0000950123-11-046720.txt : 20110506
0000950123-11-046720.hdr.sgml : 20110506
20110506170241
ACCESSION NUMBER: 0000950123-11-046720
CONFORMED SUBMISSION TYPE: 497
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20110506
DATE AS OF CHANGE: 20110506
EFFECTIVENESS DATE: 20110506
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: Metropolitan Life Separate Account UL
CENTRAL INDEX KEY: 0000858997
IRS NUMBER: 135581829
STATE OF INCORPORATION: NY
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 497
SEC ACT: 1933 Act
SEC FILE NUMBER: 333-147508
FILM NUMBER: 11820485
BUSINESS ADDRESS:
STREET 1: METROPOLITAN LIFE INSURANCE COMPANY
STREET 2: 200 PARK AVENUE
CITY: NEW YORK
STATE: NY
ZIP: 10166
BUSINESS PHONE: 2125788717
MAIL ADDRESS:
STREET 1: METROPOLITAN LIFE INSURANCE COMPANY
STREET 2: 200 PARK AVENUE
CITY: NEW YORK
STATE: NY
ZIP: 10166
FORMER COMPANY:
FORMER CONFORMED NAME: METROPOLITAN LIFE SEPARATE ACCOUNT UL
DATE OF NAME CHANGE: 19920703
0000858997
S000004219
Metropolitan Life Separate Account UL
C000058203
Equity Advantage VUL (MetLife)
497
1
y88741a2e497.txt
METROPOLITAN LIFE SEPARATE ACCOUNT UL
METROPOLITAN LIFE INSURANCE COMPANY
METROPOLITAN LIFE SEPARATE ACCOUNT UL
EQUITY ADVANTAGE VUL
SUPPLEMENT DATED MAY 1, 2011 TO THE
PROSPECTUS DATED MAY 1, 2011
If you purchase the Policy pursuant to your right to request a face amount
increase under a Zenith Flexible Life or Zenith Flexible Life 2001 flexible
premium variable universal life insurance policy issued by New England Life
Insurance Company, your Policy will differ from the Policy as described in the
prospectus. The differences are as follows:
1. The minimum face amount required at issue of the Policy will be $25,000
(except that, subject to state law requirements, the minimum face amount of a
Policy issued to the owner of a Zenith Flexible Life policy may be $10,000). You
will have the right to reduce the face amount below $25,000.
2. You will not be subject to the monthly Policy Charge.
3. You will be subject to a reduced monthly Coverage Expense Charge equal
to 75% of the charge that would otherwise be payable under the Policy.
EQUITY ADVANTAGE VUL
Flexible Premium
Variable Life Insurance Policies
Issued by
Metropolitan Life Separate Account UL of
Metropolitan Life Insurance Company
200 Park Avenue
New York, New York 10166
This prospectus offers individual flexible premium variable life insurance
policies (the "Policies") issued by Metropolitan Life Insurance Company
("MetLife").
You allocate net premiums among the Investment Divisions of Metropolitan
Life Separate Account UL (the "Separate Account"). Each Investment Division of
the Separate Account invests in shares of one of the following "Portfolios":
METROPOLITAN SERIES FUND, INC.--CLASS A
Artio International Stock Portfolio
Barclays Capital Aggregate Bond Index Portfolio
BlackRock Aggressive Growth Portfolio
BlackRock Bond Income Portfolio
BlackRock Diversified Portfolio
BlackRock Large Cap Value Portfolio
BlackRock Legacy Large Cap Growth Portfolio
Davis Venture Value Portfolio
FI Value Leaders Portfolio
Jennison Growth Portfolio
Loomis Sayles Small Cap Core Portfolio
Loomis Sayles Small Cap Growth Portfolio
Met/Artisan Mid Cap Value Portfolio
MetLife Conservative Allocation Portfolio
MetLife Conservative to Moderate Allocation Portfolio
MetLife Mid Cap Stock Index Portfolio
MetLife Moderate Allocation Portfolio
MetLife Moderate to Aggressive Allocation Portfolio
MetLife Stock Index Portfolio
MFS(R) Total Return Portfolio
MFS(R) Value Portfolio
Morgan Stanley EAFE(R) Index Portfolio
Neuberger Berman Genesis Portfolio
Neuberger Berman Mid Cap Value Portfolio
Oppenheimer Global Equity Portfolio
Russell 2000(R) Index Portfolio
T. Rowe Price Large Cap Growth Portfolio
T. Rowe Price Small Cap Growth Portfolio
Van Eck Global Natural Resources Portfolio
Western Asset Management Strategic Bond
Opportunities Portfolio
Western Asset Management U.S. Government Portfolio
MET INVESTORS SERIES TRUST--CLASS A (EXCEPT
AS NOTED)
American Funds(R) Balanced Allocation Portfolio--
Class B
American Funds(R) Growth Allocation Portfolio--Class B
American Funds(R) Moderate Allocation Portfolio--
Class B
BlackRock Large Cap Core Portfolio
Clarion Global Real Estate Portfolio
Dreman Small Cap Value Portfolio
Harris Oakmark International Portfolio
Invesco Small Cap Growth Portfolio
Janus Forty Portfolio
Lazard Mid Cap Portfolio
Legg Mason ClearBridge Aggressive Growth Portfolio
Lord Abbett Bond Debenture Portfolio
Met/Franklin Income Portfolio
Met/Franklin Mutual Shares Portfolio
Met/Franklin Templeton Founding Strategy Portfolio
Met/Templeton Growth Portfolio
MetLife Aggressive Strategy Portfolio
MFS(R) Emerging Markets Equity Portfolio
MFS(R) Research International Portfolio
Morgan Stanley Mid Cap Growth Portfolio
Oppenheimer Capital Appreciation Portfolio
PIMCO Inflation Protected Bond Portfolio
PIMCO Total Return Portfolio
RCM Technology Portfolio
SSgA Growth and Income ETF Portfolio
SSgA Growth ETF Portfolio
T. Rowe Price Mid Cap Growth Portfolio
AMERICAN FUNDS INSURANCE SERIES(R)--CLASS 2
American Funds Bond Fund
American Funds Global Small Capitalization Fund
American Funds Growth Fund
American Funds Growth-Income Fund
You may also allocate net premiums to our Fixed Account. Special limits may
apply to Fixed Account transfers and withdrawals.
You receive Fixed Account performance until 20 days after we apply your
initial premium payment to the Policy. Thereafter, we invest the Policy's cash
value according to your instructions.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THESE POLICIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
WE DO NOT GUARANTEE HOW ANY OF THE INVESTMENT DIVISIONS OR PORTFOLIOS WILL
PERFORM. THE POLICIES AND THE PORTFOLIOS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY FINANCIAL INSTITUTION AND ARE NOT FEDERALLY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD
OR ANY OTHER GOVERNMENT AGENCY.
MAY 1, 2011
TABLE OF CONTENTS
PAGE
----
SUMMARY OF BENEFITS AND RISKS.......................................... A-4
Benefits of the Policy............................................ A-4
Risks of the Policy............................................... A-5
Risks of the Portfolios........................................... A-6
FEE TABLES............................................................. A-7
Transaction Fees.................................................. A-7
Periodic Charges Other Than Portfolio Operating Expenses.......... A-9
Annual Portfolio Operating Expenses............................... A-12
HOW THE POLICY WORKS................................................... A-16
THE COMPANY, THE SEPARATE ACCOUNT AND THE PORTFOLIOS................... A-17
The Company....................................................... A-17
The Separate Account.............................................. A-17
The Portfolios.................................................... A-17
Share Classes of the Portfolios................................... A-21
Certain Payments We Receive with Regard to the Portfolios......... A-21
Selection of the Portfolios....................................... A-21
Voting Rights..................................................... A-22
Rights Reserved by MetLife........................................ A-22
THE POLICIES........................................................... A-23
Purchasing a Policy............................................... A-23
Replacing Existing Insurance...................................... A-23
Policy Owner and Beneficiary...................................... A-23
24 Month Conversion Right......................................... A-24
Exchange Right.................................................... A-24
PREMIUMS............................................................... A-24
Flexible Premiums................................................. A-24
Amount Provided for Investment under the Policy................... A-25
Right to Examine Policy........................................... A-25
Allocation of Net Premiums........................................ A-25
RECEIPT OF COMMUNICATIONS AND PAYMENTS AT METLIFE'S DESIGNATED OFFICE.. A-26
Payment of Proceeds............................................... A-27
CASH VALUE............................................................. A-27
DEATH BENEFITS......................................................... A-28
Death Proceeds Payable............................................ A-29
Change in Death Benefit Option.................................... A-29
Increase in Face Amount........................................... A-30
Reduction in Face Amount.......................................... A-30
SURRENDERS AND PARTIAL WITHDRAWALS..................................... A-31
Surrender......................................................... A-31
Partial Withdrawal................................................ A-31
TRANSFERS.............................................................. A-33
Transfer Option................................................... A-33
AUTOMATED INVESTMENT STRATEGIES........................................ A-35
LOANS.................................................................. A-36
LAPSE AND REINSTATEMENT................................................ A-37
Lapse............................................................. A-37
Reinstatement..................................................... A-38
A-2
PAGE
----
ADDITIONAL BENEFITS BY RIDER........................................... A-38
THE FIXED ACCOUNT...................................................... A-39
General Description............................................... A-39
Values and Benefits............................................... A-39
Policy Transactions............................................... A-39
CHARGES................................................................ A-40
Deductions from Premiums.......................................... A-40
Surrender Charge.................................................. A-41
Partial Withdrawal Charge......................................... A-42
Transfer Charge................................................... A-42
Illustration of Benefits Charge................................... A-42
Monthly Deduction from Cash Value................................. A-42
Loan Interest Spread.............................................. A-44
Charges Against the Portfolios and the Investment Divisions of the
Separate Account................................................ A-45
TAX CONSIDERATIONS..................................................... A-45
Introduction...................................................... A-45
Tax Status of the Policy.......................................... A-45
Tax Treatment of Policy Benefits.................................. A-46
MetLife's Income Taxes............................................ A-49
DISTRIBUTION OF THE POLICIES........................................... A-50
LEGAL PROCEEDINGS...................................................... A-52
RESTRICTIONS ON FINANCIAL TRANSACTIONS................................. A-52
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM.......................... A-52
FINANCIAL STATEMENTS................................................... A-52
GLOSSARY............................................................... A-53
APPENDIX A: GUIDELINE PREMIUM TEST AND CASH VALUE ACCUMULATION TEST.... A-54
APPENDIX B: ILLUSTRATIONS OF DEATH BENEFITS, CASH VALUES AND CASH
SURRENDER VALUES..................................................... A-55
A-3
SUMMARY OF BENEFITS AND RISKS
This summary describes the Policy's important benefits and risks. The sections
in the prospectus following this summary discuss the Policy in more detail. THE
GLOSSARY AT THE END OF THE PROSPECTUS DEFINES CERTAIN WORDS AND PHRASES USED IN
THIS PROSPECTUS.
BENEFITS OF THE POLICY
DEATH PROCEEDS. The Policy is designed to provide insurance protection. Upon
receipt of satisfactory proof of the death of the insured, we pay death proceeds
to the beneficiary of the Policy. Death proceeds generally equal the death
benefit on the date of the insured's death plus any additional insurance
provided by rider, less any outstanding loan and accrued loan interest.
CHOICE OF DEATH BENEFIT OPTION. You may choose among three death benefit
options:
-- a level death benefit that equals the Policy's face amount,
-- a variable death benefit that equals the Policy's face amount plus the
Policy's cash value, and
-- a combination variable and level death benefit that equals the Policy's
face amount plus the Policy's cash value until the insured attains age
65 and equals the Policy's face amount thereafter.
The death benefit under any option could increase to satisfy Federal tax law
requirements if the cash value reaches certain levels. After the first Policy
year you may change your death benefit option, subject to our underwriting
rules. A change in death benefit option may have tax consequences.
PREMIUM FLEXIBILITY. You can make premium payments based on a schedule you
determine, subject to some limits. You may change your payment schedule at any
time or make a payment that does not correspond to your schedule. We can,
however, limit or prohibit payments in some situations.
RIGHT TO EXAMINE THE POLICY. During the first ten days following your receipt
of the Policy, you have the right to return the Policy to us. If you exercise
this right, we will refund the premiums you paid.
INVESTMENT OPTIONS. You can allocate your net premiums and cash value among
your choice of sixty-two Investment Divisions in the Separate Account, each of
which corresponds to a mutual fund portfolio, or "Portfolio." The Portfolios
available under the Policy include several common stock funds, including funds
which invest primarily in foreign securities, as well as bond funds, balanced
funds, asset allocation funds and funds that invest in exchange-traded funds.
You may also allocate premiums and cash value to our Fixed Account which
provides guarantees of interest and principal. You may change your allocation of
future premiums at any time.
PARTIAL WITHDRAWALS. You may withdraw cash surrender value from your Policy at
any time after the first Policy anniversary. The minimum amount you may withdraw
is $500. We reserve the right to limit partial withdrawals to no more than 90%
of the Policy's cash surrender value. We may limit the number of partial
withdrawals to 12 per Policy year or impose a processing charge of $25 for each
partial withdrawal. Partial withdrawals may have tax consequences.
TRANSFERS AND AUTOMATED INVESTMENT STRATEGIES. You may transfer your Policy's
cash value among the Investment Divisions or between the Investment Divisions
and the Fixed Account. The minimum amount you may transfer is $50, or if less,
the total amount in the Investment Division or the Fixed Account. We may limit
the number of transfers among the Investment Divisions and the Fixed Account to
no more than four per Policy year. We may impose a processing charge of $25 for
each transfer. We may also impose restrictions on "market timing" transfers.
(See "Transfers" for additional information on such restrictions.) We offer five
automated investment strategies that allow you to periodically transfer or
reallocate your cash value among the Investment Divisions and the Fixed Account.
(See "Automated Investment Strategies.")
LOANS. You may borrow from the cash value of your Policy. The minimum amount
you may borrow is $500. The maximum amount you may borrow is an amount equal to
the Policy's cash value net of the Surrender Charge, reduced by monthly
deductions and interest charges through the next Policy anniversary, increased
by interest credits through the next Policy anniversary, less any existing
Policy loans. We charge you a maximum annual interest rate of 4.0% for the first
ten Policy years and 3.0% thereafter. We credit interest at an annual rate of at
least 3.0% on amounts we hold as collateral to support your loan. Loans may have
tax consequences.
SURRENDERS. You may surrender the Policy for its cash surrender value at any
time. Cash surrender value equals the cash value reduced by any Policy loan and
accrued loan interest and by any applicable Surrender Charge. A surrender may
have tax consequences.
A-4
TAX BENEFITS. We anticipate that the Policy should be deemed to be a life
insurance contract under Federal tax law. Accordingly, undistributed increases
in cash value should not be taxable to you. As long as your Policy is not a
modified endowment contract, partial withdrawals should be non-taxable until you
have withdrawn an amount equal to your total investment in the Policy. Death
benefits paid to your beneficiary should generally be free of Federal income
tax. Death benefits may be subject to estate taxes. Under current Federal income
tax law, the taxable portion of distributions from variable life policies is
taxed at ordinary income tax rates and does not qualify for the reduced tax rate
applicable to long-term capital gains and dividends.
CONVERSION RIGHT. During the first two Policy years, you may convert the Policy
to fixed benefit coverage by exchanging the Policy for a fixed benefit life
insurance policy that we agree to, and that is issued by us or an affiliate that
we name. We will make the exchange without evidence of insurability.
SUPPLEMENTAL BENEFITS AND RIDERS. We offer a variety of riders that provide
supplemental benefits under the Policy. We generally deduct any monthly charges
for these riders as part of the Monthly Deduction. Your registered
representative can help you determine whether any of these riders are suitable
for you.
PERSONALIZED ILLUSTRATIONS. You will receive personalized illustrations in
connection with the purchase of this Policy that reflect your own particular
circumstances. These hypothetical illustrations may help you to understand the
long-term effects of different levels of investment performance, the possibility
of lapse, and the charges and deductions under the Policy. They will also help
you to compare this Policy to other life insurance policies. The personalized
illustrations are based on hypothetical rates of return and are not a
representation or guarantee of investment returns or cash value.
RISKS OF THE POLICY
INVESTMENT RISK. If you invest your Policy's cash value in one or more of the
Investment Divisions, then you will be subject to the risk that investment
performance will be unfavorable and that your cash value will decrease. In
addition, we deduct Policy fees and charges from your Policy's cash value, which
can significantly reduce your Policy's cash value. During times of poor
investment performance, this deduction will have an even greater impact on your
Policy's cash value. It is possible to lose your full investment and your Policy
could lapse without value, unless you pay additional premium. If you allocate
cash value to the Fixed Account, then we credit such cash value with a declared
rate of interest. You assume the risk that the rate may decrease, although it
will never be lower than the guaranteed minimum annual effective rate of 3%.
SURRENDER AND WITHDRAWAL RISKS. The Policies are designed to provide lifetime
insurance protection. They are not offered primarily as an investment, and
should not be used as a short-term savings vehicle. If you surrender the Policy
within the first ten Policy years (or within the first ten Policy years
following a face amount increase), you will be subject to a Surrender Charge as
well as income tax on any gain that is distributed or deemed to be distributed
from the Policy. You will also be subject to a Surrender Charge if you make a
partial withdrawal from the Policy within the first ten Policy years (or the
first ten Policy years following the face amount increase) if the partial
withdrawal reduces the face amount (or the face amount increase). If you
surrender the Policy in the first Policy year (or in the first year following a
face amount increase) we will also deduct an amount equal to the remaining first
year Coverage Expense Charges.
You should purchase the Policy only if you have the financial ability to keep it
in force for a substantial period of time. You should not purchase the Policy if
you intend to surrender all or part of the Policy's cash value in the near
future. Even if you do not ask to surrender your Policy, surrender charges may
play a role in determining whether your Policy will lapse (terminate without
value), because surrender charges determine the cash surrender value, which is a
measure we use to determine whether your Policy will enter the grace period (and
possibly lapse).
RISK OF LAPSE. Your Policy may lapse if you have paid an insufficient amount of
premiums or if the investment experience of the Investment Divisions is poor. If
your cash surrender value is not enough to pay the monthly deduction, your
Policy may enter a 62-day grace period. We will notify you that the Policy will
lapse unless you make a sufficient payment of additional premium during the
grace period. Your Policy generally will not lapse if you pay certain required
premium amounts and you are therefore protected by a Guaranteed Minimum Death
Benefit. If your Policy does lapse, your insurance coverage will terminate,
although you will be given an opportunity to reinstate it. Lapse of a Policy on
which there is an outstanding loan may have adverse tax consequences.
TAX RISKS. We anticipate that the Policy should be deemed to be a life
insurance contract under Federal tax law. However, the rules are not entirely
clear if your Policy is issued on a substandard basis. The death benefit under
the Policy will never be less than the minimum amount required for the Policy to
be treated as life insurance under section
A-5
7702 of the Internal Revenue Code, as in effect on the date the Policy was
issued. If your Policy is not treated as a life insurance contract under Federal
tax law, increases in the Policy's cash value will be taxed currently.
Even if your Policy is treated as a life insurance contract for Federal tax
purposes, it may become a modified endowment contract due to the payment of
excess premiums or unnecessary premiums, due to a material change or due to a
reduction in your death benefit. If your Policy becomes a modified endowment
contract, surrenders, partial withdrawals and loans will be treated as a
distribution of the earnings in the Policy and will be taxable as ordinary
income to the extent thereof. In addition, if the Policy Owner is under age
59 1/2 at the time of the surrender, partial withdrawal or loan, the amount that
is included in income will generally be subject to a 10% penalty tax.
If the Policy is not a modified endowment contract, distributions generally will
be treated first as a return of basis or investment in the contract and then as
taxable income. Moreover, loans will generally not be treated as distributions,
although the tax consequences of loans outstanding after the tenth Policy year
are uncertain. Finally, neither distributions nor loans from a Policy that is
not a modified endowment contract are subject to the 10% penalty tax.
See "Tax Considerations." You should consult a qualified tax adviser for
assistance in all Policy-related tax matters.
LOAN RISKS. A Policy loan, whether or not repaid, will affect the cash value of
your Policy over time because we subtract the amount of the loan from the
Investment Divisions and/or Fixed Account as collateral, and hold it in our Loan
Account. This loan collateral does not participate in the investment experience
of the Investment Divisions or receive any higher current interest rate credited
to the Fixed Account.
We also reduce the amount we pay on the insured's death by the amount of any
outstanding loan and accrued loan interest. Your Policy may lapse if your
outstanding loan and accrued loan interest reduce the cash surrender value to
zero.
If you surrender your Policy or your Policy lapses while there is an outstanding
loan, there will generally be Federal income tax payable on the amount by which
loans and partial withdrawals exceed the premiums paid. Since loans and partial
withdrawals reduce your Policy's cash value, any remaining cash value may be
insufficient to pay the income tax due.
LIMITATIONS ON CASH VALUE IN THE FIXED ACCOUNT. Transfers to and from the Fixed
Account must generally be in amounts of $50 or more. Partial withdrawals from
the Fixed Account must be in amounts of $500 or more. The total amount of
transfers and withdrawals from the Fixed Account in a Policy year may generally
not exceed the greater of 25% of the Policy's cash surrender value in the Fixed
Account at the beginning of the year, or the maximum transfer amount for the
preceding Policy year. We may also limit the number of transfers and partial
withdrawals and may impose a processing charge for transfers and partial
withdrawals. We are not currently imposing the maximum limit on transfers and
withdrawals from the Fixed Account, but we reserve the right to do so.
TAX LAW CHANGES. Tax laws, regulations, and interpretations have often been
changed in the past and such changes continue to be proposed. To the extent that
you purchase a Policy based on expected tax benefits, relative to other
financial or investment products or strategies, there is no certainty that such
advantages will always continue to exist.
RISKS OF THE PORTFOLIOS
A comprehensive discussion of the risks associated with each of the Portfolios
can be found in the Portfolio prospectuses, which you can obtain by calling 1-
800-638-5000. THERE IS NO ASSURANCE THAT ANY OF THE PORTFOLIOS WILL ACHIEVE ITS
STATED INVESTMENT OBJECTIVE.
A-6
FEE TABLES
The following tables describe the fees and expenses that a Policy Owner
will pay when buying, owning and surrendering the Policy. The first table
describes the fees and expenses that a Policy Owner will pay at the time he or
she buys the Policy, surrenders the Policy or transfers cash value among
accounts.
If the amount of a charge varies depending on the Policy Owner's or the
insured's individual characteristics (such as age, sex, or risk class), the
tables below show the minimum and maximum charges we assess under the Policy
across the range of all possible individual characteristics, as well as the
charges for a specified typical Policy Owner or insured. THESE CHARGES MAY NOT
BE REPRESENTATIVE OF THE CHARGES YOU WILL ACTUALLY PAY UNDER THE POLICY. Your
Policy's specifications page will indicate these charges as applicable to your
Policy, and more detailed information concerning your charges is available on
request from our Designated Office. Also, before you purchase the Policy, we
will provide you personalized illustrations of your future benefits under the
Policy based on the insured's age and risk class, the death benefit option, face
amount, planned periodic premiums and riders requested.
TRANSACTION FEES
---------------------------------------------------------------------------------------------------------
MAXIMUM AMOUNT
CHARGE WHEN CHARGE IS DEDUCTED CURRENT AMOUNT DEDUCTED DEDUCTIBLE
---------------------------------------------------------------------------------------------------------
Sales Charge Imposed On payment of premium 2.25% of premiums paid 2.25% of each premium
on Premiums up to the Target Premium paid
per Policy year(1)
---------------------------------------------------------------------------------------------------------
Premium Tax Imposed on On payment of premium 2.0% in all Policy years 2.0% in all Policy years
Premiums
---------------------------------------------------------------------------------------------------------
Federal Tax Imposed on On payment of premium 1.25% in all Policy 1.25% in all Policy
Premiums years years
---------------------------------------------------------------------------------------------------------
(1) The target premium varies based on individual characteristics, including the
insured's issue age, risk class and except for unisex policies, sex.
A-7
---------------------------------------------------------------------------------------------------------
MAXIMUM AMOUNT
CHARGE WHEN CHARGE IS DEDUCTED CURRENT AMOUNT DEDUCTED DEDUCTIBLE
---------------------------------------------------------------------------------------------------------
Surrender Charge(1) On surrender, lapse, or
face amount reduction in
the first ten Policy
years (and, with respect
to a face amount
increase, in the first
ten Policy years after
the increase)
Minimum and Maximum In Policy year 1, $3.75 In Policy year 1, $3.75
Charge to $38.25 per $1,000 of to $38.25 per $1,000 of
base Policy face base Policy face
amount(2) amount(2)
Charge in the first $14.00 per $1,000 of $14.00 per $1,000 of
Policy year for a base Policy face amount base Policy face amount
male insured, age 35,
in the preferred
nonsmoker risk class
with a base Policy
face amount of
$350,000
---------------------------------------------------------------------------------------------------------
Transfer Charge(3) On transfer of cash Not currently charged $25 for each transfer
value among the
Investment Divisions and
to and from the Fixed
Account
---------------------------------------------------------------------------------------------------------
Partial Withdrawal On partial withdrawal of Not currently charged $25 for each partial
Charge cash value withdrawal(4)
---------------------------------------------------------------------------------------------------------
Illustration of On provision of each Not currently charged $25 per illustration
Benefits Charge illustration in excess
of one per year
---------------------------------------------------------------------------------------------------------
(1) The Surrender Charge varies based on individual characteristics, including
the insured's issue age, risk class, sex (except for unisex policies),
smoker status, and the Policy's face amount. The Surrender Charge may not be
representative of the charge that a particular Policy Owner would pay. You
can obtain more information about the Surrender Charge and other charges
that would apply for a particular insured by contacting your registered
representative.
(2) No Surrender Charge will apply on up to 10% of cash surrender value
withdrawn each year. The Surrender Charge will remain level for one to three
Policy years, and will then begin to decline on a monthly basis until it
reaches zero in the last month of the tenth Policy year. The Surrender
Charge applies to requested face amount reductions as well as to face amount
reductions resulting from a change in death benefit option.
(3) The Portfolios in which the Investment Divisions invest may impose a
redemption fee on shares held for a relatively short period.
(4) If imposed, the partial withdrawal charge would be in addition to any
Surrender Charge that is imposed.
A-8
The next table describes the fees and expenses that a Policy Owner will pay
periodically during the time that he or she owns the Policy, not including
Portfolio fees and expenses.
PERIODIC CHARGES OTHER THAN PORTFOLIO OPERATING EXPENSES
---------------------------------------------------------------------------------------------------------
MAXIMUM AMOUNT
CHARGE WHEN CHARGE IS DEDUCTED CURRENT AMOUNT DEDUCTED DEDUCTIBLE
---------------------------------------------------------------------------------------------------------
Cost of Insurance(1)
Minimum and Maximum Monthly $.01 to $83.33 per $.02 to $83.33 per
Charge $1,000 of net amount at $1,000 of net amount at
risk(2) risk(2)
Charge in the first Monthly $.02 per $1,000 of net $.09 per $1,000 of net
Policy year for a amount at risk amount at risk
male insured, age 35,
in the preferred
nonsmoker risk class
with a base Policy
face amount of
$350,000
---------------------------------------------------------------------------------------------------------
Policy Charge(3)
Policy face amount Monthly $12 in Policy year 1 $12 in Policy year 1
less than $50,000 $9 in Policy years 2+ $9 in Policy years 2+
Policy face amount of Monthly $15 in Policy year 1 $15 in Policy year 1
$50,000 or greater $8 in Policy years 2+ $8 in Policy years 2+
but less than
$250,000
---------------------------------------------------------------------------------------------------------
Mortality and Expense Monthly .60% in Policy years .80% in Policy years
Risk Charge (annual 1-10 1-10
rate imposed on cash .35% in Policy years .35% in Policy years
value in the Separate 11-19 11-19
Account)(4) .20% in Policy years .20% in Policy years
20-29 20-29
.05% in Policy years 30+ .05% in Policy years 30+
---------------------------------------------------------------------------------------------------------
Coverage Expense
Charge(5)
Minimum and Monthly $.04 to $2.30 per $1,000 $.04 to $2.30 per $1,000
Maximum Charge of base Policy face of base Policy face
amount in first eight amount
Policy years(6)
Charge for a male Monthly $.16 per $1,000 of base $.16 per $1,000 of base
insured, age 35, in Policy face amount in Policy face amount
the preferred first eight Policy
nonsmoker risk class years(6)
with a base Policy
face amount of
$350,000
---------------------------------------------------------------------------------------------------------
Loan Interest Annually (or on loan 1.00% of loan collateral 1.00% of loan collateral
Spread(7) termination, if earlier) in Policy years 1-10 in Policy years 1-10
---------------------------------------------------------------------------------------------------------
(1) The cost of insurance charge varies based on individual characteristics,
including the Policy's face amount and the insured's age, risk class and,
except for unisex policies, sex. The cost of insurance charge may not be
representative of the charge that a particular Policy Owner would pay. You
can obtain more information about the cost of insurance or other charges
that would apply for a particular insured by contacting your registered
representative.
(2) The net amount at risk is the difference between the death benefit
(generally discounted at the monthly equivalent of 3% per year) and the
Policy's cash value.
(3) No Policy Charge applies to Policies issued with face amounts equal to or
greater than $250,000.
(4) The Mortality and Expense Risk Charge depends on the Policy's net cash
value. The percentages shown in the Current Amount Deducted column apply if
the Policy's net cash value is less than an amount equal to five Target
Premiums. The percentages decrease as the Policy's net cash value, measured
as a multiple of Target Premiums increases. If the Policy's net cash value
is equal to or greater than five but less than ten Target Premiums, the
charge is 0.55% in Policy years 1-10, 0.30% in Policy years 11-19, 0.15% in
Policy years 20-29 and 0.05% thereafter. If the Policy's cash value is equal
to or greater than ten but less than 20 Target Premiums, the charge is 0.30%
in Policy years 1-10, 0.15% in Policy years 11-19, 0.10% in Policy years 20-
29
A-9
and 0.05% thereafter. If the Policy's net cash value is equal to 20 or more
Target Premiums, the charge is 0.15% in Policy years 1-10, 0.10% in Policy
years 11-19, and 0.05% thereafter.
(5) If you surrender the Policy in the first Policy year (or in the first year
following a face amount increase) we will deduct from the surrender proceeds
an amount equal to the Coverage Expense Charges due for the remainder of the
first Policy year (or the first year following the face amount increase). If
the Policy's face amount is reduced in the first year following a face
amount increase, we will deduct from the cash value an amount equal to the
Coverage Expense Charges due for the remainder of the first year following
the face amount increase.
(6) The Coverage Expense Charge is imposed in Policy years 1-8 and, with respect
to a requested face amount increase, during the first eight years following
the increase.
(7) We charge interest on Policy loans at an effective rate of 4.0% per year in
Policy years 1-10 and 3.0% thereafter. Cash value we hold as security for
the loan ("loan collateral") earns interest at an effective rate of not less
than 3.0% per year. The loan interest spread is the difference between these
interest rates.
CHARGES FOR OPTIONAL FEATURES (RIDERS):
---------------------------------------------------------------------------------------------------------
MAXIMUM AMOUNT
CHARGE WHEN CHARGE IS DEDUCTED CURRENT AMOUNT DEDUCTED DEDUCTIBLE
---------------------------------------------------------------------------------------------------------
Guaranteed Survivor
Income Benefit Rider
Minimum and Maximum Monthly $.01 to $1.08 per $1,000 $.01 to $83.33 per
Charge of Eligible Death $1,000 of Eligible Death
Benefit Benefit
Charge for a male Monthly $.02 per $1,000 of $.02 per $1,000 of
insured, age 35, in Eligible Death Benefit Eligible Death Benefit
the preferred
nonsmoker risk class
with an Eligible
Death Benefit of
$350,000
---------------------------------------------------------------------------------------------------------
Children's Term Monthly $.40 per $1,000 of rider $.40 per $1,000 of rider
Insurance Rider face amount face amount
---------------------------------------------------------------------------------------------------------
Waiver of Monthly
Deduction Rider
Minimum and Maximum Monthly $.00 to $61.44 per $100 $.00 to $61.44 per $100
Charge of Monthly Deduction of Monthly Deduction
Charge in the first Monthly $6.30 per $100 of $6.30 per $100 of
Policy year for a Monthly Deduction Monthly Deduction
male insured, age 35,
in the standard
nonsmoker risk class
---------------------------------------------------------------------------------------------------------
Waiver of Specified
Premium Rider
Minimum and Maximum Monthly $.00 to $21.75 per $100 $.00 to $21.75 per $100
Charge of Specified Premium of Specified Premium
Charge in the first Monthly $3.00 per $100 of $3.00 per $100 of
Policy year for a Specified Premium Specified Premium
male insured, age 35,
in the standard
nonsmoker risk class
---------------------------------------------------------------------------------------------------------
Options to Purchase
Additional Insurance
Coverage Rider
Minimum and Maximum Monthly $.02 to $.25 per $1,000 $.02 to $.25 per $1,000
Charge of Option amount of Option amount
Charge for a male Monthly $.03 per $1,000 of $.03 per $1,000 of
insured, age 35, in Option amount Option amount
the preferred
nonsmoker risk class
---------------------------------------------------------------------------------------------------------
A-10
---------------------------------------------------------------------------------------------------------
MAXIMUM AMOUNT
CHARGE WHEN CHARGE IS DEDUCTED CURRENT AMOUNT DEDUCTED DEDUCTIBLE
---------------------------------------------------------------------------------------------------------
Accidental Death
Benefit Rider
Minimum and Maximum Monthly $.00 to $.34 per $1,000 $.00 to $83.33 per
Charge of rider face amount $1,000 of rider face
amount
Charge in the first Monthly $.05 per $1,000 of rider $.08 per $1,000 of rider
Policy year for a face amount face amount
male insured, age
35, in the preferred
nonsmoker risk class
---------------------------------------------------------------------------------------------------------
Guaranteed Minimum
Death Benefit Rider
Minimum and Maximum Monthly $.01 to $.04 per $1,000 $.01 to $83.33 per
Charge of net amount at risk $1,000 of net amount at
risk
Charge for a male Monthly $.01 per $1,000 of net $.01 per $1,000 of net
insured, age 35, in amount at risk amount at risk
the preferred
nonsmoker risk class
---------------------------------------------------------------------------------------------------------
Acceleration of Death At time of benefit Not currently charged One-time fee of $150
Benefit Rider payment
---------------------------------------------------------------------------------------------------------
Overloan Protection At time of exercise One-time fee of 3.5% of One-time fee of 3.5% of
Rider Policy cash value Policy cash value
---------------------------------------------------------------------------------------------------------
A-11
ANNUAL PORTFOLIO OPERATING EXPENSES
The next table describes the Portfolio fees and expenses that a Policy
Owner may pay periodically during the time that he or she owns the Policy. The
table shows the minimum and maximum total operating expenses charged by the
Portfolios for the fiscal year ended December 31, 2010. Expenses of the
Portfolios may be higher or lower in the future. More detail concerning each
Portfolio's fees and expenses is contained in the table that follows and in the
prospectus for each Portfolio.
MINIMUM MAXIMUM
------- -------
Total Annual Portfolio Operating Expenses
(expenses that are deducted from Portfolio
assets, including management fees, distribution
(12b-1) fees and other expenses)................. 0.27% 1.12%
The following table describes the annual operating expenses for each
Portfolio for the year ended December 31, 2010, before and after any applicable
contractual fee waivers and expense reimbursements:
ANNUAL OPERATING EXPENSES
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
CONTRACTUAL
DISTRIBUTION ACQUIRED TOTAL FEE WAIVER NET TOTAL
AND/OR FUND FEES ANNUAL AND/OR ANNUAL
MANAGEMENT SERVICE(12B-1) OTHER AND OPERATING EXPENSE OPERATING
FEE FEES EXPENSES EXPENSES EXPENSES REIMBURSEMENT EXPENSES
---------- -------------- -------- --------- --------- ------------- ---------
METROPOLITAN SERIES FUND, INC. --
CLASS A
Artio International Stock
Portfolio...................... 0.82% -- 0.12% 0.02% 0.96% 0.05% 0.91%(1)
Barclays Capital Aggregate Bond
Index Portfolio................ 0.25% -- 0.03% -- 0.28% 0.01% 0.27%(2)
BlackRock Aggressive Growth
Portfolio...................... 0.73% -- 0.04% -- 0.77% -- 0.77%
BlackRock Bond Income Portfolio.. 0.37% -- 0.03% -- 0.40% 0.03% 0.37%(3)
BlackRock Diversified Portfolio.. 0.46% -- 0.04% -- 0.50% -- 0.50%
BlackRock Large Cap Value
Portfolio...................... 0.63% -- 0.02% -- 0.65% 0.03% 0.62%(4)
BlackRock Legacy Large Cap Growth
Portfolio...................... 0.73% -- 0.04% -- 0.77% 0.02% 0.75%(5)
Davis Venture Value Portfolio.... 0.70% -- 0.03% -- 0.73% 0.05% 0.68%(6)
FI Value Leaders Portfolio....... 0.67% -- 0.06% -- 0.73% -- 0.73%
Jennison Growth Portfolio........ 0.62% -- 0.02% -- 0.64% 0.07% 0.57%(7)
Loomis Sayles Small Cap Core
Portfolio...................... 0.90% -- 0.06% -- 0.96% 0.05% 0.91%(8)
Loomis Sayles Small Cap Growth
Portfolio...................... 0.90% -- 0.17% -- 1.07% 0.05% 1.02%(9)
Met/Artisan Mid Cap Value
Portfolio...................... 0.81% -- 0.03% -- 0.84% -- 0.84%
MetLife Conservative Allocation
Portfolio...................... 0.10% -- 0.01% 0.55% 0.66% 0.01% 0.65%(10)
MetLife Conservative to Moderate
Allocation Portfolio........... 0.08% -- 0.02% 0.61% 0.71% -- 0.71%
MetLife Mid Cap Stock Index
Portfolio...................... 0.25% -- 0.06% 0.01% 0.32% -- 0.32%
MetLife Moderate Allocation
Portfolio...................... 0.06% -- -- 0.66% 0.72% -- 0.72%
MetLife Moderate to Aggressive
Allocation Portfolio........... 0.06% -- 0.01% 0.71% 0.78% -- 0.78%
MetLife Stock Index Portfolio.... 0.25% -- 0.02% -- 0.27% 0.01% 0.26%(2)
MFS(R) Total Return Portfolio.... 0.54% -- 0.04% -- 0.58% -- 0.58%
MFS(R) Value Portfolio........... 0.71% -- 0.02% -- 0.73% 0.11% 0.62%(11)
Morgan Stanley EAFE(R) Index
Portfolio...................... 0.30% -- 0.11% 0.01% 0.42% -- 0.42%
Neuberger Berman Genesis
Portfolio...................... 0.83% -- 0.06% -- 0.89% 0.02% 0.87%(12)
Neuberger Berman Mid Cap Value
Portfolio...................... 0.65% -- 0.05% -- 0.70% -- 0.70%
Oppenheimer Global Equity
Portfolio...................... 0.53% -- 0.08% -- 0.61% -- 0.61%
Russell 2000(R) Index Portfolio.. 0.25% -- 0.07% 0.01% 0.33% -- 0.33%
T. Rowe Price Large Cap Growth
Portfolio...................... 0.60% -- 0.04% -- 0.64% -- 0.64%
T. Rowe Price Small Cap Growth
Portfolio...................... 0.50% -- 0.07% -- 0.57% -- 0.57%
Van Eck Global Natural Resources
Portfolio...................... 0.79% -- 0.05% 0.01% 0.85% -- 0.85%
Western Asset Management
Strategic Bond Opportunities
Portfolio...................... 0.62% -- 0.05% -- 0.67% 0.04% 0.63%(13)
Western Asset Management U.S.
Government Portfolio........... 0.47% -- 0.03% -- 0.50% 0.01% 0.49%(14)
A-12
CONTRACTUAL
DISTRIBUTION ACQUIRED TOTAL FEE WAIVER NET TOTAL
AND/OR FUND FEES ANNUAL AND/OR ANNUAL
MANAGEMENT SERVICE(12B-1) OTHER AND OPERATING EXPENSE OPERATING
FEE FEES EXPENSES EXPENSES EXPENSES REIMBURSEMENT EXPENSES
---------- -------------- -------- --------- --------- ------------- ---------
MET INVESTORS SERIES TRUST
American Funds(R) Balanced
Allocation Portfolio -- Class
B.............................. 0.06% 0.25% 0.02% 0.38% 0.71% -- 0.71%
American Funds(R) Growth
Allocation Portfolio -- Class
B.............................. 0.07% 0.25% 0.02% 0.38% 0.72% -- 0.72%
American Funds(R) Moderate
Allocation Portfolio -- Class
B.............................. 0.07% 0.25% 0.02% 0.37% 0.71% -- 0.71%
BlackRock Large Cap Core
Portfolio -- Class A........... 0.59% -- 0.05% -- 0.64% -- 0.64%
Clarion Global Real Estate
Portfolio -- Class A........... 0.62% -- 0.07% -- 0.69% -- 0.69%
Dreman Small Cap Value
Portfolio -- Class A........... 0.79% -- 0.08% -- 0.87% -- 0.87%
Harris Oakmark International
Portfolio -- Class A........... 0.78% -- 0.07% -- 0.85% 0.01% 0.84%(15)
Invesco Small Cap Growth
Portfolio -- Class A........... 0.85% -- 0.04% -- 0.89% 0.02% 0.87%(16)
Janus Forty Portfolio -- Class
A.............................. 0.63% -- 0.04% -- 0.67% -- 0.67%
Lazard Mid Cap Portfolio -- Class
A.............................. 0.69% -- 0.04% -- 0.73% -- 0.73%
Legg Mason ClearBridge Aggressive
Growth Portfolio -- Class A.... 0.64% -- 0.04% -- 0.68% -- 0.68%
Lord Abbett Bond Debenture
Portfolio -- Class A........... 0.50% -- 0.03% -- 0.53% -- 0.53%
Met/Franklin Income
Portfolio -- Class A........... 0.76% -- 0.09% -- 0.85% 0.09% 0.76%(17)
Met/Franklin Mutual Shares
Portfolio -- Class A........... 0.80% -- 0.08% -- 0.88% -- 0.88%
Met/Franklin Templeton Founding
Strategy Portfolio -- Class A.. 0.05% -- 0.02% 0.81% 0.88% 0.02% 0.86%(18)
Met/Templeton Growth
Portfolio -- Class A........... 0.69% -- 0.13% -- 0.82% 0.02% 0.80%(19)
MetLife Aggressive Strategy
Portfolio -- Class A........... 0.09% -- 0.02% 0.74% 0.85% 0.01% 0.84%(20)
MFS(R) Emerging Markets Equity
Portfolio -- Class A........... 0.94% -- 0.18% -- 1.12% -- 1.12%
MFS(R) Research International
Portfolio -- Class A........... 0.69% -- 0.09% -- 0.78% 0.03% 0.75%(21)
Morgan Stanley Mid Cap Growth
Portfolio -- Class A........... 0.66% -- 0.14% -- 0.80% 0.02% 0.78%(22)
Oppenheimer Capital Appreciation
Portfolio -- Class A........... 0.60% -- 0.06% -- 0.66% -- 0.66%
PIMCO Inflation Protected Bond
Portfolio -- Class A........... 0.47% -- 0.04% -- 0.51% -- 0.51%
PIMCO Total Return Portfolio
-- Class A..................... 0.48% -- 0.03% -- 0.51% -- 0.51%
RCM Technology Portfolio -- Class
A.............................. 0.88% -- 0.09% -- 0.97% -- 0.97%
SSgA Growth and Income ETF
Portfolio -- Class A........... 0.31% -- 0.02% 0.28% 0.61% -- 0.61%
SSgA Growth ETF
Portfolio -- Class A........... 0.33% -- 0.03% 0.27% 0.63% -- 0.63%
T. Rowe Price Mid Cap Growth
Portfolio -- Class A........... 0.75% -- 0.04% -- 0.79% -- 0.79%
AMERICAN FUNDS INSURANCE
SERIES(R) -- CLASS 2
American Funds Bond Fund......... 0.37% 0.25% 0.01% -- 0.63% -- 0.63%
American Funds Global Small
Capitalization Fund............ 0.71% 0.25% 0.04% -- 1.00% -- 1.00%
American Funds Growth Fund....... 0.32% 0.25% 0.02% -- 0.59% -- 0.59%
American Funds Growth-Income
Fund........................... 0.27% 0.25% 0.02% -- 0.54% -- 0.54%
--------
(1) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.78% for the first $900 million of the
Portfolio's average daily net assets, 0.75% for the next $100 million,
0.725% for the next $500 million and 0.70% on amounts over $1.5 billion.
This arrangement may be modified or discontinued prior to April 30, 2012
only with the approval of the Board of Directors of the Portfolio.
A-13
(2) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.245% for the amounts over $500 million but
less than $1 billion, 0.24% for the next $1 billion and 0.235% on amounts
over $2 billion. This arrangement may be modified or discontinued prior to
April 30, 2012 only with the approval of the Board of Directors of the
Portfolio.
(3) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.37% for the first $1 billion of the
Portfolio's average daily net assets, 0.325% for the next $2.4 billion and
0.25% on amounts over $3.4 billion. This arrangement may be modified or
discontinued prior to April 30, 2012 only with the approval of the Board of
Directors of the Portfolio.
(4) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.68% for the first $250 million of the
Portfolio's average daily net assets, 0.625% for the next $500 million,
0.60% for the next $250 million and 0.55% on amounts over $1 billion. This
arrangement may be modified or discontinued prior to April 30, 2012 only
with the approval of the Board of Directors of the Portfolio.
(5) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.705% for the amounts over $300 million but
less than $1 billion. This arrangement may be modified or discontinued prior
to April 30, 2012 only with the approval of the Board of Directors of the
Portfolio.
(6) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.75% for the first $50 million of the
Portfolio's average daily net assets, 0.70% for the next $450 million, 0.65%
for the next $4 billion and 0.625% on amounts over $4.5 billion. This
arrangement may be modified or discontinued prior to April 30, 2012 only
with the approval of the Board of Directors of the Portfolio.
(7) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.65% for the first $300 million of the
Portfolio's average daily net assets, 0.60% for the next $200 million, 0.55%
for the next $500 million, 0.50% for the next $1 billion and 0.47% on
amounts over $2 billion. This arrangement may be modified or discontinued
prior to April 30, 2012 only with the approval of the Board of Directors of
the Portfolio.
(8) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.85% for the first $500 million of the
Portfolio's average daily net assets and 0.80% on amounts over $500 million.
This arrangement may be modified or discontinued prior to April 30, 2012
only with the approval of the Board of Directors of the Portfolio.
(9) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.85% for the first $100 million of the
Portfolio's average daily net assets and 0.80% on amounts over $100 million.
This arrangement may be modified or discontinued prior to April 30, 2012
only with the approval of the Board of Directors of the Portfolio.
(10) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to waive fees or pay all expenses (other than
acquired fund fees and expenses, brokerage costs, taxes, interest and any
extraordinary expenses) so as to limit net operating expenses of the Class
A shares of the Portfolio to 0.10% of average daily net assets. This
arrangement may be modified or discontinued prior to April 30, 2012 only
with the approval of the Board of Directors of the Portfolio.
(11) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.65% for the first $1.25 billion of the
Portfolio's average daily net assets, 0.60% for the next $250 million and
0.50% on amounts over $1.5 billion. This arrangement may be modified or
discontinued prior to April 30, 2012 only with the approval of the Board of
Directors of the Portfolio.
(12) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.825% for the first $500 million of the
Portfolio's average daily net assets. This arrangement may be modified or
discontinued prior to April 30, 2012 only with the approval of the Board of
Directors of the Portfolio.
(13) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.595% for the first $500 million of the
Portfolio's average daily net assets. This arrangement may be modified or
discontinued prior to April 30, 2012 only with the approval of the Board of
Directors of the Portfolio.
(14) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.50% for the amounts over $200 million but
less than $500 million. This arrangement may be modified or discontinued
prior to April 30, 2012 only with the approval of the Board of Directors of
the Portfolio.
(15) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.725% of the Portfolio's average daily net
assets exceeding $1 billion.
A-14
This arrangement may be modified or discontinued prior to April 30, 2012
only with the approval of the Board of Trustees of the Portfolio.
(16) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.83% of the Portfolio's average daily net
assets from $250 million to $500 million. This arrangement may be modified
or discontinued prior to April 30, 2012 only with the approval of the Board
of Trustees of the Portfolio.
(17) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to waive a portion of its management fee reflecting
the difference, if any, between the subadvisory fee payable by MetLife
Advisers, LLC to the Portfolio's subadviser that is calculated based solely
on the assets of the Portfolio and the fee that is calculated when the
Portfolio's assets are aggregated with those of certain other portfolios.
This arrangement may be modified or discontinued prior to April 30, 2012
only with the approval of the Board of Trustees of the Portfolio.
(18) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
to April 30, 2012, to limit its fee and to reimburse expenses to the extent
necessary to limit net operating expenses to 0.05%, excluding 12b-1 fees
and acquired fund fees and expenses. This arrangement may be modified or
discontinued prior to April 30, 2012 only with the approval of the Board of
Trustees of the Portfolio.
(19) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
to April 30, 2012, to limit its fee and to reimburse expenses to the extent
necessary to limit net operating expenses to 0.80%, excluding 12b-1 fees.
This arrangement may be modified or discontinued prior to April 30, 2012
only with the approval of the Board of Trustees of the Portfolio. MetLife
Advisers, LLC has contractually agreed, for the period May 1, 2011 through
April 30, 2012, to waive a portion of the Management Fee reflecting the
difference, if any, between the subadvisory fee payable by the Adviser to
the Subadviser that is calculated based solely on the assets of the
Portfolio and the fee that is calculated when the Portfolio's assets are
aggregated with those of certain other portfolios. This arrangement may be
modified or discontinued prior to April 30, 2012 only with the approval of
the Board of Trustees of the Portfolio.
(20) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
to April 30, 2012, to limit its fee and to reimburse expenses to the extent
necessary to limit net operating expenses to 0.10%, excluding 12b-1 fees
and acquired fund fees and expenses. This arrangement may be modified or
discontinued prior to April 30, 2012 only with the approval of the Board of
Trustees of the Portfolio.
(21) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.55% of the Portfolio's average daily net
assets exceeding $1.5 billion. This arrangement may be modified or
discontinued prior to April 30, 2012 only with the approval of the Board of
Trustees of the Portfolio.
(22) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2011
through April 30, 2012, to reduce the Management Fee for each Class of the
Portfolio to the annual rate of 0.65% of the first $500 million of the
Portfolio's average daily net assets plus 0.625% of such assets over $500
million. This arrangement may be modified or discontinued prior to April
30, 2012 only with the approval of the Board of Trustees of the Portfolio.
Certain Portfolios that have "Acquired Fund Fees and Expenses" are "fund of
funds." Each "fund of funds" Portfolio invests substantially all of its assets
in other portfolios. Because the Portfolio invests in other underlying
portfolios, the Portfolio will bear its pro rata portion of the operating
expenses of the underlying portfolios in which it invests, including the
management fee. See the Portfolio's prospectus for more information.
The fee and expense information regarding the Portfolios was provided by
those Portfolios. The American Funds Insurance Series is not affiliated with
Metropolitan Life Insurance Company. For information concerning compensation
paid for the sale of the Policies, see "Distribution of the Policies."
A-15
HOW THE POLICY WORKS
[FLOW CHART]
PREMIUM PAYMENTS
- Flexible
- Planned premium options
- Guaranteed Minimum Death Benefit premium (5-year, 20-year, or to age 65)
CHARGES FROM PREMIUM PAYMENTS
- Sales Load: 2.25% up to Target Premium per Policy year; (maximum 2.25% on all
premiums)
- Premium Tax Charge: 2.0%
- Charge for Federal Taxes: 1.25%
CASH VALUES
- Net premium payments invested in your choice of Portfolio investments (after
an initial period in the Fixed Account) or the Fixed Account
- The cash value reflects investment experience, interest, premium payments,
policy charges and any distributions from the Policy
- We do not guarantee the cash value invested in the Portfolios
- Any earnings you accumulate are generally free of any current income taxes
- You may change the allocation of future net premiums at any time. You may
transfer funds among Investment Divisions (and to the Fixed Account).
Currently we do not limit the number of Investment Division transfers you can
make in a Policy year (subject to restrictions we impose on "market timing"
transfers).
- We reserve the right to impose a $25 charge on each partial withdrawal and on
each Investment Division transfer (including a transfer between an Investment
Division and the Fixed Account).
- We may limit the amount of transfers from (and in some cases to) the Fixed
Account
LOANS
- You may borrow your cash value
- Loan interest charge is 4.0% in Policy years 1-10 and 3.0% thereafter.
- We transfer loaned funds out of the Fixed Account and the Investment
Divisions into the Loan Account where we credit them with not less than 3.0%
interest.
RETIREMENT BENEFITS
- Fixed settlement options are available for policy proceeds
DEATH BENEFIT
- Level, Variable and combined Level/Variable Death Benefit Options
- Guaranteed not to be less than face amount (less any loan and loan interest)
if the Guaranteed Minimum Death Benefit is in effect.
- On or after age 121, under Options A and C, equal to the greater of (1) the
face amount of the Policy as of the insured's age 121; and (2) the Policy's
cash value. Under Option B, the face amount of the Policy as of the insured's
age 121), plus the Policy's cash value.
- Generally income tax free to named beneficiary; may be subject to estate tax.
DAILY DEDUCTIONS FROM ASSETS OF THE SEPARATE ACCOUNT
- Investment advisory fees and other expenses are deducted from the Portfolio
values
BEGINNING OF MONTH CHARGES
- We deduct the cost of insurance protection (reflecting any substandard risk
rating) from the cash value each month
- Any Rider Charges
- Policy Charge: $15.00 per month first year and $8.00 per month thereafter for
Policies issued with face amounts of $50,000 or greater, but less than
$250,000; $12.00 per month first year and $9.00 per month thereafter for
Policies issued with face amounts of less than $50,000.
- Coverage Expense Charge: Monthly charge imposed on base Policy face amount
that applies during the first eight Policy years or during the first eight
years following a face amount increase (in all years on a guaranteed basis).
- Mortality and Expense Risk Charge applied against the cash value in the
Separate Account at a maximum annual rate of .80% in Policy years 1-10; .35%
in Policy years 11-19; .20% in Policy years 20-29; and .05% thereafter
SURRENDER CHARGE
- Applies on lapse, surrender, face amount reduction, or partial withdrawal or
change in death benefit option that results in face reduction in first ten
Policy years (or in the first ten Policy years following a face amount
increase). Maximum charge applies in up to the first three Policy years.
Thereafter, the charge decreases on a monthly basis over the remaining years
of the surrender charge period.
