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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 4/21/22 Metropolitan Life Sep Account E 485BPOS 5/01/22 7:8.6M Donnelley … Solutions/FA → Metropolitan Life Separate Account E ⇒ 6 Classes/Contracts |
Document/Exhibit Description Pages Size
1: 485BPOS Preference Plus Account HTML 3.98M
2: EX-99.(F)(1) Amended and Restated Charter of Metropolitan HTML 28K
Life Insurance Company
3: EX-99.(H)(4)(IV) Amendment to Participation Agreement - HTML 38K
American Funds Insurance Series
4: EX-99.(L) Consent of Independent Registered Public HTML 6K
Accounting Firm
5: EX-99.(O)(1) Initial Summary Prospectus (Enhanced Preference HTML 152K
Plus Eppa)
6: EX-99.(O)(2) Initial Summary Prospectus (Financial Freedom) HTML 129K
7: EX-99.(O)(3) Initial Summary Prospectus (Preference Plus HTML 149K
Account Bppa)
| PREFERENCE PLUS ACCOUNT |
| Under
the Securities Act of 1933 |
☒ |
| Pre-Effective Amendment No. | |
| Post-Effective Amendment No. 52 | |
| and/or | |
| Under
the Investment Company Act of 1940 |
☒ |
| Amendment No. 302 |
| □ | immediately upon filing pursuant to paragraph (b) |
| ☒ | on May 1, 2022 pursuant to paragraph (b) |
| □ | 60 days after filing pursuant to paragraph (a)(1) |
| □ | on (date) pursuant to paragraph (a)(1) of Rule 485 under the Securities Act. |
| If appropriate, check the following box: | |
| □ | this post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
| FEES AND EXPENSES | LOCATION
IN PROSPECTUS | |||
| Charges for Early Withdrawals | If
you withdraw money from the Contract within 7 years following your the contract effective date, you will be assessed a surrender charge of up to 7% of the amount withdrawn. This surrender charge is currently being wavied. For example, if you make an early withdrawal, you could pay a surrender charge of up to $7,000 on a $100,000 withdrawal. |
Fees | ||
| Transaction Charges | There are no transaction charges. | |||
| Ongoing
Fees and Expenses (annual charges) |
Minimum and Maximum Annual Fee Table. The table below describes the fees and expenses that you may pay each year, depending on the options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. | Fees | ||
| Annual Fee | Minimum | Maximum | ||
|
Base Contract (varies by Contract class) |
0.95% (1) | 1.50% (1) | ||
|
Investment options (Portfolio fees and expenses) |
0.27% (2) | 0.73% (2) | ||
|
(1) As a percentage of your Account Balance in the Separate Account. (2) As a percentage of Portfolio assets. | ||||
| Because your Contract is customizable, the choices you make affect how much you will pay. To help understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. This estimate assumes that you do not take withdrawals from the Contract, which could add surrender charges that substantially increase costs. | ||||
| Lowest Annual Cost: | Highest Annual Cost: | |||
| $1,644 | $2,035 | |||
| •
Assumes: • Investment of $100,000• 5% annual appreciation• Least expensive combination of Portfolio fees and expenses• No optional benefits available• No additional purchase payments, transfers or withdrawals |
• Assumes:• Investment of $100,000• 5% annual appreciation• Most expensive combination of Portfolio fees and expenses• No additional purchase payments, transfers or withdrawals | |||
| RISKS | LOCATION
IN PROSPECTUS | |||
| Risk of Loss | You can lose money by investing in the Contract, including loss of principal. | |||
| RISKS | LOCATION
IN PROSPECTUS | |||
| Not a Short-Term Investment | This
Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. • Withdrawal charges may apply for up to 7 years following each purchase payment. Withdrawal charges will reduce the value of your Contract if you withdraw money during that time.• The benefits of tax deferral and mean that the Contract is more beneficial to investors with a long time horizon.• Earnings on your Contract are taxed at ordinary income tax rates when you withdraw them, and you may have to pay a penalty if you take a withdrawal before age 59 1⁄2. |
Principal Risks of Investing in the Contract | ||
| Risks Associated with Investment Options | • An investment in the Contract is subject to the risk of poor investment performance and can vary depending on the performance of the investment options available under the Contract (e.g., Portfolios).• Each investment option (including any Fixed Account investment option) will have its own unique risks.• You should review these investment options before making an investment decision. | Principal Risks of Investing in the Contract | ||
| Insurance Company Risks | Contracts are subject to the risks related to MetLife, including any obligations (including under any Fixed Account investment options), guarantees, and benefits of the Contract are subject to the claims-paying ability of MetLife. If MetLife experiences financial distress, it may not be able to meet its obligations to you. More information about the Company, including its financial strength ratings, is available by visiting www.metlife.com. | Principal Risks of Investing in the Contract | ||
| RESTRICTIONS | LOCATION
IN PROSPECTUS | |||
| Investments | Withdrawals or transfers must be at least $250 (or the entire balance in a Division, if less). You may make 12 transfers each calendar year (including transfers from the Fixed Interest Account to the Separate Account). We reserve the right to add, remove or substitute Portfolios. The Company also has policies and procedures that attempt to detect and deter frequent transfers in situations where we determine there is a potential for arbitrage trading, and in those instances, there are additional limits that apply to transfers. | Withdrawals and Transfers | ||
| TAXES | LOCATION
IN PROSPECTUS | |||
| Tax Implications | •
You should consult with a tax professional to determine the tax implications of an investment in and purchase payments received under the Contract. • There is no additional tax benefit if you purchase the Contract through a tax-qualified plan or individual retirement account (IRA).• Earnings on your Contract are taxed at ordinary income tax rates when you withdraw them, and you may have to pay a penalty if you take a withdrawal before age 59 1⁄2. |
Federal Tax Considerations | ||
| CONFLICTS OF INTEREST | LOCATION
IN PROSPECTUS | |||
| Investment Professional Compensation | Your investment professional may receive compensation for selling this Contract to You, both in the form of commissions and because MetLife may share the revenue it earns on this Contract with the professional’s firm. This conflict of interest may influence your investment professional to recommend this Contract over another investment. | Other Information - Distribution of the Contracts | ||
| Exchanges | Some investment professionals may have a financial incentive to offer you a new contract in place of the one you own. You should only exchange your Contract if You determine, after comparing the features, fees, and risks of both contracts, that it is better for you to purchase the new contract rather than continue to own your existing Contract. | Other Information - Distribution of the Contracts | ||
| 1) | Accumulation (Pay-in) Phase |
| To help you accumulate assets, You can invest your premium payments in: |
| • | Portfolios (mutual funds), each of which has its own investment strategies, investment advisers, expense ratios, and returns; and |
| • | a Fixed Account option, which offers a guaranteed interest rate during a selected period. |
| 2) | Income (Pay-out) Phase |
| You can elect to annuitize your Contract and turn your Contract value into a stream of income payments (sometimes called annuity payments) from MetLife, at which time the accumulation phase of the Contract ends. These payments may continue for a fixed period of years, for your entire life, or for the longer of a fixed period or your life. The payments may also be fixed or variable. Variable payments will vary based on the performance of the investment options you select. |
| Please note that if you annuitize, your investments will be converted to income payments and you may no longer be able to choose to withdraw money at will from your Contract. All benefits (including the standard death benefit) terminate upon annuitization. |
| Surrender Charge (as a percentage of the amount withdrawn)(1) | 7% |
| (1) | As of July 2, 2001, MetLife will waive any early withdrawal charge that would otherwise be payable on account of any contract withdrawal or transfer, either from the Fixed Interest Account or the Separate Account. Under certain circumstances, the surrender charge, termed the early withdrawal charge in this Prospectus, does not apply to 10% of the Account Balance. Under certain other circumstances, the surrender charge does not apply at all. There is no surrender charge imposed under Enhanced Contracts. Under certain Enhanced Contracts the employer may pay all or part of the annual Contract fee. If an amount used to make a withdrawal is determined to be subject to a surrender charge, the charge will be equal to such amount multiplied by the applicable factor from the second column of the table below. |
| Contract Year (full uninterrupted years of maintenance of account balance at withdrawal) | Withdrawal Charge |
| Less than 3 | 7% |
| At least 3 but less than 4 | 6% |
| At least 4 but less than 3 | 5% |
| At least 5 but less than 6 | 4% |
| At least 6 but less than 7 | 2% |
| 7 or more | 0% |
| Base
Contract Expenses1 (as a percentage of average daily account value) |
2.2% |
| 1 | The Base Contract Fee includes .07% for the Annual Contract Charge. Once each calendar year, we will deduct a $15 Annual Contract Charge from your Separate Account Balance and a $15 Annual Contract Charge from your Fixed Account. In addition, if your entire Account Balance is withdrawn to make payment to you or to another funding vehicle, the amount withdrawn will be reduced by the amount of any unpaid Annual Contract Charge before we make a payment. The Annual Contract Charge deduction from the Separate Account will be divided equally among the investment Divisions in which you are participating when the deduction is made. The Annual Contract Charge will be in addition to any early Withdrawal Charge. The Annual Contract Charge will be prorated for each month, or part of a month, in which you have an Account Balance. We may change the Annual Contract Charge upon 90 days prior to notice to you. |
| Minimum | Maximum | |
| Annual Portfolio Company Expenses (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | 0.27% | 0.73% |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you surrender your Contract at the end of the applicable time period | ||||
| Maximum | $1,950 | $6,031 | $10,364 | $22,409 |
| Minimum | $1,540 | $4,782 | $ 8,253 | $18,035 |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you annuitize or do not surrender your Contract at the end of the applicable time period | ||||
| Maximum | $1,950 | $6,031 | $10,364 | $22,409 |
| Minimum | $1,540 | $4,782 | $ 8,253 | $18,035 |
| Full Uninterrupted Years of Maintenance of Account Balance at Withdrawal | Column I | Column II |
| Less than 3 | .07 | 1.07 |
| At least 3 but less than 4 | .06 | 1.06 |
| At least 4 but less than 3 | .05 | 1.05 |
| At least 5 but less than 6 | .04 | 1.04 |
| At least 6 but less than 7 | .02 | 1.02 |
| 7 or more | 0.0 | 1.00 |
| 1. | Transfers made among the investment divisions of the Separate Account or to the Fixed Interest Account. |
| 2. | Withdrawals after you have had an Account Balance for seven or more full uninterrupted years. |
| 3. | A “free corridor” withdrawal: You can withdraw up to 10% of your Account Balance in one or more investment divisions without an early withdrawal charge if you have made no previous withdrawals from the Contract or transfers from the Fixed Interest Account during that calendar year. |
| 4. | Ten Day “Free Look”: You may cancel your Contract within 10 days after you receive it by telling us in writing. We will then refund all of your purchase payments (however for IRA, SEP and Non- Qualified Contracts issued to you in New York, Illinois, Minnesota and Pennsylvania we will instead pay you your Account Balance and any sales charges). If you purchased your Contract by mail, you may have more time to return your Contract. |
| 5. | You die before any income annuity payments have been made and we pay your beneficiary a death benefit. |
| 6. | You purchase an income annuity from us. |
| 7. | You are totally disabled (as defined by the Federal Social Security Act) and ask for a total withdrawal. |
| 8. | For the PEDC Contract, if you have a hardship and the tax laws require a payment because of this hardship. |
| a. | choose income payments other than on a qualified joint and survivor basis (“QJSA”) (one under which we make payments to you during your lifetime and then make payments reduced by no more than 50% to your spouse for his or her remaining life, if any); or choose to waive the qualified pre-retirement survivor annuity benefit (“QPSA”) (the benefit payable to the surviving spouse of a participant who dies with a vested interest in an accrued retirement benefit under the plan before payment of the benefit has begun); |
| b. | make certain withdrawals under plans for which a qualified consent is required; |
| c. | name someone other than the spouse as your beneficiary; |
| d. | use your accrued benefit as security for a loan. |
| 1. | To operate the Separate Account in any form permitted under the 1940 Act or in any other form permitted by law. |
| 2. | To take any action necessary to comply with or obtain and continue any exemptions from the 1940 Act. |
| 3. | To transfer any assets in an investment division to another investment division, or to one or more separate accounts, or to our general account, or to add, combine or remove investment divisions in the Separate Account. |
| 4. | To substitute for the portfolio shares in any investment division, the shares of another class of the Metropolitan Fund or the shares of another investment company or any other investment permitted by law. |
| 5. | To change the way we assess charges, but without increasing the aggregate amount charged to the Separate Account and any currently available portfolio in connection with the Contracts. |
| 6. | To make any necessary technical changes in the Contracts in order to conform with any of the above-described actions. |
| • | (1) the plan’s trust is organized under the laws of Puerto Rico, or has a Puerto Rico resident trustee and uses such trustee as paying agent; and |
| • | (2) 10% of all plan’s trust assets (calculated based on the average balance of the investments of the trust) attributable to participants which are Puerto Rico residents must be invested in “property located in Puerto Rico” for a three-year period. |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Fixed Income | BlackRock
Bond Income Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: BlackRock Advisors, LLC |
0.37% | -0.43% | 4.26% | 3.86% |
| US Fixed Income | BlackRock
Ultra-Short Term Bond Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: BlackRock Advisors, LLC |
0.36% | -0.19% | 1.01% | 0.54% |
| Allocation | Brighthouse/Wellington
Balanced Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.51% | 14.02% | 12.84% | 11.64% |
| US Equity | Brighthouse/Wellington
Large Cap Research Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.53% | 24.38% | 18.14% | 16.33% |
| US Equity | Frontier
Mid Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Frontier Capital Management Company, LLC |
0.70% | 14.68% | 18.90% | 15.49% |
| US Equity | MetLife
Stock Index Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.26% | 28.36% | 18.18% | 16.26% |
| * | The Portfolio is subject to an expense reimbursement or fee waiver arrangement. The annual expenses shown reflect temporary fee reductions. |
| Jurisdiction | Contracts
Used With Tax Qualified Retirement Plans |
All Other Contracts | ||
| California | 0.50%* | 2.35% | ||
| Colorado | — | 2.00% | ||
| Florida(1) | 1.00% | 1.00% | ||
| Maine(2) | — | 2.00% | ||
| Nevada | — | 3.50% | ||
| Puerto Rico(3) | 1.00% | 1.00% | ||
| South Dakota(4) | — | 1.25% | ||
| Wyoming | — | 1.00% |
| (1) | Annuity purchase payments are exempt from taxation provided that the tax savings are passed back to the Contract Owners. Otherwise, they are taxable at 1.0%. |
| (2) | Special rate of 1% applies for certified Long Term Care and qualified group disability Contracts. |
| (3) | The Company will not deduct premium taxes paid by us to Puerto Rico from purchase payments, Contract Value, withdrawals, death benefits or income payments. |
| (4) | Special rate applies for large case annuity Contracts. Rate is 0.08% for that portion of the annuity considerations received on a contract exceeding $500,000 annually. Special rate on large case Contracts is not subject to retaliation. |
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| FEES AND EXPENSES | LOCATION
IN PROSPECTUS | |||
| Charges for Early Withdrawals | A
Withdrawal Charge of up to 7.00% may be assessed on any such premium payment paid less than 8 years before the date of the withdrawal. For example, if you purchase a the Contract for $100,000 and surrender your Contract during the first year, You will pay a Withdrawal Charge of up to $7,000. |
Charges | ||
| Transaction Charges | In
addition to surrender charges, you also may be charged for other transactions. Although we do not currently charge a fee for transfers of cash value among Divisions or between the Divisions and the Fixed Account, We reserve the right to impose a
transfer fee of $25. There is a one-time Contract Fee of $350 for Income Annuities. We do not charge this fee if You elect a pay-out option under your Deferred Annuity and You have owned your Deferred Annuity for more than two years. We are currently waiving this charge. |
Charges | ||
| Ongoing Fees and Expenses (annual charges) | The table below describes the fees and expenses that you may pay each year, depending on the options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. | Fees | ||
| Annual Fee | Minimum | Maximum | ||
|
Base Contract |
1.25%(1) |
1.25% (1) | ||
|
Investment options (Portfolio fees and expenses) |
0.27%(2) |
1.03% (2) | ||
|
(1) As a percentage of your Account Balance in the Separate Account. (2) As a percentage of average daily net assets of the Portfolio. | ||||
| For the Non-Qualified, Traditional IRA, Roth IRA and SEP Deferred Annuities, You pay a $20 annual fee from the Fixed Interest Account at the end of each Contract Year if your Account Value is less than $20,000 and You are not enrolled in the check-o-matic or automatic payroll deduction programs. For the SIMPLE IRA Deferred Annuity, You pay a $20 annual fee from the Fixed Interest Account at the end of each Contract Year if your Account Balance is less than $20,000 and You do not make a purchase payment during the Contract Year. | ||||
| FEES AND EXPENSES | LOCATION
IN PROSPECTUS | |||
| Because your Contract is customizable, the choices you make affect how much you will pay. To help understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. This estimate assumes that you do not take withdrawals from the Contract, which could add surrender charges that substantially increase costs. | Fees | |||
| Lowest Annual Cost: | Highest Annual Cost: | |||
| $1,429 | $2,068 | |||
| Assumes:
• Investment of $100,000• 5% annual appreciation• Least expensive combination of Contract classes and Portfolio fees and expenses• No optional benefits• No sales charges• No additional purchase payments, transfers or withdrawals |
Assumes: • Investment of $100,000• 5% annual appreciation• Most expensive combination of Contract classes, optional benefits and Portfolio fees and expenses• No sales charges• No additional purchase payments, transfers or withdrawals | |||
| RISKS | LOCATION
IN PROSPECTUS | |||
| Risk of Loss | You can lose money by investing in the Contract, including loss of principal. | Principal Risks of Investing in the Contract | ||
| Not a Short- Term Investment | This
Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. • Withdrawal Charges may apply for up to 8 years following each purchase payment. Withdrawal Charges will reduce the value of your Contract if you withdraw money during that time.• The benefits of tax deferral and living benefit protections also mean that the Contract is more beneficial to investors with a long time horizon.• Earnings on your Contract are taxed at ordinary income tax rates when You withdraw them, and You may have to pay a penalty if You take a withdrawal before age 59 1⁄2. |
Principal Risks of Investing in the Contract | ||
| Risks Associated with Investment Options | • An investment in the Contract is subject to the risk of poor investment performance and can vary depending on the performance of the investment options available under the Contract (e.g., Portfolios).• Each investment option (including the Fixed Account investment option) will have its own unique risks.• You should review these investment options before making an investment decision. | Principal Risks of Investing in the Contract | ||
| RISKS | LOCATION
IN PROSPECTUS | |||
| Insurance Company Risks | An investment in the Contract is subject to the risks related to the Company. Any obligations (including under the Fixed Account), guarantees, or benefits are subject to the claims-paying ability of the Company, and our long term ability to make such payments, and are not guaranteed by any other party. MetLife is regulated as an insurance company under state law, which generally includes limits on the amount and type of investments in its general account. However, there is no guarantee that we will be able to meet our claims paying obligations; there are risks to purchasing any insurance product. More information about the Company, including its financial strength ratings, is available upon request by visiting https://www.metlife.com/about-us/corporate-profile/ratings/. | Principal Risks of Investing in the Contract | ||
| RESTRICTIONS | LOCATION
IN PROSPECTUS | |||
| Investment | Although
we do not currently charge a fee for transfers of cash value among Divisions or between the Divisions and the Fixed Account, We reserve the right to impose a transfer fee of $25. We reserve the right to add, remove or substitute Portfolios. The Company also has policies and procedures that attempt to detect and deter frequent transfers in situations where we determine there is a potential for arbitrage trading, and in those instances, there are additional limits that apply to transfers. |
Charges – Transfer Fee | ||
| TAXES | LOCATION
IN PROSPECTUS | |||
| Tax Implications | •
You should consult with a tax professional to determine the tax implications of an investment in and purchase payments received under the Contract. • There is no additional tax benefit if You purchase the Contract through a tax-qualified plan or individual retirement account (IRA).• Earnings on your Contract are taxed at ordinary income tax rates when You withdraw them, and You may have to pay a penalty if You take a withdrawal before age 59 1⁄2. |
Federal Tax Considerations | ||
| CONFLICTS OF INTEREST | LOCATION
IN PROSPECTUS | |||
| Investment Professional Compensation | Your investment professional may receive compensation for selling this Contract to You, both in the form of commissions and because MetLife may share the revenue it earns on this Contract with the professional’s firm. This conflict of interest may influence your investment professional to recommend this Contract over another investment. | Who Sells the Deferred Annuities and Income Annuities | ||
| Exchanges | Some investment professionals may have a financial incentive to offer you a new contract in place of the one you own. You should only exchange your Contract if you determine, after comparing the features, fees, and risks of both contracts, that it is better for you to purchase the new contract rather than continue to own your existing Contract. | Exchanges/Transfers | ||
| 1) | Accumulation (Pay-in) Phase |
| To help You accumulate assets, You can invest your premium payments in: |
| • | Portfolios (mutual funds), each of which has its own investment strategies, investment advisers, expense ratios, and returns; and |
| • | a Fixed Account option, which offers a guaranteed interest rate during a selected period. |
| 2) | Income (Pay-out) Phase |
| Sales Load Imposed on Purchase Payments | None |
| Early
Withdrawal Charge(1) (as a percentage of each purchase payment funding the withdrawal during the pay-in phase) |
7% |
| Exchange Fee for Deferred Annuities | None |
| Surrender Fee for Deferred Annuities | None |
| Income Annuity Contract Fee(2) | $350 |
| Transfer Fee(5) | $25 |
| 1 | An Early Withdrawal Charge of up to 7% may apply if You withdraw purchase payments within seven years of when they were credited to your Deferred Annuity. The charge on purchase payments is calculated according to the following schedule: |
| During Purchase Payment Year | Percentage |
| 1 | 7% |
| 2 | 6% |
| 3 | 5% |
| 4 | 4% |
| 5 | 3% |
| 6 | 2% |
| 7 | 1% |
| Thereafter | 0% |
| There are times when the Early Withdrawal Charge does not apply to amounts that are withdrawn from a Deferred Annuity. For example, each Contract Year, You may take the greater of 10% of your Account Value or your purchase payments made over seven years ago free of Early Withdrawal Charges. | |
| 2 | There is a one-time Contract Fee of $350 for Income Annuities. We do not charge this fee if You elect a pay-out option under your Deferred Annuity and You have owned your Deferred Annuity for more than two years. We are currently waiving this charge. |
| Base Contract Expense(4) (as a percentage of your average Account Value in the Separate Account) | 1.26% |
| 3 | The Base Contract Fee includes .01% for the Annual Contract Fee. The Annual Contract Fee is $20 annually. The $20 Annual Contract Fee is imposed on money in the Fixed Interest Account. This fee may be waived under certain circumstances. |
| 4 | Pursuant to the terms of the Contract, our total Base Contract Expense will not exceed 1.25% of your average balance in the Divisions. For purposes of presentation here, we estimated the allocation between general administrative expenses and the mortality and expense risk charge for Deferred Annuities or the amount of underlying Portfolio shares we have designated in the Divisions to generate your income payments for Income Annuities. |
| 5 | Although not currently charged, we reserve the right to limit transfers as described later in this Prospectus and we reserve the right to impose a transfer fee. The amount of this fee will be no greater than $25 per transfer. |
| Minimum | Maximum | |
| (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | 0.27% | 1.03% |
| • | reimbursement and/or waiver of expenses was not in effect; |
| • | You bear the Minimum or Maximum Total Annual Portfolio Operating Expenses; |
| • | there is a maximum Separate Account charge of 1.25%; |
| • | the underlying Portfolio earns a 5% annual return; |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you surrender your Contract at the end of the applicable time period | ||||
| Maximum | $9,280 | $11,529 | $14,739 | $25,806 |
| Minimum | $8,520 | $ 9,221 | $10,849 | $17,817 |
| • | You bear the Minimum or Maximum Total Annual Portfolio Operating Expenses; |
| • | there is a maximum Separate Account charge of 1.25%; |
| • | the underlying Portfolio earns a 5% annual return; |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you annuitize or do not surrender your Contract at the end of the applicable time period | ||||
| Maximum | $2,280 | $7,029 | $12,039 | $25,806 |
| Minimum | $1,520 | $4,721 | $ 8,149 | $17,817 |
| • | You bear the Minimum or Maximum Total Annual Portfolio Operating Expenses; |
| • | there is a maximum Separate Account charge of 1.25%; |
| • | You bear the Income Annuity Contract Fee: |
| • | the underlying Portfolio earns a 5% annual return; |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you annuitize or do not surrender your Contract at the end of the applicable time period | ||||
| Maximum | $2,630 | $7,362 | $12,356 | $26,076 |
| Minimum | $1,870 | $5,060 | $ 8,476 | $18,112 |
| • | Non-Qualified |
| • | Traditional IRA (Individual Retirement Annuities) |
| • | Roth IRA (Roth Individual Retirement Annuities) |
| • | SIMPLE IRA (Savings Incentive Match Plan for Employees Individual Retirement Annuities) |
| • | SEP IRA (Simplified Employee Pensions) |
| • | Federal tax laws; |
| • | Our right to limit the total of your purchase payments to $1,000,000. We may change the maximum by telling You in writing at least 90 days in advance; |
| • | Regulatory requirements. For example, if You reside in Washington or Oregon, we may be required to limit your ability to make purchase payments after You have held the Deferred Annuity for more than three years, if the Deferred Annuity was issued to You after You turn age 60; or after You turn age 63, if the Deferred Annuity was issued before You were age 61; |
| • | Retirement, for certain Deferred Annuities. You may no longer make purchase payments if You retire; |
| • | Leaving your job (for the SEP and SIMPLE Deferred Annuity). |
| Step 1: | First, we determine the change in investment performance (including any investment-related charge) for the underlying Portfolio from the previous trading day to the current trading day; |
| Step 2: | Next, we subtract the daily equivalent of our insurance-related charge (general administrative expenses and mortality and expense risk charges) for each day since the last Accumulation Unit Value was calculated; and |
| Step 3: | Finally, we multiply the previous Accumulation Unit Value by this result. |
| $500 | = | 50 Accumulation Units |
| $10 |
| • | The percentage or dollar amount of the transfer; |
| • | The Divisions (or Fixed Interest Account) from which You want the money to be transferred; |
| • | The Divisions (or Fixed Interest Account) to which You want the money to be transferred; and |
| • | Whether You intend to start, stop, modify or continue unchanged an automated investment strategy by making the transfer. |
| • | Use our forms; |
| • | Maintain a minimum Account Value (if the transfer is in connection with an automated investment strategy); or |
| • | Transfer a minimum amount if the transfer is in connection with the Allocator. |
| • | American Funds Global Small Capitalization Fund |
| • | American Funds Growth Fund |
| • | American Funds Growth-Income Fund |
| • | American Funds The Bond Fund of America |
| • | Baillie Gifford International Stock Portfolio |
| • | CBRE Global Real Estate Portfolio |
| • | Harris Oakmark International Portfolio |
| • | Invesco Global Equity Portfolio |
| • | Invesco Small Cap Growth Portfolio |
| • | Loomis Sayles Global Allocation Portfolio |
| • | Loomis Sayles Small Cap Core Portfolio |
| • | Loomis Sayles Small Cap Growth Portfolio |
| • | MetLife MSCI EAFE® Index Portfolio |
| • | MetLife Russell 2000® Index Portfolio |
| • | MFS® Research International Portfolio |
| • | Neuberger Berman Genesis Portfolio |
| • | T. Rowe Price Small Cap Growth Portfolio |
| • | Western Asset Management Strategic Bond Opportunities Portfolio |
| • | The percentage or dollar amount of the withdrawal; and |
| • | The Divisions (or Fixed Interest Account) from which You want the money to be withdrawn. Your withdrawal may be subject to income taxes, tax penalties and Early Withdrawal Charges. |
| • | Insurance-related charge (or Separate Account charge), and |
| • | Investment-related charge. |
| • | For the Non-Qualified, Traditional IRA, Roth IRA and SEP Deferred Annuities, You pay a $20 annual fee from the Fixed Interest Account at the end of each Contract Year if your Account Value is less than $20,000 and You are not enrolled in the check-o-matic or automatic payroll deduction programs. |
| • | For the SIMPLE IRA Deferred Annuity, You pay a $20 annual fee from the Fixed Interest Account at the end of each Contract Year if your Account Balance is less than $20,000 and You do not make a purchase payment during the Contract Year. |
| During Purchase Payment Year | Percentage |
| 1 | 7% |
| 2 | 6% |
| 3 | 5% |
| 4 | 4% |
| 5 | 3% |
| 6 | 2% |
| 7 | 1% |
| 8 & Later | 0% |
| • | On transfers You make within your Deferred Annuity among Divisions and transfers to or from the Fixed Interest Account. |
| • | On withdrawals of purchase payments You made over seven years ago. |
| • | If You choose payments over one or more lifetimes or for a period of at least five years (without the right to accelerate the payments). |
| • | If You die during the pay-in phase. Your beneficiary will receive the full death benefit without deduction. |
| • | If your Contract permits and your spouse is substituted as the purchaser of the Deferred Annuity and continues the Contract, that portion of the Account Value that equals the “step up” portion of the death benefit. |
| • | If You withdraw up to 10% of your Account Value each Contract Year. This 10% total withdrawal may be taken in an unlimited number of partial withdrawals during that Contract Year. Each time You make a withdrawal, we calculate what percentage your withdrawal represents at that time. Only when the total of these percentages exceeds 10% will You have to pay Early Withdrawal Charges. |
| • | If the withdrawal is required for You to avoid Federal income tax penalties or to satisfy Federal income tax rules or Department of Labor regulations that apply to your Deferred Annuity. This exception does not apply if You have a Non-Qualified or Roth IRA Deferred Annuity or if the withdrawal is to satisfy Section 72(t) requirements under the Code. |
| • | Because You accept an amendment converting your Traditional IRA Deferred Annuity to a Roth IRA Deferred Annuity. |
| • | Subject to availability in your state, if the Early Withdrawal Charge that would apply if not for this provision (1) would constitute less than 0.50% of your Account Value and (2) You transfer your total Account Value to certain eligible contracts issued by MetLife or one of its affiliated companies and we agree. |
| • | Except in the state of Massachusetts, on your first withdrawal to which an Early Withdrawal Charge would otherwise apply, and either You or your spouse: |
| • | Has been a resident of certain nursing home facilities for a minimum of 90 consecutive days; or |
| • | Is diagnosed with a terminal illness and not expected to live more than a year. |
| • | If You have transferred money which is not subject to a withdrawal charge (because You have satisfied contractual provisions for a withdrawal without the imposition of a contract withdrawal charge) from certain eligible MetLife contracts into the Deferred Annuity and the withdrawal is of these transferred amounts and we agree. Any purchase payments made after the transfer are subject to the usual Early Withdrawal Charge schedule. |
| • | Amounts transferred before January 1, 1996: |
| During Purchase Payment Year | Percentage |
| 1 | 5% |
| 2 | 4% |
| 3 | 3% |
| 4 | 2% |
| 5 | 1% |
| 6 and Beyond | 0% |
| • | Amounts transferred on or after January 1, 1996: |
| • | For certain Contracts which we issued at least two years before the date of transfer (except as noted below), we apply the withdrawal charge under your original Contract but not any of the original Contract’s exceptions or reductions to the withdrawal charge percentage that do not apply to a Deferred Annuity. Or, if it will produce a lower charge, we use the following schedule to determine Early Withdrawal Charges for transferred amounts from your original Contract: |
| During Transfer Year | Percentage |
| 1 | 5% |
| 2 | 4% |
| 3 | 3% |
| 4 | 2% |
| 5 | 1% |
| 6 and Beyond | 0% |
| • | If we issued the other Contract less than two years before the date of the transfer or it has a separate withdrawal charge for each purchase payment, we treat your purchase payments under the other Contract as if they were made under the Deferred Annuity as of the date we received them under that Contract. |
| • | Alternatively, if provided for in your Deferred Annuity, we credit your purchase payments with the time You held them under your original Contract. |
| Name
of Benefit* |
Purpose | Is
Benefit Standard or Optional? |
Maximum Fee | Brief
Description of Restrictions/ Limitations |
| Standard Death Benefit | Guarantees that the death benefit will not be less than the greatest of (1) your Account Value; (2) Your highest Account Value as of December 31 following the end of your fifth Contract Year and at the end of every other five year period. In any case, less any later partial withdrawals, fees and charges; or (3) the total of all of your purchase payments less any partial withdrawals | Standard | None | • Withdrawals could significantly reduce the benefit. |
| Name
of Benefit* |
Purpose | Is
Benefit Standard or Optional? |
Maximum Fee | Brief
Description of Restrictions/ Limitations |
| (including any applicable Early Withdrawal Charge) | ||||
| The Equity Generator®: | An amount equal to the interest earned in the Fixed Interest Account is transferred monthly to any one Division based on your selection. If your Fixed Interest Account Balance at the time of a scheduled transfer is zero, this strategy is automatically discontinued. | Standard | None | • Benefit limits available investment options.• If your Fixed Interest Account Balance at the time of a scheduled transfer is zero, this strategy is automatically discontinued. |
| The Equalizer SM: | You start with equal amounts of money in the Fixed Interest Account and your choice of either the MetLife Stock Index Division or the Frontier Mid Cap Growth Division. Each quarter, amounts are transferred between the Fixed Interest Account and your chosen Division to make the value of each equal. | Standard | None | • Benefit limits available investment options. |
| The Rebalancer®: | You select a specific asset allocation for your entire Account Balance from among the Divisions and the Fixed Interest Account, if available. Each quarter we transfer amounts among these options to bring the percentage of your Account Balance in each option back to your original | Standard | None | • Benefit limits available investment options.• In the future, we may permit You to allocate less than 100% of your Account Balance to this strategy. |
| Name
of Benefit* |
Purpose | Is
Benefit Standard or Optional? |
Maximum Fee | Brief
Description of Restrictions/ Limitations |
| allocation. | ||||
| The Index Selector®: | You may select one of five asset allocation models which are designed to correlate to various risk tolerance levels. Each quarter the percentage in each of the Divisions in which the model invests and any Fixed Interest Account is brought back to the selected model percentage by transferring amounts among the Divisions and any Fixed Interest Account | Standard | None | • Benefit limits available investment options. |
| The Allocator SM: | Transfers a dollar amount of your choice from the Fixed Interest Account to any of the Divisions you choose on a monthly basis. | Standard | None | • A minimum periodic transfer of $50 is required.• Once your Fixed Interest Account Value is exhausted, this strategy is automatically discontinued. |
| Systematic Withdrawal Program | Automatically withdraws a specific dollar amount or a percentage of your Account Balance of your choice each Contract Year. | Standard | None | • Not available under the 457(b) Deferred Annuity issued to tax-exempt organizations.• Not available in all states.• Income taxes, tax penalties and Withdrawal Charges may apply to your withdrawals.• Subject to our required minimums and administrative restrictions.• Not available in conjunction with any |
| Name
of Benefit* |
Purpose | Is
Benefit Standard or Optional? |
Maximum Fee | Brief
Description of Restrictions/ Limitations |
| automated investment strategy. |
| * | If your annuity was issued in connection with an employer plan, you should check with your employer regarding the availability of riders. |
| • | Your Account Value; |
| • | Your highest Account Value as of December 31 following the end of your fifth Contract Year and at the end of every other five year period. In any case, less any later partial withdrawals, fees and charges; or |
| • | The total of all of your purchase payments less any partial withdrawals (including any applicable Early Withdrawal Charge). |
| • | Payments guaranteed by us for the rest of your life (or for the rest of two lives) or for a specified period; |
| • | A fixed dollar payment or a variable payment; and |
| • | A refund feature. |
| • Non-Qualified | • Roth IRA | • SIMPLE IRA |
| • Traditional IRA | • SEP IRA |
| • | Owner: the person or entity which has all rights under the Income Annuity including the right to direct who receives payment. |
| • | Annuitant: the person whose life is the measure for determining the duration and sometimes the dollar amount of payments. |
| • | Beneficiary: the person who receives continuing payments or a lump sum payment if the Owner dies. Many times, the Owner and the Annuitant are the same person. |
| • | The amount of income You need; |
| • | The amount You expect to receive from other sources; |
| • | The growth potential of other investments; and |
| • | How long You would like your income to last. |
| • | First, we determine the change in investment experience (which reflects the deduction for any investment-related charge) for the underlying Portfolio from the previous trading day to the current trading day; |
| • | Next, we subtract the daily equivalent of your insurance-related charge or Separate Account charge (general administrative expenses and mortality and expense risk charges) for each day since the last day the Annuity Unit Value was calculated; the resulting number is the net investment return; |
| • | Then, we multiply by an adjustment based on your AIR for each day since the last Annuity Unit Value was calculated; and |
| • | Finally, we multiply the previous Annuity Unit Value by this result. |
| • | The percentage of the income payment to be reallocated; |
| • | The Divisions from which You want the income payment to be reallocated; and |
| • | The Divisions or Fixed Income Option (and the percentages allocated to each) to which You want the income payment to be reallocated. |
| • | First, we update the income payment amount to be reallocated from the Division based upon the applicable Annuity Unit Value at the time of the reallocation; |
| • | Second, we use the AIR to calculate an updated annuity purchase rate based upon your age, if applicable, and expected future income payments at the time of the reallocation; |
| • | Third, we calculate another updated annuity purchase rate using our current annuity purchase rates for the Fixed Income Option on the date of your reallocation; and |
| • | Finally, we determine the adjusted payment amount by multiplying the updated income amount determined in the first step by the ratio of the annuity purchase rate determined in the second step divided by the annuity purchase rate determined in the third step. |
| • | Suppose You choose to reallocate 40% of your income payment supported by Division A to the Fixed Income Option and the recalculated income payment supported by Division A is $100. Assume that the updated annuity purchase rate based on the AIR is $125, while the updated annuity purchase rate based on fixed income annuity pricing is $100. In that case, your income payment from the Fixed Income Option will be increased by $40 x ($125 ÷ $100) or $50, and your income payment supported by Division A will be decreased by $40. (The number of Annuity Units in Division A will be decreased as well.) |
| • | Suppose You choose to reallocate 40% of your income payment supported by Division A to Division B and the recalculated income payment supported by Division A is $100. Then, your income payment supported by Division B will be increased by $40 and your income payment supported by Division A will be decreased by $40. (Changes will be made to the number of Annuity Units in both Divisions as well.) |
| • | On a day when the Accumulation Unit Value/Annuity Unit Value is not calculated, or |
| • | After the close of the Exchange. |
| • | Account Balance |
| • | Unit Values |
| • | Current rates for the Fixed Interest Account |
| • | Transfers |
| • | Changes to investment strategies |
| • | Changes in the allocation of future purchase payments. |
| • | any inaccuracy, error, or delay in or omission of any information You transmit or deliver to us; or |
| • | any loss or damage You may incur because of such inaccuracy, error, delay or omission; non-performance; or any interruption of information beyond our control. |
| • | rules of the SEC so permit (trading on the Exchange is limited, the Exchange is closed other than for customary weekend or holiday closings or an emergency exists which makes pricing or sale of securities not practicable); or |
| • | during any other period when the SEC by order so permits. |
| • | To operate the Separate Account in any form permitted by law. |
| • | To take any action necessary to comply with or obtain and continue any exemptions under the law (including favorable treatment under the Federal income tax laws) including limiting the number, frequency or types of transfers/reallocations transactions permitted. |
| • | To transfer any assets in a Division to another Division, or to one or more separate accounts, or to our general account, or to add, combine or remove Divisions in the Separate Account. |
| • | To substitute for the Portfolio shares in any Division, the shares of another class of Brighthouse Trust I, Brighthouse Trust II or the shares of another investment company or any other investment permitted by law. |
| • | To change the way we assess charges, but without increasing the aggregate amount charged to the Separate Account and any currently available Portfolio in connection with the Deferred Annuities or Income Annuities. |
| • | To make any necessary technical changes in the Deferred Annuities or Income Annuities in order to conform with any of the above-described actions. |
| • | The shares for which voting instructions are received; and |
| • | The shares that are voted in proportion to such voting instructions. |
| • | (1) the plan’s trust is organized under the laws of Puerto Rico, or has a Puerto Rico resident trustee and uses such trustee as paying agent; and |
| • | (2) 10% of all plan’s trust assets (calculated based on the average balance of the investments of the trust) attributable to participants which are Puerto Rico residents must be invested in “property located in Puerto Rico” for a three-year period. |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| Global Equity | American
Funds Global Small Capitalization Fund* - Class 2 Capital Research and Management CompanySM |
0.90% | 6.74% | 12.51% | 15.45% |
| US Equity | American
Funds Growth Fund - Class 2 Capital Research and Management CompanySM |
0.60% | 21.97% | 19.71% | 25.43% |
| US Equity | American
Funds Growth-Income Fund - Class 2 Capital Research and Management CompanySM |
0.54% | 24.10% | 15.42% | 16.39% |
| US Fixed Income | American
Funds The Bond Fund of America* - Class 2 Capital Research and Management CompanySM |
0.45% | -0.31% | 3.27% | 4.25% |
| Allocation | American
Funds® Balanced Allocation Portfolio - Class C Brighthouse Investment Advisers, LLC |
0.97% | 12.14% | 11.61% | 10.22% |
| Allocation | American
Funds® Growth Allocation Portfolio - Class C Brighthouse Investment Advisers, LLC |
1.01% | 15.91% | 13.89% | 12.35% |
| Allocation | American
Funds® Moderate Allocation Portfolio - Class C Brighthouse Investment Advisers, LLC |
0.94% | 9.64% | 9.44% | 8.33% |
| International Equity | Baillie
Gifford International Stock Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Baillie Gifford Overseas Limited |
0.71% | -0.76% | 13.35% | 9.97% |
| US Fixed Income | BlackRock
Bond Income Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: BlackRock Advisors, LLC |
0.37% | -0.43% | 4.26% | 3.86% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Equity | BlackRock
Capital Appreciation Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: BlackRock Advisors, LLC |
0.77% | 21.02% | 25.26% | 18.46% |
| Allocation | Brighthouse
Asset Allocation 100 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.72% | 18.34% | 14.91% | 13.15% |
| Allocation | Brighthouse
Asset Allocation 20 Portfolio* - Class A Brighthouse Investment Advisers, LLC |
0.60% | 4.01% | 6.00% | 5.30% |
| Allocation | Brighthouse
Asset Allocation 40 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.60% | 7.68% | 8.12% | 7.37% |
| Allocation | Brighthouse
Asset Allocation 60 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.63% | 11.17% | 10.45% | 9.47% |
| Allocation | Brighthouse
Asset Allocation 80 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.67% | 14.87% | 12.89% | 11.54% |
| US Equity | Brighthouse/Artisan
Mid Cap Value Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Artisan Partners Limited Partnership |
0.75% | 26.91% | 10.32% | 11.00% |
| US Fixed Income | Brighthouse/Franklin
Low Duration Total Return Portfolio* - Class B Brighthouse Investment Advisers, LLC Subadviser: Franklin Advisers, Inc. |
0.72% | 0.28% | 1.75% | 1.78% |
| Allocation | Brighthouse/Wellington
Balanced Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.51% | 14.02% | 12.84% | 11.64% |
| US Equity | Brighthouse/Wellington
Core Equity Opportunities Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.60% | 24.43% | 16.62% | 14.75% |
| US Equity | Brighthouse/Wellington
Large Cap Research Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.53% | 24.38% | 18.14% | 16.33% |
| Sector | CBRE
Global Real Estate Portfolio - Class E (formerly known as Clarion Global Real Estate Portfolio - Class E) Brighthouse Investment Advisers, LLC Subadviser: CBRE Investment Management Listed Real Assets LLC |
0.77% | 34.56% | 10.14% | 9.12% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Equity | Frontier
Mid Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Frontier Capital Management Company, LLC |
0.70% | 14.68% | 18.90% | 15.49% |
| International Equity | Harris
Oakmark International Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Harris Associates L.P. |
0.91% | 8.52% | 7.18% | 8.83% |
| Global Equity | Invesco
Global Equity Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Invesco Advisers, Inc. |
0.57% | 15.76% | 18.44% | 14.46% |
| US Equity | Invesco
Small Cap Growth Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Invesco Advisers, Inc. |
0.95% | 7.01% | 19.03% | 16.75% |
| US Equity | Jennison
Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Jennison Associates LLC |
0.53% | 17.17% | 27.45% | 20.50% |
| Allocation | Loomis
Sayles Global Allocation Portfolio* - Class B Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
1.02% | 14.26% | 14.24% | 11.33% |
| US Equity | Loomis
Sayles Growth Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.56% | 18.66% | 16.59% | 15.99% |
| US Equity | Loomis
Sayles Small Cap Core Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.87% | 21.95% | 11.95% | 13.23% |
| US Equity | Loomis
Sayles Small Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.86% | 10.00% | 19.09% | 15.79% |
| US Fixed Income | MetLife
Aggregate Bond Index Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.27% | -1.93% | 3.32% | 2.64% |
| US Equity | MetLife
Mid Cap Stock Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.29% | 24.40% | 12.81% | 13.93% |
| International Equity | MetLife
MSCI EAFE® Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.38% | 10.72% | 9.38% | 7.84% |
| US Equity | MetLife
Russell 2000® Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.30% | 14.52% | 11.93% | 13.20% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Equity | MetLife
Stock Index Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.26% | 28.36% | 18.18% | 16.26% |
| International Equity | MFS
® Research International Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.64% | 11.98% | 12.58% | 8.72% |
| Allocation | MFS
® Total Return Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.74% | 14.05% | 9.72% | 9.52% |
| US Equity | MFS
® Value Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.72% | 25.40% | 12.34% | 13.53% |
| US Equity | Morgan
Stanley Discovery Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Morgan Stanley Investment Management Inc. |
0.62% | -10.54% | 37.65% | 20.90% |
| US Equity | Neuberger
Berman Genesis Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Neuberger Berman Investment Advisers LLC |
0.78% | 18.41% | 15.71% | 14.21% |
| US Fixed Income | PIMCO
Inflation Protected Bond Portfolio - Class E Brighthouse Investment Advisers, LLC Subadviser: Pacific Investment Management Company LLC |
0.68% | 5.49% | 5.26% | 3.01% |
| US Fixed Income | PIMCO
Total Return Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Pacific Investment Management Company LLC |
0.47% | -1.13% | 4.15% | 3.58% |
| Allocation | SSGA
Growth and Income ETF Portfolio - Class E Brighthouse Investment Advisers, LLC Subadviser: SSGA Funds Management, Inc. |
0.66% | 13.52% | 10.15% | 8.59% |
| Allocation | SSGA
Growth ETF Portfolio - Class E Brighthouse Investment Advisers, LLC Subadviser: SSGA Funds Management, Inc. |
0.69% | 17.75% | 11.85% | 10.14% |
| US Equity | T.
Rowe Price Large Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.57% | 20.22% | 23.39% | 19.26% |
| US Equity | T.
Rowe Price Mid Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.70% | 15.15% | 18.19% | 16.57% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Equity | T.
Rowe Price Small Cap Growth Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.49% | 11.67% | 16.25% | 15.90% |
| US Equity | Victory
Sycamore Mid Cap Value Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Victory Capital Management Inc. |
0.59% | 32.13% | 12.75% | 12.26% |
| US Fixed Income | Western
Asset Management Strategic Bond Opportunities Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Western Asset Management Company LLC |
0.54% | 2.82% | 5.55% | 5.21% |
| US Fixed Income | Western
Asset Management U.S. Government Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Western Asset Management Company LLC |
0.48% | -1.52% | 2.49% | 1.97% |
| * | The Portfolio is subject to an expense reimbursement or fee waiver arrangement. The annual expenses shown reflect temporary fee reductions. |
| Qualified
Deferred and Income Annuities |
Non-Qualified
Deferred Annuities and Income Annuities |
|||
| California (1) | 0.50% | 2.35% | ||
| Colorado | 0.00% | 2.00% | ||
| Florida (2) | 1.00% | 1.00% | ||
| Maine (3) | 0.00% | 2.00% | ||
| Nevada (4) | 0.00% | 3.50% | ||
| Puerto Rico(5) | 1.00% | 1.00% | ||
| South Dakota(6) | 0.00% | 1.25% | ||
| Wyoming (4) | 0.00% | 1.00% |
| 1 | California applies the qualified tax rate to plans that qualify under the following Code Sections: 401(a), 403(b), 404, 408(b), and 501(a). |
| 2 | Annuity purchase payments are exempt from taxation provided the tax savings are passed back to the Contract Owners. Otherwise, they are taxable at 1%. |
| 3 | Maine applies the qualified tax rate to plans that qualify under the following Code Sections: 401, 403, 403(b), 404, 408, 457 and 501. |
| 4 | Nevada and Wyoming apply the qualified tax rate to plans that qualify under the following Code Sections: 401, 403, 404, 408, 457 and 501. |
| 5 | We will not deduct premium taxes paid by us to Puerto Rico from purchase payments, Account Value, withdrawals, death benefits or income payments. |
| 6 | Special rate applies for large case annuity policies. Rate is 0.08% for that portion of the annuity considerations received on a Contract exceeding $500,000 annually. Special rate on large case policies is not subject to retaliation. South Dakota applies the qualified tax rate to plans that qualify under the following Code Sections: 401, 403(b), 404, 408, 457, and 501(a). |
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| FEES AND EXPENSES | LOCATION
IN PROSPECTUS | |||
| Charges for Early Withdrawals | Withdrawal
charges are calculated as a percentage of each purchase payment funding the withdrawal during the pay-in phase. A Withdrawal Charge of up to 7.00% may be assessed on any such premium payment paid up to 8 years before the date of the withdrawal. For example, if you purchase the Contract for $100,000 and surrender your Contract during the first year, You will pay a Withdrawal Charge of up to $7,000. |
Charges – Early Withdrawal Charges | ||
| Transaction Charges | In
addition to surrender charges, you also may be charged for other transactions. Although we do not currently charge a fee for transfers of cash value among Divisions or between the Divisions and the Fixed Account, we reserve the right to impose a
transfer fee of $25. There is a one-time Contract Fee of $350 for Income Annuities. We do not charge this fee if You elect a pay-out option under your Deferred Annuity and You have owned your Deferred Annuity for more than two years. We are currently waiving this charge. |
Charges – Transfer Fee | ||
| Ongoing Fees and Expenses (annual charges) | The table below describes the fees and expenses that you may pay each year, depending on the options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. | Fees | ||
| Annual Fee | Minimum | Maximum | ||
|
Base Contract (varies by investment options chosen) |
1.25%(1) |
1.25% (1) | ||
|
Investment options (Portfolio fees and expenses) |
0.27%(2) |
1.03% (2) | ||
| For
all Contracts, except the Keogh Deferred Annuity and certain TSA Deferred Annuities, You pay a $20 annual fee from the Fixed Interest Account at the end of each Contract Year, if your Account Value is less than $10,000 and if You do not make
purchase payments during the year. For the Keogh Deferred Annuity with individual participant recordkeeping (allocated) You pay a $20 charge applied against any amounts in the Fixed Interest Account. (1) As a percentage of your Account Balance in the Separate Account. (2) As a percentage of average daily net assets of the Portfolio. | ||||
| FEES AND EXPENSES | LOCATION
IN PROSPECTUS | |||
| Because your Contract is customizable, the choices you make affect how much you will pay. To help understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. This estimate assumes that you do not take withdrawals from the Contract, which could add surrender charges that substantially increase costs. | Fees | |||
| Lowest Annual Cost: | Highest Annual Cost: | |||
| $1,429 | $2,068 | |||
| •
Assumes: • Investment of $100,000• 5% annual appreciation• Least expensive combination of Contract classes and Portfolio fees and expenses• No optional benefits• No sales charges• No additional purchase payments, transfers or withdrawals |
• Assumes:• Investment of $100,000• 5% annual appreciation• Most expensive combination of Portfolio fees and expenses• No sales charges• No additional purchase payments, transfers or withdrawals | |||
| RISKS | LOCATION
IN PROSPECTUS | |||
| Risk of Loss | You can lose money by investing in the Contract, including loss of principal. | Principal Risks of Investing in the Contract | ||
| Not a Short-Term Investment | This
Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. • Withdrawal Charges may apply for up to 8 years following each purchase payment. Withdrawal Charges will reduce the value of your Contract if you withdraw money during that time.• The benefits of tax deferral and living benefit protections also mean that the Contract is more beneficial to investors with a long time horizon.• Earnings on your Contract are taxed at ordinary income tax rates when You withdraw them, and You may have to pay a penalty if You take a withdrawal before age 59 1⁄2. |
Principal Risks of Investing in the Contract | ||
| Risks Associated with Investment Options | • An investment in the Contract is subject to the risk of poor investment performance and can vary depending on the performance of the investment options available under the Contract (e.g., Portfolios).• Each investment option (including the Fixed Account investment option) will have its own unique risks.• You should review these investment options before making an investment decision. | Principal Risks of Investing in the Contract | ||
| RISKS | LOCATION
IN PROSPECTUS | |||
| Insurance Company Risks | An investment in the Contract is subject to the risks related to Metropolitan Life including any obligations (including under the Fixed Account), guarantees and benefits of the Contract, which are subject to the claims-paying ability of the Company, and our long term ability to make such payments, and are not guaranteed by any other party. MetLife is regulated as an insurance company under state law, which generally includes limits on the amount and type of investments in its general account. However, there is no guarantee that we will be able to meet our claims paying obligations; there are risks to purchasing any insurance product. More information about the Company, including its financial strength ratings, is available upon request by visiting https://www.metlife.com/about-us/corporate-profile/ratings/. | Principal Risks of Investing in the Contract | ||
| RESTRICTIONS | LOCATION
IN PROSPECTUS | |||
| Investments | Although
we do not currently charge a fee for transfers of cash value among Divisions or between the Divisions and the Fixed Account, we reserve the right to impose a transfer fee of $25. We reserve the right to add, remove or substitute Portfolios. The Company also has policies and procedures that attempt to detect and deter frequent transfers in situations where we determine there is a potential for arbitrage trading, and in those instances, there are additional limits that apply to transfers. |
Charges -Transfer Fee Restrictions on Transfers | ||
| TAXES | LOCATION
IN PROSPECTUS | |||
| Tax Implications | •
You should consult with a tax professional to determine the tax implications of an investment in and purchase payments received under the Contract. • There is no additional tax benefit if You purchase the Contract through a tax-qualified plan or individual retirement account (IRA).• Earnings on your Contract are taxed at ordinary income tax rates when You withdraw them, and You may have to pay a penalty if You take a withdrawal before age 59 1⁄2. |
Federal Tax Considerations | ||
| CONFLICTS OF INTEREST | LOCATION
IN PROSPECTUS | |||
| Investment Professional Compensation | Your investment professional may receive compensation for selling this Contract to You, both in the form of commissions and because MetLife may share the revenue it earns on this Contract with the professional’s firm. This conflict of interest may influence your investment professional to recommend this Contract over another investment. | Who Sells the Deferred Annuities and Income Annuities | ||
| Exchanges | Some investment professionals may have a financial incentive to offer you a new contract in place of the one you own. You should only exchange your Contract if you determine, after comparing the features, fees, and risks of both contracts, that it is better for you to purchase the new contract rather than continue to own your existing Contract. | Exchanges/Transfers | ||
| 1) | Accumulation (Pay-in) Phase |
| • | Portfolios (mutual funds), each of which has its own investment strategies, investment advisers, expense ratios, and returns; and |
| • | a Fixed Account option, which offers a guaranteed interest rate during a selected period. |
| 2) | Income (Pay-out) Phase |
| Sales Load Imposed on Purchase Payments | None |
| Early
Withdrawal Charge (as a percentage of each purchase payment funding the withdrawal during the pay-in phase)(1) |
7% |
| Exchange Fee for Deferred Annuities | None |
| Surrender Fee for Deferred Annuities | None |
| Account Reduction Loan Initiation Fee(2) | $ 75 |
| Income Annuity Contract Fee(3) | $ 350 |
| Transfer Fee(4) | $25 |
| 1 | An Early Withdrawal Charge of up to 7% may apply if You withdraw purchase payments within seven years of when they were credited to your Deferred Annuity. The charge on purchase payments is calculated according to the following schedule: |
| During
Purchase Payment Year |
Percentage |
| 1 | 7% |
| 2 | 6% |
| 3 | 5% |
| 4 | 4% |
| 5 | 3% |
| 6 | 2% |
| 7 | 1% |
| Thereafter | 0% |
| There are times when the Early Withdrawal Charge does not apply to amounts that are withdrawn from a Deferred Annuity. For example, each Contract Year You may take the greater of 10% of your Account Value or your purchase payments made over seven years ago free of Early Withdrawal Charges. | |
| 2 | This fee may be waived for certain groups. |
| 3 | There is a one-time Contract Fee of $350 for Income Annuities. We do not charge this fee if You elect a pay-out option under your Deferred Annuity and You have owned your Deferred Annuity for more than two years. We are currently waiving this charge. |
| 4 | Although we do not currently charge a fee for transfers, we reserve the right to impose a transfer fee of $25. |
| Base
Contract Expense(5,6) (as a percentage of your average Account Value in the Separate Account) |
1.26% |
| Annual Account Reduction Loan Maintenance Fee (per loan outstanding) (7) | $ 50 |
| 5 | The Base Contract Fee includes .01% for the Annual Contract Fee. The Annual Contract Fee is $20 annually and is charged only against amounts in the Fixed Interest Account. The Annual Contract Fee may be waived under certain circumstances. |
| 6 | Pursuant to the terms of the Contract, our total Separate Account charge will not exceed 1.25% of your average balance in the Divisions. For purposes of presentation here, we estimated the allocation between general administrative expenses and the mortality and expense risk charge for Deferred Annuities or the amount of underlying Portfolio shares we have designated in the Divisions to generate your income payments for Income Annuities. |
| 7 | This fee may be waived for certain groups. The loan maintenance fee is paid on a quarterly basis at the end of each quarter on a pro-rata basis from the Divisions and the Fixed Interest Account in which You then have a balance. |
| Minimum | Maximum | |
| Annual Portfolio Expenses (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | 0.27% | 1.03% |
| • | reimbursement and/or waiver of expenses was not in effect; |
| • | there is a maximum Separate Account charge of 1.25%; |
| • | You bear the Minimum or Maximum Total Annual Portfolio Operating Expenses; |
| • | the underlying Portfolio earns a 5% annual return; and |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you surrender your Contract at the end of the applicable time period | ||||
| Maximum | $9,280 | $11,529 | $14,739 | $25,806 |
| Minimum | $8,520 | $ 9,221 | $10,849 | $17,817 |
| • | reimbursement and/or waiver of expenses was not in effect; |
| • | You bear the Minimum or Maximum Total Annual Portfolio Operating Expenses; |
| • | there is a maximum Separate Account charge of 1.25%; |
| • | the underlying Portfolio earns a 5% annual return; and |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you annuitize or do not surrender your Contract at the end of the applicable time period | ||||
| Maximum | $2,280 | $7,029 | $12,039 | $25,806 |
| Minimum | $1,520 | $4,721 | $ 8,149 | $17,817 |
| • | reimbursement and/or waiver of expenses was not in effect; |
| • | You bear the Minimum or Maximum Total Annual Portfolio Operating Expenses; |
| • | You bear the Income Annuity Contract Fee; |
| • | there is a maximum Separate Account charge of 1.25%; |
| • | the underlying Portfolio earns a 5% annual return; and |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you annuitize or do not surrender your Contract at the end of the applicable time period | ||||
| Maximum | $2,630 | $7,362 | $12,356 | $26,076 |
| Minimum | $1,870 | $5,060 | $ 8,476 | $18,112 |
| • | TSA (Tax Sheltered Annuity) |
| • | PEDC (Public Employee Deferred Compensation arrangements) |
| • | Keogh (Keogh plans under Section 401) |
| • | 403(a) (Qualified Annuity plans under Section 403(a)) |
| • | Allocated (your Account Value records are kept for You as an individual); or |
| • | Unallocated (Account Value records are kept for a plan or group as a whole). |
| • | Your employer, association or other group contract holder limits the available Divisions. |
| • | We have restricted the available Divisions. |
| • | Some of the Divisions are not approved in your state. |
| • | Federal tax laws; |
| • | Our right to limit the total of your purchase payments to $1,000,000. We may change the maximum by telling You in writing at least 90 days in advance; |
| • | Regulatory requirements. For example, if You reside in Washington or Oregon, we may be required to limit your ability to make purchase payments after You have held the Deferred Annuity for more than three years, if the Deferred Annuity was issued to You after You turn age 60; or after You turn age 63, if the Deferred Annuity was issued before You were age 61 (except under the PEDC Deferred Annuity); |
| • | Retirement, for certain Deferred Annuities. You may no longer make purchase payments if You retire; |
| • | Leaving your job (for Keogh, TSA, PEDC and 403(a) Deferred Annuities); and |
| • | Receiving systematic termination payments. |
| • | First, we determine the change in investment performance (including any investment-related charge) for the underlying Portfolio from the previous trading day to the current trading day; |
| • | Next, we subtract the daily equivalent of our insurance-related charge (general administrative expenses and mortality and expense risk charges) for each day since the last Accumulation Unit Value was calculated; and |
| • | Finally, we multiply the previous Accumulation Unit Value by this result. |
| $500 | = | 50 Accumulation Units |
| $10 |
| • | The percentage or dollar amount of the transfer; |
| • | The Divisions (or Fixed Interest Account) from which You want the money to be transferred; |
| • | The Divisions (or Fixed Interest Account) to which You want the money to be transferred; and |
| • | Whether You intend to start, stop, modify or continue unchanged an automated investment strategy by making the transfer. |
| • | Use our forms; |
| • | Maintain a minimum Account Value (if the transfer is in connection with an automated investment strategy or if there is an outstanding loan from the Fixed Interest Account); or |
| • | Transfer a minimum amount if the transfer is in connection with the Allocator. |
| • | American Funds Global Small Capitalization Fund |
| • | American Funds Growth Fund |
| • | American Funds Growth-Income Fund |
| • | American Funds The Bond Fund of America |
| • | Baillie Gifford International Stock Portfolio |
| • | CBRE Global Real Estate Portfolio |
| • | Harris Oakmark International Portfolio |
| • | Invesco Global Equity Portfolio |
| • | Invesco Small Cap Growth Portfolio |
| • | Loomis Sayles Global Allocation Portfolio |
| • | Loomis Sayles Small Cap Core Portfolio |
| • | Loomis Sayles Small Cap Growth Portfolio |
| • | MetLife MSCI EAFE® Index Portfolio |
| • | MetLife Russell 2000® Index Portfolio |
| • | MFS® Research International Portfolio |
| • | Neuberger Berman Genesis Portfolio |
| • | T. Rowe Price Small Cap Growth Portfolio |
| • | Western Asset Management Strategic Bond Opportunities Portfolio |
| • | The percentage or dollar amount of the withdrawal; and |
| • | The Divisions (or Fixed Interest Account) from which You want the money to be withdrawn. |
| • | For all Contracts, except the Keogh Deferred Annuity and certain TSA Deferred Annuities, You pay a $20 annual fee from the Fixed Interest Account at the end of each Contract Year, if your Account Value is less than $10,000 and if You do not make purchase payments during the year. |
| • | For the Keogh Deferred Annuity with individual participant recordkeeping (allocated) You pay a $20 charge applied against any amounts in the Fixed Interest Account. |
| • | For the Keogh Deferred Annuity with no individual participant recordkeeping (unallocated), there is no Annual Contract Fee. |
| • | There is no Annual Contract Fee for certain TSA Deferred Annuities. |
| • | Insurance-related charge (or Separate Account charge), and |
| • | Investment-related charge. |
| During Purchase Payment Year | Percentage |
| 1 | 7% |
| 2 | 6% |
| 3 | 5% |
| 4 | 4% |
| 5 | 3% |
| 6 | 2% |
| 7 | 1% |
| 8 & Later | 0% |
| • | On transfers You make within your Deferred Annuity among Divisions and transfers to or from the Fixed Interest Account. |
| • | On withdrawals of purchase payments You made over seven years ago. |
| • | If You choose payments over one or more lifetimes or for a period of at least five years (without the right to accelerate the payments). |
| • | If You die during the pay-in phase. Your Beneficiary will receive the full death benefit without deduction. |
| • | If You withdraw up to 10% (20% for the unallocated Keogh and certain TSA Deferred Annuities) of your Account Value each Contract Year. This 10% (or 20%) total withdrawal may be taken in an unlimited number of partial withdrawals during that Contract Year. Each time You make a withdrawal, we calculate what percentage your withdrawal represents at that time. Only when the total of these percentages exceeds 10% (or 20%) will You have to pay Early Withdrawal Charges. |
| • | If You have a Keogh Deferred Annuity, generally You are allowed to take the “free withdrawal” on top of any other withdrawals which are otherwise exempt from the Early Withdrawal Charge. This is not true if your other withdrawals are in connection with a systematic termination or purchase payments made over 7 years ago. |
| • | If the withdrawal is required for You to avoid Federal income tax penalties or to satisfy Federal income tax rules or Department of Labor regulations that apply to your Deferred Annuity. This exception does not apply if the withdrawal is to satisfy Section 72(t) requirements under the Code. |
| • | Systematic Termination. For unallocated Keogh and certain TSA Deferred Annuities, and the TSA Deferred Annuity for certain Texas institutions of higher education which takes effect when the institution withdraws its |
| endorsement of the TSA Deferred Annuity or if You retire or leave your job according to the requirements of the Texas Optional Retirement Program, You may withdraw your total Account Value without an Early Withdrawal Charge when the Account Value is paid in annual installments based on the following percentages of your Account Value for that year’s withdrawal: |
| Contract Year* | Percentage |
| 1 | 20% |
| 2 | 25% |
| 3 | 33 1⁄3% |
| 4 | 50% |
| 5 |
Remainder |
| * | Less that Contract Year’s withdrawals. |
| Any money You withdraw in excess of these percentages in any Contract Year will be subject to Early Withdrawal Charges. You may stop the systematic termination of the Contract. If You ask to restart systematic termination, You begin at the beginning of the schedule listed above. | |
| • | If You are disabled and request a total withdrawal. Disability is defined in the Federal Social Security Act. If the Keogh or TSA Deferred Annuity is issued in connection with your retirement plan which is subject to the Employee Retirement Income Security Act of 1974 (“ERISA”) and if your plan document defines disability, your plan’s definition governs. |
| • | If You retire: |
| • | For the Keogh, TSA and 403(a) Deferred Annuities, if there is a plan and You retire according to the requirements of the plan. This exemption does not apply to withdrawals of money transferred into these TSA Deferred Annuities from other investment vehicles on a tax-free basis (plus earnings on such amounts). |
| • | For the unallocated Keogh Deferred Annuity, if your plan defines retirement and You retire under that definition. If You are a “restricted” participant, according to the terms of the unallocated Keogh Deferred Annuity, You must have participated in the unallocated Keogh Deferred Annuity for the time stated in the Contract. |
| • | For certain TSA Deferred Annuities without a plan, if You have also participated for at least 10 consecutive years. This does not apply for withdrawals of money transferred into the Contract from other investment vehicles on a tax-free basis (plus earnings on such amounts). Participated for at least 10 consecutive years means that your Contract must have been in existence for 10 years prior to the requested withdrawal. |
| • | For the allocated Keogh Deferred Annuity, if You have continuously participated for at least seven years. |
| • | For certain TSA Deferred Annuities, if You retired before the Contract was purchased (including money transferred from other investment vehicles on a tax-free basis plus earnings on that money). |
| • | For certain TSA Deferred Annuities, if there is a plan and You retire according to the requirements of the plan. |
| • | For the PEDC Deferred Annuity, if You retire. |
| • | If You leave your job: |
| • | For the unallocated Keogh Deferred Annuity, if You are a “restricted” participant, according to the terms of the unallocated Keogh Deferred Annuity, You must have participated in the unallocated Keogh Deferred Annuity for the time stated in the Contract. |
| • | For the TSA and 403(a) Deferred Annuities, only if You have continuously participated for at least 10 years. This exemption does not apply to withdrawals of money transferred into TSA and 403(a) Deferred Annuities from other investment vehicles on a tax-free basis (plus earnings on such amounts). Continuously participated means that your Contract must be in existence for 10 years prior to the requested withdrawal. |
| • | For the allocated Keogh Deferred Annuity, only if You have continuously participated for at least seven years. |
| • | For certain TSA Deferred Annuities, if You leave your job with the employer You had at the time You purchased this annuity. |
| • | For certain TSA Deferred Annuities, if You left your job before the Contract was purchased (including money transferred from other investment vehicles on a tax-free basis plus earnings on that money). |
| • | For PEDC, if You leave your job with the employer that bought the Deferred Annuity or the employer in whose arrangement You participate. |
| • | For Keogh and certain TSA Deferred Annuities, if your plan terminates and the Account Value is transferred into another annuity contract we issue. |
| • | For PEDC, unallocated Keogh and certain TSA Deferred Annuities, if You suffer from an unforeseen hardship. |
| • | For Keogh Deferred Annuities, if You make a direct transfer to another investment vehicle we have preapproved. For the unallocated Keogh Deferred Annuity, if You are a “restricted” participant, according to the terms of the unallocated Keogh Deferred Annuity, You also must roll over your Account Value to a MetLife individual retirement annuity within 120 days after You are eligible to receive a plan distribution. |
| • | For participants in the Teacher Retirement System of Texas who purchase Contracts on or after June 1, 2002, if You have continuously participated for 10 years. Continuously participated means your Contract must be in existence for 10 years prior to the requested withdrawal. |
| • | If the plan or group of which You are a participant or member permits account reduction loans, You take an account reduction loan and the withdrawal consists of these account reduction loan amounts. |
| • | If You have transferred money which is not subject to a withdrawal charge (because You have satisfied contractual provisions for a withdrawal without the imposition of a contract withdrawal charge) from certain eligible MetLife contracts into the Deferred Annuity and the withdrawal is of these transferred amounts and we agree. Any purchase payments made after the transfer are subject to the usual Early Withdrawal Charge schedule. |
| • | If permitted in your state, if You make a direct transfer to another funding option or annuity contract issued by us or by one of our affiliates and we agree. |
| • | Amounts transferred before January 1, 1996. We credit your transfer amounts with the time You held them under your original Contract. Or, if it will produce a lower charge, we use the following schedule to determine Early Withdrawal Charges (determined as previously described) for transferred amounts from your original Contract: |
| During Purchase Payment Year | Percentage |
| 1 | 5% |
| 2 | 4% |
| 3 | 3% |
| 4 | 2% |
| 5 | 1% |
| and Beyond | 0% |
| • | Amounts transferred on or after January 1, 1996. For certain Contracts which we issued at least two years before the date of transfer (except as noted below), we apply the withdrawal charge under your original Contract but not any of the original Contract’s exceptions or reductions to the withdrawal charge percentage that do not apply to a Deferred Annuity. Or, if it will produce a lower charge, we use the following schedule to determine Early Withdrawal Charges for transferred amounts from your original Contract: |
| During Transfer Year | Percentage |
| 1 | 5% |
| 2 | 4% |
| 3 | 3% |
| 4 | 2% |
| 5 | 1% |
| 6 and Beyond | 0% |
| • | If we issued the other Contract less than two years before the date of the transfer or it has a separate withdrawal charge for each purchase payment, we treat your purchase payments under the other Contract as if they were made under the Deferred Annuity as of the date we received them under that Contract. |
| • | Alternatively, if provided for in your Deferred Annuity, we credit your purchase payments with the time You held them under your original Contract. |
| • | TSA |
| • | PEDC |
| • | Keogh |
| • | 403(a) |
| • | Owner: the person or entity which has all rights under the Income Annuity including the right to direct who receives payment. |
| • | Annuitant: the person whose life is the measure for determining the duration and sometimes the dollar amount of payments. |
| • | Beneficiary: the person who receives continuing payments or a lump sum payment if the Owner dies. |
| • | The amount of income You need; |
| • | The amount You expect to receive from other sources; |
| • | The growth potential of other investments; and |
| • | How long You would like your income to last. |
| • | The percentage of the income payment to be reallocated; |
| • | The Divisions from which You want the income payment to be reallocated; and |
| • | The Divisions or Fixed Income Option (and the percentages allocated to each) to which You want the income payment to be reallocated. |
| • | First, we update the income payment amount to be reallocated from the Division based upon the applicable Annuity Unit Value at the time of the reallocation; |
| • | Second, we use the AIR to calculate an updated annuity purchase rate based upon your age, if applicable, and expected future income payments at the time of the reallocation; |
| • | Third, we calculate another updated annuity purchase rate using our current annuity purchase rates for the Fixed Income Option on the date of your reallocation; and |
| • | Finally, we determine the adjusted payment amount by multiplying the updated income amount determined in the first step by the ratio of the annuity purchase rate determined in the second step divided by the annuity purchase rate determined in the third step. |
| • | Suppose You choose to reallocate 40% of your income payment supported by Division A to the Fixed Income Option and the recalculated income payment supported by Division A is $100. Assume that the updated annuity purchase rate based on the AIR is $125, while the updated annuity purchase rate based on fixed income |
| annuity pricing is $100. In that case, your income payment from the Fixed Income Option will be increased by $40 x ($125 ÷ $100) or $50, and your income payment supported by Division A will be decreased by $40. (The number of Annuity Units in Division A will be decreased as well.) | |
| • | Suppose You choose to reallocate 40% of your income payment supported by Division A to Division B and the recalculated income payment supported by Division A is $100. Then, your income payment supported by Division B will be increased by $40 and your income payment supported by Division A will be decreased by $40. (Changes will be made to the number of Annuity Units in both Divisions as well.) |
| • | Payments guaranteed by us for the rest of your life (or for the rest of two lives) or for a specified period; |
| • | A fixed dollar payment or a variable payment; and |
| • | A refund feature. |
| Name of Benefit* | Purpose | Is
Benefit Standard or Optional? |
Maximum Fee | Brief
Description of Restrictions/Limitations |
| Standard Death Benefit | Guarantees that the death benefit will not be less than the greatest of (1) your Account Value; (2) Your highest Account Value as of December 31 following the end of your fifth Contract Year and at the end of every other five year period. In any case, less any later partial withdrawals, fees and charges; or (3) the total of all of your purchase payments less any partial withdrawals (including any applicable Early Withdrawal Charge) | Standard | None | • Withdrawals could significantly reduce the benefit. |
| The Equity Generator®: | An amount equal to the interest earned in the Fixed Interest Account is transferred monthly to any one Division based on your selection. | Optional | None | •
Benefit limits available investment options. • If your Fixed Interest Account Balance at the time of a scheduled transfer is zero, this strategy is automatically discontinued. |
| The Equalizer SM: | Each quarter, amounts are transferred between the Fixed Interest Account and your chosen Division to make the value of each equal. | Optional | None | • Benefit limits available investment options. |
| Name of Benefit* | Purpose | Is
Benefit Standard or Optional? |
Maximum Fee | Brief
Description of Restrictions/Limitations |
| The Rebalancer®: | You select a specific asset allocation for your entire Account Balance from among the Divisions and the Fixed Interest Account, if available. Each quarter we transfer amounts among these options to bring the percentage of your Account Balance in each option back to your original allocation. | Optional | None | • In the future, we may permit You to allocate less than 100% of your Account Balance to this strategy. |
| The Index Selector®: | You may select one of five asset allocation models which are designed to correlate to various risk tolerance levels. Each quarter the percentage in each of the Divisions in which the model invests and any Fixed Interest Account is brought back to the selected model percentage by transferring amounts among the Divisions and any Fixed Interest Account | Optional | None | • Benefit limits available investment options. |
| The Allocator SM: | Each month, a dollar amount You choose is transferred from the Fixed Interest Account to any of the Divisions You choose. You select the day of the month and the number of months over which the transfers will occur. | Option | None | • Minimum periodic transfer of $50 is required• Once your Fixed Interest Account Balance is exhausted, the strategy is discontinued. |
| * | If your annuity was issued in connection with an employer plan, you should ask your employer for a list of available riders. |
| • | Your Account Value; |
| • | Your highest Account Value as of December 31 following the end of your fifth Contract Year and at the end of every other five year period. In any case, less any later partial withdrawals, fees and charges; or |
| • | The total of all of your purchase payments less any partial withdrawals (including any applicable Early Withdrawal Charge). |
| • | On a day when the Accumulation Unit Value/Annuity Unit Value is not calculated, or |
| • | After the close of the Exchange. |
| • | Account Value |
| • | Unit Values |
| • | Current rates for the Fixed Interest Account |
| • | Transfers |
| • | Changes to investment strategies |
| • | Changes in the allocation of future purchase payments. |
| • | any inaccuracy, error, or delay in or omission of any information You transmit or deliver to us; or |
| • | any loss or damage You may incur because of such inaccuracy, error, delay or omission; non-performance; or any interruption of information beyond our control. |
| • | rules of the SEC so permit (trading on the Exchange is limited, the Exchange is closed other than for customary weekend or holiday closings or an emergency exists which makes pricing or sale of securities not practicable); or |
| • | during any other period when the SEC by order so permits. |
| • | To operate the Separate Account in any form permitted by law. |
| • | To take any action necessary to comply with or obtain and continue any exemptions under the law (including favorable treatment under the Federal income tax laws) including limiting the number, frequency or types of transfers/reallocations transactions permitted. |
| • | To transfer any assets in a Division to another Division, or to one or more separate accounts, or to our general account, or to add, combine or remove Divisions in the Separate Account. |
| • | To substitute for the Portfolio shares in any Division, the shares of another class of Brighthouse Trust I, Brighthouse Trust II or the shares of another investment company or any other investment permitted by law. |
| • | To change the way we assess charges, but without increasing the aggregate amount charged to the Separate Account and any currently available Portfolio in connection with the Deferred Annuities or Income Annuities. |
| • | To make any necessary technical changes in the Deferred Annuities or Income Annuities in order to conform with any of the above-described actions. |
| • | The shares for which voting instructions are received; and |
| • | The shares that are voted in proportion to such voting instructions. |
| • | (1) the plan’s trust is organized under the laws of Puerto Rico, or has a Puerto Rico resident trustee and uses such trustee as paying agent; and |
| • | (2) 10% of all plan’s trust assets (calculated based on the average balance of the investments of the trust) attributable to participants which are Puerto Rico residents must be invested in “property located in Puerto Rico” for a three-year period. |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| Global Equity | American
Funds Global Small Capitalization Fund* - Class 2 Capital Research and Management CompanySM |
0.90% | 6.74% | 12.51% | 15.45% |
| US Equity | American
Funds Growth Fund - Class 2 Capital Research and Management CompanySM |
0.60% | 21.97% | 19.71% | 25.43% |
| US Equity | American
Funds Growth-Income Fund - Class 2 Capital Research and Management CompanySM |
0.54% | 24.10% | 15.42% | 16.39% |
| US Fixed Income | American
Funds The Bond Fund of America* - Class 2 Capital Research and Management CompanySM |
0.45% | -0.31% | 3.27% | 4.25% |
| Allocation | American
Funds® Balanced Allocation Portfolio - Class C Brighthouse Investment Advisers, LLC |
0.97% | 12.14% | 11.61% | 10.22% |
| Allocation | American
Funds® Growth Allocation Portfolio - Class C Brighthouse Investment Advisers, LLC |
1.01% | 15.91% | 13.89% | 12.35% |
| Allocation | American
Funds® Moderate Allocation Portfolio - Class C Brighthouse Investment Advisers, LLC |
0.94% | 9.64% | 9.44% | 8.33% |
| International Equity | Baillie
Gifford International Stock Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Baillie Gifford Overseas Limited |
0.71% | -0.76% | 13.35% | 9.97% |
| US Fixed Income | BlackRock
Bond Income Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: BlackRock Advisors, LLC |
0.37% | -0.43% | 4.26% | 3.86% |
| US Equity | BlackRock
Capital Appreciation Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: BlackRock Advisors, LLC |
0.77% | 21.02% | 25.26% | 18.46% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| Allocation | Brighthouse
Asset Allocation 100 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.72% | 18.34% | 14.91% | 13.15% |
| Allocation | Brighthouse
Asset Allocation 20 Portfolio* - Class A Brighthouse Investment Advisers, LLC |
0.60% | 4.01% | 6.00% | 5.30% |
| Allocation | Brighthouse
Asset Allocation 40 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.60% | 7.68% | 8.12% | 7.37% |
| Allocation | Brighthouse
Asset Allocation 60 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.63% | 11.17% | 10.45% | 9.47% |
| Allocation | Brighthouse
Asset Allocation 80 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.67% | 14.87% | 12.89% | 11.54% |
| US Equity | Brighthouse/Artisan
Mid Cap Value Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Artisan Partners Limited Partnership |
0.75% | 26.91% | 10.32% | 11.00% |
| US Fixed Income | Brighthouse/Franklin
Low Duration Total Return Portfolio* - Class B Brighthouse Investment Advisers, LLC Subadviser: Franklin Advisers, Inc. |
0.72% | 0.28% | 1.75% | 1.78% |
| Allocation | Brighthouse/Wellington
Balanced Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.51% | 14.02% | 12.84% | 11.64% |
| US Equity | Brighthouse/Wellington
Core Equity Opportunities Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.60% | 24.43% | 16.62% | 14.75% |
| US Equity | Brighthouse/Wellington
Large Cap Research Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.53% | 24.38% | 18.14% | 16.33% |
| Allocation | Calvert
VP SRI Balanced Portfolio - Class I Calvert Research and Management |
0.63% | 15.12% | 12.49% | 10.48% |
| Sector | CBRE
Global Real Estate Portfolio - Class E (formerly known as Clarion Global Real Estate Portfolio - Class E) Brighthouse Investment Advisers, LLC Subadviser: CBRE Investment Management Listed Real Assets LLC |
0.77% | 34.56% | 10.14% | 9.12% |
| Allocation | Freedom
2020 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.75% | 9.26% | 10.41% | 8.98% |
| Allocation | Freedom
2025 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.78% | 10.55% | 11.24% | 9.97% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| Allocation | Freedom
2030 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.82% | 12.07% | 12.48% | 10.81% |
| Allocation | Freedom
2035 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.87% | 15.18% | 13.98% | 11.97% |
| Allocation | Freedom
2040 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.90% | 17.50% | 14.72% | 12.39% |
| Allocation | Freedom
2045 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.90% | 17.53% | 14.72% | 12.49% |
| Allocation | Freedom
2050 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.90% | 17.51% | 14.72% | 12.55% |
| US Equity | Frontier
Mid Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Frontier Capital Management Company, LLC |
0.70% | 14.68% | 18.90% | 15.49% |
| International Equity | Harris
Oakmark International Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Harris Associates L.P. |
0.91% | 8.52% | 7.18% | 8.83% |
| Global Equity | Invesco
Global Equity Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Invesco Advisers, Inc. |
0.57% | 15.76% | 18.44% | 14.46% |
| US Equity | Invesco
Small Cap Growth Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Invesco Advisers, Inc. |
0.95% | 7.01% | 19.03% | 16.75% |
| US Equity | Jennison
Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Jennison Associates LLC |
0.53% | 17.17% | 27.45% | 20.50% |
| Allocation | Loomis
Sayles Global Allocation Portfolio* - Class B Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
1.02% | 14.26% | 14.24% | 11.33% |
| US Equity | Loomis
Sayles Growth Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.56% | 18.66% | 16.59% | 15.99% |
| US Equity | Loomis
Sayles Small Cap Core Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.87% | 21.95% | 11.95% | 13.23% |
| US Equity | Loomis
Sayles Small Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.86% | 10.00% | 19.09% | 15.79% |
| US Fixed Income | MetLife
Aggregate Bond Index Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.27% | -1.93% | 3.32% | 2.64% |
| US Equity | MetLife
Mid Cap Stock Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.29% | 24.40% | 12.81% | 13.93% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| International Equity | MetLife
MSCI EAFE® Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.38% | 10.72% | 9.38% | 7.84% |
| US Equity | MetLife
Russell 2000® Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.30% | 14.52% | 11.93% | 13.20% |
| US Equity | MetLife
Stock Index Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.26% | 28.36% | 18.18% | 16.26% |
| International Equity | MFS
® Research International Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.64% | 11.98% | 12.58% | 8.72% |
| Allocation | MFS
® Total Return Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.74% | 14.05% | 9.72% | 9.52% |
| US Equity | MFS
® Value Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.72% | 25.40% | 12.34% | 13.53% |
| US Equity | Morgan
Stanley Discovery Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Morgan Stanley Investment Management Inc. |
0.62% | -10.54% | 37.65% | 20.90% |
| US Equity | Neuberger
Berman Genesis Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Neuberger Berman Investment Advisers LLC |
0.78% | 18.41% | 15.71% | 14.21% |
| US Fixed Income | PIMCO
Inflation Protected Bond Portfolio - Class E Brighthouse Investment Advisers, LLC Subadviser: Pacific Investment Management Company LLC |
0.68% | 5.49% | 5.26% | 3.01% |
| US Fixed Income | PIMCO
Total Return Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Pacific Investment Management Company LLC |
0.47% | -1.13% | 4.15% | 3.58% |
| Allocation | SSGA
Growth and Income ETF Portfolio - Class E Brighthouse Investment Advisers, LLC Subadviser: SSGA Funds Management, Inc. |
0.66% | 13.52% | 10.15% | 8.59% |
| Allocation | SSGA
Growth ETF Portfolio - Class E Brighthouse Investment Advisers, LLC Subadviser: SSGA Funds Management, Inc. |
0.69% | 17.75% | 11.85% | 10.14% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Equity | T.
Rowe Price Large Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.57% | 20.22% | 23.39% | 19.26% |
| US Equity | T.
Rowe Price Mid Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.70% | 15.15% | 18.19% | 16.57% |
| US Equity | T.
Rowe Price Small Cap Growth Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.49% | 11.67% | 16.25% | 15.90% |
| US Equity | Victory
Sycamore Mid Cap Value Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Victory Capital Management Inc. |
0.59% | 32.13% | 12.75% | 12.26% |
| US Fixed Income | Western
Asset Management Strategic Bond Opportunities Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Western Asset Management Company LLC |
0.54% | 2.82% | 5.55% | 5.21% |
| US Fixed Income | Western
Asset Management U.S. Government Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Western Asset Management Company LLC |
0.48% | -1.52% | 2.49% | 1.97% |
| * | The Portfolio is subject to an expense reimbursement or fee waiver arrangement. The annual expenses shown reflect temporary fee reductions. |
| Qualified
Deferred and Income Annuities |
Non-Qualified
Deferred Annuities and Income Annuities |
|||
| California (1) | 0.5% | 2.35% | ||
| Colorado | 0.0% | 2.0% | ||
| Florida (2) | 1.0% | 1.0% | ||
| Maine (3) | 0.0% | 2.0% | ||
| Nevada (4) | 0.0% | 3.5% | ||
| Puerto Rico(5) | 1.0% | 1.0% | ||
| South Dakota(6) | 0.0% | 1.25% | ||
| Wyoming (4) | 0.0% | 1.0% |
| 1 | California applies the qualified tax rate to plans that qualify under the following Code Sections: 401(a), 403(b), 404, 408(b), and 501(a). |
| 2 | Annuity purchase payments are exempt from taxation provided the tax savings are passed back to the Contract Owners. Otherwise, they are taxable at 1%. |
| 3 | Maine applies the qualified tax rate to plans that qualify under the following Code Sections: 401, 403, 403(b), 404, 408, 457 and 501. |
| 4 | Nevada and Wyoming apply the qualified tax rate to plans that qualify under the following Code Sections: 401, 403, 404, 408, 457 and 501. |
| 5 | We will not deduct premium taxes paid by us to Puerto Rico from purchase payments, Account Value, withdrawals, death benefits or income payments. |
| 6 | Special rate applies for large case annuity policies. Rate is 0.08% for that portion of the annuity considerations received on a Contract exceeding $500,000 annually. Special rate on large case policies is not subject to retaliation. South Dakota applies the qualified tax rate to plans that qualify under the following Code Sections: 401, 403(b), 404, 408, 457, and 501(a). |
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| FEES AND EXPENSES | LOCATION
IN PROSPECTUS | |||
| Charges for Early Withdrawals | If
you withdraw money from the Contract within 8 years following your last purchase payment, you will be assessed a contingent deferred sales charge of up to 7% of Contract Value withdrawn. For example, if you make an early withdrawal, you could pay a surrender charge of up to $7,000 on a $100,000 investment. |
Fees | ||
| Transaction Charges | In
addition to surrender charges, you also may be charged for other transactions such as charges for transferring cash value between Divisions and a premium tax charge. Loans will be charged an initial set-up fee and a loan maintenance fee. The Account Reduction Loan Initiation Fee is $75.00. The Account Reduction Loan Maintenance Fee is $50.00. |
Fees | ||
| Ongoing Fees and Expenses (annual charges) | The table below describes the fees and expenses that you may pay each year, depending on the options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. | Fees | ||
| Annual Fee | Minimum | Maximum | ||
|
Base Contract |
0.95%(1) |
0.95% (1) | ||
|
Investment Options (Portfolio fees and expenses) |
0.27%(2) |
0.96% (2) | ||
|
(1) As a percentage of your Account Balance in the Separate Account. (2) As a percentage of daily net assets of the Portfolio. | ||||
| Because your Contract is customizable, the choices you make affect how much you will pay. To help understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. This estimate assumes that you do not take withdrawals from the Contract, which could add contingent deferred sales charges that substantially increase costs. | Fees | |||
| Lowest Annual Cost: | Highest Annual Cost: | |||
| $1,164 | $1,779 | |||
| •
Assumes: • Investment of $100,000• 5% annual appreciation• Least expensive combination of Portfolio fees and expenses• No optional benefits• No sales charges• No additional purchase payments, transfers or withdrawals |
• Assumes:• Investment of $100,000• 5% annual appreciation• Most expensive combination of Portfolio fees and expenses• No sales charges• No additional purchase payments, transfers or withdrawals | |||
| RISKS | LOCATION
IN PROSPECTUS | |||
| Risk of Loss | You can lose money by investing in the Contract including loss of principal. | Principal Risks of Investing in the Contract | ||
| RISKS | LOCATION
IN PROSPECTUS | |||
| Not a Short- Term Investment | This
Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. • Withdrawal charges may apply for up to 8 years following each purchase payment. Withdrawal charges will reduce the value of your Contract if you withdraw money during that time.• The benefits of tax deferral and mean that the Contract is more beneficial to investors with a long time horizon.• Earnings on your Contract are taxed at ordinary income tax rates when You withdraw them, and You may have to pay a penalty if You take a withdrawal before age 59 1⁄2. |
Principal Risks of Investing in the Contract | ||
| Risks Associated with Investment Options | • An investment in the Contract is subject to the risk of poor investment performance and can vary depending on the performance of the investment options available under the Contract (e.g., Portfolios).• Each investment option (including any Fixed Account investment option) will have its own unique risks.• You should review these investment options before making an investment decision. | Principal Risks of Investing in the Contract | ||
| Insurance Company Risks | Contracts are subject to the risks related to Metropolitan Life, including any obligations (including under any Fixed Account investment options), guarantees, and benefits of the Contract are subject to the claims-paying ability of the Metropolitan Life. If Metropolitan Life experiences financial distress, it may not be able to meet its obligations to you. More information about the Company, including its financial strength ratings, is available by visiting visiting https://www.metlife.com/about-us/corporate-profile/ratings/. | Principal Risks of Investing in the Contract | ||
| RESTRICTIONS | LOCATION
IN PROSPECTUS | |||
| Investment | Although we do not currently charge a fee for transfers of cash value among Divisions or between the Divisions and the Fixed Account, We reserve the right to impose a transfer fee of $10 after the first twelve transfers between Divisions. We reserve the right to add, remove or substitute Portfolios. The Company also has policies and procedures that attempt to detect and deter frequent transfers in situations where we determine there is a potential for arbitrage trading, and in those instances, there are additional limits that apply to transfers. | Transfers | ||
| TAXES | LOCATION
IN PROSPECTUS | |||
| Tax Implications | •
You should consult with a tax professional to determine the tax implications of an investment in and purchase payments received under the Contract. • There is no additional tax benefit if You purchase the Contract through a tax-qualified plan or individual retirement account (IRA).• Earnings on your Contract are taxed at ordinary income tax rates when You withdraw them, and You may have to pay a penalty if You take a withdrawal before age 59 1⁄2. |
Federal Tax Considerations | ||
| CONFLICTS OF INTEREST | LOCATION
IN PROSPECTUS | |||
| Investment Professional Compensation | Your investment professional may receive compensation for selling this Contract to You, both in the form of commissions and because MetLife may share the revenue it earns on this Contract with the professional’s firm. This conflict of interest may influence your investment professional to recommend this Contract over another investment. | Who Sells the Deferred Annuities and Income Annuities | ||
| Exchanges | Some investment professionals may have a financial incentive to offer you a new contract in place of the one you own. You should only exchange your Contract if You determine, after comparing the features, fees, and risks of both contracts, that it is better for you to purchase the new contract rather than continue to own your existing Contract. | Transfers/Exchanges | ||
| (1) | Accumulation (Pay-in) Phase |
| To help You accumulate assets, You can invest your premium payments in: |
| • | Portfolios (mutual funds), each of which has its own investment strategies, investment advisers, expense ratios, and returns; and |
| • | a Fixed Account option, which offers a guaranteed interest rate during a selected period. |
| (2) | Income (Pay-out) Phase |
| You can elect to annuitize your Contract and turn your Contract value into a stream of income payments (sometimes called annuity payments) from Metropolitan Life, at which time the accumulation phase of the Contract ends. These payments may continue for a fixed period of years, for your entire life, or for the longer of a fixed period or your life. The payments may also be fixed or variable. Variable payments will vary based on the performance of the investment options you select. | |
| Please note that if you annuitize, your investments will be converted to income payments and you may no longer be able to choose to withdraw money at will from your Contract. All benefits (including the standard death benefit) terminate upon annuitization. |
| Sales Load Imposed on Purchase Payments | None |
| Early
Withdrawal Charge(1) (as a percentage of each purchase payment funding the withdrawal during the pay-in phase) |
Up to 7% |
| Exchange Fee for Deferred Annuities | None |
| Surrender Fee for Deferred Annuities | None |
| Transfer Fee(2) | $25 |
| 1 | An Early Withdrawal Charge of up to 7% may apply if You withdraw purchase payments within seven years of when they were credited to your Deferred Annuity. The charge on purchase payments is calculated according to the following schedule: |
| During
Purchase Payment Year |
Percentage |
| 1 | 7% |
| 2 | 6% |
| 3 | 5% |
| 4 | 4% |
| 5 | 3% |
| 6 | 2% |
| 7 | 1% |
| Thereafter | 0% |
| There are times when the Early Withdrawal Charge does not apply to amounts that are withdrawn from a Deferred Annuity. For example, each Contract Year, You may take the greater of 10% (20% under certain Deferred Annuities) of your Account Value or your purchase payments made over seven years ago free of Early Withdrawal Charges. | |
| 2 | We reserve the right to limit transfers as described later in this Prospectus. We reserve the right to impose a transfer fee. The amount of this fee will be no greater than $25 per transfer. |
| Base
Contract Expense(1,2) (as a percentage of your average Account Value in the Separate Account) |
.96% |
| Account Reduction Loan Initiation Fee | $ 75(2) |
| Annual Account Reduction Loan Maintenance Fee (per loan outstanding) | $ 50(2) |
| Income Annuity Contract Fee | .95% |
| 1 | The Base Contract Fee includes .01% for the Annual Contract Fee. The Annual Contract Fee is $20 annually and is charged only against amounts in the Fixed Interest Account. The Annual Contract Fee may be waived under certain circumstances. |
| 2 | Pursuant to the terms of the Contract, our total Separate Account charge will not exceed .95% of your average balance in the Divisions for the Deferred Annuities or the amount of underlying Portfolio shares we have designated in the Divisions to generate your income payments for the Income Annuity. For purposes of presentation here, we estimated the allocation between general administrative expenses and the mortality and expense risk charge. |
| Minimum | Maximum | |
| (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | 0.27% | 0.96% |
| • | You bear the Minimum or Maximum Total Annual Portfolio Operating Expenses; |
| • | there is a maximum Separate Account charge of 0.95%; |
| • | the underlying Portfolio earns a 5% annual return; and |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you surrender your Contract at the end of the applicable time period | ||||
| Maximum | $8,910 | $9,910 | $12,560 | $21,990 |
| Minimum | $8,220 | $7,801 | $ 8,980 | $14,501 |
| • | You bear the Minimum or Maximum Total Annual Portfolio Operating Expenses; |
| • | there is a maximum Separate Account charge of 0.95%; |
| • | the underlying Portfolio earns a 5% annual return; and |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you surrender your Contract at the end of the applicable time period | ||||
| Maximum | $8,910 | $9,910 | $12,560 | $21,990 |
| Minimum | $8,220 | $7,801 | $ 8,980 | $14,501 |
| • | You bear the Minimum or Maximum Total Annual Portfolio Operating Expenses; |
| • | there is a maximum Separate Account charge of 0.95%; |
| • | the underlying Portfolio earns a 5% annual return; and |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you annuitize or do not surrender your Contract at the end of the applicable time period | ||||
| Maximum | $1,910 | $5,910 | $10,160 | $21,990 |
| Minimum | $1,220 | $3,801 | $ 6,580 | $14,501 |
| • | Your employer, association or other group contract holder limits the available Divisions. |
| • | We have restricted the available Divisions. |
| • | Some of the Divisions are not approved in your state. |
| • | Non-Qualified |
| • | Traditional IRA (Individual Retirement Annuities) |
| • | Roth IRAs (Roth Individual Retirement Annuities) |
| • | Unallocated Keogh |
| • | Allocated (your Account Value records are kept for You as an individual); or |
| • | Unallocated (Account Value records are kept for a plan or group as a whole). |
| • | The electronic purchase payment is received at your Administrative Office and accompanied by a properly completed electronic application record; and |
| • | Your money, application and other documentation are received in Good Order at your Administrative Office within five business days following the transmission of the electronic record. Generally, the electronic record is received at your Administrative Office the business day following its transmission by the sales representative (where applicable) or local office. |
| • | Federal tax laws; |
| • | Our right to limit the total of your purchase payments to $1,000,000. For the unallocated Keogh Deferred Annuity, we limit purchase payments to $5,000,000 per year. We may change the maximum by telling You in writing at least 90 days in advance; |
| • | Regulatory requirements. For example, if You reside in Washington or Oregon, we may be required to limit your ability to make purchase payments after You have held the Deferred Annuity for more than three years, if the Deferred Annuity was issued to You after You turn age 60; or after You turn age 63, if the Deferred Annuity was issued before You were age 61; |
| • | Retirement, for certain Deferred Annuities. You may no longer make purchase payments if You retire; |
| • | Leaving your job (for the unallocated Keogh Deferred Annuity); and |
| • | Receiving systematic termination payments (described later). |
| • | Step 1: First, we determine the change in investment performance (including any investment-related charge) for the underlying Portfolio from the previous trading day to the current trading day; |
| • | Step 2: Next, we subtract the daily equivalent of our insurance-related charge (general administrative expenses and mortality and expense risk charges) for each day since the last Accumulation Unit Value was calculated; and |
| • | Step 3: Finally, we multiply the previous Accumulation Unit Value by this result. |
| $500 | = | 50 Accumulation Units |
| $10 |
| • | The percentage or dollar amount of the transfer; |
| • | The Divisions (or Fixed Interest Account) from which You want the money to be transferred; |
| • | The Divisions (or Fixed Interest Account) to which You want the money to be transferred; and |
| • | Whether You intend to start, stop, modify or continue unchanged an automated investment strategy by making the transfer. |
| • | Use our forms; |
| • | Maintain a minimum Account Value (if the transfer is in connection with an automated investment strategy); or |
| • | Transfer a minimum amount if the transfer is in connection with the Allocator. |
| • | American Funds Global Small Capitalization Fund |
| • | American Funds Growth Fund |
| • | American Funds Growth-Income Fund |
| • | Baillie Gifford International Stock Portfolio |
| • | CBRE Global Real Estate Portfolio |
| • | Harris Oakmark International Portfolio |
| • | Invesco Global Equity Portfolio |
| • | Invesco Small Cap Growth Portfolio |
| • | Loomis Sayles Small Cap Core Portfolio |
| • | Loomis Sayles Small Cap Growth Portfolio |
| • | MetLife MSCI EAFE® Index Portfolio |
| • | MetLife Russell 2000® Index Portfolio |
| • | MFS® Research International Portfolio |
| • | Neuberger Berman Genesis Portfolio |
| • | T. Rowe Price Small Cap Growth Portfolio |
| • | Western Asset Management Strategic Bond Opportunities Portfolio |
| • | The percentage or dollar amount of the withdrawal; and |
| • | The Divisions (or Fixed Interest Account) from which You want the money to be withdrawn. |
| • | Insurance-related charge (or Separate Account charge), and |
| • | Investment-related charge. |
| During Purchase Payment Year | Percentage |
| 1 | 7% |
| 2 | 6% |
| 3 | 5% |
| 4 | 4% |
| 5 | 3% |
| 6 | 2% |
| 7 | 1% |
| 8 & Later | 0% |
| • | On transfers You make among the Divisions or to or from the Fixed Interest Account. |
| • | On withdrawals of purchase payments You made over seven years ago. |
| • | If You choose payments over one or more lifetimes or for a period of at least five years (without the right to accelerate the payments). |
| • | If You die during the pay-in phase. Your beneficiary will receive the full death benefit without deduction. |
| • | If your Contract permits and your spouse is substituted as the purchaser of the Deferred Annuity and continues the Contract, that portion of the Account Value that equals the “step up” portion of the death benefit. |
| • | If You withdraw the permitted free withdrawal each Contract Year. This total withdrawal may be taken in an unlimited number of partial withdrawals during that Contract Year. Each time You make a withdrawal, we calculate what percentage your withdrawal represents at that time. Only when the total of these percentages exceeds the specified percentage will You have to pay Early Withdrawal Charges. For the unallocated Keogh and other Deferred Annuities, generally You are allowed to take the “free withdrawal” on top of any other withdrawals which are otherwise exempt from the Early Withdrawal Charge. This is not true if your other withdrawals are in connection with a systematic termination or purchase payments made over seven years ago. |
| • | Unallocated Keogh Deferred Annuity, 20%. |
| • | Non-Qualified and IRA Deferred Annuities (depending on the Contract’s terms), either 10% of your Account Value or 10% of your Fixed Interest Account Value only. |
| • | If the withdrawal is required for You to avoid Federal income tax penalties or to satisfy Federal income tax rules or Department of Labor regulations that apply to your Deferred Annuity. This exception does not apply if You have a Non-Qualified or Roth IRA Deferred Annuity or if the withdrawal is to satisfy Section 72(t) requirements under the Code. |
| • | Except for the unallocated Keogh Deferred Annuity, if your Contract provides for this, and except in the state of Massachusetts, on your first withdrawal to which an Early Withdrawal Charge would otherwise apply, and either You or your spouse: |
| • | Has been a resident of certain nursing home facilities for a minimum of 90 consecutive days; or |
| • | Is diagnosed with a terminal illness and not expected to live more than a year. |
| • | Systematic Termination. For unallocated Keogh Deferred Annuities You may withdraw your total Account Value without an Early Withdrawal Charge when the Account Value is paid in annual installments based on the following percentages of your Account Value for that year’s withdrawal: |
| Contract Year* | Percentage |
| 1 | 20% |
| 2 | 25% |
| 3 | 33⅓% |
| 4 | 50% |
| 5 | remainder |
| * | Less that Contract Year’s withdrawals. |
| • | For the unallocated Keogh Deferred Annuity, if You are disabled and request a total withdrawal. Disability is defined in the Federal Social Security Act. If the unallocated Keogh Deferred Annuity is issued in connection with your retirement plan which is subject to the Employee Retirement Income Security Act of 1974 (“ERISA”) and if your plan document defines disability, your plan’s definition governs. |
| • | If You retire: |
| • | For the unallocated Keogh Deferred Annuity, if your plan defines retirement and You retire under that definition. If You are a “restricted” participant, according to the terms of the unallocated Keogh Deferred Annuity, You must have participated in the unallocated Keogh Deferred Annuity for the time stated in the Contract. |
| • | For certain Non-Qualified Deferred Annuities, if You retire from the employer and for certain others if You retire and receive retirement benefits from your employer’s qualified plan. |
| • | For certain IRA Deferred Annuities, if You retire from the employer. |
| • | If You leave your job: |
| • | For the unallocated Keogh Deferred Annuity, if You are a “restricted” participant, according to the terms of the unallocated Keogh Deferred Annuity, You must have participated in the unallocated Keogh Deferred Annuity for the time stated in the Contract. |
| • | For certain Non-Qualified Deferred Annuities, if You retire from your employer or, for certain others, if You leave your job and receive retirement benefits. |
| • | For certain IRA Deferred Annuities, if You leave your job with your employer. |
| • | For the unallocated Keogh Deferred Annuity, if your plan terminates and the Account Value is transferred into another annuity contract we issue. |
| • | For the unallocated Keogh Deferred Annuity, if You suffer from an unforeseen hardship. |
| • | For unallocated Keogh Deferred Annuity, if You make a direct transfer to another investment vehicle we have preapproved. If You are a “restricted” participant, according to the terms of the unallocated Keogh Deferred Annuity, You also must roll over your Account Value to a MetLife IRA within 120 days after You are eligible to receive a plan distribution. |
| • | If permitted in your state, for the unallocated Keogh Deferred Annuity, if you make a direct transfer to another funding option or annuity contract issued by us or one of our affiliates and we agree. |
| • | If You have transferred money which is not subject to a withdrawal charge (because You have satisfied contractual provisions for a withdrawal without the imposition of a contract withdrawal charge) from certain eligible MetLife contracts into the Deferred Annuity and the withdrawal is of these transferred amounts and we agree. Any purchase payments made after the transfer are subject to the usual Early Withdrawal Charge schedule. |
| • | Amounts transferred before January 1, 1996: |
| During Purchase Payment Year | Percentage |
| 1 | 5% |
| 2 | 4% |
| 3 | 3% |
| 4 | 2% |
| 5 | 1% |
| 6 and Beyond | 0% |
| • | Amounts transferred on or after January 1, 1996: |
| • | For certain Contracts which we issued at least two years before the date of transfer (except as noted below), we apply the withdrawal charge under your original Contract but not any of the original Contract's exceptions or reductions to the withdrawal charge percentage that do not apply to a Deferred Annuity. Or, if it will produce a lower charge, we use the following schedule to determine Early Withdrawal Charges for transferred amounts from your original Contract: |
| During Transfer Year | Percentage |
| 1 | 5% |
| 2 | 4% |
| 3 | 3% |
| 4 | 2% |
| 5 | 1% |
| 6 and Beyond | 0% |
| • | If we issued the other Contract less than two years before the date of the transfer or it has a separate withdrawal charge for each purchase payment, we treat your purchase payments under the other Contract as if they were made under the Deferred Annuity as of the date we received them under that Contract. |
| • | Alternatively, if provided for in your Deferred Annuity, we credit your purchase payments with the time You held them under your original Contract. |
| • | Payments guaranteed by us for the rest of your life (or for the rest of two lives); |
| • | Payments guaranteed by us for the rest of your life (or for the rest of two lives) or for a specified period; |
| • | A fixed dollar payment or a variable payment; or |
| • | A refund feature. |
| • | Non-Qualified |
| • | Unallocated Keogh |
| • | Roth IRAs |
| • | Traditional IRAs |
| • | Owner: the person or entity which has all rights under the Income Annuity including the right to direct who receives payment. |
| • | Annuitant: the person whose life is the measure for determining the duration and sometimes the dollar amount of payments. |
| • | Beneficiary: the person who receives continuing payments or a lump sum payment if the Owner dies. |
| • | The amount of income You need; |
| • | The amount You expect to receive from other sources; |
| • | The growth potential of other investments; and |
| • | How long You would like your income to last. |
| • | First, we determine the change in investment experience (which reflects the deduction for any investment-related charge) for the underlying Portfolio from the previous trading day to the current trading day; |
| • | Next, we subtract the daily equivalent of your insurance-related charge or Separate Account charge (general administrative expenses and mortality and expense risk charges) for each day since the last day the Annuity Unit Value was calculated; the resulting number is the net investment return; |
| • | Then, we multiply by an adjustment based on your AIR for each day since the last Annuity Unit Value was calculated; and |
| • | Finally, we multiply the previous Annuity Unit Value by this result. |
| • | The percentage of the income payment to be reallocated; |
| • | The Divisions from which You want the income payment to be reallocated; and |
| • | The Divisions or Fixed Income Option (and the percentages allocated to each) to which You want the income payment to be reallocated. |
| • | First, we update the income payment amount to be reallocated from the Division based upon the applicable Annuity Unit Value at the time of the reallocation; |
| • | Second, we use the AIR to calculate an updated annuity purchase rate based upon your age, if applicable, and expected future income payments at the time of the reallocation; |
| • | Third, we calculate another updated annuity purchase rate using our current annuity purchase rates for the Fixed Income Option on the date of your reallocation; and |
| • | Finally, we determine the adjusted payment amount by multiplying the updated income amount determined in the first step by the ratio of the annuity purchase rate determined in the second step divided by the annuity purchase rate determined in the third step. |
| • | Suppose You choose to reallocate 40% of your income payment supported by Division A to the Fixed Income Option and the recalculated income payment supported by Division A is $100. Assume that the updated annuity purchase rate based on the AIR is $125, while the updated annuity purchase rate based on fixed income |
| annuity pricing is $100. In that case, your income payment from the Fixed Income Option will be increased by $40 x ($125 ÷ $100) or $50, and your income payment supported by Division A will be decreased by $40. (The number of Annuity Units in Division A will be decreased as well.) | |
| • | Suppose You choose to reallocate 40% of your income payment supported by Division A to Division B and the recalculated income payment supported by Division A is $100. Then, your income payment supported by Division B will be increased by $40 and your income payment supported by Division A will be decreased by $40. (Changes will be made to the number of Annuity Units in both Divisions as well.) |
| Name of Benefit | Purpose | Is Benefit Standard or Optional? | Maximum Fee | Brief Description of Restrictions/Limitations |
| Basic Death Benefit | The Contract’s Death Proceeds at any time are the greater of: (1) the sum of all purchase payments adjusted for any premium tax, outstanding loan amount, and prior surrenders; or (2) the current Contract Value of the Participant’s Individual Account. | Standard | None | • Withdrawals or loans could significantly reduce the benefit. |
| The Equity Generator® | An amount equal to the interest earned in the Fixed Interest Account is transferred monthly to any one Division based on your selection. | Standard | None | • Benefit limits available investment options.• If your Fixed Interest Account Balance at the time of a scheduled transfer is zero, this strategy is automatically discontinued. |
| The Equalizer | Each quarter, amounts are transferred between the Fixed Interest Account and your chosen Division to make the value of each equal. | Standard | • Not available to all Deferred Annuities | |
| The Rebalancer® | You select a specific asset allocation for your entire Account Balance from among | Standard | None | •
Benefit limits available investment options. |
| Name of Benefit | Purpose | Is Benefit Standard or Optional? | Maximum Fee | Brief Description of Restrictions/Limitations |
| the Divisions and the Fixed Interest Account, if available. Each quarter we transfer amounts among these options to bring the percentage of your Account Balance in each option back to your original allocation. | • In the future, we may permit You to allocate less than 100% of your Account Balance to this strategy. | |||
| The Index Selector® | You may select one of five asset allocation models which are designed to correlate to various risk tolerance levels. Each quarter the percentage in each of the Divisions in which the model invests and any Fixed Interest Account is brought back to the selected model percentage by transferring amounts among the Divisions and any Fixed Interest Account. | Standard | None | • Benefit limits available investment options.• The Index Selector is not available with the Optional Lifetime Withdrawal Guarantee. |
| Systematic Withdrawal Program. | Before the Maturity Date, You can arrange to have money sent to You at set intervals throughout the year. | Optional | None | • Any applicable income and penalty taxes will apply on amounts withdrawn. Withdrawals in excess of the annual free withdrawal allowance may be subject to a withdrawal charge.• To elect systematic withdrawals You must have a Contract Value of at least $5,000 |
| • | Your Account Value; |
| • | Your highest Account Value as of December 31 following the end of your fifth Contract Year and at the end of every other five year period. In any case, less any later partial withdrawals, fees and charges; or |
| • | The total of all of your purchase payments less any partial withdrawals (including any applicable Early Withdrawal Charge). |
| • | On a day when the Accumulation Unit Value/Annuity Unit Value is not calculated, or |
| • | After the close of the Exchange. |
| • | Account Value |
| • | Unit Values |
| • | Current rates for the Fixed Interest Account |
| • | Transfers |
| • | Changes to investment strategies |
| • | Changes in the allocation of future purchase payments. |
| • | any inaccuracy, error, or delay in or omission of any information You transmit or deliver to us; or |
| • | any loss or damage You may incur because of such inaccuracy, error, delay or omission; non-performance; or any interruption of information beyond our control. |
| • | rules of the SEC so permit (trading on the Exchange is limited, the Exchange is closed other than for customary weekend or holiday closings or an emergency exists which makes pricing or sale of securities not practicable); or |
| • | during any other period when the SEC by order so permits. |
| • | To operate the Separate Account in any form permitted by law. |
| • | To take any action necessary to comply with or obtain and continue any exemptions under the law (including favorable treatment under the Federal income tax laws) including limiting the number, frequency or types of transfers/reallocations transactions permitted. |
| • | To transfer any assets in a Division to another Division, or to one or more separate accounts, or to our general account, or to add, combine or remove Divisions in the Separate Account. |
| • | To substitute for the Portfolio shares in any Division, the shares of another class of Brighthouse Trust I, Brighthouse Trust II or the shares of another investment company or any other investment permitted by law. |
| • | To change the way we assess charges, but without increasing the aggregate amount charged to the Separate Account and any currently available Portfolio in connection with the Deferred Annuities or Income Annuities. |
| • | To make any necessary technical changes in the Deferred Annuities or Income Annuities in order to conform with any of the above-described actions. |
| • | The shares for which voting instructions are received; and |
| • | The shares that are voted in proportion to such voting instructions. |
| • | (1) the plan’s trust is organized under the laws of Puerto Rico, or has a Puerto Rico resident trustee and uses such trustee as paying agent; and |
| • | (2) 10% of all plan’s trust assets (calculated based on the average balance of the investments of the trust) attributable to participants which are Puerto Rico residents must be invested in “property located in Puerto Rico” for a three-year period. |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| Global Equity | American
Funds Global Small Capitalization Fund* - Class 2 Capital Research and Management CompanySM |
0.90% | 6.74% | 12.51% | 15.45% |
| US Equity | American
Funds Growth Fund - Class 2 Capital Research and Management CompanySM |
0.60% | 21.97% | 19.71% | 25.43% |
| US Equity | American
Funds Growth-Income Fund - Class 2 Capital Research and Management CompanySM |
0.54% | 24.10% | 15.42% | 16.39% |
| International Equity | Baillie
Gifford International Stock Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Baillie Gifford Overseas Limited |
0.71% | -0.76% | 13.35% | 9.97% |
| US Fixed Income | BlackRock
Bond Income Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: BlackRock Advisors, LLC |
0.37% | -0.43% | 4.26% | 3.86% |
| US Equity | BlackRock
Capital Appreciation Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: BlackRock Advisors, LLC |
0.62% | 21.20% | 25.45% | 18.64% |
| Allocation | Brighthouse
Asset Allocation 100 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.72% | 18.34% | 14.91% | 13.15% |
| Allocation | Brighthouse
Asset Allocation 20 Portfolio* - Class A Brighthouse Investment Advisers, LLC |
0.60% | 4.01% | 6.00% | 5.30% |
| Allocation | Brighthouse
Asset Allocation 40 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.60% | 7.68% | 8.12% | 7.37% |
| Allocation | Brighthouse
Asset Allocation 60 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.63% | 11.17% | 10.45% | 9.47% |
| Allocation | Brighthouse
Asset Allocation 80 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.67% | 14.87% | 12.89% | 11.54% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Equity | Brighthouse/Artisan
Mid Cap Value Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Artisan Partners Limited Partnership |
0.75% | 26.91% | 10.32% | 11.00% |
| US Fixed Income | Brighthouse/Franklin
Low Duration Total Return Portfolio* - Class B Brighthouse Investment Advisers, LLC Subadviser: Franklin Advisers, Inc. |
0.72% | 0.28% | 1.75% | 1.78% |
| Allocation | Brighthouse/Wellington
Balanced Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.51% | 14.02% | 12.84% | 11.64% |
| US Equity | Brighthouse/Wellington
Core Equity Opportunities Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.60% | 24.43% | 16.62% | 14.75% |
| US Equity | Brighthouse/Wellington
Large Cap Research Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.53% | 24.38% | 18.14% | 16.33% |
| Sector | CBRE
Global Real Estate Portfolio - Class A (formerly known as Clarion Global Real Estate Portfolio - Class A) Brighthouse Investment Advisers, LLC Subadviser: CBRE Investment Management Listed Real Assets LLC |
0.62% | 34.70% | 10.29% | 9.28% |
| US Equity | Frontier
Mid Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Frontier Capital Management Company, LLC |
0.70% | 14.68% | 18.90% | 15.49% |
| International Equity | Harris
Oakmark International Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Harris Associates L.P. |
0.76% | 8.66% | 7.35% | 9.00% |
| Global Equity | Invesco
Global Equity Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Invesco Advisers, Inc. |
0.57% | 15.76% | 18.44% | 14.46% |
| US Equity | Invesco
Small Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Invesco Advisers, Inc. |
0.80% | 7.12% | 19.19% | 16.92% |
| US Equity | Jennison
Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Jennison Associates LLC |
0.53% | 17.17% | 27.45% | 20.50% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Equity | Loomis
Sayles Growth Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.56% | 18.66% | 16.59% | 15.99% |
| US Equity | Loomis
Sayles Small Cap Core Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.87% | 21.95% | 11.95% | 13.23% |
| US Equity | Loomis
Sayles Small Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.86% | 10.00% | 19.09% | 15.79% |
| US Fixed Income | MetLife
Aggregate Bond Index Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.27% | -1.93% | 3.32% | 2.64% |
| US Equity | MetLife
Mid Cap Stock Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.29% | 24.40% | 12.81% | 13.93% |
| International Equity | MetLife
MSCI EAFE® Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.38% | 10.72% | 9.38% | 7.84% |
| US Equity | MetLife
Russell 2000® Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.30% | 14.52% | 11.93% | 13.20% |
| US Equity | MetLife
Stock Index Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.26% | 28.36% | 18.18% | 16.26% |
| International Equity | MFS
® Research International Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.64% | 11.98% | 12.58% | 8.72% |
| Allocation | MFS
® Total Return Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.59% | 14.22% | 9.89% | 9.68% |
| US Equity | MFS
® Value Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.57% | 25.54% | 12.51% | 13.70% |
| US Equity | Morgan
Stanley Discovery Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Morgan Stanley Investment Management Inc. |
0.62% | -10.54% | 37.65% | 20.90% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Equity | Neuberger
Berman Genesis Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Neuberger Berman Investment Advisers LLC |
0.78% | 18.41% | 15.71% | 14.21% |
| US Fixed Income | PIMCO
Total Return Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Pacific Investment Management Company LLC |
0.47% | -1.13% | 4.15% | 3.58% |
| US Equity | T.
