanding - diluted			762.3						808.9						869.4
Net Income (Loss):
Net income (loss)			$	1,602					$	5,302					$	6,876
Less: Net income (loss) attributable to noncontrolling interests			24						18						21
Less: Preferred stock dividends			198						185						195
Preferred stock redemption premium			—						—						6
Net income (loss) available to MetLife, Inc.’s common shareholders			$	1,380					$	5,099					$	6,654
Basic			$	1.82					$	6.35					$	7.71
Diluted			$	1.81					$	6.30					$	7.65

24. Contingencies, Commitments and Guarantees

Contingencies

Litigation

The Company is a defendant in a large number of litigation matters. Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed below and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, mortgage lending bank, employer, investor, investment advisor, broker-dealer, and taxpayer.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

24. Contingencies, Commitments and Guarantees (continued)

The Company also receives and responds to subpoenas or other inquiries seeking a broad range of information from state regulators, including state insurance commissioners; state attorneys general or other state governmental authorities; federal regulators, including the U.S. Securities and Exchange Commission; federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority, as well as from local and national regulators and government authorities in jurisdictions outside the United States where the Company conducts business. The issues involved in information requests and regulatory matters vary widely, but can include inquiries or investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. The Company cooperates in these inquiries.

It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. In certain circumstances where liabilities have been established there may be coverage under one or more corporate insurance policies, pursuant to which there may be an insurance recovery. Insurance recoveries are recognized as gains when any contingencies relating to the insurance claim have been resolved, which is the earlier of when the gains are realized or realizable. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be reasonably estimated at December 31, 2023. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known to management, management does not believe any such charges are likely to have a material effect on the Company’s financial position. Given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods.

Matters as to Which an Estimate Can Be Made

For some matters, the Company is able to estimate a reasonably possible range of loss. For matters where a loss is believed to be reasonably possible, but not probable, the Company has not made an accrual. As of December 31, 2023, the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $125 million.

Matters as to Which an Estimate Cannot Be Made

For other matters, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Asbestos-Related Claims

MLIC is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege that the plaintiff or plaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. MLIC has never engaged in the business of manufacturing or selling asbestos-containing products, nor has MLIC issued liability or workers’ compensation insurance to companies in the business of manufacturing or selling asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication and other activities of one or more of MLIC’s employees during the period from the 1920s through approximately the 1950s and allege that MLIC learned or should have learned of certain health risks posed by asbestos and, among other things, improperly publicized or failed to disclose those health risks. MLIC believes that it should not have legal liability in these cases. The outcome of most asbestos litigation matters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the nature of the alleged injury and factors unrelated to the ultimate legal merit of the claims asserted against MLIC.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

24. Contingencies, Commitments and Guarantees (continued)

MLIC’s defenses include that: (i) MLIC owed no duty to the plaintiffs; (ii) plaintiffs did not rely on any actions of MLIC; (iii) MLIC’s conduct was not the cause of the plaintiffs’ injuries; and (iv) plaintiffs’ exposure occurred after the dangers of asbestos were known. During the course of the litigation, certain trial courts have granted motions dismissing claims against MLIC, while other trial courts have denied MLIC’s motions. There can be no assurance that MLIC will receive favorable decisions on motions in the future. While most cases brought to date have settled, MLIC intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials.

The approximate total number of asbestos personal injury claims pending against MLIC as of the dates indicated, the approximate number of new claims during the years ended on those dates and the approximate total settlement payments made to resolve asbestos personal injury claims at or during those years are set forth in the following table:

			December 31,
			2023						2022						2021
			(In millions, except number of claims)
Asbestos personal injury claims at year end			57,488						58,073						58,785
Number of new claims during the year			2,565						2,610						2,824
Settlement payments during the year (1)			$	50.6					$	50.5					$	53.0

---

(1)Settlement payments represent payments made by MLIC during the year in connection with settlements made in that year and in prior years. Amounts do not include MLIC’s attorneys’ fees and expenses.

The number of asbestos cases that may be brought, the aggregate amount of any liability that MLIC may incur, and the total amount paid in settlements in any given year are uncertain and may vary significantly from year to year.