LIVING BENEFITS
- If policyholder has elected and qualified for benefits for disability and
becomes totally disabled, we will waive the monthly deduction or a specified
amount of monthly premium during the period of disability up to certain
limits.
- You may surrender the Policy at any time for its cash surrender value
- Deferred income taxes, including taxes on certain amounts borrowed, become
payable upon surrender or lapse
- Grace period for lapsing with no value is 62 days from the first date in
which Monthly Deduction was not paid due to insufficient cash value
- Subject to our rules, you may reinstate a lapsed Policy within three years of
date of lapse if it has not been surrendered
A-16
THE COMPANY, THE SEPARATE ACCOUNT
AND THE PORTFOLIOS
THE COMPANY
Metropolitan Life Insurance Company is a wholly-owned subsidiary of
MetLife, Inc., a publicly traded company. Our principal office is located at 200
Park Avenue, New York, New York 10166. MetLife is licensed to sell life
insurance in all states and the District of Columbia, but we only offer the
Policies in New York. We are obligated to pay all benefits under the Policies.
THE SEPARATE ACCOUNT
Metropolitan Life Separate Account UL is the funding vehicle for the
Policies and other variable life insurance policies that we issue. Income and
realized and unrealized capital gains and losses of the Separate Account are
credited to the Separate Account without regard to any of our other income or
capital gains or losses. Although we own the assets of the Separate Account,
applicable law provides that the portion of the Separate Account assets equal to
the reserves and other liabilities of the Separate Account may not be charged
with liabilities that arise out of any other business we conduct. This means
that the assets of the Separate Account are not available to meet the claims of
our general creditors, and may only be used to support the cash values of the
variable life insurance policies issued by the Separate Account. We are
obligated to pay the death benefit under the Policy even if that amount exceeds
the Policy's cash value in the Separate Account. The amount of the death benefit
that exceeds the Policy's cash value in the Separate Account is paid from our
general account. Death benefits paid from the general account are subject to the
financial strength and claims-paying ability of the Company. For other life
insurance policies and annuity contracts that we issue, we pay all amounts owed
under the policies and contracts from the general account. MetLife is regulated
as an insurance company under state law, which generally imposes restrictions on
the amount and type of investments in the general account. However, there is no
guarantee that we will be able to meet our claims-paying obligations. There are
risks to purchasing any insurance product.
THE PORTFOLIOS
Each Investment Division of the Separate Account invests in a corresponding
Portfolio. Each Portfolio is part of an open-end management investment company,
more commonly known as a mutual fund, that serves as an investment vehicle for
variable life insurance and variable annuity separate accounts of various
insurance companies. The mutual funds that offer the Portfolios are the
Metropolitan Series Fund, Inc., the Met Investors Series Trust and the American
Funds Insurance Series. Each of these mutual funds has an investment adviser
responsible for overall management of the fund. Some investment advisers have
contracted with sub-advisers to make the day-to-day investment decisions for the
Portfolios.
The adviser, sub-adviser and investment objective of each Portfolio are as
follows:
METROPOLITAN SERIES FUND, INC. ADVISER: METLIFE ADVISERS, LLC
PORTFOLIO SUB-ADVISER INVESTMENT OBJECTIVE
--------- ----------- --------------------
Artio International Stock Artio Global Management LLC Long-term growth of capital.
Portfolio
Barclays Capital Aggregate MetLife Investment Advisors To equal the performance of
Bond Index Portfolio Company, LLC the Barclays Capital U.S.
Aggregate Bond Index.
BlackRock Aggressive Growth BlackRock Advisors, LLC Maximum capital appreciation.
Portfolio
BlackRock Bond Income BlackRock Advisors, LLC A competitive total return
Portfolio primarily from investing in
fixed-income securities.
BlackRock Diversified BlackRock Advisors, LLC High total return while
Portfolio attempting to limit investment
risk and preserve capital.
A-17
PORTFOLIO SUB-ADVISER INVESTMENT OBJECTIVE
--------- ----------- --------------------
BlackRock Large Cap Value BlackRock Advisors, LLC Long-term growth of capital.
Portfolio
BlackRock Legacy Large Cap BlackRock Advisors, LLC Long-term growth of capital.
Growth Portfolio
Davis Venture Value Portfolio Davis Selected Advisers, Growth of capital.
L.P.(1)
FI Value Leaders Portfolio Pyramis Global Advisors, LLC Long-term growth of capital.
Jennison Growth Portfolio Jennison Associates LLC Long-term growth of capital.
Loomis Sayles Small Cap Core Loomis, Sayles & Company, L.P. Long-term capital growth from
Portfolio investments in common stocks
or other equity securities.
Loomis Sayles Small Cap Growth Loomis Sayles & Company, L.P. Long-term capital growth.
Portfolio
Met/Artisan Mid Cap Value Artisan Partners Limited Long-term capital growth.
Portfolio Partnership
MetLife Conservative N/A A high level of current
Allocation Portfolio income, with growth of capital
as a secondary objective.
MetLife Conservative to N/A A high total return in the
Moderate Allocation form of income and growth of
Portfolio capital, with a greater
emphasis on income.
MetLife Mid Cap Stock Index MetLife Investment Advisors To equal the performance of
Portfolio Company, LLC the Standard & Poor's MidCap
400(R) Composite Stock Price
Index.
MetLife Moderate Allocation N/A A balance between a high level
Portfolio of current income and growth
of capital, with a greater
emphasis on growth of capital.
MetLife Moderate to Aggressive N/A Growth of capital.
Allocation Portfolio
MetLife Stock Index Portfolio MetLife Investment Advisors To equal the performance of
Company, LLC the Standard & Poor's 500(R)
Composite Stock Price Index.
MFS(R) Total Return Portfolio Massachusetts Financial Favorable total return through
Services Company investment in a diversified
portfolio.
MFS(R) Value Portfolio Massachusetts Financial Capital appreciation.
Services Company
Morgan Stanley EAFE(R) Index MetLife Investment Advisors To equal the performance of
Portfolio Company, LLC the MSCI EAFE Index.
Neuberger Berman Genesis Neuberger Berman Management High total return, consisting
Portfolio LLC principally of capital
appreciation.
Neuberger Berman Mid Cap Value Neuberger Berman Management Capital growth.
Portfolio LLC
Oppenheimer Global Equity OppenheimerFunds, Inc. Capital appreciation.
Portfolio
Russell 2000(R) Index MetLife Investment Advisors To equal the performance of
Portfolio Company, LLC the Russell 2000(R) Index.
A-18
PORTFOLIO SUB-ADVISER INVESTMENT OBJECTIVE
--------- ----------- --------------------
T. Rowe Price Large Cap Growth T. Rowe Price Associates, Inc. Long-term growth of capital
Portfolio and, secondarily, dividend
income.
T. Rowe Price Small Cap Growth T. Rowe Price Associates, Inc. Long-term capital growth.
Portfolio
Van Eck Global Natural Van Eck Associates Corporation Long-term capital appreciation
Resources Portfolio with income as a secondary
consideration.
Western Asset Management Western Asset Management To maximize total return
Strategic Bond Opportunities Company consistent with preservation
Portfolio of capital.
Western Asset Management U.S. Western Asset Management To maximize total return
Government Portfolio Company consistent with preservation
of capital and maintenance of
liquidity.
MET INVESTORS SERIES TRUST ADVISER: METLIFE ADVISERS, LLC
PORTFOLIO SUB-ADVISER INVESTMENT OBJECTIVE
--------- ----------- --------------------
American Funds(R) Balanced N/A A balance between a high level
Allocation Portfolio of current income and growth
of capital, with a greater
emphasis on growth of capital.
American Funds(R) Growth N/A Growth of capital.
Allocation Portfolio
American Funds(R) Moderate N/A A high total return in the
Allocation Portfolio form of income and growth of
capital, with a greater
emphasis on income.
BlackRock Large Cap Core BlackRock Advisors, LLC Long-term capital growth.
Portfolio
Clarion Global Real Estate ING Clarion Real Estate Total return through
Portfolio Securities LLC investment in real estate
securities, emphasizing both
capital appreciation and
current income.
Dreman Small Cap Value Dreman Value Management, LLC Capital appreciation.
Portfolio
Harris Oakmark International Harris Associates L.P. Long-term capital
Portfolio appreciation.
Invesco Small Cap Growth Invesco Advisers, Inc. Long-term growth of capital.
Portfolio
Janus Forty Portfolio Janus Capital Management LLC Capital appreciation.
Lazard Mid Cap Portfolio Lazard Asset Management LLC Long-term growth of capital.
Legg Mason ClearBridge ClearBridge Advisors, LLC Capital appreciation.
Aggressive Growth Portfolio
Lord Abbett Bond Debenture Lord, Abbett & Co. LLC High current income and the
Portfolio opportunity for capital
appreciation to produce a high
total return.
Met/Franklin Income Portfolio Franklin Advisers, Inc. To maximize income while
maintaining prospects for
capital appreciation.
Met/Franklin Mutual Shares Franklin Mutual Advisers, LLC Capital appreciation, which
Portfolio may occasionally be short-
term. The Portfolio's
secondary investment objective
is income.
A-19
PORTFOLIO SUB-ADVISER INVESTMENT OBJECTIVE
--------- ----------- --------------------
Met/Franklin Templeton N/A Primarily seeks capital
Founding Strategy Portfolio appreciation and secondarily
seeks income.
Met/Templeton Growth Portfolio Templeton Global Advisors Long-term capital growth.
Limited
MetLife Aggressive Strategy N/A Growth of capital.
Portfolio
MFS(R) Emerging Markets Equity Massachusetts Financial Capital appreciation.
Portfolio Services Company
MFS(R) Research International Massachusetts Financial Capital appreciation.
Portfolio Services Company
Morgan Stanley Mid Cap Growth Morgan Stanley Investment Capital appreciation.
Portfolio Management Inc.
Oppenheimer Capital OppenheimerFunds, Inc. Capital appreciation.
Appreciation Portfolio
PIMCO Inflation Protected Bond Pacific Investment Management Maximum real return,
Portfolio Company LLC consistent with preservation
of capital and prudent
investment management.
PIMCO Total Return Portfolio Pacific Investment Management Maximum total return,
Company LLC consistent with the
preservation of capital and
prudent investment management.
RCM Technology Portfolio RCM Capital Management LLC Capital appreciation; no
consideration is given to
income.
SSgA Growth and Income ETF SSgA Funds Management, Inc. Growth of capital and income.
Portfolio
SSgA Growth ETF Portfolio SSgA Funds Management, Inc. Growth of capital.
T. Rowe Price Mid Cap Growth T. Rowe Price Associates, Inc. Long-term growth of capital.
Portfolio
AMERICAN FUNDS INSURANCE SERIES(R) ADVISER: CAPITAL RESEARCH AND MANAGEMENT
COMPANY
PORTFOLIO SUB-ADVISER INVESTMENT OBJECTIVE
--------- ----------- --------------------
American Funds Bond Fund N/A As high a level of current
income as is consistent with
the preservation of capital.
American Funds Global Small N/A Long-term growth of capital.
Capitalization Fund
American Funds Growth Fund N/A Growth of capital.
American Funds Growth-Income N/A Long-term growth of capital
Fund and income.
--------
(1) Davis Selected Advisers, L.P. may also delegate any of its responsibilities
to Davis Selected Advisers--NY, Inc., a wholly-owned subsidiary.
FOR MORE INFORMATION REGARDING THE PORTFOLIOS AND THEIR INVESTMENT ADVISERS AND
SUB-ADVISERS, SEE THE PORTFOLIO PROSPECTUSES AND THEIR STATEMENTS OF ADDITIONAL
INFORMATION, WHICH YOU CAN OBTAIN BY CALLING 1-800-638-5000.
The Portfolios' investment objectives may not be met. The investment
objectives and policies of certain Portfolios are similar to the investment
objectives and policies of other funds that may be managed by the same
investment adviser or sub-adviser. The investment results of the Portfolios may
be higher or lower than the results of these funds. There is no assurance, and
no representation is made, that the investment results of any of the Portfolios
will be comparable to the investment results of any other fund.
A-20
SHARE CLASSES OF THE PORTFOLIOS
The Portfolios offer various classes of shares, each of which has a
different level of expenses. The prospectuses for the Portfolios may provide
information for share classes that are not available through the Policy. When
you consult the prospectus for any Portfolio, you should be careful to refer to
only the information regarding the class of shares that is available through the
Policy. For the Metropolitan Series Fund, Inc. we offer Class A shares only; for
the Met Investors Series Trust, we offer Class A and Class B shares; and for the
American Funds Insurance Series, we offer Class 2 shares only.
CERTAIN PAYMENTS WE RECEIVE WITH REGARD TO THE PORTFOLIOS
An investment adviser (other than our affiliate MetLife Advisers, LLC) or
subadviser of a Portfolio, or its affiliates, may make payments to us and/or
certain of our affiliates. These payments may be used for a variety of purposes,
including payment for expenses for certain administrative, marketing and support
services with respect to the Policies and, in our role as intermediary, with
respect to the Portfolios. We and our affiliates may profit from these payments.
These payments may be derived, in whole or in part, from the advisory fee
deducted from Portfolio assets. Policy Owners, through their indirect investment
in the Portfolios, bear the costs of these advisory fees (see the Portfolio
prospectuses for more information). The amount of the payments we receive is
based on a percentage of assets of the Portfolio attributable to the Policies
and certain other variable insurance products that we and our affiliates issue.
These percentages differ and some advisers or subadvisers (or other affiliates)
may pay us more than others. These percentages currently range up to 0.50%,
although we do not currently receive any such payments with respect to the
Portfolios offered under the Policies. Additionally, an investment adviser or
subadviser of a Portfolio or its affiliates may provide us with wholesaling
services that assist in the distribution of the Policies and may pay us and/or
certain of our affiliates amounts to participate in sales meetings. These
amounts may be significant and may provide the adviser or subadviser (or their
affiliates) with increased access to persons involved in the distribution of the
Policies.
We and/or certain of our affiliated insurance companies have joint
ownership interests in our affiliated investment adviser MetLife Advisers, LLC,
which is formed as a "limited liability company." Our ownership interests in
MetLife Advisers, LLC entitle us to profit distributions if the adviser makes a
profit with respect to the advisory fees it receives from the Portfolios. We
will benefit accordingly from assets allocated to the Portfolios to the extent
they result in profits to the adviser. (See "Fee Tables--Annual Portfolio
Operating Expenses" for information on the management fees paid by the
Portfolios and the Statement of Additional Information for the Portfolios for
information on the management fees paid by the adviser to the subadvisers.)
Certain Portfolios have adopted a Distribution Plan under Rule 12b-1 of the
Investment Company Act of 1940. A Portfolio's 12b-1 Plan, if any, is described
in more detail in the Portfolio's prospectus. (See "Fee Tables--Annual Portfolio
Expenses" and "Distribution of the Policies.") Any payments we receive pursuant
to those 12b-1 Plans are paid to us or our Distributor. Payments under a
Portfolio's 12b-1 Plan decrease the Portfolio's investment return.
For specific information on the amounts we may receive on account of your
investment in the Portfolios, you may call 1-800-638-5000.
SELECTION OF THE PORTFOLIOS
We select the Portfolios offered through the Policy based on a number of
criteria, including asset class coverage, the strength of the adviser's or
subadviser's reputation and tenure, brand recognition, performance, and the
capability and qualification of each investment firm. Another factor we consider
during the selection process is whether the Portfolio's adviser or subadviser is
one of our affiliates or whether the Portfolio, its adviser, its subadviser(s),
or an affiliate will make payments to us or our affiliates. For additional
information on these arrangements, see "Certain Payments We Receive with Regard
to the Portfolios" above. In this regard, the profit distributions we receive
from our affiliated investment advisers are a component of the total revenue
that we consider in configuring the features and investment choices available in
the variable insurance products that we and our affiliated insurance companies
issue. Since we and our affiliated insurance companies may benefit more from the
allocation of assets to Portfolios advised by our affiliates than those that are
not, we may be more inclined to offer Portfolios advised by our affiliates in
the variable insurance products we issue. We review the Portfolios periodically
and may remove a Portfolio or limit its availability to new premium payments
and/or transfers of cash value if we determine that the Portfolio no longer
meets
A-21
one or more of the selection criteria, and/or if the Portfolio has not attracted
significant allocations from Policy owners. We may include Portfolios based on
recommendations from selling firms. In some cases, the selling firms may receive
payments from the Portfolios they recommend and may benefit accordingly from the
allocation of cash value to such Portfolios.
WE DO NOT PROVIDE ANY INVESTMENT ADVICE AND DO NOT RECOMMEND OR ENDORSE ANY
PARTICULAR PORTFOLIO. YOU BEAR THE RISK OF ANY DECLINE IN THE CASH VALUE OF YOUR
POLICY RESULTING FROM THE PERFORMANCE OF THE PORTFOLIOS YOU HAVE CHOSEN.
We make certain payments to American Funds Distributors, Inc., principal
underwriter for the American Funds Insurance Series. (See "Distribution of the
Policies.")
VOTING RIGHTS
We own the Portfolio shares held in the Separate Account and have the right
to vote those shares at meetings of the Portfolio shareholders. However, to the
extent required by Federal securities law, we will give you, as Policy Owner,
the right to instruct us how to vote the shares that are attributable to your
Policy.
We will determine, as of the record date, if you are entitled to give
voting instructions and the number of shares to which you have a right of
instruction. If we do not receive timely instructions from you, we will vote
your shares for, against, or withhold from voting on, any proposition in the
same proportion as the shares held in that Investment Division for all policies
for which we have received voting instructions. The effect of this proportional
voting is that a small number of Policy Owners may control the outcome of a
vote.
We will vote Portfolio shares held by our general account (or any
unregistered separate account for which voting privileges were not extended) in
the same proportion as the total of (i) shares for which voting instructions
were received and (ii) shares that are voted in proportion to such voting
instructions.
We may disregard voting instructions for changes in the investment policy,
investment adviser or principal underwriter of a Portfolio if required by state
insurance law, or if we (i) reasonably disapprove of the changes and (ii) in the
case of a change in investment policy or investment adviser, make a good faith
determination that the proposed change is prohibited by state authorities or
inconsistent with an Investment Division's investment objectives. If we do
disregard voting instructions, the next semi-annual report to Policy Owners will
include a summary of that action and the reasons for it.
RIGHTS RESERVED BY METLIFE
We and our affiliates may change the voting procedures and vote Portfolio
shares without Policy Owner instructions, if the securities laws change. We also
reserve the right: (1) to add Investment Divisions; (2) to combine Investment
Divisions; (3) to substitute shares of another registered open-end management
investment company, which may have different fees and expenses, for shares of a
Portfolio; (4) to substitute or close an Investment Division to allocations of
premium payments or cash value or both, and to existing investments or the
investment of future premiums, or both, for any class of Policy or Policy Owner,
at any time in our sole discretion; (5) to operate the Separate Account as a
management investment company under the Investment Company Act of 1940 or in any
other form; (6) to deregister the Separate Account under the Investment Company
Act of 1940; (7) to combine it with other Separate Accounts; and (8) to transfer
assets supporting the Policies from one Investment Division to another or from
the Separate Account to other Separate Accounts, or to transfer assets to our
general account as permitted by applicable law. We will exercise these rights in
accordance with applicable law, including approval of Policy Owners if required.
We will notify you if exercise of any of these rights would result in a material
change in the Separate Account or its investments.
We will not make any changes without receiving any necessary approval of
the SEC and the New York Insurance Department. We will notify you of any
changes.
A-22
THE POLICIES
PURCHASING A POLICY
To purchase a Policy, you must submit a completed application and an
initial premium to us at our Designated Office. (See "Receipt of Communications
and Payments at MetLife's Designated Office.") The minimum face amount for the
base Policy is $50,000 unless we consent to a lower amount. For Policies
acquired through a pension or profit sharing plan qualified under Section 401 of
the Internal Revenue Code of 1986, the minimum face amount is $25,000.
The Policies are available for insureds age 85 or younger. We can provide
you with details as to our underwriting standards when you apply for a Policy.
We reserve the right to modify our minimum face amount and underwriting
requirements at any time. We must receive evidence of insurability that
satisfies our underwriting standards before we will issue a Policy. We reserve
the right to reject an application for any reason permitted by law.
We offer other variable life insurance policies that have different death
benefits, policy features, and optional programs. However, these other policies
also have different charges that would affect your Investment Division
performance and cash values. To obtain more information about these other
policies, contact our Designated Office or your registered representative.
REPLACING EXISTING INSURANCE
It may not be in your best interest to surrender, lapse, change, or borrow
from existing life insurance policies or annuity contracts in connection with
the purchase of the Policy. You should compare your existing insurance and the
Policy carefully. You should replace your existing insurance only when you
determine that the Policy is better for you. You may have to pay a surrender
charge on your existing insurance, and the Policy will impose a new surrender
charge period. You should talk to your financial professional or tax adviser to
make sure the exchange will be tax-free. If you surrender your existing policy
for cash and then buy the Policy, you may have to pay a tax, including possibly
a penalty tax, on the surrender. Because we may not issue the Policy until we
have received an initial premium from your existing insurance company, the
issuance of the Policy may be delayed.
POLICY OWNER AND BENEFICIARY
The Policy Owner is named in the application but may be changed from time
to time. While the insured is living and the Policy is in force, the Policy
Owner may exercise all the rights and options described in the Policy, subject
to the terms of any beneficiary designation or assignment of the Policy. These
rights include selecting and changing the beneficiary, changing the owner,
changing the face amount of the Policy and assigning the Policy. At the death of
the Policy Owner who is not the insured, his or her estate will become the
Policy Owner unless a successor Policy Owner has been named. The Policy Owner's
rights (except for rights to payment of benefits) terminate at the death of the
insured.
The beneficiary is also named in the application. You may change the
beneficiary at any time before the death of the insured, unless the beneficiary
designation is irrevocable. The beneficiary has no rights under the Policy until
the death of the insured and must survive the insured in order to receive the
death proceeds. If no named beneficiary survives the insured, we pay proceeds to
the Policy Owner.
A change of Policy Owner or beneficiary is subject to all payments made and
actions taken by us under the Policy before we receive a signed change form. You
can contact your registered representative or our Designated Office for the
procedure to follow.
You may assign (transfer) your rights in the Policy to someone else. An
absolute assignment of the Policy is a change of Policy Owner and beneficiary to
the assignee. A collateral assignment of the Policy does not change the Policy
Owner or beneficiary, but their rights will be subject to the terms of the
assignment. Assignments are subject to all payments made and actions taken by us
under the Policy before we receive a signed copy of the assignment form. We are
not responsible for determining whether or not an assignment is valid. Changing
the Policy Owner or assigning the Policy may have tax consequences. (See "Tax
Considerations" below.)
A-23
24 MONTH CONVERSION RIGHT
GENERAL RIGHT. Generally, during the first two Policy years, or in the
event of a material change in the investment policy of the Separate Account, you
may convert the Policy to fixed benefit coverage by exchanging the Policy for a
fixed benefit life insurance policy agreed to by us and issued by us or an
affiliate that we name provided that you repay any Policy loans and loan
interest, and the Policy has not lapsed. We make the exchange without evidence
of insurability. The new policy will have the same base Policy face amount as
that being exchanged. The new policy will have the same issue age, risk class
and Policy Date as the variable life Policy had.
Contact our Designated Office or your registered representative for more
specific information about the 24 Month Conversion Right. The exchange may
result in a cost or credit to you. On the exchange, you may need to make an
immediate premium payment on the new policy in order to keep it in force.
EXCHANGE RIGHT
At least once each year you have the option to transfer all of your cash
value to the Fixed Account and apply the cash surrender value to a new policy
issued by us or an affiliate which provides paid-up insurance. Paid-up insurance
is permanent insurance with no further premiums due. The face amount of the new
policy of paid-up insurance may be less than the face amount of the Policy.
PREMIUMS
FLEXIBLE PREMIUMS
Subject to the limits described below, you choose the amount and frequency
of premium payments. You select a Planned Premium schedule, which consists of a
first-year premium amount and an amount for subsequent premium payments. This
schedule appears in your Policy. YOUR PLANNED PREMIUMS WILL NOT NECESSARILY KEEP
YOUR POLICY IN FORCE. You may skip Planned Premium payments or make additional
payments. Additional payments could be subject to underwriting. No payment can
be less than $50, except with our consent.
You can pay Planned Premiums on an annual, semi-annual or quarterly
schedule, or on a monthly schedule if payments are drawn directly from your
checking account under our pre-authorized checking arrangement. We will send
premium notices for annual, semi-annual or quarterly Planned Premiums. You may
make payments by check or through our pre-authorized checking arrangement. You
can change your Planned Premium schedule by sending your request to us at our
Designated Office. You may not make premium payments on or after the Policy
anniversary when the insured reaches age 121, except for premiums required
during the grace period.
If any payments under the Policy exceed the "7-pay limit" under Federal tax
law, your Policy will become a modified endowment contract and you may have more
adverse tax consequences with respect to certain distributions than would
otherwise be the case if premium payments did not exceed the "7-pay limit." The
amount of your "7-pay limit" is shown in your Policy illustration and in your
annual Policy statement. If you make a payment that exceeds the "7-pay limit" we
will notify you and give you an opportunity to receive a refund of the excess
premium to prevent your Policy from becoming a modified endowment contract. (See
"Tax Considerations.") In addition, if you have selected the guideline premium
test, Federal tax law limits the amount of premiums that you can pay under the
Policy. You need our consent if, because of tax law requirements, a payment
would increase the Policy's death benefit by more than it would increase cash
value. We may require evidence of insurability before accepting the payment.
We allocate net payments to your Policy's Investment Divisions as of the
date we receive the payments at our Designated Office (or at our Administrative
Office in Tampa, Florida), if they are received before the close of regular
trading on the New York Stock Exchange. Payments received after that time, or on
a day that the New York Stock Exchange is not open, will be allocated to your
Policy's Investment Divisions on the next day that the New York Stock Exchange
is open. (See "Receipt of Communications and Payments at MetLife's Designated
Office.")
Under our current processing, we treat any payment received by us as a
premium payment unless it is clearly marked as a loan repayment.
A-24
AMOUNT PROVIDED FOR INVESTMENT UNDER THE POLICY
INVESTMENT START DATE. Your initial net premium is credited with Fixed
Account interest as of the investment start date. The investment start date is
the later of the Policy Date and the date we first receive a premium payment for
the Policy at our Designated Office. (See "Receipt of Communications and
Payments at MetLife's Designated Office.")
PREMIUM WITH APPLICATION. If you make a premium payment with the
application, unless you request otherwise, the Policy Date is the date the
policy application is approved. Monthly Deductions begin on the Policy Date. You
may only make one premium payment with the application. The minimum amount you
must pay is set forth in the application. If we decline an application, we
refund the premium payment made.
If you make a premium payment with the application, we will cover the
insured under a temporary insurance agreement beginning on the later of the date
the application is signed or on the date of any required medical examination.
(See "Death Benefits.")
PREMIUM ON DELIVERY. If you pay the initial premium upon delivery of the
Policy, unless you request otherwise, the Policy Date and the investment start
date are the date your premium payment is received at our Designated Office.
Monthly Deductions begin on the Policy Date.
BACKDATING. We may sometimes backdate a Policy, if you request, by
assigning a Policy Date earlier than the date the Policy application is
approved. You may wish to backdate so that you can obtain lower cost of
insurance rates, based on a younger insurance age. For a backdated Policy, you
must also pay the minimum premiums due for the period between the Policy Date
and the investment start date. As of the investment start date, we allocate the
net premiums to the Policy, adjusted for monthly Policy charges.
RIGHT TO EXAMINE POLICY
You may cancel the Policy within ten days after you receive it. You may
return the Policy to our Designated Office (see "Receipt of Communications and
Payments at MetLife's Designated Office") or your registered representative.
Insurance coverage ends as soon as you return the Policy (determined by
postmark, if the Policy is mailed). If you cancel the Policy, we refund any
premiums paid.
ALLOCATION OF NET PREMIUMS
We allocate your initial net premium to the Fixed Account as of the
investment start date. We will hold your initial net premium in the Fixed
Account for twenty days, and then we make the allocation among the Investment
Divisions as you choose. You may allocate any whole percentage to an Investment
Division.
You make the initial premium allocation when you apply for a Policy. You
can change the allocation of future premiums at any time thereafter. The change
will be effective for premiums applied on or after the date when we receive your
request. You may request the change by telephone, by written request (which may
be telecopied to us) or over the Internet. (See "Receipt of Communications and
Payments at MetLife's Designated Office.")
When we allocate net premiums to your Policy's Investment Divisions, we
convert them into accumulation units of the Investment Divisions. We determine
the number of accumulation units by dividing the dollar amount of the net
premium by the accumulation unit value. For your initial premium, we use the
accumulation unit value on the investment start date. For subsequent premiums,
we use the accumulation unit value next determined after receipt of the payment.
(See "Cash Value.")
A-25
RECEIPT OF COMMUNICATIONS AND PAYMENTS AT METLIFE'S DESIGNATED OFFICE
We will treat your request for a Policy transaction, or your submission of
a payment, as received by us if we receive a request conforming to our
administrative procedures or a payment at our Designated Office before the close
of regular trading on the New York Stock Exchange on that day (usually 4:00 p.m.
Eastern Time). If we receive it after that time, or if the New York Stock
Exchange is not open that day, then we will treat it as received on the next day
when the New York Stock Exchange is open. These rules apply regardless of the
reason we did not receive your request by the close of regular trading on the
New York Stock Exchange--even if due to our delay (such as a delay in answering
your telephone call).
The Designated Office for premium payments is printed on the billing
statement we mail to you. If you do not have your billing statement you may call
us at 1-800-638-5000 to obtain the address. The address to use depends on
whether you purchase the Policy through a registered representative of one of
our affiliates MetLife Securities, Inc. and New England Securities Corporation,
or through another registered representative. If you purchase the Policy through
a registered representative of one of these two affiliates, premium payments
should be mailed to MetLife, P.O. Box 371351, Pittsburgh, PA 15250-7351. If your
representative is not registered with one of these two affiliates, premium
payments should be mailed to MetLife, P.O. Box 371862, Pittsburgh, PA 15250-
7862. The Designated Office for other transactions is as follows:
Payment Inquiries and MetLife
Correspondence P.O. Box 354
Warwick, RI 02887-0354
Beneficiary and Ownership MetLife
Changes P.O. Box 313
Warwick, RI 02887-0313
Surrenders, Loans, MetLife
Withdrawals and P.O. Box 543
Investment Division Transfers Warwick, RI 02887-0543
Cancellations (Right to Examine MetLife
Policy Period) Free Look Unit
500 Schoolhouse Road
Johnstown, PA 15904
Death Claims MetLife
P.O. Box 353
Warwick, RI 02887-0353
Investment Division Transfers and (800) 638-5000
Other Telephone Transactions and
Inquiries
You may request a cash value transfer or reallocation of future premiums by
written request (which may be telecopied) to us, by telephoning us or over the
Internet (subject to our restrictions on "market timing" transfers). To request
a transfer or reallocation by telephone, you should contact your registered
representative or contact us at 1-800-638-5000. To request a transfer over the
Internet, you may log on to our website at www.metlife.com. We use reasonable
procedures to confirm that instructions communicated by telephone, facsimile or
Internet are genuine. Any telephone, facsimile or Internet instructions that we
reasonably believe to be genuine are your responsibility, including losses
arising from any errors in the communication of instructions. However, because
telephone and Internet transactions may be available to anyone who provides
certain information about you and your Policy, you should protect that
information. We may not be able to verify that you are the person providing
telephone or Internet instructions, or that you have authorized any such person
to act for you.
Telephone, facsimile, and computer systems (including the Internet) may not
always be available. Any telephone, facsimile or computer system, whether it is
yours, your service provider's, your registered representative's, or ours, can
experience outages or slowdowns for a variety of reasons. These outages or
slowdowns may delay or prevent our processing of your request. Although we have
taken precautions to help our systems handle heavy use, we cannot
A-26
promise complete reliability under all circumstances. If you are experiencing
problems, you should make your request by writing to our Designated Office.
If you send your premium payments or transaction requests to an address
other than the one we have designated for receipt of such payments or requests,
we may return the premium payment to you, or there may be a delay in applying
the premium payment or transaction to your Policy.
PAYMENT OF PROCEEDS
We ordinarily pay any cash surrender value, loan value or death benefit
proceeds from the Investment Divisions within seven days after we receive a
request, or satisfactory proof of death of the insured (and any other
information we need to pay the death proceeds). (See "Receipt of Communications
and Payments at MetLife's Designated Office.") However, we may delay payment
(except when a loan is made to pay a premium to us) or transfers from the
Investment Divisions: (i) if the New York Stock Exchange is closed for other
than weekends or holidays, or if trading on the New York Stock Exchange is
restricted as determined by the SEC, (ii) if the SEC by order permits
postponement or determines that an emergency exists that makes payments or
Investment Division transfers impractical, or (iii) at any other time when the
Portfolios or the Separate Account have the legal right to suspend payment.
We may withhold payment of surrender, withdrawal or loan proceeds if any
portion of those proceeds would be derived from a Policy Owner's check that has
not yet cleared (i.e., that could still be dishonored by your banking
institution). We may use telephone, facsimile, Internet or other means of
communications to verify that payment from the Policy Owner's check has been or
will be collected. We will not delay payment longer than necessary for us to
verify that payment has been or will be collected. Policy Owners may avoid the
possibility of delay in the disbursement of proceeds coming from a check that
has not yet cleared by providing us with a certified check.
We will pay the proceeds in one sum, including either by check, by placing
the amount in an account that earns interest, or by any other method of payment
that provides the beneficiary with immediate and full access to the proceeds, or
under other settlement options that we may make available. None of these options
vary with the investment performance of the Separate Account. More detailed
information concerning settlement options is available in the Statement of
Information and on request from our Designated Office. We will pay interest on
the proceeds as required by applicable state law.
Unless otherwise requested and subject to state law, the Policy's death
proceeds will generally be paid to the beneficiary through a settlement option
called the Total Control Account. The Total Control Account is an interest-
bearing account through which the beneficiary has immediate and full access to
the proceeds, with unlimited draft writing privileges. We credit interest to the
account at a rate that will not be less than a guaranteed minimum annual
effective rate. You may also elect to have any Policy surrender proceeds paid
into a Total Control Account established for you.
Assets backing the Total Control Accounts are maintained in our general
account and are subject to the claims of our creditors. We will bear the
investment experience of such assets; however, regardless of the investment
experience of such assets, the interest credited to the Total Control Account
will never fall below the applicable guaranteed minimum annual effective rate.
Because we bear the investment experience of the assets backing the Total
Control Accounts, we may receive a profit from these assets. The Total Control
Account is not insured by the FDIC or any other governmental agency.
CASH VALUE
Your Policy's total cash value includes its cash value in the Separate
Account and in the Fixed Account. If you have a Policy loan, the cash value also
includes the amount we hold in the Loan Account as a result of the loan. The
cash value reflects:
-- net premium payments
-- the net investment experience of the Policy's Investment Divisions
-- interest credited to cash value in the Fixed Account
-- interest credited to amounts held in the Loan Account for a Policy loan
-- the death benefit option you choose
A-27
-- Policy charges
-- partial withdrawals
-- transfers among the Investment Divisions and the Fixed Account.
The Policy's total cash value in the Separate Account equals the number of
accumulation units credited in each Investment Division multiplied by that
Investment Division's accumulation unit value. We convert any premium, interest
earned on loan cash value, or cash value allocated to an Investment Division
into accumulation units of the Investment Division. Surrenders, partial
withdrawals, Policy loans, transfers and charges deducted from the cash value
reduce the number of accumulation units credited in an Investment Division. We
determine the number of accumulation units by dividing the dollar amount of the
transaction by the Investment Division's accumulation unit value next determined
following the transaction. (In the case of an initial premium, we use the
accumulation unit value on the investment start date).
The accumulation unit value of an Investment Division depends on the net
investment experience of its corresponding Portfolio and reflects fees and
expenses of the Portfolio. We determine the accumulation unit value as of the
close of regular trading on the New York Stock Exchange on each day that the
Exchange is open for trading by multiplying the most recent accumulation unit
value by the net investment factor ("NIF") for that day (see below).
The NIF for an Investment Division reflects:
-- the change in net asset value per share of the corresponding Portfolio
(as of the close of regular trading on the Exchange) from its last
value,
-- the amount of dividends or other distributions from the Portfolio since
the last determination of net asset value per share, and
-- any deductions for taxes that we make from the Separate Account.
The NIF can be greater or less than one.
DEATH BENEFITS
If the insured dies while the Policy is in force, we pay a death benefit to
the beneficiary. Coverage under the Policy generally begins when you pay the
initial premium. If you make a premium payment with the application, we will
cover the insured under a temporary insurance agreement for a limited time that
begins on the later of the date we receive the premium payment or the date of
any required medical examination. Temporary coverage is not available for
proposed insureds who have received medical treatment for, or been diagnosed as
having, certain conditions or diseases specified in the temporary insurance
agreement. The maximum temporary coverage is the lesser of the amount of
insurance applied for and $1,000,000.
DEATH BENEFIT OPTIONS. When you apply for a Policy, you must choose among
three death benefit options. If you fail to select a death benefit option in the
application, we will seek the required information from you.
The Option A death benefit is equal to the face amount of the Policy. The
Option A death benefit is fixed, subject to increases required by the Internal
Revenue Code of 1986 (the "Code").
The Option B death benefit is equal to the face amount of the Policy, plus
the Policy's cash value, if any. The Option B death benefit is also subject to
increases required by the Code.
The Option C death benefit (available if the insured is age 60 or younger)
is equal to the face amount of the Policy plus the Policy's cash value until the
insured attains age 65, at which time we will increase the Policy's face amount
by the amount of the Policy's cash value and thereafter the death benefit will
remain level, at the increased face amount, subject to increases required by the
Code.
CHOICE OF TAX TEST. The Internal Revenue Code requires the Policy's death
benefit to be not less than an amount defined in the Code. As a result, if the
cash value grows to certain levels, the death benefit increases to satisfy tax
law requirements.
A-28
When you apply for your Policy, you select which tax test will apply to the
death benefit. You will choose between: (1) the guideline premium test, and (2)
the cash value accumulation test. The test you choose at issue cannot be
changed.
Under the GUIDELINE PREMIUM TEST, the death benefit will not be less than
the cash value times the guideline premium factor. See Appendix A.
Under the CASH VALUE ACCUMULATION TEST, the death benefit will not be less
than the cash value times the net single premium factor set by the Code. Net
single premium factors are based on the age, smoking status, risk class and sex
of the insured at the time of the calculation. Sample net single premium factors
appear in Appendix A.
If cash value growth in the later Policy years is your main objective, the
guideline premium test may be the appropriate choice because it does not require
as high a death benefit as the cash value accumulation test, and therefore cost
of insurance charges may be lower once the Policy's death benefit is subject to
increases required by the Code. If you select the cash value accumulation test,
you can generally make a higher amount of premium payments for any given face
amount, and a higher death benefit may result in the long term. If cash value
growth in the early Policy years is your main objective, the cash value
accumulation test may be the appropriate choice because it allows you to invest
more premiums in the Policy for each dollar of death benefit.
AGE 121. The death benefit payable under Option A or Option C on or after
the insured's attained age 121 will be the greater of:
-- 101% of the cash value on the date of death, or
-- the face amount of the base Policy on the Policy anniversary at the
insured's attained age 121.
The death benefit payable under Option B on or after the insured's attained
age 121 will be the face amount of the base Policy on the Policy anniversary at
the insured's attained age 121, plus the cash value on the date of death.
The tax consequences of keeping the Policy in force beyond the insured's
attained age 121 are unclear.
DEATH PROCEEDS PAYABLE
The death proceeds we pay are equal to the death benefit on the date of the
insured's death, reduced by any outstanding loan and accrued loan interest on
that date. If death occurs during the grace period, we reduce the proceeds by
the amount of unpaid Monthly Deductions. (See "Lapse and Reinstatement.") We
increase the death proceeds (1) by any rider benefits payable and (2) by any
cost of insurance charge made for a period beyond the date of death. Riders that
can have an effect on the amount of death proceeds payable are the Accelerated
Death Benefit Rider, the Accidental Death Benefit Rider and the Options to
Purchase Additional Insurance Coverage Rider. (See "Additional Benefits by
Rider.")
We may adjust the death proceeds if the insured's age or sex was misstated
in the application, if death results from the insured's suicide within two years
from the Policy's date of issue, or if a rider limits the death benefit.
SUICIDE. If the insured commits suicide within two years from the date of
issue, the death benefit will be limited to premiums paid less any partial
withdrawals, less any loan and loan interest outstanding on the date of death.
If the insured commits suicide within two years after the effective date of an
increase in face amount, the death benefit for such increase will be limited to
the Monthly Deductions for the increase.
CHANGE IN DEATH BENEFIT OPTION
After the first Policy year you may change your death benefit option,
subject to our underwriting rules, by written request to our Designated Office.
The change will be effective on the monthly anniversary on or following the date
we approve your request. We may require proof of insurability. A change in death
benefit option may have tax consequences.
If you change from Option A (or from Option C after the insured's attained
age 65) to Option B (or to Option C on or before the insured's attained age 60),
we reduce the Policy's face amount if necessary so that the death benefit is the
same immediately before and after the change. A face amount reduction below
$50,000 requires our consent. If we
A-29
reduce the face amount, we will first reduce any prior increases in face amount
that you applied for, in the reverse order in which the increases occurred, then
any remaining initial face amount, and then any increase in face amount from a
prior change in death benefit option, but not below the Policy minimum. A
partial withdrawal of cash value may be necessary to meet Federal tax law limits
on the amount of premiums that you can pay into the Policy. A Surrender Charge
may apply to a Policy face amount reduction or partial withdrawal that reduces
the face amount on a change from Option A (or from Option C after the insured's
attained age 65) to Option B (or to Option C on or before the insured's attained
age 60). (See "Surrender Charge.") In addition, if the face amount reduction
occurs within 12 months after a face amount increase, we will deduct a
proportionate part of the Coverage Expense Charges due with respect to the face
amount increase for the remainder of the 12-month period.
If you change from Option B (or from Option C on or before the insured's
attained age 65) to Option A, we increase the Policy's face amount, if
necessary, so that the death benefit is the same immediately before and after
the change. The increase in face amount is not subject to the Coverage Expense
Charge and will not be subject to any Surrender Charge.
INCREASE IN FACE AMOUNT
You may increase the Policy's face amount. We require satisfactory evidence
of insurability, and the insured's attained age must be 85 or less. The minimum
amount of increase permitted is $5,000. The increase is effective on the monthly
anniversary on or next following our approval of your request. Requests for face
amount increases should be submitted to our Designated Office. An increase in
face amount may have tax consequences.
The face amount increase will have its own Target Premium, as well as its
own Surrender Charge, current cost of insurance rates, Coverage Expense Charge,
and Right to Examine Policy and suicide and contestability periods as if it were
a new Policy. (See "Surrender Charge", "Monthly Deduction from Cash Value",
"Partial Withdrawal" and "Reduction in Face Amount.") When calculating the
monthly cost of insurance charge, we attribute the Policy's cash value first to
any remaining initial face amount (including any increase in face amount from a
prior change in death benefit option), then to any face amount increases in the
order in which they were issued, for purposes of determining the net amount at
risk.
We reserve the right to (i) restrict certain Policy changes, such as death
benefit increases, or (ii) require the issuance of a new Policy in connection
with such Policy changes if we deem it administratively necessary or prudent to
do so in order to comply with applicable law, including applicable Federal
income tax law.
REDUCTION IN FACE AMOUNT
After the first Policy year, you may reduce the face amount of your Policy
without receiving a distribution of any Policy cash value. If you reduce the
face amount of your Policy, we deduct any Surrender Charge that applies from the
Policy's cash value in proportion to the amount of the face amount reduction. If
the face amount of your Policy is reduced in the first year following a face
amount increase, we will also deduct a proportionate part of the Coverage
Expense Charges due for the remainder of the first year following the face
amount increase.
A face amount reduction will decrease the Policy's death benefit unless we
are increasing the death benefit to satisfy Federal income tax laws, in which
case a face amount reduction will not decrease the death benefit unless we
deduct a Surrender Charge from the cash value. A reduction in face amount in
this situation may not be advisable. The amount of any face reduction must be at
least $5,000, and the face amount remaining after a reduction must meet our
minimum face amount requirements for issue, except with our consent.
If you choose to reduce your Policy's face amount, unless you request
otherwise, we will first decrease any prior increases in base Policy face amount
that you applied for, in the reverse order in which the increases occurred, then
any remaining initial base Policy face amount, and then any increase in face
amount from a prior change in death benefit option.
A reduction in face amount reduces the Federal tax law limits on the amount
of premiums that you can pay under the Policy under the guideline premium test.
In these cases, a portion of the Policy's cash value may have to be paid to you
to comply with Federal tax law.
A-30
A face amount reduction takes effect on the monthly anniversary on or next
following the date we receive your request. You can contact your registered
representative or the Designated Office for information on face amount reduction
procedures.
A reduction in the face amount of a Policy may create a modified endowment
contract or have other adverse tax consequences. If you are contemplating a
reduction in face amount, you should consult your tax adviser regarding the tax
consequences of the transaction. (See "Tax Considerations.")
SURRENDERS AND PARTIAL WITHDRAWALS
SURRENDER
You may surrender the Policy for its cash surrender value at any time while
the insured is living. We determine the cash surrender value as of the date when
we receive the surrender request. (See "Receipt of Communications and Payments
at MetLife's Designated Office.") The cash surrender value equals the cash value
reduced by any Policy loan and accrued interest and by any applicable Surrender
Charge. (See "Surrender Charge.") If you surrender the Policy in the first
Policy year (or in the first year following a face amount increase), we will
also deduct an amount equal to the remaining first year Coverage Expense
Charges. We reserve the right to also deduct an amount equal to the remaining
first year Policy Charges.
If you surrender the Policy, coverage will terminate on the monthly
anniversary on or next following the date of surrender. If the insured dies on
or after the surrender date, but before the termination date, we will reverse
the surrender and will pay the Policy's death benefit to the beneficiary, but we
will deduct from the death proceeds an amount equal to the cash surrender value
paid to you.
You may apply all or part of the surrender proceeds to a payment option.
Once a Policy is surrendered, all coverage and benefits cease and cannot be
reinstated. A surrender may result in adverse tax consequences. (See "Tax
Considerations" below.)
The Policies are designed to be long-term investments. As a result, you
should be aware that if you surrender your Policy in the first Policy year, the
Surrender Charge is likely to exceed the cash value of your Policy and you will
receive no proceeds upon surrender.
PARTIAL WITHDRAWAL
After the first Policy anniversary you may withdraw a portion of the
Policy's cash surrender value. A partial withdrawal reduces the Policy's death
benefit and may reduce the Policy's face amount if necessary so that the amount
at risk under the Policy will not increase. A partial withdrawal may also reduce
rider benefits. The minimum amount of a partial withdrawal request must be $500.
We have the right to limit partial withdrawals to no more than 90% of the
cash surrender value. In addition, a partial withdrawal will be limited by any
restriction that we currently impose on withdrawals from the Fixed Account. (See
"The Fixed Account.") Currently, we permit partial withdrawals equal to the
lesser of 100% of the Policy's cash surrender value in the Separate Account as
of the beginning of the year, or the maximum amount that can be withdrawn
without causing the Policy's face amount to fall below the minimum permitted.
(However, we may allow the face amount to fall below the minimum if the Policy
has been in force for at least 15 years and the insured's attained age is
greater than 55.) You may not make a partial withdrawal that would reduce your
cash surrender value to less than the amount of two monthly deductions. We have
the right to limit partial withdrawals to 12 per Policy year. Currently we do
not limit the number of partial withdrawals. We reserve the right to impose a
charge of $25 on each partial withdrawal.
If a partial withdrawal reduces your Policy's face amount, the amount of
the Surrender Charge that will be deducted from your cash value is an amount
that is proportional to the amount of the face reduction. The amount deducted
will reduce the remaining Surrender Charge payable under the Policy. No
Surrender Charge will apply on up to 10% of the cash surrender value withdrawn
each year, measured as a percentage of each withdrawal.
A-31
EXAMPLE. The following example assumes that a Policy Owner withdraws, in the
first month of the second Policy year, 20% of the cash surrender value of a
Policy. The insured under the Policy is assumed to be the representative insured
shown in the fee table on page A-8 of the prospectus. As shown in the fee table,
the Surrender Charge for that insured is $14.00 per $1,000 of Policy face
amount. The Policy is assumed to have the other characteristics shown below:
Face Amount:............. $ 350,000
Death Benefit Option:.... Option A -- Level
Cash Value:.............. $ 12,000
Surrender Charge:........ $ - 4,900 ($14.00 x $350,000/1,000)
------------------
Cash Surrender Value:.... $ 7,100
x 20%
------------------
Withdrawal Amount:....... $ 1,420
The first 10% of cash surrender value, or $710, can be withdrawn free of
Surrender Charge. The remaining $710 withdrawn is subject to a portion of the
Policy's Surrender Charge -- based on the ratio that such excess withdrawal
amount bears to the Policy's face amount less the Surrender Charge, as shown in
the formula below:
Withdrawal Amount in
Excess of Free Withdrawal
Surrender Charge x --------------------------------- = Surrender Charge
Face Amount less Surrender Charge On Withdrawal
$710
$4,900 x --------------------------------- = $10
$350,000 - $4,900
Because the Policy has a level death benefit, the withdrawal will cause a
dollar for dollar reduction in the Policy's face amount, so that the cash value
and the face amount will both be reduced by the $1,420 withdrawal and by the $10
Surrender Charge.
The effect of the withdrawal on the Policy would be as follows:
Face Amount before Withdrawal............................. $350,000
Withdrawal.............................................. - 1,420
Surrender Charge on Withdrawal.......................... - 10
--------
Face Amount after Withdrawal.............................. $348,570
Surrender Charge before Withdrawal........................ $ 4,900
Surrender Charge on Withdrawal.......................... - 10
--------
Surrender Charge after Withdrawal......................... $ 4,890
Cash Value before Withdrawal.............................. $ 12,000
Withdrawal.............................................. - 1,420
Surrender Charge on Withdrawal.......................... - 10
--------
Cash Value after Withdrawal............................... $ 10,570
Surrender Charge after Withdrawal......................... - 4,890
--------
Cash Surrender Value after Withdrawal..................... $ 5,680
Any face amount reduction resulting from a partial withdrawal will reduce
the face amount in the following order: any prior increases in base Policy face
amount that you applied for, in the reverse order in which the increases
occurred; any remaining initial face amount; and then any face amount increases
resulting from a change in death benefit option, down to the required minimum.
A partial withdrawal reduces the cash value in the Investment Divisions of
the Separate Account and the Fixed Account in the same proportion that the cash
value in each bears to the Policy's total unloaned cash value. We determine the
amount of cash surrender value paid upon a partial withdrawal as of the date
when we receive a request.
A-32
You can contact your registered representative or our Designated Office for
information on partial withdrawal procedures. (See "Receipt of Communications
and Payments at MetLife's Designated Office.")
A reduction in the death benefit as a result of a partial withdrawal may
create a modified endowment contract or have other adverse tax consequences. If
you are contemplating a partial withdrawal, you should consult your tax adviser
regarding the tax consequences. (See "Tax Considerations.")
TRANSFERS
TRANSFER OPTION
You may transfer your Policy's cash value between and among the Investment
Divisions and the Fixed Account. Your right to transfer begins 20 days after we
apply your initial premium to the Policy. We reserve the right to limit
transfers to four per Policy year and to impose a charge of $25 per transfer.
Currently we do not limit the number of transfers per Policy year or impose a
charge on transfers. We treat all transfer requests made at the same time as a
single request. The transfer is effective as of the date when we receive the
transfer request, if the request is received before the close of regular trading
on the New York Stock Exchange. Transfer requests received after that time, or
on a day that the New York Stock Exchange is not open, will be effective on the
next day that the New York Stock Exchange is open. (See "Receipt of
Communications and Payments at MetLife's Designated Office.") For special rules
regarding transfers involving the Fixed Account, see "The Fixed Account".
Frequent requests from Policy Owners to transfer cash value may dilute the
value of a Portfolio's shares if the frequent trading involves an attempt to
take advantage of pricing inefficiencies created by a lag between a change in
the value of the securities held by the Portfolio and the reflection of that
change in the Portfolio's share price ("arbitrage trading"). Regardless of the
existence of pricing inefficiencies, frequent transfers may also increase
brokerage and administrative costs of the underlying Portfolios and may disrupt
portfolio management strategy, requiring a Portfolio to maintain a high cash
position and possibly resulting in lost investment opportunities and forced
liquidations ("disruptive trading"). Accordingly, arbitrage trading and
disruptive trading activities (referred to collectively as "market timing") may
adversely affect the long-term performance of the Portfolios, which may in turn
adversely affect Policy Owners and other persons who may have an interest in the
Policies (e.g., beneficiaries).
We have policies and procedures that attempt to detect and deter frequent
transfers in situations where we determine there is a potential for arbitrage
trading. Currently, we believe that such situations may be presented in the
international, small-cap, and high-yield Portfolios (i.e., the Artio
International Stock Portfolio, Loomis Sayles Small Cap Core Portfolio, Loomis
Sayles Small Cap Growth Portfolio, Morgan Stanley EAFE Index Portfolio,
Neuberger Berman Genesis Portfolio, Oppenheimer Global Equity Portfolio, Russell
2000 Index Portfolio, Western Asset Management Strategic Bond Opportunities
Portfolio, T. Rowe Price Small Cap Growth Portfolio, Van Eck Global Natural
Resources Portfolio, Clarion Global Real Estate Portfolio, Dreman Small Cap
Value Portfolio, Harris Oakmark International Portfolio, Lord Abbett Bond
Debenture Portfolio, Invesco Small Cap Growth Portfolio, Met/Templeton Growth
Portfolio, MFS Emerging Markets Equity Portfolio, MFS Research International
Portfolio, and American Funds Global Small Capitalization Fund--the "Monitored
Portfolios") and we monitor transfer activity in those Monitored Portfolios. In
addition, as described below, we treat all American Funds Insurance Series
portfolios ("American Funds portfolios") as Monitored Portfolios. We employ
various means to monitor transfer activity, such as examining the frequency and
size of transfers into and out of the Monitored Portfolios within given periods
of time. For example, we currently monitor transfer activity to determine if,
for each category of international, small-cap, and high-yield Portfolios, in a
12-month period there were, (1) six or more transfers involving the given
category; (2) cumulative gross transfers involving the given category that
exceed the current cash value; and (3) two or more "round-trips" involving any
Portfolio in the given category. A round-trip generally is defined as a transfer
in followed by a transfer out within the next seven calendar days or a transfer
out followed by a transfer in within the next seven calendar days, in either
case subject to certain other criteria. We do not believe that other Portfolios
present a significant opportunity to engage in arbitrage trading and therefore
do not monitor transfer activity in those Portfolios. We may change the
Monitored Portfolios at any time without notice in our sole discretion. In
addition to monitoring transfer activity in certain Portfolios, we rely on the
underlying Portfolios to bring any potential disruptive trading activity they
identify to our attention for investigation on a case-by-case basis. We will
also investigate other harmful transfer activity that we identify from time to
time. We may revise these policies and procedures in our sole discretion at any
time without prior notice.
