UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 ______________________________________
Form 10-Q
(Mark One)
þ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2017MARCH 31, 2022
or
¨☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM                         TO
Commission file number: 000-55029

________________________________________
Metropolitan Life Insurance Company
(Exact name of registrant as specified in its charter)
New York13-5581829
(State or other jurisdiction of

incorporation or organization)
(I.R.S. Employer

Identification No.)
200 Park Avenue,New York, N.Y.NY10166-0188
(Address of principal executive offices)(Zip Code)
(212) 578-9500
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
NoneN/AN/A
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes þ☑    No ¨☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes þ☑   No ¨☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
¨

☐		Accelerated filer
¨

☐
Non-accelerated filer (Do not check if a smaller reporting company)þ☑Smaller reporting company
¨

☐
Emerging growth company
¨

☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ¨☐    No þ☑
At November 8, 2017,May 11, 2022, 494,466,664 shares of the registrant’s common stock $0.01 par value per share, were outstanding, all of which were owned directly by MetLife, Inc.
REDUCED DISCLOSURE FORMAT
The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is, therefore, filing this Form 10-Q with the reduced disclosure format.


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Table of Contents
Page
Item 1.Financial Statements (Unaudited) (at September 30, 2017 (Unaudited)March 31, 2022 and December 31, 20162021 and for the Three Months Ended March 31, 2022 and Nine Months Ended September 30, 2017 and 2016 (Unaudited))2021)
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78
1012
1715
1917
2220
36
5145
6959
7261
7262
7362
7965
Item 2.
8468
Item 4.
9777
Item 1.
9878
Item 1A.
10078
Item 6. 
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As used in this Form 10-Q, “MLIC,” the “Company,” “we,” “our” and “us” refer to Metropolitan Life Insurance Company, a New York corporation incorporated in 1868, and its subsidiaries. Metropolitan Life Insurance Company is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”).
Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q,10‑Q, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events. These statements can be identified by the fact that theyevents and do not relate strictly to historical or current facts. They use words and terms such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “project,“if,” “intend,” “likely,” “may,” “plan,” “believe”“potential,” “project,” “should,” “will,” “would” and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in connection with a discussion of future operating or financial performance. In particular, theseeach case in all derivative forms. They include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, future sales efforts, future expenses, the outcome of contingencies such as legal proceedings, and future trends in operations and financial results.
Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknownMany factors determine Company results, and they involve unpredictable risks and uncertainties. Many such factors will be important in determining the actual future results of MLIC. TheseOur forward-looking statements are baseddepend on currentour assumptions, our expectations, and our understanding of the current economic environment. They involve a number of risksenvironment, but they may be inaccurate and uncertainties that are difficult to predict. These statements aremay change. We do not guarantees ofguarantee any future performance. ActualOur results could differ materially from those expressedwe express or impliedimply in the forward-looking statements. Risks, uncertainties, and other factors that might cause such differences include theThe risks, uncertainties and other factors, including those relating to the COVID-19 pandemic, identified in Metropolitan Life Insurance Company'sCompany’s filings with the U.S. Securities and Exchange Commission.Commission, and others, may cause such differences. These factors include:
(1) difficult conditions in the global capital markets; (2) increased volatilityeconomic condition difficulties, including risks relating to public health, interest rates, credit spreads, equity, real estate, obligors and disruption of thecounterparties, and derivatives;
(2) global capital and credit markets, which may affect our abilitymarket adversity;
(3) credit facility inaccessibility;
(4) financial strength or credit ratings downgrades;
(5) unavailability, unaffordability, or inadequate reinsurance;
(6) statutory life insurance reserve financing costs or limited market capacity;
(7) legal, regulatory, and supervisory and enforcement policy changes;
(8) changes in tax rates, tax laws or interpretations;
(9) litigation and regulatory investigations;
(10) London Interbank Offered Rate discontinuation and transition to alternative reference rates;
(11) unsuccessful efforts to meet liquidity needsall environmental, social, and access capital, including through credit facilities, generate market-related revenue and finance statutory reserve requirements; (3) exposuregovernance standards or to global financial and capital market risks; (4) regulatory, legislativeenhance our sustainability;
(12) investment defaults, downgrades, or tax changes relating to our insurancevolatility;
(13) investment sales or lending difficulties;
(14) collateral or derivative-related payments;
(15) investment valuations, allowances, or impairments changes;
(16) claims or other operationsresults that may affect the cost of, or demand for, our products or services; (5) adverse results or other consequences from litigation, arbitration or regulatory investigations; (6) impact on us of comprehensive financial services regulation reform, including potential regulation of MetLife, Inc. as a non-bank systemically important financial institution, or otherwise; (7) our ability to address difficulties, unforeseen liabilities, asset impairments, or rating agency actions arising from business acquisitions, dispositions of businesses, entry into joint ventures, or legal entity reorganizations; (8) potential liquidity and other risks resultingdiffer from our participationestimates, assumptions, or models;
(17) business competition;
(18) catastrophes;
(19) climate changes or responses to it;
(20) deficiencies in a securities lending program and other transactions; (9) investment losses, and changes to investment valuations; (10) changes in assumptions related toour closed block;
(21) acceleration of amortization of deferred policy acquisition costs, deferred sales inducements, value of business acquired, value of distribution agreements acquired or value of businesscustomer relationships acquired; (11) the defaults or deteriorating credit
2
Table of other financial institutions that could adversely affect us; (12) downgrades in our financial strength or credit ratings, or MetLife, Inc.’s credit ratings; (13) a deterioration in the experience of the closed block established in connection with the reorganization of Metropolitan Life Insurance Company; (14) availabilityContents
(22) product guarantee volatility, costs, and effectiveness of reinsurance, hedging or indemnification arrangements, as well as any default or failure of counterparties to perform; (15) differences between actual claims experience and underwriting and reserving assumptions; (16) ineffectiveness of MetLife’scounterparty risks;
(23) risk management policies and procedures; (17) exposure to losses related to variable annuity guarantee benefits, includingfailures;
(24) insufficient protection from significant and sustained downturns or extreme volatility in equity markets, reduced interest rates, unanticipated policyholder behavior, mortality or longevity, and any adjustment for nonperformance risk; (18) changes in accounting standards, practices and/or policies; (19) the effects of business disruption or economic contraction due to disasters such as terrorist attacks, cyberattacks, other hostilities, or natural catastrophes, including any related impact on MetLife’s disaster recovery systems, cyber- or other information security systems and management continuity planning; (20) anyoperational risks;
(25) failure to protect the confidentiality and integrity of client information;data or other cybersecurity or disaster recovery failures;
(26) accounting standards changes;
(27) excessive risk-taking; and (21) other risks
(28) marketing and uncertainties described from time to time in Metropolitan Life Insurance Company's filings with the U.S. Securities and Exchange Commission.distribution difficulties.
Metropolitan Life Insurance Company does not undertake any obligation to publicly correct or update any forward-looking statement if Metropolitan Life Insurance Company later becomes aware that such statement is not likely to be achieved. Please consult any further disclosures Metropolitan Life Insurance Company makes on related subjects in subsequent reports to the U.S. Securities and Exchange Commission.
Note Regarding Reliance on Statements in Our Contracts
See “Item 6. Exhibits“Exhibits — Note Regarding Reliance on Statements in Our Contracts” for information regarding agreements included as exhibits to this Quarterly Report on Form 10-Q.

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Part I — Financial Information
Item 1. Financial Statements
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Interim Condensed Consolidated Balance Sheets
September 30, 2017 (Unaudited)March 31, 2022 and December 31, 20162021 (Unaudited)
(In millions, except share and per share data)
 September 30, 2017 December 31, 2016March 31, 2022December 31, 2021
Assets    Assets
Investments:    Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $160,383 and $155,141, respectively) $172,284
 $163,120
Equity securities available-for-sale, at estimated fair value (cost: $1,712 and $1,785, respectively) 1,791
 1,839
Mortgage loans (net of valuation allowances of $272 and $267, respectively; includes $564 and $566, respectively, under the fair value option) 58,054
 56,560
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $159,844 and $158,354, respectively; allowance for credit loss of $155 and $53, respectively)Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $159,844 and $158,354, respectively; allowance for credit loss of $155 and $53, respectively)$164,538 $175,885 
Mortgage loans (net of allowance for credit loss of $510 and $536, respectively; includes $141 and $224, respectively, relating to variable interest entities and $119 and $127, respectively, under the fair value option)
Mortgage loans (net of allowance for credit loss of $510 and $536, respectively; includes $141 and $224, respectively, relating to variable interest entities and $119 and $127, respectively, under the fair value option)
59,664 60,219 
Policy loans 5,985
 5,945
Policy loans5,766 5,816 
Real estate and real estate joint ventures (includes $1,102 and $1,124, respectively, relating to variable interest entities; includes $61 and $56, respectively, of real estate held-for-sale) 6,657
 6,386
Other limited partnership interests (includes $0 and $14, respectively, relating to variable interest entities) 3,893
 3,725
Short-term investments, principally at estimated fair value 4,682
 4,690
Other invested assets (includes $140 and $39, respectively, relating to variable interest entities) 15,335
 17,255
Real estate and real estate joint ventures (includes $1,057 and $1,094, respectively, relating to variable interest entities, $284 and $240, respectively, under the fair value option and $175 and $175, respectively, of real estate held-for-sale)Real estate and real estate joint ventures (includes $1,057 and $1,094, respectively, relating to variable interest entities, $284 and $240, respectively, under the fair value option and $175 and $175, respectively, of real estate held-for-sale)7,954 7,873 
Other limited partnership interestsOther limited partnership interests8,350 8,754 
Short-term investments, at estimated fair valueShort-term investments, at estimated fair value1,875 4,866 
Other invested assets (includes $910 and $924, respectively, of leveraged and direct financing leases and $171 and $171, respectively, relating to variable interest entities and allowance for credit loss of $31 and $32, respectively)Other invested assets (includes $910 and $924, respectively, of leveraged and direct financing leases and $171 and $171, respectively, relating to variable interest entities and allowance for credit loss of $31 and $32, respectively)19,474 19,860 
Total investments 268,681
 259,520
Total investments267,621 283,273 
Cash and cash equivalents, principally at estimated fair value (includes $9 and $0, respectively, relating to variable interest entities) 4,323
 5,714
Cash and cash equivalents, principally at estimated fair valueCash and cash equivalents, principally at estimated fair value13,481 9,957 
Accrued investment income 2,228
 2,019
Accrued investment income1,835 1,767 
Premiums, reinsurance and other receivables (includes $3 and $6, respectively, relating to variable interest entities) 22,148
 22,383
Premiums, reinsurance and other receivablesPremiums, reinsurance and other receivables20,928 20,505 
Deferred policy acquisition costs and value of business acquired 4,492
 4,743
Deferred policy acquisition costs and value of business acquired3,082 2,598 
Other assets (includes $3 and $3, respectively, relating to variable interest entities) 4,514
 4,346
Current income tax recoverableCurrent income tax recoverable79 80 
Other assetsOther assets4,505 4,526 
Separate account assets 132,670
 133,836
Separate account assets107,927 123,851 
Total assets $439,056
 $432,561
Total assets$419,458 $446,557 
Liabilities and Equity    Liabilities and Equity
Liabilities    Liabilities
Future policy benefits $118,726
 $115,556
Future policy benefits$127,160 $132,274 
Policyholder account balances 94,175
 92,466
Policyholder account balances96,740 94,459 
Other policy-related balances 6,607
 6,731
Other policy-related balances8,422 8,094 
Policyholder dividends payable 551
 510
Policyholder dividends payable310 312 
Policyholder dividend obligation 2,201
 1,931
Policyholder dividend obligation— 1,682 
Payables for collateral under securities loaned and other transactions 21,839
 20,815
Payables for collateral under securities loaned and other transactions23,883 24,866 
Short-term debt 100
 100
Short-term debt100 100 
Long-term debt (includes $6 and $12, respectively, at estimated fair value, relating to variable interest entities) 1,679
 1,589
Current income tax payable 236
 50
Long-term debtLong-term debt1,661 1,659 
Deferred income tax liability 2,738
 2,503
Deferred income tax liability797 2,036 
Other liabilities 28,976
 29,497
Other liabilities24,208 23,796 
Separate account liabilities 132,670
 133,836
Separate account liabilities107,927 123,851 
Total liabilities 410,498
 405,584
Total liabilities391,208 413,129 
Contingencies, Commitments and Guarantees (Note 11) 
 
Contingencies, Commitments and Guarantees (Note 11)00
Equity    Equity
Metropolitan Life Insurance Company stockholder’s equity:    Metropolitan Life Insurance Company stockholder’s equity:
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 494,466,664 shares issued and outstanding 5
 5
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 494,466,664 shares issued and outstanding5 5 
Additional paid-in capital 14,149
 14,413
Additional paid-in capital12,465 12,464 
Retained earnings 9,184
 9,250
Retained earnings10,946 10,868 
Accumulated other comprehensive income (loss) 5,041
 3,119
Accumulated other comprehensive income (loss)4,680 9,917 
Total Metropolitan Life Insurance Company stockholder’s equity 28,379
 26,787
Total Metropolitan Life Insurance Company stockholder’s equity28,096 33,254 
Noncontrolling interests 179
 190
Noncontrolling interests154 174 
Total equity 28,558
 26,977
Total equity28,250 33,428 
Total liabilities and equity $439,056
 $432,561
Total liabilities and equity$419,458 $446,557 
See accompanying notes to the interim condensed consolidated financial statements.

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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
For the Three Months Ended March 31, 2022 and Nine Months Ended September 30, 2017 and 20162021 (Unaudited)
(In millions)
Three Months 
 Ended 
September 30,		 Nine Months
Ended
September 30,		Three Months
Ended
March 31,
2017 2016 2017 201620222021
Revenues       Revenues
Premiums$6,629
 $6,142
 $17,597
 $16,801
Premiums$5,910 $5,805 
Universal life and investment-type product policy fees556
 638
 1,706
 1,928
Universal life and investment-type product policy fees524 535 
Net investment income2,660
 2,870
 7,955
 8,349
Net investment income2,826 3,187 
Other revenues371
 389
 1,148
 1,121
Other revenues412 425 
Net investment gains (losses):       
Other-than-temporary impairments on fixed maturity securities(6) (4) (7) (66)
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss)1
 (5) 1
 (9)
Other net investment gains (losses)101
 51
 190
 190
Total net investment gains (losses)96
 42
 184
 115
Net investment gains (losses)Net investment gains (losses)(226)160 
Net derivative gains (losses)(26) (205) (317) (562)Net derivative gains (losses)181 (1,015)
Total revenues10,286
 9,876
 28,273
 27,752
Total revenues9,627 9,097 
Expenses       Expenses
Policyholder benefits and claims7,317
 6,897
 19,561
 19,019
Policyholder benefits and claims6,561 6,579 
Interest credited to policyholder account balances567
 560
 1,660
 1,675
Interest credited to policyholder account balances491 511 
Policyholder dividends267
 302
 827
 924
Policyholder dividends159 205 
Other expenses1,205
 1,364
 3,808
 4,450
Other expenses1,299 1,186 
Total expenses9,356
 9,123
 25,856
 26,068
Total expenses8,510 8,481 
Income (loss) before provision for income tax930
 753
 2,417
 1,684
Income (loss) before provision for income tax1,117 616 
Provision for income tax expense (benefit)187
 123
 475
 232
Provision for income tax expense (benefit)158 49 
Net income (loss)743
 630
 1,942
 1,452
Net income (loss)959 567 
Less: Net income (loss) attributable to noncontrolling interests5
 (7) 8
 (9)Less: Net income (loss) attributable to noncontrolling interests— 3 
Net income (loss) attributable to Metropolitan Life Insurance Company$738
 $637
 $1,934
 $1,461
Net income (loss) attributable to Metropolitan Life Insurance Company$959 $564 
Comprehensive income (loss)$914
 $637
 $3,864
 $5,619
Comprehensive income (loss)$(4,278)$(2,416)
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax5
 (7) 8
 (9)Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax— 3 
Comprehensive income (loss) attributable to Metropolitan Life Insurance Company$909
 $644
 $3,856
 $5,628
Comprehensive income (loss) attributable to Metropolitan Life Insurance Company$(4,278)$(2,419)
See accompanying notes to the interim condensed consolidated financial statements.



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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Interim Condensed Consolidated Statements of Equity
For the NineThree Months Ended September 30, 2017March 31, 2022 and 20162021 (Unaudited)
(In millions)
Common
Stock		Additional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Total
Metropolitan Life
Insurance Company
Stockholder’s Equity		Noncontrolling
Interests		Total
Equity
Balance at December 31, 2021$5 $12,464 $10,868 $9,917 $33,254 $174 $33,428 
Capital contributions from MetLife, Inc.1 1 1 
Dividends to MetLife, Inc.(881)(881)(881)
Change in equity of noncontrolling interests— (20)(20)
Net income (loss)959 959 959 
Other comprehensive income (loss), net of income tax(5,237)(5,237)(5,237)
Balance at March 31, 2022$5 $12,465 $10,946 $4,680 $28,096 $154 $28,250 
  
Common
Stock
 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total
Metropolitan Life
Insurance Company
Stockholder’s Equity
 
Noncontrolling
Interests
 
Total
Equity
Balance at December 31, 2016 $5
 $14,413
 $9,250
 $3,119
 $26,787
 $190
 $26,977
Capital contributions from MetLife, Inc. 
 5
 
 
 5
 
 5
Returns of capital 
 (20) 

 
 (20) 
 (20)
Dividends paid to MetLife, Inc. 
 

 (2,000) 
 (2,000) 

 (2,000)
Purchase of operating joint venture interest from an affiliate (Note 5) 
 (249) 

 
 (249) 
 (249)
Change in equity of noncontrolling interests 
 

 
 
 

 (19) (19)
Net income (loss) 
 
 1,934
 
 1,934
 8
 1,942
Other comprehensive income (loss), net of income tax 
 
 
 1,922
 1,922
 

 1,922
Balance at September 30, 2017 $5
 $14,149
 $9,184
 $5,041
 $28,379
 $179
 $28,558
  
Common
Stock
 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total
Metropolitan Life
Insurance Company
Stockholder’s Equity
 
Noncontrolling
Interests
 
Total
Equity
Balance at December 31, 2015 $5
 $14,444
 $13,738
 $2,685
 $30,872
 $372
 $31,244
Capital contributions from MetLife, Inc. 
 4
 
 
 4
 
 4
Returns of capital 
 (62) 

 
 (62) 
 (62)
Tax deficiencies related to stock-based compensation 
 (11) 

 
 (11) 
 (11)
Dividends paid to MetLife, Inc. 
 
 (3,600) 
 (3,600) 
 (3,600)
Change in equity of noncontrolling interests 
 

 
 
 

 (203) (203)
Net income (loss) 
 
 1,461
 
 1,461
 (9) 1,452
Other comprehensive income (loss), net of income tax 
 
 
 4,167
 4,167
 

 4,167
Balance at September 30, 2016 $5
 $14,375
 $11,599
 $6,852
 $32,831
 $160
 $32,991
Common
Stock		Additional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Total
Metropolitan Life
Insurance Company
Stockholder’s Equity		Noncontrolling
Interests		Total
Equity
Balance at December 31, 2020$5 $12,460 $10,548 $11,662 $34,675 $183 $34,858 
Capital contributions from MetLife, Inc.1 1 1 
Dividends to MetLife, Inc.(1,030)(1,030)(1,030)
Net income (loss)564 564 3 567 
Other comprehensive income (loss), net of income tax(2,983)(2,983)(2,983)
Balance at March 31, 2021$5 $12,461 $10,082 $8,679 $31,227 $186 $31,413 
See accompanying notes to the interim condensed consolidated financial statements.



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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Interim Condensed Consolidated Statements of Cash Flows
For the NineThree Months Ended September 30, 2017March 31, 2022 and 20162021 (Unaudited)
(In millions)

 Three Months
Ended
March 31,
 20222021
Net cash provided by (used in) operating activities$853 $187 
Cash flows from investing activities
Sales, maturities and repayments of:
Fixed maturity securities available-for-sale11,324 13,551 
Equity securities57 123 
Mortgage loans3,038 3,384 
Real estate and real estate joint ventures73 102 
Other limited partnership interests594 129 
Purchases and originations of:
Fixed maturity securities available-for-sale(12,780)(11,806)
Equity securities(2)(6)
Mortgage loans(2,571)(1,969)
Real estate and real estate joint ventures(112)(198)
Other limited partnership interests(232)(555)
Cash received in connection with freestanding derivatives784 916 
Cash paid in connection with freestanding derivatives(1,181)(3,846)
Purchases of loans to affiliates(18)— 
Net change in policy loans50 44 
Net change in short-term investments2,955 (1,004)
Net change in other invested assets(13)85 
Net change in property, equipment and leasehold improvements2 5 
Other, net3 5 
Net cash provided by (used in) investing activities1,971 (1,040)
Cash flows from financing activities
Policyholder account balances:
Deposits22,794 21,329 
Withdrawals(20,356)(20,554)
Net change in payables for collateral under securities loaned and other transactions(983)(947)
Long-term debt repaid(3)(9)
Financing element on certain derivative instruments and other derivative related transactions, net144 306 
Dividends paid to MetLife, Inc.(881)(1,030)
Other, net(13)(7)
Net cash provided by (used in) financing activities702 (912)
Effect of change in foreign currency exchange rates on cash and cash equivalents balances(2)— 
Change in cash and cash equivalents3,524 (1,765)
Cash and cash equivalents, beginning of period9,957 11,337 
Cash and cash equivalents, end of period$13,481 $9,572 
Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest$9 $9 
Income tax$12 $204 
Non-cash transactions:
Capital contributions from MetLife, Inc.$1 $1 
Real estate and real estate joint ventures acquired in satisfaction of debt$2 $170 
Increase in equity securities due to in-kind distributions received from other limited partnership interests$42 $49 
Transfer of fixed maturity securities available-for-sale to an affiliate$189 $— 
Transfer of fair value option securities from an affiliate$186 $— 

 Nine Months
Ended
September 30,
 2017 2016
Net cash provided by (used in) operating activities$5,010
 $3,625
Cash flows from investing activities   
Sales, maturities and repayments of:   
Fixed maturity securities37,260
 53,466
Equity securities470
 798
Mortgage loans5,696
 9,008
Real estate and real estate joint ventures673
 353
Other limited partnership interests412
 618
Purchases of:   
Fixed maturity securities(40,819) (53,863)
Equity securities(387) (703)
Mortgage loans(7,020) (11,010)
Real estate and real estate joint ventures(671) (1,125)
Other limited partnership interests(536) (589)
Cash received in connection with freestanding derivatives1,439
 1,165
Cash paid in connection with freestanding derivatives(2,259) (1,589)
Net change in policy loans(40) 86
Net change in short-term investments78
 (128)
Net change in other invested assets(168) (316)
Net change in property, equipment and leasehold improvements(148) (154)
Net cash provided by (used in) investing activities(6,020) (3,983)
Cash flows from financing activities   
Policyholder account balances:   
Deposits53,149
 46,119
Withdrawals(52,610) (44,175)
Net change in payables for collateral under securities loaned and other transactions1,443
 1,698
Long-term debt issued169
 11
Long-term debt repaid(81) (55)
Financing element on certain derivative instruments and other derivative related transactions, net(210) (72)
Dividends paid to MetLife, Inc.(2,000) (3,600)
Returns of capital(5) (62)
Return of capital associated with the purchase of operating joint venture interest from an affiliate (Note 5)(249) —
Other, net(10) 19
Net cash provided by (used in) financing activities(404) (117)
Effect of change in foreign currency exchange rates on cash and cash equivalents balances23
 —
Change in cash and cash equivalents(1,391) (475)
Cash and cash equivalents, beginning of period5,714
 4,651
Cash and cash equivalents, end of period$4,323
 $4,176
Supplemental disclosures of cash flow information   
Net cash paid (received) for:   
Interest$64
 $71
Income tax$1,137
 $596
Non-cash transactions:   
Capital contributions from MetLife, Inc.$5
 $4
Returns of capital$15
 $—
Fixed maturity securities received in connection with pension risk transfer transactions$—
 $985
Transfer of fixed maturity securities from affiliate$292
 $—
Transfer of fixed maturity securities to affiliates$—
 $3,435
Transfer of mortgage loans to affiliates$—
 $375
Deconsolidation of real estate joint venture:   
Reduction of real estate and real estate joint ventures$—
 $339
Reduction of noncontrolling interests$—
 $339
See accompanying notes to the interim condensed consolidated financial statements.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies
Business
Metropolitan Life Insurance Company and its subsidiaries (collectively, “MLIC” or the “Company”) is a provider of insurance, annuities, employee benefits and asset management.management and is organized into 2 segments: U.S. and MetLife Holdings. Metropolitan Life Insurance Company is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”).
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 interim condensed 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.uncertain, including uncertainties associated with the COVID-19 pandemic. 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.
Consolidation
The accompanying interim condensed consolidated financial statements include the accounts of Metropolitan Life Insurance Company and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, 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 for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) 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 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 uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations.
Reclassifications
Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform to the 2017 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements.
Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity.
The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 20162021 consolidated balance sheet data was derived from audited consolidated financial statements included in Metropolitan Life Insurance Company’s Annual Report on Form 10-K for the year ended December 31, 20162021 (the “2016“2021 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 20162021 Annual Report.
AdoptionConsolidation
The accompanying interim condensed consolidated financial statements include the accounts of NewMLIC, 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 or the fair value option (“FVO”) 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.
Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity.
Recent Accounting Pronouncements
Effective January 1, 2017,Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB Accounting Standards Codification. The Company early adopted guidance relating to business combinations.considers the applicability and impact of all ASUs. The new guidance clarifiesfollowing tables provide a description of ASUs recently issued by the definitionFASB and the impact of a business and requires that an entity apply certain criteria in order to determine when a set of assets and activities qualifies as a business. Thetheir adoption of this standard will result in fewer acquisitions qualifying as businesses and, accordingly, acquisition costs for those acquisitions that do not qualify as businesses will be capitalized rather than expensed. The adoption did not have a material impact on the Company’s interim condensed consolidated financial statements.
Effective January 1, 2017, the Company retrospectively adopted guidance relating to consolidation. The new guidance does not change the characteristics of a primary beneficiary under current GAAP. It changes how a reporting entity evaluates whether it is the primary beneficiary of a VIE by changing how a reporting entity that is a single decisionmaker of a VIE handles indirect interests in the entity held through related parties that are under common control with the reporting entity. The adoption of this new guidance did not have a material impact on the Company’s consolidated financial statements.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Adopted Accounting Pronouncements
Other
Effective January 3, 2017,The table below describes the Chicago Mercantile Exchange (“CME”) amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. These amendments impacted the accounting treatmentimpacts of the Company’s centrally cleared derivatives for which the CME serves as the central clearing party. As of the effective date, the application of the amended rulebook reduced gross derivative assets by $751 million, gross derivative liabilities by $603 million, accrued investment income by $55 million, accrued investment expense recorded within other liabilities by $10 million, collateral receivables recorded within premiums, reinsurance and other receivables of $226 million, and collateral payables recorded within payables for collateral under securities loaned and other transactions of $419 million.
Future Adoption of New Accounting Pronouncements
In August 2017, the Financial Accounting Standards Board (“FASB”) issued new guidance on hedging activities (Accounting Standards Update (“ASU”) 2017-12,Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities). The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings. Early adoption is permitted. The new guidance simplifies the application of hedge accounting in certain situations and amends the hedge accounting model to enable entities to better portray the economics of their risk management activities in the financial statements. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
In March 2017, the FASB issued new guidance on purchased callable debt securities (ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.) The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings. Early adoption is permitted. The ASU shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. However, the new guidance does not require an accounting change for securities held at a discount whose discount continues to be amortized to maturity. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
In March 2017, the FASB issued new guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost (ASU 2017-07,Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost). The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. The guidance requires that an employer that offers to its employees defined benefit pension or other postretirement benefit plans report the service cost component in the same line item or items as other compensation costs arising from services renderedASUs recently adopted by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. The guidance should be applied retrospectively for the presentation of the service cost component in the income statement and allows a practical expedient for the estimation basis for applying the retrospective presentation requirements. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.Company.
In February 2017, the FASB issued new guidance on derecognition of nonfinancial assets (ASU 2017-05,Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets). The new guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption was permitted for interim or annual reporting periods beginning after December 15, 2016. The guidance may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The new guidance clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term, “in-substance nonfinancial asset.” The ASU also adds guidance for partial sales of nonfinancial assets. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

StandardDescriptionEffective Date and Method of AdoptionImpact on Financial Statements
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
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.

Effective for contract modifications made between March 12, 2020 and December 31, 2022.
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 for invested assets and derivative instruments occurred during 2021 and have continued into 2022. Based on actions taken to date, the adoption of the guidance has not had a material impact on the Company’s interim condensed consolidated financial statements. The Company does not expect the adoption of this guidance to have a material ongoing impact and will continue to evaluate the impacts of reference rate reform on contract modifications and hedging relationships through December 31, 2022.
ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance

The guidance requires entities to provide annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy and can include tax credits and other forms of government assistance. Entities are required to disclose information about (i) the nature of the transactions and the related accounting policy used to account for the transactions; (ii) the line items on the balance sheet and income statement that are affected by the transactions, including the associated amounts; and (iii) the significant terms and conditions of the transactions, including commitments and contingencies.
Effective for annual periods beginning January 1, 2022, to be applied prospectively.
The Company is in the process of evaluating and preparing the required annual disclosures, as applicable, to be included in its 2022 consolidated financial statements.
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Future Adoption of Accounting Pronouncements
In January 2017,ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the FASB issued new guidance on goodwill impairment (ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment). The new guidance is effective for fiscal years beginning after December 15, 2019 andCompany’s interim periods within those fiscal years, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The new guidance simplifies the current two-step goodwill impairment test by eliminating Step 2 of the test. The new guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. The Company is currently evaluating the impact of this guidance on itscondensed consolidated financial statements.
In November 2016,statements or disclosures. ASUs issued but not yet adopted as of March 31, 2022 that are currently being assessed and may or may not have a material impact on the FASB issued new guidance on restricted cash (ASU 2016-18,Statement of Cash Flows (Topic 230): a consensus of the FASB Emerging Issues Task Force). The new guidance is effective for fiscal years beginning after December 15, 2017 andCompany’s interim periods within those fiscal years, and should be applied on a retrospective basis. Early adoption is permitted. The new guidance requires that a statement of cash flows explain the change during the periodcondensed consolidated financial statements or disclosures are summarized in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, the new guidance requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance does not provide a definition of restricted cash or restricted cash equivalents. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.table below.
In October 2016, the FASB issued new guidance on tax accounting for intra-entity transfers of assets (ASU 2016-16,Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory). The new guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and should be applied on a modified retrospective basis. Early adoption is permitted in the first interim or annual reporting period. Current guidance prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Also, the guidance eliminates the exception for an intra-entity transfer of an asset other than inventory. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
In August 2016, the FASB issued new guidance on cash flow statement presentation (ASU 2016-15,Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments). The new guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and should be applied retrospectively to all periods presented. Early adoption is permitted in any interim or annual period. This ASU addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
In June 2016, the FASB issued new guidance on measurement of credit losses on financial instruments (ASU 2016-13,Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments). The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This ASU replaces the incurred loss impairment methodology with one that reflects expected credit losses. The measurement of expected credit losses should be based on historical loss information, current conditions, and reasonable and supportable forecasts. The new guidance requires that an other than temporary impairment (“OTTI”) on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through realized investment gains and losses. The guidance also requires enhanced disclosures. The Company has assessed the asset classes impacted by the new guidance and is currently assessing the accounting and reporting system changes that will be required to comply with the new guidance. The Company believes that the most significant impact upon adoption will be to its mortgage loan investments. The Company is continuing to evaluate the overall impact of the new guidance on its consolidated financial statements.

StandardDescriptionEffective Date and Method of AdoptionImpact on Financial Statements
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, as amended by ASU 2020-11, Financial Services—Insurance (Topic 944): Effective Date and Early Application
The guidance (i) prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts, and requires assumptions for those liability valuations to be updated after contract inception, (ii) requires more market-based product guarantees on certain separate account and other account balance long-duration contracts to be accounted for at fair value, (iii) simplifies the amortization of deferred policy acquisition costs (“DAC”) for virtually all long-duration contracts, and (iv) introduces certain financial statement presentation requirements, as well as significant additional quantitative and qualitative disclosures. The amendments in ASU 2019-09 defer the effective date of ASU 2018-12 to January 1, 2022 for all entities, and the amendments in ASU 2020-11 further defer the effective date of ASU 2018-12 for an additional year to January 1, 2023 for all entities.January 1, 2023, to be applied retrospectively to January 1, 2021 (with early adoption permitted).
The Company’s implementation efforts and the evaluation of the impacts of the guidance continue to progress. Given the nature and extent of the required changes to a significant portion of the Company’s operations, the adoption of this guidance is expected to have a material impact on its financial position, results of operations, and disclosures, as well as systems, processes, and controls.

The Company expects to adopt the guidance effective January 1, 2023. The modified retrospective approach will be used, except in regard to market risk benefits where the Company will use the full retrospective approach.

The Company has created a governance framework and is managing a detailed implementation plan to support timely application of the guidance. The Company has made progress and continues to refine key accounting policy decisions, technology solutions and internal controls. These activities include, but are not limited to, modifications of actuarial valuation, accounting and financial reporting processes and systems including internal controls.

The most significant transition impacts are expected to be from: (i) the requirement to account for variable annuity guarantees as market risk benefits measured at fair value, (except for the changes in fair value already recognized under an existing accounting model) and (ii) adjustments to Accumulated other comprehensive income (loss) (“AOCI”) for the change in the current discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment contracts and the removal of shadow account balances associated with long-duration products.

Based on factors such as: (i) the measurement of market risk benefits at fair value; and (ii) the difference between the discount rate currently used for measuring the liability for future policy benefits for traditional and limited payment contracts compared to the observed upper medium grade investment yield at the date of transition for this guidance, the Company’s expected impact of adopting this guidance is anticipated to result in a reduction of total equity. The Company continues to evaluate the impact of the guidance on its interim condensed consolidated financial statements.
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

StandardDescriptionEffective Date and Method of AdoptionImpact 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 (“TDRs”) 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, to be applied prospectively; however, for the transition method related to the recognition and measurement of TDRs, an entity can apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Entities are permitted to early adopt these amendments, including adoption in any interim period, provided that the amendments are adopted as of the beginning of the annual reporting period that includes the interim period of adoption. In addition, entities are permitted to elect to early adopt the amendments related to TDRs accounting and related disclosure enhancements separately from the amendments related to certain vintage disclosures.The Company is currently evaluating the impact of the guidance on its interim condensed consolidated financial statements and the alternative methods of adoption.
ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
The guidance indicates how to determine whether a contract liability is recognized by the acquirer in a business combination and provides specific guidance on how to recognize and measure acquired contract assets and contract liabilities from revenue contracts in a business combination.January 1, 2023, to be applied prospectively (with early adoption permitted).The Company is currently evaluating the impact of the guidance on its interim condensed consolidated financial statements.
In February 2016, the FASB issued new guidance on leasing transactions (ASU 2016-02,Leases - Topic 842). The new guidance is effective for the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and requires a modified retrospective transition approach. Early adoption is permitted. The new guidance requires a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Leases would be classified as finance or operating leases and both types of leases will be recognized on the balance sheet. Lessor accounting will remain largely unchanged from current guidance except for certain targeted changes. The new guidance will also require new qualitative and quantitative disclosures. The Company’s implementation efforts are primarily focused on the review of its existing lease contracts, as well as identification of other contracts that may fall under the scope of the new guidance. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
In January 2016, the FASB issued new guidance (ASU 2016-01,Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities) on the recognition and measurement of financial instruments. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted for the instrument-specific credit risk provision. The new guidance changes the current accounting guidance related to (i) the classification and measurement of certain equity investments, (ii) the presentation of changes in the fair value of financial liabilities measured under the fair value option (“FVO”) that are due to instrument-specific credit risk, and (iii) certain disclosures associated with the fair value of financial instruments. Additionally, there will no longer be a requirement to assess equity securities for impairment since such securities will be measured at fair value through net income. The Company has assessed the population of financial instruments that are subject to the new guidance and has determined that the most significant impact will be the requirement to report changes in fair value in net income each reporting period for all equity securities currently classified as available-for-sale (“AFS”) and to a lesser extent, other limited partnership interests and real estate joint ventures that are currently accounted for under the cost method. The estimated impact, using values as of September 30, 2017, related to the change in accounting for equity securities AFS, was $50 million of net unrealized investment gains, net of income tax, which would be reclassified from accumulated other comprehensive income (“AOCI”) to retained earnings. The estimated financial statement impact related to cost method other limited partnership interests and real estate joint ventures was not material.
In May 2014, the FASB issued a comprehensive new revenue recognition standard (ASU 2014-09,Revenue from Contracts with Customers (Topic 606)), effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company will apply this guidance retrospectively with a cumulative-effect adjustment as of January 1, 2018. The new guidance will supersede nearly all existing revenue recognition guidance under U.S. GAAP. However, it will not impact the accounting for insurance and investment contracts within the scope of Accounting Standards Codification Topic 944,Financial Services - Insurance, leases, financial instruments and certain guarantees. For those contracts that are impacted, the new guidance will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. Given the scope of the new revenue recognition guidance, the Company does not expect the adoption to have a material impact on its consolidated revenues or statements of operations, with the Company’s implementation efforts primarily focused on other revenues on the consolidated statements of operations. Other revenues on the consolidated statements of operations represents less than 5% of consolidated total revenues for the nine months ended September 30, 2017. Based on implementation efforts completed to date, the Company has identified revenue streams within the scope of the guidance and is evaluating the related contracts, primarily consisting of prepaid legal plans and administrative-only contracts in the U.S. segment, advisory fees in the MetLife Holdings segment, and fee-based investment management services in Corporate & Other. While the Company has not yet identified any material changes in the recognition and measurement of other revenue, the Company’s assessment is ongoing, including the consideration of the new disclosure requirements.
2. Segment Information
The Company is organized into two segments: U.S. and MetLife Holdings. In addition, the Company reports certain of its results of operations in Corporate & Other.


