MET 10-Q Quarter ended Sept. 30, 2023

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Business

“MetLife” and the “Company” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. MetLife is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. MetLife is organized into five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MetLife Holdings.

Basis of Presentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. 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.

The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. Except for balances affected by the adoption of Accounting Standards Update (“ASU”) 2018-12 noted below, the December 31, 2022 consolidated balance sheet data was derived from audited consolidated financial statements included in MetLife, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2022 Annual Report.

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

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

Consolidation

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

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

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Revisions

Cash flows from short term investments in the prior years’ Interim Condensed Consolidated Statement of Cash Flows, which were previously presented net, have been revised to gross presentation to conform with the current year presentation. The revision in presentation was not material to the previously presented financial statements.

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

Pending Reinsurance Transaction

In May 2023, the Company entered into a definitive agreement with subsidiaries of Global Atlantic Financial Group, a retirement and life insurance company, to reinsure an in-force block of universal life, variable universal life, universal life with secondary guarantees, and fixed annuities, which are reported in the MetLife Holdings segment. At the closing of the transaction, the Company will enter into reinsurance agreements on a coinsurance basis for the general account products, and on a modified coinsurance basis for the separate account products, representing total liabilities of approximately $ 16.4 billion at September 30, 2023. Under the terms of such agreements, assets primarily consisting of fixed maturity securities available-for-sale (“AFS”) and mortgage loans supporting the general account liabilities will be transferred to the reinsurers at closing reduced by an approximately $ 2.3 billion pre-tax ceding commission. The Company will retain separate account assets of approximately $ 5.2 billion at September 30, 2023 under the modified coinsurance arrangement.

The transaction is expected to close in the fourth quarter of 2023 and is subject to satisfaction of certain remaining closing conditions. As of October 31, 2023, the Company had received all required regulatory approvals. See Note 10 for additional information on assets to be transferred to the reinsurers at closing, including associated impairments recorded to net investment gains (losses).

Summary of Significant Accounting Policies

The following table presents the Company’s significant accounting policies which have changed as a result of the adoption of LDTI with cross-references to the notes which provide additional information on such policies.

Accounting Policy			Note
Future Policy Benefit Liabilities			4
Policyholder Account Balances			5
Market Risk Benefits			6
Deferred Policy Acquisition Costs, Value of Business Acquired, Unearned Revenue and Other Intangibles			8
Derivatives			11

Future Policy Benefit Liabilities

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

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

FPBs are measured as cohorts (e.g., groups of long-duration contracts), with the exception of pension risk transfers and longevity reinsurance solutions contracts, each of which are generally considered their own cohort. Contracts from

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different subsidiaries or branches, issue years, benefit currencies and product types are not grouped together in the same cohort.

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

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

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

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

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

Disaggregated rollforwards			Jurisdiction			Observable base curve			Spread applied to derive upper-medium grade discount rate
U.S. Annuities, MetLife Holdings Long-term Care			United States			Single A curve			No spread applied as there is an observable single A base discount curve.

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Asia - Whole and Term Life & Endowments, Asia - Accident & Health			Japan			Japanese government bond yield			A spread is applied based on local corporate bonds whose credit is deemed to approximate single A bonds. The spread is based on weighted average bond yields up to 10 years and held flat for years 10 to 30 .
			Korea			Korean government bond yield			A spread is applied based on local corporate bonds whose credit is deemed to approximate single A bonds. The spread is based on weighted average bond yields up to five years and held flat for years five to 30 .
Latin America Fixed Annuities			Chile			Chilean government bond yield			A blended spread is applied based on local corporate bonds whose credit is deemed to approximate single A bonds. The spread is based on weighted average bond yields up to 10 years and held flat for years 10 to 25 .
			Mexico			Mexican government bond yield			There are few public corporate bonds denominated in Mexican pesos with a credit rating higher than sovereign bonds. Therefore, a spread is applied based on local corporate bond yields to approximate a single A equivalent bond.

For limited-payment long-duration contracts, the collection of premiums does not represent the completion of the earnings process, therefore, any gross premiums received in excess of net premiums is deferred and amortized as a deferred profit liability (“DPL”). The DPL is presented within FPBs and is amortized in proportion to either the present value of expected benefit payments or insurance in-force of each cohort to ensure that profits are recognized over the life of the underlying policies in that cohort, regardless of when premiums are received. This amortization of the DPL is recorded through net income within policyholder benefits and claims. Consistent with the Company’s measurement of traditional long-duration products, management also recognizes a FPB reserve for limited-payment contracts that is representative of the difference between the present value of expected future benefit payments and the present value of expected future net premiums, subject to retrospective remeasurement through net income and OCI, as described above. The DPL is also subject to retrospective remeasurement through net income, however, it is not remeasured for changes in discount rates.

Traditional Participating Products

The Company establishes FPBs for traditional participating contracts in the U.S., which include whole and term life participating contracts in both the open and closed block using a net premium approach, similar to traditional non-participating contracts. However, for participating contracts, the discount rate and actuarial assumptions are locked in at inception, include a provision for adverse deviation, and all changes in the associated FPBs are reported within policyholder benefits and claims. See Note 9 for additional information on the closed block. For traditional participating contracts, the Company reviews its estimates of actuarial liabilities for future benefits and compares them with current best estimate assumptions. The Company revises estimates, to increase FPBs, if the Company determines that the liabilities previously established for future benefit payments less future expected net premiums in the aggregate for this line of business prove inadequate.

Additional Insurance Liabilities

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

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The resulting remeasurement (gain) loss recorded through net income reflects the impact on the change in the ratio of benefits payable to total assessments over the life of the contract based on experience at end of the quarter applied to the cumulative assessments received as of the beginning of the quarter.

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

Premium Deficiency Reserves on Short-Duration Contracts

Premium deficiency reserves may be established for short-duration contracts to provide for expected future losses and certain expenses that exceed unearned premiums. These reserves are based on actuarial estimates of the amount of loss inherent in that period, including losses incurred for which claims have not been reported. The provisions for unreported claims are calculated using studies that measure the historical length of time between the incurred date of a claim and its eventual reporting to the Company. Anticipated investment income is considered in the calculation of premium deficiency losses for short-duration contracts.

Policyholder Account Balances

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

Market Risk Benefits

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

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

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

Other Policy-Related Balances

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

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

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

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

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

Recognition of Insurance Revenues and Deposits

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

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

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

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

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

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

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

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

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

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

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

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

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

DAC and VOBA are aggregated on the financial statements for reporting purposes. See Note 8 for additional information on DAC and VOBA amortization. Amortization of DAC and VOBA is included in other expenses.

The Company generally has two different types of sales inducements which are included in other assets: (i) the policyholder receives a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s deposit; and (ii) the policyholder receives a higher interest rate using a dollar cost averaging method than would have been received based on the normal general account interest rate credited. The Company defers sales inducements and amortizes them over the life of the policy using the same methodologies and assumptions used to amortize DAC for the related contracts. The amortization of 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. DSI assets were $ 146 million and $ 133 million at September 30, 2023 and December 31, 2022, respectively.

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

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

Reinsurance

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

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

For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying reinsured contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is amortized on a basis consistent with the methodologies and assumptions used for amortizing DAC related to the underlying reinsured contracts. Subsequent 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, or when events or changes in circumstances indicate that its carrying amount may not be recoverable, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, consistent with credit loss guidance which requires recording an allowance for credit loss (“ACL”).

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

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

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.

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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:
Net investment income			•			Economic hedges of equity method investments in joint ventures
			•			Derivatives held within contractholder-directed investments supporting unit-linked variable annuity type liabilities (“Unit-linked investments”)
			•			Economic hedges of fair value option securities (“FVO Securities”) which are linked to equity indices

Hedge Accounting

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

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

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

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

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

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

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

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

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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

As discussed above, certain guarantees previously accounted for as embedded derivatives are accounted for as MRBs upon adoption of LDTI. The Company issues certain products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if:

• the contract or contract feature does not meet the definition of a MRB (as a result of the adoption of LDTI);

• 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.

Recent Accounting Pronouncements

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

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

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

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

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

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

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

Market Risk Benefits (See Note 6)

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

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

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

• The amounts previously recorded for these contracts within additional insurance liabilities, embedded derivatives, and other insurance liabilities were reclassified to MRB liabilities;

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

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

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

Future Policy Benefits (See Note 4)

Traditional Non-participating Long-duration products

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

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

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

• Corresponding adjustments were made to ceded reinsurance balances.

Limited-payment Long-duration products

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

Additional insurance liabilities

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

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

• Corresponding adjustments were made to ceded reinsurance balances.

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

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

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

Individual income annuities reclassification

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

Other reclassifications and adjustments

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

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

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

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The following table presents the effects of the retrospective application of the adoption of the new LDTI accounting guidance to the Company’s previously reported interim condensed consolidated statement of operations and comprehensive income (loss):

						Three Months Ended September 30, 2022																		Nine Months Ended September 30, 2022
						As Previously Reported						Adoption Adjustment						Post Adoption						As Previously Reported						Adoption Adjustment						Post Adoption
						(In millions)
Revenues
Premiums						$	17,547					$	( 215 )					$	17,332					$	40,039					$	( 534 )					$	39,505
Universal life and investment-type product policy fees						$	1,302					$	( 27 )					$	1,275					$	4,236					$	( 277 )					$	3,959
Other revenues						$	730					$	( 2 )					$	728					$	2,006					$	( 3 )					$	2,003
Net investment gains (losses)						$	( 414 )					$	3					$	( 411 )					$	( 1,617 )					$	7					$	( 1,610 )
Net derivative gains (losses)						$	( 480 )					$	254					$	( 226 )					$	( 2,534 )					$	387					$	( 2,147 )
Total revenues						$	22,270					$	13					$	22,283					$	53,582					$	( 420 )					$	53,162
Expenses
Policyholder benefits and claims						$	17,993					$	( 390 )					$	17,603					$	40,976					$	( 584 )					$	40,392
Policyholder liability remeasurement (gains) losses						$	—					$	136					$	136					$	—					$	94					$	94
Market risk benefits remeasurement (gains) losses						$	—					$	( 965 )					$	( 965 )					$	—					$	( 3,162 )					$	( 3,162 )
Interest credited to policyholder account balances						$	980					$	34					$	1,014					$	2,102					$	65					$	2,167
Policyholder dividends						$	155					$	3					$	158					$	546					$	5					$	551
Other expenses						$	2,723					$	199					$	2,922					$	8,826					$	( 44 )					$	8,782
Total expenses						$	21,851					$	( 983 )					$	20,868					$	52,450					$	( 3,626 )					$	48,824
Income (loss) before provision for income tax						$	419					$	996					$	1,415					$	1,132					$	3,206					$	4,338
Provision for income tax expense (benefit)						$	19					$	229					$	248					$	( 80 )					$	697					$	617
Net income (loss)						$	400					$	767					$	1,167					$	1,212					$	2,509					$	3,721
Net income (loss) attributable to noncontrolling interests						$	5					$	—					$	5					$	16					$	( 1 )					$	15
Net income (loss) attributable to MetLife, Inc.						$	395					$	767					$	1,162					$	1,196					$	2,510					$	3,706
Net income (loss) available to MetLife, Inc.'s common shareholders						$	331					$	767					$	1,098					$	1,040					$	2,510					$	3,550
Comprehensive income (loss)						$	( 10,923 )					$	7,670					$	( 3,253 )					$	( 38,405 )					$	22,048					$	( 16,357 )
Comprehensive income (loss) attributable to noncontrolling interests, net of income tax						$	5					$	—					$	5					$	13					$	( 1 )					$	12
Comprehensive income (loss) attributable to MetLife, Inc.						$	( 10,928 )					$	7,670					$	( 3,258 )					$	( 38,418 )					$	22,049					$	( 16,369 )
Net income (loss) available to MetLife, Inc.'s common shareholders per common share:
Basic						$	0.42					$	0.96					$	1.38					$	1.28					$	3.10					$	4.38
Diluted						$	0.41					$	0.96					$	1.37					$	1.28					$	3.07					$	4.35

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

																								As Previously Reported						Adoption Adjustment						Post Adoption
																								(In millions)
Retained Earnings
Balance at December 31, 2021																								$	41,197					$	( 4,366 )					$	36,831
Net income (loss)																								$	801					$	1,743					$	2,544
Balance at June 30, 2022																								$	41,101					$	( 2,623 )					$	38,478
Net income (loss)																								$	395					$	767					$	1,162
Balance at September 30, 2022																								$	41,032					$	( 1,856 )					$	39,176
Balance at December 31, 2022																								$	41,953					$	( 1,621 )					$	40,332
Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2021																								$	10,919					$	( 13,370 )					$	( 2,451 )
Other comprehensive income (loss), net of income tax																								$	( 28,291 )					$	12,636					$	( 15,655 )
Balance at June 30, 2022																								$	( 17,372 )					$	( 734 )					$	( 18,106 )
Other comprehensive income (loss), net of income tax																								$	( 11,323 )					$	6,903					$	( 4,420 )
Balance at September 30, 2022																								$	( 28,695 )					$	6,169					$	( 22,526 )
Balance at December 31, 2022																								$	( 27,083 )					$	4,462					$	( 22,621 )
Total MetLife, Inc.’s Stockholders’ Equity
Balance at December 31, 2021																								$	67,482					$	( 17,736 )					$	49,746
Balance at June 30, 2022																								$	37,101					$	( 3,357 )					$	33,744
Balance at September 30, 2022																								$	25,076					$	4,313					$	29,389
Balance at December 31, 2022																								$	27,040					$	2,841					$	29,881
Noncontrolling Interests
Balance at December 31, 2021																								$	267					$	—					$	267
Net income (loss)																								$	11					$	( 1 )					$	10
Balance at June 30, 2022																								$	266					$	( 1 )					$	265
Change in equity of noncontrolling interests																								$	( 17 )					$	( 2 )					$	( 19 )
Balance at September 30, 2022																								$	254					$	( 3 )					$	251
Balance at December 31, 2022																								$	247					$	( 3 )					$	244
Total Equity
Balance at December 31, 2021																								$	67,749					$	( 17,736 )					$	50,013
Balance at June 30, 2022																								$	37,367					$	( 3,358 )					$	34,009
Balance at September 30, 2022																								$	25,330					$	4,310					$	29,640
Balance at December 31, 2022																								$	27,287					$	2,838					$	30,125

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

																								Nine Months Ended September 30, 2022
																								As Previously Reported						Adoption Adjustment						Post Adoption
																								(In millions)
Cash flows from operating activities
Net cash provided by (used in) operating activities																								$	10,670					$	73					$	10,743
Cash flows from financing activities
Policyholder account balances - deposits																								$	83,707					$	492					$	84,199
Policyholder account balances - withdrawals																								$	( 79,114 )					$	( 565 )					$	( 79,679 )
Net cash provided by (used in) financing activities																								$	( 5,407 )					$	( 73 )					$	( 5,480 )

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Other Adopted Accounting Pronouncements

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

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

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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 interim condensed consolidated financial statements or disclosures. ASUs issued but not yet adopted as of September 30, 2023 that are currently being assessed and may or may not have a material impact on the Company’s interim condensed consolidated financial statements or disclosures are summarized in the table below.

Standard			Description			Effective Date and Method of Adoption			Impact on Financial Statements
ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method			The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. In addition, disclosures describing the nature of the investments and related income tax credits and benefits will be required.			January 1, 2024, to be applied on either a modified retrospective or a retrospective basis subject to certain exceptions (with early adoption permitted).			The Company is continuing to evaluate whether to elect to account for qualifying tax equity investments using the proportional amortization method and is assessing the corresponding impact on its interim condensed consolidated financial statements.
ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions			The amendments in this update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. In addition, the amendments clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendments also require entities that hold equity securities subject to contractual sale restrictions to make disclosures about the fair value of such equity securities, the nature and remaining duration of the restriction(s) and the circumstances that could cause a lapse in the restriction(s).			January 1, 2024, to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption (with early adoption permitted).			The Company does not expect the adoption of the guidance to have a material impact on its interim condensed consolidated financial statements.

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MetLife is organized into five segments: U.S.; Asia; Latin America; EMEA; 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, vision 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, longevity reinsurance solutions, benefit funding solutions and capital markets investment products.

Asia

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

Latin America

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

EMEA

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

MetLife Holdings

The MetLife Holdings segment consists of operations relating to products and businesses that the Company no longer actively markets in the United States. These include variable, universal, term and whole life insurance, variable, fixed and index-linked annuities and long-term care insurance.

Corporate & Other

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

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.

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

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

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

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

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

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

• Other revenues include settlements of foreign currency earnings hedges.

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

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

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

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

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

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

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

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

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

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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 three months and nine months ended September 30, 2023 and 2022. The segment accounting policies are the same as those used to prepare the Company’s interim condensed consolidated financial statements, except for adjusted earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

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

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

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

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

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The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at:

						September 30, 2023						December 31, 2022
						(In millions)
U.S.						$	244,564					$	252,219
Asia						145,624						148,305
Latin America						63,305						63,687
EMEA						17,345						16,860
MetLife Holdings						143,244						148,749
Corporate & Other						38,038						33,252
Total						$	652,120					$	663,072

Pending Disposition of MetLife Malaysia

In October 2023, the Company entered into an agreement to sell its ownership interests in AmMetLife Insurance Berhad (Malaysia) and AmMetLife Takaful Berhad (Malaysia) (collectively, “MetLife Malaysia”), each an operating joint venture accounted for under the equity method and recorded to other invested assets. In connection with the anticipated disposal, an expected impairment loss of $ 136 million, net of income tax, was recorded for the nine months ended September 30, 2023, and is reflected in net investment gains (losses). MetLife Malaysia’s results are reported in the Asia segment’s adjusted earnings. The transaction is expected to close in 2024 and is subject to regulatory approvals and satisfaction of other closing conditions.

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

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

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

_ _________________

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

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

						September 30, 2023						December 31, 2022
						(In millions)
Traditional and Limited-Payment Contracts:
U.S. - Annuities						$	57,496					$	58,495
Asia:
Whole and term life & endowments						11,404						12,792
Accident & health						9,329						10,040
Latin America - Fixed annuities						8,662						9,265
MetLife Holdings - Long-term care						13,025						13,845
Deferred Profit Liabilities:
U.S. - Annuities						3,647						3,327
Asia:
Whole and term life & endowments						592						510
Accident & health						762						760
Latin America - Fixed annuities						546						560
Additional Insurance Liabilities:
Asia:
Variable life						1,193						1,381
Universal and variable universal life						386						455
MetLife Holdings - Universal and variable universal life						2,273						2,156
MetLife Holdings - Participating life						49,717						50,371
Other long-duration (1)						9,676						10,101
Short-duration and other						13,047						13,164
Total						$	181,755					$	187,222

__________________

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

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Rollforwards - Traditional and Limited-Payment Contracts

The following information about the direct and assumed liability for future policy benefits includes disaggregated rollforwards of expected future net premiums and expected future benefits. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses.