Rowe Price Large Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.57% | 20.22% | 23.39% | 19.26% |
| US Equity | T.
Rowe Price Mid Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.70% | 15.15% | 18.19% | 16.57% |
| US Equity | T.
Rowe Price Small Cap Growth Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.49% | 11.67% | 16.25% | 15.90% |
| US Equity | Victory
Sycamore Mid Cap Value Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Victory Capital Management Inc. |
0.59% | 32.13% | 12.75% | 12.26% |
| US Fixed Income | Western
Asset Management Strategic Bond Opportunities Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Western Asset Management Company LLC |
0.54% | 2.82% | 5.55% | 5.21% |
| US Fixed Income | Western
Asset Management U.S. Government Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Western Asset Management Company LLC |
0.48% | -1.52% | 2.49% | 1.97% |
| * | The Portfolio is subject to an expense reimbursement or fee waiver arrangement. The annual expenses shown reflect temporary fee reductions. |
| Qualified
Deferred and Income Annuities |
Non-Qualified
Deferred Annuities and Income Annuities |
|||
| California (1) | 0.5% | 2.35% | ||
| Colorado | 0.00% | 2.00% | ||
| Florida (2) | 1.0% | 1.0% | ||
| Maine (3) | 0.0% | 2.0% | ||
| Nevada (4) | 0.0% | 3.5% | ||
| Puerto Rico(5) | 1.0% | 1.0% | ||
| South Dakota(6) | 0.0% | 1.25% | ||
| Wyoming (4) | 0.0% | 1.0% |
| 1 | California applies the qualified tax rate to plans that qualify under the following Code Sections: 401(a), 403(b), 404, 408(b), and 501(a). |
| 2 | Annuity purchase payments are exempt from taxation provided the tax savings are passed back to the Contract Owners. Otherwise, they are taxable at 1%. |
| 3 | Maine applies the qualified tax rate to plans that qualify under the following Code Sections: 401, 403, 403(b), 404, 408, 457 and 501. |
| 4 | Nevada and Wyoming apply the qualified tax rate to plans that qualify under the following Code Sections: 401, 403, 404, 408, 457 and 501. |
| 5 | We will not deduct premium taxes paid by us to Puerto Rico from purchase payments, Account Value, withdrawals, death benefits or income payments. |
| 6 | Special rate applies for large case annuity policies. Rate is 0.08% for that portion of the annuity considerations received on a Contract exceeding $500,000 annually. Special rate on large case policies is not subject to retaliation. South Dakota applies the qualified tax rate to plans that qualify under the following Code Sections: 401, 403(b), 404, 408, 457, and 501(a). |
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| FEES AND EXPENSES | LOCATION
IN PROSPECTUS | |||
| Charges for Early Withdrawal | If
you withdraw money from the Contract within 8 years following your last purchase payment, you will be assessed a Withdrawal Charge of up to 7% of Contract Value withdrawn. For example, if you purchase the Contract for $100,000 and surrender your Contract during the first year, You will pay a Withdrawal Charge of up to $7,000. |
Fees | ||
| Transaction Charges | In
addition to surrender charges, you also may be charged for other transactions such as charges for transferring cash value between Divisions and a premium tax charge. Loans will be charged an initial set-up fee and a loan maintenance fee. The Account Reduction Loan Initiation Fee is $75.00. The Account Reduction Loan Maintenance Fee is $50.00. |
Fees | ||
| Ongoing Fees and Expenses (annual charges) | The table below describes the fees and expenses that you may pay each year, depending on the options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. | |||
| Annual Fee | Minimum | Maximum | ||
|
Base Contract |
0.95%(1) |
0.95% (1) | ||
|
Investment options (Portfolio fees and expenses) |
0.27%(2) |
1.03% (2) | ||
|
(1) As a percentage of your Account Balance in the Separate Account. (2) As a percentage of average daily net assets of the Portfolio. | ||||
| Because your Contract is customizable, the choices you make affect how much you will pay. To help understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. This estimate assumes that you do not take withdrawals from the Contract, which could add contingent deferred sales charges that substantially increase costs. | Fees | |||
| Lowest Annual Cost: | Highest Annual Cost: | |||
| $1,164 | $1,821 | |||
| •
Assumes: • Investment of $100,000• 5% annual appreciation• Least expensive combination of Portfolio fees and expenses• No optional benefits• No sales charges• No additional purchase payments, transfers or withdrawals |
• Assumes:• Investment of $100,000• 5% annual appreciation• Most expensive combination of Portfolio fees and expenses• No sales charges• No additional purchase payments, transfers or withdrawals | |||
| RISKS | LOCATION
IN PROSPECTUS | |||
| Risk of Loss | You can lose money by investing in the Contract, including loss of principal. | Principal Risks of Investing in the Contract | ||
| Not a Short-Term Investment | This
Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. • Withdrawal charges may apply for up to 7 years following each purchase payment. Withdrawal charges will reduce the value of your Contract if you withdraw money during that time.• The benefits of tax deferral and mean that the Contract is more beneficial to investors with a long time horizon.• Earnings on your Contract are taxed at ordinary income tax rates when You withdraw them, and You may have to pay a penalty if You take a withdrawal before age 59 1⁄2. |
Principal Risks of Investing in the Contract | ||
| Risks Associated with Investment Options | • An investment in the Contract is subject to the risk of poor investment performance and can vary depending on the performance of the investment options available under the Contract (e.g., Portfolios).• Each investment option (including any Fixed Account investment option) will have its own unique risks.• You should review these investment options before making an investment decision. | Principal Risks of Investing in the Contract | ||
| Insurance Company Risks | Contracts are subject to the risks related to Metropolitan Life including any obligations (including under any Fixed Account investment option), guarantees, and benefits of the Contract, which are subject to the claims-paying ability of the Company. If Metropolitan Life experiences financial distress, it may not be able to meet its obligations to you. More information about the Company, including its financial strength ratings, is available by visiting https://www.metlife.com/about-us/corporate-profile/ratings/. | Principal Risks of Investing in the Contract | ||
| RESTRICTIONS | LOCATION
IN PROSPECTUS | |||
| Investments | Although
we do not currently charge a fee for transfers of cash value among Divisions or between the Divisions and the Fixed Account, we reserve the right to impose a transfer fee of $10 after the first 12 transfers between Divisions. We reserve the right to add, remove or substitute Portfolios. The Company also has policies and procedures that attempt to detect and deter frequent transfers in situations where we determine there is a potential for arbitrage trading, and in those instances, there are additional limits that apply to transfers. |
Charges
- Transfer Fee Restrictions on Transfers | ||
| TAXES | LOCATION
IN PROSPECTUS | |||
| Tax Implications | •
You should consult with a tax professional to determine the tax implications of an investment in and purchase payments received under the Contract. • There is no additional tax benefit if You purchase the Contract through a tax-qualified plan or individual retirement account (IRA).• Earnings on your Contract are taxed at ordinary income tax rates when You withdraw them, and You may have to pay a penalty if You take a withdrawal before age 59 1⁄2. |
Federal Tax Considerations | ||
| CONFLICTS OF INTEREST | LOCATION
IN PROSPECTUS | |||
| Investment Professional Compensation | Your investment professional may receive compensation for selling this Contract to You, both in the form of commissions and because MetLife may share the revenue it earns on this Contract with the professional’s firm. This conflict of interest may influence your investment professional to recommend this Contract over another investment. | Who Sells the Deferred Annuities and Income Annuities | ||
| Exchanges | Some investment professionals may have a financial incentive to offer you a new contract in place of the one you own. You should only exchange your Contract if You determine, after comparing the features, fees, and risks of both contracts, that it is better for you to purchase the new contract rather than continue to own your existing Contract. | Exchanges/ Transfers | ||
| (1) | Accumulation (Pay-in) Phase |
| • | Portfolios (mutual funds), each of which has its own investment strategies, investment advisers, expense ratios, and returns; and |
| • | a Fixed Account option, which offers a guaranteed interest rate during a selected period. |
| (2) | Income (Pay-out) Phase |
| Sales Load Imposed on Purchases | None |
| Withdrawal
Charge (as a percentage of each purchase payment funding the withdrawal during the pay-in phase)(1) |
7% |
| Exchange Fee for Deferred Annuities | None |
| Surrender Fee for Deferred Annuities | None |
| Account Reduction Loan Initiation Fee(2) | $ 75 |
| Transfer Fee(3) | $ 25 |
| 1 | An Early Withdrawal Charge of up to 7% may apply if You withdraw purchase payments within seven years of when they were credited to your Deferred Annuity. The charge on purchase payments is calculated according to the following schedule: |
| If withdrawn during purchase payment year | Percentage |
| 1 | 7% |
| 2 | 6% |
| 3 | 5% |
| 4 | 4% |
| 5 | 3% |
| 6 | 2% |
| 7 | 1% |
| Thereafter | 0% |
| There are times when the Early Withdrawal Charge does not apply to amounts that are withdrawn from a Deferred Annuity. For example, each Contract Year You may take the greater of 20% (10% for certain Enhanced Deferred Annuities) of your Account Value or your purchase payments made over seven years ago free of Early Withdrawal Charges. There are no Early Withdrawal Charges applied to the Enhanced Non-Qualified Deferred Annuities for Section 457(f) deferred compensation plans, Section 451 deferred fee arrangements, Section 451 deferred compensation plans and Section 457(e)(11) severance and death benefit plans. | |
| 2 | This fee may be waived for certain groups. |
| 3 | Although we do not currently charge a fee for transfers, we reserve the right to impose a transfer fee of $25. We also reserve the right to limit transfers. |
| Base
Contract Expenses(1)(2) (as a percentage of your average Account Balance in the Separate Account) |
.98% |
| Annual Account Reduction Loan Maintenance Fee (per loan outstanding)(3) | $50 |
| 1 | The Base Contract Fee includes .03% for the Annual Contract Fee. The Annual Contract Fee is $20 annually and is charged only against amounts in the Fixed Interest Account. The Annual Contract Fee may be waived under certain circumstances. |
| 2 | Pursuant to the terms of the Contract, our total Separate Account charge will not exceed .95% of your average balance in the Divisions. For purposes of presentation here, we estimated the allocation between general administrative expenses and the mortality and expense risk charge for Deferred Annuities or the amount of underlying Portfolio shares we have designated in the Investment Divisions to generate your income payments for Income Annuities. |
| 3 | This fee may be waived for certain groups. The loan maintenance fee is paid on a quarterly basis at the end of each quarter on a pro-rata basis from the Divisions and the Fixed Interest Account in which You then have a balance. |
| Minimum | Maximum | |
| Annual
Portfolio Expenses (expenses that are deducted from Portfolio Company assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) |
0.27% | 1.03% |
| • | Your Deferred Annuity permits You to withdraw 10% of your Account Value free from Early Withdrawal Charges each Contract Year; |
| • | You bear the Minimum or Maximum Total Annual Portfolio Operating Expenses (without reimbursement and/or waiver of expenses); |
| • | the underlying Portfolio earns a 5% annual return. |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you surrender your Contract at the end of the applicable time period | ||||
| Maximum | $8,980 | $10,122 | $12,918 | $22,722 |
| Minimum | $8,220 | $ 7,801 | $ 8,980 | $14,501 |
| • | Your Deferred Annuity permits You to withdraw 20% of your Account Value free from Early Withdrawal Charges each Contract Year; |
| • | You bear the Minimum or Maximum Total Annual Portfolio Operating Expenses (without reimbursement and/or waiver of expenses); |
| • | the underlying Portfolio earns a 5% annual return. |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you surrender your Contract at the end of the applicable time period | ||||
| Maximum | $8,980 | $10,122 | $12,918 | $22,722 |
| Minimum | $8,220 | $ 7,801 | $ 8,980 | $14,501 |
| • | You bear the Minimum or Maximum Total Annual Portfolio Operating Expenses (without reimbursement and/or waiver of expenses); |
| • | the underlying Portfolio earns a 5% annual return. |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you annuitize or do not surrender your Contract at the end of the applicable time period | ||||
| Maximum | $1,980 | $6,122 | $10,518 | $22,722 |
| Minimum | $1,220 | $3,801 | $ 6,580 | $14,501 |
| • | Your employer, association or other group contract holder limits the available Divisions. |
| • | We have restricted the available Divisions. |
| • | Some of the Divisions are not approved in your state. |
| • | TSA (Tax Sheltered Annuity) |
| • | 403(a)(Qualified annuity plans under Section 403(a)) |
| • | PEDC (Public Employee Deferred Compensation) |
| • | Traditional IRA (Individual Retirement Annuities) |
| • | Non-Qualified (for certain deferred arrangements and plans) |
| • | Allocated (your Account Value records are kept for You as an individual); or |
| • | Unallocated (Account Value records are kept for a plan or group as a whole). |
| • | Federal tax laws; |
| • | Our right to limit the total of your purchase payments to $1,000,000. We may change the maximum by telling You in writing at least 90 days in advance; |
| • | Regulatory requirements. For example, if You reside in Washington or Oregon, we may be required to limit your ability to make purchase payments after You have held the Deferred Annuity for more than three years, if the Deferred Annuity was issued to You after You turn age 60; or after You turn age 63, if the Deferred Annuity was issued before You were age 61 (except under the Enhanced PEDC Deferred Annuity); |
| • | Retirement, for certain Deferred Annuities. You may no longer make purchase payments if You retire; |
| • | Leaving your job (for TSA and 403(a) Deferred Annuities); |
| • | A withdrawal based on your leaving your job; |
| • | Receiving systematic termination payments (described later) from both the Separate Account and the Fixed Interest Account.; and |
| • | Participation in the Systematic Withdrawal Program (as described later). |
| • | First, we determine the change in investment performance (including any investment-related charge) for the underlying Portfolio from the previous trading day to the current trading day; |
| • | Next, we subtract the daily equivalent of our insurance-related charge (general administrative expenses and mortality and expense risk charges) for each day since the last Accumulation Unit Value was calculated; and |
| • | Finally, we multiply the previous Accumulation Unit Value by this result. |
| $500 | = | 50 Accumulation Units |
| $10 |
| • | The percentage or dollar amount of the transfer; |
| • | The Divisions (or Fixed Interest Account) from which You want the money to be transferred; |
| • | The Divisions (or Fixed Interest Account) to which You want the money to be transferred; and |
| • | Whether You intend to start, stop, modify or continue unchanged an automated investment strategy by making the transfer. |
| • | Use our forms; or |
| • | Maintain a minimum Account Value (if the transfer is in connection with an automated investment strategy or if there is an outstanding loan from the Fixed Interest Account). |
| • | Transfer a minimum amount if the transfer is in connection with the Allocator. |
| • | American Funds Global Small Capitalization Fund |
| • | American Funds Growth Fund |
| • | American Funds Growth-Income Fund |
| • | American Funds The Bond Fund of America |
| • | Baillie Gifford International Stock Portfolio |
| • | CBRE Global Real Estate Portfolio |
| • | Harris Oakmark International Portfolio |
| • | Invesco Global Equity Portfolio |
| • | Invesco Small Cap Growth Portfolio |
| • | Loomis Sayles Global Allocation Portfolio |
| • | Loomis Sayles Small Cap Core Portfolio |
| • | Loomis Sayles Small Cap Growth Portfolio |
| • | MetLife MSCI EAFE® Index Portfolio |
| • | MetLife Russell 2000® Index Portfolio |
| • | MFS® Research International Portfolio |
| • | Neuberger Berman Genesis Portfolio |
| • | T. Rowe Price Small Cap Growth Portfolio |
| • | Western Asset Management Strategic Bond Opportunities Portfolio |
| • | The percentage or dollar amount of the withdrawal; and |
| • | The Divisions (or Fixed Interest Account) from which You want the money to be withdrawn. |
| • | TSA |
| • | 403(a) |
| • | PEDC |
| • | Traditional IRA |
| • | Non-Qualified (for certain deferred arrangements and plans) |
| • | Owner: the person or entity which has all rights under the Income Annuity including the right to direct who receives payment. |
| • | Annuitant: the person whose life is the measure for determining the duration and sometimes the dollar amount of payments. |
| • | Beneficiary: the person who receives continuing payments or a lump sum payment if the Owner dies. |
| • | The amount of income You need; |
| • | The amount You expect to receive from other sources; |
| • | The growth potential of other investments; and |
| • | How long You would like your income to last. |
| • | The percentage of the income payment to be reallocated; |
| • | The Divisions from which You want the income payment to be reallocated; and |
| • | The Divisions or Fixed Income Option (and the percentages allocated to each) to which You want the income payment to be reallocated. |
| • | First, we update the income payment amount to be reallocated from the Division based upon the applicable Annuity Unit Value at the time of the reallocation; |
| • | Second, we use the AIR to calculate an updated annuity purchase rate based upon your age, if applicable, and expected future income payments at the time of the reallocation; |
| • | Third, we calculate another updated annuity purchase rate using our current annuity purchase rates for the Fixed Income Option on the date of your reallocation; and |
| • | Finally, we determine the adjusted payment amount by multiplying the updated income amount determined in the first step by the ratio of the annuity purchase rate determined in the second step divided by the annuity purchase rate determined in the third step. |
| • | Suppose You choose to reallocate 40% of your income payment supported by Division A to the Fixed Income Option and the recalculated income payment supported by Division A is $100. Assume that the updated annuity purchase rate based on the AIR is $125, while the updated annuity purchase rate based on fixed income annuity pricing is $100. In that case, your income payment from the Fixed Income Option will be increased by $40 x ($125 x $100) or $50, and your income payment supported by Division A will be decreased by $40. (The number of Annuity Units in Division A will be decreased as well.) |
| • | Suppose You choose to reallocate 40% of your income payment supported by Division A to Division B and the recalculated income payment supported by Division A is $100. Then, your income payment supported by Division B will be increased by $40 and your income payment supported by Division A will be decreased by $40. (Changes will be made to the number of Annuity Units in both Divisions as well.) |
| • | American Funds Global Small Capitalization Fund |
| • | American Funds Growth Fund |
| • | American Funds Growth-Income Fund |
| • | American Funds The Bond Fund of America |
| • | Baillie Gifford International Stock Portfolio |
| • | CBRE Global Real Estate Portfolio |
| • | Harris Oakmark International Portfolio |
| • | Invesco Global Equity Portfolio |
| • | Invesco Small Cap Growth Portfolio |
| • | Loomis Sayles Global Allocation Portfolio |
| • | Loomis Sayles Small Cap Core Portfolio |
| • | Loomis Sayles Small Cap Growth Portfolio |
| • | MetLife MSCI EAFE® Index Portfolio |
| • | MetLife Russell 2000® Index Portfolio |
| • | MFS® Research International Portfolio |
| • | Neuberger Berman Genesis Portfolio |
| • | T. Rowe Price Small Cap Growth Portfolio |
| • | Western Asset Management Strategic Bond Opportunities Portfolio |
| Name of Benefit* | Purpose | Is Benefit Standard or Optional? | Maximum Fee | Brief Description of Restrictions/Limitations |
| Basic Death Benefit | The Contract’s Death Proceeds at any time are the greater of: (1) the sum of all purchase payments adjusted for any premium tax, outstanding loan amount, and prior surrenders; or (2) Your highest Account Value as of December 31 following the end of your fifth Contract Year and at the end of every other five year period. In any case, less any later partial withdrawals, fees and charges; or (3)The total of all of your purchase payments less any partial withdrawals (including any applicable Early Withdrawal Charge). | Standard | None | • Withdrawals or loans could significantly reduce the benefit. |
| The Equity Generator® | An amount equal to the interest earned in the Fixed Interest Account is transferred monthly to any one Division based on your selection. | Standard | None | •
Benefit limits available investment options. • If your Fixed Interest Account Balance at the time of a scheduled transfer is zero, this strategy is automatically discontinued. |
| The EqualizerSM | Each quarter, amounts are transferred between the Fixed Interest Account and your chosen Division to make the value of each equal. | Standard | None | • Benefit limits available investment options. |
| Name of Benefit* | Purpose | Is Benefit Standard or Optional? | Maximum Fee | Brief Description of Restrictions/Limitations |
| The Rebalancer® | You select a specific asset allocation for your entire Account Balance from among the Divisions and the Fixed Interest Account, if available. Each quarter we transfer amounts among these options to bring the percentage of your Account Balance in each option back to your original allocation. | Standard | None | • In the future, we may permit You to allocate less than 100% of your Account Balance to this strategy. |
| The Index Selector® | You may select one of five asset allocation models which are designed to correlate to various risk tolerance levels. Each quarter the percentage in each of the Divisions in which the model invests and any Fixed Interest Account is brought back to the selected model percentage by transferring amounts among the Divisions and any Fixed Interest Account. | Standard | None | • Benefit limits available investment options. |
| The AllocatorSM | Transfers a dollar amount of your choice from the Fixed Interest Account to any of the Divisions you choose on a monthly basis. | Standard | None | •
Benefit limits available investment options. • Minimum periodic transfer of $50 is required. • Once your Fixed Interest Account Balance is exhausted, the strategy is discontinued. |
| Name of Benefit* | Purpose | Is Benefit Standard or Optional? | Maximum Fee | Brief Description of Restrictions/Limitations |
| Systematic Withdrawal Program | Before the Maturity Date, You can arrange to have money sent to You at set intervals throughout the year. | Standard | None | •
Any applicable income and penalty taxes will apply on amounts withdrawn. Withdrawals in excess of the annual free withdrawal allowance may be subject to a withdrawal charge. • To elect systematic withdrawals You must have a Contract Value of at least $5,000 |
| * | If your annuity was issued in connection with an employer plan, you should check with your employer regarding the availability of riders. |
| • | Enhanced TSA |
| • | Enhanced Non-Qualified |
| • | Enhanced 403(a) |
| • | Enhanced Traditional IRA |
| • | Non-Qualified Deferred Annuity for |
| • | Section 457(f) deferred compensation plan |
| • | Section 451 deferred fee arrangements |
| • | Section 451 deferred compensation plans |
| • | Section 457(e)(11) severance and death benefit plans |
| • | Section 415(m) qualified governmental excess benefit arrangements |
| • | Your Account Value; |
| • | Your highest Account Value as of December 31 following the end of your fifth Contract Year and at the end of every other five year period. In any case, less any later partial withdrawals, fees and charges; or |
| • | The total of all of your purchase payments less any partial withdrawals (including any applicable Early Withdrawal Charge). |
| • | Insurance-related charge (or Separate Account charge), and |
| • | Investment-related charge. |
| During
Purchase Payment Year |
Percentage |
| 1 | 7% |
| 2 | 6% |
| 3 | 5% |
| 4 | 4% |
| 5 | 3% |
| 6 | 2% |
| 7 | 1% |
| 8 & Later | 0% |
| • | On transfers You make within your Deferred Annuity among Divisions and transfers to or from the Fixed Interest Account. |
| • | On withdrawals of purchase payments You made over seven years ago. |
| • | If You choose payments over one or more lifetimes or for a period of at least five years (without the right to accelerate the payments). |
| • | If You die during the pay-in phase. Your beneficiary will receive the full death benefit without deduction. |
| • | If your Contract permits and your spouse is substituted as the purchaser of the Deferred Annuity and continues the Contract, that portion of the Account Value that equals the “step up” portion of the death benefit. |
| • | If You withdraw up to 20% (10% for certain TSA Enhanced Deferred Annuities) of your Account Value each Contract Year. This 20% (or 10%) total withdrawal may be taken in an unlimited number of partial withdrawals during that Contract Year. Each time You make a withdrawal, we calculate what percentage your withdrawal represents at that time. Only when the total of these percentages exceeds 20% (or 10%) will You have to pay Early Withdrawal Charges. |
| • | If the withdrawal is required for You to avoid Federal income tax penalties or to satisfy Federal income tax rules or Department of Labor regulations that apply to your Deferred Annuity, for purposes of this exception, we will treat the Contract as if it were your only account subject to the minimum distribution rules. This exception does not apply if You have a Non-Qualified Deferred Annuity or if the withdrawal is to satisfy Section 72(t) requirements under the Code. |
| • | Systematic Termination. For all Deferred Annuities except certain TSA, Non-Qualified and IRA Enhanced Deferred Annuities, if the Contract is terminated, You may withdraw your total Account Value without an Early Withdrawal Charge when the Account Value is paid in annual installments based on the following percentages of your Account Value for that year’s withdrawal: |
| Contract Year* | Percentage |
| 1 | 20% |
| 2 | 25% |
| 3 | 33 % |
| 4 | 50% |
| 5 | remainder |
| * | Less that Contract Year’s withdrawals. |
| • | If You are disabled and request a total withdrawal. Disability is defined in the Federal Social Security Act. |
| • | If You retire: |
| • | For certain Enhanced TSA Deferred Annuities, if You have also participated for at least 10 consecutive years. This does not apply for withdrawals of money transferred into the Contract from other investment vehicles on a tax-free basis (plus earnings on such amounts). Participated for at least 10 consecutive years means that your Contract must have been in existence for 10 years prior to the requested withdrawal. |
| • | For the Non-Qualified and certain PEDC Deferred Annuities, if You retire. |
| • | For certain TSA, PEDC and 403(a) Enhanced Deferred Annuities, if You also have participated for at least 10 consecutive years unless You retire according to the definition of retirement stated in your plan. Participated for at least 10 consecutive years means that your Contract must have been in existence for 10 years prior to the requested withdrawal. |
| • | If your plan provides payment on account of hardship and You suffer from an unforeseen hardship. (Except for certain TSA, 403(a), Non-Qualified and IRA Enhanced Deferred Annuities.) For certain TSA Enhanced Deferred Annuities, You must only have suffered an unforeseen hardship. |
| • | If You leave your job with the employer that bought the Deferred Annuity. (Except for certain TSA, Non-Qualified and IRA Enhanced Deferred Annuities.) |
| • | If your plan terminates and the withdrawal is transferred into another annuity contract we issue. (Except for certain TSA, Non-Qualified and IRA Enhanced Deferred Annuities.) |
| • | If You make a direct transfer to other investment vehicles we have pre-approved. (Except for certain Non-Qualified and IRA Enhanced Deferred Annuities.) |
| • | If You withdraw money under a plan provision which we have pre-approved. (Except for certain TSA, Non-Qualified, PEDC and IRA Enhanced Deferred Annuities.) |
| • | If the plan or group of which You are a participant or member permits account reduction loans, You take an account reduction loan and the withdrawal consists of these account reduction loan amounts. |
| • | If You have transferred money which is not subject to a withdrawal charge (because You have satisfied contractual provisions for a withdrawal without the imposition of a Contract withdrawal charge) from certain eligible MetLife contracts into the Deferred Annuity and the withdrawal is of these transferred amounts and we agree. Any purchase payments made after the transfer are subject to the usual Early Withdrawal Charge schedule. |
| • | If permitted in your state, except for Non-Qualified and IRA Deferred Annuities, if You make a direct transfer to another funding option or annuity contract issued by us or one of our affiliates and we agree. |
| • | Amounts transferred before January 1, 1996. We credit your transfer amounts with the time You held them under your original Contract. Or, if it will produce a lower charge, we use the following schedule to determine Early Withdrawal Charges (determined as previously described) for transferred amounts from your original Contract: |
| During
Purchase Payment Year |
Percentage |
| 1 | 5% |
| 2 | 4% |
| 3 | 3% |
| 4 | 2% |
| 5 | 1% |
| 6 and Beyond | 0% |
| • | Amounts transferred on or after January 1996. For certain Contracts which we issued at least two years before the date of transfer (except as noted below), we apply the withdrawal charge under your original Contract but not any of the original contract’s exceptions or reductions to the withdrawal charge percentage that do not apply to a Deferred Annuity. Or, if it will produce a lower charge, we use the following schedule to determine Early Withdrawal Charges for transferred amounts from your original Contract: |
| During
Transfer Year |
Percentage |
| 1 | 5% |
| 2 | 4% |
| During
Transfer Year |
Percentage |
| 3 | 3% |
| 4 | 2% |
| 5 | 1% |
| 6 and Beyond | 0% |
| • | If we issued the other Contract less than two years before the date of the transfer or it has a separate withdrawal charge for each purchase payment, we treat your purchase payments under the other Contract as if they were made under the Deferred Annuity as of the date we received them under that Contract. |
| • | Alternatively, if provided for in your Deferred Annuity, we credit your purchase payments with the time You held them under your original Contract. |
| • | Payments guaranteed by us for the rest of your life (or for the rest of two lives); |
| • | Payments guaranteed by us for the rest of your life (or for the rest of two lives) or for a specified period; |
| • | A fixed dollar payment or a variable payment; or |
| • | A refund feature. |
| During
Contract Year |
Percentage |
| 1 | 5.6% |
| 2 | 5.0% |
| 3 | 4.5% |
| 4 | 4.0% |
| 5 | 3.0% |
| 6 | 2.0% |
| 7 | 1.0% |
| 8 and Beyond | 0% |
| • | On a day when the Accumulation Unit Value/Annuity Unit Value is not calculated, or |
| • | After the close of the Exchange. |
| • | Account Value |
| • | Unit Values |
| • | Current rates for the Fixed Interest Account |
| • | Transfers |
| • | Changes to investment strategies |
| • | Changes in the allocation of future purchase payments. |
| • | any inaccuracy, error, or delay in or omission of any information You transmit or deliver to us; or |
| • | any loss or damage You may incur because of such inaccuracy, error, delay or omission; non-performance; or any interruption of information beyond our control. |
| • | rules of the SEC so permit (trading on the Exchange is limited, the Exchange is closed other than for customary weekend or holiday closings or an emergency exists which makes pricing or sale of securities not practicable); or |
| • | during any other period when the SEC by order so permits. |
| • | To operate the Separate Account in any form permitted by law. |
| • | To take any action necessary to comply with or obtain and continue any exemptions under the law (including favorable treatment under the Federal income tax laws) including limiting the number, frequency or types of transfers/reallocations transactions permitted. |
| • | To transfer any assets in a Division to another Division, or to one or more separate accounts, or to our general account, or to add, combine or remove Divisions in the Separate Account. |
| • | To substitute for the Portfolio shares in any Division, the shares of another class of Brighthouse Trust I, Brighthouse Trust II or the shares of another investment company or any other investment permitted by law. |
| • | To change the way we assess charges, but without increasing the aggregate amount charged to the Separate Account and any currently available Portfolio in connection with the Deferred Annuities or Income Annuities. |
| • | To make any necessary technical changes in the Deferred Annuities or Income Annuities in order to conform with any of the above-described actions. |
| • | The shares for which voting instructions are received; and |
| • | The shares that are voted in proportion to such voting instructions. |
| • | (1) the plan’s trust is organized under the laws of Puerto Rico, or has a Puerto Rico resident trustee and uses such trustee as paying agent; and |
| • | (2) 10% of all plan’s trust assets (calculated based on the average balance of the investments of the trust) attributable to participants which are Puerto Rico residents must be invested in “property located in Puerto Rico” for a three-year period. |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| Global Equity | American
Funds Global Small Capitalization Fund* - Class 2 Capital Research and Management CompanySM |
0.90% | 6.74% | 12.51% | 15.45% |
| US Equity | American
Funds Growth Fund - Class 2 Capital Research and Management CompanySM |
0.60% | 21.97% | 19.71% | 25.43% |
| US Equity | American
Funds Growth-Income Fund - Class 2 Capital Research and Management CompanySM |
0.54% | 24.10% | 15.42% | 16.39% |
| US Fixed Income | American
Funds The Bond Fund of America* - Class 2 Capital Research and Management CompanySM |
0.45% | -0.31% | 3.27% | 4.25% |
| Allocation | American
Funds® Balanced Allocation Portfolio - Class C Brighthouse Investment Advisers, LLC |
0.97% | 12.14% | 11.61% | 10.22% |
| Allocation | American
Funds® Growth Allocation Portfolio - Class C Brighthouse Investment Advisers, LLC |
1.01% | 15.91% | 13.89% | 12.35% |
| Allocation | American
Funds® Moderate Allocation Portfolio - Class C Brighthouse Investment Advisers, LLC |
0.94% | 9.64% | 9.44% | 8.33% |
| International Equity | Baillie
Gifford International Stock Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Baillie Gifford Overseas Limited |
0.71% | -0.76% | 13.35% | 9.97% |
| US Fixed Income | BlackRock
Bond Income Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: BlackRock Advisors, LLC |
0.37% | -0.43% | 4.26% | 3.86% |
| US Equity | BlackRock
Capital Appreciation Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: BlackRock Advisors, LLC |
0.77% | 21.02% | 25.26% | 18.46% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| Allocation | Brighthouse
Asset Allocation 100 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.72% | 18.34% | 14.91% | 13.15% |
| Allocation | Brighthouse
Asset Allocation 20 Portfolio* - Class A Brighthouse Investment Advisers, LLC |
0.60% | 4.01% | 6.00% | 5.30% |
| Allocation | Brighthouse
Asset Allocation 40 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.60% | 7.68% | 8.12% | 7.37% |
| Allocation | Brighthouse
Asset Allocation 60 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.63% | 11.17% | 10.45% | 9.47% |
| Allocation | Brighthouse
Asset Allocation 80 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.67% | 14.87% | 12.89% | 11.54% |
| US Equity | Brighthouse/Artisan
Mid Cap Value Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Artisan Partners Limited Partnership |
0.75% | 26.91% | 10.32% | 11.00% |
| US Fixed Income | Brighthouse/Franklin
Low Duration Total Return Portfolio* - Class B Brighthouse Investment Advisers, LLC Subadviser: Franklin Advisers, Inc. |
0.72% | 0.28% | 1.75% | 1.78% |
| Allocation | Brighthouse/Wellington
Balanced Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.51% | 14.02% | 12.84% | 11.64% |
| US Equity | Brighthouse/Wellington
Core Equity Opportunities Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.60% | 24.43% | 16.62% | 14.75% |
| US Equity | Brighthouse/Wellington
Large Cap Research Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.53% | 24.38% | 18.14% | 16.33% |
| Allocation | Calvert
VP SRI Balanced Portfolio - Class I Calvert Research and Management |
0.63% | 15.12% | 12.49% | 10.48% |
| US Equity | Calvert
VP SRI Mid Cap Portfolio - X Calvert Research and Management |
0.96% | 15.03% | 12.59% | 11.89% |
| Sector | CBRE
Global Real Estate Portfolio - Class E (formerly known as Clarion Global Real Estate Portfolio - Class E) Brighthouse Investment Advisers, LLC Subadviser: CBRE Investment Management Listed Real Assets LLC |
0.77% | 34.56% | 10.14% | 9.12% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Equity | Equity-Income
Portfolio - Initial Class Fidelity Management & Research Company LLC Subadviser: FMR UK, FMR HK, FMR Japan |
0.51% | 24.89% | 11.95% | 12.53% |
| Allocation | Freedom
2020 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.75% | 9.26% | 10.41% | 8.98% |
| Allocation | Freedom
2025 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.78% | 10.55% | 11.24% | 9.97% |
| Allocation | Freedom
2030 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.82% | 12.07% | 12.48% | 10.81% |
| Allocation | Freedom
2035 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.87% | 15.18% | 13.98% | 11.97% |
| Allocation | Freedom
2040 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.90% | 17.50% | 14.72% | 12.39% |
| Allocation | Freedom
2045 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.90% | 17.53% | 14.72% | 12.49% |
| Allocation | Freedom
2050 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.90% | 17.51% | 14.72% | 12.55% |
| US Equity | Frontier
Mid Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Frontier Capital Management Company, LLC |
0.70% | 14.68% | 18.90% | 15.49% |
| US Equity | Growth
Portfolio - Initial Class Fidelity Management & Research Company LLC Subadviser: FMR UK, FMR HK, FMR Japan |
0.61% | 23.21% | 26.29% | 19.70% |
| International Equity | Harris
Oakmark International Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Harris Associates L.P. |
0.91% | 8.52% | 7.18% | 8.83% |
| Global Equity | Invesco
Global Equity Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Invesco Advisers, Inc. |
0.57% | 15.76% | 18.44% | 14.46% |
| US Equity | Invesco
Small Cap Growth Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Invesco Advisers, Inc. |
0.95% | 7.01% | 19.03% | 16.75% |
| US Fixed Income | Investment
Grade Bond Portfolio - Initial Class Fidelity Management & Research Company LLC Subadviser: FMR UK, FMR HK, FMR Japan |
0.39% | -0.61% | 4.33% | 3.54% |
| US Equity | Jennison
Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Jennison Associates LLC |
0.53% | 17.17% | 27.45% | 20.50% |
| Allocation | Loomis
Sayles Global Allocation Portfolio* - Class B Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
1.02% | 14.26% | 14.24% | 11.33% |
| US Equity | Loomis
Sayles Growth Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.56% | 18.66% | 16.59% | 15.99% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Equity | Loomis
Sayles Small Cap Core Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.87% | 21.95% | 11.95% | 13.23% |
| US Equity | Loomis
Sayles Small Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.86% | 10.00% | 19.09% | 15.79% |
| US Fixed Income | MetLife
Aggregate Bond Index Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.27% | -1.93% | 3.32% | 2.64% |
| US Equity | MetLife
Mid Cap Stock Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.29% | 24.40% | 12.81% | 13.93% |
| International Equity | MetLife
MSCI EAFE® Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.38% | 10.72% | 9.38% | 7.84% |
| US Equity | MetLife
Russell 2000® Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.30% | 14.52% | 11.93% | 13.20% |
| US Equity | MetLife
Stock Index Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.26% | 28.36% | 18.18% | 16.26% |
| International Equity | MFS
® Research International Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.64% | 11.98% | 12.58% | 8.72% |
| Allocation | MFS
® Total Return Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.59% | 14.22% | 9.89% | 9.68% |
| US Equity | MFS
® Value Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.72% | 25.40% | 12.34% | 13.53% |
| US Equity | Morgan
Stanley Discovery Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Morgan Stanley Investment Management Inc. |
0.62% | -10.54% | 37.65% | 20.90% |
| US Equity | Neuberger
Berman Genesis Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Neuberger Berman Investment Advisers LLC |
0.78% | 18.41% | 15.71% | 14.21% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Fixed Income | PIMCO
Inflation Protected Bond Portfolio - Class E Brighthouse Investment Advisers, LLC Subadviser: Pacific Investment Management Company LLC |
0.68% | 5.49% | 5.26% | 3.01% |
| US Fixed Income | PIMCO
Total Return Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Pacific Investment Management Company LLC |
0.47% | -1.13% | 4.15% | 3.58% |
| Allocation | SSGA
Growth and Income ETF Portfolio - Class E Brighthouse Investment Advisers, LLC Subadviser: SSGA Funds Management, Inc. |
0.66% | 13.52% | 10.15% | 8.59% |
| Allocation | SSGA
Growth ETF Portfolio - Class E Brighthouse Investment Advisers, LLC Subadviser: SSGA Funds Management, Inc. |
0.69% | 17.75% | 11.85% | 10.14% |
| US Equity | T.
Rowe Price Large Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.57% | 20.22% | 23.39% | 19.26% |
| US Equity | T.
Rowe Price Mid Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.70% | 15.15% | 18.19% | 16.57% |
| US Equity | T.
Rowe Price Small Cap Growth Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.49% | 11.67% | 16.25% | 15.90% |
| US Equity | Victory
Sycamore Mid Cap Value Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Victory Capital Management Inc. |
0.59% | 32.13% | 12.75% | 12.26% |
| US Fixed Income | Western
Asset Management Strategic Bond Opportunities Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Western Asset Management Company LLC |
0.54% | 2.82% | 5.55% | 5.21% |
| US Fixed Income | Western
Asset Management U.S. Government Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Western Asset Management Company LLC |
0.48% | -1.52% | 2.49% | 1.97% |
| * | The Portfolio is subject to an expense reimbursement or fee waiver arrangement. The annual expenses shown reflect temporary fee reductions. |
| Qualified
Deferred and Income Annuities |
Non-Qualified
Deferred Annuities and Income Annuities |
|||
| California (1) | 0.5% | 2.35% | ||
| Colorado | 0.0% | 2.0% | ||
| Florida (2) | 1.0% | 1.0% | ||
| Maine (3) | 0.0% | 2.0% | ||
| Nevada (4) | 0.0% | 3.5% | ||
| Puerto Rico(5) | 1.0% | 1.0% | ||
| South Dakota(6) | 0.0% | 1.25% | ||
| Wyoming (4) | 0.0% | 1.0% |
| 1 | California applies the qualified tax rate to plans that qualify under the following Code Sections: 401(a), 403(b), 404, 408(b), and 501(a). |
| 2 | Annuity purchase payments are exempt from taxation provided the tax savings are passed back to the Contract Owners. Otherwise, they are taxable at 1%. |
| 3 | Maine applies the qualified tax rate to plans that qualify under the following Code Sections: 401, 403, 403(b), 404, 408, 457 and 501. |
| 4 | Nevada and Wyoming apply the qualified tax rate to plans that qualify under the following Code Sections: 401, 403, 404, 408, 457 and 501. |
| 5 | We will not deduct premium taxes paid by us to Puerto Rico from purchase payments, Account Value, withdrawals, death benefits or income payments. |
| 6 | Special rate applies for large case annuity policies. Rate is 0.08% for that portion of the annuity considerations received on a Contract exceeding $500,000 annually. Special rate on large case policies is not subject to retaliation. South Dakota applies the qualified tax rate to plans that qualify under the following Code Sections: 401, 403(b), 404, 408, 457, and 501(a). |
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| FEES AND EXPENSES | LOCATION
IN PROSPECTUS | |||
| Charges Early Withdrawal | An
Early Withdrawal Charge of up to 7% may apply if You withdraw purchase payments from the Fixed Interest Account within seven years of when the Purchase Payments were allocated to the Fixed Interest Account in your Deferred Annuity. For example, if you make an early withdrawal, you could pay a surrender charge of up to $7,000 on a $100,000 investment. |
Charges
Appendix C | ||
| Transaction Charges | In
addition to surrender charges, you also may be charged for other transactions such as charges for transferring cash value between Divisions and a premium tax charge. Loans will be charged an initial set-up fee and a loan maintenance fee. The Account Reduction Loan Initiation Fee is $75.00. The Account Reduction Loan Maintenance Fee is $50.00. |
Fees | ||
| Ongoing Fees and Expenses (annual charges) | Minimum and Maximum Annual Fee Table. The table below describes the fees and expenses that you may pay each year, depending on the options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. | Fees | ||
| Annual Fee | Minimum | Maximum | ||
|
Base Contract |
0.95%(1) |
0.95% (1) | ||
|
Investment options (Portfolio fees and expenses) |
0.23%(2) |
1.03% (2) | ||
|
(1) As a percentage of your Account Balance in the Separate Account. (2) As a percentage of average daily net assets of the Portfolio. | ||||
| Because your Contract is customizable, the choices you make affect how much you will pay. To help understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. This estimate assumes that you do not take withdrawals from the Contract, which could add contingent deferred sales charges that substantially increase costs. | Fees | |||
| Lowest Annual Cost: | Highest Annual Cost: | |||
| $1,128 | $1,821 | |||
| •
Assumes: • Investment of $100,000• 5% annual appreciation• Least expensive combination of Portfolio fees and expenses• No optional benefits• No sales charges• No additional purchase payments, transfers or withdrawals |
• Assumes:• Investment of $100,000• 5% annual appreciation• Most expensive combination of Portfolio fees and expenses• No sales charges• No additional purchase payments, transfers or withdrawals | |||
| RISKS | LOCATION
IN PROSPECTUS | |||
| Risk of Loss | You can lose money by investing in the Contract, including loss of principal. | Principal Risks of Investing in the Contract | ||
| Not a Short- Term Investment | This
Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. • An Early Withdrawal Charge of up to 7% may apply if You withdraw purchase payments from the Fixed Interest Account within seven years of when the Purchase Payments were allocated to the Fixed Interest Account in your Deferred Annuity. Withdrawal charges will reduce the value of your Contract if you withdraw money during that time.• The benefits of tax deferral and mean that the Contract is more beneficial to investors with a long time horizon.• Earnings on your Contract are taxed at ordinary income tax rates when You withdraw them, and You may have to pay a penalty if You take a withdrawal before age 59 1⁄2. |
Principal Risks of Investing in the Contract | ||
| Risks Associated with Investment Options | • An investment in the Contract is subject to the risk of poor investment performance and can vary depending on the performance of the investment options available under the Contract (e.g., Portfolios).• Each investment option (including any Fixed Account investment option) will have its own unique risks.• You should review these investment options before making an investment decision. | Principal Risks of Investing in the Contract | ||
| Insurance Company Risks | Contracts are subject to the risks related to Metropolitan Life, including any obligations (including under any Fixed Account investment options), guarantees, and benefits of the Contract are subject to the claims-paying ability of the Metropolitan Life. If Metropolitan Life experiences financial distress, it may not be able to meet its obligations to you. More information about the Company, including its financial strength ratings, is available by visiting https://www.metlife.com/about-us/corporate-profile/ratings/. | Principal Risks of Investing in the Contract | ||
| RESTRICTIONS | LOCATION
IN PROSPECTUS | |||
| Investments | Although
we do not currently charge a fee for transfers of cash value among Divisions or between the Divisions and the Fixed Account, We reserve the right to impose a transfer fee of $25. We reserve the right to add, remove or substitute Portfolios. The Company also has policies and procedures that attempt to detect and deter frequent transfers in situations where we determine there is a potential for arbitrage additional limits that apply to transfers. |
Transfers | ||
| TAXES | LOCATION
IN PROSPECTUS | |||
| Tax Implications | •
You should consult with a tax professional to determine the tax implications of an investment in and purchase payments received under the Contract. • There is no additional tax benefit if You purchase the Contract through a tax-qualified plan or individual retirement account (IRA).• Earnings on your Contract are taxed at ordinary income tax rates when You withdraw them, and You may have to pay a penalty if You take a withdrawal before age 59 1⁄2. |
Federal Tax Considerations | ||
| CONFLICTS OF INTEREST | LOCATION
IN PROSPECTUS | |||
| Investment Professional Compensation | Your investment professional may receive compensation for selling this Contract to You, both in the form of commissions and because MetLife may share the revenue it earns on this Contract with the professional’s firm. This conflict of interest may influence your investment professional to recommend this Contract over another investment. | Certain Payments We Receive with Regard to the Portfolios | ||
| Exchanges | Some investment professionals may have a financial incentive to offer you a new contract in place of the one you own. You should only exchange your Contract if You determine, after comparing the features, fees, and risks of both contracts, that it is better for you to purchase the new contract rather than continue to own your existing Contract. | Transfers | ||
| 1) | Accumulation (Pay-in) Phase |
| • | Portfolios (mutual funds), each of which has its own investment strategies, investment advisers, expense ratios, and returns; and |
| • | a Fixed Account option, which offers a guaranteed interest rate during a selected period. |
| 2) | Income (Pay-out) Phase |
| Sales Load Imposed on Purchases | None |
| Withdrawal Charge(1) (as a percentage of each purchase payment funding the withdrawal from the Divisions of the Separate Account during the pay-in phase) | 7% |
| Exchange Fee for Deferred Annuities | None |
| Surrender Fee for Deferred Annuities | None |
| Account Reduction Loan Initiation Fee | $ 75(2) |
| Transfer Fee(3) | $25 |
| 1 | An Early Withdrawal Charge of up to 7% may be imposed on withdrawals made from assets allocated to the Fixed Interest Account. The Early Withdrawal Charges imposed depends on the Plan in which You participate. Please refer to Appendix D for more information and your Certificate for the surrender charges that would apply to you. No Early Withdrawal Charge is imposed on withdrawals from the Divisions of the Separate Account. |
| 2 | Either or both fees may be waived for certain groups. The loan maintenance fee is paid on a quarterly basis at the end of each quarter on a pro-rata basis from the Divisions and the Fixed Interest Account in which You then have a balance. |
| 3 | We reserve the right to limit transfers as described later in this Prospectus. We reserve the right to impose a transfer fee. The amount of this fee will be no greater than $25 per transfer. |
| Base
Contract Charge(3,4) (as a percentage of your average Account Value in the Separate Account) |
.98% |
| Annual Account Reduction Loan Maintenance Fee (per loan outstanding)(5) | $50 |
| 3 | The Base Contract Fee includes .03% for the Annual Contract Fee. The Annual Contract Fee is $20 annually and is charged only against amounts in the Fixed Interest Account. The Annual Contract Fee may be waived under certain circumstances. |
| 4 | Pursuant to the terms of the Contract, our total Separate Account charge will not exceed .95% of your average balance in the Divisions. For purposes of presentation here, we estimated the allocation between general administrative expenses and the mortality and expense risk charge for Deferred Annuities or the amount of underlying Portfolio shares we have designated in the Divisions to generate your income payments for Income Annuities. |
| 5 | The fee may be waived for certain groups. The loan maintenance fee is paid on a quarterly basis at the end of each quarter on a pro-rata basis from the Divisions and the Fixed Interest Account in which You then have a balance. |
| Minimum | Maximum | |
| (expenses that are deducted from Portfolio Company assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | 0.23% | 1.03% |
| • | You bear the Minimum or Maximum Total Annual Portfolio Operating Expenses (without reimbursement and/or waiver of expenses); |
| • | the underlying Portfolio earns a 5% annual return; |
| 1 Year | 3 Years | 5 Years | 10 Years | |
| If you annuitize or do not surrender your Contract at the end of the applicable time period | ||||
| Maximum | $1,980 | $6,122 | $10,518 | $22,722 |
| Minimum | $1,180 | $3,677 | $ 6,369 | $14,051 |
| • | TSA (Tax Sheltered Annuity) |
| • | 403(a)(Qualified annuity plans under Section 403(a)) |
| • | Non-Qualified (for certain deferred arrangements and plans) |
| • | Allocated (your Account Value records are kept for You as an individual); or |
| • | Unallocated (Account Value records are kept for a plan or group as a whole). |
| • | Your employer, association or other group contract holder limits the available Divisions. |
| • | We have restricted the available Divisions. |
| • | Some of the Divisions are not approved in your state. |
| • | Federal tax laws; |
| • | Our right to limit the total of your purchase payments to $1,000,000. We may change the maximum by telling You in writing at least 90 days in advance; |
| • | Regulatory requirements. For example, if You reside in Washington or Oregon, we may be required to limit your ability to make purchase payments after You have held the Deferred Annuity for more than three years, if the Deferred Annuity was issued to You after You turn age 60; or after You turn age 63, if the Deferred Annuity was issued before You were age 61 (except under the Enhanced PEDC Deferred Annuity); |
| • | Retirement, for certain Deferred Annuities. You may no longer make purchase payments if You retire; |
| • | Leaving your job (for TSA and 403(a) Deferred Annuities); |
| • | A withdrawal based on your leaving your job; |
| • | Receiving systematic termination payments (as described later) from both the Separate Account and the Fixed Interest Account; and |
| • | Participation in the Systematic Withdrawal Program (as described later) . |
| $500 | = | 50 Accumulation Units |
| $10 |
| • | The percentage or dollar amount of the transfer; |
| • | The Divisions (or Fixed Interest Account) from which You want the money to be transferred; |
| • | The Divisions (or Fixed Interest Account) to which You want the money to be transferred; and |
| • | Whether You intend to start, stop, modify or continue unchanged an automated investment strategy by making the transfer. |
| • | Use our forms; or |
| • | Maintain a minimum Account Value (if the transfer is in connection with an automated investment strategy or if there is an outstanding loan from the Fixed Interest Account). |
| • | American Funds Global Small Capitalization Fund |
| • | American Funds Growth Fund |
| • | American Funds Growth-Income Fund |
| • | American Funds The Bond Fund of America |
| • | Baillie Gifford International Stock Portfolio |
| • | CBRE Global Real Estate Portfolio |
| • | Harris Oakmark International Portfolio |
| • | Invesco Global Equity Portfolio |
| • | Invesco Small Cap Growth Portfolio |
| • | Loomis Sayles Global Allocation Portfolio |
| • | Loomis Sayles Small Cap Core Portfolio |
| • | Loomis Sayles Small Cap Growth Portfolio |
| • | MetLife MSCI EAFE® Index Portfolio |
| • | MetLife Russell 2000® Index Portfolio |
| • | MFS® Research International Portfolio |
| • | Neuberger Berman Genesis Portfolio |
| • | T. Rowe Price Small Cap Growth Portfolio |
| • | Western Asset Management Strategic Bond Opportunities Portfolio |
| • | The percentage or dollar amount of the withdrawal; and |
| • | The Divisions (or Fixed Interest Account) from which You want the money to be withdrawn. |
| Name of Benefit* | Purpose | Is
Benefit Standard or Optional? |
Maximum
Fee |
Brief
Description of Restrictions/Limitations |
| Basic Death Benefit | The Contract’s Death Proceeds at any time are the greater of: (1) the sum of all purchase payments adjusted for any premium tax, outstanding loan amount, and prior surrenders; or (2) Your highest Account Value as of December 31 following the end of your fifth Contract Year and at the end of every other five year period. In any case, less any later partial withdrawals, fees and charges; or (3)The total of all of your purchase payments less | Standard | None | • Withdrawals or loans could significantly reduce the benefit. |
| Name of Benefit* | Purpose | Is
Benefit Standard or Optional? |
Maximum
Fee |
Brief
Description of Restrictions/Limitations |
| any partial withdrawals (including any applicable Early Withdrawal Charge). | ||||
| The Equity Generator® | An amount equal to the interest earned in the Fixed Interest Account is transferred monthly to any one Division based on your selection. | Standard | None | • Benefit limits available investment options.• If your Fixed Interest Account Balance at the time of a scheduled transfer is zero, this strategy is automatically discontinued. |
| Systematic Withdrawal Program. | Before the Maturity Date, You can arrange to have money sent to You at set intervals throughout the year. | Standard | None | • Any applicable income and penalty taxes will apply on amounts withdrawn. Withdrawals in excess of the annual free withdrawal allowance may be subject to a withdrawal charge.• To elect systematic withdrawals You must have a Contract Value of at least $5,000 |
| * | If your annuity was issued in connection with an employer plan, you should check with your employer regarding the availability of riders. |
| • | Financial Freedom TSA |
| • | Financial Freedom 403(a) |
| • | Non-Qualified Deferred Annuity for |
| • | Section 457(f) deferred compensation plan |
| • | Section 451 deferred fee arrangements |
| • | Section 451 deferred compensation plans |
| • | Section 457(e)(11) severance and death benefit plans |
| • | Section 415(m) qualified governmental excess benefit arrangements |
| • | For PEDC Deferred Annuities, the employer or trustee receives the death benefit. |
| • | Your Account Value; |
| • | Your highest Account Value as of December 31 following the end of your fifth Contract Year and at the end of every other five year period. In any case, less any later partial withdrawals, fees and charges; or |
| • | The total of all of your purchase payments less any partial withdrawals (including any applicable Early Withdrawal Charge). |
| • | Payments guaranteed by us for the rest of your life (or for the rest of two lives); |
| • | Payments guaranteed by us for the rest of your life (or for the rest of two lives) or for a specified period; |
| • | A fixed dollar payment or a variable payment; or |
| • | A refund feature. |
| • | TSA |
| • | 403(a) |
| • | Non-Qualified (for certain deferred arrangements and plans) |
| • | Owner: the person or entity which has all rights under the Income Annuity including the right to direct who receives payment. |
| • | Annuitant: the person whose life is the measure for determining the duration and sometimes the dollar amount of payments. |
| • | Beneficiary: the person who receives continuing payments or a lump sum payment if the Owner dies. |
| • | The amount of income You need; |
| • | The amount You expect to receive from other sources; |
| • | The growth potential of other investments; and |
| • | How long You would like your income to last. |
| • | First, we determine the change in investment experience (which reflects the deduction for any investment-related charge) for the underlying Portfolio from the previous trading day to the current trading day; |
| • | Next, we subtract the daily equivalent of your insurance-related charge or Separate Account charge (general administrative expenses and mortality and expense risk charges) for each day since the last day the Annuity Unit Value was calculated; the resulting number is the net investment return; |
| • | Then, we multiply by an adjustment based on your AIR for each day since the last Annuity Unit Value was calculated; and |
| • | Finally, we multiply the previous Annuity Unit Value by this result. |
| • | The percentage of the income payment to be reallocated; |
| • | The Divisions from which You want the income payment to be reallocated; and |
| • | The Divisions or Fixed Income Option (and the percentages allocated to each) to which You want the income payment to be reallocated. |
| • | First, we update the income payment amount to be reallocated from the Division based upon the applicable Annuity Unit Value at the time of the reallocation; |
| • | Second, we use the AIR to calculate an updated annuity purchase rate based upon your age, if applicable, and expected future income payments at the time of the reallocation; |
| • | Third, we calculate another updated annuity purchase rate using our current annuity purchase rates for the Fixed Income Option on the date of your reallocation; and |
| • | Finally, we determine the adjusted payment amount by multiplying the updated income amount determined in the first step by the ratio of the annuity purchase rate determined in the second step divided by the annuity purchase rate determined in the third step. |
| • | Suppose You choose to reallocate 40% of your income payment supported by Division A to the Fixed Income Option and the recalculated income payment supported by Division A is $100. Assume that the updated annuity purchase rate based on the AIR is $125, while the updated annuity purchase rate based on fixed income annuity pricing is $100. In that case, your income payment from the Fixed Income Option will be increased by $40 x ($125 x $100) or $50, and your income payment supported by Division A will be decreased by $40. (The number of Annuity Units in Division A will be decreased as well.) |
| • | Suppose You choose to reallocate 40% of your income payment supported by Division A to Division B and the recalculated income payment supported by Division A is $100. Then, your income payment supported by Division B will be increased by $40 and your income payment supported by Division A will be decreased by $40. (Changes will be made to the number of Annuity Units in both Divisions as well.) |
| • | American Funds Global Small Capitalization Fund |
| • | American Funds Growth Fund |
| • | American Funds Growth-Income Fund |
| • | American Funds The Bond Fund of America |
| • | Baillie Gifford International Stock Portfolio |
| • | CBRE Global Real Estate Portfolio |
| • | Harris Oakmark International Portfolio |
| • | Invesco Global Equity Portfolio |
| • | Invesco Small Cap Growth Portfolio |
| • | Loomis Sayles Global Allocation Portfolio |
| • | Loomis Sayles Small Cap Core Portfolio |
| • | Loomis Sayles Small Cap Growth Portfolio |
| • | MetLife MSCI EAFE® Index Portfolio |
| • | MetLife Russell 2000® Index Portfolio |
| • | MFS® Research International Portfolio |
| • | Neuberger Berman Genesis Portfolio |
| • | T. Rowe Price Small Cap Growth Portfolio |
| • | Western Asset Management Strategic Bond Opportunities Portfolio |
| • | Insurance-related charge (or Separate Account charge), and |
| • | Investment-related charge. |
| During Contract Year | Percentage |
| 1 | 5.6% |
| 2 | 5.0% |
| 3 | 4.5% |
| 4 | 4.0% |
| 5 | 3.0% |
| 6 | 2.0% |
| 7 | 1.0% |
| 8 and Beyond | 0% |
| • | On a day when the Accumulation Unit Value/Annuity Unit Value is not calculated, or |
| • | After the close of the Exchange. |
| • | Account Value |
| • | Unit Values |
| • | Current rates for the Fixed Interest Account |
| • | Transfers |
| • | Changes to investment strategies |
| • | Changes in the allocation of future purchase payments. |
| • | any inaccuracy, error, or delay in or omission of any information You transmit or deliver to us; or |
| • | any loss or damage You may incur because of such inaccuracy, error, delay or omission; non-performance; or any interruption of information beyond our control. |
| • | rules of the SEC so permit (trading on the Exchange is limited, the Exchange is closed other than for customary weekend or holiday closings or an emergency exists which makes pricing or sale of securities not practicable); or |
| • | during any other period when the SEC by order so permits. |
| • | To operate the Separate Account in any form permitted by law. |
| • | To take any action necessary to comply with or obtain and continue any exemptions under the law (including favorable treatment under the Federal income tax laws) including limiting the number, frequency or types of transfers/reallocations transactions permitted. |
| • | To transfer any assets in a Division to another Division, or to one or more separate accounts, or to our general account, or to add, combine or remove Divisions in the Separate Account. |
| • | To substitute for the Portfolio shares in any Division, the shares of another class of Brighthouse Trust I, Brighthouse Trust II or the shares of another investment company or any other investment permitted by law. |
| • | To change the way we assess charges, but without increasing the aggregate amount charged to the Separate Account and any currently available Portfolio in connection with the Deferred Annuities or Income Annuities. |
| • | To make any necessary technical changes in the Deferred Annuities or Income Annuities in order to conform with any of the above-described actions. |
| • | The shares for which voting instructions are received; and |
| • | The shares that are voted in proportion to such voting instructions. |
| • | (1) the plan’s trust is organized under the laws of Puerto Rico, or has a Puerto Rico resident trustee and uses such trustee as paying agent; and |
| • | (2) 10% of all plan’s trust assets (calculated based on the average balance of the investments of the trust) attributable to participants which are Puerto Rico residents must be invested in “property located in Puerto Rico” for a three-year period. |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| Global Equity | American
Funds Global Small Capitalization Fund* - Class 2 Capital Research and Management CompanySM |
0.90% | 6.74% | 12.51% | 15.45% |
| US Equity | American
Funds Growth Fund - Class 2 Capital Research and Management CompanySM |
0.60% | 21.97% | 19.71% | 25.43% |
| US Equity | American
Funds Growth-Income Fund - Class 2 Capital Research and Management CompanySM |
0.54% | 24.10% | 15.42% | 16.39% |
| US Fixed Income | American
Funds The Bond Fund of America* - Class 2 Capital Research and Management CompanySM |
0.45% | -0.31% | 3.27% | 4.25% |
| Allocation | American
Funds® Balanced Allocation Portfolio - Class C Brighthouse Investment Advisers, LLC |
0.97% | 12.14% | 11.61% | 10.22% |
| Allocation | American
Funds® Growth Allocation Portfolio - Class C Brighthouse Investment Advisers, LLC |
1.01% | 15.91% | 13.89% | 12.35% |
| Allocation | American
Funds® Moderate Allocation Portfolio - Class C Brighthouse Investment Advisers, LLC |
0.94% | 9.64% | 9.44% | 8.33% |
| International Equity | Baillie
Gifford International Stock Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Baillie Gifford Overseas Limited |
0.71% | -0.76% | 13.35% | 9.97% |
| US Fixed Income | BlackRock
Bond Income Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: BlackRock Advisors, LLC |
0.37% | -0.43% | 4.26% | 3.86% |
| US Equity | BlackRock
Capital Appreciation Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: BlackRock Advisors, LLC |
0.77% | 21.02% | 25.26% | 18.46% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| Allocation | Brighthouse
Asset Allocation 100 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.72% | 18.34% | 14.91% | 13.15% |
| Allocation | Brighthouse
Asset Allocation 20 Portfolio* - Class A Brighthouse Investment Advisers, LLC |
0.60% | 4.01% | 6.00% | 5.30% |
| Allocation | Brighthouse
Asset Allocation 40 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.60% | 7.68% | 8.12% | 7.37% |
| Allocation | Brighthouse
Asset Allocation 60 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.63% | 11.17% | 10.45% | 9.47% |
| Allocation | Brighthouse
Asset Allocation 80 Portfolio - Class A Brighthouse Investment Advisers, LLC |
0.67% | 14.87% | 12.89% | 11.54% |
| US Equity | Brighthouse/Artisan
Mid Cap Value Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Artisan Partners Limited Partnership |
0.75% | 26.91% | 10.32% | 11.00% |
| US Fixed Income | Brighthouse/Franklin
Low Duration Total Return Portfolio* - Class B Brighthouse Investment Advisers, LLC Subadviser: Franklin Advisers, Inc. |
0.72% | 0.28% | 1.75% | 1.78% |
| Allocation | Brighthouse/Wellington
Balanced Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.51% | 14.02% | 12.84% | 11.64% |
| US Equity | Brighthouse/Wellington
Core Equity Opportunities Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.60% | 24.43% | 16.62% | 14.75% |
| US Equity | Brighthouse/Wellington
Large Cap Research Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Wellington Management Company LLP |
0.53% | 24.38% | 18.14% | 16.33% |
| Allocation | Calvert
VP SRI Balanced Portfolio - Class I Calvert Research and Management |
0.63% | 15.12% | 12.49% | 10.48% |
| US Equity | Calvert
VP SRI Mid Cap Portfolio - X Calvert Research and Management |
0.96% | 15.03% | 12.59% | 11.89% |
| Sector | CBRE
Global Real Estate Portfolio - Class E (formerly known as Clarion Global Real Estate Portfolio - Class E) Brighthouse Investment Advisers, LLC Subadviser: CBRE Investment Management Listed Real Assets LLC |
0.77% | 34.56% | 10.14% | 9.12% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Equity | Equity-Income
Portfolio - Initial Class Fidelity Management & Research Company LLC Subadviser: FMR UK, FMR HK, FMR Japan |
0.51% | 24.89% | 11.95% | 12.53% |
| Allocation | Freedom
2020 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.75% | 9.26% | 10.41% | 8.98% |
| Allocation | Freedom
2025 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.78% | 10.55% | 11.24% | 9.97% |
| Allocation | Freedom
2030 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.82% | 12.07% | 12.48% | 10.81% |
| Allocation | Freedom
2035 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.87% | 15.18% | 13.98% | 11.97% |
| Allocation | Freedom
2040 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.90% | 17.50% | 14.72% | 12.39% |
| Allocation | Freedom
2045 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.90% | 17.53% | 14.72% | 12.49% |
| Allocation | Freedom
2050 Portfolio - Service Class 2 Fidelity Management & Research Company LLC |
0.90% | 17.51% | 14.72% | 12.55% |
| US Equity | Frontier
Mid Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Frontier Capital Management Company, LLC |
0.70% | 14.68% | 18.90% | 15.49% |
| US Fixed Income | Government
Money Market Portfolio - Initial Class Fidelity Management & Research Company LLC Subadviser: FMR UK, FMR HK, FMR Japan |
0.23% | 0.01% | 0.93% | 0.51% |
| US Equity | Growth
Portfolio - Initial Class Fidelity Management & Research Company LLC Subadviser: FMR UK, FMR HK, FMR Japan |
0.61% | 23.21% | 26.29% | 19.70% |
| International Equity | Harris
Oakmark International Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Harris Associates L.P. |
0.91% | 8.52% | 7.18% | 8.83% |
| Global Equity | Invesco
Global Equity Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Invesco Advisers, Inc. |
0.57% | 15.76% | 18.44% | 14.46% |
| US Equity | Invesco
Small Cap Growth Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Invesco Advisers, Inc. |
0.95% | 7.01% | 19.03% | 16.75% |
| US Fixed Income | Investment
Grade Bond Portfolio - Initial Class Fidelity Management & Research Company LLC Subadviser: FMR UK, FMR HK, FMR Japan |
0.39% | -0.61% | 4.33% | 3.54% |
| US Equity | Jennison
Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Jennison Associates LLC |
0.53% | 17.17% | 27.45% | 20.50% |
| Allocation | Loomis
Sayles Global Allocation Portfolio* - Class B Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
1.02% | 14.26% | 14.24% | 11.33% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Equity | Loomis
Sayles Growth Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.56% | 18.66% | 16.59% | 15.99% |
| US Equity | Loomis
Sayles Small Cap Core Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.87% | 21.95% | 11.95% | 13.23% |
| US Equity | Loomis
Sayles Small Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Loomis, Sayles & Company, L.P. |
0.86% | 10.00% | 19.09% | 15.79% |
| US Fixed Income | MetLife
Aggregate Bond Index Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.27% | -1.93% | 3.32% | 2.64% |
| US Equity | MetLife
Mid Cap Stock Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.29% | 24.40% | 12.81% | 13.93% |
| International Equity | MetLife
MSCI EAFE® Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.38% | 10.72% | 9.38% | 7.84% |
| US Equity | MetLife
Russell 2000® Index Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.30% | 14.52% | 11.93% | 13.20% |
| US Equity | MetLife
Stock Index Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: MetLife Investment Management, LLC |
0.26% | 28.36% | 18.18% | 16.26% |
| International Equity | MFS
® Research International Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.64% | 11.98% | 12.58% | 8.72% |
| Allocation | MFS
® Total Return Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.59% | 14.22% | 9.89% | 9.68% |
| US Equity | MFS
® Value Portfolio* - Class E Brighthouse Investment Advisers, LLC Subadviser: Massachusetts Financial Services Company |
0.72% | 25.40% | 12.34% | 13.53% |
| US Equity | Morgan
Stanley Discovery Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Morgan Stanley Investment Management Inc. |
0.62% | -10.54% | 37.65% | 20.90% |
| FUND
TYPE |
PORTFOLIO
AND ADVISER/SUBADVISER |
CURRENT
EXPENSES |
AVERAGE
ANNUAL TOTAL RETURNS (as of 12/31/2021) | ||
| 1
YEAR |
5
YEAR |
10
YEAR | |||
| US Equity | Neuberger
Berman Genesis Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Neuberger Berman Investment Advisers LLC |
0.78% | 18.41% | 15.71% | 14.21% |
| US Fixed Income | PIMCO
Inflation Protected Bond Portfolio - Class E Brighthouse Investment Advisers, LLC Subadviser: Pacific Investment Management Company LLC |
0.68% | 5.49% | 5.26% | 3.01% |
| US Fixed Income | PIMCO
Total Return Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Pacific Investment Management Company LLC |
0.47% | -1.13% | 4.15% | 3.58% |
| Allocation | SSGA
Growth and Income ETF Portfolio - Class E Brighthouse Investment Advisers, LLC Subadviser: SSGA Funds Management, Inc. |
0.66% | 13.52% | 10.15% | 8.59% |
| Allocation | SSGA
Growth ETF Portfolio - Class E Brighthouse Investment Advisers, LLC Subadviser: SSGA Funds Management, Inc. |
0.69% | 17.75% | 11.85% | 10.14% |
| US Equity | T.
Rowe Price Large Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.57% | 20.22% | 23.39% | 19.26% |
| US Equity | T.
Rowe Price Mid Cap Growth Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.70% | 15.15% | 18.19% | 16.57% |
| US Equity | T.
Rowe Price Small Cap Growth Portfolio - Class A Brighthouse Investment Advisers, LLC Subadviser: T. Rowe Price Associates, Inc. |
0.49% | 11.67% | 16.25% | 15.90% |
| US Equity | Victory
Sycamore Mid Cap Value Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Victory Capital Management Inc. |
0.59% | 32.13% | 12.75% | 12.26% |
| US Fixed Income | Western
Asset Management Strategic Bond Opportunities Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Western Asset Management Company LLC |
0.54% | 2.82% | 5.55% | 5.21% |
| US Fixed Income | Western
Asset Management U.S. Government Portfolio* - Class A Brighthouse Investment Advisers, LLC Subadviser: Western Asset Management Company LLC |
0.48% | -1.52% | 2.49% | 1.97% |
| * | The Portfolio is subject to an expense reimbursement or fee waiver arrangement. The annual expenses shown reflect temporary fee reductions. |
| Qualified
Deferred and Income Annuities |
Non-Qualified
Deferred Annuities and Income Annuities |
|||
| California (1) | 0.5% | 2.35% | ||
| Colorado | 0.00% | 2.00% | ||
| Florida (2) | 1.0% | 1.0% | ||
| Maine (3) | 0.0% | 2.0% | ||
| Nevada (4) | 0.0% | 3.5% | ||
| Puerto Rico(5) | 1.0% | 1.0% | ||
| South Dakota(6) | 0.0% | 1.25% | ||
| Wyoming (4) | 0.0% | 1.0% |
| 1 | California applies the qualified tax rate to plans that qualify under the following Code Sections: 401(a), 403(b), 404, 408(b), and 501(a). |
| 2 | Annuity purchase payments are exempt from taxation provided the tax savings are passed back to the Contract Owners. Otherwise, they are taxable at 1%. |
| 3 | Maine applies the qualified tax rate to plans that qualify under the following Code Sections: 401, 403, 403(b), 404, 408, 457 and 501. |
| 4 | Nevada and Wyoming apply the qualified tax rate to plans that qualify under the following Code Sections: 401, 403, 404, 408, 457 and 501. |
| 5 | We will not deduct premium taxes paid by us to Puerto Rico from purchase payments, Account Value, withdrawals, death benefits or income payments. |
| 6 | Special rate applies for large case annuity policies. Rate is 0.08% for that portion of the annuity considerations received on a Contract exceeding $500,000 annually. Special rate on large case policies is not subject to retaliation. South Dakota applies the qualified tax rate to plans that qualify under the following Code Sections: 401, 403(b), 404, 408, 457, and 501(a). |
| During Purchase Payment Year | Percentage |
| 1 | 7% |
| 2 | 6% |
| 3 | 5% |
| 4 | 4% |
| 5 | 3% |
| 6 | 2% |
| 7 | 1% |
| 8 & Later | 0% |
| • | On withdrawals of purchase payments You made over seven years ago. |
| • | If You choose payments over one or more lifetimes or for a period of at least five years (without the right to accelerate the payments). |
| • | If You die during the pay-in phase. Your beneficiary will receive the full death benefit without deduction. |
| • | If your Contract permits and your spouse is substituted as the purchaser of the Deferred Annuity and continues the Contract, that portion of the Account Value that equals the “step up” portion of the death benefit. |
| • | If You withdraw up to 20% (10% for certain TSA Enhanced Deferred Annuities) of your Account Value each Contract Year. This 20% (or 10%) total withdrawal may be taken in an unlimited number of partial withdrawals during that Contract Year. Each time You make a withdrawal, we calculate what percentage your withdrawal represents at that time. Only when the total of these percentages exceeds 20% (or 10%) will You have to pay Early Withdrawal Charges. |
| • | If the withdrawal is required for You to avoid Federal income tax penalties or to satisfy Federal income tax rules or Department of Labor regulations that apply to your Deferred Annuity, for purposes of this exception, we will treat the Contract as if it were your only account subject to the minimum distribution rules. This exception does not apply if You have a Non-Qualified Deferred Annuity or if the withdrawal is to satisfy Section 72(t) requirements under the Code. |
| • | Systematic Termination. For all Deferred Annuities except certain TSA, Non-Qualified and IRA Enhanced Deferred Annuities, if the Contract is terminated, You may withdraw your total Account Value without an Early Withdrawal Charge when the Account Value is paid in annual installments based on the following percentages of your Account Value for that year’s withdrawal: |
| Contract
Year* |
Percentage |
| 1 | 20% |
| 2 | 25% |
| 3 | 33⅓% |
| 4 | 50% |
| 5 | remainder |
| * | Less that Contract Year’s withdrawals. |
| • | If You are disabled and request a total withdrawal. Disability is defined in the Federal Social Security Act. |
| • | If You retire |
| • | For certain Enhanced TSA Deferred Annuities, if You have also participated for at least 10 consecutive |
| years. This does not apply for withdrawals of money transferred into the Contract from other investment vehicles on a tax-free basis (plus earnings on such amounts). Participated for at least 10 consecutive years means that your Contract must have been in existence for 10 years prior to the requested withdrawal. | |
| • | For the Non-Qualified and certain PEDC Deferred Annuities, if You retire. |
| • | For certain TSA, PEDC and 403(a) Enhanced Deferred Annuities, if You also have participated for at least 10 consecutive years unless You retire according to the definition of retirement stated in your plan. Participated for at least 10 consecutive years means that your Contract must have been in existence for 10 years prior to the requested withdrawal. |
| • | If your plan provides payment on account of hardship and You suffer from an unforeseen hardship. (Except for certain TSA, 403(a), Non-Qualified and IRA Enhanced Deferred Annuities.) For certain TSA Enhanced Deferred Annuities, You must only have suffered an unforeseen hardship. |
| • | If You leave your job with the employer that bought the Deferred Annuity. (Except for certain TSA, Non-Qualified and IRA Enhanced Deferred Annuities.) |
| • | If your plan terminates and the withdrawal is transferred into another annuity contract we issue. (Except for certain TSA, Non-Qualified and IRA Enhanced Deferred Annuities.) |
| • | If You make a direct transfer to other investment vehicles we have pre-approved. (Except for certain Non-Qualified and IRA Enhanced Deferred Annuities.) |
| • | If You withdraw money under a plan provision which we have pre-approved. (Except for certain TSA, Non-Qualified, PEDC and IRA Enhanced Deferred Annuities.) |
| • | If the plan or group of which You are a participant or member permits account reduction loans, You take an account reduction loan and the withdrawal consists of these account reduction loan amounts. |
| • | If You have transferred money which is not subject to a withdrawal charge (because You have satisfied contractual provisions for a withdrawal without the imposition of a Contract withdrawal charge) from certain eligible MetLife contracts into the Deferred Annuity and the withdrawal is of these transferred amounts and we agree. Any purchase payments made after the transfer are subject to the usual Early Withdrawal Charge schedule. |
| • | If permitted in your state, except for Non-Qualified and IRA Deferred Annuities, if You make a direct transfer to another funding option or annuity contract issued by us or one of our affiliates and we agree. |
| • | Amounts transferred before January 1, 1996: |
| After the Transfer | Percentage |
| 1 | 5% |
| 2 | 4% |
| 3 | 3% |
| After the Transfer | Percentage |
| 4 | 2% |
| 5 | 1% |
| 6 and Beyond | 0% |
| • | Amounts transferred on or after January 1, 1996: |
| • | For certain Contracts which we issued at least two years before the date of transfer (except as noted below), we apply the withdrawal charge under your original Contract but not any of the original contract's exceptions or reductions to the withdrawal charge percentage that do not apply to a Deferred Annuity. Or, if it will produce a lower charge, we use the following schedule to determine Early Withdrawal Charges for transferred amounts from your original Contract: |
| After the Transfer | Percentage |
| 1 | 5% |
| 2 | 4% |
| 3 | 3% |
| 4 | 2% |
| 5 | 1% |
| 6 and Beyond | 0% |
| • | If we issued the other Contract less than two years before the date of the transfer or it has a separate withdrawal charge for each purchase payment, we treat your purchase payments under the other Contract as if they were made under the Deferred Annuity as of the date we received them under that Contract. |
| • | Alternatively, if provided for in your Deferred Annuity, we credit your purchase payments with the time You held them under your original Contract. |
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| Year | Underwriting
Commissions Underwriting Commissions Paid to the Distributor by the Company |
Amount
of Underwriting Commissions Retained by the Distributor | ||
| 2021 | $5,546,309 | $0 | ||
| 2020 | $5,254,074 | $0 | ||
| 2019 | $5,540,294 | $0 |
| • | First, we update the income payment amount to be reallocated from the Division based upon the applicable Annuity Unit Value at the time of the reallocation; |
| • | Second, we use the AIR to calculate an updated annuity purchase rate based upon your age, if applicable, and expected future income payments at the time of the reallocation; |
| • | Third, we calculate another updated annuity purchase rate using our current annuity purchase rates for the Fixed Income Option for the Income Annuity on the date of your reallocation; |
| • | Finally, we determine the adjusted payment amount by multiplying the updated income amount determined in the first step by the ratio of the annuity purchase rate determined in the second step divided by the annuity purchase rate determined in the third step. |
| • | Suppose You choose to reallocate 40% of your income payment supported by Division A to the Fixed Income Option and the recalculated income payment supported by Division A is $100. Assume that the updated annuity purchase rate based on the AIR is $125, while the updated annuity purchase rate based on fixed income annuity pricing is $100. In that case, your |
| income payment from the Fixed Income Option will be increased by $40 × ($125 ÷ $100) or $50, and your income payment supported by Division A will be decreased by $40. (The number of Annuity Units in Division A will be decreased as well.) | |
| • | Suppose You choose to reallocate 40% of your income payment supported by Division A to Division B and the recalculated income payment supported by Division A is $100. Then, your income payment supported by Division B will be increased by $40 and your income payment supported by Division A will be decreased by $40. (Changes will also be made to the number of Annuity Units in both Divisions as well.) |
|
1. Annuity Unit Value, beginning of
period |
$10.20 |
|
2. “Experience factor” for
period |
1.023558 |
|
3. Daily adjustment for 3% Assumed Investment
Return |
1.000081 |
|
4. (2) ÷
(3) |
1.023475 |
|
5. Annuity Unit Value, end of period (1) ×
(4) |
$10.44 |
|
1. Number of Accumulation Units as of Annuity
Date |
1,500.00 |
|
2. Accumulation Unit
Value |
$11.80 |
|
3. Accumulation Value of the Deferred Annuity (1) ×
(2) |
$17,700.00 |
|
4. First monthly income payment per $1,000 of Accumulation
Value |
$5.52 |
|
5. First monthly income payment (3) × (4) ÷
1,000 |
$97.70 |
|
6. Assume Annuity Unit Value as of Annuity Date equal to (see Illustration of Calculation of Annuity Unit Value
above) |
$10.80 |
|
7. Number of Annuity Units (5) ÷
(6) |
9.0463 |
|
8. Assume Annuity Unit Value for the second month equal to (10 days prior to
payment) |
$10.97 |
|
9. Second monthly Annuity Payment (7) ×
(8) |
$99.24 |
|
10. Assume Annuity Unit Value for third month equal
to |
$10.53 |
|
11. Next monthly Annuity Payment (7) ×
(10) |
$95.26 |
| Capital Gains | Dividends | Other |
| 23.8% | 40.8% | 40.8% |
| (a) | Choose income payments other than on a qualified joint and survivor annuity basis (“QJSA”) (one under which we make payments to You during your lifetime and then make payments reduced by no more than 50% to your spouse for his or her remaining life, if any): or choose to waive the qualified pre-retirement survivor annuity benefit (“QPSA”) (the benefit payable to the surviving spouse of a participant who dies with a vested interest in an accrued retirement benefit under the plan before payment of the benefit has begun); |
| (b) | Make certain withdrawals under plans for which a qualified consent is required; |
| (c) | Name someone other than the spouse as your beneficiary; or |
| (d) | Use your accrued benefit as security for a loan exceeding $5,000. |
| Plan Type | Elective
Contribution |
Catch-up
Contribution |
| IRA (Traditional and Roth) | $6,000 | $1,000 |
| SIMPLE | $14,000* | $3,000 |
| 401(k) | $20,500* | $6,500 |
| SEP/401(a) | (Employer contributions only) | |
| 403(b) (TSA) | $20,500* | $6,500 |
| 457(b) | $20,500* | $6,500 |
| * | If you participate in any other employer plan during the year and have elective salary reductions under those plans, the total amount of salary reduction contributions that you can make to all plans in which you participate is limited to $20,500 in 2022. |
To the Contract Owners of
Metropolitan Life Separate Account E
and Board of Directors of
Metropolitan Life Insurance Company
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Metropolitan Life Separate Account E (the "Separate Account") of Metropolitan Life Insurance Company (the "Company") comprising each of the individual Divisions listed in Note 2A as of December 31, 2021, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights in Note 8 for each of the five years in the period then ended for the Divisions, except for the Divisions included in the table below; the related statements of operations, changes in net assets, and the financial highlights for the Divisions and periods indicated in the table below; and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Divisions constituting the Separate Account of the Company as of December 31, 2021, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended (or for the periods listed in the table below), and the financial highlights for each of the five years in the period then ended (or for the periods listed in the table below), in conformity with accounting principles generally accepted in the United States of America.
| Individual Divisions Comprising the Separate Account | Statement of Operations | Statements of Changes in Net Assets | Financial Highlights | ||||||||||||
| FTVIPT Templeton Foreign VIP Division | For the year ended December 31, 2021 | For the year ended December 31, 2021 (Had no net assets at December 31, 2020) | For the years ended December 31, 2021, 2018, and 2017 (Had no net assets at December 31, 2020 and 2019) | ||||||||||||
| Fidelity® VIP Freedom 2035 Division Fidelity® VIP Freedom 2045 Division | For the year ended December 31, 2021 | For the years ended December 31, 2021 and 2020 | For the years ended December 31, 2021, 2020, 2019, and the period from April 30, 2018 (commencement of operations) through December 31, 2018 | ||||||||||||
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Separate Account's management. Our responsibility is to express an opinion on the Separate Account's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Separate Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Separate Account's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of investments owned as of December 31, 2021, by correspondence with the custodian or mutual fund companies. We believe that our audits provide a reasonable basis for our opinion.
Tampa, Florida
March 25, 2022
We have served as the Separate Account's auditor since 1984.
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
| American Funds® Global Growth Division | American Funds® Global Small Capitalization Division | American Funds® Growth Division | American Funds® Growth-Income Division | ||||||||||||||||
| Assets: | |||||||||||||||||||
| Investments at fair value | $ | 273,170 | $ | 443,146,069 | $ | 1,359,475,900 | $ | 808,908,101 | |||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | |||||||||||||||
| Total Assets | 273,170 | 443,146,069 | 1,359,475,900 | 808,908,101 | |||||||||||||||
| Liabilities: | |||||||||||||||||||
| Accrued fees | 3 | 110 | 66 | 51 | |||||||||||||||
| Due to Metropolitan Life Insurance Company | — | 3 | 1 | 1 | |||||||||||||||
| Total Liabilities | 3 | 113 | 67 | 52 | |||||||||||||||
| Net Assets | $ | 273,167 | $ | 443,145,956 | $ | 1,359,475,833 | $ | 808,908,049 | |||||||||||
| Contract Owners' Equity | |||||||||||||||||||
| Net assets from accumulation units | $ | 273,167 | $ | 442,293,531 | $ | 1,357,091,829 | $ | 806,783,225 | |||||||||||
| Net assets from contracts in payout | — | 852,425 | 2,384,004 | 2,124,824 | |||||||||||||||
| Total Net Assets | $ | 273,167 | $ | 443,145,956 | $ | 1,359,475,833 | $ | 808,908,049 | |||||||||||
The accompanying notes are an integral part of these financial statements.
E-1
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
| American Funds® The Bond Fund of America Division | BHFTI AB Global Dynamic Allocation Division | BHFTI Allspring Mid Cap Value Division | BHFTI American Funds® Balanced Allocation Division | BHFTI American Funds® Growth Allocation Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 83,591,336 | $ | 1,149,682,538 | $ | 248,640 | $ | 792,659,720 | $ | 502,935,551 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 83,591,336 | 1,149,682,538 | 248,640 | 792,659,720 | 502,935,551 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 72 | 32 | 13 | 49 | 44 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | 1 | 1 | — | 2 | 2 | ||||||||||||||||||
| Total Liabilities | 73 | 33 | 13 | 51 | 46 | ||||||||||||||||||
| Net Assets | $ | 83,591,263 | $ | 1,149,682,505 | $ | 248,627 | $ | 792,659,669 | $ | 502,935,505 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 83,345,677 | $ | 1,149,555,748 | $ | 248,627 | $ | 792,209,590 | $ | 502,566,149 | |||||||||||||
| Net assets from contracts in payout | 245,586 | 126,757 | — | 450,079 | 369,356 | ||||||||||||||||||
| Total Net Assets | $ | 83,591,263 | $ | 1,149,682,505 | $ | 248,627 | $ | 792,659,669 | $ | 502,935,505 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-2
BHFTI American Funds® Growth Division | BHFTI American Funds® Moderate Allocation Division | BHFTI BlackRock Global Tactical Strategies Division | BHFTI BlackRock High Yield Division | BHFTI Brighthouse Asset Allocation 100 Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 344,916,983 | $ | 738,578,263 | $ | 1,456,631,272 | $ | 374,246 | $ | 278,056,016 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 344,916,983 | 738,578,263 | 1,456,631,272 | 374,246 | 278,056,016 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 38 | 42 | 31 | 21 | 81 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | — | 1 | 1 | 1 | 1 | ||||||||||||||||||
| Total Liabilities | 38 | 43 | 32 | 22 | 82 | ||||||||||||||||||
| Net Assets | $ | 344,916,945 | $ | 738,578,220 | $ | 1,456,631,240 | $ | 374,224 | $ | 278,055,934 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 344,724,016 | $ | 737,930,646 | $ | 1,456,384,347 | $ | 374,224 | $ | 270,566,858 | |||||||||||||
| Net assets from contracts in payout | 192,929 | 647,574 | 246,893 | — | 7,489,076 | ||||||||||||||||||
| Total Net Assets | $ | 344,916,945 | $ | 738,578,220 | $ | 1,456,631,240 | $ | 374,224 | $ | 278,055,934 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-3
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
| BHFTI Brighthouse Balanced Plus Division | BHFTI Brighthouse Small Cap Value Division | BHFTI Brighthouse/ Aberdeen Emerging Markets Equity Division | BHFTI Brighthouse/ Eaton Vance Floating Rate Division | BHFTI Brighthouse/ Franklin Low Duration Total Return Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 3,294,483,447 | $ | 20,325,131 | $ | 40,417,675 | $ | 19,666,431 | $ | 67,677,540 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 3,294,483,447 | 20,325,131 | 40,417,675 | 19,666,431 | 67,677,540 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 18 | 32 | 54 | 42 | 70 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | 1 | 1 | 1 | — | 1 | ||||||||||||||||||
| Total Liabilities | 19 | 33 | 55 | 42 | 71 | ||||||||||||||||||
| Net Assets | $ | 3,294,483,428 | $ | 20,325,098 | $ | 40,417,620 | $ | 19,666,389 | $ | 67,677,469 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 3,293,860,498 | $ | 20,325,098 | $ | 40,407,078 | $ | 19,666,389 | $ | 67,635,249 | |||||||||||||
| Net assets from contracts in payout | 622,930 | — | 10,542 | — | 42,220 | ||||||||||||||||||
| Total Net Assets | $ | 3,294,483,428 | $ | 20,325,098 | $ | 40,417,620 | $ | 19,666,389 | $ | 67,677,469 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-4
| BHFTI Brighthouse/ Templeton International Bond Division | BHFTI Brighthouse/ Wellington Large Cap Research Division | BHFTI CBRE Global Real Estate Division | BHFTI Harris Oakmark International Division | BHFTI Invesco Balanced-Risk Allocation Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 4,563,998 | $ | 889,105,343 | $ | 183,528,874 | $ | 379,548,692 | $ | 420,943,489 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | 2 | — | — | ||||||||||||||||||
| Total Assets | 4,563,998 | 889,105,343 | 183,528,876 | 379,548,692 | 420,943,489 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 47 | 105 | 102 | 104 | 31 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | — | 1 | — | 3 | 1 | ||||||||||||||||||
| Total Liabilities | 47 | 106 | 102 | 107 | 32 | ||||||||||||||||||
| Net Assets | $ | 4,563,951 | $ | 889,105,237 | $ | 183,528,774 | $ | 379,548,585 | $ | 420,943,457 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 4,563,951 | $ | 876,645,489 | $ | 183,229,382 | $ | 378,865,702 | $ | 420,815,823 | |||||||||||||
| Net assets from contracts in payout | — | 12,459,748 | 299,392 | 682,883 | 127,634 | ||||||||||||||||||
| Total Net Assets | $ | 4,563,951 | $ | 889,105,237 | $ | 183,528,774 | $ | 379,548,585 | $ | 420,943,457 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-5
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
| BHFTI Invesco Comstock Division | BHFTI Invesco Global Equity Division | BHFTI Invesco Small Cap Growth Division | BHFTI JPMorgan Core Bond Division | BHFTI JPMorgan Global Active Allocation Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 17,961 | $ | 286,660,672 | $ | 73,101,508 | $ | 71,214,253 | $ | 727,927,996 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | 2 | — | — | — | ||||||||||||||||||
| Total Assets | 17,961 | 286,660,674 | 73,101,508 | 71,214,253 | 727,927,996 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 18 | 105 | 105 | 31 | 23 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | — | — | 1 | 1 | 1 | ||||||||||||||||||
| Total Liabilities | 18 | 105 | 106 | 32 | 24 | ||||||||||||||||||
| Net Assets | $ | 17,943 | $ | 286,660,569 | $ | 73,101,402 | $ | 71,214,221 | $ | 727,927,972 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 17,943 | $ | 286,116,008 | $ | 73,009,863 | $ | 71,184,497 | $ | 727,883,073 | |||||||||||||
| Net assets from contracts in payout | — | 544,561 | 91,539 | 29,724 | 44,899 | ||||||||||||||||||
| Total Net Assets | $ | 17,943 | $ | 286,660,569 | $ | 73,101,402 | $ | 71,214,221 | $ | 727,927,972 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-6
| BHFTI JPMorgan Small Cap Value Division | BHFTI Loomis Sayles Global Allocation Division | BHFTI Loomis Sayles Growth Division | BHFTI MetLife Multi-Index Targeted Risk Division | BHFTI MFS® Research International Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 19,297,073 | $ | 105,733,449 | $ | 480,887,374 | $ | 774,902,126 | $ | 168,979,666 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 19,297,073 | 105,733,449 | 480,887,374 | 774,902,126 | 168,979,666 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 64 | 43 | 101 | 37 | 97 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | 1 | 1 | 1 | 2 | 3 | ||||||||||||||||||
| Total Liabilities | 65 | 44 | 102 | 39 | 100 | ||||||||||||||||||
| Net Assets | $ | 19,297,008 | $ | 105,733,405 | $ | 480,887,272 | $ | 774,902,087 | $ | 168,979,566 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 19,295,389 | $ | 105,723,653 | $ | 480,379,161 | $ | 774,838,882 | $ | 168,489,450 | |||||||||||||
| Net assets from contracts in payout | 1,619 | 9,752 | 508,111 | 63,205 | 490,116 | ||||||||||||||||||
| Total Net Assets | $ | 19,297,008 | $ | 105,733,405 | $ | 480,887,272 | $ | 774,902,087 | $ | 168,979,566 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-7
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
| BHFTI Morgan Stanley Discovery Division | BHFTI PanAgora Global Diversified Risk Division | BHFTI PanAgora Global Diversified Risk II Division | BHFTI PIMCO Inflation Protected Bond Division | BHFTI PIMCO Total Return Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 729,134,310 | $ | 92,948,468 | $ | 886,250,857 | $ | 337,008,262 | $ | 667,326,855 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 729,134,310 | 92,948,468 | 886,250,857 | 337,008,262 | 667,326,855 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 99 | 22 | 23 | 71 | 97 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | 6 | 1 | — | 2 | 3 | ||||||||||||||||||
| Total Liabilities | 105 | 23 | 23 | 73 | 100 | ||||||||||||||||||
| Net Assets | $ | 729,134,205 | $ | 92,948,445 | $ | 886,250,834 | $ | 337,008,189 | $ | 667,326,755 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 727,083,217 | $ | 92,921,255 | $ | 886,175,048 | $ | 336,507,820 | $ | 666,526,815 | |||||||||||||
| Net assets from contracts in payout | 2,050,988 | 27,190 | 75,786 | 500,369 | 799,940 | ||||||||||||||||||
| Total Net Assets | $ | 729,134,205 | $ | 92,948,445 | $ | 886,250,834 | $ | 337,008,189 | $ | 667,326,755 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-8
| BHFTI Schroders Global Multi-Asset Division | BHFTI SSGA Growth and Income ETF Division | BHFTI SSGA Growth ETF Division | BHFTI T. Rowe Price Large Cap Value Division | BHFTI T. Rowe Price Mid Cap Growth Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 649,441,192 | $ | 616,034,222 | $ | 133,226,874 | $ | 731,485 | $ | 496,061,884 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 649,441,192 | 616,034,222 | 133,226,874 | 731,485 | 496,061,884 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 48 | 62 | 77 | 9 | 53 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | 2 | 1 | 1 | — | 2 | ||||||||||||||||||
| Total Liabilities | 50 | 63 | 78 | 9 | 55 | ||||||||||||||||||
| Net Assets | $ | 649,441,142 | $ | 616,034,159 | $ | 133,226,796 | $ | 731,476 | $ | 496,061,829 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 649,217,074 | $ | 615,726,369 | $ | 133,111,373 | $ | 731,476 | $ | 495,261,207 | |||||||||||||
| Net assets from contracts in payout | 224,068 | 307,790 | 115,423 | — | 800,622 | ||||||||||||||||||
| Total Net Assets | $ | 649,441,142 | $ | 616,034,159 | $ | 133,226,796 | $ | 731,476 | $ | 496,061,829 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-9
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
BHFTI TCW Core Fixed Income Division | BHFTI Victory Sycamore Mid Cap Value Division | BHFTI Western Asset Management Government Income Division | BHFTII Baillie Gifford International Stock Division | BHFTII BlackRock Bond Income Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 45,405 | $ | 394,482,000 | $ | 326,125,352 | $ | 126,145,588 | $ | 361,432,026 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 45,405 | 394,482,000 | 326,125,352 | 126,145,588 | 361,432,026 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 14 | 86 | 33 | 92 | 89 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | — | 3 | 1 | 2 | 2 | ||||||||||||||||||
| Total Liabilities | 14 | 89 | 34 | 94 | 91 | ||||||||||||||||||
| Net Assets | $ | 45,391 | $ | 394,481,911 | $ | 326,125,318 | $ | 126,145,494 | $ | 361,431,935 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 45,391 | $ | 393,544,138 | $ | 326,036,025 | $ | 125,621,976 | $ | 359,363,126 | |||||||||||||
| Net assets from contracts in payout | — | 937,773 | 89,293 | 523,518 | 2,068,809 | ||||||||||||||||||
| Total Net Assets | $ | 45,391 | $ | 394,481,911 | $ | 326,125,318 | $ | 126,145,494 | $ | 361,431,935 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-10
| BHFTII BlackRock Capital Appreciation Division | BHFTII BlackRock Ultra-Short Term Bond Division | BHFTII Brighthouse Asset Allocation 20 Division | BHFTII Brighthouse Asset Allocation 40 Division | BHFTII Brighthouse Asset Allocation 60 Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 234,988,310 | $ | 37,400,806 | $ | 280,143,892 | $ | 818,808,413 | $ | 3,004,188,068 | |||||||||||||
| Due from Metropolitan Life Insurance Company | 4 | — | — | — | — | ||||||||||||||||||
| Total Assets | 234,988,314 | 37,400,806 | 280,143,892 | 818,808,413 | 3,004,188,068 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 85 | 59 | 62 | 42 | 32 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | — | 1 | 2 | 1 | 1 | ||||||||||||||||||
| Total Liabilities | 85 | 60 | 64 | 43 | 33 | ||||||||||||||||||
| Net Assets | $ | 234,988,229 | $ | 37,400,746 | $ | 280,143,828 | $ | 818,808,370 | $ | 3,004,188,035 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 233,377,507 | $ | 37,146,156 | $ | 279,292,703 | $ | 815,969,594 | $ | 3,001,092,383 | |||||||||||||
| Net assets from contracts in payout | 1,610,722 | 254,590 | 851,125 | 2,838,776 | 3,095,652 | ||||||||||||||||||
| Total Net Assets | $ | 234,988,229 | $ | 37,400,746 | $ | 280,143,828 | $ | 818,808,370 | $ | 3,004,188,035 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-11
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
| BHFTII Brighthouse Asset Allocation 80 Division | BHFTII Brighthouse/ Artisan Mid Cap Value Division | BHFTII Brighthouse/ Dimensional International Small Company Division | BHFTII Brighthouse/ Wellington Balanced Division | BHFTII Brighthouse/ Wellington Core Equity Opportunities Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 1,751,110,157 | $ | 195,847,282 | $ | 6,805,231 | $ | 629,816,707 | $ | 531,319,755 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 1,751,110,157 | 195,847,282 | 6,805,231 | 629,816,707 | 531,319,755 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 38 | 81 | 65 | 27 | 93 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | 1 | 1 | 1 | — | 2 | ||||||||||||||||||
| Total Liabilities | 39 | 82 | 66 | 27 | 95 | ||||||||||||||||||
| Net Assets | $ | 1,751,110,118 | $ | 195,847,200 | $ | 6,805,165 | $ | 629,816,680 | $ | 531,319,660 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 1,748,238,453 | $ | 194,842,212 | $ | 6,805,165 | $ | 619,071,349 | $ | 527,926,118 | |||||||||||||
| Net assets from contracts in payout | 2,871,665 | 1,004,988 | — | 10,745,331 | 3,393,542 | ||||||||||||||||||
| Total Net Assets | $ | 1,751,110,118 | $ | 195,847,200 | $ | 6,805,165 | $ | 629,816,680 | $ | 531,319,660 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-12
| BHFTII Frontier Mid Cap Growth Division | BHFTII Jennison Growth Division | BHFTII Loomis Sayles Small Cap Core Division | BHFTII Loomis Sayles Small Cap Growth Division | BHFTII MetLife Aggregate Bond Index Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 586,525,766 | $ | 287,427,895 | $ | 163,685,727 | $ | 64,952,457 | $ | 910,569,553 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | 1 | — | — | — | ||||||||||||||||||
| Total Assets | 586,525,766 | 287,427,896 | 163,685,727 | 64,952,457 | 910,569,553 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 84 | 82 | 106 | 66 | 84 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | 1 | — | 1 | 2 | 3 | ||||||||||||||||||
| Total Liabilities | 85 | 82 | 107 | 68 | 87 | ||||||||||||||||||
| Net Assets | $ | 586,525,681 | $ | 287,427,814 | $ | 163,685,620 | $ | 64,952,389 | $ | 910,569,466 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 583,973,827 | $ | 286,649,380 | $ | 162,520,552 | $ | 64,825,577 | $ | 907,317,852 | |||||||||||||
| Net assets from contracts in payout | 2,551,854 | 778,434 | 1,165,068 | 126,812 | 3,251,614 | ||||||||||||||||||
| Total Net Assets | $ | 586,525,681 | $ | 287,427,814 | $ | 163,685,620 | $ | 64,952,389 | $ | 910,569,466 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-13
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
| BHFTII MetLife Mid Cap Stock Index Division | BHFTII MetLife MSCI EAFE® Index Division | BHFTII MetLife Russell 2000® Index Division | BHFTII MetLife Stock Index Division | BHFTII MFS® Total Return Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 534,360,091 | $ | 465,174,903 | $ | 353,923,855 | $ | 3,495,089,970 | $ | 120,981,465 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 534,360,091 | 465,174,903 | 353,923,855 | 3,495,089,970 | 120,981,465 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 100 | 88 | 102 | 71 | 46 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | 3 | 3 | 1 | 2 | 2 | ||||||||||||||||||
| Total Liabilities | 103 | 91 | 103 | 73 | 48 | ||||||||||||||||||
| Net Assets | $ | 534,359,988 | $ | 465,174,812 | $ | 353,923,752 | $ | 3,495,089,897 | $ | 120,981,417 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 532,853,871 | $ | 464,331,781 | $ | 353,312,252 | $ | 3,433,912,581 | $ | 118,793,025 | |||||||||||||
| Net assets from contracts in payout | 1,506,117 | 843,031 | 611,500 | 61,177,316 | 2,188,392 | ||||||||||||||||||
| Total Net Assets | $ | 534,359,988 | $ | 465,174,812 | $ | 353,923,752 | $ | 3,495,089,897 | $ | 120,981,417 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-14
| BHFTII MFS® Value Division | BHFTII Neuberger Berman Genesis Division | BHFTII T. Rowe Price Large Cap Growth Division | BHFTII T. Rowe Price Small Cap Growth Division | BHFTII Van Eck Global Natural Resources Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 663,945,402 | $ | 320,936,656 | $ | 769,206,525 | $ | 476,701,992 | $ | 24,223,609 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 663,945,402 | 320,936,656 | 769,206,525 | 476,701,992 | 24,223,609 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 91 | 107 | 64 | 65 | 39 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | 7 | 3 | 1 | 2 | — | ||||||||||||||||||
| Total Liabilities | 98 | 110 | 65 | 67 | 39 | ||||||||||||||||||
| Net Assets | $ | 663,945,304 | $ | 320,936,546 | $ | 769,206,460 | $ | 476,701,925 | $ | 24,223,570 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 655,966,065 | $ | 319,460,643 | $ | 752,099,020 | $ | 475,657,314 | $ | 24,220,001 | |||||||||||||
| Net assets from contracts in payout | 7,979,239 | 1,475,903 | 17,107,440 | 1,044,611 | 3,569 | ||||||||||||||||||
| Total Net Assets | $ | 663,945,304 | $ | 320,936,546 | $ | 769,206,460 | $ | 476,701,925 | $ | 24,223,570 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-15
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
| BHFTII Western Asset Management Strategic Bond Opportunities Division | BHFTII Western Asset Management U.S. Government Division | BlackRock Global Allocation V.I. Division | Calvert VP SRI Balanced Division | Calvert VP SRI Mid Cap Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 381,592,805 | $ | 123,805,852 | $ | 20,057 | $ | 59,231,543 | $ | 7,860,497 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 381,592,805 | 123,805,852 | 20,057 | 59,231,543 | 7,860,497 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 128 | 119 | 7 | 20 | — | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | 2 | 2 | — | — | — | ||||||||||||||||||
| Total Liabilities | 130 | 121 | 7 | 20 | — | ||||||||||||||||||
| Net Assets | $ | 381,592,675 | $ | 123,805,731 | $ | 20,050 | $ | 59,231,523 | $ | 7,860,497 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 379,970,265 | $ | 123,618,146 | $ | 20,050 | $ | 59,152,618 | $ | 7,860,497 | |||||||||||||
| Net assets from contracts in payout | 1,622,410 | 187,585 | — | 78,905 | — | ||||||||||||||||||
| Total Net Assets | $ | 381,592,675 | $ | 123,805,731 | $ | 20,050 | $ | 59,231,523 | $ | 7,860,497 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-16
| Delaware VIP® Small Cap Value Division | Fidelity® VIP Contrafund® Division | Fidelity® VIP Equity-Income Division | Fidelity® VIP Freedom 2020 Division | Fidelity® VIP Freedom 2025 Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 906 | $ | 981,731 | $ | 72,640,466 | $ | 4,368,236 | $ | 8,278,237 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 906 | 981,731 | 72,640,466 | 4,368,236 | 8,278,237 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 4 | 7 | 10 | 2 | 4 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Liabilities | 4 | 7 | 10 | 2 | 4 | ||||||||||||||||||
| Net Assets | $ | 902 | $ | 981,724 | $ | 72,640,456 | $ | 4,368,234 | $ | 8,278,233 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 902 | $ | 981,724 | $ | 71,501,288 | $ | 4,368,234 | $ | 8,278,233 | |||||||||||||
| Net assets from contracts in payout | — | — | 1,139,168 | — | — | ||||||||||||||||||
| Total Net Assets | $ | 902 | $ | 981,724 | $ | 72,640,456 | $ | 4,368,234 | $ | 8,278,233 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-17
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
| Fidelity® VIP Freedom 2030 Division | Fidelity® VIP Freedom 2035 Division | Fidelity® VIP Freedom 2040 Division | Fidelity® VIP Freedom 2045 Division | Fidelity® VIP Freedom 2050 Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 8,836,624 | $ | 4,718,098 | $ | 3,038,803 | $ | 3,065,224 | $ | 6,746,816 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 8,836,624 | 4,718,098 | 3,038,803 | 3,065,224 | 6,746,816 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 3 | 15 | 27 | 17 | 21 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | 1 | — | 1 | 1 | 1 | ||||||||||||||||||
| Total Liabilities | 4 | 15 | 28 | 18 | 22 | ||||||||||||||||||
| Net Assets | $ | 8,836,620 | $ | 4,718,083 | $ | 3,038,775 | $ | 3,065,206 | $ | 6,746,794 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 8,836,620 | $ | 4,718,083 | $ | 3,038,775 | $ | 3,065,206 | $ | 6,746,794 | |||||||||||||
| Net assets from contracts in payout | — | — | — | — | — | ||||||||||||||||||
| Total Net Assets | $ | 8,836,620 | $ | 4,718,083 | $ | 3,038,775 | $ | 3,065,206 | $ | 6,746,794 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-18
| Fidelity® VIP FundsManager 50% Division | Fidelity® VIP FundsManager 60% Division | Fidelity® VIP Government Money Market Division | Fidelity® VIP Growth Division | Fidelity® VIP Investment Grade Bond Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 240,652,047 | $ | 241,915,886 | $ | 4,949,044 | $ | 140,954,875 | $ | 8,929,968 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 240,652,047 | 241,915,886 | 4,949,044 | 140,954,875 | 8,929,968 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | — | 1 | — | — | — | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Liabilities | — | 1 | — | — | — | ||||||||||||||||||
| Net Assets | $ | 240,652,047 | $ | 241,915,885 | $ | 4,949,044 | $ | 140,954,875 | $ | 8,929,968 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 240,652,047 | $ | 241,915,885 | $ | 4,949,044 | $ | 140,954,875 | $ | 8,929,968 | |||||||||||||
| Net assets from contracts in payout | — | — | — | — | — | ||||||||||||||||||
| Total Net Assets | $ | 240,652,047 | $ | 241,915,885 | $ | 4,949,044 | $ | 140,954,875 | $ | 8,929,968 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-19
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
| Fidelity® VIP Mid Cap Division | FTVIPT Templeton Developing Markets VIP Division | FTVIPT Templeton Foreign VIP Division | Janus Henderson Enterprise Division | LMPVET ClearBridge Variable Appreciation Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 545,739 | $ | 49,753 | $ | 483 | $ | 153,239 | $ | 60,142 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 545,739 | 49,753 | 483 | 153,239 | 60,142 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | — | 6 | 1 | 2 | 3 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Liabilities | — | 6 | 1 | 2 | 3 | ||||||||||||||||||
| Net Assets | $ | 545,739 | $ | 49,747 | $ | 482 | $ | 153,237 | $ | 60,139 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 545,739 | $ | 49,747 | $ | 482 | $ | 153,237 | $ | 60,139 | |||||||||||||
| Net assets from contracts in payout | — | — | — | — | — | ||||||||||||||||||
| Total Net Assets | $ | 545,739 | $ | 49,747 | $ | 482 | $ | 153,237 | $ | 60,139 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-20
| LMPVET ClearBridge Variable Dividend Strategy Division | LMPVET ClearBridge Variable Large Cap Growth Division | LMPVET ClearBridge Variable Small Cap Growth Division | LMPVIT Western Asset Core Plus Division | Morgan Stanley VIF Global Infrastructure Division | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investments at fair value | $ | 103,663 | $ | 555,920 | $ | 61,513 | $ | 423 | $ | 65,753 | |||||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | — | ||||||||||||||||||
| Total Assets | 103,663 | 555,920 | 61,513 | 423 | 65,753 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued fees | 7 | 3 | 12 | 9 | 16 | ||||||||||||||||||
| Due to Metropolitan Life Insurance Company | — | — | — | — | 1 | ||||||||||||||||||
| Total Liabilities | 7 | 3 | 12 | 9 | 17 | ||||||||||||||||||
| Net Assets | $ | 103,656 | $ | 555,917 | $ | 61,501 | $ | 414 | $ | 65,736 | |||||||||||||
| Contract Owners' Equity | |||||||||||||||||||||||
| Net assets from accumulation units | $ | 103,656 | $ | 555,917 | $ | 61,501 | $ | 414 | $ | 65,736 | |||||||||||||
| Net assets from contracts in payout | — | — | — | — | — | ||||||||||||||||||
| Total Net Assets | $ | 103,656 | $ | 555,917 | $ | 61,501 | $ | 414 | $ | 65,736 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-21
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Concluded)
| PIMCO VIT CommodityRealReturn® Strategy Division | PIMCO VIT Dynamic Bond Division | PIMCO VIT Emerging Markets Bond Division | TAP 1919 Variable Socially Responsive Balanced Division | ||||||||||||||||
| Assets: | |||||||||||||||||||
| Investments at fair value | $ | 38,898 | $ | 20,579 | $ | 40,625 | $ | 10,424 | |||||||||||
| Due from Metropolitan Life Insurance Company | — | — | — | — | |||||||||||||||
| Total Assets | 38,898 | 20,579 | 40,625 | 10,424 | |||||||||||||||
| Liabilities: | |||||||||||||||||||
| Accrued fees | 16 | 13 | 17 | 1 | |||||||||||||||
| Due to Metropolitan Life Insurance Company | 1 | 1 | — | — | |||||||||||||||
| Total Liabilities | 17 | 14 | 17 | 1 | |||||||||||||||
| Net Assets | $ | 38,881 | $ | 20,565 | $ | 40,608 | $ | 10,423 | |||||||||||
| Contract Owners' Equity | |||||||||||||||||||
| Net assets from accumulation units | $ | 38,881 | $ | 20,565 | $ | 40,608 | $ | 10,423 | |||||||||||
| Net assets from contracts in payout | — | — | — | — | |||||||||||||||
| Total Net Assets | $ | 38,881 | $ | 20,565 | $ | 40,608 | $ | 10,423 | |||||||||||
The accompanying notes are an integral part of these financial statements.
