Answered step by step
Verified Expert Solution
Question
1 Approved Answer
6. Assume the following is a portion of the investments footnote from MetLife's 2016 10-K report. Investment earnings are a crucial component of the financial
6. Assume the following is a portion of the investments footnote from MetLife's 2016 10-K report. Investment earnings are a crucial component of the financial performance of insurance companies such as MetLife, and investments comprise a large part of Metlife's assets. MetLife accounts for its bond investments as available-for-sale securities. Gross Unrealized Gain Loss $ 835 472 439 Cost or Amortized Cost $ 72,339 47,365 33,578 25,643 17,682 11,533 10,080 4,601 912 223,733 193 $223,926 December 31, 2016 (in millions) U.S. corporate securities Residential mortgaged-backed securities Foreign corporate securities U.S. treasury/agency securities Commercial mortgaged-backed securities Asset-backed securities Foreign government securities State and political subdivision securities Other fixed maturity securities Total bonds Redeemed preferred stocks Total fixed maturities 86 207 $2,814 353 1,842 1,401 223 91 1,401 185 17 8,327 2 $8,329 Estimated Fair Value $ 74,318 47,246 34,981 26,958 17,698 11,573 11,446 4,750 888 229,858 192 $230,050 51 35 36 41 2,202 3 $2,205 At what amount does MetLife report its bond investments on its balance sheets for 2016 and what are the net unrealized gains (losses) for 2016? a. $223,926 million, $8,329 million gain b. $230,050 million, $6,124 million gain c. $223,926 million, $6,124 million gain d. $230,050 million, $2,205 million loss
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started