U.S. - Annuities

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

						Nine Months Ended September 30,
						2023						2022
						(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date						$	—					$	—
Balance, beginning of period, at original discount rate						$	—					$	—
Effect of changes in cash flow assumptions (1)						—						—
Effect of actual variances from expected experience (2)						( 89 )						( 15 )
Adjusted balance						( 89 )						( 15 )
Issuances						4,422						12,500
Net premiums collected						( 4,333 )						( 12,485 )
Ending balance at original discount rate						—						—
Balance, end of period, at current discount rate at balance sheet date						$	—					$	—
Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date						$	58,695					$	62,954
Balance, beginning of period, at original discount rate						$	61,426					$	50,890
Effect of changes in cash flow assumptions (1)						( 284 )						( 115 )
Effect of actual variances from expected experience (2)						( 222 )						( 82 )
Adjusted balance						60,920						50,693
Issuances						4,420						12,598
Interest accrual						2,145						1,811
Benefit payments						( 4,121 )						( 3,322 )
Ending balance at original discount rate						63,364						61,780
Effect of changes in discount rate assumptions						( 5,438 )						( 4,382 )
Balance, end of period, at current discount rate at balance sheet date						57,926						57,398
Cumulative amount of fair value hedging adjustments						( 430 )						( 169 )
Net liability for future policy benefits						57,496						57,229
Less: Reinsurance recoverables						—						—
Net liability for future policy benefits, net of reinsurance						$	57,496					$	57,229
Undiscounted - Expected future benefit payments						$	119,270					$	114,766
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)						$	57,926					$	57,398
Weighted-average duration of the liability						9 years						9 years
Weighted-average interest accretion (original locked-in) rate						4.7		%				4.4		%
Weighted-average current discount rate at balance sheet date						6.1		%				5.8		%

_________________

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(1) For the nine months ended September 30, 2023, the net effect of changes in cash flow assumptions was largely offset by the corresponding impact in DPL associated with the U.S. segment’s annuities products of $ 211 million. For the nine months ended September 30, 2022, the net effect of changes in cash flow assumptions was more than offset by the corresponding impact in DPL associated with the U.S. segment’s annuities products of $ 128 million.

(2) For the nine months ended September 30, 2023 and 2022, the net effect of actual variances from expected experience was largely offset by the corresponding impact in DPL associated with the U.S. segment’s annuities products of $ 95 million and $ 40 million, respectively.

Significant Methodologies and Assumptions

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

For the nine months ended September 30, 2023 and 2022, the net effect of changes in cash flow assumptions was primarily driven by updates in biometric assumptions related to mortality.

F or the nine months ended September 30, 2023 and 2022, the net effect of actual variances from expected experience was primarily driven by favorable mortality.

When single-premium annuity contracts are issued, the FPB reserve is required to be measured at an upper-medium grade discount rate. Due to differences between the upper-medium grade discount rate and pricing assumptions used to determine the contractual premium, the initial FPB reserve at issue for a particular cohort may be greater than the contractual premium received, and the difference must be recognized as an immediate loss at issue. On these cohorts, future experience that differs from expected experience and changes in cash flow assumptions result in the recognition of remeasurement gains and losses with net remeasurement gains limited to the amount of the original loss at issue, after which any favorable experience is deferred and recorded within the DPL. For the three months and nine months ended September 30, 2022, the Company incurred a loss at issue of $ 91 million and $ 99 million, respectively, and recognized a net remeasurement loss of $ 47 million and $ 44 million, respectively, attributable to cohorts with no DPL or where the DPL was depleted during the period.

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Asia

Whole and Term Life & Endowments

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

			Nine Months Ended September 30,
						2023						2022
						(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date						$	4,682					$	5,986
Balance, beginning of period, at original discount rate						$	4,943					$	5,881
Effect of changes in cash flow assumptions						11						71
Effect of actual variances from expected experience						( 41 )						35
Adjusted balance						4,913						5,987
Issuances						614						146
Interest accrual						43						33
Net premiums collected						( 457 )						( 469 )
Effect of foreign currency translation						( 518 )						( 1,109 )
Ending balance at original discount rate						4,595						4,588
Effect of changes in discount rate assumptions						( 319 )						( 160 )
Effect of foreign currency translation on the effect of changes in discount rate assumptions						23						5
Balance, end of period, at current discount rate at balance sheet date						$	4,299					$	4,433
Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date						$	17,463					$	24,453
Balance, beginning of period, at original discount rate						$	18,209					$	21,276
Effect of changes in cash flow assumptions						58						97
Effect of actual variances from expected experience						( 14 )						50
Adjusted balance						18,253						21,423
Issuances						614						146
Interest accrual						278						277
Benefit payments						( 895 )						( 1,088 )
Effect of foreign currency translation						( 1,847 )						( 4,071 )
Ending balance at original discount rate						16,403						16,687
Effect of changes in discount rate assumptions						( 742 )						( 74 )
Effect of foreign currency translation on the effect of changes in discount rate assumptions						40						( 228 )
Balance, end of period, at current discount rate at balance sheet date						15,701						16,385
Cumulative impact of flooring the future policyholder benefits reserve						2						30
Net liability for future policy benefits						11,404						11,982
Less: Reinsurance recoverables (Amount due to reinsurer)						( 1 )						—
Net liability for future policy benefits, net of reinsurance						$	11,405					$	11,982
Undiscounted:
Expected future gross premiums						$	8,911					$	8,888
Expected future benefit payments						$	26,785					$	25,565
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums						$	7,582					$	7,796
Expected future benefit payments						$	15,701					$	16,385
Weighted-average duration of the liability						17 years						16 years
Weighted -average interest accretion (original locked-in) rate						2.5		%				2.4		%
Weighted-average current discount rate at balance sheet date						2.9		%				2.5		%

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Significant Methodologies and Assumptions

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

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Accident & Health

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

						Nine Months Ended September 30,
						2023						2022
						(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date						$	21,181					$	26,543
Balance, beginning of period, at original discount rate						$	22,594					$	25,937
Effect of changes in cash flow assumptions						867						24
Effect of actual variances from expected experience						( 75 )						298
Adjusted balance						23,386						26,259
Issuances						813						1,149
Interest accrual						179						192
Net premiums collected						( 1,546 )						( 1,659 )
Effect of foreign currency translation						( 2,474 )						( 5,180 )
Ending balance at original discount rate						20,358						20,761
Effect of changes in discount rate assumptions						( 1,803 )						( 886 )
Effect of foreign currency translation on the effect of changes in discount rate assumptions						136						45
Balance, end of period, at current discount rate at balance sheet date						$	18,691					$	19,920
Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date						$	30,879					$	41,874
Balance, beginning of period, at original discount rate						$	37,189					$	41,517
Effect of changes in cash flow assumptions						898						( 7 )
Effect of actual variances from expected experience						( 99 )						354
Adjusted balance						37,988						41,864
Issuances						812						1,150
Interest accrual						367						381
Benefit payments						( 958 )						( 1,242 )
Effect of foreign currency translation						( 4,061 )						( 8,327 )
Ending balance at original discount rate						34,148						33,826
Effect of changes in discount rate assumptions						( 6,866 )						( 5,168 )
Effect of foreign currency translation on the effect of changes in discount rate assumptions						595						535
Balance, end of period, at current discount rate at balance sheet date						27,877						29,193
Cumulative impact of flooring the future policyholder benefits reserve						143						247
Net liability for future policy benefits						9,329						9,520
Less: Reinsurance recoverables						136						16
Net liability for future policy benefits, net of reinsurance						$	9,193					$	9,504
Undiscounted:
Expected future gross premiums						$	39,891					$	39,847
Expected future benefit payments						$	44,612					$	43,770
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums						$	32,286					$	34,046
Expected future benefit payments						$	27,877					$	29,193
Weighted-average duration of the liability						25 years						20 years
Weighted-average interest accretion (original locked-in) rate						1.8 %						1.8 %
Weighted-average current discount rate at balance sheet date						2.8 %						2.4 %

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Significant Methodologies and Assumptions

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

For the nine months ended September 30, 2023, the net effect of changes in cash flow assumptions was primarily driven by updates in policyholder behavior assumptions related to lapses, partially offset by updates in biometric assumptions associated with mortality and morbidity.

Latin America - Fixed Annuities

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

						Nine Months Ended September 30,
						2023						2022
						(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date						$	—					$	—
Balance, at beginning of period, at original discount rate						$	—					$	—
Effect of changes in cash flow assumptions (1)						—						—
Effect of actual variances from expected experience (2)						( 2 )						1
Adjusted balance						( 2 )						1
Issuances						785						551
Interest accrual						16						( 3 )
Net premiums collected						( 799 )						( 549 )
Ending balance at original discount rate						—						—
Balance, end of period, at current discount rate at balance sheet date						$	—					$	—
Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date						$	9,265					$	7,343
Balance, beginning of period, at original discount rate						$	8,240					$	6,851
Effect of changes in cash flow assumptions (1)						( 5 )						( 11 )
Effect of actual variances from expected experience (2)						( 13 )						( 26 )
Adjusted balance						8,222						6,814
Issuances						869						590
Interest accrual						258						213
Benefit payments						( 504 )						( 422 )
Inflation adjustment						273						713
Effect of foreign currency translation						( 403 )						( 821 )
Ending balance at original discount rate						8,715						7,087
Effect of changes in discount rate assumptions						( 59 )						394
Effect of foreign currency translation on the effect of changes in discount rate assumptions						6						( 87 )
Balance, end of period, at current discount rate at balance sheet date						8,662						7,394
Net liability for future policy benefits						$	8,662					$	7,394
Undiscounted - Expected future benefit payments						$	13,204					$	10,931
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)						$	8,662					$	7,394
Weighted-average duration of the liability						10 years						11 years
Weighted-average interest accretion (original locked-in) rate						3.9 %						4.2 %
Weighted-average current discount rate at balance sheet date						3.7 %						3.4 %

__________________

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(1) For the nine months ended September 30, 2023 and 2022, the net effect of changes in cash flow assumptions was largely offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuities products of $ 4 million and $ 10 million, respectively.

(2) For the nine months ended September 30, 2023, the net effect of actual variances from expected experience was partially offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuities products of $ 2 million. For the nine months ended September 30, 2022, the net effect of actual variances from expected experience was largely offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuities products of $ 17 million.

Significant Methodologies and Assumptions

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MetLife Holdings - Long-term Care

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

						Nine Months Ended September 30,
						2023						2022
						(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date						$	5,775					$	7,058
Balance, beginning of period, at original discount rate						$	5,807					$	5,699
Effect of changes in cash flow assumptions						( 152 )						272
Effect of actual variances from expected experience						173						101
Adjusted balance						5,828						6,072
Interest accrual						222						223
Net premiums collected						( 438 )						( 434 )
Ending balance at original discount rate						5,612						5,861
Effect of changes in discount rate assumptions						( 258 )						( 142 )
Balance, end of period, at current discount rate at balance sheet date						$	5,354					$	5,719
Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date						$	19,619					$	27,627
Balance, beginning of period, at original discount rate						$	20,165					$	19,406
Effect of changes in cash flow assumptions						( 190 )						301
Effect of actual variances from expected experience						194						100
Adjusted balance						20,169						19,807
Interest accrual						801						778
Benefit payments						( 579 )						( 522 )
Ending balance at original discount rate						20,391						20,063
Effect of changes in discount rate assumptions						( 2,012 )						( 1,358 )
Balance, end of period, at current discount rate at balance sheet date						18,379						18,705
Net liability for future policy benefits						$	13,025					$	12,986
Undiscounted:
Expected future gross premiums						$	10,713					$	11,335
Expected future benefit payments						$	45,152					$	46,011
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums						$	6,714					$	7,126
Expected future benefit payments						$	18,379					$	18,705
Weighted-average duration of the liability						14 years						15 years
Weighted-average interest accretion (original locked-in) rate						5.5 %						5.5 %
Weighted-average current discount rate at balance sheet date						6.3 %						6.0 %

Significant Methodologies and Assumptions

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

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Rollforwards - Additional Insurance Liabilities

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

The following information about the direct liability for additional insurance liabilities includes disaggregated rollforwards. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses.

Asia

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

						Nine Months Ended September 30,
						2023						2022						2023						2022
						Variable Life												Universal and Variable Universal Life
						(Dollars in millions)
Balance, beginning of period						$	1,381					$	1,595					$	455					$	655
Less: AOCI adjustment						—						—						( 33 )						56
Balance, beginning of period, before AOCI adjustment						1,381						1,595						488						599
Effect of changes in cash flow assumptions						$	( 4 )					$	8					$	( 2 )					$	( 1 )
Effect of actual variances from expected experience						( 9 )						2						( 32 )						( 56 )
Adjusted balance						1,368						1,605						454						542
Assessments accrual						( 3 )						( 2 )						—						( 1 )
Interest accrual						15						16						5						6
Excess benefits paid						( 29 )						( 31 )						—						—
Effect of foreign currency translation and other, net						( 158 )						( 324 )						( 55 )						( 117 )
Balance, end of period, before AOCI adjustment						1,193						1,264						404						430
Add: AOCI adjustment						—						—						( 18 )						( 28 )
Balance, end of period						$	1,193					$	1,264					$	386					$	402
Weighted-average duration of the liability						16 years						17 years						43 years						43 years
Weighted-average interest accretion rate						1.5		%				1.5		%				1.5		%				1.5		%

Significant Methodologies and Assumptions

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

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

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

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

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

MetLife Holdings

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

						Nine Months Ended September 30,
						2023						2022
						Universal and Variable Universal Life
						(Dollars in millions)
Balance, beginning of period						$	2,156					$	2,117
Less: AOCI adjustment						( 63 )						67
Balance, beginning of period, before AOCI adjustment						2,219						2,050
Effect of changes in cash flow assumptions						$	38					$	35
Effect of actual variances from expected experience						( 10 )						27
Adjusted balance						2,247						2,112
Assessments accrual						80						77
Interest accrual						92						86
Excess benefits paid						( 81 )						( 90 )
Balance, end of period, before AOCI adjustment						2,338						2,185
Add: AOCI adjustment						( 65 )						( 66 )
Balance, end of period						2,273						2,119
Less: Reinsurance recoverables						766						741
Balance, end of period, net of reinsurance						$	1,507					$	1,378
Weighted-average duration of the liability						16 years						16 years
Weighted-average interest accretion rate						5.5		%				5.6		%

Significant Methodologies and Assumptions

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

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

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

						Nine Months Ended September 30,
						2023												2022
						Gross Premiums or Assessments (1)						Interest Expense (2)						Gross Premiums or Assessments (1)						Interest Expense (2)
			(In millions)
Traditional and Limited-Payment Contracts:
U.S. - Annuities						$	4,433					$	2,145					$	12,627					$	1,811
Asia:
Whole and term life & endowments						841						235						880						244
Accident & health						2,580						188						2,773						189
Latin America - Fixed annuities						799						242						549						216
MetLife Holdings - Long-term care						547						579						550						555
Deferred Profit Liabilities:
U.S. - Annuities						N/A						124						N/A						115
Asia:
Whole and term life & endowments						N/A						22						N/A						19
Accident & health						N/A						13						N/A						12
Latin America - Fixed annuities						N/A						17						N/A						15
Additional Insurance Liabilities:
Asia:
Variable life						60						15						37						16
Universal and variable universal life						( 20 )						5						( 8 )						6
MetLife Holdings - Universal and variable universal life						559						92						584						86
Other long-duration						3,194						341						2,671						339
Total						$	12,993					$	4,018					$	20,663					$	3,623

__________________

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

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

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Liabilities for Unpaid Claims and Claim Expenses

Rollforward of Claims and Claim Adjustment Expenses

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

						Nine Months Ended September 30,
						2023						2022
						(In millions)
Balance, beginning of period						$	16,098					$	15,598
Less: Reinsurance recoverables						2,452						2,629
Net balance, beginning of period						13,646						12,969
Incurred related to:
Current period						19,983						19,391
Prior periods (1)						327						689
Total incurred						20,310						20,080
Paid related to:
Current period						( 13,991 )						( 13,641 )
Prior periods						( 5,883 )						( 5,593 )
Total paid						( 19,874 )						( 19,234 )
Net balance, end of period						14,082						13,815
Add: Reinsurance recoverables						2,523						2,398
Balance, end of period (included in future policy benefits and other policy-related balances)						$	16,605					$	16,213

__________________

(1) For the nine months ended September 30, 2023, incurred claims and claim adjustment expenses associated with prior periods increased due to events incurred in prior periods but reported in the current period. For the nine months ended September 30, 2022, incurred claims and claim adjustment expenses include expenses associated with prior periods but reported in the 2022 period, which contain impacts related to the COVID-19 pandemic, partially offset by additional premiums recorded for experience-rated contracts that are not reflected in the table above.

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

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

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

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

						September 30, 2023						December 31, 2022
						(In millions)
U.S.:
Group Life						$	7,785					$	8,028
Capital Markets Investment Products and Stable Value GICs						63,417						63,723
Annuities and Risk Solutions						17,064						15,549
Asia:
Universal and Variable Universal Life						47,630						46,417
Fixed Annuities						35,480						32,454
EMEA - Variable Annuities						2,571						2,802
MetLife Holdings:
Annuities						12,006						13,286
Life and Other						11,844						12,402
Other						16,136						15,936
Total						$	213,933					$	210,597

Rollforwards

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

U.S.