A-33
AMERICAN FUNDS MONITORING POLICY. As a condition to making their
portfolios available in our products, American Funds requires us to treat all
American Funds portfolios as Monitored Portfolios under our current market
timing and excessive trading policies and procedures. Further, American Funds
requires us to impose additional specified monitoring criteria for all American
Funds portfolios available under the Policy, regardless of the potential for
arbitrage trading. We are required to monitor transfer activity in American
Funds portfolios to determine if there were two or more transfers in followed by
transfers out, in each case of a certain dollar amount or greater, in any 30-day
period. A first violation of the American Funds monitoring policy will result in
a written notice of violation; each additional violation will result in the
imposition of a six-month restriction, during which period we will require all
transfer requests to or from an American Funds portfolio to be submitted with an
original signature. Further, as Monitored Portfolios, all American Funds
portfolios also will be subject to our current market timing and excessive
trading policies, procedures and restrictions (described below), and transfer
restrictions may be imposed upon a violation of either monitoring policy.
Our policies and procedures may result in transfer restrictions being
applied to deter market timing. Currently, when we detect transfer activity in
the Monitored Portfolios that exceeds our current transfer limits, or other
transfer activity that we believe may be harmful to other Policy Owners or other
persons who have an interest in the Policies, we require all future transfer
requests to or from any Monitored Portfolios or other identified Portfolios
under that Policy to be submitted either (i) in writing with an original
signature or (ii) by telephone prior to 10:00 a.m. Transfers made under an
Automated Investment Strategy are not treated as transfers when we evaluate
trading patterns for market timing.
The detection and deterrence of harmful transfer activity involves
judgments that are inherently subjective, such as the decision to monitor only
those Portfolios that we believe are susceptible to arbitrage trading or the
determination of the transfer limits. Our ability to detect and/or restrict such
transfer activity may be limited by operational and technological systems, as
well as our ability to predict strategies employed by Policy Owners to avoid
such detection. Our ability to restrict such transfer activity also may be
limited by provisions of the Policy. Accordingly, there is no assurance that we
will prevent all transfer activity that may adversely affect Policy Owners and
other persons with interests in the Policies. We do not accommodate market
timing in any Portfolio and there are no arrangements in place to permit any
Policy Owner to engage in market timing; we apply our policies and procedures
without exception, waiver, or special arrangement.
The Portfolios may have adopted their own policies and procedures with
respect to frequent purchases and redemptions of their respective shares, and we
reserve the right to enforce these policies and procedures. For example,
Portfolios may assess a redemption fee (which we reserve the right to collect)
on shares held for a relatively short period. The prospectuses for the
Portfolios describe any such policies and procedures, which may be more or less
restrictive than the policies and procedures we have adopted. Although we may
not have the contractual authority or the operational capacity to apply the
frequent trading policies and procedures of the Portfolios, we have entered into
a written agreement, as required by SEC regulation, with each Portfolio or its
principal underwriter that obligates us to provide to the Portfolio promptly
upon request certain information about the trading activity of individual Policy
Owners, and to execute instructions from the Portfolio to restrict or prohibit
further purchases or transfers by specific Policy Owners who violate the
frequent trading policies established by the Portfolio.
In addition, Policy Owners and other persons with interests in the Policies
should be aware that the purchase and redemption orders received by the
Portfolios generally are "omnibus" orders from intermediaries such as retirement
plans or separate accounts funding variable insurance products. The omnibus
orders reflect the aggregation and netting of multiple orders from individual
owners of variable insurance products and/or individual retirement plan
participants. The omnibus nature of these orders may limit the Portfolios in
their ability to apply their frequent trading policies and procedures. In
addition, the other insurance companies and/or retirement plans may have
different policies and procedures or may not have any such policies and
procedures because of contractual limitations. For these reasons, we cannot
guarantee that the Portfolios (and thus Policy Owners) will not be harmed by
transfer activity relating to other insurance companies and/or retirement plans
that may invest in the Portfolios. If a Portfolio believes that an omnibus order
reflects one or more transfer requests from Policy Owners engaged in disruptive
trading activity, the Portfolio may reject the entire omnibus order.
A-34
In accordance with applicable law, we reserve the right to modify or
terminate the transfer privilege at any time. We also reserve the right to defer
or restrict the transfer privilege at any time that we are unable to purchase or
redeem shares of any of the Portfolios, including any refusal or restriction on
purchases or redemptions of their shares as a result of their own policies and
procedures on market timing activities (even if an entire omnibus order is
rejected due to the market timing activity of a single Policy Owner). You should
read the Portfolio prospectuses for more details.
AUTOMATED INVESTMENT STRATEGIES
You can choose one of five automated investment strategies. You can change
or cancel your choice at any time.
EQUITY GENERATOR(R). The Equity Generator allows you to transfer the
interest earned in the Fixed Account to any one of the Investment Divisions on
each monthly anniversary. The interest earned in the month must be at least $20
in order for the transfer to take place. If less than $20 is earned, no transfer
will occur, and the interest not transferred cannot be counted towards the next
month's minimum.
ALLOCATOR(SM). The Allocator allows you to systematically transfer cash
value from the Fixed Account or any one Investment Division (the "source fund")
to any number of Investment Divisions. The transfers will take place on each
monthly anniversary. You can choose to transfer a specified dollar amount (1)
for a specified number of months, or (2) until the source fund is depleted. In
either case, you must select a dollar amount that would allow transfers to
continue for at least months.
ENHANCED DOLLAR COST AVERAGER. With the Enhanced Dollar Cost Averager,
cash value is transferred from the EDCA fixed account to the Investment
Divisions monthly. You elect the EDCA at issue and select the total amount of
cash value to be transferred. The cash value earmarked for the strategy is held
in the EDCA fixed account where it may be credited with a rate of interest that
is higher than the Fixed Account's current crediting rate. The amount
transferred each month to the Investment Divisions equals the total amount
earmarked for the strategy divided by 12.
REBALANCER(R). The Rebalancer allows your Policy's cash value to be
automatically redistributed on a quarterly basis among the Investment Divisions
and the Fixed Account in accordance with the allocation percentages you have
selected.
INDEX SELECTOR(R). The Index Selector allows you to choose one of five
asset allocation models which are designed to correlate to various risk
tolerance levels. Based on your selection, we allocate 100% of your cash value
among the five Investment Divisions that invest in the five index Portfolios
available under the Policy (the Barclays Capital Aggregate Bond Index, Morgan
Stanley EAFE Index, MetLife Stock Index, MetLife Mid Cap Stock Index and Russell
2000 Index Portfolios) and the Fixed Account. On a quarterly basis, we will
redistribute your cash value among these Investment Divisions and the Fixed
Account in order to return your cash value to the original allocation
percentages. If you change your allocation of net premiums the Index Selector
strategy, including the rebalancing feature, will be terminated.
We will continue to implement the Index Selector strategy using the
percentage allocations of the model that was in effect when you elected the
Index Selector strategy. You should consider whether it is appropriate for you
to continue using this strategy over time if your risk tolerance, time horizon
or financial situation changes. The asset allocation models used in Index
Selector may change from time to time. If you are interested in an updated
model, please contact your registered representative.
You may not elect Index Selector unless you purchase the Policy through a
registered representative of one of our affiliated broker-dealers MetLife
Securities, Inc. and New England Securities Corporation. However, ask your
registered representative how you might design a similar investment strategy
using Rebalancer.
These automated investment strategies allow you to take advantage of
investment fluctuations, but none assures a profit nor protects against a loss.
Because certain strategies involve continuous investment in securities
regardless of fluctuating price levels of such securities, you should consider
your financial ability to continue purchases through periods of fluctuating
price levels.
We reserve the right to modify or terminate any of the automated investment
strategies for any reason, including, without limitation, a change in regulatory
requirements applicable to such programs. For more information about the
automated investment strategies, please contact your registered representative.
A-35
LOANS
You may borrow from your Policy at any time. The maximum amount you may
borrow, calculated as of the date of the loan, is the greater of 75% of the
Policy's cash surrender value or:
-- the Policy's cash value, less
-- any Policy loan balance, less
-- loan interest due to the next Policy anniversary, less
-- the most recent Monthly Deduction times the number of months to the next
Policy anniversary, less
-- any Surrender Charge, plus
-- interest credited on the cash value at the guaranteed interest rate to
the next Policy anniversary.
The minimum loan amount is $500. We make the loan as of the date when we
receive a loan request. (See "Receipt of Communications and Payments at
MetLife's Designated Office.") You may increase your risk of lapse if you take a
loan. You should contact our Designated Office or your registered representative
for information on loan procedures.
A Policy loan reduces the Policy's cash value in the Investment Divisions
by the amount of the loan. A loan repayment increases the cash value in the
Investment Divisions by the amount of the repayment. We attribute Policy loans
to the Investment Divisions and the Fixed Account in proportion to the cash
value in each. We transfer cash value equal to the amount of the loan from the
Investment Divisions and the Fixed Account to the Loan Account (which is part of
our general account).
You may repay all or part of your loan at any time while the insured is
still alive. When you make a loan repayment, we transfer an amount of cash value
equal to the repayment from the Loan Account to the Divisions of the Separate
Account and to the Fixed Account in proportion to the cash value in each. (See
"Receipt of Communications and Payments at MetLife's Designated Office.")
We guarantee that the interest rate charged on Policy loans will not be
more than 4.0% per year in Policy years 1-10 and 3.0% per year thereafter.
Policy loan interest is due and payable annually on each Policy
anniversary. If not paid when due, we add the interest accrued to the loan
amount, and we transfer an amount of cash value equal to the unpaid interest
from the Investment Divisions and the Fixed Account to the Loan Account in the
same manner as a new loan.
Cash value in the Loan Account earns interest at not less than 3.0% per
year and is transferred on each Policy anniversary to the Investment Divisions
and to the Fixed Account in proportion to the cash value in each. The interest
credited will also be transferred: (1) when you take a new loan; (2) when you
make a full or partial loan repayment; and (3) when the Policy enters the grace
period.
The amount taken from the Policy's Investment Divisions as a result of a
loan does not participate in the investment experience of the Investment
Divisions. Therefore, loans can permanently affect the death benefit and cash
value of the Policy, even if repaid. In addition, we reduce any proceeds payable
under a Policy by the amount of any outstanding loan plus accrued interest.
If a Policy loan is outstanding, it may be better to repay the loan than to
pay a premium, because the payment is subject to sales and premium tax charges,
and the loan repayment is not subject to charges. (See "Deductions from
Premiums.") If you want us to treat a payment as a loan repayment, it should be
clearly marked as such.
A loan that is taken from, or secured by, a Policy may have tax
consequences. Although the issue is not free from doubt, we believe that a loan
from or secured by a Policy that is not classified as a modified endowment
contract should generally not be treated as a taxable distribution.
Nevertheless, the tax consequences associated with loans outstanding after the
tenth Policy year are uncertain. A tax adviser should be consulted when
considering a loan.
A-36
LAPSE AND REINSTATEMENT
LAPSE
In general, in any month that your Policy's cash surrender value is not
large enough to cover a Monthly Deduction, your Policy will be in default, and
may lapse. However, you can prevent your Policy from lapsing, regardless of the
amount of your cash surrender value, if the premiums you pay are sufficient to
keep the Guaranteed Minimum Death Benefit ("GMDB") in effect.
The base Policy offers, at no additional charge, a five-year GMDB, a 20-
year GMDB and a GMDB that lasts until the insured's age 65. For an additional
charge, you can add a Policy rider at issue that provides a GMDB to age 85 or a
GMDB to age 121. All Policies are issued with a GMDB, which guarantees that the
Policy will remain in force for at least five years if the required Guaranteed
Minimum Death Benefit Monthly Premiums ("GMDB Monthly Premiums") are paid when
due. The five-year GMDB Monthly Premium is set forth in your Policy. It is the
minimum initial periodic premium you can pay into the Policy. Policies will be
issued with the 20-year GMDB or the GMDB to age 65 to eligible Policy Owners who
elect either of these GMDBs at issue.
The GMDB Monthly Premium varies depending on the guarantee period, the
insured's age, sex (except for unisex policies), smoking status and risk class,
the Policy's face amount and the death benefit option chosen. The GMDB Monthly
Premium may change in the event that any of the following events occur: an
increase or decrease in the base Policy face amount; adding, deleting or
changing a rider; a change in death benefit option or the insured's risk class;
or a misstatement of the insured's age or sex in the Policy application.
On each monthly anniversary we test the Policy to determine if the
cumulative premiums you have paid, less any partial withdrawals or outstanding
loans you have taken, equal or exceed the sum of the GMDB Monthly Premiums due
to date for the GMDB you selected. If you meet this test, the GMDB you selected
will be in effect. However, even if you have not elected the 20-year GMDB or the
GMDB to age 65, if the amount of premiums you pay into the Policy for each
Policy month since the Policy Date is sufficient to meet the requirements of the
20-year GMDB or the GMDB to age 65, in your third annual statement we will
notify you that the applicable GMDB is in effect. Conversely, if you have
elected the 20-year GMDB or the GMDB to age 65 and your premium payments are
insufficient to satisfy the GMDB Monthly Premium requirements, we will notify
you that your GMDB will be reduced to the five-year GMDB, the GMDB to age 65, or
the 20-year GMDB, as applicable, unless you pay sufficient premiums within 62
days to meet the requirements of the GMDB you originally selected. If, during
the first five Policy years, you fail to pay sufficient premiums to keep the
five-year GMDB in effect, we will notify you that the GMDB will terminate within
62 days if you fail to pay the required Monthly Premiums. If the guarantee
provided by the GMDB terminates, the Policy will continue in force for as long
as there is cash surrender value sufficient to pay the Monthly Deduction. If the
GMDB terminates, you may reinstate it within nine months provided the Policy
remains in force. In order to reinstate the GMDB, you must pay sufficient
premiums to satisfy the cumulative premium requirement for the applicable GMDB
(five-year, 20-year or to age 65) at the time of reinstatement.
If the GMDB is in effect and the Policy's cash surrender value is
insufficient to cover the Monthly Deduction, the Policy will not lapse. We will
take the Monthly Deduction from the Policy's cash value until the cash value has
been reduced to zero. At that point, future Monthly Deductions will be waived
for as long as the GMDB is in effect.
If the GMDB is not in effect and the cash surrender value is insufficient
to pay the Monthly Deduction, the Policy will enter a 62-day grace period during
which you will have an opportunity to pay a premium sufficient to keep the
Policy in force. The minimum amount you must pay is the lesser of three Monthly
Deductions or, if applicable, the amount necessary to reinstate the GMDB. We
will tell you the amount due. If you fail to pay this amount before the end of
the grace period, the Policy will terminate.
Your Policy may also lapse if Policy loans plus accrued interest exceed the
Policy's cash value less the Surrender Charge. Your Policy may be protected
against lapse in these circumstances if it has been in force for 15 years, the
insured has attained age 75, and the other requirements of the Overloan
Protection Rider have been met. If your Policy is not so protected, we will
notify you that the Policy is going to terminate. The Policy terminates without
value unless you make a sufficient payment within the later of 62 days from the
monthly anniversary immediately before the date
A-37
when the excess loan occurs or 31 days after we mail the notice. If the Policy
lapses with a loan outstanding, adverse tax consequences may result. (See "Tax
Considerations" below.)
REINSTATEMENT
If your Policy has lapsed, you may reinstate it within three years after
the date of lapse if the insured has not attained age 121. If more than three
years have passed, you need our consent to reinstate. Reinstatement in all cases
requires payment of certain charges described in the Policy and usually requires
evidence of insurability that is satisfactory to us. If the Policy lapses and is
reinstated during the first five Policy years, only the five-year GMDB will be
reinstated. If the Policy lapses after the first five Policy years, the GMDB
will terminate and cannot be reinstated. Under no circumstances can the GMDB
provided by Policy rider be reinstated following a Policy lapse.
If we deducted a Surrender Charge on lapse, we credit it back to the
Policy's cash value on reinstatement. The Surrender Charge on the date of
reinstatement is the same as it was on the date of lapse. When we determine the
Surrender Charge and other charges except cost of insurance and the Policy loan
interest rate, we do not count the amount of time that a Policy was lapsed.
ADDITIONAL BENEFITS BY RIDER
You can add additional benefits to the Policy by rider, subject to our
underwriting and issuance standards. These additional benefits usually require
an additional charge as part of the Monthly Deduction from cash value. The rider
benefits available with the Policy provide fixed benefits that do not vary with
the investment experience of the Separate Account.
There is no limit on the number of riders you can elect to add to your
Policy at issue. However, you may not elect both the Waiver of Monthly Deduction
Rider and the Waiver of Specified Premium Rider.
The following riders, some of which have been described previously, are
available:
CHILDREN'S TERM INSURANCE RIDER, which provides term insurance on the lives
of children of the insured.
WAIVER OF MONTHLY DEDUCTION RIDER, which provides for waiver of Monthly
Deductions in the event of the disability of the insured.
WAIVER OF SPECIFIED PREMIUM RIDER, which provides for waiver of a specified
amount of monthly premium in the event of the disability of the insured.
OPTIONS TO PURCHASE ADDITIONAL INSURANCE COVERAGE RIDER, which allows the
Owner to purchase additional coverage on the insured without providing evidence
of insurability.
ACCELERATION OF DEATH BENEFIT RIDER, which allows a Policy Owner to
accelerate payment of all or part of the Policy's death benefit if the insured
is terminally ill. In calculating the Accelerated Death Benefit, we assume that
death occurs one year from the date of claim and we discount the future death
benefit using an interest rate not to exceed the greater of (1) the current
yield on 90-day Treasury bills, and (2) the maximum policy loan interest rate
under the Policy. The Policy Owner must accelerate at least $50,000 (or 25% of
the death benefit, if less), but not more than the greater of $250,000 or 10% of
the death benefit. As an example, if a Policy Owner accelerated the death
benefit of a Policy with a face amount of $1,000,000, the maximum amount that
could be accelerated would be $250,000. Assuming an interest rate of 6%, the
present value of the benefit would be $235,849. If we exercised our reserved
right to impose a $150 processing fee, the benefit payable would be $235,849
less $150, or $235,699.
GUARANTEED SURVIVOR INCOME BENEFIT RIDER, which provides the beneficiary
with the option of exchanging the Policy's death benefit for enhanced monthly
income payments for life.
ACCIDENTAL DEATH BENEFIT RIDER, which provides for the payment of an
additional death benefit in the event of the insured's death by accident.
GUARANTEED MINIMUM DEATH BENEFIT RIDER, which provides for a guaranteed
death benefit until the insured's age 85 or the insured's age 121.
OVERLOAN PROTECTION RIDER, which provides protection from Policy lapse due
to an excess Policy loan.
A-38
Riders in addition to those listed above may be made available. You should
consult your registered representative regarding the availability of riders.
THE FIXED ACCOUNT
You may allocate net premiums and transfer cash value to the Fixed Account,
which is part of MetLife's general account. Because of exemptive and
exclusionary provisions in the Federal securities laws, interests in the Fixed
Account are not registered under the Securities Act of 1933. Neither the Fixed
Account nor the general account is registered as an investment company under the
Investment Company Act of 1940. Therefore, neither the Fixed Account, the
general account nor any interests therein are generally subject to the
provisions of these Acts, and the SEC does not review Fixed Account disclosure.
This disclosure may, however, be subject to certain provisions of the Federal
securities laws on the accuracy and completeness of prospectuses.
GENERAL DESCRIPTION
Our general account includes all of our assets except assets in the
Separate Account or in our other separate accounts. We decide how to invest our
general account assets. Fixed Account allocations do not share in the actual
investment experience of the general account. Instead, we guarantee that the
Fixed Account will credit interest at an annual effective rate of at least 3%.
We may or may not credit interest at a higher rate. We declare the current
interest rate for the Fixed Account periodically. The Fixed Account earns
interest daily.
VALUES AND BENEFITS
Cash value in the Fixed Account increases from net premiums allocated and
transfers to the Fixed Account and Fixed Account interest, and decreases from
loans, partial withdrawals made from the Fixed Account, charges and transfers
from the Fixed Account. We deduct charges from the Fixed Account and the
Policy's Investment Divisions in proportion to the amount of cash value in each.
(See "Monthly Deduction from Cash Value.") A Policy's total cash value includes
cash value in the Separate Account, the Fixed Account, and any cash value held
in the Loan Account due to a Policy loan.
Cash value in the Fixed Account is included in the calculation of the
Policy's death benefit in the same manner as the cash value in the Separate
Account. (See "Death Benefits.")
POLICY TRANSACTIONS
Except as described below, the Fixed Account has the same rights and
limitations regarding premium allocations, transfers, loans, surrenders and
partial withdrawals as the Separate Account. The following special rules apply
to the Fixed Account.
Twenty days after we apply the initial premium to the Policy you may
transfer cash value from the Fixed Account to the Separate Account. The amount
of any transfer must be at least $50, unless the balance remaining would be less
than $50, in which case you may withdraw or transfer the entire Fixed Account
cash value. After the first Policy year you may withdraw cash value from the
Fixed Account. The amount of any partial withdrawal, net of applicable Surrender
Charges, must be at least $500. No amount may be withdrawn from the Fixed
Account that would result in there being insufficient cash value to meet any
Surrender Charges that would be payable immediately following the withdrawal
upon the surrender of the remaining cash value in the Policy. We reserve the
right to only allow transfers and withdrawals from the Fixed Account during the
30-day period that follows the Policy anniversary. The total amount of transfers
and withdrawals in a Policy year may not exceed the greater of (a) 25% of the
Policy's cash surrender value in the Fixed Account at the beginning of the
Policy year, (b) the previous Policy year's maximum allowable withdrawal amount
and (c) 100% of the cash surrender value in the Fixed Account if withdrawing the
greater of (a) and (b) would result in a Fixed Account balance of $50 or less.
We are not currently imposing the maximum limit on transfers and withdrawals
from the Fixed Account, but we reserve the right to do so.
There is currently no transaction charge for partial withdrawals or
transfers. We reserve the right to limit partial withdrawals to 12 and transfers
to four in a Policy year and to impose a charge of $25 for each partial
withdrawal or
A-39
transfer. We may revoke or modify the privilege of transferring amounts to or
from the Fixed Account at any time. Partial withdrawals will result in the
imposition of any applicable Surrender Charges.
Unless you request otherwise, a Policy loan reduces the Policy's cash value
in the Investment Divisions and the Fixed Account proportionately. We allocate
all loan repayments in the same proportion that the cash value in each
Investment Division and the Fixed Account bears to the Policy's total unloaned
cash value. The amount transferred from the Policy's Investment Divisions and
the Fixed Account as a result of a loan earns interest at an effective rate of
at least 3% per year, which we credit to the Policy's cash value in the
Investment Divisions and the Fixed Account in proportion to the Policy's cash
value in each on the day it is credited.
We take partial withdrawals from the Policy's Investment Divisions and the
Fixed Account in the same proportion that the cash value in each account bears
to the Policy's total unloaned cash value.
We can delay transfers, surrenders, withdrawals and Policy loans from the
Fixed Account for up to six months. We will not delay loans to pay premiums on
policies issued by us.
CHARGES
We make certain charges and deductions under the Policy. These charges and
deductions compensate us for: (1) services and benefits we provide; (2) costs
and expenses we incur; and (3) risks we assume.
Services and benefits we provide:
- the death benefit, cash, and loan benefits under the Policy
- investment options, including premium allocations
- administration of elective options
- the distribution of reports to Policy Owners
Costs and expenses we incur:
- costs associated with processing and underwriting applications, and with
issuing and administering the Policy (including any riders)
- overhead and other expenses for providing services and benefits
- sales and marketing expenses
- other costs of doing business, such as collecting premiums, maintaining
records, processing claims, effecting transactions, and paying federal,
state, and local premium and other taxes and fees
Risks we assume:
- that the cost of insurance charges we may deduct are insufficient to meet
our actual claims because the insureds die sooner than we estimate
- that the cost of providing the services and benefits under the Policies
exceed the charges we deduct
The amount of a charge may not necessarily correspond to the costs of the
services or benefits that are implied by the name of the charge or that are
associated with the particular Policy. For example, the sales charge and
Surrender Charge may not fully cover all of our sales and distribution expenses,
and we may use proceeds from other charges, including the Mortality and Expense
Risk Charge and the cost of insurance charge, to help cover those expenses. We
may profit from certain Policy charges.
DEDUCTIONS FROM PREMIUMS
Prior to the allocation of a premium, we deduct a percentage of your
premium payment. We credit the remaining amount (the net premium) to your cash
value according to your allocation instructions. The deductions we make from
each premium payment are the sales charge, the premium tax charge, and the
federal tax charge.
A-40
SALES CHARGE. We deduct a 2.25% sales charge from each premium payment.
Currently, the sales charge is only deducted from premium payments that are
less than or equal to the Target Premium.
PREMIUM TAX CHARGE. We deduct 2.0% from each premium for premium taxes and
administrative expenses. Premium taxes vary from state to state, but we deduct a
flat 2.0%, which is based on an average of such taxes. Administrative expenses
covered by this charge include those related to premium tax and certain other
state filings.
FEDERAL TAX CHARGE. We deduct 1.25% from each premium for our Federal
income tax liability related to premiums.
EXAMPLE: The following chart shows the net amount that we would allocate
to the Policy assuming a premium payment of $4,000 (and a Target Premium of
$2,000).
NET
PREMIUM PREMIUM
------- -------
$4,000 $4,000
(5.5% x $2,000) + (3.25% x $2,000) = total sales, premium tax
-175 and Federal tax charges
------
$3,825 Net Premium
SURRENDER CHARGE
If, during the first ten Policy years, or during the first ten Policy years
following a face amount increase, you surrender or lapse your Policy, reduce the
face amount, or make a partial withdrawal or change in death benefit option that
reduces the face amount, then we will deduct a Surrender Charge from the cash
value. The maximum Surrender Charge is shown in your Policy.
No Surrender Charge will apply on up to 10% of the cash surrender value
withdrawn each year.
The Surrender Charge depends on the face amount of your Policy and the
issue age, sex (except for unisex policies), risk class and smoker status of the
insured. The Surrender Charge will remain level for up to three Policy years, or
for up to three years after a face amount increase, and will then decline on a
monthly basis until it reaches zero at the end of the tenth Policy year (or the
tenth year following the face amount increase).
The table below shows the maximum Surrender Charge that applies if the
lapse, surrender or face amount reduction occurs at any time in the first Policy
year, and in the last month of each Policy year thereafter.
FOR POLICIES WHICH THE MAXIMUM
ARE SURRENDERED, SURRENDER CHARGE
LAPSED OR PER $1,000 OF BASE
REDUCED DURING POLICY FACE AMOUNT
------------------ ------------------
Entire Policy Year 1 $38.25
Last Month of Policy Year 2 35.81
3 32.56
4 31.74
5 29.84
6 27.13
7 23.90
8 18.99
9 9.50
10 0.00
In the case of a face amount reduction or a partial withdrawal or change in
death benefit option that results in a face amount reduction, we deduct any
Surrender Charge that applies from the Policy's remaining cash value in an
amount that is proportional to the amount of the Policy's face amount
surrendered. (See "Reduction in Face Amount," "Partial Withdrawal" and "Change
in Death Benefit Option.")
A-41
If you surrender the Policy (or a face amount increase) in the first Policy
year (or in the first year following the face amount increase) we will deduct
from the surrender proceeds an amount equal to the remaining first year Coverage
Expense Charges. We reserve the right to also deduct an amount equal to the
remaining first year Policy Charges. If you reduce the face amount of your
Policy in the first year following a face amount increase, we will deduct from
your cash value a proportionate amount of the remaining first year Coverage
Expense Charges, based on the ratio of the face amount reduction to the Policy's
original face amount.
The Surrender Charge reduces the Policy's cash value in the Investment
Divisions and the Fixed Account in proportion to the amount of the Policy's cash
value in each. However, if you designate the accounts from which a partial
withdrawal is to be taken, the charge will be deducted proportionately from the
cash value of the designated accounts.
PARTIAL WITHDRAWAL CHARGE
We reserve the right to impose a processing charge on each partial
withdrawal. If imposed, this charge would compensate us for administrative costs
in generating the withdrawn payment and in making all calculations that may be
required because of the partial withdrawal.
TRANSFER CHARGE
We reserve the right to impose a processing charge on each transfer between
Investment Divisions or between an Investment Division and the Fixed Account to
compensate us for the costs of processing these transfers. Transfers under one
of our Automated Investment Strategies do not count as transfers for the purpose
of assessing this charge.
ILLUSTRATION OF BENEFITS CHARGE
We reserve the right to impose a charge for each illustration of Policy
benefits that you request in excess of one per year. If imposed, this charge
would compensate us for the cost of preparing and delivering the illustration to
you.
MONTHLY DEDUCTION FROM CASH VALUE
On the first day of each Policy month, starting with the Policy Date, we
deduct the "Monthly Deduction" from your cash value.
-- If your Policy is protected against lapse by a Guaranteed Minimum Death
Benefit, we make the Monthly Deduction each month regardless of the
amount of your cash surrender value. If your cash surrender value is
insufficient to pay the Monthly Deduction in any month, your Policy
will not lapse, but the shortfall will, in effect, cause your cash
surrender value to have a negative balance. (See "Lapse and
Reinstatement.")
-- If a Guaranteed Minimum Death Benefit is not in effect, and the cash
surrender value is not large enough to cover the entire Monthly
Deduction, we will make the deduction to the extent cash value is
available, but the Policy will be in default, and it may lapse. (See
"Lapse and Reinstatement.")
There is no Monthly Deduction on or after the Policy anniversary when the
insured attains age 121.
The Monthly Deduction reduces the cash value in each Investment Division
and in the Fixed Account in proportion to the cash value in each. However, you
may request that we charge the Monthly Deduction to a specific Investment
Division or to the Fixed Account. If, in any month, the designated account has
insufficient cash value to cover the Monthly Deduction, we will first reduce the
designated account cash value to zero and then charge the remaining Monthly
Deduction to all Investment Divisions and, if applicable, the Fixed Account, in
proportion to the cash value in each.
The Monthly Deduction includes the following charges:
POLICY CHARGE. The Policy Charge is equal to $15.00 per month in the first
Policy year and $8.00 per month thereafter. The Policy Charge is $12 per month
in the first Policy year and $9 per month thereafter for Policies issued with
face amounts of less than $50,000. No Policy Charge applies to Policies issued
with face amounts equal to or
A-42
greater than $250,000. The Policy Charge compensates us for administrative costs
such as record keeping, processing death benefit claims and policy changes,
preparing and mailing reports, and overhead costs.
COVERAGE EXPENSE CHARGE. We impose a monthly charge for the costs of
underwriting, issuing (including sales commissions), and administering the
Policy or the face amount increase. The monthly charge is imposed on the base
Policy face amount and varies by the base Policy's face amount and duration, and
by the insured's issue age, smoking status, risk class (at the time the Policy
or a face amount increase is issued), and, except for unisex Policies, the
insured's sex. Currently, we only impose the Coverage Expense Charge during the
first eight Policy years, and during the first eight Policy years following a
requested face amount increase.
MONTHLY CHARGES FOR THE COST OF INSURANCE. This charge covers the cost of
providing insurance protection under your Policy. The cost of insurance charge
for a Policy month is equal to the "amount at risk" under the Policy, multiplied
by the cost of insurance rate for that Policy month. We determine the amount at
risk on the first day of the Policy month. The amount at risk is the amount by
which the death benefit (generally discounted at the monthly equivalent of 3%
per year) exceeds the Policy's cash value. The amount at risk is affected by
investment performance, loans, premium payments, fees and charges, partial
withdrawals and face amount reductions.
The guaranteed cost of insurance rates for a Policy depend on the insured's
-- smoking status
-- risk class
-- attained age
-- sex (if the Policy is sex-based).
The current cost of insurance rates will depend on the above factors, plus
-- the insured's age at issue (and at the time of any face amount
increase)
-- the Policy year (and the year of any face amount increase)
-- the Policy's face amount.
We guarantee that the rates for underwritten Policies will not be higher
than rates based on
-- the 2001 Commissioners Standard Ordinary Mortality Tables (the "2001
CSO Tables") with smoker/nonsmoker modifications, for Policies issued
on non-juvenile insureds (age 18 and above at issue), adjusted for
substandard ratings or flat extras, if applicable
-- the 2001 CSO Aggregate Tables (Nonsmoker Tables for attained age 16 and
older), for Policies issued on juvenile insureds (below age 18 at
issue).
The actual rates we use may be lower than the maximum rates, depending on
our expectations about our future mortality and expense experience, lapse rates,
taxes and investment earnings. We review the adequacy of our cost of insurance
rates and other non-guaranteed charges periodically and may adjust them. Any
change will apply prospectively.
The risk classes we use are
-- for Policies issued on non-juvenile insureds: preferred smoker,
standard smoker, rated smoker, elite nonsmoker, preferred nonsmoker,
standard nonsmoker, and rated nonsmoker.
-- for Policies issued on juvenile insureds: standard and rated (with our
consent).
Rated Policies have higher cost of insurance deductions. We base the
guaranteed maximum mortality charges for substandard ratings on multiples of the
2001 CSO Tables.
The following standard or better smoker and non-smoker classes are
available for underwritten Policies:
-- elite nonsmoker for Policies with face amounts of $250,000 or more
where the issue age is 18 through 80;
A-43
-- preferred smoker and preferred nonsmoker for Policies with face amounts
of $100,000 or more where the issue age is 18 through 80;
-- standard smoker and standard nonsmoker for Policies with face amounts
of $50,000 or more ($25,000 for pension plans) where the issue age is
18 through 85.
The elite nonsmoker class generally offers the best current cost of
insurance rates, and the preferred classes generally offer better current cost
of insurance rates than the standard classes.
Cost of insurance rates are generally lower for nonsmokers than for smokers
and generally lower for females than for males. Within a given risk class, cost
of insurance rates are generally lower for insureds with lower issue ages. For
Policies sold in connection with some employee benefit plans, cost of insurance
rates (and Policy values and benefits) do not vary based on the sex of the
insured.
We may offer Policies on a guaranteed issue basis to certain group or
sponsored arrangements. We issue these Policies up to predetermined face amount
limits. Because we issue these Policies based on minimal underwriting
information, they may present a greater mortality cost to us than Policies
issued in a standard class. Therefore, these Policies will be issued with a risk
class of standard smoker or standard nonsmoker, but will be subject to an
additional flat extra charge. However, the overall cost of insurance deduction
for a Policy issued on a guaranteed issue basis will not exceed the maximum cost
of insurance deduction imposed under fully underwritten Policies.
CHARGES FOR ADDITIONAL BENEFITS. We charge for the cost of any additional
rider benefits as described in the rider form.
MORTALITY AND EXPENSE RISK CHARGE. We impose a monthly charge for our
mortality and expense risks.
The mortality risk we assume is that insureds may live for shorter periods
of time than we estimated. The expense risk is that our costs of issuing and
administering the Policies may be more than we estimated. The charge is imposed
on the cash value in the Separate Account, but the rate we charge is determined
by the cash value in the Separate Account and the Fixed Account. The rate is
determined on each monthly anniversary and varies based on the Policy year and
the Policy's net cash value in relation to the Policy's Target Premium. As shown
in the table below, the rate declines as the Policy's net cash value and the
Policy years increase. The charge is guaranteed not to exceed 0.80% in Policy
years 1-10, 0.35% in Policy years 11-19, 0.20% in Policy years 20-29 and 0.05%
thereafter.
-------------------------------------------------------------------------------------------
CHARGE APPLIED
TO CASH VALUE IN
POLICY YEAR NET CASH VALUE SEPARATE ACCOUNT
-------------------------------------------------------------------------------------------
less than 5 target premiums 0.60%
5 but less than 10 target premiums 0.55%
1 - 10 10 but less than 20 target premiums 0.30%
20 target premiums or more 0.15%
-------------------------------------------------------------------------------------------
less than 5 target premiums 0.35%
5 but less than 10 target premiums 0.30%
11 - 19 10 but less than 20 target premiums 0.15%
20 target premiums or more 0.10%
-------------------------------------------------------------------------------------------
less than 5 target premiums 0.20%
5 but less than 10 target premiums 0.15%
20 - 29 10 but less than 20 target premiums 0.10%
20 target premiums or more 0.05%
-------------------------------------------------------------------------------------------
30+ 0.05%
-------------------------------------------------------------------------------------------
LOAN INTEREST SPREAD
We charge you interest on a loan at a maximum effective rate of 4.0% per
year in Policy years 1-10 and 3.0% per year thereafter, compounded daily. We
also credit interest on the amount we take from the Policy's accounts as a
result of the loan at a minimum annual effective rate of 3% per year, compounded
daily. As a result, the loan interest spread will never be more than 1.00%.
A-44
CHARGES AGAINST THE PORTFOLIOS AND THE INVESTMENT DIVISIONS OF THE SEPARATE
ACCOUNT
CHARGES FOR INCOME TAXES. We currently do not charge the Separate Account
for income taxes, but in the future we may make such a charge, if appropriate.
We have the right to make a charge for any taxes imposed on the Policies in the
future. (See "MetLife's Income Taxes.")
PORTFOLIO EXPENSES. There are daily charges against the Portfolio assets
for investment advisory services and fund operating expenses. These are
described in the Fee Table as well as in the attached Portfolio prospectuses.
TAX CONSIDERATIONS
INTRODUCTION
The following summary provides a general description of the Federal income
tax considerations associated with the Policy and does not purport to be
complete or to cover all tax situations. This discussion is not intended as tax
advice. Counsel or other competent tax advisers should be consulted for more
complete information. This discussion is based upon our understanding of the
present Federal income tax laws. No representation is made as to the likelihood
of continuation of the present Federal income tax laws or as to how they may be
interpreted by the Internal Revenue Service.
IRS CIRCULAR 230 NOTICE: The tax information contained herein is not
intended to (and cannot) be used by anyone to avoid IRS penalties. It is
intended to support the sale of the Policy. The Policy Owner should seek tax
advice based on the Policy Owner's particular circumstances from an independent
tax adviser.
TAX STATUS OF THE POLICY
In order to qualify as a life insurance contract for Federal income tax
purposes and to receive the tax treatment normally accorded life insurance
contracts under Federal tax law, a Policy must satisfy certain requirements
which are set forth in the Internal Revenue Code. Guidance as to how these
requirements are to be applied is limited. Nevertheless, we anticipate that the
Policy should be deemed to be a life insurance contract under Federal tax law.
However, if your Policy is issued on a substandard basis, there is additional
uncertainty. Moreover, if you elect the Acceleration of Death Benefit Rider, the
tax qualification consequences associated with continuing the Policy after a
distribution is made under the rider are unclear. We may take appropriate steps
to bring the Policy into compliance with applicable requirements, and we reserve
the right to restrict Policy transactions in order to do so. The insurance
proceeds payable on the death of the insured will never be less than the minimum
amount required for the Policy to be treated as life insurance under section
7702 of the Internal Revenue Code, as in effect on the date the Policy was
issued.
In some circumstances, owners of variable contracts who retain excessive
control over the investment of the underlying separate account assets may be
treated as the owners of those assets. Although published guidance in this area
does not address certain aspects of the Policies, we believe that the Owner of a
Policy should not be treated as the owner of the Separate Account assets. We
reserve the right to modify the Policies to bring them into conformity with
applicable standards should such modification be necessary to prevent Owners of
the Policies from being treated as the owners of the underlying Separate Account
assets.
In addition, the Code requires that the investments of the Separate Account
be "adequately diversified" in order for the Policies to be treated as life
insurance contracts for Federal income tax purposes. It is intended that the
Separate Account, through the Portfolios, will satisfy these diversification
requirements. If Portfolio shares are sold directly to either non-qualified
plans or to tax-qualified retirement plans that later lose their tax qualified
status, there could be adverse consequences under the diversification rules.
The following discussion assumes that the Policy will qualify as a life
insurance contract for Federal income tax purposes.
A-45
TAX TREATMENT OF POLICY BENEFITS
IN GENERAL. We believe that the death benefit under a Policy should
generally be excludible from the gross income of the beneficiary. Federal, state
and local transfer, and other tax consequences of ownership or receipt of Policy
proceeds depend on the circumstances of each Policy Owner or beneficiary. A tax
adviser should be consulted on these consequences.
In the case of employer-owned life insurance as defined in Section 101(j),
the amount of the death benefit excludable from gross income is limited to
premiums paid unless the Policy falls within certain specified exceptions and a
notice and consent requirement is satisfied before the Policy is issued. Certain
specified exceptions are based on the status of an employee as highly
compensated or recently employed. There are also exceptions for Policy proceeds
paid to an employee's heirs. These exceptions only apply if proper notice is
given to the insured employee and consent is received from the insured employee
before the issuance of the Policy. These rules apply to Policies issued August
18, 2006 and later and also apply to policies issued before August 18, 2006
after a material increase in the death benefit or other material change. An IRS
reporting requirement applies to employer-owned life insurance subject to these
rules. Because these rules are complex and will affect the tax treatment of
death benefits, it is advisable to consult tax counsel. The death benefit will
also be taxable in the case of a transfer-for-value unless certain exceptions
apply.
Generally, the Policy Owner will not be deemed to be in constructive
receipt of the Policy cash value until there is a distribution or a deemed
distribution. When distributions from a Policy occur, or when loans are taken
from or secured by a Policy, the tax consequences depend on whether the Policy
is classified as a modified endowment contract ("MEC").
MODIFIED ENDOWMENT CONTRACTS. Under the Internal Revenue Code, certain
life insurance contracts are classified as modified endowment contracts, with
less favorable income tax treatment than other life insurance contracts. Due to
the Policy's flexibility with respect to premium payments and benefits, each
Policy's circumstances will determine whether the Policy is a MEC. In general a
Policy will be classified as a modified endowment contract if the amount of
premiums paid into the Policy causes the Policy to fail the "7-pay test." A
Policy will fail the 7-pay test if at any time in the first seven Policy years,
the amount paid into the Policy exceeds the sum of the level premiums that would
have been paid at that point under a Policy that provided for paid-up future
benefits after the payment of seven level annual payments.
If there is a reduction in the benefits under the Policy during the first
seven Policy years, for example, as a result of a partial withdrawal, the 7-pay
test will have to be reapplied as if the Policy had originally been issued at
the reduced face amount. If there is a "material change" in the Policy's
benefits or other terms, even after the first seven Policy years, the Policy may
have to be retested as if it were a newly issued Policy. A material change can
occur, for example, when there is an increase in the death benefit which is due
to the payment of an unnecessary premium. Unnecessary premiums are premiums paid
into the Policy which are not needed in order to provide a death benefit equal
to the lowest death benefit that was payable in the first seven Policy years. To
prevent your Policy from becoming a modified endowment contract, it may be
necessary to limit premium payments or to limit reductions in benefits. A
current or prospective Policy Owner should consult a tax adviser to determine
whether a Policy transaction will cause the Policy to be classified as a
modified endowment contract.
DISTRIBUTIONS OTHER THAN DEATH BENEFITS FROM MODIFIED ENDOWMENT
CONTRACTS. Policies classified as modified endowment contracts are subject to
the following tax rules:
(1) All distributions other than death benefits, including
distributions upon surrender and withdrawals, from a modified endowment
contract will be treated first as distributions of gain taxable as ordinary
income and as tax-free recovery of the Policy Owner's investment in the
Policy only after all gain has been distributed.
(2) Loans taken from or secured by a Policy classified as a modified
endowment contract are treated as distributions and taxed accordingly.
(3) A 10 percent additional income tax is imposed on the amount
subject to tax except where the distribution or loan is made when the
Policy Owner has attained age 59 1/2 or is disabled, or where the
distribution is part of a series of substantially equal periodic payments
for the life (or life expectancy) of the Policy Owner or
A-46
the joint lives (or joint life expectancies) of the Policy Owner and the
Policy Owner's beneficiary or designated beneficiary.
If a Policy becomes a modified endowment contract, distributions will be
taxed as distributions from a modified endowment contract. In addition,
distributions from a Policy within two years before it becomes a modified
endowment contract will be taxed in this manner. This means that a distribution
made from a Policy that is not a modified endowment contract could later become
taxable as a distribution from a modified endowment contract.
DISTRIBUTIONS OTHER THAN DEATH BENEFITS FROM POLICIES THAT ARE NOT MODIFIED
ENDOWMENT CONTRACTS. Distributions other than death benefits from a Policy that
is not classified as a modified endowment contract are generally treated first
as a recovery of the Policy Owner's investment in the Policy and only after the
recovery of all investment in the Policy as taxable income. However, certain
distributions which must be made in order to enable the Policy to continue to
qualify as a life insurance contract for Federal income tax purposes if Policy
benefits are reduced during the first 15 Policy years may be treated in whole or
in part as ordinary income subject to tax.
Loans from or secured by a Policy that is not a modified endowment contract
are generally not treated as distributions. However, the tax consequences
associated with Policy loans that are outstanding after the first ten Policy
years are less clear and a tax adviser should be consulted about such loans.
Finally, neither distributions from nor loans from or secured by a Policy
that is not a modified endowment contract are subject to the 10 percent
additional income tax.
INVESTMENT IN THE POLICY. Your investment in the Policy is generally your
aggregate premiums. When a distribution is taken from the Policy, your
investment in the Policy is reduced by the amount of the distribution that is
tax-free.
POLICY LOANS. In general, interest on a Policy loan will not be
deductible. If a Policy loan is outstanding when a Policy is canceled or lapses,
the amount of the outstanding indebtedness will be added to the amount
distributed and will be taxed accordingly. A loan may also be taxed when a
Policy is exchanged. Before taking out a Policy loan, you should consult a tax
adviser as to the tax consequences.
MULTIPLE POLICIES. All modified endowment contracts that are issued by
MetLife (or its affiliates) to the same Policy Owner during any calendar year
are treated as one modified endowment contract for purposes of determining the
amount includible in the Policy Owner's income when a taxable distribution
occurs.
WITHHOLDING. To the extent that Policy distributions are taxable, they are
generally subject to withholding for the recipient's Federal income tax
liability. Recipients can generally elect, however, not to have tax withheld
from distributions.
LIFE INSURANCE PURCHASES BY NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS. Policy Owners that are not U.S. citizens or residents will
generally be subject to U.S. Federal withholding tax on taxable distributions
from life insurance policies at a 30% rate, unless a lower treaty rate applies.
In addition, Policy Owners may be subject to state and/or municipal taxes and
taxes that may be imposed by the Policy Owner's country of citizenship or
residence. Prospective purchasers are advised to consult with a qualified tax
adviser regarding taxation with respect to a purchase of the Policy.
ACCELERATION OF DEATH BENEFIT RIDER. We believe that payments received
under the Acceleration of Death Benefit Rider should be fully excludable from
the gross income of the beneficiary except in certain business contexts.
However, you should consult a qualified tax adviser about the consequences of
adding this rider to a Policy or requesting payment under this rider.
OVERLOAN PROTECTION RIDER. If you are contemplating the purchase of the
Policy with the Overloan Protection Rider, you should be aware that the tax
consequences of the Overloan Protection Rider have not been ruled on by the IRS
or the courts. It is possible that the IRS could assert that the outstanding
loan balance should be treated as a taxable distribution when the Overloan
Protection Rider causes the Policy to be converted into a fixed Policy. You
should consult a tax adviser as to the tax risks associated with the Overloan
Protection Rider.
ESTATE, GIFT AND GENERATION-SKIPPING TRANSFER TAXES. The transfer of the
Policy or the designation of a beneficiary may have Federal, state, and/or local
transfer and inheritance tax consequences, including the imposition
A-47
of gift, estate, and generation-skipping transfer taxes. When the insured dies,
the death proceeds will generally be includable in the Policy Owner's estate for
purposes of the Federal estate tax if the Policy Owner was the insured. If the
Policy Owner was not the insured, the fair market value of the Policy would be
included in the Policy Owner's estate upon the Policy Owner's death. The Policy
would not be includable in the insured's estate if the insured neither retained
incidents of ownership at death nor had given up ownership within three years
before death.
Moreover, under certain circumstances, the Internal Revenue Code may impose
a "generation-skipping transfer tax" when all or part of a life insurance policy
is transferred to, or a death benefit is paid to, an individual two or more
generations younger than the Policy Owner. Regulations issued under the Internal
Revenue Code may require us to deduct the tax from your Policy, or from any
applicable payment, and pay it directly to the IRS.
Qualified tax advisers should be consulted concerning the estate and gift
tax consequences of Policy ownership and distributions under Federal, state and
local law. The individual situation of each Policy Owner or beneficiary will
determine the extent, if any, to which Federal, state, and local transfer and
inheritance taxes may be imposed and how ownership or receipt of Policy proceeds
will be treated for purposes of Federal, state and local estate, inheritance,
generation-skipping and other taxes.
Under previous law, the estate tax applicable exclusion gradually rose to
$3.5 million per person in 2009 and was repealed in 2010 with a modified
carryover basis for heirs.
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation
Act of 2010 (the "2010 Act") has reinstated the estate and generation-skipping
transfer taxes through the end of 2012 with lower top rates and larger
exemptions.
The 2010 Act raises the applicable exclusion amount to $5,000,000. The top
tax rate is set at 35%. A special irrevocable election was provided for estates
of decedents who died in 2010. These estates may generally choose between the
reinstated estate tax and the carryover basis rules which were in effect in
2010.
It is not known if Congress will make the temporary changes of the 2010 Act
permanent, enact permanent repeal of the estate and the generation-skipping
transfer taxes or otherwise modify the estate tax or generation-skipping
transfer tax rules for years after 2012.
The complexity of the tax law, along with uncertainty as to how it might be
modified in 2010 and in coming years, underscores the importance of seeking
guidance from a qualified adviser to help ensure that your estate plan
adequately addresses your needs and those of your beneficiaries under all
possible scenarios.
OTHER POLICY OWNER TAX MATTERS. The application of certain tax rules after
age 100 is not entirely clear. The tax consequences of continuing the Policy
beyond the insured's attained age 121 are also unclear. You should consult a tax
adviser if you intend to keep the Policy in force beyond the insured's attained
age 121.
If a trustee under a pension or profit-sharing plan, or similar deferred
compensation arrangement, owns a Policy, the Federal, state and estate tax
consequences could differ. The amounts of life insurance that may be purchased
on behalf of a participant in a pension or profit-sharing plan are limited.
Providing excessive life insurance coverage in a retirement plan will have
adverse tax consequences. The inclusion of riders, such as waiver of premium
riders, may also have adverse tax consequences. Therefore, it is important to
discuss with your tax adviser the suitability of the Policy, including the
suitability of coverage amounts and Policy riders, before any purchase by a
retirement plan. Any proposed distribution or sale of a Policy by a retirement
plan will also need to be discussed with a tax adviser. The current cost of
insurance for the net amount at risk is treated as a "current fringe benefit"
and must be included annually in the plan participant's gross income. If the
plan participant dies while covered by the plan and the Policy proceeds are paid
to the participant's beneficiary, then the excess of the death benefit over the
cash value is not income taxable. However, the cash value will generally be
taxable to the extent it exceeds the participant's cost basis in the Policy.
Policies owned under these types of plans may be subject to restrictions under
the Employee Retirement Income Security Act of 1974 ("ERISA"). You should
consult a qualified adviser regarding ERISA.
Department of Labor ("DOL") regulations impose requirements for participant
loans under retirement plans covered by ERISA. Plan loans must also satisfy tax
requirements to be treated as nontaxable. Plan loan requirements and provisions
may differ from the Policy loan provisions. Failure of plan loans to comply with
the requirements and provisions of the DOL regulations and of tax law may result
in adverse tax consequences and/or adverse
A-48
consequences under ERISA. Plan fiduciaries and participants should consult a
qualified adviser before requesting a loan under a Policy held in connection
with a retirement plan.
Businesses can use the Policies in various arrangements, including
nonqualified deferred compensation or salary continuance plans, split dollar
insurance plans, executive bonus plans, tax exempt and nonexempt welfare benefit
plans, retiree medical benefit plans and others. The tax consequences of such
plans may vary depending on the particular facts and circumstances. If you are
purchasing the Policy for any arrangement the value of which depends in part on
its tax consequences, you should consult a qualified tax adviser. In recent
years, moreover, Congress has adopted new rules relating to life insurance owned
by businesses. Any business contemplating the purchase of a new Policy or a
change in an existing Policy should consult a tax adviser.
Ownership of the Policy by a corporation, trust or other non-natural person
could jeopardize some (or all) of such entity's interest deduction under
Internal Revenue Code Section 264, even where such entity's indebtedness is in
no way connected to the Policy. In addition, under Section 264(f)(5), if a
business (other than a sole proprietorship) is directly or indirectly a
beneficiary of the Policy, the Policy could be treated as held by the business
for purposes of the Section 264(f) entity-holder rules. Therefore, it would be
advisable to consult with a qualified tax adviser before any non-natural person
is made an owner or holder of the Policy, or before a business (other than a
sole proprietorship) is made a beneficiary of the Policy.
GUIDANCE ON SPLIT DOLLAR PLANS. The IRS has issued guidance on split
dollar insurance plans. A tax adviser should be consulted with respect to this
guidance if you have purchased or are considering the purchase of a Policy for a
split dollar insurance plan. If your Policy is part of an equity split dollar
arrangement taxed under the economic benefit regime, there is a risk that some
portion of the Policy cash value may be taxed prior to any Policy distribution.
If your split dollar plan provides deferred compensation, recently enacted rules
governing deferred compensation arrangements may apply. Failure to adhere to
these rules will result in adverse tax consequences. Consult a tax adviser.
In addition, the Sarbanes-Oxley Act of 2002 (the "Act"), which was signed
into law on July 30, 2002, prohibits, with limited exceptions, publicly-traded
companies, including non-U.S. companies that have securities listed on U.S.
exchanges, from extending, directly or indirectly or through a subsidiary, many
types of personal loans to their directors or executive officers. It is possible
that this prohibition may be interpreted to apply to split-dollar life insurance
arrangements for directors and executive officers of such companies, since such
arrangements can arguably be viewed as involving a loan from the employer for at
least some purposes.
Any affected business contemplating the payment of a premium on an existing
Policy or the purchase of a new Policy in connection with a split-dollar life
insurance arrangement should consult legal counsel.
ALTERNATIVE MINIMUM TAX. There may also be an indirect tax upon the income
in the Policy or the proceeds of a Policy under the Federal corporate
alternative minimum tax, if the Policy Owner is subject to that tax.