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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
2. Segment Information (continued)

On August 4, 2017,The Company is organized into 2 segments: U.S. and MetLife Inc. completedHoldings. In addition, the separationCompany reports certain of Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”) through a distributionresults of 96,776,670 shares of the 119,773,106 shares of Brighthouse Financial, Inc. common stock outstanding, representing 80.8% of those shares, to MetLife, Inc. common shareholders (the “Separation”). MetLife, Inc. retained the remaining ownership interest of 22,996,436 shares, or 19.2%, of Brighthouse Financial, Inc. common stock outstanding.operations in Corporate & Other.
U.S.
The U.S. segment offers a broad range of protection products and services aimed at serving the financial needs of customers throughout their lives. These products are sold to corporations and their respective employees, other institutions and their respective members, as well as individuals. The U.S. segment is organized into two businesses: Group Benefits and Retirement and Income Solutions.Solutions (“RIS”).
•The Group Benefits business offers insurance products such as term, variable and services which includeuniversal life insurance, dental, group short- and long-term disability, individual disability accidental death and dismemberment, critical illness, vision and accident & health coverages, as well as prepaid legal plans. This business also sells administrative services-only arrangements to some employers.insurance.
•The Retirement and Income SolutionsRIS business offers a broad range of annuitylife and annuity-based insurance and investment products, including guaranteed interest contractsstable value and other stable valuepension risk transfer products, institutional income annuities, and separate account contracts for the investment management of defined benefit and defined contribution plan assets. This business also includes structured settlements, benefit funding solutions and certain products to fund postretirement benefits and company-, bank- or trust-owned life insurance used to finance nonqualified benefit programs for executives.capital markets investment products.
MetLife Holdings
The MetLife Holdings segment consists of operations relating to products and businesses that the Company no longer actively marketed by the Company in the United States.markets. These products and businesses include variable, universal, term and whole life as well asinsurance, variable, fixed and index-linked annuities. The MetLife Holdings segment also includes the Company’s discontinuedannuities, and long-term care business.insurance.
Corporate & Other
Corporate & Other contains various start-up, developing and run-off businesses, including the Company’s ancillary non-U.S. operations. Also included in Corporate & Other are: the excess capital, as well as certain charges and activities, not allocated to the segments including(including enterprise-wide strategic initiative restructuring charges and various start-up businesses (including the investment management business through which the Company offers fee-based investment management services to institutional clients, as well as the direct to consumer portion of the U.S. Direct business). Corporate & Other also includes the Company’s ancillary international operations, the business of the Company that MetLife, Inc. separated and included in Brighthouse Financial in the prior periods andcharges), interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. In addition, Corporate & Other includesissues, and the elimination of intersegment amounts which(which generally relate to affiliated reinsurance and intersegment loans, which bearbearing interest rates commensurate with related borrowings.borrowings).
Financial Measures and Segment Accounting Policies
OperatingAdjusted earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, operatingadjusted earnings is also the Company’s GAAP measure of segment performance and is reported below. OperatingAdjusted earnings should not be viewed as a substitute for net income (loss). The Company believes the presentation of operatingadjusted 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. Operating earnings allows analysis of the Company’s performance and facilitates comparisons to industry results.
OperatingAdjusted earnings is defined as operatingadjusted revenues less operatingadjusted expenses, both net of income tax.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
2. Segment Information (continued)

The financial measures of operatingadjusted revenues and operatingadjusted expenses focus on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MLIC but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also includesinclude 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 MLIC that do not meet the criteria to be included in results of discontinued operations under GAAP. OperatingAdjusted revenues also excludes net investment gains (losses) and net derivative gains (losses).
12
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
2. Segment Information (continued)
The following additional adjustments are made to revenues, in the line items indicated, in calculating operatingadjusted revenues:
•Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuityguaranteed minimum income benefits (“GMIBs”) fees (“GMIB Fees”fees”); and
•Net investment income: (i) includes adjustments for 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, (ii) excludes post-tax operatingadjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method, and (iii) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP and (iv) includes distributions of profits from certain other limited partnership interests that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in estimated fair value is recognized in net investment gains (losses) under GAAP.
The following additional adjustments are made to expenses, in the line items indicated, in calculating operatingadjusted expenses:
•Policyholder benefits and claims and policyholder dividends excludes: (i) amortization of basis adjustments associated with de-designated fair value hedges of future policy benefits, (ii) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii)(iii) amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets (iii)and other pass-through adjustments, (iv) benefits and hedging costs related to GMIBs (“GMIB Costs”costs”) and (iv)(v) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”value adjustments”);
•Interest credited to policyholder account balances includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment;
•Amortization ofdeferred policy acquisition costs (“DAC”) DAC and value of business acquired (“VOBA”) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Feesfees and GMIB Costscosts and (iii) Market Value Adjustments;
value adjustments;
•Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and
•Other expenses excludes costs related toexcludes: (i) noncontrolling interests, (ii) acquisition, integration and other costs, and (iii) goodwill impairments.
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 thethree months endedMarch 31, 2022 and nine months endedSeptember 30, 2017and2016.2021. The segment accounting policies are the same as those used to prepare the Company’s interim condensed consolidated financial statements, except for operatingadjusted 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 MetLife’s and the Company’s business.

12
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
2. Segment Information (continued)

businesses.
MetLife’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. MetLife’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.
13
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
2. Segment Information (continued)
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 operatingadjusted earnings.
Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. 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.
Three Months Ended March 31, 2022U.S.MetLife
Holdings
Corporate
& Other
TotalAdjustments
Total
Consolidated
(In millions)
Revenues
Premiums$5,288 $622 $— $5,910 $— $5,910 
Universal life and investment-type product policy fees286 219 — 505 19 524 
Net investment income1,629 1,280 48 2,957 (131)2,826 
Other revenues243 43 126 412 — 412 
Net investment gains (losses)— — — — (226)(226)
Net derivative gains (losses)— — — — 181 181 
Total revenues7,446 2,164 174 9,784 (157)9,627 
Expenses
Policyholder benefits and claims and policyholder dividends5,560 1,255 — 6,815 (95)6,720 
Interest credited to policyholder account balances329 161 1 491 — 491 
Capitalization of DAC(23)— (4)(27)— (27)
Amortization of DAC and VOBA14 60 — 74 (3)71 
Interest expense on debt2 1 21 24 — 24 
Other expenses861 201 169 1,231 — 1,231 
Total expenses6,743 1,678 187 8,608 (98)8,510 
Provision for income tax expense (benefit)146 98 (75)169 (11)158 
Adjusted earnings$557 $388 $62 1,007 
Adjustments to:
Total revenues(157)
Total expenses98 
Provision for income tax (expense) benefit11 
Net income (loss)$959 $959 
14
  Operating Results    
Three Months Ended September 30, 2017 U.S. 
MetLife
Holdings
 
Corporate
& Other
 Total Adjustments 
Total
Consolidated
  (In millions)
Revenues            
Premiums $5,820
 $806
 $3
 $6,629
 $—
 $6,629
Universal life and investment-type product policy fees 245
 286
 —
 531
 25
 556
Net investment income 1,554
 1,228
 (39) 2,743
 (83) 2,660
Other revenues 191
 36
 144
 371
 —
 371
Net investment gains (losses) —
 —
 —
 —
 96
 96
Net derivative gains (losses) —
 —
 —
 —
 (26) (26)
Total revenues 7,810
 2,356
 108
 10,274
 12
 10,286
Expenses            
Policyholder benefits and claims and policyholder dividends 6,006
 1,448
 —
 7,454
 130
 7,584
Interest credited to policyholder account balances 373
 195
 —
 568
 (1) 567
Capitalization of DAC (15) (2) —
 (17) —
 (17)
Amortization of DAC and VOBA 15
 (79) —
 (64) 21
 (43)
Interest expense on debt 3
 2
 21
 26
 —
 26
Other expenses 681
 291
 272
 1,244
 (5) 1,239
Total expenses 7,063
 1,855
 293
 9,211
 145
 9,356
Provision for income tax expense (benefit) 262
 161
 (190) 233
 (46) 187
Operating earnings $485
 $340
 $5
 830
    
Adjustments to:            
Total revenues       12
    
Total expenses       (145)    
Provision for income tax (expense) benefit       46
    
Net income (loss) $743
   $743

13
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
2. Segment Information (continued)

Three Months Ended March 31, 2021U.S.MetLife
Holdings
Corporate
& Other
TotalAdjustments
Total
Consolidated
(In millions)
Revenues
Premiums$5,137 $668 $— $5,805 $— $5,805 
Universal life and investment-type product policy fees287 228 — 515 20 535 
Net investment income1,847 1,491 (1)3,337 (150)3,187 
Other revenues224 58 143 425 — 425 
Net investment gains (losses)— — — — 160 160 
Net derivative gains (losses)— — — — (1,015)(1,015)
Total revenues7,495 2,445 142 10,082 (985)9,097 
Expenses
Policyholder benefits and claims and policyholder dividends5,451 1,264 — 6,715 69 6,784 
Interest credited to policyholder account balances345 167 — 512 (1)511 
Capitalization of DAC(19)— — (19)— (19)
Amortization of DAC and VOBA16 31 — 47 (7)40 
Interest expense on debt2 1 21 24 — 24 
Other expenses796 221 127 1,144 (3)1,141 
Total expenses6,591 1,684 148 8,423 58 8,481 
Provision for income tax expense (benefit)188 155 (75)268 (219)49 
Adjusted earnings$716 $606 $69 1,391 
Adjustments to:
Total revenues(985)
Total expenses(58)
Provision for income tax (expense) benefit219 
Net income (loss)$567 $567 
  Operating Results    
Three Months Ended September 30, 2016 U.S. 
MetLife
Holdings
 
Corporate
& Other
 Total Adjustments 
Total
Consolidated
  (In millions)
Revenues            
Premiums $5,036
 $1,091
 $15
 $6,142
 $—
 $6,142
Universal life and investment-type product policy fees 244
 310
 58
 612
 26
 638
Net investment income 1,554
 1,463
 (7) 3,010
 (140) 2,870
Other revenues 188
 46
 155
 389
 —
 389
Net investment gains (losses) —
 —
 —
 —
 42
 42
Net derivative gains (losses) —
 —
 —
 —
 (205) (205)
Total revenues 7,022
 2,910
 221
 10,153
 (277) 9,876
Expenses            
Policyholder benefits and claims and policyholder dividends 5,281
 1,814
 29
 7,124
 75
 7,199
Interest credited to policyholder account balances 322
 230
 9
 561
 (1) 560
Capitalization of DAC (17) (44) 2
 (59) —
 (59)
Amortization of DAC and VOBA 14
 217
 10
 241
 (29) 212
Interest expense on debt 2
 2
 24
 28
 —
 28
Other expenses 668
 341
 163
 1,172
 11
 1,183
Total expenses 6,270
 2,560
 237
 9,067
 56
 9,123
Provision for income tax expense (benefit) 269
 109
 (139) 239
 (116) 123
Operating earnings $483
 $241
 $123
 847
    
Adjustments to:            
Total revenues       (277)    
Total expenses       (56)    
Provision for income tax (expense) benefit       116
    
Net income (loss) $630
   $630




14
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
2. Segment Information (continued)

  Operating Results    
Nine Months Ended September 30, 2017 U.S. MetLife
Holdings		 Corporate
& Other		 Total Adjustments Total
Consolidated
  (In millions)
Revenues            
Premiums $15,055
 $2,530
 $12
 $17,597
 $—
 $17,597
Universal life and investment-type product policy fees 757
 876
 —
 1,633
 73
 1,706
Net investment income 4,646
 3,711
 (103) 8,254
 (299) 7,955
Other revenues 581
 126
 441
 1,148
 —
 1,148
Net investment gains (losses) —
 —
 —
 —
 184
 184
Net derivative gains (losses) —
 —
 —
 —
 (317) (317)
Total revenues 21,039
 7,243
 350
 28,632
 (359) 28,273
Expenses            
Policyholder benefits and claims and policyholder dividends 15,743
 4,395
 3
 20,141
 247
 20,388
Interest credited to policyholder account balances 1,076
 587
 —
 1,663
 (3) 1,660
Capitalization of DAC (42) (15) —
 (57) —
 (57)
Amortization of DAC and VOBA 44
 165
 —
 209
 (85) 124
Interest expense on debt 8
 6
 65
 79
 —
 79
Other expenses 2,044
 895
 735
 3,674
 (12) 3,662
Total expenses 18,873
 6,033
 803
 25,709
 147
 25,856
Provision for income tax expense (benefit) 756
 381
 (485) 652
 (177) 475
Operating earnings $1,410
 $829
 $32
 2,271
    
Adjustments to:            
Total revenues       (359)    
Total expenses       (147)    
Provision for income tax (expense) benefit       177
    
Net income (loss) $1,942
   $1,942

15
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
2. Segment Information (continued)

  Operating Results    
Nine Months Ended September 30, 2016 U.S. MetLife
Holdings		 Corporate
& Other		 Total Adjustments Total
Consolidated
  (In millions)
Revenues            
Premiums $13,451
 $3,303
 $47
 $16,801
 $—
 $16,801
Universal life and investment-type product policy fees 741
 928
 182
 1,851
 77
 1,928
Net investment income 4,518
 4,260
 (35) 8,743
 (394) 8,349
Other revenues 561
 98
 462
 1,121
 —
 1,121
Net investment gains (losses) —
 —
 —
 —
 115
 115
Net derivative gains (losses) —
 —
 —
 —
 (562) (562)
Total revenues 19,271
 8,589
 656
 28,516
 (764) 27,752
Expenses            
Policyholder benefits and claims and policyholder dividends 14,232
 5,475
 103
 19,810
 133
 19,943
Interest credited to policyholder account balances 964
 687
 26
 1,677
 (2) 1,675
Capitalization of DAC (43) (239) (3) (285) —
 (285)
Amortization of DAC and VOBA 43
 591
 51
 685
 (265) 420
Interest expense on debt 7
 5
 72
 84
 —
 84
Other expenses 2,057
 1,439
 612
 4,108
 123
 4,231
Total expenses 17,260
 7,958
 861
 26,079
 (11) 26,068
Provision for income tax expense (benefit) 720
 178
 (403) 495
 (263) 232
Operating earnings $1,291
 $453
 $198
 1,942
    
Adjustments to:            
Total revenues       (764)    
Total expenses       11
    
Provision for income tax (expense) benefit       263
    
Net income (loss) $1,452
   $1,452
The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at:
March 31, 2022December 31, 2021
(In millions)
U.S.$241,715 $256,381 
MetLife Holdings151,970 161,614 
Corporate & Other25,773 28,562 
Total$419,458 $446,557 
 September 30, 2017 December 31, 2016
 (In millions)
U.S.$250,516
 $247,314
MetLife Holdings164,588
 163,048
Corporate & Other23,952
 22,199
Total$439,056
 $432,561

16
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

3. Insurance
Guarantees
As discussed in Notes 1 and 43 of the Notes to the Consolidated Financial Statements included in the 20162021 Annual Report, the Company issues directly and assumes through reinsurance variable annuity products with guaranteed minimum benefits. Guaranteed minimum accumulation benefits (“GMABs”), the non-life-contingentnon-life contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”) and the portioncertain non-life contingent portions of certain GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 6.
The Company also issues other annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize. These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certain other annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit.
Information regarding the Company’s guarantee exposure, which includes direct business, but excludes offsets from hedging or reinsurance, if any, was as follows at:
15
  September 30, 2017 December 31, 2016
  In the
Event of Death		 At
Annuitization		 In the
Event of Death		 At
Annuitization
  (Dollars in millions) 
Annuity Contracts (1):            
Variable Annuity Guarantees:            
Total account value (2) $55,962
  $25,123
  $54,629
  $24,310
 
Separate account value $45,046
  $24,179
  $43,359
  $23,330
 
Net amount at risk $1,082
(3) $383
(4) $1,386
(3) $328
(4)
Average attained age of contractholders 66 years
  65 years
  65 years
  64 years
 
Other Annuity Guarantees:            
Total account value (2) N/A
  $140
  N/A
  $141
 
Net amount at risk N/A
  $93
(5) N/A
  $92
(5)
Average attained age of contractholders N/A
  52 years
  N/A
  52 years
 
 September 30, 2017 December 31, 2016
 Secondary
Guarantees		 Paid-Up
Guarantees		 Secondary
Guarantees		 Paid-Up
Guarantees
 (Dollars in millions)
Universal and Variable Life Contracts (1):       
Total account value (2)$4,548
 $985
 $4,306
 $1,014
Net amount at risk (6)$47,348
 $6,826
 $49,161
 $7,164
Average attained age of policyholders54 years
 62 years
 53 years
 62 years
__________________
(1)The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.
(2)Includes the contractholder’s investments in the general account and separate account, if applicable.
(3)Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

17
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
3. Insurance (continued)

Information regarding the Company’s guarantee exposure, which includes direct business, but excludes offsets from hedging or reinsurance, if any, was as follows at:
(4)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, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved.
(5)Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or 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, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date.
(6)Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.
March 31, 2022December 31, 2021
In the
Event of Death
At
Annuitization
In the
Event of Death
At
Annuitization
(Dollars in millions)
Annuity Contracts:
Variable Annuity Guarantees:
Total account value (1), (2)$44,695 $18,158 $48,868 $20,140 
Separate account value (1)$35,804 $17,373 $39,882 $19,347 
Net amount at risk$2,029 (3)$507 (4)$1,160 (3)$461 (4)
Average attained age of contractholders70 years69 years69 years66 years
Other Annuity Guarantees:
Total account value (1), (2)N/A$135 N/A$135 
Net amount at riskN/A$69 (5)N/A$70 (5)
Average attained age of contractholdersN/A55 yearsN/A55 years
March 31, 2022December 31, 2021
Secondary
Guarantees
Paid-Up
Guarantees
Secondary
Guarantees
Paid-Up
Guarantees
(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (2)$5,496 $815 $5,935 $826 
Net amount at risk (6)$37,487 $5,091 $37,482 $5,181 
Average attained age of policyholders59 years66 years59 years65 years
__________________
(1)The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.
(2)Includes the contractholders’ investments in the general account and separate account, if applicable.
(3)Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.
(4)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, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved.
(5)Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or 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, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date.
(6)Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.
16
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
3. Insurance (continued)
Liabilities for Unpaid Claims and Claim Expenses
Rollforward of Claims and Claim Adjustment Expenses
Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows:
Three Months
Ended
March 31,


Nine Months
Ended
September 30,		20222021


2017
2016(In millions)


(In millions)
Balance at December 31 of prior period
$11,621
 $7,527
Balance, beginning of periodBalance, beginning of period$15,059 $13,523 
Less: Reinsurance recoverables
539
 273
Less: Reinsurance recoverables2,263 1,639 
Net Balance at December 31 of prior period
11,082
 7,254
Cumulative adjustment (1)
—
 3,397
Net balance, beginning of period
11,082
 10,651
Net balance, beginning of period12,796 11,884 
Incurred related to:
   Incurred related to:
Current period
11,768
 12,392
Current period5,281 4,550 
Prior periods (2)
205
 239
Prior periods (1)Prior periods (1)246 361 
Total incurred
11,973
 12,631
Total incurred5,527 4,911 
Paid related to:
   Paid related to:
Current period
(8,952) (8,678)Current period(2,115)(2,153)
Prior periods
(3,115) (3,505)Prior periods(3,160)(2,992)
Total paid
(12,067) (12,183)Total paid(5,275)(5,145)
Net balance, end of period
10,988
 11,099
Net balance, end of period13,048 11,650 
Add: Reinsurance recoverables
1,355
 1,489
Add: Reinsurance recoverables2,243 2,297 
Balance, end of period (included in future policy benefits and other policy-related balances)
$12,343
 $12,588
Balance, end of period (included in future policy benefits and other policy-related balances)$15,291 $13,947 
__________________
(1)Reflects the accumulated adjustment, net of reinsurance, upon implementation of the new short-duration contracts guidance which clarified the requirement to include claim information for long-duration contracts. The accumulated adjustment primarily reflects unpaid claim liabilities, net of reinsurance, for long-duration contracts as of the beginning of the period presented.
(2)During both the nine months ended September 30, 2017 and 2016, as a result of changes in estimates of insured events in the respective prior periods, the claims and claim adjustment expenses associated with prior periods increased due to unfavorable claims experience.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes(1)The three months ended March 31, 2022 and 2021 include incurred claim activity and claim adjustment expenses associated with prior periods but reported in the respective current period, which contain impacts related to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
COVID-19 pandemic, partially offset by additional premiums recorded for experience-rated contracts that are not reflected in the table above.

4. Closed Block
On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, Metropolitan Life Insurance Company established a closed block for the benefit of holders of certain individual life insurance policies of Metropolitan Life Insurance Company.
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 cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of 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.

1917
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
4. Closed Block (continued)

Information regarding the closed block liabilities and assets designated to the closed block was as followsfollows at:
 September 30, 2017 December 31, 2016March 31, 2022December 31, 2021
 (In millions)(In millions)
Closed Block Liabilities    Closed Block Liabilities
Future policy benefits $40,489
 $40,834
Future policy benefits$37,787 $38,046 
Other policy-related balances 193
 257
Other policy-related balances312 290 
Policyholder dividends payable 483
 443
Policyholder dividends payable249 253 
Policyholder dividend obligation 2,201
 1,931
Policyholder dividend obligation— 1,682 
Current income tax payable —
 4
Deferred income tax liabilityDeferred income tax liability146 210 
Other liabilities 277
 196
Other liabilities337 263 
Total closed block liabilities 43,643
 43,665
Total closed block liabilities38,831 40,744 
Assets Designated to the Closed Block    Assets Designated to the Closed Block
Investments:    Investments:
Fixed maturity securities available-for-sale, at estimated fair value 27,541
 27,220
Fixed maturity securities available-for-sale, at estimated fair value23,412 25,669 
Equity securities available-for-sale, at estimated fair value 71
 100
Mortgage loans 5,904
 5,935
Mortgage loans6,462 6,417 
Policy loans 4,542
 4,553
Policy loans4,149 4,191 
Real estate and real estate joint ventures 628
 655
Real estate and real estate joint ventures547 565 
Other invested assets 1,053
 1,246
Other invested assets565 556 
Total investments 39,739
 39,709
Total investments35,135 37,398 
Cash and cash equivalents 60
 18
Cash and cash equivalents203 126 
Accrued investment income 487
 467
Accrued investment income389 384 
Premiums, reinsurance and other receivables 68
 68
Premiums, reinsurance and other receivables38 50 
Current income tax recoverable 30
 —
Current income tax recoverable89 81 
Deferred income tax assets 109
 177
Total assets designated to the closed block 40,493
 40,439
Total assets designated to the closed block35,854 38,039 
Excess of closed block liabilities over assets designated to the closed block 3,150
 3,226
Excess of closed block liabilities over assets designated to the closed block2,977 2,705 
Amounts included in accumulated other comprehensive income (loss) (“AOCI”):    
AOCI:AOCI:
Unrealized investment gains (losses), net of income tax 1,851
 1,517
Unrealized investment gains (losses), net of income tax970 2,562 
Unrealized gains (losses) on derivatives, net of income tax 23
 95
Unrealized gains (losses) on derivatives, net of income tax123 107 
Allocated to policyholder dividend obligation, net of income tax (1,431) (1,255)Allocated to policyholder dividend obligation, net of income tax— (1,329)
Total amounts included in AOCI 443
 357
Total amounts included in AOCI1,093 1,340 
Maximum future earnings to be recognized from closed block assets and liabilities $3,593
 $3,583
Maximum future earnings to be recognized from closed block assets and liabilities$4,070 $4,045 
Information regarding the closed block policyholder dividend obligation was as follows:
 Nine Months
Ended
September 30, 2017		 Year 
 Ended 
 December 31, 2016		Three Months
Ended
March 31, 2022		Year 
 Ended 
 December 31, 2021
 (In millions)(In millions)
Balance, beginning of period $1,931
 $1,783
Balance, beginning of period$1,682 $2,969 
Change in unrealized investment and derivative gains (losses) 270
 148
Change in unrealized investment and derivative gains (losses)(1,682)(1,287)
Balance, end of period $2,201
 $1,931
Balance, end of period$— $1,682 
20
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
4. Closed Block (continued)

Information regarding the closed block revenues and expenses was as follows:
 Three Months 
 Ended 
 September 30,		 Nine Months
Ended
September 30,		Three Months
Ended
March 31,
 2017 2016 2017 201620222021
 (In millions)(In millions)
Revenues        Revenues
Premiums $413
 $436
 $1,247
 $1,297
Premiums$275 $320 
Net investment income 450
 486
 1,368
 1,435
Net investment income361 393 
Net investment gains (losses) —
 (3) (10) (19)Net investment gains (losses)(32)6 
Net derivative gains (losses) (6) 4
 (24) (3)Net derivative gains (losses)3 1 
Total revenues 857
 923
 2,581
 2,710
Total revenues607 720 
Expenses        Expenses
Policyholder benefits and claims 591
 619
 1,773
 1,861
Policyholder benefits and claims483 546 
Policyholder dividends 235
 232
 732
 723
Policyholder dividends133 178 
Other expenses 30
 33
 94
 100
Other expenses23 25 
Total expenses 856
 884
 2,599
 2,684
Total expenses639 749 
Revenues, net of expenses before provision for income tax expense (benefit) 1
 39
 (18) 26
Revenues, net of expenses before provision for income tax expense (benefit)(32)(29)
Provision for income tax expense (benefit) —
 13
 (8) 8
Provision for income tax expense (benefit)(7)(6)
Revenues, net of expenses and provision for income tax expense (benefit) $1
 $26
 $(10) $18
Revenues, net of expenses and provision for income tax expense (benefit)$(25)$(23)
Metropolitan Life Insurance Company 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. Metropolitan Life Insurance Company also charges the closed block for expenses of maintaining the policies included in the closed block.

19
21
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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

5. Investments
5. Investments
Fixed Maturity and Equity Securities Available-for-Sale
Fixed Maturity and Equity Securities Available-for-Sale by Sector
The following table presents the fixed maturity and equity securities AFSavailable-for-sale (“AFS”) by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemablesectors include redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including residentialstock. Residential mortgage-backed securities (“RMBS”) includes agency, prime, alternative and sub-prime mortgage-backed securities. Asset-backed securities and collateralized loan obligations (“ABS & CLO”), asset-backedpreviously disclosed as ABS in the 2021 Annual Report, includes securities (“ABS”)collateralized by consumer loans, corporate loans and commercialbroadly 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”) (collectively,primarily includes securities collateralized by multiple commercial mortgage loans. RMBS, ABS & CLO and CMBS are, collectively, “Structured Securities”).Products.”
March 31, 2022December 31, 2021
Amortized
Cost		Gross UnrealizedEstimated
Fair
Value		Amortized
Cost		Gross UnrealizedEstimated
Fair
Value
SectorAllowance for
Credit Loss		GainsLossesAllowance for
Credit Loss		GainsLosses
(In millions)
U.S. corporate$51,491 $(13)$3,245 $910 $53,813 $51,328 $(30)$7,257 $153 $58,402 
U.S. government and agency25,904 — 2,693 557 28,040 26,782 — 4,568 128 31,222 
Foreign corporate27,881 (25)927 1,106 27,677 27,475 (10)2,651 431 29,685 
RMBS22,740 — 581 773 22,548 22,082 — 1,198 135 23,145 
ABS & CLO13,743 — 30 259 13,514 12,787 — 127 35 12,879 
Municipals6,920 — 996 132 7,784 6,884 — 1,849 5 8,728 
CMBS6,907 (13)42 163 6,773 6,686 (13)237 32 6,878 
Foreign government4,258 (104)401 166 4,389 4,330 — 698 82 4,946 
Total fixed maturity securities AFS$159,844 $(155)$8,915 $4,066 $164,538 $158,354 $(53)$18,585 $1,001 $175,885 
 September 30, 2017 December 31, 2016
 Cost or
Amortized
Cost		 Gross Unrealized Estimated
Fair
Value		 Cost or
Amortized
Cost		 Gross Unrealized Estimated
Fair
Value
 
Gains		 Temporary
Losses		 OTTI
Losses (1)		 
Gains		 Temporary
Losses		 OTTI
Losses (1)		 
 (In millions)
Fixed maturity securities:                  
U.S. corporate$52,903
 $4,851
 $277
 $—
 $57,477
 $52,665
 $4,079
 $586
 $—
 $56,158
U.S. government and agency36,722
 3,630
 244
 —
 40,108
 32,834
 3,238
 457
 —
 35,615
Foreign corporate24,311
 1,563
 507
 —
 25,367
 24,596
 957
 1,196
 —
 24,357
RMBS23,470
 1,095
 184
 (39) 24,420
 22,786
 911
 290
 (10) 23,417
ABS7,652
 68
 15
 —
 7,705
 7,567
 32
 95
 —
 7,504
State and political subdivision6,284
 1,159
 8
 —
 7,435
 6,252
 928
 44
 —
 7,136
CMBS5,239
 145
 27
 —
 5,357
 4,876
 118
 59
 —
 4,935
Foreign government3,802
 639
 26
 —
 4,415
 3,565
 507
 74
 —
 3,998
Total fixed maturity securities$160,383

$13,150

$1,288

$(39)
$172,284

$155,141

$10,770

$2,801

$(10)
$163,120
Equity securities:                   
Common stock$1,274
 $72
 $16
 $—
 $1,330
 $1,220
 $91
 $12
 $—
 $1,299
Non-redeemable preferred stock438
 29
 6
 —
 461
 565
 14
 39
 —
 540
Total equity securities$1,712

$101

$22

$—

$1,791

$1,785

$105

$51

$—

$1,839
__________________
(1)Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).”
The Company held non-income producing fixed maturity securities AFS with an estimated fair value of $1$121 million and less than $1$19 million at March 31, 2022 and December 31, 2021, respectively, with unrealized gains (losses) of less than ($1)$7 million and less than $1$10 million at September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively.
Maturities of Fixed Maturity Securities AFS
The amortized cost, net of allowance for credit loss (“ACL”), and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at September 30, 2017:March 31, 2022:
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$3,553 $27,757 $27,727 $57,275 $43,377 $159,689 
Estimated fair value$3,496 $27,604 $28,461 $62,142 $42,835 $164,538 
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.
20
 
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
Securities
 
Total Fixed
Maturity
Securities
 (In millions)
Amortized cost$6,872
 $35,227
 $30,763
 $51,160
 $36,361
 $160,383
Estimated fair value$6,894
 $36,381
 $32,449
 $59,078
 $37,482
 $172,284

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity.
Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector
The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position aggregatedwithout an ACL by sector and aggregated by length of time that the securities have been in a continuous unrealized loss position at:position.
 September 30, 2017 December 31, 2016
 Less than 12 Months Equal to or Greater
than 12 Months		 Less than 12 Months Equal to or Greater
than 12 Months
 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)
Fixed maturity securities:               
U.S. corporate$4,644
 $119
 $1,750
 $158
 $8,406
 $337
 $2,260
 $249
U.S. government and agency15,499
 240
 149
 4
 6,032
 457
 —
 —
Foreign corporate2,153
 74
 3,870
 433
 5,343
 336
 4,523
 860
RMBS5,075
 77
 1,566
 68
 6,662
 187
 1,707
 93
ABS1,156
 2
 463
 13
 1,482
 12
 1,714
 83
State and political subdivision222
 6
 60
 2
 943
 43
 17
 1
CMBS882
 8
 123
 19
 922
 15
 432
 44
Foreign government216
 6
 249
 20
 581
 26
 309
 48
Total fixed maturity securities$29,847
 $532
 $8,230
 $717
 $30,371
 $1,413
 $10,962
 $1,378
Equity securities:
 
 
 
 
 
 
 
Common stock$98
 $16
 $3
 $—
 $58
 $12
 $10
 $—
Non-redeemable preferred stock—
 —
 82
 6
 139
 6
 120
 33
Total equity securities$98
 $16
 $85
 $6
 $197
 $18
 $130
 $33
Total number of securities in an
unrealized loss position
1,592
 
 886
 
 3,076
 
 940
 
March 31, 2022December 31, 2021
Less than 12 MonthsEqual to or Greater
than 12 Months		Less than 12 MonthsEqual to or Greater
than 12 Months
Sector & Credit QualityEstimated
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$14,361 $754 $1,270 $156 $4,503 $83 $784 $70 
U.S. government and agency11,670 451 508 106 10,063 78 523 49 
Foreign corporate11,919 855 1,412 250 4,079 199 1,348 232 
RMBS11,586 603 1,584 170 7,481 111 314 24 
ABS & CLO10,347 236 845 23 5,643 25 593 10 
Municipals1,462 129 15 3 154 4 17 1 
CMBS3,810 131 531 32 1,613 20 355 12 
Foreign government939 103 194 49 497 37 148 45 
Total fixed maturity securities AFS$66,094 $3,262 $6,359 $789 $34,033 $557 $4,082 $443 
Investment grade$61,153 $2,974 $5,487 $670 $31,419 $454 $3,273 $353 
Below investment grade4,941 288 872 119 2,614 103 809 90 
Total fixed maturity securities AFS$66,094 $3,262 $6,359 $789 $34,033 $557 $4,082 $443 
Total number of securities in an
unrealized loss position		6,3876732,549427
Evaluation of Fixed Maturity Securities AFS Securities for OTTICredit Loss
Evaluation and Evaluating Temporarily Impaired AFS SecuritiesMeasurement Methodologies
As described more fullyManagement considers a wide range of factors about the security issuer and uses its best judgment in Notes 1 and 8evaluating 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 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.
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.
21
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements included(Unaudited) — (continued)
5. Investments (continued)
•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 unique 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 2016 Annual Report,financial condition of the Company performsunderlying loan obligors, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a regular evaluationparticular security, changes in the quality of all investment classes for impairment, including fixed maturitycredit 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 andthat 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 accordancethe 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 increased $3.1 billion for the three months ended March 31, 2022 to $4.1 billion primarily due to increases in interest rates, widening credit spreads, and, to a lesser extent, the impact of weakening foreign currencies on certain non-functional currency denominated fixed maturity securities.
Gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater were $789 million at March 31, 2022, or 19% of the total gross unrealized losses on securities without an ACL.
Investment Grade Fixed Maturity Securities AFS
Of the $789 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, $670 million, or 85%, were related to 556 investment grade securities. Unrealized losses on investment grade securities are principally related to widening credit spreads since purchase and, with its impairment policy,respect to fixed-rate securities, rising interest rates since purchase.
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)
Below Investment Grade Fixed Maturity Securities AFS
Of the $789 million of gross unrealized losses on securities without an ACL that have been in ordera continuous gross unrealized loss position for 12 months or greater, $119 million, or 15%, were related to evaluate whether117 below investment grade securities. Unrealized losses on below investment grade securities are principally related to U.S. corporate and foreign corporate securities (primarily industrial and consumer) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainty, as well as with respect to fixed-rate securities, rising interest rates since purchase. Management evaluates U.S. corporate and foreign corporate securities based on several factors such investments are other-than-temporarily impaired.as expected cash flows, financial condition and near-term and long-term prospects of the issuers.
Current Period Evaluation
At March 31, 2022, with respect to securities in an unrealized loss position without an ACL, the Company did not intend to sell these securities, 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. Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities,without an ACL, the Company concluded that these securities werehad not other-than-temporarily impairedincurred a credit loss and should not have an ACL at September 30, 2017. March 31, 2022.
Future OTTIprovisions 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, interest rates and credit spreads,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 well as a change in the Company’s intention to hold or sell a security that is in an unrealized loss position. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods.follows:

U.S.
 Corporate		Foreign CorporateForeign
Government		CMBSTotal
Three Months Ended March 31, 2022(In millions)
Balance, at beginning of period$30 $10 $— $13 $53 
Additions:
ACL not previously recorded13 11 104 — 128 
Changes for securities with previously recorded ACL— 4 — — 4 
Reductions:
Securities sold or exchanged(8)— — — (8)
Write-offs(22)— — — (22)
Balance, at end of period$13 $25 $104 $13 $155 
Three Months Ended March 31, 2021
Balance, at beginning of period$43 $8 $— $— $51 
Additions:
ACL not previously recorded— 12 — 6 18 
Reductions:
Changes for securities with previously recorded ACL— (3)— — (3)
Securities sold or exchanged— — — — — 
Write-offs— — — — — 
Balance, at end of period$43 $17 $— $6 $66 
23
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)

Gross unrealized losses on fixed maturity securities decreased $1.5 billion during the nine months ended September 30, 2017 to $1.2 billion. The decrease in gross unrealized losses for the nine months ended September 30, 2017 was primarily attributable to decreasing longer-term interest rates and narrowing credit spreads, and to a lesser extent the impact of strengthening foreign currencies on non-functional currency denominated fixed maturity securities.
At September 30, 2017, $107 million of the total $1.2 billion of gross unrealized losses were from 30 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater.
Gross unrealized losses on equity securities decreased $29 million during the nine months ended September 30, 2017 to $22 million.
Investment Grade Fixed Maturity Securities
Of the $107 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $70 million, or 65%, were related to gross unrealized losses on 13 investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads since purchase and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase.
Below Investment Grade Fixed Maturity Securities
Of the $107 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $37 million, or 35%, were related to gross unrealized losses on 17 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to U.S. and foreign corporate securities (primarily industrial and utility securities) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainty including concerns over lower oil prices in the energy sector. Management evaluates U.S. and foreign corporate securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuers.
Mortgage Loans
Mortgage Loans by Portfolio Segment
Mortgage loans are summarized as follows at:
March 31, 2022December 31, 2021
Portfolio SegmentCarrying
Value		% of
Total		Carrying
Value		% of
Total
(Dollars in millions)
Commercial$35,626 59.7 %$35,772 59.4 %
Agricultural15,076 25.3 15,450 25.7 
Residential9,353 15.7 9,406 15.6 
Total amortized cost60,055 100.7 60,628 100.7 
Allowance for credit loss(510)(0.9)(536)(0.9)
Subtotal mortgage loans, net59,545 99.8 60,092 99.8 
Residential — FVO119 0.2 127 0.2 
Total mortgage loans, net$59,664 100.0 %$60,219 100.0 %
 September 30, 2017 December 31, 2016
 
Carrying
Value
 
% of
Total
 
Carrying
Value
 
% of
Total
 (Dollars in millions)
Mortgage loans:       
Commercial$34,495
 59.4 % $34,008
 60.1 %
Agricultural12,700
 21.9
 12,358
 21.9
Residential10,567
 18.2
 9,895
 17.5
Subtotal (1)57,762
 99.5
 56,261
 99.5
Valuation allowances(272) (0.5) (267) (0.5)
Subtotal mortgage loans, net57,490
 99.0
 55,994
 99.0
Residential — FVO564
 1.0
 566
 1.0
Total mortgage loans, net$58,054
 100.0 % $56,560
 100.0 %
__________________
(1)
Purchases of mortgage loans, primarilyThe Company elects the FVO for certain residential were$409 millionand $1.9 billionfor thethree monthsand nine months endedSeptember 30, 2017, respectively, and$732 millionand $1.9 billionfor thethree monthsand nine months endedSeptember 30, 2016, respectively.
Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment
Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modifiedthat are managed on a total return basis, with changes in a troubled debt restructuring, and the related valuation allowances, were as follows at:
 Evaluated Individually for Credit Losses 
Evaluated Collectively for
Credit Losses
 
Impaired
Loans
 
Impaired Loans with a
Valuation Allowance
 
Impaired Loans without a
Valuation Allowance
      
 
Unpaid
Principal
Balance
 
Recorded
Investment
 Valuation
Allowances		 
Unpaid
Principal
Balance
 Recorded
Investment		 Recorded
Investment		 Valuation
Allowances		 Carrying
Value
 (In millions)
September 30, 2017               
Commercial$—
 $—
 $—
 $—
 $—
 $34,495
 $171
 $—
Agricultural22
 21
 2
 28
 28
 12,651
 38
 47
Residential—
 —
 —
 335
 304
 10,263
 61
 304
Total$22

$21

$2

$363

$332

$57,409

$270

$351
December 31, 2016               
Commercial$—
 $—
 $—
 $12
 $12
 $33,996
 $167
 $12
Agricultural11
 9
 1
 27
 27
 12,322
 37
 35
Residential—
 —
 —
 265
 241
 9,654
 62
 241
Total$11

$9

$1

$304

$280

$55,972

$266

$288
estimated fair value included in net investment income. See Note 7 for further information.
The average recorded investmentamount of net (discounts) premiums and deferred (fees) expenses, included within total amortized cost, primarily attributable to residential mortgage loans was ($701) million and ($736) million at March 31, 2022 and December 31, 2021, respectively. The accrued interest income excluded from total amortized cost for impaired commercial, agricultural and residential mortgage loans at March 31, 2022 was $0, $31$143 million, $107 million and $297$74 million, respectively,respectively. The accrued interest income excluded from total amortized cost for the three months ended September 30, 2017; and $6 million, $28 million and $275 million, respectively, for the nine months ended September 30, 2017.
The average recorded investment for impaired commercial, agricultural and residential mortgage loans at December 31, 2021 was$12 $140 million,, $48 $136 millionand $202$77 million, respectively,respectively.
Purchases of mortgage loans, consisting primarily of residential mortgage loans, were $533 million and $377 million for the three months ended September 30, 2016;March 31, 2022 and $34 million, $52 million and $174 million, respectively,2021, respectively. See “— Related Party Investment Transactions” for the nine months ended September 30, 2016.information regarding transfers of mortgage loans from affiliates.
ValuationRollforward of Allowance Rollforwardfor Credit Loss for Mortgage Loans by Portfolio Segment
The changes in the valuation allowance,rollforward of ACL for mortgage loans, by portfolio segment, wereis as follows:
Three Months Ended March 31,
20222021
CommercialAgriculturalResidentialTotalCommercialAgriculturalResidentialTotal
(In millions)
Balance, beginning of period$260 $79 $197 $536 $199 $97 $221 $517 
Provision (release)(11)11 (25)(25)(7)(13)(29)(49)
Charge-offs, net of recoveries— — (1)(1)— (13)— (13)
Balance, end of period$249 $90 $171 $510 $192 $71 $192 $455 

Nine Months
Ended
September 30,
 2017
2016
 Commercial
Agricultural
Residential
Total
Commercial
Agricultural
Residential
Total
 (In millions)
Balance, beginning of period$167

$38

$62

$267

$165

$37

$55

$257
Provision (release)4

4

10

18

—

2

11

13
Charge-offs, net of recoveries—

(2)
(11)
(13)
—

(2)
(12)
(14)
Balance, end of period$171

$40

$61

$272

$165

$37

$54

$256


24
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)

Allowance for Credit Quality of Commercial Mortgage LoansLoss 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), collateral dependent mortgage loans (i.e., when the borrower is experiencing financial difficulty, including when foreclosure is reasonably possible or probable) and reasonably expected TDRs (i.e., the Company grants concessions to borrower that is experiencing financial difficulties) 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).
Commercial and Agricultural Mortgage Loan Portfolio Segments
Commercial and agricultural mortgage loan ACL are calculated in a similar manner. 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, wasin 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 follows at:
 Recorded Investment Estimated
Fair
Value		 % of
Total
 Debt Service Coverage Ratios   % of
Total		 
 > 1.20x 1.00x - 1.20x < 1.00x Total 
 (Dollars in millions)
September 30, 2017             
Loan-to-value ratios:             
Less than 65%$29,702
 $1,430
 $242
 $31,374
 91.0% $32,058
 91.1%
65% to 75%2,441
 159
 168
 2,768
 8.0
 2,769
 7.9
76% to 80%149
 —
 57
 206
 0.6
 202
 0.6
Greater than 80%—
 —
 147
 147
 0.4
 143
 0.4
Total$32,292

$1,589

$614

$34,495

100%
$35,172

100%
December 31, 2016             
Loan-to-value ratios:             
Less than 65%$29,352
 $1,036
 $564
 $30,952
 91.0% $31,320
 91.2%
65% to 75%2,522
 —
 198
 2,720
 8.0
 2,694
 7.9
76% to 80%116
 —
 —
 116
 0.3
 115
 0.3
Greater than 80%118
 27
 75
 220
 0.7
 214
 0.6
Total$32,108

$1,063

$837

$34,008

100%
$34,343

100%
Credit Qualitycompared 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 Agricultural Mortgage Loans
The credit qualityits 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, was as follows at:
 September 30, 2017 December 31, 2016
 
Recorded
Investment
 
% of
Total
 
Recorded
Investment
 
% of
Total
 (Dollars in millions)
Loan-to-value ratios:       
Less than 65%$12,162
 95.7% $11,829
 95.7%
65% to 75%520
 4.1
 424
 3.4
76% to 80%9
 0.1
 17
 0.2
Greater than 80%9
 0.1
 88
 0.7
Total$12,700
 100.0% $12,358
 100.0%
The estimated fair valuein 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, was $12.8 billionthe Company’s experience is much less sensitive to the position in the economic cycle and $12.5 billion at September 30, 2017 and December 31, 2016, respectively.by loan profile; accordingly, historical prepayment experience is used, while extension terms are not prevalent with the Company’s agricultural mortgage loans.


25
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)

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.
Commitments to lend: After 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 are 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.
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 immediately reverts to industry historical loss experience.
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.
Credit Quality of Residential Mortgage Loans by Portfolio Segment
The amortized cost of commercial mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2022:
26
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)
Credit Quality Indicator20222021202020192018PriorRevolving
Loans		Total% of
Total
(Dollars in millions)
LTV ratios:
Less than 65%$542 $3,361 $3,009 $2,932 $3,613 $11,357 $2,300 $27,114 76.1 %
65% to 75%376 1,059 560 1,997 932 1,663 — 6,587 18.5 
76% to 80%— 26 18 138 199 266 — 647 1.8 
Greater than 80%8 — — — 48 1,222 — 1,278 3.6 
Total$926 $4,446 $3,587 $5,067 $4,792 $14,508 $2,300 $35,626 100.0 %
DSCR:
> 1.20x$926 $4,040 $3,326 $4,667 $4,382 $11,839 $2,300 $31,480 88.4 %
1.00x - 1.20x— 182 18 10 134 818 — 1,162 3.2 
<1.00x— 224 243 390 276 1,851 — 2,984 8.4 
Total$926 $4,446 $3,587 $5,067 $4,792 $14,508 $2,300 $35,626 100.0 %
The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2022:
Credit Quality Indicator20222021202020192018PriorRevolving
Loans		Total% of
Total
(Dollars in millions)
LTV ratios:
Less than 65%$292 $1,419 $2,026 $1,623 $2,211 $4,766 $1,014 $13,351 88.5 %
65% to 75%95 236 330 197 64 599 73 1,594 10.6 
76% to 80%— — — — — 11 — 11 0.1 
Greater than 80%— — — 76 — 42 2 120 0.8 
Total$387 $1,655 $2,356 $1,896 $2,275 $5,418 $1,089 $15,076 100.0 %
The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at:at March 31, 2022:
Credit Quality Indicator20222021202020192018PriorRevolving
Loans		Total% of
Total
(Dollars in millions)
Performance indicators:
Performing$86 $701 $176 $693 $411 $6,777 $— $8,844 94.6 %
Nonperforming (1)— 2 5 51 16 435 — 509 5.4 
Total$86 $703 $181 $744 $427 $7,212 $— $9,353 100.0 %
 September 30, 2017 December 31, 2016
 
Recorded
Investment
 
% of
Total
 
Recorded
Investment
 
% of
Total
 (Dollars in millions)
Performance indicators:       
Performing$10,198
 96.5% $9,563
 96.6%
Nonperforming369
 3.5
 332
 3.4
Total$10,567
 100.0% $9,895
 100.0%
__________________
The(1)Includes residential mortgage loans in process of foreclosure of $78 million and $69 million at March 31, 2022 and December 31, 2021, respectively.
LTV ratios compare the unpaid principal balance of the loan to the estimated fair value of residentialthe underlying collateral. The amortized cost of commercial and agricultural mortgage loans with an LTV ratio in excess of 100% was $11.2 billion$681 million, or1% of total commercial and $10.3 billionagricultural mortgage loans, at September 30, 2017 and DecemberMarch 31, 2016, respectively.2022.
27
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)
Past Due and Nonaccrual Mortgage Loans
The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both September 30, 2017March 31, 2022 and December 31, 2016.2021. The Company defines delinquency consistent with industry practice, when mortgage loans are past due more than two or more months, as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days.applicable, by portfolio segment. The past due and nonaccrual mortgage loans at recorded investment,amortized cost, prior to valuation allowances,ACL, by portfolio segment, were as follows at:follows:
Past DueGreater than 90 Days Past Due
and Still Accruing Interest		Nonaccrual
Portfolio SegmentMarch 31, 2022December 31, 2021March 31, 2022December 31, 2021March 31, 2022December 31, 2021
(In millions)
Commercial$— $— $— $— $148 $146 
Agricultural169 124 61 16 225 225 
Residential509 418 1 — 508 418 
Total$678 $542 $62 $16 $881 $789 
 Past Due Greater than 90 Days Past Due and Still Accruing Interest Nonaccrual
 September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016
 (In millions)
Commercial$—
 $—
 $—
 $—
 $—
 $—
Agricultural134
 127
 125
 104
 36
 23
Residential369
 332
 —
 —
 369
 332
Total$503
 $459
 $125
 $104
 $405
 $355
Mortgage Loans Modified in a Troubled Debt Restructuring
During both thethree monthsThe amortized cost for nonaccrual commercial, agricultural and nine months endedSeptember 30, 2017 and 2016, the Company did not have a significant amount ofresidential mortgage loans modifiedat beginning of year 2021 was $293 million, $261 million and $503 million, respectively. The amortized cost for nonaccrual agricultural mortgage loans with no ACL was $134 million at both March 31, 2022 and December 31, 2021. There were no nonaccrual commercial or residential mortgage loans without an ACL at either March 31, 2022 or December 31, 2021.
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 a troubled debt restructuring.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:
Cash Equivalents
 March 31, 2022December 31, 2021Three Months 
 Ended 
 March 31,
 20222021
Income TypeCarrying ValueIncome
(In millions)
Leased real estate investments$1,938 $1,934 $54 $54 
Other real estate investments471 473 30 34 
Real estate joint ventures5,545 5,466 110 6 
Total real estate and real estate joint ventures$7,954 $7,873 $194 $94 
The carrying value of cash equivalentsreal estate investments acquired through foreclosure was $3.0 billion$179 million and $4.7 billion$180 million at September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively. Depreciation expense on real estate investments was $20 million and $21 million for the three months ended March 31, 2022 and 2021, respectively. Real estate investments were net of accumulated depreciation of $601 million and $581 million at March 31, 2022 and December 31, 2021, 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.
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)

See Note 7 of the Notes to the Consolidated Financial Statements included in the 2021 Annual Report for a summary of leased real estate investments and income earned, by property type.
Leveraged and Direct Financing Leases
The Company has diversified leveraged and direct financing lease portfolios. Its leveraged leases principally include renewable energy generation facilities, rail cars, commercial real estate and commercial aircraft, and its direct financing leases principally include renewable energy generation facilities. These assets are leased through a variety of lease arrangements, which may include options to renew or extend the lease and options for the lessee to purchase the property. Residual values are estimated using available third-party data at inception of the lease. Risk is managed through lessee credit analysis, asset allocation, geographic diversification, and ongoing reviews of estimated residual values, using available third-party data. Generally, estimated residual values are not guaranteed by the lessee or a third party.
Lease receivables are generally due in periodic installments. The payment periods for leveraged leases generally range from one to 10 years, but in certain circumstances can be over 10 years, while the payment periods for direct financing leases generally range from one to 12 years.
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 investment in leases that the Company does not expect to collect, resulting in the investment in leases being presented at the net amount expected to be collected. In determining the ACL, management applies significant judgment to estimate expected lifetime credit loss, including: (i) pooling leases that share similar risk characteristics, (ii) considering expected lifetime credit loss over the contractual term of the lease, and (iii) considering past events and current and forecasted economic conditions. Leases with dissimilar risk characteristics are evaluated individually for credit loss. Expected lifetime credit loss on leveraged and direct financing lease receivables is estimated using a probability of default and loss given default model, where the probability of default incorporates third party credit ratings of the lessee and the related historical default data. The Company also assesses the non-guaranteed residual values for recoverability by comparison to the current estimated fair value of the leased asset and considers other relevant market information such as independent third-party forecasts, consulting, asset brokerage and investment banking reports and data, comparable market transactions, and factors such as the competitive dynamics impacting specific industries, technological change and obsolescence, government and regulatory rules, tax policy, potential environmental liabilities and litigation.
The investment in leveraged and direct financing leases, net of ACL, was $776 million and $134 million, respectively, at March 31, 2022 and $787 million and $137 million, respectively, at December 31, 2021. The ACL for leveraged and direct financing leases was $31 million and $32 million at March 31, 2022 and December 31, 2021, respectively.
Other Invested Assets
See Note 1 of the Notes to the Consolidated Financial Statements included in the 2021 Annual Report for further information about Other Invested Assets, which includes securities accounted for under the FVO (“FVO Securities”) and equity securities.
FVO Securities and Equity Securities
The following table presents FVO Securities and equity securities by security type. Common stock includes common stock and mutual funds.

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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)
March 31, 2022December 31, 2021
CostNet Unrealized Gains (Losses) (1)Estimated Fair ValueCostNet Unrealized Gains (Losses) (1)Estimated Fair Value
Security Type
(In millions)
FVO Securities$775 $227 $1,002 $598 $250 $848 
Equity securities
Common stock$90 $45 $135 $88 $32 $120 
Non-redeemable preferred stock84 (3)81 107 (1)106 
Total equity securities$174 $42 $216 $195 $31 $226 
__________________
(1)Represents cumulative changes in estimated fair value, recognized in earnings, and not in other comprehensive income (loss) (“OCI”).
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 $9.3 billion and $4.7 billion, principally at estimated fair value, at March 31, 2022 and December 31, 2021, respectively.
Net Unrealized Investment Gains (Losses)
Unrealized investment gains (losses) on fixed maturity and equity securities AFS and derivatives and the effect on policyholder liabilities, DAC, VOBA and deferred sales inducements (“DSI”), future policy benefits and the policyholder dividend obligation, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI.
The components of net unrealized investment gains (losses), included in AOCI, were as follows:
March 31, 2022December 31, 2021
(In millions)
Fixed maturity securities AFS$4,863 $17,586 
Derivatives2,022 2,370 
Other337 377 
Subtotal7,222 20,333 
Amounts allocated from:
Policyholder liabilities(11)(5,962)
DAC, VOBA and DSI(814)(1,357)
Subtotal(825)(7,319)
Deferred income tax benefit (expense)(1,272)(2,657)
Net unrealized investment gains (losses)$5,125 $10,357 
30
 September 30, 2017 December 31, 2016
 (In millions)
Fixed maturity securities$11,787
 $7,912
Fixed maturity securities with noncredit OTTI losses included in AOCI39
 10
Total fixed maturity securities11,826
 7,922
Equity securities123
 72
Derivatives1,557
 2,244
Other62
 16
Subtotal13,568
 10,254
Amounts allocated from:   
Future policy benefits(18) (9)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI(1) (1)
DAC, VOBA and DSI(759) (569)
Policyholder dividend obligation(2,201) (1,931)
Subtotal(2,979) (2,510)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI(13) (3)
Deferred income tax benefit (expense)(3,689) (2,690)
Net unrealized investment gains (losses)$6,887
 $5,051
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)
The changes in net unrealized investment gains (losses) were as follows:
Three Months
Ended
March 31, 2022
(In millions)
Balance, beginning of period$10,357 
Unrealized investment gains (losses) during the period(13,111)
Unrealized investment gains (losses) relating to:
Policyholder liabilities5,951 
DAC, VOBA and DSI543 
Deferred income tax benefit (expense)1,385 
Balance, end of period$5,125 
Change in net unrealized investment gains (losses)$(5,232)
 Nine Months
Ended
September 30, 2017
 (In millions)
Balance, beginning of period$5,051
Fixed maturity securities on which noncredit OTTI losses have been recognized29
Unrealized investment gains (losses) during the period3,285
Unrealized investment gains (losses) relating to: 
Future policy benefits(9)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI—
DAC, VOBA and DSI(190)
Policyholder dividend obligation(270)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI(10)
Deferred income tax benefit (expense)(999)
Balance, end of period$6,887
Change in net unrealized investment gains (losses)$1,836
Concentrations of Credit Risk
There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both September 30, 2017March 31, 2022 and December 31, 2016.2021.

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:
March 31, 2022December 31, 2021
Securities (1)Securities (1)
Agreement TypeEstimated Fair ValueCash Collateral Received from Counterparties (2)Reinvestment Portfolio at Estimated
Fair Value		Estimated Fair ValueCash Collateral Received from Counterparties (2)Reinvestment Portfolio at Estimated
Fair Value
(In millions)
Securities lending$14,879 $15,167 $15,000 $14,689 $14,977 $15,116 
Repurchase agreements$3,392 $3,325 $3,288 $3,416 $3,325 $3,357 
__________________
(1)These securities were included within fixed maturity securities AFS, short-term investments and cash equivalents at March 31, 2022 and within fixed maturity securities AFS at December 31, 2021.
(2)The liability for cash collateral is included within payables for collateral under securities loaned and other transactions.
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)

Contractual Maturities
Securities LendingContractual maturities of these transactions and agreements accounted for as secured borrowings were as follows:
Elements of the securities lending program are presented below at:
 September 30, 2017 December 31, 2016
 (In millions)
Securities on loan: (1)   
Amortized cost$14,447
 $15,694
Estimated fair value$15,551
 $16,496
Cash collateral received from counterparties (2)$15,919
 $16,807
Security collateral received from counterparties (3)$—
 $14
Reinvestment portfolio — estimated fair value$16,012
 $16,821
March 31, 2022December 31, 2021
Remaining MaturitiesRemaining Maturities
Security TypeOpen (1)1 Month
or Less		Over 1
 Month to 6
Months		Over 6 
Months
 to 1 Year		TotalOpen (1)1 Month
or Less		Over 1
Month to 6
Months		Over 6 Months to 1 YearTotal
(In millions)
Cash collateral liability by security type:
Securities lending:
U.S. government and agency$4,023 $5,267 $5,877 $— $15,167 $3,996 $5,279 $5,702 $— $14,977 
Repurchase agreements:
U.S. government and agency$— $3,325 $— $— $3,325 $— $3,325 $— $— $3,325 
__________________
(1)Included within fixed maturity securities.
(2)Included within payables for collateral under securities loaned and other transactions.
(3)
Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default,and is not reflected on the consolidated financial statements.
(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 liability by loaned security type and remaining tenor of the agreements was as follows at:collateral.
 September 30, 2017 December 31, 2016
 
Remaining Tenor of Securities
Lending Agreements
  
Remaining Tenor of Securities
Lending Agreements
  
 Open (1) 1 Month or Less 1 to 6 Months Total Open (1) 1 Month or Less 1 to 6 Months Total
 (In millions)
Cash collateral liability by loaned security type:               
U.S. government and agency$3,532
 $6,962
 $5,425
 $15,919
 $4,033
 $5,640
 $7,134
 $16,807
__________________
(1)The related loaned 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 securitiesinvestments to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securitiesinvestments in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at September 30, 2017 was $3.5 billion, all of which were U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.
The securities lending and repurchase agreements reinvestment portfolio acquired with the cash collateral consistedportfolios consist principally of high quality, liquid, publicly-traded fixed maturity securities (including agency RMBS, U.S. government and agency and ABS), short-term investments and cash equivalents with 68% invested in agency RMBS, U.S. government and agency securities,AFS, short-term investments, cash equivalents or held in cash. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of itswithin the general account are available to meet any potential cash demands when securities on loan are put back toby the Company.counterparty.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)

Repurchase Agreements
Elements of the short-term repurchase agreements are presented below at:
 September 30, 2017
 (In millions)
Securities on loan: (1) 
Amortized cost$1,879
Estimated fair value$2,000
Cash collateral received from counterparties (2)$1,960
Reinvestment portfolio — estimated fair value$1,972
__________________
(1)Included within fixed maturity securities.
(2)Included within payables for collateral under securities loaned and other transactions.
The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at:
 September 30, 2017
 Remaining Tenor of Repurchase Agreements  
 1 Month or Less Total
 (In millions)
Cash collateral liability by loaned security type: 
U.S. government and agency$1,960
 $1,960
The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, U.S. government and agency securities and ABS), short-term investments and cash equivalents with 68% invested in agency RMBS, U.S. government and agency securities, short-term investments, cash equivalents or held in cash. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company. There were no repurchase agreements outstanding at December 31, 2016.
Invested Assets on Deposit and Pledged as Collateral
Invested assets on deposit 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:
March 31, 2022December 31, 2021
(In millions)
Invested assets on deposit (regulatory deposits)$111 $118 
Invested assets pledged as collateral (1)21,329 20,390 
Total invested assets on deposit and pledged as collateral$21,440 $20,508 
 September 30, 2017 December 31, 2016
 (In millions)
Invested assets on deposit (regulatory deposits)$49
 $47
Invested assets pledged as collateral20,938
 20,750
Total invested assets on deposit and pledged as collateral$20,987

$20,797
__________________
(1)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements, secured debt (see Note 4Notes 3 and 11 of the Notes to the Consolidated Financial Statements included in the 20162021 Annual Report) and derivative transactions (see Note 6). Amounts in the table above include invested assets, and cash and cash equivalents. See Note 6.
See “— Securities Lending”Lending Transactions and “— Repurchase Agreements” for information regarding securities on loansupporting securities lending transactions and repurchase agreements and Note 4 for information regarding investments designated to the closed block.

In addition, the Company’s investment in Federal Home Loan Bank common stock, included within other invested assets, which is considered restricted until redeemed by the issuers, was $722 million and $718 million, at redemption value, at March 31, 2022 and December 31, 2021, respectively.
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)

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, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity.
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:
March 31, 2022December 31, 2021
September 30, 2017 December 31, 2016
Total
Assets
 
Total
Liabilities
 
Total
Assets
 
Total
Liabilities
Asset TypeAsset TypeTotal
Assets		Total
Liabilities		Total
Assets		Total
Liabilities
(In millions)(In millions)
Real estate joint ventures (1)$1,102
 $—
 $1,124
 $—
Real estate joint ventures (1)$1,057 $— $1,094 $— 
Renewable energy partnership (2)114
 —
 —
 —
Other investments (3)41
 6
 62
 12
Investment funds (primarily mortgage loans) (2)Investment funds (primarily mortgage loans) (2)143 — 226 — 
Other (primarily other invested assets and cash and cash equivalents)Other (primarily other invested assets and cash and cash equivalents)101 — 101 — 
Renewable energy partnership (primarily other invested assets)Renewable energy partnership (primarily other invested assets)80 1 79 — 
Total$1,257

$6

$1,186

$12
Total$1,381 $1 $1,500 $— 
__________________
(1)The Company’s investment in these affiliated real estate joint ventures was $1.0 billion at both September 30, 2017 and December 31, 2016. Other affiliates’ investments in these affiliated real estate joint ventures totaled $83 million and $85 million at September 30, 2017 and December 31, 2016,
(1)    The Company’s investment in affiliated real estate joint ventures was $947 million and $1.0 billion at March 31, 2022 and December 31, 2021, respectively. Other affiliates’ investments in these affiliated real estate joint ventures were $110 million and $112 million at March 31, 2022 and December 31, 2021, respectively.
(2)Assets of the renewable energy partnership, primarily consisting of other invested assets, were consolidated in prior periods. As a result of the Separation and a reassessment in the third quarter of 2017, the renewable energy partnership was determined to be a consolidated VIE.
(3)Other investments is primarily comprised of other invested assets and other limited partnership interests. The Company consolidates entities that are structured as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)

(2)The Company’s investment in affiliated investment funds was $120 million and $187 million at March 31, 2022 and December 31, 2021, respectively. Other affiliates’ investments in these affiliated investment funds were $23 million and $39 million at March 31, 2022 and December 31, 2021, respectively.
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:
March 31, 2022December 31, 2021
Asset TypeAsset TypeCarrying
Amount		Maximum
Exposure
to Loss (1)		Carrying
Amount		Maximum
Exposure
to Loss (1)
(In millions)
Fixed maturity securities AFS (2)Fixed maturity securities AFS (2)$43,313 $43,313 $43,653 $43,653 
September 30, 2017 December 31, 2016
Carrying
Amount
 
Maximum
Exposure
to Loss (1)
 
Carrying
Amount
 
Maximum
Exposure
to Loss (1)
(In millions)
Fixed maturity securities AFS:       
Structured Securities (2)$35,845
 $35,845
 $34,912
 $34,912
U.S. and foreign corporate1,162
 1,162
 1,167
 1,167
Other limited partnership interests3,490
 5,865
 3,383
 5,674
Other limited partnership interests7,669 10,514 8,005 11,057 
Other invested assets2,159
 2,570
 2,089
 2,666
Other invested assets1,547 1,751 1,605 1,815 
Real estate joint ventures70
 84
 81
 95
Real estate joint ventures94 97 97 100 
Total$42,726

$45,526

$41,632

$44,514
Total$52,623 $55,675 $53,360 $56,625 
__________________
(1)The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures 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 of $123 million and $150 million at September 30, 2017 and December 31, 2016, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.
(2)For these variable interests, 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.
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)
(1)The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures 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 of $6 million and $5 million at March 31, 2022 and December 31, 2021, respectively. 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.
As described in Note 11, 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 during bothfor either the ninethree months ended September 30, 2017 and 2016.March 31, 2022 or 2021.

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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)

Net Investment Income
The componentscomposition of net investment income wereby asset type was as follows:
Three Months 
 Ended 
 March 31,
Asset Type20222021
(In millions)
Fixed maturity securities AFS$1,501 $1,520 
Equity securities1 5 
Mortgage loans613 677 
Policy loans72 74 
Real estate and real estate joint ventures194 94 
Other limited partnership interests533 888 
Cash, cash equivalents and short-term investments4 3 
FVO Securities(29)26 
Operating joint venture16 17 
Other69 35 
Subtotal investment income2,974 3,339 
Less: Investment expenses148 152 
Net investment income$2,826 $3,187 
 Three Months 
 Ended 
September 30,		 Nine Months
Ended
September 30,
 2017 2016 2017 2016
 (In millions)
Investment income:       
Fixed maturity securities$1,764
 $1,907
 $5,274
 $5,803
Equity securities20
 19
 68
 65
Mortgage loans697
 630
 1,989
 1,930
Policy loans77
 104
 230
 311
Real estate and real estate joint ventures104
 159
 327
 366
Other limited partnership interests163
 154
 506
 274
Cash, cash equivalents and short-term investments20
 10
 54
 31
Operating joint venture6
 2
 12
 7
Other49
 67
 154
 136
Subtotal2,900
 3,052
 8,614

8,923
Less: Investment expenses240
 182
 659
 574
Net investment income$2,660
 $2,870
 $7,955

$8,349
Net investment income included realized and unrealized gains (losses) recognized in earnings of $18 million and $42 million for the three months ended March 31, 2022 and 2021, respectively. The amount includes realized gains (losses) on sales and disposals, primarily related to FVO Securities, of $0 and $22 million for the three months ended March 31, 2022 and 2021, respectively. The amount also includes unrealized gains (losses), representing changes in estimated fair value, recognized in earnings, primarily related to real estate joint ventures and FVO Securities, of $18 million and $20 million for the three months ended March 31, 2022 and 2021, respectively.
Changes in estimated fair value subsequent to purchase of equity-linked notes included within FVO Securities, still held at the end of the respective periods and included in net investment income were ($32) million and $6 million for the three months ended March 31, 2022 and 2021, respectively.
See “— Related Party Investment Transactions” for discussion of affiliated net investment income and investment expenses.


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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)

Net investment income from equity method investments, comprised primarily of real estate joint ventures, other limited partnership interests, tax credit and renewable energy partnerships and an operating joint venture, was $617 million and $859 million for the three months ended March 31, 2022 and 2021, respectively.
Net Investment Gains (Losses)
Components of Net Investment Gains (Losses) by Asset Type and Transaction Type
The componentscomposition of net investment gains (losses) wereby asset type and transaction type was as follows:
Three Months 
 Ended 
 March 31,
Asset Type20222021
(In millions)
Fixed maturity securities AFS$(302)$(23)
Equity securities3 19 
Mortgage loans23 61 
Real estate and real estate joint ventures (excluding changes in estimated fair value)4 48 
Other limited partnership interests (excluding changes in estimated fair value)3 (5)
Other gains (losses)17 29 
Subtotal(252)129 
Change in estimated fair value of other limited partnership interests and real estate joint ventures6 8 
Non-investment portfolio gains (losses)20 23 
Subtotal26 31 
Net investment gains (losses)$(226)$160 
Transaction Type
Realized gains (losses) on investments sold or disposed$(148)$45 
Impairments(33)— 
Recognized gains (losses):
Change in allowance for credit loss recognized in earnings(80)34 
Unrealized net gains (losses) recognized in earnings15 58 
Total recognized gains (losses)(246)137 
Non-investment portfolio gains (losses)20 23 
Net investment gains (losses)$(226)$160 
 Three Months 
 Ended 
September 30,		 Nine Months
Ended
September 30,
 2017 2016 2017 2016
 (In millions)
Total gains (losses) on fixed maturity securities:       
Total OTTI losses recognized — by sector and industry:       
U.S. and foreign corporate securities — by industry:       
Industrial$—
 $—
 $—
 $(58)
Communications—
 —
 —
 (3)
Consumer(5) —
 (5) —
Total U.S. and foreign corporate securities(5) —
 (5) (61)
State and political subdivision—
 —
 (1) —
RMBS—
 (9) —
 (14)
OTTI losses on fixed maturity securities recognized in earnings(5) (9) (6) (75)
Fixed maturity securities — net gains (losses) on sales and disposals1
 61
 41
 268
Total gains (losses) on fixed maturity securities(4) 52
 35

193
Total gains (losses) on equity securities:    
 
Total OTTI losses recognized — by sector:    
 
Common stock(4) (5) (16) (71)
Non-redeemable preferred stock—
 —
 (1) —
OTTI losses on equity securities recognized in earnings(4) (5) (17)
(71)
Equity securities — net gains (losses) on sales and disposals—
 7
 1
 21
Total gains (losses) on equity securities(4) 2
 (16)
(50)
Mortgage loans(16) (9) (44) (6)
Real estate and real estate joint ventures169
 20
 436
 28
Other limited partnership interests(30) (8) (44) (38)
Other21
 (14) (90) (44)
Subtotal136
 43
 277

83
FVO consolidated securitization entities:       
Securities—
 1
 —
 2
Non-investment portfolio gains (losses)(40) (2) (93) 30
Subtotal(40) (1) (93)
32
Total net investment gains (losses)$96
 $42
 $184

$115
Net realized investment gains (losses) of ($148) million and $67 million for the three months ended March 31, 2022 and 2021, respectively, represent realized gains (losses) on sales and disposals from all invested asset classes, including realized gains (losses) on sales and disposals recognized in net investment income, primarily related to FVO Securities.
Changes in estimated fair value subsequent to purchase of equity securities still held as of the end of the period included in net investment gains (losses) were $8 million and $20 million for the three months ended March 31, 2022 and 2021, respectively.
Other gains (losses) included $18 million and $29 million reclassified from AOCI to earnings due to the sale of certain investments that were hedged in qualifying cash flow hedges for the three months ended March 31, 2022 and 2021, respectively.
See “— Related Party Investment Transactions” for discussion of affiliated net investment gains (losses) related to transfers of invested assets to affiliates.
GainsNet investment gains (losses) includes gains (losses) from foreign currency transactions included within net investment gains (losses) were ($30)of $12 millionand ($139)$33 million for thethree months ended March 31, 2022 and nine months endedSeptember 30, 2017, respectively, and $1 millionand $24 millionfor thethree monthsand nine months endedSeptember 30, 2016,2021, respectively.