The ability of MLIC to estimate its ultimate asbestos exposure is subject to considerable uncertainty, and the conditions impacting its liability can be dynamic and subject to change. The availability of reliable data is limited and it is difficult to predict the numerous variables that can affect liability estimates, including the number of future claims, the cost to resolve claims, the disease mix and severity of disease in pending and future claims, the willingness of courts to allow plaintiffs to pursue claims against MLIC when exposure to asbestos took place after the dangers of asbestos exposure were well known, and the impact of any possible future adverse verdicts and their amounts.

The ability to make estimates regarding ultimate asbestos exposure declines significantly as the estimates relate to years further in the future. In the Company’s judgment, there is a future point after which losses cease to be probable and reasonably estimable. It is reasonably possible that the Company’s total exposure to asbestos claims may be materially greater than the asbestos liability currently accrued and that future charges to income may be necessary, but management does not believe any such charges are likely to have a material effect on the Company’s financial position.

The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for asbestos-related claims. MLIC’s recorded asbestos liability covers pending claims, claims not yet asserted, and legal defense costs and is based on estimates and includes significant assumptions underlying its analysis.

MLIC reevaluates on a quarterly and annual basis its exposure from asbestos litigation, including studying its claims experience, reviewing external literature regarding asbestos claims experience in the United States, assessing relevant trends impacting asbestos liability and considering numerous variables that can affect its asbestos liability exposure on an overall or per claim basis. Based upon its regular reevaluation of its exposure from asbestos litigation, MLIC has updated its recorded liability for asbestos-related claims. The frequency of severe claims relating to asbestos has not declined as expected, and MLIC has reflected this in its provisions. Accordingly, MLIC increased its recorded liability for asbestos-related claims to $364 million at December 31, 2023. The recorded liability was $320 million at December 31, 2022.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

24. Contingencies, Commitments and Guarantees (continued)

Total Asset Recovery Services, LLC. v. MetLife, Inc., et al. (Supreme Court of the State of New York, County of New York, filed December 27, 2017)

Total Asset Recovery Services (the “Relator”) brought an action under the qui tam provision of the New York False Claims Act (the “Act”) on behalf of itself and the State of New York. The Relator originally filed this action under seal in 2010, and the complaint was unsealed on December 19, 2017. The Relator alleges that MetLife, Inc., MLIC, and several other insurance companies violated the Act by filing false unclaimed property reports with the State of New York from 1986 to 2017, to avoid having to escheat the proceeds of more than 25,000 life insurance policies, including policies for which the defendants escheated funds as part of their demutualizations in the late 1990s. The Relator seeks treble damages and other relief. The Appellate Division of the New York State Supreme Court, First Department, reversed the court’s order granting MetLife, Inc. and MLIC’s motion to dismiss and remanded the case to the trial court where the Relator has filed an amended complaint. The Company intends to defend the action vigorously.

Matters Related to Group Annuity Benefits

In 2018, the Company announced that it identified a material weakness in its internal control over financial reporting related to the practices and procedures for estimating reserves for certain group annuity benefits. Several regulators have made inquiries into the issue and it is possible that other jurisdictions may pursue similar investigations or inquiries. The Company could be exposed to lawsuits and additional legal actions relating to the issue. These may result in payments, including damages, fines, penalties, interest and other amounts assessed or awarded by courts or regulatory authorities under applicable escheat, tax, securities, ERISA, or other laws or regulations. The Company could incur significant costs in connection with these actions.

Commitments

Mortgage Loan Commitments

The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $4.0 billion and $3.4 billion at December 31, 2023 and 2022, respectively.

Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments

The Company commits to fund partnership investments and to lend funds under bank credit facilities, bridge loans and private corporate bond investments. The amounts of these unfunded commitments were $9.2 billion and $9.4 billion at December 31, 2023 and 2022, respectively.

Guarantees

In the normal course of its business, the Company has provided certain indemnities and guarantees to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $329 million, with a cumulative maximum of $630 million, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities or guarantees.

In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

24. Contingencies, Commitments and Guarantees (continued)

The Company also has minimum fund yield requirements on certain pension funds. Since these guarantees are not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future.