E-22
This page is intentionally left blank.
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS
For the year ended December 31, 2021
| American Funds® Global Growth Division | American Funds® Global Small Capitalization Division | American Funds® Growth Division | American Funds® Growth-Income Division | American Funds® The Bond Fund of America Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 941 | $ | — | $ | 2,869,526 | $ | 8,744,880 | $ | 1,198,983 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 2,285 | 5,868,255 | 16,547,496 | 9,883,720 | 1,066,755 | ||||||||||||||||||
| Administrative charges | 285 | 905,413 | 2,335,066 | 1,471,198 | 175,697 | ||||||||||||||||||
| Total expenses | 2,570 | 6,773,668 | 18,882,562 | 11,354,918 | 1,242,452 | ||||||||||||||||||
| Net investment income (loss) | (1,629 | ) | (6,773,668 | ) | (16,013,036 | ) | (2,610,038 | ) | (43,469 | ) | |||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 13,900 | 10,744,781 | 172,711,317 | 7,855,697 | 3,473,654 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 22,327 | 26,853,169 | 97,510,269 | 43,927,541 | 288,641 | ||||||||||||||||||
| Net realized gains (losses) | 36,227 | 37,597,950 | 270,221,586 | 51,783,238 | 3,762,295 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | 6,284 | (4,521,614 | ) | (5,753,875 | ) | 111,065,267 | (5,273,900 | ) | |||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 42,511 | 33,076,336 | 264,467,711 | 162,848,505 | (1,511,605 | ) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 40,882 | $ | 26,302,668 | $ | 248,454,675 | $ | 160,238,467 | $ | (1,555,074 | ) | ||||||||||||
The accompanying notes are an integral part of these financial statements.
E-24
| BHFTI AB Global Dynamic Allocation Division | BHFTI Allspring Mid Cap Value Division | BHFTI American Funds® Balanced Allocation Division | BHFTI American Funds® Growth Allocation Division | BHFTI American Funds® Growth Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 2,668,777 | $ | 1,486 | $ | 9,519,093 | $ | 4,010,280 | $ | — | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 11,669,146 | 2,551 | 8,066,583 | 5,026,621 | 3,670,723 | ||||||||||||||||||
| Administrative charges | 2,985,721 | 588 | 1,940,570 | 1,162,954 | 901,083 | ||||||||||||||||||
| Total expenses | 14,654,867 | 3,139 | 10,007,153 | 6,189,575 | 4,571,806 | ||||||||||||||||||
| Net investment income (loss) | (11,986,090 | ) | (1,653 | ) | (488,060 | ) | (2,179,295 | ) | (4,571,806 | ) | |||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 68,007,809 | — | 27,106,507 | 15,822,871 | 25,923,757 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 31,078,486 | 7,808 | 21,603,301 | 13,215,276 | 36,537,674 | ||||||||||||||||||
| Net realized gains (losses) | 99,086,295 | 7,808 | 48,709,808 | 29,038,147 | 62,461,431 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | 4,345,270 | 51,434 | 34,664,966 | 39,648,497 | 8,656,989 | ||||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 103,431,565 | 59,242 | 83,374,774 | 68,686,644 | 71,118,420 | ||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 91,445,475 | $ | 57,589 | $ | 82,886,714 | $ | 66,507,349 | $ | 66,546,614 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-25
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2021
| BHFTI American Funds® Moderate Allocation Division | BHFTI BlackRock Global Tactical Strategies Division | BHFTI BlackRock High Yield Division | BHFTI Brighthouse Asset Allocation 100 Division | BHFTI Brighthouse Balanced Plus Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 11,735,455 | $ | 20,553,208 | $ | 16,384 | $ | 3,278,557 | $ | 80,143,287 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 7,659,392 | 14,813,306 | 4,108 | 2,740,510 | 34,004,200 | ||||||||||||||||||
| Administrative charges | 1,851,433 | 3,783,595 | 763 | 625,163 | 8,639,795 | ||||||||||||||||||
| Total expenses | 9,510,825 | 18,596,901 | 4,871 | 3,365,673 | 42,643,995 | ||||||||||||||||||
| Net investment income (loss) | 2,224,630 | 1,956,307 | 11,513 | (87,116 | ) | 37,499,292 | |||||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 25,900,928 | 58,164,182 | — | 20,211,054 | 117,807,800 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 14,461,683 | 16,775,160 | 7,440 | 5,940,394 | 57,900,720 | ||||||||||||||||||
| Net realized gains (losses) | 40,362,611 | 74,939,342 | 7,440 | 26,151,448 | 175,708,520 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | 18,466,990 | 46,237,837 | (2,913 | ) | 15,619,775 | (3,734,062 | ) | ||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 58,829,601 | 121,177,179 | 4,527 | 41,771,223 | 171,974,458 | ||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 61,054,231 | $ | 123,133,486 | $ | 16,040 | $ | 41,684,107 | $ | 209,473,750 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-26
| BHFTI Brighthouse Small Cap Value Division | BHFTI Brighthouse/ Aberdeen Emerging Markets Equity Division | BHFTI Brighthouse/ Eaton Vance Floating Rate Division | BHFTI Brighthouse/ Franklin Low Duration Total Return Division | BHFTI Brighthouse/ Templeton International Bond Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 164,251 | $ | 73,995 | $ | 635,526 | $ | 1,289,085 | $ | — | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 179,868 | 436,727 | 232,188 | 703,556 | 47,237 | ||||||||||||||||||
| Administrative charges | 49,252 | 109,741 | 50,111 | 164,047 | 11,933 | ||||||||||||||||||
| Total expenses | 229,120 | 546,468 | 282,299 | 867,603 | 59,170 | ||||||||||||||||||
| Net investment income (loss) | (64,869 | ) | (472,473 | ) | 353,227 | 421,482 | (59,170 | ) | |||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 8,878 | — | — | — | — | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 758,371 | 2,648,795 | (127,367 | ) | (438,431 | ) | (186,707 | ) | |||||||||||||||
| Net realized gains (losses) | 767,249 | 2,648,795 | (127,367 | ) | (438,431 | ) | (186,707 | ) | |||||||||||||||
| Change in unrealized gains (losses) on investments | 4,307,576 | (4,561,000 | ) | 179,559 | (656,790 | ) | (64,974 | ) | |||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 5,074,825 | (1,912,205 | ) | 52,192 | (1,095,221 | ) | (251,681 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 5,009,956 | $ | (2,384,678 | ) | $ | 405,419 | $ | (673,739 | ) | $ | (310,851 | ) | ||||||||||
The accompanying notes are an integral part of these financial statements.
E-27
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2021
| BHFTI Brighthouse/ Wellington Large Cap Research Division | BHFTI CBRE Global Real Estate Division | BHFTI Harris Oakmark International Division | BHFTI Invesco Balanced-Risk Allocation Division | BHFTI Invesco Comstock Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 7,182,954 | $ | 5,106,540 | $ | 2,661,780 | $ | 13,267,511 | $ | 315 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 9,261,146 | 1,844,253 | 4,187,132 | 4,338,615 | 278 | ||||||||||||||||||
| Administrative charges | 277,157 | 368,570 | 875,640 | 1,092,204 | 62 | ||||||||||||||||||
| Total expenses | 9,538,303 | 2,212,823 | 5,062,772 | 5,430,819 | 340 | ||||||||||||||||||
| Net investment income (loss) | (2,355,349 | ) | 2,893,717 | (2,400,992 | ) | 7,836,692 | (25 | ) | |||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 84,183,740 | — | — | 13,141,554 | — | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 34,055,494 | 3,397,563 | 7,623,214 | 1,137,365 | 4,111 | ||||||||||||||||||
| Net realized gains (losses) | 118,239,234 | 3,397,563 | 7,623,214 | 14,278,919 | 4,111 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | 59,969,075 | 43,781,344 | 25,327,901 | 13,002,923 | 8,361 | ||||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 178,208,309 | 47,178,907 | 32,951,115 | 27,281,842 | 12,472 | ||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 175,852,960 | $ | 50,072,624 | $ | 30,550,123 | $ | 35,118,534 | $ | 12,447 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-28
| BHFTI Invesco Global Equity Division | BHFTI Invesco Small Cap Growth Division | BHFTI JPMorgan Core Bond Division | BHFTI JPMorgan Global Active Allocation Division | BHFTI JPMorgan Small Cap Value Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 161,794 | $ | — | $ | 1,716,639 | $ | 3,665,242 | $ | 188,597 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 3,176,708 | 800,329 | 778,679 | 7,444,982 | 197,885 | ||||||||||||||||||
| Administrative charges | 407,313 | 149,101 | 185,640 | 1,888,681 | 48,922 | ||||||||||||||||||
| Total expenses | 3,584,021 | 949,430 | 964,319 | 9,333,663 | 246,807 | ||||||||||||||||||
| Net investment income (loss) | (3,422,227 | ) | (949,430 | ) | 752,320 | (5,668,421 | ) | (58,210 | ) | ||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 11,798,525 | 14,563,254 | — | 40,206,594 | 495,150 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 18,481,509 | 2,540,840 | 5,729 | 18,164,138 | 1,698,482 | ||||||||||||||||||
| Net realized gains (losses) | 30,280,034 | 17,104,094 | 5,729 | 58,370,732 | 2,193,632 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | 11,623,772 | (12,066,264 | ) | (2,825,618 | ) | 7,598,360 | 3,164,275 | ||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 41,903,806 | 5,037,830 | (2,819,889 | ) | 65,969,092 | 5,357,907 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 38,481,579 | $ | 4,088,400 | $ | (2,067,569 | ) | $ | 60,300,671 | $ | 5,299,697 | ||||||||||||
The accompanying notes are an integral part of these financial statements.
E-29
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2021
| BHFTI Loomis Sayles Global Allocation Division | BHFTI Loomis Sayles Growth Division | BHFTI MetLife Multi-Index Targeted Risk Division | BHFTI MFS® Research International Division | BHFTI Morgan Stanley Discovery Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 888,539 | $ | 167,673 | $ | 14,161,134 | $ | 1,755,926 | $ | — | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 1,094,594 | 5,066,196 | 7,888,252 | 1,784,570 | 10,349,163 | ||||||||||||||||||
| Administrative charges | 239,172 | 1,040,158 | 2,006,966 | 339,498 | 550,332 | ||||||||||||||||||
| Total expenses | 1,333,766 | 6,106,354 | 9,895,218 | 2,124,068 | 10,899,495 | ||||||||||||||||||
| Net investment income (loss) | (445,227 | ) | (5,938,681 | ) | 4,265,916 | (368,142 | ) | (10,899,495 | ) | ||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 10,407,074 | 15,712,980 | 29,647,991 | 6,238,604 | 424,773,328 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 3,931,230 | 14,679,408 | 13,140,354 | 5,960,729 | 60,197,574 | ||||||||||||||||||
| Net realized gains (losses) | 14,338,304 | 30,392,388 | 42,788,345 | 12,199,333 | 484,970,902 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | (887,597 | ) | 52,736,767 | 17,460,716 | 5,641,144 | (566,916,409 | ) | ||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 13,450,707 | 83,129,155 | 60,249,061 | 17,840,477 | (81,945,507 | ) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 13,005,480 | $ | 77,190,474 | $ | 64,514,977 | $ | 17,472,335 | $ | (92,845,002 | ) | ||||||||||||
The accompanying notes are an integral part of these financial statements.
E-30
| BHFTI PanAgora Global Diversified Risk Division | BHFTI PanAgora Global Diversified Risk II Division | BHFTI PIMCO Inflation Protected Bond Division | BHFTI PIMCO Total Return Division | BHFTI Schroders Global Multi-Asset Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | — | $ | — | $ | 2,474,716 | $ | 12,857,212 | $ | 2,179,674 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 957,928 | 8,945,144 | 3,434,302 | 7,175,027 | 6,660,296 | ||||||||||||||||||
| Administrative charges | 243,039 | 2,280,277 | 786,232 | 1,568,543 | 1,686,981 | ||||||||||||||||||
| Total expenses | 1,200,967 | 11,225,421 | 4,220,534 | 8,743,570 | 8,347,277 | ||||||||||||||||||
| Net investment income (loss) | (1,200,967 | ) | (11,225,421 | ) | (1,745,818 | ) | 4,113,642 | (6,167,603 | ) | ||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 7,700,273 | 36,839,925 | — | 29,661,251 | 1,245,528 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 1,270,800 | (22,508,293 | ) | 922,394 | (682,673 | ) | 13,549,099 | ||||||||||||||||
| Net realized gains (losses) | 8,971,073 | 14,331,632 | 922,394 | 28,978,578 | 14,794,627 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | (2,924,407 | ) | 94,475,129 | 14,552,033 | (51,522,591 | ) | 56,009,498 | ||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 6,046,666 | 108,806,761 | 15,474,427 | (22,544,013 | ) | 70,804,125 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 4,845,699 | $ | 97,581,340 | $ | 13,728,609 | $ | (18,430,371 | ) | $ | 64,636,522 | ||||||||||||
The accompanying notes are an integral part of these financial statements.
E-31
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2021
| BHFTI SSGA Growth and Income ETF Division | BHFTI SSGA Growth ETF Division | BHFTI T. Rowe Price Large Cap Value Division | BHFTI T. Rowe Price Mid Cap Growth Division | BHFTI TCW Core Fixed Income Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 11,304,880 | $ | 1,936,127 | $ | 13,020 | $ | — | $ | 624 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 6,295,713 | 1,330,690 | 6,509 | 5,251,887 | 511 | ||||||||||||||||||
| Administrative charges | 1,572,236 | 313,959 | 1,252 | 1,013,040 | 92 | ||||||||||||||||||
| Total expenses | 7,867,949 | 1,644,649 | 7,761 | 6,264,927 | 603 | ||||||||||||||||||
| Net investment income (loss) | 3,436,931 | 291,478 | 5,259 | (6,264,927 | ) | 21 | |||||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 28,769,612 | 6,968,254 | 799 | 49,015,296 | 2,093 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 15,975,316 | 3,697,697 | 19,722 | 14,891,106 | 393 | ||||||||||||||||||
| Net realized gains (losses) | 44,744,928 | 10,665,951 | 20,521 | 63,906,402 | 2,486 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | 24,346,137 | 9,091,896 | 132,856 | 7,170,398 | (3,857 | ) | |||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 69,091,065 | 19,757,847 | 153,377 | 71,076,800 | (1,371 | ) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 72,527,996 | $ | 20,049,325 | $ | 158,636 | $ | 64,811,873 | $ | (1,350 | ) | ||||||||||||
The accompanying notes are an integral part of these financial statements.
E-32
| BHFTI Victory Sycamore Mid Cap Value Division | BHFTI Western Asset Management Government Income Division | BHFTII Baillie Gifford International Stock Division | BHFTII BlackRock Bond Income Division | BHFTII BlackRock Capital Appreciation Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 4,565,115 | $ | 7,716,440 | $ | 1,192,090 | $ | 9,947,304 | $ | — | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 4,178,170 | 3,577,875 | 1,575,549 | 4,057,367 | 2,421,091 | ||||||||||||||||||
| Administrative charges | 662,850 | 900,008 | 150,445 | 704,468 | 548,482 | ||||||||||||||||||
| Total expenses | 4,841,020 | 4,477,883 | 1,725,994 | 4,761,835 | 2,969,573 | ||||||||||||||||||
| Net investment income (loss) | (275,905 | ) | 3,238,557 | (533,904 | ) | 5,185,469 | (2,969,573 | ) | |||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 10,432,495 | — | 13,529,362 | 7,493,995 | 32,253,126 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 16,629,361 | 835,475 | 5,136,281 | 496,206 | 15,347,251 | ||||||||||||||||||
| Net realized gains (losses) | 27,061,856 | 835,475 | 18,665,643 | 7,990,201 | 47,600,377 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | 74,194,902 | (16,464,114 | ) | (20,382,097 | ) | (20,344,177 | ) | (2,918,447 | ) | ||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 101,256,758 | (15,628,639 | ) | (1,716,454 | ) | (12,353,976 | ) | 44,681,930 | |||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 100,980,853 | $ | (12,390,082 | ) | $ | (2,250,358 | ) | $ | (7,168,507 | ) | $ | 41,712,357 | ||||||||||
The accompanying notes are an integral part of these financial statements.
E-33
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2021
| BHFTII BlackRock Ultra-Short Term Bond Division | BHFTII Brighthouse Asset Allocation 20 Division | BHFTII Brighthouse Asset Allocation 40 Division | BHFTII Brighthouse Asset Allocation 60 Division | BHFTII Brighthouse Asset Allocation 80 Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 43,228 | $ | 8,909,496 | $ | 22,934,654 | $ | 66,204,977 | $ | 29,916,846 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 449,399 | 3,080,800 | 8,781,497 | 31,407,242 | 17,994,604 | ||||||||||||||||||
| Administrative charges | 106,797 | 700,644 | 2,018,291 | 7,357,546 | 4,022,224 | ||||||||||||||||||
| Total expenses | 556,196 | 3,781,444 | 10,799,788 | 38,764,788 | 22,016,828 | ||||||||||||||||||
| Net investment income (loss) | (512,968 | ) | 5,128,052 | 12,134,866 | 27,440,189 | 7,900,018 | |||||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | — | 3,755,677 | 30,121,956 | 162,426,491 | 114,833,017 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | (183,551 | ) | 2,218,508 | 10,242,556 | 60,805,537 | 41,294,463 | |||||||||||||||||
| Net realized gains (losses) | (183,551 | ) | 5,974,185 | 40,364,512 | 223,232,028 | 156,127,480 | |||||||||||||||||
| Change in unrealized gains (losses) on investments | (35,833 | ) | (3,976,725 | ) | (1,465,683 | ) | 35,631,578 | 57,221,877 | |||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | (219,384 | ) | 1,997,460 | 38,898,829 | 258,863,606 | 213,349,357 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | (732,352 | ) | $ | 7,125,512 | $ | 51,033,695 | $ | 286,303,795 | $ | 221,249,375 | ||||||||||||
The accompanying notes are an integral part of these financial statements.
E-34
| BHFTII Brighthouse/ Artisan Mid Cap Value Division | BHFTII Brighthouse/ Dimensional International Small Company Division | BHFTII Brighthouse/ Wellington Balanced Division | BHFTII Brighthouse/ Wellington Core Equity Opportunities Division | BHFTII Frontier Mid Cap Growth Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 1,622,908 | $ | 108,759 | $ | 11,309,178 | $ | 6,460,671 | $ | — | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 2,110,657 | 72,131 | 7,627,924 | 5,388,132 | 7,072,172 | ||||||||||||||||||
| Administrative charges | 326,905 | 17,732 | 213,856 | 1,067,729 | 206,300 | ||||||||||||||||||
| Total expenses | 2,437,562 | 89,863 | 7,841,780 | 6,455,861 | 7,278,472 | ||||||||||||||||||
| Net investment income (loss) | (814,654 | ) | 18,896 | 3,467,398 | 4,810 | (7,278,472 | ) | ||||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 4,211,596 | 362,013 | 53,652,908 | 26,766,295 | 79,134,650 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 7,581,903 | 39,958 | 13,588,881 | 16,317,546 | 22,178,414 | ||||||||||||||||||
| Net realized gains (losses) | 11,793,499 | 401,971 | 67,241,789 | 43,083,841 | 101,313,064 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | 31,811,752 | 421,698 | 3,157,671 | 62,915,404 | (20,345,195 | ) | |||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 43,605,251 | 823,669 | 70,399,460 | 105,999,245 | 80,967,869 | ||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 42,790,597 | $ | 842,565 | $ | 73,866,858 | $ | 106,004,055 | $ | 73,689,397 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-35
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2021
| BHFTII Jennison Growth Division | BHFTII Loomis Sayles Small Cap Core Division | BHFTII Loomis Sayles Small Cap Growth Division | BHFTII MetLife Aggregate Bond Index Division | BHFTII MetLife Mid Cap Stock Index Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | — | $ | 42,249 | $ | — | $ | 22,383,890 | $ | 5,022,410 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 3,083,461 | 1,729,403 | 715,920 | 9,701,136 | 5,635,018 | ||||||||||||||||||
| Administrative charges | 563,251 | 328,468 | 109,679 | 1,987,939 | 952,310 | ||||||||||||||||||
| Total expenses | 3,646,712 | 2,057,871 | 825,599 | 11,689,075 | 6,587,328 | ||||||||||||||||||
| Net investment income (loss) | (3,646,712 | ) | (2,015,622 | ) | (825,599 | ) | 10,694,815 | (1,564,918 | ) | ||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 61,866,490 | 10,363,391 | 6,473,436 | — | 25,438,362 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 17,608,377 | 5,561,074 | 2,083,641 | 748,264 | 27,190,618 | ||||||||||||||||||
| Net realized gains (losses) | 79,474,867 | 15,924,465 | 8,557,077 | 748,264 | 52,628,980 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | (33,158,872 | ) | 16,360,102 | (2,231,635 | ) | (43,389,208 | ) | 57,382,024 | |||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 46,315,995 | 32,284,567 | 6,325,442 | (42,640,944 | ) | 110,011,004 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 42,669,283 | $ | 30,268,945 | $ | 5,499,843 | $ | (31,946,129 | ) | $ | 108,446,086 | ||||||||||||
The accompanying notes are an integral part of these financial statements.
E-36
| BHFTII MetLife MSCI EAFE® Index Division | BHFTII MetLife Russell 2000® Index Division | BHFTII MetLife Stock Index Division | BHFTII MFS® Total Return Division | BHFTII MFS® Value Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 7,655,266 | $ | 3,214,373 | $ | 48,609,861 | $ | 2,093,482 | $ | 9,293,989 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 4,898,534 | 3,904,287 | 37,548,662 | 1,222,467 | 7,006,332 | ||||||||||||||||||
| Administrative charges | 906,609 | 591,840 | 3,807,606 | 231,335 | 1,273,211 | ||||||||||||||||||
| Total expenses | 5,805,143 | 4,496,127 | 41,356,268 | 1,453,802 | 8,279,543 | ||||||||||||||||||
| Net investment income (loss) | 1,850,123 | (1,281,754 | ) | 7,253,593 | 639,680 | 1,014,446 | |||||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | — | 18,544,421 | 209,365,065 | 7,217,619 | 6,844,131 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 13,841,508 | 20,409,537 | 209,479,640 | 2,663,971 | 18,042,318 | ||||||||||||||||||
| Net realized gains (losses) | 13,841,508 | 38,953,958 | 418,844,705 | 9,881,590 | 24,886,449 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | 25,722,402 | 6,739,194 | 364,436,767 | 3,825,226 | 114,170,286 | ||||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 39,563,910 | 45,693,152 | 783,281,472 | 13,706,816 | 139,056,735 | ||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 41,414,033 | $ | 44,411,398 | $ | 790,535,065 | $ | 14,346,496 | $ | 140,071,181 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-37
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2021
| BHFTII Neuberger Berman Genesis Division | BHFTII T. Rowe Price Large Cap Growth Division | BHFTII T. Rowe Price Small Cap Growth Division | BHFTII Van Eck Global Natural Resources Division | BHFTII Western Asset Management Strategic Bond Opportunities Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 113,085 | $ | — | $ | 79,886 | $ | 254,620 | $ | 14,339,276 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 3,570,953 | 8,274,790 | 5,356,769 | 252,038 | 4,186,559 | ||||||||||||||||||
| Administrative charges | 437,293 | 1,326,017 | 643,726 | 64,635 | 819,401 | ||||||||||||||||||
| Total expenses | 4,008,246 | 9,600,807 | 6,000,495 | 316,673 | 5,005,960 | ||||||||||||||||||
| Net investment income (loss) | (3,895,161 | ) | (9,600,807 | ) | (5,920,609 | ) | (62,053 | ) | 9,333,316 | ||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 20,538,549 | 85,314,907 | 53,416,072 | — | — | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 15,742,859 | 38,538,229 | 19,938,942 | 1,214,701 | 2,546,268 | ||||||||||||||||||
| Net realized gains (losses) | 36,281,408 | 123,853,136 | 73,355,014 | 1,214,701 | 2,546,268 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | 17,247,271 | 17,425,080 | (19,755,734 | ) | 3,395,487 | (6,497,701 | ) | ||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 53,528,679 | 141,278,216 | 53,599,280 | 4,610,188 | (3,951,433 | ) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 49,633,518 | $ | 131,677,409 | $ | 47,678,671 | $ | 4,548,135 | $ | 5,381,883 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-38
| BHFTII Western Asset Management U.S. Government Division | BlackRock Global Allocation V.I. Division | Calvert VP SRI Balanced Division | Calvert VP SRI Mid Cap Division | Delaware VIP® Small Cap Value Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 3,337,551 | $ | 366 | $ | 670,443 | $ | 15,197 | $ | 7 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 1,395,318 | 535 | 625,528 | 73,930 | 5 | ||||||||||||||||||
| Administrative charges | 280,646 | 133 | 53,150 | — | — | ||||||||||||||||||
| Total expenses | 1,675,964 | 668 | 678,678 | 73,930 | 5 | ||||||||||||||||||
| Net investment income (loss) | 1,661,587 | (302 | ) | (8,235 | ) | (58,733 | ) | 2 | |||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | — | 4,027 | 1,730,242 | 327,648 | — | ||||||||||||||||||
| Realized gains (losses) on sale of investments | (400,867 | ) | 12,885 | 1,734,203 | 153,751 | 2 | |||||||||||||||||
| Net realized gains (losses) | (400,867 | ) | 16,912 | 3,464,445 | 481,399 | 2 | |||||||||||||||||
| Change in unrealized gains (losses) on investments | (5,249,706 | ) | (12,508 | ) | 4,039,572 | 587,387 | 225 | ||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | (5,650,573 | ) | 4,404 | 7,504,017 | 1,068,786 | 227 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | (3,988,986 | ) | $ | 4,102 | $ | 7,495,782 | $ | 1,010,053 | $ | 229 | ||||||||||||
The accompanying notes are an integral part of these financial statements.
E-39
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2021
| Fidelity® VIP Contrafund® Division | Fidelity® VIP Equity-Income Division | Fidelity® VIP Freedom 2020 Division | Fidelity® VIP Freedom 2025 Division | Fidelity® VIP Freedom 2030 Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 257 | $ | 1,317,479 | $ | 36,986 | $ | 71,053 | $ | 75,503 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 7,780 | 662,693 | 42,369 | 79,249 | 71,716 | ||||||||||||||||||
| Administrative charges | 934 | 47,401 | 1,069 | 7,640 | 8,286 | ||||||||||||||||||
| Total expenses | 8,714 | 710,094 | 43,438 | 86,889 | 80,002 | ||||||||||||||||||
| Net investment income (loss) | (8,457 | ) | 607,385 | (6,452 | ) | (15,836 | ) | (4,499 | ) | ||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 116,349 | 7,689,754 | 272,877 | 287,398 | 335,093 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 47,593 | 1,195,380 | 149,674 | 349,471 | 317,728 | ||||||||||||||||||
| Net realized gains (losses) | 163,942 | 8,885,134 | 422,551 | 636,869 | 652,821 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | 65,649 | 5,092,373 | (89,647 | ) | 87,169 | 111,660 | |||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 229,591 | 13,977,507 | 332,904 | 724,038 | 764,481 | ||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 221,134 | $ | 14,584,892 | $ | 326,452 | $ | 708,202 | $ | 759,982 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-40
| Fidelity® VIP Freedom 2035 Division | Fidelity® VIP Freedom 2040 Division | Fidelity® VIP Freedom 2045 Division | Fidelity® VIP Freedom 2050 Division | Fidelity® VIP FundsManager 50% Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 35,804 | $ | 19,975 | $ | 19,596 | $ | 44,975 | $ | 2,720,595 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 32,204 | 21,076 | 23,227 | 52,323 | 4,771,534 | ||||||||||||||||||
| Administrative charges | 5,139 | 1,581 | 2,674 | 4,587 | — | ||||||||||||||||||
| Total expenses | 37,343 | 22,657 | 25,901 | 56,910 | 4,771,534 | ||||||||||||||||||
| Net investment income (loss) | (1,539 | ) | (2,682 | ) | (6,305 | ) | (11,935 | ) | (2,050,939 | ) | |||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 120,437 | 101,081 | 92,280 | 199,851 | 4,207,943 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 100,130 | 172,991 | 24,586 | 195,700 | 4,476,283 | ||||||||||||||||||
| Net realized gains (losses) | 220,567 | 274,072 | 116,866 | 395,551 | 8,684,226 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | 169,661 | 33,778 | 238,268 | 383,767 | 11,880,662 | ||||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 390,228 | 307,850 | 355,134 | 779,318 | 20,564,888 | ||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 388,689 | $ | 305,168 | $ | 348,829 | $ | 767,383 | $ | 18,513,949 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
E-41
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2021
| Fidelity® VIP FundsManager 60% Division | Fidelity® VIP Government Money Market Division | Fidelity® VIP Growth Division | Fidelity® VIP Investment Grade Bond Division | Fidelity® VIP Mid Cap Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 2,671,005 | $ | 536 | $ | — | $ | 185,492 | $ | 1,869 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 4,802,154 | 50,684 | 1,270,908 | 86,882 | 4,192 | ||||||||||||||||||
| Administrative charges | — | — | — | — | 523 | ||||||||||||||||||
| Total expenses | 4,802,154 | 50,684 | 1,270,908 | 86,882 | 4,715 | ||||||||||||||||||
| Net investment income (loss) | (2,131,149 | ) | (50,148 | ) | (1,270,908 | ) | 98,610 | (2,846 | ) | ||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 4,103,798 | — | 27,768,689 | 247,956 | 85,042 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 4,699,035 | — | 5,855,907 | 59,376 | 14,876 | ||||||||||||||||||
| Net realized gains (losses) | 8,802,833 | — | 33,624,596 | 307,332 | 99,918 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | 17,165,175 | — | (5,741,106 | ) | (553,430 | ) | 15,549 | ||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 25,968,008 | — | 27,883,490 | (246,098 | ) | 115,467 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 23,836,859 | $ | (50,148 | ) | $ | 26,612,582 | $ | (147,488 | ) | $ | 112,621 | |||||||||||
The accompanying notes are an integral part of these financial statements.
E-42
| FTVIPT Templeton Developing Markets VIP Division | FTVIPT Templeton Foreign VIP Division | Janus Henderson Enterprise Division | LMPVET ClearBridge Variable Appreciation Division | LMPVET ClearBridge Variable Dividend Strategy Division | |||||||||||||||||||
| Investment Income: | |||||||||||||||||||||||
| Dividends | $ | 479 | $ | 4 | $ | 371 | $ | 351 | $ | 1,445 | |||||||||||||
| Expenses: | |||||||||||||||||||||||
| Mortality and expense risk and other charges | 437 | 1 | 1,241 | 444 | 764 | ||||||||||||||||||
| Administrative charges | 54 | — | 154 | 54 | 95 | ||||||||||||||||||
| Total expenses | 491 | 1 | 1,395 | 498 | 859 | ||||||||||||||||||
| Net investment income (loss) | (12 | ) | 3 | (1,024 | ) | (147 | ) | 586 | |||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||
| Realized gain distributions | 1,099 | — | 13,987 | 2,108 | 7,280 | ||||||||||||||||||
| Realized gains (losses) on sale of investments | 840 | — | 9,066 | 1,643 | 2,592 | ||||||||||||||||||
| Net realized gains (losses) | 1,939 | — | 23,053 | 3,751 | 9,872 | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | (5,328 | ) | (19 | ) | 349 | 7,560 | 11,694 | ||||||||||||||||
| Net realized and change in unrealized gains (losses) on investments | (3,389 | ) | (19 | ) | 23,402 | 11,311 | 21,566 | ||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | (3,401 | ) | $ | (16 | ) | $ | 22,378 | $ | 11,164 | $ | 22,152 | |||||||||||
The accompanying notes are an integral part of these financial statements.
E-43
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Concluded)
For the year ended December 31, 2021
| LMPVET ClearBridge Variable Large Cap Growth Division | LMPVET ClearBridge Variable Small Cap Growth Division | LMPVIT Western Asset Core Plus Division | Morgan Stanley VIF Global Infrastructure Division | ||||||||||||||||
| Investment Income: | |||||||||||||||||||
| Dividends | $ | — | $ | — | $ | 11 | $ | 1,447 | |||||||||||
| Expenses: | |||||||||||||||||||
| Mortality and expense risk and other charges | 4,414 | 500 | 233 | 651 | |||||||||||||||
| Administrative charges | 530 | 58 | 28 | 155 | |||||||||||||||
| Total expenses | 4,944 | 558 | 261 | 806 | |||||||||||||||
| Net investment income (loss) | (4,944 | ) | (558 | ) | (250 | ) | 641 | ||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||
| Realized gain distributions | 33,681 | 7,062 | — | 2,237 | |||||||||||||||
| Realized gains (losses) on sale of investments | 30,844 | 5,150 | 1,615 | 886 | |||||||||||||||
| Net realized gains (losses) | 64,525 | 12,212 | 1,615 | 3,123 | |||||||||||||||
| Change in unrealized gains (losses) on investments | 40,824 | (4,841 | ) | (2,362 | ) | 4,095 | |||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 105,349 | 7,371 | (747 | ) | 7,218 | ||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 100,405 | $ | 6,813 | $ | (997 | ) | $ | 7,859 | ||||||||||
The accompanying notes are an integral part of these financial statements.
E-44
| PIMCO VIT CommodityRealReturn® Strategy Division | PIMCO VIT Dynamic Bond Division | PIMCO VIT Emerging Markets Bond Division | TAP 1919 Variable Socially Responsive Balanced Division | ||||||||||||||||
| Investment Income: | |||||||||||||||||||
| Dividends | $ | 1,483 | $ | 425 | $ | 1,727 | $ | 34 | |||||||||||
| Expenses: | |||||||||||||||||||
| Mortality and expense risk and other charges | 413 | 228 | 455 | 111 | |||||||||||||||
| Administrative charges | 90 | 57 | 107 | 13 | |||||||||||||||
| Total expenses | 503 | 285 | 562 | 124 | |||||||||||||||
| Net investment income (loss) | 980 | 140 | 1,165 | (90 | ) | ||||||||||||||
| Net Realized and Change in Unrealized Gains (Losses) on Investments: | |||||||||||||||||||
| Realized gain distributions | — | 371 | 112 | 946 | |||||||||||||||
| Realized gains (losses) on sale of investments | (87 | ) | 700 | 171 | 5,352 | ||||||||||||||
| Net realized gains (losses) | (87 | ) | 1,071 | 283 | 6,298 | ||||||||||||||
| Change in unrealized gains (losses) on investments | 9,269 | (1,103 | ) | (3,306 | ) | (4,873 | ) | ||||||||||||
| Net realized and change in unrealized gains (losses) on investments | 9,182 | (32 | ) | (3,023 | ) | 1,425 | |||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 10,162 | $ | 108 | $ | (1,858 | ) | $ | 1,335 | ||||||||||
The accompanying notes are an integral part of these financial statements.
E-45
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended December 31, 2021 and 2020
| American Funds® Global Growth Division | American Funds® Global Small Capitalization Division | American Funds® Growth Division | American Funds® Growth-Income Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | (1,629 | ) | $ | (1,310 | ) | $ | (6,773,668 | ) | $ | (5,113,939 | ) | $ | (16,013,036 | ) | $ | (11,753,513 | ) | $ | (2,610,038 | ) | $ | (602,616 | ) | |||||||||||
| Net realized gains (losses) | 36,227 | 14,204 | 37,597,950 | 40,401,533 | 270,221,586 | 90,497,706 | 51,783,238 | 35,564,519 | |||||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 6,284 | 52,453 | (4,521,614 | ) | 72,689,737 | (5,753,875 | ) | 376,078,166 | 111,065,267 | 46,266,465 | |||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 40,882 | 65,347 | 26,302,668 | 107,977,331 | 248,454,675 | 454,822,359 | 160,238,467 | 81,228,368 | |||||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 70 | 2,146 | 4,384,060 | 4,598,544 | 11,778,445 | 11,244,114 | 6,504,223 | 6,816,775 | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | (6,783 | ) | (19,283 | ) | (6,469,791 | ) | (32,708,047 | ) | (37,841,541 | ) | (87,262,854 | ) | (25,097,291 | ) | (14,906,107 | ) | |||||||||||||||||||
| Contract charges | — | — | (1,534,473 | ) | (1,630,583 | ) | (2,684,626 | ) | (2,718,925 | ) | (2,276,995 | ) | (2,416,491 | ) | |||||||||||||||||||||
| Transfers for Contract benefits and terminations | (42,772 | ) | (9,375 | ) | (54,478,703 | ) | (40,418,656 | ) | (157,236,091 | ) | (102,227,815 | ) | (96,566,881 | ) | (71,891,597 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (49,485 | ) | (26,512 | ) | (58,098,907 | ) | (70,158,742 | ) | (185,983,813 | ) | (180,965,480 | ) | (117,436,944 | ) | (82,397,420 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets | (8,603 | ) | 38,835 | (31,796,239 | ) | 37,818,589 | 62,470,862 | 273,856,879 | 42,801,523 | (1,169,052 | ) | ||||||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 281,770 | 242,935 | 474,942,195 | 437,123,606 | 1,297,004,971 | 1,023,148,092 | 766,106,526 | 767,275,578 | |||||||||||||||||||||||||||
| End of year | $ | 273,167 | $ | 281,770 | $ | 443,145,956 | $ | 474,942,195 | $ | 1,359,475,833 | $ | 1,297,004,971 | $ | 808,908,049 | $ | 766,106,526 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-46
| American Funds® The Bond Fund of America Division | BHFTI AB Global Dynamic Allocation Division | BHFTI Allspring Mid Cap Value Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | (43,469 | ) | $ | 575,154 | $ | (11,986,090 | ) | $ | 6,509,295 | $ | (1,653 | ) | $ | (1,207 | ) | |||||||||||
| Net realized gains (losses) | 3,762,295 | 1,319,071 | 99,086,295 | 97,608,961 | 7,808 | 5,226 | |||||||||||||||||||||
| Change in unrealized gains (losses) on investments | (5,273,900 | ) | 4,226,664 | 4,345,270 | (51,728,783 | ) | 51,434 | (20,151 | ) | ||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (1,555,074 | ) | 6,120,889 | 91,445,475 | 52,389,473 | 57,589 | (16,132 | ) | |||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 968,357 | 895,837 | 889,078 | 1,223,748 | — | — | |||||||||||||||||||||
| Net transfers (including fixed account) | 5,831,177 | 12,047,508 | (18,923,741 | ) | (27,350,237 | ) | (13,399 | ) | (22,339 | ) | |||||||||||||||||
| Contract charges | (356,099 | ) | (377,842 | ) | (17,476,412 | ) | (18,779,759 | ) | (8 | ) | (7 | ) | |||||||||||||||
| Transfers for Contract benefits and terminations | (9,115,497 | ) | (8,092,059 | ) | (142,695,787 | ) | (119,431,482 | ) | (25,523 | ) | (100,512 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (2,672,062 | ) | 4,473,444 | (178,206,862 | ) | (164,337,730 | ) | (38,930 | ) | (122,858 | ) | ||||||||||||||||
| Net increase (decrease) in net assets | (4,227,136 | ) | 10,594,333 | (86,761,387 | ) | (111,948,257 | ) | 18,659 | (138,990 | ) | |||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 87,818,399 | 77,224,066 | 1,236,443,892 | 1,348,392,149 | 229,968 | 368,958 | |||||||||||||||||||||
| End of year | $ | 83,591,263 | $ | 87,818,399 | $ | 1,149,682,505 | $ | 1,236,443,892 | $ | 248,627 | $ | 229,968 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-47
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| BHFTI American Funds® Balanced Allocation Division | BHFTI American Funds® Growth Allocation Division | BHFTI American Funds® Growth Division | BHFTI American Funds® Moderate Allocation Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | (488,060 | ) | $ | 3,665,433 | $ | (2,179,295 | ) | $ | 1,324,203 | $ | (4,571,806 | ) | $ | (1,430,361 | ) | $ | 2,224,630 | $ | 4,770,097 | |||||||||||||||
| Net realized gains (losses) | 48,709,808 | 48,763,745 | 29,038,147 | 34,446,052 | 62,461,431 | 52,435,070 | 40,362,611 | 37,598,807 | |||||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 34,664,966 | 48,641,023 | 39,648,497 | 26,639,362 | 8,656,989 | 85,040,883 | 18,466,990 | 38,610,347 | |||||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 82,886,714 | 101,070,201 | 66,507,349 | 62,409,617 | 66,546,614 | 136,045,592 | 61,054,231 | 80,979,251 | |||||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 4,160,842 | 4,583,892 | 5,642,241 | 6,285,668 | 773,020 | 625,840 | 4,974,620 | 4,670,913 | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | 6,173,459 | (3,582,796 | ) | 1,959,261 | (6,917,640 | ) | (33,200,207 | ) | (55,639,339 | ) | (7,291,973 | ) | (14,774,898 | ) | |||||||||||||||||||||
| Contract charges | (7,078,783 | ) | (7,516,391 | ) | (3,647,278 | ) | (3,655,876 | ) | (2,232,086 | ) | (2,424,796 | ) | (7,137,150 | ) | (7,562,742 | ) | |||||||||||||||||||
| Transfers for Contract benefits and terminations | (107,294,219 | ) | (81,669,105 | ) | (41,220,457 | ) | (35,928,398 | ) | (61,386,885 | ) | (37,847,257 | ) | (91,595,518 | ) | (70,958,218 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (104,038,701 | ) | (88,184,400 | ) | (37,266,233 | ) | (40,216,246 | ) | (96,046,158 | ) | (95,285,552 | ) | (101,050,021 | ) | (88,624,945 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets | (21,151,987 | ) | 12,885,801 | 29,241,116 | 22,193,371 | (29,499,544 | ) | 40,760,040 | (39,995,790 | ) | (7,645,694 | ) | |||||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 813,811,656 | 800,925,855 | 473,694,389 | 451,501,018 | 374,416,489 | 333,656,449 | 778,574,010 | 786,219,704 | |||||||||||||||||||||||||||
| End of year | $ | 792,659,669 | $ | 813,811,656 | $ | 502,935,505 | $ | 473,694,389 | $ | 344,916,945 | $ | 374,416,489 | $ | 738,578,220 | $ | 778,574,010 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-48
| BHFTI BlackRock Global Tactical Strategies Division | BHFTI BlackRock High Yield Division | BHFTI Brighthouse Asset Allocation 100 Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | 1,956,307 | $ | 5,205,795 | $ | 11,513 | $ | 17,330 | $ | (87,116 | ) | $ | 61,550 | ||||||||||||||
| Net realized gains (losses) | 74,939,342 | 135,967,798 | 7,440 | (377 | ) | 26,151,448 | 23,637,058 | ||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 46,237,837 | (104,410,629 | ) | (2,913 | ) | 8,720 | 15,619,775 | 13,805,803 | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 123,133,486 | 36,762,964 | 16,040 | 25,673 | 41,684,107 | 37,504,411 | |||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 1,538,484 | 1,403,679 | 38,463 | 13,502 | 6,280,007 | 6,301,266 | |||||||||||||||||||||
| Net transfers (including fixed account) | (23,066,241 | ) | (26,213,981 | ) | 16,856 | (11,996 | ) | 2,175,804 | (5,750,288 | ) | |||||||||||||||||
| Contract charges | (22,218,505 | ) | (23,572,409 | ) | (38 | ) | (46 | ) | (452,727 | ) | (449,482 | ) | |||||||||||||||
| Transfers for Contract benefits and terminations | (185,236,853 | ) | (152,122,933 | ) | (146,942 | ) | (26,914 | ) | (26,229,781 | ) | (20,527,629 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (228,983,115 | ) | (200,505,644 | ) | (91,661 | ) | (25,454 | ) | (18,226,697 | ) | (20,426,133 | ) | |||||||||||||||
| Net increase (decrease) in net assets | (105,849,629 | ) | (163,742,680 | ) | (75,621 | ) | 219 | 23,457,410 | 17,078,278 | ||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 1,562,480,869 | 1,726,223,549 | 449,845 | 449,626 | 254,598,524 | 237,520,246 | |||||||||||||||||||||
| End of year | $ | 1,456,631,240 | $ | 1,562,480,869 | $ | 374,224 | $ | 449,845 | $ | 278,055,934 | $ | 254,598,524 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-49
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| BHFTI Brighthouse Balanced Plus Division | BHFTI Brighthouse Small Cap Value Division | BHFTI Brighthouse/Aberdeen Emerging Markets Equity Division | BHFTI Brighthouse/Eaton Vance Floating Rate Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | 37,499,292 | $ | 37,824,508 | $ | (64,869 | ) | $ | 25,479 | $ | (472,473 | ) | $ | 345,742 | $ | 353,227 | $ | 714,272 | |||||||||||||||||
| Net realized gains (losses) | 175,708,520 | 365,952,100 | 767,249 | 408,319 | 2,648,795 | 1,846,979 | (127,367 | ) | (548,543 | ) | |||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | (3,734,062 | ) | (42,557,558 | ) | 4,307,576 | (359,019 | ) | (4,561,000 | ) | 8,426,457 | 179,559 | (395,946 | ) | ||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 209,473,750 | 361,219,050 | 5,009,956 | 74,779 | (2,384,678 | ) | 10,619,178 | 405,419 | (230,217 | ) | |||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 2,728,744 | 2,790,064 | 579,159 | 544,475 | 63,604 | 89,753 | 12,354 | 14,368 | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | 26,289,313 | 20,395,161 | (312,442 | ) | (133,290 | ) | 1,798,956 | (4,555,855 | ) | 3,190,664 | (3,359,284 | ) | |||||||||||||||||||||||
| Contract charges | (46,802,308 | ) | (48,811,289 | ) | (32,266 | ) | (29,261 | ) | (327,276 | ) | (362,761 | ) | (47,858 | ) | (55,567 | ) | |||||||||||||||||||
| Transfers for Contract benefits and terminations | (469,537,834 | ) | (373,686,666 | ) | (1,983,587 | ) | (1,287,166 | ) | (5,967,548 | ) | (5,225,570 | ) | (3,832,469 | ) | (3,214,956 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (487,322,085 | ) | (399,312,730 | ) | (1,749,136 | ) | (905,242 | ) | (4,432,264 | ) | (10,054,433 | ) | (677,309 | ) | (6,615,439 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets | (277,848,335 | ) | (38,093,680 | ) | 3,260,820 | (830,463 | ) | (6,816,942 | ) | 564,745 | (271,890 | ) | (6,845,656 | ) | |||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 3,572,331,763 | 3,610,425,443 | 17,064,278 | 17,894,741 | 47,234,562 | 46,669,817 | 19,938,279 | 26,783,935 | |||||||||||||||||||||||||||
| End of year | $ | 3,294,483,428 | $ | 3,572,331,763 | $ | 20,325,098 | $ | 17,064,278 | $ | 40,417,620 | $ | 47,234,562 | $ | 19,666,389 | $ | 19,938,279 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-50
| BHFTI Brighthouse/Franklin Low Duration Total Return Division | BHFTI Brighthouse/Templeton International Bond Division | BHFTI Brighthouse/Wellington Large Cap Research Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | 421,482 | $ | 1,447,805 | $ | (59,170 | ) | $ | 241,692 | $ | (2,355,349 | ) | $ | 773,455 | |||||||||||||
| Net realized gains (losses) | (438,431 | ) | (918,768 | ) | (186,707 | ) | (224,697 | ) | 118,239,234 | 62,203,560 | |||||||||||||||||
| Change in unrealized gains (losses) on investments | (656,790 | ) | (355,786 | ) | (64,974 | ) | (383,388 | ) | 59,969,075 | 77,864,713 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (673,739 | ) | 173,251 | (310,851 | ) | (366,393 | ) | 175,852,960 | 140,841,728 | ||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 295,461 | 314,851 | 2,056 | 6,460 | 5,185,785 | 4,594,596 | |||||||||||||||||||||
| Net transfers (including fixed account) | 10,882,137 | 3,263,677 | 752,411 | 637,384 | (16,272,541 | ) | (18,145,896 | ) | |||||||||||||||||||
| Contract charges | (507,036 | ) | (542,137 | ) | (48,579 | ) | (56,745 | ) | (511,886 | ) | (548,628 | ) | |||||||||||||||
| Transfers for Contract benefits and terminations | (10,714,329 | ) | (8,457,544 | ) | (775,098 | ) | (726,532 | ) | (80,876,968 | ) | (62,308,692 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (43,767 | ) | (5,421,153 | ) | (69,210 | ) | (139,433 | ) | (92,475,610 | ) | (76,408,620 | ) | |||||||||||||||
| Net increase (decrease) in net assets | (717,506 | ) | (5,247,902 | ) | (380,061 | ) | (505,826 | ) | 83,377,350 | 64,433,108 | |||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 68,394,975 | 73,642,877 | 4,944,012 | 5,449,838 | 805,727,887 | 741,294,779 | |||||||||||||||||||||
| End of year | $ | 67,677,469 | $ | 68,394,975 | $ | 4,563,951 | $ | 4,944,012 | $ | 889,105,237 | $ | 805,727,887 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-51
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| BHFTI CBRE Global Real Estate Division | BHFTI Harris Oakmark International Division | BHFTI Invesco Balanced-Risk Allocation Division | BHFTI Invesco Comstock Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | 2,893,717 | $ | 5,108,435 | $ | (2,400,992 | ) | $ | 7,382,828 | $ | 7,836,692 | $ | 17,702,686 | $ | (25 | ) | $ | 488 | |||||||||||||||||
| Net realized gains (losses) | 3,397,563 | 826,425 | 7,623,214 | (3,704,789 | ) | 14,278,919 | 16,565,236 | 4,111 | 969 | ||||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 43,781,344 | (16,050,338 | ) | 25,327,901 | 21,388,533 | 13,002,923 | (230,264 | ) | 8,361 | (2,916 | ) | ||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 50,072,624 | (10,115,478 | ) | 30,550,123 | 25,066,572 | 35,118,534 | 34,037,658 | 12,447 | (1,459 | ) | |||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 1,921,238 | 2,090,238 | 4,863,466 | 5,510,753 | 493,345 | 531,775 | — | — | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | (13,280,159 | ) | 9,562,809 | (14,704,634 | ) | 2,024,962 | 14,427,934 | (8,978,169 | ) | (795 | ) | 3,796 | |||||||||||||||||||||||
| Contract charges | (628,088 | ) | (638,953 | ) | (1,871,494 | ) | (1,934,476 | ) | (6,053,372 | ) | (6,177,085 | ) | (4 | ) | (4 | ) | |||||||||||||||||||
| Transfers for Contract benefits and terminations | (21,077,633 | ) | (16,906,569 | ) | (57,538,748 | ) | (37,997,552 | ) | (59,700,559 | ) | (44,600,059 | ) | (48,361 | ) | (5,547 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (33,064,642 | ) | (5,892,475 | ) | (69,251,410 | ) | (32,396,313 | ) | (50,832,652 | ) | (59,223,538 | ) | (49,160 | ) | (1,755 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets | 17,007,982 | (16,007,953 | ) | (38,701,287 | ) | (7,329,741 | ) | (15,714,118 | ) | (25,185,880 | ) | (36,713 | ) | (3,214 | ) | ||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 166,520,792 | 182,528,745 | 418,249,872 | 425,579,613 | 436,657,575 | 461,843,455 | 54,656 | 57,870 | |||||||||||||||||||||||||||
| End of year | $ | 183,528,774 | $ | 166,520,792 | $ | 379,548,585 | $ | 418,249,872 | $ | 420,943,457 | $ | 436,657,575 | $ | 17,943 | $ | 54,656 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-52
| BHFTI Invesco Global Equity Division | BHFTI Invesco Small Cap Growth Division | BHFTI JPMorgan Core Bond Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | (3,422,227 | ) | $ | (1,145,075 | ) | $ | (949,430 | ) | $ | (648,300 | ) | $ | 752,320 | $ | 1,390,131 | |||||||||||
| Net realized gains (losses) | 30,280,034 | 12,463,468 | 17,104,094 | 2,631,682 | 5,729 | 286,305 | |||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 11,623,772 | 48,619,406 | (12,066,264 | ) | 23,163,417 | (2,825,618 | ) | 2,786,121 | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 38,481,579 | 59,937,799 | 4,088,400 | 25,146,799 | (2,067,569 | ) | 4,462,557 | ||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 2,908,913 | 2,611,477 | 965,301 | 639,070 | 129,710 | 124,347 | |||||||||||||||||||||
| Net transfers (including fixed account) | (5,398,969 | ) | (15,922,074 | ) | 6,582,050 | 76,156 | 11,192,168 | 7,591,087 | |||||||||||||||||||
| Contract charges | (890,031 | ) | (920,208 | ) | (217,108 | ) | (181,401 | ) | (567,074 | ) | (627,887 | ) | |||||||||||||||
| Transfers for Contract benefits and terminations | (29,958,489 | ) | (25,404,149 | ) | (9,570,530 | ) | (5,481,199 | ) | (12,899,709 | ) | (10,478,393 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (33,338,576 | ) | (39,634,954 | ) | (2,240,287 | ) | (4,947,374 | ) | (2,144,905 | ) | (3,390,846 | ) | |||||||||||||||
| Net increase (decrease) in net assets | 5,143,003 | 20,302,845 | 1,848,113 | 20,199,425 | (4,212,474 | ) | 1,071,711 | ||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 281,517,566 | 261,214,721 | 71,253,289 | 51,053,864 | 75,426,695 | 74,354,984 | |||||||||||||||||||||
| End of year | $ | 286,660,569 | $ | 281,517,566 | $ | 73,101,402 | $ | 71,253,289 | $ | 71,214,221 | $ | 75,426,695 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-53
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| BHFTI JPMorgan Global Active Allocation Division | BHFTI JPMorgan Small Cap Value Division | BHFTI Loomis Sayles Global Allocation Division | BHFTI Loomis Sayles Growth Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | (5,668,421 | ) | $ | 7,849,780 | $ | (58,210 | ) | $ | (8,978 | ) | $ | (445,227 | ) | $ | (562,889 | ) | $ | (5,938,681 | ) | $ | (2,723,129 | ) | ||||||||||||
| Net realized gains (losses) | 58,370,732 | 28,209,593 | 2,193,632 | (388,762 | ) | 14,338,304 | 9,681,945 | 30,392,388 | 172,776,482 | ||||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 7,598,360 | 39,125,127 | 3,164,275 | 1,812,380 | (887,597 | ) | 3,298,239 | 52,736,767 | (48,166,763 | ) | |||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 60,300,671 | 75,184,500 | 5,299,697 | 1,414,640 | 13,005,480 | 12,417,295 | 77,190,474 | 121,886,590 | |||||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 307,838 | 399,012 | 39,693 | 42,377 | 1,016,041 | 937,456 | 4,882,603 | 4,950,774 | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | 8,821,451 | (19,151,762 | ) | (1,854,829 | ) | 554,985 | (586,586 | ) | (2,676,303 | ) | (22,812,168 | ) | (54,502,976 | ) | |||||||||||||||||||||
| Contract charges | (10,296,459 | ) | (10,714,610 | ) | (128,589 | ) | (121,712 | ) | (597,016 | ) | (643,517 | ) | (2,357,725 | ) | (2,651,438 | ) | |||||||||||||||||||
| Transfers for Contract benefits and terminations | (101,844,532 | ) | (78,778,097 | ) | (3,027,241 | ) | (1,858,934 | ) | (12,324,900 | ) | (11,924,345 | ) | (62,603,735 | ) | (50,155,264 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (103,011,702 | ) | (108,245,457 | ) | (4,970,966 | ) | (1,383,284 | ) | (12,492,461 | ) | (14,306,709 | ) | (82,891,025 | ) | (102,358,904 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets | (42,711,031 | ) | (33,060,957 | ) | 328,731 | 31,356 | 513,019 | (1,889,414 | ) | (5,700,551 | ) | 19,527,686 | |||||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 770,639,003 | 803,699,960 | 18,968,277 | 18,936,921 | 105,220,386 | 107,109,800 | 486,587,823 | 467,060,137 | |||||||||||||||||||||||||||
| End of year | $ | 727,927,972 | $ | 770,639,003 | $ | 19,297,008 | $ | 18,968,277 | $ | 105,733,405 | $ | 105,220,386 | $ | 480,887,272 | $ | 486,587,823 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-54
| BHFTI MetLife Multi-Index Targeted Risk Division | BHFTI MFS® Research International Division | BHFTI Morgan Stanley Discovery Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | 4,265,916 | $ | 7,762,640 | $ | (368,142 | ) | $ | 1,688,540 | $ | (10,899,495 | ) | $ | (7,663,721 | ) | ||||||||||||
| Net realized gains (losses) | 42,788,345 | 78,086,344 | 12,199,333 | 6,958,191 | 484,970,902 | 153,359,181 | |||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 17,460,716 | (46,068,839 | ) | 5,641,144 | 9,411,537 | (566,916,409 | ) | 439,136,144 | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 64,514,977 | 39,780,145 | 17,472,335 | 18,058,268 | (92,845,002 | ) | 584,831,604 | ||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 421,644 | 637,273 | 2,186,314 | 1,932,064 | 6,512,207 | 5,635,010 | |||||||||||||||||||||
| Net transfers (including fixed account) | (6,552,982 | ) | (2,857,384 | ) | 938,504 | 455,816 | (12,261,899 | ) | (38,986,130 | ) | |||||||||||||||||
| Contract charges | (10,819,041 | ) | (11,532,770 | ) | (680,661 | ) | (722,941 | ) | (670,265 | ) | (618,806 | ) | |||||||||||||||
| Transfers for Contract benefits and terminations | (104,319,553 | ) | (79,072,598 | ) | (23,558,147 | ) | (15,477,356 | ) | (91,793,548 | ) | (54,419,213 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (121,269,932 | ) | (92,825,479 | ) | (21,113,990 | ) | (13,812,417 | ) | (98,213,505 | ) | (88,389,139 | ) | |||||||||||||||
| Net increase (decrease) in net assets | (56,754,955 | ) | (53,045,334 | ) | (3,641,655 | ) | 4,245,851 | (191,058,507 | ) | 496,442,465 | |||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 831,657,042 | 884,702,376 | 172,621,221 | 168,375,370 | 920,192,712 | 423,750,247 | |||||||||||||||||||||
| End of year | $ | 774,902,087 | $ | 831,657,042 | $ | 168,979,566 | $ | 172,621,221 | $ | 729,134,205 | $ | 920,192,712 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-55
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| BHFTI PanAgora Global Diversified Risk Division | BHFTI PanAgora Global Diversified Risk II Division | BHFTI PIMCO Inflation Protected Bond Division | BHFTI PIMCO Total Return Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | (1,200,967 | ) | $ | 1,602,289 | $ | (11,225,421 | ) | $ | 10,283,727 | $ | (1,745,818 | ) | $ | 4,535,533 | $ | 4,113,642 | $ | 17,008,900 | ||||||||||||||||
| Net realized gains (losses) | 8,971,073 | 5,970,985 | 14,331,632 | 66,569,870 | 922,394 | (3,299,101 | ) | 28,978,578 | 3,510,190 | ||||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | (2,924,407 | ) | 1,365,825 | 94,475,129 | (65,907,392 | ) | 14,552,033 | 28,967,594 | (51,522,591 | ) | 27,043,093 | ||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 4,845,699 | 8,939,099 | 97,581,340 | 10,946,205 | 13,728,609 | 30,204,026 | (18,430,371 | ) | 47,562,183 | ||||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 60,442 | 19,619 | 1,098,505 | 1,418,896 | 1,933,498 | 2,151,448 | 5,104,171 | 5,059,209 | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | 2,553,740 | 11,963,712 | (19,024,564 | ) | (14,211,328 | ) | 38,760,414 | 10,933,166 | 66,366,031 | 34,809,356 | |||||||||||||||||||||||||
| Contract charges | (1,382,248 | ) | (1,240,540 | ) | (13,964,431 | ) | (14,767,147 | ) | (2,458,284 | ) | (2,615,019 | ) | (4,298,205 | ) | (4,909,464 | ) | |||||||||||||||||||
| Transfers for Contract benefits and terminations | (10,197,798 | ) | (6,906,384 | ) | (108,853,659 | ) | (90,022,528 | ) | (45,458,686 | ) | (37,429,568 | ) | (96,780,080 | ) | (82,551,445 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (8,965,864 | ) | 3,836,407 | (140,744,149 | ) | (117,582,107 | ) | (7,223,058 | ) | (26,959,973 | ) | (29,608,083 | ) | (47,592,344 | ) | ||||||||||||||||||||
| Net increase (decrease) in net assets | (4,120,165 | ) | 12,775,506 | (43,162,809 | ) | (106,635,902 | ) | 6,505,551 | 3,244,053 | (48,038,454 | ) | (30,161 | ) | ||||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 97,068,610 | 84,293,104 | 929,413,643 | 1,036,049,545 | 330,502,638 | 327,258,585 | 715,365,209 | 715,395,370 | |||||||||||||||||||||||||||
| End of year | $ | 92,948,445 | $ | 97,068,610 | $ | 886,250,834 | $ | 929,413,643 | $ | 337,008,189 | $ | 330,502,638 | $ | 667,326,755 | $ | 715,365,209 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-56
| BHFTI Schroders Global Multi-Asset Division | BHFTI SSGA Growth and Income ETF Division | BHFTI SSGA Growth ETF Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | (6,167,603 | ) | $ | 3,803,281 | $ | 3,436,931 | $ | 8,897,011 | $ | 291,478 | $ | 1,446,089 | ||||||||||||||
| Net realized gains (losses) | 14,794,627 | 42,809,773 | 44,744,928 | 24,302,608 | 10,665,951 | 4,673,682 | |||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 56,009,498 | (44,616,426 | ) | 24,346,137 | 14,978,644 | 9,091,896 | 4,092,403 | ||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 64,636,522 | 1,996,628 | 72,527,996 | 48,178,263 | 20,049,325 | 10,212,174 | |||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 430,517 | 452,168 | 2,596,062 | 2,626,377 | 1,704,952 | 1,892,489 | |||||||||||||||||||||
| Net transfers (including fixed account) | (17,232,768 | ) | (21,051,439 | ) | (13,251,391 | ) | (15,966,504 | ) | (2,725,636 | ) | (5,790,328 | ) | |||||||||||||||
| Contract charges | (9,192,598 | ) | (10,177,753 | ) | (6,592,122 | ) | (7,153,374 | ) | (919,531 | ) | (959,136 | ) | |||||||||||||||
| Transfers for Contract benefits and terminations | (92,542,113 | ) | (70,721,468 | ) | (83,936,543 | ) | (63,221,576 | ) | (15,687,006 | ) | (12,872,803 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (118,536,962 | ) | (101,498,492 | ) | (101,183,994 | ) | (83,715,077 | ) | (17,627,221 | ) | (17,729,778 | ) | |||||||||||||||
| Net increase (decrease) in net assets | (53,900,440 | ) | (99,501,864 | ) | (28,655,998 | ) | (35,536,814 | ) | 2,422,104 | (7,517,604 | ) | ||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 703,341,582 | 802,843,446 | 644,690,157 | 680,226,971 | 130,804,692 | 138,322,296 | |||||||||||||||||||||
| End of year | $ | 649,441,142 | $ | 703,341,582 | $ | 616,034,159 | $ | 644,690,157 | $ | 133,226,796 | $ | 130,804,692 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-57
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| BHFTI T. Rowe Price Large Cap Value Division | BHFTI T. Rowe Price Mid Cap Growth Division | BHFTI TCW Core Fixed Income Division | BHFTI Victory Sycamore Mid Cap Value Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | 5,259 | $ | 15,535 | $ | (6,264,927 | ) | $ | (5,280,242 | ) | $ | 21 | $ | 4,288 | $ | (275,905 | ) | $ | 840,222 | ||||||||||||||||
| Net realized gains (losses) | 20,521 | 3,920 | 63,906,402 | 51,803,519 | 2,486 | 16,400 | 27,061,856 | 16,916,428 | |||||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 132,856 | 34,047 | 7,170,398 | 49,384,564 | (3,857 | ) | (2,902 | ) | 74,194,902 | 3,802,161 | |||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 158,636 | 53,502 | 64,811,873 | 95,907,841 | (1,350 | ) | 17,786 | 100,980,853 | 21,558,811 | ||||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 156 | 932 | 5,963,654 | 6,364,380 | — | — | 2,987,753 | 3,232,576 | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | (58,703 | ) | (82,633 | ) | (14,014,541 | ) | (33,270,264 | ) | — | (10,722 | ) | (15,503,799 | ) | (2,159,042 | ) | ||||||||||||||||||||
| Contract charges | (25 | ) | (36 | ) | (1,736,980 | ) | (1,883,211 | ) | — | (2 | ) | (1,103,413 | ) | (1,095,497 | ) | ||||||||||||||||||||
| Transfers for Contract benefits and terminations | (54,527 | ) | (11,768 | ) | (64,376,721 | ) | (46,231,297 | ) | (5,816 | ) | (195,025 | ) | (44,680,247 | ) | (31,543,793 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (113,099 | ) | (93,505 | ) | (74,164,588 | ) | (75,020,392 | ) | (5,816 | ) | (205,749 | ) | (58,299,706 | ) | (31,565,756 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets | 45,537 | (40,003 | ) | (9,352,715 | ) | 20,887,449 | (7,166 | ) | (187,963 | ) | 42,681,147 | (10,006,945 | ) | ||||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 685,939 | 725,942 | 505,414,544 | 484,527,095 | 52,557 | 240,520 | 351,800,764 | 361,807,709 | |||||||||||||||||||||||||||
| End of year | $ | 731,476 | $ | 685,939 | $ | 496,061,829 | $ | 505,414,544 | $ | 45,391 | $ | 52,557 | $ | 394,481,911 | $ | 351,800,764 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-58
| BHFTI Western Asset Management Government Income Division | BHFTII Baillie Gifford International Stock Division | BHFTII BlackRock Bond Income Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | 3,238,557 | $ | 4,507,060 | $ | (533,904 | ) | $ | 779,866 | $ | 5,185,469 | $ | 8,026,392 | ||||||||||||||
| Net realized gains (losses) | 835,475 | 2,430,380 | 18,665,643 | 9,889,901 | 7,990,201 | 1,424,032 | |||||||||||||||||||||
| Change in unrealized gains (losses) on investments | (16,464,114 | ) | 17,153,359 | (20,382,097 | ) | 17,623,238 | (20,344,177 | ) | 15,602,773 | ||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (12,390,082 | ) | 24,090,799 | (2,250,358 | ) | 28,293,005 | (7,168,507 | ) | 25,053,197 | ||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 601,439 | 687,605 | 1,110,698 | 931,187 | 2,880,538 | 3,000,255 | |||||||||||||||||||||
| Net transfers (including fixed account) | 19,275,312 | 75,174,345 | 5,020,923 | (1,244,055 | ) | 27,018,606 | 22,414,370 | ||||||||||||||||||||
| Contract charges | (5,783,050 | ) | (6,518,386 | ) | (314,880 | ) | (339,203 | ) | (1,736,205 | ) | (1,911,579 | ) | |||||||||||||||
| Transfers for Contract benefits and terminations | (73,928,278 | ) | (71,581,650 | ) | (18,307,886 | ) | (10,357,185 | ) | (48,749,496 | ) | (44,199,935 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (59,834,577 | ) | (2,238,086 | ) | (12,491,145 | ) | (11,009,256 | ) | (20,586,557 | ) | (20,696,889 | ) | |||||||||||||||
| Net increase (decrease) in net assets | (72,224,659 | ) | 21,852,713 | (14,741,503 | ) | 17,283,749 | (27,755,064 | ) | 4,356,308 | ||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 398,349,977 | 376,497,264 | 140,886,997 | 123,603,248 | 389,186,999 | 384,830,691 | |||||||||||||||||||||
| End of year | $ | 326,125,318 | $ | 398,349,977 | $ | 126,145,494 | $ | 140,886,997 | $ | 361,431,935 | $ | 389,186,999 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-59
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| BHFTII BlackRock Capital Appreciation Division | BHFTII BlackRock Ultra-Short Term Bond Division | BHFTII Brighthouse Asset Allocation 20 Division | BHFTII Brighthouse Asset Allocation 40 Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | (2,969,573 | ) | $ | (2,561,674 | ) | $ | (512,968 | ) | $ | 189,931 | $ | 5,128,052 | $ | 4,742,568 | $ | 12,134,866 | $ | 12,076,689 | ||||||||||||||||
| Net realized gains (losses) | 47,600,377 | 35,489,561 | (183,551 | ) | 69,509 | 5,974,185 | 6,662,956 | 40,364,512 | 40,360,651 | ||||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | (2,918,447 | ) | 33,799,658 | (35,833 | ) | (761,962 | ) | (3,976,725 | ) | 12,184,016 | (1,465,683 | ) | 23,436,358 | ||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 41,712,357 | 66,727,545 | (732,352 | ) | (502,522 | ) | 7,125,512 | 23,589,540 | 51,033,695 | 75,873,698 | |||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 2,634,998 | 2,143,896 | 187,278 | 157,528 | 2,323,246 | 2,104,951 | 6,408,014 | 6,598,803 | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | (9,323,076 | ) | (8,578,450 | ) | 8,146,597 | 14,465,808 | 1,654,761 | 4,760,399 | (539,635 | ) | (9,619,760 | ) | |||||||||||||||||||||||
| Contract charges | (920,884 | ) | (951,732 | ) | (483,053 | ) | (481,466 | ) | (2,398,710 | ) | (2,450,958 | ) | (6,713,631 | ) | (7,049,456 | ) | |||||||||||||||||||
| Transfers for Contract benefits and terminations | (29,244,507 | ) | (21,900,122 | ) | (17,191,773 | ) | (11,146,935 | ) | (40,023,748 | ) | (38,435,664 | ) | (106,445,875 | ) | (99,473,166 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (36,853,469 | ) | (29,286,408 | ) | (9,340,951 | ) | 2,994,935 | (38,444,451 | ) | (34,021,272 | ) | (107,291,127 | ) | (109,543,579 | ) | ||||||||||||||||||||
| Net increase (decrease) in net assets | 4,858,888 | 37,441,137 | (10,073,303 | ) | 2,492,413 | (31,318,939 | ) | (10,431,732 | ) | (56,257,432 | ) | (33,669,881 | ) | ||||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 230,129,341 | 192,688,204 | 47,474,049 | 44,981,636 | 311,462,767 | 321,894,499 | 875,065,802 | 908,735,683 | |||||||||||||||||||||||||||
| End of year | $ | 234,988,229 | $ | 230,129,341 | $ | 37,400,746 | $ | 47,474,049 | $ | 280,143,828 | $ | 311,462,767 | $ | 818,808,370 | $ | 875,065,802 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-60
| BHFTII Brighthouse Asset Allocation 60 Division | BHFTII Brighthouse Asset Allocation 80 Division | BHFTII Brighthouse/Artisan Mid Cap Value Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | 27,440,189 | $ | 28,175,408 | $ | 7,900,018 | $ | 9,121,825 | $ | (814,654 | ) | $ | (648,717 | ) | |||||||||||||
| Net realized gains (losses) | 223,232,028 | 212,327,428 | 156,127,480 | 152,914,504 | 11,793,499 | 1,104,026 | |||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 35,631,578 | 99,879,881 | 57,221,877 | 60,188,388 | 31,811,752 | 8,080,216 | |||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 286,303,795 | 340,382,717 | 221,249,375 | 222,224,717 | 42,790,597 | 8,535,525 | |||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 24,017,175 | 27,409,116 | 21,855,608 | 24,124,224 | 1,786,243 | 1,815,217 | |||||||||||||||||||||
| Net transfers (including fixed account) | (19,479,129 | ) | (63,505,425 | ) | (20,209,478 | ) | (45,714,163 | ) | (4,009,993 | ) | (2,396,615 | ) | |||||||||||||||
| Contract charges | (24,565,931 | ) | (26,296,980 | ) | (10,008,728 | ) | (10,534,672 | ) | (439,528 | ) | (438,671 | ) | |||||||||||||||
| Transfers for Contract benefits and terminations | (394,308,570 | ) | (311,735,085 | ) | (184,195,930 | ) | (138,075,799 | ) | (22,579,094 | ) | (15,428,011 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (414,336,455 | ) | (374,128,374 | ) | (192,558,528 | ) | (170,200,410 | ) | (25,242,372 | ) | (16,448,080 | ) | |||||||||||||||
| Net increase (decrease) in net assets | (128,032,660 | ) | (33,745,657 | ) | 28,690,847 | 52,024,307 | 17,548,225 | (7,912,555 | ) | ||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 3,132,220,695 | 3,165,966,352 | 1,722,419,271 | 1,670,394,964 | 178,298,975 | 186,211,530 | |||||||||||||||||||||
| End of year | $ | 3,004,188,035 | $ | 3,132,220,695 | $ | 1,751,110,118 | $ | 1,722,419,271 | $ | 195,847,200 | $ | 178,298,975 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-61
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| BHFTII Brighthouse/Dimensional International Small Company Division | BHFTII Brighthouse/Wellington Balanced Division | BHFTII Brighthouse/Wellington Core Equity Opportunities Division | BHFTII Frontier Mid Cap Growth Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | 18,896 | $ | 83,460 | $ | 3,467,398 | $ | 5,197,233 | $ | 4,810 | $ | 909,892 | $ | (7,278,472 | ) | $ | (5,925,076 | ) | |||||||||||||||||
| Net realized gains (losses) | 401,971 | (167,783 | ) | 67,241,789 | 31,868,837 | 43,083,841 | 57,851,428 | 101,313,064 | 67,085,888 | ||||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 421,698 | 593,647 | 3,157,671 | 48,657,548 | 62,915,404 | (15,212,853 | ) | (20,345,195 | ) | 74,213,352 | |||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 842,565 | 509,324 | 73,866,858 | 85,723,618 | 106,004,055 | 43,548,467 | 73,689,397 | 135,374,164 | |||||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 17,981 | 20,526 | 3,657,298 | 4,306,177 | 3,785,409 | 4,100,080 | 3,062,177 | 2,801,014 | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | (344,012 | ) | (363,172 | ) | (688,417 | ) | (5,447,805 | ) | (17,687,364 | ) | (7,896,223 | ) | (7,644,833 | ) | (18,852,946 | ) | |||||||||||||||||||
| Contract charges | (36,156 | ) | (40,002 | ) | (261,167 | ) | (270,566 | ) | (1,932,196 | ) | (2,087,063 | ) | (429,490 | ) | (460,262 | ) | |||||||||||||||||||
| Transfers for Contract benefits and terminations | (800,128 | ) | (741,159 | ) | (57,387,398 | ) | (48,399,470 | ) | (62,630,915 | ) | (54,517,414 | ) | (54,694,118 | ) | (40,875,080 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (1,162,315 | ) | (1,123,807 | ) | (54,679,684 | ) | (49,811,664 | ) | (78,465,066 | ) | (60,400,620 | ) | (59,706,264 | ) | (57,387,274 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets | (319,750 | ) | (614,483 | ) | 19,187,174 | 35,911,954 | 27,538,989 | (16,852,153 | ) | 13,983,133 | 77,986,890 | ||||||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 7,124,915 | 7,739,398 | 610,629,506 | 574,717,552 | 503,780,671 | 520,632,824 | 572,542,548 | 494,555,658 | |||||||||||||||||||||||||||
| End of year | $ | 6,805,165 | $ | 7,124,915 | $ | 629,816,680 | $ | 610,629,506 | $ | 531,319,660 | $ | 503,780,671 | $ | 586,525,681 | $ | 572,542,548 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-62
| BHFTII Jennison Growth Division | BHFTII Loomis Sayles Small Cap Core Division | BHFTII Loomis Sayles Small Cap Growth Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | (3,646,712 | ) | $ | (2,823,468 | ) | $ | (2,015,622 | ) | $ | (1,648,415 | ) | $ | (825,599 | ) | $ | (676,408 | ) | |||||||||
| Net realized gains (losses) | 79,474,867 | 39,012,211 | 15,924,465 | 11,007,626 | 8,557,077 | 7,560,022 | |||||||||||||||||||||
| Change in unrealized gains (losses) on investments | (33,158,872 | ) | 69,169,806 | 16,360,102 | 6,382,559 | (2,231,635 | ) | 9,885,408 | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 42,669,283 | 105,358,549 | 30,268,945 | 15,741,770 | 5,499,843 | 16,769,022 | |||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 4,519,138 | 3,059,590 | 1,419,043 | 1,467,971 | 941,910 | 880,325 | |||||||||||||||||||||
| Net transfers (including fixed account) | (7,796,037 | ) | (3,120,525 | ) | (5,129,618 | ) | (3,362,707 | ) | (980,429 | ) | (4,352,865 | ) | |||||||||||||||
| Contract charges | (1,097,276 | ) | (1,108,541 | ) | (525,508 | ) | (529,940 | ) | (128,386 | ) | (127,460 | ) | |||||||||||||||
| Transfers for Contract benefits and terminations | (40,372,362 | ) | (26,022,423 | ) | (18,869,881 | ) | (14,191,055 | ) | (6,393,426 | ) | (4,496,437 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (44,746,537 | ) | (27,191,899 | ) | (23,105,964 | ) | (16,615,731 | ) | (6,560,331 | ) | (8,096,437 | ) | |||||||||||||||
| Net increase (decrease) in net assets | (2,077,254 | ) | 78,166,650 | 7,162,981 | (873,961 | ) | (1,060,488 | ) | 8,672,585 | ||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 289,505,068 | 211,338,418 | 156,522,639 | 157,396,600 | 66,012,877 | 57,340,292 | |||||||||||||||||||||
| End of year | $ | 287,427,814 | $ | 289,505,068 | $ | 163,685,620 | $ | 156,522,639 | $ | 64,952,389 | $ | 66,012,877 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-63
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| BHFTII MetLife Aggregate Bond Index Division | BHFTII MetLife Mid Cap Stock Index Division | BHFTII MetLife MSCI EAFE® Index Division | BHFTII MetLife Russell 2000® Index Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | 10,694,815 | $ | 13,072,264 | $ | (1,564,918 | ) | $ | 319,781 | $ | 1,850,123 | $ | 7,601,556 | $ | (1,281,754 | ) | $ | 39,630 | |||||||||||||||||
| Net realized gains (losses) | 748,264 | 7,071,864 | 52,628,980 | 36,524,964 | 13,841,508 | 7,281,489 | 38,953,958 | 26,713,820 | |||||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | (43,389,208 | ) | 31,503,576 | 57,382,024 | 22,452,963 | 25,722,402 | 16,429,135 | 6,739,194 | 31,044,533 | ||||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (31,946,129 | ) | 51,647,704 | 108,446,086 | 59,297,708 | 41,414,033 | 31,312,180 | 44,411,398 | 57,797,983 | ||||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 10,140,944 | 10,864,000 | 7,535,921 | 7,767,987 | 7,477,049 | 7,860,084 | 5,235,786 | 5,454,391 | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | 105,505,716 | 49,566,755 | (29,168,370 | ) | (17,954,834 | ) | 1,066,646 | 8,010,588 | (3,976,590 | ) | (20,416,201 | ) | |||||||||||||||||||||||
| Contract charges | (4,959,053 | ) | (5,593,760 | ) | (1,546,034 | ) | (1,551,495 | ) | (1,609,261 | ) | (1,670,310 | ) | (825,235 | ) | (827,113 | ) | |||||||||||||||||||
| Transfers for Contract benefits and terminations | (117,708,457 | ) | (109,045,885 | ) | (56,960,322 | ) | (42,382,787 | ) | (50,077,959 | ) | (39,276,779 | ) | (37,637,134 | ) | (26,100,918 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (7,020,850 | ) | (54,208,890 | ) | (80,138,805 | ) | (54,121,129 | ) | (43,143,525 | ) | (25,076,417 | ) | (37,203,173 | ) | (41,889,841 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets | (38,966,979 | ) | (2,561,186 | ) | 28,307,281 | 5,176,579 | (1,729,492 | ) | 6,235,763 | 7,208,225 | 15,908,142 | ||||||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 949,536,445 | 952,097,631 | 506,052,707 | 500,876,128 | 466,904,304 | 460,668,541 | 346,715,527 | 330,807,385 | |||||||||||||||||||||||||||
| End of year | $ | 910,569,466 | $ | 949,536,445 | $ | 534,359,988 | $ | 506,052,707 | $ | 465,174,812 | $ | 466,904,304 | $ | 353,923,752 | $ | 346,715,527 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-64
| BHFTII MetLife Stock Index Division | BHFTII MFS® Total Return Division | BHFTII MFS® Value Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | 7,253,593 | $ | 16,665,539 | $ | 639,680 | $ | 1,237,643 | $ | 1,014,446 | $ | 3,210,980 | |||||||||||||||
| Net realized gains (losses) | 418,844,705 | 316,872,651 | 9,881,590 | 6,383,046 | 24,886,449 | 34,572,759 | |||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 364,436,767 | 126,015,016 | 3,825,226 | 1,056,451 | 114,170,286 | (24,712,952 | ) | ||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 790,535,065 | 459,553,206 | 14,346,496 | 8,677,140 | 140,071,181 | 13,070,787 | |||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 32,238,629 | 31,569,454 | 1,562,824 | 1,164,619 | 6,404,512 | 6,613,410 | |||||||||||||||||||||
| Net transfers (including fixed account) | (129,714,180 | ) | (101,965,375 | ) | 196,331 | (2,731,520 | ) | (23,267,172 | ) | 5,460,026 | |||||||||||||||||
| Contract charges | (5,978,396 | ) | (6,187,543 | ) | (324,689 | ) | (347,189 | ) | (2,373,898 | ) | (2,440,109 | ) | |||||||||||||||
| Transfers for Contract benefits and terminations | (346,797,597 | ) | (265,605,717 | ) | (12,544,971 | ) | (12,780,101 | ) | (84,640,456 | ) | (60,538,325 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (450,251,544 | ) | (342,189,181 | ) | (11,110,505 | ) | (14,694,191 | ) | (103,877,014 | ) | (50,904,998 | ) | |||||||||||||||
| Net increase (decrease) in net assets | 340,283,521 | 117,364,025 | 3,235,991 | (6,017,051 | ) | 36,194,167 | (37,834,211 | ) | |||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 3,154,806,376 | 3,037,442,351 | 117,745,426 | 123,762,477 | 627,751,137 | 665,585,348 | |||||||||||||||||||||
| End of year | $ | 3,495,089,897 | $ | 3,154,806,376 | $ | 120,981,417 | $ | 117,745,426 | $ | 663,945,304 | $ | 627,751,137 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-65
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| BHFTII Neuberger Berman Genesis Division | BHFTII T. Rowe Price Large Cap Growth Division | BHFTII T. Rowe Price Small Cap Growth Division | BHFTII Van Eck Global Natural Resources Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | (3,895,161 | ) | $ | (3,180,128 | ) | $ | (9,600,807 | ) | $ | (7,488,830 | ) | $ | (5,920,609 | ) | $ | (4,820,183 | ) | $ | (62,053 | ) | $ | 1,711 | ||||||||||||
| Net realized gains (losses) | 36,281,408 | 26,740,247 | 123,853,136 | 71,413,186 | 73,355,014 | 56,997,596 | 1,214,701 | (2,302,992 | ) | ||||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 17,247,271 | 36,614,576 | 17,425,080 | 137,503,730 | (19,755,734 | ) | 39,472,994 | 3,395,487 | 8,059,472 | ||||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 49,633,518 | 60,174,695 | 131,677,409 | 201,428,086 | 47,678,671 | 91,650,407 | 4,548,135 | 5,758,191 | |||||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 2,857,483 | 2,717,284 | 9,328,336 | 9,277,398 | 6,137,316 | 5,723,882 | 35,666 | 26,155 | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | (6,454,892 | ) | (11,168,285 | ) | (13,345,751 | ) | (39,247,424 | ) | (14,957,233 | ) | (23,111,025 | ) | (4,242,840 | ) | (1,910,189 | ) | |||||||||||||||||||
| Contract charges | (511,813 | ) | (542,365 | ) | (1,860,133 | ) | (1,982,277 | ) | (952,505 | ) | (1,038,633 | ) | (276,869 | ) | (289,933 | ) | |||||||||||||||||||
| Transfers for Contract benefits and terminations | (36,178,934 | ) | (27,319,796 | ) | (94,756,093 | ) | (60,682,479 | ) | (52,482,546 | ) | (37,758,660 | ) | (3,574,437 | ) | (2,764,136 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (40,288,156 | ) | (36,313,162 | ) | (100,633,641 | ) | (92,634,782 | ) | (62,254,968 | ) | (56,184,436 | ) | (8,058,480 | ) | (4,938,103 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets | 9,345,362 | 23,861,533 | 31,043,768 | 108,793,304 | (14,576,297 | ) | 35,465,971 | (3,510,345 | ) | 820,088 | |||||||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 311,591,184 | 287,729,651 | 738,162,692 | 629,369,388 | 491,278,222 | 455,812,251 | 27,733,915 | 26,913,827 | |||||||||||||||||||||||||||
| End of year | $ | 320,936,546 | $ | 311,591,184 | $ | 769,206,460 | $ | 738,162,692 | $ | 476,701,925 | $ | 491,278,222 | $ | 24,223,570 | $ | 27,733,915 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-66
| BHFTII Western Asset Management Strategic Bond Opportunities Division | BHFTII Western Asset Management U.S. Government Division | BlackRock Global Allocation V.I. Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | 9,333,316 | $ | 17,726,545 | $ | 1,661,587 | $ | 2,078,549 | $ | (302 | ) | $ | (106 | ) | |||||||||||||
| Net realized gains (losses) | 2,546,268 | 360,637 | (400,867 | ) | 221,649 | 16,912 | 6,569 | ||||||||||||||||||||
| Change in unrealized gains (losses) on investments | (6,497,701 | ) | 803,335 | (5,249,706 | ) | 2,399,994 | (12,508 | ) | 12,407 | ||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 5,381,883 | 18,890,517 | (3,988,986 | ) | 4,700,192 | 4,102 | 18,870 | ||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 3,315,926 | 3,585,553 | 1,170,573 | 1,059,588 | — | — | |||||||||||||||||||||
| Net transfers (including fixed account) | 16,197,583 | 7,008,182 | 8,606,612 | 24,361,402 | 1,303 | (2,002 | ) | ||||||||||||||||||||
| Contract charges | (1,371,525 | ) | (1,551,192 | ) | (651,891 | ) | (742,576 | ) | (3 | ) | (3 | ) | |||||||||||||||
| Transfers for Contract benefits and terminations | (50,637,237 | ) | (41,946,718 | ) | (20,582,596 | ) | (20,397,844 | ) | (103,497 | ) | (743 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (32,495,253 | ) | (32,904,175 | ) | (11,457,302 | ) | 4,280,570 | (102,197 | ) | (2,748 | ) | ||||||||||||||||
| Net increase (decrease) in net assets | (27,113,370 | ) | (14,013,658 | ) | (15,446,288 | ) | 8,980,762 | (98,095 | ) | 16,122 | |||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 408,706,045 | 422,719,703 | 139,252,019 | 130,271,257 | 118,145 | 102,023 | |||||||||||||||||||||
| End of year | $ | 381,592,675 | $ | 408,706,045 | $ | 123,805,731 | $ | 139,252,019 | $ | 20,050 | $ | 118,145 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-67
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| Calvert VP SRI Balanced Division | Calvert VP SRI Mid Cap Division | Delaware VIP® Small Cap Value Division | Fidelity® VIP Contrafund® Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | (8,235 | ) | $ | 176,206 | $ | (58,733 | ) | $ | (36,653 | ) | $ | 2 | $ | 3 | $ | (8,457 | ) | $ | (6,380 | ) | ||||||||||||||
| Net realized gains (losses) | 3,464,445 | 2,455,032 | 481,399 | 462,013 | 2 | 32 | 163,942 | 15,567 | |||||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 4,039,572 | 3,996,829 | 587,387 | 197,700 | 225 | (53 | ) | 65,649 | 185,696 | ||||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 7,495,782 | 6,628,067 | 1,010,053 | 623,060 | 229 | (18 | ) | 221,134 | 194,883 | ||||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 1,018,177 | 1,075,029 | 144,284 | 174,517 | — | — | 8,595 | 12,411 | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | 1,586,172 | 334,536 | (221,370 | ) | (568,593 | ) | — | — | (2,675 | ) | (18,670 | ) | |||||||||||||||||||||||
| Contract charges | (21,457 | ) | (22,187 | ) | (419 | ) | (424 | ) | — | — | (12 | ) | (13 | ) | |||||||||||||||||||||
| Transfers for Contract benefits and terminations | (6,457,466 | ) | (5,331,249 | ) | (635,817 | ) | (736,394 | ) | (4 | ) | (2 | ) | (105,428 | ) | (46,305 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (3,874,574 | ) | (3,943,871 | ) | (713,322 | ) | (1,130,894 | ) | (4 | ) | (2 | ) | (99,520 | ) | (52,577 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets | 3,621,208 | 2,684,196 | 296,731 | (507,834 | ) | 225 | (20 | ) | 121,614 | 142,306 | |||||||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 55,610,315 | 52,926,119 | 7,563,766 | 8,071,600 | 677 | 697 | 860,110 | 717,804 | |||||||||||||||||||||||||||
| End of year | $ | 59,231,523 | $ | 55,610,315 | $ | 7,860,497 | $ | 7,563,766 | $ | 902 | $ | 677 | $ | 981,724 | $ | 860,110 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-68
| Fidelity® VIP Equity-Income Division | Fidelity® VIP Freedom 2020 Division | Fidelity® VIP Freedom 2025 Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | 607,385 | $ | 450,011 | $ | (6,452 | ) | $ | 9,465 | $ | (15,836 | ) | $ | 14,207 | |||||||||||||
| Net realized gains (losses) | 8,885,134 | 2,595,984 | 422,551 | 197,265 | 636,869 | 209,592 | |||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 5,092,373 | (146,123 | ) | (89,647 | ) | 287,105 | 87,169 | 586,013 | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 14,584,892 | 2,899,872 | 326,452 | 493,835 | 708,202 | 809,812 | |||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 485,055 | 634,291 | 210,038 | 573,466 | 442,431 | 498,053 | |||||||||||||||||||||
| Net transfers (including fixed account) | (160,963 | ) | (1,531,291 | ) | 968,447 | 648,700 | 2,153,416 | 2,879,680 | |||||||||||||||||||
| Contract charges | (7,082 | ) | (7,490 | ) | (42 | ) | (16 | ) | (11,259 | ) | (6,080 | ) | |||||||||||||||
| Transfers for Contract benefits and terminations | (5,763,651 | ) | (5,745,192 | ) | (1,477,095 | ) | (331,629 | ) | (2,138,920 | ) | (714,163 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (5,446,641 | ) | (6,649,682 | ) | (298,652 | ) | 890,521 | 445,668 | 2,657,490 | ||||||||||||||||||
| Net increase (decrease) in net assets | 9,138,251 | (3,749,810 | ) | 27,800 | 1,384,356 | 1,153,870 | 3,467,302 | ||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 63,502,205 | 67,252,015 | 4,340,434 | 2,956,078 | 7,124,363 | 3,657,061 | |||||||||||||||||||||
| End of year | $ | 72,640,456 | $ | 63,502,205 | $ | 4,368,234 | $ | 4,340,434 | $ | 8,278,233 | $ | 7,124,363 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-69
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| Fidelity® VIP Freedom 2030 Division | Fidelity® VIP Freedom 2035 Division | Fidelity® VIP Freedom 2040 Division | Fidelity® VIP Freedom 2045 Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | (4,499 | ) | $ | 6,393 | $ | (1,539 | ) | $ | 663 | $ | (2,682 | ) | $ | (1,999 | ) | $ | (6,305 | ) | $ | (948 | ) | |||||||||||||
| Net realized gains (losses) | 652,821 | 233,135 | 220,567 | 45,409 | 274,072 | 110,041 | 116,866 | 39,970 | |||||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 111,660 | 588,129 | 169,661 | 339,095 | 33,778 | 232,695 | 238,268 | 271,505 | |||||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 759,982 | 827,657 | 388,689 | 385,167 | 305,168 | 340,737 | 348,829 | 310,527 | |||||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 1,123,441 | 989,812 | 936,464 | 435,685 | 906,770 | 654,135 | 893,515 | 455,197 | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | 2,168,435 | 1,029,839 | 1,545,725 | 843,656 | 721,359 | 13,970 | 89,964 | 309,242 | |||||||||||||||||||||||||||
| Contract charges | (2,109 | ) | (556 | ) | (2,070 | ) | (574 | ) | (1,109 | ) | (477 | ) | (1,255 | ) | (815 | ) | |||||||||||||||||||
| Transfers for Contract benefits and terminations | (1,643,388 | ) | (725,356 | ) | (218,815 | ) | (94,985 | ) | (806,167 | ) | (393,431 | ) | (132,421 | ) | (58,592 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | 1,646,379 | 1,293,739 | 2,261,304 | 1,183,782 | 820,853 | 274,197 | 849,803 | 705,032 | |||||||||||||||||||||||||||
| Net increase (decrease) in net assets | 2,406,361 | 2,121,396 | 2,649,993 | 1,568,949 | 1,126,021 | 614,934 | 1,198,632 | 1,015,559 | |||||||||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 6,430,259 | 4,308,863 | 2,068,090 | 499,141 | 1,912,754 | 1,297,820 | 1,866,574 | 851,015 | |||||||||||||||||||||||||||
| End of year | $ | 8,836,620 | $ | 6,430,259 | $ | 4,718,083 | $ | 2,068,090 | $ | 3,038,775 | $ | 1,912,754 | $ | 3,065,206 | $ | 1,866,574 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-70
| Fidelity® VIP Freedom 2050 Division | Fidelity® VIP FundsManager 50% Division | Fidelity® VIP FundsManager 60% Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | (11,935 | ) | $ | 1,021 | $ | (2,050,939 | ) | $ | (1,960,126 | ) | $ | (2,131,149 | ) | $ | (2,041,045 | ) | ||||||||||
| Net realized gains (losses) | 395,551 | 83,513 | 8,684,226 | 6,169,046 | 8,802,833 | 5,405,502 | |||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 383,767 | 584,987 | 11,880,662 | 21,870,120 | 17,165,175 | 24,261,562 | |||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 767,383 | 669,521 | 18,513,949 | 26,079,040 | 23,836,859 | 27,626,019 | |||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 2,225,763 | 1,287,185 | 615,165 | 753,439 | 2,401,655 | 618,747 | |||||||||||||||||||||
| Net transfers (including fixed account) | 566,509 | 864,434 | — | — | — | — | |||||||||||||||||||||
| Contract charges | (5,058 | ) | (1,376 | ) | — | — | — | — | |||||||||||||||||||
| Transfers for Contract benefits and terminations | (881,313 | ) | (115,983 | ) | (25,730,530 | ) | (32,402,129 | ) | (27,247,172 | ) | (24,861,165 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | 1,905,901 | 2,034,260 | (25,115,365 | ) | (31,648,690 | ) | (24,845,517 | ) | (24,242,418 | ) | |||||||||||||||||
| Net increase (decrease) in net assets | 2,673,284 | 2,703,781 | (6,601,416 | ) | (5,569,650 | ) | (1,008,658 | ) | 3,383,601 | ||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 4,073,510 | 1,369,729 | 247,253,463 | 252,823,113 | 242,924,543 | 239,540,942 | |||||||||||||||||||||
| End of year | $ | 6,746,794 | $ | 4,073,510 | $ | 240,652,047 | $ | 247,253,463 | $ | 241,915,885 | $ | 242,924,543 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-71
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| Fidelity® VIP Government Money Market Division | Fidelity® VIP Growth Division | Fidelity® VIP Investment Grade Bond Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | (50,148 | ) | $ | (33,396 | ) | $ | (1,270,908 | ) | $ | (932,307 | ) | $ | 98,610 | $ | 116,765 | |||||||||||
| Net realized gains (losses) | — | — | 33,624,596 | 15,924,275 | 307,332 | 127,287 | |||||||||||||||||||||
| Change in unrealized gains (losses) on investments | — | — | (5,741,106 | ) | 24,009,460 | (553,430 | ) | 510,938 | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (50,148 | ) | (33,396 | ) | 26,612,582 | 39,001,428 | (147,488 | ) | 754,990 | ||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 232,460 | 285,146 | 675,406 | 884,436 | 230,622 | 248,825 | |||||||||||||||||||||
| Net transfers (including fixed account) | (385,828 | ) | 1,412,672 | (716,968 | ) | (2,643,371 | ) | 276,942 | 1,030,767 | ||||||||||||||||||
| Contract charges | — | — | (862 | ) | (976 | ) | (2,359 | ) | (2,786 | ) | |||||||||||||||||
| Transfers for Contract benefits and terminations | (811,884 | ) | (1,114,894 | ) | (10,810,223 | ) | (10,591,349 | ) | (973,171 | ) | (1,492,814 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (965,252 | ) | 582,924 | (10,852,647 | ) | (12,351,260 | ) | (467,966 | ) | (216,008 | ) | ||||||||||||||||
| Net increase (decrease) in net assets | (1,015,400 | ) | 549,528 | 15,759,935 | 26,650,168 | (615,454 | ) | 538,982 | |||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 5,964,444 | 5,414,916 | 125,194,940 | 98,544,772 | 9,545,422 | 9,006,440 | |||||||||||||||||||||
| End of year | $ | 4,949,044 | $ | 5,964,444 | $ | 140,954,875 | $ | 125,194,940 | $ | 8,929,968 | $ | 9,545,422 | |||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-72
| Fidelity® VIP Mid Cap Division | FTVIPT Templeton Developing Markets VIP Division | FTVIPT Templeton Foreign VIP Division | Janus Henderson Enterprise Division | ||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 (a) | 2021 | 2020 | |||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | (2,846 | ) | $ | (1,949 | ) | $ | (12 | ) | $ | 1,441 | $ | 3 | $ | (1,024 | ) | $ | (1,204 | ) | ||||||||||||
| Net realized gains (losses) | 99,918 | (612 | ) | 1,939 | 1,239 | — | 23,053 | 12,871 | |||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 15,549 | 71,216 | (5,328 | ) | 4,954 | (19 | ) | 349 | 15,992 | ||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 112,621 | 68,655 | (3,401 | ) | 7,634 | (16 | ) | 22,378 | 27,659 | ||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 375 | 73 | — | — | 500 | 55 | 1,494 | ||||||||||||||||||||||||
| Net transfers (including fixed account) | (7,094 | ) | 3,304 | — | — | — | (1,077 | ) | (2,220 | ) | |||||||||||||||||||||
| Contract charges | — | — | — | — | — | — | — | ||||||||||||||||||||||||
| Transfers for Contract benefits and terminations | (41,855 | ) | (34,518 | ) | (1,790 | ) | (3 | ) | (2 | ) | (25,510 | ) | (1,079 | ) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (48,574 | ) | (31,141 | ) | (1,790 | ) | (3 | ) | 498 | (26,532 | ) | (1,805 | ) | ||||||||||||||||||
| Net increase (decrease) in net assets | 64,047 | 37,514 | (5,191 | ) | 7,631 | 482 | (4,154 | ) | 25,854 | ||||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||
| Beginning of year | 481,692 | 444,178 | 54,938 | 47,307 | — | 157,391 | 131,537 | ||||||||||||||||||||||||
| End of year | $ | 545,739 | $ | 481,692 | $ | 49,747 | $ | 54,938 | $ | 482 | $ | 153,237 | $ | 157,391 | |||||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-73
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2021 and 2020
| LMPVET ClearBridge Variable Appreciation Division | LMPVET ClearBridge Variable Dividend Strategy Division | LMPVET ClearBridge Variable Large Cap Growth Division | LMPVET ClearBridge Variable Small Cap Growth Division | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | (147 | ) | $ | 50 | $ | 586 | $ | 457 | $ | (4,944 | ) | $ | (4,047 | ) | $ | (558 | ) | $ | (448 | ) | ||||||||||||||
| Net realized gains (losses) | 3,751 | 3,345 | 9,872 | 1,200 | 64,525 | 38,744 | 12,212 | 6,179 | |||||||||||||||||||||||||||
| Change in unrealized gains (losses) on investments | 7,560 | 3,271 | 11,694 | 4,306 | 40,824 | 80,138 | (4,841 | ) | 14,669 | ||||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 11,164 | 6,666 | 22,152 | 5,963 | 100,405 | 114,835 | 6,813 | 20,400 | |||||||||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||||||||||
| Purchase payments received from Contract owners | 22 | 585 | — | — | 13,458 | 15,780 | 3,593 | 4,644 | |||||||||||||||||||||||||||
| Net transfers (including fixed account) | (168 | ) | (5,702 | ) | (4,502 | ) | 4,117 | (18,467 | ) | (66,210 | ) | (330 | ) | (6,558 | ) | ||||||||||||||||||||
| Contract charges | — | — | — | — | (10 | ) | (10 | ) | (4 | ) | (4 | ) | |||||||||||||||||||||||
| Transfers for Contract benefits and terminations | (3,939 | ) | (2,507 | ) | (3 | ) | (3 | ) | (47,080 | ) | (19,556 | ) | (10,317 | ) | (271 | ) | |||||||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (4,085 | ) | (7,624 | ) | (4,505 | ) | 4,114 | (52,099 | ) | (69,996 | ) | (7,058 | ) | (2,189 | ) | ||||||||||||||||||||
| Net increase (decrease) in net assets | 7,079 | (958 | ) | 17,647 | 10,077 | 48,306 | 44,839 | (245 | ) | 18,211 | |||||||||||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||||||||||
| Beginning of year | 53,060 | 54,018 | 86,009 | 75,932 | 507,611 | 462,772 | 61,746 | 43,535 | |||||||||||||||||||||||||||
| End of year | $ | 60,139 | $ | 53,060 | $ | 103,656 | $ | 86,009 | $ | 555,917 | $ | 507,611 | $ | 61,501 | $ | 61,746 | |||||||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-74
| LMPVIT Western Asset Core Plus Division | Morgan Stanley VIF Global Infrastructure Division | PIMCO VIT CommodityRealReturn® Strategy Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | (250 | ) | $ | 448 | $ | 641 | $ | 76 | $ | 980 | $ | 1,450 | ||||||||||||||
| Net realized gains (losses) | 1,615 | (169 | ) | 3,123 | 712 | (87 | ) | (994 | ) | ||||||||||||||||||
| Change in unrealized gains (losses) on investments | (2,362 | ) | 2,480 | 4,095 | (2,704 | ) | 9,269 | (607 | ) | ||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (997 | ) | 2,759 | 7,859 | (1,916 | ) | 10,162 | (151 | ) | ||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | — | — | 621 | 132 | 83 | 75 | |||||||||||||||||||||
| Net transfers (including fixed account) | (35,608 | ) | (2,570 | ) | 6,476 | 1,548 | (2,080 | ) | 1,118 | ||||||||||||||||||
| Contract charges | — | — | (19 | ) | (25 | ) | (8 | ) | (8 | ) | |||||||||||||||||
| Transfers for Contract benefits and terminations | (1,126 | ) | (1,601 | ) | (9,942 | ) | (7,712 | ) | (3,587 | ) | (1,693 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (36,734 | ) | (4,171 | ) | (2,864 | ) | (6,057 | ) | (5,592 | ) | (508 | ) | |||||||||||||||
| Net increase (decrease) in net assets | (37,731 | ) | (1,412 | ) | 4,995 | (7,973 | ) | 4,570 | (659 | ) | |||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 38,145 | 39,557 | 60,741 | 68,714 | 34,311 | 34,970 | |||||||||||||||||||||
| End of year | $ | 414 | $ | 38,145 | $ | 65,736 | $ | 60,741 | $ | 38,881 | $ | 34,311 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
E-75
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Concluded)
For the years ended December 31, 2021 and 2020
| PIMCO VIT Dynamic Bond Division | PIMCO VIT Emerging Markets Bond Division | TAP 1919 Variable Socially Responsive Balanced Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||||
| From Operations: | |||||||||||||||||||||||||||
| Net investment income (loss) | $ | 140 | $ | 353 | $ | 1,165 | $ | 1,425 | $ | (90 | ) | $ | (34 | ) | |||||||||||||
| Net realized gains (losses) | 1,071 | 1,455 | 283 | 526 | 6,298 | 2,169 | |||||||||||||||||||||
| Change in unrealized gains (losses) on investments | (1,103 | ) | (79 | ) | (3,306 | ) | 519 | (4,873 | ) | 4,523 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 108 | 1,729 | (1,858 | ) | 2,470 | 1,335 | 6,658 | ||||||||||||||||||||
| Contract Transactions: | |||||||||||||||||||||||||||
| Purchase payments received from Contract owners | — | — | — | — | — | — | |||||||||||||||||||||
| Net transfers (including fixed account) | 607 | 641 | 1,846 | 239 | — | — | |||||||||||||||||||||
| Contract charges | (6 | ) | (13 | ) | (10 | ) | (13 | ) | — | — | |||||||||||||||||
| Transfers for Contract benefits and terminations | (16,977 | ) | (50,867 | ) | (8,754 | ) | (13,490 | ) | (28,048 | ) | (4 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from Contract transactions | (16,376 | ) | (50,239 | ) | (6,918 | ) | (13,264 | ) | (28,048 | ) | (4 | ) | |||||||||||||||
| Net increase (decrease) in net assets | (16,268 | ) | (48,510 | ) | (8,776 | ) | (10,794 | ) | (26,713 | ) | 6,654 | ||||||||||||||||
| Net Assets: | |||||||||||||||||||||||||||
| Beginning of year | 36,833 | 85,343 | 49,384 | 60,178 | 37,136 | 30,482 | |||||||||||||||||||||
| End of year | $ | 20,565 | $ | 36,833 | $ | 40,608 | $ | 49,384 | $ | 10,423 | $ | 37,136 | |||||||||||||||
(a) Had no net assets at December 31, 2020.
