MetLife, Inc. Notes to the Consolidated Financial Statements — (Continued) December 31, 2012 December 31, 2011 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Temporary Losses OTTI Losses Gains Temporary Losses OTTI Losses (In millions) Fixed Maturity Securities: U.S. corporate .......................... $102,669 $11,887 $ 430 $ — $114,126 $ 98,621 $ 8,544 $1,380 $ — $105,785 Foreign corporate (1) ..................... 61,806 5,654 277 (1) 67,184 61,568 3,789 1,338 1 64,018 Foreign government ...................... 51,967 5,440 71 — 57,336 49,840 3,053 357 — 52,536 U.S. Treasury and agency ................. 41,874 6,104 11 — 47,967 34,132 5,882 2 — 40,012 RMBS ................................ 35,666 2,477 315 349 37,479 42,092 2,281 1,033 703 42,637 CMBS ................................ 18,177 1,009 57 — 19,129 18,565 730 218 8 19,069 ABS .................................. 15,762 404 156 13 15,997 13,018 278 305 12 12,979 State and political subdivision .............. 12,949 2,169 70 — 15,048 11,975 1,416 156 — 13,235 Total fixed maturity securities .............. $340,870 $35,144 $1,387 $361 $374,266 $329,811 $25,973 $4,789 $724 $350,271 Equity Securities: Common .............................. $ 2,034 $ 147 $ 19 $ — $ 2,162 $ 2,219 $ 83 $ 97 $ — $ 2,205 Non-redeemable preferred ................. 804 65 140 — 729 989 31 202 — 818 Total equity securities ................... $ 2,838 $ 212 $ 159 $ — $ 2,891 $ 3,208 $ 114 $ 299 $ — $ 3,023 (1) OTTI losses, as presented above, represent the noncredit portion of OTTI losses that is included in AOCI. OTTI losses include both the initial recognition of noncredit losses, and the effects of subsequent increases and decreases in estimated fair value for those fixed maturity securities that were previously noncredit loss impaired. The noncredit loss component of OTTI losses for foreign corporate securities was in an unrealized gain position of $1 million at December 31, 2012 due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “—Net Unrealized Investment Gains (Losses).” The Company held non-income producing fixed maturity securities with an estimated fair value of $85 million and $62 million with unrealized gains (losses) of $11 million and ($19) million at December 31, 2012 and 2011, respectively. Amortization of the discount or premium on structured securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single class and multi-class mortgage-backed and ABS are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive mortgage-backed and ABS and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other mortgage-backed and ABS, the effective yield is recalculated on a retrospective basis. Maturities of Fixed Maturity Securities Methodology for Amortization of Discount or Premium on Structured Securities Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at: Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. RMBS, CMBS and ABS are shown separately, as they are not due at a single maturity. The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. The unrealized loss amounts include the noncredit component of OTTI loss. MetLife, Inc. 116 December 31, 2012 2011 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (In millions) Due in one year or less ............................................................ $ 24,177 $ 24,394 $ 16,747 $ 16,862 Due after one year through five years ................................................. 66,973 70,759 62,819 64,414 Due after five years through ten years ................................................. 82,376 91,975 82,694 88,036 Due after ten years ............................................................... 97,739 114,533 93,876 106,274 Subtotal....................................................................... 271,265 301,661 256,136 275,586 Structured securities (RMBS, CMBS and ABS) .......................................... 69,605 72,605 73,675 74,685 Total fixed maturity securities ...................................................... $340,870 $374,266 $329,811 $350,271