The Company’s recorded liabilities were $19 million and $20 million at December 31, 2023 and 2022, respectively, for indemnities and guarantees.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

25. Quarterly Results of Operations (Unaudited)

The unaudited quarterly results of operations for 2023 and 2022 are summarized in the table below:

						Three Months Ended
						March 31,						June 30,						September 30,						December 31,
						(In millions, except per share data)
2023
Total revenues						$	15,388					$	16,623					$	15,866					$	19,028
Total expenses						$	15,131					$	16,193					$	15,332					$	18,087
Net income (loss)						$	85					$	408					$	495					$	614
Less: Net income (loss) attributable to noncontrolling interests						$	5					$	6					$	6					$	7
Net income (loss) attributable to MetLife, Inc.						$	80					$	402					$	489					$	607
Less: Preferred stock dividends						$	66					$	32					$	67					$	33
Net income (loss) available to MetLife, Inc.’s common shareholders						$	14					$	370					$	422					$	574
Basic earnings per common share
Net income (loss) attributable to MetLife, Inc.						$	0.10					$	0.52					$	0.65					$	0.82
Net income (loss) available to MetLife, Inc.’s common shareholders						$	0.02					$	0.48					$	0.56					$	0.78
Diluted earnings per common share
Net income (loss) attributable to MetLife, Inc.						$	0.10					$	0.52					$	0.65					$	0.82
Net income (loss) available to MetLife, Inc.’s common shareholders						$	0.02					$	0.48					$	0.56					$	0.77
2022
Total revenues						$	15,405					$	15,474					$	22,283					$	15,608
Total expenses						$	13,470					$	14,486					$	20,868					$	13,582
Net income (loss)						$	1,639					$	915					$	1,167					$	1,581
Less: Net income (loss) attributable to noncontrolling interests						$	5					$	5					$	5					$	3
Net income (loss) attributable to MetLife, Inc.						$	1,634					$	910					$	1,162					$	1,578
Less: Preferred stock dividends						$	63					$	29					$	64					$	29
Net income (loss) available to MetLife, Inc.’s common shareholders						$	1,571					$	881					$	1,098					$	1,549
Basic earnings per common share
Net income (loss) attributable to MetLife, Inc.						$	1.98					$	1.12					$	1.46					$	2.01
Net income (loss) available to MetLife, Inc.’s common shareholders						$	1.91					$	1.09					$	1.38					$	1.98
Diluted earnings per common share
Net income (loss) attributable to MetLife, Inc.						$	1.97					$	1.12					$	1.45					$	2.00
Net income (loss) available to MetLife, Inc.’s common shareholders						$	1.89					$	1.08					$	1.37					$	1.96

MetLife, Inc.

Schedule I

Consolidated Summary of Investments —

Other Than Investments in Related Parties

December 31, 2023

(In millions)

Types of Investments			Cost or Amortized Cost (1)						Estimated Fair Value						Amount at Which Shown on Balance Sheet
Fixed maturity securities AFS:
Bonds:
Foreign government			$	48,260					$	45,489					$	45,489
U.S. government and agency			35,374						32,252						32,252
Public utilities			10,842						10,534						10,534
Municipals			11,991						11,171						11,171
All other corporate bonds			132,887						124,645						124,645
Total bonds			239,354						224,091						224,091
Mortgage-backed, asset-backed and collateralized loan obligations securities			60,244						56,339						56,339
Redeemable preferred stock			957						982						982
Total fixed maturity securities AFS			300,555						281,412						281,412
Unit-linked and FVO securities			8,742						10,331						10,331
Equity securities:
Common stock:
Industrial, miscellaneous and all other			306						456						456
Banks, trust and insurance companies			118						204						204
Public utilities			—						3						3
Non-redeemable preferred stock			90						94						94
Total equity securities			514						757						757
Mortgage loans			93,227												92,506
Policy loans			8,788												8,788
Real estate and real estate joint ventures			13,142												13,142
Real estate acquired in satisfaction of debt			190												190
Other limited partnership interests			14,764												14,764
Short-term investments			5,990												6,045
Other invested assets			18,225												18,202
Total investments			$	464,137											$	446,137

---

(1)Unit-linked and FVO securities are primarily equity securities (including mutual funds) and fixed maturity securities. Amortized cost for fixed maturity securities AFS, Unit-linked and FVO securities, mortgage loans, policy loans and short-term investments represents original cost reduced by repayments and adjusted for amortization of premium or accretion of discount; for equity securities, cost represents original cost; for real estate, cost represents original cost reduced by impairments and depreciation; for real estate joint ventures and other limited partnership interests, cost represents original cost reduced for impairments and adjusted for equity in earnings and distributions.

MetLife, Inc.