33
35
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)

Sales or Disposals and Impairments of Fixed Maturity Securities AFS and Equity Securities – Composition of Net Investment Gains (Losses)
Investment gains and losses on salesThe composition of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) werefor these securities is as shown in the table below.follows:
Three Months 
 Ended 
 March 31,
Fixed Maturity Securities AFS20222021
(In millions)
Proceeds$7,489 $7,087 
Gross investment gains$25 $74 
Gross investment (losses)(191)(82)
Realized gains (losses) on sales and disposals(166)(8)
Net credit loss (provision) release (change in ACL recognized in earnings)(103)(15)
Impairment (loss)(33)— 
Net credit loss (provision) release and impairment (loss)(136)(15)
Net investment gains (losses)$(302)$(23)
Equity Securities
Realized gains (losses) on sales and disposals$(7)$(28)
Unrealized net gains (losses) recognized in earnings10 47 
Net investment gains (losses)$3 $19 
 Three Months 
 Ended 
September 30,
 2017 2016 2017 2016
 Fixed Maturity Securities Equity Securities
 (In millions)
Proceeds$5,888
 $15,343
 $317
 $28
Gross investment gains$32
 $135
 $4
 $9
Gross investment losses(31) (74) (4) (2)
OTTI losses(5) (9) (4) (5)
Net investment gains (losses)$(4) $52
 $(4) $2

Nine Months
Ended
September 30,

2017
2016
2017
2016

Fixed Maturity Securities
Equity Securities

(In millions)
Proceeds$22,256

$41,425

$407

$85
Gross investment gains$225

$637

$9

$28
Gross investment losses(184)
(369)
(8)
(7)
OTTI losses(6)
(75)
(17)
(71)
Net investment gains (losses)$35

$193

$(16)
$(50)
Credit Loss Rollforward
The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in other comprehensive income (loss) (“OCI”):
 Three Months 
 Ended 
September 30,		 Nine Months
Ended
September 30,
 2017 2016 2017 2016
 (In millions)
Balance, beginning of period$136
 $171
 $157
 $188
Addition:       
Additional impairments — credit loss OTTI on securities previously impaired—
 8
 —
 11
Reduction:       
Sales (maturities, pay downs or prepayments) of securities previously
impaired as credit loss OTTI
(4) (10) (25) (30)
Balance, end of period$132
 $169
 $132

$169

34
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
5. Investments (continued)

Related Party Investment Transactions
The Company transfers invested assets primarily consisting of fixed maturity securities andAFS, mortgage loans and real estate and real estate joint ventures to and from affiliates. Invested assets transferred to and from affiliates were as follows:

Three Months 
 Ended 
September 30,		 Nine Months
Ended
September 30,		Three Months 
 Ended 
 March 31,
2017 2016 2017 201620222021
(In millions)(In millions)
Estimated fair value of invested assets transferred to affiliates$—
 $179
 $453
 $4,555
Estimated fair value of invested assets transferred to affiliates$189 $250 
Amortized cost of invested assets transferred to affiliates$—
 $169
 $416
 $4,297
Amortized cost of invested assets transferred to affiliates$191 $249 
Net investment gains (losses) recognized on transfers$—
 $10
 $37
 $258
Net investment gains (losses) recognized on transfers$(2)$1 
Estimated fair value of invested assets transferred from affiliates$—
 $51
 $293
 $150
Estimated fair value of invested assets transferred from affiliates$257 $479 
In January 2017,Recurring related party investments and related net investment income were as follows at and for the Company received transferred investments withperiods ended:
March 31, 2022December 31, 2021Three Months 
 Ended 
 March 31,
20222021
Investment Type/
Balance Sheet Category		Related PartyCarrying ValueNet Investment Income
(In millions)
Affiliated investments (1)MetLife, Inc.$1,346 $1,399 $6 $8 
Affiliated investments (2)American Life Insurance Company100 100 — 1 
Other invested assets$1,446 $1,499 $6 $9 
________________
(1)Represents an estimated fair value of $292 million,investment in affiliated senior unsecured notes which are included in the table above, in additionhave maturity dates from July 2023 to $275 million in cash relatedDecember 2031 and bear interest, payable semi-annually, at rates per annum ranging from 1.60% to the recapture of risks from minimum benefit guarantees on certain variable annuities previously reinsured by Brighthouse Life Insurance Company (“Brighthouse Insurance”)1.85%. See Note 12 for additional information related to the transfer.
Below is a summary of certain affiliated loans which are more fully described in Note 87 of the Notes ofto the Consolidated Financial Statements included in the 20162021 Annual Report.Report for further information.
(2)Represents an affiliated surplus note which matures in June 2025 and bears interest, payable semi-annually, at a rate per annum of 1.88%.
The Company had affiliated loans outstanding to MetLife, Inc., which are included in other invested assets, totaling $1.8 billion at both September 30, 2017 and December 31, 2016. Netincurred investment incomeadvisory charges from affiliated loans was$19 millionand $58 millionfor thethree monthsandnine months endedSeptember 30, 2017, respectively, and$23 millionand $70 millionfor thethree monthsandnine months endedSeptember 30, 2016, respectively.
As a structured settlements assignment company, the Company purchases annuities from Brighthouse to fund the periodic structured settlement claim payment obligations it assumes. Each annuity purchased is contractually designated to the assumed claim obligation it funds. The aggregate annuity contract values recorded, for which the Company has also recorded unpaid claim obligationsan affiliate of equal amounts, were $1.3 billion at both September 30, 2017 and December 31, 2016. The related net investment income and corresponding policyholder benefits and claims recognized were $18$68 million and $51$71 million for the three monthsandnine months endedSeptember 30, 2017, respectively, and$17 millionand$46 millionfor thethree monthsandnine months endedSeptember 30, 2016, respectively.
The Company holds a surplus note from American Life Insurance Company, an affiliate, which is included in other invested assets, with a carrying value of $100 million at both September 30, 2017 March 31, 2022 and December 31, 2016. Net investment income from this surplus note was $1 million and $3 million for both the three monthsandnine months endedSeptember 30, 2017, and thethree monthsandnine months endedSeptember 30, 2016.
The Company held preferred stock of Metropolitan Property and Casualty Insurance Company, an affiliate, which was included in other invested assets, with a carrying value of $315 million at both September 30, 2017 and December 31, 2016. Net investment income from the affiliated preferred stock dividends was $1 million and $4 million for both thethree monthsandnine months endedSeptember 30, 2017, and thethree monthsandnine months endedSeptember 30, 2016.
In March 2017, the Company purchased from Brighthouse Insurance an interest in an operating joint venture for $286 million, which was settled in cash in April 2017.
The Company provides investment administrative services to certain affiliates. The related investment administrative service charges to these affiliates were$18 millionand $54 millionfor thethree monthsandnine months endedSeptember 30, 2017, respectively, and$42 million and$127 millionfor thethree monthsandnine months endedSeptember 30, 2016,2021, respectively.
See “— Variable Interest Entities” for information on investments in affiliated real estate joint ventures.ventures and affiliated investment funds.

See “— Related Party Reinsurance Transactions” in Note12 for information about affiliated funds withheld.
35
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Derivatives
Accounting for 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 derivatives carrying value in other invested assets or other liabilities.
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 valueSee Note 1 of the derivative are reported in net derivative gains (losses) except as follows:
Statement of Operations Presentation:Derivative:
Policyholder benefits and claims• 
Economic hedges of variable annuity guarantees included in
future policy benefits
Net investment income• 
Economic hedges of equity method investments in joint
ventures
• All derivatives held in relation to trading portfolios
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 net derivative gains (losses), consistent with the change in estimated fair value of the hedged item attributable to the designated risk being hedged.
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) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses).
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.
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 and the method that will be used to measure ineffectiveness. 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 and measurements of ineffectiveness 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.

36
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. Derivatives (continued)

When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changesincluded in the estimated fair value or cash flows of2021 Annual Report for 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 valuedescription of the hedged recognized asset or liability under a fair value hedge is no longer adjustedCompany’s accounting policies for changes in its estimated fair value due to the hedged risk,derivatives and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item.
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 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 are recognized immediately in net derivative 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 sells variable annuities and issues certain insurance 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 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 generally 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. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees.
See Note 7 for information about the fair value hierarchy for derivatives.
Derivative Strategies
Types of Derivative Instruments and 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. Commonly used derivative instruments include, but are not limited to:    
Derivatives are financial instruments with values derived from•Interest rate derivatives: swaps, total return swaps, caps, floors, futures, swaptions, forwards and synthetic guaranteed interest rates, foreigncontracts (“GICs”);
•Foreign currency exchange rates, credit spreads and/rate derivatives: swaps and forwards;
•Credit derivatives: purchased or other financial indices. Derivatives may be exchange-tradedwritten single name 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 usesindex credit default swaps, and structured interest rateforwards; and
•Equity derivatives: index options, variance swaps, exchange-traded futures and total return swaps.        
For detailed information on these contracts and the related strategies, see Note 8 of the Notes to synthetically replicate investment risks and returns which are not readily availablethe Consolidated Financial Statements included in the cash markets.

2021 Annual Report.
37
36
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. Derivatives (continued)

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.
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 security. 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 the London Interbank Offered Rate (“LIBOR”), 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 and floors 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, as well as to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level, respectively. 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.
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.
To a lesser extent, the Company uses exchange-traded interest rate futures in nonqualifying hedging relationships.
Foreign Currency Exchange Rate Derivatives
The Company uses foreign currency exchange rate derivatives, including foreign currency swaps and foreign currency forwards, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies.
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 nonqualifying hedging relationships.

38
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. Derivatives (continued)

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, repudiation, moratorium, involuntary restructuring or governmental intervention. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. (“ISDA”) deems 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 securities, or other fixed maturity securities. 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.
Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the 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 offered 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, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. 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 offered 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 LIBOR, 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.

39
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. 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:
 September 30, 2017 December 31, 2016March 31, 2022December 31, 2021
 Primary Underlying Risk Exposure Gross
Notional
Amount		 Estimated Fair Value Gross
Notional
Amount		 Estimated Fair ValuePrimary Underlying Risk Exposure
Gross
Notional
Amount
Estimated Fair Value
Gross
Notional
Amount
Estimated Fair Value
 Assets Liabilities Assets LiabilitiesAssetsLiabilitiesAssetsLiabilities
 (In millions)(In millions)
Derivatives Designated as Hedging Instruments:Derivatives Designated as Hedging Instruments:            Derivatives Designated as Hedging Instruments:
Fair value hedges:            Fair value hedges:
Interest rate swaps Interest rate $3,942
 $2,305
 $3
 $4,993
 $2,221
 $6
Interest rate swapsInterest rate$4,239 $1,875 $121 $3,540 $2,163 $6 
Foreign currency swaps Foreign currency exchange rate 636
 44
 4
 1,200
 29
 224
Foreign currency swapsForeign currency exchange rate704 22 6 764 8 22 
Subtotal 4,578
 2,349
 7
 6,193
 2,250
 230
Subtotal4,943 1,897 127 4,304 2,171 28 
Cash flow hedges:            Cash flow hedges:
Interest rate swaps Interest rate 3,534
 307
 —
 1,793
 325
 26
Interest rate swapsInterest rate3,740 25 — 4,079 4 1 
Interest rate forwards Interest rate 3,413
 —
 203
 4,033
 —
 370
Interest rate forwardsInterest rate2,961 — 142 3,058 69 1 
Foreign currency swaps Foreign currency exchange rate 22,027
 936
 1,043
 20,080
 1,435
 1,604
Foreign currency swapsForeign currency exchange rate29,293 1,438 919 28,772 1,317 966 
Subtotal 28,974
 1,243
 1,246
 25,906
 1,760
 2,000
Subtotal35,994 1,463 1,061 35,909 1,390 968 
Total qualifying hedges 33,552
 3,592
 1,253
 32,099
 4,010
 2,230
Total qualifying hedges40,937 3,360 1,188 40,213 3,561 996 
Derivatives Not Designated or Not Qualifying as Hedging Instruments:Derivatives Not Designated or Not Qualifying as Hedging Instruments:            Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps Interest rate 43,155
 1,773
 328
 32,662
 2,514
 879
Interest rate swapsInterest rate19,097 2,615 296 21,565 3,206 59 
Interest rate floors Interest rate 7,201
 127
 —
 9,001
 173
 2
Interest rate floorsInterest rate7,451 66 — 7,701 145 — 
Interest rate caps Interest rate 73,018
 54
 2
 78,358
 112
 3
Interest rate capsInterest rate64,659 538 — 64,309 117 — 
Interest rate futures Interest rate 2,096
 2
 —
 2,342
 3
 —
Interest rate futuresInterest rate97 — — 515 — — 
Interest rate options Interest rate 7,525
 156
 35
 850
 144
 1
Interest rate optionsInterest rate10,653 407 — 9,703 364 — 
Interest rate forwards Interest rate —
 —
 —
 396
 —
 3
Interest rate forwardsInterest rate265 — 47 265 — 20 
Interest rate total return swaps Interest rate 1,048
 3
 9
 1,549
 2
 127
Interest rate total return swapsInterest rate1,048 — 118 1,048 9 4 
Synthetic GICs Interest rate 11,254
 —
 —
 5,566
 —
 —
Synthetic GICsInterest rate11,687 — — 11,307 — — 
Foreign currency swaps Foreign currency exchange rate 7,068
 644
 135
 8,175
 1,247
 58
Foreign currency swapsForeign currency exchange rate4,931 378 22 4,800 340 75 
Foreign currency forwards Foreign currency exchange rate 1,429
 37
 6
 1,396
 52
 18
Foreign currency forwardsForeign currency exchange rate2,034 15 13 1,902 11 13 
Credit default swaps — purchased Credit 878
 10
 7
 961
 12
 6
Credit default swaps — purchasedCredit952 37 6 956 12 8 
Credit default swaps — written Credit 8,031
 166
 1
 8,025
 119
 8
Credit default swaps — writtenCredit8,011 104 17 6,074 111 12 
Equity futures Equity market 1,712
 —
 6
 1,851
 10
 —
Equity futuresEquity market1,866 21 2 1,751 5 — 
Equity index options Equity market 6,773
 223
 496
 11,119
 260
 426
Equity index optionsEquity market25,218 675 236 26,800 714 166 
Equity variance swaps Equity market 5,579
 81
 228
 5,579
 69
 193
Equity variance swapsEquity market425 12 10 425 12 10 
Equity total return swaps Equity market 1,063
 —
 35
 1,013
 1
 42
Equity total return swapsEquity market2,183 21 9 2,148 11 46 
Total non-designated or nonqualifying derivativesTotal non-designated or nonqualifying derivatives 177,830
 3,276
 1,288
 168,843
 4,718
 1,766
Total non-designated or nonqualifying derivatives160,577 4,889 776 161,269 5,057 413 
Total $211,382
 $6,868
 $2,541
 $200,942
 $8,728
 $3,996
Total$201,514 $8,249 $1,964 $201,482 $8,618 $1,409 
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 September 30, 2017March 31, 2022 and December 31, 2016.2021. 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;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;relationship, (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income;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.

37
40
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. Derivatives (continued)

Net Derivative Gains (Losses)
The componentsEffects of net derivative gains (losses) were as follows:
 Three Months 
 Ended 
 September 30,		 Nine Months
Ended
September 30,
 2017 2016 2017 2016
 (In millions)
Freestanding derivatives and hedging gains (losses) (1)$(167) $(342) $(634) $947
Embedded derivatives gains (losses)141
 137
 317
 (1,509)
Total net derivative gains (losses)$(26) $(205) $(317) $(562)
__________________
(1)Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presented elsewhere in this note.
Derivatives on the Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
The following table presents earned incomethe interim condensed consolidated financial statement location and amount of gain (loss) recognized on fair value, cash flow, nonqualifying hedging relationships and embedded derivatives:
 Three Months 
 Ended 
 September 30,		 Nine Months
Ended
September 30,
 2017 2016 2017 2016
 (In millions)
Qualifying hedges:       
Net investment income$73
 $70
 $220
 $199
Interest credited to policyholder account balances(20) —
 (40) 7
Nonqualifying hedges:       
Net investment income—
 —
 —
 (1)
Net derivative gains (losses)93
 152
 327
 428
Policyholder benefits and claims2
 1
 4
 3
Total$148
 $223
 $511
 $636

Three Months Ended March 31, 2022
Net
Investment
Income		Net
Investment
Gains
(Losses)		Net
Derivative
Gains
(Losses)		Policyholder
Benefits and
Claims		Interest Credited to Policyholder Account BalancesOCI
(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)$4 $— $— $(449)$— N/A
Hedged items(4)— — 432 — N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)31 — — — — N/A
Hedged items(29)— — — — N/A
Subtotal2 — — (17)— N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCIN/AN/AN/AN/AN/A$(542)
Amount of gains (losses) reclassified from AOCI into income15 18 — — — (33)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCIN/AN/AN/AN/AN/A152 
Amount of gains (losses) reclassified from AOCI into income2 (77)— — — 75 
Foreign currency transaction gains (losses) on hedged items— 72 — — — — 
Subtotal17 13 — — — (348)
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)1 — (731)— — N/A
Foreign currency exchange rate derivatives (1)1 — 123 — — N/A
Credit derivatives — purchased (1)— — 31 — — N/A
Credit derivatives — written (1)— — (36)— — N/A
Equity derivatives (1)(7)— 105 78 — N/A
Foreign currency transaction gains (losses) on hedged items— — (63)— — N/A
Subtotal(5)— (571)78 — N/A
Earned income on derivatives85 — 136 51 (35)— 
Embedded derivatives (2)N/AN/A616 — N/AN/A
Total$99 $13 $181 $112 $(35)$(348)
41
38
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. Derivatives (continued)

Three Months Ended March 31, 2021
Net Investment IncomeNet Investment Gains (Losses)Net Derivative Gains (Losses)Policyholder Benefits and ClaimsInterest Credited to Policyholder Account BalancesOCI
(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)$3 $— $— $(602)$— N/A
Hedged items(3)— — 573 — N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)13 — — — — N/A
Hedged items(12)— — — — N/A
Subtotal1 — — (29)— N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCIN/AN/AN/AN/AN/A$(1,211)
Amount of gains (losses) reclassified from AOCI into income13 29 — — — (42)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCIN/AN/AN/AN/AN/A(49)
Amount of gains (losses) reclassified from AOCI into income1 (116)— — — 115 
Foreign currency transaction gains (losses) on hedged items— 110 — — — — 
Subtotal14 23 — — — (1,187)
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)2 — (1,545)— — N/A
Foreign currency exchange rate derivatives (1)— — 19 — — N/A
Credit derivatives — purchased (1)— — 12 — — N/A
Credit derivatives — written (1)— — (1)— — N/A
Equity derivatives (1)(1)— (557)(90)— N/A
Foreign currency transaction gains (losses) on hedged items— — (3)— — N/A
Subtotal1 — (2,075)(90)— N/A
Earned income on derivatives46 — 174 51 (39)— 
Embedded derivatives (2)N/AN/A886 — N/AN/A
Total$62 $23 $(1,015)$(68)$(39)$(1,187)
__________________
Nonqualifying Derivatives and Derivatives for Purposes Other Than Hedging(1)Excludes earned income on derivatives.
(2)The following table presents the amount and locationvaluation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) recognized in incomeconnection with this adjustment were ($15) million and ($18) million for derivatives that were not designated or not qualifying as hedging instruments:the three months ended March 31, 2022 and 2021, respectively.
 
Net
Derivative
Gains (Losses)
 
Net
Investment
Income (1)
 
Policyholder
Benefits and
Claims (2)
 (In millions)
Three Months Ended September 30, 2017     
Interest rate derivatives$(60) $(2) $—
Foreign currency exchange rate derivatives(238) —
 —
Credit derivatives — purchased(6) —
 —
Credit derivatives — written24
 —
 —
Equity derivatives(124) (2) (52)
Total$(404) $(4) $(52)
Three Months Ended September 30, 2016     
Interest rate derivatives$(305) $—
 $—
Foreign currency exchange rate derivatives65
 —
 —
Credit derivatives — purchased(13) —
 —
Credit derivatives — written36
 —
 —
Equity derivatives(231) (2) (62)
Total$(448) $(2) $(62)
Nine Months Ended September 30, 2017     
Interest rate derivatives$(260) $(2) $—
Foreign currency exchange rate derivatives(639) —
 —
Credit derivatives — purchased(14) —
 —
Credit derivatives — written80
 —
 —
Equity derivatives(442) (4) (149)
Total$(1,275) $(6) $(149)
Nine Months Ended September 30, 2016     
Interest rate derivatives$867
 $—
 $—
Foreign currency exchange rate derivatives275
 —
 —
Credit derivatives — purchased(31) —
 —
Credit derivatives — written38
 —
 —
Equity derivatives(304) (12) (57)
Total$845
 $(12) $(57)
__________________
(1)Changes in estimated fair value related to economic hedges of equity method investments in joint ventures and derivatives held in relation to trading portfolios.
(2)Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits.
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;liabilities and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities.liabilities.

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:
42
39
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. Derivatives (continued)

The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses):
Derivatives in Fair Value
Hedging Relationships
 
Hedged Items in Fair Value
Hedging Relationships
 
Net Derivative
Gains (Losses)
Recognized
for Derivatives
 
Net Derivative
Gains (Losses)
Recognized for
Hedged Items
 
Ineffectiveness
Recognized in
Net Derivative
Gains (Losses)

 
 (In millions)
Three Months Ended September 30, 2017      
Interest rate swaps: Fixed maturity securities $1
 $—
 $1
  Policyholder liabilities (1) (13) 12
 (1)
Foreign currency swaps: Foreign-denominated fixed maturity securities (8) 9
 1
  Foreign-denominated policyholder account balances (2) 15
 (16) (1)
Total $(5) $5
 $—
Three Months Ended September 30, 2016      
Interest rate swaps: Fixed maturity securities $5
 $(3) $2
  Policyholder liabilities (1) (47) 42
 (5)
Foreign currency swaps: Foreign-denominated fixed maturity securities 1
 (1) —
  Foreign-denominated policyholder account balances (2) (1) 1
 —
Total $(42) $39
 $(3)
Nine Months Ended September 30, 2017      
Interest rate swaps: Fixed maturity securities $2
 $(2) $—
  Policyholder liabilities (1) (15) 83
 68
Foreign currency swaps: Foreign-denominated fixed maturity securities (13) 14
 1
  Foreign-denominated policyholder account balances (2) 61
 (40) 21
Total $35
 $55
 $90
Nine Months Ended September 30, 2016      
Interest rate swaps: Fixed maturity securities $(3) $1
 $(2)
  Policyholder liabilities (1) 472
 (482) (10)
Foreign currency swaps: Foreign-denominated fixed maturity securities 5
 (4) 1
  Foreign-denominated policyholder account balances (2) (27) 24
 (3)
Total $447
 $(461) $(14)
Balance Sheet Line ItemCarrying Amount of the
Hedged
Assets/(Liabilities)		Cumulative Amount
of Fair Value Hedging Adjustments
Included in the Carrying Amount of Hedged
Assets/(Liabilities) (1)
March 31, 2022December 31, 2021March 31, 2022December 31, 2021
(In millions)
Fixed maturity securities AFS$349 $366 $— $(1)
Mortgage loans$514 $617 $(3)$3 
Future policy benefits$(4,352)$(4,735)$(437)$(877)
__________________
(1)Fixed rate liabilities reported in policyholder account balances or future policy benefits.
(2)Fixed rate or floating rate liabilities.
(1)Includes ($154) million and ($161) million of hedging adjustments on discontinued hedging relationships at March 31, 2022 and December 31, 2021, respectively.
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;liabilities, (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities;liabilities, (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments;investments, and (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments.

43
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. Derivatives (continued)

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 net derivative gains (losses).income. There were no0 such amounts reclassified from AOCI into net derivative gains (losses) for either the three months ended September 30, 2017. The amount reclassified from AOCI into net derivative gains (losses) was $20 million for the nine months ended September 30, 2017. These amounts were $7 million and $10 million for the three months and nine months ended September 30, 2016.March 31, 2022 or 2021.
At both September 30, 2017March 31, 2022 and December 31, 2016,2021, 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 fiveseven years.
At September 30, 2017March 31, 2022 and December 31, 2016,2021, the balance in AOCI associated with cash flow hedges was $1.6$2.0 billion and $2.2$2.4 billion, respectively.
The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and comprehensive income (loss) and the consolidated statements of equity:
Derivatives in Cash Flow
Hedging Relationships		 Amount of Gains
(Losses) Deferred in
AOCI on Derivatives		 Amount and Location
of Gains (Losses)
Reclassified from
AOCI into Income (Loss)		 Amount and Location
of Gains (Losses)
Recognized in Income
(Loss) on Derivatives
  (Effective Portion) (Effective Portion) (Ineffective Portion)
    Net Derivative
Gains (Losses)		 Net Investment
Income		 Net Derivative
Gains (Losses)
  (In millions)
Three Months Ended September 30, 2017        
Interest rate swaps $15
 $8
 $4
 $(2)
Interest rate forwards 2
 (1) 1
 —
Foreign currency swaps (37) 282
 (1) —
Credit forwards —
 —
 

 —
Total $(20) $289
 $4
 $(2)
Three Months Ended September 30, 2016        
Interest rate swaps $21
 $27
 $4
 $—
Interest rate forwards (6) 1
 —
 —
Foreign currency swaps 24
 69
 —
 (4)
Credit forwards —
 —
 —
 —
Total $39
 $97
 $4
 $(4)
Nine Months Ended September 30, 2017        
Interest rate swaps $90
 $22
 $12
 $5
Interest rate forwards 138
 (5) 2
 (1)
Foreign currency swaps (2) 882
 (1) 1
Credit forwards —
 1
 —
 —
Total $226
 $900
 $13
 $5
Nine Months Ended September 30, 2016        
Interest rate swaps $330
 $44
 $10
 $—
Interest rate forwards 34
 —
 2
 —
Foreign currency swaps 339
 169
 (1) (3)
Credit forwards —
 3
 —
 —
Total $703
 $216
 $11
 $(3)
All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

44
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. Derivatives (continued)

At September 30, 2017,March 31, 2022, the Company expected to reclassify ($3)$246 millionof deferred net gains (losses) on derivatives in AOCI to earnings within the next 12 months.
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 nonqualifyingeffects of derivatives on the interim condensed consolidated statements of operations and derivatives for purposes other than hedgingcomprehensive 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’s maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $8.0 billion at both September 30, 2017 and December 31, 2016. 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. At September 30, 2017 and December 31, 2016, the Company would have received $165 million and $111 million, respectively, to terminate all of these contracts.
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:
40
  September 30, 2017 December 31, 2016
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) $3
 $229
 2.2
 $1
 $229
 2.7
Credit default swaps referencing indices 42
 2,193
 3.0
 32
 2,093
 3.5
Subtotal 45
 2,422
 2.9
 33
 2,322
 3.4
Baa            
Single name credit default swaps (3) 5
 493
 1.6
 3
 563
 2.2
Credit default swaps referencing indices 96
 4,761
 5.4
 61
 4,730
 5.1
Subtotal 101
 5,254
 5.0
 64
 5,293
 4.8
Ba            
Single name credit default swaps (3) —
 105
 3.6
 (2) 115
 4.2
Credit default swaps referencing indices —
 —
 —
 —
 —
 —
Subtotal —
 105
 3.6
 (2) 115
 4.2
B            
Single name credit default swaps (3) 2
 30
 2.6
 —
 70
 1.8
Credit default swaps referencing indices 17
 220
 5.2
 16
 225
 5.0
Subtotal 19
 250
 4.9
 16
 295
 4.2
Total $165
 $8,031
 4.4
 $111
 $8,025
 4.4
__________________
(1)
The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”),Standard & Poor’s Global Ratings (“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 state and political subdivisions.

45
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. Derivatives (continued)

The Company has also entered intofollowing table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps to purchase credit protectionat:
March 31, 2022December 31, 2021
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)$— $10 2.2$— $10 2.5
Credit default swaps referencing indices22 1,918 3.217 1,191 2.5
Subtotal22 1,928 3.217 1,201 2.5
Baa
Single name credit default swaps (3)1 105 1.41 60 3.3
Credit default swaps referencing indices72 5,903 5.990 4,698 5.1
Subtotal73 6,008 5.891 4,758 5.1
Ba
Single name credit default swaps (3)— — — 1 65 0.5
Credit default swaps referencing indices1 45 4.7(1)20 5.0
Subtotal1 45 4.7— 85 1.5
Caa3
Credit default swaps referencing indices(9)30 4.2(9)30 4.5
Subtotal(9)30 4.2(9)30 4.5
Total$87 $8,011 5.2$99 $6,074 4.6
__________________
(1)The rating agency designations are based on certainavailability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), S&P Global Ratings (“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 obligations in the table above. As a result, the maximum amount of potential future recoveries available to offset the $8.0 billion from the table above was $30 million at both September 30, 2017 and December 31, 2016.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.
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 clearinghouses (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”).
41
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. 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 generally governed by ISDAInternational 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 is permitted(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. Substantially alltransactions 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.derivatives as required by applicable law. Additionally, effective September 1, 2021, 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 counterpartiesbrokers and central clearinghouses to such derivatives.
See Note 7 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:
March 31, 2022December 31, 2021
Derivatives Subject to a Master Netting Arrangement or a Similar ArrangementAssetsLiabilitiesAssetsLiabilities
(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)$8,201 $1,932 $8,602 $1,379 
OTC-cleared (1)130 21 104 8 
Exchange-traded21 2 5 — 
Total gross estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1)8,352 1,955 8,711 1,387 
Gross amounts not offset on the interim condensed consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral(1,929)(1,929)(1,364)(1,364)
OTC-cleared(16)(16)(3)(3)
Exchange-traded(2)(2)— — 
Cash collateral: (3), (4)
OTC-bilateral(5,161)— (6,414)— 
OTC-cleared(75)— (91)— 
Securities collateral: (5)
OTC-bilateral(996)(2)(767)(14)
OTC-cleared— (5)— (5)
Net amount after application of master netting agreements and collateral$173 $1 $72 $1 
__________________
(1)At March 31, 2022 and December 31, 2021, derivative assets included income (expense) accruals reported in accrued investment income or in other liabilities of $103 million and $93 million, respectively, and derivative liabilities included (income) expense accruals reported in accrued investment income or in other liabilities of ($9) million and ($22) million, respectively.
(2)Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.
46
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. Derivatives (continued)

(3)Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives, where the centralized 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.
(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 valuesvalue of derivatives after application of netting agreements. At March 31, 2022 and December 31, 2021, the Company received excess cash collateral of $155 million and $60 million, respectively, and provided no excess cash collateral.
(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 March 31, 2022, none of the Company’scollateral 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 derivative assets and net derivative liabilitiesestimated fair value of derivatives after the application of master netting agreements and cash collateral. At March 31, 2022 and December 31, 2021, the Company received excess securities collateral were as follows at:
  September 30, 2017 December 31, 2016
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement (1) Assets Liabilities Assets Liabilities
  (In millions)
Gross estimated fair value of derivatives:        
OTC-bilateral (1) $6,773
 $2,284
 $7,926
 $3,349
OTC-cleared (1), (6) 152
 218
 905
 611
Exchange-traded 2
 6
 13
 —
Total gross estimated fair value of derivatives (1) 6,927
 2,508
 8,844
 3,960
Amounts offset on the consolidated balance sheets —
 —
 —
 —
Estimated fair value of derivatives presented on the consolidated balance
 sheets (1), (6)
 6,927
 2,508
 8,844
 3,960
Gross amounts not offset on the consolidated balance sheets:        
Gross estimated fair value of derivatives: (2)        
OTC-bilateral (1,914) (1,914) (2,737) (2,737)
OTC-cleared (32) (32) (391) (391)
Exchange-traded —
 —
 —
 —
Cash collateral: (3), (4)        
OTC-bilateral (3,702) —
 (3,418) —
OTC-cleared (115) (181) (497) (217)
Exchange-traded —
 —
 —
 —
Securities collateral: (5)        
OTC-bilateral (1,092) (371) (1,560) (609)
OTC-cleared —
 (5) —
 —
Exchange-traded —
 (5) —
 —
Net amount after application of master netting agreements and collateral $72
 $—
 $241
 $6
__________________
(1)
At September 30, 2017 and December 31, 2016, derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $59 million and $116 million, respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of($33) millionand ($36) million, respectively.
(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 is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet.
(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 September 30, 2017 and December 31, 2016, the Company received excess cash collateral of $143 million and $77 million, respectively, and provided excess cash collateral of $4 million and $9 million, respectively, which iswith an estimated fair value of $38 million and $47 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)foregoing limitation. At March 31, 2022 and December 31, 2021, the Company provided excess securities collateral with an estimated fair value of $404 million and $95 million, respectively, for its OTC-bilateral derivatives, $611 million and $584 million, respectively, for its OTC-cleared derivatives, and $104 million and $106 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.
6. Derivatives (continued)

(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 September 30, 2017, none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities 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 September 30, 2017 and December 31, 2016, the Company received excess securities collateral with an estimated fair value of $81 million and $21 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At September 30, 2017 and December 31, 2016, the Company provided excess securities collateral with an estimated fair value of $179 million and $75 million, respectively, for its OTC-bilateral derivatives, and $307 million and $531 million, respectively, for its OTC-cleared derivatives, and $66 million and $116 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.
(6)Effective January 3, 2017, the CME amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See Note 1 for further information on the CME amendments.
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 partycounterparty reaches a minimum transfer amount. A small number of these arrangements also include financial strength or credit rating 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 credit ratings of Metropolitan Life Insurance Company and/or the credit ratings of the counterparty. In addition, substantially allAll of the Company’s netting agreements for derivatives contain provisions that require both Metropolitan Life Insurance Company and the counterparty to maintain a specific investment grade financial strength or credit rating from each of Moody’s and S&P. If a party’s financial strength or credit ratingsrating were to fall below that specific investment grade financial strength or 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 and payment based on such party’s reasonable valuation of the derivatives.

