CONSIDERACIONES DURANTE EL DISEÑO

Other invested assets is comprised primarily of freestanding derivatives with positive estimated fair values (see Note 9), tax credit and renewable energy partnerships, and leveraged leases.

Leveraged Leases

Investment in leveraged leases consisted of the following at:

December 31, 2013 2012

(In millions) Rental receivables, net . . . $1,491 $ 1,564 Estimated residual values . . . 1,325 1,474 Subtotal . . . 2,816 3,038 Unearned income . . . (870) (1,040)

Investment in leveraged leases, net of non-recourse debt . . . $1,946 $ 1,998 Rental receivables are generally due in periodic installments. The payment periods range from one to 15 years but in certain circumstances can be over 30 years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. The Company generally defines nonperforming rental receivables as those that are 90 days or more past due. At December 31, 2013 and 2012, all rental receivables were performing.

The deferred income tax liability related to leveraged leases was $1.6 billion at both December 31, 2013 and 2012. The components of income from investment in leveraged leases, excluding net investment gains (losses), were as follows:

Years Ended December 31, 2013 2012 2011

(In millions) Income from investment in leveraged leases . . . $82 $57 $125 Less: Income tax expense on leveraged leases . . . 29 20 44 Investment income after income tax from investment in leveraged leases . . . $53 $37 $ 81 Cash Equivalents

The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $3.8 billion and $6.1 billion at December 31, 2013 and 2012, respectively.

Net Unrealized Investment Gains (Losses)

The components of net unrealized investment gains (losses), included in AOCI, were as follows:

Years Ended December 31,

2013 2012 2011

(In millions)

Fixed maturity securities . . . $16,672 $ 33,641 $21,096 Fixed maturity securities with noncredit OTTI losses in AOCI . . . (218) (361) (724)

Total fixed maturity securities . . . 16,454 33,280 20,372 Equity securities . . . 390 97 (167) Derivatives . . . 375 1,274 1,514 Other . . . (73) (30) 72 Subtotal . . . 17,146 34,621 21,791 Amounts allocated from:

Insurance liability loss recognition . . . (898) (6,049) (3,996) DAC and VOBA related to noncredit OTTI losses recognized in AOCI . . . 6 19 47 DAC and VOBA . . . (1,190) (2,485) (1,800) Policyholder dividend obligation . . . (1,771) (3,828) (2,919)

MetLife, Inc.

Notes to the Consolidated Financial Statements — (Continued)

8. Investments (continued)

The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows:

Years Ended December 31,

2013 2012

(In millions) Balance at January 1, . . . $(361) $(724) Noncredit OTTI losses and subsequent changes recognized (1) . . . 60 (29) Securities sold with previous noncredit OTTI loss . . . 149 177 Subsequent changes in estimated fair value . . . (66) 215 Balance at December 31, . . . $(218) $(361)

(1) Noncredit OTTI losses and subsequent changes recognized, net of DAC, were $52 million and ($21) million for the years ended December 31, 2013 and 2012, respectively.

The changes in net unrealized investment gains (losses) were as follows:

Years Ended December 31,

2013 2012 2011

(In millions)

Balance at January 1, . . . $ 14,419 $ 8,674 $ 3,122 Fixed maturity securities on which noncredit OTTI losses have been recognized . . . 143 363 (123) Unrealized investment gains (losses) during the year . . . (17,618) 12,467 14,823 Unrealized investment gains (losses) of subsidiary at the date of disposal . . . — — (105) Unrealized investment gains (losses) relating to:

Insurance liability gain (loss) recognition . . . 5,151 (2,053) (3,406) Insurance liability gain (loss) recognition of subsidiary at the date of disposal . . . — — 82 DAC and VOBA related to noncredit OTTI losses recognized in AOCI . . . (13) (28) 9 DAC and VOBA . . . 1,295 (685) (808) DAC and VOBA of subsidiary at date of disposal . . . — — 11 Policyholder dividend obligation . . . 2,057 (909) (2,043) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI . . . (46) (117) 39 Deferred income tax benefit (expense) . . . 3,017 (3,279) (2,936) Deferred income tax benefit (expense) of subsidiary at date of disposal . . . — — 4 Net unrealized investment gains (losses) . . . 8,405 14,433 8,669 Net unrealized investment gains (losses) attributable to noncontrolling interests . . . 9 (14) 5 Balance at December 31, . . . $ 8,414 $14,419 $ 8,674 Change in net unrealized investment gains (losses) . . . $ (6,014) $ 5,759 $ 5,547 Change in net unrealized investment gains (losses) attributable to noncontrolling interests . . . 9 (14) 5 Change in net unrealized investment gains (losses) attributable to MetLife, Inc. . . $ (6,005) $ 5,745 $ 5,552 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, were in fixed income securities of the Japanese government and its agencies with an estimated fair value of $21.7 billion and $22.4 billion at December 31, 2013 and 2012, respectively. The Company’s investment in fixed maturity and equity securities to counterparties that primarily conduct business in Japan, including Japan government and agency fixed maturity securities, was $26.9 billion and $28.7 billion at December 31, 2013 and 2012, respectively. Securities Lending