Group Life

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

						Nine Months Ended September 30,
						2023						2022
						(Dollars in millions)
Balance, beginning of period						$	8,028					$	7,893
Deposits						2,529						2,596
Policy charges						( 475 )						( 458 )
Surrenders and withdrawals						( 2,432 )						( 2,057 )
Benefit payments						( 9 )						( 7 )
Net transfers from (to) separate accounts						1						( 2 )
Interest credited						143						96
Balance, end of period						$	7,785					$	8,061
Weighted-average annual crediting rate						2.4 %						1.6 %
Cash surrender value						$	7,721					$	8,007

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Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the U.S. segment’s group life products was as follows at:

						September 30,
						2023												2022
						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits
						(In millions)
Net amount at risk						$	250,611					N/A						$	246,676					N/A

__________________

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

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

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
September 30, 2023
Equal to or greater than 0 % but less than 2 %						$	—					$	82					$	887					$	4,595					$	5,564
Equal to or greater than 2 % but less than 4 %						1,223						10						62						2						1,297
Equal to or greater than 4 %						733						1						42						34						810
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						114
Total						$	1,956					$	93					$	991					$	4,631					$	7,785
September 30, 2022
Equal to or greater than 0 % but less than 2 %						$	—					$	990					$	4,469					$	247					$	5,706
Equal to or greater than 2 % but less than 4 %						1,321						53						22						—						1,396
Equal to or greater than 4 %						799						1						—						31						831
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						128
Total						$	2,120					$	1,044					$	4,491					$	278					$	8,061

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Capital Markets Investment Products and Stable Value GICs

The U.S. segment’s capital markets investment products and stable value GICs PABs are investment-type products, mainly funding agreements. Information regarding this liability was as follows:

						Nine Months Ended September 30,
						2023						2022
						(Dollars in millions)
Balance, beginning of period						$	63,723					$	62,521
Deposits						54,674						67,810
Surrenders and withdrawals						( 56,873 )						( 65,880 )
Interest credited						1,524						843
Effect of foreign currency translation and other, net						369						( 1,756 )
Balance, end of period						$	63,417					$	63,538
Weighted-average annual crediting rate						3.2 %						1.8 %
Cash surrender value						$	2,110					$	2,060

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

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
September 30, 2023
Equal to or greater than 0 % but less than 2 %						$	—					$	—					$	1					$	2,620					$	2,621
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						60,796
Total						$	—					$	—					$	1					$	2,620					$	63,417
September 30, 2022
Equal to or greater than 0 % but less than 2 %						$	—					$	—					$	22					$	3,553					$	3,575
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						59,963
Total						$	—					$	—					$	22					$	3,553					$	63,538

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Annuities and Risk Solutions

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

						Nine Months Ended September 30,
						2023						2022
						(Dollars in millions)
Balance, beginning of period						$	15,549					$	14,431
Deposits						2,007						1,324
Policy charges						( 133 )						( 137 )
Surrenders and withdrawals						( 134 )						( 95 )
Benefit payments						( 615 )						( 560 )
Net transfers from (to) separate accounts						54						( 26 )
Interest credited						469						398
Other						( 133 )						( 228 )
Balance, end of period						$	17,064					$	15,107
Weighted-average annual crediting rate						3.9 %						3.7 %
Cash surrender value						$	7,693					$	7,212

Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the U.S. segment’s annuities and risk solutions products was as follows at:

						September 30,
						2023												2022
						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits
						(In millions)
Net amount at risk						$	42,043					N/A						$	41,435					N/A

__________________

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

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

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
September 30, 2023
Equal to or greater than 0 % but less than 2 %						$	—					$	—					$	22					$	1,525					$	1,547
Equal to or greater than 2 % but less than 4 %						260						33						94						437						824
Equal to or greater than 4 %						4,363						—						277						6						4,646
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						10,047
Total						$	4,623					$	33					$	393					$	1,968					$	17,064
September 30, 2022
Equal to or greater than 0 % but less than 2 %						$	—					$	—					$	116					$	1,164					$	1,280
Equal to or greater than 2 % but less than 4 %						303						40						124						416						883
Equal to or greater than 4 %						4,410						121						57						4						4,592
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						8,352
Total						$	4,713					$	161					$	297					$	1,584					$	15,107

Asia

Universal and Variable Universal Life

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

						Nine Months Ended September 30,
						2023						2022
						(Dollars in millions)
Balance, beginning of period						$	46,417					$	46,590
Deposits						5,439						4,421
Policy charges						( 888 )						( 847 )
Surrenders and withdrawals						( 2,018 )						( 2,052 )
Benefit payments						( 393 )						( 374 )
Interest credited						979						759
Effect of foreign currency translation and other, net						( 1,906 )						( 3,783 )
Balance, end of period						$	47,630					$	44,714
Weighted-average annual crediting rate						2.8 %						2.2 %
Cash surrender value						$	40,663					$	39,678

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Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the Asia segment’s universal and variable universal life products was as follows at:

						September 30,
						2023												2022
						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits
						(In millions)
Net amount at risk						$	91,861					N/A						$	95,274					N/A

__________________

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

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

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
September 30, 2023
Equal to or greater than 0 % but less than 2 %						$	9,986					$	25					$	233					$	729					$	10,973
Equal to or greater than 2 % but less than 4 %						5,742						17,923						5,628						6,633						35,926
Equal to or greater than 4 %						256						—						—						—						256
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						475
Total						$	15,984					$	17,948					$	5,861					$	7,362					$	47,630
September 30, 2022
Equal to or greater than 0 % but less than 2 %						$	9,825					$	81					$	138					$	59					$	10,103
Equal to or greater than 2 % but less than 4 %						20,968						2,834						5,456						4,661						33,919
Equal to or greater than 4 %						273						—						—						—						273
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						419
Total						$	31,066					$	2,915					$	5,594					$	4,720					$	44,714

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Fixed Annuities

Information regarding the Asia segment’s fixed annuities PAB liability in Japan was as follows:

						Nine Months Ended September 30,
						2023						2022
						(Dollars in millions)
Balance, beginning of period						$	32,454					$	30,976
Deposits						6,230						4,997
Policy charges						( 2 )						( 2 )
Surrenders and withdrawals						( 1,665 )						( 3,174 )
Benefit payments						( 1,614 )						( 1,629 )
Interest credited						629						452
Effect of foreign currency translation and other, net						( 552 )						( 1,506 )
Balance, end of period						$	35,480					$	30,114
Weighted-average annual crediting rate						2.5 %						2.0 %
Cash surrender value						$	30,289					$	25,727

Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the Asia segment’s fixed annuities products was as follows at:

						September 30,
						2023												2022
						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits
						(In millions)
Net amount at risk						$	—					N/A						$	—					N/A

__________________

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

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

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
September 30, 2023
Equal to or greater than 0 % but less than 2 %						$	315					$	574					$	6,494					$	26,811					$	34,194
Equal to or greater than 2 % but less than 4 %						—						6						—						—						6
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						1,280
Total						$	315					$	580					$	6,494					$	26,811					$	35,480
September 30, 2022
Equal to or greater than 0 % but less than 2 %						$	475					$	774					$	7,461					$	20,042					$	28,752
Equal to or greater than 2 % but less than 4 %						8						—						—						—						8
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						1,354
Total						$	483					$	774					$	7,461					$	20,042					$	30,114

EMEA

Variable Annuities

Information regarding the EMEA segment’s variable annuities PAB liability in the United Kingdom was as follows:

						Nine Months Ended September 30,
						2023						2022
						(Dollars in millions)
Balance, beginning of period						$	2,802					$	4,215
Deposits						3						4
Policy charges						( 48 )						( 57 )
Surrenders and withdrawals						( 206 )						( 248 )
Benefit payments						( 95 )						( 107 )
Interest credited (1)						69						( 561 )
Effect of foreign currency translation and other, net						46						( 636 )
Balance, end of period						$	2,571					$	2,610
Weighted-average annual crediting rate						3.5 %						( 19.7 ) %
Cash surrender value						$	2,571					$	2,610

__________________

(1) Interest credited on EMEA’s variable annuities products represents gains or losses which are passed through to the policyholder based on the underlying unit-linked investment fund returns, which may be positive or negative depending on market conditions.

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Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the EMEA segment’s variable annuities products was as follows at:

						September 30,
						2023												2022
						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits (2)						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits (2)
						(In millions)
Net amount at risk						$	577					$	725					$	621					$	766

__________________

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

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

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

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
September 30, 2023
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						2,571
Total						$	—					$	—					$	—					$	—					$	2,571
September 30, 2022
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						2,610
Total						$	—					$	—					$	—					$	—					$	2,610

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MetLife Holdings

Annuities

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

						Nine Months Ended September 30,
						2023						2022
						(Dollars in millions)
Balance, beginning of period						$	13,286					$	14,398
Deposits						115						190
Policy charges						( 12 )						( 12 )
Surrenders and withdrawals						( 1,425 )						( 998 )
Benefit payments						( 320 )						( 308 )
Net transfers from (to) separate accounts						48						166
Interest credited						299						304
Other						15						( 39 )
Balance, end of period						$	12,006					$	13,701
Weighted-average annual crediting rate						3.2 %						3.0 %
Cash surrender value						$	11,263					$	12,728

Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the MetLife Holdings segment’s annuities products was as follows at:

						September 30,
						2023												2022
						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits (2)						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits (2)
						(In millions)
Net amount at risk (3)						$	3,970					$	923					$	5,188					$	1,352

__________________

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

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

(3) Includes amounts for certain variable annuities with guarantees, which are also disclosed in “MetLife Holdings – Annuities” in Note 6, due to contracts recorded as PABs, along with related guarantees recorded as MRBs.

---

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

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
September 30, 2023
Equal to or greater than 0 % but less than 2 %						$	235					$	245					$	292					$	227					$	999
Equal to or greater than 2 % but less than 4 %						2,887						5,828						457						130						9,302
Equal to or greater than 4 %						965						274						26						—						1,265
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						440
Total						$	4,087					$	6,347					$	775					$	357					$	12,006
September 30, 2022
Equal to or greater than 0 % but less than 2 %						$	986					$	5					$	9					$	14					$	1,014
Equal to or greater than 2 % but less than 4 %						10,398						253						130						1						10,782
Equal to or greater than 4 %						1,281						40						5						—						1,326
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						579
Total						$	12,665					$	298					$	144					$	15					$	13,701

Life and Other

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

						Nine Months Ended September 30,
						2023						2022
						(Dollars in millions)
Balance, beginning of period						$	12,402					$	12,699
Deposits						617						709
Policy charges						( 529 )						( 541 )
Surrenders and withdrawals						( 892 )						( 566 )
Benefit payments						( 120 )						( 138 )
Net transfers from (to) separate accounts						29						35
Interest credited						336						344
Other						1						2
Balance, end of period						$	11,844					$	12,544
Weighted-average annual crediting rate						3.8 %						3.7 %
Cash surrender value						$	11,360					$	12,015

---

Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the MetLife Holdings segment’s life and other products was as follows at:

						September 30,
						2023												2022
						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits
						(In millions)
Net amount at risk						$	68,972					N/A						$	72,538					N/A

__________________

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

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

Range of GMCR						At GMCR						Greater than 0% but less than 0.50% above GMCR						Equal to or greater than 0.50% but less than 1.50% above GMCR						Equal to or greater than 1.50% above GMCR						Total Account Value
						(In millions)
September 30, 2023
Equal to or greater than 0 % but less than 2 %						$	—					$	—					$	19					$	54					$	73
Equal to or greater than 2 % but less than 4 %						4,595						172						285						554						5,606
Equal to or greater than 4 %						5,109						126						414						15						5,664
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						501
Total						$	9,704					$	298					$	718					$	623					$	11,844
September 30, 2022
Equal to or greater than 0 % but less than 2 %						$	—					$	21					$	43					$	6					$	70
Equal to or greater than 2 % but less than 4 %						5,097						145						296						566						6,104
Equal to or greater than 4 %						5,305						129						421						14						5,869
Products with either a fixed rate or no guaranteed minimum crediting rate						N/A						N/A						N/A						N/A						501
Total						$	10,402					$	295					$	760					$	586					$	12,544

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

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

__________________

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

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

						September 30, 2023																		December 31, 2022
						Asset						Liability						Net						Asset						Liability						Net
						(In millions)
Asia - Retirement Assurance						$	—					$	193					$	193					$	—					$	226					$	226
MetLife Holdings - Annuities						185						2,453						2,268						153						3,378						3,225
Other						149						92						( 57 )						127						159						32
Total						$	334					$	2,738					$	2,404					$	280					$	3,763					$	3,483

Rollforwards

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

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Asia - Retirement Assurance

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

						Nine Months Ended September 30,
						2023						2022
						(In millions)
Balance, beginning of period						$	226					$	277
Balance, beginning of period, before effect of cumulative changes in the instrument-specific credit risk						$	233					$	284
Attributed fees collected						2						2
Benefit payments						( 9 )						—
Effect of changes in interest rates						2						( 17 )
Actual policyholder behavior different from expected behavior						( 1 )						( 1 )
Effect of changes in future expected policyholder behavior and other assumptions						( 1 )						5
Effect of foreign currency translation and other, net						( 30 )						( 58 )
Balance, end of period, before the cumulative effect of changes in the instrument-specific credit risk						196						215
Cumulative effect of changes in the instrument-specific credit risk						( 3 )						( 10 )
Effect of foreign currency translation on the cumulative instrument-specific credit risk						—						2
Balance, end of period						$	193					$	207

Information regarding the Company’s net amount at risk, excluding offsets from hedging, and the weighted-average attained age of the contractholder for the Asia segment’s retirement assurance products was as follows at:

						September 30,
						2023												2022
						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits (2)						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits (2)
						(Dollars in millions)
Net amount at risk						$	—					$	116					$	—					$	108
Weighted-average attained age of contractholders						N/A						58 years						N/A						57 years

__________________

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

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

Significant Methodologies and Assumptions

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

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

Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. See Note 12 for additional information on significant unobservable inputs.

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

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

These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, impact the estimated fair value of the guarantees and affect net income, and changes in nonperformance risk of the Company affect OCI.

MetLife Holdings - Annuities

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

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						Nine Months Ended September 30,
						2023						2022
			(In millions)
Balance, beginning of period						$	3,225					$	5,929
Balance, beginning of period, before effect of cumulative changes in the instrument-specific credit risk						$	3,360					$	6,229
Attributed fees collected						286						293
Benefit payments						( 36 )						( 35 )
Effect of changes in interest rates						( 881 )						( 3,364 )
Effect of changes in capital markets						( 542 )						1,189
Effect of changes in equity index volatility						( 84 )						91
Actual policyholder behavior different from expected behavior						95						( 2 )
Effect of changes in future expected policyholder behavior and other assumptions (1)						9						( 326 )
Effect of foreign currency translation and other, net (2)						118						( 92 )
Effect of changes in risk margin						( 46 )						( 239 )
Balance, end of period, before the cumulative effect of changes in the instrument-specific credit risk						2,279						3,744
Cumulative effect of changes in the instrument-specific credit risk						( 16 )						( 209 )
Effect of foreign currency translation on the cumulative instrument-specific credit risk						5						( 1 )
Balance, end of period						$	2,268					$	3,534

_________________

(1)    For the nine months ended September 30, 2022, the effect of changes in future expected policyholder behavior and other assumptions was primarily driven by changes in policyholder behavior assumptions relating to projected annuitizations for variable annuities.

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

Information regarding the Company’s net amount at risk, excluding offsets from hedging, and the weighted-average attained age of the contractholder for the MetLife Holdings segment’s annuities products was as follows at:

						September 30,
						2023												2022
						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits (2)						In the Event of Death (1)						At Annuitization or Exercise of Other Living Benefits (2)
						(Dollars in millions)
Net amount at risk (3)						$	3,979					$	921					$	5,209					$	1,452
Weighted-average attained age of contractholders						70 years						70 years						69 years						70 years

_________________

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

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

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

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Significant Methodologies and Assumptions

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

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

Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. See Note 12 for additional information on significant unobservable inputs.

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

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

These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, impact the estimated fair value of the guarantees and affect net income, and changes in nonperformance risk of the Company affect OCI.

Other

In addition to the disaggregated MRB product rollforwards above, the Company offers other products with guaranteed minimum benefit features across various segments. These MRBs are measured at estimated fair value, with changes in estimated fair value reported in net income, except for changes in nonperformance risk of the Company which are recorded in OCI. See Note 12 for additional information on significant unobservable inputs used in the fair value measurement of MRBs. Information regarding this liability was as follows:

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Separate Account Liabilities

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

			September 30, 2023						December 31, 2022
			(In millions)
U.S.:
Stable Value and Risk Solutions			$	40,503					$	48,265
Annuities			11,152						11,694
Latin America - Pensions			37,473						39,428
MetLife Holdings - Annuities			27,455						28,499
Other			19,041						18,152
Total			$	135,624					$	146,038

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Rollforwards

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

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

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

						U.S. Stable Value and Risk Solutions						U.S. Annuities						Latin America Pensions						MetLife Holdings Annuities
						(In millions)
Nine Months Ended September 30, 2023
Balance, beginning of period						$	48,265					$	11,694					$	39,428					$	28,499
Premiums and deposits						1,857						154						6,181						190
Policy charges						( 223 )						( 17 )						( 219 )						( 460 )
Surrenders and withdrawals						( 8,696 )						( 636 )						( 4,485 )						( 2,114 )
Benefit payments						( 74 )						—						( 1,301 )						( 350 )
Investment performance						711						( 157 )						( 216 )						1,740
Net transfers from (to) general account						( 57 )						3						—						( 49 )
Effect of foreign currency translation and other, net (1)						( 1,280 )						111						( 1,915 )						( 1 )
Balance, end of period						$	40,503					$	11,152					$	37,473					$	27,455
Nine Months Ended September 30, 2022
Balance, beginning of period						58,473						21,292						37,631						40,173
Premiums and deposits						3,951						896						5,762						202
Policy charges						( 240 )						( 20 )						( 190 )						( 511 )
Surrenders and withdrawals						( 4,748 )						( 6,628 )						( 4,330 )						( 2,242 )
Benefit payments						( 76 )						—						( 1,208 )						( 329 )
Investment performance						( 5,418 )						( 3,100 )						( 571 )						( 9,450 )
Net transfers from (to) general account						85						( 59 )						—						( 166 )
Effect of foreign currency translation and other, net (1)						( 5,256 )						( 392 )						( 4,082 )						3
Balance, end of period						$	46,771					$	11,989					$	33,012					$	27,680
Cash surrender value at September 30, 2023 (2)						$	36,246					N/A						$	37,473					$	27,320
Cash surrender value at September 30, 2022 (2)						$	41,798					N/A						$	33,012					$	27,523