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.
Derivatives Subject to Financial
Strength-Contingent Provisions
March 31, 2022December 31, 2021
(In millions)
Estimated fair value of derivatives in a net liability position (1)$2 $15 
Estimated fair value of collateral provided:
Fixed maturity securities AFS$2 $17 
__________________
(1)After taking into consideration the existence of netting agreements.
48
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. Derivatives (continued)

The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that are 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. The table also presents the incremental collateral that Metropolitan Life Insurance Company would be required to provide if there was a one-notch downgrade in its financial strength or credit rating, as applicable, at the reporting date or if its financial strength or credit rating, as applicable, sustained a downgrade to a level that triggered full overnight collateralization or termination of the derivative position at the reporting date. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table.
  September 30, 2017 December 31, 2016
  
Derivatives
Subject to
Financial
Strength-
Contingent
Provisions
 
Derivatives
Not Subject
to Financial
Strength-
Contingent
Provisions
 Total 
Derivatives
Subject to
Financial
Strength-
Contingent
Provisions
 
Derivatives
Not Subject
to Financial
Strength-
Contingent
Provisions
 Total
  (In millions)
Estimated Fair Value of Derivatives in a Net
Liability Position (1)
 $371
 $—
 $371
 $612
 $—
 $612
Estimated Fair Value of Collateral Provided:            
Fixed maturity securities $465
 $—
 $465
 $684
 $—
 $684
Cash $—
 $—
 $��
 $—
 $—
 $—
Estimated Fair Value of Incremental Collateral
Provided Upon:
            
One-notch downgrade in financial strength or
credit rating, as applicable
 $—
 $—
 $—
 $—
 $—
 $—
Downgrade in financial strength or credit rating, as
applicable, to a level that triggers full overnight
collateralization or termination of the derivative
position
 $—
 $—
 $—
 $—
 $—
 $—
__________________
(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. These host contracts principally include: variable annuities with guaranteed minimum benefits, including GMWBs, GMABs and certain GMIBs; affiliated ceded reinsurance of guaranteed minimum benefits related to GMWBs, GMABs and certain GMIBs; affiliated assumed reinsurance of guaranteed minimum benefits related to GMWBs, GMABs and certain GMIBs; funds withheld on ceded reinsurance and affiliated funds withheld on ceded reinsurance; fixed annuities with equity indexed returns; and certain debt and equity securities.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
6. Derivatives (continued)

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:
Balance Sheet LocationMarch 31, 2022December 31, 2021
(In millions)
Embedded derivatives within asset host contracts:
Assumed on affiliated reinsuranceOther invested assets$18 $— 
Embedded derivatives within liability host contracts:
Direct guaranteed minimum benefitsPolicyholder account balances$159 $257 
Assumed guaranteed minimum benefitsPolicyholder account balances3 5 
Funds withheld and guarantees on reinsurance (including affiliated)Other liabilities586 1,072 
Fixed annuities with equity indexed returnsPolicyholder account balances154 165 
Embedded derivatives within liability host contracts$902 $1,499 

  Balance Sheet Location September 30, 2017 December 31, 2016
    (In millions)
Embedded derivatives within asset host contracts:      
Ceded guaranteed minimum benefits Premiums, reinsurance and other receivables $—
 $460
Options embedded in debt or equity securities Investments (119) (78)
Embedded derivatives within asset host contracts $(119) $382
Embedded derivatives within liability host contracts:      
Direct guaranteed minimum benefits Policyholder account balances $(31) $169
Assumed guaranteed minimum benefits Policyholder account balances 3
 390
Funds withheld on ceded reinsurance Other liabilities 906
 777
Fixed annuities with equity indexed returns Policyholder account balances 53
 17
Embedded derivatives within liability host contracts $931
 $1,353
The following table presents changes in estimated fair value related to embedded derivatives:
44
 Three Months 
 Ended 
 September 30,		 Nine Months
Ended
September 30,
 2017 2016 2017 2016
 (In millions)
Net derivative gains (losses) (1), (2)$141
 $137
 $317
 $(1,509)
__________________
(1)The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were ($17) million and ($39) million for the three months and nine months ended September 30, 2017, respectively, and ($47) million and $173 million for the three months and nine months ended September 30, 2016, respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. For the three months and nine months ended September 30, 2017, the Company did not have any ceded guaranteed minimum benefits. The amounts included in net derivative gains (losses) in connection with this adjustment were $9 million and ($64) million for the three months and nine months ended September 30, 2016, respectively.
(2)
See Note 12 for discussion of affiliated net derivative gains (losses).

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Fair Value
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.
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:
September 30, 2017March 31, 2022
Fair Value Hierarchy  Fair Value Hierarchy
Level 1 Level 2 Level 3 Total 
Estimated
Fair Value		Level 1Level 2Level 3
Total 
Estimated
Fair Value
(In millions)(In millions)
Assets       Assets
Fixed maturity securities:       
Fixed maturity securities AFS:Fixed maturity securities AFS:
U.S. corporate$—
 $52,694
 $4,783
 $57,477
U.S. corporate$— $47,109 $6,704 $53,813 
U.S. government and agency20,192
 19,916
 —
 40,108
U.S. government and agency12,842 15,198 — 28,040 
Foreign corporate—
 21,403
 3,964
 25,367
Foreign corporate— 20,441 7,236 27,677 
RMBS412
 20,637
 3,371
 24,420
RMBS106 19,739 2,703 22,548 
ABS—
 7,286
 419
 7,705
State and political subdivision—
 7,434
 1
 7,435
ABS & CLOABS & CLO— 11,992 1,522 13,514 
MunicipalsMunicipals— 7,784 — 7,784 
CMBS—
��5,329
 28
 5,357
CMBS— 6,432 341 6,773 
Foreign government—
 4,401
 14
 4,415
Foreign government— 4,376 13 4,389 
Total fixed maturity securities20,604
 139,100
 12,580
 172,284
Equity securities483
 943
 365
 1,791
Total fixed maturity securities AFSTotal fixed maturity securities AFS12,948 133,071 18,519 164,538 
Short-term investments2,467
 1,813
 402
 4,682
Short-term investments1,450 425 — 1,875 
Residential mortgage loans — FVO—
 —
 564
 564
Residential mortgage loans — FVO— — 119 119 
Other investmentsOther investments315 164 1,123 1,602 
Derivative assets: (1)       Derivative assets: (1)
Interest rate2
 4,722
 3
 4,727
Interest rate— 5,324 202 5,526 
Foreign currency exchange rate—
 1,661
 —
 1,661
Foreign currency exchange rate— 1,853 — 1,853 
Credit—
 137
 39
 176
Credit— 118 23 141 
Equity market—
 199
 105
 304
Equity market21 701 7 729 
Total derivative assets2
 6,719
 147
 6,868
Total derivative assets21 7,996 232 8,249 
Embedded derivatives within asset host contracts (3)—
 —
 —
 —
Separate account assets (3)23,832
 107,799
 1,039
 132,670
Total assets$47,388
 $256,374
 $15,097
 $318,859
Embedded derivatives within asset host contracts (4)Embedded derivatives within asset host contracts (4)— — 18 18 
Separate account assets (2)Separate account assets (2)20,579 85,406 1,942 107,927 
Total assets (3)Total assets (3)$35,313 $227,062 $21,953 $284,328 
Liabilities       Liabilities
Derivative liabilities: (1)       Derivative liabilities: (1)
Interest rate$—
 $368
 $212
 $580
Interest rate$— $535 $189 $724 
Foreign currency exchange rate—
 1,184
 4
 1,188
Foreign currency exchange rate— 960 — 960 
Credit—
 8
 —
 8
Credit— 9 14 23 
Equity market6
 531
 228
 765
Equity market2 255 — 257 
Total derivative liabilities6
 2,091
 444
 2,541
Total derivative liabilities2 1,759 203 1,964 
Embedded derivatives within liability host contracts (2)—
 —
 931
 931
Long-term debt—
 —
 —
 —
Separate account liabilities (3)1
 6
 2
 9
Embedded derivatives within liability host contracts (4)Embedded derivatives within liability host contracts (4)— — 902 902 
Separate account liabilities (2)Separate account liabilities (2)6 25 11 42 
Total liabilities$7
 $2,097
 $1,377
 $3,481
Total liabilities$8 $1,784 $1,116 $2,908 
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

December 31, 2016December 31, 2021
Fair Value Hierarchy  Fair Value Hierarchy
Level 1 Level 2 Level 3 Total 
Estimated
Fair Value		Level 1Level 2Level 3
Total
Estimated
Fair Value
(In millions)(In millions)
Assets       Assets
Fixed maturity securities:       
Fixed maturity securities AFS:Fixed maturity securities AFS:
U.S. corporate$—
 $51,303
 $4,855
 $56,158
U.S. corporate$— $51,290 $7,112 $58,402 
U.S. government and agency17,597
 18,018
 —
 35,615
U.S. government and agency15,041 16,181 — 31,222 
Foreign corporate—
 20,373
 3,984
 24,357
Foreign corporate— 21,862 7,823 29,685 
RMBS—
 19,719
 3,698
 23,417
RMBS7 20,333 2,805 23,145 
ABS—
 6,745
 759
 7,504
State and political subdivision—
 7,126
 10
 7,136
ABS & CLOABS & CLO— 11,455 1,424 12,879 
MunicipalsMunicipals— 8,728 — 8,728 
CMBS—
 4,851
 84
 4,935
CMBS— 6,507 371 6,878 
Foreign government—
 3,977
 21
 3,998
Foreign government— 4,934 12 4,946 
Total fixed maturity securities17,597
 132,112
 13,411
 163,120
Equity securities408
 1,011
 420
 1,839
Total fixed maturity securities AFSTotal fixed maturity securities AFS15,048 141,290 19,547 175,885 
Short-term investments2,945
 1,720
 25
 4,690
Short-term investments4,187 677 2 4,866 
Residential mortgage loans — FVO—
 —
 566
 566
Residential mortgage loans — FVO— — 127 127 
Other investmentsOther investments328 192 894 1,414 
Derivative assets: (1)       Derivative assets: (1)
Interest rate3
 5,489
 2
 5,494
Interest rate— 5,982 95 6,077 
Foreign currency exchange rate—
 2,763
 —
 2,763
Foreign currency exchange rate— 1,676 — 1,676 
Credit—
 101
 30
 131
Credit— 106 17 123 
Equity market10
 226
 104
 340
Equity market5 730 7 742 
Total derivative assets13
 8,579
 136
 8,728
Total derivative assets5 8,494 119 8,618 
Embedded derivatives within asset host contracts (2)—
 —
 460
 460
Separate account assets (3)27,633
 105,055
 1,148
 133,836
Total assets$48,596
 $248,477
 $16,166
 $313,239
Embedded derivatives within asset host contracts (4)Embedded derivatives within asset host contracts (4)— — — — 
Separate account assets (2)Separate account assets (2)28,231 93,656 1,964 123,851 
Total assets (3)Total assets (3)$47,799 $244,309 $22,653 $314,761 
Liabilities       Liabilities
Derivative liabilities: (1)       Derivative liabilities: (1)
Interest rate$—
 $917
 $500
 $1,417
Interest rate$— $70 $21 $91 
Foreign currency exchange rate—
 1,902
 2
 1,904
Foreign currency exchange rate— 1,076 — 1,076 
Credit—
 14
 —
 14
Credit— 8 12 20 
Equity market—
 468
 193
 661
Equity market— 222 — 222 
Total derivative liabilities—
 3,301
 695
 3,996
Total derivative liabilities— 1,376 33 1,409 
Embedded derivatives within liability host contracts (3)—
 —
 1,353
 1,353
Long-term debt—
 —
 74
 74
Separate account liabilities (3)—
 16
 7
 23
Embedded derivatives within liability host contracts (4)Embedded derivatives within liability host contracts (4)— — 1,499 1,499 
Separate account liabilities (2)Separate account liabilities (2)7 12 6 25 
Total liabilities$—
 $3,317
 $2,129
 $5,446
Total liabilities$7 $1,388 $1,538 $2,933 
__________________
(1)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.
(2)Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the consolidated balance sheets. At September 30, 2017 and December 31, 2016, debt and equity securities also included embedded derivatives of ($119) million and ($78) million, respectively.

(1)Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables.
(2)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.
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

(3)Total assets included in the fair value hierarchy exclude other limited partnership interests that are measured at estimated fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient. At March 31, 2022 and December 31, 2021, the estimated fair value of such investments was $99 million and $95 million, respectively.
(3)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.
(4)Embedded derivatives within asset host contracts are presented within other invested assets on the interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets.
The following describes the valuation methodologies used to measure assets and liabilities at fair value. The description includes the valuation techniques and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy.
Investments
Valuation Controls and Procedures
On behalf of the Company and MetLife, Inc.’s Chief Investment Officer and Chief Financial Officer, a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management, provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a quarterly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible, and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. This committee also provides oversight of the selection of independent third-party pricing providers and the controls and procedures to evaluate third-party pricing. Periodically, the Chief Accounting Officer reports to the Audit Committee of the Board of Directors of each of MetLife, Inc. and Metropolitan Life Insurance Company regarding compliance with fair value accounting standards.
The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management’s knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as “consensus pricing,” represent a reasonable estimate of fair value by considering such pricing relative to the Company’s knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent less than 1% of the total estimated fair value of fixed maturity securities and less than 1% of the total estimated fair value of Level 3 fixed maturity securities at September 30, 2017.
The Company also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value, which reflect internal estimates of liquidity and nonperformance risks, compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of the portfolio; accordingly, overrides were not material. This is, in part, because internal estimates of liquidity and nonperformance risks are generally based on available market evidence and estimates used by other market participants. In the absence of such market-based evidence, management’s best estimate is used.
Securities, Short-term Investments and Long-term DebtOther 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.

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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

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. Even though theseUnobservable inputs are unobservable, management believes they are consistent with what otherbased on management’s assumptions about the inputs market participants would use whenin pricing such securities and are considered appropriate given the circumstances.investments.
The estimated fair value of long-term debtshort-term investments and other investments is determined on a basis consistent with the methodologies described hereinherein.
The valuation approaches and key inputs for securities.
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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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)
Instrument
Level 2
Observable Inputs
Level 3
Unobservable Inputs
Fixed Maturity Securitiesmaturity 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 ratingratings•delta spread adjustments to reflect specific credit-related issues
•trades of identical or comparable securities; duration•credit spreads
•Privately-placedprivately-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
U.S. government and agency State and political subdivisionsecurities, Municipals and Foreign government securities
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 quotesquotations•credit spreads
•comparable securities that are actively traded
Structured SecuritiesProducts
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; debt-service coverage ratiosDSCR
•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

5448
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

Instrument
Level 2
Observable Inputs
Level 3
Unobservable Inputs
Equity Securities
Valuation Approaches: Principally the market approach.Valuation Approaches: Principally the marketShort-term investments 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
Short-termOther investments
•
Short-termCertain short-term investments and certain other investments are of a similar nature and class to the fixed maturity
and equity securities AFS described above; accordingly, thewhile certain other investments are similar to equity securities. The valuation
approaches and observable inputs used in their valuation are also
similar to those described above.
Other investments contain equity securities valued using quoted prices in markets that are not considered active.		•
Short-termCertain short-term investments and certain other investments are of a similar nature and class to the fixed
maturity andsecurities AFS described above, while certain other investments are similar to equity securities described above; accordingly,
thesecurities. The valuation approaches and unobservable inputs used in their
valuation are also similar to those described above.
Other investments contain equity securities that use key unobservable inputs such as credit ratings; issuance structures, in addition to those described above for fixed maturities AFS. Other investments also include certain real estate joint ventures and use the valuation approach and key inputs as described for other limited partnership interests below.
Residential mortgage loans — FVO
•N/A
Valuation Approaches: Principally the market approach.

Valuation Techniques and Key Inputs: These investments are based primarily on matrix pricing or other similar techniques that utilize inputs from mortgage servicers that are unobservable or cannot be derived principally from, or corroborated by, observable market data.

Separate Account Assetsaccount assets and Separate Account Liabilitiesaccount 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 Net Asset value (“NAV”)NAV provided by the fund managers
Other limited partnership interests
•

N/A
Valued giving consideration to the underlying holdings

of the partnerships and by applying a premium or discount,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
__________________
(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, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities, Short-term Investments and Long-term Debt” and “— Derivatives — Freestanding Derivatives.”
(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, other limited partnership interests, 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 valuation controls and procedures for derivatives are described in “— Investments.”
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. Certain OTC-bilateral and OTC-cleared derivatives 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. Even though unobservable, theseUnobservable inputs are based on management’s assumptions deemed appropriate givenabout the circumstances and management believes they are consistent with what otherinputs market participants would use whenin pricing such instruments.

derivatives.
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. 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 are 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.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:
InstrumentInterest Rate
Foreign Currency

Exchange Rate
CreditEquity 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)
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
•
independent non-binding
broker quotations
__________________
(1)Option-based only.
(2)Extrapolation beyond the observable limits of the curve(s).

(1)Option-based only.
(2)Extrapolation beyond the observable limits of the curve(s).
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

Embedded Derivatives
Embedded derivatives principally include certain direct assumed and cededassumed variable annuity guarantees, certain affiliated cededannuity contracts, guarantees on reinsurance, agreementsand investment risk within funds withheld related to such variable annuity guarantees, equity or bond indexed crediting rates within certain funding agreements and those related to funds withheld on ceded reinsurance agreements. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income.
The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the interim condensed consolidated balance sheets.
The Company’s actuarial departmentCompany calculates the fair value of these embedded derivatives, which areis estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projectsprojecting future cash flows from the embedded derivative 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.
The valuation of these guarantee liabilities includes nonperformance risk adjustments 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 as 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, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income.
The Company ceded the risk associated with certain of the GMIBs, GMABs and GMWBs previously described. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also ceded directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives) but where the reinsurance agreement contains an embedded derivative. These embedded derivatives are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer.
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 Long-term Debt.Other Investments.” The estimated fair value of guarantees related to reinsurance is determined based on multiple stochastic scenarios and includes a nonperformance risk adjustment. The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts,underlying host contracts, in other liabilities on the interim condensed 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 Company issues certain annuity contracts which allow the policyholder to participate in returns from equity indices. These equity indexed features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the interim condensed consolidated balance sheets.
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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

The estimated fair value of the embedded equity and bond indexed derivatives, containedbased 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 certain funding agreements is determined using market standard swapthose periods. The valuation models and observable market inputs, including a nonperformance risk adjustment. The estimated fair value of these embedded derivatives are included, along with their funding agreements host, within policyholder account balances withalso includes the establishment of a risk margin, as well as changes in estimated fair value recorded in net derivative gains (losses). Changes in equity and bond indices, interest rates and the Company’s credit standing may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income.nonperformance risk.
Embedded Derivatives Within Asset and Liability Host Contracts
Level 3 Valuation Approaches and Key Inputs:
Direct and assumed guaranteed minimum benefits
These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curves, currency exchange rates and implied volatilities. These embedded 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. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curves and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin.
Reinsurance ceded on certain guaranteed minimum benefits
These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct and assumed guaranteed minimum benefits” and also include counterparty credit spreads.
Embedded derivatives within funds withheld related to certain ceded reinsurance
These embedded derivatives are principally valued using the income approach. The valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curves and the fair value of assets within the reference portfolio. These embedded 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. Significant unobservable inputs generally include the fair value of certain assets within the reference portfolio which are not observable in the market and cannot be derived principally from, or corroborated by, observable market data.
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 any level are assumed to occur at the beginning of the period.
Transfers between Levels 1 and 2:
For assets and liabilities measured at estimated fair value and still held at September 30, 2017 and December 31, 2016, there were no transfers between Levels 1 and 2.
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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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. 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:
March 31, 2022December 31, 2021Impact of
Increase in Input
on Estimated
Fair Value (2)
 September 30, 2017 December 31, 2016 Impact of
Increase in Input
on Estimated
Fair Value (2)
Valuation
Techniques
Significant
Unobservable Inputs		RangeWeighted
Average (1)		RangeWeighted
Average (1)
Valuation
Techniques		 
Significant
Unobservable Inputs
 Range 
Weighted
Average (1)
 Range 
Weighted
Average (1)
 
Fixed maturity securities (3) 
Fixed maturity securities AFS (3)Fixed maturity securities AFS (3)
U.S. corporate and foreign corporate•Matrix pricing •Offered quotes (4) 21-140 108 18-138 106 IncreaseU.S. corporate and foreign corporate•Matrix pricing•Offered quotes (4)—-1471021-165110Increase
•Market pricing
•Quoted prices (4)
25-498
121
25-700
117
Increase•Market pricing•Quoted prices (4)—-10798—-117101Increase
RMBS•Market pricing •Quoted prices (4) 5-173 94 19-137 91 Increase (5)RMBS•Market pricing•Quoted prices (4)—-11996—-12199Increase (5)
ABS•Market pricing •Quoted prices (4) 28-104 100 20-106 99 Increase (5)
•Consensus pricing •Offered quotes (4) 99-100 99 98-100 100 Increase (5)
ABS & CLOABS & CLO•Market pricing•Quoted prices (4)89-1039891-110102Increase (5)
Derivatives Derivatives
Interest rate•Present value techniques •Swap yield (6) 200-300 200-300 Increase (7)Interest rate•Present value techniques•Swap yield (6)233-246242151-200188Increase (7)
 •Repurchase rates (8) —-8 (44)-18 Decrease (7)•Volatility (8)1%-2%1%1%-1%1%Increase (7)
Foreign currency exchange rate•Present value techniques •Swap yield (6) (24)-(1) 50-236 Increase (7)
Credit•Present value techniques •Credit spreads (9) 97-100 97-98 Decrease (7)Credit•Present value techniques•Credit spreads (9)95-13710896-133109Decrease (7)
•Consensus pricing •Offered quotes (10) •Consensus pricing•Offered quotes (10)
Equity market•
Present value
   techniques or
   option pricing
   models
 •Volatility (11) 9%-30% 14%-32% Increase (7)
 •Correlation (12) 10%-30% 40%-40% 
Embedded derivativesEmbedded derivatives Embedded derivatives
Direct, assumed and ceded
guaranteed minimum
benefits		•Option pricing
techniques		 •Mortality rates: 
Direct and assumed guaranteed minimum benefitsDirect and assumed guaranteed minimum benefits•Option pricing techniques•Mortality rates:
 Ages 0 - 40 0%-0.09% 0%-0.09% Decrease (13)Ages 0 - 400.01%-0.14%0.08%0.01%-0.12%0.08%Decrease (11)
 Ages 41 - 60 0.04%-0.65% 0.04%-0.65% Decrease (13)Ages 41 - 600.05%-0.65%0.27%0.05%-0.65%0.27%Decrease (11)
 Ages 61 - 115 0.26%-100% 0.26%-100% Decrease (13)Ages 61 - 1150.32%-100%2.07%0.32%-100%2.08%Decrease (11)
 •Lapse rates: •Lapse rates:
 Durations 1 - 10 0.25%-100% 0.25%-100% Decrease (14)Durations 1 - 100%-100%6.24%0.25%-100%6.30%Decrease (12)
 Durations 11 - 20 3%-100% 3%-100% Decrease (14)Durations 11 - 200.70%-100%5.18%0.70%-100%5.22%Decrease (12)
 Durations 21 - 116 3%-100% 3%-100% Decrease (14)Durations 21 - 1161.60%-100%5.18%1.60%-100%5.22%Decrease (12)
 •Utilization rates 0%-25% 0%-25% Increase (15)
 •Withdrawal rates 0.25%-10% 0.25%-10% (16)
 •Long-term equity
volatilities		 17.40%-25% 17.40%-25% Increase (17)
 •Nonperformance risk
spread		 0.03%-0.46% 0.04%-0.57% Decrease (18)
•Utilization rates0%-22%0.22%0%-22%0.22%Increase (13)
•Withdrawal rates0%-10%3.70%0.25%-10%3.72%(14)
•Long-term equity volatilities16.44%-22.16%18.60%16.44%-22.16%18.60%Increase (15)
•Nonperformance risk spread0.33%-0.69%0.35%0.04%-0.40%0.35%Decrease (16)
__________________
(1)The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities.
(2)The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, 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 result in substantially lower (higher) valuations.
(4)Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par.

(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 embedded derivatives 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 embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability 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.
59
53
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

(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.
(5)Changes in the assumptions used for the probability of default are 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.
(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)Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points.
(9)
(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)Ranges represent the underlying interest rate volatility quoted in percentage points. Since this valuation methodology uses an equivalent of LIBOR for secured overnight financing rate volatility, presenting a range is more representative of the unobservable input used in the valuation.
(9)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.
(10)At both September 30, 2017 and December 31, 2016, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.
(11)Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.
(12)Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations.
(13)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 embedded derivative.
(14)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 embedded derivative.
(15)The utilization rate assumption estimates the percentage of contractholders with a GMIB or 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 embedded derivative.
(16)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 embedded derivative. 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.
(17)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 embedded derivative.
(18)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 embedded derivative.

60
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

The following is a summary of the valuation techniques and significant unobservable inputs are primarily comprised of written credit default swaps.
(10)At both March 31, 2022 and December 31, 2021, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.
(11)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 embedded derivative.
(12)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 embedded derivative.
(13)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 embedded derivative.
(14)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 embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value measurementof the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.
(15)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 embedded derivative.
(16)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 embedded derivative.
Generally, all other classes of assets and liabilities classified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3, including those within separate account assets and embedded derivatives within funds withheld related to certain ceded reinsurance,table use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations. The residential mortgage loans — FVO and long-term debt are valued using independent non-binding broker quotations and internal models including matrix pricing and discounted cash flow methodologies using current interest rates.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 following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3):
54
  Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
  Fixed Maturity Securities  
  Corporate (1) 
U.S.
Government
and Agency
 
Structured
Securities
 State and
Political
Subdivision  		 Foreign
Government		 
Equity
Securities
  (In millions)
Three Months Ended September 30, 2017            
Balance, beginning of period $8,458
 $—
 $4,133
 $—
 $14
 $416
Total realized/unrealized gains (losses)
included in net income (loss) (2), (3)		 (4) —
 21
 —
 —
 —
Total realized/unrealized gains (losses)
included in AOCI		 121
 —
 17
 —
 —
 (3)
Purchases (4) 420
 —
 220
 —
 —
 4
Sales (4) (255) —
 (303) —
 —
 (52)
Issuances (4) —
 —
 —
 —
 —
 —
Settlements (4) —
 —
 —
 —
 —
 —
Transfers into Level 3 (5) 117
 —
 —
 1
 —
 —
Transfers out of Level 3 (5) (110) —
 (270) —
 —
 —
Balance, end of period $8,747
 $—
 $3,818
 $1
 $14
 $365
Three Months Ended September 30, 2016            
Balance, beginning of period $8,904
 $175
 $4,415
 $28
 $65
 $456
Total realized/unrealized gains (losses)
included in net income (loss) (2), (3)		 9
 —
 25
 —
 —
 4
Total realized/unrealized gains (losses)
included in AOCI		 66
 —
 23
 3
 —
 (12)
Purchases (4) 431
 98
 702
 —
 17
 4
Sales (4) (407) —
 (294) —
 (1) (11)
Issuances (4) —
 —
 —
 —
 —
 —
Settlements (4) —
 —
 —
 —
 —
 —
Transfers into Level 3 (5) 331
 —
 36
 7
 —
 1
Transfers out of Level 3 (5) (139) (2) (159) —
 (10) (5)
Balance, end of period $9,195
 $271
 $4,748
 $38
 $71
 $437
Changes in unrealized gains (losses) included
in net income (loss) for the instruments still
held at September 30, 2017 (6)
 $(3) $—
 $21
 $—
 $—
 $(2)
Changes in unrealized gains (losses) included
in net income (loss) for the instruments still
held at September 30, 2016 (6)
 $1
 $—
 $26
 $—
 $—
 $—

61
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. 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)Structured
Products		Foreign
Government		Short-term
Investments
 (In millions)
Three Months Ended March 31, 2022
Balance, beginning of period$14,935 $4,600 $12 $2 
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)(15)12 — — 
Total realized/unrealized gains (losses) included in 
AOCI
(1,114)(160)(1)— 
Purchases (3)528 473 2 — 
Sales (3)(382)(187)— (2)
Issuances (3)— — — — 
Settlements (3)— — — — 
Transfers into Level 3 (4)307 102 — — 
Transfers out of Level 3 (4)(319)(274)— — 
Balance, end of period$13,940 $4,566 $13 $— 
Three Months Ended March 31, 2021
Balance, beginning of period$14,873 $4,465 $5 $1 
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)(6)9 — — 
Total realized/unrealized gains (losses) included in 
AOCI
(634)(16)(1)— 
Purchases (3)343 362 3 31 
Sales (3)(223)(332)— — 
Issuances (3)— — — — 
Settlements (3)— — — — 
Transfers into Level 3 (4)226 13 — 5 
Transfers out of Level 3 (4)(331)(11)— — 
Balance, end of period$14,248 $4,490 $7 $37 
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held
at March 31, 2022 (5)
$(15)$12 $— $— 
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held
at March 31, 2021 (5)
$(7)$7 $— $— 
Changes in unrealized gains (losses) included in AOCI for the instruments still held
at March 31, 2022 (5)
$(1,120)$(160)$(1)$— 
Changes in unrealized gains (losses) included in AOCI for the instruments still held
at March 31, 2021 (5)
$(632)$(14)$(1)$— 
55
  Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
  
Short-term
Investments
 
Residential
Mortgage
Loans - FVO
 
Net
Derivatives (7)
 
Net Embedded
Derivatives (8)
 
Separate
Accounts (9)
 
Long-term
Debt
  (In millions)
Three Months Ended September 30, 2017            
Balance, beginning of period $821
 $615
 $(277) $(1,008) $975
 $(19)
Total realized/unrealized gains (losses)
included in net income (loss) (2), (3)		 —
 32
 (5) 131
 6
 —
Total realized/unrealized gains (losses)
included in AOCI		 —
 —
 1
 —
 —
 —
Purchases (4) —
 10
 —
 —
 136
 —
Sales (4) (247) (72) —
 —
 (35) —
Issuances (4) —
 —
 —
 —
 1
 —
Settlements (4) —
 (21) (16) (54) (1) 19
Transfers into Level 3 (5) 2
 —
 —
 —
 56
 —
Transfers out of Level 3 (5) (174) —
 —
 —
 (101) —
Balance, end of period $402
 $564
 $(297) $(931) $1,037
 $—
Three Months Ended September 30, 2016            
Balance, beginning of period $—
 $449
 $102
 $(1,508) $1,485
 $(44)
Total realized/unrealized gains (losses)
included in net income (loss) (2), (3)		 —
 10
 (44) 119
 (25) —
Total realized/unrealized gains (losses)
included in AOCI		 —
 —
 (8) —
 —
 —
Purchases (4) 187
 42
 —
 —
 4
 —
Sales (4) (1) (5) —
 —
 (25) —
Issuances (4) —
 —
 (1) —
 30
 —
Settlements (4) —
 (15) (10) (57) (45) 2
Transfers into Level 3 (5) —
 —
 —
 —
 8
 —
Transfers out of Level 3 (5) —
 —
 —
 —
 (178) —
Balance, end of period $186
 $481
 $39
 $(1,446) $1,254
 $(42)
Changes in unrealized gains (losses) included
in net income (loss) for the instruments still
held at September 30, 2017 (6)
 $—
 $32
 $(9) $59
 $—
 $—
Changes in unrealized gains (losses) included
in net income (loss) for the instruments still
held at September 30, 2016 (6)
 $—
 $10
 $(33) $119
 $—
 $—

62
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

 Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 Residential
Mortgage
Loans - FVO
Other
 Investments
Net
Derivatives (7)		Net Embedded
Derivatives (8)
Separate
Accounts (9) 
 (In millions)
Three Months Ended March 31, 2022
Balance, beginning of period$127 $894 $86 $(1,499)$1,958 
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)(3)44 67 616 5 
Total realized/unrealized gains (losses) included in 
AOCI
— — (212)— — 
Purchases (3)— 188 88 — 288 
Sales (3)— (1)— — (316)
Issuances (3)— — (2)— 1 
Settlements (3)(5)— 2 (1)(2)
Transfers into Level 3 (4)— — — — 1 
Transfers out of Level 3 (4)— (2)— — (4)
Balance, end of period$119 $1,123 $29 $(884)$1,931 
Three Months Ended March 31, 2021
Balance, beginning of period$165 $565 $452 $(2,061)$939 
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)(2)34 (236)886 (10)
Total realized/unrealized gains (losses) included in 
AOCI
— — (603)— — 
Purchases (3)— 2 — — 79 
Sales (3)(9)(2)— — (14)
Issuances (3)— — — — (1)
Settlements (3)(5)— 107 (41)2 
Transfers into Level 3 (4)— 74 1 — — 
Transfers out of Level 3 (4)— — 2 — (3)
Balance, end of period$149 $673 $(277)$(1,216)$992 
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held
at March 31, 2022 (5)
$(4)$45 $66 $617 $— 
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held
at March 31, 2021 (5)
$(5)$35 $(150)$885 $— 
Changes in unrealized gains (losses) included in AOCI for the instruments still held
at March 31, 2022 (5)
$— $— $(207)$— $— 
Changes in unrealized gains (losses) included in AOCI for the instruments still held
at March 31, 2021 (5)
$— $— $(538)$— $— 
__________________
(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 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).
(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.
56
  Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
  Fixed Maturity Securities  
  Corporate (1) 
U.S.
Government
and Agency
 
Structured
Securities
 State and
Political
Subdivision  		 Foreign
Government		 
Equity
Securities
  (In millions)
Nine Months Ended September 30, 2017            
Balance, beginning of period $8,839
 $—
 $4,541
 $10
��$21
 $420
Total realized/unrealized gains (losses)
included in net income (loss) (2), (3)		 5
 —
 76
 —
 —
 (14)
Total realized/unrealized gains (losses)
included in AOCI		 394
 —
 94
 —
 —
 27
Purchases (4) 1,853
 —
 465
 —
 —
 10
Sales (4) (1,229) —
 (1,038) —
 (1) (74)
Issuances (4) —
 —
 —
 —
 —
 —
Settlements (4) —
 —
 —
 —
 —
 —
Transfers into Level 3 (5) 58
 —
 10
 1
 —
 —
Transfers out of Level 3 (5) (1,173) —
 (330) (10) (6) (4)
Balance, end of period $8,747
 $—
 $3,818
 $1
 $14
 $365
Nine Months Ended September 30, 2016            
Balance, beginning of period $8,282
 $—
 $4,416
 $33
 $275
 $328
Total realized/unrealized gains (losses)
included in net income (loss) (2), (3)		 1
 —
 73
 1
 —
 (21)
Total realized/unrealized gains (losses)
included in AOCI		 633
 13
 (19) 2
 (1) 38
Purchases (4) 1,155
 98
 1,726
 —
 18
 20
Sales (4) (717) —
 (966) —
 (1) (15)
Issuances (4) —
 —
 —
 —
 —
 —
Settlements (4) —
 —
 —
 —
 —
 —
Transfers into Level 3 (5) 589
 160
 4
 7
 —
 282
Transfers out of Level 3 (5) (748) —
 (486) (5) (220) (195)
Balance, end of period $9,195
 $271
 $4,748
 $38
 $71
 $437
Changes in unrealized gains (losses) included
in net income (loss) for the instruments still
held at September 30, 2017 (6)
 $(1) $—
 $66
 $—
 $—
 $(12)
Changes in unrealized gains (losses) included
in net income (loss) for the instruments still
held at September 30, 2016 (6)
 $3
 $—
 $76
 $1
 $—
 $(26)


63
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

(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.
 Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
Short-term
Investments
 
Residential
Mortgage
Loans - FVO
 
Net
Derivatives (7)
 
Net Embedded
Derivatives (8)
 
Separate
Accounts (9)
 
Long-term
Debt
 (In millions)
Nine Months Ended September 30, 2017           
Balance, beginning of period$25
 $566
 $(559) $(893) $1,141
 $(74)
Total realized/unrealized gains (losses)
included in net income (loss) (2), (3)		—
 38
 7
 343
 (22) —
Total realized/unrealized gains (losses)
included in AOCI		—
 —
 136
 —
 —
 —
Purchases (4)400
 184
 —
 —
 269
 —
Sales (4)—
 (155) —
 —
 (78) —
Issuances (4)—
 —
 —
 —
 1
 —
Settlements (4)—
 (69) 119
 (381) (62) 34
Transfers into Level 3 (5)2
 —
 —
 —
 21
 —
Transfers out of Level 3 (5)(25) —
 —
 —
 (233) 40
Balance, end of period$402
 $564
 $(297) $(931) $1,037
 $—
Nine Months Ended September 30, 2016           
Balance, beginning of period$200
 $314
 $(23) $186
 $1,520
 $(36)
Total realized/unrealized gains (losses)
included in net income (loss) (2), (3)		—
 22
 63
 (1,476) 7
 —
Total realized/unrealized gains (losses)
included in AOCI		—
 —
 27
 —
 —
 —
Purchases (4)187
 187
 6
 —
 107
 —
Sales (4)(199) (12) —
 —
 (64) —
Issuances (4)—
 —
 (1) —
 28
 (11)
Settlements (4)—
 (30) (33) (156) (57) 5
Transfers into Level 3 (5)—
 —
 —
 —
 9
 —
Transfers out of Level 3 (5)(2) —
 —
 —
 (296) —
Balance, end of period$186
 $481
 $39
 $(1,446) $1,254
 $(42)
Changes in unrealized gains (losses) included
in net income (loss) for the instruments still
held at September 30, 2017 (6)
$—
 $38
 $(19) $343
 $—
 $—
Changes in unrealized gains (losses) included
in net income (loss) for the instruments still
held at September 30, 2016 (6)
$—
 $22
 $66
 $(1,470) $—
 $—
__________________
(1)Comprised of U.S. and foreign corporate securities.
(2)Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of 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 derivatives gains (losses).
(3)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.
(4)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.
(5)Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.
(6)Changes in unrealized gains (losses) included in net income (loss) 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).
(7)Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.