Elements of the securities lending program are presented below at:

December 31,

2013 2012

(In millions) Securities on loan: (1)

Amortized cost . . . $27,094 $23,380 Estimated fair value . . . $27,595 $27,077 Cash collateral on deposit from counterparties (2) . . . $28,319 $27,727 Security collateral on deposit from counterparties (3) . . . $ — $ 104 Reinvestment portfolio — estimated fair value . . . $28,481 $28,112

MetLife, Inc.

Notes to the Consolidated Financial Statements — (Continued)

8. Investments (continued)

(1) Included within fixed maturity securities, short-term investments, equity securities and cash and cash equivalents. (2) Included within payables for collateral under securities loaned and other transactions.

(3) Security collateral on deposit from counterparties may not be sold or repledged, unless the counterparty is in default, and is not reflected in the consolidated financial statements.

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 cash and cash equivalents, short- term investments, fixed maturity and equity securities, and FVO and trading securities, and at carrying value for mortgage loans at:

December 31,

2013 2012

(In millions) Invested assets on deposit (regulatory deposits) . . . $ 2,153 $ 2,362 Invested assets held in trust (collateral financing arrangements and reinsurance agreements) . . . 11,004 12,434 Invested assets pledged as collateral (1) . . . 23,770 23,251 Total invested assets on deposit, held in trust and pledged as collateral . . . $36,927 $38,047

(1) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Notes 4 and 12), collateral financing arrangements (see Note 13) and derivative transactions (see Note 9).

In the second quarter of 2013, MetLife, Inc. announced its plans to merge three U.S. based life insurance companies and an offshore reinsurance subsidiary to create one larger U.S. based and U.S. regulated life insurance company (the “Mergers”). The companies to be merged are MICC, MetLife Investors USA Insurance Company (“MLI-USA”) and MetLife Investors Insurance Company (“MLIIC”), each a U.S. insurance company that issues variable annuity products in addition to other products, and Exeter Reassurance Company, Ltd. (“Exeter”), a reinsurance company that mainly reinsures guarantees associated with variable annuity products. MICC, which is expected to be renamed and domiciled in Delaware, will be the surviving entity. In October 2013, Exeter, formerly a Cayman Islands company, was re-domesticated to Delaware. Effective January 1, 2014, following receipt of New York State Department of Financial Services (the “Department of Financial Services”) approval, MICC withdrew its license to issue insurance policies and annuity contracts in New York. Also effective January 1, 2014, MICC reinsured with an affiliate all existing New York insurance policies and annuity contracts that include a separate account feature; on December 31, 2013, MICC deposited investments with an estimated fair market value of $6.3 billion into a custodial account, which became restricted on January 1, 2014, to secure MICC’s remaining New York policyholder liabilities not covered by the reinsurance. The Mergers are expected to occur in the fourth quarter of 2014, subject to regulatory approvals. See Note 12 for information regarding the impact of the re-domestication of Exeter on availability under our credit facilities.

See “— Securities Lending” for securities on loan and Note 7 for investments designated to the closed block. Purchased Credit Impaired Investments

Investments acquired with evidence of credit quality deterioration since origination and for which it is probable at the acquisition date that the Company will be unable to collect all contractually required payments are classified as purchased credit impaired (“PCI”) investments. For each investment, the excess of the cash flows expected to be collected as of the acquisition date over its acquisition date fair value is referred to as the accretable yield and is recognized as net investment income on an effective yield basis. If subsequently, based on current information and events, it is probable that there is a significant increase in cash flows previously expected to be collected or if actual cash flows are significantly greater than cash flows previously expected to be collected, the accretable yield is adjusted prospectively. The excess of the contractually required payments (including interest) as of the acquisition date over the cash flows expected to be collected as of the acquisition date is referred to as the nonaccretable difference, and this amount is not expected to be realized as net investment income. Decreases in cash flows expected to be collected can result in OTTI or the recognition of mortgage loan valuation allowances.