_____________

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

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

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Separate Account Assets

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

						September 30, 2023
						U.S.						Asia						Latin America						EMEA						MetLife Holdings						Total
						(In millions)
Fixed maturity securities:
Bonds:
Foreign government						$	497					$	1,073					$	2,052					$	2,284					$	—					$	5,906
U.S. government and agency						9,754						—						8,142						—						17						17,913
Public utilities						1,119						306						—						—						4						1,429
Municipals						375						23						—						—						13						411
Corporate bonds:
Materials						145						—						—						—						—						145
Communications						885						7						—						—						4						896
Consumer						1,823						43						—						—						7						1,873
Energy						868						97						—						—						2						967
Financial						2,666						523						5,783						398						15						9,385
Industrial and other						739						43						3,365						—						3						4,150
Technology						552						2						—						—						2						556
Foreign						2,000						—						2,933						26						13						4,972
Total corporate bonds						9,678						715						12,081						424						46						22,944
Total bonds						21,423						2,117						22,275						2,708						80						48,603
Mortgage-backed securities						10,137						—						—						—						34						10,171
Asset-backed securities and collateralized loan obligations						2,658						17						—						—						13						2,688
Redeemable preferred stock						9						—						—						—						—						9
Total fixed maturity securities						34,227						2,134						22,275						2,708						127						61,471
Equity securities:
Common stock:
Industrial, miscellaneous and all other						2,429						2,435						2,160						624						—						7,648
Banks, trust and insurance companies						487						271						333						252						—						1,343
Public utilities						62						16						—						77						—						155
Non-redeemable preferred stock						—						—						—						—						—						—
Mutual funds						9,279						2,653						8,955						86						33,061						54,034
Total equity securities						12,257						5,375						11,448						1,039						33,061						63,180
Other invested assets						1,491						336						3,229						54						—						5,110
Total investments						47,975						7,845						36,952						3,801						33,188						129,761
Other assets						4,818						430						521						91						3						5,863
Total						$	52,793					$	8,275					$	37,473					$	3,892					$	33,191					$	135,624

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

			U.S.						Asia						Latin America						EMEA						MetLife Holdings						Corporate & Other						Total
			(In millions)
DAC:
Balance at December 31, 2020			$	409					$	7,432					$	1,344					$	1,551					$	2,679					$	31					$	13,446
Removal of related amounts in AOCI			—						2,309						50						—						1,621						—						3,980
Other adjustments upon adoption of the LDTI standard			—						—						—						14						11						—						25
Balance at January 1, 2021			$	409					$	9,741					$	1,394					$	1,565					$	4,311					$	31					$	17,451
VOBA:
Balance at December 31, 2020			$	25					$	1,901					$	748					$	236					$	33					$	—					$	2,943
Removal of related amounts in AOCI			—						14						8						—						5						—						27
Other adjustments upon adoption of the LDTI standard			—						—						—						( 4 )						—						—						( 4 )
Balance at January 1, 2021			$	25					$	1,915					$	756					$	232					$	38					$	—					$	2,966
UREV:
Balance at December 31, 2020			$	42					$	587					$	740					$	556					$	188					$	—					$	2,113
Removal of related amounts in AOCI			—						1,029						95						( 81 )						—						—						1,043
Other adjustments upon adoption of the LDTI standard			—						—						—						7						—						—						7
Balance at January 1, 2021			$	42					$	1,616					$	835					$	482					$	188					$	—					$	3,163
Negative VOBA:
Balance at December 31, 2020																																							$	738
Reclassification of carrying amounts of contracts and contract features that are market risk benefits																																							( 72 )
Balance at January 1, 2021																																							$	666

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DAC and VOBA

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

			U.S.						Asia (1)						Latin America (2)						EMEA (2)						MetLife Holdings (3)						Corporate & Other						Total
			(In millions)
DAC:
Balance at January 1, 2023			$	532					$	10,270					$	1,542					$	1,480					$	3,791					$	29					$	17,644
Capitalizations			152						1,202						470						341						17						7						2,189
Amortization			( 53 )						( 518 )						( 306 )						( 245 )						( 194 )						( 8 )						( 1,324 )
Effect of foreign currency translation and other, net			—						( 600 )						125						( 27 )						—						—						( 502 )
Balance at September 30, 2023			$	631					$	10,354					$	1,831					$	1,549					$	3,614					$	28					$	18,007
Balance at January 1, 2022			$	464					$	10,058					$	1,361					$	1,472					$	4,029					$	31					$	17,415
Capitalizations			93						1,120						357						316						22						7						1,915
Amortization			( 47 )						( 476 )						( 267 )						( 234 )						( 207 )						( 7 )						( 1,238 )
Effect of foreign currency translation and other, net			—						( 1,217 )						( 20 )						( 180 )						—						( 4 )						( 1,421 )
Balance at September 30, 2022			$	510					$	9,485					$	1,431					$	1,374					$	3,844					$	27					$	16,671
VOBA:
Balance at January 1, 2023			$	19					$	1,290					$	545					$	127					$	28					$	—					$	2,009
Acquisitions			—						—						—						—						—						—						—
Amortization			( 2 )						( 69 )						( 38 )						( 12 )						( 3 )						—						( 124 )
Effect of foreign currency translation and other, net			—						( 144 )						( 10 )						( 1 )						—						—						( 155 )
Balance at September 30, 2023			$	17					$	1,077					$	497					$	114					$	25					$	—					$	1,730
Balance at January 1, 2022			$	22					$	1,593					$	591					$	154					$	31					$	—					$	2,391
Acquisitions			—						—						—						—						—						—						—
Amortization			( 2 )						( 78 )						( 38 )						( 16 )						( 2 )						—						( 136 )
Effect of foreign currency translation and other, net			—						( 316 )						( 51 )						( 13 )						—						—						( 380 )
Balance at September 30, 2022			$	20					$	1,199					$	502					$	125					$	29					$	—					$	1,875
Total DAC and VOBA:
Balance at September 30, 2023																																							$	19,737
Balance at September 30, 2022																																							$	18,546
Balance at December 31, 2022																																							$	19,653

__________________

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

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

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

Significant Methodologies and Assumptions

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

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Unearned Revenue

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

						Nine Months Ended September 30, 2023
						U.S.						Asia						Latin America						EMEA						MetLife Holdings						Total
						(In millions)
Balance, beginning of period						$	36					$	2,382					$	848					$	559					$	281					$	4,106
Deferrals						2						477						108						71						41						699
Amortization						( 5 )						( 129 )						( 87 )						( 47 )						( 16 )						( 284 )
Effect of foreign currency translation and other, net						—						( 49 )						85						4						—						40
Balance, end of period						$	33					$	2,681					$	954					$	587					$	306					$	4,561
						Nine Months Ended September 30, 2022
						U.S.						Asia						Latin America						EMEA						MetLife Holdings						Total
						(In millions)
Balance, beginning of period						$	38					$	2,033					$	795					$	521					$	238					$	3,625
Deferrals						4						417						100						90						45						656
Amortization						( 5 )						( 96 )						( 90 )						( 46 )						( 12 )						( 249 )
Effect of foreign currency translation and other, net						—						( 110 )						1						( 32 )						—						( 141 )
Balance, end of period						$	37					$	2,244					$	806					$	533					$	271					$	3,891

Significant Methodologies and Assumptions

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

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

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

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

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

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

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

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

						September 30, 2023						December 31, 2022
						(In millions)
Closed Block Liabilities
Future policy benefits						$	36,392					$	37,222
Other policy-related balances						253						273
Policyholder dividends payable						181						181
Current income tax payable						9						—
Other liabilities						684						455
Total closed block liabilities						37,519						38,131
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value						18,740						19,648
Equity securities, at estimated fair value						13						13
Mortgage loans						6,244						6,564
Policy loans						3,983						4,084
Real estate and real estate joint ventures						669						635
Other invested assets						600						692
Total investments						30,249						31,636
Cash and cash equivalents						659						437
Accrued investment income						384						375
Premiums, reinsurance and other receivables						65						52
Current income tax recoverable						—						88
Deferred income tax asset						575						423
Total assets designated to the closed block						31,932						33,011
Excess of closed block liabilities over assets designated to the closed block						5,587						5,120
AOCI:
Unrealized investment gains (losses), net of income tax						( 1,864 )						( 1,357 )
Unrealized gains (losses) on derivatives, net of income tax						209						262
Total amounts included in AOCI						( 1,655 )						( 1,095 )
Maximum future earnings to be recognized from closed block assets and liabilities						$	3,932					$	4,025

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

						Nine Months Ended September 30, 2023						Year Ended December 31, 2022
						(In millions)
Balance, beginning of period						$	—					$	1,682
Change in unrealized investment and derivative gains (losses)						—						( 1,682 )
Balance, end of period						$	—					$	—

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

						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
			(In millions)
Revenues
Premiums						$	219					$	267					$	680					$	816
Net investment income						345						326						1,024						1,039
Net investment gains (losses)						4						( 4 )						13						( 52 )
Net derivative gains (losses)						( 2 )						28						1						39
Total revenues						566						617						1,718						1,842
Expenses
Policyholder benefits and claims						403						459						1,261						1,404
Policyholder dividends						89						96						275						358
Other expenses						21						22						65						68
Total expenses						513						577						1,601						1,830
Revenues, net of expenses before provision for income tax expense (benefit)						53						40						117						12
Provision for income tax expense (benefit)						11						9						24						3
Revenues, net of expenses and provision for income tax expense (benefit)						$	42					$	31					$	93					$	9

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

Fixed Maturity Securities Available-for-Sale

Fixed Maturity Securities Available-for-Sale by Sector

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

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						September 30, 2023																														December 31, 2022
						Amortized Cost												Gross Unrealized												Estimated Fair Value						Amortized Cost												Gross Unrealized												Estimated Fair Value
Sector												Allowance for Credit Loss						Gains						Losses																		Allowance for Credit Loss						Gains						Losses
						(In millions)
U.S. corporate						$	88,733					$	( 67 )					$	877					$	10,991					$	78,552					$	88,466					$	( 29 )					$	1,133					$	9,540					$	80,030
Foreign corporate						58,674						( 2 )						1,026						8,321						51,377						59,696						( 5 )						1,213						8,332						52,572
Foreign government						46,754						( 89 )						1,251						5,231						42,685						50,047						( 130 )						1,876						5,046						46,747
U.S. government and agency						37,678						—						146						6,095						31,729						35,658						—						431						3,860						32,229
RMBS						31,675						( 1 )						156						4,045						27,785						29,496						—						187						3,518						26,165
ABS & CLO						18,286						( 7 )						32						899						17,412						17,991						—						23						1,192						16,822
Municipals						13,057						—						164						1,874						11,347						13,548						—						317						1,713						12,152
CMBS						11,324						( 16 )						33						1,246						10,095						11,123						( 19 )						59						1,100						10,063
Total fixed maturity securities AFS						$	306,181					$	( 182 )					$	3,685					$	38,702					$	270,982					$	306,025					$	( 183 )					$	5,239					$	34,301					$	276,780

The Company held non-income producing fixed maturity securities AFS with an estimated fair value of $ 99 million and $ 82 million at September 30, 2023 and December 31, 2022, respectively, with unrealized gains (losses) of ($ 53 ) million and ($ 3 ) million at September 30, 2023 and December 31, 2022, respectively.

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 September 30, 2023:

						Due in One Year or Less						Due After One Year Through Five Years						Due After Five Years Through Ten Years						Due After Ten Years						Structured Products						Total Fixed Maturity Securities AFS
						(In millions)
Amortized cost, net of ACL						$	9,482					$	50,121					$	53,087					$	132,048					$	61,261					$	305,999
Estimated fair value						$	9,521					$	48,486					$	49,128					$	108,555					$	55,292					$	270,982

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.

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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.

						September 30, 2023																								December 31, 2022
						Less than 12 Months												Equal to or Greater than 12 Months												Less than 12 Months												Equal to or Greater than 12 Months
Sector & Credit Quality						Estimated Fair Value						Gross Unrealized Losses						Estimated Fair Value						Gross Unrealized Losses						Estimated Fair Value						Gross Unrealized Losses						Estimated Fair Value						Gross Unrealized Losses
						(Dollars in millions)
U.S. corporate						$	16,557					$	1,087					$	43,815					$	9,865					$	55,210					$	7,573					$	6,484					$	1,965
Foreign corporate						8,019						460						30,876						7,861						31,932						5,999						8,956						2,332
Foreign government						5,936						353						19,017						4,869						16,568						2,170						8,308						2,874
U.S. government and agency						15,586						1,690						12,076						4,405						20,436						2,784						4,177						1,076
RMBS						7,147						285						16,586						3,759						16,223						1,890						6,650						1,628
ABS & CLO						2,628						73						11,852						826						10,924						712						4,326						480
Municipals						2,537						161						5,123						1,713						7,277						1,514						482						199
CMBS						2,005						123						6,730						1,118						6,890						764						2,037						335
Total fixed maturity securities AFS						$	60,415					$	4,232					$	146,075					$	34,416					$	165,460					$	23,406					$	41,420					$	10,889
Investment grade						$	57,520					$	4,115					$	139,793					$	33,441					$	157,654					$	22,713					$	38,785					$	10,298
Below investment grade						2,895						117						6,282						975						7,806						693						2,635						591
Total fixed maturity securities AFS						$	60,415					$	4,232					$	146,075					$	34,416					$	165,460					$	23,406					$	41,420					$	10,889
Total number of securities in an unrealized loss position						6,726												13,507												15,204												4,303

Evaluation of Fixed Maturity Securities AFS for Credit Loss

Evaluation and Measurement Methodologies

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

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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.

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

Evaluation of Fixed Maturity Securities AFS in an Unrealized Loss Position

Gross unrealized losses on securities withou t an ACL increased $ 4.4 billion for the nine months ended September 30, 2023 to $ 38.6 billion primarily due to increases in interest rates and the impact of weakening foreign currencies on certain non-functional currency denominated fixed maturity securities, partially offset by impairments in connection with a pending reinsurance transaction, and narrowing c redit 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 $ 34.4 billion at September 30, 2023, or 89 % of the total gross unrealized losses on securities without an ACL.

Investment Grade Fixed Maturity Securities AFS

Of the $ 34.4 billion of gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater, $ 33.4 billion , or 97 % , were related to 12,591 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.

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Below Investment Grade Fixed Maturity Securities AFS

Of the $ 34.4 billion of gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater, $ 975 million , or 3 % , were related to 916 below investment grade securities. Unrealized losses on below investment grade securities are principally related to U.S. corporate and foreign corporate securities ( primarily consumer, transportation and communications ) and foreign government securities. These unrealized losses are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainty, as well as with respect to fixed-rate securities, rising interest rates since purchase. Management evaluates U.S. corporate and foreign corporate securities based on several factors such as expected cash flows, financial condition and near-term and long-term prospects of the issuers. Management evaluates foreign government securities based on factors impacting the issuers such as expected cash flows, financial condition of the issuers and any country specific economic conditions or public sector programs to restructure foreign government securities.

Current Period Evaluation

At September 30, 2023, 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 September 30, 2023.

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

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

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

			U.S. Corporate						Foreign Corporate						Foreign Government												RMBS						ABS & CLO						CMBS						Total
Three Months Ended September 30, 2023			(In millions)
Balance, at beginning of period			$	69					$	2					$	115											$	—					$	—					$	11					$	197
ACL not previously recorded			—						—						—												1						7						2						10
Changes for securities with previously recorded ACL			—						—						( 7 )												—						—						3						( 4 )
Securities sold or exchanged			( 2 )						—						( 19 )												—						—						—						( 21 )
Effect of foreign currency translation			—						—						—												—						—						—						—
Write-offs			—						—						—												—						—						—						—
Balance, at end of period			$	67					$	2					$	89											$	1					$	7					$	16					$	182
Three Months Ended September 30, 2022
Balance, at beginning of period			$	28					$	53					$	166											$	—					$	—					$	14					$	261
ACL not previously recorded			—						—						—												—						—						5						5
Changes for securities with previously recorded ACL			2						( 1 )						( 19 )												—						—						—						( 18 )
Securities sold or exchanged			—						( 39 )						—												—						—						—						( 39 )
Effect of foreign currency translation			—						—						( 11 )												—						—						—						( 11 )
Write-offs			—						—						—												—						—						—						—
Balance, at end of period			$	30					$	13					$	136											$	—					$	—					$	19					$	198

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			U.S. Corporate						Foreign Corporate						Foreign Government																														RMBS						ABS & CLO						CMBS						Total
			(In millions)
Nine Months Ended September 30, 2023
Balance, at beginning of period			$	29					$	5					$	130																													$	—					$	—					$	19					$	183
ACL not previously recorded			36						—						—																														1						7						2						46
Changes for securities with previously recorded ACL			6						—						( 22 )																														—						—						6						( 10 )
Securities sold or exchanged			( 4 )						( 3 )						( 19 )																														—						—						( 11 )						( 37 )
Effect of foreign currency translation			—						—						—																														—						—						—						—
Write-offs			—						—						—																														—						—						—						—
Balance, at end of period			$	67					$	2					$	89																													$	1					$	7					$	16					$	182
Nine Months Ended September 30, 2022
Balance, at beginning of period			$	30					$	28					$	19																													$	—					$	—					$	14					$	91
ACL not previously recorded			13						67						207																														—						—						5						292
Changes for securities with previously recorded ACL			17						1						( 42 )																														—						—						—						( 24 )
Securities sold or exchanged			( 8 )						( 83 )						( 37 )																														—						—						—						( 128 )
Effect of foreign currency translation			—						—						( 11 )																														—						—						—						( 11 )
Write-offs			( 22 )						—						—																														—						—						—						( 22 )
Balance, at end of period			$	30					$	13					$	136																													$	—					$	—					$	19					$	198

Equity Securities

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

						September 30, 2023																		December 31, 2022
						Cost						Net Unrealized Gains (Losses) (1)						Estimated Fair Value						Cost						Net Unrealized Gains (Losses) (1)						Estimated Fair Value
Security Type
												(In millions)
Common stock						$	414					$	225					$	639					$	1,347					$	195					$	1,542
Non-redeemable preferred stock						105						( 2 )						103						148						( 6 )						142
Total						$	519					$	223					$	742					$	1,495					$	189					$	1,684

________________

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

Contractholder-Directed Equity Securities and FVO Securities

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

						September 30, 2023																		December 31, 2022
						Cost or Amortized Cost						Net Unrealized Gains (Losses) (1)						Estimated Fair Value						Cost or Amortized Cost						Net Unrealized Gains (Losses) (1)						Estimated Fair Value
Asset Type
												(In millions)
Unit-linked investments						$	7,581					$	625					$	8,206					$	7,945					$	288					$	8,233
FVO Securities						1,086						388						1,474						1,161						274						1,435
Total						$	8,667					$	1,013					$	9,680					$	9,106					$	562					$	9,668

________________

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

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Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

						September 30, 2023												December 31, 2022
Portfolio Segment						Carrying Value (1)						% of Total						Carrying Value						% of Total
						(Dollars in millions)
Commercial (2)						$	60,051					65.1		%				$	52,502					62.7		%
Agricultural						19,898						21.6						19,306						23.0
Residential						12,986						14.1						12,482						14.9
Total amortized cost						92,935						100.8						84,290						100.6
Allowance for credit loss						( 705 )						( 0.8 )						( 527 )						( 0.6 )
Total mortgage loans						$	92,230					100.0		%				$	83,763					100.0		%

__________________

(1) Includes certain mortgage loans originated for third parties of $ 8.2 billion at amortized cost ($ 8.0 billion commercial and $ 240 million agricultural) and the related ACL of $ 66 million, with the corresponding mortgage loan secured financing liability of $ 8.2 billion included in Other liabilities on the consolidated balance sheet. The investment income on these mortgage loans originated for third parties and the interest expense on the mortgage loan secured financing liability were each $ 95 million and $ 310 million for the three and nine months ended September 30, 2023, and were recorded in investment income and investment expenses, respectively, both within net investment income. See Note 1.