64
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

(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 investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward.
Fair Value Option
The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. The following table presents information for residential mortgage loans which are accounted for under the FVO and were initially measured at fair value.
March 31, 2022December 31, 2021
(In millions)
Unpaid principal balance$119 $130 
Difference between estimated fair value and unpaid principal balance— (3)
Carrying value at estimated fair value$119 $127 
Loans in nonaccrual status$27 $32 
Loans more than 90 days past due$13 $14 
Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance$— $(7)
 September 30, 2017 December 31, 2016
 (In millions)
Unpaid principal balance$711
 $794
Difference between estimated fair value and unpaid principal balance(147) (228)
Carrying value at estimated fair value$564
 $566
Loans in nonaccrual status$213
 $214
Loans more than 90 days past due$106
 $137
Loans in nonaccrual status or more than 90 days past due, or both - difference between aggregate estimated fair value and unpaid principal balance$(121) $(150)
The following table presents information for long-term debt, which is accounted for under the FVO, and was initially measured at fair value.
  September 30, 2017 December 31, 2016
  (In millions)
Contractual principal balance $—
 $71
Difference between estimated fair value and contractual
principal balance
 —
 3
Carrying value at estimated fair value (1) $—
 $74
__________________
(1)Changes in estimated fair value are recognized in net investment gains (losses). Interest expense is recognized in other expenses.
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 levelthree-level hierarchy table disclosed in the “— Recurring Fair Value Measurements” section. The estimated fair valueCompany believes that due to the short-term nature of thethese excluded financial instruments,assets, which are primarily classified in Level 2, the estimated fair value approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality.value. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure.

6557
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

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:
March 31, 2022
Fair Value Hierarchy
Carrying
Value		Level 1Level 2Level 3Total
Estimated
Fair Value
(In millions)
Assets
Mortgage loans (1)$59,545 $— $— $60,086 $60,086 
Policy loans$5,766 $— $— $6,476 $6,476 
Other invested assets$2,181 $— $2,238 $— $2,238 
Premiums, reinsurance and other receivables$12,080 $— $212 $12,227 $12,439 
Liabilities
Policyholder account balances$79,081 $— $— $79,764 $79,764 
Long-term debt$1,660 $— $1,854 $— $1,854 
Other liabilities$12,628 $— $499 $12,266 $12,765 
Separate account liabilities$44,551 $— $44,551 $— $44,551 
 September 30, 2017
   Fair Value Hierarchy  
 Carrying
Value		 Level 1 Level 2 Level 3 Total
Estimated
Fair Value
 (In millions)
Assets         
Mortgage loans$57,490
 $—
 $—
 $59,149
 $59,149
Policy loans$5,985
 $—
 $259
 $6,769
 $7,028
Real estate joint ventures$2
 $—
 $—
 $11
 $11
Other limited partnership interests$234
 $—
 $—
 $239
 $239
Other invested assets$2,260
 $—
 $2,051
 $159
 $2,210
Premiums, reinsurance and other
receivables
$15,036
 $—
 $643
 $14,895
 $15,538
Liabilities         
Policyholder account balances$75,498
 $—
 $—
 $76,953
 $76,953
Long-term debt$1,673
 $—
 $2,037
 $—
 $2,037
Other liabilities$15,520
 $—
 $2,070
 $13,553
 $15,623
Separate account liabilities$63,481
 $—
 $63,481
 $—
 $63,481

December 31, 2021
Fair Value Hierarchy
Carrying
Value		Level 1Level 2Level 3Total
Estimated
Fair Value
(In millions)
Assets
Mortgage loans (1)$60,092 $— $— $63,094 $63,094 
Policy loans$5,816 $— $— $6,710 $6,710 
Other invested assets$2,230 $— $1,932 $356 $2,288 
Premiums, reinsurance and other
receivables
$12,101 $— $156 $12,375 $12,531 
Liabilities
Policyholder account balances$76,387 $— $— $79,182 $79,182 
Long-term debt$1,659 $— $2,000 $— $2,000 
Other liabilities$12,357 $— $159 $12,412 $12,571 
Separate account liabilities$54,254 $— $54,254 $— $54,254 
 December 31, 2016
   Fair Value Hierarchy  
 Carrying
Value		 Level 1 Level 2 Level 3 Total
Estimated
Fair Value
 (In millions)
Assets         
Mortgage loans$55,994
 $—
 $—
 $57,171
 $57,171
Policy loans$5,945
 $—
 $258
 $6,695
 $6,953
Real estate joint ventures$4
 $—
 $—
 $26
 $26
Other limited partnership interests$336
 $—
 $—
 $362
 $362
Other invested assets$2,263
 $—
 $2,151
 $151
 $2,302
Premiums, reinsurance and other
receivables
$14,888
 $—
 $368
 $15,421
 $15,789
Liabilities         
Policyholder account balances$72,944
 $—
 $—
 $74,052
 $74,052
Long-term debt$1,503
 $—
 $1,755
 $—
 $1,755
Other liabilities$14,731
 $—
 $894
 $13,920
 $14,814
Separate account liabilities$65,545
 $—
 $65,545
 $—
 $65,545
_________________
The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows:
Mortgage Loans
The estimated fair value of(1)Includes mortgage loans is primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk, or is determined from pricing for similar loans.

66
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

Policy Loans
Policy loans with fixed interest rates are classified within Level 3. The estimated fair values for these loans are determined using a discounted cash flow model applied to groups of similar policy loans determined by the nature of the underlying insurance liabilities. Cash flow estimates are developed by applying a weighted-average interest rate to the outstanding principal balance of the respective group of policy loans and an estimated average maturity determined through experience studies of the past performance of policyholder repayment behavior for similar loans. These cash flows are discounted using current risk-free interest rates with no adjustment for borrower credit risk, as these loans are fully collateralized by the cash surrender value of the underlying insurance policy. Policy loans with variable interest rates are classified within Level 2 and the estimated fair value approximates carrying value due to the absence of borrower credit risk and the short time period between interest rate resets, which presents minimal risk of a material change in estimated fair value due to changes in market interest rates.
Real Estate Joint Ventures and Other Limited Partnership Interests
The estimated fair values of these cost method investments are generally based on the Company’s share of the NAV as provided on the financial statements of the investees. In certain circumstances, management may adjust the NAV by a premium or discount when it has sufficient evidence to support applying such adjustments.
Other Invested Assets
These other invested assets are principally comprised of loans to affiliates. The estimated fair value of loans to affiliates is determined by discounting the expected future cash flows using market interest rates currently available for instruments with similar terms and remaining maturities.
Premiums, Reinsurance and Other Receivables
Premiums, reinsurance and other receivables are principally comprised of certain amounts recoverable under reinsurance agreements, amounts on deposit with financial institutions to facilitate daily settlements related to certain derivatives and amounts receivable for securities sold but not yet settled.
Amounts recoverable under ceded reinsurance agreements, which the Company has determined do not transfer significant risk such that they are accounted for using the deposit method of accounting, have been classified as Level 3. The valuation is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using interest rates determined to reflect the appropriate credit standing of the assuming counterparty.
The amounts on deposit for derivative settlements, classified within Level 2, essentially represent the equivalent of demand deposit balances and amounts due for securities sold are generally received over short periods such that the estimated fair value approximates carrying value.
Policyholder Account Balances
These policyholder account balances include investment contracts which primarily include certain funding agreements, fixed deferred annuities, modified guaranteed annuities, fixed term payout annuities and total control accounts (“TCA”). The valuation of these investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates adding a spread to reflect the nonperformance risk in the liability.
Long-term Debt
The estimated fair value of long-term debt is principally determined using market standard valuation methodologies.
Valuations of instruments are based primarily on quoted prices in markets that are not active or using matrix pricing that use standard market observable inputs such as quoted prices in markets that are not active and observable yields and spreads in the market. Instruments valued using discounted cash flow methodologies use standard market observable inputs including market yield curve, duration, call provisions, observable prices and spreads for similar publicly traded or privately traded issues.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
7. Fair Value (continued)

Other Liabilities
Other liabilities consist primarily of amounts due for securities purchased but not yet settled, funds withheld amounts payable, which are contractually withheld by the Company in accordance with the terms of the reinsurance agreements, and amounts payable under certain assumed reinsurance agreements, which are recorded using the deposit method of accounting. The Company evaluates the specific terms, facts and circumstances of each instrument to determine the appropriate estimated fair values, which are not materially different from the carrying values, with the exception of certain deposit type reinsurance payables. For such payables, the estimated fair value is determined as the present value of expected future cash flows, which are discounted using an interest rate determined to reflect the appropriate credit standing of the assuming counterparty.
Separate Account Liabilities
Separate account liabilities represent those balances due to policyholders under contracts that are classified as investment contracts.
Separate account liabilities classified as investment contracts primarily represent variable annuities with no significant mortality risk to the Company such that the death benefit is equal to the account balance, funding agreements related to group life contracts and certain contracts that provide for benefit funding.
Since separate account liabilities are fully funded by cash flows from the separate account assets which are recognizedmeasured at estimated fair value as described in the section “— Recurring Fair Value Measurements,” the value of those assets approximates theon a nonrecurring basis and excludes mortgage loans measured at estimated fair value of the related separate account liabilities. The valuation techniques and inputs for separate account liabilities are similar to those described for separate account assets.

on a recurring basis.
68
58
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Equity
Accumulated Other Comprehensive Income (Loss)
Information regarding changes in the balances of each component of AOCI attributable to Metropolitan Life Insurance Company was as follows:
Three Months
Ended
March 31, 2022
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)		Unrealized
Gains (Losses)
on Derivatives		Foreign
Currency
Translation
Adjustments		Defined
Benefit
Plans
Adjustment		Total
(In millions)
Balance, beginning of period$8,485 $1,872 $(45)$(395)$9,917 
OCI before reclassifications(6,485)(390)(17)— (6,892)
Deferred income tax benefit (expense)1,357 82 4 — 1,443 
AOCI before reclassifications, net of income tax3,357 1,564 (58)(395)4,468 
Amounts reclassified from AOCI216 42 — 10 268 
Deferred income tax benefit (expense)(45)(9)— (2)(56)
Amounts reclassified from AOCI, net of income tax171 33 — 8 212 
Balance, end of period$3,528 $1,597 $(58)$(387)$4,680 

Three Months
Ended
March 31, 2021
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)		Unrealized
Gains (Losses)
on Derivatives		Foreign
Currency
Translation
Adjustments		Defined
Benefit
Plans
Adjustment		Total
(In millions)
Balance, beginning of period$10,384 $1,791 $(53)$(460)$11,662 
OCI before reclassifications(2,659)(1,260)30 — (3,889)
Deferred income tax benefit (expense)561 265 (6)— 820 
AOCI before reclassifications, net of income tax8,286 796 (29)(460)8,593 
Amounts reclassified from AOCI24 73 — 11 108 
Deferred income tax benefit (expense)(5)(15)— (2)(22)
Amounts reclassified from AOCI, net of income tax19 58 — 9 86 
Balance, end of period$8,305 $854 $(29)$(451)$8,679 
__________________
(1)See Note 5 for information on offsets to investments related to policyholder liabilities, DAC, VOBA and DSI.

59
 Three Months 
 Ended 
 September 30, 2017
 
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
 
Unrealized
Gains (Losses)
on Derivatives
 
Foreign
Currency
Translation
Adjustments
 
Defined
Benefit
Plans
Adjustment
 Total
 (In millions)
Balance, beginning of period$5,549
 $1,216
 $(82) $(1,813) $4,870
OCI before reclassifications560
 (20) 29
 2
 571
Deferred income tax benefit (expense)(214) 7
 (7) (1) (215)
AOCI before reclassifications, net of income tax5,895
 1,203
 (60) (1,812) 5,226
Amounts reclassified from AOCI(30) (293) —
 40
 (283)
Deferred income tax benefit (expense)10
 102
 —
 (14) 98
Amounts reclassified from AOCI, net of income tax(20) (191) —
 26
 (185)
Balance, end of period$5,875
 $1,012
 $(60) $(1,786) $5,041
 Three Months 
 Ended 
 September 30, 2016
 
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
 
Unrealized
Gains (Losses)
on Derivatives
 
Foreign
Currency
Translation
Adjustments
 
Defined
Benefit
Plans
Adjustment
 Total
 (In millions)
Balance, beginning of period$7,051
 $1,785
 $(53) $(1,938) $6,845
OCI before reclassifications343
 39
 (16) (258) 108
Deferred income tax benefit (expense)(117) (14) 5
 90
 (36)
AOCI before reclassifications, net of income tax7,277
 1,810
 (64) (2,106) 6,917
Amounts reclassified from AOCI(44) (101) —
 46
 (99)
Deferred income tax benefit (expense)15
 36
 —
 (17) 34
Amounts reclassified from AOCI, net of income tax(29) (65) —
 29
 (65)
Balance, end of period$7,248
 $1,745
 $(64) $(2,077) $6,852



69
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
8. Equity (continued)

 Nine Months
Ended
September 30, 2017
 
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
 
Unrealized
Gains (Losses)
on Derivatives
 
Foreign
Currency
Translation
Adjustments
 
Defined
Benefit
Plans
Adjustment
 Total
 (In millions)
Balance, beginning of period$3,592
 $1,459
 $(67) $(1,865) $3,119
OCI before reclassifications3,434
 226
 9
 5
 3,674
Deferred income tax benefit (expense)(1,215) (79) (2) (2) (1,298)
AOCI before reclassifications, net of income tax5,811
 1,606
 (60) (1,862) 5,495
Amounts reclassified from AOCI98
 (913) —
 118
 (697)
Deferred income tax benefit (expense)(34) 319
 —
 (42) 243
Amounts reclassified from AOCI, net of income tax64
 (594) —
 76
 (454)
Balance, end of period$5,875
 $1,012
 $(60) $(1,786) $5,041
 Nine Months
Ended
September 30, 2016
 
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
 
Unrealized
Gains (Losses)
on Derivatives
 
Foreign
Currency
Translation
Adjustments
 
Defined
Benefit
Plans
Adjustment
 Total
 (In millions)
Balance, beginning of period$3,337
 $1,436
 $(74) $(2,014) $2,685
OCI before reclassifications6,132
 703
 6
 (241) 6,600
Deferred income tax benefit (expense)(2,148) (247) 4
 84
 (2,307)
AOCI before reclassifications, net of income tax7,321
 1,892
 (64) (2,171) 6,978
Amounts reclassified from AOCI(113) (227) —
 145
 (195)
Deferred income tax benefit (expense)40
 80
 —
 (51) 69
Amounts reclassified from AOCI, net of income tax(73) (147) —
 94
 (126)
Balance, end of period$7,248
 $1,745
 $(64) $(2,077) $6,852
__________________
(1)
See Note 5 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation.

70
Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
8. Equity (continued)


Information regarding amounts reclassified out of each component of AOCI was as follows:
Three Months
Ended
March 31,
20222021
AOCI Components Amounts Reclassified from AOCI Consolidated Statements of
Operations and
Comprehensive Income (Loss)
Locations		AOCI ComponentsAmounts Reclassified from AOCIConsolidated Statements of
Operations and
Comprehensive Income (Loss)
Locations
 Three Months 
 Ended 
 September 30,		 Nine Months
Ended
September 30,		 
 2017 2016 2017 2016 
 (In millions) (In millions)
Net unrealized investment gains (losses):         Net unrealized investment gains (losses):
Net unrealized investment gains (losses) $(5) $52
 $30
 $144
 Net investment gains (losses)Net unrealized investment gains (losses)$(213)$(15)Net investment gains (losses)
Net unrealized investment gains (losses) (3) —
 (5) 11
 Net investment incomeNet unrealized investment gains (losses)2 (3)Net investment income
Net unrealized investment gains (losses) 38
 (8) (123) (42) Net derivative gains (losses)Net unrealized investment gains (losses)(5)(6)Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax 30
 44
 (98) 113
 Net unrealized investment gains (losses), before income tax(216)(24)
Income tax (expense) benefit (10) (15) 34
 (40) Income tax (expense) benefit45 5 
Net unrealized investment gains (losses), net of income tax 20
 29
 (64) 73
 Net unrealized investment gains (losses), net of income tax(171)(19)
Unrealized gains (losses) on derivatives - cash flow hedges:         Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps 8
 27
 22
 44
 Net derivative gains (losses)
Interest rate swaps 4
 4
 12
 10
 Net investment income
Interest rate forwards (1) 1
 (5) —
 Net derivative gains (losses)
Interest rate forwards 1
 —
 2
 2
 Net investment income
Foreign currency swaps 282
 69
 882
 169
 Net derivative gains (losses)
Foreign currency swaps (1) —
 (1) (1) Net investment income
Credit forwards —
 ���
 1
 3
 Net derivative gains (losses)
Interest rate derivativesInterest rate derivatives15 13 Net investment income
Interest rate derivativesInterest rate derivatives18 29 Net investment gains (losses)
Foreign currency exchange rate derivativesForeign currency exchange rate derivatives2 1 Net investment income
Foreign currency exchange rate derivativesForeign currency exchange rate derivatives(77)(116)Net investment gains (losses)
Gains (losses) on cash flow hedges, before income tax 293
 101
 913
 227
 Gains (losses) on cash flow hedges, before income tax(42)(73)
Income tax (expense) benefit (102) (36) (319) (80) Income tax (expense) benefit9 15 
Gains (losses) on cash flow hedges, net of income tax 191
 65
 594
 147
 Gains (losses) on cash flow hedges, net of income tax(33)(58)
Defined benefit plans adjustment: (1)         Defined benefit plans adjustment: (1)
Amortization of net actuarial gains (losses) (45) (48) (134) (150) Amortization of net actuarial gains (losses)(10)(12)
Amortization of prior service (costs) credit 5
 2
 16
 5
 Amortization of prior service (costs) credit— 1 
Amortization of defined benefit plan items, before income tax (40) (46) (118) (145) Amortization of defined benefit plan items, before income tax(10)(11)
Income tax (expense) benefit 14
 17
 42
 51
 Income tax (expense) benefit2 2 
Amortization of defined benefit plan items, net of income tax (26) (29) (76) (94) Amortization of defined benefit plan items, net of income tax(8)(9)
Total reclassifications, net of income tax $185
 $65
 $454
 $126
 Total reclassifications, net of income tax$(212)$(86)
__________________
(1)
These AOCI components are included in the computation of net periodic benefit costs. See Note 10.

(1)These AOCI components are included in the computation of net periodic benefit costs.
71
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

9. Other Revenues and Other Expenses
Other Revenues
Information on other revenues, which primarily includes fees related to service contracts from customers, was as follows:
Three Months
Ended
March 31,
20222021
(In millions)
Prepaid legal plans$108 $100 
Recordkeeping and administrative services (1)47 52 
Administrative services-only contracts55 58 
Other revenue from service contracts from customers7 9 
Total revenues from service contracts from customers217 219 
Other (2)195 206 
Total other revenues$412 $425 
__________________
(1)Related to products and businesses no longer actively marketed by the Company.
(2)Primarily includes reinsurance ceded. See Note 12.
Other Expenses
Information on other expenses was as follows:
Three Months
Ended
March 31,
20222021
(In millions)
General and administrative expenses (1)$639 $547 
Pension, postretirement and postemployment benefit costs30 33 
Premium taxes, other taxes, and licenses & fees80 73 
Commissions and other variable expenses482 488 
Capitalization of DAC(27)(19)
Amortization of DAC and VOBA71 40 
Interest expense on debt24 24 
Total other expenses$1,299 $1,186 
 Three Months 
 Ended 
 September 30,		 Nine Months
Ended
September 30,
 2017 2016 2017 2016
 (In millions)
Compensation$530
 $488
 $1,541
 $1,598
Pension, postretirement and postemployment benefit costs51
 41
 138
 199
Commissions132
 168
 398
 527
Volume-related costs69
 40
 164
 162
Affiliated expenses on ceded and assumed reinsurance149
 152
 521
 774
Capitalization of DAC(17) (59) (57) (285)
Amortization of DAC and VOBA(43) 212
 124
 420
Interest expense on debt26
 28
 79
 84
Premium taxes, licenses and fees62
 89
 210
 272
Professional services266
 235
 755
 662
Rent and related expenses, net of sublease income72
 38
 122
 108
Other(92) (68) (187) (71)
Total other expenses$1,205
 $1,364
 $3,808
 $4,450
__________________
(1)Includes $22 million and ($13) million for the three months ended March 31, 2022 and 2021, respectively, for the net change in cash surrender value of investments in certain life insurance policies, net of premiums paid.
Affiliated Expenses
Commissions, capitalization of DAC and amortization of DAC and VOBA include the impact of affiliated reinsurance transactions. See Note 12 for a discussion of affiliated expenses included in the table above.
61
10. Employee Benefit Plans
Pension and Other Postretirement Benefit Plans
The Company sponsors and administers various defined benefit pension plans and other postretirement employee benefit plans covering employees and sales representatives who meet specified eligibility requirements. Participating affiliates are allocated an equitable share of net expense related to the plans, proportionate to other expenses being allocated to these affiliates.
The Company also provides certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. Participating affiliates are allocated a proportionate share of net expense and contributions related to the postemployment and other postretirement plans.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
10. Employee Benefit Plans (continued)
Income Tax

The components of net periodic benefit costs were as follows:
 Three Months 
 Ended 
 September 30,
 2017 2016
 
Pension
Benefits
 
Other
Postretirement
Benefits
 
Pension
Benefits
 
Other
Postretirement
Benefits
 (In millions)
Service costs$40
 $—
 $49
 $3
Interest costs98
 16
 100
 20
Divestitures and curtailment costs (1)3
 2
 (1) (1)
Expected return on plan assets(121) (16) (139) (20)
Amortization of net actuarial (gains) losses45
 —
 45
 3
Amortization of prior service costs (credit)—
 (5) —
 (2)
Allocated to affiliates(9) —
 (15) (3)
Net periodic benefit costs (credit)$56
 $(3) $39
 $—
 Nine Months
Ended
September 30,
 2017 2016
 
Pension
Benefits
 
Other
Postretirement
Benefits
 
Pension
Benefits
 
Other
Postretirement
Benefits
 (In millions)
Service costs$120
 $3
 $155
 $7
Interest costs295
 50
 314
 62
Divestitures and curtailment costs (1)3
 2
 (1) 26
Expected return on plan assets(362) (48) (389) (56)
Amortization of net actuarial (gains) losses134
 —
 143
 7
Amortization of prior service costs (credit)(1) (15) —
 (5)
Allocated to affiliates(26) (1) (50) (7)
Net periodic benefit costs (credit)$163
 $(9) $172
 $34
__________________
(1)DuringFor the three months and nineended March 31, 2022, the effective tax rate on income (loss) before provision for income tax was 14%. The Company’s effective tax rate for the three months ended September 30, 2016,March 31, 2022 differed from the Company recognized curtailment chargesU.S. statutory rate primarily due to tax benefits from tax credits, the corporate tax deduction for stock compensation and non-taxable investment income.
For the three months ended March 31, 2021, the effective tax rate on certain postretirement benefit plans in connection withincome (loss) before provision for income tax was 8%. The Company’s effective tax rate for the salethree months ended March 31, 2021 differed from the U.S. statutory rate primarily due to MassMutual of MetLife, Inc.’s U.S. retail advisor forcetax benefits from non-taxable investment income, tax credits and certain assets associated with the MetLife Premier Client Group, including all of the issued and outstanding shares of MetLife’s affiliated broker-dealer, MetLife Securities, Inc., a wholly-owned subsidiary of MetLife, Inc.corporate tax deduction for stock compensation.
11. Contingencies, Commitments and Guarantees

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
11. Contingencies, Commitments and Guarantees (continued)

Contingencies
Litigation
The Company is a defendant in a large number of litigation matters. In some of the matters, very large and/Putative or indeterminate amounts, including punitivecertified class action litigation and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience oflitigation and claims and assessments against the Company, in litigatingaddition to those discussed below and those otherwise provided for in the Company’s interim condensed 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.
The Company also receives and responds to subpoenas or resolving through settlement numerous claims over an extended periodother inquiries seeking a broad range of time, demonstratesinformation 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 management thatpredict the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.
Due to the vagaries of litigation, theultimate outcome of a litigation matterall pending investigations and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will view the relevant evidence and applicable law.
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. Liabilities have been established for a number of the matters noted below. 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 September 30, 2017.March 31, 2022. 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 of the matters disclosed below, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, the Company has not made an accrual. As of September 30, 2017,March 31, 2022, the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $350$100 million.
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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
11. Contingencies, Commitments and Guarantees (continued)
Matters as to Which an Estimate Cannot Be Made
For other matters disclosed below, 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.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
11. Contingencies, Commitments and Guarantees (continued)

Asbestos-Related Claims
Metropolitan Life Insurance Company 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. Metropolitan Life Insurance Company has never engaged in the business of manufacturing producing, distributing or selling asbestos or asbestos-containing products nor has Metropolitan Life Insurance Company issued liability or workers’ compensation insurance to companies in the business of manufacturing producing, distributing or selling asbestos or asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication and other activities of one or more of Metropolitan Life Insurance Company’s employees during the period from the 1920’s1920s through approximately the 1950’s1950s and allege that Metropolitan Life Insurance Company 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. Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company. Metropolitan Life Insurance Company employs a number of resolution strategies to manage its asbestos loss exposure, including seeking resolution of pending litigation by judicial rulings and settling individual or groups of claims or lawsuits under appropriate circumstances.
Claims asserted against Metropolitan Life Insurance Company have included negligence, intentional tort and conspiracy concerning the health risks associated with asbestos. Metropolitan Life Insurance Company’s defenses (beyond denial of certain factual allegations) include that: (i) Metropolitan Life Insurance Company owed no duty to the plaintiffs — it had no special relationship with the plaintiffs and did not manufacture, produce, distribute or sell the asbestos products that allegedly injured plaintiffs; (ii) plaintiffs did not rely on any actions of Metropolitan Life Insurance Company; (iii) Metropolitan Life Insurance Company’s conduct was not the cause of the plaintiffs’ injuries; and (iv) plaintiffs’ exposure occurred after the dangers of asbestos were known; and (v) the applicable time with respect to filing suit has expired.known. During the course of the litigation, certain trial courts have granted motions dismissing claims against Metropolitan Life Insurance Company, while other trial courts have denied Metropolitan Life Insurance Company’s motions. There can be no assurance that Metropolitan Life Insurance Company will receive favorable decisions on motions in the future. While most cases brought to date have settled, Metropolitan Life Insurance Company intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials.
As reported in the 20162021 Annual Report, Metropolitan Life Insurance Company received approximately 4,1462,824 asbestos-related claims in 2016. During2021. For the ninethree months ended September 30, 2017March 31, 2022 and 2016,2021, Metropolitan Life Insurance Company received approximately 2,742721 and 3,267678 new asbestos-related claims, respectively. See Note 16 of the Notes to the Consolidated Financial Statements included in the 20162021 Annual Report for historical information concerning asbestos claims and Metropolitan Life Insurance Company’s increaseupdate in its recorded liability at December 31, 2014.2021. The number of asbestos cases that may be brought, the aggregate amount of any liability that Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company 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 impact of the number of new claims filed in a particular jurisdiction and variations in the law in the jurisdictions in which claims are filed, the possible impact of tort reform efforts, the willingness of courts to allow plaintiffs to pursue claims against Metropolitan Life Insurance Company 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. 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 by management,necessary, but management does not believe any such charges are likely to have a material effect on the Company’s financial position.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
11. Contingencies, Commitments and Guarantees (continued)

The Company believes adequate provision has been made in its interim condensed consolidated financial statements for all probable and reasonably estimable losses for asbestos-related claims. Metropolitan Life Insurance Company’s recorded asbestos liability is based on its estimation of the following elements, as informed by the facts presently known to it, its understanding of current law and its past experiences: (i) the probable and reasonably estimable liability for asbestoscovers pending claims, already asserted against Metropolitan Life Insurance Company, including claims settled but not yet paid; (ii) the probable and reasonably estimable liability for asbestos claims not yet asserted, against Metropolitan Life Insurance Company, but which Metropolitan Life Insurance Company believes are reasonably probable of assertion; and (iii) the legal defense costs associated with the foregoing claims. Significantand is based on estimates and includes significant assumptions underlying Metropolitan Life Insurance Company’s analysis of the adequacy of its recorded liability with respect to asbestos litigation include: (i) the number of future claims; (ii) the cost to resolve claims; and (iii) the cost to defend claims.analysis.
Metropolitan Life Insurance Company 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. These variables include bankruptcies of other companies involved in asbestos litigation, legislative and judicial developments, the number of pending claims involving serious disease, the number of new claims filed against it and other defendants and the jurisdictions in which claims are pending. Based upon its regular reevaluation of its exposure from asbestos litigation, Metropolitan Life Insurance Company has updated its liability analysis for asbestos-related claims through September 30, 2017.
Regulatory Matters
The Company 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 (“SEC”); federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority (“FINRA”). The issues involved in information requests and regulatory matters vary widely. The Company cooperates in these inquiries.
In the Matter of Chemform, Inc. Site, Pompano Beach, Broward County, Florida
In July 2010, the Environmental Protection Agency (“EPA”) advised Metropolitan Life Insurance Company that it believed payments were due under two settlement agreements, known as “Administrative Orders on Consent,” that New England Mutual Life Insurance Company (“New England Mutual”) signed in 1989 and 1992 with respect to the cleanup of a Superfund site in Florida (the “Chemform Site”). The EPA originally contacted Metropolitan Life Insurance Company (as successor to New England Mutual) and a third party in 2001, and advised that they owed additional clean-up costs for the Chemform Site. The matter was not resolved at that time. In September 2012, the EPA, Metropolitan Life Insurance Company and the third party executed an Administrative Order on Consent under which Metropolitan Life Insurance Company and the third party agreed to be responsible for certain environmental testing at the Chemform Site. The EPA may seek additional costs if the environmental testing identifies issues. The EPA and Metropolitan Life Insurance Company have reached a settlement in principal on the EPA’s claim for past costs. The Company estimates that the aggregate cost to resolve this matter, including the settlement for claims of past costs and the costs of environmental testing, will not exceed $300 thousand.
Sales Practices Regulatory Matters
Regulatory authorities in a number of states and FINRA, and occasionally the SEC, have had investigations or inquiries relating to sales of individual life insurance policies or annuities or other products by Metropolitan Life Insurance Company. These investigations often focus on the conduct of particular financial services representatives and the sale of unregistered or unsuitable products or the misuse of client assets. Over the past several years, these and a number of investigations by other regulatory authorities were resolved for monetary payments and certain other relief, including restitution payments. The Company may continue to resolve investigations in a similar manner. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for these sales practices-related investigations or inquiries.
Total Control Accounts Litigation
Metropolitan Life Insurance Company is a defendant in a lawsuit related to its use of retained asset accounts, known as total control accounts (“TCA”), as a settlement option for death benefits.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
11. Contingencies, Commitments and Guarantees (continued)

Owens v. Metropolitan Life Insurance Company (N.D. Ga., filed April 17, 2014)
Plaintiff filed this class action lawsuit on behalf of all persons for whom Metropolitan Life Insurance Company established a retained asset account, known as a TCA, to pay death benefits under an Employee Retirement Income Security Act of 1974 (“ERISA”) plan. The action alleges that Metropolitan Life Insurance Company’s use of the TCA as the settlement option for life insurance benefits under some group life insurance policies violates Metropolitan Life Insurance Company’s fiduciary duties under ERISA. As damages, plaintiff seeks disgorgement of profits that Metropolitan Life Insurance Company realized on accounts owned by members of the class. In addition, plaintiff, on behalf of a subgroup of the class, seeks interest under Georgia’s delayed settlement interest statute, alleging that the use of the TCA as the settlement option did not constitute payment. On September 27, 2016, the court denied Metropolitan Life Insurance Company’s summary judgment motion in full and granted plaintiff’s partial summary judgment motion. On September 29, 2017, the court certified a nationwide class. The court also certified a Georgia subclass. The Company intends to defend this action vigorously.
Other Litigation
Sun Life Assurance Company of Canada Indemnity Claim
In 2006, Sun Life Assurance Company of Canada (“Sun Life”), as successor to the purchaser of Metropolitan Life Insurance Company’s Canadian operations, filed a lawsuit in Toronto, seeking a declaration that Metropolitan Life Insurance Company remains liable for “market conduct claims” related to certain individual life insurance policies sold by Metropolitan Life Insurance Company that were subsequently transferred to Sun Life. In January 2010, the court found that Sun Life had given timely notice of its claim for indemnification but, because it found that Sun Life had not yet incurred an indemnifiable loss, granted Metropolitan Life Insurance Company’s motion for summary judgment. Both parties agreed to consider the indemnity claim through arbitration. In September 2010, Sun Life notified Metropolitan Life Insurance Company that a purported class action lawsuit was filed against Sun Life in Toronto alleging sales practices claims regarding the policies sold by Metropolitan Life Insurance Company and transferred to Sun Life. On August 30, 2011, Sun Life notified Metropolitan Life Insurance Company that another purported class action lawsuit was filed against Sun Life in Vancouver, BC alleging sales practices claims regarding certain of the same policies sold by Metropolitan Life Insurance Company and transferred to Sun Life. Sun Life contends that Metropolitan Life Insurance Company is obligated to indemnify Sun Life for some or all of the claims in these lawsuits. These sales practices cases against Sun Life are ongoing, and the Company is unable to estimate the reasonably possible loss or range of loss arising from this litigation.
Voshall v. Metropolitan Life Insurance Company (Superior Court of the State of California, County of Los Angeles, April 8, 2015)
Plaintiff filed this putative class action lawsuit on behalf of himself and all persons covered under a long-term group disability income insurance policy issued by Metropolitan Life Insurance Company to public entities in California between April 8, 2011 and April 8, 2015. Plaintiff alleges that Metropolitan Life Insurance Company improperly reduced benefits by including cost of living adjustments and employee paid contributions in the employer retirement benefits and other income that reduces the benefit payable under such policies. Plaintiff asserts causes of action for declaratory relief, violation of the California Business & Professions Code, breach of contract and breach of the implied covenant of good faith and fair dealing. The Company intends to defend this action vigorously.
Martin v. Metropolitan Life Insurance Company (Superior Court of the State of California, County of Contra Costa, filed December 17, 2015)
Plaintiffs filed this putative class action lawsuit on behalf of themselves and all California persons who have been charged compound interest by Metropolitan Life Insurance Company in life insurance policy and/or premium loan balances within the last four years. Plaintiffs allege that Metropolitan Life Insurance Company has engaged in a pattern and practice of charging compound interest on life insurance policy and premium loans without the borrower authorizing such compounding, and that this constitutes an unlawful business practice under California law. Plaintiff asserts causes of action for declaratory relief, violation of California’s Unfair Competition Law and Usury Law, and unjust enrichment. Plaintiff seeks declaratory and injunctive relief, restitution of interest, and damages in an unspecified amount. On April 12, 2016, the court granted Metropolitan Life Insurance Company’s motion to dismiss. Plaintiffs have appealed this ruling.