POSSIBLE TAX LAW CHANGES. Although the likelihood of legislative changes
is uncertain, there is always the possibility that the tax treatment of the
Policy could change by legislation or otherwise. Consult a tax adviser with
respect to legislative developments and their effect on the Policy.
FOREIGN TAX CREDITS. To the extent permitted under Federal tax law, we may
claim the benefit of certain foreign tax credits attributable to taxes paid by
certain Portfolios to foreign jurisdictions.
METLIFE'S INCOME TAXES
Under current Federal income tax law, MetLife is not taxed on the Separate
Account's operations. Thus, currently we do not deduct a charge from the
Separate Account for Federal income taxes. We reserve the right to charge the
Separate Account for any future Federal income taxes we may incur.
Under current laws in several states, we may incur state and local taxes
(in addition to premium taxes). These taxes are not now significant and we are
not currently charging for them. If they increase, we may deduct charges for
such taxes.
A-49
DISTRIBUTION OF THE POLICIES
We have entered into a distribution agreement with our affiliate, MetLife
Investors Distribution Company ("Distributor"), for the distribution of the
Policies. We and Distributor have entered into selling agreements with other
affiliated and unaffiliated broker-dealers ("selling firms") for the sale of the
Policies through their registered representatives. Our affiliated broker-dealers
are MetLife Securities, Inc. ("MSI"), New England Securities Corporation
("NES"), Tower Square Securities, Inc. and Walnut Street Securities, Inc.
Distributor, MSI, NES and our other affiliated selling firms are registered with
the SEC as broker-dealers under the Securities Exchange Act of 1934 and are
members of the Financial Industry Regulatory Authority ("FINRA"). FINRA provides
background information about broker-dealers and their registered representatives
through FINRA BrokerCheck. You may contact the FINRA BrokerCheck Hotline at 1-
800-289-9999, or log on to www.finra.org. An investor brochure that includes
information describing FINRA BrokerCheck is available through the Hotline or on-
line.
COMMISSIONS AND OTHER CASH COMPENSATION
All selling firms receive commissions. The portion of the commission
payments that selling firms pass on to their sales representatives is determined
in accordance with their internal compensation programs. Those programs may also
include other types of cash and non-cash compensation and other benefits. A
selling firm or a sales representative of a selling firm may receive different
compensation for selling one product over another and/or may be inclined to
favor one product provider over another due to differing compensation rates.
MSI and NES sales representatives receive cash payments for the products
they sell and service based on a "gross dealer concession" model. The cash
payment is equal to a percentage of the gross dealer concession amount described
below. The percentage is determined based on a formula that takes into
consideration the amount of proprietary products the sales representative sells
and services. Proprietary products are products issued by us or an affiliate.
Because sales of proprietary products are a factor in determining the percentage
of the gross dealer concession amount to which MSI and NES sales representative
are entitled, these sales representatives have an incentive to favor sale of the
Policy over similar products issued by non-affiliates.
In the first Policy year, the gross dealer concession amount for the
Policies is 117% of premiums paid up to the Commissionable Target Premium, and
5% of premiums paid in excess of the Commissionable Target Premium. In Policy
years 2 through 10, the gross dealer concession amount is 8.0% of all premiums
paid, and in Policy years 11 and thereafter the gross dealer concession amount
is 2.0% of all premiums. Commissionable Target Premium is generally the Target
Premium as defined in the Glossary, excluding the portions associated with flat
extras and certain riders, and is generally equal to or less than the Target
Premium. Sales representatives of affiliated selling firms and their managers
may be eligible for various cash benefits that we may provide jointly with
affiliated selling firms. Ask your sales representative for further information
about what your sales representative and the selling firm for which he or she
works may receive in connection with your purchase of the Policy.
Sales representatives of our affiliates and their Managers may also be
eligible for cash compensation such as bonuses, equity awards (for example,
stock options), training allowances, supplemental salary, payments based on a
percentage of the Policy's cash value, financing arrangements, marketing
support, medical and retirement benefits and other insurance and non-insurance
benefits. The amount of this cash compensation is based primarily on the amount
of proprietary products sold. Proprietary products are products issued by us and
our affiliates. Sales representatives of certain affiliates must meet a minimum
level of sales of proprietary products in order to maintain their agent status
with the company and in order to be eligible for most of the cash compensation
listed above. Managers may be eligible for additional cash compensation based on
the performance (with emphasis on the sale of proprietary products) of the sales
representatives that the Manager supervises. Managers may pay a portion of their
cash compensation to their sales representatives.
Receipt of the cash compensation described above may provide our sales
representatives and their Managers, and the sales representatives and Managers
of our affiliates, with an incentive to favor the sale of the Policies over
similar products issued by non-affiliates.
The maximum commissions paid for sale of the Policies through unaffiliated
selling firms, and through our affiliated selling firms Walnut Street
Securities, Inc. and Tower Square Securities, Inc. are as follows: 90% of
A-50
premiums paid up to the Commissionable Target Premium, and 3.0% of premiums paid
in excess of Commissionable Target Premium in Policy year 1; 1.25% of all
premiums paid in Policy years 2 through 10; and 0.25% of all premiums paid
thereafter. In addition, commissions are payable based on the cash value of the
Policies in the following amounts: 0.10% in Policy years 2 through 10; 0.08% in
Policy years 11 through 20; and 0.06% thereafter. Commissionable Target Premium
is generally the Target Premium as defined in the Glossary, excluding the
portions associated with flat extras and certain riders, and is generally equal
to or less than the Target Premium. We and/or distributor may also make bonus
payments to selling firms. The maximum amount of these bonus payments are as
follows: 9.0% of premiums paid up to the Commissionable Target Premium and 2.0%
of premiums paid in excess of the Commissionable Target Premium in Policy year
1; 19.75% of premiums paid up to the Commissionable Target Premium and 0.25% of
premiums paid in excess of the Commissionable Target Premium in Policy year 2;
and 0.25% of all premiums paid thereafter. Ask your sales representative for
further information about what your sales representative and the selling firm
for which he or she works may receive in connection with your purchase of the
Policy.
NON-CASH COMPENSATION
Sales representatives and their Managers (and the sales representatives and
managers of our affiliates) are also eligible for various non-cash compensation
programs that we offer such as conferences, trips, prizes, and awards. Other
payments may be made for other services that do not directly involve the sale of
the Policies. These services may include the recruitment and training of
personnel, production of promotional literature, and similar services.
OTHER PAYMENTS
We and Distributor may enter into preferred distribution arrangements with
selected selling firms under which we pay additional compensation, including
marketing allowances, introduction fees, persistency payments, preferred status
fees and industry conference fees. Marketing allowances are periodic payments to
certain selling firms based on cumulative periodic (usually quarterly) sales of
these variable insurance products. Introduction fees are payments to selling
firms in connection with the addition of these variable products to the selling
firm's line of investment products, including expenses relating to establishing
the data communications systems necessary for the selling firm to offer, sell
and administer these products. Persistency payments are periodic payments based
on account and/or cash values of these variable insurance products. Preferred
status fees are paid to obtain preferred treatment of these products in selling
firms' marketing programs, which may include marketing services, participation
in marketing meetings, listings in data resources and increased access to their
sales representatives. Industry conference fees are amounts paid to cover in
part the costs associated with sales conferences and educational seminars for
selling firms' sales representatives.
These preferred distribution arrangements are not offered to all selling
firms. The terms of any particular agreement governing compensation may vary
among selling firms and the amounts may be significant. Distributor has entered
into preferred distribution arrangements with our affiliated broker-dealers,
Walnut Street Securities Inc. and Tower Square Securities, Inc. and with the
unaffiliated selling firms listed in the Statement of Additional Information. We
and Distributor may enter into similar arrangements with our other affiliates,
MetLife Securities, Inc. and New England Securities Corporation. The prospect of
receiving, or the receipt of, additional compensation as described above may
provide selling firms or their representatives with an incentive to favor sales
of the Policies over other variable insurance policies (or other investments)
with respect to which the selling firm does not receive additional compensation,
or lower levels of additional compensation. You may wish to take such payment
arrangements into account when considering and evaluating any recommendation
relating to the Policies. For more information about any such arrangements, ask
your sales representative for further information about what your sales
representative and the selling firm for which he or she works may receive in
connection with your purchase of a Policy.
We also pay amounts to Distributor that may be used for its operating and
other expenses, including the following sales expenses: compensation and bonuses
for Distributor's management team, advertising expenses, and other expenses of
distributing the Policies. Distributor's management team may also be eligible
for non-cash compensation items that we may provide jointly with Distributor.
Non-cash items include conferences, seminars and trips (including travel,
lodging and meals in connection therewith), entertainment, merchandise and
similar items.
A-51
We pay American Funds Distributors, Inc., principal underwriter for the
American Funds Insurance Series, a percentage of all premiums allocated to the
American Funds Bond Fund, the American Funds Global Small Capitalization Fund,
the American Funds Growth Fund, and the American Funds Growth-Income Fund, for
the services it provides in marketing the Funds' shares in connection with the
Policies. Each of these Funds makes payments to Distributor under their
distribution plans in consideration of services provided and expenses incurred
by Distributor in distributing their shares. These payments currently equal
0.25% of Separate Account assets invested in the particular Portfolio. (See "Fee
Tables--Annual Portfolio Operating Expenses" and the Portfolio prospectuses.)
Commissions and other incentives or payments described above are not
charged directly to Policy Owners or the Separate Account. We intend to recoup
commissions and other sales expenses through fees and charges deducted under the
Policy.
The Statement of Additional Information contains additional information
about the compensation paid for the sale of the Policies.
LEGAL PROCEEDINGS
In the ordinary course of business, MetLife, similar to other life
insurance companies, is involved in lawsuits (including class action lawsuits),
arbitrations and other legal proceedings. Also, from time to time, state and
federal regulators or other officials conduct formal and informal examinations
or undertake other actions dealing with various aspects of the financial
services and insurance industries. In some legal proceedings involving insurers,
substantial damages have been sought and/or material settlement payments have
been made. It is not possible to predict with certainty the ultimate outcome of
any pending legal proceeding or regulatory action. However, MetLife does not
believe any such action or proceeding will have a material adverse effect upon
the Separate Account or upon the ability of MetLife Investors Distribution
Company to perform its contract with the Separate Account or of MetLife to meet
its obligations under the Policies.
RESTRICTIONS ON FINANCIAL TRANSACTIONS
Applicable laws designed to counter terrorism and prevent money laundering
might, in certain circumstances, require us to reject a premium payment and/or
block or "freeze" your Policy. If these laws apply in a particular situation, we
would not be allowed to process any request for withdrawals, surrenders, loans
or death benefits, make transfers, or continue making payments under your death
benefit option until instructions are received from the appropriate regulator.
We also may be required to provide additional information about you or your
Policy to government regulators.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The financial statements and financial highlights comprising each of the
Investment Divisions of Metropolitan Life Separate Account UL included in this
Prospectus, have been audited by Deloitte & Touche LLP, an independent
registered public accounting firm, as stated in their report appearing herein.
Such financial statements and financial highlights have been so included in
reliance upon the report of such firm given upon their authority as experts in
accounting and auditing.
The principal business address of Deloitte & Touche LLP is Two World
Financial Center, New York, New York 10281-1414.
FINANCIAL STATEMENTS
You may find the financial statements of MetLife in the Statement of
Additional Information. MetLife's financial statements should be considered only
as bearing on our ability to meet our obligations under the Policies. They
should not be considered as bearing on the investment performance of the assets
held in the Separate Account.
A-52
GLOSSARY
AGE. The age of an insured refers to the insured's age at his or her
nearest birthday.
ATTAINED AGE. The insured's issue age plus the number of completed Policy
years.
BASE POLICY. The Policy without riders.
CASH SURRENDER VALUE. The amount you receive if you surrender the Policy.
It is equal to the Policy's cash value reduced by any Surrender Charge that
would apply on surrender and by any outstanding Policy loan and accrued
interest.
CASH VALUE. A Policy's cash value includes the amount of its cash value
held in the Separate Account, the amount held in the Fixed Account and, if there
is an outstanding Policy loan, the amount of its cash value held in the Loan
Account.
FIXED ACCOUNT. The Fixed Account is a part of our general account to which
you may allocate net premiums. It provides guarantees of principal and interest.
INVESTMENT DIVISION. A sub-account of the Separate Account that invests in
shares of an open-ended management investment company or other pools of
investment assets.
INVESTMENT START DATE. This is the later of the Policy Date and the date
we first receive a premium payment for the Policy.
ISSUE AGE. The age of the insured as of his or her birthday nearest to the
Policy Date.
LOAN ACCOUNT. The account to which cash value from the Separate and/or
Fixed Accounts is transferred when a Policy loan is taken.
NET CASH VALUE. The Policy's cash value less any outstanding loans and
accrued loan interest.
PLANNED PREMIUM. The Planned Premium is the premium payment schedule you
choose to help meet your future goals under the Policy. The Planned Premium
consists of a first-year premium amount and an amount for premium payments in
subsequent Policy years. It is subject to certain limits under the Policy.
POLICY DATE. The date on which coverage under the Policy and Monthly
Deductions begin. If you make a premium payment with the application, unless you
request otherwise, the Policy Date is generally the date the Policy application
is approved. If you choose to pay the initial premium upon delivery of the
Policy, unless you request otherwise, the Policy Date is generally the date on
which we receive your initial payment.
PREMIUMS. Premiums include all payments under the Policy, whether a
Planned Premium or an unscheduled payment.
SEPARATE ACCOUNT. Metropolitan Life Separate Account UL, a separate
account established by MetLife to receive and invest premiums paid under the
Policies and certain other variable life insurance policies, and to provide
variable benefits.
TARGET PREMIUM. We use the Target Premium to determine the amount of
Mortality and Expense Risk Charge imposed on the Separate Account and the amount
of Sales Charge imposed on premium payments. The Target Premium varies by issue
age, sex, smoking status and any flat extras and substandard rating of the
insured, and the Policy's base face amount, with additional amounts for most
riders.
YOU. "You" refers to the Policy Owner.
A-53
APPENDIX A
GUIDELINE PREMIUM TEST AND CASH VALUE ACCUMULATION TEST
In order to meet the Internal Revenue Code's definition of life insurance,
the Policies provide that the death benefit will not be less than what is
required by the "guideline premium test" under Section 7702(a)(2) of the
Internal Revenue Code, or the "cash value accumulation test" under Section
7702(a)(1) of the Internal Revenue Code, as selected by you when the Policy is
issued. The test you choose at issue will be used for the life of the Policy.
(See "Death Benefits.")
For the guideline premium test, the table below shows the percentage of the
Policy's cash value that is used to determine the death benefit.
AGE OF AGE OF
INSURED AT START OF PERCENTAGE OF INSURED AT START OF PERCENTAGE OF
THE POLICY YEAR CASH VALUE THE POLICY YEAR CASH VALUE
------------------- ------------- ------------------- -------------
0 through 40 250 61 128
41 243 62 126
42 236 63 124
43 229 64 122
44 222 65 120
45 215 66 119
46 209 67 118
47 203 68 117
48 197 69 116
49 191 70 115
50 185 71 113
51 178 72 111
52 171 73 109
53 164 74 107
54 157 75 through 90 105
55 150 91 104
56 146 92 103
57 142 93 102
58 138 94 through 121 101
59 134
60 130
For the cash value accumulation test, sample net single premium factors for
selected ages of male and female insureds, in a standard or better nonsmoker
risk class, are listed below.
NET SINGLE PREMIUM
FACTOR
------------------
AGE MALE FEMALE
--- ------- -------
30............................................................ 5.82979 6.59918
40............................................................ 4.11359 4.63373
50............................................................ 2.93292 3.28706
60............................................................ 2.14246 2.40697
70............................................................ 1.64028 1.82665
80............................................................ 1.32530 1.44515
90............................................................ 1.15724 1.22113
100........................................................... 1.08417 1.10646
120........................................................... 1.02597 1.02597
A-54
APPENDIX B
ILLUSTRATIONS OF DEATH BENEFITS, CASH VALUES
AND CASH SURRENDER VALUES
The tables in Appendix B illustrate the way the Policies work, based on
assumptions about investment returns and the insured's characteristics. They
show how the death benefit, cash surrender value and cash value could vary over
an extended period of time assuming hypothetical gross rates of return (i.e.,
investment income and capital gains and losses, realized or unrealized) for the
Separate Account equal to constant after tax annual rates of 0%, 6% and 10%. The
tables are based on a face amount of $350,000 for a male aged 35. The insured is
assumed to be in the preferred nonsmoker risk class. The tables assume no rider
benefits and assume that no allocations are made to the Fixed Account. Values
are first given based on current Policy charges and then based on guaranteed
Policy charges. (See "Charges.") Illustrations show the Option A death benefit.
Policy values would be different (either higher or lower) from the
illustrated amounts in certain circumstances. For example, illustrated amounts
would be different where actual gross rates of return averaged 0%, 6% or 10%,
but: (i) the rates of return varied above and below these averages during the
period, (ii) premiums were paid in other amounts or at other than annual
intervals, or (iii) cash values were allocated differently among individual
Investment Divisions with varying rates of return. They would also differ if a
Policy loan or partial withdrawal were made during the period of time
illustrated, if the insured were female or in another risk classification, or if
the Policies were issued at unisex rates. For example, as a result of variations
in actual returns, additional premium payments beyond those illustrated may be
necessary to maintain the Policy in force for the periods shown or to realize
the Policy values shown, even if the average rate of return is achieved.
The death benefits, cash surrender values and cash values shown in the
tables reflect: (i) deductions from premiums for the sales charge, premium tax
and federal tax charge; and (ii) a Monthly Deduction (consisting of a Coverage
Expense Charge, a Mortality and Expense Risk Charge, and a charge for the cost
of insurance) from the cash value on the first day of each Policy month. The
cash surrender values reflect a Surrender Charge deducted from the cash value
upon surrender, face reduction or lapse during the first ten Policy years. (See
"Charges.") The illustrations reflect an arithmetic average of the gross
investment advisory fees and operating expenses of the Portfolios, at an annual
rate of .70% of the average daily net assets of the Portfolios. This average
does not reflect expense subsidies by the investment advisers of certain
Portfolios.
The gross rates of return used in the illustrations do not reflect the
deductions of the fees and expenses of the Portfolios. Taking account of the
average investment advisory fee and operating expenses of the Portfolios, the
gross annual rates of return of 0%, 6% and 10% correspond to net investment
experience at constant annual rates of -.70%, 5.26% and 9.23%, respectively.
If you request, we will furnish a personalized illustration reflecting the
proposed insured's age, sex, risk class, and the face amount or premium payment
schedule requested. Because these and other assumptions will differ, the values
shown in the personalized illustrations can differ very substantially from those
shown in the tables. Therefore, you should carefully review the information that
accompanies any personalized illustration. That information will disclose all
the assumptions on which the personalized illustration is based. Where
applicable, we will also furnish on request a personalized illustration for a
Policy which is not affected by the sex of the insured. You should contact your
registered representative to request a personalized illustration.
A-55
MALE ISSUE AGE 35
$1,890 ANNUAL PREMIUM FOR
PREFERRED NONSMOKER RISK CLASS
$350,000 FACE AMOUNT
OPTION A DEATH BENEFIT
THE ILLUSTRATION IS BASED ON CURRENT POLICY CHARGES.
DEATH BENEFIT CASH SURRENDER VALUE CASH VALUE
ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL
END OF GROSS ANNUAL RATE OF RETURN OF GROSS ANNUAL RATE OF RETURN OF GROSS ANNUAL RATE OF RETURN OF
POLICY ----------------------------------- ---------------------------------- ----------------------------------
YEAR 0% 6% 10% 0% 6% 10% 0% 6% 10%
------ -- -- --- -- -- --- -- -- ---
1 $350,000 $350,000 $ 350,000 $ 0 $ 0 $ 0 $ 1,005 $ 1,086 $ 1,141
2 350,000 350,000 350,000 0 0 0 1,966 2,191 2,347
3 350,000 350,000 350,000 0 0 0 2,883 3,315 3,624
4 350,000 350,000 350,000 0 211 730 3,757 4,458 4,977
5 350,000 350,000 350,000 988 2,022 2,814 4,582 5,616 6,408
6 350,000 350,000 350,000 2,089 3,519 4,652 5,356 6,786 7,919
7 350,000 350,000 350,000 3,137 5,027 6,576 6,078 7,967 9,516
8 350,000 350,000 350,000 4,462 6,874 8,921 6,749 9,161 11,208
9 350,000 350,000 350,000 6,915 9,936 12,585 8,058 11,079 13,729
10 350,000 350,000 350,000 9,312 13,047 16,428 9,312 13,047 16,428
15 350,000 350,000 350,000 15,202 24,343 33,993 15,202 24,343 33,993
20 350,000 350,000 350,000 20,062 38,046 60,578 20,062 38,046 60,578
25 350,000 350,000 350,000 23,173 54,252 100,670 23,173 54,252 100,670
30 350,000 350,000 350,000 23,168 72,404 161,231 23,168 72,404 161,231
35 350,000 350,000 350,000 18,002 91,519 254,463 18,002 91,519 254,463
40 350,000 350,000 430,997 5,529 111,077 402,801 5,529 111,077 402,801
45 350,000 664,643 125,118 632,993 125,118 632,993
50 350,000 1,031,182 112,845 982,078 112,845 982,078
55 350,000 1,574,989 12,232 1,499,990 12,232 1,499,990
60 2,313,016 2,290,115 2,290,115
65 3,563,071 3,527,793 3,527,793
70 5,473,532 5,419,339 5,419,339
75 8,375,972 8,293,042 8,293,042
80 12,733,914 12,607,835 12,607,835
85 19,170,817 18,981,007 18,981,007
86 20,793,283 20,587,409 20,587,409
IT IS EMPHASIZED THAT THE HYPOTHETICAL GROSS ANNUAL RATES OF RETURN SHOWN ABOVE
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE GROSS ANNUAL RATES OF RETURN. ACTUAL GROSS RATES OF RETURN MAY BE MORE OR
LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING THE
INVESTMENT ALLOCATIONS MADE BY A POLICY OWNER, THE FREQUENCY OF PREMIUM PAYMENTS
CHOSEN BY A POLICY OWNER, AND THE INVESTMENT EXPERIENCE OF THE POLICY'S
INVESTMENT DIVISIONS. THE DEATH BENEFIT, CASH VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS ANNUAL RATES OF
RETURN AVERAGED 0%, 6%, AND 10% OVER A PERIOD OF YEARS, BUT VARIED ABOVE OR
BELOW THAT AVERAGE DURING THE PERIOD. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY
LOAN WERE MADE DURING THE PERIOD. NO REPRESENTATIONS CAN BE MADE BY METLIFE OR
THE PORTFOLIOS THAT THOSE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY
ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
A-56
MALE ISSUE AGE 35
$1,890 ANNUAL PREMIUM FOR
PREFERRED NONSMOKER RISK CLASS
$350,000 FACE AMOUNT
OPTION A DEATH BENEFIT
THIS ILLUSTRATION IS BASED ON GUARANTEED POLICY CHARGES.
DEATH BENEFIT CASH SURRENDER VALUE CASH VALUE
ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL
GROSS ANNUAL GROSS ANNUAL GROSS ANNUAL
END OF RATE OF RETURN OF RATE OF RETURN OF RATE OF RETURN OF
POLICY -------------------------------- ---------------------------- ----------------------------
YEAR 0% 6% 10% 0% 6% 10% 0% 6% 10%
------ -- -- --- -- -- --- -- -- ---
1 $350,000 $350,000 $350,000 $ 0 $ 0 $ 0 $ 697 $ 768 $ 816
2 350,000 350,000 350,000 0 0 0 1,364 1,551 1,680
3 350,000 350,000 350,000 0 0 0 2,004 2,350 2,599
4 350,000 350,000 350,000 0 0 0 2,604 3,154 3,564
5 350,000 350,000 350,000 0 373 988 3,169 3,967 4,581
6 350,000 350,000 350,000 428 1,518 2,386 3,695 4,785 5,653
7 350,000 350,000 350,000 1,233 2,657 3,833 4,174 5,598 6,774
8 350,000 350,000 350,000 2,307 4,108 5,649 4,594 6,395 7,936
9 350,000 350,000 350,000 3,807 6,027 7,994 4,951 7,170 9,137
10 350,000 350,000 350,000 5,235 7,911 10,370 5,235 7,911 10,370
15 350,000 350,000 350,000 5,674 11,244 17,461 5,674 11,244 17,461
20 350,000 350,000 350,000 3,933 13,131 25,911 3,933 13,131 25,911
25 350,000 350,000 10,352 33,810 10,352 33,810
30 350,000 37,648 37,648
35 350,000 29,168 29,168
40
45
50
55
60
65
70
75
80
85
86
IT IS EMPHASIZED THAT THE HYPOTHETICAL GROSS ANNUAL RATES OF RETURN SHOWN ABOVE
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE GROSS ANNUAL RATES OF RETURN. ACTUAL GROSS RATES OF RETURN MAY BE MORE OR
LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING THE
INVESTMENT ALLOCATIONS MADE BY A POLICY OWNER, THE FREQUENCY OF PREMIUM PAYMENTS
CHOSEN BY A POLICY OWNER, AND THE INVESTMENT EXPERIENCE OF THE POLICY'S
INVESTMENT DIVISIONS. THE DEATH BENEFIT, CASH VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS ANNUAL RATES OF
RETURN AVERAGED 0%, 6%, AND 10% OVER A PERIOD OF YEARS, BUT VARIED ABOVE OR
BELOW THAT AVERAGE DURING THE PERIOD. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY
LOAN WERE MADE DURING THE PERIOD. NO REPRESENTATIONS CAN BE MADE BY METLIFE OR
THE PORTFOLIOS THAT THOSE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY
ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
A-57
Additional information about the Policy and the Separate Account can be
found in the Statement of Additional Information, which is available online at
our website www.metlife.com. You may also obtain a copy of the Statement of
Additional Information, without charge, by calling our TeleService Center at 1-
800-638-5000. You may also obtain, without charge, a personalized illustration
of death benefits, cash surrender values and cash values by calling your
registered representative.
For Investment Division transfers and premium reallocations, for current
information about your Policy values, to change or update Policy information
such as your billing address, billing mode, beneficiary or ownership, for
information about other Policy transactions, and to ask questions about your
Policy, you may call us at 1-800-638-5000.
This prospectus incorporates by reference all of the information contained
in the Statement of Additional Information, which is legally part of this
prospectus.
Information about the Policy and the Separate Account, including the
Statement of Additional Information, is available for viewing and copying at the
SEC's Public Reference Room in Washington, D.C. Information about the operation
of the Public Reference Room may be obtained by calling the SEC at 202-551-8090.
The Statement of Additional Information, reports and other information about the
Separate Account are available on the SEC Internet site at www.sec.gov. Copies
of this information may be obtained upon payment of a duplicating fee, by
writing to the SEC's Public Reference Section at 100 F Street, NE, Washington,
DC 20549-0102.
File No. 811-06025
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Policy Owners of
Metropolitan Life Separate Account UL
and Board of Directors of
Metropolitan Life Insurance Company
We have audited the accompanying statements of assets and liabilities of
Metropolitan Life Separate Account UL (the "Separate Account") of Metropolitan
Life Insurance Company (the "Company") comprising each of the individual
Investment Divisions listed in Note 2.A. as of December 31, 2010, the related
statements of operations and changes in net assets for the respective stated
periods in the three years then ended, and the financial highlights in Note 8
for the respective stated periods in the five years then ended. These financial
statements and financial highlights are the responsibility of the Separate
Account's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. The Separate Account is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. Our
audits included consideration of internal control over financial reporting as a
basis for designing audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the
Separate Account's internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
Our procedures included confirmation of investments owned as of December 31,
2010, by correspondence with the custodian or mutual fund companies. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the Investment Divisions constituting the Separate Account of the Company as
of December 31, 2010, the results of their operations and changes in their net
assets for the respective stated periods in the three years then ended, and the
financial highlights for the respective stated periods in the five years then
ended, in conformity with accounting principles generally accepted in the
United States of America.
/s/ DELOITTE & TOUCHE LLP
Certified Public Accountants
Tampa, Florida
March 31, 2011
This page is intentionally left blank.
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2010
MSF BLACKROCK MSF BLACKROCK MSF METLIFE MSF ARTIO
DIVERSIFIED AGGRESSIVE GROWTH STOCK INDEX INTERNATIONAL STOCK
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 263,102,792 $ 200,141,320 $ 671,764,338 $ 45,766,808
Accrued dividends -- -- -- --
Due from Metropolitan Life
Insurance Company -- 205 -- 68
------------------- ------------------- ------------------- -------------------
Total Assets 263,102,792 200,141,525 671,764,338 45,766,876
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 476 -- 12,373 --
------------------- ------------------- ------------------- -------------------
Total Liabilities 476 -- 12,373 --
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 263,102,316 $ 200,141,525 $ 671,751,965 $ 45,766,876
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
1
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED)
DECEMBER 31, 2010
MSF
MSF T. ROWE PRICE MSF OPPENHEIMER NEUBERGER BERMAN
SMALL CAP GROWTH GLOBAL EQUITY MSF MFS VALUE MID CAP VALUE
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 87,990,296 $ 43,706,628 $ 54,046,050 $ 77,987,777
Accrued dividends -- -- -- --
Due from Metropolitan Life
Insurance Company 14,570 -- 6,800 32
------------------- ------------------- ------------------- -------------------
Total Assets 88,004,866 43,706,628 54,052,850 77,987,809
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company -- 58 -- --
------------------- ------------------- ------------------- -------------------
Total Liabilities -- 58 -- --
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 88,004,866 $ 43,706,570 $ 54,052,850 $ 77,987,809
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
2
MSF
MSF T. ROWE PRICE MSF BARCLAYS CAPITAL MSF MORGAN STANLEY MSF RUSSELL MSF JENNISON NEUBERGER BERMAN
LARGE CAP GROWTH AGGREGATE BOND INDEX EAFE INDEX 2000 INDEX GROWTH GENESIS
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- -------------------- ------------------- ------------------- ------------------- -------------------
$ 45,774,309 $ 114,484,199 $ 65,360,236 $ 56,596,283 $ 15,400,256 $ 78,718,305
-- -- -- -- -- --
778 556 7,593 -- 8,145 --
------------------- -------------------- ------------------- ------------------- ------------------- -------------------
45,775,087 114,484,755 65,367,829 56,596,283 15,408,401 78,718,305
------------------- -------------------- ------------------- ------------------- ------------------- -------------------
-- -- -- 56 -- 209
------------------- -------------------- ------------------- ------------------- ------------------- -------------------
-- -- -- 56 -- 209
------------------- -------------------- ------------------- ------------------- ------------------- -------------------
$ 45,775,087 $ 114,484,755 $ 65,367,829 $ 56,596,227 $ 15,408,401 $ 78,718,096
=================== ==================== =================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
3
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED)
DECEMBER 31, 2010
MSF METLIFE MSF LOOMIS SAYLES MSF BLACKROCK MSF DAVIS
MID CAP STOCK INDEX SMALL CAP GROWTH LARGE CAP VALUE VENTURE VALUE
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 65,795,207 $ 7,430,424 $ 12,899,195 $ 57,904,626
Accrued dividends -- -- -- --
Due from Metropolitan Life
Insurance Company 855 17 -- 5,992
------------------- ------------------- ------------------- -------------------
Total Assets 65,796,062 7,430,441 12,899,195 57,910,618
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company -- -- 58 --
------------------- ------------------- ------------------- -------------------
Total Liabilities -- -- 58 --
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 65,796,062 $ 7,430,441 $ 12,899,137 $ 57,910,618
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
4
MSF WESTERN
MSF BLACKROCK ASSET MANAGEMENT
MSF LOOMIS SAYLES LEGACY LARGE CAP MSF BLACKROCK MSF FI MSF MET/ARTISAN STRATEGIC BOND
SMALL CAP CORE GROWTH BOND INCOME VALUE LEADERS MID CAP VALUE OPPORTUNITIES
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 18,282,804 $ 7,322,522 $ 84,862,621 $ 6,488,970 $ 46,594,384 $ 23,786,569
-- -- -- -- -- --
26 1 215 -- 6,757 --
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
18,282,830 7,322,523 84,862,836 6,488,970 46,601,141 23,786,569
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
46 -- -- 38 -- 67
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
46 -- -- 38 -- 67
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 18,282,784 $ 7,322,523 $ 84,862,836 $ 6,488,932 $ 46,601,141 $ 23,786,502
=================== =================== =================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
5
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED)
DECEMBER 31, 2010
MSF WESTERN MSF METLIFE
ASSET MANAGEMENT MSF BLACKROCK MSF MFS CONSERVATIVE
U.S. GOVERNMENT MONEY MARKET TOTAL RETURN ALLOCATION
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 16,633,677 $ 29,829,068 $ 7,708,232 $ 4,036,490
Accrued dividends -- 58 -- --
Due from Metropolitan Life
Insurance Company -- -- 40 6
------------------- ------------------- ------------------- -------------------
Total Assets 16,633,677 29,829,126 7,708,272 4,036,496
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 26 10,790 -- --
------------------- ------------------- ------------------- -------------------
Total Liabilities 26 10,790 -- --
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 16,633,651 $ 29,818,336 $ 7,708,272 $ 4,036,496
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
6
MSF METLIFE MSF METLIFE
CONSERVATIVE TO MSF METLIFE MODERATE TO MSF METLIFE
MODERATE ALLOCATION MODERATE ALLOCATION AGGRESSIVE ALLOCATION AGGRESSIVE ALLOCATION JANUS ASPEN JANUS JANUS ASPEN BALANCED
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- --------------------- --------------------- ------------------- --------------------
$ 6,925,753 $ 37,214,364 $ 65,064,142 $ 13,599,650 $ 7,832,027 $ 2,526,893
-- -- -- -- -- --
-- -- -- -- -- --
------------------- ------------------- --------------------- --------------------- ------------------- --------------------
6,925,753 37,214,364 65,064,142 13,599,650 7,832,027 2,526,893
------------------- ------------------- --------------------- --------------------- ------------------- --------------------
52 33 73 1 25 34
------------------- ------------------- --------------------- --------------------- ------------------- --------------------
52 33 73 1 25 34
------------------- ------------------- --------------------- --------------------- ------------------- --------------------
$ 6,925,701 $ 37,214,331 $ 65,064,069 $ 13,599,649 $ 7,832,002 $ 2,526,859
=================== =================== ===================== ===================== =================== ====================
The accompanying notes are an integral part of these financial statements.
7
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED)
DECEMBER 31, 2010
INVESCO V.I. INVESCO V.I.
JANUS ASPEN FORTY JANUS ASPEN OVERSEAS GLOBAL REAL ESTATE INTERNATIONAL GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- -------------------- ------------------- --------------------
ASSETS:
Investments at fair value $ 1,212,504 $ 375,924 $ 1,597,811 $ 272,422
Accrued dividends -- -- -- --
Due from Metropolitan Life
Insurance Company 264 -- -- --
------------------- -------------------- ------------------- --------------------
Total Assets 1,212,768 375,924 1,597,811 272,422
------------------- -------------------- ------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company -- 73 700 11
------------------- -------------------- ------------------- --------------------
Total Liabilities -- 73 700 11
------------------- -------------------- ------------------- --------------------
NET ASSETS $ 1,212,768 $ 375,851 $ 1,597,111 $ 272,411
=================== ==================== =================== ====================
The accompanying notes are an integral part of these financial statements.
8
FTVIPT FTVIPT ALLIANCEBERNSTEIN
INVESCO V.I. INVESCO V.I. FTVIPT TEMPLETON MUTUAL GLOBAL TEMPLETON GLOBAL GLOBAL
GOVERNMENT VAN KAMPEN COMSTOCK FOREIGN SECURITIES DISCOVERY SECURITIES BOND SECURITIES THEMATIC GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------- ------------------- -------------------
$ 105,717 $ 32,084 $ 9,245,237 $ 967,460 $ 3,730 $ 119,520
-- -- -- -- -- --
-- -- -- -- -- --
------------------- ------------------- ------------------- -------------------- ------------------- -------------------
105,717 32,084 9,245,237 967,460 3,730 119,520
------------------- ------------------- ------------------- -------------------- ------------------- -------------------
4 -- 543 128 2 32
------------------- ------------------- ------------------- -------------------- ------------------- -------------------
4 -- 543 128 2 32
------------------- ------------------- ------------------- -------------------- ------------------- -------------------
$ 105,713 $ 32,084 $ 9,244,694 $ 967,332 $ 3,728 $ 119,488
=================== =================== =================== ==================== =================== ===================
The accompanying notes are an integral part of these financial statements.
9
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED)
DECEMBER 31, 2010
ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN FIDELITY VIP FIDELITY VIP ASSET
INTERMEDIATE BOND INTERNATIONAL VALUE CONTRAFUND MANAGER: GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 43,368 $ 1,357 $ 2,677,586 $ 1,905,663
Accrued dividends -- -- -- --
Due from Metropolitan Life
Insurance Company -- -- -- --
------------------- ------------------- ------------------- -------------------
Total Assets 43,368 1,357 2,677,586 1,905,663
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 103 -- 213 55
------------------- ------------------- ------------------- -------------------
Total Liabilities 103 -- 213 55
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 43,265 $ 1,357 $ 2,677,373 $ 1,905,608
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
10
FIDELITY VIP
INVESTMENT FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP
GRADE BOND EQUITY-INCOME HIGH INCOME FIDELITY VIP MID CAP FREEDOM 2010 FREEDOM 2020
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------- ------------------- -------------------
$ 535,348 $ 202,704 $ 4,568 $ 462,038 $ 31,863 $ 738,709
-- -- -- -- -- --
-- -- -- -- -- --
------------------- ------------------- ------------------- -------------------- ------------------- -------------------
535,348 202,704 4,568 462,038 31,863 738,709
------------------- ------------------- ------------------- -------------------- ------------------- -------------------
4 14 3 7 3 7
------------------- ------------------- ------------------- -------------------- ------------------- -------------------
4 14 3 7 3 7
------------------- ------------------- ------------------- -------------------- ------------------- -------------------
$ 535,344 $ 202,690 $ 4,565 $ 462,031 $ 31,860 $ 738,702
=================== =================== =================== ==================== =================== ===================
The accompanying notes are an integral part of these financial statements.
11
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED)
DECEMBER 31, 2010
AMERICAN FUNDS
FIDELITY VIP AMERICAN FUNDS AMERICAN FUNDS GLOBAL SMALL
FREEDOM 2030 GROWTH GROWTH-INCOME CAPITALIZATION
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 108,198 $ 127,437,891 $ 73,861,244 $ 67,405,396
Accrued dividends -- -- -- --
Due from Metropolitan Life
Insurance Company -- -- -- --
------------------- ------------------- ------------------- -------------------
Total Assets 108,198 127,437,891 73,861,244 67,405,396
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 7 36 50 43
------------------- ------------------- ------------------- -------------------
Total Liabilities 7 36 50 43
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 108,191 $ 127,437,855 $ 73,861,194 $ 67,405,353
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
12
AMERICAN FUNDS
AMERICAN FUNDS AMERICAN FUNDS U.S. GOVERNMENT/AAA MIST T. ROWE PRICE MIST MFS RESEARCH MIST PIMCO
BOND INTERNATIONAL RATED SECURITIES MID CAP GROWTH INTERNATIONAL TOTAL RETURN
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 4,365,046 $ 809,630 $ 37,834 $ 21,234,919 $ 13,920,146 $ 46,602,305
-- -- -- -- -- --
-- -- -- -- 672 --
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
4,365,046 809,630 37,834 21,234,919 13,920,818 46,602,305
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
15 5 4 11 -- 43
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
15 5 4 11 -- 43
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 4,365,031 $ 809,625 $ 37,830 $ 21,234,908 $ 13,920,818 $ 46,602,262
=================== =================== =================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
13
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED)
DECEMBER 31, 2010
MIST RCM MIST LORD ABBETT MIST LAZARD MIST INVESCO
TECHNOLOGY BOND DEBENTURE MID CAP SMALL CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 16,113,864 $ 27,673,394 $ 5,585,177 $ 4,469,864
Accrued dividends -- -- -- --
Due from Metropolitan Life
Insurance Company 22 336 -- 34
------------------- ------------------- ------------------- -------------------
Total Assets 16,113,886 27,673,730 5,585,177 4,469,898
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company -- -- 53 --
------------------- ------------------- ------------------- -------------------
Total Liabilities -- -- 53 --
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 16,113,886 $ 27,673,730 $ 5,585,124 $ 4,469,898
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
14
MIST MIST LEGG
HARRIS OAKMARK MASON CLEARBRIDGE MIST LORD ABBETT MIST CLARION MIST MORGAN STANLEY MIST LORD ABBETT
INTERNATIONAL AGGRESSIVE GROWTH GROWTH AND INCOME GLOBAL REAL ESTATE MID CAP GROWTH MID CAP VALUE
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 31,544,692 $ 7,832,599 $ 6,220,899 $ 21,155,496 $ 203,751,581 $ 111,198
-- -- -- -- -- --
6 -- 3,162 5,068 3,350 --
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
31,544,698 7,832,599 6,224,061 21,160,564 203,754,931 111,198
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
-- 23 -- -- -- 8
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
-- 23 -- -- -- 8
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 31,544,698 $ 7,832,576 $ 6,224,061 $ 21,160,564 $ 203,754,931 $ 111,190
=================== =================== =================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
15
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED)
DECEMBER 31, 2010
MIST THIRD AVENUE MIST OPPENHEIMER MIST LEGG MASON MIST SSGA
SMALL CAP VALUE CAPITAL APPRECIATION VALUE EQUITY GROWTH ETF
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- -------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 1,575,617 $ 1,779,584 $ 4,606,141 $ 2,679,337
Accrued dividends -- -- -- --
Due from Metropolitan Life
Insurance Company -- 27 -- 44
------------------- -------------------- ------------------- -------------------
Total Assets 1,575,617 1,779,611 4,606,141 2,679,381
------------------- -------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 28 -- 39 --
------------------- -------------------- ------------------- -------------------
Total Liabilities 28 -- 39 --
------------------- -------------------- ------------------- -------------------
NET ASSETS $ 1,575,589 $ 1,779,611 $ 4,606,102 $ 2,679,381
=================== ==================== =================== ===================
The accompanying notes are an integral part of these financial statements.
16
MIST MIST
MIST SSGA GROWTH PIMCO INFLATION MIST BLACKROCK MIST DREMAN AMERICAN FUNDS
AND INCOME ETF PROTECTED BOND LARGE CAP CORE MIST JANUS FORTY SMALL CAP VALUE BALANCED ALLOCATION
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 3,818,872 $ 8,812,603 $ 309,489,156 $ 14,254,609 $ 27,493 $ 427,408
-- -- -- -- -- --
35 -- 380 46 -- --
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
3,818,907 8,812,603 309,489,536 14,254,655 27,493 427,408
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
-- 65 -- -- 4 2
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
-- 65 -- -- 4 2
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 3,818,907 $ 8,812,538 $ 309,489,536 $ 14,254,655 $ 27,489 $ 427,406
=================== =================== =================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
17
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED)
DECEMBER 31, 2010
MIST MIST
AMERICAN FUNDS AMERICAN FUNDS MIST MET/FRANKLIN MIST MET/FRANKLIN
GROWTH ALLOCATION MODERATE ALLOCATION INCOME MUTUAL SHARES
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 706,302 $ 250,096 $ 151,294 $ 57,045
Accrued dividends -- -- -- --
Due from Metropolitan Life
Insurance Company -- -- -- --
------------------- ------------------- ------------------- -------------------
Total Assets 706,302 250,096 151,294 57,045
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 2 2 2 3
------------------- ------------------- ------------------- -------------------
Total Liabilities 2 2 2 3
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 706,300 $ 250,094 $ 151,292 $ 57,042
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
18
MIST MET/FRANKLIN
TEMPLETON FOUNDING MIST MET/TEMPLETON AMERICAN DELAWARE VIP DREYFUS VIF
STRATEGY GROWTH MIST PIONEER FUND CENTURY VP VISTA SMALL CAP VALUE INTERNATIONAL VALUE
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 260,281 $ 48,494 $ 245,287 $ 69,257 $ 385,135 $ 231,499
-- -- -- -- -- --
-- -- 573 4,898 1 --
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
260,281 48,494 245,860 74,155 385,136 231,499
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
1 2 -- -- -- 35
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
1 2 -- -- -- 35
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 260,280 $ 48,492 $ 245,860 $ 74,155 $ 385,136 $ 231,464
=================== =================== =================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
19
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED)
DECEMBER 31, 2010
GOLDMAN SACHS
GOLDMAN SACHS STRUCTURED MFS VIT MFS VIT
MID CAP VALUE SMALL CAP EQUITY HIGH INCOME GLOBAL EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 367,130 $ 51,282 $ 132,571 $ 226,835
Accrued dividends -- -- -- --
Due from Metropolitan Life
Insurance Company -- -- -- --
------------------- ------------------- ------------------- -------------------
Total Assets 367,130 51,282 132,571 226,835
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 41 30 462 41
------------------- ------------------- ------------------- -------------------
Total Liabilities 41 30 462 41
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 367,089 $ 51,252 $ 132,109 $ 226,794
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
20
MFS VIT MFS VIT WELLS FARGO VT PIONEER VCT PIONEER VCT
NEW DISCOVERY VALUE TOTAL RETURN BOND EMERGING MARKETS MID CAP VALUE ROYCE MICRO-CAP
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 134,934 $ 79,100 $ 1,081,377 $ 983,753 $ 99,492 $ 348,710
-- -- -- -- -- --
-- -- 38 413 -- --
------------------- ----- ------------- ------------------- ------------------- ------------------- -------------------
134,934 79,100 1,081,415 984,166 99,492 348,710
------------------- ----- ------------- ------------------- ------------------- ------------------- -------------------
11 5 -- -- 14 1
------------------- ----- ------------- ------------------- ------------------- ------------------- -------------------
11 5 -- -- 14 1
------------------- ----- ------------- ------------------- ------------------- ------------------- -------------------
$ 134,923 $ 79,095 $ 1,081,415 $ 984,166 $ 99,478 $ 348,709
=================== =================== =================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
21
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES -- (CONCLUDED)
DECEMBER 31, 2010
UIF EMERGING UIF EMERGING PIMCO VIT
ROYCE SMALL-CAP MARKETS DEBT MARKETS EQUITY LOW DURATION
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 393,156 $ 7,345 $ 197,670 $ 762,323
Accrued dividends -- -- -- --
Due from Metropolitan Life
Insurance Company -- -- -- 208
------------------- ------------------- ------------------- -------------------
Total Assets 393,156 7,345 197,670 762,531
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 14 2 1 --
------------------- ------------------- ------------------- -------------------
Total Liabilities 14 2 1 --
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 393,142 $ 7,343 $ 197,669 $ 762,531
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
22
This page is intentionally left blank.
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF BLACKROCK DIVERSIFIED
INVESTMENT DIVISION
-------------------------------------------------------------
2010 2009 2008
--------------- ---------------------------- ----------------
INVESTMENT INCOME:
Dividends $ 4,856,230 $ 12,214,068 $ 8,110,111
--------------- ---------------------------- ----------------
EXPENSES:
Mortality and expense risk charges 2,202,890 2,044,120 2,489,583
--------------- ---------------------------- ----------------
Total expenses 2,202,890 2,044,120 2,489,583
--------------- ---------------------------- ----------------
Net investment income (loss) 2,653,340 10,169,948 5,620,528
--------------- ---------------------------- ----------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 3,156,956
Realized gains (losses) on sale of investments (1,951,136) (4,609,576) (1,882,360)
--------------- ---------------------------- ----------------
Net realized gains (losses) (1,951,136) (4,609,576) 1,274,596
--------------- ---------------------------- ----------------
Change in unrealized gains (losses) on investments 20,635,275 31,028,944 (90,018,067)
--------------- ---------------------------- ----------------
Net realized and change in unrealized gains (losses)
on investments 18,684,139 26,419,368 (88,743,471)
--------------- ---------------------------- ----------------
Net increase (decrease) in net assets resulting
from operations $ 21,337,479 $ 36,589,316 $ (83,122,943)
=============== ============================ ================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
24
MSF BLACKROCK AGGRESSIVE GROWTH MSF METLIFE STOCK INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------------- ------------------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ---------------------- ------------------- --------------- -------------------------- -----------------
$ 125,813 $ 309,682 $ -- $ 10,671,016 $ 13,698,992 $ 12,272,736
--------------- ---------------------- ------------------- --------------- -------------------------- -----------------
1,617,041 1,367,142 1,837,501 4,862,670 4,016,527 5,062,149
--------------- ---------------------- ------------------- --------------- -------------------------- -----------------
1,617,041 1,367,142 1,837,501 4,862,670 4,016,527 5,062,149
--------------- ---------------------- ------------------- --------------- -------------------------- -----------------
(1,491,228) (1,057,460) (1,837,501) 5,808,346 9,682,465 7,210,587
--------------- ---------------------- ------------------- --------------- -------------------------- -----------------
-- -- -- -- 10,241,628 26,321,788
451,106 (3,328,441) 740,184 (5,405,568) (11,218,400) (1,738,927)
--------------- ---------------------- ------------------- --------------- -------------------------- -----------------
451,106 (3,328,441) 740,184 (5,405,568) (976,772) 24,582,861
--------------- ---------------------- ------------------- --------------- -------------------------- -----------------
26,312,677 66,805,065 (115,833,611) 82,259,608 112,925,652 (312,125,621)
--------------- ---------------------- ------------------- --------------- -------------------------- -----------------
26,763,783 63,476,624 (115,093,427) 76,854,040 111,948,880 (287,542,760)
--------------- ---------------------- ------------------- --------------- -------------------------- -----------------
$ 25,272,555 $ 62,419,164 $ (116,930,928) $ 82,662,386 $ 121,631,345 $ (280,332,173)
=============== ====================== =================== =============== ========================== =================
The accompanying notes are an integral part of these financial statements.
25
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF ARTIO INTERNATIONAL STOCK
INVESTMENT DIVISION
--------------------------------------------------------
2010 2009 2008
-------------- ---------------------- ------------------
INVESTMENT INCOME:
Dividends $ 672,423 $ 284,863 $ 1,797,231
-------------- ---------------------- ------------------
EXPENSES:
Mortality and expense risk charges 360,189 333,983 477,710
-------------- ---------------------- ------------------
Total expenses 360,189 333,983 477,710
-------------- ---------------------- ------------------
Net investment income (loss) 312,234 (49,120) 1,319,521
-------------- ---------------------- ------------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 6,924,494
Realized gains (losses) on sale of investments (1,030,425) (2,053,375) (470,754)
-------------- ---------------------- ------------------
Net realized gains (losses) (1,030,425) (2,053,375) 6,453,740
-------------- ---------------------- --- --------------
Change in unrealized gains (losses) on investments 3,370,719 10,298,349 (39,671,178)
-------------- ---------------------- ------------------
Net realized and change in unrealized gains (losses)
on investments 2,340,294 8,244,974 (33,217,438)
-------------- ---------------------- ------------------
Net increase (decrease) in net assets resulting
from operations $ 2,652,528 $ 8,195,854 $ (31,897,917)
============== ====================== ==================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
26
MSF T. ROWE PRICE SMALL CAP GROWTH MSF OPPENHEIMER GLOBAL EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------------------- -----------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ---------------------- ------------------ ----------- ---------------------- ------------------
$ -- $ 200,547 $ -- $ 612,821 $ 852,361 $ 913,382
--------------- ---------------------- ------------------ ----------- ---------------------- ------------------
769,902 477,748 578,209 297,201 258,416 333,397
--------------- ---------------------- ------------------ ----------- ---------------------- ------------------
769,902 477,748 578,209 297,201 258,416 333,397
--------------- ---------------------- ------------------ ----------- ---------------------- ------------------
(769,902) (277,201) (578,209) 315,620 593,945 579,985
--------------- ---------------------- ------------------ ----------- ---------------------- ------------------
-- 1,576,442 14,302,639 -- -- 1,578,466
562,971 (1,108,337) (118,445) 362,727 (362,452) 228,413
--------------- ---------------------- ------------------ ----------- ---------------------- ------------------
562,971 468,105 14,184,194 362,727 (362,452) 1,806,879
--------------- ---------------------- ------------------ ----------- ---------------------- ------------------
22,601,563 19,138,611 (44,529,670) 5,192,068 11,124,292 (23,254,667)
--------------- ---------------------- ------------------ ----------- ---------------------- ------------------
23,164,534 19,606,716 (30,345,476) 5,554,795 10,761,840 (21,447,788)
--------------- ---------------------- ------------------ ----------- ---------------------- ------------------
$ 22,394,632 $ 19,329,515 $ (30,923,685) $ 5,870,415 $ 11,355,785 $ (20,867,803)
=============== ====================== ================== =========== ====================== ==================
The accompanying notes are an integral part of these financial statements.
27
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF MFS VALUE
INVESTMENT DIVISION
------------------------------------------------------
2010 2009 2008
-------------- ---------------------- ----------------
INVESTMENT INCOME:
Dividends $ 713,180 $ -- $ 994,357
-------------- ---------------------- ----------------
EXPENSES:
Mortality and expense risk charges 457,584 360,654 433,021
-------------- ---------------------- ----------------
Total expenses 457,584 360,654 433,021
-------------- ---------------------- ----------------
Net investment income (loss) 255,596 (360,654) 561,336
-------------- ---------------------- ----------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 11,141,028
Realized gains (losses) on sale of investments (425,864) (877,734) (6,522,665)
-------------- ---------------------- ----------------
Net realized gains (losses) (425,864) (877,734) 4,618,363
-------------- ---------------------- ----------------
Change in unrealized gains (losses) on investments 5,358,513 9,493,542 (26,124,726)
-------------- ---------------------- ----------------
Net realized and change in unrealized gains (losses)
on investments 4,932,649 8,615,808 (21,506,363)
-------------- ---------------------- ----------------
Net increase (decrease) in net assets resulting
from operations $ 5,188,245 $ 8,255,154 $ (20,945,027)
============== ====================== ================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
28
MSF NEUBERGER BERMAN MID CAP VALUE MSF T. ROWE PRICE LARGE CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------------------- --------------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ---------------------- ------------------ -------------- ---------------------- ------------------
$ 569,862 $ 813,259 $ 575,882 $ 113,187 $ 224,945 $ 256,837
--------------- ---------------------- ------------------ -------------- ---------------------- ------------------
570,197 440,022 576,904 373,672 295,919 353,556
--------------- ---------------------- ------------------ -------------- ---------------------- ------------------
570,197 440,022 576,904 373,672 295,919 353,556
--------------- ---------------------- ------------------ -------------- ---------------------- ------------------
(335) 373,237 (1,022) (260,485) (70,974) (96,719)
--------------- ---------------------- ------------------ -------------- ---------------------- ------------------
-- 16,184 827,106 -- -- 2,456,006
12,235 (1,401,599) (361,462) 253,453 (485,740) 109,779
--------------- ---------------------- ------------------ -------------- ---------------------- ------------------
12,235 (1,385,415) 465,644 253,453 (485,740) 2,565,785
--------------- ---------------------- ------------------ -------------- ---------------------- ------------------
15,949,723 21,838,137 (39,787,375) 6,370,252 13,392,122 (24,832,884)
--------------- ---------------------- ------------------ -------------- ---------------------- ------------------
15,961,958 20,452,722 (39,321,731) 6,623,705 12,906,382 (22,267,099)
--------------- ---------------------- ------------------ -------------- ---------------------- ------------------
$ 15,961,623 $ 20,825,959 $ (39,322,753) $ 6,363,220 $ 12,835,408 $ (22,363,818)
=============== ====================== ================== ============== ====================== ==================
The accompanying notes are an integral part of these financial statements.