(2) Includes commercial mortgage loans to be disposed of in connection with a pending reinsurance transaction, which are carried at the lower of amortized cost or estimated fair value, of $ 199 million, net of the estimated fair value adjustment of $ 56 million as of September 30, 2023. See Note 1.

The amount of net (discounts) premiums and deferred (fees) expenses, included within total amortized cost, primarily attributable to residential mortgage loans was ($ 737 ) million and ($ 744 ) million at September 30, 2023 and December 31, 2022, respectively. The accrued interest income excluded from total amortized cost for commercial, agricultural and residential mortgage loans at September 30, 2023 was $ 267 million, $ 178 million and $ 92 million, respectively. The accrued interest income excluded from total amortized cost for commercial, agricultural and residential mortgage loans at December 31, 2022 was $ 219 million, $ 176 million and $ 81 million, respectively.

Purchases of mortgage loans, consisting primarily of residential mortgage loans, were $ 221 million and $ 1.2 billion for the three months and nine months ended September 30, 2023, respectively, and $ 462 million and $ 2.2 billion for the three months and nine months ended September 30, 2022, 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:

			Nine Months Ended September 30,
			2023																								2022
			Commercial						Agricultural						Residential						Total						Commercial						Agricultural						Residential						Total
			(In millions)
Balance, beginning of period			$	218					$	119					$	190					$	527					$	340					$	88					$	206					$	634
Provision (release)			147						52						2						201						( 11 )						52						( 64 )						( 23 )
Charge-offs, net of recoveries			( 10 )						( 13 )						—						( 23 )						( 120 )						( 22 )						( 2 )						( 144 )
Balance, end of period			$	355					$	158					$	192					$	705					$	209					$	118					$	140					$	467

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Allowance for Credit Loss Methodology

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

Commercial and Agricultural Mortgage Loan Portfolio Segments

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

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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 reverts to industry historical loss experience using a straight-line basis over one year.

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

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Modifications to Borrowers Experiencing Financial Difficulty

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

Commercial mortgage loans:

For the three months ended September 30, 2023, the Company granted a short-term extension on a loan with an amortized cost of $ 145 million. In addition, the Company further extended the term of a loan modified in the first and second quarters of 2023 by an additional two months. These modifications added a weighted-average of less than one year to the life of the modified loans. These modified loans represent less than 1 % of the portfolio segment.

For the nine months ended September 30, 2023, the Company granted term extensions on loans with an amortized cost of $ 367 million. These modifications added a weighted-average of less than one year to the life of the modified loans. These modified loans represent less than 1 % of the portfolio segment.

Residential mortgage loans:

For the three months ended September 30, 2023, the Company granted term extensions on loans with an amortized cost of $ 1 million, other-than-insignificant payment delays on loans with an amortized cost of $ 8 million, and term extensions and other-than-insignificant payment delays on loans with an amortized cost of $ 6 million. These modified loans represent less than 1 % of the portfolio segment. These loan modifications added a weighted-average of eight years to the life of the modified loans.

For the nine months ended September 30, 2023, the Company granted term extensions on loans with an amortized cost of $ 6 million, other-than-insignificant payment delays on loans with an amortized cost of $ 13 million, term extensions and other-than-insignificant payment delays on loans with an amortized cost of $ 15 million and term extensions, other-than-insignificant payment delays and interest rate reductions on loans with an amortized cost of $ 4 million. These modified loans represent less than 1 % of the portfolio segment. These loan modifications added a weighted-average of nine years to the life of the modified loans, capitalized or deferred amounts due and reduced the weighted average interest rate of the modified loans from 5.8 % to 4.2 %.

For both the three months and nine months ended September 30, 2023, the Company did not have a significant amount of mortgage loans that were modified to borrowers experiencing financial difficulty that were not considered current.

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 September 30, 2023:

Credit Quality Indicator						2023						2022						2021						2020						2019						Prior						Revolving Loans						Total						% of Total
						(Dollars in millions)
LTV ratios:
Less than 65%						$	2,058					$	5,013					$	4,334					$	1,951					$	4,210					$	13,598					$	2,705					$	33,869					56.4		%
65% to 75%						210						3,154						1,986						1,696						2,122						6,379						—						15,547						25.9
76% to 80%						4						414						284						385						1,271						1,763						—						4,121						6.9
Greater than 80%						10						157						795						691						1,046						3,815						—						6,514						10.8
Total						$	2,282					$	8,738					$	7,399					$	4,723					$	8,649					$	25,555					$	2,705					$	60,051					100.0		%
DSCR:
> 1.20x						$	1,570					$	7,068					$	6,841					$	4,348					$	7,280					$	22,272					$	2,408					$	51,787					86.2		%
1.00x - 1.20x						522						637						514						35						640						1,867						297						4,512						7.5
<1.00x						190						1,033						44						340						729						1,416						—						3,752						6.3
Total						$	2,282					$	8,738					$	7,399					$	4,723					$	8,649					$	25,555					$	2,705					$	60,051					100.0		%

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The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at September 30, 2023:

Credit Quality Indicator						2023						2022						2021						2020						2019						Prior						Revolving Loans						Total						% of Total
						(Dollars in millions)
LTV ratios:
Less than 65%						$	863					$	2,805					$	2,673					$	2,803					$	1,756					$	6,092					$	1,405					$	18,397					92.4		%
65% to 75%						29						97						302						164						28						537						137						1,294						6.5
76% to 80%						—						—						—						—						—						11						—						11						0.1
Greater than 80%						6						—						—						—						132						52						6						196						1.0
Total						$	898					$	2,902					$	2,975					$	2,967					$	1,916					$	6,692					$	1,548					$	19,898					100.0		%

The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at September 30, 2023:

Credit Quality Indicator						2023						2022						2021						2020						2019						Prior						Revolving Loans						Total						% of Total
						(Dollars in millions)
Performance indicators:
Performing						$	490					$	2,579					$	1,462					$	341					$	940					$	6,740					$	—					$	12,552					96.7		%
Nonperforming (1)						1						37						23						13						45						315						—						434						3.3
Total						$	491					$	2,616					$	1,485					$	354					$	985					$	7,055					$	—					$	12,986					100.0		%

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(1) Includes residential mortgage loans in process of foreclosure of $ 152 million and $ 146 million at September 30, 2023 and December 31, 2022, respectively.

LTV ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. The amortized cost of commercial and agricultural mortgage loans with an LTV ratio in excess of 100% was $ 1.4 billion, or 2 % of total commercial and agricultural mortgage loans, at September 30, 2023.

Past Due and Nonaccrual Mortgage Loans

The Company has a high quality, well performing mortgage loan portfolio, with 99 % of all mortgage loans classified as performing at both September 30, 2023 and December 31, 2022. The Company defines delinquency consistent with industry practice, when mortgage loans are past due more than two or more months, as applicable, by portfolio segment. The past due and nonaccrual mortgage loans at amortized cost, prior to ACL by portfolio segment, were as follows:

						Past Due												Past Due and Still Accruing Interest												Nonaccrual
Portfolio Segment						September 30, 2023						December 31, 2022						September 30, 2023						December 31, 2022						September 30, 2023						December 31, 2022
						(In millions)
Commercial						$	87					$	6					$	17					$	6					$	365					$	169
Agricultural						91						124						15						21						235						131
Residential						434						473						17						12						418						462
Total						$	612					$	603					$	49					$	39					$	1,018					$	762

The amortized cost for nonaccrual commercial, agricultural and residential mortgage loans at beginning of year 2022 was $ 155 million, $ 225 million and $ 442 million, respectively. The amortized cost for nonaccrual commercial mortgage loans without an ACL was $ 150 million at September 30, 2023. There were no nonaccrual commercial mortgage loans without an ACL at December 31, 2022. The amortized cost for nonaccrual agricultural mortgage loans without an ACL was $ 61 million and $ 7 million at September 30, 2023 and December 31, 2022, respectively. There were no nonaccrual residential mortgage loans without an ACL at September 30, 2023 and December 31, 2022.

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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:

						September 30, 2023						December 31, 2022						Three Months Ended September 30,												Nine Months Ended September 30,
																		2023						2022						2023						2022
Income Type						Carrying Value												Income
						(In millions)
Wholly-owned real estate:
Leased real estate						$	4,310					$	4,523					$	89					$	95					$	271					$	299
Other real estate						498						487						71						89						206						189
Real estate joint ventures						8,325						8,127						( 64 )						100						( 218 )						503
Total real estate and real estate joint ventures						$	13,133					$	13,137					$	96					$	284					$	259					$	991

The carrying value of wholly-owned real estate acquired through foreclosure was $ 188 million and $ 182 million at September 30, 2023 and December 31, 2022, respectively. Depreciation expense on real estate investments was $ 26 million and $ 84 million for the three months and nine months ended September 30, 2023, respectively, and $ 29 million and $ 88 million for the three months and nine months ended September 30, 2022, respectively. Real estate investments were net of accumulated depreciation of $ 917 million and $ 863 million at September 30, 2023 and December 31, 2022, respectively.

Leases

Leased Real Estate Investments - Operating Leases

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

See Note 8 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report for a summary of leased real estate investments and income earned, by property type.

Leveraged and Direct Financing Leases

The Company has diversified leveraged and direct financing lease portfolios. Its leveraged leases principally include rail cars, commercial real estate and renewable energy generation facilities, and its direct financing leases principally include commercial real estate. 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 and, in certain leases, linking the amount of future rental receipts to changes in inflation rates. Generally, estimated residual values are not guaranteed by the lessee or a third-party.

Lease receivables are generally due in periodic installments. The payment periods for leveraged leases generally range from one to nine years, but in certain circumstances can be over nine years, while the payment periods for direct financing leases generally range from one to 25 years but in certain circumstances can be over 25 years.

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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 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. Direct financing leases principally relate to leases of commercial real estate; accordingly, expected lifetime credit loss is estimated on such lease receivables consistent with the methodology for commercial mortgage loans (see “— Mortgage Loans — Allowance for Credit Loss Methodology”). The Company also assesses the non-guaranteed residual values for recoverability by comparison to the current estimated fair value of the leased asset and considers other relevant market information such as independent third-party forecasts, consulting, asset brokerage and investment banking reports and data, comparable market transactions, and factors such as the competitive dynamics impacting specific industries, technological change and obsolescence, government and regulatory rules, tax policy, potential environmental liabilities and litigation.

The investment in leveraged and direct financing leases, net of ACL, was $ 732 million and $ 1.3 billion, respectively, at September 30, 2023 and $ 731 million and $ 1.2 billion, respectively, at December 31, 2022. The ACL for leveraged and direct financing leases was $ 21 million and $ 26 million at September 30, 2023 and December 31, 2022, respectively.

Cash Equivalents

Cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, wa s $ 7.1 billion and $ 10.0 billion , principally at estimated fair value, at September 30, 2023 and December 31, 2022, respectively.

Concentrations of Credit Risk

Investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at estimated fair value, were in fixed income securities of the following foreign governments and their agencies:

						September 30,						December 31,
						2023						2022
						(In millions)
Japan						$	21,185					$	24,295
South Korea						$	5,460					$	5,887
Mexico						$	3,511					$	3,463

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:

									September 30, 2023																								December 31, 2022
									Securities (1)																								Securities (1)
Agreement Type									Estimated Fair Value						Cash Collateral Received from Counterparties (2)						Reinvestment Portfolio at Estimated Fair Value												Estimated Fair Value						Cash Collateral Received from Counterparties (2)						Reinvestment Portfolio at Estimated Fair Value
						(In millions)
Securities lending									$	10,377					$	10,617					$	10,241											$	11,756					$	12,092					$	11,833
Repurchase agreements									$	3,030					$	2,975					$	2,898											$	3,176					$	3,125					$	3,057

__________________

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(1) These securities were included within fixed maturity securities AFS, short-term investments, and cash equivalents at September 30, 2023 and within fixed maturity securities AFS and short term investments at December 31, 2022.

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

Contractual Maturities

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

						September 30, 2023																																				December 31, 2022
						Remaining Maturities																																				Remaining Maturities
Security Type						Open (1)						1 Month or Less						Over 1 Month to 6 Months						Over 6 Months to 1 Year						Total												Open (1)						1 Month or Less						Over 1 Month to 6 Months						Over 6 Months to 1 Year						Total
						(In millions)
Cash collateral liability by security type:
Securities lending:
U.S. government and agency						$	1,934					$	4,288					$	3,089					$	—					$	9,311											$	1,945					$	5,448					$	3,101					$	—					$	10,494
Foreign government						—						194						840						—						1,034												—						422						922						—						1,344
Agency RMBS						—						173						99						—						272												—						63						191						—						254
Total						$	1,934					$	4,655					$	4,028					$	—					$	10,617											$	1,945					$	5,933					$	4,214					$	—					$	12,092
Repurchase agreements:
U.S. government and agency						$	—					$	2,975					$	—					$	—					$	2,975											$	—					$	3,125					$	—					$	—					$	3,125

__________________

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

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

The securities lending and repurchase agreements reinvestment portfolios consist principally of high quality, liquid, publicly-traded fixed maturity securities AFS, short-term investments, cash equivalents or cash. If the securities, 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.

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

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

						September 30, 2023						December 31, 2022
						(In millions)
Invested assets on deposit (regulatory deposits)						$	1,488					$	1,514
Invested assets held in trust (external reinsurance agreements) (1)						844						881
Invested assets pledged as collateral (2)						27,119						25,442
Total invested assets on deposit, held in trust and pledged as collateral						$	29,451					$	27,837

__________________

(1)    Represents assets held in trust related to third-party reinsurance agreements. Excludes assets held in trust related to reinsurance agreements between wholly-owned subsidiaries of $ 2.0 billion and $ 1.9 billion at September 30, 2023 and December 31, 2022, respectively.

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(2)     The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements, secured debt and short-term debt related to repurchase agreements and a collateral financing arrangement (see Notes 4, 13 and 14 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report) and derivative transactions (see Note 11).

See “— Securities Lending Transactions and Repurchase Agreements” for information regarding securities supporting securities lending transactions and repurchase agreements, Note 9 for information regarding investments designated to the closed block and Note 1 for investments to be disposed of in connection with a pending reinsurance transaction. In addition, the Company’s investment in Federal Home Loan Bank of New York common stock, included within other invested assets, which is considered restricted until redeemed by the issuer, was $ 737 million and $ 729 million, at redemption value, at September 30, 2023 and December 31, 2022, respectively.

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.

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:

						September 30, 2023												December 31, 2022
Asset Type						Total Assets						Total Liabilities						Total Assets						Total Liabilities
						(In millions)
Investment funds (primarily other invested assets)						$	276					$	1					$	266					$	1
Renewable energy partnership (primarily other invested assets)						71						—						76						—
Total						$	347					$	1					$	342					$	1

Unconsolidated VIEs

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

						September 30, 2023												December 31, 2022
Asset Type						Carrying Amount						Maximum Exposure to Loss (1)						Carrying Amount						Maximum Exposure to Loss (1)
						(In millions)
Fixed maturity securities AFS (2)						$	52,796					$	52,796					$	51,422					$	51,422
Other limited partnership interests						14,078						19,884						13,244						18,906
Other invested assets						1,209						1,337						1,310						1,387
Other investments (Real estate joint ventures and FVO Securities)						977						1,028						945						948
Total						$	69,060					$	75,045					$	66,921					$	72,663

__________________

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

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

As described in Note 19, 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 either the nine months ended September 30, 2023 or 2022.