The accompanying notes are an integral part of these financial statements.
E-76
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
1. ORGANIZATION
Metropolitan Life Separate Account E (the "Separate Account"), a separate account of Metropolitan Life Insurance Company (the "Company"), was established by the Company's Board of Directors on September 27, 1983 to support operations of the Company with respect to certain variable annuity contracts (the "Contracts"). The Company is a direct wholly-owned subsidiary of MetLife, Inc., a Delaware corporation. The Separate Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended, and is subject to the rules and regulations of the United States Securities and Exchange Commission, as well as the New York State Department of Financial Services.
The Separate Account is divided into Divisions, each of which is treated as an individual accounting entity for financial reporting purposes. Each Division invests in shares of the corresponding fund, series or portfolio (with the same name) of registered investment management companies (the "Trusts"), which are presented below:
American Funds Insurance Series® ("American Funds")
BlackRock Variable Series Funds, Inc. ("BlackRock")
Brighthouse Funds Trust I ("BHFTI")
Brighthouse Funds Trust II ("BHFTII")
Calvert Variable Series, Inc. ("Calvert")
Delaware Management Company ("Delaware")
Delaware VIP Trust ("Delaware VIP")
Fidelity® Variable Insurance Products ("Fidelity VIP")
Franklin Templeton Variable Insurance Products Trust ("FTVIPT")
Janus Aspen Series ("Janus Aspen")
Legg Mason Partners Variable Equity Trust ("LMPVET")
Legg Mason Partners Variable Income Trust ("LMPVIT")
Morgan Stanley Variable Insurance Fund, Inc. ("Morgan Stanley VIF")
PIMCO Variable Insurance Trust ("PIMCO VIT")
Trust for Advised Portfolios ("TAP")
The assets of each of the Divisions of the Separate Account are registered in the name of the Company. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the Company's other assets and liabilities. The portion of the Separate Account's assets applicable to the Contracts cannot be used for liabilities arising out of any other business conducted by the Company.
2. LIST OF DIVISIONS
A. Purchase payments, less any applicable charges, applied to the Separate Account are invested in one or more Divisions in accordance with the selection made by the Contract owner. The following Divisions had net assets as of or during the year ended December 31, 2021:
American Funds® Global Growth Division
American Funds® Global Small Capitalization Division (a)
American Funds® Growth Division
American Funds® Growth-Income Division
American Funds® The Bond Fund of America Division
BHFTI AB Global Dynamic Allocation Division
BHFTI Allspring Mid Cap Value Division
BHFTI American Funds® Balanced Allocation Division (a)
BHFTI American Funds® Growth Allocation Division (a)
BHFTI American Funds® Growth Division
BHFTI American Funds® Moderate Allocation Division (a)
BHFTI BlackRock Global Tactical Strategies Division
BHFTI BlackRock High Yield Division (a)
BHFTI Brighthouse Asset Allocation 100 Division (a)
BHFTI Brighthouse Balanced Plus Division
BHFTI Brighthouse Small Cap Value Division
BHFTI Brighthouse/Aberdeen Emerging Markets Equity Division (a)
BHFTI Brighthouse/Eaton Vance Floating Rate Division
BHFTI Brighthouse/Franklin Low Duration Total Return Division
BHFTI Brighthouse/Templeton International Bond Division
BHFTI Brighthouse/Wellington Large Cap Research Division (a)
BHFTI CBRE Global Real Estate Division (a)
BHFTI Harris Oakmark International Division (a)
BHFTI Invesco Balanced-Risk Allocation Division
BHFTI Invesco Comstock Division
BHFTI Invesco Global Equity Division (a)
BHFTI Invesco Small Cap Growth Division (a)
BHFTI JPMorgan Core Bond Division
BHFTI JPMorgan Global Active Allocation Division
E-77
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
2. LIST OF DIVISIONS — (Continued)
BHFTI JPMorgan Small Cap Value Division (a)
BHFTI Loomis Sayles Global Allocation Division
BHFTI Loomis Sayles Growth Division (a)
BHFTI MetLife Multi-Index Targeted Risk Division
BHFTI MFS® Research International Division (a)
BHFTI Morgan Stanley Discovery Division (a)
BHFTI PanAgora Global Diversified Risk Division
BHFTI PanAgora Global Diversified Risk II Division
BHFTI PIMCO Inflation Protected Bond Division (a)
BHFTI PIMCO Total Return Division (a)
BHFTI Schroders Global Multi-Asset Division
BHFTI SSGA Growth and Income ETF Division (a)
BHFTI SSGA Growth ETF Division (a)
BHFTI T. Rowe Price Large Cap Value Division
BHFTI T. Rowe Price Mid Cap Growth Division (a)
BHFTI TCW Core Fixed Income Division
BHFTI Victory Sycamore Mid Cap Value Division (a)
BHFTI Western Asset Management Government Income Division
BHFTII Baillie Gifford International Stock Division (a)
BHFTII BlackRock Bond Income Division (a)
BHFTII BlackRock Capital Appreciation Division (a)
BHFTII BlackRock Ultra-Short Term Bond Division (a)
BHFTII Brighthouse Asset Allocation 20 Division (a)
BHFTII Brighthouse Asset Allocation 40 Division (a)
BHFTII Brighthouse Asset Allocation 60 Division (a)
BHFTII Brighthouse Asset Allocation 80 Division (a)
BHFTII Brighthouse/Artisan Mid Cap Value Division (a)
BHFTII Brighthouse/Dimensional International Small Company Division
BHFTII Brighthouse/Wellington Balanced Division (a)
BHFTII Brighthouse/Wellington Core Equity Opportunities Division (a)
BHFTII Frontier Mid Cap Growth Division (a)
BHFTII Jennison Growth Division (a)
BHFTII Loomis Sayles Small Cap Core Division (a)
BHFTII Loomis Sayles Small Cap Growth Division (a)
BHFTII MetLife Aggregate Bond Index Division (a)
BHFTII MetLife Mid Cap Stock Index Division (a)
BHFTII MetLife MSCI EAFE® Index Division (a)
BHFTII MetLife Russell 2000® Index Division (a)
BHFTII MetLife Stock Index Division (a)
BHFTII MFS® Total Return Division (a)
BHFTII MFS® Value Division (a)
BHFTII Neuberger Berman Genesis Division (a)
BHFTII T. Rowe Price Large Cap Growth Division (a)
BHFTII T. Rowe Price Small Cap Growth Division (a)
BHFTII Van Eck Global Natural Resources Division
BHFTII Western Asset Management Strategic Bond Opportunities Division (a)
BHFTII Western Asset Management U.S. Government Division (a)
BlackRock Global Allocation V.I. Division
Calvert VP SRI Balanced Division
Calvert VP SRI Mid Cap Division
Delaware VIP® Small Cap Value Division
Fidelity® VIP Contrafund® Division
Fidelity® VIP Equity-Income Division
Fidelity® VIP Freedom 2020 Division
Fidelity® VIP Freedom 2025 Division
Fidelity® VIP Freedom 2030 Division
Fidelity® VIP Freedom 2035 Division
Fidelity® VIP Freedom 2040 Division
Fidelity® VIP Freedom 2045 Division
Fidelity® VIP Freedom 2050 Division
Fidelity® VIP FundsManager 50% Division
Fidelity® VIP FundsManager 60% Division
Fidelity® VIP Government Money Market Division
Fidelity® VIP Growth Division
Fidelity® VIP Investment Grade Bond Division
Fidelity® VIP Mid Cap Division
FTVIPT Templeton Developing Markets VIP Division
FTVIPT Templeton Foreign VIP Division
Janus Henderson Enterprise Division
LMPVET ClearBridge Variable Appreciation Division
LMPVET ClearBridge Variable Dividend Strategy Division
LMPVET ClearBridge Variable Large Cap Growth Division
LMPVET ClearBridge Variable Small Cap Growth Division
LMPVIT Western Asset Core Plus Division
Morgan Stanley VIF Global Infrastructure Division
PIMCO VIT CommodityRealReturn® Strategy Division
PIMCO VIT Dynamic Bond Division
PIMCO VIT Emerging Markets Bond Division
TAP 1919 Variable Socially Responsive Balanced Division
(a) This Division invests in two or more share classes within the underlying fund, series or portfolio of the Trusts.
E-78
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
2. LIST OF DIVISIONS — (Concluded)
B. The following Divisions had no net assets during the year ended December 31, 2021:
BHFTI Brighthouse/Artisan International Division
Delaware Ivy Asset Strategy Division
3. PORTFOLIO CHANGES
The operations of the Divisions were affected by the following changes that occurred during the year ended December 31, 2021:
Name Changes:
Former Name
American Funds® Bond Fund
BHFTI AQR Global Risk Balanced Portfolio
BHFTI Clarion Global Real Estate Portfolio
BHFTI Wells Capital Management Mid Cap Value Portfolio
Ivy VIP Asset Strategy Portfolio
New Name
American Funds® The Bond Fund of America
BHFTI PanAgora Global Diversified Risk II Portfolio
BHFTI CBRE Global Real Estate Portfolio
BHFTI Allspring Mid Cap Value Portfolio
Delaware Ivy Asset Strategy Portfolio
Trust Name Change:
Former Name
Ivy Variable Insurance Portfolios
New Name
Delaware Management Company
4. SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") applicable for variable annuity separate accounts registered as unit investment trusts, which follow the accounting and reporting guidance in Financial Accounting Standards Board Accounting Standards Codification ("ASC") Topic 946, Investment Companies.
Security Transactions
Security transactions are recorded on a trade date basis. Realized gains and losses on the sales of investments are computed on the basis of the average cost of the investment sold. Income from dividends and realized gain distributions are recorded on the ex-distribution date.
Security Valuation
A Division's investment in shares of a fund, series or portfolio of the Trusts is valued at fair value based on the closing net asset value ("NAV"). All changes in fair value are recorded as changes in unrealized gains (losses) on investments in the statements of operations of the applicable Divisions. The Separate Account defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Each Division invests in shares of open-end mutual funds which calculate a daily NAV based on the fair value of the underlying securities in their portfolios. As a result, and as required by law, shares of open-end mutual funds are purchased and redeemed at their daily NAV as reported by the Trusts at the close of each business day.
E-79
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
4. SIGNIFICANT ACCOUNTING POLICIES — (Concluded)
Security Valuation — (Concluded)
ASC Topic 820, Fair Value Measurement ("ASC 820") provides that the Separate Account is not required to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. Additionally, ASC 820 does not require certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The Separate Account's investments in shares of a fund, series or portfolio of the Trusts are using NAV as a practical expedient, therefore investments are not categorized within the ASC 820 fair value hierarchy.
Federal Income Taxes
The operations of the Separate Account form a part of the total operations of the Company and are not taxed separately. The Company is taxed as a life insurance company under the provisions of the Internal Revenue Code ("IRC"). Under the current provisions of the IRC, the Company does not expect to incur federal income taxes on the earnings of the Separate Account to the extent the earnings are credited under the Contracts. Accordingly, no charge is currently being made to the Separate Account for federal income taxes. The Company will periodically review the status of this policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the Contracts.
Annuity Payouts
Net assets allocated to Contracts in the annuity payout period are computed according to industry standard mortality tables and, if any, are shown in net assets from Contracts in payout on the statements of assets and liabilities. The assumed investment return is between 3.0 and 6.0 percent. The mortality risk is fully borne by the Company and may result in additional amounts being transferred into the Separate Account by the Company to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Company. Annuity payouts, if any, are included in transfers for Contract benefits and terminations on the statements of changes in net assets of the applicable Divisions.
Purchase Payments
Purchase payments received from Contract owners by the Company are credited as accumulation units as of the end of the valuation period in which received, as provided in the prospectus for the Contracts, and are reported as Contract transactions on the statements of changes in net assets of the applicable Divisions.
Net Transfers
Assets transferred by the Contract owner into or out of Divisions within the Separate Account or into or out of the fixed account, which is part of the Company's general account, are recorded on a net basis as net transfers in the statements of changes in net assets of the applicable Divisions.
Use of Estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported herein. Actual results could differ from these estimates.
COVID
The COVID-19 pandemic has caused volatility within the global economy and financial markets. This pandemic may last for an extended period of time and may continue to impact the economy for the foreseeable future. These events may negatively affect the Separate Account's operations or financial results.
E-80
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
5. EXPENSES & CONTRACT CHARGES
The following annual Separate Account charge paid to the Company is an asset-based charge and assessed through a daily reduction in unit values, which are recorded as administrative charges in the accompanying statements of operations of the applicable Divisions:
Administrative — The Company has responsibility for the administration of the Contracts and the Separate Account. Generally, the administrative charge is related to the maintenance, including distribution, of each Contract and the Separate Account.
The following annual Separate Account charges paid to the Company are asset-based charges and assessed through a daily reduction in unit values, which are recorded as expenses in the accompanying statements of operations of the applicable Divisions:
Mortality and Expense Risk — The mortality risk assumed by the Company is the risk that those insured may die sooner than anticipated and therefore, the Company will pay an aggregate amount of death benefits greater than anticipated. The expense risk assumed is the risk that expenses incurred in issuing and administering the Contracts will exceed the amounts realized from the administrative charges assessed against the Contracts. In addition, the charge compensates the Company for the risk that the insured (the annuitant) may live longer than estimated and the Company would be obligated to pay more in income payments than anticipated.
Optional Death Benefit Rider — For an additional charge, the total death benefit payable may be increased based on increases in account value of the Contracts.
Earnings Preservation Benefit — For an additional charge, the Company will provide additional amounts at death to pay expenses that may be due upon the death of the Contract owner, unless the Contract owner is a non-natural person and then the benefit is payable upon the death of the annuitant. This amount may not be sufficient to cover expenses that the Contract owner's heirs may have to pay.
Enhanced Stepped-Up Benefit Rider — For an additional charge, the total death benefit payable may be increased based on the greater of the account balance or highest annual Contract anniversary value in the Contract or the greater of the account balance, annual increase amount or highest annual Contract anniversary value in the Contract.
Preservation and Growth Rider — For an additional charge, the Company will guarantee at a future date the Account Value (adjusted for withdrawals) will not be less than the initial Purchase Payment.
The table below represents the range of effective annual rates for each respective charge for the year ended December 31, 2021.
| Administrative | 0.10 | % - 0.50% | |||||
| Mortality and Expense Risk | 0.00 | % - 2.05% | |||||
| Optional Death Benefit Rider | 0.25 | % | |||||
| Earnings Preservation Benefit | 0.25 | % | |||||
| Enhanced Stepped-Up Benefit Rider | 0.10 | % - 0.35% | |||||
| Preservation and Growth Rider | 1.15 | % - 1.80% | |||||
The above referenced charges may not necessarily correspond to the costs associated with providing the services or benefits indicated by the designation of the charge or associated with a particular Contract. The range of the effective rates disclosed above excludes any waivers granted to certain Divisions.
The following optional rider charges paid to the Company are charged at each Contract anniversary date through the redemption of units, which are recorded as Contract charges in the accompanying statements of changes in net assets of the applicable Divisions:
Guaranteed Minimum Accumulation Benefit — For an additional charge, the Company will guarantee that the Contract value will not be less than a guaranteed minimum amount at the end of a specified number of years.
E-81
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
5. EXPENSES & CONTRACT CHARGES — (Concluded)
Lifetime Withdrawal Guarantee — For an additional charge, the Company will guarantee the periodic return on the investment for life.
Guaranteed Withdrawal Benefit — For an additional charge, the Company will guarantee the periodic return on the investment.
Guaranteed Minimum Income Benefit — For an additional charge, the Company will guarantee a minimum payment regardless of market conditions.
Enhanced Death Benefit — For an additional charge, the amount of the death benefit will be the greater of the account value or the death benefit base.
Enhanced Guaranteed Withdrawal Benefit — For an additional charge, the Company will guarantee that at least the entire amount of purchase payments will be returned through a series of withdrawals without annuitizing.
The table below represents the range of effective annual rates for each respective charge for the year ended December 31, 2021:
| Guaranteed Minimum Accumulation Benefit | 0.75 | % | |||||
| Lifetime Withdrawal Guarantee | 0.50 | % - 1.50% | |||||
| Guaranteed Withdrawal Benefit | 0.90 | % | |||||
| Guaranteed Minimum Income Benefit | 0.50 | % - 1.00% | |||||
| Enhanced Death Benefit | 0.60 | % - 1.15% | |||||
| Enhanced Guaranteed Withdrawal Benefit | 0.50 | % - .55% | |||||
The above referenced charges may not necessarily correspond to the costs associated with providing the services or benefits indicated by the designation of the charge or associated with a particular Contract.
A Contract administrative charge which ranges from $0 to $30 is assessed on an annual basis for Contracts with a value of less than $50,000, which may be waived if the Contract reaches a certain asset size or under certain circumstances. The Company reserves the right to charge a transfer fee ranging from $0 to $25 after twelve transfers are made in a Contract year or, for certain Contracts. Currently, the Company is not charging a transfer fee. These charges are paid to the Company, assessed through redemption of units, and recorded as Contract charges in the accompanying statements of changes in net assets.
In addition, certain Contracts impose a surrender charge of 0% to 10% if the Contract is partially or fully surrendered within the specified surrender charge period. These charges are paid to the Company, assessed through redemption of units, and recorded as Contract charges in the accompanying statements of changes in net assets of the applicable Divisions for the years ended December 31, 2021 and 2020.
E-82
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
6. STATEMENT OF INVESTMENTS
| As of December 31, 2021 | For the year ended December 31, 2021 | ||||||||||||||||||
Shares | Cost ($) | Cost of Purchases ($) | Proceeds from Sales ($) | ||||||||||||||||
| American Funds® Global Growth Division | 6,079 | 163,660 | 19,433 | 56,644 | |||||||||||||||
| American Funds® Global Small Capitalization Division | 13,453,127 | 292,453,830 | 19,067,802 | 73,195,636 | |||||||||||||||
| American Funds® Growth Division | 10,765,568 | 753,647,820 | 186,446,539 | 215,732,094 | |||||||||||||||
| American Funds® Growth-Income Division | 12,175,017 | 505,900,018 | 22,288,362 | 134,479,695 | |||||||||||||||
| American Funds® The Bond Fund of America Division | 7,557,987 | 84,063,520 | 15,411,909 | 14,653,807 | |||||||||||||||
| BHFTI AB Global Dynamic Allocation Division | 89,608,927 | 954,342,442 | 70,690,745 | 192,875,896 | |||||||||||||||
| BHFTI Allspring Mid Cap Value Division | 15,777 | 182,550 | 6,385 | 46,976 | |||||||||||||||
| BHFTI American Funds® Balanced Allocation Division | 67,288,371 | 641,807,010 | 47,319,628 | 124,739,893 | |||||||||||||||
| BHFTI American Funds® Growth Allocation Division | 42,621,372 | 388,137,157 | 41,360,435 | 64,983,116 | |||||||||||||||
| BHFTI American Funds® Growth Division | 21,652,039 | 212,323,499 | 26,552,343 | 101,246,558 | |||||||||||||||
| BHFTI American Funds® Moderate Allocation Division | 67,388,487 | 637,270,970 | 41,793,111 | 114,717,592 | |||||||||||||||
| BHFTI BlackRock Global Tactical Strategies Division | 134,998,264 | 1,333,974,473 | 78,748,882 | 247,611,521 | |||||||||||||||
| BHFTI BlackRock High Yield Division | 46,850 | 356,889 | 71,725 | 151,881 | |||||||||||||||
| BHFTI Brighthouse Asset Allocation 100 Division | 19,311,648 | 226,139,320 | 33,705,034 | 31,807,793 | |||||||||||||||
| BHFTI Brighthouse Balanced Plus Division | 274,311,694 | 2,920,766,311 | 199,838,595 | 531,853,611 | |||||||||||||||
| BHFTI Brighthouse Small Cap Value Division | 1,069,181 | 15,400,770 | 1,994,645 | 3,799,784 | |||||||||||||||
| BHFTI Brighthouse/Aberdeen Emerging Markets Equity Division | 3,050,352 | 30,409,398 | 3,005,921 | 7,910,682 | |||||||||||||||
| BHFTI Brighthouse/Eaton Vance Floating Rate Division | 1,988,517 | 20,163,108 | 4,099,365 | 4,423,451 | |||||||||||||||
| BHFTI Brighthouse/Franklin Low Duration Total Return Division | 7,316,491 | 70,445,187 | 15,009,197 | 14,631,490 | |||||||||||||||
| BHFTI Brighthouse/Templeton International Bond Division | 587,387 | 5,970,734 | 497,498 | 625,879 | |||||||||||||||
| BHFTI Brighthouse/Wellington Large Cap Research Division | 46,904,885 | 593,636,991 | 97,023,394 | 107,670,659 | |||||||||||||||
| BHFTI CBRE Global Real Estate Division | 12,266,341 | 148,240,079 | 8,207,326 | 38,378,267 | |||||||||||||||
| BHFTI Harris Oakmark International Division | 26,827,032 | 351,125,008 | 18,089,424 | 89,741,875 | |||||||||||||||
| BHFTI Invesco Balanced-Risk Allocation Division | 41,147,946 | 411,388,791 | 32,871,159 | 62,725,568 | |||||||||||||||
| BHFTI Invesco Comstock Division | 1,077 | 15,166 | 1,116 | 50,294 | |||||||||||||||
| BHFTI Invesco Global Equity Division | 8,817,484 | 165,508,867 | 19,520,902 | 44,483,201 | |||||||||||||||
| BHFTI Invesco Small Cap Growth Division | 4,835,949 | 68,958,698 | 26,792,408 | 15,418,896 | |||||||||||||||
| BHFTI JPMorgan Core Bond Division | 6,867,334 | 71,698,358 | 7,934,522 | 9,327,125 | |||||||||||||||
| BHFTI JPMorgan Global Active Allocation Division | 53,880,681 | 604,420,341 | 45,223,566 | 113,697,117 | |||||||||||||||
| BHFTI JPMorgan Small Cap Value Division | 975,531 | 14,546,691 | 3,136,445 | 7,670,480 | |||||||||||||||
| BHFTI Loomis Sayles Global Allocation Division | 5,413,899 | 81,432,620 | 14,611,064 | 17,141,710 | |||||||||||||||
| BHFTI Loomis Sayles Growth Division | 30,182,551 | 387,584,093 | 18,842,031 | 91,958,786 | |||||||||||||||
| BHFTI MetLife Multi-Index Targeted Risk Division | 58,527,351 | 685,504,735 | 44,666,096 | 132,022,133 | |||||||||||||||
| BHFTI MFS® Research International Division | 11,497,427 | 131,183,373 | 11,750,023 | 26,993,618 | |||||||||||||||
| BHFTI Morgan Stanley Discovery Division | 34,074,859 | 726,972,749 | 477,645,189 | 161,984,854 | |||||||||||||||
| BHFTI PanAgora Global Diversified Risk Division | 8,026,638 | 86,388,317 | 13,366,697 | 15,833,259 | |||||||||||||||
| BHFTI PanAgora Global Diversified Risk II Division | 99,133,206 | 978,722,557 | 36,871,311 | 152,000,966 | |||||||||||||||
| BHFTI PIMCO Inflation Protected Bond Division | 29,950,180 | 321,968,500 | 28,950,265 | 37,919,168 | |||||||||||||||
| BHFTI PIMCO Total Return Division | 58,437,753 | 687,023,488 | 71,796,262 | 67,629,469 | |||||||||||||||
| BHFTI Schroders Global Multi-Asset Division | 47,129,259 | 549,938,251 | 3,651,820 | 127,110,876 | |||||||||||||||
| BHFTI SSGA Growth and Income ETF Division | 46,844,197 | 520,539,498 | 42,840,329 | 111,817,802 | |||||||||||||||
| BHFTI SSGA Growth ETF Division | 9,694,525 | 109,633,250 | 12,213,516 | 22,581,009 | |||||||||||||||
| BHFTI T. Rowe Price Large Cap Value Division | 20,799 | 575,307 | 22,806 | 129,858 | |||||||||||||||
| BHFTI T. Rowe Price Mid Cap Growth Division | 42,271,046 | 411,598,370 | 56,198,991 | 87,613,253 | |||||||||||||||
| BHFTI TCW Core Fixed Income Division | 4,421 | 44,912 | 2,717 | 6,414 | |||||||||||||||
| BHFTI Victory Sycamore Mid Cap Value Division | 16,614,918 | 289,278,642 | 27,013,716 | 75,156,877 | |||||||||||||||
| BHFTI Western Asset Management Government Income Division | 30,168,858 | 326,333,588 | 23,986,999 | 80,583,022 | |||||||||||||||
| BHFTII Baillie Gifford International Stock Division | 9,059,552 | 105,479,960 | 21,680,932 | 21,176,653 | |||||||||||||||
| BHFTII BlackRock Bond Income Division | 3,392,332 | 362,288,584 | 35,950,865 | 43,857,975 | |||||||||||||||
E-83
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
6. STATEMENT OF INVESTMENTS — (Continued)
| As of December 31, 2021 | For the year ended December 31, 2021 | ||||||||||||||||||
Shares | Cost ($) | Cost of Purchases ($) | Proceeds from Sales ($) | ||||||||||||||||
| BHFTII BlackRock Capital Appreciation Division | 4,438,117 | 162,439,895 | 40,897,850 | 48,467,781 | |||||||||||||||
| BHFTII BlackRock Ultra-Short Term Bond Division | 374,997 | 37,681,034 | 17,763,712 | 27,617,656 | |||||||||||||||
| BHFTII Brighthouse Asset Allocation 20 Division | 24,624,731 | 268,696,633 | 18,408,184 | 47,968,925 | |||||||||||||||
| BHFTII Brighthouse Asset Allocation 40 Division | 68,526,323 | 755,343,543 | 60,325,583 | 125,359,914 | |||||||||||||||
| BHFTII Brighthouse Asset Allocation 60 Division | 234,057,290 | 2,620,939,556 | 238,914,931 | 463,384,730 | |||||||||||||||
| BHFTII Brighthouse Asset Allocation 80 Division | 120,034,564 | 1,430,478,444 | 154,957,903 | 224,783,407 | |||||||||||||||
| BHFTII Brighthouse/Artisan Mid Cap Value Division | 690,843 | 149,548,515 | 16,728,018 | 38,573,473 | |||||||||||||||
| BHFTII Brighthouse/Dimensional International Small Company Division | 518,296 | 6,658,971 | 771,961 | 1,553,367 | |||||||||||||||
| BHFTII Brighthouse/Wellington Balanced Division | 27,931,016 | 500,737,117 | 69,710,343 | 67,269,751 | |||||||||||||||
| BHFTII Brighthouse/Wellington Core Equity Opportunities Division | 13,476,662 | 404,107,789 | 38,256,800 | 89,950,794 | |||||||||||||||
| BHFTII Frontier Mid Cap Growth Division | 13,729,734 | 415,487,981 | 83,045,015 | 70,895,111 | |||||||||||||||
| BHFTII Jennison Growth Division | 14,122,523 | 227,052,739 | 83,632,915 | 70,159,684 | |||||||||||||||
| BHFTII Loomis Sayles Small Cap Core Division | 562,106 | 132,079,559 | 16,233,167 | 30,991,388 | |||||||||||||||
| BHFTII Loomis Sayles Small Cap Growth Division | 4,304,776 | 54,835,629 | 10,253,555 | 11,166,066 | |||||||||||||||
| BHFTII MetLife Aggregate Bond Index Division | 84,086,502 | 912,404,172 | 84,383,005 | 80,709,048 | |||||||||||||||
| BHFTII MetLife Mid Cap Stock Index Division | 24,323,503 | 376,647,000 | 40,674,729 | 96,940,115 | |||||||||||||||
| BHFTII MetLife MSCI EAFE® Index Division | 29,242,287 | 351,728,813 | 18,951,124 | 60,244,563 | |||||||||||||||
| BHFTII MetLife Russell 2000® Index Division | 14,891,127 | 250,059,765 | 41,881,672 | 61,822,248 | |||||||||||||||
| BHFTII MetLife Stock Index Division | 49,695,297 | 1,953,745,514 | 277,664,480 | 511,297,413 | |||||||||||||||
| BHFTII MFS® Total Return Division | 658,240 | 99,893,720 | 12,428,613 | 15,681,864 | |||||||||||||||
| BHFTII MFS® Value Division | 35,163,104 | 523,867,842 | 28,513,587 | 124,532,061 | |||||||||||||||
| BHFTII Neuberger Berman Genesis Division | 12,254,029 | 213,524,275 | 25,888,443 | 49,533,205 | |||||||||||||||
| BHFTII T. Rowe Price Large Cap Growth Division | 25,545,643 | 543,306,097 | 103,005,229 | 127,924,826 | |||||||||||||||
| BHFTII T. Rowe Price Small Cap Growth Division | 18,732,048 | 359,977,593 | 60,691,106 | 75,450,647 | |||||||||||||||
| BHFTII Van Eck Global Natural Resources Division | 2,022,004 | 20,705,607 | 1,648,769 | 9,769,311 | |||||||||||||||
| BHFTII Western Asset Management Strategic Bond Opportunities Division | 27,991,150 | 360,984,483 | 24,186,429 | 47,348,397 | |||||||||||||||
| BHFTII Western Asset Management U.S. Government Division | 10,743,706 | 128,046,029 | 15,665,680 | 25,461,431 | |||||||||||||||
| BlackRock Global Allocation V.I. Division | 1,395 | 20,503 | 6,308 | 104,786 | |||||||||||||||
| Calvert VP SRI Balanced Division | 21,306,310 | 43,798,200 | 4,771,673 | 6,924,234 | |||||||||||||||
| Calvert VP SRI Mid Cap Division | 209,781 | 6,404,832 | 458,172 | 902,579 | |||||||||||||||
| Delaware VIP® Small Cap Value Division | 20 | 694 | 7 | 9 | |||||||||||||||
| Fidelity® VIP Contrafund® Division | 18,696 | 636,931 | 131,354 | 122,978 | |||||||||||||||
| Fidelity® VIP Equity-Income Division | 2,777,838 | 61,965,811 | 9,706,571 | 6,856,076 | |||||||||||||||
| Fidelity® VIP Freedom 2020 Division | 285,319 | 3,976,980 | 1,776,595 | 1,808,824 | |||||||||||||||
| Fidelity® VIP Freedom 2025 Division | 469,022 | 7,303,377 | 3,454,371 | 2,737,146 | |||||||||||||||
| Fidelity® VIP Freedom 2030 Division | 496,161 | 7,625,410 | 4,068,177 | 2,091,219 | |||||||||||||||
| Fidelity® VIP Freedom 2035 Division | 158,432 | 4,180,955 | 3,033,699 | 653,490 | |||||||||||||||
| Fidelity® VIP Freedom 2040 Division | 105,404 | 2,615,976 | 1,814,101 | 894,856 | |||||||||||||||
| Fidelity® VIP Freedom 2045 Division | 105,443 | 2,487,149 | 1,078,010 | 142,222 | |||||||||||||||
| Fidelity® VIP Freedom 2050 Division | 257,709 | 5,647,673 | 3,109,176 | 1,015,362 | |||||||||||||||
| Fidelity® VIP FundsManager 50% Division | 16,596,693 | 197,841,737 | 6,928,538 | 29,886,898 | |||||||||||||||
| Fidelity® VIP FundsManager 60% Division | 19,509,346 | 199,855,204 | 6,774,803 | 29,647,669 | |||||||||||||||
| Fidelity® VIP Government Money Market Division | 4,949,044 | 4,949,044 | 594,844 | 1,610,245 | |||||||||||||||
| Fidelity® VIP Growth Division | 1,376,109 | 84,654,422 | 28,608,558 | 12,963,425 | |||||||||||||||
| Fidelity® VIP Investment Grade Bond Division | 668,911 | 8,732,580 | 1,011,959 | 1,133,359 | |||||||||||||||
| Fidelity® VIP Mid Cap Division | 13,855 | 447,108 | 86,921 | 53,303 | |||||||||||||||
| FTVIPT Templeton Developing Markets VIP Division | 4,663 | 36,624 | 1,579 | 2,285 | |||||||||||||||
| FTVIPT Templeton Foreign VIP Division | 36 | 503 | 504 | 1 | |||||||||||||||
E-84
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
6. STATEMENT OF INVESTMENTS — (Concluded)
| As of December 31, 2021 | For the year ended December 31, 2021 | ||||||||||||||||||
Shares | Cost ($) | Cost of Purchases ($) | Proceeds from Sales ($) | ||||||||||||||||
| Janus Henderson Enterprise Division | 1,657 | 111,006 | 19,366 | 32,938 | |||||||||||||||
| LMPVET ClearBridge Variable Appreciation Division | 984 | 38,922 | 3,748 | 5,875 | |||||||||||||||
| LMPVET ClearBridge Variable Dividend Strategy Division | 4,046 | 71,820 | 11,280 | 7,916 | |||||||||||||||
| LMPVET ClearBridge Variable Large Cap Growth Division | 12,863 | 332,451 | 53,564 | 76,934 | |||||||||||||||
| LMPVET ClearBridge Variable Small Cap Growth Division | 1,694 | 48,082 | 14,701 | 15,248 | |||||||||||||||
| LMPVIT Western Asset Core Plus Division | 71 | 416 | 11 | 36,990 | |||||||||||||||
| Morgan Stanley VIF Global Infrastructure Division | 7,951 | 61,522 | 11,546 | 11,533 | |||||||||||||||
| PIMCO VIT CommodityRealReturn® Strategy Division | 5,071 | 37,374 | 1,612 | 6,221 | |||||||||||||||
| PIMCO VIT Dynamic Bond Division | 1,994 | 20,438 | 1,470 | 17,330 | |||||||||||||||
| PIMCO VIT Emerging Markets Bond Division | 3,245 | 41,505 | 3,620 | 9,256 | |||||||||||||||
| TAP 1919 Variable Socially Responsive Balanced Division | 280 | 8,061 | 981 | 28,176 | |||||||||||||||
E-85
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
7. SCHEDULES OF UNITS
For the years ended December 31, 2021 and 2020:
| American Funds® Global Growth Division | American Funds® Global Small Capitalization Division | American Funds® Growth Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 31,184 | 34,762 | 7,379,440 | 8,707,173 | 2,243,998 | 2,560,095 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 550 | 594 | 472,971 | 630,914 | 162,237 | 220,178 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (5,531 | ) | (4,172 | ) | (1,309,041 | ) | (1,958,647 | ) | (422,692 | ) | (536,275 | ) | |||||||||||||||
| Units end of year | 26,203 | 31,184 | 6,543,370 | 7,379,440 | 1,983,543 | 2,243,998 | |||||||||||||||||||||
| BHFTI Allspring Mid Cap Value Division | BHFTI American Funds® Balanced Allocation Division | BHFTI American Funds® Growth Allocation Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 7,353 | 11,942 | 40,375,709 | 45,337,707 | 21,672,182 | 23,820,328 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 148 | 765 | 1,886,409 | 2,636,455 | 1,705,617 | 1,882,072 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (1,237 | ) | (5,354 | ) | (6,738,895 | ) | (7,598,453 | ) | (3,262,262 | ) | (4,030,218 | ) | |||||||||||||||
| Units end of year | 6,264 | 7,353 | 35,523,223 | 40,375,709 | 20,115,537 | 21,672,182 | |||||||||||||||||||||
| BHFTI BlackRock High Yield Division | BHFTI Brighthouse Asset Allocation 100 Division | BHFTI Brighthouse Balanced Plus Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 48,501 | 45,780 | 8,453,543 | 9,271,704 | 189,208,847 | 212,617,604 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 5,457 | 6,032 | 584,898 | 799,905 | 6,206,404 | 9,802,112 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (16,194 | ) | (3,311 | ) | (1,135,923 | ) | (1,618,066 | ) | (31,234,097 | ) | (33,210,869 | ) | |||||||||||||||
| Units end of year | 37,764 | 48,501 | 7,902,518 | 8,453,543 | 164,181,154 | 189,208,847 | |||||||||||||||||||||
| BHFTI Brighthouse/Franklin Low Duration Total Return Division | BHFTI Brighthouse/Templeton International Bond Division | BHFTI Brighthouse/Wellington Large Cap Research Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 6,584,220 | 7,151,707 | 421,632 | 432,512 | 7,965,776 | 8,991,065 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 2,039,162 | 1,702,347 | 76,933 | 99,996 | 262,336 | 385,958 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (2,043,994 | ) | (2,269,834 | ) | (83,710 | ) | (110,876 | ) | (1,175,650 | ) | (1,411,247 | ) | |||||||||||||||
| Units end of year | 6,579,388 | 6,584,220 | 414,855 | 421,632 | 7,052,462 | 7,965,776 | |||||||||||||||||||||
(a) Had no net assets at December 31, 2020.
E-86
| American Funds® Growth-Income Division | American Funds® The Bond Fund of America Division | BHFTI AB Global Dynamic Allocation Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 2,655,428 | 2,980,149 | 4,240,005 | 4,042,100 | 78,219,417 | 89,425,360 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 109,254 | 208,521 | 848,196 | 1,289,885 | 1,480,030 | 1,862,183 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (488,560 | ) | (533,242 | ) | (981,927 | ) | (1,091,980 | ) | (12,367,682 | ) | (13,068,126 | ) | |||||||||||||||
| Units end of year | 2,276,122 | 2,655,428 | 4,106,274 | 4,240,005 | 67,331,765 | 78,219,417 | |||||||||||||||||||||
| BHFTI American Funds® Growth Division | BHFTI American Funds® Moderate Allocation Division | BHFTI BlackRock Global Tactical Strategies Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 10,039,904 | 13,396,429 | 42,632,501 | 48,048,192 | 103,549,645 | 117,923,351 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 520,600 | 892,813 | 841,957 | 1,303,118 | 1,928,272 | 3,128,847 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (2,857,319 | ) | (4,249,338 | ) | (6,135,572 | ) | (6,718,809 | ) | (16,519,282 | ) | (17,502,553 | ) | |||||||||||||||
| Units end of year | 7,703,185 | 10,039,904 | 37,338,886 | 42,632,501 | 88,958,635 | 103,549,645 | |||||||||||||||||||||
| BHFTI Brighthouse Small Cap Value Division | BHFTI Brighthouse/Aberdeen Emerging Markets Equity Division | BHFTI Brighthouse/ Eaton Vance Floating Rate Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 492,592 | 507,130 | 3,047,927 | 3,782,564 | 1,594,088 | 2,151,505 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 74,177 | 88,010 | 490,819 | 561,725 | 384,224 | 197,365 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (116,805 | ) | (102,548 | ) | (750,778 | ) | (1,296,362 | ) | (438,278 | ) | (754,782 | ) | |||||||||||||||
| Units end of year | 449,964 | 492,592 | 2,787,968 | 3,047,927 | 1,540,034 | 1,594,088 | |||||||||||||||||||||
| BHFTI CBRE Global Real Estate Division | BHFTI Harris Oakmark International Division | BHFTI Invesco Balanced-Risk Allocation Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 7,956,916 | 8,161,374 | 13,069,949 | 13,819,826 | 305,812,256 | 351,901,497 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 525,215 | 1,478,193 | 1,251,327 | 3,134,776 | 24,142,699 | 13,478,804 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (1,870,013 | ) | (1,682,651 | ) | (3,286,875 | ) | (3,884,653 | ) | (58,072,016 | ) | (59,568,045 | ) | |||||||||||||||
| Units end of year | 6,612,118 | 7,956,916 | 11,034,401 | 13,069,949 | 271,882,939 | 305,812,256 | |||||||||||||||||||||
E-87
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
7. SCHEDULES OF UNITS — (Continued)
For the years ended December 31, 2021 and 2020:
| BHFTI Invesco Comstock Division | BHFTI Invesco Global Equity Division | BHFTI Invesco Small Cap Growth Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 6,488 | 6,188 | 13,483,627 | 15,182,482 | 1,205,933 | 1,335,510 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 33 | 626 | 1,727,400 | 1,981,053 | 312,705 | 406,831 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (2,127 | ) | (326 | ) | (2,312,469 | ) | (3,679,908 | ) | (358,532 | ) | (536,408 | ) | |||||||||||||||
| Units end of year | 4,394 | 6,488 | 12,898,558 | 13,483,627 | 1,160,106 | 1,205,933 | |||||||||||||||||||||
| BHFTI Loomis Sayles Global Allocation Division | BHFTI Loomis Sayles Growth Division | BHFTI MetLife Multi-Index Targeted Risk Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 3,759,111 | 4,334,728 | 16,516,881 | 21,007,586 | 511,620,263 | 572,965,706 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 320,888 | 438,446 | 639,264 | 1,004,760 | 15,609,152 | 29,801,011 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (730,697 | ) | (1,014,063 | ) | (3,401,449 | ) | (5,495,465 | ) | (87,505,781 | ) | (91,146,454 | ) | |||||||||||||||
| Units end of year | 3,349,302 | 3,759,111 | 13,754,696 | 16,516,881 | 439,723,634 | 511,620,263 | |||||||||||||||||||||
| BHFTI PanAgora Global Diversified Risk II Division | BHFTI PIMCO Inflation Protected Bond Division | BHFTI PIMCO Total Return Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 70,369,642 | 79,861,505 | 19,226,114 | 20,971,534 | 34,236,760 | 36,674,056 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 1,632,610 | 2,310,214 | 3,785,991 | 3,855,134 | 5,009,745 | 6,814,561 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (11,738,743 | ) | (11,802,077 | ) | (4,175,576 | ) | (5,600,554 | ) | (6,626,987 | ) | (9,251,857 | ) | |||||||||||||||
| Units end of year | 60,263,509 | 70,369,642 | 18,836,529 | 19,226,114 | 32,619,518 | 34,236,760 | |||||||||||||||||||||
| BHFTI T. Rowe Price Large Cap Value Division | BHFTI T. Rowe Price Mid Cap Growth Division | BHFTI TCW Core Fixed Income Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 28,681 | 33,084 | 13,981,484 | 16,418,378 | 4,573 | 22,517 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 460 | 35,014 | 907,184 | 1,895,616 | — | — | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (3,178 | ) | (39,417 | ) | (2,826,999 | ) | (4,332,510 | ) | (517 | ) | (17,944 | ) | |||||||||||||||
| Units end of year | 25,963 | 28,681 | 12,061,669 | 13,981,484 | 4,056 | 4,573 | |||||||||||||||||||||
(a) Had no net assets at December 31, 2020.
E-88
| BHFTI JPMorgan Core Bond Division | BHFTI JPMorgan Global Active Allocation Division | BHFTI JPMorgan Small Cap Value Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 5,908,327 | 6,207,730 | 462,254,239 | 534,476,737 | 768,068 | 808,325 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 1,281,136 | 1,653,001 | 21,135,588 | 12,674,579 | 140,144 | 236,827 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (1,461,929 | ) | (1,952,404 | ) | (80,392,125 | ) | (84,897,077 | ) | (307,892 | ) | (277,084 | ) | |||||||||||||||
| Units end of year | 5,727,534 | 5,908,327 | 402,997,702 | 462,254,239 | 600,320 | 768,068 | |||||||||||||||||||||
| BHFTI MFS® Research International Division | BHFTI Morgan Stanley Discovery Division | BHFTI PanAgora Global Diversified Risk Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 8,036,159 | 8,765,910 | 9,587,827 | 11,049,927 | 67,636,602 | 64,915,547 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 488,639 | 756,847 | 1,204,971 | 1,812,636 | 8,055,309 | 15,577,244 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (1,362,071 | ) | (1,486,598 | ) | (2,223,096 | ) | (3,274,736 | ) | (14,085,640 | ) | (12,856,189 | ) | |||||||||||||||
| Units end of year | 7,162,727 | 8,036,159 | 8,569,702 | 9,587,827 | 61,606,271 | 67,636,602 | |||||||||||||||||||||
| BHFTI Schroders Global Multi-Asset Division | BHFTI SSGA Growth and Income ETF Division | BHFTI SSGA Growth ETF Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 455,182,622 | 524,050,033 | 30,781,265 | 35,242,960 | 6,011,201 | 6,956,479 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 11,365,724 | 17,333,512 | 457,013 | 861,871 | 298,637 | 377,341 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (84,800,958 | ) | (86,200,923 | ) | (4,977,124 | ) | (5,323,566 | ) | (1,042,516 | ) | (1,322,619 | ) | |||||||||||||||
| Units end of year | 381,747,388 | 455,182,622 | 26,261,154 | 30,781,265 | 5,267,322 | 6,011,201 | |||||||||||||||||||||
| BHFTI Victory Sycamore Mid Cap Value Division | BHFTI Western Asset Management Government Income Division | BHFTII Baillie Gifford International Stock Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 7,196,575 | 7,872,022 | 32,375,503 | 32,564,019 | 5,562,590 | 6,117,346 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 597,009 | 781,986 | 5,176,247 | 10,415,587 | 614,048 | 603,330 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (1,617,709 | ) | (1,457,433 | ) | (10,206,580 | ) | (10,604,103 | ) | (1,126,219 | ) | (1,158,086 | ) | |||||||||||||||
| Units end of year | 6,175,875 | 7,196,575 | 27,345,170 | 32,375,503 | 5,050,419 | 5,562,590 | |||||||||||||||||||||
E-89
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
7. SCHEDULES OF UNITS — (Continued)
For the years ended December 31, 2021 and 2020:
| BHFTII BlackRock Bond Income Division | BHFTII BlackRock Capital Appreciation Division | BHFTII BlackRock Ultra-Short Term Bond Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 7,023,787 | 7,472,189 | 3,762,727 | 4,262,514 | 3,242,202 | 3,255,640 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 846,823 | 1,222,384 | 253,853 | 571,791 | 1,151,808 | 1,209,912 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (1,320,014 | ) | (1,670,786 | ) | (710,427 | ) | (1,071,578 | ) | (1,648,208 | ) | (1,223,350 | ) | |||||||||||||||
| Units end of year | 6,550,596 | 7,023,787 | 3,306,153 | 3,762,727 | 2,745,802 | 3,242,202 | |||||||||||||||||||||
| BHFTII Brighthouse Asset Allocation 80 Division | BHFTII Brighthouse/Artisan Mid Cap Value Division | BHFTII Brighthouse/ Dimensional International Small Company Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 68,356,199 | 76,334,895 | 3,488,897 | 3,807,667 | 256,198 | 299,239 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 1,868,468 | 2,283,827 | 292,322 | 372,989 | 20,349 | 51,604 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (9,021,098 | ) | (10,262,523 | ) | (706,682 | ) | (691,759 | ) | (58,791 | ) | (94,645 | ) | |||||||||||||||
| Units end of year | 61,203,569 | 68,356,199 | 3,074,537 | 3,488,897 | 217,756 | 256,198 | |||||||||||||||||||||
| BHFTII Jennison Growth Division | BHFTII Loomis Sayles Small Cap Core Division | BHFTII Loomis Sayles Small Cap Growth Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 10,579,883 | 11,874,095 | 2,707,781 | 3,029,622 | 1,855,495 | 2,127,099 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 1,654,102 | 3,790,995 | 141,843 | 233,914 | 155,026 | 261,748 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (3,160,568 | ) | (5,085,207 | ) | (478,635 | ) | (555,755 | ) | (315,113 | ) | (533,352 | ) | |||||||||||||||
| Units end of year | 9,073,417 | 10,579,883 | 2,370,989 | 2,707,781 | 1,695,408 | 1,855,495 | |||||||||||||||||||||
| BHFTII MetLife Russell 2000® Index Division | BHFTII MetLife Stock Index Division | BHFTII MFS® Total Return Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 7,531,805 | 8,484,812 | 25,861,616 | 29,028,565 | 2,535,226 | 2,894,622 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 945,637 | 1,413,138 | 1,199,953 | 2,507,005 | 159,563 | 180,941 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (1,685,404 | ) | (2,366,145 | ) | (4,456,051 | ) | (5,673,954 | ) | (388,069 | ) | (540,337 | ) | |||||||||||||||
| Units end of year | 6,792,038 | 7,531,805 | 22,605,518 | 25,861,616 | 2,306,720 | 2,535,226 | |||||||||||||||||||||
(a) Had no net assets at December 31, 2020.
E-90
| BHFTII Brighthouse Asset Allocation 20 Division | BHFTII Brighthouse Asset Allocation 40 Division | BHFTII Brighthouse Asset Allocation 60 Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 17,601,429 | 19,652,658 | 43,790,060 | 49,796,769 | 138,788,939 | 157,596,785 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 863,948 | 1,950,902 | 1,072,092 | 1,628,804 | 2,732,076 | 3,761,127 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (3,061,799 | ) | (4,002,131 | ) | (6,348,733 | ) | (7,635,513 | ) | (20,694,316 | ) | (22,568,973 | ) | |||||||||||||||
| Units end of year | 15,403,578 | 17,601,429 | 38,513,419 | 43,790,060 | 120,826,699 | 138,788,939 | |||||||||||||||||||||
| BHFTII Brighthouse/ Wellington Balanced Division | BHFTII Brighthouse/ Wellington Core Equity Opportunities Division | BHFTII Frontier Mid Cap Growth Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 7,735,328 | 8,451,244 | 7,259,472 | 8,239,874 | 4,933,281 | 5,529,994 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 243,006 | 300,489 | 336,245 | 491,188 | 138,681 | 188,139 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (872,159 | ) | (1,016,405 | ) | (1,304,515 | ) | (1,471,590 | ) | (604,108 | ) | (784,852 | ) | |||||||||||||||
| Units end of year | 7,106,175 | 7,735,328 | 6,291,202 | 7,259,472 | 4,467,854 | 4,933,281 | |||||||||||||||||||||
| BHFTII MetLife Aggregate Bond Index Division | BHFTII MetLife Mid Cap Stock Index Division | BHFTII MetLife MSCI EAFE® Index Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 48,820,793 | 51,794,175 | 11,467,060 | 12,674,256 | 24,590,517 | 25,852,531 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 8,057,405 | 11,098,031 | 802,132 | 1,865,654 | 1,806,217 | 3,677,350 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (8,492,950 | ) | (14,071,413 | ) | (2,410,093 | ) | (3,072,850 | ) | (3,985,219 | ) | (4,939,364 | ) | |||||||||||||||
| Units end of year | 48,385,248 | 48,820,793 | 9,859,099 | 11,467,060 | 22,411,515 | 24,590,517 | |||||||||||||||||||||
| BHFTII MFS® Value Division | BHFTII Neuberger Berman Genesis Division | BHFTII T. Rowe Price Large Cap Growth Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 45,919,271 | 47,345,124 | 6,733,229 | 7,645,037 | 13,310,314 | 15,477,657 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 5,242,917 | 8,106,642 | 361,689 | 466,818 | 1,193,212 | 2,187,373 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (10,305,762 | ) | (9,532,495 | ) | (1,182,625 | ) | (1,378,626 | ) | (2,856,275 | ) | (4,354,716 | ) | |||||||||||||||
| Units end of year | 40,856,426 | 45,919,271 | 5,912,293 | 6,733,229 | 11,647,251 | 13,310,314 | |||||||||||||||||||||
E-91
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
7. SCHEDULES OF UNITS — (Continued)
For the years ended December 31, 2021 and 2020:
| BHFTII T. Rowe Price Small Cap Growth Division | BHFTII Van Eck Global Natural Resources Division | BHFTII Western Asset Management Strategic Bond Opportunities Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 7,569,000 | 8,620,361 | 2,324,890 | 2,701,656 | 11,354,141 | 12,363,002 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 511,407 | 980,571 | 206,105 | 721,981 | 1,068,553 | 1,453,040 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (1,427,438 | ) | (2,031,932 | ) | (796,585 | ) | (1,098,747 | ) | (1,967,245 | ) | (2,461,901 | ) | |||||||||||||||
| Units end of year | 6,652,969 | 7,569,000 | 1,734,410 | 2,324,890 | 10,455,449 | 11,354,141 | |||||||||||||||||||||
| Calvert VP SRI Mid Cap Division | Delaware VIP® Small Cap Value Division | Fidelity® VIP Contrafund® Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 92,109 | 109,291 | 448 | 448 | 61,965 | 66,654 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 6,535 | 3,333 | — | — | 1,124 | 1,104 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (14,637 | ) | (20,515 | ) | — | — | (7,238 | ) | (5,793 | ) | |||||||||||||||||
| Units end of year | 84,007 | 92,109 | 448 | 448 | 55,851 | 61,965 | |||||||||||||||||||||
| Fidelity® VIP Freedom 2030 Division | Fidelity® VIP Freedom 2035 Division | Fidelity® VIP Freedom 2040 Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 232,863 | 178,878 | 56,150 | 15,788 | 49,758 | 39,636 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 131,509 | 111,619 | 73,525 | 45,487 | 41,655 | 29,397 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (74,192 | ) | (57,634 | ) | (17,436 | ) | (5,125 | ) | (22,919 | ) | (19,275 | ) | |||||||||||||||
| Units end of year | 290,180 | 232,863 | 112,239 | 56,150 | 68,494 | 49,758 | |||||||||||||||||||||
| Fidelity® VIP FundsManager 60% Division | Fidelity® VIP Government Money Market Division | Fidelity® VIP Growth Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 13,649,023 | 15,189,665 | 366,357 | 330,518 | 663,454 | 744,359 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 126,055 | 39,161 | 46,085 | 205,387 | 15,548 | 25,138 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (1,438,439 | ) | (1,579,803 | ) | (105,597 | ) | (169,548 | ) | (67,009 | ) | (106,043 | ) | |||||||||||||||
| Units end of year | 12,336,639 | 13,649,023 | 306,845 | 366,357 | 611,993 | 663,454 | |||||||||||||||||||||
(a) Had no net assets at December 31, 2020.
E-92
| BHFTII Western Asset Management U.S. Government Division | BlackRock Global Allocation V.I. Division | Calvert VP SRI Balanced Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 7,382,234 | 7,078,457 | 4,081 | 4,191 | 954,567 | 1,030,290 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 1,270,752 | 2,751,545 | 61 | 14 | 77,181 | 88,215 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (1,982,207 | ) | (2,447,768 | ) | (3,490 | ) | (124 | ) | (137,048 | ) | (163,938 | ) | |||||||||||||||
| Units end of year | 6,670,779 | 7,382,234 | 652 | 4,081 | 894,700 | 954,567 | |||||||||||||||||||||
| Fidelity® VIP Equity-Income Division | Fidelity® VIP Freedom 2020 Division | Fidelity® VIP Freedom 2025 Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 1,351,903 | 1,544,624 | 175,053 | 135,554 | 270,297 | 158,625 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 22,948 | 26,275 | 58,928 | 78,246 | 116,998 | 187,895 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (126,815 | ) | (218,996 | ) | (70,601 | ) | (38,747 | ) | (99,323 | ) | (76,223 | ) | |||||||||||||||
| Units end of year | 1,248,036 | 1,351,903 | 163,380 | 175,053 | 287,972 | 270,297 | |||||||||||||||||||||
| Fidelity® VIP Freedom 2045 Division | Fidelity® VIP Freedom 2050 Division | Fidelity® VIP FundsManager 50% Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 48,514 | 26,012 | 104,593 | 41,247 | 13,833,224 | 15,805,863 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 23,796 | 27,393 | 75,196 | 70,240 | 32,176 | 44,436 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (3,814 | ) | (4,891 | ) | (30,333 | ) | (6,894 | ) | (1,383,410 | ) | (2,017,075 | ) | |||||||||||||||
| Units end of year | 68,496 | 48,514 | 149,456 | 104,593 | 12,481,990 | 13,833,224 | |||||||||||||||||||||
| Fidelity® VIP Investment Grade Bond Division | Fidelity® VIP Mid Cap Division | FTVIPT Templeton Developing Markets VIP Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 235,580 | 240,865 | 47,935 | 51,631 | 24,767 | 24,767 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 24,406 | 64,829 | 43 | 523 | — | — | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (36,145 | ) | (70,114 | ) | (4,246 | ) | (4,219 | ) | (760 | ) | — | ||||||||||||||||
| Units end of year | 223,841 | 235,580 | 43,732 | 47,935 | 24,007 | 24,767 | |||||||||||||||||||||
E-93
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
7. SCHEDULES OF UNITS — (Concluded)
For the years ended December 31, 2021 and 2020:
| FTVIPT Templeton Foreign VIP Division | Janus Henderson Enterprise Division | LMPVET ClearBridge Variable Appreciation Division | |||||||||||||||||||||
| 2021 (a) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Units beginning of year | — | 10,328 | 10,195 | 4,985 | 5,773 | ||||||||||||||||||
| Units issued and transferred from other funding options | 112 | 329 | 1,204 | 118 | 64 | ||||||||||||||||||
| Units redeemed and transferred to other funding options | — | (1,950 | ) | (1,071 | ) | (493 | ) | (852 | ) | ||||||||||||||
| Units end of year | 112 | 8,707 | 10,328 | 4,610 | 4,985 | ||||||||||||||||||
| LMPVIT Western Asset Core Plus Division | Morgan Stanley VIF Global Infrastructure Division | PIMCO VIT CommodityRealReturn® Strategy Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 9,712 | 10,910 | 4,056 | 4,476 | 5,152 | 5,237 | |||||||||||||||||||||
| Units issued and transferred from other funding options | — | — | 493 | 220 | 18 | 255 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (9,604 | ) | (1,198 | ) | (698 | ) | (640 | ) | (719 | ) | (340 | ) | |||||||||||||||
| Units end of year | 108 | 9,712 | 3,851 | 4,056 | 4,451 | 5,152 | |||||||||||||||||||||
(a) Had no net assets at December 31, 2020.
E-94
| LMPVET ClearBridge Variable Dividend Strategy Division | LMPVET ClearBridge Variable Large Cap Growth Division | LMPVET ClearBridge Variable Small Cap Growth Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 43,961 | 41,412 | 78,691 | 92,711 | 8,447 | 8,421 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 1,340 | 3,544 | 3,308 | 4,012 | 997 | 1,620 | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (3,140 | ) | (995 | ) | (10,512 | ) | (18,032 | ) | (1,872 | ) | (1,594 | ) | |||||||||||||||
| Units end of year | 42,161 | 43,961 | 71,487 | 78,691 | 7,572 | 8,447 | |||||||||||||||||||||
| PIMCO VIT Dynamic Bond Division | PIMCO VIT Emerging Markets Bond Division | TAP 1919 Variable Socially Responsive Balanced Division | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Units beginning of year | 3,381 | 8,103 | 4,012 | 5,135 | 4,540 | 4,540 | |||||||||||||||||||||
| Units issued and transferred from other funding options | 62 | 117 | 156 | 211 | — | — | |||||||||||||||||||||
| Units redeemed and transferred to other funding options | (1,563 | ) | (4,839 | ) | (738 | ) | (1,334 | ) | (3,455 | ) | — | ||||||||||||||||
| Units end of year | 1,880 | 3,381 | 3,430 | 4,012 | 1,085 | 4,540 | |||||||||||||||||||||
E-95
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
8. FINANCIAL HIGHLIGHTS
The Company sells a number of variable annuity products which have unique combinations of features and fees, some of which directly affect the unit values of the Divisions. Differences in the fee structures result in a variety of unit values, expense ratios, and total returns.
The following table is a summary of unit values and units outstanding for the Contracts, net assets, net investment income ratios, expense ratios, excluding expenses for the underlying fund, series, or portfolio, and total return ratios for the respective stated periods in the five years ended December 31, 2021:
| As of December 31 | For the year ended December 31 | ||||||||||||||||||||||||||||||
| Units | Unit Value Lowest to Highest ($) | Net Assets ($) | Investment1 Income Ratio (%) | Expense Ratio2 Lowest to Highest (%) | Total Return3 Lowest to Highest (%) | ||||||||||||||||||||||||||
| American Funds® Global | 2021 | 26,203 | 10.43 | 273,167 | 0.33 | 0.90 | 15.38 | ||||||||||||||||||||||||
| Growth Division | 2020 | 31,184 | 9.04 | 281,770 | 0.35 | 0.90 | 29.29 | ||||||||||||||||||||||||
| 2019 | 34,762 | 6.99 | 242,935 | 1.14 | 0.90 | 34.06 | |||||||||||||||||||||||||
| 2018 | 48,260 | 5.21 | 251,565 | 0.60 | 0.90 | (9.86) | |||||||||||||||||||||||||
| 2017 | 64,628 | 5.78 | 373,749 | 0.53 | 0.90 | 30.30 | |||||||||||||||||||||||||
| American Funds® Global | 2021 | 6,543,370 | 6.68 - 81.70 | 443,145,956 | — | 0.50 - 2.50 | 4.10 - 6.05 | ||||||||||||||||||||||||
| Small Capitalization Division | 2020 | 7,379,440 | 6.36 - 77.12 | 474,942,195 | 0.17 | 0.50 - 2.50 | 26.51 - 28.88 | ||||||||||||||||||||||||
| 2019 | 8,707,173 | 4.98 - 59.90 | 437,123,606 | 0.15 | 0.50 - 2.50 | 28.27 - 30.67 | |||||||||||||||||||||||||
| 2018 | 10,120,809 | 3.85 - 45.89 | 391,323,313 | 0.08 | 0.50 - 2.50 | (12.77) - (11.13) | |||||||||||||||||||||||||
| 2017 | 11,417,354 | 4.37 - 51.69 | 501,546,451 | 0.43 | 0.50 - 2.50 | 22.80 - 25.08 | |||||||||||||||||||||||||
| American Funds® Growth | 2021 | 1,983,543 | 4.12 - 996.38 | 1,359,475,833 | 0.21 | 0.50 - 2.35 | 19.16 - 21.08 | ||||||||||||||||||||||||
| Division | 2020 | 2,243,998 | 3.43 - 822.93 | 1,297,004,971 | 0.32 | 0.50 - 2.35 | 48.54 - 50.94 | ||||||||||||||||||||||||
| 2019 | 2,560,095 | 2.30 - 545.20 | 1,023,148,092 | 0.73 | 0.50 - 2.35 | 27.74 - 29.80 | |||||||||||||||||||||||||
| 2018 | 2,922,123 | 1.79 - 420.04 | 911,540,508 | 0.42 | 0.50 - 2.35 | (2.58) - (1.00) | |||||||||||||||||||||||||
| 2017 | 3,364,829 | 1.82 - 424.27 | 1,071,645,690 | 0.49 | 0.50 - 2.35 | 25.32 - 27.34 | |||||||||||||||||||||||||
| American Funds® | 2021 | 2,276,122 | 34.22 - 472.35 | 808,908,049 | 1.10 | 0.50 - 2.35 | 21.21 - 23.17 | ||||||||||||||||||||||||
| Growth-Income Division | 2020 | 2,655,428 | 28.02 - 383.50 | 766,106,526 | 1.35 | 0.50 - 2.35 | 10.90 - 12.69 | ||||||||||||||||||||||||
| 2019 | 2,980,149 | 25.08 - 340.30 | 767,275,578 | 1.62 | 0.50 - 2.35 | 23.21 - 25.19 | |||||||||||||||||||||||||
| 2018 | 3,405,907 | 20.20 - 271.82 | 704,784,793 | 1.35 | 0.50 - 2.35 | (4.08) - (2.52) | |||||||||||||||||||||||||
| 2017 | 3,958,831 | 20.90 - 278.86 | 845,856,636 | 1.36 | 0.50 - 2.35 | 19.55 - 21.47 | |||||||||||||||||||||||||
| American Funds® The Bond | 2021 | 4,106,274 | 1.17 - 24.96 | 83,591,263 | 1.40 | 0.50 - 2.10 | (2.38) - (0.95) | ||||||||||||||||||||||||
| Fund of America Division | 2020 | 4,240,005 | 1.19 - 25.20 | 87,818,399 | 2.17 | 0.50 - 2.10 | 7.45 - 9.02 | ||||||||||||||||||||||||
| 2019 | 4,042,100 | 1.09 - 23.11 | 77,224,066 | 2.59 | 0.50 - 2.10 | 7.09 - 8.65 | |||||||||||||||||||||||||
| 2018 | 4,211,306 | 1.01 - 21.27 | 74,861,593 | 2.31 | 0.50 - 2.15 | (2.84) - (1.36) | |||||||||||||||||||||||||
| 2017 | 4,884,182 | 1.03 - 21.56 | 88,742,232 | 1.88 | 0.50 - 2.15 | 1.31 - 3.00 | |||||||||||||||||||||||||
| BHFTI AB Global Dynamic | 2021 | 67,331,765 | 15.55 - 17.30 | 1,149,682,505 | 0.22 | 1.10 - 2.10 | 7.01 - 8.08 | ||||||||||||||||||||||||
| Allocation Division | 2020 | 78,219,417 | 14.53 - 16.01 | 1,236,443,892 | 1.77 | 1.10 - 2.10 | 3.88 - 4.92 | ||||||||||||||||||||||||
| 2019 | 89,425,360 | 13.99 - 15.26 | 1,348,392,149 | 3.46 | 1.10 - 2.10 | 15.62 - 16.78 | |||||||||||||||||||||||||
| 2018 | 102,653,570 | 12.10 - 13.07 | 1,327,086,693 | 1.66 | 1.10 - 2.10 | (8.91) - (7.99) | |||||||||||||||||||||||||
| 2017 | 116,190,138 | 13.28 - 14.20 | 1,634,691,183 | 1.48 | 1.10 - 2.10 | 11.26 - 12.38 | |||||||||||||||||||||||||
| BHFTI Allspring Mid Cap | 2021 | 6,264 | 37.87 - 41.38 | 248,627 | 0.63 | 1.10 - 1.60 | 26.90 - 27.54 | ||||||||||||||||||||||||
| Value Division | 2020 | 7,353 | 29.85 - 32.44 | 229,968 | 0.89 | 1.10 - 1.60 | 1.08 - 1.59 | ||||||||||||||||||||||||
| 2019 | 11,942 | 29.53 - 31.93 | 368,958 | 0.66 | 1.10 - 1.60 | 33.38 - 34.05 | |||||||||||||||||||||||||
| 2018 | 12,534 | 22.14 - 23.82 | 289,513 | 0.97 | 1.10 - 1.60 | (14.68) - (14.24) | |||||||||||||||||||||||||
| 2017 | 12,681 | 25.94 - 27.78 | 342,503 | 1.05 | 1.10 - 1.60 | 9.04 - 9.58 | |||||||||||||||||||||||||
| BHFTI American Funds® | 2021 | 35,523,223 | 2.24 - 25.36 | 792,659,669 | 1.18 | 0.50 - 2.10 | 9.81 - 11.82 | ||||||||||||||||||||||||
| Balanced Allocation Division | 2020 | 40,375,709 | 2.03 - 22.68 | 813,811,656 | 1.72 | 0.50 - 2.10 | 13.16 - 15.09 | ||||||||||||||||||||||||
| 2019 | 45,337,707 | 1.77 - 19.71 | 800,925,855 | 1.80 | 0.50 - 2.10 | 17.04 - 19.11 | |||||||||||||||||||||||||
| 2018 | 51,701,013 | 1.50 - 16.55 | 773,156,170 | 1.46 | 0.50 - 2.10 | (6.31) - (4.58) | |||||||||||||||||||||||||
| 2017 | 58,085,561 | 1.59 - 17.34 | 919,484,643 | 1.49 | 0.50 - 2.10 | 14.44 - 16.44 | |||||||||||||||||||||||||
E-96
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
8. FINANCIAL HIGHLIGHTS — (Continued)
| As of December 31 | For the year ended December 31 | ||||||||||||||||||||||||||||||
| Units | Unit Value Lowest to Highest ($) | Net Assets ($) | Investment1 Income Ratio (%) | Expense Ratio2 Lowest to Highest (%) | Total Return3 Lowest to Highest (%) | ||||||||||||||||||||||||||
| BHFTI American Funds® | 2021 | 20,115,537 | 2.51 - 27.85 | 502,935,505 | 0.81 | 0.50 - 2.15 | 13.44 - 15.33 | ||||||||||||||||||||||||
| Growth Allocation Division | 2020 | 21,672,182 | 2.20 - 24.15 | 473,694,389 | 1.56 | 0.50 - 2.15 | 14.43 - 16.34 | ||||||||||||||||||||||||
| 2019 | 23,820,328 | 1.90 - 20.76 | 451,501,018 | 1.68 | 0.50 - 2.15 | 21.01 - 23.02 | |||||||||||||||||||||||||
| 2018 | 25,965,628 | 1.56 - 16.87 | 403,169,471 | 1.21 | 0.50 - 2.15 | (7.78) - (6.24) | |||||||||||||||||||||||||
| 2017 | 28,757,029 | 1.67 - 17.99 | 479,556,343 | 1.24 | 0.50 - 2.15 | 18.77 - 20.74 | |||||||||||||||||||||||||
| BHFTI American Funds® | 2021 | 7,703,185 | 4.59 - 46.90 | 344,916,945 | — | 0.95 - 2.25 | 18.92 - 20.47 | ||||||||||||||||||||||||
| Growth Division | 2020 | 10,039,904 | 3.82 - 38.93 | 374,416,489 | 0.84 | 0.95 - 2.25 | 48.25 - 50.20 | ||||||||||||||||||||||||
| 2019 | 13,396,429 | 2.55 - 25.92 | 333,656,449 | 0.44 | 0.95 - 2.25 | 27.44 - 29.11 | |||||||||||||||||||||||||
| 2018 | 16,299,179 | 1.98 - 20.08 | 315,250,770 | 0.39 | 0.95 - 2.25 | (2.73) - (1.44) | |||||||||||||||||||||||||
| 2017 | 20,103,266 | 2.01 - 20.37 | 395,973,373 | 0.40 | 0.95 - 2.25 | 25.06 - 26.70 | |||||||||||||||||||||||||
| BHFTI American Funds® | 2021 | 37,338,886 | 2.08 - 21.93 | 738,578,220 | 1.54 | 0.50 - 2.10 | 7.36 - 9.09 | ||||||||||||||||||||||||
| Moderate Allocation Division | 2020 | 42,632,501 | 1.91 - 20.11 | 778,574,010 | 1.89 | 0.50 - 2.10 | 10.64 - 12.43 | ||||||||||||||||||||||||
| 2019 | 48,048,192 | 1.71 - 17.88 | 786,219,704 | 1.98 | 0.50 - 2.10 | 13.74 - 15.58 | |||||||||||||||||||||||||
| 2018 | 54,921,254 | 1.48 - 15.47 | 782,649,526 | 1.73 | 0.50 - 2.10 | (5.43) - (3.90) | |||||||||||||||||||||||||
| 2017 | 63,563,450 | 1.55 - 16.10 | 949,575,557 | 1.77 | 0.50 - 2.10 | 10.62 - 12.40 | |||||||||||||||||||||||||
| BHFTI BlackRock Global | 2021 | 88,958,635 | 14.92 - 16.60 | 1,456,631,240 | 1.36 | 1.10 - 2.10 | 7.51 - 8.59 | ||||||||||||||||||||||||
| Tactical Strategies Division | 2020 | 103,549,645 | 13.87 - 15.28 | 1,562,480,869 | 1.58 | 1.10 - 2.10 | 2.14 - 3.17 | ||||||||||||||||||||||||
| 2019 | 117,923,351 | 13.58 - 14.82 | 1,726,223,549 | 0.19 | 1.10 - 2.10 | 18.12 - 19.31 | |||||||||||||||||||||||||
| 2018 | 135,196,017 | 11.50 - 12.42 | 1,660,961,194 | 1.42 | 1.10 - 2.10 | (9.12) - (8.20) | |||||||||||||||||||||||||
| 2017 | 151,440,679 | 12.70 - 13.53 | 2,029,561,004 | 0.67 | 1.10 - 2.05 | 11.02 - 12.07 | |||||||||||||||||||||||||
| BHFTI BlackRock High Yield | 2021 | 37,764 | 4.05 - 38.46 | 374,224 | 4.04 | 0.90 - 1.60 | 3.51 - 4.59 | ||||||||||||||||||||||||
| Division | 2020 | 48,501 | 3.89 - 36.97 | 449,845 | 5.34 | 0.90 - 1.60 | 5.80 - 6.79 | ||||||||||||||||||||||||
| 2019 | 45,780 | 3.65 - 34.77 | 449,626 | 5.89 | 0.90 - 1.60 | 13.03 - 14.02 | |||||||||||||||||||||||||
| 2018 | 36,446 | 3.21 - 30.61 | 389,657 | 4.97 | 0.90 - 1.60 | (4.42) - (3.46) | |||||||||||||||||||||||||
| 2017 | 33,615 | 3.33 - 31.86 | 413,602 | 5.40 | 0.90 - 1.60 | 6.05 - 7.10 | |||||||||||||||||||||||||
| BHFTI Brighthouse Asset | 2021 | 7,902,518 | 3.43 - 62.92 | 278,055,934 | 1.20 | 0.50 - 2.00 | 15.79 - 17.54 | ||||||||||||||||||||||||
| Allocation 100 Division | 2020 | 8,453,543 | 2.93 - 53.89 | 254,598,524 | 1.26 | 0.50 - 2.00 | 16.55 - 18.32 | ||||||||||||||||||||||||
| 2019 | 9,271,704 | 2.49 - 45.81 | 237,520,246 | 1.63 | 0.50 - 2.05 | 24.90 - 26.85 | |||||||||||||||||||||||||
| 2018 | 10,018,424 | 1.97 - 36.34 | 204,491,233 | 1.12 | 0.50 - 2.05 | (11.90) - (10.52) | |||||||||||||||||||||||||
| 2017 | 10,787,709 | 2.14 - 40.84 | 248,628,040 | 1.34 | 0.50 - 2.05 | 20.45 - 22.32 | |||||||||||||||||||||||||
| BHFTI Brighthouse Balanced | 2021 | 164,181,154 | 18.19 - 20.35 | 3,294,483,428 | 2.32 | 1.10 - 2.15 | 5.26 - 6.37 | ||||||||||||||||||||||||
| Plus Division | 2020 | 189,208,847 | 17.28 - 19.13 | 3,572,331,763 | 2.35 | 1.10 - 2.15 | 10.12 - 11.29 | ||||||||||||||||||||||||
| 2019 | 212,617,604 | 15.69 - 17.19 | 3,610,425,443 | 2.03 | 1.10 - 2.15 | 20.94 - 22.21 | |||||||||||||||||||||||||
| 2018 | 237,803,627 | 12.98 - 14.07 | 3,308,331,916 | 1.67 | 1.10 - 2.15 | (9.34) - (8.38) | |||||||||||||||||||||||||
| 2017 | 254,482,460 | 14.31 - 15.35 | 3,869,437,236 | 1.55 | 1.10 - 2.15 | 15.82 - 17.04 | |||||||||||||||||||||||||
| BHFTI Brighthouse Small Cap | 2021 | 449,964 | 4.82 - 52.11 | 20,325,098 | 0.83 | 0.50 - 1.55 | 29.74 - 31.11 | ||||||||||||||||||||||||
| Value Division | 2020 | 492,592 | 3.69 - 39.75 | 17,064,278 | 1.34 | 0.50 - 1.55 | (2.11) - (1.07) | ||||||||||||||||||||||||
| 2019 | 507,130 | 3.74 - 40.18 | 17,894,741 | 0.89 | 0.50 - 1.60 | 26.73 - 28.13 | |||||||||||||||||||||||||
| 2018 | 568,395 | 2.93 - 31.36 | 15,380,952 | 1.04 | 0.50 - 1.60 | (16.59) - (15.66) | |||||||||||||||||||||||||
| 2017 | 611,465 | 3.49 - 37.18 | 19,791,285 | 0.91 | 0.50 - 1.55 | 9.99 - 11.14 | |||||||||||||||||||||||||
| BHFTI Brighthouse/Aberdeen | 2021 | 2,787,968 | 1.61 - 15.34 | 40,417,620 | 0.17 | 0.90 - 2.25 | (7.18) - (5.66) | ||||||||||||||||||||||||
| Emerging Markets Equity | 2020 | 3,047,927 | 1.70 - 16.31 | 47,234,562 | 2.07 | 0.90 - 2.25 | 24.46 - 26.53 | ||||||||||||||||||||||||
| Division | 2019 | 3,782,564 | 1.35 - 12.93 | 46,669,817 | 1.65 | 0.90 - 2.25 | 18.06 - 19.90 | ||||||||||||||||||||||||
| 2018 | 4,595,166 | 1.12 - 10.81 | 47,553,441 | 2.60 | 0.90 - 2.25 | (16.10) - (14.69) | |||||||||||||||||||||||||
| 2017 | 4,781,863 | 1.32 - 12.72 | 58,423,937 | 1.09 | 0.90 - 2.25 | 25.48 - 27.44 | |||||||||||||||||||||||||
E-97
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
8. FINANCIAL HIGHLIGHTS — (Continued)
| As of December 31 | For the year ended December 31 | ||||||||||||||||||||||||||||||
| Units | Unit Value Lowest to Highest ($) | Net Assets ($) | Investment1 Income Ratio (%) | Expense Ratio2 Lowest to Highest (%) | Total Return3 Lowest to Highest (%) | ||||||||||||||||||||||||||
| BHFTI Brighthouse/Eaton | 2021 | 1,540,034 | 11.92 - 13.24 | 19,666,389 | 3.17 | 1.10 - 2.00 | 1.45 - 2.37 | ||||||||||||||||||||||||
| Vance Floating Rate Division | 2020 | 1,594,088 | 11.75 - 12.94 | 19,938,279 | 4.67 | 1.10 - 2.00 | 0.04 - 0.94 | ||||||||||||||||||||||||
| 2019 | 2,151,505 | 11.69 - 12.81 | 26,783,935 | 4.58 | 1.10 - 2.05 | 4.86 - 5.86 | |||||||||||||||||||||||||
| 2018 | 2,481,218 | 11.15 - 12.11 | 29,267,597 | 3.53 | 1.10 - 2.05 | (1.74) - (0.79) | |||||||||||||||||||||||||
| 2017 | 2,489,148 | 11.34 - 12.20 | 29,625,659 | 3.78 | 1.10 - 2.05 | 1.58 - 2.55 | |||||||||||||||||||||||||
| BHFTI Brighthouse/Franklin | 2021 | 6,579,388 | 9.50 - 11.15 | 67,677,469 | 1.86 | 0.50 - 2.00 | (1.70) - (0.22) | ||||||||||||||||||||||||
| Low Duration Total Return | 2020 | 6,584,220 | 9.66 - 11.17 | 68,394,975 | 3.39 | 0.50 - 2.00 | 0.10 - 1.61 | ||||||||||||||||||||||||
| Division | 2019 | 7,151,707 | 9.65 - 11.00 | 73,642,877 | 3.32 | 0.50 - 2.00 | 2.56 - 4.11 | ||||||||||||||||||||||||
| 2018 | 7,585,943 | 9.23 - 10.56 | 75,568,731 | 1.77 | 0.50 - 2.25 | (1.81) - (0.07) | |||||||||||||||||||||||||
| 2017 | 8,361,024 | 9.56 - 10.57 | 83,966,094 | 1.43 | 0.50 - 2.00 | (0.67) - 0.83 | |||||||||||||||||||||||||
| BHFTI Brighthouse/Templeton | 2021 | 414,855 | 10.36 - 11.40 | 4,563,951 | — | 0.95 - 1.70 | (6.61) - (5.91) | ||||||||||||||||||||||||
| International Bond Division | 2020 | 421,632 | 10.71 - 12.11 | 4,944,012 | 6.25 | 0.95 - 2.00 | (7.78) - (6.80) | ||||||||||||||||||||||||
| 2019 | 432,512 | 11.62 - 13.00 | 5,449,838 | 8.38 | 0.95 - 2.00 | (0.84) - 0.21 | |||||||||||||||||||||||||
| 2018 | 489,079 | 11.71 - 12.97 | 6,165,086 | — | 0.95 - 2.00 | (1.01) - 0.04 | |||||||||||||||||||||||||
| 2017 | 589,796 | 11.83 - 12.96 | 7,449,814 | — | 0.95 - 2.00 | (1.84) - (0.80) | |||||||||||||||||||||||||
| BHFTI | 2021 | 7,052,462 | 4.12 - 861.21 | 889,105,237 | 0.84 | 0.00 - 2.50 | 21.13 - 24.48 | ||||||||||||||||||||||||
| Brighthouse/Wellington Large | 2020 | 7,965,776 | 3.34 - 691.83 | 805,727,887 | 1.11 | 0.00 - 2.50 | 19.31 - 22.37 | ||||||||||||||||||||||||
| Cap Research Division | 2019 | 8,991,065 | 2.76 - 565.38 | 741,294,779 | 1.12 | 0.00 - 2.50 | 28.77 - 32.17 | ||||||||||||||||||||||||
| 2018 | 10,177,126 | 2.12 - 427.76 | 636,225,847 | 1.00 | 0.00 - 2.50 | (8.49) - (6.08) | |||||||||||||||||||||||||
| 2017 | 11,512,938 | 2.28 - 455.44 | 764,291,187 | 1.05 | 0.00 - 2.50 | 19.14 - 22.18 | |||||||||||||||||||||||||
| BHFTI CBRE Global Real | 2021 | 6,612,118 | 2.99 - 32.07 | 183,528,774 | 2.89 | 0.50 - 2.25 | 31.43 - 33.83 | ||||||||||||||||||||||||
| Estate Division | 2020 | 7,956,916 | 2.24 - 23.97 | 166,520,792 | 4.52 | 0.50 - 2.25 | (7.14) - (5.40) | ||||||||||||||||||||||||
| 2019 | 8,161,374 | 2.38 - 25.37 | 182,528,745 | 3.08 | 0.50 - 2.25 | 22.03 - 24.29 | |||||||||||||||||||||||||
| 2018 | 9,504,197 | 1.93 - 20.43 | 172,053,744 | 5.96 | 0.50 - 2.25 | (10.69) - (8.95) | |||||||||||||||||||||||||
| 2017 | 10,875,352 | 2.13 - 22.47 | 218,280,039 | 3.47 | 0.50 - 2.25 | 8.29 - 10.26 | |||||||||||||||||||||||||
| BHFTI Harris Oakmark | 2021 | 11,034,401 | 3.43 - 40.64 | 379,548,585 | 0.65 | 0.50 - 2.25 | 6.03 - 7.96 | ||||||||||||||||||||||||
| International Division | 2020 | 13,069,949 | 3.19 - 37.66 | 418,249,872 | 3.30 | 0.50 - 2.25 | 2.77 - 4.68 | ||||||||||||||||||||||||
| 2019 | 13,819,826 | 3.06 - 36.01 | 425,579,613 | 2.21 | 0.50 - 2.25 | 21.75 - 24.03 | |||||||||||||||||||||||||
| 2018 | 15,932,818 | 2.48 - 29.06 | 398,451,152 | 1.72 | 0.50 - 2.25 | (25.67) - (24.23) | |||||||||||||||||||||||||
| 2017 | 16,803,885 | 3.29 - 38.42 | 554,231,973 | 1.64 | 0.50 - 2.25 | 27.54 - 29.94 | |||||||||||||||||||||||||
| BHFTI Invesco Balanced-Risk | 2021 | 271,882,939 | 1.44 - 1.56 | 420,943,457 | 3.04 | 1.15 - 2.00 | 7.52 - 8.44 | ||||||||||||||||||||||||
| Allocation Division | 2020 | 305,812,256 | 1.34 - 1.44 | 436,657,575 | 5.45 | 1.15 - 2.00 | 7.95 - 8.87 | ||||||||||||||||||||||||
| 2019 | 351,901,497 | 1.24 - 13.34 | 461,843,455 | — | 1.10 - 2.00 | 13.00 - 14.02 | |||||||||||||||||||||||||
| 2018 | 401,048,107 | 1.10 - 11.70 | 462,317,377 | 1.17 | 1.10 - 2.00 | (8.30) - (7.46) | |||||||||||||||||||||||||
| 2017 | 445,688,739 | 1.19 - 1.25 | 556,009,732 | 3.73 | 1.15 - 2.10 | 7.72 - 8.75 | |||||||||||||||||||||||||
| BHFTI Invesco Comstock | 2021 | 4,394 | 2.04 - 30.34 | 17,943 | 1.03 | 0.90 - 1.35 | 31.40 - 31.99 | ||||||||||||||||||||||||
| Division | 2020 | 6,488 | 1.54 - 23.03 | 54,656 | 2.16 | 0.90 - 1.35 | (1.84) - (1.40) | ||||||||||||||||||||||||
| 2019 | 6,188 | 1.56 - 23.40 | 57,870 | 2.13 | 0.90 - 1.35 | 23.28 - 23.84 | |||||||||||||||||||||||||
| 2018 | 6,957 | 1.26 - 18.94 | 49,587 | 0.65 | 0.90 - 1.35 | (13.34) - (12.95) | |||||||||||||||||||||||||
| 2017 | 10,379 | 1.45 - 21.80 | 47,958 | 2.63 | 0.90 - 1.35 | 16.44 - 16.97 | |||||||||||||||||||||||||
| BHFTI Invesco Global Equity | 2021 | 12,898,558 | 2.36 - 66.07 | 286,660,569 | 0.06 | 0.50 - 2.25 | 12.90 - 15.01 | ||||||||||||||||||||||||
| Division | 2020 | 13,483,627 | 2.07 - 57.62 | 281,517,566 | 0.77 | 0.50 - 2.15 | 24.93 - 27.09 | ||||||||||||||||||||||||
| 2019 | 15,182,482 | 1.63 - 45.47 | 261,214,721 | 0.91 | 0.50 - 2.15 | 28.83 - 31.06 | |||||||||||||||||||||||||
| 2018 | 16,358,866 | 1.25 - 34.80 | 226,269,164 | 1.10 | 0.50 - 2.15 | (14.96) - (13.53) | |||||||||||||||||||||||||
| 2017 | 15,776,074 | 1.44 - 40.36 | 282,853,081 | 0.99 | 0.50 - 2.15 | 33.90 - 36.24 | |||||||||||||||||||||||||
E-98
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
8. FINANCIAL HIGHLIGHTS — (Continued)
| As of December 31 | For the year ended December 31 | ||||||||||||||||||||||||||||||
| Units | Unit Value Lowest to Highest ($) | Net Assets ($) | Investment1 Income Ratio (%) | Expense Ratio2 Lowest to Highest (%) | Total Return3 Lowest to Highest (%) | ||||||||||||||||||||||||||
| BHFTI Invesco Small Cap | 2021 | 1,160,106 | 6.34 - 75.35 | 73,101,402 | — | 0.50 - 2.25 | 4.55 - 6.40 | ||||||||||||||||||||||||
| Growth Division | 2020 | 1,205,933 | 6.01 - 70.81 | 71,253,289 | — | 0.50 - 2.15 | 53.58 - 55.98 | ||||||||||||||||||||||||
| 2019 | 1,335,510 | 3.89 - 45.40 | 51,053,864 | — | 0.50 - 2.15 | 21.80 - 23.79 | |||||||||||||||||||||||||
| 2018 | 1,509,587 | 3.17 - 36.68 | 47,102,731 | — | 0.50 - 2.25 | (11.08) - (9.50) | |||||||||||||||||||||||||
| 2017 | 1,615,884 | 3.53 - 40.53 | 56,474,486 | — | 0.50 - 2.15 | 22.78 - 24.71 | |||||||||||||||||||||||||
| BHFTI JPMorgan Core Bond | 2021 | 5,727,534 | 11.05 - 12.69 | 71,214,221 | 2.31 | 1.10 - 2.00 | (3.41) - (2.54) | ||||||||||||||||||||||||
| Division | 2020 | 5,908,327 | 11.14 - 13.02 | 75,426,695 | 3.23 | 1.10 - 2.00 | 5.75 - 6.71 | ||||||||||||||||||||||||
| 2019 | 6,207,730 | 10.49 - 12.21 | 74,354,984 | 4.54 | 1.10 - 2.05 | 6.02 - 7.03 | |||||||||||||||||||||||||
| 2018 | 7,254,348 | 9.85 - 11.41 | 81,327,656 | 2.73 | 1.10 - 2.05 | (2.02) - (1.08) | |||||||||||||||||||||||||
| 2017 | 8,421,961 | 10.01 - 11.54 | 95,678,197 | 2.47 | 1.10 - 2.05 | 1.22 - 2.18 | |||||||||||||||||||||||||
| BHFTI JPMorgan Global | 2021 | 402,997,702 | 1.67 - 18.29 | 727,927,972 | 0.49 | 1.10 - 2.05 | 7.41 - 8.44 | ||||||||||||||||||||||||
| Active Allocation Division | 2020 | 462,254,239 | 1.55 - 16.87 | 770,639,003 | 2.30 | 1.10 - 2.05 | 9.94 - 11.00 | ||||||||||||||||||||||||
| 2019 | 534,476,737 | 1.41 - 15.20 | 803,699,960 | 2.74 | 1.10 - 2.05 | 14.54 - 15.63 | |||||||||||||||||||||||||
| 2018 | 605,342,000 | 1.23 - 13.14 | 788,207,295 | 1.62 | 1.10 - 2.05 | (9.08) - (8.21) | |||||||||||||||||||||||||
| 2017 | 606,636,328 | 1.35 - 14.32 | 861,680,922 | 2.54 | 1.10 - 2.10 | 14.24 - 15.38 | |||||||||||||||||||||||||
| BHFTI JPMorgan Small Cap | 2021 | 600,320 | 3.69 - 34.26 | 19,297,008 | 0.96 | 0.90 - 2.05 | 30.05 - 31.82 | ||||||||||||||||||||||||
| Value Division | 2020 | 768,068 | 2.80 - 26.10 | 18,968,277 | 1.20 | 0.90 - 2.00 | 4.01 - 5.39 | ||||||||||||||||||||||||
| 2019 | 808,325 | 2.65 - 24.86 | 18,936,921 | 1.09 | 0.90 - 2.05 | 16.73 - 18.46 | |||||||||||||||||||||||||
| 2018 | 876,517 | 2.24 - 21.10 | 17,643,222 | 1.08 | 0.90 - 2.05 | (15.67) - (14.54) | |||||||||||||||||||||||||
| 2017 | 1,036,634 | 2.62 - 24.78 | 24,628,939 | 1.13 | 0.90 - 2.05 | 1.22 - 2.70 | |||||||||||||||||||||||||
| BHFTI Loomis Sayles Global | 2021 | 3,349,302 | 2.79 - 33.77 | 105,733,405 | 0.83 | 0.50 - 2.00 | 12.00 - 13.69 | ||||||||||||||||||||||||
| Allocation Division | 2020 | 3,759,111 | 2.47 - 29.88 | 105,220,386 | 0.69 | 0.50 - 2.00 | 12.51 - 14.21 | ||||||||||||||||||||||||
| 2019 | 4,334,728 | 2.18 - 26.32 | 107,109,800 | 1.49 | 0.50 - 2.05 | 24.94 - 26.89 | |||||||||||||||||||||||||
| 2018 | 4,983,673 | 1.73 - 20.87 | 98,196,428 | 1.86 | 0.50 - 2.25 | (7.50) - (5.86) | |||||||||||||||||||||||||
| 2017 | 5,880,789 | 1.85 - 22.30 | 124,432,486 | 1.39 | 0.50 - 2.25 | 20.24 - 22.36 | |||||||||||||||||||||||||
| BHFTI Loomis Sayles Growth | 2021 | 13,754,696 | 3.01 - 690.34 | 480,887,272 | 0.03 | 0.50 - 2.25 | 15.64 - 17.89 | ||||||||||||||||||||||||
| Division | 2020 | 16,516,881 | 2.57 - 586.63 | 486,587,823 | 0.65 | 0.50 - 2.25 | 29.28 - 31.68 | ||||||||||||||||||||||||
| 2019 | 21,007,586 | 1.97 - 445.88 | 467,060,137 | 0.84 | 0.50 - 2.25 | 20.82 - 23.03 | |||||||||||||||||||||||||
| 2018 | 24,657,864 | 1.61 - 362.64 | 444,649,592 | 0.61 | 0.50 - 2.25 | (9.14) - (7.41) | |||||||||||||||||||||||||
| 2017 | 29,749,965 | 1.75 - 392.14 | 575,606,365 | 0.75 | 0.50 - 2.25 | 15.78 - 17.93 | |||||||||||||||||||||||||
| BHFTI MetLife Multi-Index | 2021 | 439,723,634 | 1.63 - 17.83 | 774,902,087 | 1.76 | 0.90 - 2.10 | 7.44 - 8.73 | ||||||||||||||||||||||||
| Targeted Risk Division | 2020 | 511,620,263 | 1.51 - 16.43 | 831,657,042 | 2.19 | 0.90 - 2.10 | 4.34 - 5.60 | ||||||||||||||||||||||||
| 2019 | 572,965,706 | 1.45 - 15.59 | 884,702,376 | 2.14 | 0.90 - 2.10 | 19.18 - 20.62 | |||||||||||||||||||||||||
| 2018 | 638,887,551 | 1.22 - 12.95 | 820,528,591 | 1.75 | 0.90 - 2.10 | (9.12) - (8.02) | |||||||||||||||||||||||||
| 2017 | 689,687,735 | 1.34 - 14.11 | 966,194,514 | 1.47 | 0.90 - 2.10 | 13.15 - 14.51 | |||||||||||||||||||||||||
| BHFTI MFS® Research | 2021 | 7,162,727 | 2.56 - 30.18 | 168,979,566 | 1.01 | 0.50 - 2.15 | 9.42 - 11.16 | ||||||||||||||||||||||||
| International Division | 2020 | 8,036,159 | 2.32 - 27.15 | 172,621,221 | 2.31 | 0.50 - 2.15 | 10.65 - 12.45 | ||||||||||||||||||||||||
| 2019 | 8,765,910 | 2.08 - 24.14 | 168,375,370 | 1.41 | 0.50 - 2.15 | 25.74 - 27.67 | |||||||||||||||||||||||||
| 2018 | 10,106,842 | 1.64 - 18.92 | 153,947,912 | 2.02 | 0.50 - 2.25 | (15.92) - (14.43) | |||||||||||||||||||||||||
| 2017 | 11,333,543 | 1.94 - 22.16 | 202,267,389 | 1.80 | 0.50 - 2.15 | 25.62 - 27.52 | |||||||||||||||||||||||||
| BHFTI Morgan Stanley | 2021 | 8,569,702 | 7.86 - 97.09 | 729,134,205 | — | 0.50 - 2.25 | (12.77) - (11.22) | ||||||||||||||||||||||||
| Discovery Division | 2020 | 9,587,827 | 8.93 - 109.37 | 920,192,712 | — | 0.50 - 2.25 | 147.48 - 151.85 | ||||||||||||||||||||||||
| 2019 | 11,049,927 | 3.58 - 43.43 | 423,750,247 | — | 0.50 - 2.25 | 37.01 - 39.43 | |||||||||||||||||||||||||
| 2018 | 12,304,050 | 2.59 - 31.15 | 340,007,433 | — | 0.50 - 2.25 | 7.69 - 9.60 | |||||||||||||||||||||||||
| 2017 | 13,380,312 | 2.38 - 28.42 | 339,623,699 | 0.30 | 0.50 - 2.25 | 36.81 - 39.22 | |||||||||||||||||||||||||
E-99
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
8. FINANCIAL HIGHLIGHTS — (Continued)
| As of December 31 | For the year ended December 31 | ||||||||||||||||||||||||||||||
| Units | Unit Value Lowest to Highest ($) | Net Assets ($) | Investment1 Income Ratio (%) | Expense Ratio2 Lowest to Highest (%) | Total Return3 Lowest to Highest (%) | ||||||||||||||||||||||||||
| BHFTI PanAgora Global | 2021 | 61,606,271 | 1.42 - 1.52 | 92,948,445 | — | 1.15 - 2.00 | 4.29 - 5.18 | ||||||||||||||||||||||||
| Diversified Risk Division | 2020 | 67,636,602 | 1.36 - 1.44 | 97,068,610 | 3.14 | 1.15 - 2.00 | 9.63 - 10.57 | ||||||||||||||||||||||||
| 2019 | 64,915,547 | 1.24 - 1.31 | 84,293,104 | 3.24 | 1.15 - 2.00 | 19.58 - 20.60 | |||||||||||||||||||||||||
| 2018 | 67,228,731 | 1.04 - 1.08 | 72,446,308 | — | 1.15 - 2.00 | (9.43) - (8.65) | |||||||||||||||||||||||||
| 2017 | 80,775,666 | 1.15 - 1.19 | 95,392,815 | — | 1.15 - 2.00 | 10.37 - 11.31 | |||||||||||||||||||||||||
| BHFTI PanAgora Global | 2021 | 60,263,509 | 13.19 - 14.91 | 886,250,834 | — | 1.10 - 2.05 | 10.36 - 11.41 | ||||||||||||||||||||||||
| Diversified Risk II Division | 2020 | 70,369,642 | 11.86 - 13.38 | 929,413,643 | 2.35 | 1.10 - 2.05 | 0.93 - 1.89 | ||||||||||||||||||||||||
| 2019 | 79,861,505 | 11.66 - 13.13 | 1,036,049,545 | 2.95 | 1.10 - 2.05 | 17.48 - 18.61 | |||||||||||||||||||||||||
| 2018 | 91,641,725 | 9.84 - 11.07 | 1,003,736,398 | 0.38 | 1.10 - 2.05 | (8.26) - (7.38) | |||||||||||||||||||||||||
| 2017 | 104,234,505 | 10.64 - 11.96 | 1,234,346,275 | 1.71 | 1.10 - 2.10 | 7.53 - 8.60 | |||||||||||||||||||||||||
| BHFTI PIMCO Inflation | 2021 | 18,836,529 | 1.24 - 21.07 | 337,008,189 | 0.73 | 0.50 - 2.15 | 3.18 - 4.93 | ||||||||||||||||||||||||
| Protected Bond Division | 2020 | 19,226,114 | 1.18 - 20.08 | 330,502,638 | 2.68 | 0.50 - 2.15 | 9.16 - 11.13 | ||||||||||||||||||||||||
| 2019 | 20,971,534 | 1.07 - 18.07 | 327,258,585 | 3.41 | 0.50 - 2.15 | 5.97 - 7.79 | |||||||||||||||||||||||||
| 2018 | 23,939,621 | 0.99 - 16.77 | 349,179,155 | 1.60 | 0.50 - 2.25 | (4.59) - (2.76) | |||||||||||||||||||||||||
| 2017 | 28,145,710 | 1.02 - 17.24 | 425,983,675 | 1.56 | 0.50 - 2.25 | 1.17 - 3.14 | |||||||||||||||||||||||||
| BHFTI PIMCO Total Return | 2021 | 32,619,518 | 2.03 - 24.24 | 667,326,755 | 1.84 | 0.50 - 2.25 | (3.59) - (1.77) | ||||||||||||||||||||||||
| Division | 2020 | 34,236,760 | 2.09 - 24.71 | 715,365,209 | 3.69 | 0.50 - 2.25 | 6.09 - 8.12 | ||||||||||||||||||||||||
| 2019 | 36,674,056 | 1.95 - 22.89 | 715,395,370 | 2.93 | 0.50 - 2.25 | 6.05 - 7.98 | |||||||||||||||||||||||||
| 2018 | 41,842,651 | 1.82 - 21.21 | 757,914,158 | 1.39 | 0.50 - 2.25 | (2.46) - (0.62) | |||||||||||||||||||||||||
| 2017 | 49,441,770 | 1.85 - 21.36 | 908,315,454 | 1.78 | 0.50 - 2.25 | 2.18 - 4.10 | |||||||||||||||||||||||||
| BHFTI Schroders Global | 2021 | 381,747,388 | 1.56 - 17.27 | 649,441,142 | 0.32 | 0.90 - 2.10 | 9.11 - 10.42 | ||||||||||||||||||||||||
| Multi-Asset Division | 2020 | 455,182,622 | 1.43 - 15.67 | 703,341,582 | 1.77 | 0.90 - 2.10 | (0.02) - 1.19 | ||||||||||||||||||||||||
| 2019 | 524,050,033 | 1.43 - 15.51 | 802,843,446 | 1.47 | 0.90 - 2.10 | 18.97 - 20.40 | |||||||||||||||||||||||||
| 2018 | 601,844,418 | 1.21 - 12.91 | 768,330,201 | 1.66 | 0.90 - 2.10 | (11.32) - (6.23) | |||||||||||||||||||||||||
| 2017 | 395,258,412 | 1.36 - 14.41 | 564,139,933 | 0.79 | 1.10 - 2.10 | 11.93 - 13.05 | |||||||||||||||||||||||||
| BHFTI SSGA Growth and | 2021 | 26,261,154 | 20.37 - 26.00 | 616,034,159 | 1.77 | 0.60 - 2.10 | 11.02 - 12.70 | ||||||||||||||||||||||||
| Income ETF Division | 2020 | 30,781,265 | 18.35 - 23.43 | 644,690,157 | 2.68 | 0.50 - 2.10 | 7.54 - 9.28 | ||||||||||||||||||||||||
| 2019 | 35,242,960 | 17.06 - 21.44 | 680,226,971 | 2.33 | 0.50 - 2.10 | 17.12 - 19.01 | |||||||||||||||||||||||||
| 2018 | 41,641,734 | 14.57 - 18.01 | 680,006,923 | 2.33 | 0.50 - 2.10 | (8.47) - (6.99) | |||||||||||||||||||||||||
| 2017 | 49,193,853 | 15.92 - 19.37 | 869,542,351 | 2.43 | 0.50 - 2.10 | 13.46 - 15.28 | |||||||||||||||||||||||||
| BHFTI SSGA Growth ETF | 2021 | 5,267,322 | 21.93 - 28.45 | 133,226,796 | 1.45 | 0.50 - 2.10 | 15.16 - 17.02 | ||||||||||||||||||||||||
| Division | 2020 | 6,011,201 | 19.05 - 24.32 | 130,804,692 | 2.42 | 0.50 - 2.10 | 8.44 - 10.20 | ||||||||||||||||||||||||
| 2019 | 6,956,479 | 17.56 - 22.07 | 138,322,296 | 1.97 | 0.50 - 2.10 | 19.90 - 21.83 | |||||||||||||||||||||||||
| 2018 | 7,753,198 | 14.65 - 18.11 | 127,430,864 | 2.02 | 0.50 - 2.10 | (10.65) - (9.20) | |||||||||||||||||||||||||
| 2017 | 8,624,728 | 16.40 - 19.95 | 157,056,020 | 2.10 | 0.50 - 2.10 | 17.16 - 19.04 | |||||||||||||||||||||||||
| BHFTI T. Rowe Price Large | 2021 | 25,963 | 15.99 - 150.00 | 731,476 | 1.81 | 0.90 - 1.60 | 23.98 - 24.85 | ||||||||||||||||||||||||
| Cap Value Division | 2020 | 28,681 | 12.81 - 120.39 | 685,939 | 3.00 | 0.90 - 1.60 | 1.23 - 1.95 | ||||||||||||||||||||||||
| 2019 | 33,084 | 12.57 - 118.33 | 725,942 | 1.95 | 0.90 - 1.60 | 24.51 - 25.38 | |||||||||||||||||||||||||
| 2018 | 20,996 | 10.02 - 94.56 | 409,218 | 1.80 | 0.90 - 1.60 | (10.61) - (9.98) | |||||||||||||||||||||||||
| 2017 | 23,096 | 11.13 - 105.25 | 578,718 | 2.07 | 0.90 - 1.60 | 15.10 - 15.90 | |||||||||||||||||||||||||
| BHFTI T. Rowe Price Mid Cap | 2021 | 12,061,669 | 4.04 - 72.79 | 496,061,829 | — | 0.50 - 2.25 | 12.42 - 14.41 | ||||||||||||||||||||||||
| Growth Division | 2020 | 13,981,484 | 3.56 - 63.81 | 505,414,544 | 0.08 | 0.50 - 2.25 | 21.15 - 23.30 | ||||||||||||||||||||||||
| 2019 | 16,418,378 | 2.91 - 51.83 | 484,527,095 | 0.08 | 0.50 - 2.25 | 28.15 - 30.41 | |||||||||||||||||||||||||
| 2018 | 19,059,742 | 2.25 - 39.81 | 430,092,959 | — | 0.50 - 2.25 | (4.38) - (2.68) | |||||||||||||||||||||||||
| 2017 | 21,768,491 | 2.33 - 41.02 | 506,160,540 | — | 0.50 - 2.25 | 21.98 - 24.12 | |||||||||||||||||||||||||
E-100
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
8. FINANCIAL HIGHLIGHTS — (Continued)
| As of December 31 | For the year ended December 31 | ||||||||||||||||||||||||||||||
| Units | Unit Value Lowest to Highest ($) | Net Assets ($) | Investment1 Income Ratio (%) | Expense Ratio2 Lowest to Highest (%) | Total Return3 Lowest to Highest (%) | ||||||||||||||||||||||||||
| BHFTI TCW Core Fixed Income | 2021 | 4,056 | 11.16 - 11.27 | 45,391 | 1.34 | 1.20 - 1.35 | (2.66) - (2.52) | ||||||||||||||||||||||||
| Division | 2020 | 4,573 | 11.46 - 11.56 | 52,557 | 3.20 | 1.20 - 1.35 | 7.67 - 7.83 | ||||||||||||||||||||||||
| 2019 | 22,517 | 10.64 - 10.77 | 240,520 | 3.06 | 1.10 - 1.35 | 6.94 - 7.20 | |||||||||||||||||||||||||
| 2018 | 23,865 | 9.95 - 10.01 | 238,242 | 2.32 | 1.20 - 1.35 | (1.28) - (1.13) | |||||||||||||||||||||||||
| 2017 | 25,274 | 10.02 - 10.12 | 255,408 | 1.60 | 1.20 - 1.60 | 1.19 - 1.59 | |||||||||||||||||||||||||
| BHFTI Victory Sycamore Mid | 2021 | 6,175,875 | 6.28 - 76.43 | 394,481,911 | 1.17 | 0.50 - 2.25 | 28.87 - 31.14 | ||||||||||||||||||||||||
| Cap Value Division | 2020 | 7,196,575 | 4.83 - 58.28 | 351,800,764 | 1.51 | 0.50 - 2.25 | 5.24 - 7.10 | ||||||||||||||||||||||||
| 2019 | 7,872,022 | 4.55 - 54.42 | 361,807,709 | 1.16 | 0.50 - 2.25 | 26.12 - 28.34 | |||||||||||||||||||||||||
| 2018 | 9,098,703 | 3.57 - 42.40 | 327,214,056 | 0.64 | 0.50 - 2.25 | (12.16) - (10.60) | |||||||||||||||||||||||||
| 2017 | 10,507,414 | 4.03 - 47.43 | 424,806,982 | 0.99 | 0.50 - 2.25 | 7.05 - 8.93 | |||||||||||||||||||||||||
| BHFTI Western Asset | 2021 | 27,345,170 | 10.88 - 12.04 | 326,125,318 | 2.14 | 1.15 - 2.10 | (4.01) - (3.09) | ||||||||||||||||||||||||
| Management Government | 2020 | 32,375,503 | 11.33 - 12.42 | 398,349,977 | 2.38 | 1.15 - 2.10 | 5.43 - 6.44 | ||||||||||||||||||||||||
| Income Division | 2019 | 32,564,019 | 10.75 - 11.67 | 376,497,264 | 2.73 | 1.15 - 2.10 | 5.26 - 6.26 | ||||||||||||||||||||||||
| 2018 | 36,441,983 | 10.21 - 10.98 | 396,922,182 | 2.79 | 1.15 - 2.10 | (2.15) - (1.21) | |||||||||||||||||||||||||
| 2017 | 41,565,748 | 10.44 - 11.12 | 458,735,090 | 2.20 | 1.15 - 2.10 | 0.47 - 1.43 | |||||||||||||||||||||||||
| BHFTII Baillie Gifford | 2021 | 5,050,419 | 2.57 - 31.57 | 126,145,494 | 0.86 | 0.95 - 2.10 | (2.97) - (1.69) | ||||||||||||||||||||||||
| International Stock Division | 2020 | 5,562,590 | 2.62 - 32.11 | 140,886,997 | 1.90 | 0.95 - 2.10 | 23.73 - 25.38 | ||||||||||||||||||||||||
| 2019 | 6,117,346 | 2.10 - 25.61 | 123,603,248 | 1.23 | 0.95 - 2.15 | 29.75 - 31.57 | |||||||||||||||||||||||||
| 2018 | 6,925,281 | 1.60 - 19.47 | 106,646,276 | 1.06 | 0.95 - 2.25 | (19.05) - (17.80) | |||||||||||||||||||||||||
| 2017 | 7,456,089 | 1.96 - 23.68 | 139,877,341 | 1.13 | 0.95 - 2.25 | 31.90 - 33.88 | |||||||||||||||||||||||||
| BHFTII BlackRock Bond | 2021 | 6,550,596 | 7.69 - 96.92 | 361,431,935 | 2.62 | 0.50 - 2.25 | (2.90) - (1.08) | ||||||||||||||||||||||||
| Income Division | 2020 | 7,023,787 | 7.83 - 98.08 | 389,186,999 | 3.39 | 0.50 - 2.25 | 5.92 - 7.89 | ||||||||||||||||||||||||
| 2019 | 7,472,189 | 7.31 - 90.99 | 384,830,691 | 3.61 | 0.50 - 2.25 | 7.12 - 9.12 | |||||||||||||||||||||||||
| 2018 | 8,252,602 | 6.74 - 83.47 | 391,693,026 | 3.25 | 0.50 - 2.25 | (2.84) - (1.00) | |||||||||||||||||||||||||
| 2017 | 9,495,090 | 6.86 - 84.41 | 455,410,535 | 2.99 | 0.50 - 2.25 | 1.54 - 3.43 | |||||||||||||||||||||||||
| BHFTII BlackRock Capital | 2021 | 3,306,153 | 14.38 - 169.80 | 234,988,229 | — | 0.50 - 2.25 | 18.19 - 20.42 | ||||||||||||||||||||||||
| Appreciation Division | 2020 | 3,762,727 | 12.02 - 141.17 | 230,129,341 | — | 0.50 - 2.25 | 37.18 - 39.75 | ||||||||||||||||||||||||
| 2019 | 4,262,514 | 8.66 - 101.12 | 192,688,204 | 0.02 | 0.50 - 2.25 | 29.57 - 31.99 | |||||||||||||||||||||||||
| 2018 | 4,857,860 | 6.61 - 76.69 | 170,334,155 | 0.01 | 0.50 - 2.25 | (0.11) - 1.76 | |||||||||||||||||||||||||
| 2017 | 5,314,588 | 6.54 - 75.43 | 187,945,552 | 0.01 | 0.50 - 2.25 | 30.61 - 33.07 | |||||||||||||||||||||||||
| BHFTII BlackRock | 2021 | 2,745,802 | 2.29 - 24.56 | 37,400,746 | 0.10 | 0.90 - 2.00 | (2.42) - (1.09) | ||||||||||||||||||||||||
| Ultra-Short Term Bond | 2020 | 3,242,202 | 2.33 - 24.90 | 47,474,049 | 1.72 | 0.90 - 2.00 | (1.80) - (0.47) | ||||||||||||||||||||||||
| Division | 2019 | 3,255,640 | 2.35 - 25.09 | 44,981,636 | 1.60 | 0.90 - 2.00 | (0.14) - 1.21 | ||||||||||||||||||||||||
| 2018 | 3,622,610 | 2.33 - 24.87 | 50,362,897 | 0.78 | 0.90 - 2.15 | (0.52) - 0.89 | |||||||||||||||||||||||||
| 2017 | 4,077,356 | 2.32 - 24.72 | 56,416,026 | 0.11 | 0.90 - 2.15 | (1.40) - (0.01) | |||||||||||||||||||||||||
| BHFTII Brighthouse Asset | 2021 | 15,403,578 | 1.93 - 20.67 | 280,143,828 | 2.99 | 0.50 - 2.15 | 1.48 - 3.17 | ||||||||||||||||||||||||
| Allocation 20 Division | 2020 | 17,601,429 | 1.88 - 20.04 | 311,462,767 | 2.81 | 0.50 - 2.15 | 7.18 - 8.97 | ||||||||||||||||||||||||
| 2019 | 19,652,658 | 1.73 - 18.39 | 321,894,499 | 2.18 | 0.50 - 2.25 | 9.25 - 11.18 | |||||||||||||||||||||||||
| 2018 | 22,770,094 | 1.57 - 16.54 | 335,855,273 | 2.19 | 0.50 - 2.25 | (4.79) - (3.10) | |||||||||||||||||||||||||
| 2017 | 26,632,640 | 1.62 - 17.07 | 409,028,440 | 2.08 | 0.50 - 2.25 | 4.56 - 6.40 | |||||||||||||||||||||||||
| BHFTII Brighthouse Asset | 2021 | 38,513,419 | 2.27 - 24.31 | 818,808,370 | 2.68 | 0.50 - 2.15 | 5.14 - 6.89 | ||||||||||||||||||||||||
| Allocation 40 Division | 2020 | 43,790,060 | 2.14 - 22.74 | 875,065,802 | 2.69 | 0.50 - 2.15 | 8.67 - 10.48 | ||||||||||||||||||||||||
| 2019 | 49,796,769 | 1.94 - 20.58 | 908,735,683 | 2.19 | 0.50 - 2.15 | 13.14 - 15.02 | |||||||||||||||||||||||||
| 2018 | 57,833,464 | 1.69 - 17.89 | 925,660,947 | 2.01 | 0.50 - 2.25 | (6.54) - (4.88) | |||||||||||||||||||||||||
| 2017 | 68,087,417 | 1.73 - 18.81 | 1,155,673,990 | 1.98 | 0.50 - 2.25 | 8.19 - 10.09 | |||||||||||||||||||||||||
E-101
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
8. FINANCIAL HIGHLIGHTS — (Continued)
| As of December 31 | For the year ended December 31 | ||||||||||||||||||||||||||||||
| Units | Unit Value Lowest to Highest ($) | Net Assets ($) | Investment1 Income Ratio (%) | Expense Ratio2 Lowest to Highest (%) | Total Return3 Lowest to Highest (%) | ||||||||||||||||||||||||||
| BHFTII Brighthouse Asset | 2021 | 120,826,699 | 2.65 - 28.30 | 3,004,188,035 | 2.12 | 0.50 - 2.15 | 8.55 - 10.35 | ||||||||||||||||||||||||
| Allocation 60 Division | 2020 | 138,788,939 | 2.41 - 25.65 | 3,132,220,695 | 2.21 | 0.50 - 2.15 | 11.42 - 13.28 | ||||||||||||||||||||||||
| 2019 | 157,596,785 | 2.13 - 22.64 | 3,165,966,352 | 1.96 | 0.50 - 2.15 | 16.88 - 18.83 | |||||||||||||||||||||||||
| 2018 | 183,867,868 | 1.80 - 19.05 | 3,131,421,270 | 1.66 | 0.50 - 2.15 | (8.13) - (6.60) | |||||||||||||||||||||||||
| 2017 | 213,872,364 | 1.88 - 20.40 | 3,928,953,268 | 1.74 | 0.50 - 2.15 | 12.30 - 14.16 | |||||||||||||||||||||||||
| BHFTII Brighthouse Asset | 2021 | 61,203,569 | 3.04 - 32.49 | 1,751,110,118 | 1.69 | 0.50 - 2.15 | 12.27 - 14.14 | ||||||||||||||||||||||||
| Allocation 80 Division | 2020 | 68,356,199 | 2.67 - 28.47 | 1,722,419,271 | 1.84 | 0.50 - 2.15 | 14.11 - 16.01 | ||||||||||||||||||||||||
| 2019 | 76,334,895 | 2.31 - 24.54 | 1,670,394,964 | 1.77 | 0.50 - 2.15 | 21.10 - 23.11 | |||||||||||||||||||||||||
| 2018 | 85,633,821 | 1.89 - 19.93 | 1,533,821,665 | 1.33 | 0.50 - 2.25 | (10.17) - (8.57) | |||||||||||||||||||||||||
| 2017 | 98,239,149 | 2.01 - 21.80 | 1,933,591,736 | 1.56 | 0.50 - 2.25 | 16.52 - 18.57 | |||||||||||||||||||||||||
| BHFTII Brighthouse/Artisan | 2021 | 3,074,537 | 8.33 - 98.15 | 195,847,200 | 0.83 | 0.50 - 2.15 | 24.02 - 25.96 | ||||||||||||||||||||||||
| Mid Cap Value Division | 2020 | 3,488,897 | 6.65 - 77.92 | 178,298,975 | 0.84 | 0.50 - 2.05 | 3.82 - 5.45 | ||||||||||||||||||||||||
| 2019 | 3,807,667 | 6.35 - 73.90 | 186,211,530 | 0.62 | 0.50 - 2.25 | 20.69 - 22.82 | |||||||||||||||||||||||||
| 2018 | 4,305,631 | 5.20 - 60.16 | 171,734,105 | 0.49 | 0.50 - 2.25 | (15.36) - (13.85) | |||||||||||||||||||||||||
| 2017 | 4,884,190 | 6.07 - 69.84 | 226,673,877 | 0.58 | 0.50 - 2.25 | 10.04 - 11.98 | |||||||||||||||||||||||||
| BHFTII | 2021 | 217,756 | 28.19 - 31.95 | 6,805,165 | 1.53 | 1.10 - 2.05 | 11.55 - 12.61 | ||||||||||||||||||||||||
| Brighthouse/Dimensional | 2020 | 256,198 | 25.27 - 28.37 | 7,124,915 | 2.53 | 1.10 - 2.05 | 6.58 - 7.60 | ||||||||||||||||||||||||
| International Small Company | 2019 | 299,239 | 23.71 - 26.37 | 7,739,398 | 1.03 | 1.10 - 2.05 | 20.54 - 21.69 | ||||||||||||||||||||||||
| Division | 2018 | 342,338 | 19.67 - 21.67 | 7,285,386 | 2.54 | 1.10 - 2.05 | (22.18) - (21.44) | ||||||||||||||||||||||||
| 2017 | 353,646 | 25.40 - 27.58 | 9,595,917 | 1.96 | 1.10 - 2.00 | 27.87 - 29.02 | |||||||||||||||||||||||||
| BHFTII | 2021 | 7,106,175 | 2.20 - 135.22 | 629,816,680 | 1.81 | 0.90 - 2.15 | 11.44 - 13.00 | ||||||||||||||||||||||||
| Brighthouse/Wellington | 2020 | 7,735,328 | 1.96 - 119.71 | 610,629,506 | 2.19 | 0.90 - 2.15 | 15.03 - 16.67 | ||||||||||||||||||||||||
| Balanced Division | 2019 | 8,451,244 | 1.69 - 102.66 | 574,717,552 | 2.18 | 0.90 - 2.15 | 20.24 - 21.89 | ||||||||||||||||||||||||
| 2018 | 9,307,629 | 1.40 - 84.26 | 521,756,898 | 1.73 | 0.90 - 2.15 | (5.93) - (4.63) | |||||||||||||||||||||||||
| 2017 | 10,336,562 | 1.47 - 88.39 | 610,158,972 | 1.88 | 0.90 - 2.15 | 12.52 - 14.11 | |||||||||||||||||||||||||
| BHFTII | 2021 | 6,291,202 | 11.33 - 133.49 | 531,319,660 | 1.25 | 0.50 - 2.25 | 21.35 - 23.62 | ||||||||||||||||||||||||
| Brighthouse/Wellington | 2020 | 7,259,472 | 9.23 - 108.10 | 503,780,671 | 1.44 | 0.50 - 2.25 | 8.50 - 10.55 | ||||||||||||||||||||||||
| Core Equity Opportunities | 2019 | 8,239,874 | 8.40 - 97.90 | 520,632,824 | 1.45 | 0.50 - 2.25 | 27.74 - 30.09 | ||||||||||||||||||||||||
| Division | 2018 | 9,569,314 | 6.51 - 75.31 | 471,467,558 | 1.58 | 0.50 - 2.25 | (2.58) - (0.74) | ||||||||||||||||||||||||
| 2017 | 11,256,241 | 6.60 - 75.96 | 570,742,746 | 1.39 | 0.50 - 2.25 | 16.17 - 18.30 | |||||||||||||||||||||||||
| BHFTII Frontier Mid Cap | 2021 | 4,467,854 | 19.09 - 199.82 | 586,525,681 | — | 0.90 - 2.25 | 11.84 - 13.60 | ||||||||||||||||||||||||
| Growth Division | 2020 | 4,933,281 | 16.82 - 175.90 | 572,542,548 | — | 0.90 - 2.25 | 28.45 - 30.46 | ||||||||||||||||||||||||
| 2019 | 5,529,994 | 12.90 - 134.83 | 494,555,658 | — | 0.90 - 2.25 | 29.88 - 31.88 | |||||||||||||||||||||||||
| 2018 | 6,195,073 | 9.78 - 102.24 | 422,776,437 | — | 0.90 - 2.25 | (8.01) - (6.54) | |||||||||||||||||||||||||
| 2017 | 6,921,843 | 10.48 - 109.39 | 508,449,789 | — | 0.90 - 2.25 | 22.16 - 24.09 | |||||||||||||||||||||||||
| BHFTII Jennison Growth | 2021 | 9,073,417 | 2.95 - 77.89 | 287,427,814 | — | 0.50 - 2.25 | 14.31 - 16.33 | ||||||||||||||||||||||||
| Division | 2020 | 10,579,883 | 2.55 - 67.11 | 289,505,068 | 0.06 | 0.50 - 2.25 | 52.89 - 55.59 | ||||||||||||||||||||||||
| 2019 | 11,874,095 | 1.65 - 43.21 | 211,338,418 | 0.26 | 0.50 - 2.25 | 29.55 - 31.83 | |||||||||||||||||||||||||
| 2018 | 13,877,939 | 1.26 - 32.84 | 185,385,848 | 0.17 | 0.50 - 2.25 | (2.13) - (0.39) | |||||||||||||||||||||||||
| 2017 | 14,946,828 | 1.27 - 33.03 | 203,130,928 | 0.13 | 0.50 - 2.25 | 33.95 - 36.31 | |||||||||||||||||||||||||
| BHFTII Loomis Sayles Small | 2021 | 2,370,989 | 11.23 - 133.19 | 163,685,620 | 0.03 | 0.50 - 2.25 | 18.94 - 21.04 | ||||||||||||||||||||||||
| Cap Core Division | 2020 | 2,707,781 | 9.33 - 110.04 | 156,522,639 | 0.04 | 0.50 - 2.25 | 9.29 - 11.23 | ||||||||||||||||||||||||
| 2019 | 3,029,622 | 8.44 - 98.93 | 157,396,600 | 0.01 | 0.50 - 2.25 | 22.44 - 24.60 | |||||||||||||||||||||||||
| 2018 | 3,400,873 | 6.81 - 79.40 | 144,075,649 | 0.01 | 0.50 - 2.25 | (13.28) - (11.74) | |||||||||||||||||||||||||
| 2017 | 3,862,700 | 7.77 - 89.96 | 185,343,480 | 0.14 | 0.50 - 2.25 | 12.41 - 14.39 | |||||||||||||||||||||||||
E-102
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
8. FINANCIAL HIGHLIGHTS — (Continued)
| As of December 31 | For the year ended December 31 | ||||||||||||||||||||||||||||||
| Units | Unit Value Lowest to Highest ($) | Net Assets ($) | Investment1 Income Ratio (%) | Expense Ratio2 Lowest to Highest (%) | Total Return3 Lowest to Highest (%) | ||||||||||||||||||||||||||
| BHFTII Loomis Sayles Small | 2021 | 1,695,408 | 4.03 - 51.50 | 64,952,389 | — | 0.50 - 2.15 | 7.46 - 9.19 | ||||||||||||||||||||||||
| Cap Growth Division | 2020 | 1,855,495 | 3.72 - 47.26 | 66,012,877 | — | 0.50 - 2.15 | 31.25 - 33.37 | ||||||||||||||||||||||||
| 2019 | 2,127,099 | 2.81 - 35.51 | 57,340,292 | — | 0.50 - 2.10 | 23.88 - 25.88 | |||||||||||||||||||||||||
| 2018 | 2,501,161 | 2.25 - 28.26 | 54,202,419 | — | 0.50 - 2.15 | (1.82) - (0.22) | |||||||||||||||||||||||||