29
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF BARCLAYS CAPITAL AGGREGATE BOND INDEX
INVESTMENT DIVISION
---------------------------------------------------
2010 2009 2008
----------- ---------------------- ----------------
INVESTMENT INCOME:
Dividends $ 4,039,520 $ 5,910,030 $ 4,492,337
----------- ---------------------- ----------------
EXPENSES:
Mortality and expense risk charges 904,600 732,517 746,783
----------- ---------------------- ----------------
Total expenses 904,600 732,517 746,783
----------- ---------------------- ----------------
Net investment income (loss) 3,134,920 5,177,513 3,745,554
----------- ---------------------- ----------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 613,564 195,723 578,961
----------- ---------------------- ----------------
Net realized gains (losses) 613,564 195,723 578,961
----------- ---------------------- ----------------
Change in unrealized gains (losses) on investments 1,607,603 (1,139,158) 873,489
----------- ---------------------- ----------------
Net realized and change in unrealized gains (losses)
on investments 2,221,167 (943,435) 1,452,450
----------- ---------------------- ----------------
Net increase (decrease) in net assets resulting
from operations $ 5,356,087 $ 4,234,078 $ 5,198,004
=========== ====================== ================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
30
MSF MORGAN STANLEY EAFE INDEX MSF RUSSELL 2000 INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------------- ----------------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- ------------------ --------------- ------------------------- ----------------
$ 1,568,147 $ 2,127,820 $ 1,719,052 $ 547,888 $ 812,284 $ 619,536
-------------- ---------------------- ------------------ --------------- ------------------------- ----------------
524,541 418,461 488,801 378,183 318,144 395,877
-------------- ---------------------- ------------------ --------------- ------------------------- ----------------
524,541 418,461 488,801 378,183 318,144 395,877
-------------- ---------------------- ------------------ --------------- ------------------------- ----------------
1,043,606 1,709,359 1,230,251 169,705 494,140 223,659
-------------- ---------------------- ------------------ --------------- ------------------------- ----------------
-- 345,458 2,375,115 -- 1,106,089 2,430,488
(236,046) (800,654) 523,799 (66,857) (1,035,970) (448,303)
-------------- ---------------------- ------------------ --------------- ------------------------- ----------------
(236,046) (455,196) 2,898,914 (66,857) 70,119 1,982,185
-------------- ---------------------- ------------------ --------------- ------------------------- ----------------
3,674,685 11,844,795 (35,342,222) 11,828,973 9,093,620 (21,357,274)
-------------- ---------------------- ------------------ --------------- ------------------------- ----------------
3,438,639 11,389,599 (32,443,308) 11,762,116 9,163,739 (19,375,089)
-------------- ---------------------- ------------------ --------------- ------------------------- ----------------
$ 4,482,245 $ 13,098,958 $ (31,213,057) $ 11,931,821 $ 9,657,879 $ (19,151,430)
============== ====================== ================== =============== ========================= ================
The accompanying notes are an integral part of these financial statements.
31
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF JENNISON GROWTH
INVESTMENT DIVISION
-------------- ---------------------- ---------------
2010 2009 2008
-------------- ---------------------- ---------------
INVESTMENT INCOME:
Dividends $ 82,750 $ 21,249 $ 321,658
-------------- ---------------------- ---------------
EXPENSES:
Mortality and expense risk charges 116,354 96,459 112,222
-------------- ---------------------- ---------------
Total expenses 116,354 96,459 112,222
-------------- ---------------------- ---------------
Net investment income (loss) (33,604) (75,210) 209,436
-------------- ---------------------- ---------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 1,109,205
Realized gains (losses) on sale of investments 17,747 (140,559) (8,418)
-------------- ---------------------- ---------------
Net realized gains (losses) 17,747 (140,559) 1,100,787
-------------- ---------------------- ---------------
Change in unrealized gains (losses) on investments 1,535,759 4,015,386 (7,064,823)
-------------- ---------------------- ---------------
Net realized and change in unrealized gains (losses)
on investments 1,553,506 3,874,827 (5,964,036)
-------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations $ 1,519,902 $ 3,799,617 $ (5,754,600)
============== ====================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
32
MSF NEUBERGER BERMAN GENESIS MSF METLIFE MID CAP STOCK INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------------------- ------------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ---------------------- ------------------ ------------ ---------------------- ------------------
$ 353,007 $ 663,127 $ 450,385 $ 562,548 $ 810,735 $ 771,366
--------------- ---------------------- ------------------ ------------ ---------------------- ------------------
628,387 512,489 713,800 473,626 374,527 446,840
--------------- ---------------------- ------------------ ------------ ---------------------- ------------------
628,387 512,489 713,800 473,626 374,527 446,840
--------------- ---------------------- ------------------ ------------ ---------------------- ------------------
(275,380) 150,638 (263,415) 88,922 436,208 324,526
--------------- ---------------------- ------------------ ------------ ---------------------- ------------------
-- -- 8,172,204 70,909 1,783,617 5,083,631
(2,085,738) (2,703,187) (2,015,489) 177,461 (1,475,288) (306,285)
--------------- ---------------------- ------------------ ------------ ---------------------- ------------------
(2,085,738) (2,703,187) 6,156,715 248,370 308,329 4,777,346
--------------- ---------------------- --- -------------- ------------ ---------------------- --- --------------
15,927,942 10,045,644 (44,228,185) 12,893,844 13,600,526 (28,232,883)
--------------- ---------------------- --- -------------- ------------ ---------------------- --- --------------
13,842,204 7,342,457 (38,071,470) 13,142,214 13,908,855 (23,455,537)
--------------- ---------------------- --- -------------- ------------ ---------------------- --- --------------
$ 13,566,824 $ 7,493,095 $ (38,334,885) $ 13,231,136 $ 14,345,063 $ (23,131,011)
=============== ====================== ================== ============ ====================== ==================
The accompanying notes are an integral part of these financial statements.
33
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF LOOMIS SAYLES SMALL CAP GROWTH
INVESTMENT DIVISION
-------------------------------------------------------
2010 2009 2008
-------------- ---------------------- -----------------
INVESTMENT INCOME:
Dividends $ -- $ -- $ --
-------------- ---------------------- -----------------
EXPENSES:
Mortality and expense risk charges 51,755 39,304 48,690
-------------- ---------------------- -----------------
Total expenses 51,755 39,304 48,690
-------------- ---------------------- -----------------
Net investment income (loss) (51,755) (39,304) (48,690)
-------------- ---------------------- -----------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 589,617
Realized gains (losses) on sale of investments (47,680) (219,528) (127,526)
-------------- ---------------------- -----------------
Net realized gains (losses) (47,680) (219,528) 462,091
-------------- ---------------------- -----------------
Change in unrealized gains (losses) on investments 1,843,398 1,519,136 (3,371,627)
-------------- ---------------------- -----------------
Net realized and change in unrealized gains (losses)
on investments 1,795,718 1,299,608 (2,909,536)
-------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from operations $ 1,743,963 $ 1,260,304 $ (2,958,226)
============== ====================== =================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
34
MSF BLACKROCK LARGE CAP VALUE MSF DAVIS VENTURE VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------- -------------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- ----------------- ----------- -------------------------- ----------------
$ 122,314 $ 155,310 $ 93,435 $ 534,093 $ 679,120 $ 686,382
-------------- ---------------------- ----------------- ----------- -------------------------- ----------------
95,279 81,859 96,194 444,758 366,383 433,758
-------------- ---------------------- ----------------- ----------- -------------------------- ----------------
95,279 81,859 96,194 444,758 366,383 433,758
-------------- ---------------------- ----------------- ----------- -------------------------- ----------------
27,035 73,451 (2,759) 89,335 312,737 252,624
-------------- ---------------------- ----------------- ----------- -------------------------- ----------------
-- -- 181,207 -- -- 285,719
(263,466) (513,587) (190,470) 191,969 (723,952) (1,167)
-------------- ---------------------- ----------------- ----------- -------------------------- ----------------
(263,466) (513,587) (9,263) 191,969 (723,952) 284,552
-------------- ---------------------- ----------------- ----------- -------------------------- ----------------
1,265,453 1,615,283 (4,899,187) 5,562,556 12,907,686 (24,908,606)
-------------- ---------------------- ----------------- ----------- -------------------------- ----------------
1,001,987 1,101,696 (4,908,450) 5,754,525 12,183,734 (24,624,054)
-------------- ---------------------- ----------------- ----------- -------------------------- ----------------
$ 1,029,022 $ 1,175,147 $ (4,911,209) $ 5,843,860 $ 12,496,471 $ (24,371,430)
============== ====================== ================= =========== ========================== ================
The accompanying notes are an integral part of these financial statements.
35
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF LOOMIS SAYLES SMALL CAP CORE
INVESTMENT DIVISION
-------------------------------------------------------
2010 2009 2008
-------------- ---------------------- -----------------
INVESTMENT INCOME:
Dividends $ 14,765 $ 34,048 $ --
-------------- ---------------------- -----------------
EXPENSES:
Mortality and expense risk charges 127,370 100,553 116,679
-------------- ---------------------- -----------------
Total expenses 127,370 100,553 116,679
-------------- ---------------------- -----------------
Net investment income (loss) (112,605) (66,505) (116,679)
-------------- ---------------------- -----------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 2,223,393
Realized gains (losses) on sale of investments (55,224) (439,969) (217,249)
-------------- ---------------------- -----------------
Net realized gains (losses) (55,224) (439,969) 2,006,144
-------------- ---------------------- -----------------
Change in unrealized gains (losses) on investments 4,065,140 3,809,050 (7,889,493)
-------------- ---------------------- -----------------
Net realized and change in unrealized gains (losses)
on investments 4,009,916 3,369,081 (5,883,349)
-------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from operations $ 3,897,311 $ 3,302,576 $ (6,000,028)
============== ====================== =================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
36
MSF BLACKROCK LEGACY LARGE CAP GROWTH MSF BLACKROCK BOND INCOME
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------- ----------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- ----------------- ----------- ---------------------- -----------------
$ 14,175 $ 29,634 $ 18,838 $ 3,345,493 $ 5,731,533 $ 4,557,033
-------------- ---------------------- ----------------- ----------- ---------------------- -----------------
52,945 35,213 37,105 675,543 651,039 710,910
-------------- ---------------------- ----------------- ----------- ---------------------- -----------------
52,945 35,213 37,105 675,543 651,039 710,910
-------------- ---------------------- ----------------- ----------- ---------------------- -----------------
(38,770) (5,579) (18,267) 2,669,950 5,080,494 3,846,123
-------------- ---------------------- ----------------- ----------- ---------------------- -----------------
-- -- -- -- -- --
75,641 (146,284) (120,478) 24,746 (553,787) (261,951)
-------------- ---------------------- ----------------- ----------- ---------------------- -----------------
75,641 (146,284) (120,478) 24,746 (553,787) (261,951)
-------------- ---------------------- ----------------- ----------- ---------------------- -----------------
1,107,022 1,684,656 (1,924,420) 3,372,816 2,142,811 (7,357,146)
-------------- ---------------------- ----------------- ----------- ---------------------- -----------------
1,182,663 1,538,372 (2,044,898) 3,397,562 1,589,024 (7,619,097)
-------------- ---------------------- ----------------- ----------- ---------------------- -----------------
$ 1,143,893 $ 1,532,793 $ (2,063,165) $ 6,067,512 $ 6,669,518 $ (3,772,974)
============== ====================== ================= =========== ====================== =================
The accompanying notes are an integral part of these financial statements.
37
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF FI VALUE LEADERS
INVESTMENT DIVISION
----------------------------------------------------
2010 2009 2008
------------ ----------------------- ---------------
INVESTMENT INCOME:
Dividends $ 90,469 $ 128,519 $ 109,493
------------ ----------------------- ---------------
EXPENSES:
Mortality and expense risk charges 48,155 38,405 47,319
------------ ----------------------- ---------------
Total expenses 48,155 38,405 47,319
------------ ----------------------- ---------------
Net investment income (loss) 42,314 90,114 62,174
------------ ----------------------- ---------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 594,849
Realized gains (losses) on sale of investments (145,291) (259,906) (183,807)
------------ ----------------------- ---------------
Net realized gains (losses) (145,291) (259,906) 411,042
------------ ----------------------- ---------------
Change in unrealized gains (losses) on investments 885,079 1,128,894 (3,184,937)
------------ ----------------------- ---------------
Net realized and change in unrealized gains (losses)
on investments 739,788 868,988 (2,773,895)
------------ ----------------------- ---------------
Net increase (decrease) in net assets resulting
from operations $ 782,102 $ 959,102 $ (2,711,721)
============ ======================= ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
38
MSF MET/ARTISAN MID CAP VALUE MSF WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------------- ------------------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- ------------------ ----------- ---------------------- -------------------------
$ 314,548 $ 390,395 $ 164,568 $ 1,333,421 $ 1,175,403 $ 717,999
-------------- ---------------------- ------------------ ----------- ---------------------- -------------------------
362,293 295,816 374,696 182,131 148,016 147,435
-------------- ---------------------- ------------------ ----------- ---------------------- -------------------------
362,293 295,816 374,696 182,131 148,016 147,435
-------------- ---------------------- ------------------ ----------- ---------------------- -------------------------
(47,745) 94,579 (210,128) 1,151,290 1,027,387 570,564
-------------- ---------------------- ------------------ ----------- ---------------------- -------------------------
-- -- 5,071,026 -- 518,778 105,934
(887,093) (2,074,439) (724,686) 71,403 (136,510) (211,377)
-------------- ---------------------- ------------------ ----------- ---------------------- -------------------------
(887,093) (2,074,439) 4,346,340 71,403 382,268 (105,443)
-------------- ---------------------- ------------------ ----------- ---------------------- -------------------------
6,661,231 14,134,862 (29,274,257) 1,196,007 3,433,572 (3,452,504)
-------------- ---------------------- ------------------ ----------- ---------------------- -------------------------
5,774,138 12,060,423 (24,927,917) 1,267,410 3,815,840 (3,557,947)
-------------- ---------------------- ------------------ ----------- ---------------------- -------------------------
$ 5,726,393 $ 12,155,002 $ (25,138,045) $ 2,418,700 $ 4,843,227 $ (2,987,383)
============== ====================== ================== =========== ====================== =========================
The accompanying notes are an integral part of these financial statements.
39
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT
INVESTMENT DIVISION
-----------------------------------------------
2010 2009 2008
--------- ---------------------- --------------
INVESTMENT INCOME:
Dividends $ 448,826 $ 714,343 $ 678,587
--------- ---------------------- --------------
EXPENSES:
Mortality and expense risk charges 134,214 131,035 132,608
--------- ---------------------- --------------
Total expenses 134,214 131,035 132,608
--------- ---------------------- --------------
Net investment income (loss) 314,612 583,308 545,979
--------- ---------------------- --------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions 47,316 -- --
Realized gains (losses) on sale of investments 1,727 (89,029) (26,281)
--------- ---------------------- --------------
Net realized gains (losses) 49,043 (89,029) (26,281)
--------- ---------------------- --------------
Change in unrealized gains (losses) on investments 435,726 44,105 (712,221)
--------- ---------------------- --------------
Net realized and change in unrealized gains (losses)
on investments 484,769 (44,924) (738,502)
--------- ---------------------- --------------
Net increase (decrease) in net assets resulting
from operations $ 799,381 $ 538,384 $ (192,523)
========= ====================== ==============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
40
MSF BLACKROCK MONEY MARKET MSF MFS TOTAL RETURN
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- ----------------------------------------------------
2010 2009 2008 2010 2009 2008
------------- ---------------------- ------------- ------------ ----------------------- ---------------
$ 3,600 $ 269,650 $ 1,783,326 $ 217,114 $ 230,711 $ 192,751
------------- ---------------------- ------------- ------------ ----------------------- ---------------
304,506 280,999 287,148 86,631 51,498 44,824
------------- ---------------------- ------------- ------------ ----------------------- ---------------
304,506 280,999 287,148 86,631 51,498 44,824
------------- ---------------------- ------------- ------------ ----------------------- ---------------
(300,906) (11,349) 1,496,178 130,483 179,213 147,927
------------- ---------------------- ------------- ------------ ----------------------- ---------------
-- -- -- -- -- 418,385
-- -- -- (99,947) (173,243) (118,819)
------------- ---------------------- ------------- ------------ ----------------------- ---------------
-- -- -- (99,947) (173,243) 299,566
------------- ---------------------- --- --------- ------------ ----------------------- ---------------
-- -- -- 568,242 937,515 (1,824,737)
------------- ---------------------- --- --------- ------------ ----------------------- ---------------
-- -- -- 468,295 764,272 (1,525,171)
------------- ---------------------- --- --------- ------------ ----------------------- ---------------
$ (300,906) $ (11,349) $ 1,496,178 $ 598,778 $ 943,485 $ (1,377,244)
============= ====================== ============= ============ ======================= ===============
The accompanying notes are an integral part of these financial statements.
41
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF METLIFE CONSERVATIVE ALLOCATION
INVESTMENT DIVISION
------------------------------------------------
2010 2009 2008
--------- ---------------------- ---------------
INVESTMENT INCOME:
Dividends $ 102,209 $ 56,682 $ 27,593
--------- ---------------------- ---------------
EXPENSES:
Mortality and expense risk charges 21,942 14,419 17,503
--------- ---------------------- ---------------
Total expenses 21,942 14,419 17,503
--------- ---------------------- ---------------
Net investment income (loss) 80,267 42,263 10,090
--------- ---------------------- ---------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- 10,668 19,805
Realized gains (losses) on sale of investments 46,459 (4,941) (164,759)
--------- ---------------------- ---------------
Net realized gains (losses) 46,459 5,727 (144,954)
--------- ---------------------- ---------------
Change in unrealized gains (losses) on investments 119,161 276,504 (182,260)
--------- ---------------------- ---------------
Net realized and change in unrealized gains (losses)
on investments 165,620 282,231 (327,214)
--------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations $ 245,887 $ 324,494 $ (317,124)
========= ====================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
42
MSF METLIFE CONSERVATIVE TO MODERATE ALLOCATION MSF METLIFE MODERATE ALLOCATION
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- ----------------------------------------------------
2010 2009 2008 2010 2009 2008
--------- ---------------------- ----------------- ----------- ---------------------- -----------------
$ 193,442 $ 133,159 $ 46,035 $ 877,469 $ 699,782 $ 202,771
--------- ---------------------- ----------------- ----------- ---------------------- -----------------
46,556 35,274 30,609 264,549 193,170 165,213
--------- ---------------------- ----------------- ----------- ---------------------- -----------------
46,556 35,274 30,609 264,549 193,170 165,213
--------- ---------------------- ----------------- ----------- ---------------------- -----------------
146,886 97,885 15,426 612,920 506,612 37,558
--------- ---------------------- ----------------- ----------- ---------------------- -----------------
-- 27,807 39,596 -- 337,203 246,852
32,319 (95,953) (49,375) 17,779 (340,090) (436,886)
--------- ---------------------- ----------------- ----------- ---------------------- -----------------
32,319 (68,146) (9,779) 17,779 (2,887) (190,034)
--------- ---------------------- ----------------- ----------- ---------------------- -----------------
421,073 828,280 (847,823) 3,378,733 5,007,760 (6,087,839)
--------- ---------------------- ----------------- ----------- ---------------------- -----------------
453,392 760,134 (857,602) 3,396,512 5,004,873 (6,277,873)
--------- ---------------------- ----------------- ----------- ---------------------- -----------------
$ 600,278 $ 858,019 $ (842,176) $ 4,009,432 $ 5,511,485 $ (6,240,315)
========= ====================== ================= =========== ====================== =================
The accompanying notes are an integral part of these financial statements.
43
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF METLIFE MODERATE TO AGGRESSIVE ALLOCATION
INVESTMENT DIVISION
-------------- ---------------------- ----------------
2010 2009 2008
-------------- ---------------------- ----------------
INVESTMENT INCOME:
Dividends $ 1,283,219 $ 1,144,971 $ 302,200
-------------- ---------------------- ----------------
EXPENSES:
Mortality and expense risk charges 486,295 365,479 318,359
-------------- ---------------------- ----------------
Total expenses 486,295 365,479 318,359
-------------- ---------------------- ----------------
Net investment income (loss) 796,924 779,492 (16,159)
-------------- ---------------------- ----------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- 560,846 559,864
Realized gains (losses) on sale of investments (102,509) (694,062) (384,363)
-------------- ---------------------- ----------------
Net realized gains (losses) (102,509) (133,216) 175,501
-------------- ---------------------- ----------------
Change in unrealized gains (losses) on investments 7,116,457 10,602,923 (15,640,562)
-------------- ---------------------- ----------------
Net realized and change in unrealized gains (losses)
on investments 7,013,948 10,469,707 (15,465,061)
-------------- ---------------------- ----------------
Net increase (decrease) in net assets resulting
from operations $ 7,810,872 $ 11,249,199 $ (15,481,220)
============== ====================== ================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
44
MSF METLIFE AGGRESSIVE ALLOCATION JANUS ASPEN JANUS
INVESTMENT DIVISION INVESTMENT DIVISION
-------------- ---------------------- --- ------------- ------------ ---------------------- ---------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- ----------------- ------------ ---------------------- ---------------
$ 132,688 $ 195,883 $ 61,269 $ 73,809 $ 28,575 $ 45,216
-------------- ---------------------- ----------------- ------------ ---------------------- ---------------
96,768 72,698 71,617 226,951 22,889 28,896
-------------- ---------------------- ----------------- ------------ ---------------------- ---------------
96,768 72,698 71,617 226,951 22,889 28,896
-------------- ---------------------- ----------------- ------------ ---------------------- ---------------
35,920 123,185 (10,348) (153,142) 5,686 16,320
-------------- ---------------------- ----------------- ------------ ---------------------- ---------------
-- 14,230 224,171 -- -- --
(132,924) (331,533) (133,321) 52,158 (31,201) 49,473
-------------- ---------------------- ----------------- ------------ ---------------------- ---------------
(132,924) (317,303) 90,850 52,158 (31,201) 49,473
-------------- ---------------------- ----------------- ------------ ---------------------- ---------------
1,845,829 2,668,257 (4,222,544) 848,330 1,662,317 (3,051,413)
-------------- ---------------------- ----------------- ------------ ---------------------- ---------------
1,712,905 2,350,954 (4,131,694) 900,488 1,631,116 (3,001,940)
-------------- ---------------------- ----------------- ------------ ---------------------- ---------------
$ 1,748,825 $ 2,474,139 $ (4,142,042) $ 747,346 $ 1,636,802 $ (2,985,620)
============== ====================== ================= ============ ====================== ===============
The accompanying notes are an integral part of these financial statements.
45
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
JANUS ASPEN BALANCED
INVESTMENT DIVISION
-------------------------------------------
2010 2009 2008
--------- -------------------- ------------
INVESTMENT INCOME:
Dividends $ 54,166 $ 14,836 $ 3,357
--------- -------------------- ------------
EXPENSES:
Mortality and expense risk charges 23,474 1,929 361
--------- -------------------- ------------
Total expenses 23,474 1,929 361
--------- -------------------- ------------
Net investment income (loss) 30,692 12,907 2,996
--------- -------------------- ------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- 18,519 2,380
Realized gains (losses) on sale of investments 26,581 655 1,314
--------- -------------------- ------------
Net realized gains (losses) 26,581 19,174 3,694
--------- -------------------- ------------
Change in unrealized gains (losses) on investments 90,252 93,262 (21,788)
--------- -------------------- ------------
Net realized and change in unrealized gains (losses)
on investments 116,833 112,436 (18,094)
--------- -------------------- ------------
Net increase (decrease) in net assets resulting
from operations $ 147,525 $ 125,343 $ (15,098)
========= ==================== ============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
46
JANUS ASPEN FORTY JANUS ASPEN OVERSEAS
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------------- ---------------------------------------------
2010 2009 2008 2010 2009 2008 (a)
-------------- ---------------------- ------------- ----------- -------------------- ------------
$ 2,433 $ 81 $ 53 $ 1,609 $ 413 $ --
-------------- ---------------------- ------------- ----------- -------------------- ------------
16,448 2,129 2,353 817 355 44
-------------- ---------------------- ------------- ----------- -------------------- ------------
16,448 2,129 2,353 817 355 44
-------------- ---------------------- ------------- ----------- -------------------- ------------
(14,015) (2,048) (2,300) 792 58 (44)
-------------- ---------------------- ------------- ----------- -------------------- ------------
-- -- -- -- 3,372 --
14,051 (78,622) (93,936) 4,218 23,192 (177)
-------------- ---------------------- ------------- ----------- -------------------- ------------
14,051 (78,622) (93,936) 4,218 26,564 (177)
-------------- ---------------------- ------------- ----------- -------------------- ------------
47,707 310,554 (295,412) 62,994 37,885 (18,504)
-------------- ---------------------- ------------- ----------- -------------------- ------------
61,758 231,932 (389,348) 67,212 64,449 (18,681)
-------------- ---------------------- ------------- ----------- -------------------- ------------
$ 47,743 $ 229,884 $ (391,648) $ 68,004 $ 64,507 $ (18,725)
============== ====================== ============= =========== ==================== ============
The accompanying notes are an integral part of these financial statements.
47
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
INVESCO V.I. GLOBAL REAL ESTATE
INVESTMENT DIVISION
------------ ----------------------------------------
2010 2009 2008
------------ ---------------------- -----------------
INVESTMENT INCOME:
Dividends $ 71,976 $ -- $ 127,467
------------ ---------------------- -----------------
EXPENSES:
Mortality and expense risk charges 39,431 5,813 10,120
------------ ---------------------- -----------------
Total expenses 39,431 5,813 10,120
------------ ---------------------- -----------------
Net investment income (loss) 32,545 (5,813) 117,347
------------ ---------------------- -----------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 197,001
Realized gains (losses) on sale of investments (130,047) (698,156) (258,510)
------------ ---------------------- -----------------
Net realized gains (losses) (130,047) (698,156) (61,509)
------------ ---------------------- -----------------
Change in unrealized gains (losses) on investments 289,353 1,038,943 (1,334,686)
------------ ---------------------- -----------------
Net realized and change in unrealized gains (losses)
on investments 159,306 340,787 (1,396,195)
------------ ---------------------- -----------------
Net increase (decrease) in net assets resulting
from operations $ 191,851 $ 334,974 $ (1,278,848)
============ ====================== =================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
48
INVESCO V.I. INTERNATIONAL GROWTH INVESCO V.I. GOVERNMENT
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------ ---------------------------------------------------
2010 2009 (b) 2010 2009 2008
----------- ------------------------------ ---------- -------------------------- ----------
$ 4,364 $ 242 $ 164 $ 3,817 $ 2,019
----------- ------------------------------ ---------- -------------------------- ----------
783 29 265 208 143
----------- ------------------------------ ---------- -------------------------- ----------
783 29 265 208 143
----------- ------------------------------ ---------- -------------------------- ----------
3,581 213 (101) 3,609 1,876
----------- ------------------------------ ---------- -------------------------- ----------
-- -- -- -- --
1,465 34 (188) (289) (1,270)
----------- ------------------------------ ---------- -------------------------- ----------
1,465 34 (188) (289) (1,270)
----------- ------------------------------ ---------- -------------------------- ----------
26,537 2,258 4,107 (2,868) (983)
----------- ------------------------------ ---------- -------------------------- ----------
28,002 2,292 3,919 (3,157) (2,253)
----------- ------------------------------ ---------- -------------------------- ----------
$ 31,583 $ 2,505 $ 3,818 $ 452 $ (377)
=========== ============================== ========== ========================== ===========
The accompanying notes are an integral part of these financial statements.
49
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
INVESCO V.I.
VAN KAMPEN COMSTOCK FTVIPT TEMPLETON FOREIGN SECURITIES
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------- ------------ ---------------------- ---------------
2010 (c) 2010 2009 2008
---------------------- ------------ ---------------------- ---------------
INVESTMENT INCOME:
Dividends $ -- $ 164,170 $ 239,754 $ 202,235
---------------------- ------------ ---------------------- ---------------
EXPENSES:
Mortality and expense risk charges -- 239,041 28,000 35,755
---------------------- ------------ ---------------------- ---------------
Total expenses -- 239,041 28,000 35,755
---------------------- ------------ ---------------------- ---------------
Net investment income (loss) -- (74,871) 211,754 166,480
---------------------- ------------ ---------------------- ---------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 268,234 731,763
Realized gains (losses) on sale of investments 53 (50,450) (421,623) 3,883
---------------------- ------------ ---------------------- ---------------
Net realized gains (losses) 53 (50,450) (153,389) 735,646
---------------------- ------------ ---------------------- ---------------
Change in unrealized gains (losses) on investments 45 614,425 2,059,948 (4,855,241)
---------------------- ------------ ---------------------- ---------------
Net realized and change in unrealized gains (losses)
on investments 98 563,975 1,906,559 (4,119,595)
---------------------- ------------ ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations $ 98 $ 489,104 $ 2,118,313 $ (3,953,115)
====================== ============ ====================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
50
FTVIPT TEMPLETON
FTVIPT MUTUAL GLOBAL DISCOVERY SECURITIES GLOBAL BOND SECURITIES
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------ ---------------------------------
2010 2009 2008 2010 2009 (d)
----------- ---------------------- ------------- ---------- ----------------------
$ 10,103 $ 7,899 $ 47,911 $ 60 $ --
----------- ---------------------- ------------- ---------- ----------------------
2,866 4,787 8,447 89 4
----------- ---------------------- ------------- ---------- ----------------------
2,866 4,787 8,447 89 4
----------- ---------------------- ------------- ---------- ----------------------
7,237 3,112 39,464 (29) (4)
----------- ---------------------- ------------- ---------- ----------------------
-- 18,638 89,758 10 --
(4,189) (456,806) (11,513) 4,591 5
----------- ---------------------- ------------- ---------- ----------------------
(4,189) (438,168) 78,245 4,601 5
----------- ---------------------- ------------- ---------- ----------------------
81,592 609,659 (759,844) (171) 239
----------- ---------------------- ------------- ---------- ----------------------
77,403 171,491 (681,599) 4,430 244
----------- ---------------------- ------------- ---------- ----------------------
$ 84,640 $ 174,603 $ (642,135) $ 4,401 $ 240
=========== ====================== ============= ========== ======================
The accompanying notes are an integral part of these financial statements.
51
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
ALLIANCEBERNSTEIN GLOBAL THEMATIC GROWTH
INVESTMENT DIVISION
--------------------------------------------------------
2010 2009 2008
---------- ---------------------- ----------------------
INVESTMENT INCOME:
Dividends $ 1,486 $ -- $ --
---------- ---------------------- ----------------------
EXPENSES:
Mortality and expense risk charges 310 370 223
---------- ---------------------- ----------------------
Total expenses 310 370 223
---------- ---------------------- ----------------------
Net investment income (loss) 1,176 (370) (223)
---------- ---------------------- ----------------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 8,379 (2,773) (414)
---------- ---------------------- ----------------------
Net realized gains (losses) 8,379 (2,773) (414)
---------- ---------------------- ----------------------
Change in unrealized gains (losses) on investments 1,480 45,397 (37,457)
---------- ---------------------- ----------------------
Net realized and change in unrealized gains (losses)
on investments 9,859 42,624 (37,871)
---------- ---------------------- ----------------------
Net increase (decrease) in net assets resulting
from operations $ 11,035 $ 42,254 $ (38,094)
========== ====================== ======================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
52
ALLIANCEBERNSTEIN
ALLIANCEBERNSTEIN INTERMEDIATE BOND INTERNATIONAL VALUE FIDELITY VIP CONTRAFUND
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------------- -------------------------------------------------------
2010 2009 (e) 2010 (f) 2010 2009 2008
-------------- ----------------------- ------------------- ------------ -------------------------- ---------------
$ 2,177 $ 763 $ 31 $ 27,427 $ 43,475 $ 24,698
-------------- ----------------------- ------------------- ------------ -------------------------- ---------------
139 71 2 17,497 12,639 11,393
-------------- ----------------------- ------------------- ------------ -------------------------- ---------------
139 71 2 17,497 12,639 11,393
-------------- ----------------------- ------------------- ------------ -------------------------- ---------------
2,038 692 29 9,930 30,836 13,305
-------------- ----------------------- ------------------- ------------ -------------------------- ---------------
-- -- -- 1,114 957 76,672
2,172 716 1 (218,742) (199,492) (319,330)
-------------- ----------------------- ------------------- ------------ -------------------------- ---------------
2,172 716 1 (217,628) (198,535) (242,658)
-------------- ----------------------- ------------------- ------------ -------------------------- ---------------
(1,393) 2,187 88 648,547 1,136,586 (1,292,698)
-------------- ----------------------- ------------------- ------------ -------------------------- ---------------
779 2,903 89 430,919 938,051 (1,535,356)
-------------- ----------------------- ------------------- ------------ -------------------------- ---------------
$ 2,817 $ 3,595 $ 118 $ 440,849 $ 968,887 $ (1,522,051)
============== ======================= =================== ============ ========================== ===============
The accompanying notes are an integral part of these financial statements.
53
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
FIDELITY VIP ASSET MANAGER: GROWTH
INVESTMENT DIVISION
------------------------------------------------
2010 2009 2008
--------- ---------------------- -----------
INVESTMENT INCOME:
Dividends $ 19,264 $ 22,283 $ 22,937
--------- ---------------------- ---------------
EXPENSES:
Mortality and expense risk charges 11,265 6,417 5,926
--------- ---------------------- ---------------
Total expenses 11,265 6,417 5,926
--------- ---------------------- ---------------
Net investment income (loss) 7,999 15,866 17,011
--------- ---------------------- ---------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions 5,857 3,095 910
Realized gains (losses) on sale of investments 31,417 (19,280) 8,025
--------- ---------------------- ---------------
Net realized gains (losses) 37,274 (16,185) 8,935
--------- ---------------------- ---------------
Change in unrealized gains (losses) on investments 201,872 427,179 (532,156)
--------- ---------------------- ---------------
Net realized and change in unrealized gains (losses)
on investments 239,146 410,994 (523,221)
--------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations $ 247,145 $ 426,860 $ (506,210)
========= ====================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
54
FIDELITY VIP INVESTMENT GRADE BOND FIDELITY VIP EQUITY-INCOME
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------------- -------------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- ------------------ ----------- ----------------------------- -------------
$ 18,206 $ 10,680 $ 2,038 $ 3,327 $ 4,739 $ 20,119
-------------- ---------------------- ------------------ ----------- ----------------------------- -------------
4,314 369 535 838 1,051 3,772
-------------- ---------------------- ------------------ ----------- ----------------------------- -------------
4,314 369 535 838 1,051 3,772
-------------- ---------------------- ------------------ ----------- ----------------------------- -------------
13,892 10,311 1,503 2,489 3,688 16,347
-------------- ---------------------- ------------------ ----------- ----------------------------- -------------
5,814 654 40 -- -- 931
17,651 3,233 13,627 (5,418) (392,905) (282,918)
-------------- ---------------------- ------------------ ----------- ----------------------------- -------------
23,465 3,887 13,667 (5,418) (392,905) (281,987)
-------------- ---------------------- ------------------ ----------- ----------------------------- -------------
(13,312) (1,678) (8,842) 31,745 405,695 (292,885)
-------------- ---------------------- ------------------ ----------- ----------------------------- -------------
10,153 2,209 4,825 26,327 12,790 (574,872)
-------------- ---------------------- ------------------ ----------- ----------------------------- -------------
$ 24,045 $ 12,520 $ 6,328 $ 28,816 $ 16,478 $ (558,525)
============== ====================== ================== =========== ============================= =============
The accompanying notes are an integral part of these financial statements.
55
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
FIDELITY VIP HIGH INCOME
INVESTMENT DIVISION
------------------------------------
2010 2009 (b)
------------ -----------------------
INVESTMENT INCOME:
Dividends $ 340 $ 2,882
------------ -----------------------
EXPENSES:
Mortality and expense risk charges 30 33
------------ -----------------------
Total expenses 30 33
------------ -----------------------
Net investment income (loss) 310 2,849
------------ -----------------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- --
Realized gains (losses) on sale of investments (227) 11
------------ -----------------------
Net realized gains (losses) (227) 11
------------ -----------------------
Change in unrealized gains (losses) on investments 801 (647)
------------ -----------------------
Net realized and change in unrealized gains (losses)
on investments 574 (636)
------------ -----------------------
Net increase (decrease) in net assets resulting
from operations $ 884 $ 2,213
============ =======================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
56
FIDELITY VIP MID CAP FIDELITY VIP FREEDOM 2010
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- ----------------------------------------------------
2010 2009 2008 (a) 2010 2009 2008 (a)
-------------- ---------------------- ----------- ----------- --------------------------- ------------
$ 502 $ 119 $ 49 $ 654 $ 529 $ 828
-------------- ---------------------- ----------- ----------- --------------------------- ------------
5,209 142 35 109 72 26
-------------- ---------------------- ----------- ----------- --------------------------- ------------
5,209 142 35 109 72 26
-------------- ---------------------- ----------- ----------- --------------------------- ------------
(4,707) (23) 14 545 457 802
-------------- ---------------------- ----------- ----------- --------------------------- ------------
1,027 129 -- 470 190 721
2,077 613 (70) 67 (1,846) (176)
-------------- ---------------------- ----------- ----------- --------------------------- ------------
3,104 742 (70) 537 (1,656) 545
-------------- ---------------------- ----------- ----------- --------------------------- ------------
83,723 13,131 (10,714) 2,036 3,793 (2,956)
-------------- ---------------------- ----------- ----------- --------------------------- ------------
86,827 13,873 (10,784) 2,573 2,137 (2,411)
-------------- ---------------------- ----------- ----------- --------------------------- ------------
$ 82,120 $ 13,850 $ (10,770) $ 3,118 $ 2,594 $ (1,609)
============== ====================== =========== =========== =========================== ============
The accompanying notes are an integral part of these financial statements.
57
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
FIDELITY VIP FREEDOM 2020
INVESTMENT DIVISION
----------------------------------------------------
2010 2009 2008 (a)
----------- ---------------------------- -----------
INVESTMENT INCOME:
Dividends $ 15,231 $ 19,275 $ 1,266
----------- ---------------------------- -----------
EXPENSES:
Mortality and expense risk charges 2,551 2,094 49
----------- ---------------------------- -----------
Total expenses 2,551 2,094 49
----------- ---------------------------- -----------
Net investment income (loss) 12,680 17,181 1,217
----------- ---------------------------- -----------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions 5,440 10,109 1,384
Realized gains (losses) on sale of investments 2,838 (11,027) (106)
----------- ---------------------------- -----------
Net realized gains (losses) 8,278 (918) 1,278
----------- ---------------------------- -----------
Change in unrealized gains (losses) on investments 70,032 149,817 (11,135)
----------- ---------------------------- -----------
Net realized and change in unrealized gains (losses)
on investments 78,310 148,899 (9,857)
----------- ---------------------------- -----------
Net increase (decrease) in net assets resulting
from operations $ 90,990 $ 166,080 $ (8,640)
=========== ============================ ===========
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
58
FIDELITY VIP FREEDOM 2030 AMERICAN FUNDS GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------- ---------------------------------------------------------
2010 2009 2008 (a) 2010 2009 2008
----------- ------------------------- ----------- --------------- ------------------------ ----------------
$ 2,018 $ 624 $ 669 $ 832,401 $ 607,594 $ 916,946
----------- ------------------------- ----------- --------------- ------------------------ ----------------
364 112 17 953,940 768,579 908,181
----------- ------------------------- ----------- --------------- ------------------------ ----------------
364 112 17 953,940 768,579 908,181
----------- ------------------------- ----------- --------------- ------------------------ ----------------
1,654 512 652 (121,539) (160,985) 8,765
----------- ------------------------- ----------- --------------- ------------------------ ----------------
680 329 1,202 -- -- 12,124,971
710 38 (88) (328,082) (1,821,468) (207,564)
----------- ------------------------- ----------- --------------- ------------------------ ----------------
1,390 367 1,114 (328,082) (1,821,468) 11,917,407
----------- ------------------------- ----------- --------------- ------------------------ ----------------
11,839 6,395 (3,051) 19,817,938 31,985,158 (70,192,654)
----------- ------------------------- ----------- --------------- ------------------------ ----------------
13,229 6,762 (1,937) 19,489,856 30,163,690 (58,275,247)
----------- ------------------------- ----------- --------------- ------------------------ ----------------
$ 14,883 $ 7,274 $ (1,285) $ 19,368,317 $ 30,002,705 $ (58,266,482)
=========== ========================= =========== =============== ======================== ================
The accompanying notes are an integral part of these financial statements.
59
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
AMERICAN FUNDS GROWTH-INCOME
INVESTMENT DIVISION
--------------------------------------------------------
2010 2009 2008
-------------- ---------------------- ------------------
INVESTMENT INCOME:
Dividends $ 1,018,183 $ 922,229 $ 1,175,716
-------------- ---------------------- ------------------
EXPENSES:
Mortality and expense risk charges 564,494 475,319 559,000
-------------- ---------------------- ------------------
Total expenses 564,494 475,319 559,000
-------------- ---------------------- ------------------
Net investment income (loss) 453,689 446,910 616,716
-------------- ---------------------- ------------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 4,335,077
Realized gains (losses) on sale of investments (336,443) (956,152) (236,359)
-------------- ---------------------- ------------------
Net realized gains (losses) (336,443) (956,152) 4,098,718
-------------- ---------------------- ------------------
Change in unrealized gains (losses) on investments 6,948,053 15,943,649 (34,739,655)
-------------- ---------------------- ------------------
Net realized and change in unrealized gains (losses)
on investments 6,611,610 14,987,497 (30,640,937)
-------------- ---------------------- ------------------
Net increase (decrease) in net assets resulting
from operations $ 7,065,299 $ 15,434,407 $ (30,024,221)
============== ====================== ==================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
60
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION AMERICAN FUNDS BOND
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------- -------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ---------------------- ---------------- ------------ ---------------------- -------------
$ 1,031,490 $ 125,985 $ -- $ 126,810 $ 116,930 $ 196,489
--------------- ---------------------- ---------------- ------------ ---------------------- -------------
493,443 372,082 466,291 32,377 28,070 28,355
--------------- ---------------------- ---------------- ------------ ---------------------- -------------
493,443 372,082 466,291 32,377 28,070 28,355
--------------- ---------------------- ---------------- ------------ ---------------------- -------------
538,047 (246,097) (466,291) 94,433 88,860 168,134
--------------- ---------------------- ---------------- ------------ ---------------------- -------------
-- -- 7,571,704 -- -- 8,541
(386,466) (2,366,209) (694,299) (8,911) (91,981) (86,900)
--------------- ---------------------- ---------------- ------------ ---------------------- -------------
(386,466) (2,366,209) 6,877,405 (8,911) (91,981) (78,359)
--------------- ---------------------- ---------------- ------------ ---------------------- -------------
11,810,164 23,159,810 (44,244,505) 122,161 381,938 (446,834)
--------------- ---------------------- ---------------- ------------ ---------------------- -------------
11,423,698 20,793,601 (37,367,100) 113,250 289,957 (525,193)
--------------- ---------------------- ---------------- ------------ ---------------------- -------------
$ 11,961,745 $ 20,547,504 $ (37,833,391) $ 207,683 $ 378,817 $ (357,059)
=============== ====================== ================ ============ ====================== =============
The accompanying notes are an integral part of these financial statements.
61
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
AMERICAN FUNDS INTERNATIONAL
INVESTMENT DIVISION
-------------------------------------------------
2010 2009 2008 (a)
-------------- ------------------- --------------
INVESTMENT INCOME:
Dividends $ 13,328 $ 1,021 $ 1,123
-------------- ------------------- --------------
EXPENSES:
Mortality and expense risk charges 9,546 222 48
-------------- ------------------- --------------
Total expenses 9,546 222 48
-------------- ------------------- --------------
Net investment income (loss) 3,782 799 1,075
-------------- ------------------- --------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- 255 --
Realized gains (losses) on sale of investments (608) 1,282 (88)
-------------- ------------------- --------------
Net realized gains (losses) (608) 1,537 (88)
-------------- ------------------- --------------
Change in unrealized gains (losses) on investments 46,566 19,842 (13,968)
-------------- ------------------- --------------
Net realized and change in unrealized gains (losses)
on investments 45,958 21,379 (14,056)
-------------- ------------------- --------------
Net increase (decrease) in net assets resulting
from operations $ 49,740 $ 22,178 $ (12,981)
============== =================== ==============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
62
AMERICAN FUNDS U.S. GOVERNMENT/AAA RATED SECURITIES MIST T. ROWE PRICE MID CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------ -----------------------------------------------------------
2010 2009 2008 (a) 2010 2009 2008
---------- ---------------------- ------------------------ -------------- ---------------------- -----------------
$ 683 $ 2,005 $ 745 $ -- $ -- $ 10,159
---------- ---------------------- ------------------------ -------------- ---------------------- -----------------
596 265 36 150,122 115,483 131,625
---------- ---------------------- ------------------------ -------------- ---------------------- -----------------
596 265 36 150,122 115,483 131,625
---------- ---------------------- ------------------------ -------------- ---------------------- -----------------
87 1,740 709 (150,122) (115,483) (121,466)
---------- ---------------------- ------------------------ -------------- ---------------------- -----------------
193 505 -- -- -- 1,828,446
450 619 1 131,367 (381,122) (329,119)
---------- ---------------------- ------------------------ -------------- ---------------------- -----------------
643 1,124 1 131,367 (381,122) 1,499,327
---------- ---------------------- ------------------------ -------------- ---------------------- -----------------
1,804 (1,799) 862 4,580,355 5,596,487 (8,808,387)
---------- ---------------------- ------------------------ -------------- ---------------------- -----------------
2,447 (675) 863 4,711,722 5,215,365 (7,309,060)
---------- ---------------------- ------------------------ -------------- ---------------------- -----------------
$ 2,534 $ 1,065 $ 1,572 $ 4,561,600 $ 5,099,882 $ (7,430,526)
========== ====================== ======================== ============== ====================== =================
The accompanying notes are an integral part of these financial statements.
63
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST MFS RESEARCH INTERNATIONAL
INVESTMENT DIVISION
-------------------------------------------------------
2010 2009 2008
-------------- ---------------------- -----------------
INVESTMENT INCOME:
Dividends $ 240,942 $ 369,327 $ 256,943
-------------- ---------------------- -----------------
EXPENSES:
Mortality and expense risk charges 106,709 89,063 103,390
-------------- ---------------------- -----------------
Total expenses 106,709 89,063 103,390
-------------- ---------------------- -----------------
Net investment income (loss) 134,233 280,264 153,553
-------------- ---------------------- -----------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 1,302,185
Realized gains (losses) on sale of investments (545,005) (1,024,253) (411,130)
-------------- ---------------------- -----------------
Net realized gains (losses) (545,005) (1,024,253) 891,055
-------------- ---------------------- -----------------
Change in unrealized gains (losses) on investments 1,743,808 3,897,065 (7,755,181)
-------------- ---------------------- -----------------
Net realized and change in unrealized gains (losses)
on investments 1,198,803 2,872,812 (6,864,126)
-------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from operations $ 1,333,036 $ 3,153,076 $ (6,710,573)
============== ====================== =================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
64
MIST PIMCO TOTAL RETURN MIST RCM TECHNOLOGY
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- -----------------------------------------------------
2010 2009 2008 2010 2009 2008
----------- ----------------------- -------------- -------------- ---------------------- ---------------
$ 1,634,551 $ 2,762,595 $ 1,327,240 $ -- $ -- $ 1,349,744
----------- ----------------------- -------------- -------------- ---------------------- ---------------
360,915 310,295 283,126 111,175 82,504 88,892
----------- ----------------------- -------------- -------------- ---------------------- ---------------
360,915 310,295 283,126 111,175 82,504 88,892
----------- ----------------------- -------------- -------------- ---------------------- ---------------
1,273,636 2,452,300 1,044,114 (111,175) (82,504) 1,260,852
----------- ----------------------- -------------- -------------- ---------------------- ---------------
236,060 1,566,277 807,479 -- -- 2,816,232
238,435 10,564 (11,712) (54,192) (600,648) (702,139)
----------- ----------------------- -------------- -------------- ---------------------- ---------------
474,495 1,576,841 795,767 (54,192) (600,648) 2,114,093
----------- ----------------------- -------------- -------------- ---------------------- ---------------
1,426,113 1,911,046 (1,944,451) 3,551,862 5,182,655 (9,308,569)
----------- ----------------------- -------------- -------------- ---------------------- ---------------
1,900,608 3,487,887 (1,148,684) 3,497,670 4,582,007 (7,194,476)
----------- ----------------------- -------------- -------------- ---------------------- ---------------
$ 3,174,244 $ 5,940,187 $ (104,570) $ 3,386,495 $ 4,499,503 $ (5,933,624)
=========== ======================= ============== ============== ====================== ===============
The accompanying notes are an integral part of these financial statements.
65
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST LORD ABBETT BOND DEBENTURE
INVESTMENT DIVISION
----------------------------------------------------
2010 2009 2008
----------- ---------------------- -----------------
INVESTMENT INCOME:
Dividends $ 1,718,530 $ 1,572,315 $ 901,666
----------- ---------------------- -----------------
EXPENSES:
Mortality and expense risk charges 316,284 180,909 160,256
----------- ---------------------- -----------------
Total expenses 316,284 180,909 160,256
----------- ---------------------- -----------------
Net investment income (loss) 1,402,246 1,391,406 741,410
----------- ---------------------- -----------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 312,735
Realized gains (losses) on sale of investments 240,525 (126,749) (153,114)
----------- ---------------------- -----------------
Net realized gains (losses) 240,525 (126,749) 159,621
----------- ---------------------- -----------------
Change in unrealized gains (losses) on investments 1,315,427 5,411,601 (5,045,528)
----------- ---------------------- -----------------
Net realized and change in unrealized gains (losses)
on investments 1,555,952 5,284,852 (4,885,907)
----------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from operations $ 2,958,198 $ 6,676,258 $ (4,144,497)
=========== ====================== =================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
66
MIST LAZARD MID CAP MIST INVESCO SMALL CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------------- -----------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
$ 51,856 $ 51,729 $ 55,298 $ -- $ -- $ --
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
40,421 32,462 39,050 30,507 22,254 24,205
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
40,421 32,462 39,050 30,507 22,254 24,205
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
11,435 19,267 16,248 (30,507) (22,254) (24,205)
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
-- -- 338,409 -- -- 254,249
(93,933) (283,748) (302,807) (15,371) (84,509) (56,467)
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
(93,933) (283,748) 35,602 (15,371) (84,509) 197,782
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
1,108,654 1,519,608 (2,239,073) 887,599 919,328 (1,510,157)
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
1,014,721 1,235,860 (2,203,471) 872,228 834,819 (1,312,375)
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
$ 1,026,156 $ 1,255,127 $ (2,187,223) $ 841,721 $ 812,565 $ (1,336,580)
============== ====================== =============== ============ ====================== =================
The accompanying notes are an integral part of these financial statements.
67
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST HARRIS OAKMARK INTERNATIONAL
INVESTMENT DIVISION
-------------- ---------------------- --- --------------
2010 2009 2008
-------------- ---------------------- ------------------
INVESTMENT INCOME:
Dividends $ 576,287 $ 1,589,352 $ 427,414
-------------- ---------------------- ------------------
EXPENSES:
Mortality and expense risk charges 232,976 170,663 185,029
-------------- ---------------------- ------------------
Total expenses 232,976 170,663 185,029
-------------- ---------------------- ------------------
Net investment income (loss) 343,311 1,418,689 242,385
-------------- ---------------------- ------------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 3,659,339
Realized gains (losses) on sale of investments (312,283) (1,294,657) (984,052)
-------------- ---------------------- ------------------
Net realized gains (losses) (312,283) (1,294,657) 2,675,287
-------------- ---------------------- ------------------
Change in unrealized gains (losses) on investments 4,235,035 8,897,628 (13,913,907)
-------------- ---------------------- ------------------
Net realized and change in unrealized gains (losses)
on investments 3,922,752 7,602,971 (11,238,620)
-------------- ---------------------- ------------------
Net increase (decrease) in net assets resulting
from operations $ 4,266,063 $ 9,021,660 $ (10,996,235)
============== ====================== ==================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
68
MIST LEGG MASON CLEARBRIDGE AGGRESSIVE GROWTH MIST LORD ABBETT GROWTH AND INCOME
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------------- -----------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
$ 4,315 $ 6,856 $ 943 $ 65,246 $ 104,472 $ 96,064
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
57,953 47,276 57,519 134,790 18,231 25,528
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
57,953 47,276 57,519 134,790 18,231 25,528
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
(53,638) (40,420) (56,576) (69,544) 86,241 70,536
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
-- -- 54,432 -- -- 543,774
(57,251) (166,346) (72,581) (79,021) (261,167) (71,592)
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
(57,251) (166,346) (18,149) (79,021) (261,167) 472,182
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
1,583,027 1,815,976 (3,076,964) 921,874 894,542 (2,888,440)
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
1,525,776 1,649,630 (3,095,113) 842,853 633,375 (2,416,258)
-------------- ---------------------- --------------- ------------ ---------------------- -----------------
$ 1,472,138 $ 1,609,210 $ (3,151,689) $ 773,309 $ 719,616 $ (2,345,722)
============== ====================== =============== ============ ====================== =================
The accompanying notes are an integral part of these financial statements.