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Table of Contents
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
11. Contingencies, Commitments and Guarantees (continued)

Lau v. Metropolitan Life Insurance Company (S.D.N.Y. filed, December 3, 2015)
This putative class action lawsuit was filed by a single defined contribution plan participant on behalf of all ERISA plans whose assets were invested in Metropolitan Life Insurance Company’s “Group Annuity Contract Stable Value Funds” within the past six years. The suit alleges breaches of fiduciary duty under ERISA and challenges the “spread” with respect to the stable value fund group annuity products sold to retirement plans. The allegations focus on the methodology Metropolitan Life Insurance Company uses to establish and reset the crediting rate, the terms under which plan participants are permitted to transfer funds from a stable value option to another investment option, the procedures followed if an employer terminates a contract, and the level of disclosure provided. Plaintiff seeks declaratory and injunctive relief, as well as damages in an unspecified amount. The Company intends to defend this action vigorously.
Newman v. Metropolitan Life Insurance Company (N.D. Ill., filed March 23, 2016)
Plaintiff filed this putative class action alleging causes of action for breach of contract, fraud, and violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, based on Metropolitan Life Insurance Company’s class-wide increase in premiums charged for long-term care insurance policies. Plaintiff alleges a class consisting of herself and all persons over age 65 who selected a Reduced Pay at Age 65 payment feature and whose premium rates were increased after age 65. Plaintiff asserts that premiums could not be increased for these class members and/or that marketing material was misleading as to Metropolitan Life Insurance Company’s right to increase premiums. Plaintiff seeks unspecified compensatory, statutory and punitive damages, as well as recessionary and injunctive relief. On April 12, 2017, the court granted Metropolitan Life Insurance Company’s motion, dismissing the action with prejudice. On April 21, 2017, plaintiff appealed this ruling.
Miller, et al. v. MetLife, Inc., et al. (C.D. Cal., filed April 7, 2017)
Plaintiffs filed this putative class action against MetLife, Inc. and Metropolitan Life Insurance Company in the U.S. District Court for the Central District of California, purporting to assert claims on behalf of all persons who replaced their MetLife Optional Term Life or Group Universal Life policy for a Group Variable Universal Life policy wherein MetLife allegedly charged smoker rates for certain non-smokers. Plaintiffs seek unspecified compensatory and punitive damages, as well as other relief. On September 25, 2017, Plaintiffs dismissed the action and refiled the complaint in U.S. District Court for the Southern District of New York. The Company intends to defend this action vigorously.31, 2022.
Julian & McKinney v. Metropolitan Life Insurance Company (S.D.N.Y., filed February 9, 2017)
Plaintiffs filed this putative class and collective action on behalf of themselves and all current and former long-term disability (“LTD”) claims specialists between February 2011 and the present for alleged wage and hour violations under the Fair Labor Standards Act (“FLSA”), the New York Labor Law, and the Connecticut Minimum Wage Act. The suit alleges that Metropolitan Life Insurance Company improperly reclassified the plaintiffs and similarly situated LTD claims specialists from non-exempt to exempt from overtime pay in November 2013. As a result, they and members of the putative class were no longer eligible for overtime pay even though they allege they continued to work more than 40 hours per week. Plaintiffs seek unspecified compensatory and punitive damages, as well as other relief. The court denied the plaintiffs’ motion to certify the class and the United States Circuit Court for the Second Circuit denied plaintiffs leave to appeal this ruling. The court granted Metropolitan Life Insurance Company’s motion for summary judgment as to the lead plaintiff’s FLSA claims and its motion to de-certify the class as a collective action. Plaintiffs’ motion for interlocutory review of the de-certification ruling is still pending. Metropolitan Life Insurance Company intends to defend this action vigorously.
Sales PracticesTotal 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
Over Act (the “Act”) on behalf of itself and the pastState 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., Metropolitan Life Insurance Company and several years,other insurance companies violated the Company has faced numerous claims, including class action lawsuits, alleging improper marketing or salesAct by filing false unclaimed property reports with the State of individualNew York from 1986 to 2017, to avoid having to escheat the proceeds of more than 25,000 life insurance policies, annuities, mutualincluding policies for which the defendants escheated funds other products oras part of their demutualizations in the misuse of client assets. Some of the current cases seek substantial damages, including punitive andlate 1990s. The Relator seeks treble damages and attorneys’ fees.other relief. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters.
Summary
Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the courseAppellate Division of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investorNew York State Supreme Court, First Department, reversed the court’s order granting MetLife, Inc. and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations.

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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
NotesCompany’s motion to dismiss and remanded the case to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)trial court where the Relator has filed an amended complaint. The Company intends to defend the action vigorously.
11. Contingencies, CommitmentsMatters 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 Guarantees (continued)

It is not possible to predict the ultimate outcome of all pending investigationsprocedures for estimating reserves for certain group annuity benefits. Several regulators have made inquiries into this issue and legal proceedings. In some of the matters referred to previously, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcomeother jurisdictions may pursue similar investigations or inquiries. The Company is also exposed to lawsuits, and could be exposed to additional legal actions relating to this issue. These may result in certain casespayments, including damages, fines, penalties, interest and other amounts assessed or awarded by courts or regulatory authorities under applicable escheat, tax, securities, Employee Retirement Income Security Act of 1974, or other laws or regulations. The Company could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management,incur significant costs in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain ofconnection with 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.actions.
Commitments
Mortgage Loan Commitments
The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $3.3$4.4 billion and $3.9$3.1 billion at September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively.
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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
11. Contingencies, Commitments and Guarantees (continued)
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 $4.0$4.2 billion and $4.2$4.5 billion at September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively.
Guarantees
In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments 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 $127$282 million, with a cumulative maximum of $367$388 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, guarantees, or commitments.
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.
The Company’s recorded liabilities were $4$2 million at September 30, 2017both March 31, 2022 and $5 million at December 31, 2016, respectively,2021, for indemnities, guarantees and commitments.
12. Related Party Transactions

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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
12. Related Party Transactions (continued)

Service Agreements
The Company has entered into various agreements with affiliates for services necessary to conduct its activities. Typical services provided under these agreements include personnel, policy administrative functions and distribution services. For certain agreements, charges are based on various performance measures or activity-based costing. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual cost incurred by the Company and/or affiliate.its affiliates. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $575$636 million and $1.7 billion$612 million for the three months ended March 31, 2022 and nine months ended September 30, 2017, respectively, and $631 million and $1.7 billion for the three months and nine months ended September 30, 2016,2021, respectively. RevenuesTotal revenues received from affiliates related to these agreements recorded in universal life and investment-type product policy fees, were $31 million and $93$12 million for both the three months ended March 31, 2022 and nine months ended September 30, 2017, respectively, and $37 million and $104 million for the three months and nine months ended September 30, 2016, respectively. Revenues received from affiliates related to these agreements, recorded in other revenues, were $27 million and $82 million for the three months and nine months ended September 30, 2017, respectively, and $37 million and $110 million for the three months and nine months ended September 30, 2016, respectively.
The Company also entered into agreements with affiliates to provide additional services necessary to conduct the affiliates’ activities. Typical services provided under these agreements include management, policy administrative functions, investment advice and distribution services. Expenses incurred by the Company related to these agreements, included in other expenses, were $378 million and $1.1 billion for the three months andnine months endedSeptember 30, 2017, respectively, and $304 million and $1.1 billion for the three months and nine months ended September 30, 2016, respectively, and were reimbursed to the Company by these affiliates.2021.
The Company had net payables to affiliates, related to the items discussed above, of $142$89 million and $165$143 million at September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively.
See NotesNote 5 and 10 for additional information on related party transactions.
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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
12. Related Party Transactions (continued)
Related Party Reinsurance Transactions
The Company has reinsurance agreements with certain of MetLife, Inc.’s subsidiaries, including MetLife Reinsurance Company of Charleston (“MRC”), MetLife Reinsurance Company of Vermont, Metropolitan Tower Life Insurance Company, and General American LifeMetLife Insurance Company,K.K., all of which are related parties. Additionally,
Information regarding the Company hassignificant effects of affiliated reinsurance agreements with Brighthouse Insurance, Brighthouse Life Insurance Companyon the interim condensed consolidated statements of NY (“Brighthouse NY”)operations and New England Life Insurance Company (“NELICO”), former subsidiaries of MetLife, Inc. that were part of the Separation. See Note 2.comprehensive income (loss) was as follows:

Three Months
Ended
March 31,
20222021
(In millions)
Premiums
Reinsurance assumed$1 $2 
Reinsurance ceded(31)(31)
Net premiums$(30)$(29)
Universal life and investment-type product policy fees
Reinsurance assumed$— $— 
Reinsurance ceded(4)2 
Net universal life and investment-type product policy fees$(4)$2 
Other revenues
Reinsurance assumed$24 $(3)
Reinsurance ceded123 141 
Net other revenues$147 $138 
Policyholder benefits and claims
Reinsurance assumed$28 $1 
Reinsurance ceded(39)(35)
Net policyholder benefits and claims$(11)$(34)
Interest credited to policyholder account balances
Reinsurance assumed$9 $7 
Reinsurance ceded(3)(3)
Net interest credited to policyholder account balances$6 $4 
Other expenses
Reinsurance assumed$9 $— 
Reinsurance ceded84 102 
Net other expenses$93 $102 
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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
12. Related Party Transactions (continued)

Information regarding the significant effects of affiliated reinsurance included on the consolidated statements of operations and comprehensive income (loss) was as follows:
 Three Months 
 Ended 
 September 30,		 Nine Months
Ended
September 30,
 2017 2016 2017 2016
 (In millions)
Premiums       
Reinsurance assumed$5
 $188
 $118
 $569
Reinsurance ceded(32) (9) (101) (30)
Net premiums$(27) $179
 $17
 $539
Universal life and investment-type product policy fees       
Reinsurance assumed$(2) $14
 $16
 $45
Reinsurance ceded(6) (40) (16) (109)
Net universal life and investment-type product policy fees$(8) $(26) $—
 $(64)
Other revenues       
Reinsurance assumed$4
 $9
 $30
 $(5)
Reinsurance ceded139
 143
 421
 429
Net other revenues$143
 $152
 $451
 $424
Policyholder benefits and claims       
Reinsurance assumed$4
 $197
 $63
 $532
Reinsurance ceded(26) (34) (90) (72)
Net policyholder benefits and claims$(22) $163
 $(27) $460
Interest credited to policyholder account balances       
Reinsurance assumed$12
 $8
 $36
 $24
Reinsurance ceded(3) (22) (9) (66)
Net interest credited to policyholder account balances$9
 $(14) $27
 $(42)
Other expenses       
Reinsurance assumed$(4) $9
 $33
 $456
Reinsurance ceded139
 145
 459
 417
Net other expenses$135
 $154
 $492
 $873

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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
12. Related Party Transactions (continued)

Information regarding the significant effects of affiliated reinsurance included on theinterim condensed consolidated balance sheets was as follows at:
March 31, 2022December 31, 2021
AssumedCededAssumedCeded
(In millions)
Assets
Premiums, reinsurance and other receivables$57 $11,661 $25 $11,710 
Deferred policy acquisition costs and value of business acquired10 (149)6 (139)
Total assets$67 $11,512 $31 $11,571 
Liabilities
Future policy benefits$3,107 $(2)$3,139 $(10)
Policyholder account balances517 — 366 — 
Other policy-related balances60 (1)14 — 
Other liabilities905 11,444 894 12,190 
Total liabilities$4,589 $11,441 $4,413 $12,180 
 September 30, 2017 December 31, 2016
 Assumed Ceded Assumed Ceded
 (In millions)
Assets       
Premiums, reinsurance and other receivables$50
 $12,730
 $229
 $13,334
Deferred policy acquisition costs and value of business acquired—
 (182) 38
 (198)
Total assets$50
 $12,548
 $267
 $13,136
Liabilities       
Future policy benefits$384
 $(4) $663
 $(4)
Policyholder account balances168
 —
 563
 —
Other policy-related balances104
 16
 212
 18
Other liabilities1,865
 12,969
 1,853
 13,065
Total liabilities$2,521
 $12,981
 $3,291
 $13,079
The Company ceded two blocks of business to an affiliate on a 75% coinsurance with funds withheld basis. Certain contractual features of these agreements qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company’s interim condensed consolidated balance sheets. The embedded derivatives related to the funds withheld associated with these reinsurance agreements are included within other liabilities and were $15$6 million and $10$31 million at September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively. Net derivative gains (losses) associated with these embedded derivatives were less than ($1)$25 million and ($6)$23 million for the three months ended March 31, 2022, and nine months ended September 30, 2017, respectively, and less than ($1) million and ($17) millionfor the threemonths and nine months ended September 30, 2016,2021, respectively.
The Company ceded risks to an affiliate related to guaranteed minimum benefit guarantees written directly by the Company. These ceded reinsurance agreements contain embedded derivatives and changes in their estimated fair value are also included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within premiums, reinsurance and other receivables and were $0 and $460 million at September 30, 2017 and December 31, 2016, respectively. Net derivative gains (losses) associated with the embedded derivatives were less than ($1) million and ($110) million for the threemonths and nine months ended September 30, 2017, respectively, and ($33) million and $275 million for the threemonths and nine months ended September 30, 2016, respectively.
Certain contractual features of the closed block agreement with MRC create an embedded derivative, which is separately accounted for at estimated fair value on the Company’s interim condensed consolidated balance sheets. The embedded derivative related to the funds withheld associated with this reinsurance agreement was included within other liabilities and was $891$428 million and $767 million$1.0 billion at September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively. Net derivative gains (losses) associated with the embedded derivative were less than ($1)$613 million and ($124)$419 million for the threemonths and nine months ended September 30, 2017, respectively,March 31, 2022 and ($3) million and ($512) million for the threemonths and nine months ended September 30, 2016,2021, respectively.
The Company assumes risks from affiliates related to guaranteed minimum benefit guarantees written directly by the affiliates. These assumed reinsurance agreements contain embedded derivatives and changes in their estimated fair value are also included within net derivative gains (losses). The embedded derivatives associated with these agreements are included within policyholder account balances and were $3 million and $390 million at September 30, 2017 and December 31, 2016, respectively. Net derivative gains (losses) associated with the embedded derivatives were less than $1 million and $263 million for the threemonths and nine months ended September 30, 2017, respectively, $6 million and ($136) million for the threemonths andnine months endedSeptember 30, 2016, respectively.
In January 2017, Brighthouse NY and NELICO recaptured risks related to certain variable annuities, including guaranteed minimum benefits, reinsured by the Company. This recapture resulted in a decrease in cash and cash equivalents of $34 million, a decrease in premiums, reinsurance and other receivables of $77 million, a decrease in future policy benefits of $79 million, a decrease in policyholder account balances of $387 million and an increase in other liabilities of $76 million. For the nine months ended September 30, 2017, the Company recognized a gain of $178 million, net of income tax, as a result of this transaction.

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Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)
12. Related Party Transactions (continued)

In January 2017, the Company recaptured risks related to guaranteed minimum benefit guarantees on certain variable annuities reinsured by Brighthouse Insurance. This recapture resulted in an increase in investments and cash and cash equivalents of $428 million and a decrease in premiums, reinsurance and other receivables of $565 million. The Company recognized a loss of $89 million, net of income tax, for thenine months endedSeptember 30, 2017, as a result of this transaction.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Index to Management’s Discussion and Analysis of Financial Condition and Results of Operations
Page
8569
8569
8870
8971
9676
9676
9676
76

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Forward-Looking Statements and Other Financial Information
For purposes of this discussion, “MLIC,” the “Company,” “we,” “our” and “us” refer to Metropolitan Life Insurance Company, a New York corporation incorporated in 1868, and its subsidiaries. Metropolitan Life Insurance Company is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”). Management’s narrative analysis of the Company’s results of operations is presented pursuant to General Instruction H(2)(a) of Form 10-Q. This narrative analysis should be read in conjunction with Metropolitan Life Insurance Company’s Annual Report on Form 10-K for the year ended December 31, 20162021 (the “2016“2021 Annual Report”), the cautionary language regarding forward-looking statements included below, the “Risk Factors” set forth in Part II, Item 1A, and the additional risk factors referred to therein, and the Company’s interim condensed consolidated financial statements included elsewhere herein.
This narrative analysis may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and other words and terms of similar meaning, or are tied to future periods, in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends in operations and financial results. Any or all forward-looking statements may turn out to be wrong. Actual results could differ materially from those expressed or implied in the forward-looking statements. See “Note Regarding Forward-Looking Statements.”Statements” for cautionary language regarding forward-looking statements.
This narrative analysis includes references to our performance measure, operatingadjusted earnings, that is not based on accounting principles generally accepted in the United States of America (“GAAP”). This measure is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, operating earnings is also our GAAP measure of segment performance. Operating earnings allows analysis of our performance and facilitates comparisons to industry results. Forward-looking guidance provided on a non-GAAP basis cannot be reconciled to the most directly comparable GAAP measures on a forward-looking basis because net income may fluctuate significantly if net investment gains and losses and net derivative gains and losses move outside of estimated ranges. See “— Non-GAAP and Other Financial Disclosures” for definitions and a definition and discussion of this and other financial measures, and “— Results of Operations” for reconciliations of historical non-GAAP financial measures to the most directly comparable GAAP measures.
Business
Overview
MLIC is a provider of insurance, annuities, employee benefits and asset management to both individuals and groups.management. MLIC is organized into two segments: U.S. and MetLife Holdings. In addition, the Company reports certain of its results of operations in Corporate & Other. See Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for further information on the Company’s segments and Corporate & Other. Management
COVID-19 Pandemic and Current Market Conditions
We continue to closely monitor developments relating to the COVID-19 pandemic and assess its impact on our business. We have implemented risk management and business continuity plans and taken preventive measures and other precautions, such as employee business travel restrictions and remote work arrangements which, to date, have enabled us to maintain our critical business processes, customer service levels, relationships with key vendors, financial reporting systems, internal control over financial reporting and disclosure controls and procedures.
The COVID-19 pandemic continues to evaluateimpact the Company’s segment performanceglobal economy and allocated resourcesfinancial markets and may adjust related measurementshas caused volatility in the futureglobal equity, credit and real estate markets. Governments and central banks around the world responded to better reflect segment profitability.
Other Key Information
Separationthe COVID-19 pandemic with unprecedented fiscal and monetary policies, but many of Brighthouse
On August 4, 2017, MetLife, Inc. completedthese stimulus programs have concluded due to global economic recovery and rising inflation. In the separation of Brighthouse Financial, Inc.United States, the Federal Reserve Board ended its asset purchase program in March 2022 and will begin to reduce its subsidiaries (“Brighthouse”) through a distribution of 96,776,670 shares ofholdings on June 1, 2022. In March and May 2022, the 119,773,106 shares of Brighthouse Financial, Inc. common stock outstanding, representing 80.8% of those shares, to MetLife, Inc. common shareholders (the “Separation”). MetLife, Inc. retained the remaining ownershipFederal Open Market Committee raised interest of 22,996,436 shares, or 19.2%, of Brighthouse Financial, Inc. common stock outstanding. Certain MetLife affiliates hold MetLife, Inc. common stock and, as a result, participatedrates; further increases in the distribution.target range for the federal funds rate are expected throughout 2022 to combat inflation.

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U.S. Retail Advisor Force Divestiture
In July 2016, MetLife, Inc. completed the sale to Massachusetts Mutual Life Insurance Company (“MassMutual”) of MetLife’s U.S. retail advisor force and certain assets associated with the MetLife Premier Client Group, including all of the issued and outstanding shares of MetLife’s affiliated broker-dealer, MetLife Securities, Inc., a wholly-owned subsidiary of MetLife, Inc. (the “U.S. Retail Advisor Force Divestiture”). MassMutual assumed all of the liabilities related to such assets that arise or occur at or after the closing of the sale. As part of the transactions, MetLife, Inc. and MassMutual entered into a product development agreement under which the part of MetLife’s former U.S. retail business now in Brighthouse will be the exclusive developer of certain annuity products to be issued by MassMutual. In the MassMutual purchase agreement, MetLife, Inc. agreed to indemnify MassMutual for certain claims, liabilities and breaches of representations and warranties up to limits described in the purchase agreement.
Extraordinary Dividends
In December 2016, MLIC distributed to MetLife, Inc., as a non-cash extraordinary dividend, all of the issued and outstanding shares of common stock of each of New England Life Insurance Company (“NELICO”) and General American Life Insurance Company (“GALIC”). See “— Results of Operations” and Note 3for further information regarding the effect of the Notes to the Consolidated Financial Statements includedCOVID-19 pandemic on our businesses.
Regulatory Developments
The following discussion on regulatory developments should be read in conjunction with “Business — Regulation” in the 2016 Annual Report for further information.
Non-Bank SIFI
On December 18, 2014, the Financial Stability Oversight Council (“FSOC”) designated MetLife, Inc. as a non-bank systemically important financial institution (“non-bank SIFI”) subject to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) and the Federal Reserve Bank of New York (collectively with the Federal Reserve Board, the “Federal Reserve”) and the Federal Deposit Insurance Corporation (the “FDIC”), as well as to enhanced supervision and prudential standards. On March 30, 2016, the U.S. District Court for the District of Columbia (the “D.C. District Court”) ordered that the designation of MetLife, Inc. as a non-bank SIFI by the FSOC be rescinded. On April 8, 2016, the FSOC appealed the D.C. District Court’s order to the United States Court of Appeals for the District of Columbia (“D.C. Circuit”), and oral argument was heard on October 24, 2016. In a Presidential Memorandum for the Secretary of the Treasury dated April 21, 2017, President Trump directed the Secretary of the Treasury to review the FSOC SIFI designation process for transparency, due process and other factors, and, pending the completion of the review and submission of the Secretary’s recommendations, to refrain from voting for any non-emergency designations. The Secretary’s review and report were due by October 18, 2017. As of November 8, 2017, the Secretary’s report has not yet been issued. On August 2, 2017, the D.C. Circuit ordered that the appeal be held in abeyance pending the issuance of that report by the Secretary of the Treasury. The D.C. Circuit also ordered the parties to file additional procedural motions to govern future proceedings by November 17, 2017, or within 30 days of the issuance of the Treasury Secretary’s report, whichever occurs first. If the FSOC prevails on appeal or designates MetLife, Inc. as systemically important as part of its ongoing review of non-bank financial companies, MetLife, Inc. could once again be subject to regulation as a non-bank SIFI. See “Business — Regulation — Potential Regulation of MetLife, Inc. as a Non-Bank SIFI” included in the 2016 Annual Report.
Regulatory Developments    
The U.S. insurance industry is regulated primarily at the state level, with some products and services also subject to federal regulation. In addition, we are subject to regulation under the insurance holding company laws of the states of domicile of our U.S. insurance companies. Furthermore, some of our operations, products and services are subject to consumer protection laws, securities regulation, environmental and unclaimed property laws and regulations, and to the Employee Retirement Income Security Act of 1974 (“ERISA”). If MetLife, Inc. were re-designated as a non-bank SIFI, it could also be subject to regulation by the Federal Reserve and the FDIC and, as a subsidiary of MetLife, Inc., we could be affected by such regulation. We may also be affected by any additional capital requirements to which MetLife, Inc. may become subject as a global systemically important insurer. See “Business — Regulation,” “Risk Factors — Regulatory and Legal Risks — Our Insurance Businesses Are Highly Regulated, and Changes in Regulation and in Supervisory and Enforcement Policies May Reduce Our Profitability and Limit Our Growth” included in the 20162021 Annual Report, as amended or supplemented in our subsequently filed Quarterly Reports on Form 10-Q under the caption “Management’s Discussionhere.
Environmental Laws and AnalysisRegulations
In furtherance of Financial Condition and Results of Operations — Business — Regulatory Developments” and similarly named sections under the caption “Risk Factors.”

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The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) effected the most far-reaching overhaul of financial regulation in the United States in decades. However, President Trump and the majority party have expressed goals to amend Dodd-Frank. On June 8, 2017, the U.S. House of Representatives passed the Financial CHOICE Act of 2017, which proposes to amend or repeal various sections of Dodd-Frank. This proposed legislation is now being considered by the U.S. Senate. On February 3, 2017, President Trump issued anBiden’s Executive Order that calls for a comprehensive review of laws, treaties, regulations, policies and guidance regulatingon Climate-Related Financial Risk, dated May 20, 2021, the U.S.Federal Insurance Office (“FIO”) sought public comment on climate-related financial system, and requires the Secretary of the Treasury to consult with the heads of the member agencies of FSOC to identify any laws, regulations or requirements that inhibit federal regulation of the financial system in a manner consistent with the core principles identified in the Executive Order. The Secretary’s report on asset management and insurance was issued on October 26, 2017 and recommended activities-based evaluations of systemic riskrisks in the insurance industry rather than an entity-based approach.through November 2021. The FIO’s request for information noted that it will work on assessing how the insurance sector may mitigate climate change impacts and help achieve national climate-related goals. The FIO intends to publish a report also supported primaryby year-end that addresses climate-related issues in the regulation of the U.S. insurance industryinsurers and climate related disclosures by the states rather than the federal government. See “Business — Regulation — Insurance Regulation” and “Risk Factors — Regulatory and Legal Risks — Our Insurance Businesses Are Highly Regulated and Changes in Regulation and In Supervisory and Enforcement Policies May Reduce Our Profitability and Limit Our Growth” in the 2016 Annual Report, as amended or supplemented in our subsequently filed Quarterly Reports on Form 10-Q, for a discussion of Dodd-Frank and other U.S. regulation.
Insurance Regulation
Insurance Regulatory Examinations and Other Activities
The International Association of Insurance Supervisors has encouraged U.S. insurance supervisors, such as the New York State Department of Financial Services (“NYDFS”), to establish Supervisory Colleges for U.S.-based insurance groups with international operations, including MetLife, to facilitate cooperation and coordination among the insurance groups’ supervisors and to enhance the member regulators’ understanding of an insurance group’s risk profile. In October 2017, a Supervisory College meeting was chaired by the NYDFS and attended by MetLife’s key U.S. and international regulators. MetLife has not received any reports or recommendations from the Supervisory College meeting, and we do not expect any outcome of the meeting to have a material adverse effect on our business.
ERISA Considerations
We provide products and services to certain employee benefit plans that are subject to ERISA or the Internal Revenue Code of 1986, as amended (the “Code”). The applicable provisions of ERISA and the Code are subject to enforcement by the Department of Labor (“DOL”), among others. DOL regulations which became effective on June 9, 2017 broadened circumstances under which we may be deemed fiduciaries under ERISA in providing investment advice, increasing our potential exposure to fiduciary liabilities. Regulations that apply more onerous disclosure requirements and increase fiduciary requirements also become effective on January 1, 2018. On February 3, 2017, President Trump asked the DOL to update its analysis of the impact of the new regulations and possibly propose new regulations. On July 6, 2017, the DOL published a new Request for Information regarding a possible delay in the applicability date of January 1, 2018 along with possible additional changes to the rule. Following this, on August 31, 2017, the DOL proposed to delay the applicability date to July 1, 2019. The public comment period for that proposal ended on September 15, 2017. The rule is also being challenged in the Fifth Circuit Court of Appeals (and elsewhere), where a decision is expected by the end of 2017. See “Risk Factors — Regulatory and Legal Risks — Our Insurance Businesses Are Highly Regulated, and Changes in Regulation and in Supervisory and Enforcement Policies May Reduce Our Profitability and Limit Our Growth” in the 2016 Annual Report. 
Potential Regulation of MetLife, Inc. as a Non-Bank SIFI
See “— Overview — Other Key Information — Non-Bank SIFI” above for recent developments concerning FSOC’s appeal of the D.C. District Court’s order that the designation of MetLife, Inc. as a non-bank SIFI by the FSOC be rescinded.
Regulation of Over-the-Counter Derivatives and Qualified Financial Contracts
Federal banking regulators have recently adopted new rules that will apply to certain qualified financial contracts, including many derivatives contracts, securities lending agreements and repurchase agreements, with certain banking institutions and certain of their affiliates. These new rules, which will begin to go into effect in 2019, will generally require the banking institutions and their applicable affiliates to include contractual provisions in their qualified financial contracts that limit or delay certain rights of their counterparties including counterparties’ default rights (such as the right to terminate the contracts or foreclose on collateral) and restrictions on assignments and transfers of credit enhancements (such as guarantees) arising in connection with the banking institution or an applicable affiliate becoming subject to a bankruptcy, insolvency, resolution or similar proceeding. To the extent that any of the derivatives, securities lending agreements or repurchase agreements that we enter into are subject to these new rules, it could limit our recovery in the event of a default and increase our counterparty risk.

insurers.
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On March 21, 2022, the U.S. Securities and Exchange Commission proposed rules requiring registrants to provide additional climate-related information in their registration statements and annual reports, including in their financial statements. The proposal sets forth proposed rules for disclosure of climate-related risks, material impacts, governance, risk management, financial statement metrics, greenhouse gas emissions, attestation of emissions disclosures, and targets and goals.
London Interbank Offered Rate
In March 2022, federal legislation was enacted to address the transition from U.S. Dollar London Interbank Offered Rate (“LIBOR”) to alternative reference rates for all U.S. law governed contracts with non-existent or inadequate U.S. Dollar LIBOR fallback provisions. The federal legislation supersedes all state law addressing the U.S. Dollar LIBOR transition, including legislation enacted in New York in 2021. We continue to assess current and alternative reference rates’ merits, limitations, risks and suitability for our investment and insurance processes.
Summary of Critical Accounting Estimates
The preparation of financial statements in conformity with GAAP requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the Interim Condensed Consolidated Financial Statements. The most critical estimates include those used in determining:
(i)liabilities for future policy benefits and the accounting for reinsurance;
(ii)capitalization and amortization of deferred policy acquisition costs (“DAC”) and the establishment and amortization of value of business acquired (“VOBA”);
(iii)estimated fair values of investments in the absence of quoted market values;
(iv)investment impairments;
(v)estimated fair values of freestanding derivatives and the recognition and estimated fair value of embedded derivatives requiring bifurcation;
(vi)measurement of employee benefit plan liabilities;
(vii)
measurement of income taxes and the valuation of deferred tax assets; and
(i)    liabilities for future policy benefits and the accounting for reinsurance;
(ii)    capitalization and amortization of deferred policy acquisition costs (“DAC”) and the establishment and amortization of value of business acquired (“VOBA”);
(iii)    estimated fair values of investments in the absence of quoted market values;
(iv)    investment allowance for credit loss and impairments;
(v)    estimated fair values of freestanding derivatives and the recognition and estimated fair value of embedded derivatives requiring bifurcation;
(vi)    measurement of employee benefit plan liabilities;
(vii)measurement of income taxes and the valuation of deferred tax assets; and
(viii)liabilities for litigation and regulatory matters.
(viii)
liabilities for litigation and regulatory matters.
In applying our accountingthese 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 our business and operations. Actual results could differ from these estimates.
The aboveCompany’s critical accounting estimates are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates” and Note 1 of the Notes to the Consolidated Financial Statements included in the 20162021 Annual Report.

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Results of Operations
Consolidated Results
Business Overview. Overall sales for the nine months ended September 30, 2017 increased over prior period levels reflecting higher sales from our U.S. segment in both our Retirement and Income Solutions (“RIS”) and Group Benefits businesses. The increase in RIS was primarily driven by an increase in funding agreement issuances, as well as higher sales of pension risk transfers and stable value products, partially offset by lower sales of structured settlements. Strong performance from our core and voluntary products resulted in a 22% increase in sales from our Group Benefits business. In connection with the Separation and the U.S. Retail Advisor Force Divestiture, we have discontinued the marketing of life and annuity products in our MetLife Holdings segment, which has led to lower sales.
Three Months
Ended
March 31,
20222021
(In millions)
Revenues
Premiums$5,910 $5,805 
Universal life and investment-type product policy fees524 535 
Net investment income2,826 3,187 
Other revenues412 425 
Net investment gains (losses)(226)160 
Net derivative gains (losses)181 (1,015)
Total revenues9,627 9,097 
Expenses
Policyholder benefits and claims and policyholder dividends6,720 6,784 
Interest credited to policyholder account balances491 511 
Capitalization of DAC(27)(19)
Amortization of DAC and VOBA71 40 
Interest expense on debt24 24 
Other expenses1,231 1,141 
Total expenses8,510 8,481 
Income (loss) before provision for income tax1,117 616 
Provision for income tax expense (benefit)158 49 
Net income (loss)959 567 
Less: Net income (loss) attributable to noncontrolling interests— 3 
Net income (loss) attributable to Metropolitan Life Insurance Company$959 $564 
 Nine Months
Ended
September 30,
 2017 2016
 (In millions)
Revenues   
Premiums$17,597
 $16,801
Universal life and investment-type product policy fees1,706
 1,928
Net investment income7,955
 8,349
Other revenues1,148
 1,121
Net investment gains (losses)184
 115
Net derivative gains (losses)(317) (562)
Total revenues28,273
 27,752
Expenses   
Policyholder benefits and claims and policyholder dividends20,388
 19,943
Interest credited to policyholder account balances1,660
 1,675
Capitalization of DAC(57) (285)
Amortization of DAC and VOBA124
 420
Interest expense on debt79
 84
Other expenses3,662
 4,231
Total expenses25,856
 26,068
Income (loss) before provision for income tax2,417
 1,684
Provision for income tax expense (benefit)475
 232
Net income (loss)1,942
 1,452
Less: Net income (loss) attributable to noncontrolling interests8
 (9)
Net income (loss) attributable to Metropolitan Life Insurance Company$1,934
 $1,461
NineThree Months Ended September 30, 2017March 31, 2022 Compared with the NineThree Months Ended September 30, 2016March 31, 2021
During the ninethree months ended September 30, 2017,March 31, 2022, net income (loss) before provision for income tax increased $733$392 million ($490 million, net of income tax) from the prior period, primarily driven by a favorable change in net derivative gains (losses), net of investment hedge adjustments, partially offset by unfavorable changes in operatingadjusted earnings and net derivativeinvestment gains (losses). As previously discussed, MLIC distributed to MetLife, Inc., as a non-cash extraordinary dividend, all of the issued and outstanding shares of common stock of each of NELICO and GALIC in December 2016. This transaction resulted in a $40 million decrease in net income for the nine months ended September 30, 2017 as compared to the prior period.

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Management of Investment Portfolio and Hedging Market Risks with Derivatives.Derivatives. We manage our investment portfolio using disciplined asset/liability management principles, focusing on cash flow and duration to support our current and future liabilities. Our intent is to match the timing and amount of liability cash outflows with invested assets that have cash inflows of comparable timing and amount, while optimizing risk-adjusted net investment income and risk-adjusted total return. Our investment portfolio is heavily weighted toward fixed income investments, with over 80% of our portfolio invested in fixed maturity securities available-for-sale and mortgage loans. These securities and loans have varying maturities and other characteristics which cause them to be generally well suited for matching the cash flow and duration of insurance liabilities.
We purchase investments to support our insurance liabilities and not to generate net investment gains and losses. However, net investment gains and losses are incurred and can change significantly from period to period due to changes in external influences, including changes in market factors such as interest rates, foreign currency exchange rates, credit spreads and equity markets; counterparty specific factors such as financial performance, credit rating and collateral valuation; and internal factors such as portfolio rebalancing. Changes in these factors from period to period can significantly impact the levels of bothprovision for credit loss and impairments andon our investment portfolio, as well as realized gains and losses on investments sold.
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We also use derivatives as an integral part of our management of the investment portfolio and insurance liabilities to hedge certain risks, including changes in interest rates, foreign currency exchange rates, credit spreads and equity market levels.
We use freestanding interest rate, equity, credit and currency derivatives to hedge certain invested assets and insurance liabilities. A small portion of these hedges are designated and qualify as accounting hedges, which reduce volatility in earnings. For those hedges not designated as accounting hedges, changes in market factors lead to the recognition of fair value changes in net derivative gains (losses) generally without an offsetting gain or loss recognized in earnings for the item being hedged, which creates volatility in earnings. During the first quarter of 2017, we began restructuring certain derivative hedges to partially stabilize volatility from nonqualified interest rate derivatives and to help meet prospective dividend objectives under varying interest rate scenarios. The restructuring of the hedge program is substantially complete in meeting our initial objectives. As part of this restructuring, we replaced certain nonqualified derivatives with derivatives that qualify for hedge accounting treatment. In addition, we also entered into replication transactions using interest rate swaps, which are accounted for at amortized cost under statutory guidelines and are nonqualified derivatives under GAAP. We actively evaluate market risk hedging needs and strategies to ensure our capitalliquidity objectives are met under a range of market conditions.
Certain direct or assumed variable annuity products with guaranteed minimum benefits contain embedded derivatives that are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value recorded in net derivative gains (losses). We use reinsurance andfreestanding derivatives to hedge the market and other risks inherent in these variable annuity guarantees. Ceded reinsurance of direct variable annuity products with guaranteed minimum benefits generally contain embedded derivatives that are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value recorded in net derivative gains (losses). The valuation of these embedded derivatives includes a nonperformance risk adjustment, which is unhedged, and can be a significant driver of net derivative gains (losses) and volatility in earnings, but does not have an economic impact on us.