| 2017 | 2,468,467 | 2.28 - 28.37 | 54,566,730 | — | 0.50 - 2.15 | 24.05 - 26.05 | |||||||||||||||||||||||||
| BHFTII MetLife Aggregate | 2021 | 48,385,248 | 1.83 - 22.26 | 910,569,466 | 2.40 | 0.50 - 2.25 | (4.39) - (2.56) | ||||||||||||||||||||||||
| Bond Index Division | 2020 | 48,820,793 | 1.89 - 22.87 | 949,536,445 | 2.67 | 0.50 - 2.25 | 4.63 - 6.52 | ||||||||||||||||||||||||
| 2019 | 51,794,175 | 1.79 - 21.48 | 952,097,631 | 3.03 | 0.50 - 2.25 | 5.93 - 7.93 | |||||||||||||||||||||||||
| 2018 | 56,750,323 | 1.68 - 19.93 | 974,062,147 | 2.86 | 0.50 - 2.25 | (2.68) - (0.82) | |||||||||||||||||||||||||
| 2017 | 64,574,871 | 1.71 - 20.12 | 1,126,629,342 | 2.75 | 0.50 - 2.25 | 0.68 - 2.60 | |||||||||||||||||||||||||
| BHFTII MetLife Mid Cap | 2021 | 9,859,099 | 5.30 - 63.60 | 534,359,988 | 0.94 | 0.50 - 2.25 | 21.31 - 23.45 | ||||||||||||||||||||||||
| Stock Index Division | 2020 | 11,467,060 | 4.33 - 51.52 | 506,052,707 | 1.31 | 0.50 - 2.25 | 10.63 - 12.59 | ||||||||||||||||||||||||
| 2019 | 12,674,256 | 3.88 - 45.76 | 500,876,128 | 1.21 | 0.50 - 2.25 | 22.77 - 24.94 | |||||||||||||||||||||||||
| 2018 | 14,264,640 | 3.13 - 36.63 | 453,810,251 | 1.09 | 0.50 - 2.25 | (13.49) - (11.95) | |||||||||||||||||||||||||
| 2017 | 16,065,965 | 3.58 - 41.60 | 580,186,948 | 1.22 | 0.50 - 2.25 | 13.06 - 15.05 | |||||||||||||||||||||||||
| BHFTII MetLife MSCI EAFE® | 2021 | 22,411,515 | 2.01 - 28.11 | 465,174,812 | 1.63 | 0.50 - 2.25 | 8.02 - 9.93 | ||||||||||||||||||||||||
| Index Division | 2020 | 24,590,517 | 1.85 - 25.63 | 466,904,304 | 3.06 | 0.50 - 2.25 | 5.18 - 7.04 | ||||||||||||||||||||||||
| 2019 | 25,852,531 | 1.74 - 23.99 | 460,668,541 | 2.54 | 0.50 - 2.25 | 18.85 - 20.94 | |||||||||||||||||||||||||
| 2018 | 28,690,901 | 1.45 - 19.86 | 424,811,670 | 2.83 | 0.50 - 2.25 | (16.00) - (14.51) | |||||||||||||||||||||||||
| 2017 | 30,129,062 | 1.71 - 23.29 | 524,736,160 | 2.57 | 0.50 - 2.25 | 21.84 - 23.99 | |||||||||||||||||||||||||
| BHFTII MetLife Russell | 2021 | 6,792,038 | 5.04 - 61.40 | 353,923,752 | 0.88 | 0.50 - 2.25 | 11.69 - 13.66 | ||||||||||||||||||||||||
| 2000® Index Division | 2020 | 7,531,805 | 4.47 - 54.02 | 346,715,527 | 1.25 | 0.50 - 2.25 | 16.69 - 18.75 | ||||||||||||||||||||||||
| 2019 | 8,484,812 | 3.80 - 45.49 | 330,807,385 | 1.03 | 0.50 - 2.25 | 22.52 - 24.68 | |||||||||||||||||||||||||
| 2018 | 9,453,823 | 3.07 - 36.49 | 297,512,830 | 0.98 | 0.50 - 2.25 | (13.17) - (11.63) | |||||||||||||||||||||||||
| 2017 | 10,459,851 | 3.51 - 41.29 | 373,905,362 | 1.09 | 0.50 - 2.25 | 11.85 - 13.82 | |||||||||||||||||||||||||
| BHFTII MetLife Stock Index | 2021 | 22,605,518 | 15.02 - 196.61 | 3,495,089,897 | 1.45 | 0.50 - 2.25 | 25.19 - 27.53 | ||||||||||||||||||||||||
| Division | 2020 | 25,861,616 | 11.89 - 154.32 | 3,154,806,376 | 1.82 | 0.50 - 2.25 | 15.20 - 17.34 | ||||||||||||||||||||||||
| 2019 | 29,028,565 | 10.23 - 131.63 | 3,037,442,351 | 2.05 | 0.50 - 2.25 | 27.89 - 30.30 | |||||||||||||||||||||||||
| 2018 | 33,091,820 | 7.93 - 101.14 | 2,669,705,723 | 1.71 | 0.50 - 2.25 | (6.96) - (5.22) | |||||||||||||||||||||||||
| 2017 | 37,306,057 | 8.44 - 106.81 | 3,191,113,485 | 1.68 | 0.50 - 2.25 | 18.54 - 20.76 | |||||||||||||||||||||||||
| BHFTII MFS® Total Return | 2021 | 2,306,720 | 1.79 - 130.69 | 120,981,417 | 1.73 | 0.50 - 1.85 | 11.85 - 13.37 | ||||||||||||||||||||||||
| Division | 2020 | 2,535,226 | 1.58 - 115.28 | 117,745,426 | 2.30 | 0.50 - 2.00 | 7.31 - 8.94 | ||||||||||||||||||||||||
| 2019 | 2,894,622 | 1.46 - 105.82 | 123,762,477 | 2.23 | 0.50 - 2.15 | 17.52 - 19.47 | |||||||||||||||||||||||||
| 2018 | 3,322,036 | 1.22 - 88.58 | 117,516,215 | 2.17 | 0.50 - 2.15 | (7.82) - (6.28) | |||||||||||||||||||||||||
| 2017 | 3,778,366 | 1.31 - 94.51 | 145,097,990 | 2.39 | 0.50 - 2.15 | 9.79 - 11.61 | |||||||||||||||||||||||||
| BHFTII MFS® Value Division | 2021 | 40,856,426 | 2.41 - 47.38 | 663,945,304 | 1.41 | 0.50 - 2.15 | 22.73 - 24.73 | ||||||||||||||||||||||||
| 2020 | 45,919,271 | 1.95 - 38.23 | 627,751,137 | 1.81 | 0.50 - 2.25 | 1.43 - 3.29 | |||||||||||||||||||||||||
| 2019 | 47,345,124 | 1.90 - 37.29 | 665,585,348 | 1.75 | 0.50 - 2.25 | 26.96 - 29.29 | |||||||||||||||||||||||||
| 2018 | 52,559,197 | 1.48 - 29.04 | 598,234,094 | 1.47 | 0.50 - 2.25 | (12.25) - (7.60) | |||||||||||||||||||||||||
| 2017 | 20,677,338 | 1.67 - 32.71 | 523,781,737 | 1.89 | 0.50 - 2.15 | 15.20 - 17.24 | |||||||||||||||||||||||||
| BHFTII Neuberger Berman | 2021 | 5,912,293 | 5.79 - 66.00 | 320,936,546 | 0.04 | 0.50 - 2.15 | 15.69 - 17.53 | ||||||||||||||||||||||||
| Genesis Division | 2020 | 6,733,229 | 4.95 - 56.16 | 311,591,184 | 0.08 | 0.50 - 2.15 | 22.28 - 24.14 | ||||||||||||||||||||||||
| 2019 | 7,645,037 | 4.01 - 45.24 | 287,729,651 | 0.12 | 0.50 - 2.15 | 26.73 - 28.76 | |||||||||||||||||||||||||
| 2018 | 8,679,175 | 3.14 - 35.14 | 255,498,599 | 0.23 | 0.50 - 2.25 | (9.07) - (7.45) | |||||||||||||||||||||||||
| 2017 | 9,828,019 | 1.67 - 37.96 | 314,115,956 | 0.29 | 0.50 - 2.15 | 13.16 - 14.91 | |||||||||||||||||||||||||
E-103
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
8. FINANCIAL HIGHLIGHTS — (Continued)
| As of December 31 | For the year ended December 31 | ||||||||||||||||||||||||||||||
| Units | Unit Value Lowest to Highest ($) | Net Assets ($) | Investment1 Income Ratio (%) | Expense Ratio2 Lowest to Highest (%) | Total Return3 Lowest to Highest (%) | ||||||||||||||||||||||||||
| BHFTII T. Rowe Price Large | 2021 | 11,647,251 | 4.00 - 83.51 | 769,206,460 | — | 0.50 - 2.25 | 17.28 - 19.35 | ||||||||||||||||||||||||
| Cap Growth Division | 2020 | 13,310,314 | 3.38 - 69.97 | 738,162,692 | 0.09 | 0.50 - 2.25 | 33.59 - 35.96 | ||||||||||||||||||||||||
| 2019 | 15,477,657 | 2.50 - 51.46 | 629,369,388 | 0.26 | 0.50 - 2.25 | 27.68 - 29.94 | |||||||||||||||||||||||||
| 2018 | 17,216,055 | 1.94 - 39.60 | 539,361,977 | 0.27 | 0.50 - 2.25 | (3.37) - (1.65) | |||||||||||||||||||||||||
| 2017 | 18,998,068 | 1.98 - 40.27 | 609,640,874 | 0.15 | 0.50 - 2.25 | 30.52 - 32.81 | |||||||||||||||||||||||||
| BHFTII T. Rowe Price Small | 2021 | 6,652,969 | 7.16 - 84.14 | 476,701,925 | 0.02 | 0.50 - 2.25 | 8.88 - 10.80 | ||||||||||||||||||||||||
| Cap Growth Division | 2020 | 7,569,000 | 6.50 - 75.93 | 491,278,222 | 0.10 | 0.50 - 2.25 | 21.28 - 23.42 | ||||||||||||||||||||||||
| 2019 | 8,620,361 | 5.30 - 61.52 | 455,812,251 | 0.02 | 0.50 - 2.25 | 29.88 - 32.17 | |||||||||||||||||||||||||
| 2018 | 9,657,475 | 4.04 - 46.55 | 388,577,931 | 0.05 | 0.50 - 2.25 | (8.87) - (7.25) | |||||||||||||||||||||||||
| 2017 | 10,715,353 | 4.38 - 50.18 | 467,200,326 | 0.19 | 0.50 - 2.25 | 19.82 - 21.92 | |||||||||||||||||||||||||
| BHFTII Van Eck Global | 2021 | 1,734,410 | 13.12 - 14.20 | 24,223,570 | 0.98 | 1.10 - 1.70 | 16.51 - 17.21 | ||||||||||||||||||||||||
| Natural Resources Division | 2020 | 2,324,890 | 10.86 - 12.11 | 27,733,915 | 1.24 | 1.10 - 2.00 | 18.77 - 19.85 | ||||||||||||||||||||||||
| 2019 | 2,701,656 | 9.09 - 10.11 | 26,913,827 | 0.34 | 1.10 - 2.05 | 10.07 - 11.12 | |||||||||||||||||||||||||
| 2018 | 2,687,622 | 8.26 - 9.10 | 24,101,859 | — | 1.10 - 2.05 | (30.31) - (29.64) | |||||||||||||||||||||||||
| 2017 | 2,921,930 | 11.85 - 12.93 | 37,269,860 | — | 1.10 - 2.05 | (2.75) - (1.82) | |||||||||||||||||||||||||
| BHFTII Western Asset | 2021 | 10,455,449 | 1.28 - 47.95 | 381,592,675 | 3.61 | 0.50 - 2.25 | 0.33 - 2.10 | ||||||||||||||||||||||||
| Management Strategic Bond | 2020 | 11,354,141 | 1.26 - 46.96 | 408,706,045 | 5.77 | 0.50 - 2.15 | 4.39 - 6.08 | ||||||||||||||||||||||||
| Opportunities Division | 2019 | 12,363,002 | 1.20 - 44.27 | 422,719,703 | 4.75 | 0.50 - 2.15 | 11.86 - 13.66 | ||||||||||||||||||||||||
| 2018 | 13,731,347 | 1.09 - 38.95 | 422,543,762 | 5.21 | 0.50 - 2.25 | (6.17) - (4.51) | |||||||||||||||||||||||||
| 2017 | 15,854,082 | 1.15 - 40.79 | 514,265,588 | 3.80 | 0.50 - 2.25 | 5.54 - 7.40 | |||||||||||||||||||||||||
| BHFTII Western Asset | 2021 | 6,670,779 | 2.01 - 23.72 | 123,805,731 | 2.50 | 0.50 - 2.15 | (3.71) - (2.26) | ||||||||||||||||||||||||
| Management U.S. | 2020 | 7,382,234 | 2.07 - 24.27 | 139,252,019 | 2.82 | 0.50 - 2.15 | 2.77 - 4.39 | ||||||||||||||||||||||||
| Government Division | 2019 | 7,078,457 | 2.00 - 23.25 | 130,271,257 | 2.56 | 0.50 - 2.15 | 3.63 - 5.25 | ||||||||||||||||||||||||
| 2018 | 7,773,582 | 1.91 - 22.09 | 137,000,881 | 2.11 | 0.50 - 2.25 | (1.56) - 0.19 | |||||||||||||||||||||||||
| 2017 | 9,021,983 | 1.92 - 22.04 | 159,678,213 | 2.46 | 0.50 - 2.25 | (0.58) - 1.17 | |||||||||||||||||||||||||
| BlackRock Global Allocation | 2021 | 652 | 29.43 - 32.22 | 20,050 | 0.67 | 1.10 - 1.60 | 4.73 - 5.25 | ||||||||||||||||||||||||
| V.I. Division | 2020 | 4,081 | 28.10 - 30.61 | 118,145 | 1.31 | 1.10 - 1.60 | 18.79 - 19.38 | ||||||||||||||||||||||||
| 2019 | 4,191 | 23.66 - 25.64 | 102,023 | 1.30 | 1.10 - 1.60 | 15.89 - 16.47 | |||||||||||||||||||||||||
| 2018 | 4,210 | 20.41 - 22.02 | 88,248 | 0.81 | 1.10 - 1.60 | (9.05) - (8.60) | |||||||||||||||||||||||||
| 2017 | 4,188 | 22.44 - 24.09 | 96,276 | 0.30 | 1.10 - 1.60 | 11.91 - 12.47 | |||||||||||||||||||||||||
| Calvert VP SRI Balanced | 2021 | 894,700 | 53.48 - 70.93 | 59,231,523 | 1.15 | 0.50 - 1.45 | 13.46 - 14.54 | ||||||||||||||||||||||||
| Division | 2020 | 954,567 | 47.13 - 62.39 | 55,610,315 | 1.51 | 0.50 - 1.45 | 13.60 - 14.68 | ||||||||||||||||||||||||
| 2019 | 1,030,290 | 40.38 - 54.81 | 52,926,119 | 1.57 | 0.50 - 1.55 | 22.49 - 23.78 | |||||||||||||||||||||||||
| 2018 | 1,063,592 | 32.97 - 44.61 | 44,653,283 | 1.74 | 0.50 - 1.55 | (4.17) - (3.16) | |||||||||||||||||||||||||
| 2017 | 1,186,460 | 34.40 - 46.41 | 51,869,403 | 1.97 | 0.50 - 1.55 | 10.28 - 11.44 | |||||||||||||||||||||||||
| Calvert VP SRI Mid Cap | 2021 | 84,007 | 93.57 | 7,860,497 | 0.19 | 0.95 | 13.95 | ||||||||||||||||||||||||
| Division | 2020 | 92,109 | 82.12 | 7,563,766 | 0.42 | 0.95 | 11.19 | ||||||||||||||||||||||||
| 2019 | 109,291 | 73.85 | 8,071,600 | 0.45 | 0.95 | 30.13 | |||||||||||||||||||||||||
| 2018 | 126,305 | 56.76 | 7,168,514 | 0.52 | 0.95 | (5.33) | |||||||||||||||||||||||||
| 2017 | 145,874 | 59.95 | 8,745,518 | 0.64 | 0.95 | 10.61 | |||||||||||||||||||||||||
| Delaware VIP® Small Cap | 2021 | 448 | 2.01 | 902 | 0.83 | 0.90 | 33.21 | ||||||||||||||||||||||||
| Value Division | 2020 | 448 | 1.51 | 677 | 1.35 | 0.90 | (2.78) | ||||||||||||||||||||||||
| 2019 | 448 | 1.55 | 697 | 2.01 | 0.90 | 26.99 | |||||||||||||||||||||||||
| 2018 | 5,992 | 1.22 | 7,333 | 0.61 | 0.90 | (17.47) | |||||||||||||||||||||||||
| 2017 | 14,842 | 1.48 | 22,010 | 0.95 | 0.90 | 11.05 | |||||||||||||||||||||||||
E-104
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
8. FINANCIAL HIGHLIGHTS — (Continued)
| As of December 31 | For the year ended December 31 | ||||||||||||||||||||||||||||||
| Units | Unit Value Lowest to Highest ($) | Net Assets ($) | Investment1 Income Ratio (%) | Expense Ratio2 Lowest to Highest (%) | Total Return3 Lowest to Highest (%) | ||||||||||||||||||||||||||
| Fidelity® VIP Contrafund® | 2021 | 55,851 | 16.53 - 17.69 | 981,724 | 0.03 | 0.90 - 1.15 | 26.05 - 26.37 | ||||||||||||||||||||||||
| Division | 2020 | 61,965 | 13.12 - 14.00 | 860,110 | 0.08 | 0.90 - 1.15 | 28.74 - 29.06 | ||||||||||||||||||||||||
| 2019 | 66,654 | 10.19 - 10.84 | 717,804 | 0.22 | 0.90 - 1.15 | 29.77 - 30.10 | |||||||||||||||||||||||||
| 2018 | 72,718 | 7.85 - 8.34 | 603,131 | 0.41 | 0.90 - 1.15 | (7.71) - (7.48) | |||||||||||||||||||||||||
| 2017 | 89,664 | 8.51 - 9.01 | 805,722 | 0.68 | 0.90 - 1.15 | 20.20 - 20.50 | |||||||||||||||||||||||||
| Fidelity® VIP | 2021 | 1,248,036 | 15.59 - 130.86 | 72,640,456 | 1.88 | 0.95 - 1.35 | 23.22 - 23.72 | ||||||||||||||||||||||||
| Equity-Income Division | 2020 | 1,351,903 | 12.65 - 105.77 | 63,502,205 | 1.78 | 0.95 - 1.35 | 5.26 - 13.76 | ||||||||||||||||||||||||
| 2019 | 1,544,624 | 12.02 - 100.08 | 67,252,015 | 1.89 | 0.95 - 1.35 | 25.73 - 26.24 | |||||||||||||||||||||||||
| 2018 | 1,815,376 | 9.56 - 79.28 | 63,735,707 | 2.20 | 0.95 - 1.35 | (9.53) - (9.16) | |||||||||||||||||||||||||
| 2017 | 2,048,365 | 10.56 - 87.27 | 78,340,010 | 1.66 | 0.95 - 1.35 | 11.38 - 11.83 | |||||||||||||||||||||||||
| Fidelity® VIP Freedom 2020 | 2021 | 163,380 | 25.62 - 27.12 | 4,368,234 | 0.83 | 0.90 - 1.25 | 7.91 - 8.28 | ||||||||||||||||||||||||
| Division | 2020 | 175,053 | 23.74 - 25.05 | 4,340,434 | 1.25 | 0.90 - 1.25 | 13.30 - 13.69 | ||||||||||||||||||||||||
| 2019 | 135,554 | 20.95 - 22.03 | 2,956,078 | 2.17 | 0.90 - 1.25 | 18.40 - 18.80 | |||||||||||||||||||||||||
| 2018 | 56,275 | 17.69 - 18.54 | 1,037,991 | 1.25 | 0.90 - 1.25 | (6.92) - (5.28) | |||||||||||||||||||||||||
| 2017 | 63,006 | 19.92 | 1,255,251 | 1.16 | 0.90 | 15.22 | |||||||||||||||||||||||||
| Fidelity® VIP Freedom 2025 | 2021 | 287,972 | 27.75 - 29.66 | 8,278,233 | 0.89 | 0.90 - 1.30 | 9.12 - 9.56 | ||||||||||||||||||||||||
| Division | 2020 | 270,297 | 25.43 - 27.08 | 7,124,363 | 1.39 | 0.90 - 1.30 | 14.18 - 14.64 | ||||||||||||||||||||||||
| 2019 | 158,625 | 22.46 - 23.62 | 3,657,061 | 2.24 | 0.90 - 1.25 | 8.00 - 20.42 | |||||||||||||||||||||||||
| 2018 | 58,278 | 18.71 - 19.61 | 1,132,045 | 1.34 | 0.90 - 1.25 | (7.62) - (6.00) | |||||||||||||||||||||||||
| 2017 | 38,578 | 20.57 - 21.23 | 819,000 | 0.87 | 0.90 - 1.15 | 16.23 - 16.52 | |||||||||||||||||||||||||
| Fidelity® VIP Freedom 2030 | 2021 | 290,180 | 29.12 - 33.28 | 8,836,620 | 0.97 | 0.50 - 1.30 | 10.62 - 11.51 | ||||||||||||||||||||||||
| Division | 2020 | 232,863 | 26.32 - 29.84 | 6,430,259 | 1.11 | 0.50 - 1.30 | 15.13 - 16.06 | ||||||||||||||||||||||||
| 2019 | 178,878 | 23.03 - 24.25 | 4,308,863 | 1.87 | 0.90 - 1.25 | 8.63 - 23.00 | |||||||||||||||||||||||||
| 2018 | 149,868 | 18.81 - 19.71 | 2,953,022 | 1.19 | 0.90 - 1.25 | (8.88) - (7.27) | |||||||||||||||||||||||||
| 2017 | 139,649 | 20.96 - 21.63 | 3,021,173 | 0.96 | 0.90 - 1.15 | 19.32 - 19.62 | |||||||||||||||||||||||||
| Fidelity® VIP Freedom 2035 | 2021 | 112,239 | 40.28 - 42.96 | 4,718,083 | 1.08 | 0.95 - 1.45 | 13.52 - 14.09 | ||||||||||||||||||||||||
| Division | 2020 | 56,150 | 35.49 - 37.65 | 2,068,090 | 1.18 | 0.95 - 1.45 | 16.25 - 16.84 | ||||||||||||||||||||||||
| (Commenced 4/30/2018) | 2019 | 15,788 | 31.21 - 32.22 | 499,141 | 2.87 | 0.95 - 1.25 | 8.77 - 25.93 | ||||||||||||||||||||||||
| 2018 | 4,218 | 24.86 - 25.59 | 105,591 | 1.79 | 0.95 - 1.25 | (9.85) - (9.67) | |||||||||||||||||||||||||
| Fidelity® VIP Freedom 2040 | 2021 | 68,494 | 42.86 - 47.46 | 3,038,775 | 0.89 | 0.50 - 1.30 | 15.98 - 16.91 | ||||||||||||||||||||||||
| Division | 2020 | 49,758 | 36.96 - 40.60 | 1,912,754 | 0.83 | 0.50 - 1.30 | 17.45 - 18.40 | ||||||||||||||||||||||||
| 2019 | 39,636 | 31.47 - 34.29 | 1,297,820 | 2.04 | 0.50 - 1.30 | 9.54 - 27.08 | |||||||||||||||||||||||||
| 2018 | 19,309 | 25.00 - 25.85 | 498,777 | 0.96 | 0.90 - 1.25 | (11.16) - (9.46) | |||||||||||||||||||||||||
| 2017 | 18,419 | 28.39 - 29.02 | 534,464 | 1.03 | 0.90 - 1.15 | 21.89 - 22.19 | |||||||||||||||||||||||||
| Fidelity® VIP Freedom 2045 | 2021 | 68,496 | 43.38 - 45.38 | 3,065,206 | 0.79 | 0.95 - 1.30 | 16.01 - 16.43 | ||||||||||||||||||||||||
| Division | 2020 | 48,514 | 37.39 - 38.98 | 1,866,574 | 0.98 | 0.95 - 1.30 | 17.42 - 17.84 | ||||||||||||||||||||||||
| (Commenced 4/30/2018) | 2019 | 26,012 | 32.04 - 33.08 | 851,015 | 2.46 | 0.95 - 1.25 | 9.66 - 27.05 | ||||||||||||||||||||||||
| 2018 | 4,811 | 25.30 - 26.04 | 124,900 | 2.32 | 0.95 - 1.25 | (10.45) - (10.27) | |||||||||||||||||||||||||
| Fidelity® VIP Freedom 2050 | 2021 | 149,456 | 42.97 - 48.50 | 6,746,794 | 0.83 | 0.50 - 1.45 | 15.82 - 16.93 | ||||||||||||||||||||||||
| Division | 2020 | 104,593 | 37.10 - 41.48 | 4,073,510 | 1.06 | 0.50 - 1.45 | 17.28 - 18.40 | ||||||||||||||||||||||||
| 2019 | 41,247 | 31.63 - 33.56 | 1,369,729 | 2.34 | 0.90 - 1.45 | 9.43 - 27.07 | |||||||||||||||||||||||||
| 2018 | 13,729 | 25.54 - 26.41 | 362,109 | 1.18 | 0.90 - 1.25 | (10.94) - (9.48) | |||||||||||||||||||||||||
| 2017 | 8,553 | 29.65 | 253,618 | 1.09 | 0.90 | 22.20 | |||||||||||||||||||||||||
E-105
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
8. FINANCIAL HIGHLIGHTS — (Continued)
| As of December 31 | For the year ended December 31 | ||||||||||||||||||||||||||||||
| Units | Unit Value Lowest to Highest ($) | Net Assets ($) | Investment1 Income Ratio (%) | Expense Ratio2 Lowest to Highest (%) | Total Return3 Lowest to Highest (%) | ||||||||||||||||||||||||||
| Fidelity® VIP FundsManager | 2021 | 12,481,990 | 19.00 - 19.46 | 240,652,047 | 1.12 | 1.90 - 2.05 | 7.79 - 7.95 | ||||||||||||||||||||||||
| 50% Division | 2020 | 13,833,224 | 17.63 - 18.03 | 247,253,463 | 1.13 | 1.90 - 2.05 | 11.66 - 11.83 | ||||||||||||||||||||||||
| 2019 | 15,805,863 | 15.79 - 16.12 | 252,823,113 | 1.61 | 1.90 - 2.05 | 15.50 - 15.67 | |||||||||||||||||||||||||
| 2018 | 18,690,885 | 13.67 - 13.93 | 258,652,350 | 1.35 | 1.90 - 2.05 | (7.14) - (7.00) | |||||||||||||||||||||||||
| 2017 | 21,200,158 | 14.72 - 14.98 | 315,705,343 | 1.15 | 1.90 - 2.05 | 12.14 - 12.31 | |||||||||||||||||||||||||
| Fidelity® VIP FundsManager | 2021 | 12,336,639 | 19.20 - 23.48 | 241,915,885 | 1.09 | 0.70 - 2.10 | 10.01 - 11.56 | ||||||||||||||||||||||||
| 60% Division | 2020 | 13,649,023 | 17.45 - 21.04 | 242,924,543 | 1.05 | 0.70 - 2.10 | 12.73 - 14.32 | ||||||||||||||||||||||||
| 2019 | 15,189,665 | 15.48 - 15.97 | 239,540,942 | 1.49 | 1.85 - 2.10 | 17.98 - 18.28 | |||||||||||||||||||||||||
| 2018 | 17,207,125 | 13.12 - 13.50 | 229,662,248 | 1.18 | 1.85 - 2.10 | (8.39) - (8.16) | |||||||||||||||||||||||||
| 2017 | 19,728,179 | 14.32 - 14.70 | 286,973,777 | 1.05 | 1.85 - 2.10 | 14.56 - 14.85 | |||||||||||||||||||||||||
| Fidelity® VIP Government | 2021 | 306,845 | 16.13 | 4,949,044 | 0.01 | 0.95 | (0.93) | ||||||||||||||||||||||||
| Money Market Division | 2020 | 366,357 | 16.28 | 5,964,444 | 0.33 | 0.95 | (0.63) | ||||||||||||||||||||||||
| 2019 | 330,518 | 16.38 | 5,414,916 | 1.99 | 0.95 | 1.06 | |||||||||||||||||||||||||
| 2018 | 330,351 | 16.21 | 5,355,641 | 1.64 | 0.95 | 0.69 | |||||||||||||||||||||||||
| 2017 | 311,112 | 16.10 | 5,009,176 | 0.66 | 0.95 | (0.27) | |||||||||||||||||||||||||
| Fidelity® VIP Growth | 2021 | 611,993 | 230.32 | 140,954,875 | — | 0.95 | 22.06 | ||||||||||||||||||||||||
| Division | 2020 | 663,454 | 188.70 | 125,194,940 | 0.08 | 0.95 | 42.54 | ||||||||||||||||||||||||
| 2019 | 744,359 | 132.39 | 98,544,772 | 0.25 | 0.95 | 33.05 | |||||||||||||||||||||||||
| 2018 | 879,956 | 99.50 | 87,558,490 | 0.24 | 0.95 | (1.11) | |||||||||||||||||||||||||
| 2017 | 980,268 | 100.62 | 98,637,848 | 0.22 | 0.95 | 33.87 | |||||||||||||||||||||||||
| Fidelity® VIP Investment | 2021 | 223,841 | 39.89 | 8,929,968 | 2.02 | 0.95 | (1.54) | ||||||||||||||||||||||||
| Grade Bond Division | 2020 | 235,580 | 40.52 | 9,545,422 | 1.76 | 0.95 | 8.36 | ||||||||||||||||||||||||
| 2019 | 240,865 | 37.39 | 9,006,440 | 2.66 | 0.95 | 8.63 | |||||||||||||||||||||||||
| 2018 | 255,936 | 34.42 | 8,809,328 | 2.40 | 0.95 | (1.47) | |||||||||||||||||||||||||
| 2017 | 293,120 | 34.93 | 10,239,907 | 2.28 | 0.95 | 3.24 | |||||||||||||||||||||||||
| Fidelity® VIP Mid Cap | 2021 | 43,732 | 12.48 | 545,739 | 0.36 | 0.90 | 24.18 | ||||||||||||||||||||||||
| Division | 2020 | 47,935 | 10.05 | 481,692 | 0.40 | 0.90 | 16.81 | ||||||||||||||||||||||||
| 2019 | 51,631 | 8.60 | 444,178 | 0.66 | 0.90 | 22.07 | |||||||||||||||||||||||||
| 2018 | 59,331 | 7.05 | 418,140 | 0.36 | 0.90 | (15.54) | |||||||||||||||||||||||||
| 2017 | 81,118 | 7.96 - 8.34 | 676,874 | 0.49 | 0.90 - 1.15 | 19.16 - 19.46 | |||||||||||||||||||||||||
| FTVIPT Templeton Developing | 2021 | 24,007 | 2.07 | 49,747 | 0.88 | 0.90 | (6.58) | ||||||||||||||||||||||||
| Markets VIP Division | 2020 | 24,767 | 2.22 | 54,938 | 4.12 | 0.90 | 16.13 | ||||||||||||||||||||||||
| 2019 | 24,767 | 1.91 | 47,307 | 1.06 | 0.90 | 25.56 | |||||||||||||||||||||||||
| 2018 | 88,922 | 1.52 | 135,271 | 0.84 | 0.90 | (16.55) | |||||||||||||||||||||||||
| 2017 | 83,878 | 1.82 | 152,910 | 1.07 | 0.90 | 39.15 | |||||||||||||||||||||||||
| FTVIPT Templeton Foreign | 2021 | 112 | 4.31 | 482 | 1.59 | 0.90 | 3.23 | ||||||||||||||||||||||||
| VIP Division (Had no net | 2020 | — | 4.17 | — | — | 0.90 | (2.05) | ||||||||||||||||||||||||
| assets at December 31, | 2019 | — | 4.26 | — | — | 0.90 | 11.52 | ||||||||||||||||||||||||
| 2020 and 2019) | 2018 | 159 | 3.82 | 609 | 2.67 | 0.90 | (16.20) | ||||||||||||||||||||||||
| 2017 | 159 | 4.27 - 4.56 | 726 | 2.30 | 0.90 - 1.15 | 15.36 - 15.65 | |||||||||||||||||||||||||
| Janus Henderson Enterprise | 2021 | 8,707 | 17.60 | 153,237 | 0.24 | 0.90 | 15.50 | ||||||||||||||||||||||||
| Division | 2020 | 10,328 | 15.24 | 157,391 | — | 0.90 | 18.11 | ||||||||||||||||||||||||
| 2019 | 10,195 | 12.90 | 131,537 | 0.04 | 0.90 | 33.95 | |||||||||||||||||||||||||
| 2018 | 10,917 | 9.63 | 105,150 | 0.10 | 0.90 | (1.56) | |||||||||||||||||||||||||
| 2017 | 15,309 | 9.78 | 149,792 | 0.11 | 0.90 | 25.95 | |||||||||||||||||||||||||
E-106
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
8. FINANCIAL HIGHLIGHTS — (Continued)
| As of December 31 | For the year ended December 31 | ||||||||||||||||||||||||||||||
| Units | Unit Value Lowest to Highest ($) | Net Assets ($) | Investment1 Income Ratio (%) | Expense Ratio2 Lowest to Highest (%) | Total Return3 Lowest to Highest (%) | ||||||||||||||||||||||||||
| LMPVET ClearBridge Variable | 2021 | 4,610 | 13.04 | 60,139 | 0.63 | 0.90 | 22.55 | ||||||||||||||||||||||||
| Appreciation Division | 2020 | 4,985 | 10.64 | 53,060 | 1.00 | 0.90 | 13.74 | ||||||||||||||||||||||||
| 2019 | 5,773 | 9.36 | 54,018 | 1.43 | 0.90 | 28.70 | |||||||||||||||||||||||||
| 2018 | 5,873 | 7.27 | 42,700 | 1.24 | 0.90 | (2.63) | |||||||||||||||||||||||||
| 2017 | 6,486 | 7.47 | 48,429 | 1.27 | 0.90 | 18.48 | |||||||||||||||||||||||||
| LMPVET ClearBridge Variable | 2021 | 42,161 | 2.46 | 103,656 | 1.51 | 0.90 | 25.66 | ||||||||||||||||||||||||
| Dividend Strategy Division | 2020 | 43,961 | 1.96 | 86,009 | 1.53 | 0.90 | 6.70 | ||||||||||||||||||||||||
| 2019 | 41,412 | 1.83 | 75,932 | 1.45 | 0.90 | 30.41 | |||||||||||||||||||||||||
| 2018 | 45,798 | 1.41 | 64,392 | 1.56 | 0.90 | (5.71) | |||||||||||||||||||||||||
| 2017 | 46,671 | 1.49 | 69,596 | 1.52 | 0.90 | 18.11 | |||||||||||||||||||||||||
| LMPVET ClearBridge Variable | 2021 | 71,487 | 7.39 - 7.84 | 555,917 | — | 0.90 - 1.15 | 20.55 - 20.85 | ||||||||||||||||||||||||
| Large Cap Growth Division | 2020 | 78,691 | 6.13 - 6.49 | 507,611 | 0.02 | 0.90 - 1.15 | 29.24 - 29.56 | ||||||||||||||||||||||||
| 2019 | 92,711 | 4.74 - 5.01 | 462,772 | 0.31 | 0.90 - 1.15 | 30.65 - 30.98 | |||||||||||||||||||||||||
| 2018 | 128,203 | 3.63 - 3.82 | 489,481 | 0.30 | 0.90 - 1.15 | (1.13) - (0.88) | |||||||||||||||||||||||||
| 2017 | 132,067 | 3.67 - 3.86 | 508,988 | 0.20 | 0.90 - 1.15 | 24.33 - 24.64 | |||||||||||||||||||||||||
| LMPVET ClearBridge Variable | 2021 | 7,572 | 7.77 - 8.21 | 61,501 | — | 0.90 - 1.15 | 11.32 - 11.60 | ||||||||||||||||||||||||
| Small Cap Growth Division | 2020 | 8,447 | 6.98 - 7.36 | 61,746 | — | 0.90 - 1.15 | 41.62 - 41.98 | ||||||||||||||||||||||||
| 2019 | 8,421 | 4.93 - 5.18 | 43,535 | — | 0.90 - 1.15 | 25.42 - 25.74 | |||||||||||||||||||||||||
| 2018 | 3,651 | 4.12 | 15,046 | — | 0.90 | 2.50 | |||||||||||||||||||||||||
| 2017 | 6,825 | 4.02 | 27,439 | — | 0.90 | 23.16 | |||||||||||||||||||||||||
| LMPVIT Western Asset Core | 2021 | 108 | 3.82 | 414 | 0.04 | 0.90 | (2.85) | ||||||||||||||||||||||||
| Plus Division | 2020 | 9,712 | 3.93 | 38,145 | 2.08 | 0.90 | 8.33 | ||||||||||||||||||||||||
| 2019 | 10,910 | 3.63 | 39,557 | 3.02 | 0.90 | 11.17 | |||||||||||||||||||||||||
| 2018 | 25,469 | 3.26 | 83,068 | 3.42 | 0.90 | (3.11) | |||||||||||||||||||||||||
| 2017 | 31,136 | 3.37 | 104,815 | 3.41 | 0.90 | 4.80 | |||||||||||||||||||||||||
| Morgan Stanley VIF Global | 2021 | 3,851 | 15.87 - 17.68 | 65,736 | 2.29 | 1.10 - 1.60 | 12.19 - 12.76 | ||||||||||||||||||||||||
| Infrastructure Division | 2020 | 4,056 | 14.15 - 15.68 | 60,741 | 1.45 | 1.10 - 1.60 | (3.00) - (2.52) | ||||||||||||||||||||||||
| 2019 | 4,476 | 14.59 - 16.09 | 68,714 | 2.55 | 1.10 - 1.60 | 25.84 - 26.47 | |||||||||||||||||||||||||
| 2018 | 5,120 | 11.59 - 12.72 | 62,114 | 2.72 | 1.10 - 1.60 | (9.36) - (8.90) | |||||||||||||||||||||||||
| 2017 | 4,622 | 12.79 - 13.96 | 61,644 | 2.27 | 1.10 - 1.60 | 10.76 - 11.32 | |||||||||||||||||||||||||
| PIMCO VIT | 2021 | 4,451 | 8.58 - 8.89 | 38,881 | 3.94 | 1.10 - 1.60 | 30.64 - 31.29 | ||||||||||||||||||||||||
| CommodityRealReturn® | 2020 | 5,152 | 6.57 - 6.77 | 34,311 | 6.18 | 1.10 - 1.60 | (0.53) - (0.03) | ||||||||||||||||||||||||
| Strategy Division | 2019 | 5,237 | 6.60 - 6.77 | 34,970 | 4.21 | 1.10 - 1.60 | 9.22 - 9.77 | ||||||||||||||||||||||||
| 2018 | 5,859 | 6.04 - 6.17 | 35,709 | 1.86 | 1.10 - 1.60 | (15.70) - (15.27) | |||||||||||||||||||||||||
| 2017 | 6,917 | 7.17 - 7.28 | 49,885 | 10.82 | 1.10 - 1.60 | 0.32 - 0.82 | |||||||||||||||||||||||||
| PIMCO VIT Dynamic Bond | 2021 | 1,880 | 10.61 - 10.99 | 20,565 | 1.76 | 1.10 - 1.60 | (0.62) - (0.12) | ||||||||||||||||||||||||
| Division | 2020 | 3,381 | 10.67 - 11.01 | 36,833 | 1.80 | 1.10 - 1.60 | 2.83 - 3.35 | ||||||||||||||||||||||||
| 2019 | 8,103 | 10.38 - 10.65 | 85,343 | 2.49 | 1.10 - 1.60 | 2.96 - 3.48 | |||||||||||||||||||||||||
| 2018 | 8,338 | 10.08 - 10.29 | 85,042 | 2.39 | 1.10 - 1.60 | (0.88) - (0.38) | |||||||||||||||||||||||||
| 2017 | 11,816 | 10.17 - 10.33 | 121,046 | 1.41 | 1.10 - 1.60 | 3.04 - 3.55 | |||||||||||||||||||||||||
| PIMCO VIT Emerging Markets | 2021 | 3,430 | 11.56 - 11.98 | 40,608 | 3.91 | 1.10 - 1.60 | (4.40) - (3.92) | ||||||||||||||||||||||||
| Bond Division | 2020 | 4,012 | 12.09 - 12.47 | 49,384 | 3.91 | 1.10 - 1.60 | 4.69 - 5.22 | ||||||||||||||||||||||||
| 2019 | 5,135 | 11.55 - 11.85 | 60,178 | 4.12 | 1.10 - 1.60 | 12.61 - 13.17 | |||||||||||||||||||||||||
| 2018 | 6,000 | 10.26 - 10.47 | 62,180 | 3.83 | 1.10 - 1.60 | (6.53) - (6.06) | |||||||||||||||||||||||||
| 2017 | 6,421 | 10.98 - 11.15 | 71,038 | 4.78 | 1.10 - 1.60 | 7.81 - 8.35 | |||||||||||||||||||||||||
E-107
METROPOLITAN LIFE SEPARATE ACCOUNT E
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Concluded)
8. FINANCIAL HIGHLIGHTS — (Concluded)
| As of December 31 | For the year ended December 31 | ||||||||||||||||||||||||||||||
| Units | Unit Value Lowest to Highest ($) | Net Assets ($) | Investment1 Income Ratio (%) | Expense Ratio2 Lowest to Highest (%) | Total Return3 Lowest to Highest (%) | ||||||||||||||||||||||||||
| TAP 1919 Variable Socially | 2021 | 1,085 | 9.61 | 10,423 | 0.25 | 0.90 | 17.47 | ||||||||||||||||||||||||
| Responsive Balanced Division | 2020 | 4,540 | 8.18 | 37,136 | 0.79 | 0.90 | 21.83 | ||||||||||||||||||||||||
| 2019 | 4,540 | 6.71 | 30,482 | 0.94 | 0.90 | 25.57 | |||||||||||||||||||||||||
| 2018 | 4,988 | 5.35 | 26,671 | 1.09 | 0.90 | (1.83) | |||||||||||||||||||||||||
| 2017 | 4,430 | 5.11 - 5.45 | 24,126 | 1.34 | 0.90 - 1.15 | 15.41 - 15.70 | |||||||||||||||||||||||||
1 These amounts represent the dividends, excluding distributions of capital gains, received by the Division from the underlying fund, series, or portfolio, net of management fees assessed by the fund manager, divided by the average net assets, regardless of share class, if any. These ratios exclude those expenses, such as mortality and expense risk charges, that are assessed against Contract owner accounts either through reductions in the unit values or the redemption of units. The investment income ratio is calculated for each period indicated or from the effective date through the end of the reporting period. The recognition of investment income by the Division is affected by the timing of the declaration of dividends by the underlying fund, series, or portfolio in which the Division invests. The investment income ratio is calculated as a weighted average ratio since the Division may invest in two or more share classes, within the underlying fund, series, or portfolio of the Trusts which may have unique investment income ratios.
2 These amounts represent annualized Contract expenses of each of the applicable Divisions, consisting primarily of mortality and expense risk charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to Contract owner accounts through the redemption of units and expenses of the underlying fund, series, or portfolio have been excluded.
3 These amounts represent the total return for the period indicated, including changes in the value of the underlying fund, series, or portfolio, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. The total return is presented as a range of minimum to maximum returns, based on the minimum and maximum returns within each product grouping of the applicable Division.
E-108
| Module |
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Item 8. Financial Statements and Supplementary Data
Index to Consolidated Financial Statements, Notes and Schedules
Page
------
Report of Independent Registered Public Accounting Firm (PCAOB ID 34).... 2
Financial Statements at December 31, 2021 and 2020 and for the Years
Ended December 31, 2021, 2020 and 2019:
Consolidated Balance Sheets............................................ 5
Consolidated Statements of Operations.................................. 6
Consolidated Statements of Comprehensive Income (Loss)................. 7
Consolidated Statements of Equity...................................... 8
Consolidated Statements of Cash Flows.................................. 9
Notes to the Consolidated Financial Statements......................... 11
Note 1 -- Business, Basis of Presentation and Summary of
Significant Accounting Policies................................... 11
Note 2 -- Segment Information....................................... 29
Note 3 -- Insurance................................................. 34
Note 4 -- Deferred Policy Acquisition Costs, Value of Business
Acquired and Other Intangibles.................................... 43
Note 5 -- Reinsurance............................................... 46
Note 6 -- Closed Block.............................................. 51
Note 7 -- Investments............................................... 54
Note 8 -- Derivatives............................................... 75
Note 9 -- Fair Value................................................ 87
Note 10 -- Leases................................................... 101
Note 11 -- Long-term and Short-term Debt............................ 103
Note 12 -- Equity................................................... 104
Note 13 -- Other Revenues and Other Expenses........................ 108
Note 14 -- Employee Benefit Plans................................... 109
Note 15 -- Income Tax............................................... 112
Note 16 -- Contingencies, Commitments and Guarantees................ 115
Note 17 -- Related Party Transactions............................... 118
Financial Statement Schedules at December 31, 2021 and 2020 and for
the Years Ended December 31, 2021, 2020 and 2019:
Schedule I -- Consolidated Summary of Investments -- Other Than
Investments in Related Parties........................................ 120
Schedule III -- Consolidated Supplementary Insurance Information....... 121
Schedule IV -- Consolidated Reinsurance................................ 123
MLIC-1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the stockholder and the Board of Directors of Metropolitan Life Insurance
Company
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Metropolitan
Life Insurance Company and subsidiaries (the "Company") as of December 31, 2021
and 2020, the related consolidated statements of operations, comprehensive
income (loss), equity, and cash flows for each of the three years in the period
ended December 31, 2021, and the related notes and the schedules listed in the
Index to Consolidated Financial Statements, Notes and Schedules (collectively
referred to as the "financial statements"). In our opinion, the financial
statements present fairly, in all material respects, the financial position of
the Company as of December 31, 2021 and 2020, and the results of its operations
and its cash flows for each of the three years in the period ended December 31,
2021, in conformity with accounting principles generally accepted in the United
States of America.
Basis for Opinion
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on the Company's financial
statements based on our audits. We are a public accounting firm registered with
the Public Company Accounting Oversight Board (United States) (PCAOB) and are
required to be independent with respect to the Company in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Company is not required to
have, nor were we engaged to perform, an audit of its internal control over
financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting but not for the
purpose of expressing an opinion on the effectiveness of the Company's internal
control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. We believe
that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the
current-period audit of the financial statements that were communicated or
required to be communicated to the audit committee and that (1) relate to
accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our opinion
on the financial statements, taken as a whole, and we are not, by communicating
the critical audit matters below, providing separate opinions on the critical
audit matters or on the accounts or disclosures to which they relate.
Fixed Maturity Securities Available-for-Sale -- Fair Value of Level 3 Fixed
Maturity Securities -- Refer to Notes 1, 7, and 9 to the financial statements
Critical Audit Matter Description
The Company has investments in certain fixed maturity securities classified as
available-for-sale whose fair values are based on unobservable inputs that are
supported by little or no market activity. When a price is not available in the
active market, from an independent pricing service, or from independent broker
quotations, management values the security using internal matrix pricing or
discounted cash flow techniques. These investments are categorized as Level 3
and had an estimated fair value of $4.3 billion as of December 31, 2021.
MLIC-2
Given management uses considerable judgment when estimating the fair value of
Level 3 fixed maturity securities determined using internal matrix pricing or
discounted cash flow techniques, performing audit procedures to evaluate the
estimate of fair value required a high degree of auditor judgment and an
increased extent of effort. This audit effort included the use of professionals
with specialized skills and knowledge, including our fair value specialists, to
assist in performing procedures and evaluating the audit evidence obtained.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the valuation of Level 3 fixed maturity
securities determined using internal matrix pricing or discounted cash flow
techniques included, among others, the following:
. We tested the effectiveness of controls over the determination of fair
value.
. We tested the accuracy and completeness of relevant security attributes,
including credit ratings, maturity dates and coupon rates, used in the
determination of Level 3 fair values.
. With the involvement of our fair value specialists, we developed
independent fair value estimates for a sample of securities and compared
our estimates to the Company's estimates and evaluated differences. We
developed our estimate by evaluating the observable and unobservable
inputs used by management or developing independent inputs.
. We evaluated management's ability to accurately estimate fair value by
comparing management's historical estimates to subsequent transactions,
taking into account changes in market conditions subsequent to
December 31, 2021.
Insurance Liabilities -- Valuation of Future Policy Benefits for Long-Term Care
Insurance -- Refer to Notes 1 and 3 to the financial statements
Critical Audit Matter Description
The Company's products include long-term care insurance. Liabilities for
amounts payable under long-term care insurance are recorded in future policy
benefits in the Company's consolidated balance sheets. Such liabilities are
established based on actuarial assumptions at the time policies are issued,
which are intended to estimate the experience for the period the policy
benefits are payable. Significant adverse changes in experience on such
contracts may require the establishment of premium deficiency reserves, which
are based on current assumptions. Management's estimate of future policy
benefits for long-term care insurance was $14.4 billion as of December 31, 2021.
Management applies considerable judgment in evaluating actual experience to
determine whether a change in assumptions for long-term care insurance is
warranted. Principal assumptions used in the valuation of future policy
benefits for long-term care insurance include morbidity, policy lapse,
investment returns and mortality.
Given the inherent uncertainty in selecting assumptions, we have determined
that management's evaluation of actual experience when estimating future policy
benefits for long-term care insurance policies is a critical audit matter,
which required a high degree of auditor judgment and an increased extent of
effort when performing audit procedures to evaluate the judgments made and the
reasonableness of the assumptions used in the valuation. The audit effort
included the use of professionals with specialized skill and knowledge,
including our actuarial specialists, to assist in performing these procedures
and evaluating the audit evidence obtained from these procedures.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the assumptions used to determine the estimate
of future policy benefits for long-term care insurance, included, among others,
the following:
. We tested the effectiveness of the control over the assumptions used in
the valuation of future policy benefits and the effectiveness of the
controls over the underlying data.
. With the involvement of our actuarial specialists, we:
. evaluated judgments applied by management in setting principal
assumptions, including evaluating the results of experience studies
used as the basis for setting those assumptions.
MLIC-3
. evaluated management's estimate of, or developed an independent
estimate of future policy benefits, on a sample basis, and evaluated
differences. This included confirming that assumptions were applied
as intended.
. evaluated the results of the Company's annual premium deficiency
tests.
Derivatives -- Valuation of Embedded Derivative Liabilities -- Refer to Notes
1, 3, 8, and 9 to the financial statements
Critical Audit Matter Description
The Company's products include variable annuity contracts with guaranteed
minimum benefits that provide the policyholder a minimum return based on their
initial deposit adjusted for withdrawals. The guarantees on variable annuity
contracts are accounted for as insurance liabilities or as embedded derivatives
depending on how and when the benefit is paid. Guarantees accounted for as
embedded derivatives include the non-life contingent portion of guaranteed
minimum withdrawal benefits and certain non-life contingent portions of
guaranteed minimum income benefits, and are recorded in policyholder account
balances on the Company's consolidated balance sheet. Embedded derivatives are
measured at estimated fair value separately from the host variable annuity
contract using actuarial and capital market assumptions that are updated
annually. Management's estimate of embedded derivative liabilities was $1.5
billion as of December 31, 2021.
Management applies considerable judgment in selecting assumptions used to
estimate embedded derivative liabilities and changes in market conditions or
variations in certain assumptions could result in significant fluctuations in
the estimate. Principal assumptions include mortality, lapse, dynamic lapse,
withdrawal, utilization, and risk-free rates and implied volatilities. The
valuation of the embedded derivative liabilities is also based on complex
calculations which are data intensive.
Given the inherent uncertainty in selecting assumptions and the complexity of
the calculations, we have determined that management's valuation of the
embedded derivative liabilities is a critical audit matter which required a
high degree of auditor judgment and an increased extent of effort when
performing audit procedures to evaluate the judgments made and the
reasonableness of the models and assumptions used in the valuation. The audit
effort included the use of professionals with specialized skill and knowledge,
including our valuation, modeling and actuarial specialists, to assist in
performing these procedures and evaluating the audit evidence obtained from
these procedures.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the valuation of embedded derivative
liabilities included, among others, the following:
. We tested the effectiveness of controls over the assumptions, including
controls over the underlying data used in the valuation of embedded
derivative liabilities.
. We tested the effectiveness of controls over the methodologies and
models used for determining the embedded derivative liabilities.
. With the involvement of our valuation, modeling and actuarial
specialists, we:
. evaluated the methods, models, and judgments applied by management in
the determination of principal assumptions and the calculation of the
embedded derivative liabilities
. evaluated the results of underlying experience studies, capital
market projections, and judgments applied by management in setting
the assumptions
. developed an independent estimate of the embedded derivative
liabilities, on a sample basis, and evaluated differences.
/s/ DELOITTE & TOUCHE LLP
New York, New York
March 7, 2022
We have served as the Company's auditor since at least 1968; however, an
earlier year could not be reliably determined.
MLIC-4
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Consolidated Balance Sheets
December 31, 2021 and 2020
(In millions, except share and per share data)
2021 2020
------------- -------------
Assets
Investments:
Fixed maturity securities available-for-sale, at
estimated fair value (amortized cost: $158,354
and $156,423, respectively; allowance for credit
loss of $53 and $51, respectively)............... $ 175,885 $ 181,340
Mortgage loans (net of allowance for credit loss
of $536 and $517, respectively; includes $224
and $199, respectively, relating to variable
interest entities and $127 and $165,
respectively, under the fair value option)....... 60,219 66,405
Policy loans...................................... 5,816 5,973
Real estate and real estate joint ventures
(includes $1,094 and $1,435, respectively,
relating to variable interest entities, $240 and
$169, respectively, under the fair value option
and $175 and $128, respectively, of real estate
held-for-sale)................................... 7,873 7,478
Other limited partnership interests............... 8,754 5,775
Short-term investments, at estimated fair value... 4,866 2,623
Other invested assets (includes $924 and $992,
respectively, of leveraged and direct financing
leases; $171 and $79, respectively, relating to
variable interest entities and allowance for
credit loss of $32 and $38, respectively)........ 19,860 17,723
------------- -------------
Total investments............................... 283,273 287,317
Cash and cash equivalents, principally at
estimated fair value............................. 9,957 11,337
Accrued investment income......................... 1,767 1,904
Premiums, reinsurance and other receivables....... 20,505 21,478
Deferred policy acquisition costs and value of
business acquired................................ 2,598 2,649
Current income tax recoverable.................... 80 --
Other assets...................................... 4,526 4,276
Separate account assets........................... 123,851 128,646
------------- -------------
Total assets.................................... $ 446,557 $ 457,607
============= =============
Liabilities and Equity
Liabilities
Future policy benefits............................ $ 132,274 $ 133,921
Policyholder account balances..................... 94,459 96,635
Other policy-related balances..................... 8,094 7,430
Policyholder dividends payable.................... 312 397
Policyholder dividend obligation.................. 1,682 2,969
Payables for collateral under securities loaned
and other transactions........................... 24,866 23,122
Short-term debt................................... 100 120
Long-term debt.................................... 1,659 1,619
Current income tax payable........................ -- 486
Deferred income tax liability..................... 2,036 1,980
Other liabilities................................. 23,796 25,424
Separate account liabilities...................... 123,851 128,646
------------- -------------
Total liabilities............................... 413,129 422,749
------------- -------------
Contingencies, Commitments and Guarantees (Note
16)
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
Additional paid-in capital........................ 12,464 12,460
Retained earnings................................. 10,868 10,548
Accumulated other comprehensive income (loss)..... 9,917 11,662
------------- -------------
Total Metropolitan Life Insurance Company
stockholder's equity........................... 33,254 34,675
Noncontrolling interests.......................... 174 183
------------- -------------
Total equity.................................... 33,428 34,858
------------- -------------
Total liabilities and equity.................... $ 446,557 $ 457,607
============= =============
See accompanying notes to the consolidated financial statements.
MLIC-5
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Consolidated Statements of Operations
For the Years Ended December 31, 2021, 2020 and 2019
(In millions)
2021 2020 2019
------------ ------------ ------------
Revenues
Premiums.......................................... $ 26,191 $ 20,741 $ 21,608
Universal life and investment-type product policy
fees............................................. 2,062 1,996 2,037
Net investment income............................. 12,486 10,250 10,973
Other revenues.................................... 1,616 1,661 1,573
Net investment gains (losses)..................... 652 (73) 346
Net derivative gains (losses)..................... (964) 738 (288)
------------ ------------ ------------
Total revenues................................... 42,043 35,313 36,249
------------ ------------ ------------
Expenses
Policyholder benefits and claims.................. 29,423 23,074 24,051
Interest credited to policyholder account balances 2,027 2,247 2,624
Policyholder dividends............................ 728 901 1,038
Other expenses.................................... 5,617 5,013 4,976
------------ ------------ ------------
Total expenses................................... 37,795 31,235 32,689
------------ ------------ ------------
Income (loss) before provision for income tax.... 4,248 4,078 3,560
Provision for income tax expense (benefit)........ 530 534 148
------------ ------------ ------------
Net income (loss)................................ 3,718 3,544 3,412
Less: Net income (loss) attributable to
noncontrolling interests......................... 5 (6) (6)
------------ ------------ ------------
Net income (loss) attributable to Metropolitan
Life Insurance Company......................... $ 3,713 $ 3,550 $ 3,418
============ ============ ============
See accompanying notes to the consolidated financial statements.
MLIC-6
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Consolidated Statements of Comprehensive Income (Loss)
For the Years Ended December 31, 2021, 2020 and 2019
(In millions)
2021 2020 2019
----------- ----------- -----------
Net income (loss)................................. $ 3,718 $ 3,544 $ 3,412
Other comprehensive income (loss):
Unrealized investment gains (losses), net of
related offsets.................................. (2,462) 1,911 8,053
Unrealized gains (losses) on derivatives.......... 111 216 279
Foreign currency translation adjustments.......... 9 54 (32)
Defined benefit plans adjustment.................. 82 (108) (143)
----------- ----------- -----------
Other comprehensive income (loss), before income
tax............................................ (2,260) 2,073 8,157
Income tax (expense) benefit related to items of
other comprehensive income (loss)................ 515 (436) (1,711)
----------- ----------- -----------
Other comprehensive income (loss), net of income
tax............................................ (1,745) 1,637 6,446
----------- ----------- -----------
Comprehensive income (loss)....................... 1,973 5,181 9,858
Less: Comprehensive income (loss) attributable to
noncontrolling interest, net of income tax....... 5 (6) (6)
----------- ----------- -----------
Comprehensive income (loss) attributable to
Metropolitan Life Insurance Company............ $ 1,968 $ 5,187 $ 9,864
=========== =========== ===========
See accompanying notes to the consolidated financial statements.
MLIC-7
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Consolidated Statements of Equity
For the Years Ended December 31, 2021, 2020 and 2019
(In millions)
Accumulated Total
Additional Other Metropolitan Life
Common Paid-in Retained Comprehensive Insurance Company Noncontrolling Total
Stock Capital Earnings Income (Loss) Stockholder's Equity Interests Equity
-------- ----------- ----------- -------------- --------------------- --------------- ---------
Balance at December 31, 2018.. $ 5 $ 12,450 $ 9,512 $ 3,562 $ 25,529 $ 198 $ 25,727
Cumulative effects of changes
in accounting principles,
net of income tax............ 78 17 95 95
Capital contributions from
MetLife, Inc................. 5 5 5
Dividends to MetLife, Inc..... (3,065) (3,065) (3,065)
Change in equity of
noncontrolling interests..... -- (8) (8)
Net income (loss)............. 3,418 3,418 (6) 3,412
Other comprehensive income
(loss), net of income tax.... 6,446 6,446 6,446
-------- ----------- ----------- ---------- -------------- --------- ---------
Balance at December 31, 2019.. 5 12,455 9,943 10,025 32,428 184 32,612
Cumulative effects of changes
in accounting principles,
net of income tax............ (113) (113) (113)
Capital contributions from
MetLife, Inc................. 5 5 5
Dividends to MetLife, Inc..... (2,832) (2,832) (2,832)
Change in equity of
noncontrolling interests..... -- 5 5
Net income (loss)............. 3,550 3,550 (6) 3,544
Other comprehensive income
(loss), net of income tax.... 1,637 1,637 1,637
-------- ----------- ----------- ---------- -------------- --------- ---------
Balance at December 31, 2020.. 5 12,460 10,548 11,662 34,675 183 34,858
Capital contributions from
MetLife, Inc................. 4 4 4
Dividends to MetLife, Inc..... (3,393) (3,393) (3,393)
Change in equity of
noncontrolling interests..... -- (14) (14)
Net income (loss)............. 3,713 3,713 5 3,718
Other comprehensive income
(loss), net of income tax.... (1,745) (1,745) (1,745)
-------- ----------- ----------- ---------- -------------- --------- ---------
Balance at December 31, 2021.. $ 5 $ 12,464 $ 10,868 $ 9,917 $ 33,254 $ 174 $ 33,428
======== =========== =========== ========== ============== ========= =========
See accompanying notes to the consolidated financial statements.
MLIC-8
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2021, 2020 and 2019
(In millions)
2021 2020 2019
------------- ------------- -------------
Cash flows from operating activities
Net income (loss)................................ $ 3,718 $ 3,544 $ 3,412
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating
activities:
Depreciation and amortization expenses.......... 136 125 99
Amortization of premiums and accretion of
discounts associated with investments, net..... (656) (651) (823)
(Gains) losses on investments and from sales of
businesses, net................................ (652) 73 (346)
(Gains) losses on derivatives, net.............. 2,480 (299) 499
(Income) loss from equity method investments,
net of dividends or distributions.............. (1,873) 238 366
Interest credited to policyholder account
balances....................................... 1,988 2,213 2,624
Universal life and investment-type product
policy fees.................................... (1,070) (1,130) (2,037)
Change in fair value option and trading
securities..................................... (125) (171) (151)
Change in accrued investment income............. 69 72 45
Change in premiums, reinsurance and other
receivables.................................... 752 826 (200)
Change in deferred policy acquisition costs and
value of business acquired, net................ 194 355 197
Change in income tax............................ 5 104 (351)
Change in other assets.......................... (308) 90 961
Change in insurance-related liabilities and
policy-related balances........................ (957) (1,256) 1,571
Change in other liabilities..................... (370) (1,372) 277
Other, net...................................... (74) 176 (1)
------------- ------------- -------------
Net cash provided by (used in) operating
activities................................... 3,257 2,937 6,142
------------- ------------- -------------
Cash flows from investing activities
Sales, maturities and repayments of:
Fixed maturity securities available-for-sale.... 51,010 46,700 49,464
Equity securities............................... 565 310 183
Mortgage loans.................................. 16,790 9,963 11,482
Real estate and real estate joint ventures...... 1,329 81 1,101
Other limited partnership interests............. 541 464 494
Purchases and originations of:
Fixed maturity securities available-for-sale.... (52,513) (48,561) (48,421)
Equity securities............................... (48) (106) (49)
Mortgage loans.................................. (10,502) (10,931) (13,458)
Real estate and real estate joint ventures...... (1,042) (768) (1,443)
Other limited partnership interests............. (1,896) (1,071) (971)
Cash received in connection with freestanding
derivatives..................................... 1,720 3,823 1,759
Cash paid in connection with freestanding
derivatives..................................... (5,181) (2,886) (1,957)
Cash received from the redemption of an
investment in affiliated preferred stock........ 315 -- --
Receipts on loans to affiliates.................. 87 251 --
Purchases of loans to affiliates................. (15) -- --
Net change in policy loans....................... 157 127 (39)
Net change in short-term investments............. (2,295) (714) (377)
Net change in other invested assets.............. 74 44 (8)
Net change in property, equipment and leasehold
improvements.................................... 15 18 60
Other, net....................................... 14 21 (4)
------------- ------------- -------------
Net cash provided by (used in) investing
activities..................................... $ (875) $ (3,235) $ (2,184)
------------- ------------- -------------
See accompanying notes to the consolidated financial statements.
MLIC-9
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Consolidated Statements of Cash Flows -- (continued)
For the Years Ended December 31, 2021, 2020 and 2019
(In millions)
2021 2020 2019
------------- ------------ -------------
Cash flows from financing activities
Policyholder account balances:
Deposits....................................... $ 78,129 $ 77,446 $ 74,049
Withdrawals.................................... (80,378) (74,655) (74,571)
Net change in payables for collateral under
securities loaned and other transactions........ 1,744 2,757 1,893
Long-term debt issued............................ 35 128 --
Long-term debt repaid............................ (26) (97) (28)
Financing element on certain derivative
instruments and other derivative related
transactions, net............................... 173 (40) (175)
Dividends paid to MetLife, Inc................... (3,393) (2,832) (3,065)
Other, net....................................... (42) (3) (19)
------------- ------------ -------------
Net cash provided by (used in) financing
activities.................................... (3,758) 2,704 (1,916)
------------- ------------ -------------
Effect of change in foreign currency exchange
rates on cash and cash equivalents balances..... (4) 4 3
------------- ------------ -------------
Change in cash and cash equivalents............ (1,380) 2,410 2,045
Cash and cash equivalents, beginning of year..... 11,337 8,927 6,882
------------- ------------ -------------
Cash and cash equivalents, end of year......... $ 9,957 $ 11,337 $ 8,927
============= ============ =============
Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest......................................... $ 95 $ 99 $ 104
============= ============ =============
Income tax....................................... $ 388 $ 45 $ 552
============= ============ =============
Non-cash transactions:
Capital contributions from MetLife, Inc.......... $ 4 $ 5 $ 5
============= ============ =============
Real estate and real estate joint ventures
acquired in satisfaction of debt................ $ 174 $ 10 $ 32
============= ============ =============
Increase in equity securities due to in-kind
distributions received from other limited
partnership interests........................... $ 337 $ 100 $ 41
============= ============ =============
Increase in other invested assets in connection
with affiliated reinsurance transactions........ $ 3,140 $ -- $ --
============= ============ =============
Operating lease liability associated with the
recognition of right-of-use assets.............. $ 4 $ -- $ 152
============= ============ =============
Transfer of fixed maturity securities
available-for-sale to an affiliate.............. $ -- $ 296 $ --
============= ============ =============
Transfer of mortgage loans to an affiliate....... $ -- $ 84 $ --
============= ============ =============
Transfer of real estate from an affiliate........ $ -- $ 380 $ --
============= ============ =============
See accompanying notes to the consolidated financial statements.
MLIC-10
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements
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 and is organized into two 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 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, 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 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 a controlling
financial interest, and variable interest entities ("VIEs") for which the
Company is the primary beneficiary. Intercompany accounts and transactions
have been eliminated.
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.
Separate Accounts
Separate accounts are established in conformity with insurance laws.
Generally, the assets of the separate accounts cannot be used to settle the
liabilities that arise from any other business of the Company. Separate
account assets are subject to general account claims only to the extent the
value of such assets exceeds the separate account liabilities. The Company
reports separately, as assets and liabilities, investments held in separate
accounts and liabilities of the separate accounts if:
. such separate accounts are legally recognized;
. assets supporting the contract liabilities are legally insulated from the
Company's general account liabilities;
. investment objectives are directed by the contractholder; and
. all investment performance, net of contract fees and assessments, is
passed through to the contractholder.
The Company reports separate account assets at their fair value, which is
based on the estimated fair values of the underlying assets comprising the
individual separate account portfolios. Investment performance (including
investment income, net investment gains (losses) and changes in unrealized
gains (losses)) and the corresponding amounts credited to contractholders of
such separate accounts are offset within the same line on the statements of
operations. Separate accounts credited with a contractual investment return
are combined on a line-by-line basis with the Company's general account
assets, liabilities, revenues and expenses and the accounting for these
investments is consistent with the methodologies described herein for similar
financial instruments held within the general account.
The Company's revenues reflect fees charged to the separate accounts,
including mortality charges, risk charges, policy administration fees,
investment management fees and surrender charges. Such fees are included in
universal life and investment-type product policy fees on the statements of
operations.
MLIC-11
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
Summary of Significant Accounting Policies
The following are the Company's significant accounting policies with
references to notes providing additional information on such policies and
critical accounting estimates relating to such policies.
---------------------------------------------------------------------------------------------
Accounting Policy Note
---------------------------------------------------------------------------------------------
Insurance 3
---------------------------------------------------------------------------------------------
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles 4
---------------------------------------------------------------------------------------------
Reinsurance 5
---------------------------------------------------------------------------------------------
Investments 7
---------------------------------------------------------------------------------------------
Derivatives 8
---------------------------------------------------------------------------------------------
Fair Value 9
---------------------------------------------------------------------------------------------
Employee Benefit Plans 14
---------------------------------------------------------------------------------------------
Income Tax 15
---------------------------------------------------------------------------------------------
Litigation Contingencies 16
---------------------------------------------------------------------------------------------
Insurance
Future Policy Benefit Liabilities and Policyholder Account Balances
The Company establishes liabilities for amounts payable under insurance
policies. Generally, amounts are payable over an extended period of time and
related liabilities are calculated as the present value of future expected
benefits to be paid, reduced by the present value of future expected
premiums. Such liabilities are established based on methods and underlying
assumptions in accordance with GAAP and applicable actuarial standards.
Principal assumptions used in the establishment of liabilities for future
policy benefits are mortality, morbidity, policy lapse, renewal, retirement,
disability incidence, disability terminations, investment returns,
inflation, expenses and other contingent events as appropriate to the
respective product type. These assumptions are established at the time the
policy is issued and are intended to estimate the experience for the period
the policy benefits are payable. Utilizing these assumptions, liabilities
are established on a block of business basis. For long-duration insurance
contracts, assumptions such as mortality, morbidity and interest rates are
"locked in" upon the issuance of new business. However, significant adverse
changes in experience on such contracts may require the establishment of
premium deficiency reserves. Such reserves are determined based on the then
current assumptions and do not include a provision for adverse deviation.
Premium deficiency reserves may also be established for short-duration
contracts to provide for expected future losses. These reserves are based on
actuarial estimates of the amount of loss inherent in that period, including
losses incurred for which claims have not been reported. The provisions for
unreported claims are calculated using studies that measure the historical
length of time between the incurred date of a claim and its eventual
reporting to the Company. Anticipated investment income is considered in the
calculation of premium deficiency losses for short-duration contracts.
Liabilities for universal and variable life policies with secondary
guarantees and paid-up guarantees are determined by estimating the expected
value of death benefits payable when the account balance is projected to be
zero and recognizing those benefits ratably over the life of the contract
based on total expected assessments. The assumptions used in estimating the
secondary and paid-up guarantee liabilities are consistent with those used
for amortizing deferred policy acquisition costs ("DAC"), and are thus
subject to the same variability and risk as further discussed herein. The
assumptions of investment performance and volatility for variable products
are consistent with historical experience of appropriate underlying equity
indices, such as the S&P Global Ratings ("S&P") 500 Index. The benefits used
in calculating the liabilities are based on the average benefits payable
over a range of scenarios.
The Company regularly reviews its estimates of liabilities for future
policy benefits and compares them with its actual experience. Differences
result in changes to the liability balances with related charges or credits
to benefit expenses in the period in which the changes occur.
MLIC-12
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
Policyholder account balances relate to contracts or contract features
where the Company has no significant insurance risk.
The Company issues directly and assumes through reinsurance variable
annuity products with guaranteed minimum benefits that provide the
policyholder a minimum return based on their initial deposit adjusted for
withdrawals. These guarantees are accounted for as insurance liabilities or
as embedded derivatives depending on how and when the benefit is paid.
Specifically, a guarantee is accounted for as an embedded derivative if a
guarantee is paid without requiring (i) the occurrence of a specific
insurable event, or (ii) the policyholder to annuitize. Alternatively, a
guarantee is accounted for as an insurance liability if the guarantee is
paid only upon either (i) the occurrence of a specific insurable event, or
(ii) annuitization. In certain cases, a guarantee may have elements of both
an insurance liability and an embedded derivative and in such cases the
guarantee is split and accounted for under both models.
Guarantees accounted for as insurance liabilities in future policy
benefits include guaranteed minimum death benefits ("GMDBs"), the
life-contingent portion of guaranteed minimum withdrawal benefits ("GMWBs"),
elective annuitizations of guaranteed minimum income benefits ("GMIBs"), and
the life contingent portion of GMIBs that require annuitization when the
account balance goes to zero.
Guarantees accounted for as embedded derivatives in policyholder account
balances include guaranteed minimum accumulation benefits ("GMABs"), the
non-life contingent portion of GMWBs and certain non-life contingent
portions of GMIBs. 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.
Other Policy-Related Balances
Other policy-related balances include policy and contract claims, premiums
received in advance, unearned revenue liabilities, obligations assumed under
structured settlement assignments, policyholder dividends due and unpaid,
and policyholder dividends left on deposit.
The liability for policy and contract claims generally relates to incurred
but not reported ("IBNR") death, disability, and dental claims. In addition,
included in other policy-related balances are claims which have been
reported but not yet settled for death, disability and dental. The liability
for these claims is based on the Company's estimated ultimate cost of
settling all claims. The Company derives estimates for the development of
IBNR claims principally from analyses of historical patterns of claims by
business line. The methods used to determine these estimates are continually
reviewed. Adjustments resulting from this continuous review process and
differences between estimates and payments for claims are recognized in
policyholder benefits and claims expense in the period in which the
estimates are changed or payments are made.
The Company accounts for the prepayment of premiums on its individual
life, group life and health contracts as premiums received in advance. These
amounts are then recognized in premiums when due.
The unearned revenue liability relates to universal life and
investment-type products and represents policy charges for services to be
provided in future periods. The charges are deferred as unearned revenue and
amortized using the product's estimated gross profits and margins, similar
to DAC as discussed further herein. Such amortization is recorded in
universal life and investment-type product policy fees.
Recognition of Insurance Revenues and Deposits
Premiums related to traditional life and annuity contracts with life
contingencies are recognized as revenues when due from policyholders.
Policyholder benefits and expenses are provided to recognize profits over
the estimated lives of the insurance policies. When premiums are due over a
significantly shorter period than the period over which benefits are
provided, any excess profit is deferred and recognized into earnings in a
constant relationship to insurance in-force or, for annuities, the amount of
expected future policy benefit payments.
MLIC-13
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
Premiums related to short-duration non-medical health, disability and
accident & health contracts are recognized on a pro rata basis over the
applicable contract term.
Deposits related to universal life and investment-type products are
credited to policyholder account balances. Revenues from such contracts
consist of fees for mortality, policy administration and surrender charges
and are recorded in universal life and investment-type product policy fees
in the period in which services are provided. Amounts that are charged to
earnings include interest credited and benefit claims incurred in excess of
related policyholder account balances.
All revenues and expenses are presented net of reinsurance, as applicable.
Deferred Policy Acquisition Costs, Value of Business Acquired and Other
Intangibles
The Company incurs significant costs in connection with acquiring new and
renewal insurance business. Costs that are related directly to the successful
acquisition or renewal of insurance contracts are capitalized as DAC. Such
costs include:
. incremental direct costs of contract acquisition, such as commissions;
. the portion of an employee's total compensation and benefits related to
time spent selling, underwriting or processing the issuance of new and
renewal insurance business only with respect to actual policies acquired
or renewed; and
. other essential direct costs that would not have been incurred had a
policy not been acquired or renewed.
All other acquisition-related costs, including those related to general
advertising and solicitation, market research, agent training, product
development, unsuccessful sales and underwriting efforts, as well as all
indirect costs, are expensed as incurred.
Value of business acquired ("VOBA") is an intangible asset resulting from a
business combination that represents the excess of book value over the
estimated fair value of acquired insurance, annuity, and investment-type
contracts in-force at the acquisition date. The estimated fair value of the
acquired liabilities is based on projections, by each block of business, of
future policy and contract charges, premiums, mortality and morbidity,
separate account performance, surrenders, operating expenses, investment
returns, nonperformance risk adjustment and other factors. Actual experience
with the purchased business may vary from these projections.
DAC and VOBA are amortized as follows:
Products: In proportion to the following over
estimated lives of the contracts:
------------------------------------------------------------------------------
. Nonparticipating and Actual and expected future gross
non-dividend-paying traditional premiums
contracts:
. Term insurance
. Nonparticipating whole life
insurance
. Traditional group life insurance
. Non-medical health insurance
------------------------------------------------------------------------------
. Participating, dividend-paying Actual and expected future gross
traditional contracts margins
------------------------------------------------------------------------------
. Fixed and variable universal life Actual and expected future gross
contracts profits
. Fixed and variable deferred annuity
contracts
------------------------------------------------------------------------------
See Note 4 for additional information on DAC and VOBA amortization.
Amortization of DAC and VOBA is included in other expenses.
The recovery of DAC and VOBA is dependent upon the future profitability of
the related business. DAC and VOBA are aggregated on the financial statements
for reporting purposes.
The Company generally has two different types of sales inducements which
are included in other assets: (i) the policyholder receives a bonus whereby
the policyholder's initial account balance is increased by an amount equal to
a specified percentage of the customer's deposit; and (ii) the policyholder
receives a higher interest rate using a dollar cost averaging method than
would have been received based on the normal general account interest rate
credited. The Company
MLIC-14
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
defers sales inducements and amortizes them over the life of the policy using
the same methodology and assumptions used to amortize DAC. The amortization
of sales inducements is included in policyholder benefits and claims. Each
year, or more frequently if circumstances indicate a potential recoverability
issue exists, the Company reviews deferred sales inducements ("DSI") to
determine the recoverability of the asset.
Value of distribution agreements acquired ("VODA") is reported in other
assets and represents the present value of expected future profits associated
with the expected future business derived from the distribution agreements
acquired as part of a business combination. Value of customer relationships
acquired ("VOCRA") is also reported in other assets and represents the
present value of the expected future profits associated with the expected
future business acquired through existing customers of the acquired company
or business. The VODA and VOCRA associated with past business combinations
are amortized over the assets' useful lives ranging from 10 to 30 years and
such amortization is included in other expenses. Each year, or more
frequently if circumstances indicate a possible impairment exists, the
Company reviews VODA and VOCRA to determine whether the asset is impaired.
Reinsurance
For each of its reinsurance agreements, the Company determines whether the
agreement provides indemnification against loss or liability relating to
insurance risk in accordance with applicable accounting standards. Cessions
under reinsurance agreements do not discharge the Company's obligations as
the primary insurer. The Company reviews all contractual features, including
those that may limit the amount of insurance risk to which the reinsurer is
subject or features that delay the timely reimbursement of claims.
For reinsurance of existing in-force blocks of long-duration contracts that
transfer significant insurance risk, the difference, if any, between the
amounts paid (received), and the liabilities ceded (assumed) related to the
underlying contracts is considered the net cost of reinsurance at the
inception of the reinsurance agreement. The net cost of reinsurance is
amortized on a basis consistent with the methodologies and assumptions used
for amortizing DAC related to the underlying reinsured contracts. Subsequent
amounts paid (received) on the reinsurance of in-force blocks, as well as
amounts paid (received) related to new business, are recorded as
ceded (assumed) premiums; and ceded (assumed) premiums, reinsurance and other
receivables (future policy benefits) are established.
For prospective reinsurance of short-duration contracts that meet the
criteria for reinsurance accounting, amounts paid (received) are recorded as
ceded (assumed) premiums and ceded (assumed) unearned premiums. Ceded
(assumed) unearned premiums are reflected as a component of premiums,
reinsurance and other receivables (future policy benefits). Such amounts are
amortized through earned premiums over the remaining contract period in
proportion to the amount of insurance protection provided. For retroactive
reinsurance of short-duration contracts that meet the criteria for
reinsurance accounting, amounts paid (received) in excess of the related
insurance liabilities ceded (assumed) are recognized immediately as a loss
and are reported in the appropriate line item within the statement of
operations. Any gain on such retroactive agreement is deferred and is
amortized as part of DAC, primarily using the recovery method.
Amounts currently recoverable under reinsurance agreements are included in
premiums, reinsurance and other receivables and amounts currently payable are
included in other liabilities. Assets and liabilities relating to reinsurance
agreements with the same reinsurer may be recorded net on the balance sheet,
if a right of offset exists within the reinsurance agreement. In the event
that reinsurers do not meet their obligations to the Company under the terms
of the reinsurance agreements, reinsurance recoverable balances could become
uncollectible. In such instances, reinsurance recoverable balances are stated
net of allowances for uncollectible reinsurance, consistent with credit loss
guidance which requires recording an allowance for credit loss ("ACL").
The funds withheld liability represents amounts withheld by the Company in
accordance with the terms of the reinsurance agreements. The Company
withholds the funds rather than transferring the underlying investments and,
as a result, records funds withheld liability within other liabilities. The
Company recognizes interest on funds withheld, included in other expenses, at
rates defined by the terms of the agreement which may be contractually
specified or directly related to the investment portfolio.
See "-- Investments -- Other Invested Assets" for information on funds
withheld assets.
MLIC-15
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
Premiums, fees and policyholder benefits and claims include amounts assumed
under reinsurance agreements and are net of reinsurance ceded. Amounts
received from reinsurers for policy administration are reported in other
revenues. With respect to GMIBs, a portion of the directly written GMIBs are
accounted for as insurance liabilities, but the associated reinsurance
agreements contain embedded derivatives. These embedded derivatives are
included in premiums, reinsurance and other receivables with changes in
estimated fair value reported in net derivative gains (losses). Certain
assumed GMWBs, GMABs and GMIBs are also accounted for as embedded derivatives
with changes in estimated fair value reported in net derivative gains
(losses).
If the Company determines that a reinsurance agreement does not expose the
reinsurer to a reasonable possibility of a significant loss from insurance
risk, the Company records the agreement using the deposit method of
accounting. Deposits received are included in other liabilities and deposits
made are included within premiums, reinsurance and other receivables. As
amounts are paid or received, consistent with the underlying contracts, the
deposit assets or liabilities are adjusted. Interest on such deposits is
recorded as other revenues or other expenses, as appropriate. Periodically,
the Company evaluates the adequacy of the expected payments or recoveries and
adjusts the deposit asset or liability through other revenues or other
expenses, as appropriate.
Investments
Net Investment Income
Net investment income includes primarily interest income, including
amortization of premium and accretion of discount, prepayment fees, dividend
income, rental income and equity method income and is net of related
investment expenses. Net investment income also includes, to a lesser
extent, (i) realized gains (losses) on investments sold or disposed and
(ii) unrealized gains (losses) recognized in earnings, representing changes
in estimated fair value, primarily for fair value option ("FVO") securities
("FVO Securities").
Net Investment Gains (Losses)
Net investment gains (losses) include primarily (i) realized gains
(losses) from sales and disposals of investments, which are determined by
specific identification, (ii) intent-to-sell impairment losses on fixed
maturity securities available-for-sale ("AFS") and impairment losses on all
other asset classes, and to a lesser extent, (iii) recognized gains
(losses). Recognized gains (losses) are primarily comprised of the change in
the ACL and unrealized gains (losses) for certain investments for which
changes in estimated fair value are recognized in earnings. Changes in the
ACL includes both (i) provisions for credit loss on fixed maturity
securities AFS, mortgage loans and leveraged and direct financing leases and
(ii) subsequent changes in the ACL. Unrealized gains (losses), representing
changes in estimated fair value recognized in earnings, primarily relate to
equity securities and certain other limited partnership interests and real
estate joint ventures.
Net investment gains (losses) also include non-investment portfolio gains
(losses) which do not relate to the performance of the investment portfolio,
including gains (losses) from sales and divestitures of businesses and
impairment of property, equipment, leasehold improvements and right-of-use
("ROU") lease assets.
Accrued Investment Income
Accrued investment income is presented separately on the consolidated
balance sheet and excluded from the carrying value of the related
investments, primarily fixed maturity securities and mortgage loans.
Fixed Maturity Securities
The majority of the Company's fixed maturity securities are classified as
AFS and are reported at their estimated fair value. Changes in the estimated
fair value of these securities not recognized in earnings representing
unrecognized unrealized investment gains (losses) are recorded as a separate
component of other comprehensive income (loss) ("OCI"), net of
policy-related amounts and deferred income taxes. All security transactions
are recorded on a trade date basis. Sales of securities are determined on a
specific identification basis.
MLIC-16
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
Interest income and prepayment fees are recognized when earned. Interest
income is recognized using an effective yield method giving effect to
amortization of premium and accretion of discount, and is based on the
estimated economic life of the securities, which for mortgage-backed and
asset-backed securities considers the estimated timing and amount of
prepayments of the underlying loans. See Note 7 "-- Fixed Maturity
Securities AFS -- Methodology for Amortization of Premium and Accretion of
Discount on Structured Products." The amortization of premium and accretion
of discount also take into consideration call and maturity dates. Generally,
the accrual of income is ceased and accrued investment income that is
considered uncollectible is recognized as a charge within net investment
gains (losses) when securities are impaired.
The Company periodically evaluates these securities for impairment. The
assessment of whether impairments have occurred is based on management's
case-by-case evaluation of the underlying reasons for the decline in
estimated fair value as described in Note 7 "-- Fixed Maturity Securities
AFS -- Evaluation of Fixed Maturity Securities AFS for Credit Loss."
After adoption of credit loss guidance on January 1, 2020, for securities
in an unrealized loss position, a credit loss is recognized in earnings
within net investment gains (losses) when it is anticipated that the
amortized cost, excluding accrued investment income, will not be recovered.
When either: (i) the Company has the intent to sell the security; or (ii) it
is more likely than not that the Company will be required to sell the
security before recovery, the reduction of amortized cost and the loss
recognized in earnings is the entire difference between the security's
amortized cost and estimated fair value. If neither of these conditions
exists, the difference between the amortized cost of the security and the
present value of projected future cash flows expected to be collected is
recognized in earnings as a credit loss by establishing an ACL with a
corresponding charge recorded in net investment gains (losses). However, the
ACL is limited by the amount that the fair value is less than the amortized
cost. This limitation is known as the "fair value floor." If the estimated
fair value is less than the present value of projected future cash flows
expected to be collected, this portion of the decline in value related to
other-than-credit factors ("noncredit loss") is recorded in OCI as an
unrecognized loss.
During the year ended December 31, 2019, prior to the adoption of credit
loss guidance on January 1, 2020, the Company applied other than temporary
impairment ("OTTI") guidance for securities in an unrealized loss position.
An OTTI was recognized in earnings within net investment gains (losses) when
it was anticipated that the amortized cost would not be recovered. When
either: (i) the Company had the intent to sell the security, or (ii) it was
more likely than not that the Company would be required to sell the security
before recovery, the reduction of amortized cost and the OTTI recognized in
earnings was the entire difference between the security's amortized cost and
estimated fair value. If neither of these conditions existed, the difference
between the amortized cost of the security and the present value of
projected future cash flows expected to be collected was recognized as a
reduction of amortized cost and an OTTI in earnings. If the estimated fair
value was less than the present value of projected future cash flows
expected to be collected, this portion of OTTI related to noncredit loss was
recorded in OCI as an unrecognized loss.
The credit loss guidance adopted on January 1, 2020, replaced the model
for purchased credit impaired ("PCI") fixed maturity securities AFS and
financing receivables and requires the establishment of an ACL at
acquisition, which is added to the purchase price to establish the initial
amortized cost of the investment and is not recognized in earnings.
Mortgage Loans
After adoption of credit loss guidance on January 1, 2020, the Company
recognizes an ACL in earnings within net investment gains (losses) at time
of purchase based on expected lifetime credit loss on financing receivables
carried at amortized cost, including, but not limited to, mortgage loans and
leveraged and direct financing leases, in an amount that represents the
portion of the amortized cost basis of such financing receivables that the
Company does not expect to collect, resulting in financing receivables being
presented at the net amount expected to be collected.
During the year ended December 31, 2019, prior to the adoption of credit
loss guidance on January 1, 2020, the Company applied incurred loss guidance
where credit loss was recognized in earnings within net investment gains
(losses) when incurred (when it was probable, based on current information
and events, that all amounts due under the loan agreement would not be
collected).
MLIC-17
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
The Company disaggregates its mortgage loan investments into three
portfolio segments: commercial, agricultural and residential. Also included
in commercial mortgage loans are revolving line of credit loans
collateralized by commercial properties. The accounting policies that are
applicable to all portfolio segments are presented below and the accounting
policies related to each of the portfolio segments are included in Note 7.
Mortgage loans are stated at unpaid principal balance, adjusted for any
unamortized premium or discount, deferred fees or expenses, and are net of
ACL. Interest income and prepayment fees are recognized when earned.
Interest income is recognized using an effective yield method giving effect
to amortization of premium and deferred expenses and accretion of discount
and deferred fees.
The Company ceases to accrue interest when the collection of interest is
not considered probable, which is based on a current evaluation of the
status of the borrower, including the number of days past due. When a loan
is placed on non-accrual status, uncollected past due accrued interest
income that is considered uncollectible is charged-off against net
investment income. Generally, the accrual of interest income resumes after
all delinquent amounts are paid and management believes all future principal
and interest payments will be collected. The Company records cash receipts
on non-accruing loans in accordance with the loan agreement. The Company
records charge-offs of mortgage loan balances not considered collectible
upon the realization of a credit loss, for commercial and agricultural
mortgage loans typically through foreclosure or after a decision is made to
sell a loan, and for residential mortgage loans, typically after considering
the individual consumer's financial status. The charge-off is recorded in
net investment gains (losses), net of amounts recognized in ACL. Cash
recoveries on principal amounts previously charged-off are generally
reported in net investment gains (losses).
Also included in mortgage loans are residential mortgage loans for which
the FVO was elected, and which are stated at estimated fair value. Changes
in estimated fair value are recognized in net investment income.
Mortgage loans that are designated as held-for-sale, are carried at the
lower of amortized cost or estimated fair value.
Policy Loans
Policy loans are stated at unpaid principal balances. Interest income is
recognized as earned using the contractual interest rate. Generally, accrued
interest is capitalized on the policy's anniversary date. Valuation
allowances are not established for policy loans, as they are fully
collateralized by the cash surrender value of the underlying insurance
policies. Any unpaid principal and accrued interest are deducted from the
cash surrender value or the death benefit prior to settlement of the
insurance policy.
Real Estate
Real estate is stated at cost less accumulated depreciation. Depreciation
is recognized on a straight-line basis, without any provision for salvage
value, over the estimated useful life of the asset (typically up to 55
years). Rental income is recognized on a straight-line basis over the term
of the respective leases. The Company periodically reviews its real estate
for impairment and tests for recoverability whenever events or changes in
circumstances indicate the carrying value may not be recoverable. Properties
whose carrying values are greater than their estimated undiscounted cash
flows are written down to their estimated fair value, which is generally
computed using the present value of expected future cash flows discounted at
a rate commensurate with the underlying risks.
Real estate for which the Company commits to a plan to sell within one
year and actively markets in its current condition for a reasonable price in
comparison to its estimated fair value is classified as held-for-sale and is
not depreciated. Real estate held-for-sale is stated at the lower of
depreciated cost or estimated fair value less expected disposition costs.
Real Estate Joint Ventures and Other Limited Partnership Interests
The Company uses the equity method of accounting or the FVO for 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 but does not hold a controlling
financial interest, including when the Company is not deemed the primary
beneficiary of a VIE. Under the equity method, the Company recognizes in
earnings within net investment
MLIC-18
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
income its share of the investee's earnings. Contributions paid by the
Company increase carrying value and distributions received by the Company
reduce carrying value. The Company generally recognizes its share of the
investee's earnings on a three-month lag in instances where the investee's
financial information is not sufficiently timely or when the investee's
reporting period differs from the Company's reporting period.
The Company accounts for its interest in real estate joint ventures and
other limited partnership interests in which it has virtually no influence
over the investee's operations at estimated fair value. Unrealized gains
(losses), representing changes in estimated fair value of these investments,
are recognized in earnings within net investment gains (losses). Due to the
nature and structure of these investments, they do not meet the
characteristics of an equity security in accordance with applicable
accounting guidance.
The Company consolidates real estate joint ventures and other limited
partnership interests of which it holds a controlling financial interest, or
it is deemed the primary beneficiary of a VIE. Assets of certain of these
consolidated other limited partnership interests and real estate joint
ventures are recorded at estimated fair value. Unrealized gains (losses)
representing changes in estimated fair value are recognized in net
investment income.
The Company routinely evaluates its equity method investments for
impairment. When it is determined an equity method investment has had a loss
in value that is other than temporary, it is impaired. Such an impairment is
charged to net investment gains (losses).
Short-term Investments
Short-term investments include highly liquid securities and other
investments with remaining maturities of one year or less, but greater than
three months, at the time of purchase. Securities included within short-term
investments are stated at estimated fair value, while other investments
included within short-term investments are stated at amortized cost less
ACL, which approximates estimated fair value.
Other Invested Assets
Other invested assets consist principally of the following:
. Freestanding derivatives with positive estimated fair values which are
described in "-- Derivatives" below.
. Funds withheld represent a receivable for amounts contractually withheld
by ceding companies in accordance with reinsurance agreements. The
Company recognizes interest on funds withheld at rates defined by the
terms of the agreement which may be contractually specified or directly
related to the underlying investments.
. Tax credit and renewable energy partnerships which derive a significant
source of investment return in the form of income tax credits or other
tax incentives. Where tax credits are guaranteed by a creditworthy third
party, the investment is accounted for under the effective yield method.
Otherwise, the investment is accounted for under the equity method. See
Note 15.
. Affiliated investments include affiliated loans and affiliated preferred
stock. Affiliated loans are stated at unpaid principal balance, adjusted
for any unamortized premium or discount. Interest income is recognized
using an effective yield method giving effect to amortization of premium
and accretion of discount. Affiliated preferred stock is stated at cost.
Dividends are recognized in net investment income when declared.
. Annuities funding structured settlement claims represent annuities
funding claims assumed by the Company in its capacity as a structured
settlements assignment company. The annuities are stated at their
contract value, which represents the present value of the future periodic
claim payments to be provided. The net investment income recognized
reflects the amortization of discount of the annuity at its implied
effective interest rate. See Note 3.
. FVO Securities are primarily investments in fixed maturity securities
held-for-investment that are managed on a total return basis where the
FVO has been elected, with changes in estimated fair value included in
net investment income.
. Leveraged leases net investment is equal to the minimum lease payment
receivables plus the unguaranteed residual value, less the unearned
income, less ACL and is reported net of non-recourse debt. Income is
recognized by applying
MLIC-19
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
the leveraged lease's estimated rate of return to the net investment in
the lease in those periods in which the net investment at the beginning
of the period is positive. Leveraged leases derive investment returns in
part from their income tax benefit. The Company regularly reviews its
minimum lease payment receivables for credit loss and residual value for
impairments.
. Investments in Federal Home Loan Bank ("FHLB") common stock are carried
at redemption value and are considered restricted investments until
redeemed by the respective regional FHLBs. Dividends are recognized in
net investment income when declared.
. Investment in an operating joint venture that engages in insurance
underwriting activities is accounted for under the equity method.
