December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Recorded Investment | % of Total | Recorded Investment | % of Total | ||||||||||
(In millions) | (In millions) | ||||||||||||
Loan-to-value ratios: | |||||||||||||
Less than 65% | $ | 11,461 | 92.5 | % | $ | 11,908 | 92.7 | % | |||||
65% to 75% | 729 | 5.9 | 590 | 4.6 | |||||||||
76% to 80% | 84 | 0.7 | 92 | 0.7 | |||||||||
Greater than 80% | 117 | 0.9 | 253 | 2.0 | |||||||||
Total | $ | 12,391 | 100.0 | % | $ | 12,843 | 100.0 | % |
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Recorded Investment | % of Total | Recorded Investment | % of Total | ||||||||||
(In millions) | (In millions) | ||||||||||||
Performance indicators: | |||||||||||||
Performing | $ | 2,693 | 97.1 | % | $ | 929 | 97.0 | % | |||||
Nonperforming | 79 | 2.9 | 29 | 3.0 | |||||||||
Total | $ | 2,772 | 100.0 | % | $ | 958 | 100.0 | % |
Recorded Investment | Estimated Fair Value | % of Total | |||||||||||||||||||||||
Debt Service Coverage Ratios | Total | % of Total | |||||||||||||||||||||||
> 1.20x | 1.00x - 1.20x | < 1.00x | |||||||||||||||||||||||
(In millions) | (In millions) | ||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Loan-to-value ratios: | |||||||||||||||||||||||||
Less than 65% | $ | 30,552 | $ | 614 | $ | 841 | $ | 32,007 | 78.2 | % | $ | 33,519 | 78.9 | % | |||||||||||
65% to 75% | 6,360 | 438 | 149 | 6,947 | 17.0 | 7,039 | 16.6 | ||||||||||||||||||
76% to 80% | 525 | 192 | 189 | 906 | 2.2 | 892 | 2.1 | ||||||||||||||||||
Greater than 80% | 661 | 242 | 163 | 1,066 | 2.6 | 1,006 | 2.4 | ||||||||||||||||||
Total | $ | 38,098 | $ | 1,486 | $ | 1,342 | $ | 40,926 | 100.0 | % | $ | 42,456 | 100.0 | % | |||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Loan-to-value ratios: | |||||||||||||||||||||||||
Less than 65% | $ | 29,839 | $ | 730 | $ | 722 | $ | 31,291 | 77.3 | % | $ | 33,730 | 78.3 | % | |||||||||||
65% to 75% | 5,057 | 672 | 153 | 5,882 | 14.6 | 6,129 | 14.2 | ||||||||||||||||||
76% to 80% | 938 | 131 | 316 | 1,385 | 3.4 | 1,436 | 3.3 | ||||||||||||||||||
Greater than 80% | 1,085 | 552 | 277 | 1,914 | 4.7 | 1,787 | 4.2 | ||||||||||||||||||
Total | $ | 36,919 | $ | 2,085 | $ | 1,468 | $ | 40,472 | 100.0 | % | $ | 43,082 | 100.0 | % |
December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Carrying Amount | Maximum Exposure to Loss (1) | Carrying Amount | Maximum Exposure to Loss (1) | ||||||||||||
(In millions) | |||||||||||||||
Fixed maturity securities AFS: | |||||||||||||||
Structured securities (RMBS, CMBS and ABS) (2) | $ | 67,176 | $ | 67,176 | $ | 72,605 | $ | 72,605 | |||||||
U.S. and foreign corporate | 3,966 | 3,966 | 5,287 | 5,287 | |||||||||||
Other limited partnership interests | 5,041 | 6,994 | 4,436 | 5,908 | |||||||||||
Other invested assets | 1,509 | 1,897 | 1,117 | 1,431 | |||||||||||
FVO and trading securities | 619 | 619 | 563 | 563 | |||||||||||
Mortgage loans | 106 | 106 | 351 | 351 | |||||||||||
Real estate joint ventures | 70 | 71 | 150 | 157 | |||||||||||
Equity securities AFS: | |||||||||||||||
Non-redeemable preferred stock | 35 | 35 | 32 | 32 | |||||||||||
Total | $ | 78,522 | $ | 80,864 | $ | 84,541 | $ | 86,334 |
(1) | The maximum exposure to loss relating to fixed maturity securities AFS, FVO and trading securities and equity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests, mortgage loans and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments of the Company. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $257 million and $318 million at December 31, 2013 and 2012, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. |
(2) | For these variable interests, the Company’s involvement is limited to that of a passive investor. |
December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Total Assets | Total Liabilities | Total Assets | Total Liabilities | ||||||||||||
(In millions) | |||||||||||||||
MRSC (collateral financing arrangement (primarily securities)) (1) | $ | 3,440 | $ | — | $ | 3,439 | $ | — | |||||||
Operating joint venture (2) | 2,095 | 1,777 | — | — | |||||||||||
CSEs (assets (primarily loans) and liabilities (primarily debt)) (3) | 1,630 | 1,457 | 2,730 | 2,545 | |||||||||||
Investments: | |||||||||||||||
Real estate joint ventures (4) | 1,181 | 443 | 11 | 14 | |||||||||||
Other invested assets | 82 | 7 | 85 | — | |||||||||||
FVO and trading securities | 69 | — | 71 | — | |||||||||||
Other limited partnership interests | 61 | — | 356 | 8 | |||||||||||
Total | $ | 8,558 | $ | 3,684 | $ | 6,692 | $ | 2,567 |
(1) | See Note 13 for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement. |
(2) | Assets of the operating joint venture are primarily fixed maturity securities and separate account assets. Liabilities of the operating joint venture are primarily future policy benefits, other policyholder funds and separate account liabilities. The assets and liabilities of the operating joint venture were consolidated in earlier periods; however, as a result of the quarterly reassessment in the first quarter of 2013, it was determined to be a consolidated VIE. |
(3) | The Company consolidates entities that are structured as CMBS and as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of $154 million and $168 million at estimated fair value at December 31, 2013 and 2012, respectively. The long-term debt bears interest primarily at fixed rates ranging from 2.25% to 5.57%, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was $122 million, $163 million and $324 million for the years ended December 31, 2013, 2012 and 2011 respectively. |
(4) | The Company consolidated an open ended core real estate fund formed in the fourth quarter of 2013, which represented the majority of the balances at December 31, 2013. Assets of the real estate fund are a real estate investment trust which holds primarily traditional core income-producing real estate which has associated liabilities that are primarily non-recourse debt secured by certain real estate assets of the fund. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its investment in the real estate fund of $178 million at carrying value at December 31, 2013. The long-term debt bears interest primarily at fixed rates ranging from 1.39% to 4.45%, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was less than $1 million for the year ended December 31, 2013. |