Schedule II

Condensed Financial Information

(Parent Company Only)

December 31, 2023 and 2022

(In millions, except share and per share data)

			2023						2022
Condensed Balance Sheets
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $1,689 and $3,877, respectively)			$	1,583					$	3,729
Short-term investments, principally at estimated fair value			52						—
Other invested assets, at estimated fair value			517						376
Total investments			2,152						4,105
Cash and cash equivalents			3,021						1,290
Accrued investment income			9						20
Investment in subsidiaries			43,838						42,736
Loans to subsidiaries			305						95
Other assets			667						724
Total assets			$	49,992					$	48,970
Liabilities and Stockholders’ Equity
Liabilities
Payables for collateral under derivatives transactions			$	265					$	154
Long-term debt — unaffiliated			14,516						13,588
Long-term debt — affiliated			1,585						1,676
Junior subordinated debt securities			2,468						2,465
Other liabilities			1,143						1,206
Total liabilities			19,977						19,089
Stockholders’ Equity
Preferred stock, par value $0.01 per share; $3,905 aggregate liquidation preference			—						—
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,191,823,651 and 1,189,831,471 shares issued, respectively; 730,821,111 and 779,098,414 shares outstanding, respectively			12						12
Additional paid-in capital			33,690						33,616
Retained earnings			40,146						40,332
Treasury stock, at cost; 461,002,540 and 410,733,057 shares, respectively			(24,591)						(21,458)
Accumulated other comprehensive income (loss)			(19,242)						(22,621)
Total stockholders’ equity			30,015						29,881
Total liabilities and stockholders’ equity			$	49,992					$	48,970

See accompanying notes to the condensed financial information.

MetLife, Inc.

Schedule II

Condensed Financial Information — (continued)

(Parent Company Only)

Years Ended December 31, 2023, 2022 and 2021

(In millions)

			2023						2022						2021
Condensed Statements of Operations
Revenues
Net investment income			$	188					$	58					$	25
Other revenues			17						17						19
Net investment gains (losses)			134						332						1,655
Net derivative gains (losses)			(41)						129						116
Total revenues			298						536						1,815
Expenses
Interest expense			907						829						847
Other expenses			140						79						207
Total expenses			1,047						908						1,054
Income (loss) before provision for income tax and equity in earnings of subsidiaries			(749)						(372)						761
Provision for income tax (expense) benefit			128						37						(202)
Equity in earnings of subsidiaries			2,199						5,619						6,296
Net income (loss)			1,578						5,284						6,855
Less: Preferred stock dividends			198						185						195
Preferred stock redemption premium			—						—						6
Net income (loss) available to common shareholders			$	1,380					$	5,099					$	6,654
Comprehensive income (loss)			$	4,957					$	(14,886)					$	4,089

See accompanying notes to the condensed financial information.

MetLife, Inc.

Schedule II

Condensed Financial Information — (continued)

(Parent Company Only)

Years Ended December 31, 2023, 2022 and 2021

(In millions)

			2023						2022						2021
Condensed Statements of Cash Flows
Cash flows from operating activities
Net income (loss)			$	1,578					$	5,284					$	6,855
Earnings of subsidiaries			(2,199)						(5,619)						(6,296)
Dividends from subsidiaries			4,780						5,168						4,830
(Gains) losses on investments and from sales of businesses, net			(134)						(332)						(1,655)
Other, net			158						(73)						23
Net cash provided by (used in) operating activities			4,183						4,428						3,757
Cash flows from investing activities
Sales, maturities and repayments of fixed maturity securities available-for-sale			3,093						1,609						5,078
Purchases of fixed maturity securities available-for-sale			(973)						(2,757)						(4,371)
Sales, maturities and repayments of short-term investments			1,330						—						—
Purchases of short-term investments			(1,375)						—						—
Net change in short-term investments			—						—						156
Cash received in connection with freestanding derivatives			161						296						111
Cash paid in connection with freestanding derivatives			(155)						(103)						(27)
Sales of businesses			—						—						3,902
Expense paid on behalf of subsidiaries			(4)						(10)						(15)
Receipts on loans to subsidiaries			250						150						195
Issuances of loans to subsidiaries			(460)						(210)						(230)
Returns of capital from subsidiaries			6						8						13
Capital contributions to subsidiaries			(528)						(5)						(88)
Other, net			(3)						15						9
Net cash provided by (used in) investing activities			1,342						(1,007)						4,733
Cash flows from financing activities
Net change in payables for collateral under derivative transactions			111						1						88
Long-term debt issued			1,986						1,000						496
Long-term debt repaid			(1,000)						—						(996)
Treasury stock acquired in connection with share repurchases			(3,103)						(3,326)						(4,303)
Redemption of preferred stock			—						—						(494)
Preferred stock redemption premium			—						—						(6)
Dividends on preferred stock			(198)						(185)						(195)
Dividends on common stock			(1,566)						(1,598)						(1,647)
Other, net			(24)						16						87
Net cash provided by (used in) financing activities			(3,794)						(4,092)						(6,970)
Change in cash and cash equivalents			1,731						(671)						1,520
Cash and cash equivalents, beginning of year			1,290						1,961						441
Cash and cash equivalents, end of year			$	3,021					$	1,290					$	1,961