. Equity securities are reported at their estimated fair value, with
changes in estimated fair value included in net investment gains
(losses). Sales of securities are determined on a specific identification
basis. Dividends are recognized in net investment income when declared.
. Direct financing leases net investment is equal to the minimum lease
payment receivables plus the unguaranteed residual value, less the
unearned income, less ACL. Income is determined by applying the pre-tax
internal rate of return to the investment balance. The Company regularly
reviews its minimum lease payment receivables for credit loss and
residual value for impairments.
Securities Lending Transactions and Repurchase Agreements
The Company accounts for securities lending transactions and repurchase
agreements as financing arrangements and the associated liability is
recorded at the amount of cash received. The securities loaned or sold under
these agreements are included in invested assets. Income and expenses
associated with securities lending transactions and repurchase agreements
are recognized as investment income and investment expense, respectively,
within net investment income.
Securities Lending Transactions
The Company enters into securities lending transactions, whereby
securities are loaned to unaffiliated financial institutions. The Company
obtains collateral at the inception of the loan, usually cash, in an amount
generally equal to 102% of the estimated fair value of the securities
loaned, and maintains it at a level greater than or equal to 100% for the
duration of the loan. Securities loaned under such transactions may be sold
or re-pledged by the transferee. The Company is liable to return to the
counterparties the cash collateral received. Security collateral on deposit
from counterparties in connection with securities lending transactions may
not be sold or re-pledged, unless the counterparty is in default, and is not
reflected on the Company's consolidated financial statements. The Company
monitors the ratio of the collateral held to the estimated fair value of the
securities loaned on a daily basis and additional collateral is obtained as
necessary throughout the duration of the loan.
Repurchase Agreements
The Company participates in short-term repurchase agreements with
unaffiliated financial institutions. Under these agreements, the Company
sells securities and receives cash in an amount generally equal to 85% to
100% of the estimated fair value of the securities sold at the inception of
the transaction, with a simultaneous agreement to repurchase such securities
at a future date or on demand in an amount equal to the cash initially
received plus interest. The Company monitors the ratio of the cash held to
the estimated fair value of the securities sold throughout the duration of
the transaction and additional cash or securities are obtained as necessary.
Securities sold under such transactions may be sold or re-pledged by the
transferee.
Derivatives
Freestanding Derivatives
Freestanding derivatives are carried on the Company's balance sheet either
as assets within other invested assets or as liabilities within other
liabilities at estimated fair value. The Company does not offset the
estimated fair value amounts recognized for derivatives executed with the
same counterparty under the same master netting agreement.
MLIC-20
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
Accruals on derivatives are generally recorded in accrued investment
income or within other liabilities. However, accruals that are not scheduled
to settle within one year are included with the derivative's carrying value
in other invested assets or other liabilities.
If a derivative is not designated as an accounting hedge or its use in
managing risk does not qualify for hedge accounting, changes in the
estimated fair value of the derivative are reported in net derivative
gains (losses) except as follows:
Statement of Operations Presentation: Derivative:
--------------------------------------------------------------------------------------------------------
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
Economic hedges of FVO Securities which are linked to equity
indices
--------------------------------------------------------------------------------------------------------
Hedge Accounting
To qualify for hedge accounting, at the inception of the hedging
relationship, the Company formally documents its risk management objective
and strategy for undertaking the hedging transaction, as well as its
designation of the hedge. Hedge designation and financial statement
presentation of changes in estimated fair value of the hedging derivatives
are as follows:
. Fair value hedge - a hedge of the estimated fair value of a recognized
asset or liability - in the same line item as the earnings effect of the
hedged item. The carrying value of the hedged recognized asset or
liability is adjusted for changes in its estimated fair value due to the
hedged risk.
. Cash flow hedge - a hedge of a forecasted transaction or of the
variability of cash flows to be received or paid related to a recognized
asset or liability - in OCI and reclassified into the statement of
operations when the Company's earnings are affected by the variability in
cash flows of the hedged item.
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. A derivative
designated as a hedging instrument must be assessed as being highly
effective in offsetting the designated risk of the hedged item. Hedge
effectiveness is formally assessed at inception and at least quarterly
throughout the life of the designated hedging relationship. Assessments of
hedge effectiveness are also subject to interpretation and estimation and
different interpretations or estimates may have a material effect on the
amount reported in net income.
The Company discontinues hedge accounting prospectively when: (i) it is
determined that the derivative is no longer highly effective in offsetting
changes in the estimated fair value or cash flows of a hedged item; (ii) the
derivative expires, is sold, terminated, or exercised; (iii) it is no longer
probable that the hedged forecasted transaction will occur; or (iv) the
derivative is de-designated as a hedging instrument.
When hedge accounting is discontinued because it is determined that the
derivative is not highly effective in offsetting changes in the estimated
fair value or cash flows of a hedged item, the derivative continues to be
carried on the balance sheet at its estimated fair value, with changes in
estimated fair value recognized in net derivative gains (losses). The
carrying value of the hedged recognized asset or liability under a fair
value hedge is no longer adjusted for changes in its estimated fair value
due to the hedged risk, and the cumulative adjustment to its carrying value
is amortized into income over the remaining life of the hedged item.
Provided the hedged forecasted transaction is still probable of occurring,
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.
MLIC-21
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
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 of occurring are recognized immediately in net investment gains
(losses).
In all other situations in which hedge accounting is discontinued, the
derivative is carried at its estimated fair value on the balance sheet, with
changes in its estimated fair value recognized in the current period as net
derivative gains (losses).
Embedded Derivatives
The Company issues certain products, which include variable annuities,
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.
Fair Value
Fair value is defined as the price that would be received to sell an asset
or paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly transaction
between market participants on the measurement date. In most cases, the exit
price and the transaction (or entry) price will be the same at initial
recognition.
Subsequent to initial recognition, fair values are based on unadjusted
quoted prices for identical assets or liabilities in active markets that are
readily and regularly obtainable. When such unadjusted quoted prices are not
available, estimated fair values are based on quoted prices in markets that
are not active, quoted prices for similar but not identical assets or
liabilities, or other observable inputs. If these inputs are not available,
or observable inputs are not determinable, unobservable inputs and/or
adjustments to observable inputs requiring significant management judgment
are used to determine the estimated fair value of assets and liabilities.
These unobservable inputs can be based on management's judgment, assumptions
or estimation and may not be observable in market activity. Unobservable
inputs are based on management's assumptions about the inputs market
participants would use in pricing the assets.
Employee Benefit Plans
The Company sponsors a U.S. nonqualified defined benefit pension plan
covering MetLife employees who meet specified eligibility requirements of the
sponsor and its participating affiliates. A December 31 measurement date is
used for the Company's defined benefit pension plan.
MLIC-22
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
The Company recognizes the funded status of its defined benefit pension
plan, measured as the difference between the fair value of plan assets and
the benefit obligation, which is the projected benefit obligation ("PBO") for
pension benefits.
Actuarial gains and losses result from differences between the plan's
actual experience and the assumed experience on PBO during a particular
period and are recorded in accumulated OCI ("AOCI"). To the extent such gains
and losses exceed 10% of the PBO, the excess is amortized into net periodic
benefit costs, generally over the average projected future service years of
the active employees. In addition, prior service costs (credit) are
recognized in AOCI at the time of the amendment and then amortized to net
periodic benefit costs over the average projected future service years of the
active employees.
Net periodic benefit costs are determined using management's estimates and
actuarial assumptions and are comprised of service cost, interest cost,
settlement and curtailment costs, amortization of net actuarial (gains)
losses, and amortization of prior service costs (credit).
The Company sponsors a nonqualified defined contribution plan for all
MetLife employees who qualify. This nonqualified defined contribution plan
provides supplemental benefits in excess of limits applicable to a qualified
plan which is sponsored by an affiliate.
Income Tax
Metropolitan Life Insurance Company and its includable subsidiaries join
with MetLife, Inc. and its includable subsidiaries in filing a consolidated
U.S. life insurance and non-life insurance federal income tax return in
accordance with the provisions of the Internal Revenue Code of 1986, as
amended. Current taxes (and the benefits of tax attributes such as losses)
are allocated to Metropolitan Life Insurance Company and its includable
subsidiaries under the consolidated tax return regulations and a tax sharing
agreement. Under the consolidated tax return regulations, MetLife, Inc. has
elected the "percentage method" (and 100% under such method) of reimbursing
companies for tax attributes, e.g., net operating losses. As a result, 100%
of tax attributes are reimbursed by MetLife, Inc. to the extent that
consolidated federal income tax of the consolidated federal tax return group
is reduced in a year by tax attributes. On an annual basis, each of the
profitable subsidiaries pays to MetLife, Inc. the federal income tax which it
would have paid based upon that year's taxable income. If Metropolitan Life
Insurance Company or its includable subsidiaries have current or prior
deductions and credits (including but not limited to losses) which reduce the
consolidated tax liability of the consolidated federal tax return group, the
deductions and credits are characterized as realized (or realizable) by
Metropolitan Life Insurance Company and its includable subsidiaries when
those tax attributes are realized (or realizable) by the consolidated federal
tax return group, even if Metropolitan Life Insurance Company or its
includable subsidiaries would not have realized the attributes on a
stand-alone basis under a "wait and see" method.
The Company's accounting for income taxes represents management's best
estimate of various events and transactions.
Deferred tax assets and liabilities resulting from temporary differences
between the financial reporting and tax bases of assets and liabilities are
measured at the balance sheet date using enacted tax rates expected to apply
to taxable income in the years the temporary differences are expected to
reverse.
The realization of deferred tax assets depends upon the existence of
sufficient taxable income within the carryback or carryforward periods under
the tax law in the applicable tax jurisdiction. Valuation allowances are
established against deferred tax assets when management determines, based on
available information, that it is more likely than not that deferred income
tax assets will not be realized. Significant judgment is required in
determining whether valuation allowances should be established, as well as
the amount of such allowances. When making such determination, the Company
considers many factors, including:
. the nature, frequency, and amount of cumulative financial reporting
income and losses in recent years;
. the jurisdiction in which the deferred tax asset was generated;
. the length of time that carryforward can be utilized in the various
taxing jurisdictions;
. future taxable income exclusive of reversing temporary differences and
carryforwards;
MLIC-23
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
. future reversals of existing taxable temporary differences;
. taxable income in prior carryback years; and
. tax planning strategies.
The Company may be required to change its provision for income taxes when
estimates used in determining valuation allowances on deferred tax assets
significantly change or when receipt of new information indicates the need
for adjustment in valuation allowances. Additionally, the effect of changes
in tax laws, tax regulations, or interpretations of such laws or regulations,
is recognized in net income tax expense (benefit) in the period of change.
The Company determines whether it is more likely than not that a tax
position will be sustained upon examination by the appropriate taxing
authorities before any part of the benefit can be recorded on the financial
statements. A tax position is measured at the largest amount of benefit that
is greater than 50% likely of being realized upon settlement. Unrecognized
tax benefits due to tax uncertainties that do not meet the threshold are
included within other liabilities and are charged to earnings in the period
that such determination is made.
The Company classifies interest recognized as interest expense and
penalties recognized as a component of income tax expense.
In December 2017, H.R. 1, commonly referred to as the Tax Cuts and Jobs Act
of 2017 ("U.S. Tax Reform") was signed into law. See Note 15 for additional
information on U.S. Tax Reform.
Litigation Contingencies
The Company is a defendant in a large number of litigation matters and is
involved in a number of regulatory investigations. Liabilities are
established when it is probable that a loss has been incurred and the amount
of the loss can be reasonably estimated. Except as otherwise disclosed in
Note 16, legal costs are recognized as incurred. On a quarterly and annual
basis, the Company reviews relevant information with respect to liabilities
for litigation, regulatory investigations and litigation-related
contingencies to be reflected on the Company's consolidated financial
statements.
Other Accounting Policies
Stock-Based Compensation
The Company does not issue any awards payable in its common stock or
options to purchase its common stock. MetLife, Inc. grants certain employees
stock-based compensation awards under various plans subject to vesting
conditions. In accordance with a services agreement with an affiliate, the
Company bears a proportionate share of stock-based compensation expense. The
Company's expense related to stock-based compensation included in other
expenses was $59 million, $44 million and $57 million for the years ended
December 31, 2021, 2020 and 2019, respectively.
Cash and Cash Equivalents
The Company considers highly liquid securities and other investments
purchased with an original or remaining maturity of three months or less at
the date of purchase to be cash equivalents. Securities included within cash
equivalents are stated at estimated fair value, while other investments
included within cash equivalents are stated at amortized cost, which
approximates estimated fair value.
Property, Equipment and Leasehold Improvements
Property, equipment and leasehold improvements, which are included in
other assets, are stated at cost, less accumulated depreciation and
amortization. Depreciation is determined using the straight-line method over
the estimated useful lives of the assets, as appropriate. The estimated life
is generally 40 years for company occupied real estate property, from one to
25 years for leasehold improvements, and from three to seven years for all
other property and equipment. The cost basis of the property, equipment and
leasehold improvements was $852 million and $856 million at December 31,
2021 and 2020, respectively. Accumulated depreciation and amortization of
property, equipment and leasehold improvements was $695 million and
$657 million at December 31, 2021 and 2020, respectively.
MLIC-24
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
Leases
The Company, as lessee, has entered into various lease and sublease
agreements for office space and equipment. At contract inception, the
Company determines that an arrangement contains a lease if the contract
conveys the right to control the use of an identified asset for a period of
time in exchange for consideration. For contracts that contain a lease, the
Company recognizes the ROU asset in other assets and the lease liability in
other liabilities. The Company evaluates whether a ROU asset is impaired
when events or changes in circumstances indicate that its carrying amount
may not be recoverable. Leases with an initial term of 12 months or less are
not recorded on the balance sheet and the associated lease costs are
recorded as an expense on a straight-line basis over the lease term.
ROU assets represent the Company's right to use an underlying asset for
the lease term and lease liabilities represent the Company's obligation to
make lease payments arising from the lease. ROU assets and lease liabilities
are determined using the Company's incremental borrowing rate based upon
information available at commencement date to recognize the present value of
lease payments over the lease term. ROU assets also include lease payments
and excludes lease incentives. Lease terms may include options to extend or
terminate the lease and are included in the lease measurement when it is
reasonably certain that the Company will exercise that option.
The Company has lease agreements with lease and non-lease components. The
Company does not separate lease and non-lease components and accounts for
these items as a single lease component for all asset classes.
The majority of the Company's leases and subleases are operating leases
related to office space. The Company recognizes lease expense for operating
leases on a straight-line basis over the lease term.
Other Revenues
Other revenues primarily include fees related to service contracts from
customers for prepaid legal plans, administrative services-only contracts,
and recordkeeping and related services. Substantially all of the revenue
from the services is recognized over time as the applicable services are
provided or are made available to the customers. The revenue recognized
includes variable consideration to the extent it is probable that a
significant reversal will not occur. In addition to the service fees, other
revenues also include certain stable value fees and reinsurance ceded. These
fees are recognized as earned.
Policyholder Dividends
Policyholder dividends are approved annually by Metropolitan Life
Insurance Company's Board of Directors. The aggregate amount of policyholder
dividends is related to actual interest, mortality, morbidity and expense
experience for the year, as well as management's judgment as to the
appropriate level of statutory surplus to be retained by Metropolitan Life
Insurance Company.
Foreign Currency
Assets, liabilities and operations of foreign affiliates and subsidiaries
are recorded based on the functional currency of each entity. The
determination of the functional currency is made based on the appropriate
economic and management indicators. The local currencies of foreign
operations are the functional currencies. Assets and liabilities of foreign
affiliates and subsidiaries are translated from the functional currency to
U.S. dollars at the exchange rates in effect at each year-end and revenues
and expenses are translated at the average exchange rates during the year.
The resulting translation adjustments are charged or credited directly to
OCI, net of applicable taxes. Gains and losses from foreign currency
transactions, including the effect of re-measurement of monetary assets and
liabilities to the appropriate functional currency, are reported as part of
net investment gains (losses) in the period in which they occur.
Goodwill
Goodwill represents the future economic benefits arising from net assets
acquired in a business combination that are not individually identified and
recognized. Goodwill is calculated as the excess of cost over the estimated
fair value of such net assets acquired, is not amortized, and is tested for
impairment based on a fair value approach at least annually, or more
frequently if events or circumstances indicate that there may be
justification for conducting an interim test. The
MLIC-25
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
Company performs its annual goodwill impairment testing during the third
quarter based upon data as of the close of the second quarter. Goodwill
associated with a business acquisition is not tested for impairment during
the year the business is acquired unless there is a significant identified
impairment event.
The impairment test is performed at the reporting unit level, which is the
operating segment or a business one level below the operating segment, if
discrete financial information is prepared and regularly reviewed by
management at that level. For purposes of goodwill impairment testing, if
the carrying value of a reporting unit exceeds its estimated fair value, an
impairment charge would be recognized for the amount by which the carrying
value exceeds the reporting unit's fair value; however, the loss recognized
would not exceed the total amount of goodwill allocated to that reporting
unit. Additionally, the Company will consider income tax effects from any
tax deductible goodwill on the carrying value of the reporting unit when
measuring the goodwill impairment loss, if applicable.
On an ongoing basis, the Company evaluates potential triggering events
that may affect the estimated fair value of the Company's reporting units to
assess whether any goodwill impairment exists. Deteriorating or adverse
market conditions for certain reporting units may have a significant impact
on the estimated fair value of these reporting units and could result in
future impairments of goodwill.
For the 2021 annual goodwill impairment tests, the Company concluded that
goodwill was not impaired. The goodwill balance was $86 million in the U.S.
segment at both December 31, 2021 and 2020. The goodwill balance was $31
million in the MetLife Holdings segment at both December 31, 2021 and 2020.
Recent Accounting Pronouncements
Changes to GAAP are established by the Financial Accounting Standards Board
("FASB") in the form of accounting standards update ("ASUs") to the FASB
Accounting Standards Codification. The Company considers the applicability and
impact of all ASUs. The following tables provide a description of ASUs recently
issued by the FASB and the impact of their adoption on the Company's
consolidated financial statements.
Adopted Accounting Pronouncements
The table below describes the impacts of the ASUs adopted by the Company,
effective January 1, 2021.
Standard Description Effective Date and Impact on Financial Statements
Method of Adoption
-----------------------------------------------------------------------------------------------------------------------------
ASU 2020-04, The guidance provides optional Effective for contract The guidance has reduced the
Reference Rate expedients and exceptions for applying modifications made operational and financial impacts of
Reform (Topic 848): GAAP to contracts, hedging between March 12, contract modifications that replace a
Facilitation of the relationships and other transactions 2020 and reference rate, such as London
Effects of Reference affected by reference rate reform if December 31, 2022. Interbank Offered Rate ("LIBOR"),
Rate Reform on certain criteria are met. The affected by reference rate reform.
Financial Reporting; expedients and exceptions provided by Contract modifications for invested
as clarified and the amendments do not apply to contract assets and derivative instruments
amended by ASU modifications made and hedging have occurred during 2021 and are
2021-01, Reference relationships entered into or evaluated expected to continue into 2022.
Rate Reform (Topic after December 31, 2022, with certain Based on actions taken to date, the
848): Scope exceptions. ASU 2021-01 amends the adoption of the guidance has not had
scope of the recent reference rate a material impact on the Company's
reform guidance. New optional consolidated financial statements.
expedients allow derivative instruments The Company does not expect the
impacted by changes in the interest adoption of this guidance to have a
rate used for margining, discounting, material ongoing impact and will
or contract price alignment to qualify continue to evaluate the impacts of
for certain optional relief. reference rate reform on contract
modifications and hedging
relationships through December 31,
2022.
MLIC-26
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
Standard Description Effective Date and Impact on Financial Statements
Method of Adoption
---------------------------------------------------------------------------------------------------------------------------
ASU 2019-12, The guidance simplifies the accounting January 1, 2021. The The adoption of the guidance did not
Income Taxes (Topic for income taxes by removing certain Company adopted, have a material impact on the
740): Simplifying the exceptions to the tax accounting using a prospective Company's consolidated financial
Accounting for guidance and providing clarification to approach. statements.
Income Taxes other specific tax accounting guidance
to eliminate variations in practice.
Specifically, it removes the exceptions
related to the a) incremental approach
for intraperiod tax allocation when
there is a loss from continuing
operations and income or a gain from
other items, b) recognition of a
deferred tax liability when foreign
investment ownership changes from
equity method investment to
consolidated subsidiary and vice versa
and c) use of interim period tax
accounting for year-to-date losses that
exceed anticipated losses. The guidance
also simplifies the application of the
income tax guidance for franchise taxes
that are partially based on income and
the accounting for tax law changes
during interim periods, clarifies the
accounting for transactions that result
in a step-up in tax basis of goodwill,
provides for the option to elect
allocation of consolidated income taxes
to entities disregarded by taxing
authorities for their stand-alone
reporting, and requires that an entity
reflect the effect of an enacted change
in tax laws or rates in the annual
effective tax rate computation in the
interim period that includes the
enactment date.
---------------------------------------------------------------------------------------------------------------------------
Future Adoption of Accounting Pronouncements
ASUs not listed below were assessed and either determined to be not
applicable or are not expected to have a material impact on the Company's
consolidated financial statements or disclosures. ASUs issued but not yet
adopted as of December 31, 2021 that are currently being assessed and may or
may not have a material impact on the Company's consolidated financial
statements or disclosures are summarized in the table below.
Standard Description Effective Date and Impact on Financial Statements
Method of Adoption
-----------------------------------------------------------------------------------------------------------------------------
ASU 2018-12, The guidance (i) prescribes the January 1, 2023, to be The Company's implementation
Financial Services-- discount rate to be used in measuring applied retrospectively efforts and the evaluation of the
Insurance (Topic the liability for future policy to January 1, 2021 impacts of the guidance continue to
944): Targeted benefits for traditional and limited (with early adoption progress. Given the nature and extent
Improvements to the payment long-duration contracts, and permitted). of the required changes to a
Accounting for Long- requires assumptions for those significant portion of the Company's
Duration Contracts, liability valuations to be updated operations, the adoption of this
as amended by ASU after contract inception, (ii) requires guidance is expected to have a
2019-09, Financial more market-based product guarantees on material impact on its financial
Services--Insurance certain separate account and other position, results of operations, and
(Topic 944): account balance long-duration contracts disclosures, as well as systems,
Effective Date, as to be accounted for at fair value, processes, and controls.
amended by ASU (iii) simplifies the amortization of The Company expects to adopt the
2020-11, Financial DAC for virtually all long-duration guidance effective January 1, 2023.
Services--Insurance contracts, and (iv) introduces certain The modified retrospective approach
(Topic 944): financial statement presentation will be used, except in regard to
Effective Date and requirements, as well as significant market risk benefits where the
Early Application additional quantitative and qualitative Company will use the full
disclosures. The amendments in ASU retrospective approach.
2019-09 defer the effective date of ASU The Company has created a
2018-12 to January 1, 2022 for all governance framework and is
entities, and the amendments in ASU managing a detailed implementation
2020-11 further defer the effective plan to support timely application of
date of ASU 2018-12 for an additional the guidance. The Company has
year to January 1, 2023 for all made progress and continues to
entities. 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.
MLIC-27
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
Standard Description Effective Date and Impact on Financial Statements
Method of Adoption
---------------------------------------------------------------------------------------------------------------------------------
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 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 consolidated financial
statements.
---------------------------------------------------------------------------------------------------------------------------------
ASU 2021-10, The guidance requires entities to Annual periods The Company is currently evaluating the
Government provide annual disclosures about beginning January 1, impact of the guidance on its annual
Assistance (Topic transactions with a government that 2022, to be applied disclosures to be included in its 2022
832): Disclosures by are accounted for by applying a grant prospectively (with consolidated financial statements.
Business Entities or contribution accounting model by early adoption
about Government analogy and can include tax credits permitted).
Assistance 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.
---------------------------------------------------------------------------------------------------------------------------------
ASU 2021-08, The guidance indicates how to January 1, 2023, to be The Company is currently evaluating
Business determine whether a contract liability applied prospectively the impact of the guidance on its
Combinations (Topic is recognized by the acquirer in a (with early adoption consolidated financial statements.
805): Accounting for business combination and provides permitted).
Contract Assets and specific guidance on how to recognize
Contract Liabilities and measure acquired contract assets
from Contracts with and contract liabilities from revenue
Customers contracts in a business combination.
MLIC-28
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
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.
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 ("RIS").
. The Group Benefits business offers products such as term, variable and
universal life insurance, dental, group and individual disability and
accident & health insurance.
. The RIS business offers a broad range of life and annuity-based insurance
and investment products, including stable value and pension risk transfer
products, institutional income annuities, structured settlements, benefit
funding solutions and capital markets investment products.
MetLife Holdings
The MetLife Holdings segment consists of operations relating to products and
businesses that the Company no longer actively markets. These include variable,
universal, term and whole life insurance, variable, fixed and index-linked
annuities, and long-term care 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
enterprise-wide strategic initiative restructuring charges), interest expense
related to the majority of the Company's outstanding debt, expenses associated
with certain legal proceedings and income tax audit issues, and the elimination
of intersegment amounts (which generally relate to affiliated reinsurance and
intersegment loans, bearing interest rates commensurate with related
borrowings).
Financial Measures and Segment Accounting Policies
Adjusted earnings is used by management to evaluate performance and allocate
resources. Consistent with GAAP guidance for segment reporting, adjusted
earnings is also the Company's GAAP measure of segment performance and is
reported below. Adjusted earnings should not be viewed as a substitute for net
income (loss). The Company believes the presentation of adjusted earnings, as
the Company measures it for management purposes, enhances the understanding of
its performance by highlighting the results of operations and the underlying
profitability drivers of the business.
Adjusted earnings is defined as adjusted revenues less adjusted expenses, net
of income tax.
The financial measures of adjusted revenues and adjusted 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 include the net impact of
transactions with exited businesses that have been eliminated in consolidation
under GAAP and costs relating to businesses that have been or will be sold or
exited by MLIC that do not meet the criteria to be included in results of
discontinued operations under GAAP. Adjusted 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 adjusted 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 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
MLIC-29
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
2. Segment Information (continued)
accounting treatment, (ii) excludes post-tax adjusted earnings adjustments
relating to insurance joint ventures accounted for under the equity
method, (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 adjusted 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), (iii) amounts associated with periodic
crediting rate adjustments based on the total return of a contractually
referenced pool of assets and other pass-through adjustments,
(iv) benefits and hedging costs related to GMIBs ("GMIB costs") and
(v) 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: (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 the years ended
December 31, 2021, 2020 and 2019 and at December 31, 2021 and 2020. The segment
accounting policies are the same as those used to prepare the Company's
consolidated financial statements, except for adjusted earnings adjustments as
defined above. In addition, segment accounting policies include the method of
capital allocation described below.
Economic capital is an internally developed risk capital model, the purpose
of which is to measure the risk in the business and to provide a basis upon
which capital is deployed. The economic capital model accounts for the unique
and specific nature of the risks inherent in MetLife's and the Company's
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.
Segment net investment income is credited or charged based on the level of
allocated equity; however, changes in allocated equity do not impact the
Company's consolidated net investment income, net income (loss) or adjusted
earnings.
Net investment income is based upon the actual results of each segment's
specifically identifiable investment portfolios adjusted for allocated equity.
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.
MLIC-30
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
2. Segment Information (continued)
MetLife Corporate Total
Year Ended December 31, 2021 U.S. Holdings & Other Total Adjustments Consolidated
--------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
(In millions)
Revenues
Premiums................................ $ 23,466 $ 2,725 $ -- $ 26,191 $ -- $ 26,191
Universal life and investment-type
product policy fees.................... 1,101 881 -- 1,982 80 2,062
Net investment income (1)............... 7,249 5,833 (17) 13,065 (579) 12,486
Other revenues.......................... 861 243 512 1,616 -- 1,616
Net investment gains (losses)........... -- -- -- -- 652 652
Net derivative gains (losses)........... -- -- -- -- (964) (964)
------------ ------------ ------------ ------------ ------------ ------------
Total revenues......................... 32,677 9,682 495 42,854 (811) 42,043
------------ ------------ ------------ ------------ ------------ ------------
Expenses
Policyholder benefits and claims and
policyholder dividends................. 24,504 5,281 -- 29,785 366 30,151
Interest credited to policyholder
account balances....................... 1,362 666 1 2,029 (2) 2,027
Capitalization of DAC................... (59) 1 (6) (64) -- (64)
Amortization of DAC and VOBA............ 56 171 -- 227 32 259
Interest expense on debt................ 6 5 85 96 -- 96
Other expenses.......................... 3,266 839 1,230 5,335 (9) 5,326
------------ ------------ ------------ ------------ ------------ ------------
Total expenses......................... 29,135 6,963 1,310 37,408 387 37,795
------------ ------------ ------------ ------------ ------------ ------------
Provision for income tax expense
(benefit).............................. 738 551 (518) 771 (241) 530
------------ ------------ ------------ ------------ ------------
Adjusted earnings...................... $ 2,804 $ 2,168 $ (297) 4,675
============ ============ ============
Adjustments to:
Total revenues.......................... (811)
Total expenses.......................... (387)
Provision for income tax (expense)
benefit................................ 241
------------
Net income (loss)...................... $ 3,718 $ 3,718
============ ============
MetLife Corporate
At December 31, 2021 U.S. Holdings & Other Total
--------------------------------------- ------------- ------------- ------------ -------------
(In millions)
Total assets............................ $ 256,381 $ 161,614 $ 28,562 $ 446,557
Separate account assets................. $ 77,130 $ 46,721 $ -- $ 123,851
Separate account liabilities............ $ 77,130 $ 46,721 $ -- $ 123,851
--------
(1) Net investment income from equity method investments represents 22% and 27%
of segment net investment income for the U.S. and MetLife Holdings
segments, respectively.
MLIC-31
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
2. Segment Information (continued)
MetLife Corporate Total
For the Year Ended December 31, 2020 U.S. Holdings & Other Total Adjustments Consolidated
------------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
(In millions)
Revenues
Premiums................................... $ 17,778 $ 2,962 $ 1 $ 20,741 $ -- $ 20,741
Universal life and investment-type product
policy fees............................... 1,044 868 -- 1,912 84 1,996
Net investment income (1).................. 6,348 4,616 (136) 10,828 (578) 10,250
Other revenues............................. 857 224 580 1,661 -- 1,661
Net investment gains (losses).............. -- -- -- -- (73) (73)
Net derivative gains (losses).............. -- -- -- -- 738 738
------------ ------------ ------------ ------------ ------------ ------------
Total revenues........................... 26,027 8,670 445 35,142 171 35,313
------------ ------------ ------------ ------------ ------------ ------------
Expenses
Policyholder benefits and claims and
policyholder dividends.................... 17,821 5,669 -- 23,490 485 23,975
Interest credited to policyholder account
balances.................................. 1,569 687 -- 2,256 (9) 2,247
Capitalization of DAC...................... (49) (2) -- (51) -- (51)
Amortization of DAC and VOBA............... 56 290 -- 346 60 406
Interest expense on debt................... 7 6 86 99 -- 99
Other expenses............................. 3,085 801 666 4,552 7 4,559
------------ ------------ ------------ ------------ ------------ ------------
Total expenses........................... 22,489 7,451 752 30,692 543 31,235
------------ ------------ ------------ ------------ ------------ ------------
Provision for income tax expense
(benefit)................................. 752 236 (376) 612 (78) 534
------------ ------------ ------------ ------------ ------------
Adjusted earnings........................ $ 2,786 $ 983 $ 69 3,838
============ ============ ============
Adjustments to:
Total revenues............................. 171
Total expenses............................. (543)
Provision for income tax (expense)
benefit................................... 78
------------
Net income (loss)........................ $ 3,544 $ 3,544
============ ============
MetLife Corporate
At December 31, 2020 U.S. Holdings & Other Total
--------------------------------------- ------------- ------------- ------------ -------------
(In millions)
Total assets............................ $ 262,478 $ 164,956 $ 30,173 $ 457,607
Separate account assets................. $ 81,866 $ 46,780 $ -- $ 128,646
Separate account liabilities............ $ 81,866 $ 46,780 $ -- $ 128,646
--------
(1) Net investment income from equity method investments represents 5% and 6%
of segment net investment income for the U.S. and MetLife Holdings
segments, respectively.
MLIC-32
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
2. Segment Information (continued)
MetLife Corporate Total
For the Year Ended December 31, 2019 U.S. Holdings & Other Total Adjustments Consolidated
------------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
(In millions)
Revenues
Premiums................................... $ 18,510 $ 3,098 $ -- $ 21,608 $ -- $ 21,608
Universal life and investment-type product
policy fees............................... 1,037 912 -- 1,949 88 2,037
Net investment income (1).................. 6,647 4,688 (73) 11,262 (289) 10,973
Other revenues............................. 815 220 538 1,573 -- 1,573
Net investment gains (losses).............. -- -- -- -- 346 346
Net derivative gains (losses).............. -- -- -- -- (288) (288)
------------ ------------ ------------ ------------ ------------ ------------
Total revenues........................... 27,009 8,918 465 36,392 (143) 36,249
------------ ------------ ------------ ------------ ------------ ------------
Expenses
Policyholder benefits and claims and
policyholder dividends.................... 18,963 5,920 -- 24,883 206 25,089
Interest credited to policyholder account
balances.................................. 1,925 718 -- 2,643 (19) 2,624
Capitalization of DAC...................... (53) 10 -- (43) -- (43)
Amortization of DAC and VOBA............... 55 220 -- 275 (36) 239
Interest expense on debt................... 10 8 87 105 -- 105
Other expenses............................. 2,947 844 877 4,668 7 4,675
------------ ------------ ------------ ------------ ------------ ------------
Total expenses........................... 23,847 7,720 964 32,531 158 32,689
------------ ------------ ------------ ------------ ------------ ------------
Provision for income tax expense
(benefit)................................. 656 232 (677) 211 (63) 148
------------ ------------ ------------ ------------ ------------
Adjusted earnings........................ $ 2,506 $ 966 $ 178 3,650
============ ============ ============
Adjustments to:
Total revenues............................. (143)
Total expenses............................. (158)
Provision for income tax (expense)
benefit................................... 63
------------
Net income (loss)........................ $ 3,412 $ 3,412
============ ============
--------
(1) Net investment income from equity method investments represents 5% of
segment net investment income for both the U.S. and MetLife Holdings
segments.
The following table presents total premiums, universal life and
investment-type product policy fees and other revenues by major product groups
of the Company's segments, as well as Corporate & Other:
Years Ended December 31,
--------------------------------------
2021 2020 2019
------------ ------------ ------------
(In millions)
Life insurance............................... $ 15,432 $ 14,018 $ 13,413
Accident & health insurance.................. 9,493 8,650 8,556
Annuities.................................... 4,541 1,352 2,917
Other........................................ 403 378 332
------------ ------------ ------------
Total....................................... $ 29,869 $ 24,398 $ 25,218
============ ============ ============
Substantially all of the Company's consolidated premiums, universal life and
investment-type product policy fees and other revenues originated in the U.S.
Revenues derived from one U.S. segment customer were $3.9 billion, $3.3
billion and $3.0 billion for the years ended December 31, 2021, 2020 and 2019,
respectively, which represented 13%, 14% and 12% of the consolidated premiums,
universal life and investment-type product policy fees and other revenues,
respectively. Revenues derived from any other customer did not exceed 10% of
consolidated premiums, universal life and investment-type product policy fees
and other revenues for the years ended December 31, 2021, 2020 and 2019.
MLIC-33
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
3. Insurance
Insurance Liabilities
Insurance liabilities, including affiliated insurance liabilities on
reinsurance assumed and ceded, are comprised of future policy benefits,
policyholder account balances and other policy-related balances. Information
regarding insurance liabilities by segment, as well as Corporate & Other, was
as follows at:
December 31,
-----------------
2021 2020
-------- --------
(In millions)
U.S............... $145,463 $147,557
MetLife Holdings.. 88,991 90,259
Corporate & Other. 373 170
-------- --------
Total........... $234,827 $237,986
======== ========
See Note 5 for discussion of affiliated reinsurance liabilities included in
the table above.
Future policy benefits are measured as follows:
--------------------------------------------------------------------
Product Type: Measurement Assumptions:
--------------------------------------------------------------------
Participating life Aggregate of (i) net level premium
reserves for death and endowment
policy benefits (calculated based
upon the non-forfeiture interest
rate, ranging from 3% to 7%, and
mortality rates guaranteed in
calculating the cash surrender values
described in such contracts); and
(ii) the liability for terminal
dividends.
--------------------------------------------------------------------
Nonparticipating life Aggregate of the present value of
future expected benefit payments and
related expenses less the present
value of future expected net
premiums. Assumptions as to mortality
and persistency are based upon the
Company's experience when the basis
of the liability is established.
Interest rate assumptions for the
aggregate future policy benefit
liabilities range from 2% to 11%.
--------------------------------------------------------------------
Individual and group Present value of future expected
traditional fixed annuities payments. Interest rate assumptions
after annuitization used in establishing such liabilities
range from 1% to 11%.
--------------------------------------------------------------------
Non-medical health insurance The net level premium method and
assumptions as to future morbidity,
withdrawals and interest, which
provide a margin for adverse
deviation. Interest rate assumptions
used in establishing such liabilities
range from 1% to 7%.
--------------------------------------------------------------------
Disabled lives Present value of benefits method and
experience assumptions as to claim
terminations, expenses and interest.
Interest rate assumptions used in
establishing such liabilities range
from 2% to 8%.
--------------------------------------------------------------------
Participating business represented 3% of the Company's life insurance
in-force at both December 31, 2021 and 2020. Participating policies represented
14%, 17% and 19% of gross traditional life insurance premiums for the years
ended December 31, 2021, 2020 and 2019, respectively.
Policyholder account balances are equal to: (i) policy account values, which
consist of an accumulation of gross premium payments; and (ii) credited
interest, ranging from less than 1% to 8%, less expenses, mortality charges and
withdrawals.
MLIC-34
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
3. Insurance (continued)
Guarantees
The Company issues directly and assumes through reinsurance variable annuity
products with guaranteed minimum benefits. GMABs, the non-life contingent
portion of GMWBs and certain non-life contingent portions of GMIBs are
accounted for as embedded derivatives in policyholder account balances and are
further discussed in Note 8. Guarantees accounted for as insurance liabilities
include:
----------------------------------------------------------------------------------------------------
Guarantee: Measurement Assumptions:
----------------------------------------------------------------------------------------------------
GMDBs . A return of purchase payment upon . Present value of expected death benefits in excess
death even if the account value is of the projected account balance recognizing the
reduced to zero. excess ratably over the accumulation period
based on the present value of total expected
assessments.
. An enhanced death benefit may be . Assumptions are consistent with those used for
available for an additional fee. amortizing DAC, and are thus subject to the
same variability and risk.
. Investment performance and volatility assumptions
are consistent with the historical experience of
the appropriate underlying equity index, such as
the S&P 500 Index.
. Benefit assumptions are based on the average
benefits payable over a range of scenarios.
----------------------------------------------------------------------------------------------------
GMIBs . After a specified period of time . Present value of expected income benefits in excess
determined at the time of issuance of the projected account balance at any future
of the variable annuity contract, date of annuitization and recognizing the excess
a minimum accumulation of purchase ratably over the accumulation period based on
payments, even if the account present value of total expected assessments.
value is reduced to zero, that can
be annuitized to receive a monthly
income stream that is not less
than a specified amount.
. Certain contracts also provide for . Assumptions are consistent with those used for
a guaranteed lump sum return of estimating GMDB liabilities.
purchase premium in lieu of the
annuitization benefit.
. Calculation incorporates an assumption for the
percentage of the potential annuitizations that
may be elected by the contractholder.
----------------------------------------------------------------------------------------------------
GMWBs. . A return of purchase payment via . Expected value of the life contingent payments and
partial withdrawals, even if the expected assessments using assumptions
account value is reduced to zero, consistent with those used for estimating the
provided that cumulative GMDB liabilities.
withdrawals in a contract year do
not exceed a certain limit.
. Certain contracts include
guaranteed withdrawals that are
life contingent.
----------------------------------------------------------------------------------------------------
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.
MLIC-35
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
3. Insurance (continued)
Information regarding the liabilities for guarantees (excluding base policy
liabilities and embedded derivatives) relating to annuity and universal and
variable life contracts was as follows:
Universal and Variable
Annuity Contracts Life Contracts
---------------------------- ----------------------------
GMDBs and Secondary Paid-Up
GMWBs GMIBs Guarantees Guarantees Total
------------- ------------- ------------- ------------- -------------
(In millions)
Direct:
Balance at January 1, 2019... $ 317 $ 738 $ 820 $ 114 $ 1,989
Incurred guaranteed benefits. 57 19 255 52 383
Paid guaranteed benefits..... (13) -- -- -- (13)
------------- ------------- ------------- ------------- -------------
Balance at December 31, 2019. 361 757 1,075 166 2,359
Incurred guaranteed benefits. 144 206 320 (12) 658
Paid guaranteed benefits..... (12) (4) (44) (14) (74)
------------- ------------- ------------- ------------- -------------
Balance at December 31, 2020. 493 959 1,351 140 2,943
Incurred guaranteed benefits. 123 82 164 16 385
Paid guaranteed benefits..... (14) (7) (52) (15) (88)
------------- ------------- ------------- ------------- -------------
Balance at December 31, 2021. $ 602 $ 1,034 $ 1,463 $ 141 $ 3,240
============= ============= ============= ============= =============
Ceded:
Balance at January 1, 2019... $ -- $ -- $ 301 $ 80 $ 381
Incurred guaranteed benefits. -- -- 95 15 110
Paid guaranteed benefits..... -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Balance at December 31, 2019. -- -- 396 95 491
Incurred guaranteed benefits. -- -- 93 13 106
Paid guaranteed benefits..... -- -- (20) (9) (29)
------------- ------------- ------------- ------------- -------------
Balance at December 31, 2020. -- -- 469 99 568
Incurred guaranteed benefits. -- -- 63 10 73
Paid guaranteed benefits..... -- -- (32) (10) (42)
------------- ------------- ------------- ------------- -------------
Balance at December 31, 2021. $ -- $ -- $ 500 $ 99 $ 599
============= ============= ============= ============= =============
Net:
Balance at January 1, 2019... $ 317 $ 738 $ 519 $ 34 $ 1,608
Incurred guaranteed benefits. 57 19 160 37 273
Paid guaranteed benefits..... (13) -- -- -- (13)
------------- ------------- ------------- ------------- -------------
Balance at December 31, 2019. 361 757 679 71 1,868
Incurred guaranteed benefits. 144 206 227 (25) 552
Paid guaranteed benefits..... (12) (4) (24) (5) (45)
------------- ------------- ------------- ------------- -------------
Balance at December 31, 2020. 493 959 882 41 2,375
Incurred guaranteed benefits. 123 82 101 6 312
Paid guaranteed benefits..... (14) (7) (20) (5) (46)
------------- ------------- ------------- ------------- -------------
Balance at December 31, 2021. $ 602 $ 1,034 $ 963 $ 42 $ 2,641
============= ============= ============= ============= =============
MLIC-36
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (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:
December 31,
-----------------------------------------------------------------------
2021 2020
--------------------------------- ---------------------------------
In the At In the At
Event of Death Annuitization Event of Death Annuitization
---------------- --------------- ---------------- ---------------
(Dollars in millions)
Annuity Contracts:
Variable Annuity Guarantees:
Total account value (1), (2).......... $ 48,868 $ 20,140 $ 50,047 $ 21,229
Separate account value (1)............ $ 39,882 $ 19,347 $ 40,583 $ 20,368
Net amount at risk.................... $ 1,160 (3) $ 461 (4) $ 1,178 (3) $ 552 (4)
Average attained age of contractholders. 69 years 66 years 68 years 67 years
Other Annuity Guarantees:
Total account value (1), (2).......... N/A $ 135 N/A $ 142
Net amount at risk.................... N/A $ 70 (5) N/A $ 74 (5)
Average attained age of contractholders. N/A 55 years N/A 55 years
December 31,
-----------------------------------------------------------------------
2021 2020
--------------------------------- ---------------------------------
Secondary Paid-Up Secondary Paid-Up
Guarantees Guarantees Guarantees Guarantees
---------------- --------------- ---------------- ---------------
(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (2).......... $ 5,935 $ 826 $ 5,607 $ 861
Net amount at risk (6)................ $ 37,482 $ 5,181 $ 39,134 $ 5,525
Average attained age of policyholders... 59 years 65 years 58 years 65 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.
(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.
MLIC-37
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
3. Insurance (continued)
Guarantees -- Separate Accounts
Account balances of contracts with guarantees were invested in separate
account asset classes as follows at:
December 31,
-----------------------------
2021 2020
-------------- --------------
(In millions)
Fund Groupings:
Equity.......... $ 24,519 $ 23,891
Balanced........ 16,228 16,992
Bond............ 2,874 3,052
Money Market.... 41 52
-------------- --------------
Total......... $ 43,662 $ 43,987
============== ==============
Obligations Assumed Under Structured Settlement Assignments
The Company assumed structured settlement claim obligations as an assignment
company. These liabilities are measured at the present value of the future
periodic claims to be provided and reported as other policy-related balances.
The Company received a fee for assuming these claim obligations and, as the
assignee of the claim, is legally obligated to ensure periodic payments are
made to the claimant. The Company purchased annuities to fund these future
periodic payment claim obligations and designates payments to be made directly
to the claimant by the annuity writer. These annuities funding structured
settlement claims are recorded as an investment. The Company has recorded
unpaid claim obligations and annuity contracts of equal amounts of $1.3 billion
at both December 31, 2021 and 2020. See Note 1.
Obligations Under Funding Agreements
The Company issues fixed and floating rate funding agreements, which are
denominated in either U.S. dollars or foreign currencies, to certain
unconsolidated special purpose entities that have issued either debt securities
or commercial paper for which payment of interest and principal is secured by
such funding agreements. For the years ended December 31, 2021, 2020 and 2019,
the Company issued $39.5 billion, $39.3 billion and $37.3 billion,
respectively, and repaid $41.2 billion, $36.7 billion and $36.4 billion,
respectively, of such funding agreements. At December 31, 2021 and 2020,
liabilities for funding agreements outstanding, which are included in
policyholder account balances, were $37.2 billion and $38.8 billion,
respectively.
Metropolitan Life Insurance Company is a member of the FHLB of New York.
Holdings of common stock of the FHLB of New York, included in other invested
assets, were $718 million and $765 million at December 31, 2021 and 2020,
respectively.
The Company has also entered into funding agreements with the FHLB of New
York and a subsidiary of the Federal Agricultural Mortgage Corporation, a
federally chartered instrumentality of the U.S. ("Farmer Mac"). The liability
for such funding agreements is included in policyholder account balances.
Information related to such funding agreements was as follows at:
Liability Collateral
------------------------- -----------------------------
December 31,
-------------------------------------------------------
2021 2020 2021 2020
------------ ------------ ------------ ------------
(In millions)
FHLB of New York (1). $ 14,745 $ 15,245 $ 16,645 (2) $ 17,258 (2)
Farmer Mac (3)....... $ 2,050 $ 2,375 $ 2,159 $ 2,450
--------
(1) Represents funding agreements issued to the FHLB of New York in exchange
for cash and for which the FHLB of New York has been granted a lien on
certain assets, some of which are in the custody of the FHLB of New York,
including residential mortgage-backed securities ("RMBS"), to collateralize
obligations under such funding agreements. The Company is permitted to
withdraw any portion of the collateral in the custody of the FHLB of
New York as long as
MLIC-38
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
3. Insurance (continued)
there is no event of default and the remaining qualified collateral is
sufficient to satisfy the collateral maintenance level. Upon any event of
default by the Company, the FHLB of New York's recovery on the collateral
is limited to the amount of the Company's liability to the FHLB of New York.
(2) Advances are collateralized by mortgage-backed securities. The amount of
collateral presented is at estimated fair value.
(3) Represents funding agreements issued to a subsidiary of Farmer Mac. The
obligations under these funding agreements are secured by a pledge of
certain eligible agricultural mortgage loans and may, under certain
circumstances, be secured by other qualified collateral. The amount of
collateral presented is at carrying value.
Liabilities for Unpaid Claims and Claim Expenses
The following is information about incurred and paid claims development by
segment at December 31, 2021. Such amounts are presented net of reinsurance,
and are not discounted. The tables present claims development and cumulative
claim payments by incurral year. The development tables are only presented for
significant short-duration product liabilities within each segment. The
information about incurred and paid claims development prior to 2021 is
presented as supplementary information.
U.S.
Group Life - Term
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2021
------------------------------------------------------------------------------------------ ---------------------------
For the Years Ended December 31,
------------------------------------------------------------------------------------------ Total IBNR
(Unaudited) Liabilities Plus
-------------------------------------------------------------------------------- Expected Cumulative
Development on Number of
Incurral Reported Reported
Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Claims Claims
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------- ---------------- ----------
(Dollars in millions)
2012.. $ 6,503 $ 6,579 $ 6,569 $ 6,546 $ 6,568 $ 6,569 $ 6,569 $ 6,572 $ 6,574 $ 6,575 $ 1 210,236
2013.. 6,637 6,713 6,719 6,720 6,730 6,720 6,723 6,724 6,726 2 212,892
2014.. 6,986 6,919 6,913 6,910 6,914 6,919 6,920 6,918 1 215,694
2015.. 7,040 7,015 7,014 7,021 7,024 7,025 7,026 2 218,188
2016.. 7,125 7,085 7,095 7,104 7,105 7,104 3 219,581
2017.. 7,432 7,418 7,425 7,427 7,428 6 260,807
2018.. 7,757 7,655 7,646 7,650 10 246,519
2019.. 7,935 7,900 7,907 13 246,245
2020.. 8,913 9,367 27 281,696
2021.. 10,555 1,029 221,955
---------
Total.................................................................................. 77,256
Cumulative paid claims and paid allocated claim adjustment expenses, net of
reinsurance............................................................................. (74,255)
All outstanding liabilities for incurral years prior to 2012, net of reinsurance......... 21
---------
Total unpaid claims and claim adjustment expenses, net of reinsurance.................. $ 3,022
=========
Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
-------------------------------------------------------------------------------------------
For the Years Ended December 31,
-------------------------------------------------------------------------------------------
(Unaudited)
--------------------------------------------------------------------------------
Incurral Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
------------- -------- -------- -------- -------- -------- -------- -------- -------- -------- ----------
(In millions)
2012...... $ 5,132 $ 6,472 $ 6,518 $ 6,532 $ 6,558 $ 6,565 $ 6,566 $ 6,569 $ 6,572 $ 6,572
2013...... 5,216 6,614 6,664 6,678 6,711 6,715 6,720 6,721 6,723
2014...... 5,428 6,809 6,858 6,869 6,902 6,912 6,915 6,916
2015...... 5,524 6,913 6,958 6,974 7,008 7,018 7,022
2016...... 5,582 6,980 7,034 7,053 7,086 7,096
2017...... 5,761 7,292 7,355 7,374 7,400
2018...... 6,008 7,521 7,578 7,595
2019...... 6,178 7,756 7,820
2020...... 6,862 9,103
2021...... 8,008
----------
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 74,255
==========
MLIC-39
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
3. Insurance (continued)
Average Annual Percentage Payout
The following is supplementary information about average historical claims
duration at December 31, 2021:
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
-----------------------------------------------------------------------------
Years............. 1 2 3 4 5 6 7 8 9 10
Group Life - Term. 77.5% 20.5% 0.7% 0.2% 0.4% 0.1% --% --% --% --%
Group Long-Term Disability
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2021
--------------------------------------------------------------------------------- ---------------------------
For the Years Ended December 31, Total IBNR
--------------------------------------------------------------------------------- Liabilities Plus
(Unaudited) Expected Cumulative
----------------------------------------------------------------------- Development on Number of
Incurral Reported Reported
Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Claims Claims
-------- ------- ------- ------- ------- ------- ------- ------- ------- ------- --------- ---------------- ----------
(Dollars in millions)
2012......... $ 966 $ 979 $ 980 $ 1,014 $ 1,034 $ 1,037 $ 1,021 $ 1,015 $ 1,011 $ 1,007 $ -- 20,086
2013......... 1,008 1,027 1,032 1,049 1,070 1,069 1,044 1,032 1,025 -- 21,139
2014......... 1,076 1,077 1,079 1,101 1,109 1,098 1,097 1,081 -- 22,853
2015......... 1,082 1,105 1,093 1,100 1,087 1,081 1,067 -- 21,213
2016......... 1,131 1,139 1,159 1,162 1,139 1,124 -- 17,971
2017......... 1,244 1,202 1,203 1,195 1,165 -- 16,324
2018......... 1,240 1,175 1,163 1,147 -- 15,172
2019......... 1,277 1,212 1,169 7 15,318
2020......... 1,253 1,223 30 15,381
2021......... 1,552 687 10,503
---------
Total................................................................................ 11,560
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (5,943)
All outstanding liabilities for incurral years prior to 2012, net of reinsurance....... 1,559
---------
Total unpaid claims and claim adjustment expenses, net of reinsurance................ $ 7,176
=========
Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
--------------------------------------------------------------------------------------------
For the Years Ended December 31,
--------------------------------------------------------------------------------------------
(Unaudited)
--------------------------------------------------------------------------------
Incurral Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
------------- -------- -------- -------- -------- -------- -------- -------- -------- -------- -----------
(In millions)
2012...... $ 43 $ 229 $ 365 $ 453 $ 524 $ 591 $ 648 $ 694 $ 730 $ 766
2013...... 43 234 382 475 551 622 676 722 764
2014...... 51 266 428 526 609 677 732 778
2015...... 50 264 427 524 601 665 718
2016...... 49 267 433 548 628 696
2017...... 56 290 476 579 655
2018...... 54 314 497 594
2019...... 57 342 522
2020...... 59 355
2021...... 95
-----------
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 5,943
===========
Average Annual Percentage Payout
The following is supplementary information about average historical claims
duration at December 31, 2021:
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
-----------------------------------------------------------------------------
Years...................... 1 2 3 4 5 6 7 8 9 10
Group Long-Term Disability. 4.8% 20.9% 15.0% 9.1% 7.2% 6.4% 5.2% 4.4% 3.8% 3.6%
Significant Methodologies and Assumptions
Group Life - Term and Group Long-Term Disability incurred but not paid
("IBNP") liabilities are developed using a combination of loss ratio and
development methods. Claims in the course of settlement are then subtracted
from the IBNP
MLIC-40
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
3. Insurance (continued)
liabilities, resulting in the IBNR liabilities. The loss ratio method is
used in the period in which the claims are neither sufficient nor credible.
In developing the loss ratios, any material rate increases that could change
the underlying premium without affecting the estimated incurred losses are
taken into account. For periods where sufficient and credible claim data
exists, the development method is used based on the claim triangles which
categorize claims according to both the period in which they were incurred
and the period in which they were paid, adjudicated or reported. The end
result is a triangle of known data that is used to develop known completion
ratios and factors. Claims paid are then subtracted from the estimated
ultimate incurred claims to calculate the IBNP liability.
An expense liability is held for the future expenses associated with the
payment of incurred but not yet paid claims (IBNR and pending). This is
expressed as a percentage of the underlying claims liability and is based on
past experience and the anticipated future expense structure.
For Group Life - Term and Group Long-Term Disability, first year incurred
claims and allocated loss adjustment expenses increased in 2021 compared to
the 2020 incurral year due to the growth in the size of the business.
The assumptions used in calculating the unpaid claims and claim adjustment
expenses for Group Life - Term and Group Long-Term Disability are updated
annually to reflect emerging trends in claim experience.
Certain of our Group Life - Term customers have experience-rated
contracts, whereby the group sponsor participates in the favorable and/or
adverse claim experience, including favorable and/or adverse prior year
development. Claim experience adjustments on these contracts are not
reflected in the foregoing incurred and paid claim development tables, but
are instead reflected as an increase (adverse experience) or decrease
(favorable experience) to premiums on the consolidated statements of
operations.
Liabilities for Group Life - Term unpaid claims and claim adjustment
expenses are not discounted.
The liabilities for Group Long-Term Disability unpaid claims and claim
adjustment expenses were $6.2 billion and $6.0 billion at December 31, 2021
and 2020, respectively. Using interest rates ranging from 2% to 8%, based on
the incurral year, the total discount applied to these liabilities was
$1.1 billion and $1.2 billion at December 31, 2021 and 2020, respectively.
The amount of interest accretion recognized was $518 million, $452 million
and $470 million for the years ended December 31, 2021, 2020 and 2019,
respectively. These amounts were reflected in policyholder benefits and
claims.
For Group Life - Term, claims were based upon individual death claims. For
Group Long-Term Disability, claim frequency was determined by the number of
reported claims as identified by a unique claim number assigned to
individual claimants. Claim counts initially include claims that do not
ultimately result in a liability. These claims are omitted from the claim
counts once it is determined that there is no liability.
The incurred and paid claims disclosed for the Group Life - Term product
includes activity related to the product's continued protection feature;
however, the associated actuarial reserve for future benefit obligations
under this feature is excluded from the liability for unpaid claims.
The Group Long-Term Disability IBNR, included in the development tables
above, was developed using discounted cash flows, and is presented on a
discounted basis.
MLIC-41
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
3. Insurance (continued)
Reconciliation of the Disclosure of Incurred and Paid Claims Development to
the Liability for Unpaid Claims and Claim Adjustment Expenses
The reconciliation of the net incurred and paid claims development tables
to the liability for unpaid claims and claims adjustment expenses on the
consolidated balance sheet was as follows at:
December 31, 2021
--------------------------------
(In millions)
Short-Duration:
Unpaid claims and allocated claims adjustment expenses, net of reinsurance:
U.S.:
Group Life - Term............................................................................ $ 3,022
Group Long-Term Disability................................................................... 7,176
---------------
Total...................................................................................... $ 10,198
Other insurance lines - all segments combined................................................ 864
----------------
Total unpaid claims and allocated claims adjustment expenses, net of reinsurance........... 11,062
----------------
Reinsurance recoverables on unpaid claims:
U.S.:
Group Life - Term............................................................................ 14
Group Long-Term Disability................................................................... 166
---------------
Total...................................................................................... 180
Other insurance lines - all segments combined................................................ 29
----------------
Total reinsurance recoverable on unpaid claims............................................. 209
----------------
Total unpaid claims and allocated claims adjustment expense................................ 11,271
Discounting.................................................................................. (1,133)
----------------
Liability for unpaid claims and claim adjustment liabilities - short-duration................ 10,138
Liability for unpaid claims and claim adjustment liabilities - all long-duration lines....... 4,921
----------------
Total liability for unpaid claims and claim adjustment expense (included in future policy
benefits and other policy-related balances)............................................... $ 15,059
================
MLIC-42
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
3. Insurance (continued)
Rollforward of Claims and Claim Adjustment Expenses
Information regarding the liabilities for unpaid claims and claim
adjustment expenses was as follows:
Years Ended December 31,
----------------------------------------------------
2021 2020 2019
---------------- ---------------- ----------------
(In millions)
Balance at January 1,............ $ 13,523 $ 13,140 $ 12,590
Less: Reinsurance recoverables. 1,639 1,525 1,497
---------------- ---------------- ----------------
Net balance at January 1,........ 11,884 11,615 11,093
Incurred related to:
Current year................... 21,201 18,620 17,711
Prior years (1)................ 582 (19) 44
---------------- ---------------- ----------------
Total incurred............... 21,783 18,601 17,755
Paid related to:
Current year................... (15,405) (13,854) (12,934)
Prior years.................... (5,466) (4,478) (4,299)
---------------- ---------------- ----------------
Total paid................... (20,871) (18,332) (17,233)
---------------- ---------------- ----------------
Net balance at December 31,...... 12,796 11,884 11,615
Add: Reinsurance recoverables.. 2,263 1,639 1,525
---------------- ---------------- ----------------
Balance at December 31,.......... $ 15,059 $ 13,523 $ 13,140
================ ================ ================
--------
(1) For the year ended December 31, 2021, the increase in incurred claim
activity and claim adjustment expenses associated with prior years
increased primarily due to the impacts from the COVID-19 pandemic, which
are partially offset by additional premiums recorded for experience-rated
contracts and are not reflected in the table above. For the year ended
December 31, 2020, claims and claim adjustment expenses associated with
prior years decreased due to favorable claims experience in the current
year. For the years ended December 31, 2019, claims and claim adjustment
expenses associated with prior years increased due to events incurred in
prior years but reported in the current year.
Separate Accounts
Separate account assets and liabilities include two categories of account
types: pass-through separate accounts totaling $78.8 billion and $78.0 billion
at December 31, 2021 and 2020, respectively, for which the policyholder assumes
all investment risk, and separate accounts for which the Company contractually
guarantees either a minimum return or account value to the policyholder which
totaled $45.0 billion and $50.6 billion at December 31, 2021 and 2020,
respectively. The latter category consisted primarily of guaranteed interest
contracts ("GICs"). The average interest rate credited on these contracts was
2.16% and 2.54% at December 31, 2021 and 2020, respectively.
4. Deferred Policy Acquisition Costs, Value of Business Acquired and Other
Intangibles
See Note 1 for a description of capitalized acquisition costs.
Nonparticipating and Non-Dividend-Paying Traditional Contracts
The Company amortizes DAC and VOBA related to these contracts (term
insurance, nonparticipating whole life insurance, traditional group life
insurance, and non-medical health insurance) over the appropriate premium
paying period in proportion to the actual and expected future gross premiums
that were set at contract issue. The expected premiums are based upon the
premium requirement of each policy and assumptions for mortality, morbidity,
persistency and investment returns at policy issuance, or policy acquisition
(as it relates to VOBA), include provisions for adverse deviation, and are
consistent with the assumptions used to calculate future policyholder benefit
liabilities. These assumptions are not revised after policy issuance or
acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from
future expected profits. Absent a premium deficiency, variability in
amortization after policy issuance or acquisition is caused only by variability
in premium volumes.
MLIC-43
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Deferred Policy Acquisition Costs, Value of Business Acquired and Other
Intangibles (continued)
Participating, Dividend-Paying Traditional Contracts
The Company amortizes DAC and VOBA related to these contracts over the
estimated lives of the contracts in proportion to actual and expected future
gross margins. The amortization includes interest based on rates in effect at
inception or acquisition of the contracts. The future gross margins are
dependent principally on investment returns, policyholder dividend scales,
mortality, persistency, expenses to administer the business, creditworthiness
of reinsurance counterparties and certain economic variables, such as
inflation. For participating contracts within the closed block (dividend-paying
traditional contracts) future gross margins are also dependent upon changes in
the policyholder dividend obligation. See Note 6. Of these factors, the Company
anticipates that investment returns, expenses, persistency and other factor
changes, as well as policyholder dividend scales, are reasonably likely to
impact significantly the rate of DAC and VOBA amortization. Each reporting
period, the Company updates the estimated gross margins with the actual gross
margins for that period. When the actual gross margins change from previously
estimated gross margins, the cumulative DAC and VOBA amortization is
re-estimated and adjusted by a cumulative charge or credit to current
operations. When actual gross margins exceed those previously estimated, the
DAC and VOBA amortization will increase, resulting in a current period charge
to earnings. The opposite result occurs when the actual gross margins are below
the previously estimated gross margins. Each reporting period, the Company also
updates the actual amount of business in-force, which impacts expected future
gross margins. When expected future gross margins are below those previously
estimated, the DAC and VOBA amortization will increase, resulting in a current
period charge to earnings. The opposite result occurs when the expected future
gross margins are above the previously estimated expected future gross margins.
Each period, the Company also reviews the estimated gross margins for each
block of business to determine the recoverability of DAC and VOBA balances.
Fixed and Variable Universal Life Contracts and Fixed and Variable Deferred
Annuity Contracts
The Company amortizes DAC and VOBA related to these contracts over the
estimated lives of the contracts in proportion to actual and expected future
gross profits. The amortization includes interest based on rates in effect at
inception or acquisition of the contracts. The amount of future gross profits
is dependent principally upon returns in excess of the amounts credited to
policyholders, mortality, persistency, interest crediting rates, expenses to
administer the business, creditworthiness of reinsurance counterparties, the
effect of any hedges used and certain economic variables, such as inflation. Of
these factors, the Company anticipates that investment returns, expenses and
persistency are reasonably likely to significantly impact the rate of DAC and
VOBA amortization. Each reporting period, the Company updates the estimated
gross profits with the actual gross profits for that period. When the actual
gross profits change from previously estimated gross profits, the cumulative
DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge
or credit to current operations. When actual gross profits exceed those
previously estimated, the DAC and VOBA amortization will increase, resulting in
a current period charge to earnings. The opposite result occurs when the actual
gross profits are below the previously estimated gross profits. Each reporting
period, the Company also updates the actual amount of business remaining
in-force, which impacts expected future gross profits. When expected future
gross profits are below those previously estimated, the DAC and VOBA
amortization will increase, resulting in a current period charge to earnings.
The opposite result occurs when the expected future gross profits are above the
previously estimated expected future gross profits. Each period, the Company
also reviews the estimated gross profits for each block of business to
determine the recoverability of DAC and VOBA balances.
Factors Impacting Amortization
Separate account rates of return on variable universal life contracts and
variable deferred annuity contracts affect in-force account balances on such
contracts each reporting period, which can result in significant fluctuations
in amortization of DAC and VOBA. Returns that are higher than the Company's
long-term expectation produce higher account balances, which increases the
Company's future fee expectations and decreases future benefit payment
expectations on minimum death and living benefit guarantees, resulting in
higher expected future gross profits. The opposite result occurs when returns
are lower than the Company's long-term expectation. The Company's practice to
determine the impact of gross profits resulting from returns on separate
accounts assumes that long-term appreciation in equity markets is not changed
by short-term market fluctuations, but is only changed when sustained interim
deviations are expected. The Company monitors these events and only changes the
assumption when its long-term expectation changes.
MLIC-44
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Deferred Policy Acquisition Costs, Value of Business Acquired and Other
Intangibles (continued)
The Company also periodically reviews other long-term assumptions underlying
the projections of estimated gross margins and profits. These assumptions
primarily relate to investment returns, policyholder dividend scales, interest
crediting rates, mortality, persistency, policyholder behavior and expenses to
administer business. Management annually updates assumptions used in the
calculation of estimated gross margins and profits which may have significantly
changed. If the update of assumptions causes expected future gross margins and
profits to increase, DAC and VOBA amortization will decrease, resulting in a
current period increase to earnings. The opposite result occurs when the
assumption update causes expected future gross margins and profits to decrease.
Periodically, the Company modifies product benefits, features, rights or
coverages that occur by the exchange of a contract for a new contract, or by
amendment, endorsement, or rider to a contract, or by election or coverage
within a contract. If such modification, referred to as an internal
replacement, substantially changes the contract, the associated DAC or VOBA is
written off immediately through income and any new deferrable costs associated
with the replacement contract are deferred. If the modification does not
substantially change the contract, the DAC or VOBA amortization on the original
contract will continue and any acquisition costs associated with the related
modification are expensed.
Amortization of DAC and VOBA is attributed to net investment gains (losses)
and net derivative gains (losses), and to other expenses for the amount of
gross margins or profits originating from transactions other than investment
gains and losses. Unrealized investment gains and losses represent the amount
of DAC and VOBA that would have been amortized if such gains and losses had
been recognized.
Information regarding DAC and VOBA was as follows:
Years Ended December 31,
-------------------------------------------------
2021 2020 2019
--------------- --------------- ---------------
(In millions)
DAC:
Balance at January 1,........................................... $ 2,626 $ 3,427 $ 4,089
Capitalizations................................................. 64 51 43
Amortization related to:
Net investment gains (losses) and net derivative gains (losses). (38) (56) 25
Other expenses.................................................. (215) (348) (263)
--------------- --------------- ---------------
Total amortization............................................ (253) (404) (238)
--------------- --------------- ---------------
Unrealized investment gains (losses)............................ 142 (448) (467)
--------------- --------------- ---------------
Balance at December 31,......................................... 2,579 2,626 3,427
--------------- --------------- ---------------
VOBA:
Balance at January 1,........................................... 23 26 28
Amortization related to other expenses.......................... (6) (2) (1)
Unrealized investment gains (losses)............................ 2 (1) (1)
--------------- --------------- ---------------
Balance at December 31,......................................... 19 23 26
--------------- --------------- ---------------
Total DAC and VOBA:
Balance at December 31,......................................... $ 2,598 $ 2,649 $ 3,453
=============== =============== ===============
Information regarding total DAC and VOBA by segment, as well as Corporate &
Other, was as follows:
December 31,
---------------------------
2021 2020
------------- -------------
(In millions)
U.S............... $ 401 $ 398
MetLife Holdings.. 2,191 2,251
Corporate & Other. 6 --
------------- -------------
Total........... $ 2,598 $ 2,649
============= =============
MLIC-45
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Deferred Policy Acquisition Costs, Value of Business Acquired and Other
Intangibles (continued)
Information regarding other intangibles was as follows:
Years Ended December 31,
----------------------------------
2021 2020 2019
---------- ---------- ----------
(In millions)
DSI:
Balance at January 1,................ $ 30 $ 62 $ 93
Capitalization....................... -- -- 1
Amortization......................... 2 (21) (20)
Unrealized investment gains (losses). 10 (11) (12)
---------- ---------- ----------
Balance at December 31,.............. $ 42 $ 30 $ 62
========== ========== ==========
VODA and VOCRA:
Balance at January 1,................ $ 135 $ 157 $ 181
Amortization......................... (19) (22) (24)
---------- ---------- ----------
Balance at December 31,.............. $ 116 $ 135 $ 157
========== ========== ==========
Accumulated amortization............. $ 341 $ 322 $ 300
========== ========== ==========
The estimated future amortization expense to be reported in other expenses
for the next five years is as follows:
VODA and
VOBA VOCRA
------------ -------------
(In millions)
2022.............................................. $ 1 $ 17
2023.............................................. $ 2 $ 15
2024.............................................. $ 2 $ 13
2025.............................................. $ 2 $ 12
2026.............................................. $ 2 $ 11
5. Reinsurance
The Company enters into reinsurance agreements that transfer risk from its
various insurance products to affiliated and unaffiliated companies. These
cessions limit losses, minimize exposure to significant risks and provide
additional capacity for future growth. The Company also provides reinsurance by
accepting risk from affiliates and nonaffiliates.
Under the terms of the reinsurance agreements, the reinsurer agrees to
reimburse the Company for the ceded amount in the event a claim is paid.
Cessions under reinsurance agreements do not discharge the Company's obligation
as the primary insurer. In the event that reinsurers do not meet their
obligations under the terms of the reinsurance agreements, reinsurance
recoverable balances could become uncollectible.
Accounting for reinsurance requires extensive use of assumptions and
estimates, particularly related to the future performance of the underlying
business and the potential impact of counterparty credit risks. The Company
periodically reviews actual and anticipated experience compared to the
aforementioned assumptions used to establish assets and liabilities relating to
ceded and assumed reinsurance and evaluates the financial strength of
counterparties to its reinsurance agreements using criteria similar to that
evaluated in the security impairment process discussed in Note 7.
U.S.
For its Group Benefits business, the Company generally retains most of the
risk, with the exception of its Group Term Life business and certain client
arrangements.
The Company reinsures an 80% quota share of its Group Term Life business for
capital management purposes. The majority of the Company's other reinsurance
activity within this business relates to client agreements for employer
sponsored captive programs, risk-sharing agreements and multinational pooling.
The risks ceded under these agreements are generally quota shares of group life
and disability policies. The cessions vary and the Company may cede up to 100%
of all the risks of these policies.
MLIC-46
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
5. Reinsurance (continued)
The Company's RIS business has engaged in reinsurance activities on an
opportunistic basis. Also, the Company assumes certain group annuity contracts
from an affiliate.
MetLife Holdings
For its life products, the Company has historically reinsured the mortality
risk primarily on an excess of retention basis or on a quota share basis. In
addition to reinsuring mortality risk as described above, the Company reinsures
other risks, as well as specific coverages. Placement of reinsurance is done
primarily on an automatic basis and also on a facultative basis for risks with
specified characteristics.
Catastrophe Coverage
The Company has exposure to catastrophes which could contribute to
significant fluctuations in its results of operations. For its U.S. segment,
the Company purchases catastrophe coverage to reinsure risks issued within
territories that it believes are subject to the greatest catastrophic risks.
For its MetLife Holdings segment, the Company uses excess of retention and
quota share reinsurance agreements to provide greater diversification of risk
and minimize exposure to larger risks. Excess of retention reinsurance
agreements provide for a portion of a risk to remain with the direct writing
company and quota share reinsurance agreements provide for the direct writing
company to transfer a fixed percentage of all risks of a class of policies.
Reinsurance Recoverables
The Company reinsures its business through a diversified group of
well-capitalized reinsurers. The Company analyzes recent trends in arbitration
and litigation outcomes in disputes, if any, with its reinsurers. The Company
monitors ratings and evaluates the financial strength of its reinsurers by
analyzing their financial statements. In addition, the reinsurance recoverable
balance due from each reinsurer is evaluated as part of the overall monitoring
process. Recoverability of reinsurance recoverable balances is evaluated based
on these analyses. The Company generally secures large reinsurance recoverable
balances with various forms of collateral, including secured trusts, funds
withheld accounts, and irrevocable letters of credit. These reinsurance
recoverable balances are stated net of allowances for uncollectible
reinsurance, which at December 31, 2021 and 2020 were not significant.
The Company has secured certain reinsurance recoverable balances with various
forms of collateral, including secured trusts, funds withheld accounts and
irrevocable letters of credit. The Company had $1.5 billion and $1.7 billion of
unsecured unaffiliated reinsurance recoverable balances at December 31, 2021
and 2020, respectively.
At December 31, 2021, the Company had $2.3 billion of net unaffiliated ceded
reinsurance recoverables. Of this total, $1.8 billion, or 78%, were with the
Company's five largest unaffiliated ceded reinsurers, including $1.2 billion of
net unaffiliated ceded reinsurance recoverables which were unsecured. At
December 31, 2020, the Company had $2.5 billion of net unaffiliated ceded
reinsurance recoverables. Of this total, $1.8 billion, or 72%, were with the
Company's five largest unaffiliated ceded reinsurers, including $1.2 billion of
net unaffiliated ceded reinsurance recoverables which were unsecured.
The Company has reinsured with an unaffiliated third-party reinsurer, 59% of
the closed block through a modified coinsurance agreement. The Company accounts
for this agreement under the deposit method of accounting. The Company, having
the right of offset, has offset the modified coinsurance deposit with the
deposit recoverable.
MLIC-47
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
5. Reinsurance (continued)
The amounts on the consolidated statements of operations include the impact
of reinsurance. Information regarding the significant effects of reinsurance
was as follows:
Years Ended December 31,
----------------------------------------------
2021 2020 2019
-------------- -------------- --------------
(In millions)
Premiums
Direct premiums............................................... $ 23,008 $ 20,821 $ 21,804
Reinsurance assumed........................................... 4,121 909 811
Reinsurance ceded............................................. (938) (989) (1,007)
-------------- -------------- --------------
Net premiums................................................ $ 26,191 $ 20,741 $ 21,608
============== ============== ==============
Universal life and investment-type product policy fees
Direct universal life and investment-type product policy fees. $ 2,371 $ 2,290 $ 2,331
Reinsurance assumed........................................... (16) (16) (15)
Reinsurance ceded............................................. (293) (278) (279)
-------------- -------------- --------------
Net universal life and investment-type product policy fees.. $ 2,062 $ 1,996 $ 2,037
============== ============== ==============
Other revenues
Direct other revenues......................................... $ 1,066 $ 1,043 $ 1,007
Reinsurance assumed........................................... 13 10 (5)
Reinsurance ceded............................................. 537 608 571
-------------- -------------- --------------
Net other revenues.......................................... $ 1,616 $ 1,661 $ 1,573
============== ============== ==============
Policyholder benefits and claims
Direct policyholder benefits and claims....................... $ 26,672 $ 23,488 $ 24,469
Reinsurance assumed........................................... 3,964 811 728
Reinsurance ceded............................................. (1,213) (1,225) (1,146)
-------------- -------------- --------------
Net policyholder benefits and claims........................ $ 29,423 $ 23,074 $ 24,051
============== ============== ==============
Interest credited to policyholder account balances
Direct interest credited to policyholder account balances..... $ 1,996 $ 2,218 $ 2,592
Reinsurance assumed........................................... 43 42 44
Reinsurance ceded............................................. (12) (13) (12)
-------------- -------------- --------------
Net interest credited to policyholder account balances...... $ 2,027 $ 2,247 $ 2,624
============== ============== ==============
Other expenses
Direct other expenses......................................... $ 4,459 $ 4,469 $ 4,464
Reinsurance assumed........................................... 163 71 50
Reinsurance ceded............................................. 995 473 462
-------------- -------------- --------------
Net other expenses.......................................... $ 5,617 $ 5,013 $ 4,976
============== ============== ==============
MLIC-48
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
5. Reinsurance (continued)
The amounts on the consolidated balance sheets include the impact of
reinsurance. Information regarding the significant effects of reinsurance was
as follows at:
December 31,
---------------------------------------------------------------------------
2021 2020
------------------------------------- -------------------------------------
Total Total
Balance Balance
Direct Assumed Ceded Sheet Direct Assumed Ceded Sheet
--------- ------- -------- --------- --------- ------- -------- ---------
(In millions)
Assets
Premiums, reinsurance and other
receivables................................ $ 2,778 $ 636 $17,091 $ 20,505 $ 2,509 $ 831 $18,138 $ 21,478
Deferred policy acquisition costs and value
of business acquired....................... 2,805 18 (225) 2,598 2,864 13 (228) 2,649
--------- ------- -------- --------- --------- ------- -------- ---------
Total assets.............................. $ 5,583 $ 654 $16,866 $ 23,103 $ 5,373 $ 844 $17,910 $ 24,127
========= ======= ======== ========= ========= ======= ======== =========
Liabilities
Future policy benefits...................... $128,086 $4,198 $ (10) $132,274 $132,776 $1,159 $ (14) $133,921
Policyholder account balances............... 94,059 400 -- 94,459 96,479 156 -- 96,635
Other policy-related balances............... 7,757 337 -- 8,094 7,103 322 5 7,430
Other liabilities........................... 6,259 2,213 15,324 23,796 7,027 2,406 15,991 25,424
--------- ------- -------- --------- --------- ------- -------- ---------
Total liabilities......................... $236,161 $7,148 $15,314 $258,623 $243,385 $4,043 $15,982 $263,410
========= ======= ======== ========= ========= ======= ======== =========
Reinsurance agreements that do not expose the Company to a reasonable
possibility of a significant loss from insurance risk are recorded using the
deposit method of accounting. The deposit assets on reinsurance were
$11.9 billion and $12.8 billion at December 31, 2021 and 2020, respectively.
The deposit liabilities on reinsurance were $1.7 billion and $1.8 billion at
December 31, 2021 and 2020, respectively.
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 ("MTL"), and MetLife Insurance K.K., all of which are related parties.
MLIC-49
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
5. Reinsurance (continued)
Information regarding the significant effects of affiliated reinsurance
included on the consolidated statements of operations was as follows:
Years Ended December 31,
-------------------------------------
2021 2020 2019
----------- ----------- -----------
(In millions)
Premiums
Reinsurance assumed.......................................... $ 3,237 $ 8 $ 9
Reinsurance ceded............................................ (114) (113) (115)
----------- ----------- -----------
Net premiums............................................... $ 3,123 $ (105) $ (106)
=========== =========== ===========
Universal life and investment-type product policy fees
Reinsurance assumed.......................................... $ 1 $ 1 $ 1
Reinsurance ceded............................................ (19) (7) (17)
----------- ----------- -----------
Net universal life and investment-type product policy fees. $ (18) $ (6) $ (16)
=========== =========== ===========
Other revenues
Reinsurance assumed.......................................... $ (11) $ (12) $ (19)
Reinsurance ceded............................................ 505 572 533
----------- ----------- -----------
Net other revenues......................................... $ 494 $ 560 $ 514
=========== =========== ===========
Policyholder benefits and claims
Reinsurance assumed.......................................... $ 3,138 $ 1 $ 4
Reinsurance ceded............................................ (152) (145) (153)
----------- ----------- -----------
Net policyholder benefits and claims....................... $ 2,986 $ (144) $ (149)
=========== =========== ===========
Interest credited to policyholder account balances
Reinsurance assumed.......................................... $ 31 $ 29 $ 30
Reinsurance ceded............................................ (12) (13) (12)
----------- ----------- -----------
Net interest credited to policyholder account balances..... $ 19 $ 16 $ 18
=========== =========== ===========
Other expenses
Reinsurance assumed.......................................... $ 89 $ -- $ --
Reinsurance ceded............................................ 1,055 516 533
----------- ----------- -----------
Net other expenses......................................... $ 1,144 $ 516 $ 533
=========== =========== ===========
Information regarding the significant effects of affiliated reinsurance
included on the consolidated balance sheets was as follows at:
December 31,
---------------------------------------------------
2021 2020
------------------------- ------------------------
Assumed Ceded Assumed Ceded
------------ ------------ ----------- ------------
(In millions)
Assets
Premiums, reinsurance and other receivables............. $ 25 $ 11,710 $ 1 $ 12,453
Deferred policy acquisition costs and value of business
acquired............................................... 6 (139) -- (145)
------------ ------------ ----------- ------------
Total assets.......................................... $ 31 $ 11,571 $ 1 $ 12,308
============ ============ =========== ============
Liabilities
Future policy benefits.................................. $ 3,139 $ (10) $ 48 $ (14)
Policyholder account balances........................... 366 -- 123 --
Other policy-related balances........................... 14 -- 1 5
Other liabilities....................................... 894 12,190 864 12,816
------------ ------------ ----------- ------------
Total liabilities..................................... $ 4,413 $ 12,180 $ 1,036 $ 12,807
============ ============ =========== ============
MLIC-50
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
5. Reinsurance (continued)
Effective April 1, 2021, the Company, through its wholly-owned subsidiary
Missouri Reinsurance, Inc., entered into an agreement to assume certain group
annuity contracts issued in connection with a qualifying pension risk transfer
on a modified coinsurance basis from MTL. The significant reinsurance effects
to the Company were primarily increases in future policy benefits of
$3.1 billion at December 31, 2021, as well as premiums of $3.2 billion and
policyholder benefits and claims of $3.1 billion for the year ended
December 31, 2021. Also, as a result of this agreement, other invested assets
increased by $3.2 billion at December 31, 2021.
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 consolidated balance sheets. The embedded
derivatives related to the funds withheld associated with these reinsurance
agreements are included within other liabilities and were $31 million and
$45 million at December 31, 2021 and 2020, respectively. Net derivative gains
(losses) associated with these embedded derivatives were $15 million,
($24) million and ($17) million for the years ended December 31, 2021, 2020 and
2019, 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 consolidated balance sheets. The embedded derivative related
to the funds withheld associated with this reinsurance agreement is included
within other liabilities and was $1.0 billion and $1.4 billion at December 31,
2021 and 2020, respectively. Net derivative gains (losses) associated with the
embedded derivative were $341 million, ($387) million and ($535) million for
the years ended December 31, 2021, 2020 and 2019, respectively.
The Company has secured certain reinsurance recoverable balances with various
forms of collateral, including secured trusts, funds withheld accounts and
irrevocable letters of credit. The Company had $677 million and $606 million of
unsecured affiliated reinsurance recoverable balances at December 31, 2021 and
2020, respectively.
Affiliated reinsurance agreements that do not expose the Company to a
reasonable possibility of a significant loss from insurance risk are recorded
using the deposit method of accounting. The deposit assets on affiliated
reinsurance were $10.1 billion and $11.0 billion at December 31, 2021 and 2020,
respectively. The deposit liabilities on affiliated reinsurance were
$892 million and $863 million at December 31, 2021 and 2020, respectively.
6. 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. Assets have been allocated to the closed block in an amount
that has been determined to produce cash flows which, together with anticipated
revenues from the policies included in the closed block, are reasonably
expected to be sufficient to support obligations and liabilities relating to
these policies, including, but not limited to, provisions for the payment of
claims and certain expenses and taxes, and to provide for the continuation of
policyholder dividend scales in effect for 1999, if the experience underlying
such dividend scales continues, and for appropriate adjustments in such scales
if the experience changes. At least annually, the Company compares actual and
projected experience against the experience assumed in the then-current
dividend scales. Dividend scales are adjusted periodically to give effect to
changes in experience.
The closed block assets, the cash flows generated by the closed block assets
and the anticipated revenues from the policies in the closed block will benefit
only the holders of the policies in the closed block. To the extent that, over
time, cash flows from the assets allocated to the closed block and claims and
other experience related to the closed block are, in the aggregate, more or
less favorable than what was assumed when the closed block was established,
total dividends paid to closed block policyholders in the future may be greater
than or less than the total dividends that would have been paid to these
policyholders if the policyholder dividend scales in effect for 1999 had been
continued. Any cash flows in excess of amounts assumed will be available for
distribution over time to closed block policyholders and will not be available
to stockholders. If the closed block has insufficient funds to make guaranteed
policy benefit payments, such payments will be made from assets outside of the
closed block. The closed block will continue in effect as long as any policy in
the closed block remains in-force. The expected life of the closed block is
over 100 years from the Demutualization Date.
MLIC-51
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
6. Closed Block (continued)
The Company uses the same accounting principles to account for the
participating policies included in the closed block as it used prior to the
Demutualization Date. However, the Company establishes a policyholder dividend
obligation for earnings that will be paid to policyholders as additional
dividends as described below. The excess of closed block liabilities over
closed block assets at the Demutualization Date (adjusted to eliminate the
impact of related amounts in AOCI) represents the estimated maximum future
earnings from the closed block expected to result from operations, attributed
net of income tax, to the closed block. Earnings of the closed block are
recognized in income over the period the policies and contracts in the closed
block remain in-force. Management believes that over time the actual cumulative
earnings of the closed block will approximately equal the expected cumulative
earnings due to the effect of dividend changes. If, over the period the closed
block remains in existence, the actual cumulative earnings of the closed block
are greater than the expected cumulative earnings of the closed block, the
Company will pay the excess to closed block policyholders as additional
policyholder dividends unless offset by future unfavorable experience of the
closed block and, accordingly, will recognize only the expected cumulative
earnings in income with the excess recorded as a policyholder dividend
obligation. If over such period, the actual cumulative earnings of the closed
block are less than the expected cumulative earnings of the closed block, the
Company will recognize only the actual earnings in income. However, the Company
may change policyholder dividend scales in the future, which would be intended
to increase future actual earnings until the actual cumulative earnings equal
the expected cumulative earnings.
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.
MLIC-52
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
6. Closed Block (continued)
Information regarding the closed block liabilities and assets designated to
the closed block was as follows at:
December 31,
----------------------------
2021 2020
------------- -------------
(In millions)
Closed Block Liabilities
Future policy benefits.............................................................. $ 38,046 $ 38,758
Other policy-related balances....................................................... 290 321
Policyholder dividends payable...................................................... 253 337
Policyholder dividend obligation.................................................... 1,682 2,969
Deferred income tax liability....................................................... 210 130
Other liabilities................................................................... 263 172
------------- -------------
Total closed block liabilities.................................................... 40,744 42,687
------------- -------------
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value............... 25,669 27,186
Mortgage loans...................................................................... 6,417 6,807
Policy loans........................................................................ 4,191 4,355
Real estate and real estate joint ventures.......................................... 565 559
Other invested assets............................................................... 556 492
------------- -------------
Total investments................................................................. 37,398 39,399
Cash and cash equivalents........................................................... 126 --
Accrued investment income........................................................... 384 402
Premiums, reinsurance and other receivables......................................... 50 50
Current income tax recoverable...................................................... 81 28
------------- -------------
Total assets designated to the closed block....................................... 38,039 39,879
------------- -------------
Excess of closed block liabilities over assets designated to the closed block..... 2,705 2,808
------------- -------------
AOCI:
Unrealized investment gains (losses), net of income tax............................. 2,562 3,524
Unrealized gains (losses) on derivatives, net of income tax......................... 107 23
Allocated to policyholder dividend obligation, net of income tax.................... (1,329) (2,346)
------------- -------------
Total amounts included in AOCI.................................................... 1,340 1,201
------------- -------------
Maximum future earnings to be recognized from closed block assets and liabilities. $ 4,045 $ 4,009
============= =============
Information regarding the closed block policyholder dividend obligation was
as follows:
Years Ended December 31,
------------------------------------------
2021 2020 2019
------------- ------------- -------------
(In millions)
Balance at January 1,........................ $ 2,969 $ 2,020 $ 428
Change in unrealized investment and
derivative gains (losses)................... (1,287) 949 1,592
------------- ------------- -------------
Balance at December 31,...................... $ 1,682 $ 2,969 $ 2,020
============= ============= =============
MLIC-53
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
6. Closed Block (continued)
Information regarding the closed block revenues and expenses was as follows:
Years Ended December 31,
----------------------------------------
2021 2020 2019
------------ ------------ ------------
(In millions)
Revenues
Premiums..................................... $ 1,298 $ 1,498 $ 1,580
Net investment income........................ 1,541 1,596 1,740
Net investment gains (losses)................ (36) (25) (7)
Net derivative gains (losses)................ 18 (17) 12
------------ ------------ ------------
Total revenues.............................. 2,821 3,052 3,325
------------ ------------ ------------
Expenses
Policyholder benefits and claims............. 2,150 2,330 2,291
Policyholder dividends....................... 621 791 924
Other expenses............................... 96 104 111
------------ ------------ ------------
Total expenses.............................. 2,867 3,225 3,326
------------ ------------ ------------
Revenues, net of expenses before provision
for income tax expense (benefit).......... (46) (173) (1)
Provision for income tax expense (benefit)... (10) (36) (2)
------------ ------------ ------------
Revenues, net of expenses and provision for
income tax expense (benefit).............. $ (36) $ (137) $ 1
============ ============ ============
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.
7. Investments
See Note 9 for information about the fair value hierarchy for investments and
the related valuation methodologies.
Investment Risks and Uncertainties
Investments are exposed to the following primary sources of risk: credit,
interest rate, liquidity, market valuation, currency and real estate risk. The
financial statement risks, stemming from such investment risks, are those
associated with the determination of estimated fair values, the diminished
ability to sell certain investments in times of strained market conditions, the
recognition of ACL and impairments, the recognition of income on certain
investments and the potential consolidation of VIEs. The use of different
methodologies, assumptions and inputs relating to these financial statement
risks may have a material effect on the amounts presented within the
consolidated financial statements.
The determination of ACL and impairments is highly subjective and is based
upon quarterly evaluations and assessments of known and inherent risks
associated with the respective asset class. Such evaluations and assessments
are revised as conditions change and new information becomes available.
The recognition of income on certain investments (e.g. structured securities,
including mortgage-backed securities, asset-backed securities ("ABS"), certain
structured investment transactions and FVO Securities) is dependent upon
certain factors such as prepayments and defaults, and changes in such factors
could result in changes in amounts to be earned.
Fixed Maturity Securities AFS
Fixed Maturity Securities AFS by Sector
The following table presents fixed maturity securities AFS by sector. U.S.
corporate and foreign corporate sectors include redeemable preferred stock.
RMBS includes agency, prime, alternative and sub-prime mortgage-backed
securities.
MLIC-54
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
ABS includes securities collateralized by corporate loans and consumer loans.
Municipals includes taxable and tax-exempt revenue bonds and, to a much
lesser extent, general obligations of states, municipalities and political
subdivisions. Commercial mortgage-backed securities ("CMBS") primarily
includes securities collateralized by multiple commercial mortgage loans.
RMBS, ABS and CMBS are, collectively, "Structured Products."
December 31,
----------------------------------------------------------------------------------------------
2021 2020
----------------------------------------------- ----------------------------------------------
Gross Unrealized Gross Unrealized
--------------------------- --------------------------
Allowance Estimated Allowance Estimated
Amortized for Credit Fair Amortized for Credit Fair
Sector Cost Loss Gains Losses Value Cost Loss Gains Losses Value
------ --------- ---------- -------- ------- --------- --------- ---------- -------- ------ ---------
(In millions)
U.S. corporate....... $ 51,328 $ (30) $ 7,257 $ 153 $ 58,402 $ 50,989 $ (43) $ 9,618 $ 155 $ 60,409
U.S. government and
agency.............. 26,782 -- 4,568 128 31,222 24,620 -- 6,178 27 30,771
Foreign corporate.... 27,475 (10) 2,651 431 29,685 28,093 (8) 4,478 284 32,279
RMBS................. 22,082 -- 1,198 135 23,145 22,552 -- 1,706 32 24,226
ABS.................. 12,787 -- 127 35 12,879 12,456 -- 169 50 12,575
Municipals........... 6,884 -- 1,849 5 8,728 6,888 -- 2,096 1 8,983
CMBS................. 6,686 (13) 237 32 6,878 6,503 -- 381 55 6,829
Foreign government... 4,330 -- 698 82 4,946 4,322 -- 978 32 5,268
--------- ------- -------- ------- --------- --------- ------ -------- ------ ---------
Total fixed
maturity
securities AFS.... $ 158,354 $ (53) $ 18,585 $ 1,001 $ 175,885 $ 156,423 $ (51) $ 25,604 $ 636 $ 181,340
========= ======= ======== ======= ========= ========= ====== ======== ====== =========
Methodology for Amortization of Premium and Accretion of Discount on
Structured Products
Amortization of premium and accretion of discount on Structured Products
considers the estimated timing and amount of prepayments of the underlying
loans. Actual prepayment experience is periodically reviewed and effective
yields are recalculated when differences arise between the originally
anticipated and the actual prepayments received and currently anticipated.
Prepayment assumptions for Structured Products are estimated using inputs
obtained from third-party specialists and based on management's knowledge of
the current market. For credit-sensitive and certain prepayment-sensitive
Structured Products, the effective yield is recalculated on a prospective
basis. For all other Structured Products, the effective yield is recalculated
on a retrospective basis.
Maturities of Fixed Maturity Securities AFS
The amortized cost, net of ACL, and estimated fair value of fixed maturity
securities AFS, by contractual maturity date, were as follows at December 31,
2021:
Due After Five
Due After One Years Total Fixed
Due in One Year Through Through Ten Due After Ten Structured Maturity
Year or Less Five Years Years Years Products Securities AFS
------------ ------------- -------------- ------------- ----------- --------------
(In millions)
Amortized cost, net of ACL. $ 2,967 $ 29,155 $ 27,945 $ 56,692 $ 41,542 $ 158,301
Estimated fair value....... $ 2,938 $ 29,975 $ 30,739 $ 69,331 $ 42,902 $ 175,885
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.
MLIC-55
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
Continuous Gross Unrealized Losses for Fixed Maturity Securities AFS by Sector
The following table presents the estimated fair value and gross unrealized
losses of fixed maturity securities AFS in an unrealized loss position
without an ACL by sector and aggregated by length of time that the securities
have been in a continuous unrealized loss position.
December 31,
-------------------------------------------------------------------------------------
2021 2020
------------------------------------------ ------------------------------------------
Equal to or Greater Equal to or Greater
Less than 12 Months than 12 Months Less than 12 Months than 12 Months
--------------------- -------------------- --------------------- --------------------
Estimated Gross Estimated Gross Estimated Gross Estimated Gross
Fair Unrealized Fair Unrealized Fair Unrealized Fair Unrealized
Sector & Credit Quality Value Losses Value Losses Value Losses Value Losses
----------------------- ---------- ---------- --------- ---------- ---------- ---------- --------- ----------
(Dollars in millions)
U.S. Corporate..................... $ 4,503 $ 83 $ 784 $ 70 $ 2,351 $ 112 $ 230 $ 36
U.S. government and agency......... 10,063 78 523 49 1,686 27 -- --
Foreign Corporate.................. 4,079 199 1,348 232 2,431 225 34 59
RMBS............................... 7,481 111 314 24 1,119 20 128 12
ABS................................ 5,643 25 593 10 2,561 18 2,233 32
Municipals......................... 154 4 17 1 51 1 -- --
CMBS............................... 1,613 20 355 12 1,110 41 306 14
Foreign Government................. 497 37 148 45 110 6 115 27
---------- ------- --------- ------- ---------- ------- --------- -------
Total fixed maturity securities
AFS............................. $ 34,033 $ 557 $ 4,082 $ 443 $ 11,419 $ 450 $ 3,046 $ 180
========== ======= ========= ======= ========== ======= ========= =======
Investment grade................... $ 31,419 $ 454 $ 3,273 $ 353 $ 9,012 $ 297 $ 2,841 $ 158
Below investment grade............. 2,614 103 809 90 2,407 153 205 22
---------- ------- --------- ------- ---------- ------- --------- -------
Total fixed maturity securities
AFS............................. $ 34,033 $ 557 $ 4,082 $ 443 $ 11,419 $ 450 $ 3,046 $ 180
========== ======= ========= ======= ========== ======= ========= =======
Total number of securities in an
unrealized loss position.......... 2,549 427 984 385
========== ========= ========== =========
Evaluation of Fixed Maturity Securities AFS for Credit Loss
Evaluation and Measurement Methodologies
Management considers a wide range of factors about the security issuer and
uses its best judgment in evaluating the cause of the decline in the
estimated fair value of the security and in assessing the prospects for
near-term recovery. Inherent in management's evaluation of the security are
assumptions and estimates about the operations of the issuer and its future
earnings potential. Considerations used in the credit loss evaluation
process include, but are not limited to:(i) the extent to which the
estimated fair value has been below amortized cost, (ii) adverse conditions
specifically related to a security, an industry sector or sub-sector, or an
economically depressed geographic area, adverse change in the financial
condition of the issuer of the security, changes in technology,
discontinuance of a segment of the business that may affect future earnings,
and changes in the quality of credit enhancement, (iii) payment structure of
the security and likelihood of the issuer being able to make payments,
(iv) failure of the issuer to make scheduled interest and principal
payments, (v) whether the issuer, or series of issuers or an industry has
suffered a catastrophic loss or has exhausted natural resources,
(vi) whether the Company has the intent to sell or will more likely than not
be required to sell 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.
MLIC-56
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
The methodology and significant inputs used to determine the amount of
credit loss are as follows:
. The Company calculates the recovery value by performing a discounted cash
flow analysis based on the present value of future cash flows. The
discount rate is generally the effective interest rate of the security at
the time of purchase for fixed-rate securities and the spot rate at the
date of evaluation of credit loss for floating-rate securities.
. When determining collectability and the period over which value is
expected to recover, the Company applies considerations utilized in its
overall credit loss evaluation process which incorporates information
regarding the specific security, fundamentals of the industry and
geographic area in which the security issuer operates, and overall
macroeconomic conditions. Projected future cash flows are estimated using
assumptions derived from management's single best estimate, the most
likely outcome in a range of possible outcomes, after giving
consideration to a variety of variables that include, but are not limited
to: payment terms of the security; the likelihood that the issuer can
service the interest and principal payments; the quality and amount of
any credit enhancements; the security's position within the capital
structure of the issuer; possible corporate restructurings or asset sales
by the issuer; any private and public sector programs to restructure
foreign government securities and municipals; and changes to the rating
of the security or the issuer by rating agencies.
. Additional considerations are made when assessing the 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 financial condition of the underlying loan obligors, expected
prepayment speeds, current and forecasted loss severity, consideration of
the payment terms of the underlying loans or assets backing a particular
security, changes in the quality of credit enhancement and the payment
priority within the tranche structure of the security.
With respect to securities that have attributes of debt and equity
("perpetual hybrid securities"), consideration is given in the credit loss
analysis as to whether there has been any deterioration in the credit of the
issuer and the likelihood of recovery in value of the securities that are in
a severe unrealized loss position. Consideration is also given as to whether
any perpetual hybrid securities with an unrealized loss, regardless of
credit rating, have deferred any dividend payments.
After the adoption of credit loss guidance on January 1, 2020, in periods
subsequent to the recognition of an initial ACL on a security, the Company
reassesses credit loss quarterly. Subsequent increases or decreases in the
expected cash flow from the security result in corresponding decreases or
increases in the ACL which are recognized in earnings and reported within
net investment gains (losses); however, the previously recorded ACL is not
reduced to an amount below zero. Full or partial write-offs are deducted
from the ACL in the period the security, or a portion thereof, is considered
uncollectible. Recoveries of amounts previously written off are recorded to
the ACL in the period received. When the Company has the intent to sell the
security or it is more likely than not that the Company will be required to
sell the security before recovery of its amortized cost, any ACL is written
off and the amortized cost is written down to estimated fair value through a
charge within net investment gains (losses), which becomes the new amortized
cost of the security.
Methodologies used during the year ended December 31, 2019 to evaluate the
recoverability of a security in an unrealized loss position using OTTI
guidance were similar to those used after the adoption of credit loss
guidance on January 1, 2020, except: (i) the length of time estimated fair
value had been below amortized cost was considered for securities, and
(ii) for non-functional currency denominated securities, the impact from
weakening non-functional currencies on securities that were near maturity
was considered in the evaluation. In addition, measurement methodologies
were similar, except: (i) a fair value floor was not utilized to limit the
credit loss recognized in earnings, (ii) the amortized cost of securities
was adjusted for the OTTI to the expected recoverable amount and an ACL was
not utilized, (iii) subsequent to a credit loss being recognized, increases
in expected cash flows from the security did not result in an immediate
increase in valuation recognized in earnings through net investment gains
(losses) from reduction of the ACL instead such increases in value were
recorded as unrecognized unrealized gains in OCI, and (iv) in periods
subsequent to the recognition of OTTI on a security, the Company accounted
for the impaired security as if it had been purchased on the measurement
date of the impairment; accordingly, the discount (or reduced premium) based
on the new cost basis was accreted over the remaining term of the security
in a prospective manner based on the amount and timing of estimated future
cash flows.
MLIC-57
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
Evaluation of Fixed Maturity Securities AFS in an Unrealized Loss Position
Gross unrealized losses on securities without an ACL increased
$370 million for the year ended December 31, 2021 to $1.0 billion primarily
due to increases in interest rates and widening of credit spreads.
Gross unrealized losses on securities without an ACL that have been in a
continuous gross unrealized loss position for 12 months or greater were
$443 million at December 31, 2021, or 44% of the total gross unrealized
losses on securities without an ACL.
Investment Grade Fixed Maturity Securities AFS
Of the $443 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, $353 million, or 80%, were related to 328 investment
grade securities. Unrealized losses on investment grade securities are
principally related to widening credit spreads since purchase and, with
respect to fixed-rate securities, rising interest rates since purchase.
Below Investment Grade Fixed Maturity Securities AFS
Of the $443 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, $90 million, or 20%, were related to 99 below investment
grade securities. Unrealized losses on below investment grade securities are
principally related to U.S. 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.
and foreign corporate securities based on several factors such as expected
cash flows, financial condition and near-term and long-term prospects of the
issuers.
Current Period Evaluation
At December 31, 2021, 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
securities in an unrealized loss position without an ACL, the Company
concluded that these securities had not incurred a credit loss and should
not have an ACL at December 31, 2021.
Future provisions for credit loss will depend primarily on economic
fundamentals, issuer performance (including changes in the present value of
future cash flows expected to be collected), changes in credit ratings and
collateral valuation.
Mortgage Loans
Mortgage Loans by Portfolio Segment
Mortgage loans are summarized as follows at:
December 31,
------------------------------------------------
2021 2020
------------------------ -----------------------
Carrying % of Carrying % of
Portfolio Segment Value Total Value Total
----------------- ------------ ---------- ------------ ---------
(Dollars in millions)
Commercial................... $ 35,772 59.4% $ 38,528 58.0%
Agricultural................. 15,450 25.7 16,426 24.7
Residential.................. 9,406 15.6 11,803 17.8
------------ ---------- ------------ ---------
Total amortized cost....... 60,628 100.7 66,757 100.5
Allowance for credit loss.... (536) (0.9) (517) (0.8)
------------ ---------- ------------ ---------
Subtotal mortgage loans, net. 60,092 99.8 66,240 99.7
Residential -- FVO........... 127 0.2 165 0.3
------------ ---------- ------------ ---------
Total mortgage loans, net.. $ 60,219 100.0% $ 66,405 100.0%
============ ========== ============ =========
MLIC-58
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
The Company elects the FVO for certain residential mortgage loans that are
managed on a total return basis, with changes in estimated fair value
included in net investment income. See Note 9 for further information.
The amount of net (discounts) premiums and deferred (fees) expenses,
included within total amortized cost, primarily attributable to residential
mortgage loans was ($736) million and ($925) million at December 31, 2021 and
2020, respectively. The accrued interest income excluded from total amortized
cost for commercial, agricultural and residential mortgage loans at
December 31, 2021 was $140 million, $136 million and $77 million,
respectively. The accrued interest income excluded from total amortized cost
for commercial, agricultural and residential mortgage loans at
December 31, 2020 was $164 million, $158 million, $101 million, respectively.
Purchases of unaffiliated mortgage loans, consisting primarily of
residential mortgage loans, were $1.4 billion, $2.8 billion and $4.0 billion
for the years ended December 31, 2021, 2020 and 2019, respectively.
The Company originates and acquires unaffiliated mortgage loans and
simultaneously sells a portion to affiliates under master participation
agreements. The aggregate amount of mortgage loan participation interests in
unaffiliated mortgage loans sold by the Company to affiliates for the years
ended December 31, 2021, 2020 and 2019 was $277 million, $59 million and
$100 million, respectively. In connection with the mortgage loan
participations, the Company collected mortgage loan principal and interest
payments from unaffiliated borrowers on behalf of affiliates and remitted
such receipts to the affiliates in the amount of $1.0 billion, $540 million
and $951 million for the years ended December 31, 2021, 2020 and 2019,
respectively.
The Company originates mortgage loans through an affiliate. The affiliate
originates and acquires mortgage loans and the Company simultaneously
purchases participation interests under a master participation agreement. The
aggregate amount of mortgage loan participation interests purchased by the
Company from such affiliate for the years ended December 31, 2021, 2020 and
2019 was $4.7 billion and $3.8 billion and $4.1 billion, respectively. In
connection with the mortgage loan participations, the affiliate collected
mortgage loan principal and interest payments on the Company's behalf and the
affiliate remitted such payments to the Company in the amount of
$1.9 billion, $696 million and $403 million for the years ended December 31,
2021, 2020 and 2019, respectively.
Rollforward of Allowance for Credit Loss for Mortgage Loans by Portfolio
Segment
The rollforward of ACL for mortgage loans, by portfolio segment, is as
follows:
For the Years Ended December 31,
---------------------------------------------------------------------------------------
2021 2020
------------------------------------------ ------------------------------------------
Commercial Agricultural Residential Total Commercial Agricultural Residential Total
---------- ------------ ----------- ------ ---------- ------------ ----------- ------
(In millions)
Balance at January 1,.............. $ 199 $ 97 $ 221 $ 517 $ 186 $ 49 $ 54 $ 289
Adoption of credit loss guidance... -- -- -- -- (87) 32 154 99
Provision (release)................ 61 6 (25) 42 100 18 27 145
Initial credit losses on PCD
loans (1)......................... -- -- 3 3 -- -- 18 18
Charge-offs, net of recoveries..... -- (24) (2) (26) -- (2) (32) (34)
------ ----- ------ ------ ------ ----- ------ ------
Balance at December 31,............ $ 260 $ 79 $ 197 $ 536 $ 199 $ 97 $ 221 $ 517
====== ===== ====== ====== ====== ===== ====== ======
-------------------------------------------
2019
------------------------------------------
Commercial Agricultural Residential Total
---------- ------------ ----------- ------
Balance at January 1,.............. $ 190 $ 44 $ 57 $ 291
Adoption of credit loss guidance... -- -- -- --
Provision (release)................ (4) 10 7 13
Initial credit losses on PCD
loans (1)......................... -- -- -- --
Charge-offs, net of recoveries..... -- (5) (10) (15)
------ ----- ----- ------
Balance at December 31,............ $ 186 $ 49 $ 54 $ 289
====== ===== ===== ======
--------
(1) Represents the initial credit losses accounted for as purchased financial
assets with credit deterioration ("PCD").
MLIC-59
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
Allowance for Credit Loss Methodology
After the adoption of credit loss guidance on January 1, 2020, 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 troubled debt restructurings ("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).
During the year ended December 31, 2019, prior to the adoption of credit
loss guidance on January 1, 2020, evaluation and measurement methodologies
in determining the ACL were similar, except: (i) credit loss was recognized
in earnings within net investment gains (losses) when incurred (when it was
probable, based on current information and events, that all amounts due
under the loan agreement would not be collected), (ii) pooling of loans with
similar risk characteristics was permitted, but not required,
(iii) forecasts of economic conditions were not considered in the
evaluation, (iv) measurement of the expected lifetime credit loss over the
contractual term, or expected term, was not considered in the measurement,
and (v) the credit loss for loans evaluated individually could also be
determined using either discounted cash flows using the loans' original
effective interest rate or observable market prices.
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, in addition to historical experience,
management considers factors that include the impact of a rapid change to
the economy, which may not be reflected in the loan portfolio, recent loss
and recovery trend experience as compared to historical loss and recovery
experience, and loan specific characteristics including debt service
coverage ratios ("DSCR"). In estimating expected lifetime credit loss over
the term of its commercial mortgage loans, the Company adjusts for expected
prepayment and extension experience during the forecast period using
historical prepayment and extension experience
MLIC-60
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
considering the expected position in the economic cycle and the loan profile
(i.e., floating rate, shorter-term fixed rate and longer-term fixed rate)
and after the forecast period using long-term historical prepayment
experience. For evaluations of agricultural mortgage loans, in addition to
historical experience, management considers factors that include increased
stress in certain sectors, which may be evidenced by higher delinquency
rates, or a change in the number of higher risk loans. In estimating
expected lifetime credit loss over the term of its agricultural mortgage
loans, the Company's experience is much less sensitive to the position in
the economic cycle and by loan profile; accordingly, historical prepayment
experience is used, while extension terms are not prevalent with the
Company's agricultural mortgage loans.
Commercial mortgage loans are reviewed on an ongoing basis, which review
includes, but is not limited to, an analysis of the property financial
statements and rent roll, lease rollover analysis, property inspections,
market analysis, estimated valuations of the underlying collateral, LTV
ratios, DSCR and tenant creditworthiness. The monitoring process focuses on
higher risk loans, which include those that are classified as restructured,
delinquent or in foreclosure, as well as loans with higher LTV ratios and
lower DSCR. Agricultural mortgage loans are reviewed on an ongoing basis,
which review includes, but is not limited to, property inspections, market
analysis, estimated valuations of the underlying collateral, LTV ratios and
borrower creditworthiness, as well as reviews on a geographic and
property-type basis. The monitoring process for agricultural mortgage loans
also focuses on higher risk loans.
For commercial mortgage loans, the primary credit quality indicator is the
DSCR, which compares a property's net operating income to amounts needed to
service the principal and interest due under the loan. Generally, the lower
the DSCR, the higher the risk of experiencing a credit loss. The Company
also reviews the LTV ratio of its commercial mortgage loan portfolio. LTV
ratios compare the unpaid principal balance of the loan to the estimated
fair value of the underlying collateral. Generally, the higher the LTV
ratio, the higher the risk of experiencing a credit loss. The DSCR and the
values utilized in calculating the ratio are updated routinely. In addition,
the LTV ratio is routinely updated for all but the lowest risk loans as part
of the Company's ongoing review of its commercial mortgage loan portfolio.
