METROPOLITAN LIFE INSURANCE CO – 10-Q – Management's Discussion and Analysis of Financial Condition and Results of Operations

Index to Management's Discussion and Analysis of Financial Condition and Results

                                 of Operations

                                                                         Page
       Forward-Looking Statements and Other Financial Information         76
       Business                                                           76
       Summary of Critical Accounting Estimates                           77

       Results of Operations                                              78
       Adopted Accounting Pronouncements                                  82
       Future Adoption of Accounting Pronouncements                       83
       Non-GAAP and Other Financial Disclosures                           83
       Risk Management                                                    83


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Forward-Looking Statements and Other Financial Information

For purposes of this discussion, "MLIC," the "Company," "we," "our" and "us"
refer to Metropolitan Life Insurance Company, a New York corporation
incorporated in 1868, and its subsidiaries. Metropolitan Life Insurance Company
is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its
subsidiaries and affiliates, "MetLife"). Management's narrative analysis of the
Company's results of operations is presented pursuant to General Instruction
H(2)(a) of Form 10-Q. This narrative analysis should be read in conjunction with
Metropolitan Life Insurance Company's Annual Report on Form 10-K for the year
ended December 31, 2021 (the "2021 Annual Report"), the cautionary language
regarding forward-looking statements included below, the "Risk Factors" set
forth in Part II, Item 1A, and the additional risk factors referred to therein,
and the Company's interim condensed consolidated financial statements included
elsewhere herein.

This narrative analysis may contain or incorporate by reference information that
includes or is based upon forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. See "Note Regarding
Forward-Looking Statements" for cautionary language regarding forward-looking
statements.

This narrative analysis includes references to our performance measure, adjusted
earnings, that is not based on accounting principles generally accepted in the
United States of America ("GAAP"). See "- Non-GAAP and Other Financial
Disclosures" for definitions and a discussion of this and other financial
measures, and "- Results of Operations" for reconciliations of historical
non-GAAP financial measures to the most directly comparable GAAP measures.

Business

Overview

MLIC is a provider of insurance, annuities, employee benefits and asset
management. MLIC is organized into two segments: U.S. and MetLife Holdings. In
addition, the Company reports certain of its results of operations in Corporate
& Other. See Note 2 of the Notes to the Interim Condensed Consolidated Financial
Statements for further information on the Company's segments and Corporate &
Other.

COVID-19 Pandemic and Current Market Conditions

We continue to closely monitor developments relating to the COVID-19 pandemic
and assess its impact on our business. We have implemented risk management and
business continuity plans and taken preventive measures and other precautions,
such as employee business travel restrictions and remote work arrangements
which, to date, have enabled us to maintain our critical business processes,
customer service levels, relationships with key vendors, financial reporting
systems, internal control over financial reporting and disclosure controls and
procedures.

The COVID-19 pandemic continues to impact the global economy and financial
markets and has caused volatility in the global equity, credit and real estate
markets. Governments and central banks around the world responded to the
COVID-19 pandemic with unprecedented fiscal and monetary policies, but many of
these stimulus programs have concluded due to global economic recovery and
rising inflation. In the United States, the Board of Governors of the Federal
Reserve System ("Federal Reserve Board") ended its asset purchase program in
March 2022 and began to reduce its holdings on June 1, 2022. The Federal Open
Market Committee has raised interest rates four times in 2022; further increases
in the target range for the federal funds rate are expected throughout 2022 to
combat inflation. During inflationary periods with rising interest rates, the
value of fixed income investments falls which could increase realized and
unrealized losses, resulting in additional deferred tax assets that may not be
realizable.

See "- Results of Operations" for further information regarding the effect of
the COVID-19 pandemic on our businesses.

Regulatory Developments

The following discussion on regulatory developments should be read in
conjunction with "Business - Regulation" in the 2021 Annual Report, as amended
or supplemented here.

Environmental Laws and Regulations

In furtherance of President Biden's Executive Order on Climate-Related Financial
Risk, dated May 20, 2021, the Federal Insurance Office ("FIO") sought public
comment on climate-related financial risks in the insurance industry through
November 2021. The FIO's request for information noted that it will work on
assessing how the insurance sector may mitigate climate change impacts and help
achieve national climate-related goals. The FIO intends to publish a report by
year-end that addresses climate-related issues in the regulation of insurers and
climate related disclosures by insurers.

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On March 21, 2022, the U.S. Securities and Exchange Commission proposed rules
requiring registrants to provide additional climate-related information in their
registration statements and annual reports, including in their financial
statements. The proposal sets forth proposed rules for disclosure of
climate-related risks, material impacts, governance, risk management, financial
statement metrics, greenhouse gas emissions, attestation of emissions
disclosures, and targets and goals.

London Interbank Offered Rate

In March 2022, federal legislation was enacted to address the transition from
U.S. Dollar London Interbank Offered Rate ("LIBOR") to alternative reference
rates for all U.S. law governed contracts with non-existent or inadequate U.S.
Dollar LIBOR fallback provisions. Except with respect to the one-week and
two-month U.S. Dollar LIBOR tenors, the federal legislation supersedes all state
law addressing the U.S. Dollar LIBOR transition, including legislation enacted
in New York in 2021. The implementation of the federal legislation is subject to
regulations to be promulgated by the Federal Reserve Board. We continue to
assess current and alternative reference rates' merits, limitations, risks and
suitability for our investment and insurance processes.

Summary of Critical Accounting Estimates

The preparation of financial statements in conformity with GAAP requires
management to adopt accounting policies and make estimates and assumptions that
affect amounts reported on the Interim Condensed Consolidated Financial
Statements. The most critical estimates include those used in determining:

(i)  liabilities for future policy benefits and the accounting for reinsurance;

(ii) capitalization and amortization of deferred policy acquisition costs
("DAC") and the establishment and amortization of value of business acquired
("VOBA");

(iii) estimated fair values of investments in the absence of quoted market
values;

(iv) investment allowance for credit loss and impairments;

(v) estimated fair values of freestanding derivatives and the recognition and
estimated fair value of embedded derivatives requiring bifurcation;

(vi) measurement of employee benefit plan liabilities;

(vii) measurement of income taxes and the valuation of deferred tax assets; and

(viii) liabilities for litigation and regulatory matters.

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 our business and operations. Actual results could differ from these
estimates.

The Company's critical accounting estimates are described in "Management's
Discussion and Analysis of Financial Condition and Results of Operations -
Summary of Critical Accounting Estimates" and Note 1 of the Notes to the
Consolidated Financial Statements included in the 2021 Annual Report.

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