69
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST CLARION GLOBAL REAL ESTATE
INVESTMENT DIVISION
-------------------------------------------------------
2010 2009 2008
-------------- ---------------------- -----------------
INVESTMENT INCOME:
Dividends $ 1,558,222 $ 496,210 $ 332,725
-------------- ---------------------- -----------------
EXPENSES:
Mortality and expense risk charges 166,255 119,529 140,313
-------------- ---------------------- -----------------
Total expenses 166,255 119,529 140,313
-------------- ---------------------- -----------------
Net investment income (loss) 1,391,967 376,681 192,412
-------------- ---------------------- -----------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 1,614,459
Realized gains (losses) on sale of investments (571,095) (1,092,248) (667,437)
-------------- ---------------------- -----------------
Net realized gains (losses) (571,095) (1,092,248) 947,022
-------------- ---------------------- -----------------
Change in unrealized gains (losses) on investments 1,969,823 5,493,585 (9,433,208)
-------------- ---------------------- -----------------
Net realized and change in unrealized gains (losses)
on investments 1,398,728 4,401,337 (8,486,186)
-------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from operations $ 2,790,695 $ 4,778,018 $ (8,293,774)
============== ====================== =================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
70
MIST MORGAN STANLEY MID CAP GROWTH MIST LORD ABBETT MID CAP VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------------- -------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ---------------------- -------------- ----------- ---------------------- --------------
$ 28 $ -- $ 345 $ 568 $ 1,893 $ 197
--------------- ---------------------- -------------- ----------- ---------------------- --------------
957,621 870 78 369 335 312
--------------- ---------------------- -------------- ----------- ---------------------- --------------
957,621 870 78 369 335 312
--------------- ---------------------- -------------- ----------- ---------------------- --------------
(957,593) (870) 267 199 1,558 (115)
--------------- ---------------------- -------------- ----------- ---------------------- --------------
-- -- 2,390 -- -- 5,229
336,382 1,780 (81) 3,236 (38,897) (14,654)
--------------- ---------------------- -------------- ----------- ---------------------- --------------
336,382 1,780 2,309 3,236 (38,897) (9,425)
--------------- ---------------------- -------------- ----------- ---------------------- --------------
31,775,159 75,648 (17,251) 19,769 57,059 (38,556)
--------------- ---------------------- -------------- ----------- ---------------------- --------------
32,111,541 77,428 (14,942) 23,005 18,162 (47,981)
--------------- ---------------------- -------------- ----------- ---------------------- --------------
$ 31,153,948 $ 76,558 $ (14,675) $ 23,204 $ 19,720 $ (48,096)
=============== ====================== ============== =========== ====================== ==============
The accompanying notes are an integral part of these financial statements.
71
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST THIRD AVENUE SMALL CAP VALUE
INVESTMENT DIVISION
------------------------------------------------
2010 2009 2008
--------- ---------------------- ---------------
INVESTMENT INCOME:
Dividends $ 12,822 $ 3,058 $ 2,384
--------- ---------------------- ---------------
EXPENSES:
Mortality and expense risk charges 11,741 2,219 1,496
--------- ---------------------- ---------------
Total expenses 11,741 2,219 1,496
--------- ---------------------- ---------------
Net investment income (loss) 1,081 839 888
--------- ---------------------- ---------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- 2,838 21,799
Realized gains (losses) on sale of investments 42,370 (17,013) (21,646)
--------- ---------------------- ---------------
Net realized gains (losses) 42,370 (14,175) 153
--------- ---------------------- ---------------
Change in unrealized gains (losses) on investments 198,929 152,916 (119,764)
--------- ---------------------- ---------------
Net realized and change in unrealized gains (losses)
on investments 241,299 138,741 (119,611)
--------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations $ 242,380 $ 139,580 $ (118,723)
========= ====================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
72
MIST OPPENHEIMER CAPITAL APPRECIATION MIST LEGG MASON VALUE EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------------- -----------------------------------------------------
2010 2009 2008 2010 2009 2008
------------ ---------------------- --------------- ------------ ---------------------- -----------------
$ 10,876 $ -- $ 40,326 $ 93,044 $ 60,620 $ 12,937
------------ ---------------------- --------------- ------------ ---------------------- -----------------
13,539 10,277 9,700 35,652 28,252 33,929
------------ ---------------------- --------------- ------------ ---------------------- -----------------
13,539 10,277 9,700 35,652 28,252 33,929
------------ ---------------------- --------------- ------------ ---------------------- -----------------
(2,663) (10,277) 30,626 57,392 32,368 (20,992)
------------ ---------------------- --------------- ------------ ---------------------- -----------------
-- -- 295,189 -- -- 176,346
(39,996) (109,001) (106,123) (148,382) (273,743) (135,383)
------------ ---------------------- --------------- ------------ ---------------------- -----------------
(39,996) (109,001) 189,066 (148,382) (273,743) 40,963
------------ ---------------------- --------------- ------------ ---------------------- -----------------
190,578 558,202 (860,586) 390,845 1,354,429 (3,108,496)
------------ ---------------------- --------------- ------------ ---------------------- -----------------
150,582 449,201 (671,520) 242,463 1,080,686 (3,067,533)
------------ ---------------------- --------------- ------------ ---------------------- -----------------
$ 147,919 $ 438,924 $ (640,894) $ 299,855 $ 1,113,054 $ (3,088,525)
============ ====================== =============== ============ ====================== =================
The accompanying notes are an integral part of these financial statements.
73
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST SSGA GROWTH ETF
INVESTMENT DIVISION
-----------------------------------------------
2010 2009 2008
--------- ----------------------- -------------
INVESTMENT INCOME:
Dividends $ 34,185 $ 15,419 $ 9,041
--------- ----------------------- -------------
EXPENSES:
Mortality and expense risk charges 17,903 8,413 4,512
--------- ----------------------- -------------
Total expenses 17,903 8,413 4,512
--------- ----------------------- -------------
Net investment income (loss) 16,282 7,006 4,529
--------- ----------------------- -------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 11,307
Realized gains (losses) on sale of investments 12,378 (20,730) (32,358)
--------- ----------------------- -------------
Net realized gains (losses) 12,378 (20,730) (21,051)
--------- ----------------------- -------------
Change in unrealized gains (losses) on investments 271,601 309,775 (210,490)
--------- ----------------------- -------------
Net realized and change in unrealized gains (losses)
on investments 283,979 289,045 (231,541)
--------- ----------------------- -------------
Net increase (decrease) in net assets resulting
from operations $ 300,261 $ 296,051 $ (227,012)
========= ======================= =============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
74
MIST SSGA GROWTH AND INCOME ETF MIST PIMCO INFLATION PROTECTED BOND
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------- ------------------------------------------------
2010 2009 2008 2010 2009 2008
--------- ------------------- --------------- --------- ---------------------- ---------------
$ 35,130 $ 13,156 $ 7,559 $ 210,729 $ 247,574 $ 129,679
--------- ------------------- --------------- --------- ---------------------- ---------------
22,837 6,883 3,301 64,055 52,710 34,082
--------- ------------------- --------------- --------- ---------------------- ---------------
22,837 6,883 3,301 64,055 52,710 34,082
--------- ------------------- --------------- --------- ---------------------- ---------------
12,293 6,273 4,258 146,674 194,864 95,597
--------- ------------------- --------------- --------- ---------------------- ---------------
115 -- 8,201 220,376 -- 6,847
16,043 3,801 (45,016) 60,903 (46,474) (100,879)
--------- ------------------- --------------- --------- ---------------------- ---------------
16,158 3,801 (36,815) 281,279 (46,474) (94,032)
--------- ------------------- --------------- --------- ---------------------- ---------------
322,318 204,020 (94,558) 130,473 877,182 (678,454)
--------- ------------------- --------------- --------- ---------------------- ---------------
338,476 207,821 (131,373) 411,752 830,708 (772,486)
--------- ------------------- --------------- --------- ---------------------- ---------------
$ 350,769 $ 214,094 $ (127,115) $ 558,426 $ 1,025,572 $ (676,889)
========= =================== =============== ========= ====================== ===============
The accompanying notes are an integral part of these financial statements.
75
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST BLACKROCK LARGE CAP CORE
INVESTMENT DIVISION
----------------------------------------------------------
2010 2009 2008
--------------- ---------------------- -------------------
INVESTMENT INCOME:
Dividends $ 3,848,840 $ 4,180,146 $ 2,475,191
--------------- ---------------------- -------------------
EXPENSES:
Mortality and expense risk charges 2,233,231 2,047,270 2,792,458
--------------- ---------------------- -------------------
Total expenses 2,233,231 2,047,270 2,792,458
--------------- ---------------------- -------------------
Net investment income (loss) 1,615,609 2,132,876 (317,267)
--------------- ---------------------- -------------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 16,168,718
Realized gains (losses) on sale of investments (7,248,214) (10,716,690) (6,439,384)
--------------- ---------------------- -------------------
Net realized gains (losses) (7,248,214) (10,716,690) 9,729,334
--------------- ---------------------- -------------------
Change in unrealized gains (losses) on investments 38,497,976 54,384,062 (169,653,539)
--------------- ---------------------- -------------------
Net realized and change in unrealized gains (losses)
on investments 31,249,762 43,667,372 (159,924,205)
--------------- ---------------------- -------------------
Net increase (decrease) in net assets resulting
from operations $ 32,865,371 $ 45,800,248 $ (160,241,472)
=============== ====================== ===================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
76
MIST JANUS FORTY MIST DREMAN SMALL CAP VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------------- -----------------------------------------------------------
2010 2009 2008 2010 2009 2008 (a)
-------------- ---------------------- --------------- ------------- ---------------------- ----------------------
$ 219,796 $ -- $ 306,277 $ 172 $ 1 $ --
-------------- ---------------------- --------------- ------------- ---------------------- ----------------------
99,823 75,162 57,079 220 428 --
-------------- ---------------------- --------------- ------------- ---------------------- ----------------------
99,823 75,162 57,079 220 428 --
-------------- ---------------------- --------------- ------------- ---------------------- ----------------------
119,973 (75,162) 249,198 (48) (427) --
-------------- ---------------------- --------------- ------------- ---------------------- ----------------------
-- -- 132,557 -- -- --
(41,591) (540,105) (167,618) 403 58,177 (10)
-------------- ---------------------- --------------- ------------- ---------------------- ----------------------
(41,591) (540,105) (35,061) 403 58,177 (10)
-------------- ---------------------- --------------- ------------- ---------------------- ----------------------
1,120,682 3,887,171 (4,523,728) 3,392 2,844 6
-------------- ---------------------- --------------- ------------- ---------------------- ----------------------
1,079,091 3,347,066 (4,558,789) 3,795 61,021 (4)
-------------- ---------------------- --------------- ------------- ---------------------- ----------------------
$ 1,199,064 $ 3,271,904 $ (4,309,591) $ 3,747 $ 60,594 $ (4)
============== ====================== =============== ============= ====================== ======================
The accompanying notes are an integral part of these financial statements.
77
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST AMERICAN FUNDS BALANCED ALLOCATION
INVESTMENT DIVISION
-----------------------------------------------
2010 2009 2008 (a)
----------- ---------------------- ------------
INVESTMENT INCOME:
Dividends $ 3,146 $ -- $ 368
----------- ---------------------- ------------
EXPENSES:
Mortality and expense risk charges -- -- --
----------- ---------------------- ------------
Total expenses -- -- --
----------- ---------------------- ------------
Net investment income (loss) 3,146 -- 368
----------- ---------------------- ------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions 117 -- 1
Realized gains (losses) on sale of investments 1,705 (28) (91)
----------- ---------------------- ------------
Net realized gains (losses) 1,822 (28) (90)
----------- ---------------------- ------------
Change in unrealized gains (losses) on investments 26,193 14,667 (1,781)
----------- ---------------------- ------------
Net realized and change in unrealized gains (losses)
on investments 28,015 14,639 (1,871)
----------- ---------------------- ------------
Net increase (decrease) in net assets resulting
from operations $ 31,161 $ 14,639 $ (1,503)
=========== ====================== ============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
78
MIST AMERICAN FUNDS GROWTH ALLOCATION MIST AMERICAN FUNDS MODERATE ALLOCATION
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------------- -------------------------------------------------------
2010 2009 2008 (a) 2010 2009 2008 (a)
----------- ------------------- ----------------------------- ----------- ------------------- -----------------------
$ 2,434 $ -- $ 644 $ 2,501 $ -- $ 165
----------- ------------------- ----------------------------- ----------- ------------------- -----------------------
-- -- -- -- -- --
----------- ------------------- ----------------------------- ----------- ------------------- -----------------------
-- -- -- -- -- --
----------- ------------------- ----------------------------- ----------- ------------------- -----------------------
2,434 -- 644 2,501 -- 165
----------- ------------------- ----------------------------- ----------- ------------------- -----------------------
-- -- -- -- -- --
5,990 1,298 12 646 370 (29)
----------- ------------------- ----------------------------- ----------- ------------------- -----------------------
5,990 1,298 12 646 370 (29)
----------- ------------------- ----------------------------- ----------- ------------------- -----------------------
79,550 20,909 (48) 16,902 11,101 (130)
----------- ------------------- ----------------------------- ----------- ------------------- -----------------------
85,540 22,207 (36) 17,548 11,471 (159)
----------- ------------------- ----------------------------- ----------- ------------------- -----------------------
$ 87,974 $ 22,207 $ 608 $ 20,049 $ 11,471 $ 6
=========== =================== ============================= =========== =================== =======================
The accompanying notes are an integral part of these financial statements.
79
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST MET/FRANKLIN INCOME
INVESTMENT DIVISION
------------------------------------------------
2010 2009 2008 (a)
----------- ------------------------ -----------
INVESTMENT INCOME:
Dividends $ 3,216 $ -- $ 469
----------- ------------------------ -----------
EXPENSES:
Mortality and expense risk charges -- -- --
----------- ------------------------ -----------
Total expenses -- -- --
----------- ------------------------ -----------
Net investment income (loss) 3,216 -- 469
----------- ------------------------ -----------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions 433 -- --
Realized gains (losses) on sale of investments 390 54 (63)
----------- ------------------------ -----------
Net realized gains (losses) 823 54 (63)
----------- ------------------------ -----------
Change in unrealized gains (losses) on investments 10,272 9,507 (2,459)
----------- ------------------------ -----------
Net realized and change in unrealized gains (losses)
on investments 11,095 9,561 (2,522)
----------- ------------------------ -----------
Net increase (decrease) in net assets resulting
from operations $ 14,311 $ 9,561 $ (2,053)
=========== ======================== ===========
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
80
MIST MET/FRANKLIN MUTUAL SHARES MIST MET/FRANKLIN TEMPLETON FOUNDING STRATEGY
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------ --------------------------------------------------------
2010 2009 2008 (a) 2010 2009 2008 (a)
---------- ---------------------- -------------- -------- ------------------- ---------------------------
$ -- $ -- $ 234 $ -- $ -- $ 207
---------- ---------------------- -------------- -------- ------------------- ---------------------------
-- -- -- -- -- --
---------- ---------------------- -------------- -------- ------------------- ---------------------------
-- -- -- -- -- --
---------- ---------------------- -------------- -------- ------------------- ---------------------------
-- -- 234 -- -- 207
---------- ---------------------- -------------- -------- ------------------- ---------------------------
577 -- -- 1 -- --
106 (91) (83) 1,545 565 (21)
---------- ---------------------- -------------- -------- ------------------- ---------------------------
683 (91) (83) 1,546 565 (21)
---------- ---------------------- -------------- -------- ------------------- ---------------------------
4,077 4,710 (2,584) 23,230 14,572 (146)
---------- ---------------------- -------------- -------- ------------------- ---------------------------
4,760 4,619 (2,667) 24,776 15,137 (167)
---------- ---------------------- -------------- -------- ------------------- ---------------------------
$ 4,760 $ 4,619 $ (2,433) $ 24,776 $ 15,137 $ 40
========== ====================== ============== ======== =================== ===========================
The accompanying notes are an integral part of these financial statements.
81
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST MET/TEMPLETON GROWTH
INVESTMENT DIVISION
--------------------------------------------------------
2010 2009 2008 (a)
---------- ---------------------- ----------------------
INVESTMENT INCOME:
Dividends $ 305 $ 2 $ 18
---------- ---------------------- ----------------------
EXPENSES:
Mortality and expense risk charges -- -- --
---------- ---------------------- ----------------------
Total expenses -- -- --
---------- ---------------------- ----------------------
Net investment income (loss) 305 2 18
---------- ---------------------- ----------------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 125 (60) (39)
---------- ---------------------- ----------------------
Net realized gains (losses) 125 (60) (39)
---------- ---------------------- ----------------------
Change in unrealized gains (losses) on investments 3,904 3,117 (322)
---------- ---------------------- ----------------------
Net realized and change in unrealized gains (losses)
on investments 4,029 3,057 (361)
---------- ---------------------- ----------------------
Net increase (decrease) in net assets resulting
from operations $ 4,334 $ 3,059 $ (343)
========== ====================== ======================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
82
MIST PIONEER FUND AMERICAN CENTURY VP VISTA
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------ -----------------------------------------
2010 2009 (d) 2010 2009 2008
----------- --------------- -------------- ---------------------------- ------------
$ 1,987 $ -- $ -- $ -- $ --
----------- --------------- -------------- ---------------------------- ------------
982 580 519 472 285
----------- --------------- -------------- ---------------------------- ------------
982 580 519 472 285
----------- --------------- -------------- ---------------------------- ------------
1,005 (580) (519) (472) (285)
----------- --------------- -------------- ---------------------------- ------------
-- -- -- -- 1,116
6,067 1,986 12,351 (47,927) (912)
----------- --------------- -------------- ---------------------------- ------------
6,067 1,986 12,351 (47,927) 204
----------- --------------- -------------- ---------------------------- ------------
25,716 48,304 (1,947) 67,433 (65,328)
----------- --------------- -------------- ---------------------------- ------------
31,783 50,290 10,404 19,506 (65,124)
----------- --------------- -------------- ---------------------------- ------------
$ 32,788 $ 49,710 $ 9,885 $ 19,034 $ (65,409)
=========== =============== ============== ============================ ============
The accompanying notes are an integral part of these financial statements.
83
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
DELAWARE VIP SMALL CAP VALUE
INVESTMENT DIVISION
-----------------------------------------------------
2010 2009 2008
-------------- ---------------------- ---------------
INVESTMENT INCOME:
Dividends $ 980 $ 4,242 $ 4,853
-------------- ---------------------- ---------------
EXPENSES:
Mortality and expense risk charges 1,541 1,544 4,658
-------------- ---------------------- ---------------
Total expenses 1,541 1,544 4,658
-------------- ---------------------- ---------------
Net investment income (loss) (561) 2,698 195
-------------- ---------------------- ---------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 70,050
Realized gains (losses) on sale of investments 10,618 (324,068) (158,860)
-------------- ---------------------- ---------------
Net realized gains (losses) 10,618 (324,068) (88,810)
-------------- ---------------------- ---------------
Change in unrealized gains (losses) on investments 49,508 372,833 (269,207)
-------------- ---------------------- ---------------
Net realized and change in unrealized gains (losses)
on investments 60,126 48,765 (358,017)
-------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations $ 59,565 $ 51,463 $ (357,822)
============== ====================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
84
DREYFUS VIF INTERNATIONAL VALUE GOLDMAN SACHS MID CAP VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
-------------- ---------------------- --- ----------- ----------- ---------------------- --- -----------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- --------------- ----------- ---------------------- ---------------
$ 3,367 $ 10,533 $ 10,713 $ 2,264 $ 5,173 $ 13,616
-------------- ---------------------- --------------- ----------- ---------------------- ---------------
876 1,264 2,366 1,356 2,426 5,676
-------------- ---------------------- --------------- ----------- ---------------------- ---------------
876 1,264 2,366 1,356 2,426 5,676
-------------- ---------------------- --------------- ----------- ---------------------- ---------------
2,491 9,269 8,347 908 2,747 7,940
-------------- ---------------------- --------------- ----------- ---------------------- ---------------
-- -- 92,929 -- -- 2,438
(14,086) (185,176) (67,586) (13,608) (540,331) (114,620)
-------------- ---------------------- --------------- ----------- ---------------------- ---------------
(14,086) (185,176) 25,343 (13,608) (540,331) (112,182)
-------------- ---------------------- --------------- ----------- ---------------------- ---------------
19,382 238,024 (268,322) 84,633 633,578 (486,662)
-------------- ---------------------- --------------- ----------- ---------------------- ---------------
5,296 52,848 (242,979) 71,025 93,247 (598,844)
-------------- ---------------------- --------------- ----------- ---------------------- ---------------
$ 7,787 $ 62,117 $ (234,632) $ 71,933 $ 95,994 $ (590,904)
============== ====================== =============== =========== ====================== ===============
The accompanying notes are an integral part of these financial statements.
85
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
GOLDMAN SACHS STRUCTURED SMALL CAP EQUITY
INVESTMENT DIVISION
---------------------------------------------------------
2010 2009 2008
-------------- ---------------------- -------------------
INVESTMENT INCOME:
Dividends $ 254 $ 724 $ 447
-------------- ---------------------- -------------------
EXPENSES:
Mortality and expense risk charges 154 173 255
-------------- ---------------------- -------------------
Total expenses 154 173 255
-------------- ---------------------- -------------------
Net investment income (loss) 100 551 192
-------------- ---------------------- -------------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 113
Realized gains (losses) on sale of investments (7,335) (17,708) (35,096)
-------------- ---------------------- -------------------
Net realized gains (losses) (7,335) (17,708) (34,983)
-------------- ---------------------- -------------------
Change in unrealized gains (losses) on investments 18,632 28,044 (655)
-------------- ---------------------- -------------------
Net realized and change in unrealized gains (losses)
on investments 11,297 10,336 (35,638)
-------------- ---------------------- -------------------
Net increase (decrease) in net assets resulting
from operations $ 11,397 $ 10,887 $ (35,446)
============== ====================== ===================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
86
MFS VIT HIGH INCOME MFS VIT GLOBAL EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------- -------------------------------------------------
2010 2009 2008 2010 2009 2008
---------- ------------------- -------------- ----------- ------------------------ ------------
$ 8,657 $ 933 $ 1,656 $ 1,232 $ 1,242 $ 480
---------- ------------------- -------------- ----------- ------------------------ ------------
457 273 62 598 238 255
---------- ------------------- -------------- ----------- ------------------------ ------------
457 273 62 598 238 255
---- ----- ------------------- ---- --------- ---- ------ ------------------------ ------------
8,200 660 1,594 634 1,004 225
---------- ------------------- -------------- ----------- ------------------------ ------------
-- -- -- -- -- 4,968
680 326 (3,105) 183 (11,994) (670)
---------- ------------------- -------------- ----------- ------------------------ ------------
680 326 (3,105) 183 (11,994) 4,298
---------- ------------------- -------------- ----------- ------------------------ ------------
7,331 21,466 (1,097) 19,523 27,307 (30,617)
---------- ------------------- -------------- ----------- ------------------------ ------------
8,011 21,792 (4,202) 19,706 15,313 (26,319)
---------- ------------------- -------------- ----------- ------------------------ ------------
$ 16,211 $ 22,452 $ (2,608) $ 20,340 $ 16,317 $ (26,094)
========== =================== ============== =========== ======================== ============
The accompanying notes are an integral part of these financial statements.
87
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MFS VIT NEW DISCOVERY
INVESTMENT DIVISION
------------------------------------------------------
2010 2009 2008
-------------- ------------------------ --------------
INVESTMENT INCOME:
Dividends $ -- $ -- $ --
-------------- ------------------------ --------------
EXPENSES:
Mortality and expense risk charges 340 27 11
-------------- ------------------------ --------------
Total expenses 340 27 11
-------------- ------------------------ --------------
Net investment income (loss) (340) (27) (11)
-------------- ------------------------ --------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- 561
Realized gains (losses) on sale of investments 544 1,560 (22)
-------------- ------------------------ --------------
Net realized gains (losses) 544 1,560 539
-------------- ------------------------ --------------
Change in unrealized gains (losses) on investments 28,843 3,314 (1,817)
-------------- ------------------------ --------------
Net realized and change in unrealized gains (losses)
on investments 29,387 4,874 (1,278)
-------------- ------------------------ --------------
Net increase (decrease) in net assets resulting
from operations $ 29,047 $ 4,847 $ (1,289)
============== ======================== ==============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
88
MFS VIT VALUE WELLS FARGO VT TOTAL RETURN BOND
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------ ---------------------------------------------
2010 2009 2008 2010 2009 2008
------------- ---------------------- ----------- ----------- ------------------- -------------
$ 969 $ 803 $ 10,331 $ 29,774 $ 18,789 $ 7,542
------------- ---------------------- ----------- ----------- ------------------- -------------
293 257 302 6,709 1,892 619
------------- ---------------------- ----------- ----------- ------------------- -------------
293 257 302 6,709 1,892 619
------------- ---------------------- ----------- ----------- ------------------- -------------
676 546 10,029 23,065 16,897 6,923
------------- ---------------------- ----------- ----------- ------------------- -------------
-- -- 42,245 23,602 2,046 --
(552) (1,224) (23,850) 10,857 3,173 (532)
------------- ---------------------- ----------- ----------- ------------------- -------------
(552) (1,224) 18,395 34,459 5,219 (532)
------------- ---------------------- ----------- ----------- ------------------- -------------
7,585 14,082 (26,364) (12,496) 23,526 (2,943)
------------- ---------------------- ----------- ----------- ------------------- -------------
7,033 12,858 (7,969) 21,963 28,745 (3,475)
------------- ---------------------- ----------- ----------- ------------------- -------------
$ 7,709 $ 13,404 $ 2,060 $ 45,028 $ 45,642 $ 3,448
============= ====================== =========== =========== =================== =============
The accompanying notes are an integral part of these financial statements.
89
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
PIONEER VCT EMERGING MARKETS
INVESTMENT DIVISION
-----------------------------------------------
2010 2009 2008 (a)
------------ ------------------- --------------
INVESTMENT INCOME:
Dividends $ 3,039 $ 5,200 $ --
------------ ------------------- --------------
EXPENSES:
Mortality and expense risk charges 13,622 1,999 141
------------ ------------------- --------------
Total expenses 13,622 1,999 141
------------ ------------------- --------------
Net investment income (loss) (10,583) 3,201 (141)
------------ ------------------- --------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 75,682 8,989 (554)
------------ ------------------- --------------
Net realized gains (losses) 75,682 8,989 (554)
------------ ------------------- --------------
Change in unrealized gains (losses) on investments 68,690 311,181 (40,541)
------------ ------------------- --------------
Net realized and change in unrealized gains (losses)
on investments 144,372 320,170 (41,095)
------------ ------------------- --------------
Net increase (decrease) in net assets resulting
from operations $ 133,789 $ 323,371 $ (41,236)
============ =================== ==============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
90
PIONEER VCT MID CAP VALUE ROYCE MICRO-CAP ROYCE SMALL-CAP
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------- ---------------------------------------------------------------
2010 2009 (b) 2010 (f) 2010 2009 (g)
----------- ------------------------- ---------------------- -------------- -------------------------
$ 801 $ -- $ 5,659 $ 425 $ --
----------- ------------------------- ---------------------- -------------- -------------------------
297 34 619 1,285 57
----------- ------------------------- ---------------------- -------------- -------------------------
297 34 619 1,285 57
----------- ------------------------- ---------------------- -------------- -------------------------
504 (34) 5,040 (860) (57)
----------- ------------------------- ---------------------- -------------- -------------------------
-- -- -- -- --
313 32 197 2,111 16
----------- ------------------------- ---------------------- -------------- -------------------------
313 32 197 2,111 16
----------- ------------------------- ---------------------- -------------- -------------------------
14,039 2,439 61,964 63,066 2,984
----------- ------------------------- ---------------------- -------------- -------------------------
14,352 2,471 62,161 65,177 3,000
----------- ------------------------- ---------------------- -------------- -------------------------
$ 14,856 $ 2,437 $ 67,201 $ 64,317 $ 2,943
=========== ========================= ====================== ============== =========================
The accompanying notes are an integral part of these financial statements.
91
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONCLUDED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
UIF EMERGING MARKETS DEBT
INVESTMENT DIVISION
--------------------------------
2010 2009 (g)
-------- -----------------------
INVESTMENT INCOME:
Dividends $ 318 $ 74
-------- -----------------------
EXPENSES:
Mortality and expense risk charges 31 6
-------- -----------------------
Total expenses 31 6
-------- -----------------------
Net investment income (loss) 287 68
-------- -----------------------
NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- --
Realized gains (losses) on sale of investments 87 32
-------- -----------------------
Net realized gains (losses) 87 32
-------- -----------------------
Change in unrealized gains (losses) on investments 318 95
-------- -----------------------
Net realized and change in unrealized gains (losses)
on investments 405 127
-------- -----------------------
Net increase (decrease) in net assets resulting
from operations $ 692 $ 195
======== =======================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
92
UIF EMERGING MARKETS EQUITY PIMCO VIT LOW DURATION
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------- ----------------------------------
2010 2009 (g) 2010 2009 (d)
----------- --------------------------- ----------- ----------------------
$ 758 $ -- $ 12,187 $ 11,216
----------- --------------------------- ----------- ----------------------
520 17 2,779 1,731
----------- --------------------------- ----------- ----------------------
520 17 2,779 1,731
----------- --------------------------- ----------- ----------------------
238 (17) 9,408 9,485
----------- --------------------------- ----------- ----------------------
-- -- 2,469 32,906
899 480 260 180
----------- --------------------------- ----------- ----------------------
899 480 2,729 33,086
----------- --------------------------- ----------- ----------------------
38,992 1,146 23,685 1,601
----------- --------------------------- ----------- ----------------------
39,891 1,626 26,414 34,687
----------- --------------------------- ----------- ----------------------
$ 40,129 $ 1,609 $ 35,822 $ 44,172
=========== =========================== =========== ======================
The accompanying notes are an integral part of these financial statements.
93
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF BLACKROCK DIVERSIFIED
INVESTMENT DIVISION
--------------------------------------------------------------
2010 2009 2008
---------------- ---------------------------- ----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 2,653,340 $ 10,169,948 $ 5,620,528
Net realized gains (losses) (1,951,136) (4,609,576) 1,274,596
Change in unrealized gains (losses) on investments 20,635,275 31,028,944 (90,018,067)
---------------- ---------------------------- ----------------
Net increase (decrease) in net assets resulting
from operations 21,337,479 36,589,316 (83,122,943)
---------------- ---------------------------- ----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 29,469,771 32,386,040 36,312,304
Net transfers (including fixed account) (2,059,076) (4,711,176) (7,645,743)
Policy charges (23,701,241) (25,234,205) (25,234,783)
Transfers for policy benefits and terminations (19,336,433) (17,354,140) (18,838,290)
---------------- ---------------------------- ----------------
Net increase (decrease) in net assets resulting
from policy transactions (15,626,979) (14,913,481) (15,406,512)
---------------- ---------------------------- ----------------
Net increase (decrease) in net assets 5,710,500 21,675,835 (98,529,455)
NET ASSETS:
Beginning of year 257,391,816 235,715,981 334,245,436
---------------- ---------------------------- ----------------
End of year $ 263,102,316 $ 257,391,816 $ 235,715,981
================ ============================ ================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
94
MSF BLACKROCK AGGRESSIVE GROWTH MSF METLIFE STOCK INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------------------- ------------------------------------------------------------
2010 2009 2008 2010 2009 2008
---------------- ---------------------- ------------------- ---------------- -------------------------- ----------------
$ (1,491,228) $ (1,057,460) $ (1,837,501) $ 5,808,346 $ 9,682,465 $ 7,210,587
451,106 (3,328,441) 740,184 (5,405,568) (976,772) 24,582,861
26,312,677 66,805,065 (115,833,611) 82,259,608 112,925,652 (312,125,621)
---------------- ---------------------- ------------------- ---------------- -------------------------- ----------------
25,272,555 62,419,164 (116,930,928) 82,662,386 121,631,345 (280,332,173)
---------------- ---------------------- ------------------- ---------------- -------------------------- ----------------
18,632,365 20,361,017 22,493,319 86,739,358 95,757,402 104,846,071
(3,158,688) (3,469,034) (1,853,857) (12,182,904) (18,281,346) (10,320,663)
(13,928,346) (14,222,944) (14,747,697) (41,866,793) (43,260,398) (45,394,792)
(14,208,996) (11,832,605) (14,745,615) (41,307,628) (30,750,386) (44,256,002)
---------------- ---------------------- ------------------- ---------------- -------------------------- ----------------
(12,663,665) (9,163,566) (8,853,850) (8,617,967) 3,465,272 4,874,614
---------------- ---------------------- ------------------- ---------------- -------------------------- ----------------
12,608,890 53,255,598 (125,784,778) 74,044,419 125,096,617 (275,457,559)
187,532,635 134,277,037 260,061,815 597,707,546 472,610,929 748,068,488
---------------- ---------------------- ------------------- ---------------- -------------------------- ----------------
$ 200,141,525 $ 187,532,635 $ 134,277,037 $ 671,751,965 $ 597,707,546 $ 472,610,929
================ ====================== =================== ================ ========================== ================
The accompanying notes are an integral part of these financial statements.
95
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF ARTIO INTERNATIONAL STOCK
INVESTMENT DIVISION
----------------------------------------------------------------
2010 2009 2008
--------------- -------------------------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 312,234 $ (49,120) $ 1,319,521
Net realized gains (losses) (1,030,425) (2,053,375) 6,453,740
Change in unrealized gains (losses) on investments 3,370,719 10,298,349 (39,671,178)
--------------- -------------------------------- ---------------
Net increase (decrease) in net assets resulting
from operations 2,652,528 8,195,854 (31,897,917)
--------------- -------------------------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 5,258,777 5,947,335 6,916,925
Net transfers (including fixed account) (592,663) (1,694,751) (1,195,679)
Policy charges (3,227,781) (3,532,211) (3,925,209)
Transfers for policy benefits and terminations (3,487,847) (2,746,693) (3,608,501)
--------------- -------------------------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions (2,049,514) (2,026,320) (1,812,464)
--------------- -------------------------------- ---------------
Net increase (decrease) in net assets 603,014 6,169,534 (33,710,381)
NET ASSETS:
Beginning of year 45,163,862 38,994,328 72,704,709
--------------- -------------------------------- ---------------
End of year $ 45,766,876 $ 45,163,862 $ 38,994,328
=============== ================================ ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
96
MSF T. ROWE PRICE SMALL CAP GROWTH MSF OPPENHEIMER GLOBAL EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------------------- ---------------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ---------------------- ------------------ --------------- ---------------------- ------------------
$ (769,902) $ (277,201) $ (578,209) $ 315,620 $ 593,945 $ 579,985
562,971 468,105 14,184,194 362,727 (362,452) 1,806,879
22,601,563 19,138,611 (44,529,670) 5,192,068 11,124,292 (23,254,667)
--------------- ---------------------- ------------------ --------------- ---------------------- ------------------
22,394,632 19,329,515 (30,923,685) 5,870,415 11,355,785 (20,867,803)
--------------- ---------------------- ------------------ --------------- ---------------------- ------------------
6,679,778 7,344,778 8,304,333 3,921,178 4,170,777 4,811,674
(365,817) (1,819,482) (1,832,472) 130,181 (1,832,917) (1,307,371)
(4,469,032) (4,555,731) (4,567,009) (2,449,571) (2,484,658) (2,551,030)
(5,044,716) (3,780,276) (4,436,137) (2,648,050) (1,971,254) (2,513,495)
--------------- ---------------------- ------------------ --------------- ---------------------- ------------------
(3,199,787) (2,810,711) (2,531,285) (1,046,262) (2,118,051) (1,560,222)
--------------- ---------------------- ------------------ --------------- ---------------------- ------------------
19,194,845 16,518,804 (33,454,970) 4,824,153 9,237,733 (22,428,025)
68,810,021 52,291,217 85,746,187 38,882,417 29,644,684 52,072,709
--------------- ---------------------- ------------------ --------------- ---------------------- ------------------
$ 88,004,866 $ 68,810,021 $ 52,291,217 $ 43,706,570 $ 38,882,417 $ 29,644,684
=============== ====================== ================== =============== ====================== ==================
The accompanying notes are an integral part of these financial statements.
97
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF MFS VALUE
INVESTMENT DIVISION
------------------------------------------------------
2010 2009 2008
--------------- ---------------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 255,596 $ (360,654) $ 561,336
Net realized gains (losses) (425,864) (877,734) 4,618,363
Change in unrealized gains (losses) on investments 5,358,513 9,493,542 (26,124,726)
--------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations 5,188,245 8,255,154 (20,945,027)
--------------- ---------------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 6,966,530 7,793,992 9,258,644
Net transfers (including fixed account) 37,691 (1,188,905) (2,421,442)
Policy charges (3,542,869) (3,789,583) (4,038,000)
Transfers for policy benefits and terminations (3,962,238) (2,718,079) (2,767,928)
--------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions (500,886) 97,424 31,274
--------------- ---------------------- ---------------
Net increase (decrease) in net assets 4,687,359 8,352,579 (20,913,753)
NET ASSETS:
Beginning of year 49,365,491 41,012,912 61,926,665
--------------- ---------------------- ---------------
End of year $ 54,052,850 $ 49,365,491 $ 41,012,912
=============== ====================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
98
MSF NEUBERGER BERMAN MID CAP VALUE MSF T. ROWE PRICE LARGE CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------------------- ---------------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ---------------------- ------------------ --------------- ---------------------- ------------------
$ (335) $ 373,237 $ (1,022) $ (260,485) $ (70,974) $ (96,719)
12,235 (1,385,415) 465,644 253,453 (485,740) 2,565,785
15,949,723 21,838,137 (39,787,375) 6,370,252 13,392,122 (24,832,884)
--------------- ---------------------- ------------------ --------------- ---------------------- ------------------
15,961,623 20,825,959 (39,322,753) 6,363,220 12,835,408 (22,363,818)
--------------- ---------------------- ------------------ --------------- ---------------------- ------------------
8,746,908 9,917,985 12,028,118 4,102,715 5,247,409 6,714,567
(311,273) (2,538,823) (1,512,789) (1,629,305) (479,252) (722,396)
(4,935,922) (4,785,680) (5,289,330) (2,739,632) (3,146,728) (3,279,014)
(5,431,326) (3,527,386) (3,842,875) (2,842,508) (2,638,815) (2,458,005)
--------------- ---------------------- ------------------ --------------- ---------------------- ------------------
(1,931,613) (933,904) 1,383,124 (3,108,730) (1,017,386) 255,152
--------------- ---------------------- ------------------ --------------- ---------------------- ------------------
14,030,010 19,892,055 (37,939,629) 3,254,490 11,818,022 (22,108,666)
63,957,799 44,065,744 82,005,373 42,520,597 30,702,575 52,811,241
--------------- ---------------------- ------------------ --------------- ---------------------- ------------------
$ 77,987,809 $ 63,957,799 $ 44,065,744 $ 45,775,087 $ 42,520,597 $ 30,702,575
=============== ====================== ================== =============== ====================== ==================
The accompanying notes are an integral part of these financial statements.
99
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF BARCLAYS CAPITAL AGGREGATE BOND INDEX
INVESTMENT DIVISION
---------------- ---------------------- ---------------
2010 2009 2008
---------------- ---------------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 3,134,920 $ 5,177,513 $ 3,745,554
Net realized gains (losses) 613,564 195,723 578,961
Change in unrealized gains (losses) on investments 1,607,603 (1,139,158) 873,489
---------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations 5,356,087 4,234,078 5,198,004
---------------- ---------------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 13,651,933 15,575,764 17,571,072
Net transfers (including fixed account) 4,296,224 5,185,787 (10,724,107)
Policy charges (7,836,195) (8,703,722) (8,741,597)
Transfers for policy benefits and terminations (7,334,933) (6,465,006) (11,706,897)
---------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions 2,777,029 5,592,822 (13,601,529)
---------------- ---------------------- ---------------
Net increase (decrease) in net assets 8,133,116 9,826,901 (8,403,525)
NET ASSETS:
Beginning of year 106,351,639 96,524,738 104,928,263
---------------- ---------------------- ---------------
End of year $ 114,484,755 $ 106,351,639 $ 96,524,738
================ ====================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
100
MSF MORGAN STANLEY EAFE INDEX MSF RUSSELL 2000 INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------------------- ---------------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ---------------------- ------------------ --------------- ------------------------- ---------------
$ 1,043,606 $ 1,709,359 $ 1,230,251 $ 169,705 $ 494,140 $ 223,659
(236,046) (455,196) 2,898,914 (66,857) 70,119 1,982,185
3,674,685 11,844,795 (35,342,222) 11,828,973 9,093,620 (21,357,274)
--------------- ---------------------- ------------------ --------------- ------------------------- ---------------
4,482,245 13,098,958 (31,213,057) 11,931,821 9,657,879 (19,151,430)
--------------- ---------------------- ------------------ --------------- ------------------------- ---------------
7,898,110 9,558,645 11,532,998 6,030,913 6,872,994 7,965,817
2,327,295 (1,404,247) 1,253,714 (1,459,730) (966,184) (1,376,858)
(3,885,302) (4,356,028) (4,798,345) (3,188,654) (3,197,900) (3,405,238)
(4,368,376) (2,974,891) (3,419,820) (3,961,411) (2,569,871) (2,830,521)
--------------- ---------------------- ------------------ --------------- ------------------------- ---------------
1,971,727 823,479 4,568,547 (2,578,882) 139,039 353,200
--------------- ---------------------- ------------------ --------------- ------------------------- ---------------
6,453,972 13,922,437 (26,644,510) 9,352,939 9,796,918 (18,798,230)
58,913,857 44,991,420 71,635,930 47,243,288 37,446,370 56,244,600
--------------- ---------------------- ------------------ --------------- ------------------------- ---------------
$ 65,367,829 $ 58,913,857 $ 44,991,420 $ 56,596,227 $ 47,243,288 $ 37,446,370
=============== ====================== ================== =============== ========================= ===============
The accompanying notes are an integral part of these financial statements.
101
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF JENNISON GROWTH
INVESTMENT DIVISION
-----------------------------------------------------
2010 2009 2008
--------------- ---------------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (33,604) $ (75,210) $ 209,436
Net realized gains (losses) 17,747 (140,559) 1,100,787
Change in unrealized gains (losses) on investments 1,535,759 4,015,386 (7,064,823)
--------------- ---------------------- --------------
Net increase (decrease) in net assets resulting
from operations 1,519,902 3,799,617 (5,754,600)
--------------- ---------------------- --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 1,601,194 1,719,206 1,982,892
Net transfers (including fixed account) 598,866 (143,027) (361,588)
Policy charges (946,786) (963,364) (951,173)
Transfers for policy benefits and terminations (838,122) (752,854) (843,478)
--------------- ---------------------- --------------
Net increase (decrease) in net assets resulting
from policy transactions 415,152 (140,039) (173,347)
--------------- ---------------------- --------------
Net increase (decrease) in net assets 1,935,054 3,659,578 (5,927,947)
NET ASSETS:
Beginning of year 13,473,347 9,813,769 15,741,716
--------------- ---------------------- --------------
End of year $ 15,408,401 $ 13,473,347 $ 9,813,769
=============== ====================== ==============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
102
MSF NEUBERGER BERMAN GENESIS MSF METLIFE MID CAP STOCK INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------------------------- ---------------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ------------------------------- --------------- --------------- ---------------------- ------------------
$ (275,380) $ 150,638 $ (263,415) $ 88,922 $ 436,208 $ 324,526
(2,085,738) (2,703,187) 6,156,715 248,370 308,329 4,777,346
15,927,942 10,045,644 (44,228,185) 12,893,844 13,600,526 (28,232,883)
--------------- ------------------------------- --------------- --------------- ---------------------- ------------------
13,566,824 7,493,095 (38,334,885) 13,231,136 14,345,063 (23,131,011)
--------------- ------------------------------- --------------- --------------- ---------------------- ------------------
9,951,447 11,539,415 13,840,463 7,250,885 8,322,995 9,503,166
(1,640,139) (1,847,368) (4,686,927) 173,240 (1,733,152) 922,808
(5,140,082) (5,408,103) (6,294,459) (3,916,122) (3,929,463) (4,174,112)
(5,453,013) (4,050,199) (5,526,338) (4,634,928) (4,046,727) (6,346,919)
--------------- ------------------------------- --------------- --------------- ---------------------- ------------------
(2,281,787) 233,745 (2,667,261) (1,126,925) (1,386,348) (95,057)
--------------- ------------------------------- --------------- --------------- ---------------------- ------------------
11,285,037 7,726,840 (41,002,146) 12,104,211 12,958,716 (23,226,068)
67,433,059 59,706,219 100,708,365 53,691,851 40,733,135 63,959,203
--------------- ------------------------------- --------------- --------------- ---------------------- --- --------------
$ 78,718,096 $ 67,433,059 $ 59,706,219 $ 65,796,062 $ 53,691,851 $ 40,733,135
=============== =============================== =============== =============== ====================== ==================
The accompanying notes are an integral part of these financial statements.
103
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF LOOMIS SAYLES SMALL CAP GROWTH
INVESTMENT DIVISION
-------------------------------------------------------
2010 2009 2008
-------------- ---------------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (51,755) $ (39,304) $ (48,690)
Net realized gains (losses) (47,680) (219,528) 462,091
Change in unrealized gains (losses) on investments 1,843,398 1,519,136 (3,371,627)
-------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from operations 1,743,963 1,260,304 (2,958,226)
-------------- ---------------------- -----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 919,140 988,520 1,143,026
Net transfers (including fixed account) 81,273 (173,065) (232,983)
Policy charges (421,055) (408,126) (445,177)
Transfers for policy benefits and terminations (486,248) (281,193) (339,761)
-------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from policy transactions 93,110 126,136 125,105
-------------- ---------------------- -----------------
Net increase (decrease) in net assets 1,837,073 1,386,440 (2,833,121)
NET ASSETS:
Beginning of year 5,593,368 4,206,928 7,040,049
-------------- ---------------------- -----------------
End of year $ 7,430,441 $ 5,593,368 $ 4,206,928
============== ====================== =================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
104
MSF BLACKROCK LARGE CAP VALUE MSF DAVIS VENTURE VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------------------- ----------------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ---------------------- -------------------- --------------- -------------------------- ---------------
$ 27,035 $ 73,451 $ (2,759) $ 89,335 $ 312,737 $ 252,624
(263,466) (513,587) (9,263) 191,969 (723,952) 284,552
1,265,453 1,615,283 (4,899,187) 5,562,556 12,907,686 (24,908,606)
--------------- ---------------------- -------------------- --------------- -------------------------- ---------------
1,029,022 1,175,147 (4,911,209) 5,843,860 12,496,471 (24,371,430)
--------------- ---------------------- -------------------- --------------- -------------------------- ---------------
2,157,901 2,432,547 2,920,669 8,027,444 9,217,297 10,613,485
(183,197) 29,524 905,258 (908,212) (601,386) 154,312
(871,019) (969,741) (1,106,269) (3,883,974) (4,013,443) (4,201,518)
(957,459) (514,960) (512,125) (3,941,742) (2,327,459) (2,743,331)
--------------- ---------------------- -------------------- --------------- -------------------------- ---------------
146,226 977,370 2,207,533 (706,484) 2,275,010 3,822,948
--------------- ---------------------- -------------------- --------------- -------------------------- ---------------
1,175,248 2,152,517 (2,703,676) 5,137,376 14,771,480 (20,548,482)
11,723,889 9,571,372 12,275,048 52,773,242 38,001,762 58,550,244
--------------- ---------------------- -------------------- --------------- -------------------------- ---------------
$ 12,899,137 $ 11,723,889 $ 9,571,372 $ 57,910,618 $ 52,773,242 $ 38,001,762
=============== ====================== ==================== =============== ========================== ===============
The accompanying notes are an integral part of these financial statements.
105
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF LOOMIS SAYLES SMALL CAP CORE
INVESTMENT DIVISION
--------------------------------------------------------
2010 2009 2008
--------------- ---------------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (112,605) $ (66,505) $ (116,679)
Net realized gains (losses) (55,224) (439,969) 2,006,144
Change in unrealized gains (losses) on investments 4,065,140 3,809,050 (7,889,493)
--------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from operations 3,897,311 3,302,576 (6,000,028)
--------------- ---------------------- -----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 2,076,395 2,435,828 2,662,737
Net transfers (including fixed account) (491,792) (114,204) 421,215
Policy charges (1,025,327) (1,044,037) (1,093,210)
Transfers for policy benefits and terminations (999,217) (789,008) (727,927)
--------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from policy transactions (439,941) 488,579 1,262,815
--------------- ---------------------- -----------------
Net increase (decrease) in net assets 3,457,370 3,791,155 (4,737,213)
NET ASSETS:
Beginning of year 14,825,414 11,034,259 15,771,472
--------------- ---------------------- -----------------
End of year $ 18,282,784 $ 14,825,414 $ 11,034,259
=============== ====================== =================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
106
MSF BLACKROCK LEGACY LARGE CAP GROWTH MSF BLACKROCK BOND INCOME
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------- ------------------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- ----------------- --------------- ---------------------------- ---------------
$ (38,770) $ (5,579) $ (18,267) $ 2,669,950 $ 5,080,494 $ 3,846,123
75,641 (146,284) (120,478) 24,746 (553,787) (261,951)
1,107,022 1,684,656 (1,924,420) 3,372,816 2,142,811 (7,357,146)
-------------- ---------------------- ----------------- --------------- ---------------------------- ---------------
1,143,893 1,532,793 (2,063,165) 6,067,512 6,669,518 (3,772,974)
-------------- ---------------------- ----------------- --------------- ---------------------------- ---------------
1,127,304 1,097,152 1,197,008 8,520,413 9,587,028 10,790,630
39,075 217,819 1,571,610 406,620 (2,591,044) (3,035,916)
(499,832) (460,694) (466,831) (6,604,181) (7,385,796) (7,121,758)
(438,412) (223,463) (276,284) (5,946,761) (5,845,823) (7,310,990)
-------------- ---------------------- ----------------- --------------- ---------------------------- ---------------
228,135 630,814 2,025,503 (3,623,909) (6,235,635) (6,678,034)
-------------- ---------------------- ----------------- --------------- ---------------------------- ---------------
1,372,028 2,163,607 (37,662) 2,443,603 433,883 (10,451,008)
5,950,495 3,786,888 3,824,550 82,419,233 81,985,350 92,436,358
-------------- ---------------------- ----------------- --------------- ---------------------------- ---------------
$ 7,322,523 $ 5,950,495 $ 3,786,888 $ 84,862,836 $ 82,419,233 $ 81,985,350
============== ====================== ================= =============== ============================ ===============
The accompanying notes are an integral part of these financial statements.
107
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF FI VALUE LEADERS
INVESTMENT DIVISION
-----------------------------------------------------
2010 2009 2008
-------------- ----------------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 42,314 $ 90,114 $ 62,174
Net realized gains (losses) (145,291) (259,906) 411,042
Change in unrealized gains (losses) on investments 885,079 1,128,894 (3,184,937)
-------------- ----------------------- --------------
Net increase (decrease) in net assets resulting
from operations 782,102 959,102 (2,711,721)
-------------- ----------------------- --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 997,133 1,137,076 1,366,282
Net transfers (including fixed account) 41,388 (112,167) (339,700)
Policy charges (451,311) (473,372) (540,376)
Transfers for policy benefits and terminations (361,541) (254,916) (291,811)
-------------- ----------------------- --------------
Net increase (decrease) in net assets resulting
from policy transactions 225,669 296,621 194,395
-------------- ----------------------- --------------
Net increase (decrease) in net assets 1,007,771 1,255,723 (2,517,326)
NET ASSETS:
Beginning of year 5,481,161 4,225,438 6,742,764
-------------- ----------------------- --------------
End of year $ 6,488,932 $ 5,481,161 $ 4,225,438
============== ======================= ==============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
108
MSF MET/ARTISAN MID CAP VALUE MSF WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------------------- ------------------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- -------------------------------- --------------- --------------- ---------------------- ---------------------
$ (47,745) $ 94,579 $ (210,128) $ 1,151,290 $ 1,027,387 $ 570,564
(887,093) (2,074,439) 4,346,340 71,403 382,268 (105,443)
6,661,231 14,134,862 (29,274,257) 1,196,007 3,433,572 (3,452,504)
--------------- -------------------------------- --------------- --------------- ---------------------- ---------------------
5,726,393 12,155,002 (25,138,045) 2,418,700 4,843,227 (2,987,383)
--------------- -------------------------------- --------------- --------------- ---------------------- ---------------------
6,389,633 7,222,155 8,854,520 2,832,832 3,046,053 3,632,344
(144,561) (2,763,216) (1,996,000) 1,156,919 35,565 (873,301)
(3,135,232) (3,172,696) (3,462,919) (1,584,202) (1,611,112) (1,570,638)
(3,307,007) (2,344,946) (2,411,660) (1,617,829) (1,198,113) (1,108,566)
--------------- -------------------------------- --------------- --------------- ---------------------- ---------------------
(197,167) (1,058,703) 983,941 787,720 272,393 79,839
--------------- -------------------------------- --------------- --------------- ---------------------- ---------------------
5,529,226 11,096,299 (24,154,104) 3,206,420 5,115,620 (2,907,544)
41,071,915 29,975,616 54,129,720 20,580,082 15,464,462 18,372,006
--------------- -------------------------------- --------------- --------------- ---------------------- ---------------------
$ 46,601,141 $ 41,071,915 $ 29,975,616 $ 23,786,502 $ 20,580,082 $ 15,464,462
=============== ================================ =============== =============== ====================== =====================
The accompanying notes are an integral part of these financial statements.
109
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT
INVESTMENT DIVISION
------------------------------------------------------
2010 2009 2008
--------------- ---------------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 314,612 $ 583,308 $ 545,979
Net realized gains (losses) 49,043 (89,029) (26,281)
Change in unrealized gains (losses) on investments 435,726 44,105 (712,221)
--------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations 799,381 538,384 (192,523)
--------------- ---------------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 2,331,803 2,652,804 3,041,844
Net transfers (including fixed account) (168,918) 3,368,164 (439,337)
Policy charges (1,312,750) (1,485,448) (1,426,939)
Transfers for policy benefits and terminations (1,375,135) (4,351,515) (1,143,545)
--------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions (525,000) 184,006 32,023
--------------- ---------------------- ---------------
Net increase (decrease) in net assets 274,381 722,389 (160,500)
NET ASSETS:
Beginning of year 16,359,270 15,636,881 15,797,381
--------------- ---------------------- ---------------
End of year $ 16,633,651 $ 16,359,270 $ 15,636,881
=============== ====================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
110
MSF BLACKROCK MONEY MARKET MSF MFS TOTAL RETURN
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------------- -----------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ----------------------------- --------------- -------------- ----------------------- --------------
$ (300,906) $ (11,349) $ 1,496,178 $ 130,483 $ 179,213 $ 147,927
-- -- -- (99,947) (173,243) 299,566
-- -- -- 568,242 937,515 (1,824,737)
--------------- ----------------------------- --------------- -------------- ----------------------- --------------
(300,906) (11,349) 1,496,178 598,778 943,485 (1,377,244)
--------------- ----------------------------- --------------- -------------- ----------------------- --------------
14,816,043 8,264,492 7,147,517 952,924 1,270,198 1,252,582
(13,160,154) (31,859,828) (3,230,345) (93,026) 999,337 209,612
(1,340,285) (1,914,002) (1,791,374) (506,572) (577,409) (544,548)
(5,424,880) (2,515,809) (3,755,019) (377,989) (362,991) (228,375)
--------------- ----------------------------- --------------- -------------- ----------------------- --------------
(5,109,276) (28,025,147) (1,629,221) (24,663) 1,329,135 689,271
--------------- ----------------------------- --------------- -------------- ----------------------- --------------
(5,410,182) (28,036,496) (133,043) 574,115 2,272,620 (687,973)
35,228,518 63,265,014 63,398,057 7,134,157 4,861,537 5,549,510
--------------- ----------------------------- --------------- -------------- ----------------------- --------------
$ 29,818,336 $ 35,228,518 $ 63,265,014 $ 7,708,272 $ 7,134,157 $ 4,861,537
=============== ============================= =============== ============== ======================= ==============
The accompanying notes are an integral part of these financial statements.