For agricultural mortgage loans, the Company's primary credit quality
indicator is the LTV ratio. The values utilized in calculating this ratio
are developed in connection with the ongoing review of the agricultural
mortgage loan portfolio and are routinely updated.
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.
MLIC-61
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
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.
Mortgage Loan Concessions
In response to the adverse economic impact of the COVID-19 pandemic, in
2021 and 2020, the Company granted concessions to certain of its commercial,
agricultural and residential mortgage loan borrowers, including payment
deferrals and other loan modifications. The Company has elected the option
under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"),
the Consolidated Appropriations Act, 2021 and the Interagency Statement on
Loan Modifications and Reporting for Financial Institutions Working with
Customers Affected by the Coronavirus (Revised) ("Interagency Statement")
issued by bank regulatory agencies, not to account for or report qualifying
concessions as TDRs and not to classify such loans as either past due or
nonaccrual during the payment deferral period. Additionally, in accordance
with the FASB's published response to a COVID-19 pandemic technical inquiry,
the Company continues to accrue interest income on such loans that have
deferred payment. The Company records an ACL on this accrued interest income
through earnings, which is reported within net investment gains (losses).
Commercial
For some commercial mortgage loan borrowers (principally in the retail and
hotel sectors), the Company granted concessions which were primarily
interest and principal payment deferrals generally ranging from three to
four months and, to a much lesser extent, maturity date extensions. Deferred
commercial mortgage loan interest and principal payments were $23 million at
December 31, 2021.
Agricultural
For some agricultural mortgage loan borrowers (principally in the annual
crops and agribusiness sectors), the Company granted concessions which were
primarily principal payment deferrals generally ranging from three to twelve
months, and covenant changes and, to a much lesser extent, maturity date
extensions. Deferred agricultural mortgage loan interest and principal
payments were $4 million at December 31, 2021.
Residential
For some residential mortgage loan borrowers, the Company granted
concessions which were primarily three-month interest and principal payment
deferrals. Deferred residential mortgage loan interest and principal
payments were $15 million at December 31, 2021.
Troubled Debt Restructurings
The Company assesses loan concessions prior to the issuance of, or outside
the scope of, the CARES Act, the Consolidated Appropriations Act, 2021 and
the Interagency Statement on a case-by-case basis to evaluate whether a TDR
has occurred. The Company may grant concessions to borrowers experiencing
financial difficulties, which, if not significant, are not classified as
TDRs, while more significant concessions are classified as TDRs. Generally,
the types of concessions include: reduction of the contractual interest
rate, extension of the maturity date at an interest rate lower than current
market interest rates, and/or a reduction of accrued interest. The amount,
timing and extent of the concessions granted are considered in determining
any ACL recorded.
For both years ended December 31, 2021 and 2020, the Company did not have
any commercial mortgage loans modified in a TDR; and did not have a
significant amount of agricultural and residential mortgage loans modified
in a TDR.
For both years ended December 31, 2021 and 2020, the Company did not have
a significant amount of mortgage loans modified in a TDR with subsequent
payment default.
MLIC-62
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
Credit Quality of Mortgage Loans by Portfolio Segment
The amortized cost of commercial mortgage loans by credit quality indicator
and vintage year was as follows at December 31, 2021:
Revolving % of
Credit Quality Indicator 2021 2020 2019 2018 2017 Prior Loans Total Total
------------------------ ---------- ---------- ---------- ---------- ---------- ----------- ---------- ----------- ---------
(Dollars in millions)
LTV ratios:
Less than 65%......... $ 3,402 $ 3,128 $ 2,938 $ 3,730 $ 2,760 $ 8,859 $ 2,443 $ 27,260 76.2%
65% to 75%............ 1,017 551 2,021 933 337 1,611 -- 6,470 18.1
76% to 80%............ -- 18 138 198 149 180 -- 683 1.9
Greater than 80%...... -- -- -- 49 284 1,026 -- 1,359 3.8
---------- ---------- ---------- ---------- ---------- ----------- ---------- ----------- ---------
Total............... $ 4,419 $ 3,697 $ 5,097 $ 4,910 $ 3,530 $ 11,676 $ 2,443 $ 35,772 100.0%
========== ========== ========== ========== ========== =========== ========== =========== =========
DSCR:
1.20x............... $ 4,018 $ 3,306 $ 4,698 $ 4,500 $ 3,190 $ 9,101 $ 2,164 $ 30,977 86.6%
1.00x - 1.20x......... 156 69 9 134 27 882 -- 1,277 3.6
<1.00x................ 245 322 390 276 313 1,693 279 3,518 9.8
---------- ---------- ---------- ---------- ---------- ----------- ---------- ----------- ---------
Total............... $ 4,419 $ 3,697 $ 5,097 $ 4,910 $ 3,530 $ 11,676 $ 2,443 $ 35,772 100.0%
========== ========== ========== ========== ========== =========== ========== =========== =========
The amortized cost of agricultural mortgage loans by credit quality
indicator and vintage year was as follows at December 31, 2021:
Revolving % of
Credit Quality Indicator 2021 2020 2019 2018 2017 Prior Loans Total Total
------------------------ ---------- ---------- ---------- ---------- -------- ---------- ---------- ----------- ---------
(Dollars in millions)
LTV ratios:
Less than 65%......... $ 1,399 $ 2,221 $ 1,685 $ 2,264 $ 878 $ 4,286 $ 947 $ 13,680 88.5%
65% to 75%............ 237 335 198 150 37 571 112 1,640 10.6
76% to 80%............ -- -- -- -- -- 11 -- 11 0.1
Greater than 80%...... -- -- 76 -- -- 43 -- 119 0.8
---------- ---------- ---------- ---------- -------- ---------- ---------- ----------- ---------
Total............... $ 1,636 $ 2,556 $ 1,959 $ 2,414 $ 915 $ 4,911 $ 1,059 $ 15,450 100.0%
========== ========== ========== ========== ======== ========== ========== =========== =========
The amortized cost of residential mortgage loans by credit quality
indicator and vintage year was as follows at December 31, 2021:
Revolving % of
Credit Quality Indicator 2021 2020 2019 2018 2017 Prior Loans Total Total
------------------------ -------- -------- -------- -------- -------- ---------- --------- ---------- --------
(Dollars in millions)
Performance indicators:
Performing............... $ 277 $ 200 $ 811 $ 470 $ 194 $ 7,036 $ -- $ 8,988 95.6%
Nonperforming (1)........ -- 3 46 15 1 353 -- 418 4.4
-------- -------- -------- -------- -------- ---------- ------- ---------- --------
Total.................. $ 277 $ 203 $ 857 $ 485 $ 195 $ 7,389 $ -- $ 9,406 100.0%
======== ======== ======== ======== ======== ========== ======= ========== ========
--------
(1)Includes residential mortgage loans in process of foreclosure of $69 million
and $102 million at December 31, 2021 and 2020, respectively.
LTV ratios compare the unpaid principal balance of the loan to the
estimated fair value of the underlying collateral. The amortized cost of
commercial and agricultural mortgage loans with an LTV ratio in excess of
100% was $680 million, or 1% of total commercial and agricultural mortgage
loans at December 31, 2021.
MLIC-63
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
Past Due and Nonaccrual Mortgage Loans
The Company has a high quality, well performing mortgage loan portfolio,
with 99% of all mortgage loans classified as performing at both December 31,
2021 and 2020. The Company defines delinquency consistent with industry
practice, when mortgage loans are past due more than two or more months, as
applicable, by portfolio segment. The past due and nonaccrual mortgage loans
at amortized cost, prior to ACL, by portfolio segment, were as follows:
Greater than 90 Days Past Due and
Past Due Still Accruing Interest Nonaccrual
----------------------------------- ----------------------------------- -----------------------------------
Portfolio Segment December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020
----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(In millions)
Commercial...... $ -- $ -- $-- $-- $146 $ 293
Agricultural.... 124 251 16 20 225 261
Residential..... 418 516 -- 54 418 503
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
Total......... $542 $767 $16 $74 $789 $1,057
================= ================= ================= ================= ================= =================
The amortized cost for nonaccrual commercial, agricultural and residential
mortgage loans at beginning of year 2020 was $167 million, $137 million and
$377 million, respectively. The amortized cost for nonaccrual commercial
mortgage loans with no ACL was $0 and $156 million at December 31, 2021 and
2020, respectively. The amortized cost for nonaccrual agricultural mortgage
loans with no ACL was $134 million and $173 million at December 31, 2021 and
2020, respectively. There were no nonaccrual residential mortgage loans
without an ACL at either December 31, 2021 or 2020.
Purchased Investments with Credit Deterioration
Investments that, as of the date of acquisition, have experienced a
more-than-insignificant deterioration in credit quality since origination
are classified as PCD. The amortized cost for PCD investments is the
purchase price plus an ACL for the initial estimate of expected lifetime
credit losses established upon purchase. Subsequent changes in the ACL on
PCD investments are recognized in earnings and are reported in net
investment gains (losses). The non-credit discount or premium is accreted or
amortized to net investment income on an effective yield basis.
The following table reconciles the contractual principal to the purchase
price of PCD investments:
For the Year Ended December 31, 2021
---------------------------------------------
Non-Credit
Contractual ACL at (Discount) Purchase
Principal Acquisition Premium Price
----------- ----------- ---------- ----------
(In millions)
PCD residential mortgage loans. $ 514 $ (3) $ 32 $ 543
Prior to the adoption of credit loss guidance for the recognition of credit
losses on financial instruments, the Company applied applicable guidance for
investments acquired with evidence of credit quality deterioration since
origination, known as PCI investments. The Company's PCI investments had an
outstanding principal balance of $3.2 billion at December 31, 2019, which
represents the contractually required principal and accrued interest payments
whether or not currently due and a carrying value (estimated fair value of
the investments plus accrued interest) of $2.7 billion at December 31, 2019.
Accretion of accretable yield on PCI investments recognized in net investment
income was $170 million for the year ended December 31, 2019.
MLIC-64
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
Real Estate and Real Estate Joint Ventures
The Company's real estate investment portfolio is diversified by property
type, geography and income stream, including income from operating leases,
operating income and equity in earnings from equity method real estate joint
ventures. Real estate investments, by income type, as well as income earned,
were as follows at and for the periods indicated:
December 31, For the Years Ended December 31,
--------------------------- ------------------------------------
2021 2020 2021 2020 2019
------------- ------------- ----------- ----------- -----------
Income Type Carrying Value Income
----------- --------------------------- ------------------------------------
(In millions)
Leased real estate investments..................... $ 1,934 $ 1,965 $ 209 $ 188 $ 165
Other real estate investments...................... 473 418 186 127 174
Real estate joint ventures......................... 5,466 5,095 180 (59) 62
------------- ------------- ----------- ----------- -----------
Total real estate and real estate joint ventures. $ 7,873 $ 7,478 $ 575 $ 256 $ 401
============= ============= =========== =========== ===========
The carrying value of real estate investments acquired through foreclosure
was $180 million and $18 million at December 31, 2021 and 2020, respectively.
Depreciation expense on real estate investments was $86 million, $73 million
and $62 million for the years ended December 31, 2021, 2020 and 2019,
respectively. Real estate investments were net of accumulated depreciation of
$581 million and $789 million at December 31, 2021 and 2020, respectively.
Leases
Leased Real Estate Investments -- Operating Leases
The Company, as lessor, leases investment real estate, principally
commercial real estate for office and retail use, through a variety of
operating lease arrangements, which typically include tenant reimbursement for
property operating costs and options to renew or extend the lease. In some
circumstances, leases may include an option for the lessee to purchase the
property. In addition, certain leases of retail space may stipulate that a
portion of the income earned is contingent upon the level of the tenants'
revenues. The Company has elected a practical expedient of not separating
non-lease components related to reimbursement of property operating costs from
associated lease components. These property operating costs have the same
timing and pattern of transfer as the related lease component, because they
are incurred over the same period of time as the operating lease. Therefore,
the combined component is accounted for as a single operating lease. Risk is
managed through lessee credit analysis, property type diversification, and
geographic diversification. Leased real estate investments and income earned,
by property type, were as follows at and for the periods indicated:
December 31, For the Years Ended December 31,
--------------------------- -----------------------------------
2021 2020 2021 2020 2019
------------- ------------- ----------- ----------- -----------
Property Type Carrying Value Income
------------- --------------------------- -----------------------------------
(In millions)
Leased real estate investments:
Office................................... $ 782 $ 661 $ 73 $ 31 $ 49
Apartment................................ 506 516 40 40 3
Retail................................... 363 498 44 66 70
Industrial............................... 260 258 52 50 42
Land..................................... 23 23 -- 1 --
Other.................................... -- 9 -- -- 1
------------- ------------- ----------- ----------- -----------
Total leased real estate investments... $ 1,934 $ 1,965 $ 209 $ 188 $ 165
============= ============= =========== =========== ===========
Future contractual receipts under operating leases at December 31, 2021
were $141 million in 2022, $140 million in 2023, $122 million in 2024, $109
million in 2025, $93 million in 2026, $243 million thereafter and, in total,
were $848 million.
MLIC-65
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
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.
Investment in leveraged and direct financing leases consisted of the
following at:
December 31, 2021 December 31, 2020
------------------------ ------------------------
Direct Direct
Leveraged Financing Leveraged Financing
Leases Leases Leases Leases
----------- ----------- ----------- -----------
(In millions)
Lease receivables, net (1)......... $ 542 $ 141 $ 597 $ 210
Estimated residual values.......... 560 39 573 42
----------- ----------- ----------- -----------
Subtotal......................... 1,102 180 1,170 252
Unearned income.................... (284) (42) (318) (74)
----------- ----------- ----------- -----------
Investment in leases, before ACL. 818 138 852 178
ACL................................ (31) (1) (36) (2)
----------- ----------- ----------- -----------
Investment in leases, net of ACL. $ 787 $ 137 $ 816 $ 176
=========== =========== =========== ===========
--------
(1) Future contractual receipts under direct financing leases at December 31,
2021 were $18 million in 2022, $18 million in 2023, $18 million in 2024,
$18 million in 2025, $16 million in 2026, $53 million thereafter and, in
total, were $141 million.
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. For lease
receivables, the primary credit quality indicator is whether the lease
receivable is performing or nonperforming, which is assessed monthly. The
Company generally defines nonperforming lease receivables as those that are
90 days or more past due. At both December 31, 2021 and 2020, all lease
receivables were performing.
The deferred income tax liability related to leveraged leases was
$272 million and $287 million at December 31, 2021 and 2020, respectively.
The components of income from investment in leveraged and direct financing
leases, excluding net investment gains (losses), were as follows:
For the Years Ended December 31,
--------------------------------------------------------------
2021 2020 2019
-------------------- -------------------- --------------------
Direct Direct Direct
Leveraged Financing Leveraged Financing Leveraged Financing
Leases Leases Leases Leases Leases Leases
---------- --------- ---------- --------- ---------- ---------
(In millions)
Lease investment income...................... $ 34 $ 11 $ 36 $ 11 $ 37 $ 12
Less: Income tax expense..................... 7 2 8 2 8 3
---------- --------- ---------- --------- ---------- ---------
Lease investment income, net of income tax. $ 27 $ 9 $ 28 $ 9 $ 29 $ 9
========== ========= ========== ========= ========== =========
MLIC-66
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
After the adoption of credit loss guidance on January 1, 2020, the Company
records an allowance for expected lifetime credit loss in earnings within
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.
During the year ended December 31, 2019, prior to the adoption of credit
loss guidance on January 1, 2020, lease impairment losses were recognized in
earnings within investment gains (losses) as incurred. Under the incurred
loss model, if all amounts due under the lease agreement would not be
collected based on current information and events, an impairment loss was
recognized in earnings. The impairment loss was recorded as a reduction of
the investment in lease and within net investment gains (losses).
Other Invested Assets
Other invested assets is comprised primarily of freestanding derivatives
with positive estimated fair values (see Note 8), affiliated investments (see
"-- Related Party Investment Transactions"), tax credit and renewable energy
partnerships, annuities funding structured settlement claims (see Note 1),
leveraged and direct financing leases (see "-- Leases -- Leveraged and Direct
Financing Leases"), operating joint ventures (see Note 1) and FHLB common
stock (see "-- Invested Assets on Deposit and Pledged as Collateral") FVO
Securities and equity securities. See "-- Related Party Investment
Transactions" for information regarding affiliated investments.
Tax Credit Partnerships
The carrying value of tax credit partnerships was $937 million and
$1.1 billion at December 31, 2021 and 2020, respectively. Losses from tax
credit partnerships included within net investment income were $197 million,
$225 million and $240 million for the years ended December 31, 2021, 2020 and
2019, respectively.
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.
December 31,
-------------------------------------------------------------------------------
2021 2020
--------------------------------------- ---------------------------------------
Net Unrealized Estimated Net Unrealized Estimated
Security Type Cost Gains (Losses) (1) Fair Value Cost Gains (Losses) (1) Fair Value
------------- --------- ------------------ ---------- --------- ------------------ ----------
(In millions)
FVO Securities................... $ 598 $ 250 $ 848 $ 544 $ 144 $ 688
========= ======== ========= ========= ========= =========
Equity securities
Common stock................... $ 88 $ 32 $ 120 $ 291 $ (73) $ 218
Non-redeemable preferred stock. 107 (1) 106 189 2 191
--------- -------- --------- --------- --------- ---------
Total equity securities...... $ 195 $ 31 $ 226 $ 480 $ (71) $ 409
========= ======== ========= ========= ========= =========
--------
(1)Represents cumulative changes in estimated fair value, recognized in
earnings, and not in OCI.
MLIC-67
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
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 $4.7 billion and $6.8 billion, principally at estimated fair value, at
December 31, 2021 and 2020, respectively.
Net Unrealized Investment Gains (Losses)
Unrealized investment gains (losses) on fixed maturity securities AFS and
derivatives and the effect on policyholder liabilities, DAC, VOBA and DSI 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:
December 31,
----------------------------------------
2021 2020 2019
------------ ------------ ------------
(In millions)
Fixed maturity securities AFS........... $ 17,586 $ 24,954 $ 15,177
Derivatives............................. 2,370 2,259 2,043
Other................................... 377 235 210
------------ ------------ ------------
Subtotal............................... 20,333 27,448 17,430
------------ ------------ ------------
Amounts allocated from:
Policyholder liabilities................ (5,962) (10,572) (3,141)
DAC, VOBA and DSI....................... (1,357) (1,511) (1,051)
------------ ------------ ------------
Subtotal............................... (7,319) (12,083) (4,192)
Deferred income tax benefit (expense)... (2,657) (3,190) (2,742)
------------ ------------ ------------
Net unrealized investment gains (losses) $ 10,357 $ 12,175 $ 10,496
============ ============ ============
The changes in net unrealized investment gains (losses) were as follows:
Years Ended December 31,
---------------------------------------
2021 2020 2019
------------ ------------ -----------
(In millions)
Balance at January 1,..................................................... $ 12,175 $ 10,496 $ 3,897
Cumulative effects of changes in accounting principles, net of income tax. -- -- 17
Unrealized investment gains (losses) during the year...................... (7,115) 10,018 11,520
Unrealized investment gains (losses) relating to:
Policyholder liabilities.................................................. 4,610 (7,431) (2,708)
DAC, VOBA and DSI......................................................... 154 (460) (480)
Deferred income tax benefit (expense)..................................... 533 (448) (1,750)
------------ ------------ -----------
Balance at December 31,................................................... $ 10,357 $ 12,175 $ 10,496
============ ============ ===========
Change in net unrealized investment gains (losses)........................ $ (1,818) $ 1,679 $ 6,599
============ ============ ===========
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
December 31, 2021 and 2020.
MLIC-68
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
Securities Lending Transactions and Repurchase Agreements
Securities, Collateral and Reinvestment Portfolio
A summary of these transactions and agreements accounted for as secured
borrowings were as follows:
December 31,
----------------------------------------------------------------------------------------------
2021 2020
----------------------------------------------- ----------------------------------------------
Securities (1) Securities (1)
------------------ ------------------
Cash Cash
Collateral Reinvestment Collateral Reinvestment
Received from Portfolio at Received from Portfolio at
Estimated Fair Counterparties Estimated Estimated Counterparties Estimated
Agreement Type Value (2) Fair Value Fair Value (2) Fair Value
-------------- ------------------ -------------- ------------- ------------------ -------------- ------------
(In millions)
Securities lending.... $ 14,689 $ 14,977 $ 15,116 $ 13,289 $ 13,566 $ 13,739
Repurchase agreements. $ 3,416 $ 3,325 $ 3,357 $ 3,276 $ 3,210 $ 3,251
--------
(1)These securities are included within fixed maturity securities AFS and
short-term investments.
(2)The liability for cash collateral is included within payables for collateral
under securities loaned and other transactions.
Contractual Maturities
Contractual maturities of these transactions and agreements accounted for
as secured borrowings were as follows:
December 31,
---------------------------------------------------------------------------------
2021 2020
---------------------------------------- ----------------------------------------
Remaining Maturities Remaining Maturities
---------------------------------------- ----------------------------------------
Over 1 Over 6 Over 1 Over 6
Month Months Month Months
1 Month to 6 to 1 1 Month to 6 to 1
Security Type Open (1) or Less Months Year Total Open (1) or Less Months Year Total
------------- -------- ------- ------- ------ -------- -------- ------- ------- ------ --------
(In millions)
Cash collateral liability by security
type:
Securities lending:
U.S. government and agency........ $ 3,996 $ 5,279 $ 5,702 $ -- $ 14,977 $ 1,705 $ 8,768 $ 3,093 $ -- $ 13,566
Repurchase agreements:
U.S. government and agency........ $ -- $ 3,325 $ -- $ -- $ 3,325 $ -- $ 3,210 $ -- $ -- $ 3,210
--------
(1)The related security could be returned to the Company on the next business
day, which would require the Company to immediately return the cash
collateral.
If the Company is required to return significant amounts of cash collateral
on short notice and is forced to sell investments to meet the return
obligation, it may have difficulty selling such collateral that is invested in
a timely manner, be forced to sell investments in a volatile or illiquid market
for less than what otherwise would have been realized under normal market
conditions, or both.
The securities lending and repurchase agreements reinvestment portfolios
consist principally of high quality, liquid, publicly-traded fixed maturity
securities AFS, short-term investments, cash equivalents or cash. If the
securities or the reinvestment portfolio become less liquid, liquidity
resources within the general account are available to meet any potential cash
demands when securities are put back by the counterparty.
MLIC-69
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
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:
December 31,
-----------------------
2021 2020
----------- -----------
(In millions)
Invested assets on deposit (regulatory deposits)............. $ 118 $ 123
Invested assets pledged as collateral (1).................... 20,390 22,405
----------- -----------
Total invested assets on deposit and pledged as collateral. $ 20,508 $ 22,528
=========== ===========
--------
(1) The Company has pledged invested assets in connection with various
agreements and transactions, including funding agreements (see Note 3),
derivative transactions (see Note 8) and secured debt (see Note 11).
See "-- Securities Lending Transactions and Repurchase Agreements" for
information regarding securities supporting securities lending transactions and
repurchase agreements and Note 6 for information regarding investments
designated to the closed block. In addition, the Company's investment in FHLB
common stock, included within other invested assets, which is considered
restricted until redeemed by the issuers, was $718 million and $765 million, at
redemption value, at December 31, 2021 and 2020, respectively.
Collectively Significant Equity Method Investments
The Company holds investments in real estate joint ventures, real estate
funds and other limited partnership interests consisting of private equity
funds, hedge funds, real estate joint ventures and real estate funds. The
portion of these investments accounted for under the equity method had a
carrying value of $16.1 billion at December 31, 2021. The Company's maximum
exposure to loss related to these equity method investments is limited to the
carrying value of these investments plus unfunded commitments of $3.3 billion
at December 31, 2021. Except for certain real estate joint ventures and certain
funds, the Company's investments in its remaining real estate funds and other
limited partnership interests are generally of a passive nature in that the
Company does not participate in the management of the entities.
As described in Note 1, the Company generally recognizes its share of
earnings in its equity method investments within net investment income using a
three-month lag in instances where the investee's financial information is not
sufficiently timely or when the investee's reporting period differs from the
Company's reporting period. Aggregate net investment income from these equity
method investments exceeded 10% of the Company's consolidated pre-tax income
(loss) for the three most recent annual periods.
The following aggregated summarized financial data reflects the latest
available financial information and does not represent the Company's
proportionate share of the assets, liabilities, or earnings of such entities.
Aggregate total assets of these entities totaled $1.0 trillion and
$593.9 billion at December 31, 2021 and 2020, respectively. Aggregate total
liabilities of these entities totaled $126.4 billion and $80.5 billion at
December 31, 2021 and 2020, respectively. Aggregate net income (loss) of these
entities totaled $218.6 billion, $34.4 billion and $40.9 billion for the years
ended December 31, 2021, 2020 and 2019, respectively. Aggregate net
income (loss) from the underlying entities in which the Company invests is
primarily comprised of investment income, including recurring investment income
and realized and unrealized investment gains (losses).
Variable Interest Entities
The Company has invested in legal entities that are VIEs. In certain
instances, the Company holds both the power to direct the most significant
activities of the entity, as well as an economic interest in the entity and, as
such, is deemed to be the primary beneficiary or consolidator of the entity.
The determination of the VIE's primary beneficiary requires an evaluation of
the contractual and implied rights and obligations associated with each party's
relationship with or involvement in the entity.
MLIC-70
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
Consolidated VIEs
Creditors or beneficial interest holders of VIEs where the Company is the
primary beneficiary have no recourse to the general credit of the Company, as
the Company's obligation to the VIEs is limited to the amount of its
committed investment.
The following table presents the total assets and total liabilities
relating to investment related VIEs for which the Company has concluded that
it is the primary beneficiary and which are consolidated at:
December 31,
---------------------------------------------
2021 2020
---------------------- ----------------------
Total Total Total Total
Asset Type Assets Liabilities Assets Liabilities
---------- ---------- ----------- ---------- -----------
(In millions)
Real estate joint ventures (1)........................................ $ 1,094 $ -- $ 1,435 $ --
Investment funds (primarily mortgage loans) (2)....................... 226 -- 201 --
Other (primarily other invested assets and cash and cash equivalents). 101 -- 4 5
Renewable energy partnership (primarily other invested assets)........ 79 -- 87 --
---------- ----------- ---------- -----------
Total............................................................... $ 1,500 $ -- $ 1,727 $ 5
========== =========== ========== ===========
--------
(1) The Company's investment in affiliated real estate joint ventures was $1.0
billion and $1.3 billion at December 31, 2021 and 2020, respectively. Other
affiliates' investments in these affiliated real estate joint ventures were
$112 million and $130 million at December 31, 2021 and 2020, respectively.
(2) The Company's investment in affiliated investment funds was $187 million
and $164 million, at December 31, 2021 and 2020, respectively. Other
affiliates' investments in these affiliated investment funds were $39
million and $37 million at December 31, 2021 and 2020, 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:
December 31,
-------------------------------------------------------
2021 2020
--------------------------- ---------------------------
Maximum Maximum
Carrying Exposure Carrying Exposure
Asset Type Amount to Loss (1) Amount to Loss (1)
---------- ------------- ------------- ------------- -------------
(In millions)
Fixed maturity securities AFS (2)... $ 43,653 $ 43,653 $ 43,708 $ 43,708
Other limited partnership interests. 8,005 11,057 5,247 8,589
Other invested assets............... 1,605 1,815 1,436 1,517
Real estate joint ventures.......... 97 100 18 21
------------- ------------- ------------- -------------
Total............................. $ 53,360 $ 56,625 $ 50,409 $ 53,835
============= ============= ============= =============
--------
(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 $5 million and $3 million at December 31,
2021 and 2020, respectively. Such a maximum loss would be expected to occur
only upon bankruptcy of the issuer or investee.
MLIC-71
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
(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 16, the Company makes commitments to fund partnership
investments in the normal course of business. Excluding these commitments,
the Company did not provide financial or other support to investees
designated as VIEs for each of the years ended December 31, 2021, 2020 and
2019.
The Company securitizes certain residential mortgage loans and acquires an
interest in the related RMBS issued. While the Company has a variable
interest in the issuer of the securities, it is not the primary beneficiary
of the issuer of the securities since it does not have any rights to remove
the servicer or veto rights over the servicer's actions. The resulting gains
(losses) from the securitizations are included within net investment gains
(losses). The estimated fair value of the related RMBS acquired in connection
with the securitizations is included in the carrying amount and maximum
exposure to loss for Structured Products presented in the table above.
The Company did not securitize any loans during 2021. The carrying value
and the estimated fair value of residential mortgage loans securitized during
the year ended December 31, 2020 were $308 million and $313 million,
respectively. Gains on securitizations were $5 million and $24 million for
the years ended December 31, 2020 and 2019, respectively, which are included
within net investment gains (losses). The estimated fair value of RMBS
acquired in connection with these securitizations was $0 and $43 million at
December 31, 2021 and 2020, respectively.
See Note 9 for information on how the estimated fair value of mortgage
loans and RMBS is determined, the valuation approaches and key inputs, their
placement in the fair value hierarchy, and for certain RMBS, quantitative
information about the significant unobservable inputs and the sensitivity of
their estimated fair value to changes in those inputs.
Net Investment Income
The composition of net investment income by asset type was as follows:
For the Years Ended December 31,
-----------------------------------------
Asset Type 2021 2020 2019
---------- ------------- ------------- -------------
(In millions)
Fixed maturity securities AFS..................... $ 6,101 $ 6,535 $ 7,015
Equity securities................................. 16 25 35
Mortgage loans.................................... 2,661 2,836 3,147
Policy loans...................................... 292 305 307
Real estate and real estate joint ventures........ 575 256 401
Other limited partnership interests............... 3,161 633 545
Cash, cash equivalents and short-term investments. 11 77 183
FVO Securities.................................... 102 48 74
Operating joint venture........................... 65 80 69
Other............................................. 142 154 221
------------- ------------- -------------
Subtotal investment income...................... 13,126 10,949 11,997
Less: Investment expenses......................... 640 699 1,024
------------- ------------- -------------
Net investment income........................... $ 12,486 $ 10,250 $ 10,973
============= ============= =============
Net investment income included realized and unrealized gains (losses),
recognized in earnings, of $190 million,$96 million, and $108 million for the
years ended December 31, 2021, 2020 and 2019, respectively. The amount
includes realized gains (losses) on sales and disposals, primarily related to
FVO Securities, of $22 million, $2 million and $20 million for the years
ended December 31, 2021, 2020 and 2019, respectively. The amount also
includes unrealized gains (losses), representing changes in estimated fair
value, recognized in earnings, primarily related to FVO Securities, of
$168 million, $94 million, and $88 million for the years ended December 31,
2021, 2020 and 2019, respectively.
MLIC-72
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
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 $77 million, $46 million
and $74 million for the years ended December 31, 2021, 2020 and 2019,
respectively.
See "-- Related Party Investment Transactions" for discussion of affiliated
net investment income and investment expenses.
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
$3.2 billion, $427 million and $458 million for the years ended December 31,
2021, 2020 and 2019, respectively.
Net Investment Gains (Losses)
Net Investment Gains (Losses) by Asset Type and Transaction Type
The composition of net investment gains (losses) by asset type and
transaction type was as follows:
Years Ended December 31,
--------------------------
Asset Type 2021 2020 2019
---------- -------- ------ --------
(In millions)
Fixed maturity securities AFS............................................................... $ (49) $ (58) $ 12
Equity securities........................................................................... 40 (76) 50
Mortgage loans.............................................................................. (34) (188) (13)
Real estate and real estate joint ventures (excluding changes in estimated fair value)...... 568 7 396
Other limited partnership interests (excluding changes in estimated fair value)............. (15) (12) 3
Other gains (losses)........................................................................ 109 293 (46)
-------- ------ --------
Subtotal.................................................................................. 619 (34) 402
Change in estimated fair value of other limited partnership interests and real estate joint
ventures................................................................................... 45 (5) (15)
Non-investment portfolio gains (losses)..................................................... (12) (34) (41)
-------- ------ --------
Subtotal.................................................................................. 33 (39) (56)
-------- ------ --------
Net investment gains (losses)........................................................... $ 652 $ (73) $ 346
======== ====== ========
Transaction Type
----------------
Realized gains (losses) on investments sold or disposed..................................... $ 579 $ 306 $ 517
Impairment (losses)......................................................................... (24) (50) (142)
Recognized gains (losses):
Change in allowance for credit loss recognized in earnings................................ (41) (204) (10)
Unrealized net gains (losses) recognized in earnings...................................... 150 (91) 22
-------- ------ --------
Total recognized gains (losses)......................................................... 664 (39) 387
-------- ------ --------
Non-investment portfolio gains (losses)..................................................... (12) (34) (41)
-------- ------ --------
Net investment gains (losses)........................................................... $ 652 $ (73) $ 346
======== ====== ========
Net realized investment gains (losses) of $601 million, $308 million and
$537 million for the years ended December 31, 2021, 2020 and 2019,
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 $10 million, ($80) million and $31 million for the years ended
December 31, 2021, 2020 and 2019, respectively.
Other gains (losses) included $91 million and $128 million reclassified from
AOCI to earnings due to the sale of certain investments that were hedged in
qualifying cash flow hedges for the years ended December 31, 2021 and 2020,
respectively.
MLIC-73
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
Other gains (losses) also included a leveraged lease gain of $87 million for
the year ended December 31, 2020; and tax credit partnership impairment
(losses) of ($92) million, and a renewable energy partnership disposal gain of
$46 million for the year ended December 31, 2019.
See "-- Related Party Investment Transactions" for discussion of affiliated
net investment gains (losses) related to transfers of invested assets to
affiliates.
Net investment gains (losses) includes gains (losses) from foreign currency
transactions of $62 million, ($19) million and ($57) million for the years
ended December 31, 2021, 2020 and 2019, respectively.
Fixed Maturity Securities AFS and Equity Securities -- Composition of Net
Investment Gains (Losses)
The composition of net investment gains (losses) for these securities is as
follows:
For the Years Ended December 31,
-------------------------------------
Fixed Maturity Securities AFS 2021 2020 2019
----------------------------- ----------- ----------- -----------
(In millions)
Proceeds................................................................... $ 27,587 $ 20,453 $ 32,175
=========== =========== ===========
Gross investment gains..................................................... $ 232 $ 419 $ 392
Gross investment (losses).................................................. (256) (376) (341)
----------- ----------- -----------
Realized gains (losses) on sales and disposals........................... (24) 43 51
Net credit loss (provision) release (change in ACL recognized in earnings). (1) (51) --
Impairment (loss) (1), (2)................................................. (24) (50) (39)
----------- ----------- -----------
Net credit loss (provision) release and impairment (loss)................ (25) (101) (39)
----------- ----------- -----------
Net investment gains (losses).......................................... $ (49) $ (58) $ 12
=========== =========== ===========
Equity Securities
-----------------
Realized gains (losses) on sales and disposals............................. $ (61) $ 10 $ 12
Unrealized net gains (losses) recognized in earnings....................... 101 (86) 38
----------- ----------- -----------
Net investment gains (losses).............................................. $ 40 $ (76) $ 50
=========== =========== ===========
--------
(1) Impairment (loss) by sector for industrial corporate, consumer corporate,
foreign government securities and RMBS for the year ended December 31, 2019
were ($19) million, ($16) million, ($2) million, and ($2) million,
respectively. Due to the adoption of credit loss guidance on January 1,
2020, prior period OTTI (loss) is presented as impairment (loss).
(2) After adoption of new guidance on January 1, 2020, impairment (loss) was
comprised of intent-to-sell and direct write down losses; prior to
January 1, 2020, it was comprised of OTTI losses and intent-to-sell losses.
Related Party Investment Transactions
The Company transfers invested assets primarily consisting of fixed maturity
securities AFS, mortgage loans and real estate and real estate joint ventures
to and from affiliates. Invested assets transferred were as follows:
Years Ended December 31,
----------------------------
2021 2020 2019
------- ----- -----
(In millions)
Estimated fair value of invested assets transferred to affiliates... $ 795 $393 $ --
Amortized cost of invested assets transferred to affiliates......... $ 776 $379 $ --
Net investment gains (losses) recognized on transfers............... $ 19 $ 14 $ --
Estimated fair value of invested assets transferred from affiliates. $1,346 $381 $ 46
MLIC-74
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
7. Investments (continued)
Recurring related party investments and related net investment income were as
follows at and for the periods ended:
December 31, Years Ended December 31,
----------------- ------------------------
2021 2020 2021 2020 2019
-------- -------- ----- ----- -----
Investment Type/Balance Sheet
Category Related Party Carrying Value Net Investment Income
----------------------------- ----------------------------------- ----------------- ------------------------
(In millions)
Affiliated investments (1)... MetLife, Inc. $ 1,399 $ 1,643 $ 31 $ 35 $ 34
Affiliated investments (2)... American Life Insurance Company 100 100 2 3 3
Metropolitan Property and Casualty
Affiliated investments (3)... Insurance Company -- 315 1 6 11
-------- -------- ----- ----- -----
Other invested assets........ $ 1,499 $ 2,058 $ 34 $ 44 $ 48
======== ======== ===== ===== =====
--------
(1) Represents an investment in affiliated senior unsecured notes which have
maturity dates from July 2023 to December 2031 and bear interest, payable
semi-annually, at rates per annum ranging from 1.60% to 1.85%. In July
2021, (Yen)38.4 billion (the equivalent of $351 million) of 2.97%
affiliated senior unsecured notes matured and were refinanced with the
following senior unsecured notes: (i) (Yen)7.8 billion 1.61% due July 2026,
(ii) (Yen)11.5 billion 1.76% due July 2028 and (iii) (Yen)19.1 billion
1.85% due July 2031. In December 2021, (Yen)51.0 billion (the equivalent of
$467 million) of 3.14% affiliated senior unsecured notes matured of which
(Yen)40.9 billion (the equivalent of $372 million) were refinanced with the
following senior unsecured notes: (i) (Yen)19.1 billion 1.72% due December
2028, (ii) (Yen)21.8 billion 1.85% due December 2031, and, of which
(Yen)10.1 billion (the equivalent of $95 million) were paid off at maturity.
(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%.
(3) Represents an investment in affiliated preferred stock which was redeemed
at par plus accrued dividends in April 2021.
The Company incurred investment advisory charges from an affiliate of
$292 million, $280 million and $299 million for the years ended December 31,
2021, 2020, and 2019, respectively.
See "-- Variable Interest Entities" for information on investments in
affiliated real estate joint ventures and affiliated investment funds.
See Note 5 "-- Related Party Reinsurance Transactions" for information
about affiliated funds withheld.
8. Derivatives
Accounting for Derivatives
See Note 1 for a description of the Company's accounting policies for
derivatives and Note 9 for information about the fair value hierarchy for
derivatives.
Derivative Strategies
The Company is exposed to various risks relating to its ongoing business
operations, including interest rate, foreign currency exchange rate, credit and
equity market. The Company uses a variety of strategies to manage these risks,
including the use of derivatives.
Derivatives are financial instruments with values derived from interest
rates, foreign currency exchange rates, credit spreads and/or other financial
indices. Derivatives may be exchange-traded or contracted in the
over-the-counter ("OTC") market. Certain of the Company's OTC derivatives are
cleared and settled through central clearing counterparties ("OTC-cleared"),
while others are bilateral contracts between two
counterparties ("OTC-bilateral"). The types of derivatives the Company uses
include swaps, forwards, futures and option contracts. To a lesser extent, the
Company uses credit default swaps and structured interest rate swaps to
synthetically replicate investment risks and returns which are not readily
available in the cash markets.
MLIC-75
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
8. 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
securities AFS. Structured interest rate swaps are included in interest rate
swaps and are not designated as hedging instruments.
Interest rate total return swaps are swaps whereby the Company agrees with
another party to exchange, at specified intervals, the difference between the
economic risk and reward of an asset or a market index and a benchmark interest
rate, calculated by reference to an agreed notional amount. No cash is
exchanged at the outset of the contract. Cash is paid and received over the
life of the contract based on the terms of the swap. These transactions are
entered into pursuant to master agreements that provide for a single net
payment to be made by the counterparty at each due date. Interest rate total
return swaps are used by the Company to reduce market risks from changes in
interest rates and to alter interest rate exposure arising from mismatches
between assets and liabilities (duration mismatches). The Company utilizes
interest rate total return swaps in nonqualifying hedging relationships.
The Company purchases interest rate caps primarily to protect its floating
rate liabilities against rises in interest rates above a specified level, and
against interest rate exposure arising from mismatches between assets and
liabilities, and interest rate floors primarily to protect its minimum rate
guarantee liabilities against declines in interest rates below a specified
level. In certain instances, the Company locks in the economic impact of
existing purchased caps and floors by entering into offsetting written caps and
floors. The Company utilizes interest rate caps and floors in nonqualifying
hedging relationships.
In exchange-traded interest rate (Treasury and swap) futures transactions,
the Company agrees to purchase or sell a specified number of contracts, the
value of which is determined by the different classes of interest rate
securities, to post variation margin on a daily basis in an amount equal to the
difference in the daily market values of those contracts and to pledge initial
margin based on futures exchange requirements. The Company enters into
exchange-traded futures with regulated futures commission merchants that are
members of the exchange. Exchange-traded interest rate (Treasury and swap)
futures are used primarily to hedge mismatches between the duration of assets
in a portfolio and the duration of liabilities supported by those assets, to
hedge against changes in value of securities the Company owns or anticipates
acquiring, to hedge against changes in interest rates on anticipated liability
issuances by replicating Treasury or swap curve performance, and to hedge
minimum guarantees embedded in certain variable annuity products issued by the
Company. The Company utilizes exchange-traded interest rate futures in
nonqualifying hedging relationships.
Swaptions are used by the Company to hedge interest rate risk associated with
the Company's long-term liabilities and invested assets. A swaption is an
option to enter into a swap with a forward starting effective date. In certain
instances, the Company locks in the economic impact of existing purchased
swaptions by entering into offsetting written swaptions. The Company pays a
premium for purchased swaptions and receives a premium for written swaptions.
The Company utilizes swaptions in nonqualifying hedging relationships.
Swaptions are included in interest rate options.
The Company enters into interest rate forwards to buy and sell securities.
The price is agreed upon at the time of the contract and payment for such a
contract is made at a specified future date. The Company utilizes interest rate
forwards in cash flow and nonqualifying hedging relationships.
A synthetic GIC is a contract that simulates the performance of a traditional
GIC through the use of financial instruments. The contractholder owns the
underlying assets, and the Company provides a guarantee (or "wrap") on the
participant funds for an annual risk charge. The Company's maximum exposure to
loss on synthetic GICs is the notional amount, in the event the
MLIC-76
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
8. Derivatives (continued)
values of all of the underlying assets were reduced to zero. The Company's risk
is substantially lower due to contractual provisions that limit the portfolio
to high quality assets, which are pre-approved and monitored for compliance, as
well as the collection of risk charges. In addition, the crediting rates reset
periodically to amortize market value gains and losses over a period equal to
the duration of the wrapped portfolio, subject to a 0% floor. While plan
participants may transact at book value, contractholder withdrawals may only
occur immediately at market value, or at book value paid over a period of time
per contract provisions. Synthetic GICs are not designated as hedging
instruments.
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.
Credit Derivatives
The Company enters into purchased credit default swaps to hedge against
credit-related changes in the value of its investments. In a credit default
swap transaction, the Company agrees with another party to pay, at specified
intervals, a premium to hedge credit risk. If a credit event occurs, as defined
by the contract, the contract may be cash settled or it may be settled gross by
the delivery of par quantities of the referenced investment equal to the
specified swap notional amount in exchange for the payment of cash amounts by
the counterparty equal to the par value of the investment surrendered. Credit
events vary by type of issuer but typically include bankruptcy, failure to pay
debt obligations and involuntary restructuring for corporate obligors, as well
as repudiation, moratorium or governmental intervention for sovereign obligors.
In each case, payout on a credit default swap is triggered only after the
relevant third party, Credit Derivatives Determinations Committee determines
that a credit event has occurred. The Company utilizes credit default swaps in
nonqualifying hedging relationships.
The Company enters into written credit default swaps to synthetically create
credit investments that are either more expensive to acquire or otherwise
unavailable in the cash markets. These transactions are a combination of a
derivative and one or more cash instruments, such as U.S. government and
agency, or other fixed maturity securities AFS. These credit default swaps are
not designated as hedging instruments.
The Company enters into forwards to lock in the price to be paid for forward
purchases of certain securities. The price is agreed upon at the time of the
contract and payment for the contract is made at a specified future date. When
the primary purpose of entering into these transactions is to hedge against the
risk of changes in purchase price due to changes in credit spreads, the Company
designates these transactions as credit forwards. The Company utilizes credit
forwards in cash flow hedging relationships.
Equity Derivatives
The Company uses a variety of equity derivatives to reduce its exposure to
equity market risk, including equity index options, equity variance swaps,
exchange-traded equity futures and equity total return swaps.
Equity index options are used by the Company primarily to hedge minimum
guarantees embedded in certain variable annuity products issued by the Company.
To hedge against adverse changes in equity indices, the Company enters into
contracts to sell the underlying equity index within a limited time at a
contracted price. The contracts will be net settled in cash based on
differentials in the indices at the time of exercise and the strike price.
Certain of these contracts may also contain
MLIC-77
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
8. Derivatives (continued)
settlement provisions linked to interest rates. In certain instances, the
Company may enter into a combination of transactions to hedge adverse changes
in equity indices within a pre-determined range through the purchase and sale
of options. The Company utilizes equity index options in nonqualifying hedging
relationships.
Equity variance swaps are used by the Company primarily to hedge minimum
guarantees embedded in certain variable annuity products issued by the Company.
In an equity variance swap, the Company agrees with another party to exchange
amounts in the future, based on changes in equity volatility over a defined
period. The Company utilizes equity variance swaps in nonqualifying hedging
relationships.
In exchange-traded equity futures transactions, the Company agrees to
purchase or sell a specified number of contracts, the value of which is
determined by the different classes of equity securities, to post variation
margin on a daily basis in an amount equal to the difference in the daily
market values of those contracts and to pledge initial margin based on futures
exchange requirements. The Company enters into exchange-traded futures with
regulated futures commission merchants that are members of the exchange.
Exchange-traded equity futures are used primarily to hedge minimum guarantees
embedded in certain variable annuity products issued by the Company. The
Company utilizes exchange-traded equity futures in nonqualifying hedging
relationships.
In an equity total return swap, the Company agrees with another party to
exchange, at specified intervals, the difference between the economic risk and
reward of an asset or a market index and a benchmark interest rate, calculated
by reference to an agreed notional amount. No cash is exchanged at the outset
of the contract. Cash is paid and received over the life of the contract based
on the terms of the swap. The Company uses equity total return swaps to hedge
its equity market guarantees in certain of its insurance products. Equity total
return swaps can be used as hedges or to synthetically create investments. The
Company utilizes equity total return swaps in nonqualifying hedging
relationships.
MLIC-78
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
8. 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:
December 31,
-------------------------------------------------------------------
2021 2020
--------------------------------- ---------------------------------
Estimated Fair Value Estimated Fair Value
---------------------- ----------------------
Gross Gross
Notional Notional
Primary Underlying Risk Exposure Amount Assets Liabilities Amount Assets Liabilities
-------------------------------- ---------- --------- ------------ ---------- --------- ------------
(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges:
Interest rate swaps...... Interest rate $ 3,540 $ 2,163 $ 6 $ 3,175 $ 3,224 $ 4
Foreign currency swaps... Foreign currency exchange rate 764 8 22 1,049 5 76
---------- --------- --------- ---------- --------- ---------
Subtotal................ 4,304 2,171 28 4,224 3,229 80
---------- --------- --------- ---------- --------- ---------
Cash flow hedges:
Interest rate swaps...... Interest rate 4,079 4 1 4,400 14 --
Interest rate forwards... Interest rate 3,058 69 1 5,081 489 --
Foreign currency swaps... Foreign currency exchange rate 28,772 1,317 966 28,017 1,102 1,353
---------- --------- --------- ---------- --------- ---------
Subtotal................ 35,909 1,390 968 37,498 1,605 1,353
---------- --------- --------- ---------- --------- ---------
Total qualifying hedges. 40,213 3,561 996 41,722 4,834 1,433
---------- --------- --------- ---------- --------- ---------
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps...... Interest rate 21,565 3,206 59 30,512 3,041 7
Interest rate floors..... Interest rate 7,701 145 -- 12,701 350 --
Interest rate caps....... Interest rate 64,309 117 -- 40,104 13 --
Interest rate futures.... Interest rate 515 -- -- 406 -- --
Interest rate options.... Interest rate 9,703 364 -- 15,337 174 --
Interest rate forwards... Interest rate 265 -- 20 265 -- 9
Interest rate total
return swaps............ Interest rate 1,048 9 4 1,048 -- 59
Synthetic GICs........... Interest rate 11,307 -- -- 11,739 -- --
Foreign currency swaps... Foreign currency exchange rate 4,800 340 75 5,596 292 238
Foreign currency forwards Foreign currency exchange rate 1,902 11 13 1,236 9 18
Credit default swaps --
purchased............... Credit 956 12 8 886 8 9
Credit default swaps --
written................. Credit 6,074 111 12 6,961 126 --
Equity futures........... Equity market 1,751 5 -- 2,591 -- 16
Equity index options..... Equity market 26,800 714 166 19,601 459 189
Equity variance swaps.... Equity market 425 12 10 425 11 9
Equity total return swaps Equity market 2,148 11 46 2,542 1 274
---------- --------- --------- ---------- --------- ---------
Total non-designated or nonqualifying derivatives........ 161,269 5,057 413 151,950 4,484 828
---------- --------- --------- ---------- --------- ---------
Total.................................................... $ 201,482 $ 8,618 $ 1,409 $ 193,672 $ 9,318 $ 2,261
========== ========= ========= ========== ========= =========
Based on gross notional amounts, a substantial portion of the Company's
derivatives was not designated or did not qualify as part of a hedging
relationship at both December 31, 2021 and 2020. The Company's use of
derivatives includes (i) derivatives that serve as macro hedges of the
Company's exposure to various risks and that generally do not qualify for hedge
accounting due to the criteria required under the portfolio hedging rules;
(ii) derivatives that economically hedge insurance liabilities that contain
mortality or morbidity risk and that generally do not qualify for hedge
accounting because the lack of these risks in the derivatives cannot support an
expectation of a highly effective hedging relationship; (iii) derivatives that
economically hedge 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; 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.
MLIC-79
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
8. Derivatives (continued)
The Effects of Derivatives on the Consolidated Statements of Operations and
Comprehensive Income (Loss)
The following table presents the consolidated financial statement location
and amount of gain (loss) recognized on fair value, cash flow, nonqualifying
hedging relationships and embedded derivatives:
Year Ended December 31, 2021
-------------------------------------------------------------------
Interest
Net Net Credited to
Net Investment Derivative Policyholder Policyholder
Investment Gains Gains Benefits and Account
Income (Losses) (Losses) Claims Balances OCI
---------- ---------- ---------- ------------ ------------ --------
(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)..... $ 6 $ -- $ -- $ (455) $ -- N/A
Hedged items.......................................... (6) -- -- 405 -- N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)..... 49 -- -- -- -- N/A
Hedged items.......................................... (43) -- -- -- -- N/A
---------- ---------- ---------- ------------ ------------ --------
Subtotal............................................ 6 -- -- (50) -- N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI............. N/A N/A N/A N/A N/A $ (570)
Amount of gains (losses) reclassified from AOCI into
income............................................... 57 87 -- -- -- (144)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI............. N/A N/A N/A N/A N/A 600
Amount of gains (losses) reclassified from AOCI into
income............................................... 4 (229) -- -- -- 225
Foreign currency transaction gains (losses) on hedged
items................................................ -- 227 -- -- -- --
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI............. N/A N/A N/A N/A N/A --
Amount of gains (losses) reclassified from AOCI into
income............................................... -- -- -- -- -- --
-------- ------- -------- -------- --------- --------
Subtotal............................................ 61 85 -- -- -- 111
Gain (Loss) on Derivatives Not Designated or Not
Qualifying as Hedging Instruments:
Interest rate derivatives (1)......................... 2 -- (1,523) -- -- N/A
Foreign currency exchange rate derivatives (1)........ -- -- 264 -- -- N/A
Credit derivatives -- purchased (1)................... -- -- 2 -- -- N/A
Credit derivatives -- written (1)..................... -- -- 23 -- -- N/A
Equity derivatives (1)................................ (1) -- (1,043) (265) -- N/A
Foreign currency transaction gains (losses) on hedged
items................................................ -- -- (65) -- -- N/A
-------- ------- -------- -------- --------- --------
Subtotal............................................ 1 -- (2,342) (265) -- N/A
Earned income on derivatives.......................... 167 -- 645 206 (159) --
Embedded derivatives (2).............................. N/A N/A 733 -- N/A N/A
---------- ---------- ---------- ------------ ------------ --------
Total............................................... $ 235 $ 85 $ (964) $ (109) $ (159) $ 111
========== ========== ========== ============ ============ ========
MLIC-80
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
8. Derivatives (continued)
Year Ended December 31, 2020
-------------------------------------------------------------------
Interest
Net Net Credited to
Net Investment Derivative Policyholder Policyholder
Investment Gains Gains Benefits and Account
Income (Losses) (Losses) Claims Balances OCI
---------- ---------- ---------- ------------ ------------ --------
(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1). $ (10) $ -- $ -- $ 360 $ -- N/A
Hedged items...................................... 12 -- -- (399) -- N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1). (45) -- -- -- -- N/A
Hedged items...................................... 43 -- -- -- -- N/A
-------- -------- -------- -------- -------- --------
Subtotal........................................ -- -- -- (39) -- N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI......... N/A N/A N/A N/A N/A $ 1,268
Amount of gains (losses) reclassified from AOCI
into income...................................... 36 121 -- -- -- (157)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI......... N/A N/A N/A N/A N/A (124)
Amount of gains (losses) reclassified from AOCI
into income...................................... 3 768 -- -- -- (771)
Foreign currency transaction gains (losses) on
hedged items..................................... -- (680) -- -- -- --
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI......... N/A N/A N/A N/A N/A --
Amount of gains (losses) reclassified from AOCI
into income...................................... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Subtotal........................................ 39 209 -- -- -- 216
Gain (Loss) on Derivatives Not Designated or Not
Qualifying as Hedging Instruments:
Interest rate derivatives (1)..................... (6) -- 1,999 -- -- N/A
Foreign currency exchange rate derivatives (1).... -- -- (371) -- -- N/A
Credit derivatives -- purchased (1)............... -- -- (6) -- -- N/A
Credit derivatives -- written (1)................. -- -- (78) -- -- N/A
Equity derivatives (1)............................ (2) -- (973) (238) -- N/A
Foreign currency transaction gains (losses) on
hedged items..................................... -- -- 91 -- -- N/A
-------- -------- -------- -------- -------- --------
Subtotal........................................ (8) -- 662 (238) -- N/A
Earned income on derivatives...................... 239 -- 633 186 (152) --
Embedded derivatives (2).......................... N/A N/A (557) -- N/A N/A
-------- -------- -------- -------- -------- --------
Total........................................... $ 270 $ 209 $ 738 $ (91) $ (152) $ 216
======== ======== ======== ======== ======== ========
MLIC-81
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
8. Derivatives (continued)
Year Ended December 31, 2019
-------------------------------------------------------------------
Interest
Net Net Credited to
Net Investment Derivative Policyholder Policyholder
Investment Gains Gains Benefits and Account
Income (Losses) (Losses) Claims Balances OCI
---------- ---------- ---------- ------------ ------------ --------
(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1). $ (2) $ -- $ -- $ 339 $ 1 N/A
Hedged items...................................... 4 -- -- (369) -- N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1). (54) -- -- -- -- N/A
Hedged items...................................... 54 -- -- -- -- N/A
-------- -------- -------- -------- -------- --------
Subtotal........................................ 2 -- -- (30) 1 N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI......... N/A N/A N/A N/A N/A $ 605
Amount of gains (losses) reclassified from AOCI
into income...................................... 23 4 -- -- -- (27)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI......... N/A N/A N/A N/A N/A (67)
Amount of gains (losses) reclassified from AOCI
into income...................................... (3) 212 -- -- -- (209)
Foreign currency transaction gains (losses) on
hedged items..................................... -- (211) -- -- -- --
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI......... N/A N/A N/A N/A N/A --
Amount of gains (losses) reclassified from AOCI
into income...................................... 1 -- -- -- -- (1)
-------- -------- -------- -------- -------- --------
Subtotal........................................ 21 5 -- -- -- 301
Gain (Loss) on Derivatives Not Designated or Not
Qualifying as Hedging Instruments:
Interest rate derivatives (1)..................... (3) -- 720 -- -- N/A
Foreign currency exchange rate derivatives (1).... -- -- (49) -- -- N/A
Credit derivatives -- purchased (1)............... -- -- (25) -- -- N/A
Credit derivatives -- written (1)................. -- -- 172 -- -- N/A
Equity derivatives (1)............................ -- -- (944) (150) -- N/A
Foreign currency transaction gains (losses) on
hedged items..................................... -- -- (4) -- -- N/A
-------- -------- -------- -------- -------- --------
Subtotal........................................ (3) -- (130) (150) -- N/A
Earned income on derivatives...................... 270 -- 272 135 (147) --
Embedded derivatives (2).......................... N/A N/A (430) -- N/A N/A
-------- -------- -------- -------- -------- --------
Total........................................... $ 290 $ 5 $ (288) $ (45) $ (146) $ 301
======== ======== ======== ======== ======== ========
--------
(1)Excludes earned income on derivatives.
(2)The valuation of guaranteed minimum benefits includes a nonperformance risk
adjustment. The amounts included in net derivative gains (losses) in
connection with this adjustment were $27 million, $7 million and ($16)
million for the years ended December 31, 2021, 2020 and 2019, respectively.
MLIC-82
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
8. Derivatives (continued)
Fair Value Hedges
The Company designates and accounts for the following as fair value hedges
when they have met the requirements of fair value hedging: (i) interest rate
swaps to convert fixed rate assets and liabilities to floating rate assets and
liabilities; and (ii) foreign currency swaps to hedge the foreign currency fair
value exposure of foreign currency denominated assets and 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:
Cumulative Amount
of Fair Value Hedging Adjustments
Carrying Amount of the Included in the Carrying Amount of
Hedged Hedged
Balance Sheet Line Item Assets/(Liabilities) Assets/(Liabilities) (1)
------------------------------ ---------------------------------- ----------------------------------
December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020
----------------- ----------------- ----------------- -----------------
(In millions)
Fixed maturity securities AFS. $ 366 $ 461 $ (1) $ (1)
Mortgage loans................ $ 617 $ 925 $ 3 $ 20
Future policy benefits........ $ (4,735) $ (5,512) $ (877) $ (1,307)
-------------
(1)Includes ($161) million and ($1) million of hedging adjustments on
discontinued hedging relationships at December 31, 2021 and 2020,
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; (ii) foreign currency swaps to hedge the foreign currency cash
flow exposure of foreign currency denominated assets and liabilities;
(iii) interest rate forwards and credit forwards to lock in the price to be
paid for forward purchases of investments; and (iv) interest rate swaps and
interest rate forwards to hedge the forecasted purchases of fixed rate
investments.
In certain instances, the Company discontinued cash flow hedge accounting
because the forecasted transactions were no longer probable of occurring.
Because certain of the forecasted transactions also were not probable of
occurring within two months of the anticipated date, the Company reclassified
amounts from AOCI into income. These amounts were $6 million, $45 million, and
$51 million for the years ended December 31, 2021, 2020 and 2019, respectively.
At December 31, 2021 and 2020, 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 seven years and eight years,
respectively.
At December 31, 2021 and 2020, the balance in AOCI associated with cash flow
hedges was $2.4 billion and $2.3 billion, respectively.
All components of each derivative's gain or loss were included in the
assessment of hedge effectiveness.
At December 31, 2021, the Company expected to reclassify ($21) million of
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 effects of
derivatives on the consolidated statements of operations and comprehensive
income (loss) table. If a credit event occurs, as defined by the contract, the
contract may be cash settled or it may be settled gross by the Company paying
the counterparty the specified swap notional amount in exchange for the
delivery of par quantities of the referenced credit obligation. The Company can
terminate these contracts at any time through cash settlement with the
counterparty at an amount equal to the then current estimated fair value of the
credit default swaps.
MLIC-83
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
8. Derivatives (continued)
The following table presents the estimated fair value, maximum amount of
future payments and weighted average years to maturity of written credit
default swaps at:
December 31,
-----------------------------------------------------------------------------
2021 2020
-------------------------------------- --------------------------------------
Maximum Maximum
Estimated Amount Estimated Amount
Fair Value of Future Weighted Fair Value of Future Weighted
of Credit Payments under Average of Credit Payments under Average
Rating Agency Designation of Referenced Default Credit Default Years to Default Credit Default Years to
Credit Obligations (1) Swaps Swaps Maturity (2) Swaps Swaps Maturity (2)
----------------------------------------- ---------- -------------- ------------ ---------- -------------- ------------
(Dollars in millions)
Aaa/Aa/A
Single name credit default swaps (3)..... $ -- $ 10 2.5 $ -- $ 54 0.6
Credit default swaps referencing indices. 17 1,191 2.5 27 1,779 2.5
--------- ------------- --------- -------------
Subtotal............................... 17 1,201 2.5 27 1,833 2.4
--------- ------------- --------- -------------
Baa
Single name credit default swaps (3)..... 1 60 3.3 2 174 2.1
Credit default swaps referencing indices. 90 4,698 5.1 97 4,954 5.3
--------- ------------- --------- -------------
Subtotal............................... 91 4,758 5.1 99 5,128 5.2
--------- ------------- --------- -------------
Ba
Single name credit default swaps (3)..... 1 65 0.5 -- -- --
Credit default swaps referencing indices. (1) 20 5.0 -- -- --
--------- ------------- --------- -------------
Subtotal............................... -- 85 1.5 -- -- --
--------- ------------- --------- -------------
Caa3
Credit default swaps referencing indices. (9) 30 4.5 -- -- --
--------- ------------- --------- -------------
Subtotal............................... (9) 30 4.5 -- -- --
--------- ------------- --------- -------------
Total.................................. $ 99 $ 6,074 4.6 $ 126 $ 6,961 4.5
========= ============= ========= =============
-------------
(1)The rating agency designations are based on availability and the midpoint of
the applicable ratings among Moody's Investors Service ("Moody's"), S&P and
Fitch Ratings. If no rating is available from a rating agency, then an
internally developed rating is used.
(2)The weighted average years to maturity of the credit default swaps is
calculated based on weighted average gross notional amounts.
(3)Single name credit default swaps may be referenced to the credit of
corporations, foreign governments, or municipals.
Credit Risk on Freestanding Derivatives
The Company may be exposed to credit-related losses in the event of
nonperformance by its counterparties to derivatives. Generally, the current
credit exposure of the Company's derivatives is limited to the net positive
estimated fair value of derivatives at the reporting date after taking into
consideration the existence of master netting or similar agreements and any
collateral received pursuant to such agreements.
The Company manages its credit risk related to derivatives by entering into
transactions with creditworthy counterparties in jurisdictions in which it
understands that close-out netting should be enforceable and establishing and
monitoring exposure limits. The Company's OTC-bilateral derivative transactions
are governed by the International Swaps and Derivatives Association, Inc.
("ISDA") Master Agreements which provide for legally enforceable set-off and
close-out netting of exposures to specific counterparties in the event of early
termination of a transaction, which includes, but is not limited to, events of
default and bankruptcy. In the event of an early termination, close-out netting
permits the Company (subject to financial regulations such as the Orderly
Liquidation Authority under Title II of Dodd-Frank) to set off receivables from
the counterparty against payables to the same counterparty arising out of all
included transactions and to apply collateral to the
MLIC-84
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
8. Derivatives (continued)
obligations without application of the automatic stay, upon the counterparty's
bankruptcy. All of the Company's ISDA Master Agreements also include Credit
Support Annex provisions which require both the pledging and accepting of
collateral in connection with its OTC-bilateral derivatives as required by
applicable law. Additionally, 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
brokers and central clearinghouses to such derivatives.
See Note 9 for a description of the impact of credit risk on the valuation of
derivatives.
The estimated fair values of the Company's net derivative assets and net
derivative liabilities after the application of master netting agreements and
collateral were as follows at:
December 31,
--------------------------------------------------
2021 2020
------------------------ ------------------------
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities
---------------------------------------------------------------------------- ----------- ----------- ----------- -----------
(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)............................................................. $ 8,602 $ 1,379 $ 9,244 $ 2,192
OTC-cleared (1)............................................................... 104 8 139 6
Exchange-traded............................................................... 5 -- -- 16
----------- ----------- ----------- -----------
Total gross estimated fair value of derivatives presented on the
consolidated balance sheets (1)............................................ 8,711 1,387 9,383 2,214
Gross amounts not offset on the consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral................................................................. (1,364) (1,364) (1,996) (1,996)
OTC-cleared................................................................... (3) (3) (5) (5)
Cash collateral: (3), (4)
OTC-bilateral................................................................. (6,414) -- (6,073) --
OTC-cleared................................................................... (91) -- (98) --
Securities collateral: (5)
OTC-bilateral................................................................. (767) (14) (1,115) (188)
OTC-cleared................................................................... -- (5) -- (1)
Exchange-traded............................................................... -- -- -- (16)
----------- ----------- ----------- -----------
Net amount after application of master netting agreements and collateral..... $ 72 $ 1 $ 96 $ 8
=========== =========== =========== ===========
--------
(1)At December 31, 2021 and 2020, derivative assets included income (expense)
accruals reported in accrued investment income or in other liabilities of
$93 million and $65 million, respectively, and derivative liabilities
included (income) expense accruals reported in accrued investment income or
in other liabilities of ($22) million and ($47) 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, 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.
MLIC-85
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
8. Derivatives (continued)
(4)The receivable for the return of cash collateral provided by the Company is
inclusive of initial margin on exchange-traded and OTC-cleared derivatives
and is included in premiums, reinsurance and other receivables on the
balance sheet. The amount of cash collateral offset in the table above is
limited to the net estimated fair value of derivatives after application of
netting agreements. At December 31, 2021 and 2020, the Company received
excess cash collateral of $60 million and $175 million, respectively, and
provided no excess cash collateral for either period.
(5)Securities collateral received by the Company is held in separate custodial
accounts and is not recorded on the balance sheet. Subject to certain
constraints, the Company is permitted by contract to sell or re-pledge this
collateral, but at December 31, 2021, none of the collateral had been sold
or re-pledged. Securities collateral pledged by the Company is reported in
fixed maturity securities AFS on the balance sheet. Subject to certain
constraints, the counterparties are permitted by contract to sell or
re-pledge this collateral. The amount of securities collateral offset in the
table above is limited to the net estimated fair value of derivatives after
application of netting agreements and cash collateral. At December 31, 2021
and 2020, the Company received excess securities collateral with an
estimated fair value of $47 million and $150 million, respectively, for its
OTC-bilateral derivatives, which are not included in the table above due to
the foregoing limitation. At December 31, 2021 and 2020, the Company
provided excess securities collateral with an estimated fair value of $95
million and $185 million, respectively, for its OTC-bilateral derivatives,
$584 million and $1.4 billion, respectively, for its OTC-cleared
derivatives, and $106 million and $188 million, respectively, for its
exchange-traded derivatives, which are not included in the table above due
to the foregoing limitation.
The Company's collateral arrangements for its OTC-bilateral derivatives
generally require the counterparty in a net liability position, after
considering the effect of netting agreements, to pledge collateral when the
collateral amount owed by that counterparty reaches a minimum transfer amount.
All 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 rating 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.
December 31,
--------------------------------
2021 2020
-------- --------
Derivatives Subject to Financial
Strength-Contingent Provisions
--------------------------------
(In millions)
Estimated fair value of derivatives in a net liability position (1). $ 15 $ 196
Estimated fair value of collateral provided:
Fixed maturity securities AFS....................................... $ 17 $ 239
-------------
(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.
MLIC-86
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
8. 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:
December 31,
---------------------
Balance Sheet Location 2021 2020
------------------------------ ---------- ----------
(In millions)
Embedded derivatives within liability host contracts:
Direct guaranteed minimum benefits.................... Policyholder account balances. $ 257 $ 488
Assumed guaranteed minimum benefits................... Policyholder account balances. 5 5
Funds withheld on ceded reinsurance (including
affiliated).......................................... Other liabilities............. 1,072 1,428
Fixed annuities with equity indexed returns........... Policyholder account balances. 165 139
Other guarantees...................................... Policyholder account balances. -- 1
---------- ----------
Embedded derivatives within liability host contracts............................. $ 1,499 $ 2,061
========== ==========
9. Fair Value
When developing estimated fair values, the Company considers three broad
valuation approaches: (i) the market approach, (ii) the income approach, and
(iii) the cost approach. The Company determines the most appropriate valuation
approach to use, given what is being measured and the availability of
sufficient inputs, giving priority to observable inputs. The Company
categorizes its assets and liabilities measured at estimated fair value into a
three-level hierarchy, based on the significant input with the lowest level in
its valuation. The input levels are as follows:
Level 1 Unadjusted quoted prices in active markets for identical assets or
liabilities. The Company defines active markets based on average
trading volume for equity securities. The size of the bid/ask spread
is used as an indicator of market activity for fixed maturity
securities AFS.
Level 2 Quoted prices in markets that are not active or inputs that are
observable either directly or indirectly. These inputs can include
quoted prices for similar assets or liabilities other than quoted
prices in Level 1, quoted prices in markets that are not active, or
other significant inputs that are observable or can be derived
principally from or corroborated by observable market data for
substantially the full term of the assets or liabilities.
Level 3 Unobservable inputs that are supported by little or no market
activity and are significant to the determination of estimated fair
value of the assets or liabilities. Unobservable inputs reflect the
reporting entity's own assumptions about the assumptions that market
participants would use in pricing the asset or liability.
Financial markets are susceptible to severe events evidenced by rapid
depreciation in asset values accompanied by a reduction in asset liquidity. The
Company's ability to sell securities, as well as the price ultimately realized
for these securities, depends upon the demand and liquidity in the market and
increases the use of judgment in determining the estimated fair value of
certain securities.
Considerable judgment is often required in interpreting the market data used
to develop estimates of fair value, and the use of different assumptions or
valuation methodologies may have a material effect on the estimated fair value
amounts.
MLIC-87
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. Fair Value (continued)
Recurring Fair Value Measurements
The assets and liabilities measured at estimated fair value on a recurring
basis and their corresponding placement in the fair value hierarchy, including
those items for which the Company has elected the FVO, are presented below at:
December 31, 2021
---------------------------------------------------------------------
Fair Value Hierarchy
---------------------------------------------------
Total
Estimated
Level 1 Level 2 Level 3 Fair Value
---------------- ----------------- ---------------- -----------------
(In millions)
Assets
Fixed maturity securities AFS:
U.S. corporate........................................... $ -- $ 51,290 $ 7,112 $ 58,402
U.S. government and agency............................... 15,041 16,181 -- 31,222
Foreign corporate........................................ -- 21,862 7,823 29,685
RMBS..................................................... 7 20,333 2,805 23,145
ABS...................................................... -- 11,455 1,424 12,879
Municipals............................................... -- 8,728 -- 8,728
CMBS..................................................... -- 6,507 371 6,878
Foreign government....................................... -- 4,934 12 4,946
---------------- ----------------- ---------------- -----------------
Total fixed maturity securities AFS.................... 15,048 141,290 19,547 175,885
---------------- ----------------- ---------------- -----------------
Short-term investments................................... 4,187 677 2 4,866
Residential mortgage loans -- FVO........................ -- -- 127 127
Other investments........................................ 328 192 894 1,414
Derivative assets: (1)
Interest rate............................................ -- 5,982 95 6,077
Foreign currency exchange rate........................... -- 1,676 -- 1,676
Credit................................................... -- 106 17 123
Equity market............................................ 5 730 7 742
---------------- ----------------- ---------------- -----------------
Total derivative assets................................ 5 8,494 119 8,618
---------------- ----------------- ---------------- -----------------
Separate account assets (2).............................. 28,231 93,656 1,964 123,851
---------------- ----------------- ---------------- -----------------
Total assets (3)....................................... $ 47,799 $ 244,309 $ 22,653 $ 314,761
================ ================= ================ =================
Liabilities
Derivative liabilities: (1)
Interest rate............................................ -- 70 21 91
Foreign currency exchange rate........................... -- 1,076 -- 1,076
Credit................................................... -- 8 12 20
Equity market............................................ -- 222 -- 222
---------------- ----------------- ---------------- -----------------
Total derivative liabilities........................... -- 1,376 33 1,409
---------------- ----------------- ---------------- -----------------
Embedded derivatives within liability host contracts (4). -- -- 1,499 1,499
Separate account liabilities (2)......................... 7 12 6 25
---------------- ----------------- ---------------- -----------------
Total liabilities...................................... $ 7 $ 1,388 $ 1,538 $ 2,933
================ ================= ================ =================
MLIC-88
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. Fair Value (continued)
December 31, 2020
---------------------------------------------------------------------
Fair Value Hierarchy
---------------------------------------------------
Total
Estimated
Level 1 Level 2 Level 3 Fair Value
---------------- ----------------- ---------------- -----------------
(In millions)
Assets
Fixed maturity securities AFS:
U.S. corporate........................................... $ -- $ 53,717 $ 6,692 $ 60,409
U.S. government and agency............................... 12,697 18,074 -- 30,771
Foreign corporate........................................ -- 24,098 8,181 32,279
RMBS..................................................... -- 21,186 3,040 24,226
ABS...................................................... -- 11,351 1,224 12,575
Municipals............................................... -- 8,983 -- 8,983
CMBS..................................................... -- 6,628 201 6,829
Foreign government....................................... -- 5,263 5 5,268
---------------- ----------------- ---------------- -----------------
Total fixed maturity securities AFS.................... 12,697 149,300 19,343 181,340
---------------- ----------------- ---------------- -----------------
Short-term investments................................... 2,216 406 1 2,623
Residential mortgage loans -- FVO........................ -- -- 165 165
Other investments........................................ 431 270 565 1,266
Derivative assets: (1)
Interest rate............................................ -- 6,816 489 7,305
Foreign currency exchange rate........................... -- 1,408 -- 1,408
Credit................................................... -- 109 25 134
Equity market............................................ -- 454 17 471
---------------- ----------------- ---------------- -----------------
Total derivative assets................................ -- 8,787 531 9,318
---------------- ----------------- ---------------- -----------------
Separate account assets (2).............................. 28,296 99,405 945 128,646
---------------- ----------------- ---------------- -----------------
Total assets (3)....................................... $ 43,640 $ 258,168 $ 21,550 $ 323,358
================ ================= ================ =================
Liabilities
Derivative liabilities: (1)
Interest rate............................................ $ -- $ 11 $ 68 $ 79
Foreign currency exchange rate........................... -- 1,683 2 1,685
Credit................................................... -- 9 -- 9
Equity market............................................ 16 463 9 488
---------------- ----------------- ---------------- -----------------
Total derivative liabilities........................... 16 2,166 79 2,261
---------------- ----------------- ---------------- -----------------
Embedded derivatives within liability host contracts (4). -- -- 2,061 2,061
Separate account liabilities (2)......................... 12 8 6 26
---------------- ----------------- ---------------- -----------------
Total liabilities...................................... $ 28 $ 2,174 $ 2,146 $ 4,348
================ ================= ================ =================
--------
(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)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.
(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 December 31, 2021 and 2020, the estimated fair value of such investments
was $95 million and $70 million, respectively.
MLIC-89
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. Fair Value (continued)
(4)Embedded derivatives within liability host contracts are presented within
policyholder account balances and other liabilities on the consolidated
balance sheets.
The following describes the valuation methodologies used to measure assets
and liabilities at fair value.
Investments
Securities, Short-term Investments and Other Investments
When available, the estimated fair value of these financial instruments is
based on quoted prices in active markets that are readily and regularly
obtainable. Generally, these are the most liquid of the Company's securities
holdings and valuation of these securities does not involve management's
judgment.
When quoted prices in active markets are not available, the determination
of estimated fair value of securities is based on market standard valuation
methodologies, giving priority to observable inputs. The significant inputs
to the market standard valuation methodologies for certain types of
securities with reasonable levels of price transparency are inputs that are
observable in the market or can be derived principally from, or corroborated
by, observable market data. When observable inputs are not available, the
market standard valuation methodologies rely on inputs that are significant
to the estimated fair value that are not observable in the market or cannot
be derived principally from, or corroborated by, observable market data.
These unobservable inputs can be based in large part on management's
judgment or estimation and cannot be supported by reference to market
activity. Unobservable inputs are based on management's assumptions about
the inputs market participants would use in pricing such investments.
The estimated fair value of short-term investments and other investments
is determined on a basis consistent with the methodologies described herein.
The valuation approaches and key inputs for each category of assets or
liabilities that are classified within Level 2 and Level 3 of the fair value
hierarchy are presented below. The primary valuation approaches are the
market approach, which considers recent prices from market transactions
involving identical or similar assets or liabilities, and the income
approach, which converts expected future amounts (e.g. cash flows) to a
single current, discounted amount. The valuation
MLIC-90
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. Fair Value (continued)
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.
----------------------------------------------------------------------------------------------------------------------------
Level 2 Level 3
Instrument Observable Inputs Unobservable Inputs
----------------------------------------------------------------------------------------------------------------------------
Fixed maturity securities AFS
----------------------------------------------------------------------------------------------------------------------------
U.S. corporate and Foreign corporate securities
----------------------------------------------------------------------------------------------------------------------------
Valuation Approaches: Principally the
market and income approaches. Valuation Approaches: Principally the market approach.
Key Inputs: Key Inputs:
. quoted prices in markets that are .illiquidity premium
not active
. benchmark yields; spreads off .delta spread adjustments to reflect specific credit-related issues
benchmark yields; new issuances;
issuer ratings
. trades of identical or comparable .credit spreads
securities; duration
. privately-placed securities are
valued using the additional key
inputs:
. market yield curve; call provisions
. observable prices and spreads for
similar public or private . quoted prices in markets that are not active for identical or similar
securities that incorporate the securities that are less liquid and based on lower levels of trading
credit quality and industry sector activity than securities classified in Level 2
of the issuer .independent non-binding broker quotations
. delta spread adjustments to reflect
specific credit-related issues
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
U.S. government and agency securities, 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 .independent non-binding broker quotations
not active
.benchmark U.S. Treasury yield or
other yields
.the spread off the U.S. Treasury . quoted prices in markets that are not active for identical or similar
yield curve for the identical securities that are less liquid and based on lower levels of trading
security activity than securities classified in Level 2
.issuer ratings and issuer spreads; .credit spreads
broker-dealer quotations
.comparable securities that are
actively traded
----------------------------------------------------------------------------------------------------------------------------
Structured Products
----------------------------------------------------------------------------------------------------------------------------
Valuation Approaches: Principally the
market and income approaches. Valuation Approaches: Principally the market and income approaches.
Key Inputs: Key Inputs:
.quoted prices in markets that are .credit spreads
not active
.spreads for actively traded
securities; spreads off benchmark
yields . quoted prices in markets that are not active for identical or similar
.expected prepayment speeds and securities that are less liquid and based on lower levels of trading
volumes activity than securities classified in Level 2
.current and forecasted loss .independent non-binding broker quotations
severity; ratings; geographic region
.weighted average coupon and weighted .credit ratings
average maturity
.average delinquency rates; DSCR
.credit ratings
.issuance-specific information,
including, but not limited to:
.collateral type; structure of the
security; vintage of the loans
.payment terms of the underlying
assets
.payment priority within the
tranche; deal performance
----------------------------------------------------------------------------------------------------------------------------
Short-term investments and Other investments
----------------------------------------------------------------------------------------------------------------------------
. Certain short-term investments and
certain other investments are of a
similar nature and class to the
fixed maturity securities AFS . Certain short-term investments and certain other investments are of a
described above; while certain similar nature and class to the fixed maturity securities AFS
other investments are similar to described above, while certain other investments are similar to
equity securities. The valuation equity securities. The valuation approaches and unobservable
approaches and observable inputs inputs used in their valuation are also similar to those described
used in their valuation are also above. Other investments contain equity securities that use key
similar to those described above. unobservable inputs such as credit ratings; issuance structures, in
Other investments contain equity addition to those described above for fixed maturities AFS. Other
securities valued using quoted investments also include certain real estate joint ventures and use
prices in markets that are not the valuation approach and key inputs as described for other
considered active. 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.
----------------------------------------------------------------------------------------------------------------------------
MLIC-91
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. Fair Value (continued)
-----------------------------------------------------------------------------------------------------------------------
Level 2 Level 3
Instrument Observable Inputs Unobservable Inputs
-----------------------------------------------------------------------------------------------------------------------
Separate account assets and Separate account liabilities (1)
-----------------------------------------------------------------------------------------------------------------------
Mutual funds and hedge funds without readily determinable fair values as prices are not published publicly
-----------------------------------------------------------------------------------------------------------------------
Key Input: .N/A
.quoted prices or reported NAV
provided by the fund managers
-----------------------------------------------------------------------------------------------------------------------
Other limited partnership interests
-----------------------------------------------------------------------------------------------------------------------
.N/A Valued giving consideration to the underlying holdings of the
partnerships and adjusting, if appropriate.
Key Inputs:
.liquidity; bid/ask spreads; performance record of the fund manager
.other relevant variables that may impact the exit value of the
particular partnership interest
- -----------------------------------------------------------------------------------------------------------
--------
(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 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. Unobservable inputs are based on management's assumptions
about the inputs market participants would use in pricing such derivatives.
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.
MLIC-92
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. Fair Value (continued)
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:
-----------------------------------------------------------------------------------------------------------------------------
Foreign Currency
Instrument Interest Rate Exchange Rate Credit
-----------------------------------------------------------------------------------------------------------------------------
Inputs common to Level 2 and Level 3 by swap yield curves swap yield curves swap yield curves
instrument type basis curves basis curves credit curves
interest rate volatility (1) currency spot rates recovery rates
cross currency basis
curves
------------------------------------------ - -
Level 3 swap yield curves (2) swap yield curves (2) swap yield curves (2)
basis curves (2) basis curves (2) credit curves (2)
repurchase rates cross currency basis credit spreads
interest rate curves (2) repurchase rates
volatility (1), (2) currency correlation independent non-binding
broker quotations
- - - -
----------------------------------------------------------------------
Instrument Equity Market
----------------------------------------------------------------------
Inputs common to Level 2 and Level 3 by swap yield curves
instrument type spot equity index levels
dividend yield curves
equity volatility (1)
-----------------------------------------
Level 3 dividend yield curves (2)
equity volatility (1), (2)
correlation between
model inputs (1)
-
--------
(1)Option-based only.
(2)Extrapolation beyond the observable limits of the curve(s).
Embedded Derivatives
Embedded derivatives principally include certain direct and assumed
variable annuity guarantees, annuity contracts, and investment risk within
funds withheld related to certain reinsurance agreements. Embedded
derivatives are recorded at estimated fair value with changes in estimated
fair value reported in net income.
The 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 consolidated balance sheets.
The Company calculates the fair value of these embedded derivatives, which
is 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, projecting 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
MLIC-93
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. Fair Value (continued)
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 estimated fair value of the embedded derivatives within funds withheld
related to certain ceded reinsurance is determined based on the change in
estimated fair value of the underlying assets held by the Company in a
reference portfolio backing the funds withheld liability. The estimated fair
value of the underlying assets is determined as described in "-- Investments
-- Securities, Short-term Investments and Other Investments." The estimated
fair value of these embedded derivatives is included, along with their funds
withheld hosts, in other liabilities on the consolidated balance sheets with
changes in estimated fair value recorded in net derivative gains (losses).
Changes in the credit spreads on the underlying assets, interest rates and
market volatility may result in significant fluctuations in the estimated
fair value of these embedded derivatives that could materially affect net
income.
The 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
consolidated balance sheets.
The estimated fair value of the embedded equity indexed derivatives, based
on the present value of future equity returns to the policyholder using
actuarial and present value assumptions including expectations concerning
policyholder behavior, is calculated by the Company's actuarial department.
The calculation is based on in-force business and uses standard capital
market techniques, such as Black-Scholes, to calculate the value of the
portion of the embedded derivative for which the terms are set. The portion
of the embedded derivative covering the period beyond where terms are set is
calculated as the present value of amounts expected to be spent to provide
equity indexed returns in those periods. The valuation of these embedded
derivatives also includes the establishment of a risk margin, as well as
changes in nonperformance risk.
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.
MLIC-94
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. Fair Value (continued)
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 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.
Assets and Liabilities Measured at Fair Value Using Significant Unobservable
Inputs (Level 3)
The following table presents certain quantitative information about the
significant unobservable inputs used in the fair value measurement, and the
sensitivity of the estimated fair value to changes in those inputs, for the
more significant asset and liability classes measured at fair value on a
recurring basis using significant unobservable inputs (Level 3) at:
December 31, 2021
---------------------------
Significant Weighted
Valuation Techniques Unobservable Inputs Range Average (1)
------------------------------ -------------------------------- --------------- -----------
Fixed maturity securities AFS (3)
U.S. corporate and foreign
corporate..................... Matrix pricing Offered quotes (4) 1 - 165 110
Market pricing Quoted prices (4) -- - 117 101
-----------------------------------------------------------------------------------------------
RMBS........................... Market pricing Quoted prices (4) -- - 121 99
-----------------------------------------------------------------------------------------------
ABS............................ Market pricing Quoted prices (4) 91 - 110 102
-----------------------------------------------------------------------------------------------
Derivatives
Interest rate.................. Present value techniques Swap yield (6) 151 - 200 188
Repurchase rates (8) -- - -- --
Volatility (9) 1% - 1% 1%
-----------------------------------------------------------------------------------------------
Foreign currency exchange rate. Present value techniques Swap yield (6) -- - -- --
-----------------------------------------------------------------------------------------------
Credit......................... Present value techniques Credit spreads (10) 96 - 133 109
Consensus pricing Offered quotes (11)
-----------------------------------------------------------------------------------------------
Equity market.................. Present value techniques or Volatility (12) -- - -- --
option pricing models
Correlation (13) -- - -- --
-----------------------------------------------------------------------------------------------
Embedded derivatives
Direct and assumed guaranteed Option pricing techniques Mortality rates:
minimum benefits..............
Ages 0 - 40 0.01% - 0.12% 0.08%
Ages 41 - 60 0.05% - 0.65% 0.27%
Ages 61 - 115 0.32% - 100% 2.08%
Lapse rates:
Durations 1 - 10 0.25% - 100% 6.30%
Durations 11 - 20 0.70% - 100% 5.22%
Durations 21 - 116 1.60% - 100% 5.22%
Utilization rates 0% - 22% 0.22%
Withdrawal rates 0.25% - 10% 3.72%
Long-term equity volatilities 16.44% - 22.16% 18.60%
Nonperformance risk spread 0.04% - 0.40% 0.35%
December 31, 2020
---------------------------
Significant Weighted
Valuation Techniques Unobservable Inputs Range Average (1)
------------------------------ -------------------------------- --------------- -----------
Fixed maturity securities AFS (3)
U.S. corporate and foreign
corporate..................... Matrix pricing Offered quotes (4) -- - 186 118
Market pricing Quoted prices (4) -- - 116 99
-----------------------------------------------------------------------------------------------
RMBS........................... Market pricing Quoted prices (4) -- - 159 98
-----------------------------------------------------------------------------------------------
ABS............................ Market pricing Quoted prices (4) 1 - 107 100
-----------------------------------------------------------------------------------------------
Derivatives
Interest rate.................. Present value techniques Swap yield (6) 92 - 184 149
Repurchase rates (8) (12) - 1 (6)
Volatility (9) -- - -- --
-----------------------------------------------------------------------------------------------
Foreign currency exchange rate. Present value techniques Swap yield (6) (31) - (13) (20)
-----------------------------------------------------------------------------------------------
Credit......................... Present value techniques Credit spreads (10) 96 - 99 98
Consensus pricing Offered quotes (11)
-----------------------------------------------------------------------------------------------
Equity market.................. Present value techniques or Volatility (12) 21% - 28% 28%
option pricing models
Correlation (13) 10% - 30% 10%
-----------------------------------------------------------------------------------------------
Embedded derivatives
Direct and assumed guaranteed Option pricing techniques Mortality rates:
minimum benefits..............
Ages 0 - 40 0.01% - 0.12% 0.06%
Ages 41 - 60 0.05% - 0.65% 0.30%
Ages 61 - 115 0.31% - 100% 1.90%
Lapse rates:
Durations 1 - 10 0.25% - 100% 6.86%
Durations 11 - 20 4.70% - 100% 5.18%
Durations 21 - 116 2% - 100% 5.18%
Utilization rates 0% - 22% 0.17%
Withdrawal rates 0.25% - 10% 3.98%
Long-term equity volatilities 16.66% - 22.21% 18.70%
Nonperformance risk spread 0.04% - 0.39% 0.40%
Impact of
Increase in Input
Significant on Estimated
Valuation Techniques Unobservable Inputs Fair Value (2)
------------------------------ -------------------------------- -----------------
Fixed maturity securities AFS (3)
U.S. corporate and foreign
corporate..................... Matrix pricing Offered quotes (4) Increase
Market pricing Quoted prices (4) Increase
-----------------------------------------------------------------------------------
RMBS........................... Market pricing Quoted prices (4) Increase (5)
-----------------------------------------------------------------------------------
ABS............................ Market pricing Quoted prices (4) Increase (5)
-----------------------------------------------------------------------------------
Derivatives
Interest rate.................. Present value techniques Swap yield (6) Increase (7)
Repurchase rates (8) Decrease (7)
Volatility (9) Increase (7)
------------------
-----------------------------------------------------------------
Foreign currency exchange rate. Present value techniques Swap yield (6) Increase (7)
-----------------------------------------------------------------------------------
Credit......................... Present value techniques Credit spreads (10) Decrease (7)
Consensus pricing Offered quotes (11)
-----------------------------------------------------------------------------------
Equity market.................. Present value techniques or Volatility (12) Increase (7)
option pricing models
Correlation (13)
-----------------------------------------------------------------------------------
Embedded derivatives
Direct and assumed guaranteed Option pricing techniques Mortality rates:
minimum benefits..............
Ages 0 - 40 Decrease (14)
Ages 41 - 60 Decrease (14)
Ages 61 - 115 Decrease (14)
Lapse rates:
Durations 1 - 10 Decrease (15)
Durations 11 - 20 Decrease (15)
Durations 21 - 116 Decrease (15)
Utilization rates Increase (16)
Withdrawal rates (17)
Long-term equity volatilities Increase (18)
Nonperformance risk spread Decrease (19)
--------
(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.
MLIC-95
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. Fair Value (continued)
(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.
(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.
(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) 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.
(10)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.
(11)At both December 31, 2021 and 2020, independent non-binding broker
quotations were used in the determination of less than 1% of the total net
derivative estimated fair value.
(12)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.
(13)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.
(14)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.
(15)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.
(16)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.
MLIC-96
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. Fair Value (continued)
(17)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.
(18)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.
(19)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 use the same valuation
techniques and significant unobservable inputs as previously described for
Level 3. The sensitivity of the estimated fair value to changes in the
significant unobservable inputs for these other assets and liabilities is
similar in nature to that described in the preceding table. The valuation
techniques and significant unobservable inputs used in the fair value
measurement for the more significant assets measured at estimated fair value on
a nonrecurring basis and determined using significant unobservable inputs
(Level 3) are summarized in "-- Nonrecurring Fair Value Measurements."
MLIC-97
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. 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
--------------------------------------------------------
Structured Foreign Short-term
Corporate (6) Products Municipals Government Investments
-------------- ------------ ----------- ----------- ------------
(In millions)
Balance, January 1, 2020................ $ 9,382 $ 3,395 $ 7 $ 10 $ 17
Total realized/unrealized gains
(losses) included in net income (loss)
(1), (2)............................... (91) 46 -- -- --
Total realized/unrealized gains
(losses) included in AOCI.............. 979 22 -- -- --
Purchases (3)........................... 3,018 1,670 -- -- 1
Sales (3)............................... (960) (740) -- (2) (2)
Issuances (3)........................... -- -- -- -- --
Settlements (3)......................... -- -- -- -- --
Transfers into Level 3 (4).............. 2,968 108 -- -- --
Transfers out of Level 3 (4)............ (423) (36) (7) (3) (15)
------------- ------------ --------- --------- --------
Balance, December 31, 2020.............. 14,873 4,465 -- 5 1
Total realized/unrealized gains
(losses) included in net income (loss)
(1), (2)............................... (40) 45 -- -- --
Total realized/unrealized gains
(losses) included in AOCI.............. (745) 8 -- (1) --
Purchases (3)........................... 2,369 1,247 -- -- 2
Sales (3)............................... (1,211) (1,239) -- (2) --
Issuances (3)........................... -- -- -- -- --
Settlements (3)......................... -- -- -- -- --
Transfers into Level 3 (4).............. 162 332 -- 10 --
Transfers out of Level 3 (4)............ (473) (258) -- -- (1)
------------- ------------ --------- --------- --------
Balance, December 31, 2021.............. $ 14,935 $ 4,600 $ -- $ 12 $ 2
============= ============ ========= ========= ========
Changes in unrealized gains (losses)
included in net income (loss) for the
instruments still held at December 31,
2019: (5).............................. $ (34) $ 42 $ -- $ -- $ --
============= ============ ========= ========= ========
Changes in unrealized gains (losses)
included in net income (loss) for the
instruments still held at December 31,
2020: (5).............................. $ (53) $ 52 $ -- $ -- $ --
============= ============ ========= ========= ========
Changes in unrealized gains (losses)
included in net income (loss) for the
instruments still held at
December 31, 2021 (5).................. $ (7) $ 41 $ -- $ -- $ --
============= ============ ========= ========= ========
Changes in unrealized gains (losses)
included in AOCI for the instruments
still held at December 31, 2020: (5)... $ 963 $ 22 $ -- $ -- $ --
============= ============ ========= ========= ========
Changes in unrealized gains (losses)
included in AOCI for the instruments
still held at December 31, 2021: (5)... $ (731) $ 10 $ -- $ (1) $ --
============= ============ ========= ========= ========
Gains (Losses) Data for the year ended
December 31, 2019
Total realized/unrealized gains
(losses) included in net income (loss)
(1), (2)............................... $ (41) $ 43 $ -- $ -- $ --
Total realized/unrealized gains
(losses) included in AOCI.............. $ 564 $ 30 $ -- $ -- $ --
MLIC-98
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
--------------------------------------------------------------------
Residential
Mortgage Other Net Net Embedded Separate
Loans - FVO Investments Derivatives (7) Derivatives (8) Accounts (9)
----------- ----------- --------------- --------------- ------------
(In millions)
Balance, January 1, 2020............................... $ 188 $ 799 $ (72) $ (1,325) $ 915
Total realized/unrealized gains (losses) included in
net income (loss) (1), (2)............................ 9 73 176 (557) --
Total realized/unrealized gains (losses) included in
AOCI.................................................. -- -- 772 -- --
Purchases (3).......................................... -- 33 4 -- 184
Sales (3).............................................. (13) (147) -- -- (153)
Issuances (3).......................................... -- -- (2) -- (4)
Settlements (3)........................................ (19) -- (426) (179) 1
Transfers into Level 3 (4)............................. -- -- -- -- 1
Transfers out of Level 3 (4)........................... -- (193) -- -- (5)
---------- ---------- --------- ------------- ------------
Balance, December 31, 2020............................. 165 565 452 (2,061) 939
Total realized/unrealized gains (losses) included in
net income (loss) (1), (2)............................ (5) 183 (69) 733 8
Total realized/unrealized gains (losses) included in
AOCI.................................................. -- -- (352) -- --
Purchases (3).......................................... -- 139 28 -- 1,044
Sales (3).............................................. (11) (38) -- -- (44)
Issuances (3).......................................... -- -- (13) -- (2)
Settlements (3)........................................ (22) -- 38 (171) 6
Transfers into Level 3 (4)............................. -- 74 1 -- 10
Transfers out of Level 3 (4)........................... -- (29) 1 -- (3)
---------- ---------- --------- ------------- ------------
Balance, December 31, 2021............................. $ 127 $ 894 $ 86 $ (1,499) $ 1,958
========== ========== ========= ============= ============
Changes in unrealized gains (losses) included in net
income (loss) for the instruments still held at
December 31, 2019: (5)................................ $ (14) $ 86 $ (44) $ (422) $ --
========== ========== ========= ============= ============
Changes in unrealized gains (losses) included in net
income (loss) for the instruments still held at
December 31, 2020: (5)................................ $ 3 $ 67 $ (76) $ (565) $ --
========== ========== ========= ============= ============
Changes in unrealized gains (losses) included in net
income (loss) for the instruments still held at
December 31, 2021: (5)................................ $ (10) $ 170 $ (7) $ 735 $ --
========== ========== ========= ============= ============
Changes in unrealized gains (losses) included in AOCI
for the instruments still held at December 31, 2020:
(5)................................................... $ -- $ -- $ 579 $ -- $ --
========== ========== ========= ============= ============
Changes in unrealized gains (losses) included in AOCI
for the instruments still held at December 31, 2021:
(5)................................................... $ -- $ -- $ (128) $ -- $ --
========== ========== ========= ============= ============
Gains (Losses) Data for the year ended December 31,
2019
Total realized/unrealized gains (losses) included in
net income (loss) (1), (2)............................ $ 7 $ 94 $ (36) $ (429) $ 7
Total realized/unrealized gains (losses) included in
AOCI.................................................. $ -- $ -- $ 161 $ -- $ --
--------
(1) 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 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.
(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).
MLIC-99
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. Fair Value (continued)
(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 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.
December 31,
----------------------
2021 2020
---------- ----------
(In millions)
Unpaid principal balance.......................................................................... $ 130 $ 172
Difference between estimated fair value and unpaid principal balance.............................. (3) (7)
---------- ----------
Carrying value at estimated fair value............................................................ $ 127 $ 165
========== ==========
Loans in nonaccrual status........................................................................ $ 32 $ 45
Loans more than 90 days past due.................................................................. $ 14 $ 27
Loans in nonaccrual status or more than 90 days past due, or both -- difference between aggregate
estimated fair value and unpaid principal balance................................................ $ (7) $ (13)
Nonrecurring Fair Value Measurements
The following table presents information for assets measured at estimated
fair value on a nonrecurring basis during the periods and still held at the
reporting dates (for example, when there is evidence of impairment), using
significant unobservable inputs (Level 3).
At December 31, For the Years Ended December 31,
-------------------------------- --------------------------------
2021 2020 2021 2020 2019
-------- -------- --------- ---------- --------
Carrying Value After Measurement Gains (Losses)
-------------------------------- --------------------------------
(In millions)
Mortgage loans, net (1). $ 266 $ 320 $ (91) $ (110) $ (2)
--------
(1)Estimated fair values for impaired mortgage loans are based on estimated
fair value of the underlying collateral.
Fair Value of Financial Instruments Carried at Other Than Fair Value
The following tables provide fair value information for financial instruments
that are carried on the balance sheet at amounts other than fair value. These
tables exclude the following financial instruments: cash and cash equivalents,
accrued investment income, payables for collateral under securities loaned and
other transactions, short-term debt and those short-term investments that are
not securities, such as time deposits, and therefore are not included in the
three-level hierarchy table disclosed in the "-- Recurring Fair Value
Measurements" section. The Company believes that due to the short-term nature
of these excluded assets, which are primarily classified in Level 2, the
estimated fair value approximates carrying value. All remaining balance sheet
amounts excluded from the tables below are not considered financial instruments
subject to this disclosure.
MLIC-100
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
9. 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:
December 31, 2021
------------------------------------------------
Fair Value Hierarchy
---------------------------
Total
Carrying Estimated
Value Level 1 Level 2 Level 3 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, 2020
------------------------------------------------
Fair Value Hierarchy
---------------------------
Total
Carrying Estimated
Value Level 1 Level 2 Level 3 Fair Value
--------- ------- --------- --------- ----------
(In millions)
Assets
Mortgage loans (1).......................... $ 66,240 $ -- $ -- $ 70,391 $ 70,391
Policy loans................................ $ 5,973 $ -- $ -- $ 7,148 $ 7,148
Other invested assets....................... $ 2,849 $ -- $ 2,586 $ 167 $ 2,753
Premiums, reinsurance and other receivables. $ 13,173 $ -- $ 363 $ 13,274 $ 13,637
Liabilities
Policyholder account balances............... $ 78,059 $ -- $ -- $ 82,982 $ 82,982
Long-term debt.............................. $ 1,615 $ -- $ 2,018 $ -- $ 2,018
Other liabilities........................... $ 12,595 $ -- $ 134 $ 12,778 $ 12,912
Separate account liabilities................ $ 59,103 $ -- $ 59,103 $ -- $ 59,103
--------
(1) Includes mortgage loans measured at estimated fair value on a nonrecurring
basis and excludes mortgage loans measured at estimated fair value on a
recurring basis.
10. Leases
The Company, as lessee, has entered into various lease and sublease
agreements primarily for office space. The Company has operating leases with
remaining lease terms of less than one year to 9 years. The remaining lease
terms for the subleases are less than one year to 9 years.
ROU Assets and Lease Liabilities
ROU assets and lease liabilities for operating leases were:
December 31, December 31,
2021 2020
------------ ------------
(In millions)
ROU assets........ $ 601 $ 718
Lease liabilities. $ 701 $ 795
MLIC-101
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
10. Leases (continued)
Lease Costs
The components of operating lease costs were as follows:
For the Years Ended December 31,
-------------------------------
2021 2020 2019
------ ------ ------
(In millions)
Operating lease cost. $ 120 $ 117 $ 109
Variable lease cost.. 14 15 20
Sublease income...... (91) (89) (80)
------ ------ ------
Net lease cost...... $ 43 $ 43 $ 49
====== ====== ======
Other Information
Supplemental other information related to operating leases was as follows:
December 31, December 31,
2021 2020
------------ ------------
(Dollars in millions)
Cash paid for amounts included in the measurement of lease liability - operating cash
flows............................................................................... $ 122 $ 125
ROU assets obtained in exchange for new lease liabilities............................. $ 4 $ --
Weighted-average remaining lease term................................................. 7 years 8 years
Weighted-average discount rate........................................................ 4.0% 4.0%
Maturities of Lease Liabilities
Maturities of operating lease liabilities were as follows:
December 31, 2021
-----------------
(In millions)
2022.............................. $ 126
2023.............................. 117
2024.............................. 108
2025.............................. 108
2026.............................. 103
Thereafter........................ 253
------
Total undiscounted cash flows.... 815
Less: interest.................... 114
------
Present value of lease liability. $ 701
======
See Note 7 for information about the Company's investments in leased real
estate and leveraged and direct financing leases.
MLIC-102
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
11. Long-term and Short-term Debt
Long-term and short-term debt outstanding, excluding debt relating to
consolidated securitization entities, was as follows:
December 31,
-----------------------------------------------------------------
Interest Rates (1) 2021 2020
--------------------- -------------------------------- --------------------------------
Unamortized Unamortized
Weighted Face Discount and Carrying Face Discount and Carrying
Range Average Maturity Value Issuance Costs Value Value Issuance Costs Value
------------- -------- ----------- -------- -------------- -------- -------- -------------- --------
(In millions)
Surplus
notes--affiliated. 7.38% - 7.38% 7.38% 2037 $ 700 $ (8) $ 692 $ 700 $ (8) $ 692
Surplus notes...... 7.80% - 7.88% 7.83% 2024 - 2025 400 (1) 399 400 (2) 398
Other notes (2).... 0.08% - 3.75% 2.48% 2022 - 2058 571 (3) 568 527 (3) 524
-------- ------ -------- -------- ------ --------
Total long-term
debt............. 1,671 (12) 1,659 1,627 (13) 1,614
-------- ------ -------- -------- ------ --------
Total short-term
debt.............. 100 -- 100 120 -- 120
-------- ------ -------- -------- ------ --------
Total............ $ 1,771 $ (12) $ 1,759 $ 1,747 $ (13) $ 1,734
======== ====== ======== ======== ====== ========
--------
(1)Range of interest rates and weighted average interest rates are for the year
ended December 31, 2021.
(2)During 2021, a subsidiary of Metropolitan Life Insurance Company issued
$35 million of long-term debt to MetLife, Inc.
The aggregate maturities of long-term debt at December 31, 2021 for the next
five years and thereafter are $82 million in 2022, $0 in 2023, $184 million in
2024, $250 million in 2025, $347 million in 2026 and $796 million thereafter.
Unsecured senior debt which consists of senior notes and other notes rank
highest in priority. Payments of interest and principal on Metropolitan Life
Insurance Company's surplus notes are subordinate to all other obligations and
may be made only with the prior approval of the New York State Department of
Financial Services ("NYDFS").
Other Notes
At December 31, 2021, MetLife Private Equity Holdings, LLC ("MPEH"), a
wholly-owned indirect investment subsidiary of Metropolitan Life Insurance
Company, was party to a credit agreement providing for $350 million of term
loans and $75 million of a revolving loan (the "Credit Agreement"), which
matures in September 2026. In March 2020, MPEH borrowed $75 million on a
revolving loan under the Credit Agreement and repaid this loan in July 2020.
Simultaneously, in July 2020, MPEH borrowed $50 million on the term loan under
the Credit Agreement. MPEH has pledged invested assets to secure the loans;
however, these loans are non-recourse to Metropolitan Life Insurance Company.
Short-term Debt
Short-term debt with maturities of one year or less was as follows:
December 31,
--------------------
2021 2020
----------- --------
(Dollars in millions)
Commercial paper.......... $ 100 $ 100
Short-term borrowings (1). -- 20
----------- --------
Total short-term debt..... $ 100 $ 120
=========== ========
Average daily balance..... $ 105 $ 125
Average days outstanding.. 104 days 73 days
--------
(1) Represents short-term debt related to repurchase agreements, secured by
assets consolidated by the Company.
For the years ended December 31, 2021, 2020 and 2019, the weighted average
interest rate on short-term debt was 0.23%, 1.51% and 2.74%, respectively.
MLIC-103
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
11. Long-term and Short-term Debt (continued)
Interest Expense
Interest expense included in other expenses was $96 million, $99 million
and $105 million for the years ended December 31, 2021, 2020 and 2019,
respectively. These amounts include $52 million of interest expense related
to affiliated debt for each of the three years ended December 31, 2021, 2020
and 2019.
Credit Facility
At December 31, 2021, MetLife, Inc. and MetLife Funding, Inc., a
wholly-owned subsidiary of Metropolitan Life Insurance Company ("MetLife
Funding"), maintained a $3.0 billion unsecured revolving credit facility (the
"Credit Facility"). When drawn upon, this facility bears interest at varying
rates in accordance with the agreement.
The Credit Facility is used for general corporate purposes, to support the
borrowers' commercial paper programs and for the issuance of letters of
credit. Total fees associated with the Credit Facility were $7 million for
each of the years ended December 31, 2021, 2020 and 2019, respectively, and
were included in other expenses.
Information on the Credit Facility at December 31, 2021 was as follows:
Letters of Credit
Maximum Used by the Letters of Credit Unused
Borrower(s) Expiration Capacity Company (1) Used by Affiliates (1) Drawdowns Commitments
----------- ------------------ ------------ ----------------- ---------------------- --------- -----------
(In millions)
MetLife,
Inc.
and
MetLife
Funding,
Inc...... February 2026 (2) $ 3,000 $ 412 $ 47 $ -- $ 2,541
--------
(1) MetLife, Inc. and MetLife Funding are severally liable for their respective
obligations under the Credit Facility. MetLife Funding was not an applicant
under letters of credit outstanding as of December 31, 2021 and is not
responsible for any reimbursement obligations under such letters of credit.
(2) In February 2021, the Credit Facility was amended and restated to, among
other things, extend the maturity date. The Company incurred costs of
$3 million related to the Credit Facility, which were capitalized and
included in other assets. These costs are being amortized over the
remaining term of the Credit Facility. All borrowings under the amended and
restated Credit Facility must be repaid by February 26, 2026, except that
letters of credit outstanding upon termination may remain outstanding until
February 26, 2027.
Debt and Facility Covenants
Certain of the Company's debt instruments and the Credit Facility contain
various administrative, reporting, legal and financial covenants. The Company
believes it was in compliance with all applicable financial covenants at
December 31, 2021.
12. Equity
Statutory Equity and Income
Metropolitan Life Insurance Company prepares statutory-basis financial
statements in accordance with statutory accounting practices prescribed or
permitted by the NYDFS. The National Association of Insurance Commissioners
("NAIC") has adopted the Codification of Statutory Accounting
Principles ("Statutory Codification"). Statutory Codification is intended to
standardize regulatory accounting and reporting to state insurance departments.
However, statutory accounting principles continue to be established by
individual state laws and permitted practices. Modifications by the NYDFS may
impact the effect of Statutory Codification on the statutory capital and
surplus of Metropolitan Life Insurance Company.
New York, the state of domicile of Metropolitan Life Insurance Company,
imposes risk-based capital ("RBC") requirements that were developed by the
NAIC. Regulatory compliance is determined by a ratio of a company's total
adjusted capital, calculated in the manner prescribed by the NAIC ("TAC"), with
modifications by the state insurance department, to its authorized control
level RBC, calculated in the manner prescribed by the NAIC ("ACL RBC"), based
on the statutory-based filed financial statements. Companies below specific
trigger levels or ratios are classified by their respective levels, each of
which requires specified corrective action. The minimum level of TAC before
corrective action commences is twice ACL RBC ("CAL RBC"). The CAL RBC ratios
for Metropolitan Life Insurance Company were in excess of 360% and in excess of
350% at December 31, 2021 and 2020, respectively.
MLIC-104
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
12. Equity (continued)
Metropolitan Life Insurance Company's ancillary foreign insurance operations
are regulated by applicable authorities of the jurisdictions in which each
entity operates and are subject to minimum capital and solvency requirements in
those jurisdictions before corrective action commences. The aggregate required
capital and surplus of Metropolitan Life Insurance Company's foreign insurance
operations was $430 million and the aggregate actual regulatory capital and
surplus of such operations was $722 million as of the date of the most recent
required capital adequacy calculation for each jurisdiction. The Company's
foreign insurance operations exceeded the minimum capital and solvency
requirements as of the date of the most recent fiscal year-end capital adequacy
calculation for each jurisdiction.
Statutory accounting principles differ from GAAP primarily by charging policy
acquisition costs to expense as incurred, establishing future policy benefit
liabilities using different actuarial assumptions, reporting surplus notes as
surplus instead of debt and valuing securities on a different basis.
In addition, certain assets are not admitted under statutory accounting
principles and are charged directly to surplus. The most significant assets not
admitted by Metropolitan Life Insurance Company are net deferred income tax
assets resulting from temporary differences between statutory accounting
principles basis and tax basis not expected to reverse and become recoverable
within three years. Further, statutory accounting principles do not give
recognition to purchase accounting adjustments.
