MetLife, Inc. Notes to the Consolidated Financial Statements — (Continued) Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on reinsurance were $2.3 billion and $2.4 billion at December 31, 2012 and 2011, respectively. The deposit liabilities on reinsurance were $45 million and $66 million at December 31, 2012 and 2011, respectively. The amounts in the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: the Company had $13.5 billion of net ceded reinsurance recoverables. Of this total, $10.3 billion, or 76%, were with the Company’s five largest ceded reinsurers, including $3.2 billion of net ceded reinsurance recoverables which were unsecured. The Company has reinsured with an unaffiliated third-party reinsurer, 49.25% of the closed block through a modified coinsurance agreement. The Company accounts for this agreement under the deposit method of accounting. The Company, having the right of offset, has offset the modified coinsurance deposit with the deposit recoverable. The amounts in the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: Years Ended December 31, 2012 2011 2010 (In millions) Premiums: Direct premiums ................................................................................ $38,719 $ 37,185 $ 27,596 Reinsurance assumed ........................................................................... 1,488 1,484 1,377 Reinsurance ceded .............................................................................. (2,232) (2,308) (1,902) Net premiums ................................................................................ $37,975 $ 36,361 $ 27,071 Universal life and investment-type product policy fees: Direct universal life and investment-type product policy fees .............................................. $ 9,216 $ 8,455 $ 6,621 Reinsurance assumed ........................................................................... 155 154 138 Reinsurance ceded .............................................................................. (815) (803) (731) Net universal life and investment-type product policy fees .............................................. $ 8,556 $ 7,806 $ 6,028 Policyholder benefits and claims: Direct policyholder benefits and claims ............................................................... $39,262 $ 37,588 $ 31,402 Reinsurance assumed ........................................................................... 1,167 1,101 1,275 Reinsurance ceded .............................................................................. (2,442) (3,218) (3,490) Net policyholder benefits and claims ............................................................... $37,987 $ 35,471 $ 29,187 Other expenses: Direct other expenses ............................................................................ $17,848 $ 18,672 $ 13,035 Reinsurance assumed ........................................................................... 228 168 116 Reinsurance ceded .............................................................................. (321) (303) (224) Net other expenses ............................................................................ $17,755 $ 18,537 $ 12,927 December 31, 2012 2011 Direct Assumed Ceded Total Balance Sheet Direct Assumed Ceded Total Balance Sheet (In millions) Assets: Premiums, reinsurance and other receivables ....... $ 6,286 $ 548 $14,800 $ 21,634 $ 5,601 $ 641 $16,239 $ 22,481 Deferred policy acquisition costs and value of business acquired .......................... 24,789 92 (120) 24,761 24,412 340 (133) 24,619 Total assets ............................... $ 31,075 $ 640 $14,680 $ 46,395 $ 30,013 $ 981 $16,106 $ 47,100 Liabilities: Future policy benefits ......................... $190,321 $2,031 $ (1) $192,351 $182,304 $1,972 $ (1) $184,275 Policyholder account balances .................. 223,229 2,594 (2) 225,821 214,206 3,494 — 217,700 Other policy-related balances ................... 15,142 313 8 15,463 14,880 339 380 15,599 Other liabilities ............................... 18,925 543 3,024 22,492 25,245 630 5,039 30,914 Total liabilities .............................. $447,617 $5,481 $ 3,029 $456,127 $436,635 $6,435 $ 5,418 $448,488 MetLife, Inc. 112