111
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF METLIFE CONSERVATIVE ALLOCATION
INVESTMENT DIVISION
-----------------------------------------------------
2010 2009 2008
-------------- ---------------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 80,267 $ 42,263 $ 10,090
Net realized gains (losses) 46,459 5,727 (144,954)
Change in unrealized gains (losses) on investments 119,161 276,504 (182,260)
-------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations 245,887 324,494 (317,124)
-------------- ---------------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 467,696 374,777 277,237
Net transfers (including fixed account) 1,892,409 493,401 917,176
Policy charges (296,178) (222,010) (193,582)
Transfers for policy benefits and terminations (461,555) (132,555) (117,612)
-------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions 1,602,372 513,613 883,219
-------------- ---------------------- ---------------
Net increase (decrease) in net assets 1,848,259 838,107 566,095
NET ASSETS:
Beginning of year 2,188,237 1,350,130 784,035
-------------- ---------------------- ---------------
End of year $ 4,036,496 $ 2,188,237 $ 1,350,130
============== ====================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
112
MSF METLIFE CONSERVATIVE TO MODERATE ALLOCATION MSF METLIFE MODERATE ALLOCATION
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------- --------------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- -------------- --------------- ---------------------- -----------------
$ 146,886 $ 97,885 $ 15,426 $ 612,920 $ 506,612 $ 37,558
32,319 (68,146) (9,779) 17,779 (2,887) (190,034)
421,073 828,280 (847,823) 3,378,733 5,007,760 (6,087,839)
-------------- ---------------------- -------------- --------------- ---------------------- -----------------
600,278 858,019 (842,176) 4,009,432 5,511,485 (6,240,315)
-------------- ---------------------- -------------- --------------- ---------------------- -----------------
1,013,491 1,081,983 1,068,633 5,949,225 6,448,156 6,618,762
1,079,782 990,434 821,833 3,305,318 2,562,902 3,791,639
(573,007) (588,201) (557,733) (2,798,394) (2,812,947) (2,810,307)
(457,386) (298,169) (249,480) (2,041,425) (1,454,530) (1,220,615)
-------------- ---------------------- -------------- --------------- ---------------------- -----------------
1,062,880 1,186,047 1,083,253 4,414,724 4,743,580 6,379,479
-------------- ---------------------- -------------- --------------- ---------------------- -----------------
1,663,158 2,044,066 241,077 8,424,156 10,255,066 139,164
5,262,543 3,218,477 2,977,400 28,790,175 18,535,109 18,395,945
-------------- ---------------------- -------------- --------------- ---------------------- -----------------
$ 6,925,701 $ 5,262,543 $ 3,218,477 $ 37,214,331 $ 28,790,175 $ 18,535,109
============== ====================== ============== =============== ====================== =================
The accompanying notes are an integral part of these financial statements.
113
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MSF METLIFE MODERATE TO AGGRESSIVE ALLOCATION
INVESTMENT DIVISION
--------------- ---------------------- ---------------
2010 2009 2008
--------------- ---------------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 796,924 $ 779,492 $ (16,159)
Net realized gains (losses) (102,509) (133,216) 175,501
Change in unrealized gains (losses) on investments 7,116,457 10,602,923 (15,640,562)
--------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations 7,810,872 11,249,199 (15,481,220)
--------------- ---------------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 13,837,630 16,058,041 18,467,427
Net transfers (including fixed account) 655,595 (778,406) 5,509,124
Policy charges (5,100,587) (5,739,610) (6,415,360)
Transfers for policy benefits and terminations (4,588,662) (2,211,947) (1,143,926)
--------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions 4,803,976 7,328,078 16,417,265
--------------- ---------------------- ---------------
Net increase (decrease) in net assets 12,614,848 18,577,277 936,045
NET ASSETS:
Beginning of year 52,449,221 33,871,944 32,935,899
--------------- ---------------------- ---------------
End of year $ 65,064,069 $ 52,449,221 $ 33,871,944
=============== ====================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
114
MSF METLIFE AGGRESSIVE ALLOCATION JANUS ASPEN JANUS
INVESTMENT DIVISION INVESTMENT DIVISION
--------------- ---------------------------------------- ----------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ---------------------- ----------------- -------------- ---------------------- --------------
$ 35,920 $ 123,185 $ (10,348) $ (153,142) $ 5,686 $ 16,320
(132,924) (317,303) 90,850 52,158 (31,201) 49,473
1,845,829 2,668,257 (4,222,544) 848,330 1,662,317 (3,051,413)
--------------- ---------------------- ----------------- -------------- ---------------------- --------------
1,748,825 2,474,139 (4,142,042) 747,346 1,636,802 (2,985,620)
--------------- ---------------------- ----------------- -------------- ---------------------- --------------
2,868,443 3,280,605 3,819,292 635,005 658,401 663,301
306,772 (255,947) 697,397 (58,773) 8,858 122,598
(1,017,478) (1,143,655) (1,345,001) (122,027) (310,790) (245,583)
(952,529) (607,225) (323,045) -- (1,693) (135,708)
--------------- ---------------------- ----------------- -------------- ---------------------- --------------
1,205,208 1,273,778 2,848,643 454,205 354,776 404,608
--------------- ---------------------- ----------------- -------------- ---------------------- --------------
2,954,033 3,747,917 (1,293,399) 1,201,551 1,991,578 (2,581,012)
10,645,616 6,897,699 8,191,098 6,630,451 4,638,873 7,219,885
--------------- ---------------------- ----------------- -------------- ---------------------- --------------
$ 13,599,649 $ 10,645,616 $ 6,897,699 $ 7,832,002 $ 6,630,451 $ 4,638,873
=============== ====================== ================= ============== ====================== ==============
The accompanying notes are an integral part of these financial statements.
115
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
JANUS ASPEN BALANCED
INVESTMENT DIVISION
---------------------------------------------------
2010 2009 2008
-------------- ----------------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 30,692 $ 12,907 $ 2,996
Net realized gains (losses) 26,581 19,174 3,694
Change in unrealized gains (losses) on investments 90,252 93,262 (21,788)
-------------- ----------------------- ------------
Net increase (decrease) in net assets resulting
from operations 147,525 125,343 (15,098)
-------------- ----------------------- ------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 500,783 116,443 43,848
Net transfers (including fixed account) 426,734 1,020,529 144,876
Policy charges (30,577) (15,717) (4,348)
Transfers for policy benefits and terminations (8,070) (2,543) (2,904)
-------------- ----------------------- ------------
Net increase (decrease) in net assets resulting
from policy transactions 888,870 1,118,712 181,472
-------------- ----------------------- ------------
Net increase (decrease) in net assets 1,036,395 1,244,055 166,374
NET ASSETS:
Beginning of year 1,490,464 246,409 80,035
-------------- ----------------------- ------------
End of year $ 2,526,859 $ 1,490,464 $ 246,409
============== ======================= ============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
116
JANUS ASPEN FORTY JANUS ASPEN OVERSEAS
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- ------------------------------------------------
2010 2009 2008 2010 2009 2008 (a)
-------------- ---------------------- ------------ ------------ ----------------------- -----------
$ (14,015) $ (2,048) $ (2,300) $ 792 $ 58 $ (44)
14,051 (78,622) (93,936) 4,218 26,564 (177)
47,707 310,554 (295,412) 62,994 37,885 (18,504)
-------------- ---------------------- ------------ ------------ ----------------------- -----------
47,743 229,884 (391,648) 68,004 64,507 (18,725)
-------------- ---------------------- ------------ ------------ ----------------------- -----------
190,160 165,769 22,794 61,601 9,283 38
46,953 209,535 641,922 175,192 11,467 45,738
(16,395) (23,392) (14,473) (7,034) (3,624) (400)
(6,634) (106,150) (302,227) (4,005) (25,524) (667)
-------------- ---------------------- ------------ ------------ ----------------------- -----------
214,084 245,762 348,016 225,754 (8,398) 44,709
-------------- ---------------------- ------------ ------------ ----------------------- -----------
261,827 475,646 (43,632) 293,758 56,109 25,984
950,941 475,295 518,927 82,093 25,984 --
-------------- ---------------------- ------------ ------------ ----------------------- -----------
$ 1,212,768 $ 950,941 $ 475,295 $ 375,851 $ 82,093 $ 25,984
============== ====================== ============ ============ ======================= ===========
The accompanying notes are an integral part of these financial statements.
117
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
INVESCO V.I. GLOBAL REAL ESTATE
INVESTMENT DIVISION
----------------------------------------------------------------
2010 2009 2008
-------------- ---------------------------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 32,545 $ (5,813) $ 117,347
Net realized gains (losses) (130,047) (698,156) (61,509)
Change in unrealized gains (losses) on investments 289,353 1,038,943 (1,334,686)
-------------- ---------------------------------- --------------
Net increase (decrease) in net assets resulting
from operations 191,851 334,974 (1,278,848)
-------------- ---------------------------------- --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 3,708 143,426 125,102
Net transfers (including fixed account) (63,773) (367,827) 28,052
Policy charges (14,537) (55,212) (71,189)
Transfers for policy benefits and terminations (26,660) (3,924) 80,702
-------------- ---------------------------------- --------------
Net increase (decrease) in net assets resulting
from policy transactions (101,262) (283,537) 162,667
-------------- ---------------------------------- --------------
Net increase (decrease) in net assets 90,589 51,437 (1,116,181)
NET ASSETS:
Beginning of year 1,506,522 1,455,085 2,571,266
-------------- ---------------------------------- --------------
End of year $ 1,597,111 $ 1,506,522 $ 1,455,085
============== ================================== ==============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
118
INVESCO V.I.
INVESCO V.I. INTERNATIONAL GROWTH INVESCO V.I. GOVERNMENT VAN KAMPEN COMSTOCK
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------ --------------------------------------- ----------------------------------
2010 2009 (b) 2010 2009 2008 2010 (c)
------------ ----------------------- ------------ -------------------------- ----------- ----------------------
$ 3,581 $ 213 $ (101) $ 3,609 $ 1,876 $ --
1,465 34 (188) (289) (1,270) 53
26,537 2,258 4,107 (2,868) (983) 45
------------ ----------------------- ------------ -------------------------- ----------- ----------------------
31,583 2,505 3,818 452 (377) 98
------------ ----------------------- ------------ -------------------------- ----------- ----------------------
43,890 -- 23,483 51,159 30,742 --
184,805 16,392 (1,622) 10,279 444 31,986
(4,422) (495) (5,001) (7,970) (6,986) --
(1,805) (42) -- (411) (15,013) --
------------ ----------------------- ------------ -------------------------- ----------- ----------------------
222,468 15,855 16,860 53,057 9,187 31,986
------------ ----------------------- ------------ -------------------------- ----------- ----------------------
254,051 18,360 20,678 53,509 8,810 32,084
18,360 -- 85,035 31,526 22,716 --
------------ ----------------------- ------------ -------------------------- ----------- ----------------------
$ 272,411 $ 18,360 $ 105,713 $ 85,035 $ 31,526 $ 32,084
============ ======================= ============ ========================== =========== ======================
The accompanying notes are an integral part of these financial statements.
119
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
FTVIPT TEMPLETON FOREIGN SECURITIES
INVESTMENT DIVISION
-------------------------------------------------------
2010 2009 2008
-------------- ---------------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (74,871) $ 211,754 $ 166,480
Net realized gains (losses) (50,450) (153,389) 735,646
Change in unrealized gains (losses) on investments 614,425 2,059,948 (4,855,241)
-------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from operations 489,104 2,118,313 (3,953,115)
-------------- ---------------------- -----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 834,212 807,327 773,781
Net transfers (including fixed account) 220,184 (284,673) 350,298
Policy charges (165,900) (372,860) (323,164)
Transfers for policy benefits and terminations (68,047) (189,134) (355,256)
-------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from policy transactions 820,449 (39,340) 445,659
-------------- ---------------------- -----------------
Net increase (decrease) in net assets 1,309,553 2,078,973 (3,507,456)
NET ASSETS:
Beginning of year 7,935,141 5,856,168 9,363,624
-------------- ---------------------- -----------------
End of year $ 9,244,694 $ 7,935,141 $ 5,856,168
============== ====================== =================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
120
FTVIPT MUTUAL GLOBAL DISCOVERY SECURITIES FTVIPT TEMPLETON GLOBAL BOND SECURITIES
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------ ------------------------------------------
2010 2009 2008 2010 2009 (d)
------------ ---------------------- ------------------ ---------- -------------------------------
$ 7,237 $ 3,112 $ 39,464 $ (29) $ (4)
(4,189) (438,168) 78,245 4,601 5
81,592 609,659 (759,844) (171) 239
------------ ---------------------- ------------------ ---------- -------------------------------
84,640 174,603 (642,135) 4,401 240
------------ ---------------------- ------------------ ---------- -------------------------------
97,464 291,315 407,392 9,303 --
(79,267) (1,354,085) 463,793 (9,428) 3,614
(17,879) (31,930) (44,076) (736) (140)
(141) (32,906) (55,518) (3,516) (10)
------------ ---------------------- ------------------ ---------- -------------------------------
177 (1,127,606) 771,591 (4,377) 3,464
------------ ---------------------- ------------------ ---------- -------------------------------
84,817 (953,003) 129,456 24 3,704
882,515 1,835,518 1,706,062 3,704 --
------------ ---------------------- ------------------ ---------- -------------------------------
$ 967,332 $ 882,515 $ 1,835,518 $ 3,728 $ 3,704
============ ====================== ================== ========== ===============================
The accompanying notes are an integral part of these financial statements.
121
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
ALLIANCEBERNSTEIN GLOBAL THEMATIC GROWTH
INVESTMENT DIVISION
---------------------------------------------------
2010 2009 2008
------------ ---------------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 1,176 $ (370) $ (223)
Net realized gains (losses) 8,379 (2,773) (414)
Change in unrealized gains (losses) on investments 1,480 45,397 (37,457)
------------ ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations 11,035 42,254 (38,094)
------------ ---------------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 1,269 21,200 5,432
Net transfers (including fixed account) (20,468) 29,509 30,492
Policy charges (1,852) (2,499) (913)
Transfers for policy benefits and terminations -- (10,407) (567)
------------ ---------------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions (21,051) 37,803 34,444
------------ ---------------------- ---------------
Net increase (decrease) in net assets (10,016) 80,057 (3,650)
NET ASSETS:
Beginning of year 129,504 49,447 53,097
------------ ---------------------- ---------------
End of year $ 119,488 $ 129,504 $ 49,447
============ ====================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
122
ALLIANCEBERNSTEIN
ALLIANCEBERNSTEIN INTERMEDIATE BOND INTERNATIONAL VALUE FIDELITY VIP CONTRAFUND
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------------- --------------------------------------------------------
2010 2009 (e) 2010 (f) 2010 2009 2008
----------- -------------------------- ---------------------- -------------- -------------------------- --------------
$ 2,038 $ 692 $ 29 $ 9,930 $ 30,836 $ 13,305
2,172 716 1 (217,628) (198,535) (242,658)
(1,393) 2,187 88 648,547 1,136,586 (1,292,698)
----------- -------------------------- ---------------------- -------------- -------------------------- --------------
2,817 3,595 118 440,849 968,887 (1,522,051)
----------- -------------------------- ---------------------- -------------- -------------------------- --------------
3,570 13,019 -- 166,923 431,847 540,486
9,880 23,126 1,252 (1,821,221) 898,388 269,458
(1,055) (590) (13) (86,557) (99,153) (91,935)
(255) (10,842) -- (10,806) (139,114) (170,946)
----------- -------------------------- ---------------------- -------------- -------------------------- --------------
12,140 24,713 1,239 (1,751,661) 1,091,968 547,063
----------- -------------------------- ---------------------- -------------- -------------------------- --------------
14,957 28,308 1,357 (1,310,812) 2,060,855 (974,988)
28,308 -- -- 3,988,185 1,927,330 2,902,318
----------- -------------------------- ---------------------- -------------- -------------------------- --------------
$ 43,265 $ 28,308 $ 1,357 $ 2,677,373 $ 3,988,185 $ 1,927,330
=========== ========================== ====================== ============== ========================== ==============
The accompanying notes are an integral part of these financial statements.
123
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
FIDELITY VIP ASSET MANAGER: GROWTH
INVESTMENT DIVISION
------------------------------------------------------
2010 2009 2008
-------------- ---------------------- ----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 7,999 $ 15,866 $ 17,011
Net realized gains (losses) 37,274 (16,185) 8,935
Change in unrealized gains (losses) on investments 201,872 427,179 (532,156)
-------------- ---------------------- ----------------
Net increase (decrease) in net assets resulting
from operations 247,145 426,860 (506,210)
-------------- ---------------------- ----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 168,558 240,196 167,675
Net transfers (including fixed account) (53,668) 256,106 79,494
Policy charges (58,088) (64,669) (45,464)
Transfers for policy benefits and terminations (120,774) (44,925) (46,018)
-------------- ---------------------- ----------------
Net increase (decrease) in net assets resulting
from policy transactions (63,972) 386,708 155,687
-------------- ---------------------- ----------------
Net increase (decrease) in net assets 183,173 813,568 (350,523)
NET ASSETS:
Beginning of year 1,722,435 908,867 1,259,390
-------------- ---------------------- ----------------
End of year $ 1,905,608 $ 1,722,435 $ 908,867
============== ====================== ================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
124
FIDELITY VIP INVESTMENT GRADE BOND FIDELITY VIP EQUITY-INCOME
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------------- -------------------------------------------------------
2010 2009 2008 2010 2009 2008
------------ ---------------------- --------------- ------------ ----------------------------- ------------
$ 13,892 $ 10,311 $ 1,503 $ 2,489 $ 3,688 $ 16,347
23,465 3,887 13,667 (5,418) (392,905) (281,987)
(13,312) (1,678) (8,842) 31,745 405,695 (292,885)
------------ ---------------------- --------------- ------------ ----------------------------- ------------
24,045 12,520 6,328 28,816 16,478 (558,525)
------------ ---------------------- --------------- ------------ ----------------------------- ------------
829 4,336 5,021 37,251 60,293 140,670
281,430 183,821 (563,563) (103,500) (169,930) 350,624
(4,910) (4,482) (5,850) (5,643) (10,922) (27,027)
-- (5,946) (250,607) -- (227,954) (544,605)
------------ ---------------------- --------------- ------------ ----------------------------- ------------
277,349 177,729 (814,999) (71,892) (348,513) (80,338)
------------ ---------------------- --------------- ------------ ----------------------------- ------------
301,394 190,249 (808,671) (43,076) (332,035) (638,863)
233,950 43,701 852,372 245,766 577,801 1,216,664
------------ ---------------------- --------------- ------------ ----------------------------- ------------
$ 535,344 $ 233,950 $ 43,701 $ 202,690 $ 245,766 $ 577,801
============ ====================== =============== ============ ============================= ============
The accompanying notes are an integral part of these financial statements.
125
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
FIDELITY VIP HIGH INCOME
INVESTMENT DIVISION
------------------------ ---------
2010 2009 (b)
---------- -----------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 310 $ 2,849
Net realized gains (losses) (227) 11
Change in unrealized gains (losses) on investments 801 (647)
---------- -----------------------
Net increase (decrease) in net assets resulting from operations 884 2,213
---------- -----------------------
POLICY TRANSACTIONS:
Premium payments received from policy owners -- 16,782
Net transfers (including fixed account) (36,834) 22,156
Policy charges (252) (236)
Transfers for policy benefits and terminations (148) --
---------- -----------------------
Net increase (decrease) in net assets resulting from policy transactions (37,234) 38,702
---------- -----------------------
Net increase (decrease) in net assets (36,350) 40,915
NET ASSETS:
Beginning of year 40,915 --
---------- -----------------------
End of year $ 4,565 $ 40,915
========== =======================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
126
FIDELITY VIP MID CAP FIDELITY VIP FREEDOM 2010
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------ ----------------------------------------------------
2010 2009 2008 (a) 2010 2009 2008 (a)
------------ ----------------------- ----------- ----------- ---------------------------- -----------
$ (4,707) $ (23) $ 14 $ 545 $ 457 $ 802
3,104 742 (70) 537 (1,656) 545
83,723 13,131 (10,714) 2,036 3,793 (2,956)
------------ ----------------------- ----------- ----------- ---------------------------- -----------
82,120 13,850 (10,770) 3,118 2,594 (1,609)
------------ ----------------------- ----------- ----------- ---------------------------- -----------
95,232 3,949.00 -- 2,793 1,353 339
77,140 192,734 43,089 12,520 (12,215) 26,580
(3,824) (835) (179) -- -- --
(4,506) (25,654) (315) (1,119) (753) (1,741)
------------ ----------------------- ----------- ----------- ---------------------------- -----------
164,042 170,194 42,595 14,194 (11,615) 25,178
------------ ----------------------- ----------- ----------- ---------------------------- -----------
246,162 184,044 31,825 17,312 (9,021) 23,569
215,869 31,825 -- 14,548 23,569 --
------------ ----------------------- ----------- ----------- ---------------------------- -----------
$ 462,031 $ 215,869 $ 31,825 $ 31,860 $ 14,548 $ 23,569
============ ======================= =========== =========== ============================ ===========
The accompanying notes are an integral part of these financial statements.
127
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
FIDELITY VIP FREEDOM 2020
INVESTMENT DIVISION
------------ ---------------------------- -----------
2010 2009 2008 (a)
------------ ---------------------------- -----------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 12,680 $ 17,181 $ 1,217
Net realized gains (losses) 8,278 (918) 1,278
Change in unrealized gains (losses) on investments 70,032 149,817 (11,135)
------------ ---------------------------- -----------
Net increase (decrease) in net assets resulting
from operations 90,990 166,080 (8,640)
------------ ---------------------------- -----------
POLICY TRANSACTIONS:
Premium payments received from policy owners 10,953 2,536 344
Net transfers (including fixed account) 1,108 449,027 46,772
Policy charges (7,298) (5,925) (315)
Transfers for policy benefits and terminations (5,562) (928) (440)
------------ ---------------------------- -----------
Net increase (decrease) in net assets resulting
from policy transactions (799) 444,710 46,361
------------ ---------------------------- -----------
Net increase (decrease) in net assets 90,191 610,790 37,721
NET ASSETS:
Beginning of year 648,511 37,721 --
------------ ---------------------------- -----------
End of year $ 738,702 $ 648,511 $ 37,721
============ ============================ ===========
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
128
FIDELITY VIP FREEDOM 2030 AMERICAN FUNDS GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------------- ---------------------------------------------------------
2010 2009 2008 (a) 2010 2009 2008
------------ ---------------------------- ----------- ---------------- ------------------------ ---------------
$ 1,654 $ 512 $ 652 $ (121,539) $ (160,985) $ 8,765
1,390 367 1,114 (328,082) (1,821,468) 11,917,407
11,839 6,395 (3,051) 19,817,938 31,985,158 (70,192,654)
------------ ---------------------------- ----------- ---------------- ------------------------ ---------------
14,883 7,274 (1,285) 19,368,317 30,002,705 (58,266,482)
------------ ---------------------------- ----------- ---------------- ------------------------ ---------------
3,169 1,286 109 16,677,167 18,769,815 22,132,573
62,506 2,573 22,132 (1,005,842) (2,195,305) 5,909,829
(1,042) (28) -- (8,182,015) (8,384,980) (9,064,293)
(3,063) (754) 431 (8,617,264) (5,510,035) (5,469,352)
------------ ---------------------------- ----------- ---------------- ------------------------ ---------------
61,570 3,077 22,672 (1,127,954) 2,679,495 13,508,757
------------ ---------------------------- ----------- ---------------- ------------------------ ---------------
76,453 10,351 21,387 18,240,363 32,682,200 (44,757,725)
31,738 21,387 -- 109,197,492 76,515,292 121,273,017
------------ ---------------------------- ----------- ---------------- ------------------------ ---------------
$ 108,191 $ 31,738 $ 21,387 $ 127,437,855 $ 109,197,492 $ 76,515,292
============ ============================ =========== ================ ======================== ===============
The accompanying notes are an integral part of these financial statements.
129
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
AMERICAN FUNDS GROWTH-INCOME
INVESTMENT DIVISION
---------------------------------------------------------------
2010 2009 2008
--------------- ------------------------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 453,689 $ 446,910 $ 616,716
Net realized gains (losses) (336,443) (956,152) 4,098,718
Change in unrealized gains (losses) on investments 6,948,053 15,943,649 (34,739,655)
--------------- ------------------------------- ---------------
Net increase (decrease) in net assets resulting
from operations 7,065,299 15,434,407 (30,024,221)
--------------- ------------------------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 10,334,758 11,825,982 13,919,840
Net transfers (including fixed account) (240,405) (1,377,002) (337,648)
Policy charges (5,117,228) (5,387,634) (5,766,937)
Transfers for policy benefits and terminations (4,718,644) (3,569,007) (3,550,594)
--------------- ------------------------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions 258,481 1,492,340 4,264,661
--------------- ------------------------------- ---------------
Net increase (decrease) in net assets 7,323,780 16,926,746 (25,759,560)
NET ASSETS:
Beginning of year 66,537,414 49,610,668 75,370,228
--------------- ------------------------------- ---------------
End of year $ 73,861,194 $ 66,537,414 $ 49,610,668
=============== =============================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
130
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION AMERICAN FUNDS BOND
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------ ----------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- ---------------------- --------------- -------------- ---------------------- --------------
$ 538,047 $ (246,097) $ (466,291) $ 94,433 $ 88,860 $ 168,134
(386,466) (2,366,209) 6,877,405 (8,911) (91,981) (78,359)
11,810,164 23,159,810 (44,244,505) 122,161 381,938 (446,834)
--------------- ---------------------- --------------- -------------- ---------------------- --------------
11,961,745 20,547,504 (37,833,391) 207,683 378,817 (357,059)
--------------- ---------------------- --------------- -------------- ---------------------- --------------
8,529,505 9,330,898 11,097,448 724,857 777,097 813,635
(976,366) (1,354,960) 87,246 320,665 (59,617) 63,592
(4,049,658) (3,968,778) (4,406,590) (330,299) (371,335) (377,262)
(4,114,157) (2,381,130) (2,679,242) (318,517) (107,448) (182,193)
--------------- ---------------------- --------------- -------------- ---------------------- --------------
(610,676) 1,626,030 4,098,862 396,706 238,697 317,772
--------------- ---------------------- --------------- -------------- ---------------------- --------------
11,351,069 22,173,534 (33,734,529) 604,389 617,514 (39,287)
56,054,284 33,880,750 67,615,279 3,760,642 3,143,128 3,182,415
--------------- ---------------------- --------------- -------------- ---------------------- --------------
$ 67,405,353 $ 56,054,284 $ 33,880,750 $ 4,365,031 $ 3,760,642 $ 3,143,128
=============== ====================== =============== ============== ====================== ==============
The accompanying notes are an integral part of these financial statements.
131
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
AMERICAN FUNDS INTERNATIONAL
INVESTMENT DIVISION
--------------------------------------------------------
2010 2009 2008 (a)
------------ ------------------------------- -----------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 3,782 $ 799 $ 1,075
Net realized gains (losses) (608) 1,537 (88)
Change in unrealized gains (losses) on investments 46,566 19,842 (13,968)
------------ ------------------------------- -----------
Net increase (decrease) in net assets resulting
from operations 49,740 22,178 (12,981)
------------ ------------------------------- -----------
POLICY TRANSACTIONS:
Premium payments received from policy owners 196,875 22,210 --
Net transfers (including fixed account) 113,293 416,930 57,452
Policy charges (7,689) (1,457) (246)
Transfers for policy benefits and terminations (7,938) (38,651) (91)
------------ ------------------------------- -----------
Net increase (decrease) in net assets resulting
from policy transactions 294,541 399,032 57,115
------------ ------------------------------- -----------
Net increase (decrease) in net assets 344,281 421,210 44,134
NET ASSETS:
Beginning of year 465,344 44,134 --
------------ ------------------------------- -----------
End of year $ 809,625 $ 465,344 $ 44,134
============ =============================== ===========
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
132
AMERICAN FUNDS U.S. GOVERNMENT/AAA RATED SECURITIES MIST T. ROWE PRICE MID CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------ --------------------------------------------------------
2010 2009 2008 (a) 2010 2009 2008
------------- ---------------------- ----------------- --------------- ---------------------- -----------------
$ 87 $ 1,740 $ 709 $ (150,122) $ (115,483) $ (121,466)
643 1,124 1 131,367 (381,122) 1,499,327
1,804 (1,799) 862 4,580,355 5,596,487 (8,808,387)
------------- ---------------------- ----------------- --------------- ---------------------- -----------------
2,534 1,065 1,572 4,561,600 5,099,882 (7,430,526)
------------- ---------------------- ----------------- --------------- ---------------------- -----------------
7,825 43,406 -- 2,269,288 2,540,664 3,106,587
(50,106) 40,706 33,514 264,028 (25,606) 478,281
(10,089) (8,355) (181) (1,184,611) (1,208,476) (1,260,749)
(2,565) (21,474) (22) (1,448,078) (796,500) (1,115,075)
------------- ---------------------- ----------------- --------------- ---------------------- -----------------
(54,935) 54,283 33,311 (99,373) 510,083 1,209,044
------------- ---------------------- ----------------- --------------- ---------------------- -----------------
(52,401) 55,348 34,883 4,462,227 5,609,964 (6,221,482)
90,231 34,883 -- 16,772,681 11,162,717 17,384,199
------------- ---------------------- ----------------- --------------- ---------------------- -----------------
$ 37,830 $ 90,231 $ 34,883 $ 21,234,908 $ 16,772,681 $ 11,162,717
============= ====================== ================= =============== ====================== =================
The accompanying notes are an integral part of these financial statements.
133
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST MFS RESEARCH INTERNATIONAL
INVESTMENT DIVISION
--------------------------------------------------------
2010 2009 2008
--------------- ---------------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 134,233 $ 280,264 $ 153,553
Net realized gains (losses) (545,005) (1,024,253) 891,055
Change in unrealized gains (losses) on investments 1,743,808 3,897,065 (7,755,181)
--------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from operations 1,333,036 3,153,076 (6,710,573)
--------------- ---------------------- -----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 1,870,809 2,210,375 2,439,035
Net transfers (including fixed account) (766,625) (550,815) 2,279,426
Policy charges (802,613) (902,498) (971,130)
Transfers for policy benefits and terminations (892,543) (545,950) (852,116)
--------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from policy transactions (590,972) 211,112 2,895,215
--------------- ---------------------- -----------------
Net increase (decrease) in net assets 742,064 3,364,188 (3,815,358)
NET ASSETS:
Beginning of year 13,178,754 9,814,566 13,629,924
--------------- ---------------------- -----------------
End of year $ 13,920,818 $ 13,178,754 $ 9,814,566
=============== ====================== =================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
134
MIST PIMCO TOTAL RETURN MIST RCM TECHNOLOGY
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------------- -----------------------------------------------------
2010 2009 2008 2010 2009 2008
--------------- -------------------------- --------------- --------------- ---------------------- --------------
$ 1,273,636 $ 2,452,300 $ 1,044,114 $ (111,175) $ (82,504) $ 1,260,852
474,495 1,576,841 795,767 (54,192) (600,648) 2,114,093
1,426,113 1,911,046 (1,944,451) 3,551,862 5,182,655 (9,308,569)
--------------- -------------------------- --------------- --------------- ---------------------- --------------
3,174,244 5,940,187 (104,570) 3,386,495 4,499,503 (5,933,624)
--------------- -------------------------- --------------- --------------- ---------------------- --------------
5,334,220 5,672,803 6,020,557 1,602,041 1,674,647 1,927,758
3,101,158 2,447,477 960,679 7,146 1,430,181 (675,929)
(3,135,341) (3,246,181) (2,840,352) (958,684) (886,510) (820,489)
(3,692,336) (3,035,028) (2,205,736) (1,144,160) (618,269) (607,497)
--------------- -------------------------- --------------- --------------- ---------------------- --------------
1,607,701 1,839,070 1,935,148 (493,657) 1,600,049 (176,157)
--------------- -------------------------- --------------- --------------- ---------------------- --------------
4,781,945 7,779,258 1,830,578 2,892,838 6,099,552 (6,109,781)
41,820,317 34,041,059 32,210,481 13,221,048 7,121,496 13,231,277
--------------- -------------------------- --------------- --------------- ---------------------- --------------
$ 46,602,262 $ 41,820,317 $ 34,041,059 $ 16,113,886 $ 13,221,048 $ 7,121,496
=============== ========================== =============== =============== ====================== ==============
The accompanying notes are an integral part of these financial statements.
135
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST LORD ABBETT BOND DEBENTURE
INVESTMENT DIVISION
--------------------------------------------------------
2010 2009 2008
--------------- ---------------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 1,402,246 $ 1,391,406 $ 741,410
Net realized gains (losses) 240,525 (126,749) 159,621
Change in unrealized gains (losses) on investments 1,315,427 5,411,601 (5,045,528)
--------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from operations 2,958,198 6,676,258 (4,144,497)
--------------- ---------------------- -----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 2,523,009 2,703,439 3,044,630
Net transfers (including fixed account) (548,415) 2,036,045 (840,812)
Policy charges (1,509,898) (1,703,902) (1,532,129)
Transfers for policy benefits and terminations (1,782,906) (1,226,776) (1,240,893)
--------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from policy transactions (1,318,210) 1,808,806 (569,204)
--------------- ---------------------- -----------------
Net increase (decrease) in net assets 1,639,988 8,485,064 (4,713,701)
NET ASSETS:
Beginning of year 26,033,742 17,548,678 22,262,379
--------------- ---------------------- -----------------
End of year $ 27,673,730 $ 26,033,742 $ 17,548,678
=============== ====================== =================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
136
MIST LAZARD MID CAP MIST INVESCO SMALL CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------- --------------------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- -------------- -------------- -------------------------------- --------------
$ 11,435 $ 19,267 $ 16,248 $ (30,507) $ (22,254) $ (24,205)
(93,933) (283,748) 35,602 (15,371) (84,509) 197,782
1,108,654 1,519,608 (2,239,073) 887,599 919,328 (1,510,157)
-------------- ---------------------- -------------- -------------- -------------------------------- --------------
1,026,156 1,255,127 (2,187,223) 841,721 812,565 (1,336,580)
-------------- ---------------------- -------------- -------------- -------------------------------- --------------
700,574 796,272 992,305 471,774 525,764 623,838
24,219 (267,754) 293,008 164,724 214,625 84,613
(347,953) (346,321) (394,747) (216,436) (223,502) (237,487)
(387,630) (290,206) (365,399) (184,521) (124,073) (180,449)
-------------- ---------------------- -------------- -------------- -------------------------------- --------------
(10,790) (108,009) 525,167 235,541 392,814 290,515
-------------- ---------------------- -------------- -------------- -------------------------------- --------------
1,015,366 1,147,118 (1,662,056) 1,077,262 1,205,379 (1,046,065)
4,569,758 3,422,640 5,084,696 3,392,636 2,187,257 3,233,322
-------------- ---------------------- -------------- -------------- -------------------------------- --------------
$ 5,585,124 $ 4,569,758 $ 3,422,640 $ 4,469,898 $ 3,392,636 $ 2,187,257
============== ====================== ============== ============== ================================ ==============
The accompanying notes are an integral part of these financial statements.
137
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST HARRIS OAKMARK INTERNATIONAL
INVESTMENT DIVISION
---------------------------------------------------------
2010 2009 2008
--------------- ---------------------- ------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 343,311 $ 1,418,689 $ 242,385
Net realized gains (losses) (312,283) (1,294,657) 2,675,287
Change in unrealized gains (losses) on investments 4,235,035 8,897,628 (13,913,907)
--------------- ---------------------- ------------------
Net increase (decrease) in net assets resulting
from operations 4,266,063 9,021,660 (10,996,235)
--------------- ---------------------- ------------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 4,074,673 4,204,850 5,154,234
Net transfers (including fixed account) 669,473 154,538 (2,283,317)
Policy charges (1,796,257) (1,715,379) (1,786,246)
Transfers for policy benefits and terminations (2,128,605) (1,050,988) (944,552)
--------------- ---------------------- ------------------
Net increase (decrease) in net assets resulting
from policy transactions 819,284 1,593,020 140,119
--------------- ---------------------- ------------------
Net increase (decrease) in net assets 5,085,347 10,614,681 (10,856,116)
NET ASSETS:
Beginning of year 26,459,351 15,844,670 26,700,786
--------------- ---------------------- ------------------
End of year $ 31,544,698 $ 26,459,351 $ 15,844,670
=============== ====================== ==================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
138
MIST LEGG MASON CLEARBRIDGE AGGRESSIVE GROWTH MIST LORD ABBETT GROWTH AND INCOME
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------- -------------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- -------------- -------------- ---------------------- -----------------
$ (53,638) $ (40,420) $ (56,576) $ (69,544) $ 86,241 $ 70,536
(57,251) (166,346) (18,149) (79,021) (261,167) 472,182
1,583,027 1,815,976 (3,076,964) 921,874 894,542 (2,888,440)
-------------- ---------------------- -------------- -------------- ---------------------- -----------------
1,472,138 1,609,210 (3,151,689) 773,309 719,616 (2,345,722)
-------------- ---------------------- -------------- -------------- ---------------------- -----------------
897,883 1,020,767 1,253,068 427,886 455,197 479,313
(116,646) (178,569) (80,248) (66,707) (56,090) (17,411)
(490,095) (500,322) (526,115) (66,379) (175,840) (146,058)
(464,163) (374,454) (342,790) (7,059) (15,683) (23,697)
-------------- ---------------------- -------------- -------------- ---------------------- -----------------
(173,021) (32,578) 303,915 287,741 207,584 292,147
-------------- ---------------------- -------------- -------------- ---------------------- -----------------
1,299,117 1,576,632 (2,847,774) 1,061,050 927,200 (2,053,575)
6,533,459 4,956,827 7,804,601 5,163,011 4,235,811 6,289,386
-------------- ---------------------- -------------- -------------- ---------------------- -----------------
$ 7,832,576 $ 6,533,459 $ 4,956,827 $ 6,224,061 $ 5,163,011 $ 4,235,811
============== ====================== ============== ============== ====================== =================
The accompanying notes are an integral part of these financial statements.
139
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST CLARION GLOBAL REAL ESTATE
INVESTMENT DIVISION
------------------------------------------------------------------
2010 2009 2008
--------------- ---------------------------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 1,391,967 $ 376,681 $ 192,412
Net realized gains (losses) (571,095) (1,092,248) 947,022
Change in unrealized gains (losses) on investments 1,969,823 5,493,585 (9,433,208)
--------------- ---------------------------------- ---------------
Net increase (decrease) in net assets resulting
from operations 2,790,695 4,778,018 (8,293,774)
--------------- ---------------------------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 3,115,895 3,655,037 4,540,759
Net transfers (including fixed account) (6,843) (802,883) 360,392
Policy charges (1,331,035) (1,374,865) (1,606,318)
Transfers for policy benefits and terminations (1,474,613) (714,297) (908,507)
--------------- ---------------------------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions 303,404 762,992 2,386,326
--------------- ---------------------------------- ---------------
Net increase (decrease) in net assets 3,094,099 5,541,010 (5,907,448)
NET ASSETS:
Beginning of year 18,066,465 12,525,455 18,432,903
--------------- ---------------------------------- ---------------
End of year $ 21,160,564 $ 18,066,465 $ 12,525,455
=============== ================================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
140
MIST MORGAN STANLEY MID CAP GROWTH MIST LORD ABBETT MID CAP VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------ --------------------------------------------------
2010 2009 2008 2010 2009 2008
---------------- ---------------------- -------------- ------------ ---------------------- --------------
$ (957,593) $ (870) $ 267 $ 199 $ 1,558 $ (115)
336,382 1,780 2,309 3,236 (38,897) (9,425)
31,775,159 75,648 (17,251) 19,769 57,059 (38,556)
---------------- ---------------------- -------------- ------------ ---------------------- --------------
31,153,948 76,558 (14,675) 23,204 19,720 (48,096)
---------------- ---------------------- -------------- ------------ ---------------------- --------------
16,409,129 13,014 31 6,334 75,266 6,403
174,856,480 208,259 36 (18,047) (77,923) 79,533
(9,530,730) (2,906) (162) (3,822) (4,803) (4,269)
(9,440,323) (5,098) (1) -- (590) (8,220)
---------------- ---------------------- -------------- ------------ ---------------------- --------------
172,294,556 213,269 (96) (15,535) (8,050) 73,447
---------------- ---------------------- -------------- ------------ ---------------------- --------------
203,448,504 289,827 (14,771) 7,669 11,670 25,351
306,427 16,600 31,371 103,521 91,851 66,500
---------------- ---------------------- -------------- ------------ ---------------------- --------------
$ 203,754,931 $ 306,427 $ 16,600 $ 111,190 $ 103,521 $ 91,851
================ ====================== ============== ============ ====================== ==============
The accompanying notes are an integral part of these financial statements.
141
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST THIRD AVENUE SMALL CAP VALUE
INVESTMENT DIVISION
-----------------------------------------------------
2010 2009 2008
-------------- ---------------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 1,081 $ 839 $ 888
Net realized gains (losses) 42,370 (14,175) 153
Change in unrealized gains (losses) on investments 198,929 152,916 (119,764)
-------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations 242,380 139,580 (118,723)
-------------- ---------------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 152,265 57,631 48,914
Net transfers (including fixed account) 298,003 486,247 30,930
Policy charges (17,684) (12,877) (11,149)
Transfers for policy benefits and terminations (369) (13,418) (87,205)
-------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions 432,215 517,583 (18,510)
-------------- ---------------------- ---------------
Net increase (decrease) in net assets 674,595 657,163 (137,233)
NET ASSETS:
Beginning of year 900,994 243,831 381,064
-------------- ---------------------- ---------------
End of year $ 1,575,589 $ 900,994 $ 243,831
============== ====================== ===============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
142
MIST OPPENHEIMER CAPITAL APPRECIATION MIST LEGG MASON VALUE EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------------- -------------------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- --------------- -------------- ------------------------------- --------------
$ (2,663) $ (10,277) $ 30,626 $ 57,392 $ 32,368 $ (20,992)
(39,996) (109,001) 189,066 (148,382) (273,743) 40,963
190,578 558,202 (860,586) 390,845 1,354,429 (3,108,496)
-------------- ---------------------- --------------- -------------- ------------------------------- --------------
147,919 438,924 (640,894) 299,855 1,113,054 (3,088,525)
-------------- ---------------------- --------------- -------------- ------------------------------- --------------
304,670 338,372 373,345 741,153 817,337 938,630
(75,809) 205,296 325,069 90,931 (92,993) 186,585
(119,410) (126,102) (131,344) (323,856) (317,442) (346,212)
(109,397) (66,149) (40,306) (302,171) (208,119) (338,027)
-------------- ---------------------- --------------- -------------- ------------------------------- --------------
54 351,417 526,764 206,057 198,783 440,976
-------------- ---------------------- --------------- -------------- ------------------------------- --------------
147,973 790,341 (114,130) 505,912 1,311,837 (2,647,549)
1,631,638 841,297 955,427 4,100,190 2,788,353 5,435,902
-------------- ---------------------- --------------- -------------- ------------------------------- --------------
$ 1,779,611 $ 1,631,638 $ 841,297 $ 4,606,102 $ 4,100,190 $ 2,788,353
============== ====================== =============== ============== =============================== ==============
The accompanying notes are an integral part of these financial statements.
143
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST SSGA GROWTH ETF
INVESTMENT DIVISION
---------------------------------------------------
2010 2009 2008
-------------- ----------------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 16,282 $ 7,006 $ 4,529
Net realized gains (losses) 12,378 (20,730) (21,051)
Change in unrealized gains (losses) on investments 271,601 309,775 (210,490)
-------------- ----------------------- ------------
Net increase (decrease) in net assets resulting
from operations 300,261 296,051 (227,012)
-------------- ----------------------- ------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 426,740 229,022 168,313
Net transfers (including fixed account) 479,704 921,197 (72,658)
Policy charges (144,844) (75,749) (43,964)
Transfers for policy benefits and terminations (171,487) (38,845) (6,807)
-------------- ----------------------- ------------
Net increase (decrease) in net assets resulting
from policy transactions 590,113 1,035,626 44,884
-------------- ----------------------- ------------
Net increase (decrease) in net assets 890,374 1,331,676 (182,128)
NET ASSETS:
Beginning of year 1,789,007 457,331 639,459
-------------- ----------------------- ------------
End of year $ 2,679,381 $ 1,789,007 $ 457,331
============== ======================= ============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
144
MIST SSGA GROWTH AND INCOME ETF MIST PIMCO INFLATION PROTECTED BOND
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------------- ------------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- --------------- -------------- ---------------------- ----------------
$ 12,293 $ 6,273 $ 4,258 $ 146,674 $ 194,864 $ 95,597
16,158 3,801 (36,815) 281,279 (46,474) (94,032)
322,318 204,020 (94,558) 130,473 877,182 (678,454)
-------------- ---------------------- --------------- -------------- ---------------------- ----------------
350,769 214,094 (127,115) 558,426 1,025,572 (676,889)
-------------- ---------------------- --------------- -------------- ---------------------- ----------------
471,109 200,034 163,517 1,208,996 1,284,337 878,509
1,821,735 921,708 17,087 587,680 842,827 4,986,265
(188,226) (67,668) (43,029) (577,592) (561,645) (339,089)
(217,589) (23,508) (19,484) (699,416) (379,813) (237,169)
-------------- ---------------------- --------------- -------------- ---------------------- ----------------
1,887,029 1,030,566 118,091 519,668 1,185,706 5,288,516
-------------- ---------------------- --------------- -------------- ---------------------- ----------------
2,237,798 1,244,660 (9,024) 1,078,094 2,211,278 4,611,627
1,581,109 336,449 345,473 7,734,444 5,523,166 911,539
-------------- ---------------------- --------------- -------------- ---------------------- ----------------
$ 3,818,907 $ 1,581,109 $ 336,449 $ 8,812,538 $ 7,734,444 $ 5,523,166
============== ====================== =============== ============== ====================== ================
The accompanying notes are an integral part of these financial statements.
145
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST BLACKROCK LARGE CAP CORE
INVESTMENT DIVISION
-----------------------------------------------------------
2010 2009 2008
---------------- ---------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 1,615,609 $ 2,132,876 $ (317,267)
Net realized gains (losses) (7,248,214) (10,716,690) 9,729,334
Change in unrealized gains (losses) on investments 38,497,976 54,384,062 (169,653,539)
---------------- ---------------------- -------------------
Net increase (decrease) in net assets resulting
from operations 32,865,371 45,800,248 (160,241,472)
---------------- ---------------------- -------------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 34,809,861 38,206,877 42,625,658
Net transfers (including fixed account) (2,767,361) (5,847,879) (7,982,176)
Policy charges (25,759,862) (26,968,042) (28,104,995)
Transfers for policy benefits and terminations (21,236,249) (18,412,707) (24,473,418)
---------------- ---------------------- -------------------
Net increase (decrease) in net assets resulting
from policy transactions (14,953,611) (13,021,751) (17,934,931)
---------------- ---------------------- -------------------
Net increase (decrease) in net assets 17,911,760 32,778,497 (178,176,403)
NET ASSETS:
Beginning of year 291,577,776 258,799,279 436,975,682
---------------- ---------------------- -------------------
End of year $ 309,489,536 $ 291,577,776 $ 258,799,279
================ ====================== ===================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
146
MIST JANUS FORTY MIST DREMAN SMALL CAP VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------------- -------------------------------------------------------------
2010 2009 2008 2010 2009 2008 (a)
--------------- ---------------------- -------------- ----------- ------------------------------ ------------------
$ 119,973 $ (75,162) $ 249,198 $ (48) $ (427) $ --
(41,591) (540,105) (35,061) 403 58,177 (10)
1,120,682 3,887,171 (4,523,728) 3,392 2,844 6
--------------- ---------------------- -------------- ----------- ------------------------------ ------------------
1,199,064 3,271,904 (4,309,591) 3,747 60,594 (4)
--------------- ---------------------- -------------- ----------- ------------------------------ ------------------
2,241,409 2,031,808 1,649,448 2,082 412 --
410,883 1,027,089 7,003,261 6,849 240,274 114
(908,738) (846,828) (590,128) (2,325) (5,500) --
(788,374) (298,955) (325,545) -- (278,764) 10
--------------- ---------------------- -------------- ----------- ------------------------------ ------------------
955,180 1,913,115 7,737,036 6,606 (43,578) 124
--------------- ---------------------- -------------- ----------- ------------------------------ ------------------
2,154,244 5,185,018 3,427,445 10,353 17,016 120
12,100,411 6,915,393 3,487,948 17,136 120 --
--------------- ---------------------- -------------- ----------- ------------------------------ ------------------
$ 14,254,655 $ 12,100,411 $ 6,915,393 $ 27,489 $ 17,136 $ 120
=============== ====================== ============== =========== ============================== ==================
The accompanying notes are an integral part of these financial statements.
147
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST AMERICAN FUNDS BALANCED ALLOCATION
INVESTMENT DIVISION
--------------------------------------------------
2010 2009 2008 (a)
------------ ---------------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 3,146 $ -- $ 368
Net realized gains (losses) 1,822 (28) (90)
Change in unrealized gains (losses) on investments 26,193 14,667 (1,781)
------------ ---------------------- --------------
Net increase (decrease) in net assets resulting
from operations 31,161 14,639 (1,503)
------------ ---------------------- --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 105,391 30,361 302
Net transfers (including fixed account) 89,836 167,911 12,281
Policy charges (11,710) (9,727) (973)
Transfers for policy benefits and terminations -- (563) --
------------ ---------------------- --------------
Net increase (decrease) in net assets resulting
from policy transactions 183,517 187,982 11,610
------------ ---------------------- --- ----------
Net increase (decrease) in net assets 214,678 202,621 10,107
NET ASSETS:
Beginning of year 212,728 10,107 --
------------ ---------------------- --------------
End of year $ 427,406 $ 212,728 $ 10,107
============ ====================== ==============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
148
MIST AMERICAN FUNDS GROWTH ALLOCATION MIST AMERICAN FUNDS MODERATE ALLOCATION
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- --------------------------------------------------
2010 2009 2008 (a) 2010 2009 2008 (a)
------------ ---------------------- -------------- ------------ ---------------------- --------------
$ 2,434 $ -- $ 644 $ 2,501 $ -- $ 165
5,990 1,298 12 646 370 (29)
79,550 20,909 (48) 16,902 11,101 (130)
------------ ---------------------- -------------- ------------ ---------------------- --------------
87,974 22,207 608 20,049 11,471 6
------------ ---------------------- -------------- ------------ ---------------------- --------------
355,048 87,422 2,162 103,657 36,169 3,061
223,657 36,431 14,336 70,020 57,483 2,966
(93,195) (24,118) (1,358) (37,265) (13,816) (1,421)
(2,170) (2,703) (1) (2,260) (21) (5)
------------ ---------------------- -------------- ------------ ---------------------- --------------
483,340 97,032 15,139 134,152 79,815 4,601
------------ ---------------------- -------------- ------------ ---------------------- --------------
571,314 119,239 15,747 154,201 91,286 4,607
134,986 15,747 -- 95,893 4,607 --
------------ ---------------------- -------------- ------------ ---------------------- --------------
$ 706,300 $ 134,986 $ 15,747 $ 250,094 $ 95,893 $ 4,607
============ ====================== ============== ============ ====================== ==============
The accompanying notes are an integral part of these financial statements.
149
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST MET/FRANKLIN INCOME
INVESTMENT DIVISION
----------------------------------------------------
2010 2009 2008 (a)
------------ --------------------------- -----------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 3,216 $ -- $ 469
Net realized gains (losses) 823 54 (63)
Change in unrealized gains (losses) on investments 10,272 9,507 (2,459)
------------ --------------------------- -----------
Net increase (decrease) in net assets resulting
from operations 14,311 9,561 (2,053)
------------ --------------------------- -----------
POLICY TRANSACTIONS:
Premium payments received from policy owners 28,894 13,515 2,138
Net transfers (including fixed account) 66,675 19,688 20,690
Policy charges (12,613) (6,238) (1,315)
Transfers for policy benefits and terminations (1,480) (482) 1
------------ --------------------------- -----------
Net increase (decrease) in net assets resulting
from policy transactions 81,476 26,483 21,514
------------ --------------------------- -----------
Net increase (decrease) in net assets 95,787 36,044 19,461
NET ASSETS:
Beginning of year 55,505 19,461 --
------------ --------------------------- -----------
End of year $ 151,292 $ 55,505 $ 19,461
============ =========================== ===========
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
150
MIST MET/FRANKLIN MUTUAL SHARES MIST MET/FRANKLIN TEMPLETON FOUNDING STRATEGY
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------------- ------------------------------------------------
2010 2009 2008 (a) 2010 2009 2008 (a)
------------- ---------------------- -------------- ------------ ---------------------- ------------
$ -- $ -- $ 234 $ -- $ -- $ 207
683 (91) (83) 1,546 565 (21)
4,077 4,710 (2,584) 23,230 14,572 (146)
------------- ---------------------- -------------- ------------ ---------------------- ------------
4,760 4,619 (2,433) 24,776 15,137 40
------------- ---------------------- -------------- ------------ ---------------------- ------------
13,024 8,704 4,224 25,504 18,400 940
22,360 6,499 7,195 21,917 159,413 10,164
(6,571) (3,313) (946) (6,972) (7,871) (459)
(811) (293) 24 -- (705) (4)
------------- ---------------------- -------------- ------------ ---------------------- ------------
28,002 11,597 10,497 40,449 169,237 10,641
------------- ---------------------- -------------- ------------ ---------------------- ------------
32,762 16,216 8,064 65,225 184,374 10,681
24,280 8,064 -- 195,055 10,681 --
------------- ---------------------- -------------- ------------ ---------------------- ------------
$ 57,042 $ 24,280 $ 8,064 $ 260,280 $ 195,055 $ 10,681
============= ====================== ============== ============ ====================== ============
The accompanying notes are an integral part of these financial statements.