New York has adopted certain prescribed accounting practices, primarily
consisting of the continuous Commissioners' Annuity Reserve Valuation Method,
which impacts deferred annuities, and the New York Special Considerations
Letter, which mandates certain assumptions in asset adequacy testing. The
collective impact of these prescribed accounting practices decreased the
statutory capital and surplus of Metropolitan Life Insurance Company by
$1.2 billion and $1.6 billion at December 31, 2021 and 2020, respectively,
compared to what capital and surplus would have been had it been measured under
NAIC guidance.
Statutory net income (loss) of Metropolitan Life Insurance Company, a New
York domiciled insurer, was $3.5 billion, $3.4 billion and $3.9 billion at
December 31, 2021, 2020 and 2019, respectively. Statutory capital and surplus
was $11.8 billion and $11.3 billion at December 31, 2021 and 2020,
respectively. All such amounts are derived from the statutory-basis financial
statements as filed with the NYDFS.
Dividend Restrictions
Under the New York State Insurance Law, Metropolitan Life Insurance Company
is permitted, without prior insurance regulatory clearance, to pay stockholder
dividends to MetLife, Inc. in any calendar year based on either of two
standards. Under one standard, Metropolitan Life Insurance Company is
permitted, without prior insurance regulatory clearance, to pay dividends out
of earned surplus (defined as positive unassigned funds (surplus), excluding
85% of the change in net unrealized capital gains or losses (less capital gains
tax), for the immediately preceding calendar year), in an amount up to the
greater of: (i) 10% of its surplus to policyholders as of the end of the
immediately preceding calendar year, or (ii) its statutory net gain from
operations for the immediately preceding calendar year (excluding realized
capital gains), not to exceed 30% of surplus to policyholders as of the end of
the immediately preceding calendar year. In addition, under this standard,
Metropolitan Life Insurance Company may not, without prior insurance regulatory
clearance, pay any dividends in any calendar year immediately following a
calendar year for which its net gain from operations, excluding realized
capital gains, was negative. Under the second standard, if dividends are paid
out of other than earned surplus, Metropolitan Life Insurance Company may,
without prior insurance regulatory clearance, pay an amount up to the lesser
of: (i) 10% of its surplus to policyholders as of the end of the immediately
preceding calendar year, or (ii) its statutory net gain from operations for the
immediately preceding calendar year (excluding realized capital gains). In
addition, Metropolitan Life Insurance Company will be permitted to pay a
dividend to MetLife, Inc. in excess of the amounts allowed under both standards
only if it files notice of its intention to declare such a dividend and the
amount thereof with the New York Superintendent of Financial Services (the
"Superintendent") and the Superintendent either approves the distribution of
the dividend or does not disapprove the dividend within 30 days of its filing.
Under the New York State Insurance Law, the Superintendent has broad discretion
in determining whether the financial condition of a stock life insurance
company would support the payment of such dividends to its stockholder.
Metropolitan Life Insurance Company paid $3.4 billion and $2.8 billion in
dividends to MetLife, Inc. for the years ended December 31, 2021 and 2020,
respectively, including amounts where regulatory approval was obtained as
required. Under New
MLIC-105
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
12. Equity (continued)
York State Insurance Law, Metropolitan Life Insurance Company has calculated
that it may pay approximately $3.5 billion to MetLife, Inc. without prior
regulatory approval by the end of 2022.
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:
Unrealized Foreign Defined
Investment Gains Unrealized Currency Benefit
(Losses), Net of Gains (Losses) Translation Plans
Related Offsets (1) on Derivatives Adjustments Adjustment Total
-------------------- -------------- ------------- ---------- -----------
(In millions)
Balance at
December 31, 2018... $ 2,515 $ 1,382 $ (74) $ (261) $ 3,562
OCI before
reclassifications... 7,993 516 (32) (167) 8,310
Deferred income
tax benefit
(expense)........... (1,678) (109) 9 35 (1,743)
----------- ----------- ---------- ---------- -----------
AOCI before
reclassifications,
net of income
tax............... 8,830 1,789 (97) (393) 10,129
Amounts
reclassified from
AOCI................ 60 (237) -- 24 (153)
Deferred income
tax benefit
(expense)........... (13) 50 -- (5) 32
----------- ----------- ---------- ---------- -----------
Amounts
reclassified
from AOCI, net
of income tax..... 47 (187) -- 19 (121)
----------- ----------- ---------- ---------- -----------
Cumulative effects
of changes in
accounting
principles.......... (1) 22 -- -- 21
Deferred income
tax benefit
(expense),
cumulative
effects of
changes in
accounting
principles.......... -- (4) -- -- (4)
----------- ----------- ---------- ---------- -----------
Cumulative
effects of
changes in
accounting
principles, net
of income tax..... (1) 18 -- -- 17
----------- ----------- ---------- ---------- -----------
Balance at
December 31, 2019... 8,876 1,620 (97) (374) 10,025
OCI before
reclassifications... 1,852 1,144 54 (145) 2,905
Deferred income
tax benefit
(expense)........... (391) (240) (10) 30 (611)
----------- ----------- ---------- ---------- -----------
AOCI before
reclassifications,
net of income
tax............... 10,337 2,524 (53) (489) 12,319
Amounts
reclassified from
AOCI................ 59 (928) -- 37 (832)
Deferred income
tax benefit
(expense)........... (12) 195 -- (8) 175
----------- ----------- ---------- ---------- -----------
Amounts
reclassified
from AOCI, net
of income tax..... 47 (733) -- 29 (657)
----------- ----------- ---------- ---------- -----------
Balance at
December 31, 2020... 10,384 1,791 (53) (460) 11,662
OCI before
reclassifications... (2,564) 30 9 44 (2,481)
Deferred income
tax benefit
(expense)........... 586 (8) (1) (9) 568
----------- ----------- ---------- ---------- -----------
AOCI before
reclassifications,
net of income
tax............... 8,406 1,813 (45) (425) 9,749
Amounts
reclassified from
AOCI................ 102 81 -- 38 221
Deferred income
tax benefit
(expense)........... (23) (22) -- (8) (53)
----------- ----------- ---------- ---------- -----------
Amounts
reclassified
from AOCI, net
of income tax..... 79 59 -- 30 168
----------- ----------- ---------- ---------- -----------
Balance at
December 31, 2021... $ 8,485 $ 1,872 $ (45) $ (395) $ 9,917
=========== =========== ========== ========== ===========
--------
(1)See Note 7 for information on offsets to investments related to policyholder
liabilities, DAC, VOBA and DSI.
MLIC-106
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
12. Equity (continued)
Information regarding amounts reclassified out of each component of AOCI was
as follows:
Consolidated Statements of
Years Ended December 31, Operations Locations
- ----------------------------------- ------------------------------
2021 2020 2019
----------- ---------- ----------
AOCI Components Amounts Reclassified from AOCI
--------------- -----------------------------------
(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses).......... $ (67) $ (30) $ 17 Net investment gains (losses)
Net unrealized investment gains (losses).......... (13) (18) (16) Net investment income
Net unrealized investment gains (losses).......... (22) (11) (61) Net derivative gains (losses)
----------- ---------- ----------
Net unrealized investment gains (losses), before
income tax..................................... (102) (59) (60)
Income tax (expense) benefit...................... 23 12 13
----------- ---------- ----------
Net unrealized investment gains (losses), net of
income tax..................................... (79) (47) (47)
----------- ---------- ----------
Unrealized gains (losses) on derivatives - cash
flow hedges:
Interest rate derivatives......................... 57 36 23 Net investment income
Interest rate derivatives......................... 87 121 4 Net investment gains (losses)
Foreign currency exchange rate derivatives........ 4 3 (3) Net investment income
Foreign currency exchange rate derivatives........ (229) 768 212 Net investment gains (losses)
Credit derivatives................................ -- -- 1 Net investment income
----------- ---------- ----------
Gains (losses) on cash flow hedges, before
income tax..................................... (81) 928 237
Income tax (expense) benefit...................... 22 (195) (50)
----------- ---------- ----------
Gains (losses) on cash flow hedges, net of
income tax..................................... (59) 733 187
----------- ---------- ----------
Defined benefit plans adjustment: (1)
Amortization of net actuarial gains (losses)...... (43) (39) (27)
Amortization of prior service (costs) credit...... 5 2 3
----------- ---------- ----------
Amortization of defined benefit plan items,
before income tax.............................. (38) (37) (24)
Income tax (expense) benefit...................... 8 8 5
----------- ---------- ----------
Amortization of defined benefit plan items, net
of income tax.................................. (30) (29) (19)
----------- ---------- ----------
Total reclassifications, net of income tax....... $ (168) $ 657 $ 121
=========== ========== ==========
--------
(1)These AOCI components are included in the computation of net periodic
benefit costs. See Note 14.
MLIC-107
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
13. Other Revenues and Other Expenses
Other Revenues
Information on other revenues, which primarily includes fees related to
service contracts from customers, was as follows:
Years Ended December 31,
--------------------------
2021 2020 2019
-------- -------- --------
(In millions)
Prepaid legal plans.................................. $ 395 $ 371 $ 329
Recordkeeping and administrative services (1)........ 211 194 204
Administrative services-only contracts............... 219 218 210
Other revenue from service contracts from customers.. 35 36 39
-------- -------- --------
Total revenues from service contracts from customers. 860 819 782
Other (2)............................................ 756 842 791
-------- -------- --------
Total other revenues............................... $ 1,616 $ 1,661 $ 1,573
======== ======== ========
--------
(1)Related to products and businesses no longer actively marketed by the
Company.
(2)Primarily includes reinsurance ceded. See Note 5.
Other Expenses
Information on other expenses was as follows:
Years Ended December 31,
----------------------------
2021 2020 2019
-------- -------- --------
(In millions)
General and administrative expenses (1).................. $ 2,331 $ 2,285 $ 2,480
Pension, postretirement and postemployment benefit costs. 112 33 107
Premium taxes, other taxes, and licenses & fees.......... 332 399 274
Commissions and other variable expenses.................. 2,551 1,842 1,814
Capitalization of DAC.................................... (64) (51) (43)
Amortization of DAC and VOBA............................. 259 406 239
Interest expense on debt................................. 96 99 105
-------- -------- --------
Total other expenses................................... $ 5,617 $ 5,013 $ 4,976
======== ======== ========
--------
(1)Includes ($113) million, ($104) million and ($165) million for the years
ended December 31, 2021, 2020 and 2019, respectively, for the net change in
cash surrender value of investments in certain life insurance policies, net
of premiums paid.
Capitalization of DAC and Amortization of DAC and VOBA
See Note 4 for additional information on DAC and VOBA including impacts of
capitalization and amortization. See also Note 6 for a description of the DAC
amortization impact associated with the closed block.
Expenses related to Debt
See Note 11 for additional information on interest expense on debt, including
affiliated interest expense.
Affiliated Expenses
See Notes 5 and 17 for a discussion of affiliated expenses related to
reinsurance and service agreement transactions, respectively, included in the
table above.
MLIC-108
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
14. Employee Benefit Plans
Pension Benefit Plans
The Company sponsors a U.S. nonqualified defined benefit pension plan
covering MetLife employees who meet specified eligibility requirements of the
sponsor and its participating affiliates. Participating affiliates are
allocated a proportionate share of net expense related to the plan. Pension
benefits are provided utilizing either a traditional formula or cash balance
formula. The traditional formula provides benefits that are primarily based
upon years of credited service and final average earnings. The cash balance
formula utilizes hypothetical or notional accounts which credit participants
with benefits equal to a percentage of eligible pay, as well as interest
credits, determined annually based upon the annual rate of interest on 30-year
U.S. Treasury securities, for each account balance. In September 2018, the
nonqualified defined benefit pension plan was amended, effective January 1,
2023, to provide benefit accruals for all active participants under the cash
balance formula and to cease future accruals under the traditional formula. The
pension plan sponsored by the Company provides supplemental benefits in excess
of limits applicable to a qualified plan which is sponsored by an affiliate.
Obligations and Funded Status
December 31,
----------------------------
2021 2020
------------- -------------
Pension Benefits
----------------------------
(In millions)
Change in benefit obligations:
Benefit obligations at January 1,...................... $ 1,343 $ 1,210
Service costs.......................................... 17 17
Interest costs......................................... 37 40
Net actuarial (gains) losses (1)....................... (42) 143
Settlements and curtailments........................... (1) --
Benefits paid.......................................... (80) (67)
------------- -------------
Benefit obligations at December 31,.................... 1,274 1,343
------------- -------------
Change in plan assets:
Estimated fair value of plan assets at January 1,...... -- --
Employer contributions................................. 80 67
Benefits paid.......................................... (80) (67)
------------- -------------
Estimated fair value of plan assets at December 31,.... -- --
------------- -------------
Over (under) funded status at December 31,............. $ (1,274) $ (1,343)
============= =============
Amounts recognized on the consolidated balance sheets:
Other liabilities...................................... $ (1,274) $ (1,343)
AOCI:..................................................
Net actuarial (gains) losses........................... $ 510 $ 598
Prior service costs (credit)........................... (9) (14)
------------- -------------
AOCI, before income tax.............................. $ 501 $ 584
============= =============
Accumulated benefit obligation....................... $ 1,220 $ 1,275
============= =============
--------
(1)For the year ended December 31, 2021, significant sources of actuarial
(gains) losses for pension benefits included the impact of changes to
financial assumptions of ($47) million, and plan experience of $5 million.
For the year ended December 31, 2020, significant sources of actuarial
(gains) losses for pension benefits included the impact of changes to
financial assumptions of $106 million, demographic assumptions of
$5 million, and plan experience of $32 million.
MLIC-109
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
14. Employee Benefit Plans (continued)
Information on pension plans with PBOs and/or accumulated benefit obligations
("ABO") in excess of plan assets was as follows at:
December 31,
---------------------------
2021 2020 2021 2020
------ ------ ------ ------
PBO Exceeds ABO Exceeds
Estimated Estimated Fair
Fair Value Value
of Plan Assets of Plan Assets
------------- -------------
(In millions)
Projected benefit obligations... $1,274 $1,343 $1,274 $1,343
Accumulated benefit obligations. $1,220 $1,275 $1,220 $1,275
Net Periodic Benefit Costs
The components of net periodic benefit costs and benefit obligations
recognized in OCI were as follows for pension benefits:
Years Ended December 31,
-------------------------
2021 2020 2019
---- ---- ----
(In millions)
Net periodic benefit costs:
Service costs........................................................... $ 17 $ 17 $ 17
Interest costs.......................................................... 37 40 46
Settlement and curtailment (gains) losses............................... (3) -- --
Amortization of net actuarial (gains) losses............................ 43 39 27
Amortization of prior service costs (credit)............................ (2) (2) (3)
---- ---- ----
Total net periodic benefit costs (credit)............................. 92 94 87
---- ---- ----
Other changes in plan assets and benefit obligations recognized in OCI:
Net actuarial (gains) losses............................................ (42) 143 161
Prior service costs (credit)............................................ -- -- 3
Settlement and curtailment (gains) losses............................... 1 -- --
Amortization of net actuarial (gains) losses............................ (43) (39) (27)
Amortization of prior service (costs) credit............................ 2 2 3
---- ---- ----
Total recognized in OCI............................................... (82) 106 140
---- ---- ----
Total recognized in net periodic benefit costs and OCI................ $ 10 $200 $227
==== ==== ====
Assumptions
Assumptions used in determining the benefit obligation for the plan were
as follows:
Pension Benefits
----------------
December 31, 2021
Weighted average discount rate........... 2.95%
Weighted average interest crediting rate. 3.18%
Rate of compensation increase............ 2.50% - 8.00%
December 31, 2020
Weighted average discount rate........... 2.65%
Weighted average interest crediting rate. 3.46%
Rate of compensation increase............ 2.50% - 8.00%
MLIC-110
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
14. Employee Benefit Plans (continued)
Assumptions used in determining the net periodic benefit cost for the plan
were as follows:
Pension Benefits
------------------
Year Ended December 31, 2021
Weighted average discount rate........... 3.01%
Weighted average interest crediting rate. 3.24%
Rate of compensation increase............ 2.50% - 8.00%
Year Ended December 31, 2020
Weighted average discount rate........... 3.30%
Weighted average interest crediting rate. 3.38%
Rate of compensation increase............ 2.25% - 8.50%
Year Ended December 31, 2019
Weighted average discount rate........... 4.35%
Weighted average interest crediting rate. 4.01%
Rate of compensation increase............ 2.25% - 8.50%
The weighted average discount rate is determined annually based on the
yield, measured on a yield to worst basis, of a hypothetical portfolio
constructed of high quality debt instruments available on the measurement
date, which would provide the necessary future cash flows to pay the
aggregate PBO when due.
The weighted average interest crediting rate is determined annually based
on the plan selected rate, long-term financial forecasts of that rate and the
demographics of the plan participants.
Expected Future Contributions and Benefit Payments
Benefit payments due under the nonqualified pension plan are primarily
funded from the Company's general assets as they become due under the
provisions of the plan. The Company expects to make benefit payments of
$80 million in 2022.
Gross benefit payments for the next 10 years, which reflect expected
future service where appropriate, are expected to be as follows:
Pension Benefits
------------------
(In millions)
2022...... $ 83
2023...... $ 81
2024...... $ 79
2025...... $ 74
2026...... $ 80
2027-2031. $ 407
Defined Contribution Plans
The Company contributed to defined contribution plans $24 million,
$23 million and $26 million for the years ended December 31, 2021, 2020 and
2019, respectively.
MLIC-111
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
15. Income Tax
The provision for income tax was as follows:
Years Ended December 31,
-----------------------
2021 2020 2019
------ ------ -------
(In millions)
Current:
U.S. federal................................ $ (89) $ 527 $ 280
U.S. state and local........................ 5 3 1
Non-U.S..................................... 43 (2) 26
------ ------ -------
Subtotal................................... (41) 528 307
------ ------ -------
Deferred:
U.S. federal................................ 577 (18) (148)
Non-U.S..................................... (6) 24 (11)
------ ------ -------
Subtotal................................... 571 6 (159)
------ ------ -------
Provision for income tax expense (benefit). $ 530 $ 534 $ 148
====== ====== =======
The Company's income (loss) before income tax expense (benefit) was as
follows:
Years Ended December 31,
--------------------------
2021 2020 2019
-------- -------- --------
(In millions)
Income (loss):
U.S............ $ 4,143 $ 3,984 $ 3,454
Non-U.S........ 105 94 106
-------- -------- --------
Total......... $ 4,248 $ 4,078 $ 3,560
======== ======== ========
The reconciliation of the income tax provision at the U.S. statutory rate to
the provision for income tax as reported was as follows:
Years Ended December 31,
----------------------
2021 2020 2019
------ ------ ------
(In millions)
Tax provision at U.S. statutory rate........ $ 892 $ 856 $ 748
Tax effect of:
Dividend received deduction................. (39) (32) (36)
Tax-exempt income........................... (27) (26) (40)
Prior year tax (1).......................... (13) 22 (173)
Low income housing tax credits.............. (178) (202) (254)
Other tax credits........................... (38) (37) (43)
Foreign tax rate differential............... (7) (13) (7)
Change in valuation allowance............... -- (1) (7)
U.S. Tax Reform impact (2).................. -- -- (6)
Other, net (3).............................. (60) (33) (34)
------ ------ ------
Provision for income tax expense (benefit). $ 530 $ 534 $ 148
====== ====== ======
--------
(1)As discussed further below, prior year tax includes a non-cash benefit
related to an uncertain tax position of $158 million for the year ended
December 31, 2019.
MLIC-112
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
15. Income Tax (continued)
(2)For the year ended December 31, 2019, U.S. Tax Reform impact includes a $6
million tax benefit related to the effect of sequestration on the
alternative minimum tax credit.
(3)For the year ended December 31, 2021, other primarily includes a tax benefit
of $53 million related to a non-cash transfer of assets from a wholly-owned
United Kingdom ("U.K.") subsidiary to Metropolitan Life Insurance Company.
Deferred income tax represents the tax effect of the differences between the
book and tax bases of assets and liabilities. Net deferred income tax assets
and liabilities consisted of the following at:
December 31,
----------------
2021 2020
------- -------
(In millions)
Deferred income tax assets:
Policyholder liabilities and receivables..... $ 1,622 $ 1,475
Net operating loss carryforwards (1)......... 75 80
Employee benefits............................ 535 540
Tax credit carryforwards (2)................. 741 876
Litigation-related and government mandated... 84 96
Other........................................ 118 379
------- -------
Total gross deferred income tax assets..... 3,175 3,446
Less: Valuation allowance.................... 74 79
------- -------
Total net deferred income tax assets....... 3,101 3,367
------- -------
Deferred income tax liabilities:
Investments, including derivatives........... 2,147 1,738
Intangibles.................................. 28 32
DAC.......................................... 317 400
Net unrealized investment gains.............. 2,645 3,177
------- -------
Total deferred income tax liabilities...... 5,137 5,347
------- -------
Net deferred income tax asset (liability).. $(2,036) $(1,980)
======= =======
--------
(1) The Company has recorded a deferred tax asset of $75 million primarily
related to U.S. state net operating loss carryforwards and an offsetting
valuation allowance for the year ended December 31, 2021. U.S. state net
operating loss carryforwards will expire between 2022 and 2041, whereas
others have an unlimited carryforward period.
(2) Tax credit carryforwards for the year ended December 31, 2021 primarily
reflect general business credits expiring between 2038 and 2041 and are
reduced by $43 million related to unrecognized tax benefits.
The Company participates in a tax sharing agreement with MetLife, Inc., as
described in Note 1. Pursuant to this tax sharing agreement, the amounts due to
(from) MetLife, Inc. included ($120) million and $183 million at
December 31, 2021 and 2020, respectively.
The Company files income tax returns with the U.S. federal government and
various U.S. state and local jurisdictions, as well as non-U.S. jurisdictions.
The Company is under continuous examination by the Internal Revenue Service
("IRS") and other tax authorities in jurisdictions in which the Company has
significant business operations. The income tax years under examination vary by
jurisdiction and subsidiary. The Company is no longer subject to U.S. federal,
state, or local income tax examinations for years prior to 2014.
In 2021, the Company filed amended Federal income tax returns with the IRS
for MetLife, Inc. and subsidiaries for tax years 2010 through 2013. In 2021,
the IRS reviewed and acknowledged acceptance of the 2010 through 2013 amended
Federal income tax returns and closed the years to further audit.
MLIC-113
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
15. Income Tax (continued)
The Company filed refund claims in 2017 with the IRS for 2000 through 2002
to recover tax and interest predominantly related to the disallowance of
certain foreign tax credits for which the Company received a statutory notice
of deficiency in 2015 and paid the tax thereon. The disallowed foreign tax
credits relate to certain non-U.S. investments held by MLIC in support of its
life insurance business through a U.K. investment subsidiary that was
structured as a joint venture until early 2009. In 2020, the Company received
refunds from these claims filed in 2017, and as a result, the Company recorded
a $28 million interest benefit ($22 million, net of tax) included in other
expenses.
For tax years 2000 through 2002 and tax years 2007 through 2009, the Company
entered into binding agreements with the IRS in 2019 under which all remaining
issues regarding the foreign tax credit matter noted above were resolved.
Accordingly, in 2019, the Company recorded a non-cash benefit to net income of
$226 million, net of tax, comprised of a $158 million tax benefit recorded in
provision for income tax expense (benefit) and a $86 million interest benefit
($68 million, net of tax) included in other expenses.
The Company's overall liability for unrecognized tax benefits may increase
or decrease in the next 12 months. For example, U.S. federal tax legislation
and regulation could impact unrecognized tax benefits. A reasonable estimate of
the increase or decrease cannot be made at this time. However, the Company
continues to believe that the ultimate resolution of the pending issues will
not result in a material change to its consolidated financial statements,
although the resolution of income tax matters could impact the Company's
effective tax rate for a particular future period.
A reconciliation of the beginning and ending amount of unrecognized tax
benefits was as follows:
Years Ended December 31,
-----------------------
2021 2020 2019
----- ---- ------
(In millions)
Balance at January 1,.......................................................... $ 35 $33 $ 442
Additions for tax positions of prior years..................................... -- 1 --
Reductions for tax positions of prior years (1)................................ (14) -- (158)
Additions for tax positions of current year.................................... 2 1 3
Settlements with tax authorities (2)........................................... -- -- (254)
----- ---- ------
Balance at December 31,........................................................ $ 23 $35 $ 33
===== ==== ======
Unrecognized tax benefits that, if recognized, would impact the effective rate. $ 23 $35 $ 33
===== ==== ======
--------
(1)The decreases in 2021 and 2019 are primarily related to non-cash benefits
from tax audit settlements.
(2)The decrease in 2019 is primarily related to tax audit settlements, of which
$251 million was reclassified to the current income tax payable account.
The Company classifies interest accrued related to unrecognized tax benefits
in interest expense, included within other expenses.
Interest was as follows:
Years Ended December 31,
-----------------------
2021 2020 2019
---- ---- ------
(In millions)
Interest expense (benefit) recognized on the consolidated statements
of operations (1).................................................. $(9) $4 $(187)
MLIC-114
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
15. Income Tax (continued)
December 31,
------------
2021 2020
---- ----
(In millions)
Interest included in other liabilities on the consolidated balance sheets. $4 $13
--------
(1)The decrease in 2019 is primarily related to tax audit settlements, of which
$68 million was recorded in other expenses and $119 million was reclassified
to the current income tax payable account.
16. Contingencies, Commitments and Guarantees
Contingencies
Litigation
The Company is a defendant in a large number of litigation matters.
Putative or certified class action litigation and other litigation and claims
and assessments against the Company, in addition to those discussed below and
those otherwise provided for in the Company's consolidated financial
statements, have arisen in the course of the Company's business, including,
but not limited to, in connection with its activities as an insurer, mortgage
lending bank, employer, investor, investment advisor, broker-dealer, and
taxpayer.
The Company also receives and responds to subpoenas or other inquiries
seeking a broad range of information from state regulators, including state
insurance commissioners; state attorneys general or other state governmental
authorities; federal regulators, including the U.S. Securities and Exchange
Commission; federal governmental authorities, including congressional
committees; and the Financial Industry Regulatory Authority, as well as from
local and national regulators and government authorities in jurisdictions
outside the United States where the Company conducts business. The issues
involved in information requests and regulatory matters vary widely, but can
include inquiries or investigations concerning the Company's compliance with
applicable insurance and other laws and regulations. The Company cooperates
in these inquiries.
It is not possible to predict the ultimate outcome of all pending
investigations and legal proceedings. The Company establishes liabilities for
litigation and regulatory loss contingencies when it is probable that a loss
has been incurred and the amount of the loss can be reasonably estimated.
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 December 31, 2021. 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 matters where a loss is believed to be
reasonably possible, but not probable, the Company has not made an accrual.
As of December 31, 2021, the Company estimates the aggregate range of
reasonably possible losses in excess of amounts accrued for these matters to
be $0 to $100 million.
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
MLIC-115
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
16. Contingencies, Commitments and Guarantees (continued)
have provided sufficient information to support an assessment of the range of
possible loss, such as quantification of a damage demand from plaintiffs,
discovery from other parties and investigation of factual allegations,
rulings by the court on motions or appeals, analysis by experts, and the
progress of settlement negotiations. On a quarterly and annual basis, the
Company reviews relevant information with respect to litigation contingencies
and updates its accruals, disclosures and estimates of reasonably possible
losses or ranges of loss based on such reviews.
Asbestos-Related Claims
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 or selling asbestos-containing products, nor has
Metropolitan Life Insurance Company issued liability or workers'
compensation insurance to companies in the business of manufacturing or
selling asbestos-containing products. The lawsuits principally have focused
on allegations with respect to certain research, publication and other
activities of one or more of Metropolitan Life Insurance Company's employees
during the period from the 1920s through approximately the 1950s 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's defenses include that:
(i) Metropolitan Life Insurance Company owed no duty to the 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. 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.
The approximate total number of asbestos personal injury claims pending
against Metropolitan Life Insurance Company as of the dates indicated, the
approximate number of new claims during the years ended on those dates and
the approximate total settlement payments made to resolve asbestos personal
injury claims at or during those years are set forth in the following table:
December 31,
--------------------------------------
2021 2020 2019
------------ ------------ ------------
(In millions, except number of claims)
Asbestos personal injury claims at year end. 58,785 60,618 61,134
Number of new claims during the year........ 2,824 2,496 3,187
Settlement payments during the year (1)..... $ 53.0 $ 52.9 $ 49.4
-------------
(1) Settlement payments represent payments made by Metropolitan Life Insurance
Company during the year in connection with settlements made in that year
and in prior years. Amounts do not include Metropolitan Life Insurance
Company's attorneys' fees and expenses.
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.
MLIC-116
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
16. Contingencies, Commitments and Guarantees (continued)
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 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, but management does not believe
any such charges are likely to have a material effect on the Company's
financial position.
The Company believes adequate provision has been made in its consolidated
financial statements for all probable and reasonably estimable losses for
asbestos-related claims. Metropolitan Life Insurance Company's recorded
asbestos liability covers pending claims, claims not yet asserted, and legal
defense costs and is based on estimates and includes significant assumptions
underlying its analysis.
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. Based upon its
regular reevaluation of its exposure from asbestos litigation, Metropolitan
Life Insurance Company has updated its recorded liability for
asbestos-related claims to $372 million at December 31, 2021. The recorded
liability was $425 million at December 31, 2020.
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. The Company intends
to defend this action vigorously.
Total Asset Recovery Services, LLC. v. MetLife, Inc., et al. (Supreme Court
of the State of New York, County of New York, filed December 27, 2017)
Total Asset Recovery Services (the "Relator") brought an action under the
qui tam provision of the New York False Claims Act (the "Act") on behalf of
itself and the State of New York. The Relator originally filed this action
under seal in 2010, and the complaint was unsealed on December 19, 2017. The
Relator alleges that MetLife, Inc., Metropolitan Life Insurance Company, and
several other insurance companies violated the Act by filing false unclaimed
property reports with the State of New York from 1986 to 2017, to avoid
having to escheat the proceeds of more than 25,000 life insurance policies,
including policies for which the defendants escheated funds as part of their
demutualizations in the late 1990s. The Relator seeks treble damages and
other relief. The Appellate Division of the New York State Supreme Court,
First Department, reversed the court's order granting MetLife, Inc. and
Metropolitan Life Insurance Company's motion to dismiss and remanded the
case to the trial court where the Relator has filed an amended complaint.
The Company intends to defend the action vigorously.
MLIC-117
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
16. Contingencies, Commitments and Guarantees (continued)
Matters Related to Group Annuity Benefits
In 2018, the Company announced that it identified a material weakness in
its internal control over financial reporting related to the practices and
procedures for estimating reserves for certain group annuity benefits.
Several regulators have made inquiries into this issue and it is possible
that other 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 payments, 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 incur significant costs in connection with
these actions.
Commitments
Mortgage Loan Commitments
The Company commits to lend funds under mortgage loan commitments. The
amounts of these mortgage loan commitments were $3.1 billion and $2.4 billion
at December 31, 2021 and 2020, respectively.
Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge
Loans and Private Corporate Bond Investments
The Company commits to fund partnership investments and to lend funds
under bank credit facilities, bridge loans and private corporate bond
investments. The amounts of these unfunded commitments were $4.5 billion and
$4.3 billion at December 31, 2021 and 2020, 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 $289 million, with a cumulative maximum of
$405 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 $2 million and $3 million at
December 31, 2021 and 2020, respectively, for indemnities, guarantees and
commitments.
17. Related Party Transactions
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. The bases for such charges are modified and adjusted by management
when necessary or appropriate to reflect fairly and equitably
MLIC-118
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
17. Related Party Transactions (continued)
the actual cost incurred by the Company and/or its affiliates. Expenses and
fees incurred with affiliates related to these agreements, recorded in other
expenses, were $2.5 billion, $2.4 billion and $2.9 billion for the years ended
December 31, 2021, 2020 and 2019, respectively. Total revenues received from
affiliates related to these agreements were $40 million, $40 million and
$29 million for the years ended December 31, 2021, 2020 and 2019, respectively.
The Company had net payables to affiliates, related to the items discussed
above, of $143 million and $198 million at December 31, 2021 and 2020,
respectively.
See Notes 1, 5, 7, 11 and 12 for additional information on related party
transactions.
MLIC-119
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Schedule I
Consolidated Summary of Investments --
Other Than Investments in Related Parties
December 31, 2021
(In millions)
Estimated Amount at
Cost or Fair Which Shown on
Types of Investments Amortized Cost (1) Value Balance Sheet
-------------------- ---------------------- ------------------ --------------------
Fixed maturity securities AFS:
Bonds:
U.S. government and agency................... $ 26,782 $ 31,222 $ 31,222
Public utilities............................. 6,104 7,279 7,279
Municipals................................... 6,884 8,728 8,728
Foreign government........................... 4,330 4,946 4,946
All other corporate bonds.................... 72,005 80,002 80,002
---------------------- ------------------ --------------------
Total bonds................................ 116,105 132,177 132,177
Mortgage-backed and asset-backed securities.. 41,555 42,902 42,902
Redeemable preferred stock................... 694 806 806
---------------------- ------------------ --------------------
Total fixed maturity securities AFS........ 158,354 175,885 175,885
Mortgage loans............................... 60,755 60,219
Policy loans................................. 5,816 5,816
Real estate and real estate joint ventures... 7,692 7,692
Real estate acquired in satisfaction of debt. 181 181
Other limited partnership interests.......... 8,754 8,754
Short-term investments....................... 4,889 4,866
Other invested assets........................ 19,860 19,860
---------------------- --------------------
Total investments.......................... $ 266,301 $ 283,273
====================== ====================
--------
(1) Amortized cost for fixed maturity securities AFS, mortgage loans, policy
loans and short-term investments represents original cost reduced by
repayments and adjusted for amortization of premium or accretion of
discount; for real estate, cost represents original cost reduced by
impairments and depreciation; for real estate joint ventures and other
limited partnership interests, cost represents original cost reduced for
impairments or original cost adjusted for equity in earnings and
distributions.
MLIC-120
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Schedule III
Consolidated Supplementary Insurance Information
December 31, 2021 and 2020
(In millions)
Future Policy Benefits,
Other Policy-Related
DAC Balances and Policyholder Policyholder
and Policyholder Dividend Account Dividends Unearned Unearned
Segment VOBA Obligation Balances Payable Premiums (1), (2) Revenue (1)
------------------ -------- ----------------------- ------------ ------------ ----------------- ------------
2021
U.S............... $ 401 $ 72,530 $ 72,933 $ -- $ 304 $ 21
MetLife Holdings.. 2,191 69,367 21,306 312 154 158
Corporate & Other. 6 153 220 -- -- --
-------- ----------------------- ------------ ------------ ----------------- ------------
Total........... $ 2,598 $ 142,050 $ 94,459 $ 312 $ 458 $179
======== ======================= ============ ============ ================= ============
2020
U.S............... $ 398 $ 73,274 $ 74,283 $ -- $ 171 $ 23
MetLife Holdings.. 2,251 70,845 22,383 397 150 157
Corporate & Other. -- 201 (31) -- -- --
-------- ----------------------- ------------ ------------ ----------------- ------------
Total........... $ 2,649 $ 144,320 $ 96,635 $ 397 $ 321 $180
======== ======================= ============ ============ ================= ============
--------
(1) Amounts are included within the future policy benefits, other
policy-related balances and policyholder dividend obligation column.
(2) Includes premiums received in advance.
MLIC-121
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Schedule III
Consolidated Supplementary Insurance Information -- (continued)
For the Years Ended December 31, 2021, 2020 and 2019
(In millions)
Policyholder Amortization of
Benefits and DAC and
Premiums and Claims and VOBA
Universal Life Net Interest Credited Charged to
and Investment-Type Investment to Policyholder Other Other
Segment Product Policy Fees Income Account Balances Expenses Expenses (1)
------------------ ------------------- ----------- ----------------- --------------- -------------
2021
U.S............... $ 24,566 $ 6,960 $ 25,893 $ 56 $ 3,212
MetLife Holdings.. 3,687 5,561 5,557 203 1,574
Corporate & Other. -- (35) -- -- 1,300
------------------- ----------- ----------------- --------------- -------------
Total........... $ 28,253 $ 12,486 $ 31,450 $ 259 $ 6,086
=================== =========== ================= =============== =============
2020
U.S............... $ 18,822 $ 6,053 $ 19,424 $ 56 $ 3,042
MetLife Holdings.. 3,914 4,355 5,897 350 1,707
Corporate & Other. 1 (158) -- -- 759
------------------- ----------- ----------------- --------------- -------------
Total........... $ 22,737 $ 10,250 $ 25,321 $ 406 $ 5,508
=================== =========== ================= =============== =============
2019
U.S............... $ 19,547 $ 6,481 $ 20,906 $ 55 $ 2,904
MetLife Holdings.. 4,097 4,579 5,769 184 1,900
Corporate & Other. 1 (87) -- -- 971
------------------- ----------- ----------------- --------------- -------------
Total........... $ 23,645 $ 10,973 $ 26,675 $ 239 $ 5,775
=================== =========== ================= =============== =============
--------
(1) Includes other expenses and policyholder dividends, excluding amortization
of DAC and VOBA charged to other expenses.
MLIC-122
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Schedule IV
Consolidated Reinsurance
December 31, 2021, 2020 and 2019
(Dollars in millions)
% Amount
Assumed
Gross Amount Ceded Assumed Net Amount to Net
------------- ------------ ---------- ------------- ----------
2021
Life insurance in-force..... $ 3,991,763 $ 164,834 $ 546,176 $ 4,373,105 12.5%
============= ============ ========== =============
Insurance premium
Life insurance (1).......... $ 13,631 $ 792 $ 4,080 $ 16,919 24.1%
Accident & health insurance. 9,377 146 41 9,272 0.4%
------------- ------------ ---------- -------------
Total insurance premium.... $ 23,008 $ 938 $ 4,121 $ 26,191 15.7%
============= ============ ========== =============
2020
Life insurance in-force..... $ 3,793,310 $ 178,420 $ 507,488 $ 4,122,378 12.3%
============= ============ ========== =============
Insurance premium
Life insurance (1).......... $ 12,304 $ 862 $ 870 $ 12,312 7.1%
Accident & health insurance. 8,517 127 39 8,429 0.5%
------------- ------------ ---------- -------------
Total insurance premium.... $ 20,821 $ 989 $ 909 $ 20,741 4.4%
============= ============ ========== =============
2019
Life insurance in-force..... $ 3,810,612 $ 257,882 $ 525,190 $ 4,077,920 12.9%
============= ============ ========== =============
Insurance premium
Life insurance (1).......... $ 14,114 $ 879 $ 785 $ 14,020 5.6%
Accident & health insurance. 7,690 128 26 7,588 0.3%
------------- ------------ ---------- -------------
Total insurance premium.... $ 21,804 $ 1,007 $ 811 $ 21,608 3.8%
============= ============ ========== =============
--------
(1) Includes annuities with life contingencies.
For the year ended December 31, 2021, reinsurance ceded and assumed included
affiliated transactions for life insurance in-force of $13.7 billion and
$1.9 billion, respectively, and life insurance premiums of $114 million and
$3.2 billion, respectively. For the year ended December 31, 2020, reinsurance
ceded and assumed included affiliated transactions for life insurance in-force
of $14.0 billion and $1.1 billion, respectively, and life insurance premiums of
$113 million and $8 million, respectively. For the year ended December 31,
2019, reinsurance ceded and assumed included affiliated transactions for life
insurance in-force of $14.2 billion and $1.3 billion, respectively, and life
insurance premiums of $115 million and $9 million, respectively.
MLIC-123
[THIS PAGE INTENTIONALLY LEFT BLANK]
| 1. | Previously filed with the initial filing of the Registration Statement of Metropolitan Variable Account A of Metropolitan Life Insurance Company on May 28, 1969. |
| 2. | Filed with Post-Effective Amendment No. 19 to this Registration Statement on Form N-4 on February 27, 1996. |
| 3. | Filed with Post-Effective Amendment No. 6 to this Registration Statement on Form N-4 on April 1, 1988. |
| 4. | Filed with Post-Effective Amendment No. 21 to this Registration Statement on Form N-4 on February 28, 1997. |
| 5. | Filed with Post-Effective Amendment No. 22 to this Registration Statement on Form N-4 on April 30, 1997. |
| 6. | Filed with Post-Effective Amendment No. 23 to this Registration Statement on Form N-4 on April 3, 1998. |
| 7. | Filed with Post-Effective Amendment No. 24 to this Registration Statement on Form N-4 on January 12, 1999. |
| 8. | Filed with Post-Effective Amendment No. 26 to this Registration Statement on Form N-4 on April 6, 2000. |
| 9. | Filed with Post-Effective Amendment No. 27 to this Registration Statement on Form N-4 on April 3, 2001. |
| 10. | Filed with Post-Effective Amendment No. 10 to Registration Statement No. 33-57320 for Metropolitan Life Separate Account UL on Form S-6 on September 18, 2000. As incorporated herein by reference. |
| 11. | Filed with Pre-Effective Amendment No. 1 to Registration Statement No. 333-52366 for Metropolitan Life Separate Account E on Form N-4 on August 3, 2001. As incorporated herein by reference. |
| 12. | Amended and Restated Charter of Metropolitan Life Insurance Company filed with Registration Statement No. 333-83716 for Metropolitan Life Separate Account E on Form N-4 on March 5, 2002. As incorporated herein by reference. |
| 13. | Filed with Post-Effective Amendment No. 29 to this Registration Statement on Form N-4 on April 10, 2003. |
| 14. | Filed with Post-Effective Amendment No. 30 to this Registration Statement on Form N-4 on October 22, 2003. |
| 15. | Filed with Post-Effective Amendment No. 1 to this Registration Statement on Form S-6 on April 25, 1985. |
| 16. | Filed with Post-Effective Amendment No. 35 to this Registration Statement on Form N-4 on April 27, 2006. |
| 17. | Filed with Post-Effective Amendment No. 7 to this Registration Statement on Form N-4 on April 8, 2005. |
| 18. | Amended and Restated By-Laws of Metropolitan Life Insurance Company filed with Post-Effective Amendment No. 16 to Registration Statement No. 333-52366 for Metropolitan Life Separate Account E on Form N-4 on January 17, 2008. As incorporated herein by reference. |
| 19. | Filed with Post-Effective Amendment No. 9 to Registration Statement No. 333-83716 for Metropolitan Life Separate Account E on Form N-4 on September 10, 2007. As incorporated herein by reference. |
| 20. | Filed with Post-Effective Amendment No. 15 to Registration Statement No. 333-83716 for Metropolitan Life Separate Account E on Form N-4 on April 12, 2011. As incorporated herein by reference. |
| 21. | Filed with Post-Effective Amendment No. 2 to Registration Statement No. 333-162586 for Metropolitan Life Separate Account E on Form N-4 on April 12, 2011. As incorporated herein by reference. |
| 22. | [Reserved] |
| 23. | Filed with Post-Effective Amendment No. 2 to Registration Statement File No. 333-153109 for Metropolitan Life Separate Account E on Form N-4 on June 26, 2009. As incorporated herein by reference. |
| 24. | Filed with Post-Effective Amendment No. 16 to Registration Statement File No. 333-83716 for Metropolitan Life Separate Account E on Form N-4 on April 12, 2012. As incorporated herein by reference. |
| 25. | Filed with Post-Effective Amendment No. 17 to Registration Statement File No. 333-83716 for Metropolitan Life Separate Account E on Form N-4 on April 11, 2013. As incorporated herein by reference. |
| 26. | Filed with Pre-Effective Amendment No. 1 to the Registration Statement on Form N-4 for Metropolitan Life Separate Account E (File Nos. 333-160722) filed November 2, 2009. As incorporated herein by reference. |
| 27. | Filed with Post-Effective Amendment No. 18 to Registration Statement File No. 333-176654 for Metropolitan Life Separate Account E on Form N-4 on April 13, 2016. As incorporated herein by reference. |
| 28. | Filed with Registration Statement for Metropolitan Life Insurance Co. File 333-234816 on Form S-3, filed November 22, 2019. |
| 29. | Filed with Post-Effective Amendment No. 19 to Registration Statement File No. 333-176654 for Metropolitan Life Separate Account E on Form N-4 on April 12, 2017. As incorporated herein by reference. |
| 30. | Filed with Post-Effective Amendment No. 3 to Registration Statement File No. 333-198314 for Metropolitan Life Separate Account E on Form N-4 on April 12, 2017. As incorporated herein by reference. |
| 31. | Filed with Post-Effective Amendment No. 46 to Registration Statement File No. 2-90380 for Metropolitan Life Separate Account E on Form N-4 on April 26, 2017. As incorporated herein by reference. |
| 32. | [Reserved]. |
| 33. | Filed with Post-Effective Amendment No. 5 to Registration Statement File No. 333-190296 for Metropolitan Life Separate Account E on Form N-4 on April 10, 2018. As incorporated herein by reference. |
| 34. | Filed with Post-Effective Amendment No. 27 to the Registration Statement for Metropolitan Life Separate Account E on Form N-4 (File No. 333-83716) filed April 28, 2021. As incorporated herein by reference. |
| 35. | [Reserved]. |
| 36. | Filed with Post-Effective Amendment No. 8 to Registration Statement File No. 333-190296 for Metropolitan Life Separate Account E on Form N-4 on February 26, 2021. As incorporated herein by reference. |
| 37. | Filed with Post-Effective Amendment No. 48 to Registration Statement File No. 2-90380 for Metropolitan Life Separate Account E on Form N-4 on April 23, 2019. As incorporated herein by reference. |
| 38. | [Reserved]. |
| 39. | Filed with Post-Effective Amendment No. 2 to Registration Statement No. 333-52366 for Metropolitan Life Separate Account E on Form N-4 on April 10, 2003. As incorporated herein by reference. |
| 40. | Filed with Registration Statement No. 333-176654 for Metropolitan Life Separate Account E on Form N-4 on Sept 2, 2011. As incorporated herein by reference. |
| 41. | Filed with Pre-Effective Amendment No. 1 to Registration Statement No. 333-198314 on Form N-4 on October 31, 2014. As incorporated herein by reference. |
| 42. | Filed with Post-Effective Amendment No. 42 to this Registration Statement No. 002-90380 on Form N-4 on April 16, 2013. As incorporated herein by reference. |
| 43. | Filed herewith. |
| Name and Principal Business Address | Positions and Offices with Depositor | |
| R.
Glenn Hubbard Chairman of the Board, MetLife, Inc. Dean Emeritus and Russell L. Carson Professor of Economics and Finance, Graduate School of Business, and Professor of Economics, Faculty of Arts and Sciences, Columbia University 200 Park Avenue New York, NY 10166 |
Chairman of the Board and Director | |
| Michel
A. Khalaf President and Chief Executive Officer MetLife, Inc. 200 Park Avenue New York, NY 10166 |
President and Chief Executive Officer and Director | |
| Cheryl
W. Grisé Former Executive Vice President Northeast Utilities 200 Park Avenue New York, NY 10166 |
Director | |
| Carlos
M. Gutierrez Former U.S. Secretary of Commerce, Co-Founder, Chairman and Chief Executive Officer EmPath, Inc. 200 Park Avenue New York, NY 10166 |
Director | |
| Gerald
L. Hassell Former Chairman of the Board and Chief Executive Officer The Bank of New York Mellon Corporation 200 Park Avenue New York, NY 10166 |
Director | |
| David
L. Herzog Former Chief Financial Officer and Executive Vice President American International Group 200 Park Avenue New York, NY 10166 |
Director | |
| Edward
J. Kelly, III Former Chairman, Institutional Clients Group Citigroup, Inc. 200 Park Avenue New York, NY 10166 |
Director | |
| William
E. Kennard Former U.S. Ambassador to the European Union 200 Park Avenue New York, NY 10166 |
Director |
| Name and Principal Business Address | Positions and Offices with Depositor | |
| Catherine
R. Kinney Former President and Co-Chief Operating Officer New York Stock Exchange, Inc. 200 Park Avenue New York, NY 10166 |
Director | |
| Diana
L. McKenzie Former Chief Information Officer Workday, Inc. 200 Park Avenue New York, NY 10166 |
Director | |
| Denise
M. Morrison Former President and Chief Executive Officer Campbell Soup Company 1 Campbell Place Camden, NJ 08103 |
Director | |
| Mark
A. Weinberger Former Global Chairman and Chief Executive Officer EY 200 Park Avenue New York, NY 10166 |
Director |
| NAME | POSITIONS WITH DEPOSITOR | |
| Michel A. Khalaf | President and Chief Executive Officer | |
| Marlene Debel | Executive Vice President and Chief Risk Officer | |
| Stephen W. Gauster | Executive Vice President and General Counsel | |
| John Dennis McCallion | Executive Vice President and Chief Financial Officer | |
| Lyndon Oliver | Executive Vice President and Treasurer | |
| Bill Pappas | Executive Vice President, Global Technology & Operations | |
| Susan Podlogar | Executive Vice President and Chief Human Resources Officer | |
| Tamara Schock | Executive Vice President and Chief Accounting Officer | |
| Ramy Tadros | President, U.S. Business | |
| Steven J. Goulart | Executive Vice President and Chief Investment Officer | |
| Kishore Ponnavolu | President, Asia |
| A. | MetLife Group, Inc. (NY) | ||||||||||
| 1. | MetLife Pet Insurance Solutions, LLC (KY) | ||||||||||
| 2. | Versant Health, Inc. (DE) | ||||||||||
| a) | Versant Health Holdco, Inc . (DE) | ||||||||||
| i) | Versant Health Consolidation Corp, (DE) | ||||||||||
| 1) | WDV Acquisition Corp, (DE) | ||||||||||
| aa) | Davis Vision, Inc. (NY) | ||||||||||
| aaa) | Versant Health Lab, LLC (DE) | ||||||||||
| bbb) | DavisVision IPA, Inc. (NY) | ||||||||||
| 2) | Superior Vision Holdings, Inc. (DE) | ||||||||||
| aa) | Superior Procurement, Inc. (DE) | ||||||||||
| bb) | Superior Vision Services, Inc. (DE) | ||||||||||
| aaa) | Superior Vision Insurance, Inc. (AZ) | ||||||||||
| 3) | Block Vision Holdings Corporation (DE) | ||||||||||
| aa) | Vision Twenty-One Managed Eye Care IPA, Inc. (NY) | ||||||||||
| bb) | Superior Vision Insurance Plan of Wisconsin, Inc. (WI) | ||||||||||
| cc) | Vision 21 Physician Practice Management Company (FL) | ||||||||||
| dd) | Superior Vision Benefit Management, Inc. (NJ) | ||||||||||
| aaa) | Vision 21 Managed Eye Care of Tampa Bay, Inc. (FL) | ||||||||||
| bbb) | Block Vision of Texas, Inc. (TX) | ||||||||||
| ccc) | UVC Independent Practice Association, Inc. (NY) | ||||||||||
| ddd) | MEC Health Care, Inc. (MD) | ||||||||||
| eee) | Superior Vision of New Jersey, Inc. (NJ) | ||||||||||
| 3. | MetLife Services and Solutions, LLC (DE) | ||||||||||
| a) | MetLife Solutions Pte. Ltd. (SGP) | ||||||||||
| i) | MetLife Services East Private Limited (IND) - 99.99% is owned by MetLife Solutions Pte. Ltd. and .01% by Natiloportem Holdings, LLC | ||||||||||
| ii) | MetLife Global Operations Support Center Private Limited (IND) - 99.99999% is owned by MetLife Solutions Pte. Ltd. and 0.00001% is owned by Natiloportem Holdings, LLC. | ||||||||||
| B. | MetLife Home Loans, LLC (DE) | ||||||||||
| C. | Metropolitan Tower Life Insurance Company (NE) | ||||||||||
| 1. | MTL Leasing, LLC (DE) | ||||||||||
| a) | PREFCO XIV Holdings LLC (CT) | ||||||||||
| 2. | MetLife Assignment Company, Inc. (DE) | ||||||||||
| D. | MetLife Chile Inversiones Limitada (CHL) - 72.35109659% is owned by MetLife, Inc., 24.8823628% by American Life Insurance Company (“ALICO”), 2.76654057% is owned by Inversiones MetLife Holdco Dos Limitada and 0.00000004% is owned by Natiloportem Holdings, LLC. | ||||||||||
| 1. | MetLife Chile Seguros de Vida S.A. (CHL) - 99.99% is held by MetLife Chile Inversiones Limitada and 0.01% by International Technical and Advisory Services Limited. | ||||||||||
| a) | MetLife Chile Administradora de Mutuos Hipotecarios S.A. (CHL) - 99.9% is held by MetLife Chile Seguros de Vida S.A. and 0.1% is held by MetLife Chile Inversiones Limitada. | ||||||||||
| 2. | Inversiones MetLife Holdco Tres Limitada (CHL) - 97.13% of Inversiones MetLife Holdco Tres Limitada is owned by MetLife Chile Inversiones Limitada and 2.87% is owned by Inversiones MetLife Holdco Dos Limitada. | ||||||||||
| a) | AFP Provida S.A. (CHL) - 42.3815% of AFP Provida S.A. is owned by Inversiones MetLife Holdco Dos Limitada, 42.3815% is owned by Inversiones MetLife Holdco Tres Limitada, 10.9224% is owned by MetLife Chile Inversiones Limitada and the remainder is owned by the public. | ||||||||||
| i) | Provida Internacional S.A. (CHL) - 99.99% of Provida Internacional S.A. is owned by AFP Provida S.A and 0.01% is owned by MetLife Chile Inversiones Limitada. | ||||||||||
| 1) | AFP Genesis Administradora de Fondos y Fidecomisos S.A. (Ecuador) - 99.9% of AFP Genesis Administradora de Fondos y Fidecomisos S.A. is owned by Provida Internacional S.A. and 0.1% by MetLife Chile Inversiones Limitada | ||||||||||
| 3. | MetLife Chile Seguros Generales, S.A. (CHL) - 99.99% of MetLife Chile Seguros Generales S.A. is owned by MetLife Chile Inversiones Limitada and 0.01% is owned by Inversiones MetLife Holdco Dos Limitada. | ||||||||||
| E. | MetLife Digital Ventures, Inc. (DE) | ||||||||||
| F. | Metropolitan Property and Casualty Insurance Company (RI) | ||||||||||
| 1. | Metropolitan General Insurance Company (RI) | ||||||||||
| 2. | Metropolitan Casualty Insurance Company (RI) | ||||||||||
| 3. | Metropolitan Direct Property and Casualty Insurance Company (RI) | ||||||||||
| 4. | MetLife Auto & Home Insurance Agency, Inc. (RI) | ||||||||||
| 5. | Metropolitan Group Property and Casualty Insurance Company (RI) | ||||||||||
| 6. | Metropolitan Lloyds, Inc. (TX) | ||||||||||
| a) | Metropolitan Lloyds Insurance Company of Texas (TX)- Metropolitan Lloyds Insurance Company of Texas, an affiliated association, provides automobile, homeowner and related insurance for the Texas market. It is an association of individuals designated as underwriters. Metropolitan Lloyds, Inc., a subsidiary of Metropolitan Property and Casualty Insurance Company, serves as the attorney-in-fact and manages the association. | ||||||||||
| 7. | Economy Fire & Casualty Company (IL) | ||||||||||
| a) | Economy Preferred Insurance Company (IL) | ||||||||||
| b) | Economy Premier Assurance Company (IL) | ||||||||||
| G. | Newbury Insurance Company, Limited (DE) | ||||||||||
| H. | MetLife Investors Group, LLC (DE) | ||||||||||
| 1. | MetLife Investors Distribution Company (MO) | ||||||||||
| 2. | MetLife Investments Securities, LLC (DE) | ||||||||||
| (a) | MAXIS Services, LLC (DE) - MetLife, Inc. sold its interests in MAXIS Services, LLC to MAXIS GBN on December 14, 2021. | ||||||||||
| i) | MAXIS Insurance Brokerage Services, Inc. (DE) - 100% of MAXIS Insurance Brokerage Services, Inc. is owned by MAXIS Insurance Brokerage Services, Inc. (DE) | ||||||||||
| I. | Metropolitan Life Insurance Company (“MLIC”) (NY) | ||||||||||
| 1. | MTU Hotel Owner, LLC (DE) | ||||||||||
| 2. | ML-AI MetLife Member 5, LLC (DE) | ||||||||||
| 3. | Pacific Logistics Industrial South, LLC (DE) | ||||||||||
| 4. | ML Clal Member, LLC (DE) | ||||||||||
| 5. | ML Third Army Industrial Member, LLC (DE) | ||||||||||
| 6. | MFA Financing Vehicle CTR1, LLC (DE) | ||||||||||
| 7. | ML One Bedminster, LLC (DE) | ||||||||||
| a) | Pacific Logistics Industrial North, LLC (DE) | ||||||||||
| 8. | METLIFE ASHTON AUSTIN OWNER, LLC (DE) | ||||||||||
| 9. | METLIFE ACOMA OWNER, LLC (DE) | ||||||||||
| 10. | MET 1065 HOTEL, LLC (DE) | ||||||||||
| a) | ML Spokane Industrial Member, LLC (DE) | ||||||||||
| 11. | ML MATSON MILLS MEMBER LLC (DE) | ||||||||||
| 12. | White Tract II, LLC (DE) | ||||||||||
| 13. | MetLife Japan US Equity Owners LLC (DE) | ||||||||||
| 1. | ML Sloan’s Lake Member, LLC (DE) - Metropolitan Life Insurance Company owns 55% and 45% by Metropolitan Tower Life Insurance Company. | ||||||||||
| 2. | St. James Fleet Investments Two Limited (CYM) | ||||||||||
| a) | OMI MLIC Investments Limited (CYM) | ||||||||||
| 3. | MLIC Asset Holdings II LLC (DE) | ||||||||||
| 4. | CC Holdco Manager, LLC (DE) | ||||||||||
| 5. | Transmountain Land & Livestock Company (MT) | ||||||||||
| 6. | Missouri Reinsurance, Inc. (CYM) | ||||||||||
| 7. | Metropolitan Tower Realty Company, Inc. (DE) | ||||||||||
| a) | Midtown Heights, LLC (DE) | ||||||||||
| 8. | MetLife RC SF Member, LLC (DE) | ||||||||||
| a) | MNQM TRUST 2020 (DE) | ||||||||||
| 9. | 23rd Street Investments, Inc. (DE) | ||||||||||
| a) | MetLife Capital Credit L.P. (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc. and 99% Limited Partnership interest is held by Metropolitan Life Insurance Company. | ||||||||||
| b) | MetLife Capital Limited Partnership (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc. and 99% Limited Partnership interest is held by Metropolitan Life Insurance Company. | ||||||||||
| c) | Long Island Solar Farm LLC (DE) - 90.39% membership interest is held by LISF Solar Trust in which MetLife Capital Limited Partnership has a 100% beneficial interest and the remaining 9.61% is owned by a third party. | ||||||||||
| i) | Met Canada Solar ULC (CAN) | ||||||||||
| 10. | MetLife Holdings, Inc. (DE) | ||||||||||
| a) | MetLife Credit Corp. (DE) | ||||||||||
| b) | MetLife Funding, Inc. (DE) | ||||||||||
| 11. | ML Southlands Member, LLC (DE) - Metropolitan Life Insurance Company owns 60% and 40% by Metropolitan Tower Life Insurance Company. | ||||||||||
| ML PORT CHESTER SC MEMBER, LLC (DE) - Metropolitan Life Insurance Company owns 60% and 40% is owned by Metropolitan Tower Life Insurance Company. | |||||||||||
| 12. | Corporate Real Estate Holdings, LLC (DE) | ||||||||||
| 13. | MetLife Tower Resources Group, Inc. (DE) | ||||||||||
| 14. | ML Sentinel Square Member, LLC (DE) | ||||||||||
| 15. | MetLife Securitization Depositor LLC (DE) | ||||||||||
| 16. | WFP 1000 Holding Company GP, LLC (DE) | ||||||||||
| 17. | MTU Hotel Owner, LLC (DE) 13-5581829 | ||||||||||
| a) | Plaza Drive Properties, LLC (DE) | ||||||||||
| 18. | White Oak Royalty Company (OK) | ||||||||||
| 19. | 500 Grant Street GP LLC (DE) | ||||||||||
| 20. | 500 Grant Street Associates Limited Partnership (CT) - 99% of 500 Grant Street Associates Limited Partnership is held by Metropolitan Life Insurance Company and 1% by 500 Grant Street GP LLC. | ||||||||||
| 21. | MetLife Retirement Services LLC (NJ) | ||||||||||
| 22. | Euro CL Investments, LLC (DE) | ||||||||||
| 23. | MEX DF Properties, LLC (DE) | ||||||||||
| a) | PREFCO Fourteen, LLC (DE) | ||||||||||
| 24. | MSV Irvine Property, LLC (DE) - 4% of MSV Irvine Property, LLC is owned by Metropolitan Tower Realty Company, Inc. and 96% is owned by Metropolitan Life Insurance Company. | ||||||||||
| 25. | MetLife Properties Ventures, LLC (DE) | ||||||||||
| 26. | Housing Fund Manager, LLC (DE) | ||||||||||
| a) | MTC Fund I, LLC (DE) - Housing Fund Manager, LLC is the managing member and owns .01% and the remaining interests are held by a third party member. | ||||||||||
| b) | MTC Fund II, LLC (DE) - Housing Fund Manager, LLC is the managing member and owns .01% and the remaining interests are held by a third party member. | ||||||||||
| c) | MTC Fund III, LLC (DE) - Housing Fund Manager, LLC is the managing member and owns .01% and the remaining interests are held by a third party member. | ||||||||||
| 27. | MLIC Asset Holdings LLC (DE) | ||||||||||
| 28. | The Building at 575 Fifth Avenue Mezzanine LLC (DE) | ||||||||||
| a) | The Building at 575 Fifth Retail Holding LLC (DE) | ||||||||||
| i) | The Building at 575 Fifth Retail Owner LLC (DE) | ||||||||||
| 29. | MetLife Chino Member, LLC (DE) | ||||||||||
| 30. | MLIC CB Holdings LLC (DE) | ||||||||||
| 31. | MetLife CC Member, LLC (DE) - 95.122% of MetLife CC Member, LLC is owned by Metropolitan Life Insurance Company and 4.878% is owned by Metropolitan Tower Life Insurance Company. | ||||||||||
| 32. | Oconee Hotel Company, LLC (DE) | ||||||||||
| a) | ML Hudson Member, LLC (DE) | ||||||||||
| b) | ML 300 THIRD MEMBER LLC (DE) | ||||||||||
| 33. | Oconee Land Company, LLC (DE) | ||||||||||
| a) | Oconee Land Development Company, LLC (DE) | ||||||||||
| b) | Oconee Golf Company, LLC (DE) | ||||||||||
| c) | Oconee Marina Company, LLC (DE) | ||||||||||
| 34. | 1201 TAB Manager, LLC (DE) | ||||||||||
| 35. | MetLife 1201 TAB Member, LLC (DE) | ||||||||||
| 36. | MetLife LHH Member, LLC (DE) - 99% of MetLife LHH Member, LLC is owned by Metropolitan Life Insurance Company and 1% is owned by Metropolitan Tower Life Insurance Company. | ||||||||||
| 37. | 1001 Properties, LLC (DE) | ||||||||||
| 38. | 6104 Hollywood, LLC (DE) | ||||||||||
| 39. | Boulevard Residential, LLC (DE) | ||||||||||
| 40. | ML-AI MetLife Member 3, LLC (DE) | ||||||||||
| 41. | Marketplace Residences, LLC (DE) | ||||||||||
| 42. | ML Swan Mezz, LLC (DE) | ||||||||||
| a) | ML Swan GP, LLC (DE) | ||||||||||
| 43. | ML Dolphin Mezz, LLC (DE) | ||||||||||
| a) | ML Dolphin GP, LLC (DE) | ||||||||||
| 44. | Haskell East Village, LLC (DE) | ||||||||||
| 45. | 150 North Riverside PE Member, LLC (DE) - MLIC owns an 81.45% membership interest and Metropolitan Tower Life Insurance Company owns a 18.55% membership interest | ||||||||||
| 46. | ML Terraces, LLC (DE) | ||||||||||
| 47. | Chestnut Flats Wind, LLC (DE) | ||||||||||
| 48. | MetLife 425 MKT Member, LLC (DE) - 66.91% of MetLife 425 MKT Member, LLC is owned by Metropolitan Life Insurance Company and 33.09% is owned by MREF 425 MKT, LLC. | ||||||||||
| 49. | MetLife OFC Member, LLC (DE) | ||||||||||
| 50. | MetLife THR Investor, LLC (DE) | ||||||||||
| 51. | ML Southmore, LLC (DE) - 99% of ML Southmore, LLC is owned by MLIC and 1% by Metropolitan Tower Life Insurance Company. | ||||||||||
| 52. | ML - AI MetLife Member 1, LLC (DE) - 100% of the membership interest is owned by Metropolitan Life Insurance Company. | ||||||||||
| 53. | MetLife CB W/A, LLC (DE) | ||||||||||
| a) | ML OMD Member, LLC (DE) | ||||||||||
| 54. | MetLife Camino Ramon Member, LLC (DE) - 99% of MetLife Camino Ramon Member, LLC is owned by MLIC and 1% by Metropolitan Tower Life Insurance Company. | ||||||||||
| MCRE BLOCK 40, LP. | |||||||||||
| 55. | 10700 Wilshire, LLC (DE) | ||||||||||
| 56. | Viridian Miracle Mile, LLC (DE) | ||||||||||
| 57. | MetLife 555 12th Member, LLC (DE) - 94.6% is owned by MLIC and 5.4% by Metropolitan Tower Life Insurance Company. | ||||||||||
| 58. | MetLife OBS Member, LLC (DE) | ||||||||||
| 59. | MetLife 1007 Stewart, LLC (DE) | ||||||||||
| 60. | ML-AI MetLife Member 2, LLC (DE) - 98.97% of ML-AI MetLife Member 2, LLC’s ownership interest is owned by MLIC and 1.03% by Metropolitan Tower Life Insurance Company. | ||||||||||
| 61. | MetLife Treat Towers, Member, LLC (DE) | ||||||||||
| 62. | MetLife FM Hotel Member, LLC (DE) | ||||||||||
| a) | LHCW Holdings (U.S.) LLC (DE) | ||||||||||
| i) | LHC Holdings (U.S.) LLC (DE) | ||||||||||
| 1) | LHCW Hotel Holdings LLC (DE) | ||||||||||
| aa) | LHCW Hotel Holdings (2002) LLC (DE) | ||||||||||
| bb) | LHCW Hotel Operating Company (2002) LLC (DE) | ||||||||||
| 63. | ML Mililani Member, LLC (DE)- is owned at 95% by MLIC and 5% by Metropolitan Tower Life Insurance Company. | ||||||||||
| 64. | MetLife SP Holdings, LLC (DE) | ||||||||||
| a) | MetLife Private Equity Holdings, LLC (DE) | ||||||||||
| 65. | Buford Logistics Center, LLC (DE) | ||||||||||
| 66. | MetLife Park Tower Member, LLC (DE) | ||||||||||
| a) | Park Tower REIT, Inc. (DE) | ||||||||||
| i) | Park Tower JV Member, LLC (DE) | ||||||||||
| 67. | MCPP Owners, LLC (DE) - 87.34% is owned by MLIC, 1.81% by Metropolitan Tower Life Insurance Company, and 10.85% by MTL Leasing, LLC. | ||||||||||
| 68. | ML-AI MetLife Member 5, LLC (DE) | ||||||||||
| 69. | MetLife HCMJV 1 GP, LLC (DE) | ||||||||||
| a) | METLIFE HCMJV 1 LP, LLC (DE) | ||||||||||
| 70. | MetLife ConSquare Member, LLC (DE) | ||||||||||
| 71. | MetLife Ontario Street Member, LLC (DE) | ||||||||||
| 72. | 1925 WJC Owner, LLC (DE) | ||||||||||
| a) | ML BELLEVUE MEMBER, LLC (DE) | ||||||||||
| b) | MIM Spokane Industrial Manager, LLC (DE) | ||||||||||
| 73. | MetLife Member Solaire, LLC (DE) | ||||||||||
| 74. | Sino-US United MetLife Insurance Co., Ltd. - 50% of Sino-US United MetLife Insurance Company, Ltd. is owned by MLIC and 50% is owned by a third party. | ||||||||||
| a) | METLIFE LEGAL PLANS, INC. (DE) | ||||||||||
| b) | METLIFE LEGAL PLANS OF FLORIDA, INC. (FL) | ||||||||||
| c) | 1350 Eye Street Owner LLC (DE) - 95.616439% of 1350 Eye Street Owner LLC is owned by Metropolitan Life insurance Company and 4.383561% is owned by Metropolitan Tower Life Insurance Company. | ||||||||||
| 75. | ML Cerritos TC Member, LLC (DE) - Metropolitan Life Insurance Company owns 60% and 40% by Metropolitan Tower Life Insurance Company. | ||||||||||
| 76. | MetLife Boro Station Member, LLC (DE) | ||||||||||
| 77. | MetLife 8280 Member, LLC (DE) | ||||||||||
| a) | MetLife Campus at SGV Member LLC (DE) | ||||||||||
| 78. | Southcreek Industrial Holdings, LLC (DE) | ||||||||||
| 79. | MMP Owners, LLC (DE) | ||||||||||
| 80. | ML Corner 63 Member, LLC (DE) | ||||||||||
| a) | ML Armature Member, LLC (DE) - 87.34% of ML Armature Member, LLC is owned by Metropolitan Life Insurance Company and 12.66% is owned by Metropolitan Tower Life Insurance Company. | ||||||||||
| 81. | ML-AI MetLife Member 4, LLC (DE) - 60% owned by MLIC and 40% owned by Metropolitan Tower Life Insurance Company. | ||||||||||
| MMP OWNERS III, LLC (DE) | |||||||||||
| a) | METLIFE MULTI-FAMILY PARTNERS III, LLC (DE) | ||||||||||
| b) | MMP HOLDINGS III, LLC (DE) | ||||||||||
| 1. | MMP CEDAR STREET REIT, LLC (DE) | ||||||||||
| a. MMP CEDAR STREET OWNER, LLC (DE) | |||||||||||
| 2. | MMP SOUTH PARK REIT, LLC (DE) | ||||||||||
| a. MMP SOUTH PARK OWNER, LLC (DE) | |||||||||||
| 3. | MMP OLIVIAN REIT, LLC (DE) | ||||||||||
| a. MMP OLIVIAN OWNER, LLC (DE) | |||||||||||
| MC PORTFOLIO JV MEMBER, LLC (DE) | |||||||||||
| J. | MetLife Capital Trust IV (DE) | ||||||||||
| K. | MetLife Investments Management, LLC. (DE) | ||||||||||
| 1. | MetLife Senior Direct Lending GP, LLC (DE) | ||||||||||
| a. | MetLife Senior Direct Lending Fund, LP (CYM) | ||||||||||
| i. | MetLife Senior Direct Lending Finco, LLC (DE) | ||||||||||
| aa) | MetLife Senior Direct Lending Holdings, LP (DE) | ||||||||||
| b. | MLJ US Feeder LLC (DE) - MetLife Senior Direct Lending GP, LLC is the Manager of MLJ US Feeder LLC. MetLife Insurance K.K. is the sole member. | ||||||||||
| 2. | MIM MetWest International Manager, LLC (DE) | ||||||||||
| 3. | MIM ML-AI Venture 5 Manager, LLC (DE) | ||||||||||
| 4. | MIM Clal General Partner, LLC (DE) | ||||||||||
| 5. | MIM Third Army Industrial Manager, LLC (DE) | ||||||||||
| 6. | MetLife 425 MKT Manager, LLC (DE) | ||||||||||
| 7. | MetLife Alternatives GP, LLC (DE) | ||||||||||
| a) | MetLife International PE Fund I, LP (CYM) - 95.88% of the Limited Partnership interests of this entity is owned by MetLife Insurance K.K. (Japan) and 4.12% is owned by MetLife Mexico S.A., | ||||||||||
| b) | MetLife International PE Fund II, LP (CYM) - 97.90% of the limited partnership interests of MetLife International PE Fund II, LP is owned by MetLife Insurance K.K. (Japan) and 2.1% by MetLife Mexico, S.A. | ||||||||||
| c) | MetLife International HF Partners, LP (CYM) - 90.30% of the Limited partnership interests of this entity is owned by MetLife Insurance K.K. (Japan) and 9.70% is owned by MetLife Insurance Company of Korea Limited, | ||||||||||
| d) | MetLife International PE Fund III, LP (CYM) - 92.09% of the limited partnership interests of MetLife International PE Fund III, LP is owned by MetLife Insurance K.K. (Japan) and 7.91% is owned by MetLife Insurance Company of Korea Limited, | ||||||||||
| e) | MetLife International PE Fund IV, LP (CYM) - 96.21% of the limited partnership interests of MetLife International PE Fund IV, LP is owned by MetLife Insurance K.K. (Japan) and 3.79% is owned by MetLife Insurance Company of Korea Limited, | ||||||||||
| f) | MetLife International PE Fund V, LP (CYM) - 96.73% of the Limited partnership interests of this entity is owned by MetLife Insurance K.K. (Japan) and the remaining 3.27% is owned by MetLife Insurance Company of Korea. | ||||||||||
| g) | MetLife International PE Fund VI, LP (CYM) - 96.53% of the Limited partnership interests of this entity is owned by MetLife Insurance K.K. (Japan) and the remaining 3.47% is owned by MetLife Insurance Company of Korea. | ||||||||||
| h) | MetLife International PE Fund VII, LP (CYM) - MetLife Alternatives GP, LLC is the general partner of MetLife International PE Fund VII, LP. MetLife Insurance K.K. (Japan) is the sole limited partner. | ||||||||||
| 8. | MetLife Loan Asset Management LLC (DE) | ||||||||||
| a) | MIM CM Syndicator LLC (DE) | ||||||||||
| b) | 1350 Eye Street Manager, LLC (DE) | ||||||||||
| 9. | MLIA SBAF COLONY MANAGER LLC (DE), METLIFE JAPAN US EQUITY FUND GP LLC (DE) | ||||||||||
| a) | MetLife Japan US Equity Fund LP (DE) - MetLife Japan US Equity Fund GP, LLC is general partner of MetLife Japan US Equity Fund LP (“Fund”). The following affiliates hold a limited partnership interest in the Fund LP: 51% is owned by MetLife Japan US Equity Owners LLC and 49% by MetLife Japan US Equity Owners (Blocker). | ||||||||||
| b) | MIM Campus at SGV Manager, LLC (DE) | ||||||||||
| c) | MIM LS GP, LLC (DE) | ||||||||||
| (i) | MetLife Long Short Credit Fund, LP (DE) - MIM LS GP, LLC is the general partner of MetLife Long Short Credit Fund, LP (the “Fund”). Metropolitan Life Insurance Company owns 100% of the Fund. | ||||||||||
| (ii) | MetLife Long Short Credit Master Fund, LP (DE) - MIM LS GP, LLC is the general partner of MetLife Long Short Credit Master Fund, LP (the “Fund”). MetLife Long Short Credit Fund, LP is the sole limited partner in the Fund. | ||||||||||
| (iii) | MetLife Long Short Credit Parallel Fund, LP (Cayman) - MIM LS GP, LLC is the general partner of MetLife Long Short Credit Parallel Fund, LP (the “Fund”) and is the sole partner in the Fund. | ||||||||||
| 10. | MetLife Core Property Fund GP, LLC (DE) | ||||||||||
| a) | MetLife Core Property Fund, LP (DE) - MetLife Core Property Fund GP, LLC is the general partner of MetLife Core Property Fund, LP (the “Fund”). A substantial majority of the limited partnership interests in the Fund are held by third parties. The following affiliates hold limited partnership interests in the Fund: Metropolitan Life Insurance Company owns 14.40%, Metropolitan Life Insurance Company (on behalf of Separate Account 746) owns 2.09%, MetLife Insurance Company of Korea Limited owns 1.52%, MetLife Insurance K.K. owns 8.1%, Metropolitan Tower Life Insurance Company owns 0.04% and Metropolitan Tower Life Insurance Company (on behalf of Separate Account 152) owns 3.85%. | ||||||||||
| i) | MetLife Core Property REIT, LLC (DE) | ||||||||||
| 1) | MCP Dillon Residential, LLC (DE); MCP Shakopee, LLC (DE); MCP Bradford, LLC (DE); MCP Stateline, LLC (DE); MetLife Core Property Holdings, LLC also holds, directly or indirectly, the following limited liability companies (indirect ownership indicated in parenthesis): MCP Alley24 East, LLC; MCPF Foxborough, LLC (100%); MCP Allen Creek Member, LLC (DE); MCP One Westside, LLC; MCP 7 Riverway, LLC; MCPF Acquisition, LLC; MCP SoCal Industrial - Springdale, LLC; MCP SoCal Industrial - Concourse, LLC; MCP SoCal Industrial - Kellwood, LLC; MCP SoCal Industrial - Redondo, LLC; MCP SoCal Industrial - Fullerton, LLC; MCP SoCal Industrial - Loker, LLC; MCP Paragon Point, LLC; MCP The Palms at Doral, LLC; MCP Waterford Atrium, LLC; MCP EnV Chicago, LLC; MCP 1900 McKinney, LLC; MCP 550 West Washington, LLC; MCP 3040 Post Oak, LLC; MCP Plaza at Legacy, LLC; MCP SoCal Industrial - LAX, LLC; MCP SoCal Industrial - Anaheim, LLC; MCP SoCal Industrial - Canyon, LLC; MCP SoCal Industrial - Bernardo, LLC; MCP Ashton South End, LLC; MCP Lodge At Lakecrest, LLC; MCP Main Street Village, LLC; MCP Trimble Campus, LLC; MCP Stateline, LLC; MCP Highland Park Lender, LLC; MCP Buford Logistics Center Bldg B, LLC; MCP 22745 & 22755 Relocation Drive, LLC; MCP 9020 Murphy Road, LLC; MCP Northyards Holdco, LLC; MCP Northyards Owner, LLC (100%); MCP Northyards Master Lessee, LLC (100%); MCP VOA Holdings, LLC; MCP VOA I & III, LLC (100%); MCP VOA II, LLC (100%); MCP West Broad Marketplace, LLC; MCP Grapevine, LLC; MCP Union Row, LLC; MCP Fife Enterprise Center, LLC; MCP 2 Ames, LLC; MCP 2 Ames Two, LLC (100%); MCP 2 Ames One, LLC (100%); MCP 2 Ames Owner, LLC (100%); MCP 350 Rohlwing, LLC; MCP - Wellington, LLC; MCP Onyx, LLC; MCP Valley Forge, LLC; MCP Valley Forge Two, LLC (100%); MCP Valley Forge One, LLC(100%); MCP Valley Forge Owner, LLC (100%); MCP MA Property REIT, LLC; MCPF - Needham, LLC (100%); MCP 60 11th Street Member, LLC; 60 11th Street, LLC (100%); MCP - English Village, LLC; MCP 100 Congress Member, LLC; Des Moines Creek Business Park Phase II, LLC; MCP Magnolia Park Member, LLC; MCP Denver Pavilions Member, LLC; MCP Buford Logistics Center 2 Member, LLC; MCP Seattle Gateway Industrial 1, LLC; MCP 249 Industrial Business Park Member, LLC; MCP Seattle Gateway Industrial II, LLC; MCP Seventh and Osborn Retail Member, LLC; MCP Astor at Osborn, LLC; MCP Block 23 Member, LLC; MCP Burnside Member, LLC; MCP Mountain Technology Center Member TRS, LLC; MCP Vineyard Avenue Member, LLC; MCP 93 Red River Member, LLC; MCP Frisco Office, LLC; MCP Center Avenue Industrial Member, LLC; MCP 220 York, LLC; MCP 1500 Michael, LLC; MCP Vance Jackson, LLC; MCP Sleepy Hollow Member, LLC; MCP Clawiter Innovation Member, LLC; MCP Hub I, LLC; MCP Hub 1 Property, LLC (100%); MCP Shakopee, LLC; MCP Bradford, LLC; MCP Dillon, LLC; MCP Dillon Residential, LLC; MCP Optimist Park Member, LLC; Mountain Technology Center Venture, LLC; Mountain Technology Center A, LLC (100%); Mountain Technology Center B, LLC (100%); Mountain Technology Center C, LLC; Mountain Technology Center D, LLC; Mountain Technology Center E, LLC; MCP Frisco Office Two, LLC; MCP 38th West Highland, LLC; MCP Gateway Commerce Center 5, LLC; MCP Allen Creek Member, LLC; Center Avenue Industrial Venture, LLC (73.26%), Center Avenue Industrial, LLC (73.26%); Vineyard Avenue Industrial Venture, LLC (71.16%), and Vineyard Avenue Industrial, LLC (71.16%). | ||||||||||
| aa) | MCP Property Management, LLC (DE) | ||||||||||
| bb) | MetLife Core Property TRS, LLC (DE) | ||||||||||
| (i) | MCP ESG TRS, LLC (DE) | ||||||||||
| MCP COMMON DESK TRS, LLC (DE) | |||||||||||
| 11. | MetLife Commercial Mortgage Income Fund GP, LLC (DE) | ||||||||||
| a) | MetLife Commercial Mortgage Income Fund, LP (DE) - MetLife Commercial Mortgage Income Fund GP, LLC is the general partner of MetLife Commercial Mortgage Income Fund, LP (the “Fund”). A majority of the limited partnership interests in the Fund are held by third parties. The following affiliates hold limited partnership interests in the Fund: Metropolitan Life Insurance Company owns 27.35%, MetLife Insurance Company of Korea Limited owns 1.4%, and Metropolitan Tower Life Insurance Company owns 3.62%. | ||||||||||
| i) | MetLife Commercial Mortgage REIT, LLC (DE) | ||||||||||
| 1) | MetLife Commercial Mortgage Originator, LLC (DE) | ||||||||||
| aa) MCMIF Holdco I, LLC (DE) | |||||||||||
| bb) MCMIF Holdco II, LLC (DE) | |||||||||||
| cc) MCMIF Holdco III, LLC (DE) | |||||||||||
| b) | MetLife Strategic Hotel Debt Fund GP, LLC (DE) | ||||||||||
| i) | MetLife Strategic Hotel Debt Fund, LP (DE) - MetLife Strategic Hotel Debt Fund GP, LLC is the general partner of MetLife Strategic Hotel Debt Fund, LP (the “Fund”). The following affiliates committed to hold limited partnership interests in the Fund: Metropolitan Life Insurance Company (46.88%) and Metropolitan Tower Life Insurance Company (26.04%). The remainder is held by a third party. | ||||||||||
| ii) | MetLife Strategic Hotel Originator, LLC (DE) | ||||||||||
| c) | MSHDF Holdco I, LLC (DE) | ||||||||||
| 12. | MLIA SBAF Manager, LLC (DE) | ||||||||||
| 13. | MLIA Manager I, LLC (DE) | ||||||||||
| 14. | ML - URS PORT CHESTER SC MANAGER, LLC (DE), ML BELLEVUE MANAGER, LLC (DE) and MLIA Park Tower Manager, LLC (DE) | ||||||||||
| 15. | MetLife Middle Market Private Debt GP, LLC (DE) | ||||||||||
| a. | MetLife Middle Market Private Debt Fund, LP (DE) - MetLife Middle Market Private Debt GP, LLC is the general partner of MetLife Middle Market Private Debt Fund II L.P (the “Fund”). The following affiliates hold limited partnership interests in the Fund: MetLife Private Equity Holdings, LLC (30.53%), Metropolitan Life Insurance Company (30.53%), .99% is held by MetLife Middle Market Private Debt, GP, LLC. The remainder is held by a third party. | ||||||||||
| 16. | MetLife Middle Market Private Debt Parallel GP, LLC (DE) | ||||||||||
| a. MetLife Middle Market Private Debt Parallel Fund, LP (CYM) - MetLife Middle Market Private Debt Parallel GP, LLC is the general partner of MetLife Middle Market Private Debt Parallel Fund, LP. The following affiliate holds a limited partnership interest in the Fund: MetLife Insurance K.K. (Japan) (100%). | |||||||||||
| 17. | MIM OMD Manager LLC (DE) | ||||||||||
| 18. | MetLife-Enhanced Core Property Fund GP, LLC (DE) | ||||||||||
| a) | MetLife Enhanced Core Property Fund, LP (DE) - MetLife Enhanced Core Property Fund GP is the general partner of MetLife Enhanced Core Property Fund LP (the “Fund”). The following affiliates hold limited partnership interests in the Fund: 33.3328% is held by Metropolitan Life Insurance Company and 33.3328% is held by Metropolitan Tower Life Insurance Company. The remainder is held by third parties. | ||||||||||
| i) | MetLife Enhanced Core Property REIT, LLC (DE) - MetLife Enhanced Core Property Fund, LP is the manager of MetLife Enhanced Core Property REIT, LLC (the “Fund”) and holds 99.9% of the membership interests in the Fund. The remainder is held by third parties. | ||||||||||
| b) | MetLife Enhanced Core Property Holdings LLC (DE) | ||||||||||
| i) | MEC Fillmore Cherry Creek, LLC | ||||||||||
| ii) | MEC Patriot Park 5 LLC (DE) | ||||||||||
| L. | SafeGuard Health Enterprises, Inc. (DE) | ||||||||||
| 1. | MetLife Health Plans, Inc. (DE) | ||||||||||
| 2. | SafeGuard Health Plans, Inc. (CA) | ||||||||||
| 3. | SafeHealth Life Insurance Company (CA) | ||||||||||
| 4. | SafeGuard Health Plans, Inc. (FL) | ||||||||||
| 5. | SafeGuard Health Plans, Inc. (TX) | ||||||||||
| M. | Cova Life Management Company (DE) | ||||||||||
| N. | MetLife Reinsurance Company of Charleston (SC) | ||||||||||
| O. | MetLife Reinsurance Company of Vermont (VT) | ||||||||||
| P. | Delaware American Life Insurance Company (DE) | ||||||||||
| Q. | MetLife Global Benefits, Ltd. (CYM) | ||||||||||
| R. | Inversiones MetLife Holdco Dos Limitada (CHL) -99.99946% of Inversiones MetLife Holdco Dos Limitada is owned by MetLife, Inc., 0.000535% is owned by MetLife International Holdings, LLC. and 0.0000054% is owned by Natiloportem Holdings, LLC. | ||||||||||
| S. | MetLife Consumer Services, Inc. (DE) | ||||||||||
| T. | MetLife Global, Inc. (DE) | ||||||||||
| U. | MetLife Insurance Brokerage, Inc. (NY) | ||||||||||
| V. | American Life Insurance Company (DE) | ||||||||||
| 1. | MetLife Insurance K.K. (Japan) | ||||||||||
| a) | Communication One Kabushiki Kaisha (Japan) | ||||||||||
| b) | FORTISSIMO CO., LTD (Japan) | ||||||||||
| c) | METLIFE JAPAN US EQUITY OWNERS (BLOCKER) LLC (DE) - MetLife Japan US Equity Fund GP, LLC is the manager of MetLife Japan US Equity Owners (Blocker) LLC. MetLife Insurance K.K. (Japan) is the sole member. | ||||||||||
| 2. | MetLife Global Holding Company I GmbH (Swiss) | ||||||||||
| a) | MetLife, Life Insurance Company (Egypt) - 84.125% of MetLife, Life Insurance Company is owned by MetLife Global Holding Company I GmbH and the remainder by third parties. | ||||||||||
| b) | MetLife Global Holding Company II GmbH (Swiss) | ||||||||||
| i) | ALICO European Holdings Limited (Ireland) | ||||||||||
| 1) | Closed Joint-stock Company Master-D (Russia) | ||||||||||
| aa) | Closed Joint-Stock Company MetLife Insurance Company (Russia) | ||||||||||
| ii) | MetLife Asia Holding Company Pte. Ltd. (Singapore) | ||||||||||
| 1) | MetLife Innovation Centre Pte. Ltd. (Singapore) | ||||||||||
| 2) | LumenLab Malaysia Sdn. Bhd. (Malaysia) | ||||||||||
| iii) | MetLife Reinsurance Company of Bermuda Ltd. (Bermuda) | ||||||||||
| iv) | MetLife Investment Management Limited (England/UK) | ||||||||||
| v) | MM Global Operations Support Center, S.A. de C.V. (Mexico) - 99.999509% of MM Global Operations Support Center, S.A. de C.V. Mexico is held by MetLife Global Holding Company II GmbH (Swiss) and 0.000491% is held by MetLife Global Holding Company I GmbH (Swiss). | ||||||||||
| 1. | Fundacion MetLife Mexico, A.C. (Mexico) | ||||||||||
| vi) | MetLife Colombia Seguros de Vida S.A. (Colombia) - 89.9999657134583% of MetLife Colombia Seguros de Vida S.A. is owned by MetLife Global Holding Company II GmbH, International Technical and Advisory Services Limited, Borderland Investments Limited and Natiloportem Holdings, LLC each own 10.0000315938813% is owned by MetLife Global Holding Company I GmbH, 0.000000897553447019009%. | ||||||||||
| vii) | PJSC MetLife (Ukraine) - 99.9988% of PJSC MetLife is owned by MetLife Global Holding Company II GmbH, .0006% is owned by International Technical and Advisory Services and the remaining .0006% is owned by Borderland Investments Limited. | ||||||||||
| viii) | MetLife Innovation Centre Limited (Ireland) | ||||||||||
| ix) | MetLife EU Holding Company Limited (Ireland) | ||||||||||
| 1) | MetLife Europe d.a.c (Ireland) | ||||||||||
| 1. | MetLife Pension Trustees Limited (England/UK) | ||||||||||
| 2) | Agenvita S.r.l. (Italy) | ||||||||||
| 3) | MetLife Services EOOD (Bulgaria) | ||||||||||
| 4) | MetLife Europe Insurance d.a.c (Ireland) | ||||||||||
| 5) | MetLife Europe Services Limited (Ireland) | ||||||||||
| 6) | MetLife Services, Sociedad Limitada (Spain) | ||||||||||
| 7) | MetLife Slovakia S.r.o. (Slovakia) - 99.956% of MetLife Slovakia S.r.o. is owned by MetLife EU Holding Company Limited and 0.044% is owned by ITAS. | ||||||||||
| 8) | MetLife Solutions S.A.S. (France) | ||||||||||
| aa) | Branch of MetLife Solutions S.A.S. Morocco | ||||||||||
| bb) | MetLife Services Cyprus Ltd (Cyprus) | ||||||||||
| 9) | Metropolitan Life Societate de Administrare a unui Fond de Pensii Administrat Privat S.A. (Romania) - 99.9903% of Metropolitan Life Societate de Administrare a unui Fond de Pensii Administrat Privat S.A. is owned by MetLife EU Holding Company Limited and 0.0097% is owned by MetLife Services Sp z.o.o. | ||||||||||
| 10) | MetLife Towarzystwo Ubezpieczen na Zycie i Reasekuracji S.A. (Poland) | ||||||||||
| aa) | MetLife Services Sp z.o.o. (Poland) | ||||||||||
| bb) | MetLife Towarzystwo Funduszy Inwestycyjnych, S.A. (Poland) | ||||||||||
| cc) | MetLife Powszechne Towarzystwo Emerytalne S.A. (Poland) | ||||||||||
| c) | MetLife Emeklilik ve Hayat A.S. (Turkey) - 99.98% of MetLife Emeklilik ve Hayat A.S. is owned by MetLife Global Holding Company II GmbH (Swiss) and the remaining by third parties. | ||||||||||
| 10) | MetLife Services Cyprus Ltd. (Cyprus) | ||||||||||
| 11) | MetLife Services EOOD (Bulgaria) | ||||||||||
| 12) | MetLife Life Insurance S.A. (Greece) | ||||||||||
| aa) | MetLife Mutual Fund Company (Greece) - 90% of MetLife Mutual Fund Company is owned by MetLife Life Insurance S.A. and the remaining interest by a third party. | ||||||||||
| x) | MetLife Investment Management Europe Limited (Ireland) | ||||||||||
| 1) | MetLife Investments Asia Limited (Hong Kong) | ||||||||||
| 2) | MetLife Syndicated Bank Loan Lux GP, S.a.r.l. (Luxembourg) | ||||||||||
| 3) | MetLife Investments Limited (England/UK) | ||||||||||
| 4) | MetLife Latin America Asesorias e Inversiones Limitada (CHL) - 99.99% of MetLife Latin American Asesorias e Inversiones Limitada is owned by MetLife Investment Management Holdings (Ireland) Limited and .01% is owned by MetLife Global Holding Company II GmbH (Swiss). | ||||||||||
| xi) | MetLife Asia Services Sdn. Bhd (Malasya) | ||||||||||
| 1) | ALICO OPERATIONS, LLC (DE) | ||||||||||
| 2) | MetLife Asset Management Corp. (Japan) | ||||||||||
| 3) | MetLife Seguros S.A. (Uruguay) | ||||||||||
| 13) | MetLife International Holdings, LLC (DE) | ||||||||||
| 1) | Natiloportem Holdings, LLC (DE) | ||||||||||
| aa) Excelencia Operativa y Tecnologica, S.A. de C.V. (Mexico) - 99.9% of Excelencia Operativa y Tecnologica, S.A. de C.V. is held by Natiloportem Holdings, LLC and .1% by MetLife Mexico Servicios, S.A. de C.V. | |||||||||||
| 2) | PNB MetLife India Insurance Company Limited - 32.41% is owned by MetLife International Holdings, LLC and the remainder is owned by third parties. | ||||||||||
| 3) | Compania Inversora MetLife S.A. (Argentina) - 95.46% is owned by MetLife International Holdings, LLC and 4.54% is owned by Natiloportem Holdings, LLC. | ||||||||||
| 4) | Metropolitan Life Seguros e Previdencia Privada S.A. (Brazil)-66.662% is owned by MetLife International Holdings, LLC, 33.337% is owned by MetLife Worldwide Holdings, LLC and 0.001% is owned by Natiloportem Holdings, LLC. | ||||||||||
| 5) | MetLife Administradora de Fundos Multipatrocinados Ltda. (Brazil) - 99.99998% of MetLife Administradora de Fundos Multipatrocinados Ltda. is owned by MetLife International Holdings, LLC and 0.00002% by Natiloportem Holdings, LLC. | ||||||||||
| 6) | MetLife Seguros de Retiro S.A. (Argentina) - 96.8897% is owned by MetLife International Holdings, LLC, 3.1102% is owned by Natiloportem Holdings, LLC and 0.0001% by ITAS | ||||||||||
| 7) | Best Market S.A. (Argentina) - 5% of the shares are held by Natiloportem Holdings, LLC and 95% is owned by MetLife International Holdings, LLC. | ||||||||||
| 8) | Compania Inversora MetLife S.A. (Argentina) - 95.46% is owned by MetLife International Holdings, LLC and 4.54% is owned by Natiloportem Holdings, LLC. | ||||||||||
| aa) MetLife Servicios S.A. (Argentina) - 19.12% of the shares of MetLife Servicios S.A. are held by Compania Inversora MetLife S.A. 80.88% are held by Natiloportem Holdings, LLC. | |||||||||||
| 9) | MetLife Worldwide Holdings, LLC (DE) | ||||||||||
| aa) BIDV MetLife Life Insurance Limited Liability Company (Vietnam) – 60.61% of BIDV MetLife Life Insurance Limited Liability Company is held by American Life Insurance Company and the remainder by third parties. | |||||||||||
| 10) | MetLife International Limited, LLC (DE) | ||||||||||
| 11) | MetLife Planos Odontologicos Ltda. (Brazil) - 99.999% is owned by MetLife International Holdings, LLC and 0.001% is owned by Natiloportem Holdings, LLC. | ||||||||||
| 12) | MetLife Asia Limited (Hong Kong) | ||||||||||
| 13) | AmMetLife Insurance Berhad (Malaysia) - 50.000002% of AmMetLife Insurance Berhad is owned by MetLife International Holdings, LLC and the remainder by a third party. | ||||||||||
| 14) | AmMetLife Takaful Berhad (Malaysia) - 49.9999997% of AmMetLife Takaful Berhad is owned by MetLife International Holdings, LLC and the remainder by a third party. | ||||||||||
| 15) | MAXIS GBN S.A.S. (France) - 50% of MAXIS GBN S.A.S. is held by MetLife International Holdings, LLC and the remainder by third parties. | ||||||||||
| 16) | MetLife Mas, S.A. de C.V. (Mexico) - 99.99964399% MetLife Mas, S.A. de C.V. is owned by MetLife International Holdings, LLC and .00035601% is owned by International Technical and Advisory Services Limited. | ||||||||||
| aa) MetLife Global Holdings Corporation S.A. de C.V. (Ireland) - 98.9% is owned by MetLife International Holdings, LLC and 1.1% is owned by MetLife International Limited, LLC. | |||||||||||
| i) | MetLife Ireland Treasury d.a.c (Ireland) | ||||||||||
| 1) | MetLife General Insurance Limited (Australia) | ||||||||||
| 2) | MetLife Insurance Limited (Australia) - 91.16468% of MetLife Insurance Limited (Australia) is owned by MetLife Ireland Treasury d.a.c and 8.83532% by MetLife Global Holdings Corp. S.A. de C.V. | ||||||||||
| aaa) | The Direct Call Centre PTY Limited (Australia) | ||||||||||
| bbb) | MetLife Investments PTY Limited (Australia) | ||||||||||
| i) | MetLife Insurance and Investment Trust (Australia) - MetLife Insurance and Investment Trust is a trust vehicle, the trustee of which is MetLife Investments PTY Limited (“MIPL”). MIPL is a wholly owned subsidiary of MetLife Insurance PTY Limited. | ||||||||||
| ii) | Metropolitan Global Management, LLC (Ireland) - 99.7% is owned by MetLife Global Holdings Corporation S.A. de C.V. and 0.3% is owned by MetLife International Holdings, LLC. | ||||||||||
| 1) | MetLife Mexico Holdings, S. de R.L. de C.V. (Mexico) - 99.99995% is owned by Metropolitan Global Management, LLC and .00005% is owned by MetLife International Holdings, LLC. | ||||||||||
| aaa) | MetLife Pensiones Mexico S.A. (Mexico)- 97.5125% is owned by MetLife Mexico Holdings, S. de R.L. de C.V. and 2.4875% is owned by MetLife International Holdings, LLC. | ||||||||||
| bbb) | MetLife Mexico Servicios, S.A. de C.V. (Mexico) - 99.050271% is owned by MetLife Mexico Holdings, S. de R.L. de C.V. and .949729% is owned by MetLife International Holdings, LLC. | ||||||||||
| i) | ML Capacitacion Comercial S.A. de C.V.(Mexico) - 99% is owned by MetLife Mexico S.A. and 1% is owned by MetLife Mexico Servicios, S.A. de C.V. | ||||||||||
| 2) | MetLife Insurance Company of Korea, Ltd.- 14.64% is owned by MetLife Mexico S.A. de C.V. and 85.36% is owned by Metropolitan Global Management, LLC. | ||||||||||
| aaa) | MetLife Financial Services, Co., Ltd. (South Korea) | ||||||||||
| 3. | Borderland Investments Limited (DE) | ||||||||||
| a) | ALICO Hellas Single Member Limited Liability Company (Greece) | ||||||||||
| 4. | International Technical and Advisory Services Limited (DE) | ||||||||||
| 5. | ALICO Properties, Inc. (DE) - 51% of ALICO Properties, Inc. is owned by ALICO and the remaining interests are owned by third parties. | ||||||||||
| a) | Global Properties, Inc. (DE) | ||||||||||
| W. | MetLife European Holdings, LLC (DE) | ||||||||||
| X. | MetLife Investment Management Holdings, LLC (DE) | ||||||||||
| 1) | MIM I LLC (PA), MIM EMD GP, LLC (DE) | ||||||||||
| 2) | MIM Property Management, LLC (DE) | ||||||||||
| 3) | MetLife Emerging Market Debt Blend Fund (Insurance Rated), L.P. (DE) - MIM EMD GP, LLC is the general partner of MetLife Emerging Market Debt Blend Fund (Insurance Rated), L.P. (the “Fund”). Metropolitan Life Insurance Company owns 77.73% of the Fund. The remainder is held by a third party. | ||||||||||
| a) | MIM Property Management of Georgia 1, LLC (DE) | ||||||||||
| b) | MIM MetWest International Manager, LLC (DE) | ||||||||||
| c) | MIM ML-AI Venture 5 Manager, LLC (DE) | ||||||||||
| d) | MIM Clal General Partner, LLC (DE) | ||||||||||
| 4) | MetLife Real Estate Lending LLC (DE) | ||||||||||
| 5) | ML Venture 1 Manager, S. de R.L. de C.V. (MEX) - 99.9% is owned by MetLife Investment Management Holdings, LLC and 0.1% is owned by MetLife Investment Management Holdings (Ireland) Limited. | ||||||||||
| 6) | MetLife Investment Management, LLC (DE) | ||||||||||
| 7) | ML Venture 1 Servicer, LLC (DE) | ||||||||||
| a) | MetLife Single Family Rental Fund GP, LLC (DE) | ||||||||||
| i) | MetLife Single Family Rental Fund, LP (DE) - MetLife Single Family Rental Fund GP, LLC is the general partner of MetLife Single Family Rental Fund, LP (the “Fund”). MetLife Investment Management, LLC is the sole limited partner in the Fund. | ||||||||||
| b) | MetLife Enhanced Core Property Fund GP, LLC (DE) - MetLife Enhanced Core Property Fund GP is the general partner of MetLife Enhanced Core Property Fund LP (the “Fund”). The following affiliates hold limited partnership interests in the Fund: 33.3328% is held by Metropolitan Life Insurance Company and 33.3328% is held by Metropolitan Tower Life Insurance Company. The remainder is held by third parties. | ||||||||||
| c) | MetLife Enhanced Core Property REIT, LLC (DE) - MetLife Enhanced Core Property Fund, LP is the manager of MetLife Enhanced Core Property REIT, LLC (the “Fund”) and holds 99.9% of the membership interests in the Fund. The remainder is held by third parties. | ||||||||||
| i) | MetLife Enhanced Core Property Holdings, LLC (DE) | ||||||||||
| ii) | MEC FIllmore Cherry Creek, LLC (DE) | ||||||||||
| (b) | MetLife Investors Distribution Company is the principal underwriter for the Contracts. The following persons are officers and directors of MetLife Investors Distribution Company. The principal business address for MetLife Investors Distribution Company is 200 Park Avenue, New York, NY 10166. |
| Name and Principal Business Address | Positions and Offices With Underwriter | |
| Derrick
Kelson 200 Park Avenue New York, NY 10166 |
Director, Chairman of the Board, President and Chief Executive Officer | |
| Kelli
Buford 200 Park Avenue New York, NY 10166 |
Secretary | |
| Christy
Chandler 200 Park Avenue New York, NY 10166 |
Director, Vice President | |
| Jessica
T. Good 200 Park Avenue New York, NY 10166 |
Director, Vice President | |
| Bradd
Chignoli 501 Route 22 Bridgewater, NJ 08807 |
Director, Senior Vice President |
| Name and Principal Business Address | Positions and Offices With Underwriter | |
| Michael
Yick 1 MetLife Way Whippany, NJ 07981 |
Vice President and Treasurer | |
| Patricia
Fox 501 Route 22 Bridgewater, NJ 08807 |
Chief Compliance Officer | |
| Geoffrey
Fradkin 200 Park Avenue New York, NY 10166 |
Vice President | |
| Lorene
Elsie Guardado 200 Park Avenue New York, NY 10166 |
Assistant Vice President | |
| Justin
Saudo 200 Park Avenue New York, NY 10166 |
Vice President and Chief Information Security Officer | |
| Thomas
Schuster 200 Park Avenue New York, NY 10166 |
Director, Senior Vice President | |
| Stuart
Turetsky 200 Park Avenue New York, NY 10166 |
Chief Financial Officer | |
| Robin
Wagner 200 Park Avenue New York, NY 10166 |
Chief Legal Officer |
| (c) | Compensation to the Distributor. The following aggregate amount of commissions and other compensation was received by the Distributor, directly or indirectly, from the Registrant during their last fiscal year: |
| (1)
Name of Principal Underwriter |
(2)
Net Underwriting Discounts and Commissions |
(3)
Compensation on Redemption |
(4)
Brokerage Commissions |
(5)
Other Compensation | ||||
| MetLife Investors Distribution Company | $72,424,702 | $0 | $0 | $0 |
| a) | Registrant |
| (a) | The undersigned registrant hereby undertakes to file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the financial statements in this registration statement are not more than 16 months old for as long as payments under these variable annuity contracts may be accepted. |
| (b) | The undersigned registrant hereby undertakes to include a post card or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information. |
| (c) | The undersigned registrant hereby undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this form promptly upon written or oral request. |
| (d) | The undersigned registrant represents that it is relying on the exemptions from certain provisions of Sections 22(e) and 27 of the Investment Company Act of 1940 provided by Rule 6c-7 under the Act. The registrant further represents that the provisions of paragraph (a)-(d) of Rule 6c-7 have been complied with. |
| (e) | The undersigned registrant represents that for its TSA Deferred Annuities it is relying on the “no-action” position of the Commission staff as contained in its November 7, 1988 letter to the American Council of Life Insurance and has complied with the provisions of numbered paragraphs (1)-(4) of such letter. |
| (f) | The undersigned registrant represents that for its TSA Deferred Annuities it is relying on the “no-action” position of the Commission staff as contained in its August 30, 2012 letter to ING Life Insurance and Annuity Company and has complied with the provisions of such letter. |
| Metropolitan
Life Separate Account E (Registrant) | |
| BY: | Metropolitan
Life Insurance Company (Depositor) |
| BY: | /s/ Howard Kurpit |
| Howard Kurpit | |
| Senior Vice President | |
| BY: | Metropolitan Life
Insurance Company (Depositor) |
| BY: | /s/ Howard Kurpit |
| Howard Kurpit | |
| Senior Vice President | |
| Signature | Title | |
| * | Chairman of the Board and Director | |
| R. Glenn Hubbard | ||
| * | President and Chief Executive Officer and Director | |
| Michel A. Khalaf | ||
| * | Executive Vice President and Chief Financial Officer | |
| John Dennis McCallion | ||
| * | Executive Vice President and Chief Accounting Officer | |
| Tamara Schock | ||
| * | Director | |
| Cheryl W. Grise | ||
| * | Director | |
| Carlos M. Gutierrez | ||
| * | Director | |
| Gerald L. Hassell | ||
| * | Director | |
| David L. Herzog | ||
| * | Director | |
| Edward J. Kelly, III | ||
| * | Director | |
| William E. Kennard | ||
| * | Director | |
| Catherine R. Kinney | ||
| * | Director | |
| Diana McKenzie | ||
| * | Director | |
| Denise M. Morrison |
| Signature | Title | |
| * | Director | |
| Mark A. Weinberger |
| *By: | /s/ ROBIN WAGNER |
| Robin
Wagner Attorney-in-Fact April 21, 2022 |
| * | Metropolitan Life Insurance Company. Executed by Robin Wagner, on behalf of those indicated pursuant to powers of attorney |
| (f)(1) | Amended and Restated Charter of Metropolitan Life Insurance Company. |
| (h)(4)(iv) | Amendment dated as of June 7, 2021 to the Participation Agreement dated April 10, 2001 and May 16, 1989, as amended, by and among Metropolitan Life Insurance Company on behalf of itself and certain of its separate accounts; American Funds Insurance Series; and Capital Research and Management Company. |
| (l) | Consent of Independent Registered Public Accounting Firm. |
| (o) | Form of Initial Summary Prospectuses: |
| (1) Initial Summary Prospectus (Enhanced Preference Plus — EPPA) | |
| (2) Initial Summary Prospectus (Financial Freedom) | |
| (3) Initial Summary Prospectus (Preference Plus Account — BPPA) |
| This ‘485BPOS’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 2/26/27 | ||||
| 2/26/26 | ||||
| 1/1/23 | ||||
| 12/31/22 | ||||
| Effective on: | 5/1/22 | 485BPOS | ||
| Filed on: | 4/21/22 | 485BPOS | ||
| 3/25/22 | ||||
| 3/7/22 | ||||
| 1/1/22 | ||||
| 12/31/21 | 24F-2NT, N-30D, N-CEN, N-VPFS | |||
| 12/14/21 | ||||
| 9/1/21 | ||||
| 6/7/21 | ||||
| 4/28/21 | 485BPOS | |||
| 4/1/21 | ||||
| 2/26/21 | 24F-2NT, 485APOS | |||
| 1/1/21 | ||||
| 12/31/20 | 24F-2NT, N-30D, N-CEN, N-VPFS | |||
| 1/1/20 | ||||
| 12/31/19 | 24F-2NT, N-30D, N-CEN | |||
| 11/22/19 | ||||
| 4/23/19 | 485BPOS | |||
| 1/1/19 | ||||
| 12/31/18 | 24F-2NT, N-30D, N-CEN | |||
| 4/30/18 | 485BPOS | |||
| 4/10/18 | 485BPOS | |||
| 1/1/18 | ||||
| 12/31/17 | 24F-2NT, N-30D, NSAR-U | |||
| 12/27/17 | ||||
| 12/19/17 | ||||
| 4/26/17 | 485APOS, 485BPOS | |||
| 4/12/17 | 485BPOS | |||
| 2/9/17 | ||||
| 4/13/16 | 485BPOS | |||
| 10/31/14 | CORRESP, N-4/A | |||
| 9/18/13 | ||||
| 4/16/13 | 485BPOS | |||
| 4/11/13 | 485BPOS | |||
| 12/31/12 | 24F-2NT, N-30D, NSAR-U | |||
| 8/30/12 | ||||
| 4/12/12 | 485BPOS | |||
| 4/12/11 | 485BPOS | |||
| 11/2/09 | N-4/A | |||
| 6/26/09 | 485BPOS, 497 | |||
| 1/1/09 | ||||
| 1/17/08 | 485APOS | |||
| 9/24/07 | ||||
| 9/10/07 | 485BPOS | |||
| 4/27/06 | 485BPOS | |||
| 4/8/05 | 485BPOS | |||
| 10/22/03 | 485BPOS | |||
| 4/10/03 | 485BPOS | |||
| 6/1/02 | ||||
| 3/5/02 | N-4 | |||
| 8/3/01 | N-4/A | |||
| 7/2/01 | ||||
| 4/10/01 | ||||
| 4/3/01 | 485BPOS | |||
| 9/18/00 | ||||
| 4/7/00 | N-4/A | |||
| 4/6/00 | 485BPOS | |||
| 12/31/99 | 24F-2NT, NSAR-U | |||
| 1/12/99 | 485APOS | |||
| 4/3/98 | 485BPOS | |||
| 4/30/97 | 485BPOS | |||
| 2/28/97 | 485APOS, 497 | |||
| 2/27/96 | 485APOS | |||
| 1/15/96 | ||||
| 1/1/96 | ||||
| List all Filings | ||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 4/22/24 Metropolitan Life Sep Account E 485BPOS 4/29/24 16:16M Donnelley … Solutions/FA 4/20/23 Metropolitan Life Sep Account E 485BPOS 5/01/23 11:15M Donnelley … Solutions/FA |