Closed Block

9 Months Ended

Sep. 30, 2025

10. Closed Block

On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“MLIC”) converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC. See Note 10 to the Notes to the Consolidated Financial Statements included in the 2024 Annual Report for further information on the closed block.

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.

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


	September 30, 2025		December 31, 2024
	(In millions)
Closed Block Liabilities
FPBs	$	34,074	$	35,015
Other policy-related balances	292		315
Policyholder dividends payable	157		174
Policyholder dividend obligation	—		—
Current income tax payable	9		6
Other liabilities	1,149		854
Total closed block liabilities	35,681		36,364
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale (“AFS”), at estimated fair value	19,163		18,958
Equity securities, at estimated fair value	5		11
Mortgage loans	5,532		5,720
Policy loans	3,689		3,829
Real estate and REJV	688		659
Other invested assets	372		512
Total investments	29,449		29,689
Cash and cash equivalents	1,140		930
Accrued investment income	370		367
Premiums, reinsurance and other receivables	52		45
Deferred income tax asset	348		470
Total assets designated to the closed block	31,359		31,501
Excess of closed block liabilities over assets designated to the closed block	4,322		4,863
AOCI:
Unrealized investment gains (losses), net of income tax	(670)		(1,256)
Unrealized gains (losses) on derivatives, net of income tax	58		183
Total amounts included in AOCI	(612)		(1,073)
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,710	$	3,790

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(In millions)
Revenues
Premiums	$	202	$	214	$	614	$	648
Net investment income	347		336		1,002		1,021
Net investment gains (losses)	(14)		1		(73)		(19)
Net derivative gains (losses)	5		(1)		(3)		6
Total revenues	540		550		1,540		1,656
Expenses
Policyholder benefits and claims	372		390		1,138		1,209
Policyholder dividends	72		90		245		266
Other expenses	19		21		57		61
Total expenses	463		501		1,440		1,536
Revenues, net of expenses before provision for income tax expense (benefit)	77		49		100		120
Provision for income tax expense (benefit)	15		11		20		26
Revenues, net of expenses and provision for income tax expense (benefit)	$	62	$	38	$	80	$	94

MLIC charges the closed block with federal income taxes, state and local premium taxes and other state or local taxes, as well as asset 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.