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Net Investment Income

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

						Three Months Ended September 30,												Nine Months Ended September 30,
Asset Type						2023						2022						2023						2022
						(In millions)
Fixed maturity securities AFS						$	3,314					$	2,903					$	9,681					$	8,449
Equity securities						5						14						27						26
FVO Securities						( 17 )						( 43 )						81						( 197 )
Mortgage loans						1,189						899						3,536						2,556
Policy loans						120						115						358						345
Real estate and REJV						96						284						259						991
OLPI						206						( 194 )						456						900
Cash, cash equivalents and short-term investments						268						103						733						183
Operating joint ventures						4						12						36						61
Other						180						156						458						503
Subtotal investment income						5,365						4,249						15,625						13,817
Less: Investment expenses						544						343						1,686						858
Subtotal, net						4,821						3,906						13,939						12,959
Unit-linked investments						4						( 321 )						603						( 1,507 )
Net investment income						$	4,825					$	3,585					$	14,542					$	11,452
Net Investment Income (“NII”) Information
Net realized and unrealized gains (losses) recognized in NII:
Net realized gains (losses) from sales and disposals (primarily FVO Securities and Unit-linked investments)						$	47					$	30					$	126					$	139
Net unrealized gains (losses) from changes in estimated fair value (primarily FVO Securities and Unit-linked investments)						( 80 )						( 403 )						572						( 1,812 )
Net realized and unrealized gains (losses) recognized in NII						$	( 33 )					$	( 373 )					$	698					$	( 1,673 )
Changes in estimated fair value subsequent to purchase of FVO Securities and Unit-linked investments still held at the end of the respective periods and recognized in NII						$	( 63 )					$	( 304 )					$	506					$	( 1,482 )
Equity method investments NII (primarily REJV, OLPI, tax credit and renewable energy partnerships and operating joint ventures)						$	95					$	( 135 )					$	174					$	1,339

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:

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						Three Months Ended September 30,												Nine Months Ended September 30,
Asset Type						2023						2022						2023						2022
						(In millions)
Fixed maturity securities AFS (1)						$	( 698 )					$	( 286 )					$	( 2,274 )					$	( 1,555 )
Equity securities						( 14 )						( 23 )						66						( 115 )
Mortgage loans (1)						11						47						( 194 )						139
Real estate and REJV (excluding changes in estimated fair value)						1						—						32						163
OLPI (excluding changes in estimated fair value)						—						( 1 )						12						15
Other gains (losses) (2)						( 161 )						54						( 141 )						230
Subtotal						( 861 )						( 209 )						( 2,499 )						( 1,123 )
Change in estimated fair value of OLPI and REJV						( 3 )						( 18 )						( 6 )						( 12 )
Non-investment portfolio gains (losses)						( 63 )						( 184 )						( 145 )						( 475 )
Subtotal						( 66 )						( 202 )						( 151 )						( 487 )
Net investment gains (losses)						$	( 927 )					$	( 411 )					$	( 2,650 )					$	( 1,610 )
Transaction Type
Realized gains (losses) on investments sold or disposed						$	( 281 )					$	( 252 )					$	( 847 )					$	( 908 )
Impairment (losses) (1), (2)						( 591 )						( 3 )						( 1,496 )						( 38 )
Recognized gains (losses):
Change in allowance for credit loss recognized in earnings						25						72						( 199 )						( 87 )
Unrealized net gains (losses) recognized in earnings						( 17 )						( 44 )						37						( 102 )
Total recognized gains (losses)						8						28						( 162 )						( 189 )
Non-investment portfolio gains (losses)						( 63 )						( 184 )						( 145 )						( 475 )
Net investment gains (losses)						$	( 927 )					$	( 411 )					$	( 2,650 )					$	( 1,610 )
Net Investment Gains (Losses) (“NIGL”) Information
Changes in estimated fair value subsequent to purchase of equity securities still held at the end of the respective periods and recognized in NIGL						$	( 10 )					$	( 25 )					$	9					$	( 87 )
Other gains (losses) include:
Gains (losses) on disposed investments which were previously in a qualified cash flow hedge relationship						$	2					$	( 15 )					$	( 20 )					$	45
Foreign currency gains (losses)						$	( 21 )					$	( 62 )					$	( 7 )					$	( 73 )
Net Realized Investment Gains (Losses) From Sales and Disposals of Investments
Recognized in NIGL						$	( 281 )					$	( 252 )					$	( 847 )					$	( 908 )
Recognized in NII						47						30						126						139
Net realized investment gains (losses) from sales and disposals of investments						$	( 234 )					$	( 222 )					$	( 721 )					$	( 769 )

__________________

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(1)     Includes ($ 438 ) million and ($ 1.3 ) billion of impairments for fixed maturity securities AFS; and ($ 12 ) million and ($ 56 ) million of adjustments to lower of amortized cost or estimated fair value for mortgage loans, during the three months and nine months ended September 30, 2023, respectively, relating to investments to be disposed of in connection with a pending reinsurance transaction. See Note 1.

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

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

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

						Three Months Ended September 30,												Nine Months Ended September 30,
Fixed Maturity Securities AFS						2023						2022						2023						2022
						(In millions)
Proceeds						$	9,263					$	15,484					$	32,719					$	50,218
Gross investment gains						$	63					$	124					$	429					$	464
Gross investment (losses)						( 334 )						( 457 )						( 1,403 )						( 1,861 )
Realized gains (losses) on sales and disposals						( 271 )						( 333 )						( 974 )						( 1,397 )
Net credit loss (provision) release (change in ACL recognized in earnings)						17						50						—						( 120 )
Impairment (losses)						( 444 )						( 3 )						( 1,300 )						( 38 )
Net credit loss (provision) release and impairment (losses)						( 427 )						47						( 1,300 )						( 158 )
Net investment gains (losses)						$	( 698 )					$	( 286 )					$	( 2,274 )					$	( 1,555 )
Equity Securities
Realized gains (losses) on sales and disposals						$	—					$	3					$	22					$	( 27 )
Unrealized net gains (losses) recognized in earnings						( 14 )						( 26 )						44						( 88 )
Net investment gains (losses)						$	( 14 )					$	( 23 )					$	66					$	( 115 )

Accounting for Derivatives

See Note 1 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report for a description of the Company’s accounting policies for derivatives and Note 12 for information about the fair value hierarchy for derivatives.

Derivative Strategies

Types of Derivative Instruments and Derivative Strategies

The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. Commonly used derivative instruments include, but are not limited to:

• Interest rate derivatives: swaps, total return swaps, caps, floors, futures, swaptions, forwards and synthetic GICs;

• Foreign currency exchange rate derivatives: swaps, forwards, options and exchange-traded futures;

• Credit derivatives: purchased or written single name or index credit default swaps, and forwards; and

• Equity derivatives: index options, variance swaps, exchange-traded futures and total return swaps.

For detailed information on these contracts and the related strategies, see Note 9 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report.

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

												September 30, 2023																		December 31, 2022
						Primary Underlying Risk Exposure						Gross Notional Amount						Estimated Fair Value												Gross Notional Amount						Estimated Fair Value
																		Assets						Liabilities												Assets						Liabilities
												(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges:
Interest rate swaps						Interest rate						$	4,551					$	1,107					$	655					$	4,143					$	1,353					$	467
Foreign currency swaps						Foreign currency exchange rate						1,496						70						15						602						82						—
Foreign currency forwards						Foreign currency exchange rate						586						—						102						1,336						10						89
Subtotal												6,633						1,177						772						6,081						1,445						556
Cash flow hedges:
Interest rate swaps						Interest rate						4,306						6						356						4,107						8						262
Interest rate forwards						Interest rate						6,261						—						1,143						7,447						1						1,354
Foreign currency swaps						Foreign currency exchange rate						42,615						2,929						1,514						42,608						3,554						1,699
Subtotal												53,182						2,935						3,013						54,162						3,563						3,315
NIFO hedges:
Foreign currency forwards						Foreign currency exchange rate						689						66						—						680						—						38
Currency options						Foreign currency exchange rate						3,000						416						—						3,000						236						—
Subtotal												3,689						482						—						3,680						236						38
Total qualifying hedges												63,504						4,594						3,785						63,923						5,244						3,909
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps						Interest rate						28,544						1,374						1,376						31,661						1,660						1,354
Interest rate floors						Interest rate						19,645						30						—						25,270						125						—
Interest rate caps						Interest rate						42,165						680						—						48,290						950						—
Interest rate futures						Interest rate						903						3						1						1,453						2						1
Interest rate options						Interest rate						42,910						418						272						44,391						473						88
Interest rate forwards						Interest rate						1,878						—						121						381						—						32
Synthetic GICs						Interest rate						49,003						—						—						46,316						—						—
Foreign currency swaps						Foreign currency exchange rate						11,992						1,409						370						12,815						1,454						383
Foreign currency forwards						Foreign currency exchange rate						15,648						105						1,136						16,195						544						661
Currency futures						Foreign currency exchange rate						311						—						—						333						8						—
Currency options						Foreign currency exchange rate						15						1						—						—						—						—
Credit default swaps — purchased						Credit						2,890						10						73						2,925						18						79
Credit default swaps — written						Credit						13,012						167						21						11,512						133						28
Equity futures						Equity market						2,648						9						4						2,988						8						4
Equity index options						Equity market						21,165						542						246						16,701						765						323
Equity variance swaps						Equity market						141						4						1						163						4						1
Equity total return swaps						Equity market						1,932						120						—						2,799						23						112
Total non-designated or nonqualifying derivatives												254,802						4,872						3,621						264,193						6,167						3,066
Total												$	318,306					$	9,466					$	7,406					$	328,116					$	11,411					$	6,975

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

						September 30, 2023																		December 31, 2022
Primary Underlying Risk Exposure						Gross Notional Amount						Estimated Fair Value												Gross Notional Amount						Estimated Fair Value
												Assets						Liabilities												Assets						Liabilities
						(In millions)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate						$	7,912					$	9					$	902					$	9,098					$	41					$	764
Foreign currency exchange rate						770						3						23						887						26						2
Equity market						6,447						226						167						8,829						233						381
						$	15,129					$	238					$	1,092					$	18,814					$	300					$	1,147

The change in estimated fair values and earned income of derivatives hedging variable annuity guarantees, recorded in net derivative gains (losses), were ($ 740 ) million and ($ 318 ) million for the nine months ended September 30, 2023 and September 30, 2022, respectively.

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship a t both September 30, 2023 and December 31, 2022. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules, (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship, (iii) derivatives that economically hedge MRBs that do not qualify for hedge accounting because the changes in estimated fair value of the MRBs are already recorded in net income, and (iv) written credit default swaps and interest rate swaps that are used to synthetically create investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged.

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

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

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						Nine Months Ended September 30, 2022
						Net Investment Income						Net Investment Gains (Losses)						Net Derivative Gains (Losses)						Policyholder Benefits and Claims						Interest Credited to Policyholder Account Balances						Other Expenses						Other Comprehensive Income (Loss)
						(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)						$	9					$	—					$	—					$	( 937 )					$	( 248 )					$	—					N/A
Hedged items						( 9 )						—						—						879						239						—						N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)						160						( 348 )						—						—						—						—						N/A
Hedged items						( 159 )						339						—						—						—						—						N/A
Amount excluded from the assessment of hedge effectiveness						—						81						—						—						—						—						N/A
Subtotal						1						72						—						( 58 )						( 9 )						—						N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI						N/A						N/A						N/A						N/A						N/A						N/A						$	( 2,167 )
Amount of gains (losses) reclassified from AOCI into income						46						44						—						—						—						3						( 93 )
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI						N/A						N/A						N/A						N/A						N/A						N/A						2,676
Amount of gains (losses) reclassified from AOCI into income						4						( 1,405 )						—						—						—						1						1,400
Foreign currency transaction gains (losses) on hedged items						—						1,386						—						—						—						—						—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI						N/A						N/A						N/A						N/A						N/A						N/A						N/A
Amount of gains (losses) reclassified from AOCI into income						—						—						—						—						—						—						—
Subtotal						50						25						—						—						—						4						1,816
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)						N/A						N/A						N/A						N/A						N/A						N/A						240
Non-derivative hedging instruments						N/A						N/A						N/A						N/A						N/A						N/A						75
Subtotal						N/A						N/A						N/A						N/A						N/A						N/A						315
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)						3						—						( 3,576 )						—						—						—						N/A
Foreign currency exchange rate derivatives (1)						2						—						( 795 )						—						—						—						N/A
Credit derivatives — purchased (1)						—						—						99						—						—						—						N/A
Credit derivatives — written (1)						—						—						( 244 )						—						—						—						N/A
Equity derivatives (1)						53						—						1,299						—						—						—						N/A
Foreign currency transaction gains (losses) on hedged items						—						—						275						—						—						—						N/A
Subtotal						58						—						( 2,942 )						—						—						—						N/A
Earned income on derivatives						330						—						746						100						( 91 )						—						—
Synthetic GICs						N/A						N/A						—						N/A						N/A						N/A						N/A
Embedded derivatives						N/A						N/A						49						—						N/A						N/A						N/A
Total						$	439					$	97					$	( 2,147 )					$	42					$	( 100 )					$	4					$	2,131

__________________

(1) Excludes earned income on derivatives.

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Fair Value Hedges

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

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

Balance Sheet Line Item						Carrying Amount of the Hedged Assets/(Liabilities)																		Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets/(Liabilities) (1)
						September 30, 2023						December 31, 2022												September 30, 2023						December 31, 2022
						(In millions)
Fixed maturity securities AFS						$	526					$	1,411											$	1					$	1
Mortgage loans						$	317					$	331											$	( 15 )					$	( 19 )
Future policy benefits						$	( 2,579 )					$	( 2,816 )											$	431					$	199
Policyholder account balances						$	( 1,744 )					$	( 1,789 )											$	151					$	104

__________________

(1) Includes ($ 119 ) million and ($ 136 ) million of hedging adjustments on discontinued hedging relationships at September 30, 2023 and December 31, 2022, respectively.

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

Cash Flow Hedges

The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities, (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities, (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments, 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 $ 1 million and $ 28 million for the three months and nine months ended September 30, 2023, respectively, and $ 19 million and $ 21 million for the three months and nine months ended September 30, 2022, respectively.

At both September 30, 2023 and December 31, 2022, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed six years .

At September 30, 2023 and December 31, 2022, the balance in AOCI associated with cash flow hedges was $ 762 million and $ 2.0 billion, respectively.

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

At September 30, 2023, the Company expected to reclassify ($ 1 ) million of deferred net gains (losses) on derivatives in AOCI to earnings within the next 12 months.

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NIFO Hedges

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

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

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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:

						September 30, 2023																		December 31, 2022
Rating Agency Designation of Referenced Credit Obligations (1)						Estimated Fair Value of Credit Default Swaps						Maximum Amount of Future Payments under Credit Default Swaps						Weighted Average Years to Maturity (2)						Estimated Fair Value of Credit Default Swaps						Maximum Amount of Future Payments under Credit Default Swaps						Weighted Average Years to Maturity (2)
						(Dollars in millions)
Aaa/Aa/A
Single name credit default swaps (3)						$	2					$	155					1.6						$	3					$	158					2.2
Credit default swaps referencing indices						72						4,351						2.6						79						4,251						3.4
Subtotal						74						4,506						2.6						82						4,409						3.4
Baa
Single name credit default swaps (3)						1						95						2.3						1						81						2.5
Credit default swaps referencing indices						75						8,189						5.6						28						6,775						5.6
Subtotal						76						8,284						5.6						29						6,856						5.5
Ba
Single name credit default swaps (3)						( 1 )						37						1.2						—						62						1.3
Credit default swaps referencing indices						2						25						3.2						2						25						4.0
Subtotal						1						62						2.0						2						87						2.1
B
Credit default swaps referencing indices						2						130						5.2						2						130						4.7
Subtotal						2						130						5.2						2						130						4.7
Caa
Credit default swaps referencing indices						( 7 )						30						2.7						( 10 )						30						3.5
Subtotal						( 7 )						30						2.7						( 10 )						30						3.5
Total						$	146					$	13,012					4.5						$	105					$	11,512					4.7

_________________

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

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

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

Credit Risk on Freestanding Derivatives

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

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

The Company’s over-the-counter cleared (“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 12 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:

						September 30, 2023												December 31, 2022
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement						Assets						Liabilities						Assets						Liabilities
						(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)						$	9,587					$	7,159					$	11,438					$	6,628
OTC-cleared (1)						108						287						121						342
Exchange-traded						12						5						18						5
Total gross estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1)						9,707						7,451						11,577						6,975
Gross amounts not offset on the interim condensed consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral						( 4,261 )						( 4,261 )						( 4,579 )						( 4,579 )
OTC-cleared						( 9 )						( 9 )						( 33 )						( 33 )
Exchange-traded						( 1 )						( 1 )						( 1 )						( 1 )
Cash collateral: (3), (4)
OTC-bilateral						( 3,934 )						—						( 5,432 )						—
OTC-cleared						( 79 )						( 273 )						( 35 )						( 295 )
Exchange-traded						—						( 2 )						—						( 3 )
Securities collateral: (5)
OTC-bilateral						( 1,241 )						( 2,879 )						( 1,322 )						( 2,024 )
OTC-cleared						—						( 5 )						—						( 14 )
Exchange-traded						—						( 1 )						—						( 1 )
Net amount after application of master netting agreements and collateral						$	182					$	20					$	175					$	25

__________________

(1) At September 30, 2023 and December 31, 2022, derivative assets included income (expense) accruals reported in accrued investment income or in other liabilities of $ 241 million an d $ 166 million , respectively, and derivative liabilities included (income) expense accruals reported in accrued investment income or in other liabilities of $ 45 million a nd $ 0 , respectively.

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

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

(4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At September 30, 2023 and December 31, 2022, the Company received excess cash collateral of $ 192 million and $ 252 million, respectively, and provided excess cash collateral of $ 97 million and $ 125 million, respectively, which is not included in the table above due to the foregoing limitation.

(5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at September 30, 2023, none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities AFS on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At September 30, 2023 and December 31, 2022, the Company received excess securities collateral with an estimated fair value of $ 326 million and $ 398 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At September 30, 2023 and December 31, 2022, the Company provided excess securities collateral with an estimated fair value of $ 1.1 billion and $ 1.2 billion, respectively, for its OTC-bilateral derivatives, $ 865 million and $ 1.0 billion, respectively, for its OTC-cleared derivatives, and $ 100 million and $ 184 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the collateral amount owed by that counterparty reaches a minimum transfer amount. Substantially all of the Company’s netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade credit rating from each of Moody’s and S&P. If a party’s credit or financial strength rating, as applicable, were to fall below that specific investment grade credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party’s reasonable valuation of the derivatives. A small number of these arrangements also include credit-contingent provisions that include a threshold above which collateral must be posted. Such agreements provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the credit ratings of MetLife, Inc. and/or the counterparty. At September 30, 2023, the amount of collateral not provided by the Company due to the existence of these thresholds was $ 15 million.

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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.

						September 30, 2023																		December 31, 2022
						Derivatives Subject to Credit- Contingent Provisions						Derivatives Not Subject to Credit- Contingent Provisions						Total						Derivatives Subject to Credit- Contingent Provisions						Derivatives Not Subject to Credit- Contingent Provisions						Total
						(In millions)
Estimated fair value of derivatives in a net liability position (1)						$	2,864					$	34					$	2,898					$	2,049					$	—					$	2,049
Estimated fair value of collateral provided:
Fixed maturity securities AFS						$	3,295					$	49					$	3,344					$	2,267					$	—					$	2,267

__________________

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

Embedded Derivatives

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

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

						Balance Sheet Location						September 30, 2023						December 31, 2022
												(In millions)
Embedded derivatives within liability host contracts:
Funds withheld and guarantees on reinsurance						Other liabilities						$	( 151 )					$	( 123 )
Fixed annuities with equity indexed returns						Policyholder account balances						156						140
Total												$	5					$	17

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

Recurring Fair Value Measurements

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

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

__________________

(1) Contractholder-directed equity securities and FVO Securities (collectively, “Unit-linked and FVO Securities”) were primarily comprised of Unit-linked investments at both September 30, 2023 and December 31, 2022.

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

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

(4) Reinsured MRBs are presented within premiums, reinsurance and other receivables.