The Company’s PCI investments, by invested asset class, were as follows at:

December 31,

2013 2012 2013 2012

Fixed Maturity Securities Mortgage Loans (In millions)

Outstanding principal and interest balance (1) . . . $5,319 $4,905 $291 $440 Carrying value (2) . . . $4,109 $3,900 $138 $199 (1) Represents the contractually required payments, which is the sum of contractual principal, whether or not currently due, and accrued interest.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (Continued)

8. Investments (continued)

The following table presents information about PCI investments acquired during the periods indicated:

Years Ended December 31,

2013 2012 2013 2012

Fixed Maturity Securities Mortgage Loans (In millions)

Contractually required payments (including interest) . . . $1,872 $2,083 $— $— Cash flows expected to be collected (1) . . . $1,446 $1,524 $— $— Fair value of investments acquired . . . $ 978 $ 991 $— $— (1) Represents undiscounted principal and interest cash flow expectations, at the date of acquisition.

The following table presents activity for the accretable yield on PCI investments:

Years Ended December 31,

2013 2012 2013 2012

Fixed Maturity Securities Mortgage Loans (In millions)

Accretable yield, January 1, . . . $2,665 $2,311 $184 $254 Investments purchased . . . 468 533 — — Accretion recognized in earnings . . . (260) (203) (87) (71) Disposals . . . (152) (102) — — Reclassification (to) from nonaccretable difference . . . 25 126 (23) 1 Accretable yield, December 31, . . . $2,746 $2,665 $ 74 $184 Collectively Significant Equity Method Investments

The Company holds investments in real estate joint ventures, real estate funds and other limited partnership interests consisting of leveraged buy-out funds, hedge funds, private equity funds, joint ventures and other funds. The portion of these investments accounted for under the equity method had a carrying value of $12.1 billion at December 31, 2013. The Company’s maximum exposure to loss related to these equity method investments is limited to the carrying value of these investments plus unfunded commitments of $4.0 billion at December 31, 2013. Except for certain real estate joint ventures, the Company’s investments in real estate funds and other limited partnership interests are generally of a passive nature in that the Company does not participate in the management of the entities.

As described in Note 1, the Company generally records its share of earnings in its equity method investments using a three-month lag methodology and within net investment income. Aggregate net investment income from these equity method investments exceeded 10% of the Company’s consolidated pre-tax income (loss) from continuing operations for two of the three most recent annual periods: 2013 and 2012. The Company is providing the following aggregated summarized financial data for such equity method investments, for the most recent annual periods, in order to provide comparative information. This aggregated summarized financial data does not represent the Company’s proportionate share of the assets, liabilities, or earnings of such entities.

The aggregated summarized financial data presented below reflects the latest available financial information and is as of, and for, the years ended December 31, 2013, 2012 and 2011. Aggregate total assets of these entities totaled $303.4 billion and $285.2 billion at December 31, 2013 and 2012, respectively. Aggregate total liabilities of these entities totaled $29.7 billion and $28.8 billion at December 31, 2013 and 2012, respectively. Aggregate net income (loss) of these entities totaled $26.3 billion, $17.9 billion and $9.7 billion for the years ended December 31, 2013, 2012 and 2011, respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses).

Variable Interest Entities

The Company has invested in certain structured transactions (including CSEs), formed trusts to invest proceeds from certain collateral financing arrangements and has insurance operations that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity.

The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. The Company generally uses a qualitative approach to determine whether it is the primary beneficiary. However, for VIEs that are investment companies or apply measurement principles consistent with those utilized by investment companies, the primary beneficiary is based on a risks and rewards model and is defined as the entity that will absorb a majority of a VIE’s expected losses, receive a majority of a VIE’s expected residual returns if no single entity absorbs a majority of expected losses, or both. The Company reassesses its involvement with VIEs on a quarterly basis. The use of different methodologies, assumptions and inputs in the determination of the primary beneficiary could have a material effect on the amounts presented within the consolidated financial statements.

MetLife, Inc.

Notes to the Consolidated Financial Statements — (Continued)

8. Investments (continued)