MetLife, Inc.

Schedule II

Condensed Financial Information — (continued)

(Parent Company Only)

Years Ended December 31, 2023, 2022 and 2021

(In millions)

			2023						2022						2021
Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest			$	852					$	800					$	853
Income tax:
Amounts paid to (received from) subsidiaries, net			$	(671)					$	(214)					$	(110)
Income tax paid (received) by MetLife, Inc., net			506						85						128
Total income tax, net			$	(165)					$	(129)					$	18
Non-cash transactions:
Dividends from subsidiary			$	—					$	—					$	14
Returns of capital from subsidiaries			$	2					$	12					$	7
Capital contributions to subsidiaries			$	1					$	11					$	15

MetLife, Inc.

Schedule II

Notes to the Condensed Financial Information

(Parent Company Only)

1. Basis of Presentation

The condensed financial information of MetLife, Inc. (parent company only) should be read in conjunction with the consolidated financial statements of MetLife, Inc. and its subsidiaries and the notes thereto (the “Consolidated Financial Statements”). These condensed unconsolidated financial statements reflect the results of operations, financial position and cash flows for MetLife, Inc. Investments in subsidiaries are accounted for using the equity method of accounting.

The preparation of these condensed unconsolidated financial statements in conformity with GAAP requires management to adopt accounting policies and make certain estimates and assumptions. The most important of these estimates and assumptions relate to the fair value measurements, the accounting for goodwill and the provision for potential losses that may arise from litigation and regulatory proceedings and tax audits, which may affect the amounts reported in the condensed unconsolidated financial statements and accompanying notes. Actual results could differ from these estimates.

Adoption of ASU 2018-12 - Targeted Improvements to the Accounting for Long-Duration Contracts

Effective January 1, 2023, MetLife, Inc. adopted ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, as amended by ASU 2019-09, Financial Services—Insurance (Topic 944): Effective Date; ASU 2020-11, Financial Services—Insurance (Topic 944): Effective Date and Early Application; and ASU 2022-05, Financial Services—Insurance (Topic 944): Transition for Sold Contracts (“LDTI”), with a transition date of January 1, 2021. Adoption of LDTI impacted MetLife, Inc.’s accounting and presentation related to long-duration insurance contracts and certain related balances for the years ended December 31, 2022 and 2021. Amounts within these condensed unconsolidated financial statements which were previously presented, primarily investment in subsidiaries and net investment income, have been revised to conform with the current year accounting and presentation under LDTI. See Note 1 of the Notes to the Consolidated Financial Statements for further information on the adoption of LDTI.

2. Investment in Subsidiaries

In April 2021, MetLife, Inc. received $3.9 billion in cash in connection with the disposition of MetLife P&C.

See Note 3 of the Notes to the Consolidated Financial Statements for additional information on dispositions.

3. Loans to Subsidiaries

MetLife, Inc. lends funds as necessary, through credit agreements or otherwise to its subsidiaries, some of which are regulated, to meet their capital requirements or to provide liquidity. Payments of interest and principal on surplus notes of regulated subsidiaries, which are subordinate to all other obligations of the issuing company, may be made only with the prior approval of the insurance department of the state of domicile.

In March 2023, under the existing credit facility, MetLife Services and Solutions, LLC (“MSS”) issued a $250 million short-term note to MetLife, Inc, which was repaid by December 2023. The short-term note bore interest at three-month CME Term SOFR plus 1.24%. During 2022 and 2021, MSS also issued $150 million and $195 million, respectively, in short-term notes to MetLife, Inc. which were repaid by September 2022 and August 2021, respectively. The short-term notes bore interest at six-month LIBOR plus 1.00%.

In March 2023, Missouri Reinsurance, Inc. (“MoRe”), issued to MetLife, Inc. an $80 million 5.34% promissory note maturing in March 2028, an $80 million 5.68% promissory note maturing in March 2033 and a $50 million 6.05% promissory note maturing in March 2038. In December 2022 and 2021, MoRe also issued to MetLife, Inc. a $60 million 5.23% promissory note maturing in December 2024 and a $35 million 2.12% promissory note maturing in December 2024. All notes are payable semi-annually.

Interest income earned on loans to subsidiaries of $22 million, $2 million and $1 million for the years ended December 31, 2023, 2022 and 2021, respectively, is included in net investment income.

MetLife, Inc.

Schedule II

Notes to the Condensed Financial Information — (continued)

(Parent Company Only)

4. Long-term Debt

Long-term debt outstanding was as follows:

			Interest Rates (1)																														December 31,
			Range																		Maturity												2023						2022
			(Dollars in millions)
Senior notes — unaffiliated (2)			0.50%						-						6.50%						2024			-			2054						$	14,516					$	13,588
Senior notes — affiliated			1.59%						-						7.49%						2025			-			2031						1,585						1,676
Total																																	$	16,101					$	15,264

---

(1)Range of interest rates are for the year ended December 31, 2023.

(2)Net of $106 million and $83 million of unamortized issuance costs and net premiums and discounts at December 31, 2023 and 2022, respectively.

See Notes 16 of the Notes to the Consolidated Financial Statements for additional information.

The aggregate maturities of long-term debt at December 31, 2023 for the next five years and thereafter are $1.4 billion in 2024, $1.2 billion in 2025, $476 million in 2026, $0 in 2027, $237 million in 2028 and $12.7 billion thereafter.

Senior Notes – Affiliated

In July 2023, a ¥37.3 billion 1.6015% senior unsecured note issued to MLIC matured and was refinanced with a ¥37.3 billion 2.1575% senior unsecured note due July 2030 issued to MLIC.

In December 2021, ¥54.6 billion 3.1350% senior unsecured notes issued to various subsidiaries matured and were refinanced with the following senior unsecured notes issued to various subsidiaries: (i) ¥12.2 billion 1.588% due December 2026, (ii) ¥19.1 billion 1.7185% due December 2028 and (iii) ¥23.3 billion 1.850% due December 2031.

In July 2021, ¥53.7 billion 2.9725% senior unsecured notes issued to various subsidiaries matured and were refinanced with the following senior unsecured notes issued to various subsidiaries: (i) ¥13.7 billion 1.610% due July 2026, (ii) ¥14.3 billion 1.755% due July 2028 and (iii) ¥25.7 billion 1.852% due July 2031.

Interest Expense

Interest expense was comprised of the following:

			Years Ended December 31,
			2023						2022						2021
			(In millions)
Long-term debt — unaffiliated			$	653					$	583					$	590
Long-term debt — affiliated			45						37						47
Collateral financing arrangements			4						4						5
Junior subordinated debt securities			205						205						205
Total			$	907					$	829					$	847

See Notes 17 and 18 of the Notes to the Consolidated Financial Statements for information on the collateral financing arrangement and junior subordinated debt securities.

MetLife, Inc.

Schedule II

Notes to the Condensed Financial Information — (continued)

(Parent Company Only)

5. Support Agreements

MetLife, Inc. is party to various capital support commitments and guarantees with certain of its subsidiaries. Under these arrangements, MetLife, Inc. has agreed to cause each such entity to meet specified capital and surplus levels or has guaranteed certain contractual obligations.

MetLife, Inc. guarantees the obligations of MoRe under a retrocession agreement with RGA Reinsurance (Barbados) Inc., pursuant to which MoRe retrocedes a portion of the closed block liabilities associated with industrial life and ordinary life insurance policies that it assumed from MLIC.

MetLife, Inc. guarantees the obligations of MetLife Reinsurance Company of Bermuda, Ltd. (“MrB”), a Bermuda insurance affiliate and an indirect, wholly-owned subsidiary of MetLife, Inc. under a reinsurance agreement with a former affiliate that is now an unaffiliated third party, under which MrB reinsures certain variable annuity business written by such third party.

MetLife, Inc. guarantees the obligations of MrB in an aggregate amount up to $1.0 billion, under a reinsurance agreement with MetLife Europe d.a.c., in respect of MrB’s reinsurance of the guaranteed living benefits and guaranteed death benefits associated with certain Unit-linked investments issued by MetLife Europe d.a.c.

MetLife, Inc., in connection with MRV’s reinsurance of certain universal life and term life insurance risks, committed to the Vermont Department of Banking, Insurance, Securities and Health Care Administration to take necessary action to cause the two protected cells of MRV to maintain total adjusted capital in an amount that is equal to or greater than 200% of each such protected cell’s authorized control level RBC, as defined in Vermont state insurance statutes.

MetLife, Inc., in connection with the collateral financing arrangement associated with MRC’s reinsurance of a portion of the liabilities associated with the closed block, committed to the South Carolina Department of Insurance to make capital contributions, if necessary, to MRC so that MRC may at all times maintain its total adjusted capital in an amount that is equal to or greater than 200% of the Company Action Level RBC, as defined in South Carolina state insurance statutes as in effect on the date of determination or December 31, 2007, whichever calculation produces the greater capital requirement, or as otherwise required by the South Carolina Department of Insurance. See Note 17 of the Notes to the Consolidated Financial Statements.

MetLife, Inc. guarantees obligations arising from OTC-bilateral derivatives of MrB. MrB is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. MrB uses a variety of strategies to manage these risks, including the use of derivatives. Further, MrB’s derivatives are subject to industry standard netting agreements and collateral agreements that limit the unsecured portion of any open derivative position. On a net counterparty basis at December 31, 2023 and 2022, derivative transactions with positive mark-to-market values (in-the-money) were $27 million and $174 million, respectively, and derivative transactions with negative mark-to-market values (out-of-the-money) were $191 million and $181 million, respectively. To secure the obligations represented by the out-of-the-money transactions, MrB had provided collateral to its counterparties with an estimated fair value of $183 million and $181 million at December 31, 2023 and 2022, respectively. Accordingly, unsecured derivative liabilities guaranteed by MetLife, Inc. were $8 million and $0 at December 31, 2023 and 2022, respectively.

MetLife, Inc. also guarantees the obligations of certain of its subsidiaries under committed facilities with third-party banks. See Note 16 of the Notes to the Consolidated Financial Statements.

MetLife, Inc.

Schedule III

Consolidated Supplementary Insurance Information

December 31, 2023 and 2022

(In millions)

Segment						DAC and VOBA						Future Policy Benefits, Other Policy-Related Balances and Policyholder Dividend Obligation						Policyholder Account Balances						Market Risk Benefits (Assets) Liabilities (1)						Policyholder Dividends Payable						Unearned Premiums (2), (3)						Unearned Revenue (2)
2023
Group Benefits (4)						$	258					$	17,863					$	7,692					$	—					$	—					$	446					$	—
RIS (4)						413						71,223						82,405						(13)						—						7						31
Asia						11,983						35,683						92,063						234						75						1,532						2,850
Latin America						2,447						14,636						6,368						—						—						2						989
EMEA						1,731						3,463						7,578						(53)						—						18						608
MetLife Holdings						3,289						72,410						23,178						2,722						311						155						59
Corporate & Other						30						864						(15)						3						—						—						—
Total						$	20,151					$	216,142					$	219,269					$	2,893					$	386					$	2,160					$	4,537
2022
Group Benefits (4)						$	264					$	16,971					$	8,028					$	—					$	—					$	349					$	—
RIS (4)						286						64,376						80,066						8						—						3						36
Asia						11,560						34,642						84,165						284						72						1,889						2,382
Latin America						2,087						13,426						5,383						—						—						2						848
EMEA						1,607						3,269						7,289						(37)						—						14						559
MetLife Holdings						3,819						71,914						25,688						3,225						315						158						281
Corporate & Other						30						1,048						(22)						3						—						—						—
Total						$	19,653					$	205,646					$	210,597					$	3,483					$	387					$	2,415					$	4,106

---

(1)MRBs assets and liabilities are presented net.

(2)Amounts are included within the future policy benefits, other policy-related balances and policyholder dividend obligation column.

(3)Includes premiums received in advance.

(4)See Note 2 for information on the reorganization of the Company’s segments.

MetLife, Inc.

Schedule III

Consolidated Supplementary Insurance Information — (continued)

Years Ended December 31, 2023, 2022 and 2021

(In millions)

Segment						Premiums and Universal Life and Investment-Type Product Policy Fees						Net Investment Income						Policyholder Benefits and Claims, Policyholder Liability Remeasurement (Gains) Losses and Interest Credited to Policyholder Account Balances						Market Risk Benefit Remeasurement (Gains) Losses						Amortization of DAC and VOBA Charged to Other Expenses						Other Expenses (1)
2023
Group Benefits (2)						$	22,436					$	1,148					$	19,329					$	—					$	26					$	3,778
RIS (2)						8,561						7,354						14,057						(29)						49						403
Asia						6,883						4,307						6,941						(43)						794						1,562
Latin America						5,685						1,610						4,801						—						468						1,263
EMEA						2,314						885						1,737						(40)						348						807
MetLife Holdings						3,513						4,234						5,517						(882)						258						1,527
Corporate & Other						43						370						23						—						9						2,040
Total						$	49,435					$	19,908					$	52,405					$	(994)					$	1,952					$	11,380
2022
Group Benefits (2)						$	21,906					$	1,081					$	19,226					$	—					$	26					$	3,460
RIS (2)						13,923						5,899						18,124						(314)						40						380
Asia						7,256						3,571						6,199						(90)						745						1,601
Latin America						4,399						1,318						4,092						—						410						1,032
EMEA						2,298						(864)						30						(126)						331						778
MetLife Holdings						3,968						4,633						5,849						(3,144)						270						1,632
Corporate & Other						(15)						278						(5)						—						9						1,851
Total						$	53,735					$	15,916					$	53,515					$	(3,674)					$	1,831					$	10,734
2021
Group Benefits (2)						$	21,304					$	1,102					$	19,929					$	—					$	26					$	3,158
RIS (2)						5,334						6,606						8,928						96						37						368
Asia						8,047						5,110						7,386						(48)						786						1,758
Latin America						3,749						1,207						3,475						—						372						978
EMEA						2,803						932						2,085						(120)						389						900
MetLife Holdings						4,256						6,093						6,097						(1,161)						320						1,845
Corporate & Other (3)						903						345						617						(4)						107						1,854
Total						$	46,396					$	21,395					$	48,517					$	(1,237)					$	2,037					$	10,861

---

(1)Includes other expenses and policyholder dividends, excluding amortization of DAC and VOBA charged to other expenses.

(2)See Note 2 for information on the reorganization of the Company’s segments.

(3)Includes activity related to MetLife P&C, a former subsidiary of the Company, that was previously reported in the former U.S. segment. See Notes 2 and 3.

MetLife, Inc.

Schedule IV

Consolidated Reinsurance

December 31, 2023, 2022 and 2021

(Dollars in millions)

						Gross Amount						Ceded						Assumed						Net Amount						% Amount Assumed to Net
2023
Life insurance in-force						$	5,627,777					$	473,860					$	829,720					$	5,983,637					13.9		%
Insurance premium
Life insurance (1)						$	25,653					$	1,363					$	2,851					$	27,141					10.5		%
Accident & health insurance						17,589						824						261						17,026						1.5		%
Property and casualty insurance						117						1						—						116						—		%
Total insurance premium						$	43,359					$	2,188					$	3,112					$	44,283					7.0		%
2022
Life insurance in-force						$	5,371,318					$	390,521					$	647,646					$	5,628,443					11.5		%
Insurance premium
Life insurance (1)						$	30,835					$	1,422					$	2,517					$	31,930					7.9		%
Accident & health insurance						16,737						715						518						16,540						3.1		%
Property and casualty insurance						46						6						—						40						—		%
Total insurance premium						$	47,618					$	2,143					$	3,035					$	48,510					6.3		%
2021
Life insurance in-force						$	5,273,869					$	394,023					$	662,901					$	5,542,747					12.0		%
Insurance premium
Life insurance (1)						$	22,854					$	1,455					$	2,346					$	23,745					9.9		%
Accident & health insurance						16,613						651						555						16,517						3.4		%
Property and casualty insurance						910						28						8						890						0.9		%
Total insurance premium						$	40,377					$	2,134					$	2,909					$	41,152					7.1		%

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(1)Includes annuities with life contingencies.