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

(6) Total assets included in the fair value hierarchy exclude OLPI that are measured at estimated fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient. At September 30, 2023 and December 31, 2022, the estimated fair value of such investments was $ 58 million and $ 65 million, respectively.

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

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

Investments

Securities, Short-term Investments and Other Investments

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

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

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

The valuation approaches and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy are presented below. The primary valuation approaches are the market approach, which considers recent prices from market transactions involving identical or similar assets or liabilities, and the income approach, which converts expected future amounts (e.g., cash flows) to a single current, discounted amount. The valuation of most instruments listed below is determined using independent pricing sources, matrix pricing, discounted cash flow methodologies or other similar techniques that use either observable market inputs or unobservable inputs.

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Instrument

Level 2 Observable Inputs

Level 3 Unobservable Inputs

Equity securities

Valuation Approaches: Principally the market approach.

Valuation Approaches: Principally the market and income approaches.

Key Input:

Key Inputs:

•

quoted prices in markets that are not considered active

•

credit ratings; issuance structures

•

quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2

•

independent non-binding broker quotations

Unit-linked and FVO Securities, Short-term investments and Other investments

Valuation Approaches: Principally the market and income approaches.

Valuation Approaches: Principally the market and income approaches.

Key Inputs:

Key Inputs:

•

Unit-linked and FVO Securities include mutual fund interests without readily determinable fair values given prices are not published publicly. Valuation of these mutual funds is based upon quoted prices or reported NAV provided by the fund managers, which were based on observable inputs.

•

Unit-linked and FVO Securities, short-term investments and other investments are of a similar nature and class to the fixed maturity securities AFS and equity securities described above; accordingly, the valuation approaches and unobservable inputs used in their valuation are also similar to those described above. Other investments also include certain REJV and use the valuation approach and key inputs as described for OLPI below.

•

Short-term investments and other investments are of a similar nature and class to the fixed maturity securities AFS and equity securities described above; accordingly, the valuation approaches and observable inputs used in their valuation are also similar to those described above.

Separate account assets and Separate account liabilities (1)

Mutual funds and hedge funds without readily determinable fair values as prices are not published publicly

Key Input:

•

N/A

•

quoted prices or reported NAV provided by the fund managers

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, OLPI, short-term investments and cash and cash equivalents. The estimated fair value of fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents is determined on a basis consistent with the assets described under “— Securities, Short-term Investments and Other Investments” and “— Derivatives — Freestanding Derivatives.”

Derivatives

The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models.

The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. With respect to certain OTC-bilateral and OTC-cleared derivatives, management may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Unobservable inputs are based on management’s assumptions about the inputs market participants would use in pricing such derivatives.

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Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income.

The credit risk of both the counterparty and the Company is considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is, in part, due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period.

Freestanding Derivatives

Level 2 Valuation Approaches and Key Inputs:

This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3.

Level 3 Valuation Approaches and Key Inputs:

These valuation methodologies generally use the same inputs as described in the corresponding sections for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data.

Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. Key inputs are as follows:

Instrument

Interest Rate

Foreign Currency Exchange Rate

Credit

Equity Market

Inputs common to Level 2 and Level 3 by instrument type

•

swap yield curves

•

swap yield curves

•

swap yield curves

•

swap yield curves

•

basis curves

•

basis curves

•

credit curves

•

spot equity index levels

•

interest rate volatility (1)

•

currency spot rates

•

recovery rates

•

dividend yield curves

•

cross currency basis curves

•

equity volatility (1)

•

currency volatility (1)

Level 3

•

swap yield curves (2)

•

swap yield curves (2)

•

swap yield curves (2)

•

dividend yield curves (2)

•

basis curves (2)

•

basis curves (2)

•

credit curves (2)

•

equity volatility (1), (2)

•

repurchase rates

•

cross currency basis curves (2)

•

credit spreads

•

correlation between model inputs (1)

•

interest rate volatility (1), (2)

•

currency correlation

•

repurchase rates

•

currency volatility (1)

•

independent non-binding broker quotations

__________________

(1) Option-based only.

(2) Extrapolation beyond the observable limits of the curve(s).

Embedded Derivatives

Embedded derivatives principally include equity-indexed annuity contracts and investment risk within funds withheld related to certain reinsurance agreements. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income.

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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 interim condensed consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income.

The estimated fair value of the embedded equity indexed derivatives, based on the present value of future equity returns to the policyholder using actuarial and present value assumptions including expectations concerning policyholder behavior, is calculated by the Company’s actuarial department. The calculation is based on in-force business and uses standard capital market techniques, such as Black-Scholes, to calculate the value of the portion of the embedded derivative for which the terms are set. The portion of the embedded derivative covering the period beyond where terms are set is calculated as the present value of amounts expected to be spent to provide equity indexed returns in those periods. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk.

Market Risk Benefits

See Note 6 for information on the Company’s valuation approaches and key inputs for MRBs.

Transfers between Levels

Overall, transfers between levels occur when there are changes in the observability of inputs and market activity.

Transfers into or out of Level 3:

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

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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:

																					September 30, 2023																		December 31, 2022																		Impact of Increase in Input on Estimated Fair Value (2)
			Valuation Techniques									Significant Unobservable Inputs									Range												Weighted Average (1)						Range												Weighted Average (1)
Fixed maturity securities AFS (3)
U.S. corporate and foreign corporate			•			Matrix pricing						•			Offered quotes (4)						13			-			120						86						—			-			126						87						Increase
			•			Market pricing						•			Quoted prices (4)						4			-			127						90						20			-			109						90						Increase
			•			Consensus pricing						•			Offered quotes (4)						84			-			101						95						5			-			99						93						Increase
RMBS			•			Market pricing						•			Quoted prices (4)						—			-			112						93						—			-			106						93						Increase (5)
ABS & CLO			•			Market pricing						•			Quoted prices (4)						3			-			100						92						3			-			102						91						Increase (5)
Derivatives
Interest rate			•			Present value techniques						•			Swap yield (6)						433			-			462						451						372			-			392						381						Increase (7)
Foreign currency exchange rate			•			Present value techniques						•			Swap yield (6)						216			-			415						244						74			-			1,938						208						Increase (7)
Credit			•			Present value techniques						•			Credit spreads (8)						—			-			—						—						84			-			138						101						Decrease (7)
			•			Consensus pricing						•			Offered quotes (9)
Market Risk Benefits and Reinsured Market Risk Benefits
Direct, assumed and ceded guaranteed minimum benefits			•			Option pricing techniques						•			Mortality rates:
															Ages 0 - 40						0 %			-			0.15 %						0.05 %						0 %			-			0.15 %						0.05 %						(10)
															Ages 41 - 60						0.04 %			-			0.75 %						0.22 %						0.05 %			-			0.75 %						0.20 %						(10)
															Ages 61 - 115						0 %			-			100 %						1.23 %						0.23 %			-			100 %						1.44 %						(10)
												•			Lapse rates:
															Durations 1 - 10						0.39 %			-			20.10 %						8.72 %						0.40 %			-			37.50 %						8.96 %						Decrease (11)
															Durations 11 - 20						0.39 %			-			15 %						4.34 %						0.49 %			-			35.75 %						6.52 %						Decrease (11)
															Durations 21 - 116						0.10 %			-			15 %						4.59 %						0.49 %			-			35.75 %						2.89 %						Decrease (11)
												•			Utilization rates						0.20 %			-			22 %						0.44 %						0.20 %			-			22 %						0.38 %						Increase (12)
												•			Withdrawal rates						0 %			-			20 %						4.47 %						0 %			-			20 %						4.02 %						(13)
												•			Long-term equity volatilities						7.92 %			-			21.85 %						18.55 %						8.26 %			-			22.01 %						18.49 %						Increase (14)
												•			Nonperformance risk spread						0.41 %			-			1.79 %						0.73 %						0.34 %			-			1.77 %						0.75 %						Decrease (15)

__________________

(1) The weighted average for fixed maturity securities AFS and derivatives is determined based on the estimated fair value of the securities and derivatives. The weighted average for MRBs is determined based on a combination of account values and experience data.

(2) The impact of a decrease in input would have resulted in the opposite impact on estimated fair value. For MRBs, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions.

(3) Significant increases (decreases) in expected default rates in isolation would have resulted in substantially lower (higher) valuations.

(4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities AFS of dollars per hundred dollars of par.

(5) Changes in the assumptions used for the probability of default would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates.

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(6) Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(7) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.

(8) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.

(9) At September 30, 2023 and December 31, 2022, independent non-binding broker quotations were used in the determination of 3% and 1%, respectively, of the total net derivative estimated fair value.

(10) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the MRBs. For contracts that contain only a GMDB, any increase (decrease) in mortality rates result in an increase (decrease) in the estimated fair value of MRBs. Generally, for contracts that contain both a GMDB and a living benefit (e.g., GMIB, GMWB, GMAB), any increase (decrease) in mortality rates result in a decrease (increase) in the estimated fair value of MRBs.

(11) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the MRBs.

(12) The utilization rate assumption estimates the percentage of contractholders with GMIBs or a lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the MRBs.

(13) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the MRB. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(14) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the MRBs.

(15) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the MRBs.

All other classes of securities classified within Level 3, including those within Unit-linked and FVO Securities, Other investments, Separate account assets, and Embedded derivatives within funds withheld related to certain ceded reinsurance, use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. Generally, all other classes of assets and liabilities classified within Level 3 that are not included above use the same valuation techniques and significant unobservable inputs as previously described for Level 3. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table. The valuation techniques and significant unobservable inputs used in the fair value measurement for the more significant assets measured at estimated fair value on a nonrecurring basis and determined using significant unobservable inputs (Level 3) are summarized in “— Nonrecurring Fair Value Measurements.”

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						Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
						Short-term Investments						Residential Mortgage Loans — FVO						Other Investments						Net Derivatives (7)						Net Embedded Derivatives (8)						Separate Accounts (9)
						(In millions)
Nine Months Ended September 30, 2023
Balance, beginning of period						$	57					$	—					$	926					$	( 170 )					$	( 17 )					$	1,210
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)						—						—						19						( 21 )						51						( 62 )
Total realized/unrealized gains (losses) included in AOCI						1						—						—						( 59 )						—						—
Purchases (3)						25						—						25						—						—						181
Sales (3)						( 48 )						—						—						—						—						( 128 )
Issuances (3)						—						—						—						—						—						—
Settlements (3)						—						—						—						121						( 39 )						1
Transfers into Level 3 (4)						—						—						—						—						—						14
Transfers out of Level 3 (4)						( 10 )						—						—						( 160 )						—						( 9 )
Balance, end of period						$	25					$	—					$	970					$	( 289 )					$	( 5 )					$	1,207
Nine Months Ended September 30, 2022
Balance, beginning of period						$	3					$	127					$	898					$	( 152 )					$	( 222 )					$	2,131
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)						( 1 )						( 8 )						80						( 139 )						49						52
Total realized/unrealized gains (losses) included in AOCI						—						—						—						( 528 )						—						—
Purchases (3)						5						—						221						82						—						150
Sales (3)						( 2 )						( 108 )						( 178 )						—						—						( 1,107 )
Issuances (3)						—						—						—						( 3 )						—						3
Settlements (3)						—						( 11 )						—						68						82						4
Transfers into Level 3 (4)						—						—						—						—						—						—
Transfers out of Level 3 (4)						—						—						( 99 )						1						—						( 18 )
Balance, end of period						$	5					$	—					$	922					$	( 671 )					$	( 91 )					$	1,215
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2023 (5)						$	—					$	—					$	20					$	( 28 )					$	51					$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2022 (5)						$	( 1 )					$	—					$	77					$	( 133 )					$	49					$	—
Changes in unrealized gains (losses) included in AOCI for the instruments still held at September 30, 2023 (5)						$	—					$	—					$	—					$	( 85 )					$	—					$	—
Changes in unrealized gains (losses) included in AOCI for the instruments still held at September 30, 2022 (5)						$	—					$	—					$	—					$	( 474 )					$	—					$	—

__________________

(1) Amortization of premium/accretion of discount is included within net investment income. Impairments and changes in ACL charged to net income (loss) on certain securities are included in net investment gains (losses), while changes in estimated fair value of Unit-linked and FVO Securities and residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(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.

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(4) Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.

(5) Changes in unrealized gains (losses) included in net income (loss) and included in AOCI relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(6) Comprised of U.S. and foreign corporate securities.

(7) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.

(8) Embedded derivative assets and liabilities are presented net for purposes of the rollforward.

(9) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net income (loss). Separate account assets and liabilities are presented net for the purposes of the rollforward.

Nonrecurring Fair Value Measurements

The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment), using significant unobservable inputs (Level 3).

			September 30, 2023						December 31, 2022
			(in millions)
Carrying value after measurement
Mortgage loans (1)			$	637					$	263

						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
						(in millions)
Realized gains (losses) net:
Mortgage loans (1)						$	( 49 )					$	( 2 )					$	( 190 )					$	( 16 )

__________________

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.

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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:

						September 30, 2023
												Fair Value Hierarchy
						Carrying Value						Level 1						Level 2						Level 3						Total Estimated Fair Value
						(In millions)
Assets
Mortgage loans (1)						$	92,230					$	—					$	—					$	85,164					$	85,164
Policy loans						$	8,725					$	—					$	—					$	9,306					$	9,306
Other invested assets						$	936					$	—					$	737					$	200					$	937
Premiums, reinsurance and other receivables						$	3,328					$	—					$	1,461					$	1,894					$	3,355
Other assets						$	252					$	—					$	86					$	167					$	253
Liabilities
Policyholder account balances						$	135,373					$	—					$	—					$	127,539					$	127,539
Long-term debt						$	15,436					$	—					$	14,372					$	—					$	14,372
Collateral financing arrangement						$	651					$	—					$	—					$	552					$	552
Junior subordinated debt securities						$	3,160					$	—					$	3,427					$	—					$	3,427
Other liabilities						$	10,836					$	—					$	1,118					$	9,178					$	10,296
Separate account liabilities						$	72,307					$	—					$	72,307					$	—					$	72,307

						December 31, 2022
												Fair Value Hierarchy
						Carrying Value						Level 1						Level 2						Level 3						Total Estimated Fair Value
						(In millions)
Assets
Mortgage loans (1)						$	83,763					$	—					$	—					$	78,694					$	78,694
Policy loans						$	8,874					$	—					$	—					$	9,682					$	9,682
Other invested assets						$	946					$	—					$	729					$	217					$	946
Premiums, reinsurance and other receivables						$	2,905					$	—					$	1,042					$	1,921					$	2,963
Other assets						$	267					$	—					$	90					$	175					$	265
Liabilities
Policyholder account balances						$	133,788					$	—					$	—					$	127,514					$	127,514
Long-term debt						$	14,591					$	—					$	14,241					$	—					$	14,241
Collateral financing arrangement						$	716					$	—					$	—					$	591					$	591
Junior subordinated debt securities						$	3,158					$	—					$	3,502					$	—					$	3,502
Other liabilities						$	2,908					$	—					$	1,377					$	1,793					$	3,170
Separate account liabilities						$	81,976					$	—					$	81,976					$	—					$	81,976

_________________

(1) Includes mortgage loans measured at estimated fair value on a nonrecurring basis.

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Senior Notes

In July 2023, MetLife, Inc. issued $ 1.0 billion of senior notes due July 2033 which bear interest at a fixed rate of 5.375 %, payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $ 6 million of related costs which will be amortized over the term of the senior notes.

In February 2023, MetLife, Inc. redeemed for cash and canceled $ 1.0 billion aggregate principal amount of its outstanding 4.368 % senior notes due September 2023.

In January 2023, MetLife, Inc. issued $ 1.0 billion of senior notes due January 2054 which bear interest at a fixed rate of 5.250 %, payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $ 11 million of related costs which will be amortized over the term of the senior notes.

Credit Facility

Preferred Stock

Preferred stock authorized, issued and outstanding was as follows at both September 30, 2023 and December 31, 2022:

Series						Shares Authorized						Shares Issued and Outstanding
Floating Rate Non-Cumulative Preferred Stock, Series A						27,600,000						24,000,000
5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D						500,000						500,000
5.625% Non-Cumulative Preferred Stock, Series E						32,200						32,200
4.75% Non-Cumulative Preferred Stock, Series F						40,000						40,000
3.85% Fixed Rate Reset Non-Cumulative Preferred Stock, Series G						1,000,000						1,000,000
Series A Junior Participating Preferred Stock						10,000,000						—
Not designated						160,827,800						—
Total						200,000,000						25,572,200

The per share and aggregate dividends declared for MetLife, Inc.’s preferred stock were as follows:

						Three Months Ended September 30,																								Nine Months Ended September 30,
						2023												2022												2023												2022
Series						Per Share						Aggregate						Per Share						Aggregate						Per Share						Aggregate						Per Share						Aggregate
						(In millions, except per share data)
A						$	0.419					$	9					$	0.256					$	6					$	1.155					$	27					$	0.762					$	18
D						$	29.375					14						$	29.375					14						$	58.750					29						$	58.750					29
E						$	351.563					12						$	351.563					12						$	1,054.689					34						$	1,054.689					34
F						$	296.875					12						$	296.875					12						$	890.625					36						$	890.625					36
G						$	19.250					20						$	19.250					20						$	38.500					39						$	38.500					39
Total												$	67											$	64											$	165											$	156

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Common Stock

MetLife, Inc. announced that its Board of Directors authorized common stock repurchases as follows:

												Authorization Remaining at
Announcement Date						Authorization Amount						September 30, 2023
						(In millions)
May 25, 2023						$	1,000					$	1,000
May 3, 2023						$	3,000					$	1,961
May 4, 2022						$	3,000					$	—

Under these authorizations, MetLife, Inc. may purchase its common stock from the MetLife Policyholder Trust, in the open market (including pursuant to the terms of a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934), and in privately negotiated transactions. Common stock repurchases are subject to the discretion of MetLife, Inc.’s Board of Directors and will depend upon the Company’s capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to management’s assessment of the stock’s underlying value, applicable regulatory approvals, and other legal and accounting factors.

For the nine months ended September 30, 2023 and 2022, MetLife, Inc. repurchased 36,602,858 shares and 41,267,149 shares of its common stock, respectively, through open market purchases for $ 2.2 billion and $ 2.7 billion, respectively. The Inflation Reduction Act, signed into law on August 16, 2022, imposes a one percent excise tax, net of any allowable offsets, on certain corporate stock buybacks made after December 31, 2022. Neither the authorization remaining, nor the amount repurchased, at September 30, 2023 reflects the $ 22 million of applicable excise tax payable in connection with such repurchases. The $ 22 million of excise tax is reflected in treasury stock as part of the cost basis of the common stock repurchased, and a corresponding liability for the excise tax payable was recorded in other liabilities.

Stock-Based Compensation Plans

Performance Shares and Performance Units

Final Performance Shares are paid in shares of MetLife, Inc. common stock. Final Performance Units are payable in cash equal to the closing price of MetLife, Inc. common stock on a date following the last day of the three-year performance period. The performance factor for the January 1, 2020 – December 31, 2022 performance period was 156.3 %, which was determined within a possible range from 0 % to 175 %. This factor has been applied to the 1,174,602 Performance Shares and 154,904 Performance Units associated with that performance period that vested on December 31, 2022. As a result, in the first quarter of 2023, MetLife, Inc. issued 1,835,903 shares of its common stock (less withholding for taxes and other items, as applicable), excluding shares that payees choose to defer, and MetLife, Inc. or its affiliates paid the cash value of 242,115 Performance Units (less withholding for taxes and other items, as applicable).

Dividend Restrictions

Insurance Operations

For the nine months ended September 30, 2023, American Life Insurance Company paid a dividend of $ 942 million to MetLife, Inc., for which regulatory approval was obtained as required.

See Note 16 of the Notes to Consolidated Financial Statements included in the 2022 Annual Report for information on dividend restrictions.

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Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc. was as follows:

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						Nine Months Ended September 30, 2023
						Unrealized Investment Gains (Losses), Net of Related Offsets						Deferred Gains (Losses) on Derivatives						Future Policy Benefits Discount Rate Remeasurement Gains (Losses)						Market Risk Benefits Instrument-Specific Credit Risk Remeasurement Gains (Losses)						Foreign Currency Translation Adjustments						Defined Benefit Plans Adjustment						Total
						(In millions)
Balance, beginning of period						$	( 22,646 )					$	1,557					$	6,115					$	107					$	( 6,377 )					$	( 1,377 )					$	( 22,621 )
OCI before reclassifications						( 8,189 )						( 1,085 )						5,325						( 141 )						( 168 )						( 6 )						( 4,264 )
Deferred income tax benefit (expense)						1,882						249						( 1,195 )						30						( 94 )						1						873
AOCI before reclassifications, net of income tax						( 28,953 )						721						10,245						( 4 )						( 6,639 )						( 1,382 )						( 26,012 )
Amounts reclassified from AOCI						2,316						( 130 )						—						—						—						90						2,276
Deferred income tax benefit (expense)						( 532 )						30						—						—						—						( 16 )						( 518 )
Amounts reclassified from AOCI, net of income tax						1,784						( 100 )						—						—						—						74						1,758
Balance, end of period						$	( 27,169 )					$	621					$	10,245					$	( 4 )					$	( 6,639 )					$	( 1,308 )					$	( 24,254 )
						Nine Months Ended September 30, 2022
						Unrealized Investment Gains (Losses), Net of Related Offsets						Deferred Gains (Losses) on Derivatives						Future Policy Benefits Discount Rate Remeasurement Gains (Losses)						Market Risk Benefits Instrument-Specific Credit Risk Remeasurement Gains (Losses)						Foreign Currency Translation Adjustments						Defined Benefit Plans Adjustment						Total
						(In millions)
Balance, beginning of period						$	20,919					$	1,629					$	( 18,559 )					$	279					$	( 5,121 )					$	( 1,598 )					$	( 2,451 )
OCI before reclassifications						( 60,427 )						509						33,580						( 135 )						( 2,284 )						7						( 28,750 )
Deferred income tax benefit (expense)						13,794						( 116 )						( 7,444 )						30						( 107 )						( 1 )						6,156
AOCI before reclassifications, net of income tax						( 25,714 )						2,022						7,577						174						( 7,512 )						( 1,592 )						( 25,045 )
Amounts reclassified from AOCI						1,346						1,307						—						—						—						70						2,723
Deferred income tax benefit (expense)						( 307 )						( 297 )						—						—						—						( 12 )						( 616 )
Amounts reclassified from AOCI, net of income tax						1,039						1,010						—						—						—						58						2,107
Sale of subsidiaries, net of income tax						( 9 )						—						35						—						388						( 2 )						412
Balance, end of period						$	( 24,684 )					$	3,032					$	7,612					$	174					$	( 7,124 )					$	( 1,536 )					$	( 22,526 )

For information on offsets to investments related to policyholder liabilities, see “— Net Unrealized Investment Gains (Losses).”

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Information regarding amounts reclassified out of each component of AOCI was as follows:

						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
AOCI Components						Amounts Reclassified from AOCI																								Consolidated Statements of Operations and Comprehensive Income (Loss) Locations
						(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)						$	( 730 )					$	( 336 )					$	( 2,420 )					$	( 1,458 )					Net investment gains (losses)
Net unrealized investment gains (losses)						1						—						6						4						Net investment income
Net unrealized investment gains (losses)						19						( 7 )						98						108						Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax						( 710 )						( 343 )						( 2,316 )						( 1,346 )
Income tax (expense) benefit						172						77						532						307
Net unrealized investment gains (losses), net of income tax						( 538 )						( 266 )						( 1,784 )						( 1,039 )
Deferred gains (losses) on derivatives - cash flow hedges:
Interest rate derivatives						11						15						38						46						Net investment income
Interest rate derivatives						17						( 16 )						77						44						Net investment gains (losses)
Interest rate derivatives						—						1						—						3						Other expenses
Foreign currency exchange rate derivatives						1						1						3						4						Net investment income
Foreign currency exchange rate derivatives						( 301 )						( 567 )						10						( 1,405 )						Net investment gains (losses)
Foreign currency exchange rate derivatives						1						—						2						1						Other expenses
Gains (losses) on cash flow hedges, before income tax						( 271 )						( 566 )						130						( 1,307 )
Income tax (expense) benefit						57						145						( 30 )						297
Gains (losses) on cash flow hedges, net of income tax						( 214 )						( 421 )						100						( 1,010 )
Defined benefit plans adjustment: (1)
Amortization of net actuarial gains (losses)						( 33 )						( 25 )						( 98 )						( 78 )
Amortization of prior service (costs) credit						3						2						8						8
Amortization of defined benefit plan items, before income tax						( 30 )						( 23 )						( 90 )						( 70 )
Income tax (expense) benefit						6						5						16						12
Amortization of defined benefit plan items, net of income tax						( 24 )						( 18 )						( 74 )						( 58 )
Total reclassifications, net of income tax						$	( 776 )					$	( 705 )					$	( 1,758 )					$	( 2,107 )

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(1) These AOCI components are included in the computation of net periodic benefit costs. See Note 16.

Net Unrealized Investment Gains (Losses)

Unrealized investment gains (losses) on fixed maturity securities AFS, derivatives and other investments and the effect on policyholder liabilities 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:

						September 30, 2023						December 31, 2022
						(In millions)
Fixed maturity securities AFS						$	( 35,155 )					$	( 29,262 )
Derivatives						761						1,976
Other						584						549
Subtotal						( 33,810 )						( 26,737 )
Amounts allocated from:
Policyholder liabilities						90						120
Deferred income tax benefit (expense)						7,174						5,545
Net unrealized investment gains (losses)						( 26,546 )						( 21,072 )
Net unrealized investment gains (losses) attributable to noncontrolling interests						( 2 )						( 17 )
Net unrealized investment gains (losses) attributable to MetLife, Inc.						$	( 26,548 )					$	( 21,089 )

Other Revenues

Information on other revenues, which primarily includes fees related to service contracts from customers, was as follows:

						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
						(In millions)
Vision fee for service arrangements						$	144					$	135					$	446					$	427
Prepaid legal plans						128						118						389						356
Fee-based investment management						103						97						306						299
Recordkeeping and administrative services (1)						39						40						114						130
Administrative services-only contracts						65						59						193						177
Other revenue from service contracts from customers						75						62						214						197
Total revenues from service contracts from customers						554						511						1,662						1,586
Other						52						217						204						417
Total other revenues						$	606					$	728					$	1,866					$	2,003

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(1) Related to products and businesses no longer actively marketed by the Company.

Receivables related to revenues from service contracts from customers were $ 238 million and $ 226 million at September 30, 2023 and December 31, 2022, respectively.

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Other Expenses

Information on other expenses was as follows:

						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
						(In millions)
Employee-related costs (1)						$	914					$	880					$	2,743					$	2,652
Third-party staffing costs						362						353						1,066						1,111
General and administrative expenses						209						178						539						458
Pension, postretirement and postemployment benefit costs						59						24						177						73
Premium taxes, other taxes, and licenses & fees						162						172						507						462
Commissions and other variable expenses						1,483						1,268						4,347						3,899
Capitalization of DAC						( 742 )						( 626 )						( 2,189 )						( 1,915 )
Amortization of DAC and VOBA						499						441						1,448						1,374
Amortization of negative VOBA						( 7 )						( 7 )						( 20 )						( 22 )
Interest expense on debt						265						239						776						690
Total other expenses						$	3,204					$	2,922					$	9,394					$	8,782

__________________

(1) Includes $ 12 million and ($ 60 ) million for the three months and nine months ended September 30, 2023, respectively, and $ 30 million and $ 145 million for the three months and nine months ended September 30, 2022, respectively, for the net change in cash surrender value of investments in certain life insurance policies, net of premiums paid.

Pension and Other Postretirement Benefit Plans

Certain subsidiaries of MetLife, Inc. sponsor a U.S. qualified and various U.S. and non-U.S. nonqualified defined benefit pension plans covering employees who meet specified eligibility requirements. These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for U.S. and non-U.S. retired employees.

The components of net periodic benefit costs, reported in other expenses, were as follows:

						Three Months Ended September 30,
						2023												2022
						Pension Benefits						Other Postretirement Benefits						Pension Benefits						Other Postretirement Benefits
						(In millions)
Service costs						$	38					$	1					$	48					$	2
Interest costs						118						11						81						8
Expected return on plan assets						( 119 )						( 13 )						( 128 )						( 13 )
Amortization of net actuarial (gains) losses						40						( 7 )						31						( 7 )
Amortization of prior service costs (credit)						( 3 )						—						( 4 )						—
Net periodic benefit costs (credit)						$	74					$	( 8 )					$	28					$	( 10 )
						Nine Months Ended September 30,
						2023												2022
						Pension Benefits						Other Postretirement Benefits						Pension Benefits						Other Postretirement Benefits
						(In millions)
Service costs						$	113					$	2					$	150					$	4
Interest costs						353						32						244						25
Expected return on plan assets						( 360 )						( 41 )						( 386 )						( 41 )
Amortization of net actuarial (gains) losses						118						( 22 )						92						( 19 )
Amortization of prior service costs (credit)						( 9 )						—						( 10 )						—
Net periodic benefit costs (credit)						$	215					$	( 29 )					$	90					$	( 31 )

For the three months and nine months ended September 30, 2023, the effective tax rate on income (loss) before provision for income tax was 7 % and 19 %, respectively. The Company’s effective tax rate for the three months ended September 30, 2023 differed from the U.S. statutory rate primarily due to tax benefits related to the reversal of previously non-deductible losses, tax credits and foreign earnings taxed at different rates than the U.S. statutory rate, partially offset by the non-taxable investment loss related to the pending disposition of MetLife Malaysia. The Company’s effective tax rate for the nine months ended September 30, 2023 differed from the U.S. statutory rate primarily due to tax benefits related to tax credits and non-taxable investment income, largely offset by tax charges from foreign earnings taxed at different rates than the U.S. statutory rate and the non-taxable investment loss related to the pending disposition of MetLife Malaysia.

For the three months and nine months ended September 30, 2022, the effective tax rate on income (loss) before provision for income tax was 18 % and 14 %, respectively. The Company’s effective tax rate for the three months and nine months ended September 30, 2022 differed from the U.S. statutory rate primarily due to tax benefits from foreign earnings taxed at different rates than the U.S. statutory rate and tax credits.

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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 interim condensed consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, mortgage lending bank, employer, investor, investment advisor, broker-dealer, and taxpayer.

The Company also receives and responds to subpoenas or 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.

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It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. In certain circumstances where liabilities have been established, there may be coverage under one or more corporate insurance policies, pursuant to which there may be an insurance recovery. Insurance recoveries are recognized as gains when any contingencies relating to the insurance claim have been resolved, which is the earlier of when the gains are realized or realizable. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be reasonably estimated at September 30, 2023. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known to management, management does not believe any such charges are likely to have a material effect on the Company’s financial position. Given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods.

Matters as to Which an Estimate Can Be Made

For some matters, the Company is able to estimate a reasonably possible range of loss. For matters where a loss is believed to be reasonably possible, but not probable, the Company has not made an accrual. As of September 30, 2023, the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $ 0 to $ 125 million.

Matters as to Which an Estimate Cannot Be Made

For other matters, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Asbestos-Related Claims

MLIC is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege that the plaintiff or plaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. MLIC has never engaged in the business of manufacturing or selling asbestos-containing products, nor has MLIC issued liability or workers’ compensation insurance to companies in the business of manufacturing or selling asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication and other activities of one or more of MLIC’s employees during the period from the 1920s through approximately the 1950s and allege that MLIC learned or should have learned of certain health risks posed by asbestos and, among other things, improperly publicized or failed to disclose those health risks. MLIC believes that it should not have legal liability in these cases. The outcome of most asbestos litigation matters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the nature of the alleged injury and factors unrelated to the ultimate legal merit of the claims asserted against MLIC.

MLIC’s defenses include that: (i) MLIC owed no duty to the plaintiffs; (ii) plaintiffs did not rely on any actions of MLIC; (iii) MLIC’s conduct was not the cause of the plaintiffs’ injuries; and (iv) plaintiffs’ exposure occurred after the dangers of asbestos were known. During the course of the litigation, certain trial courts have granted motions dismissing claims against MLIC, while other trial courts have denied MLIC’s motions. There can be no assurance that MLIC will receive favorable decisions on motions in the future. While most cases brought to date have settled, MLIC intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials.

As reported in the 2022 Annual Report, MLIC received approximately 2,610 asbestos-related claims in 2022. For the nine months ended September 30, 2023 and 2022, MLIC received approximately 1,924 and 1,962 new asbestos-related claims, respectively. See Note 21 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report for historical information concerning asbestos claims and MLIC’s update in its recorded liability at December 31, 2022. The number of asbestos cases that may be brought, the aggregate amount of any liability that MLIC

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may incur, and the total amount paid in settlements in any given year are uncertain and may vary significantly from year to year.

The ability of MLIC to estimate its ultimate asbestos exposure is subject to considerable uncertainty, and the conditions impacting its liability can be dynamic and subject to change. The availability of reliable data is limited and it is difficult to predict the numerous variables that can affect liability estimates, including the number of future claims, the cost to resolve claims, the disease mix and severity of disease in pending and future claims, the willingness of courts to allow plaintiffs to pursue claims against MLIC when exposure to asbestos took place after the dangers of asbestos exposure were well known, and the impact of any possible future adverse verdicts and their amounts.

The ability to make estimates regarding ultimate asbestos exposure declines significantly as the estimates relate to years further in the future. In the Company’s judgment, there is a future point after which losses cease to be probable and reasonably estimable. It is reasonably possible that the Company’s total exposure to asbestos claims may be materially greater than the asbestos liability currently accrued and that future charges to income may be necessary, but management does not believe any such charges are likely to have a material effect on the Company’s financial position.

The Company believes adequate provision has been made in its interim condensed consolidated financial statements for all probable and reasonably estimable losses for asbestos-related claims. MLIC’s recorded asbestos liability covers pending claims, claims not yet asserted, and legal defense costs and is based on estimates and includes significant assumptions underlying its analysis.

MLIC reevaluates on a quarterly and annual basis its exposure from asbestos litigation, including studying its claims experience, reviewing external literature regarding asbestos claims experience in the United States, assessing relevant trends impacting asbestos liability and considering numerous variables that can affect its asbestos liability exposure on an overall or per claim basis. Based upon its regular reevaluation of its exposure from asbestos litigation, MLIC has updated its liability analysis for asbestos-related claims through September 30, 2023.

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 Sta te of New York. The Relator originally filed this action under seal in 2010, and the complaint was unsealed on December 19, 2017. The Relator alleges that MetLife, Inc., MLIC, and several other insurance companies violated the Act by filing false unclaimed property reports with the State of New York from 1986 to 2017, to avoid having to escheat the proceeds of more than 25,000 life insurance policies, including policies for which the defendants escheated funds as part of their demutualizations in the late 1990s. The Relator seeks treble damages and other relief. The Appellate Division of the New York State Supreme Court, First Department, reversed the court’s order granting MetLife, Inc. and MLIC’s motion to dismiss and remanded the case to the trial court where the Relator has filed an amended complaint. The Company intends to defend the action vigorously.

Matters Related to Group Annuity Benefits and Assumed Variable Annuity Guarantee Reserves

In 2018, the Company announced that it identified two material weaknesses in its internal control over financial reporting related to the practices and procedures for estimating reserves for certain group annuity benefits and the calculation of reserves associated with certain variable annuity guarantees assumed from the former operating joint venture in Japan. Several regulators have made inquiries into these issues and it is possible that other jurisdictions may pursue similar investigations or inquiries. The Company could be exposed to lawsuits and additional legal actions relating to these issues. 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 $ 2.5 billion and $ 3.4 billion at September 30, 2023 and December 31, 2022, respectively.

Commitments to Fund Partnership Investments, Bank Credit Facilities and Private Corporate Bond Investments

The Company commits to fund partnership investments and to lend funds under bank credit facilities and private corporate bond investments. The amounts of these unfunded commitments were $ 9.0 billion and $ 9.4 billion at September 30, 2023 and December 31, 2022, respectively.

Guarantees

In the normal course of its business, the Company has provided certain indemnities and guarantees to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $ 1 million to $ 329 million, with a cumulative maximum of $ 628 million, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities or guarantees.

In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.

The Company also has minimum fund yield requirements on certain pension funds. Since these guarantees are not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future.

The Company’s recorded liabilities were $ 19 million and $ 20 million at September 30, 2023 and December 31, 2022, respectively, for indemnities and guarantees.

Pending Reinsurance Transaction

As of October 31, 2023, the Company had received all required regulatory approvals for the pending reinsurance transaction with Global Atlantic Financial Group. See Note 1 for further information regarding the transaction.

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