We continuously review and refine our hedging strategy in light of changing economic and market conditions, evolving National Association of Insurance Commissioners and New York State Department of Financial Services statutory requirements, and accounting rule changes. As a part of our current hedging strategy, we maintain portfolio level derivatives in our macro hedge program. These macro hedge program derivatives, which are included in the non-VA program derivatives section of the table below, mitigate the potential deterioration in our capital positions from significant adverse economic conditions.
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Net Derivative Gains (Losses). Direct assumed and cededassumed variable annuity embedded derivatives as well as theand associated freestanding derivatives,derivative hedges are collectively referred to as “VA program derivatives” in the following table.derivatives.” All other embedded derivatives and all freestanding derivatives that are economic hedges of certain invested assets and insurance liabilities are referred to as “non-VA program derivatives” in the following table.derivatives.” The table below presents the impact on net derivative gains (losses) from non-VA program derivatives and VA program derivatives:
Three Months
Ended
March 31,
20222021
(In millions)
Non-VA program derivatives:
Interest rate$(392)$(1,060)
Foreign currency exchange rate69 27 
Credit5 19 
Equity14 (443)
Non-VA embedded derivatives477 432 
Total non-VA program derivatives173 (1,025)
VA program derivatives:
Embedded derivatives-direct and assumed guarantees:
Market risks185 474 
Nonperformance risk adjustment(15)(18)
Other risks(31)(2)
Total139 454 
Freestanding derivatives hedging direct and assumed embedded derivatives(131)(444)
Total VA program derivatives8 10 
Net derivative gains (losses)$181 $(1,015)
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 Nine Months 
 Ended
September 30,
 2017 2016
 (In millions)
Non-VA program derivatives   
Interest rate$68
 $992
Foreign currency exchange rate(354) (50)
Credit107
 45
Equity26
 9
Non-VA embedded derivatives(190) (664)
Total non-VA program derivatives(343) 332
VA program derivatives   
Embedded derivatives-direct and assumed guarantees:   
Market risks511
 (85)
Nonperformance risk adjustment(39) 173
Other risks145
 (1,209)
Total617
 (1,121)
Embedded derivatives - ceded reinsurance:   
Market and other risks(110) 340
Nonperformance risk adjustment—
 (64)
Total(110) 276
Freestanding derivatives hedging direct and assumed embedded derivatives(481) (49)
Total VA program derivatives26
 (894)
Net derivative gains (losses)$(317) $(562)
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The unfavorablefavorable change in net derivative gains (losses) on non-VA program derivatives was $675 million$1.2 billion ($439946 million, net of income tax). This was primarily due to mid- and long-term interest rates decreasingincreasing less in the current period versusas compared to the prior period, unfavorably impacting receive-fixedperiod. This favorably impacted the estimated fair value of receive fixed interest rate swaps, swaptions and floors, primarily hedging long duration liability portfolios. Additionally, the U.S. dollar weakened in relation to other key currencies moreswaps. Key equity indexes decreased in the current period relative toversus increased in the prior period unfavorably impacting foreign currency swaps that primarily hedge foreign currency-denominated bonds. These unfavorable changes were partially offset by a change in the value of the underlying assets favorably impacting non-VA embedded derivatives related to funds withheld on a certain reinsurance agreement.equity options and total rate of return swaps acquired primarily as part of our macro hedge program. Because certain of these hedging strategies are not designated or do not qualify as accounting hedges, the changes in the estimated fair value of these freestanding derivatives are recognized in net derivative gains (losses) without an offsetting gain or loss recognized in earnings for the itemitems being hedged.
The favorableunfavorable change in net derivative gains (losses) on VA program derivatives was $920$2 million ($5982 million, net of income tax). This was due to a favorablean unfavorable change of $1.1 billion$29 million ($69423 million, net of income tax) in market and other risks in embedded derivatives. This was partially offset by (i) a favorable change of $24 million ($19 million, net of income tax) in freestanding derivatives hedging market risks in embedded derivatives net of market risks in embedded derivatives, and (ii) a favorable change of $3 million ($2 million, net of income tax) in the nonperformance risk adjustment on the direct and assumed variable annuity embedded derivatives, net of the impact of market and other risks on the ceded reinsurance embedded derivatives and net of freestanding derivatives hedging those risks, partially offset by an unfavorable change of $148derivatives.
The aforementioned $29 million ($9623 million, net of income tax) relatedunfavorable change in other risks in embedded derivatives reflects actuarial assumption updates and a combination of factors, such as fees deducted from accounts, changes in the benefit base, premiums, lapses, withdrawals and deaths, in addition to changes to cross-effect, basis mismatch, risk margin and fund allocation.
The aforementioned $24 million ($19 million, net of income tax) favorable change reflects a $313 million ($247 million, net of income tax) favorable change in freestanding derivatives hedging market risks in embedded derivatives, partially offset a $289 million ($228 million, net of income tax) unfavorable change in market risks in embedded derivatives.
The primary changes in market factors affecting the valuation of VA program derivatives are summarized as follows:
•Long-term interest rates increased less in the current period compared to the prior period, contributing to a favorable change in our freestanding derivatives and an unfavorable change in our embedded derivatives. For example, the 30-year U.S. swap rate increased 52 basis points in the current period and increased 80 basis points in the prior period.
•Key equity index levels decreased in the current period versus increased in the prior period, contributing to a favorable change in our freestanding derivatives and an unfavorable change in our embedded derivatives. For example, the S&P Global Ratings 500 Index decreased 5% in the current period and increased 6% in the prior period.
The aforementioned $3 million ($2 million, net of income tax) favorable change in the nonperformance risk adjustment on the direct and assumed variable annuity embedded derivatives net of the impact of the nonperformance risk adjustment on the ceded variable annuity embedded derivatives. Other risks relate primarily to the impact of policyholder behaviorresulted from model changes and other non-market risks that generally cannot be hedged.

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The foregoing favorable change of $1.1 billion ($694 million, net of income tax) was primarily driven by changes in market factors and other risks.
The primary changes in market factors are summarized as follows:
Long-term interest rates decreased less in the current period than in the prior period, contributing to an unfavorable change in our freestanding derivatives and a favorable change in our embedded derivatives. For example, the 30-year U.S. swap rate decreased 6 basis points in the current period and decreased 84 basis points in the prior period.
Key weighted average equity index levels increased more in the current period than in the prior period, contributing to an unfavorable change in our freestanding derivatives and a favorable change in our embedded derivatives.
The primary changes in other risks are summarized as follows:
Updates to actuarial policyholder behavior assumptions within the valuation model;
Impacts due to variable annuity reinsurance recaptures, which became effective in the first quarter of 2017;
An increase in the risk margin adjustment measuring policyholder behavior risks, which was affected by market and interest rate changes; and
A combination of other factors, which include fees being deducted from accounts and changes in the benefit base, premiums, lapses, withdrawals and deaths.
We calculate the nonperformance risk adjustment as the change in the embedded derivative discounted at the risk-adjusted rate (which includes our own credit spread to the extent that the embedded derivative is in-the-money) less the change in the embedded derivative discounted at the risk-free rate. The unfavorable change in the nonperformance risk adjustment on the direct and assumed variable annuity embedded derivatives of $212 million ($138 million, net of income tax) was primarily due to an unfavorable change of $190 million, before income tax, as a result of changes in capital market inputs, such as long-term interest rates and key equity index levels, on variable annuity guarantees, and an unfavorable change of $22 million, before income tax, related to changes in our own credit spread. The favorable change in the nonperformance risk adjustment on the ceded variable annuity embedded derivatives of $64 million ($42 million, net of income tax) was due to a favorable change of $53 million, before income tax, as a result of the impact of changes in capital market inputs, such as long-term interest rates and key equity index levels, on variable annuity guarantees, and a favorable change of $11 million, before income tax, related to changes in our own credit spread.guarantees.
When equity index levels decrease in isolation, the direct and assumed variable annuity guarantees become more valuable to policyholders, which results in an increase in the undiscounted embedded derivative liability. Discounting this unfavorable change by the risk adjusted rate yieldsresults in a smaller loss than by discounting at the risk-free rate, thus creating a gain from including an adjustment for nonperformance risk on the direct and assumed variable annuity embedded derivatives. The opposite impact occurs with respect to the nonperformance risk adjustment on the ceded variable annuity guarantees.
When the risk-free interest rate decreases in isolation, discounting the embedded derivative liability produces a higher valuation of the liability than if the risk-free interest rate had remained constant. Discounting this unfavorable change by the risk adjusted rate yieldsresults in a smaller loss than by discounting at the risk-free interest rate, thus creating a gain from including an adjustment for nonperformance risk on the direct and assumed variable annuity embedded derivatives. The opposite impact occurs with respect to the nonperformance risk adjustment on the ceded variable annuity guarantees.
When our own credit spread increases in isolation, discounting the embedded derivative liability produces a lower valuation of the liability than if our own credit spread had remained constant. As a result, a gain is created from including an adjustment for nonperformance risk on the direct and assumed variable annuity embedded derivatives. The opposite impact occurs with respect to the nonperformance risk adjustment on the ceded variable annuity guarantees when the reinsurer’s credit spread increases in isolation. For each of these primary market drivers, the opposite effect occurs when they movethe driver moves in the opposite direction.
Generally, a higher portion of the ceded reinsurance for guaranteed minimum income benefits (“GMIBs”) is accounted for as an embedded derivative as compared to the direct guarantees since the settlement provisions of the reinsurance agreements generally meet the accounting criteria of “net settlement.” This mismatch in accounting can lead to significant volatility in earnings, even though the risks inherent in these direct guarantees are fully covered by the ceded reinsurance.

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Net Investment Gains (Losses).The favorableunfavorable change in net investment gains (losses) of $69$386 million ($45305 million, net of income tax) primarily reflectsreflects: (i) higher losses on sales on fixed maturity securities, (ii) higher provisions for credit loss on fixed maturity securities, (iii) prior period gains on sales of real estate joint venturesinvestments, and (iv) lower impairmentscurrent period releases of fixed maturity and equity securities. These favorable changes were partially offset by lower gains on sales of fixed maturity and equity securities, lower foreign currency transaction gains, increased provisions for loan lossescredit loss on mortgage loans and higher impairments on leveraged leases.
Actuarial Assumption Review. Results for the current period include a $74 million ($48 million, net of income tax) gain associated with our annual review of actuarial assumptions relatedcompared to reserves and DAC, of which an $18 million ($12 million, net of income tax) gain was recognized in net derivative gains (losses). Of the $74 million gain, a $141 million ($92 million, net of income tax) gain was associated with DAC, offset by a $67 million ($44 million, net of income tax) loss related to reserves. The $18 million gain recognized in net derivative gains (losses) associated with this annual review of actuarial assumptions was included within the other risks in embedded derivatives - direct and assumed guarantees caption in the table above.
As a result of our annual review of actuarial assumptions, changes were made to policyholder behavior, mortality and operational assumptions. The significant impacts of the assumption review were on the individual life and variable annuity blocks of business and are summarized as follows:
Changes in the mortality assumptions resulted in a net charge of $23 million ($15 million, net of income tax).
Changes in policyholder behavior assumptions resulted in reserve increases, net of reinsurance, which were partially offset by favorable DAC, resulting in a net charge of $45 million ($29 million net of income tax).
Operational updates, most notably related to updates to maintenance expense assumptions and the closed block projections, resulted in a net gain of $142 million ($92 million, net of income tax).
Results for the prior period include a $722 million ($469 million, netperiod.
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Table of income tax) loss associated withContents
Taxes. For the annual review of actuarial assumptions related to reserves and DAC, of which a $798 million ($519 million, net of income tax) loss was recognized in net derivative gains (losses). Of the $722 million charge, a $787 million ($512 million, net of income tax) loss was related to reserves while a $65 million ($43 million, net of income tax) gain was associated with DAC.
Taxes. Income tax expense for the ninethree months ended September 30, 2017 was $475 million, or 20% ofMarch 31, 2022, our effective tax rate on income (loss) before provision for income tax compared with income tax expense of $232 million, orwas 14% of income before provision for income tax, for the nine months ended September 30, 2016. Our effective tax rates differ, which differed from the U.S. statutory rate of 35%21% primarily due to tax benefits from tax credits, the corporate tax deduction for stock compensation and non-taxable investment income. For the three months ended March 31, 2021, our effective tax rate on income (loss) before provision for income tax was 8%, which differed from the U.S. statutory rate of 21% primarily due to tax benefits from non-taxable investment income, and tax credits and the corporate tax deduction for low income housing. Current and prior period results include tax benefits of $25 million and $36 million, respectively, for tax audit settlements.stock compensation.
OperatingAdjusted Earnings. As more fully described in “— Non-GAAP and Other Financial Disclosures,” we use operatingadjusted earnings, which does not equate to net income (loss), as determined in accordance with GAAP, to analyze our performance, evaluate segment performance, and allocate resources. We believe that the presentation of operatingadjusted earnings, as we measure it for management purposes, enhances the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of the business. OperatingAdjusted earnings allows analysis of our performance and facilitates comparisons to industry results. OperatingAdjusted earnings should not be viewed as a substitute for net income (loss). OperatingAdjusted earnings increased $329decreased $384 million, net of income tax, to $2.3$1.0 billion, net of income tax, for the ninethree months ended September 30, 2017March 31, 2022 from $1.9$1.4 billion, net of income tax, for the ninethree months ended September 30, 2016.March 31, 2021.

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Reconciliation of net income (loss) to operatingadjusted earnings
 Nine Months
Ended
September 30,
 2017
2016
 (In millions)
Net income (loss)$1,942
 $1,452
Less: Net investment gains (losses)184
 115
Less: Net derivative gains (losses)(317) (562)
Less: Other adjustments to net income (1)(373) (306)
Less: Provision for income tax (expense) benefit177
 263
Operating earnings$2,271
 $1,942
__________________
(1)See definitions of operating revenues and operating expenses under “— Non-GAAP and Other Financial Disclosures” for the components of such adjustments.
Reconciliation of and premiums, fees and other revenues to operatingadjusted premiums, fees and other revenues and expenses to operating expenses
Three Months
Ended
March 31,
20222021
(In millions)
Net income (loss)$959 $567 
Less: adjustments from net income (loss) to adjusted earnings:
Revenues:
Net investment gains (losses)(226)160 
Net derivative gains (losses)181 (1,015)
Premiums— — 
Universal life and investment-type product policy fees19 20 
Net investment income(131)(150)
Other revenues— — 
Expenses:
Policyholder benefits and claims and policyholder dividends95 (69)
Interest credited to policyholder account balances— 1 
Capitalization of DAC— — 
Amortization of DAC and VOBA3 7 
Interest expense on debt— — 
Other expenses— 3 
Provision for income tax (expense) benefit11 219 
Adjusted earnings$1,007 $1,391 
Premiums, fees and other revenues$6,846 $6,765 
Less: adjustments to premiums, fees and other revenues19 20 
Adjusted premiums, fees and other revenues$6,827 $6,745 
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 Nine Months
Ended
September 30,
 2017 2016
 (In millions)
Total revenues$28,273
 $27,752
Less: Net investment gains (losses)184
 115
Less: Net derivative gains (losses)(317) (562)
Less: Other adjustments to revenues (1)(226) (317)
Total operating revenues$28,632
 $28,516
Total expenses$25,856
 $26,068
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)(66) (281)
Less: Other adjustments to expenses (1)213
 270
Total operating expenses$25,709
 $26,079
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(1)See definitions of operating revenues and operating expenses under “— Non-GAAP and Other Financial Disclosures” for the components of such adjustments.
Consolidated Results — OperatingAdjusted Earnings
NineBusiness Overview. Adjusted premiums, fees, and other revenues for the three months ended March 31, 2022 increased $82 million, or 1%, compared to the prior period, primarily due to growth in the Group Benefits business in our U.S. segment. Growth from our group life business included increased premiums from our participating contracts, which can fluctuate with claims experience. In addition, growth in other core and voluntary products contributed to the increase. The growth in other core products was driven by increases in our group disability and dental businesses. These increases were partially offset by a decrease in our Retirement and Income Solutions (“RIS”) business, mainly driven by a decrease in our post-retirement benefits products. Changes in RIS premiums are mostly offset by a corresponding change in policyholder benefits. In our MetLife Holdings segment, we anticipate an annual decline in adjusted premiums, fees and other revenues from expected business run-off.
Three Months Ended September 30, 2017March 31, 2022 Compared with the NineThree Months Ended September 30, 2016March 31, 2021
Unless otherwise stated, all amounts discussed below are net of income tax.
As previously mentioned, MLIC transferredOverview. The primary driver of the issued and outstanding shares of NELICO’s and GALIC’s common stock to MetLife, Inc. in the form of a non-cash extraordinary dividend in December 2016. This transaction, which is excluded from the discussion below, resulted in an $87 million decrease in operatingadjusted earnings as compared to the prior period.

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Business Growth. An increase inwas lower investment yields. In addition, underwriting experience was unfavorable and expenses were higher, however, interest credited expenses declined and net investment income wasincreased due to asset growthhigher average invested assets.
Business Growth. The impact of positive net flows from funding agreement issuances resulted in ourhigher average invested assets, improving net investment income within the U.S. segment,segment. However, consistent with the growth in the U.S. segment’s average invested assets, from increased net flows in our RIS business. This increase was partially offset by negative net flows, primarily as a result of a reduced asset base in our MetLife Holdings segment, due to the recapture of two assumed single-premium deferred annuity reinsurance agreements with Brighthouse. Consistent with the growth in average invested assets from increased premiums in the U.S. segment, interest credited expenses on long-duration contractsliabilities increased. In our MetLife Holdings segment, negative net flows infrom our deferred annuitiesannuity business and a decrease in universal life sales resulted in lower asset-based fee income, decreasing operatingincome. In addition, premiums declined due to business run-off and the impact of dividend scale reductions, which decreased adjusted earnings. Higher interest credited on insurance liabilities and DAC amortizationAlso, in our MetLife Holdings segment also decreased operating earnings. In our U.S. segment, an increase in premiums, fees and other revenues, coupled with a decline inhigher direct and allocated expenses, wasincluding certain employee-related costs, were partially offset by higher volume-relatedlower general and administrative expenses. The current period abatement of the annual health insurer fee under the Patient Protection and Affordable Care ActThis net increase in expenses was largely offset by a corresponding decreaseincrease in adjusted premiums, fees and other revenues. The combined impact of the items discussed above decreased operatingaffecting our business growth increased adjusted earnings by $67$64 million.
Market Factors. Market factors, including interest rate levels, variability in equity market returns, and foreign currency exchange rate fluctuations, continued to impact our results; however, certain impacts were mitigated by derivatives used to hedge these risks. Investment yields were negatively affecteddecreased driven by the unfavorable impact of lower prepayment fees,equity market returns on our private equity funds and hedge funds, lower yields on fixed income on derivativessecurities and mortgage loans and lower returns on real estate joint ventures. In addition, earnings on our securities lending program decreased, which primarily resulted from lower margins due to a flatter yield curve.fair value option securities. These declinesdecreases were partially offset by the favorable impact of higher incomereal estate market returns on other limited partnership interests, driven by improvements in equity market performance, and increased yields on fixed maturity securities.our real estate investments, primarily real estate funds. In our MetLife HoldingsU.S. segment, higher equity returns drove an increasethe impact of interest rate fluctuations resulted in average separate account balances, resulting in higher asset-based feesa decline in our deferred annuities business. Certain of our funding agreements and guaranteed interest contract liabilities haveaverage interest credited rates that are contractually tied to current market rates, specifically the 3-month London Interbank Offered Rate (“LIBOR”)on our deposit-type and asour long-duration liabilities, which drove a result, a higher average interest credited rate drove an increasedecrease in interest credited expense. In addition, the crediting rate on certain long-duration insurance contracts increased, which decreased operating earnings.expenses. The changes in market factors discussed above resulted in a $22$372 million decrease in operatingadjusted earnings.
Underwriting Actuarial Assumption Review and Other Insurance Adjustments. Favorable underwriting increased operatingUnderwriting results decreased adjusted earnings by $87$45 million primarily due to unfavorable claims experience in both of our segments, partially offset by favorable mortality in our MetLife Holdings and U.S. segments and favorable morbidity in our U.S. segment. Mortality results improved by $58 million primarily as a result of lower life claim severity inIn our MetLife Holdings segment, and favorable claims experience, in our U.S. segment, mainly driven by a prior period development in our term life business and favorable current period mortality in our pension risk transfer, structured settlement and post-retirement benefit businesses. These positive results were partially offset by less favorable mortality in our accidental death and dismemberment and universal life businesses, driven by higher incidence and severity, as well as less favorable mortality in our specialized life insurance and income annuities businesses. A $29 million increase in operating earnings was driven by favorable morbidity experience in our U.S. segment, partially offset by unfavorable morbidity experience due to higher claim severity and volume in our long-term care business, was less favorable reflecting a smaller impact from the COVID-19 pandemic on this business in our MetLife Holdings segment. The favorable morbidity experience inthe current period. In our U.S. segment, was the result of favorable prior period development, current period utilization and the impact of pricing actions in our dental business, as well as favorableunfavorable claims experience in our group disability andbusiness was partially offset by the impact of growth in our accident & health and vision businesses. The impactFavorable mortality in both periods of our annual actuarial assumption review resulted in a $170 million increase in operating earnings,U.S. segment was primarily driven by our Group Benefits business, as well as favorable DAC unlockings in the current period compared to unfavorable DAC unlockings in the prior period, primarily in the life businessmortality in our MetLife Holdings segment.RIS business. The favorable Group Benefits mortality was the result of decreases in both incidence and severity of COVID-19 claims, partially offset by increases in core claims across our life businesses and less favorable accidental death & dismemberment experience. Favorable mortality in our RIS business was driven by our specialized benefit resource and institutional income annuity businesses. Refinements to DAC and certain insurance-related and other liabilities which were recorded in both periods resulted in an increase in operating earnings of $73 million. This includes current period refinements in the MetLife Holdings segment of (i) favorable reserve adjustments resulting from modeling improvements in the reserving process of $32 million and $28 million, in our life and long-term care businesses, respectively; (ii) a $10 million unfavorable DAC adjustment related to certain participating whole life business assumed from Brighthouse; and (iii) a net unfavorable impact from an affiliated life reinsurance recapture. This also includes an unfavorable prior period refinement resulting from modeling improvements in the reserving process for our universal life business in the MetLife Holdings segment, which increased operating earnings by $25 million decrease in the current period.
Expensesadjusted earnings. Dividend scale reductions, as well as run-off in MLIC’s closed block, contributed to lower dividend expense, net of DAC amortization, and Taxes. An $88resulted in a $25 million increase in expenses was primarilyadjusted earnings.
Expenses. Adjusted earnings decreased $29 million mainly due to an increaseincreases in costs associated with corporate initiatives and projects, higher employee-relatedcorporate-related expenses and expenses incurredlower interest on certain tax positions in the current period related toprior period.
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Taxes. For the guaranty fund assessment for Penn Treaty Network America Insurance Company, partially offset by lower costs as a result of the U.S. Retail Advisor Force Divestiture. Costs associated with corporate initiatives and projects include leasehold impairments, Separation-related costs and costs related tothree months ended March 31, 2022, our unit cost initiative. Our effective tax rates differrate on adjusted earnings was 14%, which differed from the U.S. statutory rate of 35%21% primarily due to tax benefits from tax credits, the corporate tax deduction for stock compensation and non-taxable investment income. For the three months ended March 31, 2021, our effective tax rate on adjusted earnings was 16%, which differed from the U.S. statutory rate of 21% primarily due to tax benefits from tax credits, non-taxable investment income, and the corporate tax creditsdeduction for investments in low income housing. Current and prior period results include tax benefits of $25 million and $36 million, respectively, for tax audit settlements.stock compensation.

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Other. In connection with the Separation, annuities reinsurance activity with Brighthouse increased operating earnings by $254 million. This favorable impact was primarily due to the recapture in 2016 of certain single-premium deferred annuity reinsurance agreements and the elimination of interest credited payments on the related reinsurance payable, as well as lower DAC amortization. This increase was partially offset by the net unfavorable impact in the current period from the recapture and novation of, as well as refinements to, assumed and ceded agreements covering certain variable annuity business.
Adoption of NewAdopted Accounting Pronouncements
See Note 1 of the Notes to the Interim Condensed Consolidated Financial Statements.
Future Adoption of New Accounting Pronouncements
See Note 1 of the Notes to the Interim Condensed Consolidated Financial Statements.
Non-GAAP and Other Financial Disclosures
In this report, the Company presents certain measures of its performance that are not calculated in accordance with GAAP. We believe that these non-GAAP financial measures enhance the understanding for the Company and our investors of our performance by highlighting the results of operations and the underlying profitability drivers of our business.
The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:
Non-GAAP financial measures:Comparable GAAP financial measures:
(i)operatingadjusted premiums, fees and other revenues(i)premiums, fees and other revenues
(ii)operating expensesadjusted earnings(ii)expenses
(iii)operating earnings(iii)net income (loss)
Reconciliations of these non-GAAP financial measures to the most directly comparable historical GAAP financial measures are included in the results of operations, see “— Results of Operations.” Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures isare not accessible on a forward-looking basis because we believe it is not possible without unreasonable effortseffort to provide other than a range of net investment gains and losses and net derivative gains and losses, which can fluctuate significantly within or outside the range and from period to period and may have a material impact on net income.
Our definitions of the various non-GAAP and other financial measures discussed in this report may differ from those used by other companies:companies.
OperatingAdjusted earnings
This measure is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, operatingadjusted earnings is also our GAAP measure of segment performance. OperatingAdjusted earnings allows analysis of our performance and facilitates comparisons to industry results.
OperatingAdjusted earnings is defined as operatingadjusted revenues less operatingadjusted expenses, both net of income tax.

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Operating Adjusted loss is defined as negative adjusted earnings. For information relating to adjusted revenues and operatingadjusted expenses,
These financial measures focus on our primary businesses principally by excluding the impact of market volatility, which could distort trends, see “Financial Measures and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MLIC but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also includes the net impact of transactions with exited businesses that have been eliminated Segment Accounting Policies” in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MLIC that do not meet the criteria to be included in results of discontinued operations under GAAP. Operating revenues also excludes net investment gains (losses) and net derivative gains (losses).
The following additional adjustments are made to revenues, in the line items indicated, in calculating operating revenues:
Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees (“GMIB Fees”); and
Net investment income: (i) 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, (ii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, and (iii) excludes certain amounts related to securitization entities that are variable interest entities (“VIEs”) consolidated under GAAP.
The following additional adjustments are made to expenses, in the line items indicated, in calculating operating expenses:
Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets, (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”) and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”);
Interest credited to policyholder account balances includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment;
Amortization of DAC and VOBA excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs and (iii) Market Value Adjustments;
Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and
Other expenses excludes costs related to noncontrolling interests and goodwill impairments.
The tax impact Note 2 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 relatedNotes to the timing of certain tax credits, as well as certain tax reforms.Interim Condensed Consolidated Financial Statements.
The following additional information is relevant to an understanding of our performance results:
•We sometimes refer to sales activity for various products. These sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.
•Near-term represents one to three years.
Risk Management
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management” in the 2021 Annual Report for information on our risk management.

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Item 4. Controls and Procedures
Management, with the participation of the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (“Exchange Act”), as of the end of the period covered by this report. Based on that evaluation, the Chief Executive OfficerCEO and Chief Financial OfficerCFO have concluded that these disclosure controls and procedures are effective.
There were no changes to the Company’s internal control over financial reporting as defined in Exchange Act Rule 13a-15(f) during the quarter ended September 30, 2017March 31, 2022 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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Part II — Other Information
Item 1. Legal Proceedings
The following should be read in conjunction with (i) Part I, Item 3, of the 2016 Annual Report; (ii) Part II, Item 1, of Metropolitan Life Insurance Company’s Quarterly Report on Form 10-Q for the quarters ended March 31, 2017 and June 30, 2017; and (iii)See Note 11 of theof the Notes to the Interim Condensed Consolidated Financial Statements in Part I of this report.Statements.
Asbestos-Related Claims
Metropolitan Life Insurance Company 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.
As reported in the 2016 Annual Report, Metropolitan Life Insurance Company received approximately 4,146 asbestos-related claims in 2016. During the nine months ended September 30, 2017 and 2016, Metropolitan Life Insurance Company received approximately 2,742 and 3,267 new asbestos-related claims, respectively. See Note 16 of the Notes to the Consolidated Financial Statements included in the 2016 Annual Report for historical information concerning asbestos claims and Metropolitan Life Insurance Company’s increase in its recorded liability at December 31, 2014. The number of asbestos cases that may be brought, the aggregate amount of any liability that Metropolitan Life Insurance Company may incur, and the total amount paid in settlements in any given year are uncertain and may vary significantly from year to year.
Metropolitan Life Insurance Company 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. These variables include bankruptcies of other companies involved in asbestos litigation, legislative and judicial developments, the number of pending claims involving serious disease, the number of new claims filed against it and other defendants and the jurisdictions in which claims are pending. Based upon its regular reevaluation of its exposure from asbestos litigation, Metropolitan Life Insurance Company has updated its liability analysis for asbestos-related claims through September 30, 2017.
Regulatory Matters
The Company 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 SEC; federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority. The issues involved in information requests and regulatory matters vary widely. The Company cooperates in these inquiries.
In the Matter of Chemform, Inc. Site, Pompano Beach, Broward County, Florida
In July 2010, the Environmental Protection Agency (“EPA”) advised Metropolitan Life Insurance Company that it believed payments were due under two settlement agreements, known as “Administrative Orders on Consent,” that New England Mutual Life Insurance Company (“New England Mutual”) signed in 1989 and 1992 with respect to the cleanup of a Superfund site in Florida (the “Chemform Site”). The EPA originally contacted Metropolitan Life Insurance Company (as successor to New England Mutual) and a third party in 2001, and advised that they owed additional clean-up costs for the Chemform Site. The matter was not resolved at that time. In September 2012, the EPA, Metropolitan Life Insurance Company and the third party executed an Administrative Order on Consent under which Metropolitan Life Insurance Company and the third party agreed to be responsible for certain environmental testing at the Chemform Site. The EPA may seek additional costs if the environmental testing identifies issues. The EPA and Metropolitan Life Insurance Company have reached a settlement in principal on the EPA’s claim for past costs. The Company estimates that the aggregate cost to resolve this matter, including the settlement for claims of past costs and the costs of environmental testing, will not exceed $300 thousand.
Total Control Accounts Litigation
Metropolitan Life Insurance Company is a defendant in a lawsuit related to its use of retained asset accounts, known as TCA, as a settlement option for death benefits.

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Owens v. Metropolitan Life Insurance Company (N.D. Ga., filed April 17, 2014)
Plaintiff filed this class action lawsuit on behalf of all persons for whom Metropolitan Life Insurance Company established a retained asset account, known as a TCA, to pay death benefits under an Employee Retirement Income Security Act of 1974 (“ERISA”) plan. The action alleges that Metropolitan Life Insurance Company’s use of the TCA as the settlement option for life insurance benefits under some group life insurance policies violates Metropolitan Life Insurance Company’s fiduciary duties under ERISA. As damages, plaintiff seeks disgorgement of profits that Metropolitan Life Insurance Company realized on accounts owned by members of the class. In addition, plaintiff, on behalf of a subgroup of the class, seeks interest under Georgia’s delayed settlement interest statute, alleging that the use of the TCA as the settlement option did not constitute payment. On September 27, 2016, the court denied Metropolitan Life Insurance Company’s summary judgment motion in full and granted plaintiff’s partial summary judgment motion. On September 29, 2017, the court certified a nationwide class. The court also certified a Georgia subclass. The Company intends to defend this action vigorously.
Other Litigation
Miller, et al. v. MetLife, Inc., et al. (C.D. Cal., filed April 7, 2017)
Plaintiffs filed this putative class action against MetLife, Inc. and Metropolitan Life Insurance Company in the U.S. District Court for the Central District of California, purporting to assert claims on behalf of all persons who replaced their MetLife Optional Term Life or Group Universal Life policy for a Group Variable Universal Life policy wherein MetLife allegedly charged smoker rates for certain non-smokers. Plaintiffs seek unspecified compensatory and punitive damages, as well as other relief. On September 25, 2017, Plaintiffs dismissed the action and refiled the complaint in U.S. District Court for the Southern District of New York. The Company intends to defend this action vigorously.
Julian & McKinney v. Metropolitan Life Insurance Company (S.D.N.Y., filed February 9, 2017)
Plaintiffs filed this putative class and collective action on behalf of themselves and all current and former long-term disability (“LTD”) claims specialists between February 2011 and the present for alleged wage and hour violations under the Fair Labor Standards Act, the New York Labor Law, and the Connecticut Minimum Wage Act. The suit alleges that Metropolitan Life Insurance Company improperly reclassified the plaintiffs and similarly situated LTD claims specialists from non-exempt to exempt from overtime pay in November 2013. As a result, they and members of the putative class were no longer eligible for overtime pay even though they allege they continued to work more than 40 hours per week. The Company intends to defend this action vigorously.
Summary
Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed previously 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, investor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations.
It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, 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.

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Item 1A. Risk Factors
The following should be read in conjunction with, and supplements and amends, theCertain factors that may affect the Company’s business or operations are described under “Risk Factors” in Part I, Item 1A, of the 20162021 Annual Report, as amended or supplemented by the information under “Risk Factors” in Part II, Item 1A, of Metropolitan Life Insurance Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 (the “Second Quarter 2017 Report”). Other than as described in this Item 1A, thereReport. There have been no material changes to our risk factors from the risk factors previously disclosed in the 20162021 Annual Report as amended or supplemented by such information in the Second Quarter 2017 Report.
Risks Related to Our Business
The following updates and replaces the similar risk factor entitled “Differences Between Actual Claims Experience and Underwriting and Reserving Assumptions May Adversely Affect Our Financial Results” included in the 2016 Annual Report.
Differences Between Actual Claims Experience and Underwriting and Reserving Assumptions May Adversely Affect Our Financial Results
Our earnings significantly depend upon the extent to which our actual claims experience is consistent with the assumptions we use in setting prices for our products and establishing liabilities for future policy benefits and claims. Such amounts are established based on estimates by actuaries of how much we will need to pay for future benefits and claims. We cannot determine precisely the amounts which we will ultimately pay to settle our liabilities, and such amounts may vary from the estimated amounts, particularly when those payments may not occur until well in the future. We evaluate our liabilities periodically based on accounting requirements, which change from time to time, the assumptions used to establish the liabilities, as well as our actual experience. Reserve estimates in some instances are affected by our operating practices and procedures that are used, among other things, to support our assumptions with respect to the Company’s obligations to its policyholders and contractholders. To the extent that these practices and procedures do not accurately produce the data to support our assumptions our reserves may require adjustment. If the liabilities originally established for future benefit payments prove inadequate, we must increase them and/or reduce associated DAC and/or VOBA. Such adjustments could affect earnings negatively and have a material adverse effect on our business, results of operations and financial condition. See “Business — Policyholder Liabilities” included in the 2016 Annual Report. See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations — Consolidated Results — Nine Months Ended September 30, 2017 Compared with the Nine Months Ended September 30, 2016 — Actuarial Assumption Review,” as well as “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — Deferred Policy Acquisition Costs and Value of Business Acquired” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — Derivatives” included in the 2016 Annual Report for further information regarding the manner in which policyholder behavior and other events may differ from our assumptions and, thereby affect our financial results.

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Item 6. Exhibits
(Note Regarding Reliance on Statements in Our Contracts: In reviewing the agreements included as exhibits to this Quarterly Report on Form 10-Q, please remember that they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about Metropolitan Life Insurance Company, its subsidiaries or affiliates, or the other parties to the agreements. The agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and (i) should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; (ii) have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; (iii) may apply standards of materiality in a way that is different from what may be viewed as material to investors; and (iv) were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about Metropolitan Life Insurance Company, its subsidiaries and affiliates may be found elsewhere in this Quarterly Report on Form 10-Q and Metropolitan Life Insurance Company’s other public filings, which are available without charge through the U.S. Securities and Exchange Commission website at www.sec.gov.)
Incorporated by Reference
Exhibit No.DescriptionFormFile NumberExhibitFiling DateFiled or Furnished Herewith
31.1Incorporated by Reference
Exhibit No.DescriptionFormFile NumberExhibitFiling DateFiled or Furnished Herewith
31.1X
31.2X
32.1X
32.2X
101.INSXBRL Instance Document.X
101.SCHInline XBRL Taxonomy Extension Schema Document.X
101.CAL
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document.X
101.LAB
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document.X
101.LABInline XBRL Taxonomy Extension Label Linkbase Document.X
101.PRE
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document.X
101.DEF
101.INSXBRL Taxonomy Extension Definition Linkbase Document.Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document.X
104Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).X



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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



METROPOLITAN LIFE INSURANCE COMPANY
By:/s/ William O’DonnellTamara L. Schock
Name:  
William O’Donnell
Tamara L. Schock
Title:    
Executive Vice President
             and Chief
Accounting Officer
             (Authorized Signatory
and Principal
              Accounting Officer)

Date: November 8, 2017

May 11, 2022
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