151
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MIST MET/TEMPLETON GROWTH
INVESTMENT DIVISION
---------------------------------------------------
2010 2009 2008 (a)
----------- ---------------------------- ----------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 305 $ 2 $ 18
Net realized gains (losses) 125 (60) (39)
Change in unrealized gains (losses) on investments 3,904 3,117 (322)
----------- ---------------------------- ----------
Net increase (decrease) in net assets resulting
from operations 4,334 3,059 (343)
----------- ---------------------------- ----------
POLICY TRANSACTIONS:
Premium payments received from policy owners 18,420 14,327 1,057
Net transfers (including fixed account) 12,049 2,568 2,915
Policy charges (5,335) (3,419) (442)
Transfers for policy benefits and terminations (173) (526) 1
----------- ---------------------------- ----------
Net increase (decrease) in net assets resulting
from policy transactions 24,961 12,949 3,531
----------- ---------------------------- ----------
Net increase (decrease) in net assets 29,295 16,009 3,188
NET ASSETS:
Beginning of year 19,197 3,188 --
----------- ---------------------------- ----------
End of year $ 48,492 $ 19,197 $ 3,188
=========== ============================ ==========
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
152
MIST PIONEER FUND AMERICAN CENTURY VP VISTA
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------- -----------------------------------------
2010 2009 (d) 2010 2009 2008
------------ ------------ ----------- ---------------------------- ------------
$ 1,005 $ (580) $ (519) $ (472) $ (285)
6,067 1,986 12,351 (47,927) 204
25,716 48,304 (1,947) 67,433 (65,328)
------------ ------------ ----------- ---------------------------- ------------
32,788 49,710 9,885 19,034 (65,409)
------------ ------------ ----------- ---------------------------- ------------
4,871 9,778 13,202 110,074.00 13,124.00
(26,206) 197,145 (83,499) (53,969) 106,780
(4,729) (2,535) (2,550) (4,572) (3,919)
-- (14,962) (9,338) (3,305) (516)
------------ ------------ ----------- ---------------------------- ------------
(26,064) 189,426 (82,185) 48,228 115,469
------------ ------------ ----------- ---------------------------- ------------
6,724 239,136 (72,300) 67,262 50,060
239,136 -- 146,455 79,193 29,133
------------ ------------ ----------- ---------------------------- ------------
$ 245,860 $ 239,136 $ 74,155 $ 146,455 $ 79,193
============ ============ =========== ============================ ============
The accompanying notes are an integral part of these financial statements.
153
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
DELAWARE VIP SMALL CAP VALUE
INVESTMENT DIVISION
---------------------------------------------------------
2010 2009 2008
------------ ------------------------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (561) $ 2,698 $ 195
Net realized gains (losses) 10,618 (324,068) (88,810)
Change in unrealized gains (losses) on investments 49,508 372,833 (269,207)
------------ ------------------------------- ------------
Net increase (decrease) in net assets resulting
from operations 59,565 51,463 (357,822)
------------ ------------------------------- ------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 10,701 60,157 119,309
Net transfers (including fixed account) 93,641 (501,693) 78,642
Policy charges (6,802) (11,186) (21,619)
Transfers for policy benefits and terminations -- (5,015) (210,049)
------------ ------------------------------- ------------
Net increase (decrease) in net assets resulting
from policy transactions 97,540 (457,737) (33,717)
------------ ------------------------------- ------------
Net increase (decrease) in net assets 157,105 (406,274) (391,539)
NET ASSETS:
Beginning of year 228,031 634,305 1,025,844
------------ ------------------------------- ------------
End of year $ 385,136 $ 228,031 $ 634,305
============ =============================== ============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
154
DREYFUS VIF INTERNATIONAL VALUE GOLDMAN SACHS MID CAP VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------------ --------------------------------------------------------
2010 2009 2008 2010 2009 2008
------------ ---------------------------------- ------------ ------------ ------------------------------ ------------
$ 2,491 $ 9,269 $ 8,347 $ 908 $ 2,747 $ 7,940
(14,086) (185,176) 25,343 (13,608) (540,331) (112,182)
19,382 238,024 (268,322) 84,633 633,578 (486,662)
------------ ---------------------------------- ------------ ------------ ------------------------------ ------------
7,787 62,117 (234,632) 71,933 95,994 (590,904)
------------ ---------------------------------- ------------ ------------ ------------------------------ ------------
955 28,115 2,055 -- -- 205,990
(65,938) (85,562) 3,974 (23,223) (667,539) 102,395
(3,082) (8,707) (12,689) (7,848) (13,708) (27,133)
-- (45,781) (118,241) (2,114) (214) 12,539
------------ ---------------------------------- ------------ ------------ ------------------------------ ------------
(68,065) (111,935) (124,901) (33,185) (681,461) 293,791
------------ ---------------------------------- ------------ ------------ ------------------------------ ------------
(60,278) (49,818) (359,533) 38,748 (585,467) (297,113)
291,742 341,560 701,093 328,341 913,808 1,210,921
------------ ---------------------------------- ------------ ------------ ------------------------------ ------------
$ 231,464 $ 291,742 $ 341,560 $ 367,089 $ 328,341 $ 913,808
============ ================================== ============ ============ ============================== ============
The accompanying notes are an integral part of these financial statements.
155
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
GOLDMAN SACHS STRUCTURED SMALL CAP EQUITY
INVESTMENT DIVISION
----------------------------------------------------
2010 2009 2008
----------- ---------------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 100 $ 551 $ 192
Net realized gains (losses) (7,335) (17,708) (34,983)
Change in unrealized gains (losses) on investments 18,632 28,044 (655)
----------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from operations 11,397 10,887 (35,446)
----------- ---------------------- -----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 4,077 12,573 1,613
Net transfers (including fixed account) (33,283) 4,125 25,177
Policy charges (1,447) (1,545) (2,152)
Transfers for policy benefits and terminations -- (4,928) (74,323)
----------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from policy transactions (30,653) 10,225 (49,685)
----------- ---------------------- -----------------
Net increase (decrease) in net assets (19,256) 21,112 (85,131)
NET ASSETS:
Beginning of year 70,508 49,396 134,527
----------- ---------------------- -----------------
End of year $ 51,252 $ 70,508 $ 49,396
=========== ====================== =================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
156
MFS VIT HIGH INCOME MFS VIT GLOBAL EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------- -------------------------------------------------
2010 2009 2008 2010 2009 2008
------------ ---------------------- ---------- ------------ ------------------------ -----------
$ 8,200 $ 660 $ 1,594 $ 634 $ 1,004 $ 225
680 326 (3,105) 183 (11,994) 4,298
7,331 21,466 (1,097) 19,523 27,307 (30,617)
------------ ---------------------- ---------- ------------ ------------------------ -----------
16,211 22,452 (2,608) 20,340 16,317 (26,094)
------------ ---------------------- ---------- ------------ ------------------------ -----------
-- 3,777 696 28,453 20,456 16,644
(706) 90,405 (8,416) 103,015 (9,035) 8,770
(1,293) (684) (180) (2,360) (1,544) (2,425)
-- (1,164) (8,325) (1,538) (5,469) (3,305)
------------ ---------------------- ---------- ------------ ------------------------ -----------
(1,999) 92,334 (16,225) 127,570 4,408 19,684
------------ ---------------------- ---------- ------------ ------------------------ -----------
14,212 114,786 (18,833) 147,910 20,725 (6,410)
117,897 3,111 21,944 78,884 58,159 64,569
------------ ---------------------- ---------- ------------ ------------------------ -----------
$ 132,109 $ 117,897 $ 3,111 $ 226,794 $ 78,884 $ 58,159
============ ====================== ========== ============ ======================== ===========
The accompanying notes are an integral part of these financial statements.
157
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
MFS VIT NEW DISCOVERY
INVESTMENT DIVISION
------------------------------------------------
2010 2009 2008
------------ ------------------------ ----------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (340) $ (27) $ (11)
Net realized gains (losses) 544 1,560 539
Change in unrealized gains (losses) on investments 28,843 3,314 (1,817)
------------ ------------------------ ----------
Net increase (decrease) in net assets resulting
from operations 29,047 4,847 (1,289)
------------ ------------------------ ----------
POLICY TRANSACTIONS:
Premium payments received from policy owners 8,926 564 --
Net transfers (including fixed account) 94,362 (83) --
Policy charges (2,441) (178) (37)
Transfers for policy benefits and terminations -- (2,063) (1)
------------ ------------------------ ----------
Net increase (decrease) in net assets resulting
from policy transactions 100,847 (1,760) (38)
------------ ------------------------ ----------
Net increase (decrease) in net assets 129,894 3,087 (1,327)
NET ASSETS:
Beginning of year 5,029 1,942 3,269
------------ ------------------------ ----------
End of year $ 134,923 $ 5,029 $ 1,942
============ ======================== ==========
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
158
MFS VIT VALUE WELLS FARGO VT TOTAL RETURN BOND
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------- ----------------------------------------------------
2010 2009 2008 2010 2009 2008
----------- ---------------------- ----------- -------------- ---------------------- --------------
$ 676 $ 546 $ 10,029 $ 23,065 $ 16,897 $ 6,923
(552) (1,224) 18,395 34,459 5,219 (532)
7,585 14,082 (26,364) (12,496) 23,526 (2,943)
----------- ---------------------- ----------- -------------- ---------------------- --------------
7,709 13,404 2,060 45,028 45,642 3,448
----------- ---------------------- ----------- -------------- ---------------------- --------------
-- -- (5,064) 158,432 124,039 41,989
-- -- 55,984 386,034 234,843 50,132
(2,613) (2,736) (3,817) (15,907) (14,024) (4,589)
(2) (1) (31,762) (26,909) (39,437) (20,785)
----------- ---------------------- ----------- -------------- ---------------------- --------------
(2,615) (2,737) 15,341 501,650 305,421 66,747
----------- ---------------------- ----------- -------------- ---------------------- --------------
5,094 10,667 17,401 546,678 351,063 70,195
74,001 63,334 45,933 534,737 183,674 113,479
----------- ---------------------- ----------- -------------- ---------------------- --------------
$ 79,095 $ 74,001 $ 63,334 $ 1,081,415 $ 534,737 $ 183,674
=========== ====================== =========== ============== ====================== ==============
The accompanying notes are an integral part of these financial statements.
159
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
PIONEER VCT EMERGING MARKETS
INVESTMENT DIVISION
---------------------------------------------------------
2010 2009 2008 (a)
------------ ------------------------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (10,583) $ 3,201 $ (141)
Net realized gains (losses) 75,682 8,989 (554)
Change in unrealized gains (losses) on investments 68,690 311,181 (40,541)
------------ ------------------------------- ------------
Net increase (decrease) in net assets resulting
from operations 133,789 323,371 (41,236)
------------ ------------------------------- ------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 102,565 70,484 25
Net transfers (including fixed account) 72,459 258,993 213,338
Policy charges (14,156) (19,519) (1,388)
Transfers for policy benefits and terminations (82,614) (15,065) (16,880)
------------ ------------------------------- ------------
Net increase (decrease) in net assets resulting
from policy transactions 78,254 294,893 195,095
------------ ------------------------------- ------------
Net increase (decrease) in net assets 212,043 618,264 153,859
NET ASSETS:
Beginning of year 772,123 153,859 --
------------ ------------------------------- ------------
End of year $ 984,166 $ 772,123 $ 153,859
============ =============================== ============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
160
PIONEER VCT MID CAP VALUE ROYCE MICRO-CAP ROYCE SMALL-CAP
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------- ---------------------- ---------------------------
2010 2009 (b) 2010 (f) 2010 2009 (g)
----------- ---------------- ---------------------- ------------ --------------
$ 504 $ (34) $ 5,040 $ (860) $ (57)
313 32 197 2,111 16
14,039 2,439 61,964 63,066 2,984
----------- ---------------- ---------------------- ------------ --------------
14,856 2,437 67,201 64,317 2,943
----------- ---------------- ---------------------- ------------ --------------
7,217 -- 53,592 22,886 13,726
59,471 19,671 236,555 257,401 42,530
(3,451) (582) (4,223) (6,872) (728)
(18) (123) (4,416) (3,061) --
----------- ---------------- ---------------------- ------------ --------------
63,219 18,966 281,508 270,354 55,528
----------- ---------------- ---------------------- ------------ --------------
78,075 21,403 348,709 334,671 58,471
21,403 -- -- 58,471 --
----------- ---------------- ---------------------- ------------ --------------
$ 99,478 $ 21,403 $ 348,709 $ 393,142 $ 58,471
=========== ================ ====================== ============ ==============
The accompanying notes are an integral part of these financial statements.
161
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONCLUDED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
UIF EMERGING MARKETS DEBT
INVESTMENT DIVISION
----------------------------
2010 2009 (g)
---------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 287 $ 68
Net realized gains (losses) 87 32
Change in unrealized gains (losses) on investments 318 95
---------- -----------------
Net increase (decrease) in net assets resulting from operations 692 195
---------- -----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 2,057 803
Net transfers (including fixed account) -- 6,688
Policy charges (1,064) (131)
Transfers for policy benefits and terminations (89) (1,808)
---------- -----------------
Net increase (decrease) in net assets resulting from policy transactions 904 5,552
---------- -----------------
Net increase (decrease) in net assets 1,596 5,747
NET ASSETS:
Beginning of year 5,747 --
---------- -----------------
End of year $ 7,343 $ 5,747
========== =================
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
162
UIF EMERGING MARKETS EQUITY PIMCO VIT LOW DURATION
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------ -------------------------
2010 2009 (g) 2010 2009 (d)
------------ ----------------- ------------ ------------
$ 238 $ (17) $ 9,408 $ 9,485
899 480 2,729 33,086
38,992 1,146 23,685 1,601
------------ ----------------- ------------ ------------
40,129 1,609 35,822 44,172
------------ ----------------- ------------ ------------
2,451 803 -- --
157,781 6,231 32 696,037
(6,947) (1,164) (8,069) (3,966)
(1,388) (1,836) -- (1,497)
------------ ----------------- ------------ ------------
151,897 4,034 (8,037) 690,574
------------ ----------------- ------------ ------------
192,026 5,643 27,785 734,746
5,643 -- 734,746 --
------------ ----------------- ------------ ------------
$ 197,669 $ 5,643 $ 762,531 $ 734,746
============ ================= ============ ============
The accompanying notes are an integral part of these financial statements.
163
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
1. ORGANIZATION
Metropolitan Life Separate Account UL (the "Separate Account"), a separate
account of Metropolitan Life Insurance Company (the "Company"), was established
by the Company's Board of Directors on December 13, 1988 to support operations
of the Company with respect to certain variable life insurance policies (the
"Policies"). The Company is a direct wholly-owned subsidiary of MetLife, Inc.,
a Delaware corporation. The Separate Account is registered as a unit investment
trust under the Investment Company Act of 1940, as amended, and exists in
accordance with the regulations of the New York Department of Insurance.
The Separate Account is divided into Investment Divisions, each of which is
treated as an individual accounting entity for financial reporting purposes.
Each Investment Division invests in shares of the corresponding portfolio,
series, or fund (with the same name) of registered investment management
companies (the "Trusts"), which are presented below:
Metropolitan Series Fund, Inc. ("MSF")*
Janus Aspen Series ("Janus Aspen")
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) ("Invesco
V.I.")+
Franklin Templeton Variable Insurance Products Trust("FTVIPT")
AllianceBernstein Variable Products Series Fund, Inc. ("AllianceBernstein")
Fidelity Variable Insurance Products ("Fidelity VIP")
American Funds Insurance Series ("American Funds")
Met Investors Series Trust ("MIST")*
American Century Variable Portfolios, Inc. ("American Century VP")
Delaware VIP Trust ("Delaware VIP")
Dreyfus Variable Investment Fund ("Dreyfus VIF")
Goldman Sachs Variable Insurance Trust ("Goldman Sachs")
MFS Variable Insurance Trust ("MFS VIT")
Wells Fargo Variable Trust ("Wells Fargo VT")
Oppenheimer Variable Account Funds ("Oppenheimer VA")
Pioneer Variable Contracts Trust ("Pioneer VCT")
Putnam Variable Trust ("Putnam VT")
Royce Capital Fund ("Royce")
The Universal Institutional Funds, Inc. ("UIF")
PIMCO Variable Insurance Trust ("PIMCO VIT")
Legg Mason Partners Variable Equity Trust ("LMPVET")
+Formerly named AIM Variable Insurance Funds ("AIM V.I.)
*See Note 5 for discussion of additional information on related party
transactions.
NAME CHANGES:
The following portfolios were affected by a trust name change during the year
ended December 31, 2010:
FORMER NAME NEW NAME
---------------------------------- ---------------------------------------
AIM V.I. Global Real Estate Fund Invesco V.I. Global Real Estate Fund
AIM V.I. International Growth Fund Invesco V.I. International Growth Fund
REORGANIZATION:
During the year ended December 31, 2010, all of the portfolios of the Van
Kampen Life Investment Trust ("Van Kampen LIT") were reorganized into
portfolios of Invesco V.I.. As a result of the reorganization, the following
name change occurred:
FORMER TRUST NEW TRUST
----------------------------------------------------- ----------------------------
Van Kampen LIT Government Portfolio Invesco V.I. Government Fund
164
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
1. ORGANIZATION -- (CONTINUED)
The assets of each of the Investment Divisions of the Separate Account are
registered in the name of the Company. Under applicable insurance law, the
assets and liabilities of the Separate Account are clearly identified and
distinguished from the Company's other assets and liabilities. The portion of
the Separate Account's assets applicable to the Policies is not chargeable with
liabilities arising out of any other business the Company may conduct.
2. LIST OF INVESTMENT DIVISIONS
A. Premium payments, less any applicable charges, applied to the Separate
Account are invested in one or more
Investment Divisions in accordance with the selection made by the policy owner.
The following Investment Divisions had net assets as of December 31, 2010:
MSF BlackRock Diversified Investment Division
MSF BlackRock Aggressive Growth Investment Division
MSF MetLife Stock Index Investment Division
MSF Artio International Stock Investment Division
MSF T. Rowe Price Small Cap Growth Investment Division
MSF Oppenheimer Global Equity Investment Division
MSF MFS Value Investment Division
MSF Neuberger Berman Mid Cap Value Investment Division
MSF T. Rowe Price Large Cap Growth Investment Division
MSF Barclays Capital Aggregate Bond Index Investment Division
MSF Morgan Stanley EAFE Index Investment Division
MSF Russell 2000 Index Investment Division
MSF Jennison Growth Investment Division
MSF Neuberger Berman Genesis Investment Division
MSF MetLife Mid Cap Stock Index Investment Division
MSF Loomis Sayles Small Cap Growth Investment Division
MSF BlackRock Large Cap Value Investment Division
MSF Davis Venture Value Investment Division
MSF Loomis Sayles Small Cap Core Investment Division
MSF BlackRock Legacy Large Cap Growth Investment Division
MSF BlackRock Bond Income Investment Division
MSF FI Value Leaders Investment Division
MSF Met/Artisan Mid Cap Value Investment Division*
MSF Western Asset Management Strategic Bond Opportunities Investment Division
MSF Western Asset Management U.S. Government Investment Division
MSF BlackRock Money Market Investment Division
MSF MFS Total Return Investment Division*
MSF MetLife Conservative Allocation Investment Division*
MSF MetLife Conservative to Moderate Allocation Investment Division*
MSF MetLife Moderate Allocation Investment Division*
MSF MetLife Moderate to Aggressive Allocation Investment Division*
MSF MetLife Aggressive Allocation Investment Division*
Janus Aspen Janus Investment Division
Janus Aspen Balanced Investment Division
Janus Aspen Forty Investment Division
Janus Aspen Overseas Investment Division
Invesco V.I. Global Real Estate Investment Division
Invesco V.I. International Growth Investment Division
Invesco V.I. Government Investment Division
Invesco V.I. Van Kampen Comstock Investment Division**
FTVIPT Templeton Foreign Securities Investment Division
FTVIPT Mutual Global Discovery Securities Investment Division
FTVIPT Templeton Global Bond Securities Investment Division
AllianceBernstein Global Thematic Growth Investment Division
AllianceBernstein Intermediate Bond Investment Division
AllianceBernstein International Value Investment Division**
Fidelity VIP Contrafund Investment Division
Fidelity VIP Asset Manager: Growth Investment Division
Fidelity VIP Investment Grade Bond Investment Division
Fidelity VIP Equity-Income Investment Division
Fidelity VIP High Income Investment Division
165
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
2. LIST OF INVESTMENT DIVISIONS -- (CONTINUED)
Fidelity VIP Mid Cap Investment Division
Fidelity VIP Freedom 2010 Investment Division
Fidelity VIP Freedom 2020 Investment Division
Fidelity VIP Freedom 2030 Investment Division
American Funds Growth Investment Division
American Funds Growth-Income Investment Division
American Funds Global Small Capitalization Investment Division
American Funds Bond Investment Division
American Funds International Investment Division
American Funds U.S. Government/AAA Rated Securities Investment Division
MIST T. Rowe Price Mid Cap Growth Investment Division*
MIST MFS Research International Investment Division*
MIST PIMCO Total Return Investment Division
MIST RCM Technology Investment Division
MIST Lord Abbett Bond Debenture Investment Division
MIST Lazard Mid Cap Investment Division*
MIST Invesco Small Cap Growth Investment Division*
MIST Harris Oakmark International Investment Division
MIST Legg Mason ClearBridge Aggressive Growth Investment Division*
MIST Lord Abbett Growth and Income Investment Division
MIST Clarion Global Real Estate Investment Division*
MIST Morgan Stanley Mid Cap Growth Investment Division
MIST Lord Abbett Mid Cap Value Investment Division
MIST Third Avenue Small Cap Value Investment Division
MIST Oppenheimer Capital Appreciation Investment Division
MIST Legg Mason Value Equity Investment Division
MIST SSgA Growth ETF Investment Division
MIST SSgA Growth and Income ETF Investment Division
MIST PIMCO Inflation Protected Bond Investment Division
MIST BlackRock Large Cap Core Investment Division
MIST Janus Forty Investment Division
MIST Dreman Small Cap Value Investment Division
MIST American Funds Balanced Allocation Investment Division
MIST American Funds Growth Allocation Investment Division
MIST American Funds Moderate Allocation Investment Division
MIST Met/Franklin Income Investment Division
MIST Met/Franklin Mutual Shares Investment Division
MIST Met/Franklin Templeton Founding Strategy Investment Division
MIST Met/Templeton Growth Investment Division
MIST Pioneer Fund Investment Division
American Century VP Vista Investment Division
Delaware VIP Small Cap Value Investment Division
Dreyfus VIF International Value Investment Division
Goldman Sachs Mid Cap Value Investment Division
Goldman Sachs Structured Small Cap Equity Investment Division
MFS VIT High Income Investment Division
MFS VIT Global Equity Investment Division
MFS VIT New Discovery Investment Division
MFS VIT Value Investment Division
Wells Fargo VT Total Return Bond Investment Division
Pioneer VCT Emerging Markets Investment Division
Pioneer VCT Mid Cap Value Investment Division
Royce Micro-Cap Investment Division**
Royce Small-Cap Investment Division
UIF Emerging Markets Debt Investment Division
UIF Emerging Markets Equity Investment Division
PIMCO VIT Low Duration Investment Division
* This Investment Division invests in two or more share classes within the
underlying portfolio, series, or fund of the Trusts that may assess 12b-1
fees.
** This Investment Division began operations during the year ended December 31,
2010.
166
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
2. LIST OF INVESTMENT DIVISIONS -- (CONCLUDED)
B. The following Investment Divisions had no net assets as of December 31,
2010:
Janus Aspen Enterprise Investment Division
Fidelity VIP Freedom 2015 Investment Division
Fidelity VIP Freedom 2025 Investment Division
Fidelity VIP Freedom 2040 Investment Division
Fidelity VIP Freedom 2050 Investment Division
American Funds High-Income Bond Investment
Division
Oppenheimer VA Main Street Small Cap Investment Division
Putnam VT International Value Investment Division
PIMCO VIT Long-Term U.S. Government Investment Division
LMPVET Investment Counsel Variable Social
Awareness Investment Division
3. PORTFOLIO CHANGES
The following Investment Divisions ceased operations during the year ended
December 31, 2010:
MSF FI Mid Cap Opportunities Investment Division
Janus Aspen Perkins Mid Cap Value Investment Division
Wells Fargo VT Money Market Investment Division
The operations of the Investment Divisions were affected by the following
changes that occurred during the year ended December 31, 2010:
NAME CHANGES:
FORMER NAME NEW NAME
-------------------------------------------- -----------------------------------------------
(MSF) BlackRock Strategic Value Portfolio (MSF) Neuberger Berman Genesis Portfolio
(MIST) Met/AIM Small Cap Growth Portfolio (MIST) Invesco Small Cap Growth Portfolio
(MIST) Legg Mason Partners Aggressive Growth (MIST) Legg Mason ClearBridge Aggressive Growth
Portfolio Portfolio
(MIST) Van Kampen Mid Cap Growth Portfolio (MIST) Morgan Stanley Mid Cap Growth Portfolio
Putnam VT International Growth and Income Fund Putnam VT International Value Fund
MERGERS:
FORMER PORTFOLIO NEW PORTFOLIO
-------------------------------------------- -----------------------------------------------
(MSF) FI Mid Cap Opportunities Portfolio (MIST) Morgan Stanley Mid Cap Growth Portfolio
SUBSTITUTIONS:
FORMER PORTFOLIO NEW PORTFOLIO
-------------------------------------------- -----------------------------------------------
Janus Aspen Perkins Mid Cap Value Portfolio (MSF) Met/Artisan Mid Cap Value Portfolio
LIQUIDATIONS:
(Wells Fargo VT) Money Market Fund
4. SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America ("GAAP")
applicable for variable life separate accounts registered as unit investment
trusts.
SECURITY TRANSACTIONS
Security transactions are recorded on a trade date basis. Realized gains and
losses on the sales of investments are computed on the basis of the average
cost of the investment sold. Income from dividends and realized gain
distributions are recorded on the ex-distribution date.
167
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
4. SIGNIFICANT ACCOUNTING POLICIES -- (CONTINUED)
SECURITY VALUATION
The Investment Divisions' investment in shares of the portfolio, series or fund
of the Trusts is valued at fair value based on the closing net asset value
("NAV") or price per share as determined by the Trusts as of the end of the
year. All changes in fair value are recorded as changes in unrealized gains
(losses) on investments in the statements of operations of the applicable
Investment Divisions.
The Separate Account defines fair value as the price that would be received to
sell an asset or paid to transfer a liability (an exit price) in the principal
or most advantageous market for the asset or liability in an orderly
transaction between market participants on the measurement date. The Separate
Account prioritizes the inputs to fair valuation techniques and allows for the
use of unobservable inputs to the extent that observable inputs are not
available. The Separate Account has categorized its assets based on the
priority of the inputs to the respective valuation technique. The fair value
hierarchy gives the highest priority to quoted prices in active markets for
identical assets (Level 1) and the lowest priority to unobservable inputs
(Level 3). An asset's classification within the fair value hierarchy is based
on the lowest level of significant input to its valuation. The input levels are
as follows:
Level 1 Unadjusted quoted prices in active markets for identical assets.
Level 2 Quoted prices in markets that are not active or inputs that are
observable either directly or indirectly.
Level 3 Unobservable inputs that are supported by little or no market activity
and are significant to the fair value of the assets.
Each Investment Division invests in shares of open-end mutual funds which
calculate a daily NAV based on the value of the underlying securities in their
portfolios. As a result, and as required by law, shares of open-end mutual
funds are purchased and redeemed at their quoted daily NAV as reported by the
Trusts at the close of each business day. On that basis, the inputs used to
value all shares held by the Separate Account, which are measured at fair value
on a recurring basis, are classified as Level 2.
FEDERAL INCOME TAXES
The operations of the Separate Account form a part of the total operations of
the Company and are not taxed separately. The Company is taxed as a life
insurance company under the provisions of the Internal Revenue Code ("IRC").
Under the current provisions of the IRC, the Company does not expect to incur
federal income taxes on the earnings of the Separate Account to the extent the
earnings are credited under the Policies. Accordingly, no charge is being made
to the Separate Account for federal income taxes. The Company will periodically
review the status of this policy in the event of changes in the tax law. A
charge may be made in future years for any federal income taxes that would be
attributable to the Policies.
PREMIUM PAYMENTS
The Company deducts a sales charge and a state premium tax charge from premiums
before amounts are allocated to the Separate Account. The Company also deducts
a federal income tax charge before amounts are allocated to the Separate
Account. This federal income tax charge is imposed to recover a portion of the
federal income tax adjustment attributable to policy acquisition expenses. Net
premiums are reported as payments received from policy owners on the statements
of changes in net assets of the applicable Investment Divisions and are
credited as accumulation units.
NET TRANSFERS
Funds transferred by the policy owner into or out of the Investment Divisions
within the Separate Account or into or out of the fixed account (an investment
option in the Company's general account) are recorded on a net basis as net
transfers in the statements of changes in net assets of the applicable
Investment Divisions.
USE OF ESTIMATES
The preparation of financial statements in accordance with GAAP requires
management to make estimates and assumptions that affect amounts reported
herein. Actual results could differ from these estimates.
168
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
4. SIGNIFICANT ACCOUNTING POLICIES -- (CONCLUDED)
ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
Effective January 1, 2010, the Separate Account adopted new guidance that
requires new disclosures about significant transfers in and/or out of Levels 1
and 2 of the fair value hierarchy and activity in Level 3. In addition, this
guidance provides clarification of existing disclosure requirements about the
level of disaggregation and inputs and valuation techniques. The adoption of
this guidance did not have an impact on the Separate Account's financial
statements.
Effective December 31, 2009, the Separate Account adopted new guidance on: (i)
measuring the fair value of investments in certain entities that calculate a
NAV per share; (ii) how investments within its scope would be classified in the
fair value hierarchy; and (iii) enhanced disclosure requirements about the
nature and risks of investments measured at fair value on a recurring or
non-recurring basis. As a result, the Separate Account classified all of its
investments, which utilize a NAV to measure fair value, as Level 2 in the fair
value hierarchy.
Effective April 1, 2009, the Separate Account adopted prospectively new
guidance, which establishes general standards for accounting and disclosures of
events that occur subsequent to the statements of assets and liabilities date
but before financial statements are issued, as revised in February 2010. The
Separate Account has provided the required disclosures, if any, in its
financial statements.
Effective January 1, 2008, the Separate Account adopted new fair value
measurements guidance which defines fair value, establishes a consistent
framework for measuring fair value, establishes a fair value hierarchy based on
the observability of inputs used to measure fair value, and requires enhanced
disclosures about fair value measurements and applied this guidance
prospectively to assets measured at fair value. The adoption of this guidance
did not have an impact on the fair value of items measured at fair value or
each of the Investment Divisions.
5. EXPENSES AND RELATED PARTY TRANSACTIONS
The following annual Separate Account charge paid to the Company, is an
asset-based charge and assessed through a daily reduction in unit values, which
is recorded as an expense in the accompanying statements of operations of the
applicable Investment Divisions:
MORTALITY AND EXPENSE RISK -- The mortality risk assumed by the Company is the
risk that those insured may die sooner than anticipated and therefore, the
Company will pay an aggregate amount of death benefits greater than
anticipated. The expense risk assumed is the risk that expenses incurred in
issuing and administering the Policies will exceed the amounts realized from
the administrative charges assessed against the Policies.
The table below represents the range of effective annual rates for the
respective charge for the year ended December 31, 2010:
Mortality and Expense Risk 0.00% - 0.90%
The above referenced charge may not necessarily correspond to the costs
associated with providing the services or benefits indicated by the designation
of the charge or associated with a particular policy.
For some Policies, a mortality and expense risk charge ranging from 0.30% to
0.90% is assessed through the redemption of units on a monthly basis and
recorded as mortality and expense risk charges in the statements of
operations of the applicable Investment Divisions. Charges outlined in the
section below are paid to the Company and are recorded as policy charges in
the accompanying statements of changes in net assets of the applicable
Investment Divisions. Policy charges that are assessed through the redemption
of units generally include: Cost of Insurance ("COI") charges, administrative
charges, a policy fee, and charges for benefits provided by rider, if any.
The COI charge is the primary charge under the policy for the death benefit
provided by the Company which may vary by policy based on underwriting
criteria. Administrative charges range from $0 to $35 and are assessed
monthly. For some Policies, a surrender
169
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
5. EXPENSES AND RELATED PARTY TRANSACTIONS -- (CONTINUED)
charge is imposed if the policy is partially or fully surrendered within the
specified surrender charge period that ranges from $3.75 to $38.25 for every
$1,000 of the policy face amount. Surrender charges for other Policies are
equal to the lesser of the maximum surrender charge premium or the premiums
actually paid in the first two policy years. For these policies, in the first
policy year, the maximum surrender charge premium is 75% of the smoker
federal guideline premium for the policy, assuming a level death benefit for
the policy and any riders; and in the second and later policy years, it is
100% of the smoker federal guideline premium for the policy, assuming a level
death benefit for the policy and any riders. The surrender charge cannot
exceed 100% of the cumulative premiums paid in the first two policy years. If
the policy is surrendered in the first two policy years, the Company will
deduct 100% of the surrender charge, determined as described above. After the
second policy year, the percentage the Company deducts declines until it
reaches 0% at the end of the 15th policy year. Most policies offer optional
benefits that can be added to the policy by rider. The change for riders that
provide life insurance benefits can range from $0.01 to $37.98 per $1,000 of
coverage and the charge for riders providing benefits in the event of
disability can range from $0.00 to $61.44 per $100 of the benefit provided.
Certain investments in the various portfolios of the MIST and MSF Trusts hold
shares that are managed by MetLife Advisers, LLC, which acts in the capacity
of investment advisor and is an indirect affiliate of the Company. On May 1,
2009, Met Investors Advisory, LLC, an indirect affiliate of the Company and
previous manager of the MIST Trust, merged into MetLife Advisers, LLC.
170
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
6. STATEMENTS OF INVESTMENTS
FOR THE YEAR ENDED
AS OF DECEMBER 31, 2010 DECEMBER 31, 2010
----------------------- ----------------------------
COST OF PROCEEDS
SHARES COST ($) PURCHASES ($) FROM SALES ($)
----------- ----------- ------------- --------------
MSF BlackRock Diversified Investment Division 263,102,792 268,324,200 8,518,236 21,488,733
MSF BlackRock Aggressive Growth Investment Division 200,141,319 170,847,464 2,338,781 16,490,360
MSF MetLife Stock Index Investment Division 671,764,339 679,315,457 47,048,203 49,869,268
MSF Artio International Stock Investment Division 45,766,808 52,665,450 2,105,704 3,842,700
MSF T. Rowe Price Small Cap Growth Investment Division 87,990,296 66,021,182 2,318,086 6,301,609
MSF Oppenheimer Global Equity Investment Division 43,706,628 35,376,212 3,249,970 3,980,518
MSF MFS Value Investment Division 54,046,050 55,792,485 3,693,963 3,946,394
MSF Neuberger Berman Mid Cap Value Investment Division 77,987,777 67,436,921 3,294,311 5,225,572
MSF T. Rowe Price Large Cap Growth Investment Division 45,774,309 36,407,154 1,214,090 4,584,444
MSF Barclays Capital Aggregate Bond Index Investment
Division 114,484,199 110,654,732 22,625,306 16,711,144
MSF Morgan Stanley EAFE Index Investment Division 65,360,237 60,626,260 10,748,813 7,741,327
MSF Russell 2000 Index Investment Division 56,596,282 49,485,716 4,271,448 6,680,460
MSF Jennison Growth Investment Division 15,400,256 13,605,225 1,735,188 1,361,813
MSF Neuberger Berman Genesis Investment Division 78,718,305 99,041,535 2,239,658 4,796,586
MSF MetLife Mid Cap Stock Index Investment Division 65,795,207 56,653,792 4,558,217 5,525,712
MSF Loomis Sayles Small Cap Growth Investment Division 7,430,424 6,878,793 588,154 546,779
MSF BlackRock Large Cap Value Investment Division 12,899,194 14,304,257 1,366,630 1,193,468
MSF Davis Venture Value Investment Division 57,904,627 50,308,964 3,532,125 4,155,257
MSF Loomis Sayles Small Cap Core Investment Division 18,282,803 16,393,945 779,792 1,332,319
MSF BlackRock Legacy Large Cap Growth
Investment Division 7,322,522 5,895,870 955,624 766,286
MSF BlackRock Bond Income Investment Division 84,862,620 83,847,599 6,783,042 7,737,220
MSF FI Value Leaders Investment Division 6,488,970 7,523,326 768,915 500,892
MSF Met/Artisan Mid Cap Value Investment Division 46,594,385 56,288,922 3,730,063 3,981,454
MSF Western Asset Management Strategic Bond Opportunities
Investment Division 23,786,570 22,267,556 3,765,318 1,826,322
MSF Western Asset Management U.S. Government
Investment Division 16,633,677 16,548,496 1,730,763 1,893,816
MSF BlackRock Money Market Investment Division 29,829,020 29,829,068 39,085,331 44,495,834
MSF MFS Total Return Investment Division 7,708,232 7,889,884 2,150,016 2,044,235
MSF MetLife Conservative Allocation Investment Division 4,036,489 3,791,063 2,451,236 768,583
MSF MetLife Conservative to Moderate Allocation
Investment Division 6,925,754 6,362,162 2,108,320 898,546
MSF MetLife Moderate Allocation Investment Division 37,214,363 34,152,850 7,290,820 2,263,141
MSF MetLife Moderate to Aggressive Allocation
Investment Division 65,064,142 61,678,297 9,000,879 3,399,802
MSF MetLife Aggressive Allocation Investment Division 13,599,650 13,167,631 2,449,050 1,207,936
Janus Aspen Janus Investment Division 7,832,027 6,292,276 709,475 408,399
Janus Aspen Balanced Investment Division 2,526,892 2,362,915 1,410,141 490,563
Janus Aspen Forty Investment Division 1,212,504 1,058,636 374,848 175,085
Janus Aspen Overseas Investment Division 375,925 293,550 246,705 20,135
Invesco V.I. Global Real Estate Investment Division 1,597,827 1,900,541 281,030 349,677
Invesco V.I. International Growth Investment Division 272,423 243,626 348,070 122,011
Invesco V.I. Government Investment Division 105,716 105,181 26,124 9,364
Invesco V.I. Van Kampen Comstock Investment Division (a) 32,084 32,039 62,391 30,405
FTVIPT Templeton Foreign Securities Investment Division 9,245,237 9,032,570 1,298,784 553,148
FTVIPT Mutual Global Discovery Securities
Investment Division 967,459 928,349 735,899 728,462
FTVIPT Templeton Global Bond Securities
Investment Division 3,730 3,662 454,211 458,606
AllianceBernstein Global Thematic Growth
Investment Division 119,520 104,051 64,878 84,747
AllianceBernstein Intermediate Bond Investment Division 43,368 43,089 44,107 29,920
AllianceBernstein International Value Investment Division 1,357 1,269 1,284 16
171
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
6. STATEMENTS OF INVESTMENTS -- (CONTINUED)
FOR THE YEAR ENDED
AS OF DECEMBER 31, 2010 DECEMBER 31, 2010
----------------------- ----------------------------
COST OF PROCEEDS
SHARES COST ($) PURCHASES ($) FROM SALES ($)
----------- ----------- ------------- --------------
Fidelity VIP Contrafund Investment Division 2,677,586 2,605,414 618,817 2,359,396
Fidelity VIP Asset Manager: Growth Investment Division 1,905,664 1,601,398 350,953 401,055
Fidelity VIP Investment Grade Bond Investment Division 535,348 551,922 1,216,749 919,692
Fidelity VIP Equity-Income Investment Division 202,703 193,458 83,560 152,960
Fidelity VIP High Income Investment Division 4,567 4,414 340 37,262
Fidelity VIP Mid Cap Investment Division 462,037 375,898 192,649 32,284
Fidelity VIP Freedom 2010 Investment Division 31,863 28,990 16,287 1,077
Fidelity VIP Freedom 2020 Investment Division 738,709 529,995 32,723 15,399
Fidelity VIP Freedom 2030 Investment Division 108,197 93,015 106,748 42,841
American Funds Growth Investment Division 127,437,891 119,191,240 6,233,209 7,482,387
American Funds Growth-Income Investment Division 73,861,244 74,149,207 4,134,198 3,422,111
American Funds Global Small Capitalization
Investment Division 67,405,396 64,151,822 4,775,557 4,848,239
American Funds Bond Investment Division 4,365,047 4,437,363 1,139,102 647,988
American Funds International Investment Division 809,630 757,190 390,086 91,760
American Funds U.S. Government/AAA Rated Securities
Investment Division 37,834 36,967 8,716 63,369
MIST T. Rowe Price Mid Cap Growth Investment Division 21,234,919 17,018,549 1,810,217 2,059,741
MIST MFS Research International Investment Division 13,920,147 15,302,568 1,608,825 2,067,653
MIST PIMCO Total Return Investment Division 46,602,304 43,438,571 7,076,844 3,959,479
MIST RCM Technology Investment Division 16,113,864 13,729,827 2,790,890 3,395,885
MIST Lord Abbett Bond Debenture Investment Division 27,673,394 24,784,731 3,982,725 3,898,865
MIST Lazard Mid Cap Investment Division 5,585,178 5,824,017 595,846 595,212
MIST Invesco Small Cap Growth Investment Division 4,469,864 3,908,949 797,813 592,803
MIST Harris Oakmark International Investment Division 31,544,693 32,145,832 3,407,788 2,246,052
MIST Legg Mason ClearBridge Aggressive Growth
Investment Division 7,832,598 7,150,010 471,892 698,228
MIST Lord Abbett Growth and Income Investment Division 6,220,900 6,986,138 501,908 286,976
MIST Clarion Global Real Estate Investment Division 21,155,496 25,452,280 3,370,800 1,679,748
MIST Morgan Stanley Mid Cap Growth Investment Division 203,751,581 171,918,595 181,166,153 9,832,558
MIST Lord Abbett Mid Cap Value Investment Division 111,198 82,410 7,623 22,956
MIST Third Avenue Small Cap Value Investment Division 1,575,617 1,361,005 877,330 444,016
MIST Oppenheimer Capital Appreciation Investment Division . 1,779,584 1,857,024 282,601 285,229
MIST Legg Mason Value Equity Investment Division 4,606,141 6,034,715 636,784 373,208
MIST SSgA Growth ETF Investment Division 2,679,337 2,306,484 875,750 269,381
MIST SSgA Growth and Income ETF Investment Division 3,818,872 3,386,885 2,220,868 321,444
MIST PIMCO Inflation Protected Bond Investment Division 8,812,603 8,434,527 2,469,861 1,583,040
MIST BlackRock Large Cap Core Investment Division 309,489,156 381,618,294 6,951,054 20,284,505
MIST Janus Forty Investment Division 14,254,609 13,582,405 2,738,764 1,663,638
MIST Dreman Small Cap Value Investment Division 27,494 21,252 10,026 3,466
MIST American Funds Balanced Allocation
Investment Division 427,409 388,329 209,126 22,345
MIST American Funds Growth Allocation Investment Division 706,302 605,891 546,597 60,823
MIST American Funds Moderate Allocation
Investment Division 250,096 222,223 144,861 8,208
MIST Met/Franklin Income Investment Division 151,295 133,975 90,123 4,997
MIST Met/Franklin Mutual Shares Investment Division 57,045 50,842 31,238 2,657
MIST Met/Franklin Templeton Founding Strategy
Investment Division 260,281 222,625 56,837 16,387
MIST Met/Templeton Growth Investment Division 48,494 41,795 26,766 1,499
MIST Pioneer Fund Investment Division 245,287 171,267 6,857 31,995
American Century VP Vista Investment Division 69,257 61,694 60,206 147,832
Delaware VIP Small Cap Value Investment Division 385,135 354,726 261,673 164,693
Dreyfus VIF International Value Investment Division 231,499 264,043 7,776 73,348
Goldman Sachs Mid Cap Value Investment Division 367,130 410,086 2,264 34,533
172
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
6. STATEMENTS OF INVESTMENTS -- (CONCLUDED)
FOR THE YEAR ENDED
AS OF DECEMBER 31, 2010 DECEMBER 31, 2010
----------------------- ----------------------------
COST OF PROCEEDS
SHARES COST ($) PURCHASES ($) FROM SALES ($)
--------- ------------- ------------- --------------
Goldman Sachs Structured Small Cap Equity
Investment Division 51,282 46,862 4,341 34,881
MFS VIT High Income Investment Division 132,571 105,302 10,141 3,882
MFS VIT Global Equity Investment Division 226,835 210,592 201,962 73,751
MFS VIT New Discovery Investment Division 134,934 104,942 105,171 4,660
MFS VIT Value Investment Division 79,100 85,643 969 2,907
Wells Fargo VT Total Return Bond Investment Division 1,081,377 1,071,578 920,218 371,858
Pioneer VCT Emerging Markets Investment Division 983,753 644,423 292,305 225,049
Pioneer VCT Mid Cap Value Investment Division 99,492 83,013 68,084 4,348
Royce Micro-Cap Investment Division (b) 348,711 286,746 291,230 4,681
Royce Small-Cap Investment Division 393,157 327,107 433,307 163,799
UIF Emerging Markets Debt Investment Division 7,345 6,932 3,126 1,934
UIF Emerging Markets Equity Investment Division 197,671 157,533 160,270 8,134
PIMCO VIT Low Duration Investment Division 762,323 737,037 14,655 10,848
(a) For the period May 3, 2010 to December 31, 2010.
(b) Commenced November 10, 2008 and began transactions in 2010.
173
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
7. SCHEDULES OF UNITS
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008:
MSF BLACKROCK DIVERSIFIED MSF BLACKROCK AGGRESSIVE GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- --------------------------------------------------
2010 2009 2008 2010 2009 2008
------------- ---------------------- ------------- ------------- ---------------------- -------------
Units beginning of year 11,480,151 12,136,197 12,715,624 9,655,662 10,226,808 10,673,487
Units issued and
transferred from
other funding options 7,504,390 5,841,981 3,715,948 5,730,219 4,486,979 2,758,625
Units redeemed and
transferred to other
funding options (8,158,313) (6,498,027) (4,295,375) (6,375,375) (5,058,125) (3,205,304)
------------- ---------------------- ------------- ------------- ---------------------- -------------
Units end of year 10,826,228 11,480,151 12,136,197 9,010,506 9,655,662 10,226,808
MSF T. ROWE PRICE SMALL CAP GROWTH MSF OPPENHEIMER GLOBAL EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------- -------------------------------------------------
2010 2009 2008 2010 2009 2008
------------- ---------------------- ------------- ------------- ---------------------- ------------
Units beginning of year 4,272,691 4,498,247 4,692,085 2,111,250 2,250,790 2,347,437
Units issued and
transferred from
other funding options 2,453,679 1,930,920 1,202,595 1,375,412 1,043,645 653,061
Units redeemed and
transferred to other
funding options (2,670,628) (2,156,476) (1,396,433) (1,441,970) (1,183,185) (749,708)
------------- ---------------------- ------------- ------------- ---------------------- ------------
Units end of year 4,055,742 4,272,691 4,498,247 2,044,692 2,111,250 2,250,790
============= ====================== ============= ============= ====================== ============
MSF T. ROWE PRICE LARGE CAP GROWTH MSF BARCLAYS CAPITAL AGGREGATE BOND INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- --------------------------------------------------
2010 2009 2008 2010 2009 2008
------------- ---------------------- ------------- ------------- ---------------------- -------------
Units beginning of year 3,409,767 3,522,287 3,529,093 5,979,612 5,705,639 6,582,200
Units issued and
transferred from
other funding options 2,659,923 2,114,300 1,354,500 5,950,976 4,481,852 3,155,394
Units redeemed and
transferred to other
funding options (2,921,312) (2,226,820) (1,361,306) (5,861,380) (4,207,879) (4,031,955)
------------- ---------------------- ------------- ------------- ---------------------- -------------
Units end of year 3,148,378 3,409,767 3,522,287 6,069,208 5,979,612 5,705,639
============= ====================== ============= ============= ====================== =============
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
174
MSF METLIFE STOCK INDEX MSF ARTIO INTERNATIONAL STOCK
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------- --------------------------------------------------
2010 2009 2008 2010 2009 2008
-------------- ---------------------- -------------- ------------- ---------------------- -------------
36,924,505 36,120,853 34,637,993 3,130,833 3,272,041 3,371,026
25,845,802 21,105,595 13,540,436 2,254,216 1,779,165 1,065,634
(26,105,801) (20,301,943) (12,057,576) (2,399,709) (1,920,373) (1,164,619)
-------------- ---------------------- -------------- ------------- ---------------------- -------------
36,664,506 36,924,505 36,120,853 2,985,340 3,130,833 3,272,041
============== ====================== ============== ============= ====================== =============
MSF MFS VALUE MSF NEUBERGER BERMAN MID CAP VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- --------------------------------------------------
2010 2009 2008 2010 2009 2008
------------- ---------------------- ------------- ------------- ---------------------- -------------
4,056,273 4,061,727 4,115,566 3,292,949 3,355,424 3,292,329
3,454,529 2,678,033 1,700,729 3,046,306 2,427,646 1,542,307
(3,535,458) (2,683,487) (1,754,568) (3,160,150) (2,490,121) (1,479,212)
------------- ---------------------- ------------- ------------- ---------------------- -------------
3,975,344 4,056,273 4,061,727 3,179,105 3,292,949 3,355,424
============= ====================== ============= ============= ====================== =============
MSF MORGAN STANLEY EAFE INDEX MSF RUSSELL 2000 INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- --------------------------------------------------
2010 2009 2008 2010 2009 2008
------------- ---------------------- ------------- ------------- ---------------------- -------------
4,618,467 4,548,869 4,186,312 2,972,133 2,979,566 2,975,863
5,171,804 3,949,991 2,508,640 2,633,026 2,105,103 1,318,726
(5,072,931) (3,880,393) (2,146,083) (2,796,559) (2,112,536) (1,315,023)
------------- ---------------------- ------------- ------------- ---------------------- -------------
4,717,340 4,618,467 4,548,869 2,808,600 2,972,133 2,979,566
============= ====================== ============= ============= ====================== =============
175
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
7. SCHEDULES OF UNITS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008:
MSF JENNISON GROWTH MSF NEUBERGER BERMAN GENESIS
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------ --------------------------------------------------
2010 2009 2008 2010 2009 2008
------------ ---------------------- ------------ ------------- ---------------------- -------------
Units beginning of year 1,148,604 1,170,101 1,203,057 4,279,459 4,285,033 4,450,536
Units issued and
transferred from
other funding options 1,009,921 646,258 394,023 3,571,339 2,810,773 1,678,023
Units redeemed and
transferred to other
funding options (923,867) (667,755) (426,979) (3,738,934) (2,816,347) (1,843,526)
------------ ---------------------- ------------ ------------- ---------------------- -------------
Units end of year 1,234,658 1,148,604 1,170,101 4,111,864 4,279,459 4,285,033
============ ====================== ============ ============= ====================== =============
MSF BLACKROCK LARGE CAP VALUE MSF DAVIS VENTURE VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------ -------------------------------------------------
2010 2009 2008 2010 2009 2008
------------- ---------------------- ----------- ------------- ---------------------- ------------
Units beginning of year 1,018,697 924,995 770,111 1,661,533 1,580,625 1,479,707
Units issued and
transferred from
other funding options 1,430,731 1,160,670 738,266 1,634,097 1,319,611 814,725
Units redeemed and
transferred to other
funding options (1,423,068) (1,066,968) (583,382) (1,662,761) (1,238,703) (713,807)
------------- ---------------------- ----------- ------------- ---------------------- ------------
Units end of year 1,026,360 1,018,697 924,995 1,632,869 1,661,533 1,580,625
============= ====================== =========== ============= ====================== ============
MSF BLACKROCK BOND INCOME MSF FI VALUE LEADERS
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- ----------------------------------------------
2010 2009 2008 2010 2009 2008
------------- ---------------------- ------------- ----------- ---------------------- -----------
Units beginning of year 3,849,026 4,137,787 4,467,585 478,934 451,406 440,904
Units issued and
transferred from
other funding options 2,545,294 1,958,068 1,342,396 576,474 447,507 277,204
Units redeemed and
transferred to other
funding options (2,698,422) (2,246,829) (1,672,194) (561,589) (419,979) (266,702)
------------- ---------------------- ------------- ----------- ---------------------- -----------
Units end of year 3,695,898 3,849,026 4,137,787 493,819 478,934 451,406
============= ====================== ============= =========== ====================== ===========
(a) For the period April 28, 2008 to December 31, 2008.
(b) Commenced on April 28, 2008 and began transactions in 2009.
(c) For the period May 3, 2010 to December 31, 2010.
(d) For the period May 4, 2009 to December 31, 2009.
(e) Commenced on May 1, 2005 and began transactions in 2009.
(f) Commenced on November 10, 2008 and began transactions in 2010.
(g) Commenced on November 10, 2008 and began transactions in 2009.
176
MSF METLIFE MID CAP STOCK INDEX MSF LOOMIS SAYLES SMALL CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- ----------------------------------------------
2010 2009 2008 2010 2009 2008
------------- ---------------------- ------------- ----------- ---------------------- -----------
3,313,158 3,450,115 3,466,871 592,149 579,322 569,953
3,107,108 2,443,661 1,669,439 595,787 456,755 284,532
(3,196,529) (2,580,618) (1,686,195) (590,320) (443,928) (275,163)
------------- ---------------------- ------------- ----------- ---------------------- -----------
3,223,737 3,313,158 3,450,115 597,616 592,149 579,322
============= ====================== ============= =========== ====================== ===========
MSF LOOMIS SAYLES SMALL CAP CORE MSF BLACKROCK LEGACY LARGE CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------- ----------------------------------------------
2010 2009 2008 2010 2009 2008
---------- ---------------------- ---------- ----------- ---------------------- -----------
116,312 116,157 98,083 480,438 413,693 265,094
70,304 70,176 60,203 793,080 696,623 481,035
(71,077) (70,021) (42,129) (778,520) (629,878) (332,436)
---------- ---------------------- ---------- ----------- ---------------------- -----------
115,539 116,312 116,157 494,998 480,438 413,693
========== ====================== ========== =========== ====================== ===========
MSF WESTERN ASSET MANAGEMENT
MSF MET/ARTISAN MID CAP VALUE STRATEGIC BOND OPPORTUNITIES
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------- ------------- ---------------------- ------------
2010 2009 2008 2010 2009 2008
----------- ---------------------- ---------- ------------- ---------------------- ------------
191,339 196,801 191,591 1,115,618 1,106,833 1,117,386
303,121 142,199 89,923 1,232,736 931,022 616,116
(271,624) (147,661) (84,713) (1,202,545) (922,237) (626,669)
----------- ---------------------- ---------- ------------- ---------------------- ------------
222,836 191,339 196,801 1,145,809 1,115,618 1,106,833
=========== ====================== ========== ============= ====================== ============
177
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
7. SCHEDULES OF UNITS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008: