0001193125-12-207787.txt : 20120503
0001193125-12-207787.hdr.sgml : 20120503
20120503134407
ACCESSION NUMBER: 0001193125-12-207787
CONFORMED SUBMISSION TYPE: 497
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20120503
DATE AS OF CHANGE: 20120503
EFFECTIVENESS DATE: 20120503
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: 033-57320
FILM NUMBER: 12808823
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
C000011872
MetFlex Flexible Premium Variable Life
497
1
d342004d497.txt
METFLEX FLEXIBLE PREMIUM VARIABLE LIFE
PROSPECTUS
FOR
METFLEX,
A FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY ("POLICY")
ISSUED BY
METROPOLITAN LIFE INSURANCE COMPANY ("METLIFE")
APRIL 30, 2012
This prospectus provides you with important information about MetLife's MetFlex
Policies. However, this prospectus is not the Policy. The Policy, rather, is a
separate written agreement that MetLife issues to you.
The Policy is designed to provide:
.. Life insurance coverage
.. Flexible premium payments
.. A choice among three death benefit options
.. A method of financing certain deferred compensation plans, post-retirement
benefits and payroll deduction programs
You may allocate premium payments to and transfer cash value among a fixed
interest account ("Fixed Account") and the Metropolitan Life Separate Account
UL investment divisions which invest in the following corresponding fund
("Fund") portfolios:
AIM Variable Insurance Funds (Invesco Variable Insurance Funds)
---------------------------------------------------------------
INVESCO V.I. GLOBAL REAL ESTATE FUND--SERIES I
INVESCO V.I. GOVERNMENT SECURITIES FUND--SERIES II
INVESCO V.I. INTERNATIONAL GROWTH FUND--SERIES I
INVESCO VAN KAMPEN V.I. COMSTOCK FUND--SERIES II
AllianceBernstein Variable Products Series Fund, Inc.
-----------------------------------------------------
GLOBAL THEMATIC GROWTH PORTFOLIO--CLASS B
INTERMEDIATE BOND PORTFOLIO--CLASS B
INTERNATIONAL VALUE PORTFOLIO--CLASS A
American Century Variable Portfolios, Inc.--Class I
---------------------------------------------------
VP VISTA/SM/ FUND
American Funds Insurance Series(R)--Class 2
-------------------------------------------
AMERICAN FUNDS GROWTH FUND
AMERICAN FUNDS HIGH-INCOME BOND FUND
AMERICAN FUNDS INTERNATIONAL FUND
AMERICAN FUNDS U.S. GOVERNMENT/AAA-RATED SECURITIES FUND
Dreyfus Variable Investment Fund--Service Shares
------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO
Fidelity(R) Variable Insurance Products
---------------------------------------
ASSET MANAGER: GROWTH(R) PORTFOLIO--SERVICE CLASS
CONTRAFUND(R) PORTFOLIO--SERVICE CLASS
EQUITY-INCOME PORTFOLIO--SERVICE CLASS
FREEDOM 2010 PORTFOLIO--INITIAL CLASS
FREEDOM 2015 PORTFOLIO--INITIAL CLASS
FREEDOM 2020 PORTFOLIO--INITIAL CLASS
FREEDOM 2025 PORTFOLIO--INITIAL CLASS
FREEDOM 2030 PORTFOLIO--INITIAL CLASS
HIGH INCOME PORTFOLIO--INITIAL CLASS
INVESTMENT GRADE BOND PORTFOLIO--SERVICE CLASS
MID CAP PORTFOLIO--SERVICE CLASS 2
Franklin Templeton Variable Insurance Products Trust
----------------------------------------------------
MUTUAL GLOBAL DISCOVERY SECURITIES FUND--CLASS 2
TEMPLETON FOREIGN SECURITIES FUND--CLASS 1
TEMPLETON GLOBAL BOND SECURITIES FUND--CLASS 1
Goldman Sachs Variable Insurance Trust--Institutional Shares
------------------------------------------------------------
GOLDMAN SACHS STRUCTURED SMALL CAP EQUITY FUND
Janus Aspen Series
------------------
BALANCED PORTFOLIO--SERVICE SHARES
ENTERPRISE PORTFOLIO--SERVICE SHARES
FORTY PORTFOLIO--SERVICE SHARES
JANUS PORTFOLIO--INSTITUTIONAL SHARES
OVERSEAS PORTFOLIO--SERVICE SHARES
Legg Mason Partners Variable Equity Trust
-----------------------------------------
LEGG MASON INVESTMENT COUNSEL VARIABLE SOCIAL AWARENESS PORTFOLIO
Met Investors Series Trust
--------------------------
BLACKROCK LARGE CAP CORE PORTFOLIO--CLASS A MFS(R) RESEARCH INTERNATIONAL PORTFOLIO--CLASS B
CLARION GLOBAL REAL ESTATE PORTFOLIO--CLASS B MORGAN STANLEY MID CAP GROWTH PORTFOLIO--
DREMAN SMALL CAP VALUE PORTFOLIO--CLASS A CLASS A
HARRIS OAKMARK INTERNATIONAL PORTFOLIO--CLASS A PIMCO INFLATION PROTECTED BOND PORTFOLIO--
INVESCO SMALL CAP GROWTH PORTFOLIO--CLASS B CLASS A
LAZARD MID CAP PORTFOLIO--CLASS B PIMCO TOTAL RETURN PORTFOLIO--CLASS A
LEGG MASON CLEARBRIDGE AGGRESSIVE GROWTH PIONEER FUND PORTFOLIO--CLASS A
PORTFOLIO--CLASS A T. ROWE PRICE LARGE CAP VALUE PORTFOLIO--CLASS A
LORD ABBETT BOND DEBENTURE PORTFOLIO--CLASS A THIRD AVENUE SMALL CAP VALUE PORTFOLIO--CLASS B
LORD ABBETT MID CAP VALUE PORTFOLIO--CLASS A
METLIFE AGGRESSIVE STRATEGY PORTFOLIO--CLASS B
2
Metropolitan Series Fund
------------------------
BAILLIE GIFFORD INTERNATIONAL STOCK PORTFOLIO-- METLIFE MID CAP STOCK INDEX PORTFOLIO--CLASS A
CLASS A METLIFE MODERATE ALLOCATION PORTFOLIO--CLASS B
BARCLAYS CAPITAL AGGREGATE BOND INDEX METLIFE MODERATE TO AGGRESSIVE ALLOCATION
PORTFOLIO--CLASS A PORTFOLIO--CLASS B
BLACKROCK AGGRESSIVE GROWTH PORTFOLIO--CLASS A METLIFE STOCK INDEX PORTFOLIO--CLASS A
BLACKROCK BOND INCOME PORTFOLIO--CLASS A MFS(R) TOTAL RETURN PORTFOLIO--CLASS B
BLACKROCK DIVERSIFIED PORTFOLIO--CLASS A MFS(R) VALUE PORTFOLIO--CLASS A
BLACKROCK LEGACY LARGE CAP GROWTH PORTFOLIO-- MSCI EAFE(R) INDEX PORTFOLIO--CLASS A
CLASS A NEUBERGER BERMAN GENESIS PORTFOLIO--CLASS A
BLACKROCK MONEY MARKET PORTFOLIO--CLASS A OPPENHEIMER GLOBAL EQUITY PORTFOLIO--CLASS A
DAVIS VENTURE VALUE PORTFOLIO--CLASS A RUSSELL 2000(R) INDEX PORTFOLIO--CLASS A
FI VALUE LEADERS PORTFOLIO--CLASS A T. ROWE PRICE LARGE CAP GROWTH PORTFOLIO--
JENNISON GROWTH PORTFOLIO--CLASS A CLASS A
LOOMIS SAYLES SMALL CAP CORE PORTFOLIO--CLASS A T. ROWE PRICE SMALL CAP GROWTH PORTFOLIO--
MET/ARTISAN MID CAP VALUE PORTFOLIO--CLASS B CLASS A
METLIFE CONSERVATIVE ALLOCATION
PORTFOLIO--CLASS B
METLIFE CONSERVATIVE TO MODERATE ALLOCATION
PORTFOLIO--CLASS B
MFS(R) Variable Insurance Trust--Service Class
----------------------------------------------
MFS(R) GLOBAL EQUITY SERIES
MFS(R) HIGH INCOME SERIES
MFS(R) NEW DISCOVERY SERIES
Oppenheimer Variable Account Funds--Non-Service Shares
------------------------------------------------------
OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND(R)/VA
PIMCO Variable Insurance Trust--Administrative Class
----------------------------------------------------
PIMCO ALL ASSET PORTFOLIO
PIMCO LONG-TERM U.S. GOVERNMENT PORTFOLIO
PIMCO LOW DURATION PORTFOLIO
Pioneer Variable Contracts Trust
--------------------------------
PIONEER EMERGING MARKETS VCT PORTFOLIO--CLASS II
PIONEER MID CAP VALUE VCT PORTFOLIO--CLASS I
Putnam Variable Trust--Class IB
-------------------------------
PUTNAM VT INTERNATIONAL VALUE FUND
Royce Capital Fund--Investment Class
------------------------------------
ROYCE MICRO-CAP PORTFOLIO
ROYCE SMALL-CAP PORTFOLIO
The Universal Institutional Funds, Inc.--Class I
------------------------------------------------
EMERGING MARKETS DEBT PORTFOLIO
EMERGING MARKETS EQUITY PORTFOLIO
Wells Fargo Variable Trust--Class 2
-----------------------------------
VT TOTAL RETURN BOND FUND
3
Certain Funds and/or Portfolios have been subject to a merger, substitution or
other change. Please see Appendix A--"Additional Information Regarding the
Funds."
Separate prospectuses for the Metropolitan Series Fund, the Met Investors
Series Trust, AIM Variable Insurance Funds (Invesco Variable Insurance Funds),
the AllianceBernstein Variable Products Series Fund, Inc., American Century
Variable Portfolios, Inc., American Funds Insurance Series(R), the Dreyfus
Variable Investment Fund, Fidelity(R) Variable Insurance Products, the Franklin
Templeton Variable Insurance Products Trust, the Goldman Sachs Variable
Insurance Trust, the Janus Aspen Series, the Legg Mason Partners Variable
Equity Trust, the MFS(R) Variable Insurance Trust, the Oppenheimer Variable
Account Funds, the PIMCO Variable Insurance Trust, the Pioneer Variable
Contracts Trust, the Putnam Variable Trust, the Royce Capital Fund, The
Universal Institutional Funds, Inc. and the Wells Fargo Variable Trust (each a
"Fund") are available from us by calling 1-908-253-1400. They describe in
greater detail an investment in the portfolios listed above. Before purchasing
a Policy, read the information in this prospectus and in the prospectus for
each Fund. Keep these prospectuses for future reference. We do not guarantee
how any of the portfolios will perform.
Since the Fixed Account is not registered under the federal securities laws,
this Prospectus contains only limited information about the Fixed Account. The
Policy gives you more information on the operation of the Fixed Account.
Policies issued in your state may provide different features and benefits from,
and impose different costs than, those described in this Prospectus. Your
actual Policy and any endorsements are the controlling documents. You should
read the Policy carefully for any variations in your state.
Neither the Securities and Exchange Commission ("SEC") nor any state securities
authority has approved or disapproved of these securities, nor have they
determined if this Prospectus is accurate or complete. Any representation
otherwise is a criminal offense. This Prospectus does not constitute an
offering in any jurisdiction where such offering may not lawfully be made.
Interests in the Separate Account, the Fixed Account and the Portfolios are not
deposits, obligations of, or insured or guaranteed by, the U.S. Government, any
bank or other depository institution including the Federal Deposit Insurance
Corporation ("FDIC"), the Federal Reserve Board or any other agency or entity
or person. We do not authorize any representations about this offering other
than as contained in this Prospectus or its supplements or in our authorized
supplemental sales material.
4
TABLE OF CONTENTS
PAGE
IN THIS
SUBJECT PROSPECTUS
------- ----------
Contacting Us............................................... 6
Summary of Benefits and Risks............................... 6
Policy Benefits............................................ 6
Risks of a Policy.......................................... 7
Fee Tables.................................................. 9
Transaction Fees........................................... 9
Periodic Charges Other Than Portfolio Operating Expenses... 11
Portfolio Operating Expenses............................... 12
MetLife..................................................... 22
The Fixed Account.......................................... 22
Separate Account UL........................................ 22
The Funds.................................................. 23
The Portfolio Share Classes that We Offer................ 32
Substitution of Portfolios............................... 32
Voting Rights............................................ 32
Issuing a Policy............................................ 32
Payment and Allocation of Premiums.......................... 33
Paying Premiums............................................ 34
Maximum and Minimum Premium Payments....................... 34
Allocating Net Premiums.................................... 35
Insurance Proceeds.......................................... 35
Death Benefit Options...................................... 36
Minimum Death Benefit...................................... 37
Specified Face Amount...................................... 38
Income Plans............................................... 39
Cash Value, Transfers and Withdrawals....................... 39
Cash Value................................................. 39
Cash Value Transfers....................................... 40
Surrender and Withdrawal Privileges........................ 44
Benefit at Final Date...................................... 45
Loan Privileges............................................. 45
Optional Rider Benefits..................................... 46
Term Benefit............................................... 47
Charges and Deductions...................................... 48
Important Information Applicable to all Policy Charges and
Deductions............................................... 48
Charges Deducted From Premiums............................. 49
Charges Included in the Monthly Deduction.................. 50
Charges for Certain Optional Rider Benefits................ 51
Variations in Charges...................................... 51
Portfolio Company Charges.................................. 51
Other Charges.............................................. 52
Policy Termination and Reinstatement........................ 52
Federal Tax Matters......................................... 52
Rights We Reserve........................................... 57
Other Policy Provisions..................................... 58
Sales of Policies........................................... 60
Legal Proceedings........................................... 63
Restrictions on Financial Transactions...................... 63
Independent Registered Public Accounting Firm............... 63
Financial Statements........................................ 64
Appendix A.................................................. 65
5
CONTACTING US
[SIDEBAR:YOU CAN CONTACT US AT OUR DESIGNATED OFFICE.]
You can communicate all of your requests, instructions and notifications to us
by contacting us in writing at our Designated Office. We may require that
certain requests, instructions and notifications be made on forms that we
provide. These include: changing your beneficiary; taking a Policy loan;
changing your death benefit option; taking a partial withdrawal; surrendering
your Policy; making transfer requests (including elections with respect to the
systematic investment strategies); or changing your premium allocations. Our
Designated Office is MetLife--SBR, 501 Route 22, Bridgewater, NJ 08807. We may
name additional or alternate Designated Offices. If we do, we will notify you
in writing.
SUMMARY OF BENEFITS AND RISKS
This summary gives an overview of the Policy and is qualified by the more
detailed information in the balance of this Prospectus and the Policy. MetLife
issues the Policies. We offer the Policies to employers, employer sponsored
plans, or other organizations or individuals associated with such employers,
plans or organizations. We designed the Policies for financing nonqualified
deferred compensation plans, other post-employment benefits, certain employer
sponsored payroll deduction programs or other purposes.
POLICY BENEFITS
PREMIUM PAYMENT FLEXIBILITY. The Policy allows flexibility in making premium
payments. The Policy will remain in force as long as the cash surrender value
is large enough to cover one monthly deduction, regardless of whether or not
premium payments have been made.
CASH VALUE. Your cash value in the Policy reflects your premium payments, the
charges we deduct, interest we credit if you have cash value in our fixed
interest account, any investment experience you have in our Separate Account,
as well as your loan and withdrawal activity.
TRANSFERS AND SYSTEMATIC INVESTMENT STRATEGIES. You may transfer cash value
among the funding options, subject to certain limits, including restrictions on
"market timing" transactions (see "Cash Value, Transfers and Withdrawals"). You
may also choose among four systematic investment strategies: the Equity
Generator/SM/, the Equalizer/SM/, the Allocator/SM/, and the Rebalancer/SM/.
SPECIFIED FACE AMOUNT OF INSURANCE. Within certain limits, you may choose your
specified face amount of insurance when the Policy is issued. You may also
change the amount at any time after the first Policy year, subject to our rules
and procedures.
DEATH BENEFIT OPTIONS. Generally, you have a choice among three options. These
range from an amount equal to the specified face amount to an amount equal to
the specified face amount plus the policy cash value at the date of death.
INCOME PLANS. The insurance proceeds can be paid under a variety of income
plans that are available under the Policy.
6
SURRENDERS, PARTIAL WITHDRAWALS AND LOANS. Within certain limits, you may take
partial withdrawals and loans from the Policy. You may also surrender your
Policy for its cash surrender value.
TAX ADVANTAGES. In general, you will not pay income taxes on any cash value
that accrues in your Policy prior to a distribution. If you meet certain
requirements, favorable distribution rules will apply. The death benefit may be
subject to Federal and state estate taxes, but your beneficiary will generally
not be subject to income tax on the death benefit. In the case of
employer-owned life insurance as defined in Section 101(j) of the Internal
Revenue Code, 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. As with any taxation matter, you should consult with and rely on the
advice of your own tax advisor.
TERM RIDER. This rider provides coverage on the insured to age 95. The amount
of sales charge you pay will be less if coverage is obtained through this rider
rather than as part of the Policy. The current charges for the cost of
insurance are lower for coverage under the term rider than under the base
Policy. For details, see "Optional Rider Benefits--Term Benefit."
OTHER OPTIONAL RIDER BENEFITS. You may be eligible for certain other benefits
provided by rider, subject to certain underwriting requirements and the payment
of additional premiums. We will deduct any charges for the rider(s) (other than
the charge for the interim term insurance rider) as part of the monthly
deduction.
RISKS OF A POLICY
This Prospectus discusses the risks associated with purchasing the Policy.
Prospectuses for the Funds discuss the risks associated with investment in the
Fund described therein. Each of the Separate Account UL investment divisions
that is available to you under the Policy invests solely in a corresponding
"Portfolio" of a Fund.
INVESTMENT RISK. MetLife does not guarantee the investment performance of the
variable investment options and you should consider your risk tolerance before
selecting any of these options. 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, these deductions may have an even greater impact on
your Policy's cash value. It is possible to lose your full investment and your
Policy could terminate without value, unless you pay additional premiums. 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 2.5% (4% for Policies issued prior to February 24, 2012).
SURRENDER AND WITHDRAWAL RISKS. The Policies are designed to provide lifetime
insurance protection. They are not offered primarily as an investment, and are
not suitable as a short-term savings vehicle. 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.
7
RISK OF POLICY TERMINATION. Your Policy may terminate without value 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 will terminate without value unless you
make a premium payment sufficient to cover two monthly deductions within the
61-day grace period. If your Policy does terminate, your insurance coverage
will terminate (although you will be given an opportunity to reinstate your
coverage if you satisfy certain requirements). Lapse of a policy on which there
is an outstanding loan may have adverse tax consequences.
POLICY CHARGE AND EXPENSE INCREASE. We have the right to increase certain
Policy charges.
TAX LAW RISKS. We anticipate that the Policy should generally be deemed a life
insurance contract under Federal tax law. The insurance proceeds payable upon
death of the insured under the Policy 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. The guidance, however, with respect to Policies issued on a substandard
risk basis, is not entirely clear. In general, you should not be deemed to be
in receipt of any portion of your Policy's cash value until there is an actual
distribution from the Policy. Although the beneficiary generally should not
have to pay Federal income tax on the insurance proceeds, other taxes, such as
estate taxes, may apply. 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.
If you pay more than a certain amount of premiums, you may cause your Policy to
become a "modified endowment contract." If it does, you will pay income taxes
on loans and other amounts we pay out to you (except for payment of insurance
proceeds), to the extent of any gains in your Policy (which is generally the
excess of cash value over the premiums paid). In this case, an additional 10%
tax penalty may also apply.
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. Finally, neither distributions nor loans from a Policy that is
not a modified endowment contract are subject to the 10% penalty tax.
If your Policy is part of an equity split dollar arrangement under the economic
benefit regime, there is a risk that some portion of the cash value may be
taxed prior to any Policy distribution.
Tax laws, regulations, and interpretations have often been changed in the past
and such changes continue to be proposed. As with any taxation matter, you
should consult with and rely on the advice of your own tax advisor.
8
FEE TABLES
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the Policy. The charges set forth in the first
two tables may vary by group, based on anticipated variations in our costs or
risks associated with the group or individuals in the group that the charge was
intended to cover. Our variations in the charges will be made in accordance
with our established and uniformly applied administrative procedures. Any
variations in charges will be reasonable and will not be unfairly
discriminatory to the interests of any Policy owner. In addition to the
following tables, certain charges that we don't currently impose (but which we
have the right to impose on your Policy in the future) are described under
"Charges and Deductions--Other Charges," further back in this Prospectus.
In certain cases, we have the right to increase our charges for new Policies,
as well as for Policies already outstanding. The maximum charges in such cases
are shown in the far right-hand columns of each of the first three tables below.
TRANSACTION FEES
This table describes the fees and expenses that you will pay at the time that
you buy the Policy, surrender the Policy, or transfer cash value among the
variable investment options or the Fixed Account.
WHEN CHARGE CURRENT AMOUNT MAXIMUM AMOUNT
CHARGE IS DEDUCTED DEDUCTED WE CAN DEDUCT
---------------------------------------------------------------------------------
Sales Charge/1,2/ On payment of POLICY YEARS 1 TO 10, POLICY YEARS 1 TO 10,
premium up to 6.5% of annual up to 9% of annual
target premium paid target premium paid
POLICY YEARS 11 AND POLICY YEARS 11 AND
LATER, up to 3% of LATER, same as
annual target Current Amount for
premium paid those years
0% on premiums 0% on premiums
paid in excess of paid in excess of
annual target annual target
premium in all Policy premium in all Policy
years years
---------------------------------------------------------------------------------
Charge for average On payment of 2.25% of each Same as Current
expected state and premium premium payment Amount
local taxes
attributable to
premiums
---------------------------------------------------------------------------------
Charge for expected On payment of 1.2% of each Same as Current
federal taxes premium premium payment Amount
attributable to
premiums
---------------------------------------------------------------------------------
9
WHEN CHARGE CURRENT AMOUNT MAXIMUM AMOUNT
CHARGE IS DEDUCTED DEDUCTED WE CAN DEDUCT
---------------------------------------------------------------------------------------------
Administrative On payment of POLICY YEARS 1 TO 10, Up to 1.05% of
Charge/1/ premium up to 0.55% of annual annual target
target premium paid premium paid in all
Policy years
POLICY YEARS 11 AND
LATER, up to 1.05% of 0.05% of premiums
annual target paid in excess of
premium paid annual target
premium in all Policy
0.05% on premiums years
paid in excess of
annual target
premium in all Policy
years
---------------------------------------------------------------------------------------------
Transfer Fee On transfer of cash Not currently $25 per transfer, and
value among charged none for transfers
investment divisions under Systematic
or to or from the Investment
Fixed Account Strategies
---------------------------------------------------------------------------------------------
Interim Term On payment of first Highest: $13.93 per Highest: $24.65 per
Insurance Benefit/3/ premium if rider is $1,000 of term $1,000 of term
(applies only if you elected insurance amount insurance amount
elected rider at issue)
Lowest: $0.03 per Lowest: $0.04 per
Highest and Lowest $1,000 of term $1,000 of term
Charge Among All insurance amount insurance amount
Possible Insureds
Charge for male, $0.152 per $1,000 of $0.271 per $1,000 of
issue age 47, term insurance term insurance
nonsmoker, amount amount
Guaranteed Issue
underwriting class
---------------------------------------------------------------------------------------------
Enhanced Cash On premium 0.25% of each Same as Current
Surrender Value payments made premium payment Amount
Rider/4/ during the first five made during the first
Policy years five Policy years
---------------------------------------------------------------------------------------------
Underwriting Charge On face amount Not currently Up to $3 per $1,000
(applies only if you increase charged of increase
request an increase in
your specified face
amount)
--------
/1/ See "Charges and Deductions--Annual Target Premium" for a detailed
discussion of the determination of the annual target premium.
/2/ For Policies issued with the Refund of Sales Charge Rider, if you request a
full cash withdrawal during the first five Policy years, we will refund any
sales charges deducted within 365 days prior to the date the request is
received at our Designated Office. This rider is not available in New Jersey.
/3/ This charge varies based on individual characteristics of the insured or of
individuals in the group that the charge was intended to cover, and may not be
representative of the charge that you will pay. You can obtain more information
about the charges that would apply by contacting your insurance sales
representative. If you would like, we will provide you with an illustration of
the impact of these and other charges under the Policy based on various
assumptions.
/4/ For Policies issued with the Enhanced Cash Surrender Value Rider on or
after February 1, 2004, if you request a full cash withdrawal during the first
ten Policy years, we will refund (a) part of the cumulative charges we have
deducted from your premium payments and (b) part of the cost of term insurance
we have deducted in the current Policy year, as shown in Table A below.
However, we will not pay this refund if the full cash withdrawal is related to
an exchange pursuant to Section 1035 of the Internal Revenue Code. This rider
is subject to state approval.
10
TABLE A
PORTION OF
COST OF TERM
INSURANCE CHARGES DEDUCTED
PORTION OF DURING POLICY YEAR OF
POLICY YEAR OF CUMULATIVE PREMIUM FULL CASH WITHDRAWAL
FULL CASH WITHDRAWAL CHARGES TO BE REFUNDED* TO BE REFUNDED
-----------------------------------------------------------------------
1 100% 95%
-----------------------------------------------------------------------
2 95% 85%
-----------------------------------------------------------------------
3 90% 75%
-----------------------------------------------------------------------
4 85% 65%
-----------------------------------------------------------------------
5 80% 55%
-----------------------------------------------------------------------
6 75% 45%
-----------------------------------------------------------------------
7 70% 35%
-----------------------------------------------------------------------
8 65% 25%
-----------------------------------------------------------------------
9 60% 15%
-----------------------------------------------------------------------
10 55% 5%
-----------------------------------------------------------------------
11 and later None None
-----------------------------------------------------------------------
* The percent shown is applied to the cumulative sales, tax, and administrative
charges deducted from your premium.
PERIODIC CHARGES OTHER THAN PORTFOLIO OPERATING EXPENSES
These tables describe other fees and expenses that you will pay periodically
during the time that you own the Policy not including the fees and expenses of
the Portfolios.
PERIODIC CHARGES
WHEN CHARGE CURRENT AMOUNT MAXIMUM AMOUNT
CHARGE IS DEDUCTED DEDUCTED WE CAN DEDUCT
-----------------------------------------------------------------------------------------------------------
Cost of Term Insurance On each monthly Highest: $35.30 per Highest: $35.30 per
for coverage under base anniversary of the Policy $1,000 of term insurance $1,000 of term insurance
policy /1, 2/ amount amount
Highest and Lowest Charge
Among All Possible Lowest: $0.02 per $1,000 Lowest: $0.04 per $1,000
Insureds of term insurance amount of term insurance amount
Charge for male, issue $0.152 per $1,000 of term $0.271 per $1,000 of term
age 47, nonsmoker, insurance amount insurance amount
Guaranteed Issue
underwriting class
-----------------------------------------------------------------------------------------------------------
Cost of Term Insurance On each monthly Highest: $26.48 per Highest: $35.30 per
for coverage under the anniversary of the Policy $1,000 of term insurance $1,000 of term insurance
term benefit /1, 2/ amount amount
Highest and Lowest Charge Lowest: $0.02 per $1,000 Lowest: $0.04 per $1,000
Among All Possible of term insurance amount of term insurance amount
Insureds
Charge for male, issue $0.114 per $1,000 of term $0.271 per $1,000 of term
age 47, nonsmoker, insurance amount insurance amount
Guaranteed Issue
underwriting class
11
WHEN CHARGE CURRENT AMOUNT MAXIMUM AMOUNT
CHARGE IS DEDUCTED DEDUCTED WE CAN DEDUCT
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
Mortality and Expense On each monthly Effective annual rate of Effective annual rate up
Risk Charge /3/ anniversary of the Policy 0.40% of the cash value to 0.90%
in the Separate Account.
We intend to reduce this
charge after Policy year
9 to 0.20% and after
Policy year 20 to 0.10%.
-----------------------------------------------------------------------------------------------------------
Loan Interest Spread/ 4/ Annually (or on loan Annual rate of 0.25% of Annual rate of 2% of the
termination, if earlier) the loan amount loan amount
--------
/1/ The cost of term insurance charge varies based on anticipated variations in
our costs or risks associated with the group or individuals in the group that
the charge was intended to cover. See "Charges and Deductions--Cost of Term
Insurance" for a more detailed discussion of factors affecting this charge. For
Policies issued before January 1, 2009, the maximum cost of insurance charge
ranges from $0.09 to $30.45 per $1,000 of term insurance amount.
/2/ This charge varies based on individual characteristics of the insured or of
individuals in the group that the charge was intended to cover, and may not be
representative of the charge that you will pay. You can obtain more information
about the charges that would apply by contacting your insurance sales
representative. If you would like, we will provide you with an illustration of
the impact of these and other charges under the Policy, based on various
assumptions.
/3/ We are waiving the following amounts of the Mortality and Expense Risk
Charge: 0.08% for the investment division investing in the BlackRock Large Cap
Core Portfolio; and an amount equal to the underlying portfolio expenses that
are in excess of 0.91% for the investment division investing in the Pioneer
Fund Portfolio (Class A), in excess of 1.34% for the investment division
investing in the Met/Artisan Mid Cap Value Portfolio (Class B), and in excess
of 1.15% for the investment division investing in the Third Avenue Small Cap
Value Portfolio (Class B).
/4/ We charge interest on Policy loans but credit you with interest on the
amount of the cash value we hold as collateral for the loan. The loan interest
spread is the excess of the interest rate we charge over the interest rate we
credit.
PORTFOLIO OPERATING EXPENSES
Each of the Funds pays an investment management fee to its investment manager.
Each of the Funds also incurs other direct expenses (see the applicable Fund
Prospectus and the Statement of Additional Information referred to therein for
each Fund). You bear indirectly your proportionate share of the fees and
expenses of the Portfolios of each Fund that correspond to the Separate Account
investment divisions you are using. Most of the Funds offer various classes of
shares, each of which has a different level of expenses, only one of which is
available under a Policy. The available class of each Portfolio is specified in
the expense table below and on the front cover pages of the Prospectus.
The first table below shows the lowest and highest fees and expenses charged by
any of the Portfolios for the fiscal year ended December 31, 2011.
LOWEST HIGHEST
-----------------------------------------------------------------
Total Annual Portfolio Operating Expenses
(expenses that are deducted from Portfolio
assets, including management fees, distribution
(Rule 12b-1) fees and other expenses) 0.27% 1.72%
-----------------------------------------------------------------
12
The table below describes the annual operating expenses for each Portfolio for
the year ended December 31, 2011 as a percentage of the Portfolio's average
daily net assets for the year.
-----------------------------------------------------------------------------------
DISTRIBU- CONTRACTUAL
TION FEE WAIVER NET
AND/OR ACQUIRED TOTAL AND/OR TOTAL
MANAGE- SERVICE FUND ANNUAL EXPENSE ANNUAL
MENT (12B-1) OTHER FEES AND OPERATING REIMBUR- OPERATING
FEE FEES EXPENSES EXPENSES EXPENSES SEMENT EXPENSES
-----------------------------------------------------------------------------------
AIM VARIABLE
INSURANCE
FUNDS
(INVESCO
VARIABLE
INSURANCE
FUNDS)
-----------------------------------------------------------------------------------
Invesco V.I.
Global Real
Estate Fund--
Series I 0.75% -- 0.39% -- 1.14% 0.00% 1.14%
-----------------------------------------------------------------------------------
Invesco V.I.
Government
Securities
Fund--
Series II 0.46% 0.25% 0.29% -- 1.00% 0.05% 0.95%
-----------------------------------------------------------------------------------
Invesco V.I.
International
Growth
Fund--Series I 0.71% -- 0.32% -- 1.03% -- 1.03%
-----------------------------------------------------------------------------------
Invesco Van
Kampen V.I.
Comstock
Fund--
Series II 0.56% 0.25% 0.24% -- 1.05% 0.08% 0.97%
-----------------------------------------------------------------------------------
ALLIANCE
BERNSTEIN
VARIABLE
PRODUCTS
SERIES FUND,
INC.
-----------------------------------------------------------------------------------
Global
Thematic
Growth
Portfolio--
Class B 0.75% 0.25% 0.19% -- 1.19% -- 1.19%
-----------------------------------------------------------------------------------
Intermediate
Bond
Portfolio--
Class B 0.45% 0.25% 0.20% -- 0.90% -- 0.90%
-----------------------------------------------------------------------------------
International
Value
Portfolio--
Class A 0.75% -- 0.07% -- 0.82% -- 0.82%
-----------------------------------------------------------------------------------
AMERICAN
CENTURY
VARIABLE
PORTFOLIOS,
INC.--CLASS I
-----------------------------------------------------------------------------------
VP Vista/SM
/Fund 1.00% -- 0.01% 0.03% 1.04% -- 1.04%
-----------------------------------------------------------------------------------
13
------------------------------------------------------------------------------------
DISTRIBU- CONTRACTUAL
TION FEE WAIVER NET
AND/OR ACQUIRED TOTAL AND/OR TOTAL
MANAGE- SERVICE FUND ANNUAL EXPENSE ANNUAL
MENT (12B-1) OTHER FEES AND OPERATING REIMBUR- OPERATING
FEE FEES EXPENSES EXPENSES EXPENSES SEMENT EXPENSES
------------------------------------------------------------------------------------
AMERICAN
FUNDS
INSURANCE
SERIES(R) --
CLASS 2
------------------------------------------------------------------------------------
American
Funds Growth
Fund 0.32% 0.25% 0.02% -- 0.59% -- 0.59%
------------------------------------------------------------------------------------
American
Funds High-
Income Bond
Fund 0.46% 0.25% 0.01% -- 0.72% -- 0.72%
------------------------------------------------------------------------------------
American
Funds
International
Fund 0.49% 0.25% 0.04% -- 0.78% -- 0.78%
------------------------------------------------------------------------------------
American
Funds U.S.
Government/
AAA-Rated
Securities
Fund 0.33% 0.25% 0.01% -- 0.59% -- 0.59%
------------------------------------------------------------------------------------
DREYFUS
VARIABLE
INVESTMENT
FUND--
SERVICE
SHARES
------------------------------------------------------------------------------------
International
Value Portfolio 1.00% 0.25% 0.25% -- 1.50% -- 1.50%
------------------------------------------------------------------------------------
FIDELITY(R)
VARIABLE
INSURANCE
PRODUCTS
------------------------------------------------------------------------------------
Asset Manager:
Growth(R)
Portfolio--
Service Class 0.56% 0.10% 0.17% 0.01% 0.84% -- 0.84%
------------------------------------------------------------------------------------
Contrafund(R)
Portfolio--
Service Class 0.56% 0.10% 0.09% -- 0.75% -- 0.75%
------------------------------------------------------------------------------------
Equity-Income
Portfolio--
Service Class 0.46% 0.10% 0.10% -- 0.66% -- 0.66%
------------------------------------------------------------------------------------
Freedom 2010
Portfolio--
Initial Class -- -- -- 0.56% 0.56% -- 0.56%
------------------------------------------------------------------------------------
Freedom 2015
Portfolio--
Initial Class -- -- -- 0.56% 0.56% -- 0.56%
------------------------------------------------------------------------------------
Freedom 2020
Portfolio--
Initial Class -- -- -- 0.60% 0.60% -- 0.60%
------------------------------------------------------------------------------------
Freedom 2025
Portfolio--
Initial Class -- -- -- 0.64% 0.64% -- 0.64%
------------------------------------------------------------------------------------
Freedom 2030
Portfolio--
Initial Class -- -- -- 0.65% 0.65% -- 0.65%
------------------------------------------------------------------------------------
14
------------------------------------------------------------------------------------
DISTRIBU- CONTRACTUAL
TION FEE WAIVER NET
AND/OR ACQUIRED TOTAL AND/OR TOTAL
MANAGE- SERVICE FUND ANNUAL EXPENSE ANNUAL
MENT (12B-1) OTHER FEES AND OPERATING REIMBUR- OPERATING
FEE FEES EXPENSES EXPENSES EXPENSES SEMENT EXPENSES
------------------------------------------------------------------------------------
High Income
Portfolio--
Initial Class 0.57% -- 0.12% -- 0.69% -- 0.69%
------------------------------------------------------------------------------------
Investment
Grade Bond
Portfolio--
Service Class 0.32% 0.10% 0.10% -- 0.52% -- 0.52%
------------------------------------------------------------------------------------
Mid Cap
Portfolio--
Service Class 2 0.56% 0.25% 0.10% -- 0.91% -- 0.91%
------------------------------------------------------------------------------------
FRANKLIN
TEMPLETON
VARIABLE
INSURANCE
PRODUCTS
TRUST
------------------------------------------------------------------------------------
Mutual Global
Discovery
Securities
Fund--Class 2 0.80% 0.25% 0.17% -- 1.22% -- 1.22%
------------------------------------------------------------------------------------
Templeton
Foreign
Securities
Fund--Class 1 0.64% -- 0.15% 0.01% 0.80% 0.00% 0.80%
------------------------------------------------------------------------------------
Templeton
Global Bond
Securities
Fund--Class 1 0.46% -- 0.10% -- 0.56% -- 0.56%
------------------------------------------------------------------------------------
GOLDMAN
SACHS
VARIABLE
INSURANCE
TRUST--
INSTITUTIONAL
SHARES
------------------------------------------------------------------------------------
Goldman Sachs
Structured
Small Cap
Equity Fund 0.75% -- 0.24% -- 0.99% 0.13% 0.86%
------------------------------------------------------------------------------------
JANUS ASPEN
SERIES
------------------------------------------------------------------------------------
Balanced
Portfolio--
Service Shares 0.55% 0.25% 0.03% -- 0.83% -- 0.83%
------------------------------------------------------------------------------------
Enterprise
Portfolio--
Service Shares 0.64% 0.25% 0.05% -- 0.94% -- 0.94%
------------------------------------------------------------------------------------
Forty
Portfolio--
Service Shares 0.64% 0.25% 0.07% -- 0.96% -- 0.96%
------------------------------------------------------------------------------------
Janus
Portfolio--
Institutional
Shares 0.56% -- 0.07% -- 0.63% -- 0.63%
------------------------------------------------------------------------------------
Overseas
Portfolio--
Service Shares 0.60% 0.25% 0.06% -- 0.91% -- 0.91%
------------------------------------------------------------------------------------
15
------------------------------------------------------------------------------------
DISTRIBU- CONTRACTUAL
TION FEE WAIVER NET
AND/OR ACQUIRED TOTAL AND/OR TOTAL
MANAGE- SERVICE FUND ANNUAL EXPENSE ANNUAL
MENT (12B-1) OTHER FEES AND OPERATING REIMBUR- OPERATING
FEE FEES EXPENSES EXPENSES EXPENSES SEMENT EXPENSES
------------------------------------------------------------------------------------
LEGG MASON
PARTNERS
VARIABLE
EQUITY TRUST
------------------------------------------------------------------------------------
Legg Mason
Investment
Counsel
Variable Social
Awareness
Portfolio 0.70% -- 0.25% -- 0.95% 0.00% 0.95%
------------------------------------------------------------------------------------
MET INVESTORS
SERIES TRUST
------------------------------------------------------------------------------------
BlackRock
Large Cap
Core
Portfolio--
Class A 0.59% -- 0.05% 0.01% 0.65% 0.01% 0.64%
------------------------------------------------------------------------------------
Clarion Global
Real Estate
Portfolio--
Class B 0.61% 0.25% 0.06% -- 0.92% -- 0.92%
------------------------------------------------------------------------------------
Dreman Small
Cap Value
Portfolio--
Class A 0.78% -- 0.07% 0.07% 0.92% 0.00% 0.92%
------------------------------------------------------------------------------------
Harris
Oakmark
International
Portfolio--
Class A 0.77% -- 0.08% -- 0.85% 0.02% 0.83%
------------------------------------------------------------------------------------
Invesco Small
Cap Growth
Portfolio--
Class B 0.85% 0.25% 0.03% -- 1.13% 0.02% 1.11%
------------------------------------------------------------------------------------
Lazard Mid
Cap Portfolio--
Class B 0.69% 0.25% 0.06% -- 1.00% -- 1.00%
------------------------------------------------------------------------------------
Legg Mason
ClearBridge
Aggressive
Growth
Portfolio--
Class A 0.62% -- 0.03% -- 0.65% -- 0.65%
------------------------------------------------------------------------------------
Lord Abbett
Bond
Debenture
Portfolio--
Class A 0.50% -- 0.04% -- 0.54% -- 0.54%
------------------------------------------------------------------------------------
Lord Abbett
Mid Cap Value
Portfolio--
Class A 0.67% -- 0.06% -- 0.73% 0.02% 0.71%
------------------------------------------------------------------------------------
MetLife
Aggressive
Strategy
Portfolio--
Class B 0.09% 0.25% 0.01% 0.75% 1.10% 0.00% 1.10%
------------------------------------------------------------------------------------
16
------------------------------------------------------------------------------------
DISTRIBU- CONTRACTUAL
TION FEE WAIVER NET
AND/OR ACQUIRED TOTAL AND/OR TOTAL
MANAGE- SERVICE FUND ANNUAL EXPENSE ANNUAL
MENT (12B-1) OTHER FEES AND OPERATING REIMBUR- OPERATING
FEE FEES EXPENSES EXPENSES EXPENSES SEMENT EXPENSES
------------------------------------------------------------------------------------
MFS(R)
Research
International
Portfolio--
Class B 0.68% 0.25% 0.09% -- 1.02% 0.06% 0.96%
------------------------------------------------------------------------------------
Morgan
Stanley Mid
Cap Growth
Portfolio--
Class A 0.65% -- 0.07% -- 0.72% 0.01% 0.71%
------------------------------------------------------------------------------------
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%
------------------------------------------------------------------------------------
Pioneer Fund
Portfolio--
Class A 0.64% -- 0.05% -- 0.69% 0.01% 0.68%
------------------------------------------------------------------------------------
T. Rowe Price
Large Cap
Value
Portfolio--
Class A 0.57% -- 0.02% -- 0.59% -- 0.59%
------------------------------------------------------------------------------------
Third Avenue
Small Cap
Value
Portfolio--
Class B 0.74% 0.25% 0.03% -- 1.02% 0.01% 1.01%
------------------------------------------------------------------------------------
METROPOLITAN
SERIES FUND
------------------------------------------------------------------------------------
Baillie Gifford
International
Stock
Portfolio--
Class A 0.83% -- 0.12% -- 0.95% 0.10% 0.85%
------------------------------------------------------------------------------------
Barclays
Capital
Aggregate
Bond Index
Portfolio--
Class A 0.25% -- 0.03% -- 0.28% 0.01% 0.27%
------------------------------------------------------------------------------------
BlackRock
Aggressive
Growth
Portfolio--
Class A 0.73% -- 0.04% -- 0.77% -- 0.77%
------------------------------------------------------------------------------------
BlackRock
Bond Income
Portfolio--
Class A 0.34% -- 0.03% -- 0.37% 0.01% 0.36%
------------------------------------------------------------------------------------
17
-----------------------------------------------------------------------------------
DISTRIBU- CONTRACTUAL
TION FEE WAIVER NET
AND/OR ACQUIRED TOTAL AND/OR TOTAL
MANAGE- SERVICE FUND ANNUAL EXPENSE ANNUAL
MENT (12B-1) OTHER FEES AND OPERATING REIMBUR- OPERATING
FEE FEES EXPENSES EXPENSES EXPENSES SEMENT EXPENSES
-----------------------------------------------------------------------------------
BlackRock
Diversified
Portfolio--
Class A 0.46% -- 0.05% -- 0.51% -- 0.51%
-----------------------------------------------------------------------------------
BlackRock
Legacy Large
Cap Growth
Portfolio--
Class A 0.71% -- 0.02% -- 0.73% 0.01% 0.72%
-----------------------------------------------------------------------------------
BlackRock
Money Market
Portfolio--
Class A 0.33% -- 0.02% -- 0.35% 0.01% 0.34%
-----------------------------------------------------------------------------------
Davis Venture
Value
Portfolio--
Class A 0.70% -- 0.03% -- 0.73% 0.05% 0.68%
-----------------------------------------------------------------------------------
FI Value
Leaders
Portfolio--
Class A 0.67% -- 0.07% -- 0.74% -- 0.74%
-----------------------------------------------------------------------------------
Jennison
Growth
Portfolio--
Class A 0.62% -- 0.02% -- 0.64% 0.07% 0.57%
-----------------------------------------------------------------------------------
Loomis Sayles
Small Cap Core
Portfolio--
Class A 0.90% -- 0.06% 0.09% 1.05% 0.08% 0.97%
-----------------------------------------------------------------------------------
Met/Artisan
Mid Cap Value
Portfolio--
Class B 0.81% 0.25% 0.03% -- 1.09% -- 1.09%
-----------------------------------------------------------------------------------
MetLife
Conservative
Allocation
Portfolio--
Class B 0.09% 0.25% 0.02% 0.53% 0.89% 0.01% 0.88%
-----------------------------------------------------------------------------------
MetLife
Conservative
to Moderate
Allocation
Portfolio--
Class B 0.07% 0.25% 0.01% 0.58% 0.91% 0.00% 0.91%
-----------------------------------------------------------------------------------
MetLife Mid
Cap Stock
Index
Portfolio--
Class A 0.25% -- 0.05% 0.02% 0.32% 0.00% 0.32%
-----------------------------------------------------------------------------------
MetLife
Moderate
Allocation
Portfolio--
Class B 0.06% 0.25% -- 0.64% 0.95% 0.00% 0.95%
-----------------------------------------------------------------------------------
18
--------------------------------------------------------------------------------------
DISTRIBU- CONTRACTUAL
TION FEE WAIVER NET
AND/OR ACQUIRED TOTAL AND/OR TOTAL
MANAGE- SERVICE FUND ANNUAL EXPENSE ANNUAL
MENT (12B-1) OTHER FEES AND OPERATING REIMBUR- OPERATING
FEE FEES EXPENSES EXPENSES EXPENSES SEMENT EXPENSES
--------------------------------------------------------------------------------------
MetLife
Moderate to
Aggressive
Allocation
Portfolio--
Class B 0.06% 0.25% 0.01% 0.69% 1.01% 0.00% 1.01%
--------------------------------------------------------------------------------------
MetLife Stock
Index
Portfolio--
Class A 0.25% -- 0.02% -- 0.27% 0.01% 0.26%
--------------------------------------------------------------------------------------
MFS(R) Total
Return
Portfolio--
Class B 0.54% 0.25% 0.05% -- 0.84% -- 0.84%
--------------------------------------------------------------------------------------
MFS(R) Value
Portfolio--
Class A 0.70% -- 0.03% -- 0.73% 0.13% 0.60%
--------------------------------------------------------------------------------------
MSCI EAFE(R)
Index Portfolio--
Class A 0.30% -- 0.11% 0.01% 0.42% 0.00% 0.42%
--------------------------------------------------------------------------------------
Neuberger
Berman Genesis
Portfolio--
Class A 0.82% -- 0.04% -- 0.86% 0.01% 0.85%
--------------------------------------------------------------------------------------
Oppenheimer
Global Equity
Portfolio--
Class A 0.52% -- 0.10% -- 0.62% -- 0.62%
--------------------------------------------------------------------------------------
Russell 2000(R)
Index
Portfolio--
Class A 0.25% -- 0.06% 0.08% 0.39% 0.00% 0.39%
--------------------------------------------------------------------------------------
T. Rowe Price
Large Cap
Growth
Portfolio--
Class A 0.60% -- 0.04% -- 0.64% 0.01% 0.63%
--------------------------------------------------------------------------------------
T. Rowe Price
Small Cap
Growth
Portfolio--
Class A 0.49% -- 0.06% -- 0.55% -- 0.55%
--------------------------------------------------------------------------------------
MFS(R) VARIABLE
INSURANCE
TRUST--SERVICE
CLASS
--------------------------------------------------------------------------------------
MFS(R) Global
Equity Series 1.00% 0.25% 0.40% -- 1.65% 0.25% 1.40%
--------------------------------------------------------------------------------------
MFS(R) High
Income Series 0.70% 0.25% 0.09% -- 1.04% -- 1.04%
--------------------------------------------------------------------------------------
MFS(R) New
Discovery
Series 0.90% 0.25% 0.08% -- 1.23% -- 1.23%
--------------------------------------------------------------------------------------
19
------------------------------------------------------------------------------------
DISTRIBU- CONTRACTUAL
TION FEE WAIVER NET
AND/OR ACQUIRED TOTAL AND/OR TOTAL
MANAGE- SERVICE FUND ANNUAL EXPENSE ANNUAL
MENT (12B-1) OTHER FEES AND OPERATING REIMBUR- OPERATING
FEE FEES EXPENSES EXPENSES EXPENSES SEMENT EXPENSES
------------------------------------------------------------------------------------
OPPENHEIMER
VARIABLE
ACCOUNT
FUNDS--
NON-SERVICE
SHARES
------------------------------------------------------------------------------------
Oppenheimer
Main Street
Small- &
Mid-Cap
Fund(R)/VA 0.69% -- 0.14% -- 0.83% 0.03% 0.80%
------------------------------------------------------------------------------------
PIMCO
VARIABLE
INSURANCE
TRUST--
ADMINISTRATIVE
CLASS
------------------------------------------------------------------------------------
PIMCO All
Asset Portfolio 0.43% -- 0.15% 0.74% 1.32% 0.07% 1.25%
------------------------------------------------------------------------------------
PIMCO Long-
Term U.S.
Government
Portfolio 0.48% -- 0.15% -- 0.63% -- 0.63%
------------------------------------------------------------------------------------
PIMCO Low
Duration
Portfolio 0.50% -- 0.15% -- 0.65% -- 0.65%
------------------------------------------------------------------------------------
PIONEER
VARIABLE
CONTRACTS
TRUST
------------------------------------------------------------------------------------
Pioneer
Emerging
Markets VCT
Portfolio--
Class II 1.15% 0.25% 0.32% -- 1.72% -- 1.72%
------------------------------------------------------------------------------------
Pioneer Mid
Cap Value
VCT
Portfolio--
Class I 0.65% -- 0.07% -- 0.72% -- 0.72%
------------------------------------------------------------------------------------
PUTNAM
VARIABLE
TRUST--
CLASS IB
------------------------------------------------------------------------------------
Putnam VT
International
Value Fund 0.70% 0.25% 0.23% -- 1.18% -- 1.18%
------------------------------------------------------------------------------------
ROYCE CAPITAL
FUND--
INVESTMENT
CLASS
------------------------------------------------------------------------------------
Royce
Micro-Cap
Portfolio 1.25% -- 0.07% 0.02% 1.34% -- 1.34%
------------------------------------------------------------------------------------
Royce
Small-Cap
Portfolio 1.00% -- 0.05% -- 1.05% -- 1.05%
------------------------------------------------------------------------------------
20
----------------------------------------------------------------------------------
DISTRIBU- CONTRACTUAL
TION FEE WAIVER NET
AND/OR ACQUIRED TOTAL AND/OR TOTAL
MANAGE- SERVICE FUND ANNUAL EXPENSE ANNUAL
MENT (12B-1) OTHER FEES AND OPERATING REIMBUR- OPERATING
FEE FEES EXPENSES EXPENSES EXPENSES SEMENT EXPENSES
----------------------------------------------------------------------------------
THE UNIVERSAL
INSTITUTIONAL
FUNDS, INC.--
CLASS I
----------------------------------------------------------------------------------
Emerging
Markets Debt
Portfolio 0.75% -- 0.30% -- 1.05% 0.00% 1.05%
----------------------------------------------------------------------------------
Emerging
Markets
Equity
Portfolio 1.22% -- 0.38% -- 1.60% 0.18% 1.42%
----------------------------------------------------------------------------------
WELLS FARGO
VARIABLE
TRUST--
CLASS 2
----------------------------------------------------------------------------------
VT Total
Return Bond
Fund 0.40% 0.25% 0.26% 0.01% 0.92% 0.01% 0.91%
----------------------------------------------------------------------------------
The Net Total Annual Operating Expenses shown in the table reflect contractual
arrangements currently in effect under which the investment advisers of certain
Funds have agreed to waive fees and/or pay expenses of the Funds until at least
April 30, 2013 (April 27, 2013 for the Goldman Sachs Structured Small Cap
Equity Fund). In the table, "0.00%" in the Contractual Fee Waiver and/or
Expense Reimbursement column indicates that there is a contractual arrangement
in effect for that Fund, but the expenses of the Fund are below the level that
would trigger the waiver or reimbursement. The Net Total Annual Operating
Expenses shown do not reflect voluntary waiver or expense reimbursement
arrangements or arrangements that terminate prior to April 30, 2013 (except as
noted above). The Funds provided the information on their expenses, and we have
not independently verified the information.
Certain Funds that have "Acquired Fund Fees and Expenses" are "fund of funds."
Each "fund of funds" invests substantially all of its assets in other funds.
Because the Fund invests in other underlying funds, the Fund will bear its pro
rata portion of the operating expenses of the underlying funds in which it
invests, including the management fee. See the Fund's prospectus for more
information.
Additional information about the management fees and expenses of the Funds can
be obtained in Funds' prospectuses and Statements of Additional Information.
FOR INFORMATION CONCERNING COMPENSATION PAID FOR THE SALE OF THE POLICIES, SEE
"SALE OF POLICIES."
21
METLIFE
Metropolitan Life Insurance Company ("MetLife") is a wholly-owned subsidiary of
MetLife, Inc., a publicly traded company. Our main office is located at 200
Park Avenue, New York, New York 10166.
MetLife has the legal obligation to pay all benefits and other amounts to which
you are entitled under the terms of your Policy.
THE FIXED ACCOUNT
The Fixed Account is part of our general assets that are not in any legally
segregated separate accounts. Amounts in the Fixed Account are credited with
interest at an effective annual rate of 2.5% (4% for Policies issued prior to
February 24, 2012). We may also credit excess interest on such amounts.
Different excess interest rates may apply to different amounts based upon when
such amounts were allocated to the Fixed Account.
Any partial amounts we remove from the Fixed Account (such as any portion of
your Policy's monthly deduction that is allocable to the Fixed Account) will be
taken from the most recently allocated amounts first. Any excess interest rate
will be credited for at least 12 months before a new rate is credited. We can
delay transfers, withdrawals, surrender and payment of Policy loans from the
Fixed Account for up to 6 months. Since the Fixed Account is not registered
under the federal securities laws, this Prospectus contains only limited
information about the Fixed Account. The Policy gives you more information on
the operation of the Fixed Account.
SEPARATE ACCOUNT UL
The Separate Account receives premium payments from the Policy described in
this Prospectus and other variable life insurance policies that we issue. The
assets in the Separate Account legally belong to us, but they are held solely
for the benefit of investors in the Separate Account and no one else, including
our other creditors. 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 and losses. We will keep an
amount in the Separate Account that at least equals the value of our
commitments to policy owners that are based on their investments in the
Separate Account. We can also keep charges that we deduct and other excess
amounts in the Separate Account or we can transfer the excess out of 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.
22
[SIDEBAR: EACH SEPARATE ACCOUNT INVESTMENT DIVISION INVESTS IN A CORRESPONDING
PORTFOLIO OF A FUND.]
The Separate Account has subdivisions, called "investment divisions." Each
investment division invests its assets exclusively in shares of a corresponding
Portfolio of a Fund. We can add new investment divisions to or eliminate
investment divisions from the Separate Account. You can designate how you would
like your net premiums and cash value to be allocated among the available
investment divisions and our Fixed Account. Amounts you allocate to each
investment division receive the investment experience of the investment
division, and you bear this investment risk.
THE FUNDS
[SIDEBAR: YOU SHOULD CAREFULLY REVIEW THE INVESTMENT OBJECTIVES, STRATEGIES,
AND RISKS OF EACH PORTFOLIO WHICH ARE DESCRIBED IN THE PROSPECTUS FOR EACH FUND
YOU HAVE ALSO RECEIVED.]
Each of the Funds is a "series" type of mutual fund, which is registered as an
open-end management investment company under the Investment Company Act of 1940
(the "1940 Act"). Each Fund is divided into Portfolios, each of which
represents a different class of stock in which a corresponding investment
division of the Separate Account invests. PROSPECTUSES FOR THE FUNDS ARE
AVAILABLE BY CALLING 1-908-253-1400 OR THROUGH YOUR REGISTERED REPRESENTATIVE.
You should read each Fund prospectus carefully. They contain information about
each Fund and its Portfolios, including the investment objectives, strategies,
risks and investment advisers that are associated with each Portfolio.
Some of the Portfolios have names and investment objectives that are very
similar to certain publicly available mutual funds that are managed by the same
money managers. These Portfolios are not those publicly available mutual funds
and will not have the same performance. Different performance will result from
such factors as different implementation of investment policies, different cash
flows into and out of the Portfolios, different fees and different sizes.
CERTAIN PAYMENTS WE RECEIVE WITH REGARD TO THE PORTFOLIOS. An investment
adviser (other than our affiliate MetLife Advisers, LLC) or sub-adviser 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 MetLife's 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
Fund 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 sub-advisers
(or other affiliates) may pay us more than others. These percentages currently
range up to .50%.
Additionally, an investment adviser or sub-adviser 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 sub-adviser (or their affiliate) with increased
access to persons involved in the distribution of the Policies.
We, and certain of our affiliated insurance companies, have joint ownership
interests in our affiliated investment adviser MetLife Advisers, LLC, which is
organized as a limited liability company. Our ownership interests in MetLife
Advisers, LLC entitle us to profit distributions if the adviser makes a profit
23
with respect to the advisory fees it receives from a Portfolio. We will benefit
accordingly from assets allocated to the Portfolios to the extent they result
in profits to the adviser. (See "Fee Tables--Portfolio Operating Expenses" for
information on the management fees paid to the adviser and the Statement of
Additional Information for the Funds for information on the management fees
paid by the adviser to sub-advisers.)
Certain Funds have adopted a Distribution Plan under Rule 12b-1 of the
Investment Company Act of 1940. A Fund's 12b-1 Plan, if any, is described
in more detail in each Fund's prospectus. (See also "Fee Tables--Portfolio
Operating Expenses.") Any payments we receive pursuant to those 12b-1 Plans are
paid to us or our distributor. Payments under a Fund's 12b-1 Plan decrease the
Portfolio's investment return.
SELECTION OF THE PORTFOLIOS. We select the Portfolios offered through this
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. In some cases, we may include Portfolios
based on recommendations made by selling firms through which the Policy is
sold. These selling firms may receive payments from the Portfolios they
recommend and may benefit accordingly from the allocation of cash value to such
Portfolios. We review the Portfolios periodically and may remove a Portfolio or
limit its availability to new premium payments or transfers of cash value if we
determine that the Portfolio no longer meets one or more of the selection
criteria, and/or if the Portfolio has not attracted significant allocations
from owners.
We make certain payments to American Funds Distributors, Inc., principal
underwriter for the American Funds Insurance Series. (See "Sales of Policies.")
WE DO NOT PROVIDE 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.
As of the end of each Valuation Period (see "Valuation Period" description
below in "Other Policy Provisions--When Your Requests Become Effective"), we
purchase and redeem Fund shares for the Separate Account at their net asset
value without any sales or redemption charges. These purchases and redemptions
reflect the amount of any of the following transactions that take effect at the
end of the Valuation Period:
.. The allocation of net premiums to the Separate Account.
24
.. Dividends and distributions on Fund shares, which are reinvested as of the
dates paid (which reduces the value of each share of the Fund and increases
the number of Fund shares outstanding, but has no effect on the cash value
in the Separate Account).
.. Policy loans and loan repayments allocated to the Separate Account.
.. Transfers to and among investment divisions.
.. Withdrawals and surrenders taken from the Separate Account.
The adviser, any sub-adviser and investment objective of each Portfolio are as
follows:
AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS)
-------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
-------------------------------------------------------------------------------------------------------
Invesco V.I. Global Real Estate Seeks total return through growth of Invesco Advisers, Inc.
Fund--Series I capital and current income. Subadviser: Invesco Asset
Management Limited
-------------------------------------------------------------------------------------------------------
Invesco V.I. Government Securities Seeks total return, comprised of Invesco Advisers, Inc.
Fund--Series II current income and capital
appreciation.
-------------------------------------------------------------------------------------------------------
Invesco V.I. International Growth Seeks long-term growth of capital. Invesco Advisers, Inc.
Fund--Series I
-------------------------------------------------------------------------------------------------------
Invesco Van Kampen V.I. Comstock Seeks capital growth and income Invesco Advisers, Inc.
Fund--Series II through investments in equity
securities, including common stocks,
preferred stocks and securities
convertible into common and preferred
stocks.
-------------------------------------------------------------------------------------------------------
ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.
-------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
-------------------------------------------------------------------------------------------------------
Global Thematic Growth Seeks long-term growth of capital. AllianceBernstein L.P.
Portfolio--Class B
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Intermediate Bond Portfolio--Class B Seeks to generate income and price AllianceBernstein L.P.
appreciation without assuming what
the Adviser considers undue risk.
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
International Value Portfolio--Class A Seeks long-term growth of capital. AllianceBernstein L.P.
-------------------------------------------------------------------------------------------------------
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.--CLASS I
-------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
-------------------------------------------------------------------------------------------------------
VP Vista/SM/ Fund Seeks long-term capital growth. American Century
Investment Management,
Inc.
-------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R)--CLASS 2
-------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
-------------------------------------------------------------------------------------------------------
American Funds Growth Fund Seeks growth of capital. Capital Research and
Management Company
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
American Funds High-Income Bond Fund Seeks a high level of current income. Capital Research and
Its secondary objective is capital Management Company
appreciation.
-------------------------------------------------------------------------------------------------------
25
-------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
-------------------------------------------------------------------------------------------------------
American Funds International Fund Seeks long-term growth of capital. Capital Research and
Management Company
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
American Funds U.S. Seeks a high level of current income Capital Research and
Government/AAA-Rated Securities Fund consistent with preservation of Management Company
capital.
-------------------------------------------------------------------------------------------------------
DREYFUS VARIABLE INVESTMENT FUND--SERVICE SHARES
-------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
-------------------------------------------------------------------------------------------------------
International Value Portfolio Seeks long-term capital growth. The Dreyfus Corporation
-------------------------------------------------------------------------------------------------------
FIDELITY(R) VARIABLE INSURANCE PRODUCTS
-------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
-------------------------------------------------------------------------------------------------------
Asset Manager: Growth(R) Seeks to maximize total return by Fidelity Management &
Portfolio--Service Class allocating its assets among stocks, Research Company
bonds, short-term instruments, and Subadviser: FMR Co., Inc.
other investments. Fidelity Investments
Money Management, Inc.
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Contrafund(R) Portfolio-- Service Seeks long-term capital appreciation. Fidelity Management &
Class Research Company
Subadviser: FMR Co., Inc.
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Equity-Income Portfolio--Service Class Seeks reasonable income. The fund Fidelity Management &
will also consider the potential for Research Company
capital appreciation. The fund's goal Subadviser: FMR Co., Inc.
is to achieve a yield which exceeds
the composite yield on the securities
comprising the S&P 500(R) Index.
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Freedom 2010 Portfolio-- Initial Class Seeks high total return with a Strategic Advisers, Inc.
secondary objective of principal
preservation as the fund approaches
its target date and beyond.
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Freedom 2015 Portfolio-- Initial Class Seeks high total return with a Strategic Advisers, Inc.
secondary objective of principal
preservation as the fund approaches
its target date and beyond.
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Freedom 2020 Portfolio-- Initial Class Seeks high total return with a Strategic Advisers, Inc.
secondary objective of principal
preservation as the fund approaches
its target date and beyond.
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Freedom 2025 Portfolio-- Initial Class Seeks high total return with a Strategic Advisers, Inc.
secondary objective of principal
preservation as the fund approaches
its target date and beyond.
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Freedom 2030 Portfolio-- Initial Class Seeks high total return with a Strategic Advisers, Inc.
secondary objective of principal
preservation as the fund approaches
its target date and beyond.
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
High Income Portfolio-- Initial Class Seeks a high level of current income, Fidelity Management &
while also considering growth of Research Company
capital. Subadviser: FMR Co., Inc.
-------------------------------------------------------------------------------------------------------
26
---------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
---------------------------------------------------------------------------------------------------------
Investment Grade Bond Seeks as high a level of current Fidelity Management &
Portfolio--Service Class income as is consistent with the Research Company
preservation of capital. Subadviser: Fidelity
Investments Money
Management, Inc.
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Mid Cap Portfolio-- Service Class 2 Seeks long-term growth of capital. Fidelity Management &
Research Company
Subadviser: FMR Co., Inc.
---------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
---------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
---------------------------------------------------------------------------------------------------------
Mutual Global Discovery Securities Seeks capital appreciation. Franklin Mutual Advisers,
Fund--Class 2 LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Templeton Foreign Securities Seeks long-term capital growth. Templeton Investment
Fund--Class 1 Counsel, LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Templeton Global Bond Securities Seeks high current income, consistent Franklin Advisers, Inc.
Fund--Class 1 with preservation of capital, with
capital appreciation as a secondary
consideration.
---------------------------------------------------------------------------------------------------------
GOLDMAN SACHS VARIABLE INSURANCE TRUST--INSTITUTIONAL SHARES
---------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
---------------------------------------------------------------------------------------------------------
Goldman Sachs Structured Small Cap Seeks long-term growth of capital. Goldman Sachs Asset
Equity Fund Management, L.P.
---------------------------------------------------------------------------------------------------------
JANUS ASPEN SERIES
---------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
---------------------------------------------------------------------------------------------------------
Balanced Portfolio--Service Shares Seeks long-term capital growth, Janus Capital
consistent with preservation of Management LLC
capital and balanced by current
income.
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Enterprise Portfolio--Service Shares Seeks long-term growth of capital. Janus Capital
Management LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Forty Portfolio--Service Shares Seeks long-term growth of capital. Janus Capital
Management LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Janus Portfolio--Institutional Shares Seeks long-term growth of capital. Janus Capital
Management LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Overseas Portfolio--Service Shares Seeks long-term growth of capital. Janus Capital
Management LLC
---------------------------------------------------------------------------------------------------------
LEGG MASON PARTNERS VARIABLE EQUITY TRUST
---------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
---------------------------------------------------------------------------------------------------------
Legg Mason Investment Counsel Seeks capital appreciation and Legg Mason Partners
Variable Social Awareness Portfolio retention of net investment income. Fund Advisor, LLC
Subadviser: Legg Mason
Investment Counsel, LLC
---------------------------------------------------------------------------------------------------------
27
MET INVESTORS SERIES TRUST
---------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
---------------------------------------------------------------------------------------------------------
BlackRock Large Cap Core Seeks long-term capital growth. MetLife Advisers, LLC
Portfolio--Class A Subadviser: BlackRock
Advisors, LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Clarion Global Real Estate Seeks total return through investment MetLife Advisers, LLC
Portfolio--Class B in real estate securities, Subadviser: CBRE
emphasizing both capital appreciation Clarion Securities LLC
and current income.
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Dreman Small Cap Value Seeks capital appreciation. MetLife Advisers, LLC
Portfolio--Class A Subadviser: Dreman Value
Management, LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Harris Oakmark International Seeks long-term capital appreciation. MetLife Advisers, LLC
Portfolio--Class A Subadviser: Harris
Associates L.P.
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Invesco Small Cap Growth Seeks long-term growth of capital. MetLife Advisers, LLC
Portfolio--Class B Subadviser: Invesco
Advisers, Inc.
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Lazard Mid Cap Portfolio--Class B Seeks long-term growth of capital. MetLife Advisers, LLC
Subadviser: Lazard Asset
Management LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Legg Mason ClearBridge Aggressive Seeks capital appreciation. MetLife Advisers, LLC
Growth Portfolio--Class A Subadviser: ClearBridge
Advisors, LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Lord Abbett Bond Debenture Seeks high current income and the MetLife Advisers, LLC
Portfolio--Class A opportunity for capital appreciation Subadviser: Lord, Abbett
to produce a high total return. & Co. LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Lord Abbett Mid Cap Value Seeks capital appreciation through MetLife Advisers, LLC
Portfolio--Class A investments, primarily in equity Subadviser: Lord, Abbett
securities, which are believed to be & Co. LLC
undervalued in the marketplace.
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
MetLife Aggressive Strategy Seeks growth of capital. MetLife Advisers, LLC
Portfolio--Class B
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
MFS(R) Research International Seeks capital appreciation. MetLife Advisers, LLC
Portfolio--Class B Subadviser: Massachusetts
Financial Services
Company
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Morgan Stanley Mid Cap Growth Seeks capital appreciation. MetLife Advisers, LLC
Portfolio--Class A Subadviser: Morgan
Stanley Investment
Management Inc.
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
PIMCO Inflation Protected Bond Seeks maximum real return, consistent MetLife Advisers, LLC
Portfolio--Class A with preservation of capital and Subadviser: Pacific
prudent investment management. Investment Management
Company LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
PIMCO Total Return Portfolio--Class A Seeks maximum total return, MetLife Advisers, LLC
consistent with the preservation of Subadviser: Pacific
capital and prudent investment Investment Management
management. Company LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Pioneer Fund Portfolio--Class A Seeks reasonable income and capital MetLife Advisers, LLC
growth. Subadviser: Pioneer
Investment Management,
Inc.
---------------------------------------------------------------------------------------------------------
28
---------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
---------------------------------------------------------------------------------------------------------
T. Rowe Price Large Cap Value Seeks long-term capital appreciation MetLife Advisers, LLC
Portfolio--Class A by investing in common stocks Subadviser: T. Rowe Price
believed to be undervalued. Income is Associates, Inc.
a secondary objective.
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Third Avenue Small Cap Value Seeks long-term capital appreciation. MetLife Advisers, LLC
Portfolio--Class B Subadviser: Third Avenue
Management LLC
---------------------------------------------------------------------------------------------------------
METROPOLITAN SERIES FUND
---------------------------------------------------------------------------------------------------------
Baillie Gifford International Stock Seeks long-term growth of capital. MetLife Advisers, LLC
Portfolio--Class A Subadviser: Baillie Gifford
Overseas Limited
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Barclays Capital Aggregate Bond Index Seeks to track the performance of the MetLife Advisers, LLC
Portfolio--Class A Barclays U.S. Aggregate Bond Index. Subadviser: MetLife
Investment Advisors
Company, LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
BlackRock Aggressive Growth Seeks maximum capital appreciation. MetLife Advisers, LLC
Portfolio--Class A Subadviser: BlackRock
Advisors, LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
BlackRock Bond Income Seeks a competitive total return MetLife Advisers, LLC
Portfolio--Class A primarily from investing in Subadviser: BlackRock
fixed-income securities. Advisors, LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
BlackRock Diversified Seeks high total return MetLife Advisers, LLC
Portfolio--Class A while attempting to limit investment Subadviser: BlackRock
risk and preserve capital. Advisors, LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
BlackRock Legacy Large Cap Growth Seeks long-term growth of capital. MetLife Advisers, LLC
Portfolio--Class A Subadviser: BlackRock
Advisors, LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
BlackRock Money Market Seeks a high level of current income MetLife Advisers, LLC
Portfolio--Class A consistent with preservation of Subadviser: BlackRock
capital. Advisors, LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Davis Venture Value Portfolio--Class A Seeks growth of capital. MetLife Advisers, LLC
Subadviser: Davis
Selected Advisers, L.P.
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
FI Value Leaders Portfolio--Class A Seeks long-term growth of capital. MetLife Advisers, LLC
Subadviser: Pyramis
Global Advisors, LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Jennison Growth Portfolio--Class A Seeks long-term growth of capital. MetLife Advisers, LLC
Subadviser: Jennison
Associates LLC
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Loomis Sayles Small Cap Core Seeks long-term capital growth from MetLife Advisers, LLC
Portfolio--Class A investments in common stocks or other Subadviser: Loomis,
equity securities. Sayles & Company, L.P.
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Met/Artisan Mid Cap Value Seeks long-term capital growth. MetLife Advisers, LLC
Portfolio--Class B Subadviser: Artisan
Partners Limited
Partnership
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
MetLife Conservative Allocation Seeks a high level of current income, MetLife Advisers, LLC
Portfolio--Class B with growth of capital as a secondary
objective.
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
MetLife Conservative to Moderate Seeks high total return in the form MetLife Advisers, LLC
Allocation Portfolio--Class B of income and growth of capital, with
a greater emphasis on income.
---------------------------------------------------------------------------------------------------------
29
-------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
-------------------------------------------------------------------------------------------------------
MetLife Mid Cap Stock Index Seeks to track the performance of the MetLife Advisers, LLC
Portfolio--Class A Standard & Poor's MidCap 400(R) Subadviser: MetLife
Composite Stock Price Index. Investment Advisors
Company, LLC
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
MetLife Moderate Allocation Seeks a balance between a high level MetLife Advisers, LLC
Portfolio--Class B of current income and growth of
capital, with a greater emphasis on
growth of capital.
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
MetLife Moderate to Aggressive Seeks growth of capital. MetLife Advisers, LLC
Allocation Portfolio--Class B
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
MetLife Stock Index Portfolio--Class A Seeks to track the performance of the MetLife Advisers, LLC
Standard & Poor's 500(R) Composite Subadviser: MetLife
Stock Price Index. Investment Advisors
Company, LLC
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
MFS(R) Total Return Portfolio--Class B Seeks a favorable total return MetLife Advisers, LLC
through investment in a diversified Subadviser: Massachusetts
portfolio. Financial Services
Company
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
MFS(R) Value Portfolio--Class A Seeks capital appreciation. MetLife Advisers, LLC
Subadviser: Massachusetts
Financial Services
Company
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
MSCI EAFE(R) Index Portfolio--Class A Seeks to track the performance of the MetLife Advisers, LLC
MSCI EAFE(R) Index. Subadviser: MetLife
Investment Advisors
Company, LLC
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Neuberger Berman Genesis Seeks high total return, consisting MetLife Advisers, LLC
Portfolio--Class A principally of capital appreciation. Subadviser: Neuberger
Berman Management
LLC
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Oppenheimer Global Equity Seeks capital appreciation. MetLife Advisers, LLC
Portfolio--Class A Subadviser:
OppenheimerFunds, Inc.
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Russell 2000(R) Index Seeks to track the performance of the MetLife Advisers, LLC
Portfolio--Class A Russell 2000(R) Index. Subadviser: MetLife
Investment Advisors
Company, LLC
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
T. Rowe Price Large Cap Growth Seeks long-term growth of capital MetLife Advisers, LLC
Portfolio--Class A and, secondarily, dividend income. Subadviser: T. Rowe Price
Associates, Inc.
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
T. Rowe Price Small Cap Growth Seeks long-term capital growth. MetLife Advisers, LLC
Portfolio--Class A Subadviser: T. Rowe Price
Associates, Inc.
-------------------------------------------------------------------------------------------------------
MFS(R) VARIABLE INSURANCE TRUST--SERVICE CLASS
-------------------------------------------------------------------------------------------------------
MFS(R) Global Equity Series Seeks capital appreciation. Massachusetts Financial
Services Company
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
MFS(R) High Income Series Seeks total return with an emphasis Massachusetts Financial
on high current income, but also Services Company
considering capital appreciation.
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
MFS(R) New Discovery Series Seeks capital appreciation. Massachusetts Financial
Services Company
-------------------------------------------------------------------------------------------------------
30
OPPENHEIMER VARIABLE ACCOUNT FUNDS--NON-SERVICE SHARES
--------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
--------------------------------------------------------------------------------------------------------
Oppenheimer Main Street Small- & Seeks capital appreciation. OppenheimerFunds, Inc.
Mid-Cap Fund(R)/VA
--------------------------------------------------------------------------------------------------------
PIMCO VARIABLE INSURANCE TRUST--ADMINISTRATIVE CLASS
--------------------------------------------------------------------------------------------------------
PIMCO All Asset Portfolio Seeks maximum real return consistent Pacific Investment
with preservation of real capital and Management Company
prudent investment management. LLC Subadviser:
Research Affiliates, LLC
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
PIMCO Long-Term U.S. Government Seeks maximum total return, Pacific Investment
Portfolio consistent with preservation of Management Company
capital and prudent investment LLC
management.
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
PIMCO Low Duration Portfolio Seeks maximum total return, Pacific Investment
consistent with preservation of Management Company
capital and prudent investment LLC
management.
--------------------------------------------------------------------------------------------------------
PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------------------------------
Pioneer Emerging Markets VCT Seeks long-term growth of capital. Pioneer Investment
Portfolio--Class II Management, Inc.
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
Pioneer Mid Cap Value VCT Seeks capital appreciation Pioneer Investment
Portfolio--Class I by investing in a diversified Management, Inc.
portfolio of securities consisting
primarily of common stocks.
--------------------------------------------------------------------------------------------------------
PUTNAM VARIABLE TRUST--CLASS IB
--------------------------------------------------------------------------------------------------------
Putnam VT International Value Fund Seeks capital growth. Current income Putnam Investment
is a secondary objective. Management, LLC
Subadviser: The Putnam
Advisory Company, LLC
--------------------------------------------------------------------------------------------------------
ROYCE CAPITAL FUND--INVESTMENT CLASS
--------------------------------------------------------------------------------------------------------
Royce Micro-Cap Portfolio Seeks long-term growth of capital. Royce & Associates, LLC
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
Royce Small-Cap Portfolio Seeks long-term growth of capital. Royce & Associates, LLC
--------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.--CLASS I
--------------------------------------------------------------------------------------------------------
Emerging Markets Debt Portfolio Seeks high total return by investing Morgan Stanley
primarily in fixed income securities Investment Management
of government and government-related Inc.
issuers and, to a lesser extent, of
corporate issuers in emerging market
countries.
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
Emerging Markets Equity Portfolio Seeks long-term capital appreciation Morgan Stanley
by investing primarily in Investment Management
growth-oriented equity securities of Inc.
issuers in emerging market countries. Subadvisers: Morgan
Stanley Investment
Management Company
and Morgan Stanley
Investment Management
Limited
--------------------------------------------------------------------------------------------------------
31
WELLS FARGO VARIABLE TRUST--CLASS 2
---------------------------------------------------------------------------------------------------------
INVESTMENT ADVISER/
PORTFOLIO INVESTMENT OBJECTIVE SUBADVISER
---------------------------------------------------------------------------------------------------------
VT Total Return Bond Fund Seeks total return, consisting of Wells Fargo Funds
income and capital appreciation. Management, LLC
Subadviser: Wells Capital
Management Incorporated
---------------------------------------------------------------------------------------------------------
THE PORTFOLIO SHARE CLASSES THAT WE OFFER
The Funds offer various classes of shares, each of which has a different level
of expenses. The Fund prospectuses may provide information for share classes or
Portfolios that are not available through the Policy. When you consult the Fund
prospectus for a Portfolio, you should be careful to refer only to the
information regarding the Portfolio and class of shares that is available
through the Policy.
SUBSTITUTION OF PORTFOLIOS
If investment in the Portfolios or a particular Portfolio is no longer
possible, in our judgment becomes inappropriate for the purposes of the
Policies, or for any other reason in our sole discretion, we may substitute
another portfolio without your consent. The substituted Portfolio may have
different fees and expenses. Substitution may be made with respect to existing
investments or the investment of future premium payments, or both. However, we
will not make such substitution without any necessary approval of the
Securities and Exchange Commission. Furthermore, we may make available or close
investment divisions to allocation of premium payments or cash value, or both,
for some or all classes of Policies, at any time in our sole discretion.
VOTING RIGHTS
[SIDEBAR: YOU CAN GIVE US VOTING INSTRUCTIONS ON SHARES OF EACH PORTFOLIO OF A
FUND THAT ARE ATTRIBUTED TO YOUR POLICY.]
The Funds have shareholder meetings from time to time to, for example, elect
directors and approve some changes in investment management arrangements. We
will vote the shares of each Portfolio that are attributed to your Policy based
on your instructions. We will vote all shares in proportion to the instructions
received. If we do not receive your instructions we will vote your shares in
the same proportion as represented by the votes received from other owners. The
effect of this proportional voting is that a small number of owners may control
the outcome of a vote. Should we determine that the 1940 Act no longer requires
us to do this, we may decide to vote Fund shares in our own right, without
input from you or any other owners of variable life insurance policies or
variable annuity contracts that participate in a Fund.
ISSUING A POLICY
If you want to own a Policy, then you must complete an application, which must
be received by the Designated Office. We reserve the right to reject an
application for any reason permitted by law, and our acceptance of an
application is subject to our insurance underwriting rules.
We offer other variable life insurance policies that have different death
benefits, policy features, Portfolio selections, and optional programs.
32
However, these other policies also have different charges that would affect
your performance and cash values. To obtain more information about these other
policies, contact our Designated Office or your sales representative.
There are three types of underwriting available under the Policy. We decide
which type to use based on the total number of eligible possible insureds
within the eligible group for whom a Policy could be purchased and the
percentage of those insureds for whom a Policy is actually purchased. The three
types of underwriting are:
GUARANTEED ISSUE--requires the least evidence of insurability and rating
classification
SIMPLIFIED UNDERWRITING--requires more evidence of insurability and rating
classification
FULL UNDERWRITING--requires the most evidence of insurability and rating
classification
An insured who is a standard risk under Simplified Underwriting or Guaranteed
Issue may have a higher cost of term insurance rate than would apply to the
same insured under Full Underwriting.
Generally, we will issue a Policy only for insureds that are age 70 or less
(although we may decide to permit an insured that is older) that have provided
evidence of insurability that we find acceptable. An "insured" is the person
upon whose life we issue the Policy. For the purpose of computing the insured's
age under the Policy, we start with the insured's age on the Date of Policy
which is set forth in the Policy. Age under the Policy at any other time is
then computed using that issue age and adding the number of full Policy years
completed.
The Date of Policy is usually the date the Policy application is approved and
premiums are accepted. We use the Date of Policy to calculate the Policy years
(and Policy months and monthly anniversaries). To preserve a younger age for
the insured, we may permit a Date of Policy that is earlier than the date the
application is approved if there have been no material misrepresentations in
the application. You may request that your Date of Policy be the same date the
planned periodic premium is received. In these cases, you would incur a charge
for insurance protection before insurance coverage starts.
Insurance coverage under the Policy will generally begin at the time the
application is approved. For coverage to be effective, the insured's health on
the date of such approval must be the same as stated in the application and, in
most states, we can require that the insured not have sought medical advice or
treatment between the date of the application and the date of approval.
PAYMENT AND ALLOCATION OF PREMIUMS
[SIDEBAR: YOU CAN MAKE VOLUNTARY PLANNED PERIODIC PREMIUM PAYMENTS AND
UNSCHEDULED PREMIUM PAYMENTS.]
The payment of a given premium won't necessarily guarantee that your Policy
will remain in force. Rather, this depends on your Policy's cash surrender
value.
33
PAYING PREMIUMS
We accept premium payments made by check or cashier's check. We do not accept
cash, money orders or traveler's checks. You can make premium payments, subject
to certain limitations discussed below, through the:
VOLUNTARY PLANNED PERIODIC PREMIUM SCHEDULE: You choose the schedule on your
application. The schedule sets forth the amount of premiums, fixed payment
intervals and the period of time that you intend to pay premiums. The schedule
can be: (a) annual; (b) semi-annual; or (c) through another method to which we
agree. After payment of the first planned periodic premium, you do not have to
pay premiums in accordance with your voluntary planned period premium schedule.
UNSCHEDULED PREMIUM PAYMENT OPTION: You also can make other premium payments
at any time.
Premium payments sent by regular U.S. mail should be addressed to: MetLife LB
7369, P.O. Box 8500-7369, Philadelphia, PA 19101-7369. Premium payments sent by
express mail or courier service should be addressed to: Wells Fargo Bank, 101
N. Independence Mall East, MetLife Lock Box# 7369, Philadelphia, PA 19106.
If you send 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
payment or transaction to your Policy.
MAXIMUM AND MINIMUM PREMIUM PAYMENTS
.. The first premium may not be less than the planned premium unless agreed to
by us.
.. After the first Policy year, your voluntary planned periodic payments must
be at least $100, whether on an annual or semi-annual basis.
.. Unscheduled premium payments must be at least $100 each. We may change this
minimum amount on 90 days notice to you.
.. You may not pay premiums that exceed tax law premium limitations for life
insurance policies. We will return any amounts that exceed these limits,
except that we will keep any amounts that are required to keep the Policy
from terminating. We will let you make premium payments that would turn your
Policy into a modified endowment contract, but we will tell you of this
status in your annual statement, and if possible, we will tell you how to
reverse the status. ("See Tax Matters--Modified Endowment Contracts.")
.. We reserve the right not to sell a Policy to any group or individual
associated with such group if the total amount of annual premium that is
expected to be paid in connection with all Policies sold to the group or
individuals associated with such group is less than $250,000.
.. We may require evidence of insurability for premium payments that cause the
minimum death benefit to exceed the death benefit then in effect under the
death benefit option chosen.
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ALLOCATING NET PREMIUMS
[SIDEBAR: NET PREMIUMS ARE YOUR PREMIUMS MINUS THE CHARGES DEDUCTED FROM YOUR
PREMIUMS.]
Your allocations of net premiums to the Fixed Account are effective as of the
Investment Start Date. See "Investment Start Date" description below in "Other
Policy Provisions--When Your Requests Become Effective." Your allocations of
net premiums to the investment divisions of the Separate Account are effective
as of the end of the free look period. See "Other Policy Provisions--Free Look
Period." During the free look period, we allocate the net premium payments you
allocated to the investment divisions to the BlackRock Money Market investment
division. At the end of the free look period, we will allocate your cash value
in that investment division among all the Separate Account investment divisions
according to your net premium allocation instructions.
For policies issued in California, we allocate net premiums to the investment
divisions of the Separate Account as of the Investment Start Date. If you are
age 60 or older, and you allocate 100% of your initial net premium to the
BlackRock Money Market investment division in order to receive a refund of
premiums should you cancel the Policy during the free look period, we will not
automatically transfer your cash value or reallocate your future premiums once
the free look period has ended. You must contact us to request a transfer or
reallocation.
You can instruct us to allocate your net premiums among the Fixed Account and
the investment divisions. You can change your allocations (effective after the
end of the free look period) at any time by giving us written notification at
our Designated Office or in any other manner that we permit. If you have cash
value of at least $60,000,000 in the Fixed Account for all Policies you own, we
will have to give prior approval to any allocation of net premium or transfer
of cash value to the Fixed Account.
INSURANCE PROCEEDS
If the Policy is in force, we will pay your beneficiary the insurance proceeds
as of the end of the Valuation Period that includes the insured's date of
death. We will pay this amount after we receive documents that we request as
due proof of the insured's death.
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 provided under "Income
Plans" 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.
35
The beneficiary has one year from the date the insurance proceeds are paid to
change the selection from a single sum payment to an income plan, as long as we
have made no payments from the interest-bearing account. If the terms of the
income plan permit the beneficiary to withdraw the entire amount from the plan,
the beneficiary can also name contingent beneficiaries.
The insurance proceeds equal:
.. The death benefit under the death benefit option or minimum death benefit
that is in effect on the date of death; plus
.. Any additional insurance proceeds provided by rider; minus
.. Any unpaid Policy loans and accrued interest thereon, and any due and unpaid
charges accruing during a grace period.
DEATH BENEFIT OPTIONS
[SIDEBAR: THE POLICY GENERALLY OFFERS A CHOICE OF THREE DEATH BENEFIT OPTIONS.]
You can choose among three options. You select which option you want in the
Policy application. The three options are:
.. Option A: The death benefit is a level amount and equals the specified face
amount of the Policy.
.. Option B: The death benefit varies and equals the specified face amount of
the Policy plus the cash value on the date of death.
.. Option C: The death benefit varies and equals the specified face amount of
the Policy plus the amount by which the Policy premiums paid exceed
withdrawals made.
There are issues that you should consider in choosing your death benefit
option. For example, under Options B and C, the cash value or other amounts are
added to the specified face amount. Therefore, the death benefit will generally
be greater under these options than under Option A, for Policies with the same
specified face amount and premium payments. By the same token, the cost of
insurance will generally be greater under Options B and C than under Option A.
[SIDEBAR: YOU CAN GENERALLY CHANGE YOUR DEATH BENEFIT OPTION.]
You can change your death benefit option after the first Policy year, provided
that:
.. Your cash surrender value after the change would be enough to pay at least
two monthly deductions.
.. The specified face amount continues to be no less than the minimum we allow
after a decrease.
.. The total premiums you have paid do not exceed the then current maximum
premium limitations permitted under Internal Revenue Service rules.
.. You provide evidence satisfactory to us of the insured's insurability, as we
may require.
Any change will be effective on the monthly anniversary on or immediately
following the Date of Receipt of the request (or following the date we approve
it if we require evidence of insurability). A change in death benefit option
will cause us to automatically increase or decrease your specified face amount
so that the amount of the death benefit is not changed on the effective date of
the new death benefit option.
Before you change your death benefit option you should consider the following:
.. If the term insurance portion of your death benefit changes, as it may with
a change from Option A to B or C and vice versa, the term insurance charge
will also change. This will affect your cash value and, in some cases, the
death benefit levels.
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.. If your specified face amount changes because of the change in death benefit
option, consider also the issues presented by changing your specified face
amount that are described under "Specified Face Amount," below. These issues
include the possibility that your Policy would become a modified endowment
contract; that you would receive a taxable distribution; and that the
maximum premium amounts that you can pay would change.
MINIMUM DEATH BENEFIT
In no event will the Policy death benefit (plus the proceeds under any term
rider on the insured's life) be lower than the minimum amount required to
maintain the Policy as life insurance under the federal income tax laws as in
effect on the date your Policy is issued. We determine this minimum by applying
either the:
I. Cash Value Accumulation Test or
II. Guideline Premium/Cash Value Corridor Test.
You choose the Cash Value Accumulation Test or the Guideline Premium/Cash Value
Corridor Test before we issue your Policy, and the election cannot later be
changed. Under the Cash Value Accumulation Test, your death benefit is never
less than the amount of your Policy's cash value at the insured's date of
death, multiplied by a factor set forth in your Policy. This factor varies
depending upon the insured's age at the date of death, and it declines as the
insured grows older.
Under the Guideline Premium/Cash Value Corridor Test, there is a very similar
minimum death benefit based on your Policy's cash value at the date of death.
However, the factors set forth in your Policy are higher for the Guideline
Premium/Cash Value Corridor Test (which results in a higher minimum death
benefit, assuming the same cash value). Also, there are firm limits on the
amount of premiums you can pay for the amount of coverage you have in force
under the Guideline Premium/Cash Value Corridor Test, while the tax law imposes
no such firm limits under the Cash Value Accumulation Test.
Before choosing between these two Tests you should consider the following:
.. The Cash Value Accumulation Test may allow you to pay a greater amount in
premiums for the same amount of death benefit under federal income tax laws
and still qualify as life insurance. This is the case because the Policy
will qualify as life insurance even though the Policy owner is paying a
higher level of premium than allowed under the Guideline Premium/Cash Value
Accumulation Test. However, the death benefit under the Cash Value
Accumulation Test (and thus the monthly cost of term insurance) could be
higher. You should ask for an illustration comparing results under both
tests. We reserve the right to return any premium to the extent it would
cause the death benefit to increase above certain limits.
.. Increases in death benefits by operation of the Cash Value Accumulation Test
will result in a higher monthly cost of term insurance. Such increases can
also occur under the Guideline Premium/Cash Value Corridor Test, although
this is less likely.
.. Any advantage of the Cash Value Accumulation Test may be eliminated if
premium payments exceed the 7-pay test limit. The 7-pay test sets a limit on
the amount of premiums which may be paid under a policy during the 7-pay
testing period (usually the first 7 Policy years after issue or after a
material modification
37
of the Policy) without incurring possible adverse tax consequences. If
premiums paid exceed such limit during any 7-pay testing period, any partial
withdrawals, Policy loan and other distributions may be subject to adverse
federal income tax consequences. (See "Federal Tax Matters--Modified
Endowment Contracts" below.)
SPECIFIED FACE AMOUNT
CHOOSING YOUR INITIAL SPECIFIED FACE AMOUNT
The specified face amount is the basic amount of insurance specified in your
Policy. The Minimum Initial Specified Face amount is the smallest amount of
specified face amount for which a Policy may be issued. Currently this amount
is $100,000. If the term insurance rider is purchased, the specified face
amount and term rider amount are combined to determine the Minimum Initial
Specified Face Amount. You should consider whether to take all of your coverage
as specified face amount or whether to take some coverage, if available, under
our term insurance benefit.
The term insurance benefit provides coverage on the insured to age 95. You may
purchase this rider, if available, only at the time of Policy issue. By
electing to take part of your coverage under the term insurance rider, you can
reduce the amount of sales charges and current cost of insurance charges that
you otherwise would pay. For details, see "Optional Rider Benefits--Term
Benefit."
[SIDEBAR: YOU CAN GENERALLY INCREASE OR DECREASE YOUR POLICY'S SPECIFIED FACE
AMOUNT.]
CHANGING YOUR SPECIFIED FACE AMOUNT
Generally, you may change your specified face amount at any time after the
first Policy year subject to certain criteria specified below. Any change will
be effective on: the monthly anniversary on or next following the (a) Date of
Receipt of your request; or (b) if we require evidence of insurability, the
date we approve your request.
The Specified Face Amount of insurance may not be reduced to less than $100,000
during the first five Policy years or to less than $50,000 after the fifth
Policy year. These minimums also apply to decreases that result from partial
withdrawals or changes in death benefit options. If there have been previous
specified face amount increases, any decreases in specified face amount will be
made in the following order: (i) the specified face amount provided by the most
recent increase; (ii) the next most recent increases successively; and (iii)
the initial specified face amount. You may increase the specified face amount
only if the cash surrender value after the change is large enough to cover at
least two monthly deductions based on your most recent cost of term insurance
charge. Any increase may require that we receive additional evidence of
insurability that is satisfactory to us. We may also impose a one-time
underwriting charge.
Before you change your specified face amount you should consider the following:
.. The term insurance portion of your death benefit will change and so will the
term insurance charge. This will affect the insurance charges, cash value
and, in some cases, death benefit levels.
.. Reducing your specified face amount may result in our returning an amount to
you which, if it occurs during the first 15 Policy years, could then be
taxed on an income first basis.
.. The amount of additional premiums that the tax laws permit you to pay into
your Policy may increase or decrease. The additional amount you can pay
without causing your Policy to be a modified endowment contract for tax
purposes may also increase or decrease. (See "Tax Matters--Modified
Endowment Contracts.")
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.. In some circumstances, the Policy could become a modified endowment contract.
.. For Policies issued on or after May 1, 1996 in connection with other than
certain employer sponsored plans that became effective prior to August 1,
2000, the sales charge and the administration charge may change. This is
because an increase or decrease in the specified face amount will result in
an increase or decrease in the annual target premium on which these charges
are based.
INCOME PLANS
[SIDEBAR: GENERALLY YOU CAN RECEIVE THE POLICY'S INSURANCE PROCEEDS, AMOUNTS
PAYABLE AT THE FINAL DATE OR AMOUNTS PAID UPON SURRENDER UNDER AN INCOME PLAN
INSTEAD OF IN A LUMP SUM.]
The insurance proceeds can be paid under a variety of income plans that are
available under the Policy.
Generally, we currently make the following income plans available:
.. Interest income
.. Installment Income for a Stated Period
.. Installment Income of a Stated Amount
.. Single Life Income--Guaranteed Payment Period
.. Single Life Income--Guaranteed Return
.. Joint and Survivor Life Income
Before you choose an income plan you should consider:
.. The tax consequences associated with the Policy proceeds, which can vary
considerably, depending on whether a plan is chosen. You or your beneficiary
should consult with a qualified tax adviser about tax consequences.
.. That your Policy will terminate at the time you commence an income plan and
you will receive a new contract, which describes the terms of the income
plan. You should carefully review the terms of the new contract, because it
contains important information about the terms and conditions of the income
plan.
.. That the rates of return we credit under these plans are not based on the
investment performance of any of the Portfolios.
CASH VALUE, TRANSFERS AND WITHDRAWALS
CASH VALUE
[SIDEBAR: YOUR POLICY IS DESIGNED TO ALLOW YOU TO ACCUMULATE CASH VALUE.]
Your Policy's cash value equals:
.. The Fixed Account cash value, plus
.. The Policy Loan Account cash value, plus
.. The Separate Account cash value.
Your Policy's cash surrender value equals your cash value minus any outstanding
Policy loans (plus any accrued and unpaid loan interest).
On your Investment Start Date, the Policy's cash value in an investment
division will equal the portion of any net premium allocated to the investment
division, reduced by the portion of any monthly deductions allocated to the
Policy's cash value in that investment division.
Thereafter, at the end of each Valuation Period the cash value in an investment
division will equal:
.. The cash value in the investment division at the beginning of the Valuation
Period; plus
.. All net premiums, loan repayments and cash value transfers into the
investment division during the Valuation Period; minus
.. All partial cash withdrawals, loans and cash value transfers out of the
investment division during the Valuation Period; minus
39
.. The portion of any charges and deductions allocated to the cash value in the
investment division during the Valuation Period; plus
.. The net investment return for the Valuation Period on the amount of cash
value in the investment division at the beginning of the Valuation Period.
The net investment return currently equals the rate of increase or decrease
in the net asset value per share of the underlying Fund Portfolio over the
Valuation Period, adjusted upward to take appropriate account of any
dividends and other distributions paid by the Portfolio during the period.
CASH VALUE TRANSFERS
[SIDEBAR: YOU CAN TRANSFER YOUR CASH VALUE AMONG THE INVESTMENT DIVISIONS AND
THE FIXED ACCOUNT AT ANY TIME BEGINNING AFTER THE END OF THE FREE LOOK PERIOD.]
The minimum amount you may transfer is $50 or, if less, the total amount in an
investment option. You may make transfers at any time. The maximum amount that
you may transfer or withdraw from the Fixed Account in any Policy year is the
greater of $50 and 25% of the largest amount in the Fixed Account over the last
four Policy years. Due to this limit, it could take a number of years to fully
transfer or withdraw a current balance from the Fixed Account. You should keep
this in mind when considering whether an allocation of cash value to the Fixed
Account is consistent with your risk tolerance and time horizon. This limit
does not apply to a full surrender, any loans taken, or any transfers under a
systematic investment strategy. We may also limit the number of investment
options to which you may transfer cash value, and, under certain conditions, we
may have to approve transfers to the Fixed Account. (See "Payment and
Allocation of Premiums--Allocating Net Premiums.")
MARKET TIMING: 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., Baillie Gifford
International Stock Portfolio, Loomis Sayles Small Cap Core Portfolio, MSCI
EAFE(R) Index Portfolio, Neuberger Berman Genesis Portfolio, Oppenheimer Global
Equity Portfolio, Russell 2000(R) Index Portfolio, T. Rowe Price Small Cap
Growth Portfolio, Lord Abbett Bond Debenture Portfolio, Harris Oakmark
International Portfolio, Invesco Small Cap Growth Portfolio, MFS(R) Research
International Portfolio, Third Avenue Small Cap Value Portfolio, Invesco V.I.
Global Real Estate Fund, Invesco V.I. International Growth Fund,
AllianceBernstein Global Thematic Growth Portfolio, AllianceBernstein
International Value Portfolio, American Funds High-Income Bond Fund, American
Funds International Fund, Dreyfus VIF International Value
40
Portfolio, Fidelity(R) VIP High Income Portfolio, Franklin Templeton Mutual
Global Discovery Securities Fund, Templeton Foreign Securities Fund, Templeton
Global Bond Securities Fund, Janus Aspen Overseas Portfolio, MFS(R) Global
Equity Series, MFS(R) High Income Series, MFS(R) New Discovery Series, Goldman
Sachs Structured Small Cap Equity Fund, Clarion Global Real Estate Portfolio,
Dreman Small Cap Value Portfolio, Oppenheimer Main Street Small- & Mid-Cap
Fund(R)/VA, Pioneer Emerging Markets VCT Portfolio, Putnam VT International
Value Fund, Royce Micro-Cap Portfolio, Royce Small-Cap Portfolio, UIF Emerging
Markets Debt Portfolio and UIF Emerging Markets Equity Portfolio) and we
monitor transfer activity in those Funds (the "Monitored Portfolios"). In
addition, as described below, we intend to treat all American Funds Insurance
Series(R) 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 Monitored
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 Funds to bring any potential disruptive trading activity they
identify to our attention for investigation on a case-by-case basis. We will
also investigate any 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.
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
41
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 with an original signature.
Transfers made under one of the systematic investment strategies described
below 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 may also 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 Portfolios 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 market timing transactions in 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 market timing
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 contracts. The
omnibus orders reflect the aggregation and netting of multiple orders from
individual owners of variable insurance policies and/or individual retirement
plan participants. The omnibus nature of these orders may limit the Portfolios
in their ability to apply their market timing 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 the 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.
42
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 and disruptive trading activities (even if an
entire omnibus order is rejected due to the market timing or disruptive trading
activity of a single Policy owner). You should read the Fund prospectuses for
more details.
SYSTEMATIC INVESTMENT STRATEGIES: You can choose one of four currently
available strategies described below. You can also change or cancel your choice
at any time.
.. EQUITY GENERATOR(R). Allows you to transfer the interest earned on amounts
in the Fixed Account in any Policy month equal to at least $20 to the
MetLife Stock Index investment division or the BlackRock Aggressive Growth
investment division. The transfer will be made at the beginning of the
Policy month following the Policy month in which the interest was earned.
.. EQUALIZER/ SM/. Allows you to periodically equalize amounts in your Fixed
Account and either the MetLife Stock Index investment division or the
BlackRock Aggressive Growth investment division. We currently make
equalization each quarter. We will terminate this strategy if you make a
transfer out of either of the investment divisions or the Fixed Account. You
may then reelect the Equalizer on your next Policy anniversary.
.. REBALANCER(R). Allows you to periodically redistribute amounts in the Fixed
Account and investment divisions in the same proportion that the net
premiums are then being allocated. We currently make the redistribution at
the beginning of each quarter.
.. ALLOCATOR/ SM/. Allows you to systematically transfer money from the
BlackRock Money Market investment division to the Fixed Account and/or any
investment division(s). When you elect the Allocator, you must have enough
cash value in the BlackRock Money Market investment division to enable the
election to be in effect for three months. The election can be to transfer
each month:
.. A specific amount, until the cash value in the BlackRock Money Market
investment division is exhausted.
.. A specific amount for a specific number of months.
.. Amounts in equal installments until the total amount you have requested has
been transferred.
These transfer privileges allow you to take advantage of investment
fluctuations, but none assures a profit nor protects against a loss in
declining markets. Because the Allocator involves continuous investment in
securities regardless of the price levels of such securities, you should
consider your financial ability to continue purchases through periods of
fluctuating price levels.
TRANSFERS BY TELEPHONE: Subject to our market timing procedures, we may, if
permitted by state law, decide in the future to allow you to make transfer
requests, changes to Systematic Investment Strategies and changes to
allocations of future net premium by phone. We may also allow you to authorize
your sales representative to make such requests. The following procedures would
apply:
.. We must have received your authorization in writing satisfactory to us, to
act on instructions from any person that claims to be you or your sales
representative, as applicable, as long as that person follows our procedures.
.. We will institute reasonable procedures to confirm that instructions we
receive are genuine. Our procedures will include receiving from the caller
your
43
personalized data. Any telephone instructions that we reasonably believe to
be genuine are your responsibility, including losses arising from such
instructions. Because telephone 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 instructions, or that you have authorized any such person
to act for you.
.. All telephone calls will be recorded.
.. You will receive a written confirmation of any transaction.
.. Neither the Separate Account nor we will be liable for any loss, expense or
cost arising out of a telephone request if we reasonably believed the
request to be genuine.
Telephone, facsimile, and computer systems may not always be available. Any
telephone, facsimile, or computer system, whether it is yours, your service
provider's, your sales 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 promise complete reliability under
all circumstances. If you are experiencing problems, you should make your
request by writing to our Designated Office.
SURRENDER AND WITHDRAWAL PRIVILEGES
[SIDEBAR: YOU CAN SURRENDER YOUR POLICY FOR ITS CASH SURRENDER VALUE.]
We may ask you to return the Policy before we honor your request to surrender
your Policy. You can choose to have the proceeds paid in a single sum, or under
an income plan. If the insured dies after you surrender the Policy but before
the end of the Policy month in which you surrendered the Policy, we will pay
your beneficiary an amount equal to the difference between the Policy's death
benefit and its cash value, computed as of the surrender date.
You can make partial withdrawals if:
.. the withdrawal would not result in the cash surrender value being less than
sufficient to pay 2 monthly deductions;
.. the withdrawal is at least $250;
.. the withdrawal would not result in total premiums paid exceeding any then
current maximum premium limitation determined by Internal Revenue Code
rules; and
.. the withdrawal would not result in your specified face amount falling below
the minimum allowable amount after a decrease, as described under "Insurance
Proceeds--Specified Amount--Changing Your Specified Face Amount," above.
If you make a request for a partial withdrawal that is not permitted, we will
tell you and you may then ask for a smaller withdrawal or surrender the Policy.
We will deduct your withdrawal from the Fixed Account and the investment
divisions in the same proportion that the Policy's cash value in each such
option bears to the total cash value of the Policy in the Fixed Account and the
investment divisions.
We may withhold payment of surrender, withdrawal or loan proceeds if any
portion of those proceeds would be derived from a check that has not yet
cleared (I.E., that could still be dishonored by your banking institution). We
may use telephone, fax, Internet or other means of communications to verify
that payment from the 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. You 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.
44
Before surrendering your Policy or requesting a partial withdrawal, you should
consider the following:
.. Amounts received may be taxable as income and, if your Policy is a modified
endowment contract, subject to certain tax penalties. (See "Tax
Matters--Modified Endowment Contracts.")
.. Your Policy could become a modified endowment contract.
.. For partial withdrawals, your death benefit will decrease, generally by the
amount of the withdrawal.
.. For partial withdrawals, your specified face amount may also decrease. For
Option A Policies, your specified face amount will decrease by the amount of
the withdrawal. For Option B Policies, a withdrawal will not decrease the
specified face amount. For Option C Policies, your specified face amount
will decrease by the amount, if any, by which cumulative withdrawals exceed
cumulative premiums paid.
In some cases you may be better off taking a Policy loan, rather than a partial
withdrawal.
BENEFIT AT FINAL DATE
The Final Date is the Policy anniversary on which the insured is Age 95.
Subject to certain conditions, we will allow you to extend that date where
permitted by state law. If the insured is living on the Final Date, we will pay
you the cash surrender value of the Policy. You can receive the cash surrender
value in a single sum, in an account that earns interest, or under an available
income plan.
LOAN PRIVILEGES
[SIDEBAR: YOU CAN BORROW FROM US AND USE YOUR POLICY AS SECURITY FOR THE LOAN.]
The amount of each loan must be:
.. At least $250.
.. No more than the greater of the cash surrender value less two monthly
deductions and 75% of the cash surrender value (unless state law requires a
different percentage to be applied, as set forth in your Policy) when added
to all other outstanding Policy loans.
As of your loan request's Date of Receipt, we will:
.. Remove an amount equal to the loan from your cash value in the Fixed Account
and each investment division of the Separate Account in the same proportion
as the Policy's cash value in each such option bears to the total cash value
of the Policy in the Fixed Account and the investment divisions.
.. Transfer such cash value to the Policy loan account, where it will be
credited with interest at a rate equal to the loan rate charged less a
percentage charge, based on expenses associated with Policy loans,
determined by us. This percentage charge will not exceed 2%, and the minimum
rate we will credit to the Policy Loan Account will be 2.5% per year (4% for
Policies issued prior to February 24, 2012). At least once a year, we will
transfer any interest earned in your Policy loan account to the Fixed
Account and the investment divisions, according to the way that we then
allocate your net premiums.
.. Charge you interest, which will accrue daily. We will tell you the initial
interest rate that applies to your loan and mail you advance notices of any
increases applicable to existing loans. The interest rate charged for a
Policy year will never be more than the maximum allowed by law and will
generally be the greater of:
.. The published monthly average for the calendar month ending two months
before the start of such year; and
.. The guaranteed rate used to credit interest to the cash value allocated to
the Fixed Account for the Policy, plus no more than 1%.
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The published monthly average means (a) Moody's Corporate Bond Yield Average
Monthly Average Corporates, as published by Moody's Investors Service, Inc. or
any successor service; or (b) If the Moody's average is not published, a
substantially similar average established by regulation issued by the insurance
supervisory official of the state in which your Policy is delivered.
Your interest payments are due at the end of each Policy year and if you don't
pay the amount within 31 days after it is due, we will treat it as a new Policy
loan, which will be taken from the Fixed Account and the investment divisions
by the same method as other loans.
Repaying your loans (plus accrued interest) is done by sending in payments at
least equal to $25. You should designate whether a payment is intended as a
loan repayment or a premium payment, since we will treat any payment for which
no designation is made as a premium payment. We will allocate your repayment to
the Fixed Account and the investment divisions, in the same proportion that net
premiums are then allocated, except that amounts borrowed from the Fixed
Account will be repaid to the Fixed Account first.
Before taking a Policy loan you should consider the following:
.. Interest payments on loans are generally not deductible for tax purposes.
.. Under certain situations, Policy loans could be considered taxable
distributions.
.. Amounts held in your Policy loan account do not participate in the
investment experience of the investment divisions or receive the interest
rate credited to the Fixed Account, either of which may be higher than the
interest rate credited on the amount you borrow.
.. If you surrender your Policy or if we terminate your Policy, or at the Final
Date, any outstanding loan amounts (plus accrued interest) will be taxed as
a distribution. (See "Federal Tax Matters--Loans" below.)
.. A Policy loan increases the chances of our terminating your Policy due to
insufficient cash value. We will terminate your Policy with no value if: (a)
on a monthly anniversary your loans (plus accrued interest) exceed your cash
value minus the monthly deduction; and (b) we tell you of the insufficiency
and you do not make a sufficient payment within 61 days of the monthly
anniversary.
.. Your Policy's death proceeds will be reduced by any unpaid loan (plus any
accrued and unpaid loan interest).
OPTIONAL RIDER BENEFITS
You may be eligible for certain benefits provided by rider, subject to certain
underwriting requirements and the payment of additional premiums. We will
deduct any charges for the rider(s) (other than the charge for the interim term
insurance rider) as part of the monthly deduction. Generally, we currently make
the following benefits available by rider:
. Accelerated Death . Term Insurance
Benefit/1/ Benefit/2/
-----------------------------------------------------
. Interim Term Insurance . Enhanced Cash
Benefit Surrender Value
Rider/3/
-----------------------------------------------------
--------
/1/ Payment under this rider may affect eligibility for benefits under state or
federal law. This rider is currently not available in New Jersey.
/2/ This rider is discussed in more detail under "Term Benefit" below.
/3/ This rider may be attached at issue if you request it, but not thereafter.
46
Each rider contains important information, including limits and conditions that
apply to the benefits. If you decide to purchase any of the riders, you should
carefully review their provisions to be sure the benefit is something that you
want. These riders may not be available in all states.
You should also consider:
.. That the addition of certain riders can restrict your ability to exercise
certain rights under the Policy.
.. That the amount of benefits provided under the rider is not based on
investment performance of a separate account; but, if the Policy terminates
because of poor investment performance or any other reason, the riders
generally will also terminate.
.. That there are tax consequences. You should also consult with your tax
advisor before purchasing one of the riders.
TERM BENEFIT
You have the flexibility to include, at Policy issue, a rider that provides a
term benefit ("Term Rider"). The availability of the Term Rider is also subject
to governmental approval in your state.
The Term Rider is a rider to the Policy that, like the base Policy, provides
coverage on the insured to age 95. You may purchase this rider, if available,
only at Policy issue. Nevertheless, if you purchase the Term Rider, the amount
of coverage under the rider will automatically increase and decrease with any
changes to your specified face amount under the Policy, so that the ratio
between the Policy's specified face amount and the amount of Term Rider
coverage will always remain the same as you originally selected.
In almost all respects, coverage taken under the Term Rider has exactly the
same effect as coverage taken as specified face amount under the Policy. An
important difference, however, is that the sales charge depends on the amount
of the coverage provided under the base policy. The amount of Term Rider will
impact the sales charge. Thus, in comparing two Policies with identical total
insurance amounts, the one with the greater portion provided by the Term Rider
will have a lower sales charge. Conversely, the Policy with the higher amount
provided under the base policy will have a higher sales charge.
Additionally, the cost of term insurance rates currently applicable to coverage
provided under the Term Rider are lower than those currently charged for
coverage under the base policy. Therefore, the larger the portion of coverage
provided under the Term Rider, the lower the overall cost of insurance. Again
comparing two Policies with identical total insurance amounts, the cost of
insurance will be lower under the Policy with the higher portion of coverage
provided under the Term Rider.
To summarize, the lower sales charge and lower anticipated current cost of term
insurance rates resulting from a greater portion of total coverage provided by
the Term Rider will result in better overall performance under the Policy. You
may elect to have up to 95% of your total coverage provided by the Term Rider.
We are able to make these favorable terms available under the Term Rider
largely because our costs of selling it (principally the commissions we pay)
are lower than under the base policy. See "Sales of Policies".
47
CHARGES AND DEDUCTIONS
IMPORTANT INFORMATION APPLICABLE TO ALL POLICY CHARGES AND DEDUCTIONS
[SIDEBAR: CAREFULLY REVIEW THE FEE TABLES IN THIS PROSPECTUS WHICH SET FORTH
THE CHARGES THAT YOU PAY UNDER YOUR POLICY.]
The charges discussed in the paragraphs that follow are all included in the Fee
Tables on pages 9 to 21 of this Prospectus. You should refer to these Fee
Tables for information about the rates and amounts of such charges, as well as
other information that is not covered below.
The Policy charges compensate us for the services and benefits we provide, the
costs and expenses we incur, and the risks we assume.
Services and benefits we . the death benefit, cash, and loan benefits under
provide: 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 term insurance charges we may
deduct are insufficient to meet our actual
claims because the insureds die sooner than we
estimate
. that the charges of providing the services and
benefits under the Policies exceed the charges
we deduct
We may profit from the charges, including the cost of term insurance charge and
the mortality and expense risk charge. Any distinctions we make about the
specific purposes of the different charges are imprecise, and we are free to
keep and use our revenues or profits for any other purpose, including paying
any of our costs and expenses in connection with the Policies. Our revenues
from any particular charge may be more or less than any costs or expenses that
charge may be intended primarily to cover. The following sets forth additional
information about Policy charges.
48
CHARGES DEDUCTED FROM PREMIUMS
ANNUAL TARGET PREMIUM: We use the concept of annual target premium to
determine certain limits on sales and administrative charges (discussed
immediately below). We define the annual target premium to be:
For Policies issued prior to May 1, 1996 or issued in connection with
certain employer sponsored plans that became effective prior to August 1,
2000, 50% of the estimated annual amount which satisfied the 7-Pay test
under federal tax law based on the issue age of the insured and the initial
specified face amount. (See "Federal Tax Matters--Modified Endowment
Contracts".)
For all other Policies, 100% of the estimated annual amount that satisfied
the 7-Pay test based on the issue age of the insured, the specified face
amount of insurance of the base Policy only (excluding the Term Rider) and
standard underwriting class. For such Policies, the annual target premium
amount is increased and decreased proportionately for increases and
decreases in the specified face amount of the Policy. This could, in turn,
increase or decrease sales and administrative charges.
SALES CHARGE: We deduct this charge primarily to help pay the cost of
compensating sales representatives and other direct and indirect expenses of
distributing the Policies. The charge is assessed directly against each
premium. For premiums received in Policy years 1 through 10, the current rate
is up to 6.5% of the premium paid until the total payments in each such year
equal the annual target premium, and for Policy years 11 and later the rate we
charge is up to 3% of each premium until the total payments in the year equal
the annual target premium. No sales charge is or will be assessed against any
premiums paid in any Policy year in excess of a total equal to the annual
target premium. The maximum rate we can charge for premiums received up to a
total equal to the annual target premium during Policy years 1 through 10 is
9%, and the maximum for Policy years 11 and later is the same as currently
charged in those years.
ADMINISTRATIVE CHARGE: We incur expenses in the administration of the Policy,
including our underwriting and start-up expenses. We deduct up to 1.05%
(currently, this deduction is .55% in Policy years 1-10) of each premium
payment primarily to cover this expense up to a total of payments in any Policy
year equal to the annual target premium, and .05% on any excess payments in any
Policy year exceeding that total amount. Our charge will never exceed this rate.
CHARGE FOR AVERAGE EXPECTED STATE AND LOCAL TAXES ATTRIBUTABLE TO PREMIUMS: We
make this charge to reimburse us for the state premium taxes that we must pay
on premiums we receive. Premium taxes vary from state to state and currently
range from 0 to 3.5%. Our charge of 2.25% approximates the average tax rate we
expect to pay on premiums we receive from all states.
CHARGE FOR EXPECTED FEDERAL TAXES ATTRIBUTABLE TO PREMIUMS: Federal income tax
law requires us to pay certain amounts of taxes that are related to the amount
of premiums we receive. We deduct 1.2% of each premium payment to offset the
cost to us of those additional taxes, which may be more or less than the amount
we pay in respect of your premiums.
49
CHARGE FOR INTERIM TERM INSURANCE BENEFIT: This charge is deducted only from
your initial premium payment, and only if you elect the interim term insurance
benefit. The interim term insurance benefit provides temporary initial life
insurance coverage on the insured prior to the time that coverage under the
Policy takes effect. This coverage is provided by adding a "rider" and is
subject to several conditions and limitations. The charge for this benefit is
described in the rider form. This charge is primarily to compensate us for the
risk that the insured will die while coverage under this rider is in force.
LOAN INTEREST SPREAD: We charge interest on Policy loans but credit you with
interest on the amount of the cash value we hold as collateral for the loan.
The loan interest spread is the excess of the interest rate we charge over the
interest rate we credit. This charge is primarily to cover our expense in
providing the loan. The charge is guaranteed to never exceed 2%.
CHARGES INCLUDED IN THE MONTHLY DEDUCTION
We allocate the monthly deduction (except for the monthly mortality and expense
risk charge) among the Fixed Account and each investment division of the
Separate Account in the same proportion as the Policy's cash value in each such
option bears to the total cash value of the Policy in the Fixed Account and the
investment divisions. We deduct the monthly deductions as of each monthly
anniversary, commencing with the Date of Policy.
.. COST OF TERM INSURANCE. This charge varies monthly based on many factors.
Each month, we determine the charge by multiplying your cost of insurance
rates by the term insurance amount. This is the amount that we are at risk
if the insured dies.
The term insurance amount is the death benefit at the beginning of the Policy
month divided by a discount factor to account for an assumed return during
the month; minus the cash value at the beginning of the Policy month after
deduction of all other applicable charges. Factors that affect the term
insurance amount include the specified face amount, the cash value and the
death benefit option you choose (generally, the term insurance amount will be
higher for Options B and C).
The term insurance rate is based on our expectations as to future experience,
taking into account the insured's sex (if permitted by law and applicable
under your Policy), age, underwriting class and rate class. The rates will
never exceed the guaranteed rates. The guaranteed rates are based on certain
2001 Commissioners Standard Ordinary Mortality Tables. For Policies issued
prior to January 1, 2009, the guaranteed rates are based on the corresponding
1980 Commissioners Standard Ordinary Mortality Tables. Our current rates are
lower than the maximums in most cases. We review our rates periodically and
may adjust them, but we will apply the same rates to everyone who has had
their Policy for the same amount of time and who is the same age, sex and
rate class. As a general rule, the cost of insurance rate increases each year
you own your Policy, as the insured's age increases.
Rate class relates to the level of mortality risk we assume with respect to
an insured. It can be the standard rate class, or one that is higher (and may
be divided by smoking status). The insured's rate class will affect your cost
of term insurance.
You can also have more than one rate class in effect, if the insured's rate
class has changed and you change your specified face amount. A better rate
50
class will lower the cost of term insurance on your entire Policy and a worse
rate class will affect the portion of your cost of term insurance charge
attributable to the specified face amount increase.
.. MORTALITY AND EXPENSE RISK CHARGE. We make this monthly charge primarily to
compensate us for mortality risks that insureds may live for a shorter
period than we expect; and expense risks that our issuing and administrative
expenses may be higher than we expect. This monthly charge is allocated
proportionately to the cash value in each investment division of the
Separate Account. The maximum rate we may charge is equivalent to an
effective annual rate of .90% of the cash value in the Separate Account.
CHARGES FOR CERTAIN OPTIONAL RIDER BENEFITS
The charge for an optional benefit that you add by rider to your Policy will
generally be deducted as part of the monthly deduction. This includes the
charge for the following rider:
.. Term Benefit
The purpose of the charge for each rider is primarily to compensate us for our
direct and indirect costs and risks in providing that rider. The charge we
deduct for any such additional benefits you can add by rider is described in
the rider form.
VARIATIONS IN CHARGES
We may vary a charge by group, based on anticipated variations in our costs or
risks associated with the group or individuals in the group that the charge was
intended to cover. Our variations in the charges will be made in accordance
with our established and uniformly applied administrative procedures. We
consider a variety of factors in determining charges, including but not limited
to:
.. The nature of the group and its organizational framework
.. The method by which sales will be made to the individuals associated with
the group
.. The facility by which premiums will be paid
.. The group's capabilities with respect to administrative tasks
.. Our anticipated persistency of the Policies
.. The size of the group and the number or years it has been in existence
.. The aggregate amount of premiums we expect to be paid on the Policies owned
by the group or by individuals associated with the group
Any variations in charges will be reasonable and will not be unfairly
discriminatory to the interests of any Policy owner.
PORTFOLIO COMPANY CHARGES
Each of the Portfolios pays an investment management fee to its investment
manager. Each Portfolio also incurs other direct expenses. See the fuller
description contained in the Fee Table section of this Prospectus (also see the
Fund Prospectus and Statement of Additional Information referred to therein for
each Fund). You bear indirectly your proportionate share of the fees and
expenses of the Portfolios of each Fund that correspond to the Separate Account
investment divisions you are using.
51
OTHER CHARGES
ADDITIONAL TAXES. In general, we don't expect to incur federal, state or local
taxes upon the earnings or realized capital gains attributable to the assets in
the Separate Account relating to the cash surrender value of the Policies. If
we do incur such taxes, we reserve the right to charge cash value allocated to
the Separate Account for these taxes.
CASH VALUE TRANSFERS. We do not currently charge for any transfer amounts.
Except for transfers under Systematic Investment Strategies, we reserve the
right to assess up to a $25 charge in the future against all transfers.
Currently, transfers are not taxable transactions.
POLICY TERMINATION AND REINSTATEMENT
TERMINATION: We will terminate your Policy without any cash surrender value if:
.. The cash surrender value is less than the monthly deduction; and
.. We do not receive a sufficient premium payment within the 61-day grace
period to cover the monthly deduction. We will mail you notice if any grace
period starts.
REINSTATEMENT: Upon your request, we will reinstate your Policy (without
reinstating any amounts in a Policy loan account), subject to certain terms and
conditions that the Policy provides. We must receive your request within 3
years (or any longer period required by state law) after the end of the grace
period and before the Final Date. You also must provide us:
.. A written application for reinstatement (the date we approve the application
will be the effective date of the reinstatement).
.. Evidence of insurability that we find satisfactory.
.. An additional premium amount that the Policy prescribes for this purpose.
FEDERAL TAX MATTERS
[SIDEBAR: YOU SHOULD CONSULT WITH YOUR OWN TAX ADVISOR TO FIND OUT HOW TAXES
CAN AFFECT YOUR BENEFITS AND RIGHTS UNDER YOUR POLICY.]
The following is a brief summary of some tax rules that may apply to your
Policy. Such discussion does not purport to be complete or to cover every
situation. You must consult with and rely on the advice of your own tax or
ERISA counsel, especially where the Policy is being purchased in connection
with an employee benefit plan, such as a death benefit or deferred compensation
plan, or is being purchased for estate, tax planning or similar purposes. You
should also consult with your own tax advisor to find out how taxes can affect
your benefits and rights under your Policy. Such consultation is especially
important before you make unscheduled premium payments, change your specified
face amount, change your death benefit option, change coverage provided by
riders, take a loan or withdrawal, or assign or surrender the Policy. 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.
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.
52
INSURANCE PROCEEDS
.. Insurance proceeds are generally excludable from your beneficiary's gross
income to the extent provided in Section 101 of the Internal Revenue Code.
.. 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.
.. The death proceeds may be subject to federal estate tax: (i) if paid to the
insured's estate or (ii) if paid to a different beneficiary if the insured
possessed incidents of ownership at or within three years before death.
.. If you die before the insured, the value of your Policy (determined under
IRS rules) is included in your estate and may be subject to federal estate
tax.
.. Whether or not any federal estate tax is due is based on a number of factors
including the estate size. Please consult your tax adviser for the
applicable estate tax rates.
.. The insurance proceeds payable upon death of the insured will never be less
than the minimum amount required for the Policy issued on a standard risk
basis to be treated as life insurance under Section 7702 of the Internal
Revenue Code, as in effect on the date the Policy was issued. The rules with
respect to Policies issued on a substandard risk basis are not entirely
clear.
CASH VALUE (IF YOUR POLICY IS NOT A MODIFIED ENDOWMENT CONTRACT)
.. You are generally not taxed on your cash value until you withdraw it or
surrender your Policy or receive a distribution (such as on the Final Date).
In these cases, you are generally permitted to take withdrawals and receive
other distributions up to the amount of premiums paid without any tax
consequences. However, withdrawals and other distributions will be subject
to income tax after you have received amounts equal to the total premiums
you paid. Somewhat different rules may apply if there is a death benefit
reduction in the first 15 Policy years, when a distribution may be subject
to tax on an income-out-first basis if there is a gain in your Policy (which
is generally when your cash value exceeds the cumulative premiums you paid).
Finally, if your Policy is part of an equity split dollar arrangement taxed
under the economic benefit regime, you should consult a tax adviser to see
whether any portion of the cash value will be taxed prior to any Policy
distribution.
LOANS
.. Loan amounts you receive will generally not be subject to income tax, unless
your Policy is or becomes a modified endowment contract, is exchanged or
terminates.
.. Interest on loans is generally not deductible. For businesses that own a
Policy, at least part of the interest deduction unrelated to the Policy may
be disallowed unless the insured is a 20% owner, officer, director or
employee of the business.
.. If your Policy terminates (upon surrender, cancellation, lapse, the Final
Date or, in most cases, exchanges) while any Policy loan is outstanding, the
amount of the loan plus accrued interest thereon will be deemed to be a
"distribution" to you.
53
Any such distribution will have the same tax consequences as any other Policy
distribution. Thus, there will generally be federal income tax payable on the
amount by which withdrawals and loans exceed your remaining basis in the
Policy. In the case of an exchange, any outstanding Policy loan will
generally be taxed to the extent of any Policy gain. Please be advised that
amounts borrowed and withdrawn reduce the Policy's cash value and any
remaining Policy cash value may be insufficient to pay the income tax on your
gains.
MODIFIED ENDOWMENT CONTRACTS
These contracts are life insurance contracts where the premiums paid during the
first 7 years after the Policy is issued, or after a material change in the
Policy, exceed tax law limits referred to as the "7-pay test." Material changes
in the Policy include changes in the level of benefits and certain other
changes to your Policy after the issue date. Reductions in benefits during a
7-pay period also may cause your Policy to become a modified endowment
contract. Generally, a life insurance policy that is received in exchange for a
modified endowment contract will also be considered a modified endowment
contract. The IRS has promulgated a procedure for the correction of inadvertent
modified endowment contracts.
Due to the flexibility of the Policies as to premiums and benefits, the
individual circumstances of each Policy will determine whether it is classified
as a MEC.
If your Policy is considered a modified endowment contract the following
applies:
.. The death benefit will still generally be income tax free to your
beneficiary, to the extent discussed above.
.. Amounts withdrawn or distributed before the insured's death, including
(without limitation) loans, assignments and pledges, are treated as income
first and subject to income tax (to the extent of any gain in your Policy).
All modified endowment contracts you purchase from us and our affiliates
during the same calendar year are treated as a single contract for purposes
of determining the amount of any such income.
.. An additional 10% income tax generally applies to the taxable portion of the
amounts received before age 591/2 except generally if you are disabled or if
the distribution is part of a series of substantially equal periodic
payments made over life expectancy. The foregoing exceptions to the 10% MEC
additional tax generally does not apply to a corporate owned Policy.
.. If a Policy becomes a modified endowment contract, distributions that occur
during the Policy year 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.
DIVERSIFICATION
In order for your Policy to qualify as life insurance, we must comply with
certain diversification standards with respect to the investments underlying
the Policy. We believe that we satisfy and will continue to satisfy these
diversification standards. Inadvertent failure to meet these standards may be
able to be corrected. Failure to meet these standards would result in immediate
taxation to Policy owners of gains under their Policies. If Portfolio shares
are sold directly to tax-qualified retirement plans that later lose their
tax-qualified status, or to non-qualified plans, there could be adverse
consequences under the diversification rules.
54
INVESTOR CONTROL
In some circumstances, owners of variable policies who retain excessive control
over the investment of the underlying Separate Account assets may be treated as
the owners of those assets and may be subject to tax on income produced by
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 an owner of the assets in our Separate Account. 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.
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 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
55
transfer taxes or otherwise modify the estate tax or generation-skipping
transfer tax rules for years after 2012. Absent Congressional action, the law
governing estate, gift and generation-skipping transfer taxes will revert on
January 1, 2013 to the law that was in place on June 7, 2001.
The complexity of the tax law, along with uncertainty as to how it might be
modified 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.
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 Policy purchase.
BUSINESS USES OF POLICY
Businesses can use the Policies in various arrangements, including nonqualified
deferred compensation or salary continuation 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.
There may be an indirect tax upon the income in the Policy or the proceeds of a
Policy under the Federal corporate alternative minimum tax, if you are subject
to that tax.
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.
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 exchanges in the
United States, 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 as applying to split-dollar
life insurance policies for directors and executive officers of such companies,
since at least some 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.
56
Split dollar insurance plans that provide deferred compensation may be subject
to rules governing deferred compensation arrangements. Failure to adhere to
these rules will result in adverse tax consequences. A tax adviser should be
consulted with respect to such plans.
In the case of a business-owned Policy, the provisions of Section 101(j) of the
Code may limit the amount of the death benefit excludable from gross income
unless a specified exception applies and a notice and consent requirement is
satisfied, as discussed above.
CHANGES TO TAX RULES AND INTERPRETATIONS
Changes in applicable tax rules and interpretations can adversely affect the
tax treatment of your Policy. These changes may take effect retroactively. We
reserve the right to amend the Policy in any way necessary to avoid any adverse
tax treatment. Examples of changes that could create adverse tax consequences
include:
.. Possible taxation of cash value transfers between investment funds.
.. Possible taxation as if you were the owner of your allocable portion of the
Separate Account's assets.
.. Possible limits on the number of investment funds available or the frequency
of transfers among them.
.. Possible changes in the tax treatment of Policy benefits and rights.
To the extent permitted under the federal tax law, we may claim the benefit of
certain foreign tax credits attributable to taxes paid by certain Funds to
foreign jurisdictions.
THE COMPANY'S INCOME TAXES
Under current federal income tax law we are not taxed on the Separate Account's
operations. Thus, currently we do not deduct a charge from the Separate Account
for company federal income taxes. (We do deduct a charge for federal taxes from
premiums.) We reserve the right to charge the Separate Account for any future
federal income taxes we may incur. Under current laws 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.
We may be entitled to certain tax benefits related to the assets of the
Separate Account. These tax benefits which may include foreign tax credits and
corporate dividends received deductions, are not passed back to the Separate
Account or to Policy owners since we are the owner of the assets from which the
tax benefits are derived.
RIGHTS WE RESERVE
We reserve the right to make certain changes if we believe the changes are in
the best interest of our Policy owners or would help carry out the purposes of
the Policy. We will make these changes in the manner permitted by applicable
law and only after getting any necessary owner and regulatory approval. We will
notify you of any changes that result in a material change in the underlying
investments in the investment divisions, and you will have a chance to transfer
out of the affected division (without charge). Some of the changes we may make
include:
.. Operating the Separate Account in any other form that is permitted by
applicable law.
.. Changes to obtain or continue exemptions from the 1940 Act.
57
.. Transferring assets among investment divisions or to other separate
accounts, or our general account or combining or removing investment
divisions from the Separate Account.
.. Substituting Fund shares in an investment division for shares of another
portfolio of a Fund or another fund or investment permitted by law.
.. Changing the way we assess charges without exceeding the aggregate amount of
the Policy's guaranteed maximum charges.
.. Making any necessary technical changes to the Policy to conform it to the
changes we have made.
Some such changes might require us to obtain regulatory or Policy owner
approval. Whether regulatory or Policy owner approval is required would depend
on the nature of the change and, in many cases, the manner in which the change
is implemented. You should not assume, therefore, that you necessarily will
have an opportunity to approve or disapprove any such changes. Circumstances
that could influence our determination to make any change might include changes
in law or interpretations thereof; changes in financial or investment market
conditions; changes in accepted methods of conducting operations in the
relevant market; or a desire to achieve material operating economies or
efficiencies.
OTHER POLICY PROVISIONS
[SIDEBAR: CAREFULLY REVIEW YOUR POLICY, WHICH CONTAINS A FULL DISCUSSION OF ALL
ITS PROVISIONS.]
FREE LOOK PERIOD
You can return the Policy during this period. The period ends on the later of:
.. 10 days after you receive the Policy (unless state law requires a longer
period); and
.. the date we receive a receipt signed by you.
If you return your Policy, we will send you a complete refund of any premiums
paid (or cash value plus any charges deducted if state law requires) within
seven days.
FOR POLICIES ISSUED IN CALIFORNIA: If you are age 60 or older, you may cancel
the Policy within 30 days after you receive it. If you elected on the Policy
application to allocate 100% of your initial net premium to the BlackRock Money
Market investment division, we will refund the premiums you paid; if you
elected to allocate your initial net premium to the other investment divisions
and/or the Fixed Account, we will refund the Policy's cash value.
SUICIDE
If the insured commits suicide within the first two Policy years (or any other
period required by state law), your beneficiary will receive all premiums paid
(without interest), less any outstanding loans (plus accrued interest) and
withdrawals taken. Similarly, we will pay the beneficiary only the cost of any
increase in specified face amount if the insured commits suicide within two
years of such increase.
ASSIGNMENT AND CHANGE IN OWNERSHIP
You can assign your Policy as collateral if you notify us in writing. The
assignment or release of the assignment is effective when it is recorded at
the Designated Office. We are not responsible for determining the validity of
the assignment or its release. Also, there could be serious adverse tax
consequences to you or your beneficiary, so you should consult with your tax
adviser before making any change of ownership or other assignment.
58
REPORTS
Generally, you will promptly receive statements confirming your significant
transactions such as:
.. Change in specified face amount.
.. Change in death benefit option.
.. Transfers among investment divisions (including those through Systematic
Investment Strategies, which are confirmed quarterly).
.. Partial withdrawals.
.. Loan amounts you request.
.. Loan repayments and premium payments.
If your premium payments are made through a systematic payment method, we will
not send you any confirmation in addition to the one you receive from your
employer.
We will also send you an annual statement within 30 days after a Policy year.
That statement will summarize the year's transactions and include information
on:
.. Deductions and charges.
.. Status of the death benefit.
.. Cash and cash surrender values.
.. Amounts in the investment divisions and Fixed Account.
.. Status of Policy loans.
.. Automatic loans to pay interest.
.. Information on your modified endowment contract status (if applicable).
We will also send you a Fund's annual and semi-annual reports to shareholders.
WHEN YOUR REQUESTS BECOME EFFECTIVE
Generally, requests, premium payments and other instructions and notifications
are effective on the Date of Receipt. In those cases, the effective time is at
the end of the Valuation Period during which we receive them at our Designated
Office. (Some exceptions to this general rule are noted below and elsewhere in
this Prospectus.)
A Valuation Period is the period between two successive Valuation Dates. It
begins at the close of regular trading on the New York Stock Exchange on a
Valuation Date and ends at the close of regular trading on the New York Stock
Exchange on the next succeeding Valuation Date. The close of regular trading is
4:00 p.m., Eastern Time on most days.
Valuation Date is each day on which the New York Stock Exchange is open for
trading.
Accordingly, if we receive your request, premium, or instructions after the
close of regular trading on the New York Stock Exchange, 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, premium, or instructions 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 end of the free look period is the effective time of the premium allocation
instructions you make in your Policy application (and any changes in allocation
or transfer requests you make on or before the end of the free look period).
59
Your Investment Start Date is the date the first net premium is applied to the
Fixed Account and/or the Separate Account and is the later of (1) the Date of
Policy and (2) the Date of Receipt of your first premium payment.
The effective date of your Systematic Investment Strategies will be that set
forth in the strategy chosen.
THIRD PARTY REQUESTS
Generally, we accept requests for transactions or information only from you.
Therefore, we reserve the right not to process transactions requested on your
behalf by your agent with a power of attorney or any other authorization. This
includes processing transactions by an agent you designate, through a power of
attorney or other authorization, who has the ability to control the amount and
timing of transfers for a number of other Policy owners, and who simultaneously
makes the same request or series of requests on behalf of other Policy owners.
EXCHANGE PRIVILEGE
If you decide that you no longer want to take advantage of the investment
divisions in the Separate Account, you may transfer all of your money into the
Fixed Account. No charge will be imposed on a transfer of your entire cash
value (or the cash value attributable to a specified face amount increase) to
the Fixed Account within the first 24 Policy months (or within 24 Policy months
after a specified face amount increase you have requested, as applicable). In
some states, in order to exercise your exchange privilege, you must transfer,
without charge, the Policy cash value (or the portion attributable to a
specified face amount increase) to a flexible premium fixed benefit life
insurance policy that we make available.
SALES OF POLICIES
MetLife Investors Distribution Company ("MLIDC") is the principal underwriter
and distributor of the Policies. MLIDC, which is our affiliate, is registered
under the Securities Exchange Act of 1934 (the "'34 Act") as a broker-dealer
and is a member 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.
The Policies are sold through licensed life insurance sales representatives who
are associated with MetLife Securities, Inc. ("MSI"), our affiliate, or with
our other affiliated broker-dealers, New England Securities Corporation, Walnut
Street Securities, Inc. and Tower Square Securities, Inc. MSI and our other
affiliated broker-dealers are registered with the SEC as broker-dealers under
the '34 Act and are also members of FINRA. The Policies may also be sold
through licensed life insurance sales representatives associated with
unaffiliated broker-dealers with which MLIDC enters into a selling agreement.
We reimburse MLIDC for expenses MLIDC incurs in distributing the Policies,
e.g., commissions payable to broker-dealers who sell the Policies, including
our affiliated broker-dealers. The payments described below do not
60
result in a charge against the Policy in addition to the charges already
described elsewhere in this prospectus. We may require all or part of the
compensation to be returned to us if you do not continue the Policy for at
least five years.
MetLife sales representatives are sales representatives registered through MSI.
MetLife sales representatives may be career sales representatives who are
employees of MetLife or brokers who are not employees of MetLife. A MetLife
sales representative, or a sales representative of our affiliate New England
Securities Corporation ("NES"), receives cash payments for the products the
representative sells and services based on a "gross dealer concession" model.
The gross dealer concession for the Policies varies based on the Policy year
and on whether the amount of premiums paid in a Policy year is greater or less
than the Policy's Target Premium. The Target Premium is shown in your Policy.
In the first Policy year, the gross dealer concession is 28% of premiums paid
up to the amount of the Target Premium, and 2.5% of premiums paid in excess of
the Target Premium; in Policy years 2 through 4, the gross dealer concession is
8.25% of premiums paid up to the amount of the Target Premium and 2.5% of any
excess; in Policy year 5 and later, the gross dealer concession is 2.5% of all
premiums paid; and in Policy year 8 and thereafter a gross dealer concession of
0.1% is paid on the Policy's cash value. A sales representative may be entitled
to all or a portion of the gross dealer concession for selling and servicing
the Policy based on a formula that takes into consideration the amount of
proprietary products that the sales representative sells and services.
Proprietary products are products issued by us and our affiliates. Because
sales of proprietary products are a factor in determining the percentage of
gross dealer concession to which a sales representative is entitled, sales
representatives have an incentive to favor the sale of the Policies over other
similar products issued by non-affiliates.
For Policies sold by representatives of other affiliated and unaffiliated
broker dealers, MLIDC pays commissions to the broker-dealer with which the
representative is registered. The commissions paid to the broker-dealer are
generally not expected to exceed, on a present value basis, the aggregate
amount of compensation that is paid with respect to sales made through our
sales representatives. (Total compensation includes payments that we make to
our business unit or the business unit of our affiliate that is responsible for
the operation of the distribution systems though which the Policy is sold.)
Broker-dealers pay their sales representatives all or a portion of the
commissions received for their sales of the Policies. The portion of the
commissions that the broker-dealer passes through to its sales representatives
is determined in accordance with the broker-dealer's internal compensation
program.
MetLife sales representatives and their managers (and the sales representatives
and managers of our affiliates) may also be eligible for cash compensation such
as bonuses, equity awards (for example, stock options), training allowances,
supplemental salary, financing arrangements, marketing support, medical and
other insurance benefits, retirement benefits, non-qualified deferred
compensation plans and other benefits. The amount of this additional cash
compensation is based primarily on the amount of proprietary products sold.
Sales representatives must meet a minimum level of sales of proprietary
products in order to maintain their employment status with us 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. Receipt of this additional cash
61
compensation may provide sales representatives and their managers with an
incentive to favor the sale of proprietary products over similar products
issued by non-affiliates.
MetLife 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 products. These services may include the recruitment and
training of personnel, production of promotional literature, and similar
services.
MLIDC also enters into selling agreements with other unaffiliated
broker-dealers for the sale of the Policies and other variable insurance
products, i.e., annuity contracts and life insurance policies, that we and our
affiliates issue. MLIDC may pay additional compensation to certain of these
broker-dealers, including marketing allowances, introduction fees, persistency
payments, preferred status fees and industry conference fees. Marketing
allowances are periodic payments to certain broker-dealers based on cumulative
periodic (usually quarterly) sales or account and cash values of these variable
insurance products. They may also include payments we make to cover the cost of
marketing or other support services provided for or by registered
representatives who may sell our products. Introduction fees are payments to
broker-dealers in connection with the addition of these variable products to
the broker-dealer's line of investment products, including expenses relating to
establishing the data communications systems necessary for the broker-dealer 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 broker-dealers' 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 broker-dealers' sales representatives.
The additional types of compensation discussed above are not offered to all
broker-dealers. The terms of any particular agreement governing compensation
may vary among broker-dealers and the amounts may be significant. We and MLIDC
may enter into similar arrangements with our affiliates MSI, New England
Securities Corporation, Walnut Street Securities, Inc. and Tower Square
Securities, Inc. The prospect of receiving, or the receipt of, additional
compensation as described above may provide broker-dealers 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
broker-dealer 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 broker-dealer for which he or she works may receive in connection with your
purchase of a Policy.
We retain consultants who provide technical training and sales support to
MetLife and our other affiliated sales representatives with respect to certain
business planning strategies that may involve the sale of life insurance. We
pay these consultants fees that are not conditioned on the sale of any
62
insurance products. These consultants may also provide services directly to our
clients for a fee.
We pay American Funds Distributors, Inc., the principal underwriter for the
American Funds Insurance Series, a percentage of all premiums allocated to the
American Funds Growth Fund, the American Funds International Fund, the American
Funds High-Income Bond Fund and the American Funds U.S. Government/AAA Rated
Securities Fund for the services it provides in marketing the Portfolios'
shares in connection with 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, 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.
63
FINANCIAL STATEMENTS
The financial statements comprising each of the Investment Divisions of the
Separate Account are attached to this Prospectus. You can find the financial
statements of MetLife in the Statement of Additional Information. Our financial
statements should be considered only as bearing upon our ability to meet our
obligations under the Policy.
64
APPENDIX A
ADDITIONAL INFORMATION REGARDING THE FUNDS
Certain Portfolios and Funds were subject to a merger or other change. The
chart below identifies the former name and new name of these Portfolios, and
where applicable, the former name and new name of the Fund of which the
Portfolio is a part.
PORTFOLIO NAME CHANGES
FORMER NAME NEW NAME
-------------------------------------------- -------------------------------------------------
METROPOLITAN SERIES FUND, INC. METROPOLITAN SERIES FUND
Artio International Stock Portfolio Baillie Gifford International Stock Portfolio
Morgan Stanley EAFE(R) Index Portfolio MSCI EAFE(R) Index Portfolio
Neuberger Berman Mid Cap Value Portfolio Lord Abbett Mid Cap Value Portfolio
PORTFOLIO MERGER
FORMER PORTFOLIO NEW PORTFOLIO
-------------------------------------- --------------------------------------
METROPOLITAN SERIES FUND, INC. MET INVESTORS SERIES TRUST
Lord Abbett Mid Cap Value Portfolio Lord Abbett Mid Cap Value Portfolio
SHARE CLASS EXCHANGE
FORMER PORTFOLIO - SHARE CLASS NEW PORTFOLIO - SHARE CLASS
------------------------------------- -------------------------------------
MET INVESTORS SERIES TRUST MET INVESTORS SERIES TRUST
Lord Abbett Mid Cap Value Lord Abbett Mid Cap
Portfolio--Class B Value Portfolio--Class A
65
In order to help you understand how the Policy's values would vary over time
under different sets of assumptions, we will provide you with personalized
illustrations of death benefits, cash surrender values and cash values upon
request. These will be based on the age and insurance risk characteristics of
the person insured under the Policy and such factors as the specified face
amount, premium payment amounts and rates of return (within limits) that you
request. You can request such illustrations at any time without charge. We have
filed an example of such an illustration as an exhibit to the registration
statement referred to below.
Additional information about the Policy and the Separate Account can be found
in the Statement of Additional Information. This Prospectus incorporates by
reference all of the information contained in the Statement of Additional
Information, which is legally part of this Prospectus. You may obtain, without
charge, a copy of the Statement of Additional Information or a personalized
illustration of death benefits, cash surrender values and cash values, by
calling us at 1-908-253-1400 or contacting us through our website at
www.metlife.com/sbr.
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 202-942-8090.
The Statement of Additional Information, reports and other information about
the Separate Account are available on the SEC Internet site as 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.
811-06025
66
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, 2011, 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,
2011, 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, 2011, 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 29, 2012
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METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2011
ALLIANCEBERNSTEIN
GLOBAL ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN AMERICAN
THEMATIC GROWTH INTERMEDIATE BOND INTERNATIONAL VALUE CENTURY VP VISTA
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 4,293,725 $ 47,397 $ 143 $ 8,658
Due from Metropolitan Life
Insurance Company -- -- -- --
------------------- ------------------- ------------------- -------------------
Total Assets 4,293,725 47,397 143 8,658
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 30 111 2 4
------------------- ------------------- ------------------- -------------------
Total Liabilities 30 111 2 4
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 4,293,695 $ 47,286 $ 141 $ 8,654
=================== =================== =================== ===================
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, 2011
AMERICAN FUNDS
AMERICAN FUNDS GLOBAL SMALL AMERICAN FUNDS AMERICAN FUNDS
BOND CAPITALIZATION GROWTH GROWTH-INCOME
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 4,735,498 $ 52,474,884 $ 118,199,497 $ 71,255,359
Due from Metropolitan Life
Insurance Company -- 105 13 1,458
------------------- ------------------- ------------------- -------------------
Total Assets 4,735,498 52,474,989 118,199,510 71,256,817
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 39 -- -- --
------------------- ------------------- ------------------- -------------------
Total Liabilities 39 -- -- --
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 4,735,459 $ 52,474,989 $ 118,199,510 $ 71,256,817
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
2
AMERICAN FUNDS U.S.
AMERICAN FUNDS GOVERNMENT/AAA- DREYFUS VIF FIDELITY VIP ASSET FIDELITY VIP FIDELITY VIP
INTERNATIONAL RATED SECURITIES INTERNATIONAL VALUE MANAGER: GROWTH CONTRAFUND EQUITY-INCOME
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 524,711 $ 45,545 $ 184,091 $ 1,430,520 $ 2,151,831 $ 18,605
-- -- -- -- -- --
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
524,711 45,545 184,091 1,430,520 2,151,831 18,605
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
-- 6 30 4 182 16
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
-- 6 30 4 182 16
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 524,711 $ 45,539 $ 184,061 $ 1,430,516 $ 2,151,649 $ 18,589
=================== =================== =================== =================== =================== ===================
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, 2011
FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP
FREEDOM 2010 FREEDOM 2020 FREEDOM 2030 FREEDOM 2050
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 34,148 $ 699,723 $ 56,980 $ 15,438
Due from Metropolitan Life
Insurance Company -- -- -- --
------------------- ------------------- ------------------- -------------------
Total Assets 34,148 699,723 56,980 15,438
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 4 9 10 --
------------------- ------------------- ------------------- -------------------
Total Liabilities 4 9 10 --
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 34,144 $ 699,714 $ 56,970 $ 15,438
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
4
FIDELITY VIP FTVIPT FTVIPT
FIDELITY VIP INVESTMENT MUTUAL GLOBAL FTVIPT TEMPLETON TEMPLETON GLOBAL
HIGH INCOME GRADE BOND FIDELITY VIP MID CAP DISCOVERY SECURITIES FOREIGN SECURITIES BOND SECURITIES
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- -------------------- -------------------- ------------------- -------------------
$ 43,227 $ 1,747,859 $ 613,963 $ 783,963 $ 3,022,199 $ 289,348
-- -- -- -- -- --
------------------- ------------------- -------------------- -------------------- ------------------- -------------------
43,227 1,747,859 613,963 783,963 3,022,199 289,348
------------------- ------------------- -------------------- -------------------- ------------------- -------------------
4 7 5 128 414 3
------------------- ------------------- -------------------- -------------------- ------------------- -------------------
4 7 5 128 414 3
------------------- ------------------- -------------------- -------------------- ------------------- -------------------
$ 43,223 $ 1,747,852 $ 613,958 $ 783,835 $ 3,021,785 $ 289,345
=================== =================== ==================== ==================== =================== ===================
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, 2011
GOLDMAN SACHS INVESCO V.I.
GOLDMAN SACHS STRUCTURED INVESCO V.I. GOVERNMENT
MID-CAP VALUE SMALL CAP EQUITY GLOBAL REAL ESTATE SECURITIES
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 268,281 $ 50,289 $ 1,491,271 $ 21,492
Due from Metropolitan Life
Insurance Company -- -- -- --
------------------- ------------------- ------------------- -------------------
Total Assets 268,281 50,289 1,491,271 21,492
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 33 30 627 1
------------------- ------------------- ------------------- -------------------
Total Liabilities 33 30 627 1
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 268,248 $ 50,259 $ 1,490,644 $ 21,491
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
6
INVESCO V.I.
INVESCO V.I. VAN KAMPEN JANUS ASPEN
INTERNATIONAL GROWTH COMSTOCK BALANCED JANUS ASPEN FORTY JANUS ASPEN JANUS JANUS ASPEN OVERSEAS
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
-------------------- ------------------- ------------------- ------------------- ------------------- --------------------
$ 23,414 $ 190,057 $ 1,339,815 $ 702,889 $ 858,101 $ 344,177
-- 5 -- 247 -- --
-------------------- ------------------- ------------------- ------------------- ------------------- --------------------
23,414 190,062 1,339,815 703,136 858,101 344,177
-------------------- ------------------- ------------------- ------------------- ------------------- --------------------
7 -- 27 -- 7 42
-------------------- ------------------- ------------------- ------------------- ------------------- --------------------
7 -- 27 -- 7 42
-------------------- ------------------- ------------------- ------------------- ------------------- --------------------
$ 23,407 $ 190,062 $ 1,339,788 $ 703,136 $ 858,094 $ 344,135
==================== =================== =================== =================== =================== ====================
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, 2011
MFS VIT MFS VIT MFS VIT MFS VIT
GLOBAL EQUITY HIGH INCOME NEW DISCOVERY VALUE
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 5,454 $ 135,792 $ 122,401 $ 44,305
Due from Metropolitan Life
Insurance Company -- -- -- --
------------------- ------------------- ------------------- -------------------
Total Assets 5,454 135,792 122,401 44,305
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 40 481 6 6
------------------- ------------------- ------------------- -------------------
Total Liabilities 40 481 6 6
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 5,414 $ 135,311 $ 122,395 $ 44,299
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
8
MIST MIST MIST
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS MIST BLACKROCK MIST CLARION MIST DREMAN
BALANCED ALLOCATION GROWTH ALLOCATION MODERATE ALLOCATION LARGE CAP CORE GLOBAL REAL ESTATE SMALL CAP VALUE
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 515,999 $ 781,249 $ 401,609 $ 291,613,210 $ 19,560,392 $ 35,944
-- -- -- 2,529 -- --
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
515,999 781,249 401,609 291,615,739 19,560,392 35,944
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
4 4 3 -- 5 6
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
4 4 3 -- 5 6
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 515,995 $ 781,245 $ 401,606 $ 291,615,739 $ 19,560,387 $ 35,938
=================== =================== =================== =================== =================== ===================
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, 2011
MIST
HARRIS OAKMARK MIST INVESCO MIST LAZARD
INTERNATIONAL SMALL CAP GROWTH MIST JANUS FORTY MID CAP
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 27,216,807 $ 4,412,943 $ 12,484,254 $ 5,277,741
Due from Metropolitan Life
Insurance Company -- 24 23 --
------------------- ------------------- ------------------- -------------------
Total Assets 27,216,807 4,412,967 12,484,277 5,277,741
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 65 -- -- 63
------------------- ------------------- ------------------- -------------------
Total Liabilities 65 -- -- 63
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 27,216,742 $ 4,412,967 $ 12,484,277 $ 5,277,678
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
10
MIST LEGG MIST MET/FRANKLIN
MASON CLEARBRIDGE MIST LORD ABBETT MIST LORD ABBETT MIST MET/FRANKLIN MIST MET/FRANKLIN TEMPLETON FOUNDING
AGGRESSIVE GROWTH BOND DEBENTURE MID CAP VALUE INCOME MUTUAL SHARES STRATEGY
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 12,365,968 $ 25,730,610 $ 120,865 $ 237,486 $ 79,916 $ 275,815
-- 383 -- -- -- --
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
12,365,968 25,730,993 120,865 237,486 79,916 275,815
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
174 -- 7 3 3 3
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
174 -- 7 3 3 3
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 12,365,794 $ 25,730,993 $ 120,858 $ 237,483 $ 79,913 $ 275,812
=================== =================== =================== =================== =================== ===================
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, 2011
MIST MET/TEMPLETON MIST METLIFE MIST MFS EMERGING MIST MFS RESEARCH
GROWTH AGGRESSIVE STRATEGY MARKETS EQUITY INTERNATIONAL
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 53,529 $ 12,471,146 $ 22,950 $ 12,176,273
Due from Metropolitan Life
Insurance Company -- 1,515 -- 626
------------------- ------------------- ------------------- -------------------
Total Assets 53,529 12,472,661 22,950 12,176,899
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 3 -- -- --
------------------- ------------------- ------------------- -------------------
Total Liabilities 3 -- -- --
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 53,526 $ 12,472,661 $ 22,950 $ 12,176,899
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
12
MIST MIST
MORGAN STANLEY MIST OPPENHEIMER PIMCO INFLATION MIST PIMCO MIST RCM
MID CAP GROWTH CAPITAL APPRECIATION PROTECTED BOND TOTAL RETURN MIST PIONEER FUND TECHNOLOGY
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- -------------------- ------------------- ------------------- ------------------- -------------------
$ 178,347,753 $ 1,734,844 $ 10,519,522 $ 47,130,249 $ 175,808 $ 13,216,492
2,664 -- -- 1,630 546 43
------------------- -------------------- ------------------- ------------------- ------------------- -------------------
178,350,417 1,734,844 10,519,522 47,131,879 176,354 13,216,535
------------------- -------------------- ------------------- ------------------- ------------------- -------------------
-- 9 21 -- -- --
------------------- -------------------- ------------------- ------------------- ------------------- -------------------
-- 9 21 -- -- --
------------------- -------------------- ------------------- ------------------- ------------------- -------------------
$ 178,350,417 $ 1,734,835 $ 10,519,501 $ 47,131,879 $ 176,354 $ 13,216,535
=================== ==================== =================== =================== =================== ===================
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, 2011
MIST SSGA GROWTH MIST SSGA MIST T. ROWE PRICE MIST T. ROWE PRICE
AND INCOME ETF GROWTH ETF LARGE CAP VALUE MID CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 4,611,150 $ 3,309,512 $ 1,081,559 $ 25,204,642
Due from Metropolitan Life
Insurance Company -- 6 -- --
------------------- ------------------- ------------------- -------------------
Total Assets 4,611,150 3,309,518 1,081,559 25,204,642
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 23 -- 5 15
------------------- ------------------- ------------------- -------------------
Total Liabilities 23 -- 5 15
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 4,611,127 $ 3,309,518 $ 1,081,554 $ 25,204,627
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
14
MIST THIRD AVENUE MSF ARTIO MSF BARCLAYS CAPITAL MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK
SMALL CAP VALUE INTERNATIONAL STOCK AGGREGATE BOND INDEX AGGRESSIVE GROWTH BOND INCOME DIVERSIFIED
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- -------------------- ------------------- ------------------- -------------------
$ 806,062 $ 35,919,208 $ 108,763,369 $ 184,990,648 $ 84,064,739 $ 255,554,738
-- 353 218 147 466 --
------------------- ------------------- -------------------- ------------------- ------------------- -------------------
806,062 35,919,561 108,763,587 184,990,795 84,065,205 255,554,738
------------------- ------------------- -------------------- ------------------- ------------------- -------------------
11 -- -- -- -- 546
------------------- ------------------- -------------------- ------------------- ------------------- -------------------
11 -- -- -- -- 546
------------------- ------------------- -------------------- ------------------- ------------------- -------------------
$ 806,051 $ 35,919,561 $ 108,763,587 $ 184,990,795 $ 84,065,205 $ 255,554,192
=================== =================== ==================== =================== =================== ===================
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, 2011
MSF BLACKROCK
MSF BLACKROCK LEGACY LARGE CAP MSF BLACKROCK MSF DAVIS
LARGE CAP VALUE GROWTH MONEY MARKET VENTURE VALUE
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 13,313,106 $ 7,367,845 $ 20,793,802 $ 53,650,820
Due from Metropolitan Life
Insurance Company -- -- -- --
------------------- ------------------- ------------------- -------------------
Total Assets 13,313,106 7,367,845 20,793,802 53,650,820
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 54 35 10,594 28
------------------- ------------------- ------------------- -------------------
Total Liabilities 54 35 10,594 28
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 13,313,052 $ 7,367,810 $ 20,783,208 $ 53,650,792
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
16
MSF METLIFE
MSF FI MSF JENNISON MSF LOOMIS SAYLES MSF LOOMIS SAYLES MSF MET/ARTISAN CONSERVATIVE
VALUE LEADERS GROWTH SMALL CAP CORE SMALL CAP GROWTH MID CAP VALUE ALLOCATION
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 6,065,876 $ 14,166,471 $ 17,444,054 $ 8,179,811 $ 47,189,069 $ 4,371,282
-- 15 -- -- -- --
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
6,065,876 14,166,486 17,444,054 8,179,811 47,189,069 4,371,282
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
47 -- 70 32 80 27
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
47 -- 70 32 80 27
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 6,065,829 $ 14,166,486 $ 17,443,984 $ 8,179,779 $ 47,188,989 $ 4,371,255
=================== =================== =================== =================== =================== ===================
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, 2011
MSF METLIFE MSF METLIFE
CONSERVATIVE TO MSF METLIFE MSF METLIFE MODERATE TO
MODERATE ALLOCATION MID CAP STOCK INDEX MODERATE ALLOCATION AGGRESSIVE ALLOCATION
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- ---------------------
ASSETS:
Investments at fair value $ 6,564,572 $ 62,847,551 $ 39,588,334 $ 66,170,231
Due from Metropolitan Life
Insurance Company -- 64 -- 16
------------------- ------------------- ------------------- ---------------------
Total Assets 6,564,572 62,847,615 39,588,334 66,170,247
------------------- ------------------- ------------------- ---------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 10 -- 25 --
------------------- ------------------- ------------------- ---------------------
Total Liabilities 10 -- 25 --
------------------- ------------------- ------------------- ---------------------
NET ASSETS $ 6,564,562 $ 62,847,615 $ 39,588,309 $ 66,170,247
=================== =================== =================== =====================
The accompanying notes are an integral part of these financial statements.
18
MSF MSF
MSF METLIFE MSF MFS MSF MORGAN STANLEY NEUBERGER BERMAN NEUBERGER BERMAN
STOCK INDEX TOTAL RETURN MSF MFS VALUE EAFE INDEX GENESIS MID CAP VALUE
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 668,623,116 $ 7,362,347 $ 52,361,935 $ 59,759,357 $ 79,278,540 $ 69,819,693
3,051 -- 1,434 193 526 1
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
668,626,167 7,362,347 52,363,369 59,759,550 79,279,066 69,819,694
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
-- 9 -- -- -- --
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
-- 9 -- -- -- --
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 668,626,167 $ 7,362,338 $ 52,363,369 $ 59,759,550 $ 79,279,066 $ 69,819,694
=================== =================== =================== =================== =================== ===================
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, 2011
MSF OPPENHEIMER MSF RUSSELL 2000 MSF T. ROWE PRICE MSF T. ROWE PRICE
GLOBAL EQUITY INDEX LARGE CAP GROWTH SMALL CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 37,497,157 $ 51,171,752 $ 42,316,422 $ 86,825,938
Due from Metropolitan Life
Insurance Company 62 32 914 --
------------------- ------------------- ------------------- -------------------
Total Assets 37,497,219 51,171,784 42,317,336 86,825,938
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company -- -- -- 167
------------------- ------------------- ------------------- -------------------
Total Liabilities -- -- -- 167
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 37,497,219 $ 51,171,784 $ 42,317,336 $ 86,825,771
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
20
MSF WESTERN
MSF VAN ECK ASSET MANAGEMENT MSF WESTERN
GLOBAL NATURAL STRATEGIC BOND ASSET MANAGEMENT PIMCO VIT PIMCO VIT PIONEER VCT
RESOURCES OPPORTUNITIES U.S. GOVERNMENT ALL ASSET LOW DURATION EMERGING MARKETS
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 13,179 $ 23,536,045 $ 16,435,856 $ 96,184 $ 945,780 $ 402,026
-- 843 -- -- 228 --
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
13,179 23,536,888 16,435,856 96,184 946,008 402,026
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
-- -- 58 46 -- 728
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
-- -- 58 46 -- 728
------------------- ------------------- ------------------- ------------------- ------------------- -------------------
$ 13,179 $ 23,536,888 $ 16,435,798 $ 96,138 $ 946,008 $ 401,298
=================== =================== =================== =================== =================== ===================
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, 2011
PIONEER VCT UIF EMERGING
MID CAP VALUE ROYCE MICRO-CAP ROYCE SMALL-CAP MARKETS DEBT
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------- ------------------- -------------------
ASSETS:
Investments at fair value $ 134,791 $ 310,458 $ 754,750 $ 420,989
Due from Metropolitan Life
Insurance Company -- 5 -- 9
------------------- ------------------- ------------------- -------------------
Total Assets 134,791 310,463 754,750 420,998
------------------- ------------------- ------------------- -------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company 11 -- 8 --
------------------- ------------------- ------------------- -------------------
Total Liabilities 11 -- 8 --
------------------- ------------------- ------------------- -------------------
NET ASSETS $ 134,780 $ 310,463 $ 754,742 $ 420,998
=================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements.
22
UIF EMERGING WELLS FARGO VT
MARKETS EQUITY TOTAL RETURN BOND
INVESTMENT DIVISION INVESTMENT DIVISION
------------------- -------------------
$ 539,545 $ 134,979
-- 235
------------------- -------------------
539,545 135,214
------------------- -------------------
157 --
------------------- -------------------
157 --
------------------- -------------------
$ 539,388 $ 135,214
=================== ===================
The accompanying notes are an integral part of these financial statements.
23
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009
ALLIANCEBERNSTEIN
GLOBAL THEMATIC GROWTH
INVESTMENT DIVISION
-----------------------------------
2011 2010 2009
--------------- -------- -----------
INVESTMENT INCOME:
Dividends $ 18,192 $ 1,486 $ --
--------------- -------- -----------
EXPENSES:
Mortality and expense risk charges 162,987 310 370
--------------- -------- -----------
Total expenses 162,987 310 370
--------------- -------- -----------
Net investment income (loss) (144,795) 1,176 (370)
--------------- -------- -----------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments (40,514) 8,379 (2,773)
--------------- -------- -----------
Net realized gains (losses) (40,514) 8,379 (2,773)
--------------- -------- -----------
Change in unrealized gains (losses) on investments (1,444,286) 1,480 45,397
--------------- -------- -----------
Net realized and changes in unrealized gains (losses)
on investments (1,484,800) 9,859 42,624
--------------- -------- -----------
Net increase (decrease) in net assets resulting
from operations $ (1,629,595) $ 11,035 $ 42,254
=============== ======== ===========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
24
ALLIANCEBERNSTEIN INTERMEDIATE BOND ALLIANCEBERNSTEIN INTERNATIONAL VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------- -------------------------------------
2011 2010 2009 (a) 2011 2010 (b)
---------- -------------- -------------- ----------------- -------------------
$ 2,097 $ 2,177 $ 763 $ 7 $ 31
---------- -------------- -------------- ----------------- -------------------
183 139 71 56 2
---------- -------------- -------------- ----------------- -------------------
183 139 71 56 2
---------- -------------- -------------- ----------------- -------------------
1,914 2,038 692 (49) 29
---------- -------------- -------------- ----------------- -------------------
170 -- -- -- --
14 2,172 716 175 1
---------- -------------- -------------- ----------------- -------------------
184 2,172 716 175 1
---------- -------------- -------------- ----------------- -------------------
563 (1,393) 2,187 (129) 88
---------- -------------- -------------- ----------------- -------------------
747 779 2,903 46 89
---------- -------------- -------------- ----------------- -------------------
$ 2,661 $ 2,817 $ 3,595 $ (3) $ 118
========== ============== ============== ================= ===================
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, 2011, 2010 AND 2009
AMERICAN CENTURY VP VISTA
INVESTMENT DIVISION
----------------------------------
2011 2010 2009
----------- ---------- -----------
INVESTMENT INCOME:
Dividends $ -- $ -- $ --
----------- ---------- -----------
EXPENSES:
Mortality and expense risk charges 305 519 472
----------- ---------- -----------
Total expenses 305 519 472
----------- ---------- -----------
Net investment income (loss) (305) (519) (472)
----------- ---------- -----------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 5,995 12,351 (47,927)
----------- ---------- -----------
Net realized gains (losses) 5,995 12,351 (47,927)
----------- ---------- -----------
Change in unrealized gains (losses) on investments (8,184) (1,947) 67,433
----------- ---------- -----------
Net realized and changes in unrealized gains (losses)
on investments (2,189) 10,404 19,506
----------- ---------- -----------
Net increase (decrease) in net assets resulting
from operations $ (2,494) $ 9,885 $ 19,034
=========== ========== ===========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
26
AMERICAN FUNDS BOND AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------- ---------------------------------------------------------
2011 2010 2009 2011 2010 2009
--------- ---------------------- ------------ ---------------- ---------------------- -----------------
$ 140,691 $ 126,810 $ 116,930 $ 817,781 $ 1,031,490 $ 125,985
--------- ---------------------- ------------ ---------------- ---------------------- -----------------
35,142 32,377 28,070 493,303 493,443 372,082
--------- ---------------------- ------------ ---------------- ---------------------- -----------------
35,142 32,377 28,070 493,303 493,443 372,082
--------- ---------------------- ------------ ---------------- ---------------------- -----------------
105,549 94,433 88,860 324,478 538,047 (246,097)
--------- ---------------------- ------------ ---------------- ---------------------- -----------------
-- -- -- -- -- --
10,695 (8,911) (91,981) (68,423) (386,466) (2,366,209)
--------- ---------------------- ------------ ---------------- ---------------------- -----------------
10,695 (8,911) (91,981) (68,423) (386,466) (2,366,209)
--------- ---------------------- ------------ ---------------- ---------------------- -----------------
121,054 122,161 381,938 (13,188,181) 11,810,164 23,159,810
--------- ---------------------- ------------ ---------------- ---------------------- -----------------
131,749 113,250 289,957 (13,256,604) 11,423,698 20,793,601
--------- ---------------------- ------------ ---------------- ---------------------- -----------------
$ 237,298 $ 207,683 $ 378,817 $ (12,932,126) $ 11,961,745 $ 20,547,504
========= ====================== ============ ================ ====================== =================
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, 2011, 2010 AND 2009
AMERICAN FUNDS GROWTH
INVESTMENT DIVISION
--------------------------------------------------------
2011 2010 2009
--------------- ------------------------ ---------------
INVESTMENT INCOME:
Dividends $ 771,098 $ 832,401 $ 607,594
--------------- ------------------------ ---------------
EXPENSES:
Mortality and expense risk charges 1,028,922 953,940 768,579
--------------- ------------------------ ---------------
Total expenses 1,028,922 953,940 768,579
--------------- ------------------------ ---------------
Net investment income (loss) (257,824) (121,539) (160,985)
--------------- ------------------------ ---------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 658,869 (328,082) (1,821,468)
--------------- ------------------------ ---------------
Net realized gains (losses) 658,869 (328,082) (1,821,468)
--------------- ------------------------ ---------------
Change in unrealized gains (losses) on investments (6,628,058) 19,817,938 31,985,158
--------------- ------------------------ ---------------
Net realized and changes in unrealized gains (losses)
on investments (5,969,189) 19,489,856 30,163,690
--------------- ------------------------ ---------------
Net increase (decrease) in net assets resulting
from operations $ (6,227,013) $ 19,368,317 $ 30,002,705
=============== ======================== ===============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
28
AMERICAN FUNDS GROWTH-INCOME AMERICAN FUNDS INTERNATIONAL
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------------- ---------------------------------------------------
2011 2010 2009 2011 2010 2009
--------------- ---------------------- ----------------- ------------ ---------------------- ---------------
$ 1,148,376 $ 1,018,183 $ 922,229 $ 10,736 $ 13,328 $ 1,021
--------------- ---------------------- ----------------- ------------ ---------------------- ---------------
594,603 564,494 475,319 9,756 9,546 222
--------------- ---------------------- ----------------- ------------ ---------------------- ---------------
594,603 564,494 475,319 9,756 9,546 222
--------------- ---------------------- ----------------- ------------ ---------------------- ---------------
553,773 453,689 446,910 980 3,782 799
--------------- ---------------------- ----------------- ------------ ---------------------- ---------------
-- -- -- -- -- 255
(58,726) (336,443) (956,152) (605) (608) 1,282
--------------- ---------------------- ----------------- ------------ ---------------------- ---------------
(58,726) (336,443) (956,152) (605) (608) 1,537
--------------- ---------------------- ----------------- ------------ ---------------------- ---------------
(2,428,568) 6,948,053 15,943,649 (108,507) 46,566 19,842
--------------- ---------------------- ----------------- ------------ ---------------------- ---------------
(2,487,294) 6,611,610 14,987,497 (109,112) 45,958 21,379
--------------- ---------------------- ----------------- ------------ ---------------------- ---------------
$ (1,933,521) $ 7,065,299 $ 15,434,407 $(108,132) $ 49,740 $ 22,178
=============== ====================== ================= ============ ====================== ===============
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, 2011, 2010 AND 2009
AMERICAN FUNDS U.S. GOVERNMENT/AAA-RATED SECURITIES
INVESTMENT DIVISION
---------------------------------------------------
2011 2010 2009
------- ------------------- -----------------------
INVESTMENT INCOME:
Dividends $ 773 $ 683 $ 2,005
------- ------------------- -----------------------
EXPENSES:
Mortality and expense risk charges 601 596 265
------- ------------------- -----------------------
Total expenses 601 596 265
------- ------------------- -----------------------
Net investment income (loss) 172 87 1,740
------- ------------------- -----------------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions 1,111 193 505
Realized gains (losses) on sale of investments 509 450 619
------- ------------------- -----------------------
Net realized gains (losses) 1,620 643 1,124
------- ------------------- -----------------------
Change in unrealized gains (losses) on investments 885 1,804 (1,799)
------- ------------------- -----------------------
Net realized and changes in unrealized gains (losses)
on investments 2,505 2,447 (675)
------- ------------------- -----------------------
Net increase (decrease) in net assets resulting
from operations $ 2,677 $ 2,534 $ 1,065
======= =================== =======================
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
30
DREYFUS VIF INTERNATIONAL VALUE FIDELITY VIP ASSET MANAGER: GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------------- ------------------------------------------------
2011 2010 2009 2011 2010 2009
------------ ---------------------- --------------- ------------- ------------------- --------------
$ 4,085 $ 3,367 $ 10,533 $ 23,605 $ 19,264 $ 22,283
------------ ---------------------- --------------- ------------- ------------------- --------------
798 876 1,264 11,005 11,265 6,417
------------ ---------------------- --------------- ------------- ------------------- --------------
798 876 1,264 11,005 11,265 6,417
------------ ---------------------- --------------- ------------- ------------------- --------------
3,287 2,491 9,269 12,600 7,999 15,866
------------ ---------------------- --------------- ------------- ------------------- --------------
-- -- -- 3,056 5,857 3,095
(960) (14,086) (185,176) 71,204 31,417 (19,280)
------------ ---------------------- --------------- ------------- ------------------- --------------
(960) (14,086) (185,176) 74,260 37,274 (16,185)
------------ ---------------------- --------------- ------------- ------------------- --------------
(45,726) 19,382 238,024 (205,700) 201,872 427,179
------------ ---------------------- --------------- ------------- ------------------- --------------
(46,686) 5,296 52,848 (131,440) 239,146 410,994
------------ ---------------------- --------------- ------------- ------------------- --------------
$ (43,399) $ 7,787 $ 62,117 $ (118,840) $ 247,145 $ 426,860
============ ====================== =============== ============= =================== ==============
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, 2011, 2010 AND 2009
FIDELITY VIP CONTRAFUND
INVESTMENT DIVISION
--------------------------------------
2011 2010 2009
------------ ------------ ------------
INVESTMENT INCOME:
Dividends $ 20,916 $ 27,427 $ 43,475
------------ ------------ ------------
EXPENSES:
Mortality and expense risk charges 10,858 17,497 12,639
------------ ------------ ------------
Total expenses 10,858 17,497 12,639
------------ ------------ ------------
Net investment income (loss) 10,058 9,930 30,836
------------ ------------ ------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- 1,114 957
Realized gains (losses) on sale of investments 12,745 (218,742) (199,492)
------------ ------------ ------------
Net realized gains (losses) 12,745 (217,628) (198,535)
------------ ------------ ------------
Change in unrealized gains (losses) on investments (98,141) 648,547 1,136,586
------------ ------------ ------------
Net realized and changes in unrealized gains (losses)
on investments (85,396) 430,919 938,051
------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations $ (75,338) $ 440,849 $ 968,887
============ ============ ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
32
FIDELITY VIP EQUITY-INCOME FIDELITY VIP FREEDOM 2010
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------- -----------------------------------------
2011 2010 2009 2011 2010 2009
-------------- -------------- ----------- -------------- ----------- --------------
$ 637 $ 3,327 $ 4,739 $ 726 $ 654 $ 529
-------------- -------------- ----------- -------------- ----------- --------------
749 838 1,051 150 109 72
-------------- -------------- ----------- -------------- ----------- --------------
749 838 1,051 150 109 72
-------------- -------------- ----------- -------------- ----------- --------------
(112) 2,489 3,688 576 545 457
-------------- -------------- ----------- -------------- ----------- --------------
-- -- -- 176 470 190
2,625 (5,418) (392,905) 1,305 67 (1,846)
-------------- -------------- ----------- -------------- ----------- --------------
2,625 (5,418) (392,905) 1,481 537 (1,656)
-------------- -------------- ----------- -------------- ----------- --------------
(8,921) 31,745 405,695 (2,344) 2,036 3,793
-------------- -------------- ----------- -------------- ----------- --------------
(6,296) 26,327 12,790 (863) 2,573 2,137
-------------- -------------- ----------- -------------- ----------- --------------
$ (6,408) $ 28,816 $ 16,478 $ (287) $ 3,118 $ 2,594
============== ============== =========== ============== =========== ==============
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, 2011, 2010 AND 2009
FIDELITY VIP FREEDOM 2020
INVESTMENT DIVISION
----------------------------------
2011 2010 2009
----------- --------- ------------
INVESTMENT INCOME:
Dividends $ 15,422 $ 15,231 $ 19,275
----------- --------- ------------
EXPENSES:
Mortality and expense risk charges 2,741 2,551 2,094
----------- --------- ------------
Total expenses 2,741 2,551 2,094
----------- --------- ------------
Net investment income (loss) 12,681 12,680 17,181
----------- --------- ------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions 2,671 5,440 10,109
Realized gains (losses) on sale of investments 10,134 2,838 (11,027)
----------- --------- ------------
Net realized gains (losses) 12,805 8,278 (918)
----------- --------- ------------
Change in unrealized gains (losses) on investments (33,543) 70,032 149,817
----------- --------- ------------
Net realized and changes in unrealized gains (losses)
on investments (20,738) 78,310 148,899
----------- --------- ------------
Net increase (decrease) in net assets resulting
from operations $ (8,057) $ 90,990 $ 166,080
=========== ========= ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
34
FIDELITY VIP
FIDELITY VIP FREEDOM 2030 FREEDOM 2050
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------- -------------------
2011 2010 2009 2011 (c)
---------- --------- ---------- -------------------
$ 1,232 $ 2,018 $ 624 $ 288
---------- --------- ---------- -------------------
300 364 112 60
---------- --------- ---------- -------------------
300 364 112 60
---------- --------- ---------- -------------------
932 1,654 512 228
---------- --------- ---------- -------------------
172 680 329 1,383
11,751 710 38 (5,037)
---------- --------- ---------- -------------------
11,923 1,390 367 (3,654)
---------- --------- ---------- -------------------
(12,843) 11,839 6,395 1,450
---------- --------- ---------- -------------------
(920) 13,229 6,762 (2,204)
---------- --------- ---------- -------------------
$ 12 $ 14,883 $ 7,274 $ (1,976)
========== ========= ========== ===================
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, 2011, 2010 AND 2009
FIDELITY VIP HIGH INCOME
INVESTMENT DIVISION
-------------------------------------
2011 2010 2009 (d)
-------------- ---------- -----------
INVESTMENT INCOME:
Dividends $ 2,953 $ 340 $ 2,882
-------------- ---------- -----------
EXPENSES:
Mortality and expense risk charges 27 30 33
-------------- ---------- -----------
Total expenses 27 30 33
-------------- ---------- -----------
Net investment income (loss) 2,926 310 2,849
-------------- ---------- -----------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 13 (227) 11
-------------- ---------- -----------
Net realized gains (losses) 13 (227) 11
-------------- ---------- -----------
Change in unrealized gains (losses) on investments (1,768) 801 (647)
-------------- ---------- -----------
Net realized and changes in unrealized gains (losses)
on investments (1,755) 574 (636)
-------------- ---------- -----------
Net increase (decrease) in net assets resulting
from operations $ 1,171 $ 884 $ 2,213
============== ========== ===========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
36
FIDELITY VIP INVESTMENT GRADE BOND FIDELITY VIP MID CAP
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------- -----------------------------------------
2011 2010 2009 2011 2010 2009
-------------- -------------- -------------- ------------ ------------- --------------
$ 54,637 $ 18,206 $ 10,680 $ 150 $ 502 $ 119
-------------- -------------- -------------- ------------ ------------- --------------
6,449 4,314 369 5,725 5,209 142
-------------- -------------- -------------- ------------ ------------- --------------
6,449 4,314 369 5,725 5,209 142
-------------- -------------- -------------- ------------ ------------- --------------
48,188 13,892 10,311 (5,575) (4,707) (23)
-------------- -------------- -------------- ------------ ------------- --------------
24,253 5,814 654 1,181 1,027 129
(3,064) 17,651 3,233 10,846 2,077 613
-------------- -------------- -------------- ------------ ------------- --------------
21,189 23,465 3,887 12,027 3,104 742
-------------- -------------- -------------- ------------ ------------- --------------
1,742 (13,312) (1,678) (60,535) 83,723 13,131
-------------- -------------- -------------- ------------ ------------- --------------
22,931 10,153 2,209 (48,508) 86,827 13,873
-------------- -------------- -------------- ------------ ------------- --------------
$ 71,119 $ 24,045 $ 12,520 $ (54,083) $ 82,120 $ 13,850
============== ============== ============== ============ ============= ==============
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, 2011, 2010 AND 2009
FTVIPT MUTUAL GLOBAL DISCOVERY SECURITIES
INVESTMENT DIVISION
-----------------------------------------
2011 2010 2009
------------ ------------- --------------
INVESTMENT INCOME:
Dividends $ 22,691 $ 10,103 $ 7,899
------------ ------------- --------------
EXPENSES:
Mortality and expense risk charges 3,892 2,866 4,787
------------ ------------- --------------
Total expenses 3,892 2,866 4,787
------------ ------------- --------------
Net investment income (loss) 18,799 7,237 3,112
------------ ------------- --------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions 22,139 -- 18,638
Realized gains (losses) on sale of investments (20,210) (4,189) (456,806)
------------ ------------- --------------
Net realized gains (losses) 1,929 (4,189) (438,168)
------------ ------------- --------------
Change in unrealized gains (losses) on investments (59,670) 81,592 609,659
------------ ------------- --------------
Net realized and changes in unrealized gains (losses)
on investments (57,741) 77,403 171,491
------------ ------------- --------------
Net increase (decrease) in net assets resulting
from operations $ (38,942) $ 84,640 $ 174,603
============ ============= ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
38
FTVIPT TEMPLETON FOREIGN SECURITIES FTVIPT TEMPLETON GLOBAL BOND SECURITIES
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------- ---------------------------------------
2011 2010 2009 2011 2010 2009 (e)
------------- --------------------- ---------------- ------------ -------------- -----------
$ 89,150 $ 164,170 $ 239,754 $ 10,824 $ 60 $ --
------------- --------------------- ---------------- ------------ -------------- -----------
111,353 239,041 28,000 1,067 89 4
------------- --------------------- ---------------- ------------ -------------- -----------
111,353 239,041 28,000 1,067 89 4
------------- --------------------- ---------------- ------------ -------------- -----------
(22,203) (74,871) 211,754 9,757 (29) (4)
------------- --------------------- ---------------- ------------ -------------- -----------
-- -- 268,234 1,216 10 --
253,750 (50,450) (421,623) (12,515) 4,591 5
------------- --------------------- ---------------- ------------ -------------- -----------
253,750 (50,450) (153,389) (11,299) 4,601 5
------------- --------------------- ---------------- ------------ -------------- -----------
(552,735) 614,425 2,059,948 (11,949) (171) 239
------------- --------------------- ---------------- ------------ -------------- -----------
(298,985) 563,975 1,906,559 (23,248) 4,430 244
------------- --------------------- ---------------- ------------ -------------- -----------
$ (321,188) $ 489,104 $ 2,118,313 $ (13,491) $ 4,401 $ 240
============= ===================== ================ ============ ============== ===========
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, 2011, 2010 AND 2009
GOLDMAN SACHS MID-CAP VALUE
INVESTMENT DIVISION
--------------------------------------
2011 2010 2009
------------ ------------ -----------
INVESTMENT INCOME:
Dividends $ 2,221 $ 2,264 $ 5,173
------------ ------------ ------------
EXPENSES:
Mortality and expense risk charges 1,289 1,356 2,426
------------ ------------ -----------
Total expenses 1,289 1,356 2,426
------------ ------------ -----------
Net investment income (loss) 932 908 2,747
------------ ------------ -----------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments (27,627) (13,608) (540,331)
------------ ------------ -----------
Net realized gains (losses) (27,627) (13,608) (540,331)
------------ ------------ -----------
Change in unrealized gains (losses) on investments 1,030 84,633 633,578
------------ ------------ -----------
Net realized and changes in unrealized gains (losses)
on investments (26,597) 71,025 93,247
------------ ------------ -----------
Net increase (decrease) in net assets resulting
from operations $ (25,665) $ 71,933 $ 95,994
============ ============ ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
40
INVESCO V.I.
GOVERNMENT
GOLDMAN SACHS STRUCTURED SMALL CAP EQUITY INVESCO V.I. GLOBAL REAL ESTATE SECURITIES
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------- ----------------------------------------------- -------------------
2011 2010 2009 2011 2010 2009 2011 (f)
-------------------------------------------- ----------------------------------------------- -------------------
$ 424 $ 254 $ 724 $ 72,431 $ 71,976 $ -- $ --
-------------------------------------------- ----------------------------------------------- -------------------
173 154 173 49,508 39,431 5,813 120
-------------------------------------------- ----------------------------------------------- -------------------
173 154 173 49,508 39,431 5,813 120
-------------------------------------------- ----------------------------------------------- -------------------
251 100 551 22,923 32,545 (5,813) (120)
-------------------------------------------- ----------------------------------------------- -------------------
-- -- -- -- -- -- --
175 (7,335) (17,708) (158,339) (130,047) (698,156) 1,389
-------------------------------------------- ----------------------------------------------- -------------------
175 (7,335) (17,708) (158,339) (130,047) (698,156) 1,389
-------------------------------------------- ----------------------------------------------- -------------------
(255) 18,632 28,044 (44,519) 289,353 1,038,943 1,336
-------------------------------------------- ----------------------------------------------- -------------------
(80) 11,297 10,336 (202,858) 159,306 340,787 2,725
-------------------------------------------- ----------------------------------------------- -------------------
$ 171 $ 11,397 $ 10,887 $ (179,935) $ 191,851 $ 334,974 $ 2,605
============ =================== =========== ============= ================== ============== ===================
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, 2011, 2010 AND 2009
INVESCO V.I. INTERNATIONAL GROWTH
INVESTMENT DIVISION
------------------------------------
2011 2010 2009 (d)
------------ ---------- ------------
INVESTMENT INCOME:
Dividends $ 3,660 $ 4,364 $ 242
------------ ---------- ------------
EXPENSES:
Mortality and expense risk charges 1,400 783 29
------------ ---------- ------------
Total expenses 1,400 783 29
------------ ---------- ------------
Net investment income (loss) 2,260 3,581 213
------------ ---------- ------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 3,888 1,465 34
------------ ---------- ------------
Net realized gains (losses) 3,888 1,465 34
------------ ---------- ------------
Change in unrealized gains (losses) on investments (28,330) 26,537 2,258
------------ ---------- ------------
Net realized and changes in unrealized gains (losses)
on investments (24,442) 28,002 2,292
------------ ---------- ------------
Net increase (decrease) in net assets resulting
from operations $ (22,182) $ 31,583 $ 2,505
============ ========== ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
42
INVESCO V.I. VAN KAMPEN COMSTOCK JANUS ASPEN BALANCED
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------- ----------------------------
2011 2010 (g) 2011 2010 2009
-------------- ----------------- --------- -------- ---------
$ 489 $ -- $ 44,376 $ 54,166 $ 14,836
-------------- ----------------- --------- -------- ---------
423 -- 25,576 23,474 1,929
-------------- ----------------- --------- -------- ---------
423 -- 25,576 23,474 1,929
-------------- ----------------- --------- -------- ---------
66 -- 18,800 30,692 12,907
-------------- ----------------- --------- -------- ---------
-- -- 108,835 -- 18,519
(127) 53 29,077 26,581 655
-------------- ----------------- --------- -------- ---------
(127) 53 137,912 26,581 19,174
-------------- ----------------- --------- -------- ---------
(6,181) 45 (161,867) 90,252 93,262
-------------- ----------------- --------- -------- ---------
(6,308) 98 (23,955) 116,833 112,436
-------------- ----------------- --------- -------- ---------
$ (6,242) $ 98 $ (5,155) $147,525 $ 125,343
============== ================= ========= ======== =========
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, 2011, 2010 AND 2009
JANUS ASPEN FORTY
INVESTMENT DIVISION
-------------------------------------
2011 2010 2009
------------ ----------- ------------
INVESTMENT INCOME:
Dividends $ 2,325 $ 2,433 $ 81
------------ ----------- ------------
EXPENSES:
Mortality and expense risk charges 15,960 16,448 2,129
------------ ----------- ------------
Total expenses 15,960 16,448 2,129
------------ ----------- ------------
Net investment income (loss) (13,635) (14,015) (2,048)
------------ ----------- ------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 43,353 14,051 (78,622)
------------ ----------- ------------
Net realized gains (losses) 43,353 14,051 (78,622)
------------ ----------- ------------
Change in unrealized gains (losses) on investments (117,114) 47,707 310,554
------------ ----------- ------------
Net realized and changes in unrealized gains (losses)
on investments (73,761) 61,758 231,932
------------ ----------- ------------
Net increase (decrease) in net assets resulting
from operations $ (87,396) $ 47,743 $ 229,884
============ =========== ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
44
JANUS ASPEN JANUS JANUS ASPEN OVERSEAS
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------- -------------------------------
2011 2010 2009 2011 2010 2009
------------- ------------ -------------- ------------- -------- --------
$ 5,397 $ 73,809 $ 28,575 $ 1,291 $ 1,609 $ 413
------------- ------------ -------------- ------------- -------- --------
36,978 226,951 22,889 29,472 817 355
------------- ------------ -------------- ------------- -------- --------
36,978 226,951 22,889 29,472 817 355
------------- ------------ -------------- ------------- -------- --------
(31,581) (153,142) 5,686 (28,181) 792 58
------------- ------------ -------------- ------------- -------- --------
-- -- -- 3,396 -- 3,372
1,561,413 52,158 (31,201) (93,767) 4,218 23,192
------------- ------------ -------------- ------------- -------- --------
1,561,413 52,158 (31,201) (90,371) 4,218 26,564
------------- ------------ -------------- ------------- -------- --------
(1,416,036) 848,330 1,662,317 (214,175) 62,994 37,885
------------- ------------ -------------- ------------- -------- --------
145,377 900,488 1,631,116 (304,546) 67,212 64,449
------------- ------------ -------------- ------------- -------- --------
$ 113,796 $ 747,346 $ 1,636,802 $ (332,727) $ 68,004 $ 64,507
============= ============ ============== ============= ======== ========
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, 2011, 2010 AND 2009
MFS VIT GLOBAL EQUITY
INVESTMENT DIVISION
-------------------------------
2011 2010 2009
----------- ------- -----------
INVESTMENT INCOME:
Dividends $ 575 $ 1,232 $ 1,242
----------- ------- -----------
EXPENSES:
Mortality and expense risk charges 361 598 238
----------- ------- -----------
Total expenses 361 598 238
----------- ------- -----------
Net investment income (loss) 214 634 1,004
----------- ------- -----------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 12,787 183 (11,944)
----------- ------- -----------
Net realized gains (losses) 12,787 183 (11,944)
----------- ------- -----------
Change in unrealized gains (losses) on investments (16,173) 19,523 27,307
----------- ------- -----------
Net realized and changes in unrealized gains (losses)
on investments (3,386) 19,706 15,313
----------- ------- -----------
Net increase (decrease) in net assets resulting
from operations $ (3,172) 20,340 $ 16,317
=========== ======= ===========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
46
MFS VIT HIGH INCOME MFS VIT NEW DISCOVERY
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------- -----------------------------------
2011 2010 2009 2011 2010 2009
-------------- -------- -------- ------------ ----------- ----------
$ 12,069 $ 8,657 $ 933 $ -- $ -- $ --
-------------- -------- -------- ------------ ----------- ----------
491 457 273 555 340 27
-------------- -------- -------- ------------ ----------- ----------
491 457 273 555 340 27
-------------- -------- -------- ------------ ----------- ----------
11,578 8,200 660 (555) (340) (27)
-------------- -------- -------- ------------ ----------- ----------
-- -- -- 17,326 -- --
361 680 326 772 544 1,560
-------------- -------- -------- ------------ ----------- ----------
361 680 326 18,098 544 1,560
-------------- -------- -------- ------------ ----------- ----------
(7,343) 7,331 21,466 (32,906) 28,843 3,314
-------------- -------- -------- ------------ ----------- ----------
(6,982) 8,011 21,792 (14,808) 29,387 4,874
-------------- -------- -------- ------------ ----------- ----------
$ 4,596 $ 16,211 $ 22,452 $ (15,363) $ 29,047 $ 4,847
============== ======== ======== ============ =========== ==========
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, 2011, 2010 AND 2009
MFS VIT VALUE
INVESTMENT DIVISION
-------------------------------------
2011 2010 2009
----------- ---------- --------------
INVESTMENT INCOME:
Dividends $ 999 $ 969 $ 803
----------- ---------- --------------
EXPENSES:
Mortality and expense risk charges 285 293 257
----------- ---------- --------------
Total expenses 285 293 257
----------- ---------- --------------
Net investment income (loss) 714 676 546
----------- ---------- --------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions 318 -- --
Realized gains (losses) on sale of investments (10,004) (552) (1,224)
----------- ---------- --------------
Net realized gains (losses) (9,686) (552) (1,224)
----------- ---------- --------------
Change in unrealized gains (losses) on investments 6,173 7,585 14,082
----------- ---------- --------------
Net realized and changes in unrealized gains (losses)
on investments (3,513) 7,033 12,858
----------- ---------- --------------
Net increase (decrease) in net assets resulting
from operations $ (2,799) $ 7,709 $ 13,404
=========== ========== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
48
MIST AMERICAN FUNDS BALANCED ALLOCATION MIST AMERICAN FUNDS GROWTH ALLOCATION
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------- -------------------------------------
2011 2010 2009 2011 2010 2009
------------ ------------ --------------- ------------ ----------- -----------
$ 6,635 $ 3,146 $ -- $ 10,815 $ 2,434 $ --
------------ ------------ --------------- ------------ ----------- -----------
-- -- -- -- -- --
------------ ------------ --------------- ------------ ----------- -----------
-- -- -- -- -- --
------------ ------------ --------------- ------------ ----------- -----------
6,635 3,146 -- 10,815 2,434 --
------------ ------------ --------------- ------------ ----------- -----------
248 117 -- -- -- --
6,046 1,705 (28) 9,254 5,990 1,298
------------ ------------ --------------- ------------ ----------- -----------
6,294 1,822 (28) 9,254 5,990 1,298
------------ ------------ --------------- ------------ ----------- -----------
(23,258) 26,193 14,667 (58,738) 79,550 20,909
------------ ------------ --------------- ------------ ----------- -----------
(16,964) 28,015 14,639 (49,484) 85,540 22,207
------------ ------------ --------------- ------------ ----------- -----------
$ (10,329) $ 31,161 $ 14,639 $ (38,669) $ 87,974 $ 22,207
============ ============ =============== ============ =========== ===========
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, 2011, 2010 AND 2009
MIST AMERICAN FUNDS MODERATE ALLOCATION
INVESTMENT DIVISION
---------------------------------------
2011 2010 2009
-------------- ------------ -----------
INVESTMENT INCOME:
Dividends $ 5,453 $ 2,501 $ --
-------------- ------------ -----------
EXPENSES:
Mortality and expense risk charges -- -- --
-------------- ------------ -----------
Total expenses -- -- --
-------------- ------------ -----------
Net investment income (loss) 5,453 2,501 --
-------------- ------------ -----------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions 1,467 -- --
Realized gains (losses) on sale of investments 1,917 646 370
-------------- ------------ -----------
Net realized gains (losses) 3,384 646 370
-------------- ------------ -----------
Change in unrealized gains (losses) on investments (7,233) 16,902 11,101
-------------- ------------ -----------
Net realized and changes in unrealized gains (losses)
on investments (3,849) 17,548 11,471
-------------- ------------ -----------
Net increase (decrease) in net assets resulting
from operations $ 1,604 $ 20,049 $ 11,471
============== ============ ===========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
50
MIST BLACKROCK LARGE CAP CORE MIST CLARION GLOBAL REAL ESTATE
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------- ---------------------------------------------
2011 2010 2009 2011 2010 2009
-------------- --------------- --------------- --------------- -------------- --------------
$ 3,462,386 $ 3,848,840 $ 4,180,146 $ 847,944 $ 1,558,222 $ 496,210
-------------- --------------- --------------- --------------- -------------- --------------
2,301,027 2,233,231 2,047,270 179,211 166,255 119,529
-------------- --------------- --------------- --------------- -------------- --------------
2,301,027 2,233,231 2,047,270 179,211 166,255 119,529
-------------- --------------- --------------- --------------- -------------- --------------
1,161,359 1,615,609 2,132,876 668,733 1,391,967 376,681
-------------- --------------- --------------- --------------- -------------- --------------
-- -- -- -- -- --
(4,542,808) (7,248,214) (10,716,690) (421,589) (571,095) (1,092,248)
-------------- --------------- --------------- --------------- -------------- --------------
(4,542,808) (7,248,214) (10,716,690) (421,589) (571,095) (1,092,248)
-------------- --------------- --------------- --------------- -------------- --------------
3,050,880 38,497,976 54,384,062 (1,500,208) 1,969,823 5,493,585
-------------- --------------- --------------- --------------- -------------- --------------
(1,491,928) 31,249,762 43,667,372 (1,921,797) 1,398,728 4,401,337
-------------- --------------- --------------- --------------- -------------- --------------
$(330,569) $32,865,371 $45,800,248 $(1,253,064) $ 2,790,695 $ 4,778,018
============== =============== =============== =============== ============== ==============
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, 2011, 2010 AND 2009
MIST DREMAN SMALL CAP VALUE
INVESTMENT DIVISION
----------------------------------
2011 2010 2009
----------- ---------- -----------
INVESTMENT INCOME:
Dividends $ 472 $ 172 $ 1
----------- ---------- -----------
EXPENSES:
Mortality and expense risk charges 255 220 428
----------- ---------- -----------
Total expenses 255 220 428
----------- ---------- -----------
Net investment income (loss) 217 (48) (427)
----------- ---------- -----------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 1,124 403 58,177
----------- ---------- -----------
Net realized gains (losses) 1,124 403 58,177
----------- ---------- -----------
Change in unrealized gains (losses) on investments (4,058) 3,392 2,844
----------- ---------- -----------
Net realized and changes in unrealized gains (losses)
on investments (2,934) 3,795 61,021
----------- ---------- -----------
Net increase (decrease) in net assets resulting
from operations $ (2,717) $ 3,747 $ 60,594
=========== ========== ===========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
52
MIST HARRIS OAKMARK INTERNATIONAL MIST INVESCO SMALL CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------- --------------------------------------
2011 2010 2009 2011 2010 2009
--------------- -------------- -------------- ------------ ------------ ------------
$ 8,423 $ 576,287 $ 1,589,352 $ -- $ -- $ --
--------------- -------------- -------------- ------------ ------------ ------------
243,105 232,976 170,663 36,533 30,507 22,254
--------------- -------------- -------------- ------------ ------------ ------------
243,105 232,976 170,663 36,533 30,507 22,254
--------------- -------------- -------------- ------------ ------------ ------------
(234,682) 343,311 1,418,689 (36,533) (30,507) (22,254)
--------------- -------------- -------------- ------------ ------------ ------------
-- -- -- -- -- --
(114,036) (312,283) (1,294,657) 169,309 (15,371) (84,509)
--------------- -------------- -------------- ------------ ------------ ------------
(114,036) (312,283) (1,294,657) 169,309 (15,371) (84,509)
--------------- -------------- -------------- ------------ ------------ ------------
(4,256,535) 4,235,035 8,897,628 (192,641) 887,599 919,328
--------------- -------------- -------------- ------------ ------------ ------------
(4,370,571) 3,922,752 7,602,971 (23,332) 872,228 834,819
--------------- -------------- -------------- ------------ ------------ ------------
$ (4,605,253) $ 4,266,063 $ 9,021,660 $ (59,865) $ 841,721 $ 812,565
=============== ============== ============== ============ ============ ============
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, 2011, 2010 AND 2009
MIST JANUS FORTY
INVESTMENT DIVISION
---------------------------------------------
2011 2010 2009
--------------- -------------- --------------
INVESTMENT INCOME:
Dividends $ 249,768 $ 219,796 $ --
--------------- -------------- --------------
EXPENSES:
Mortality and expense risk charges 100,112 99,823 75,162
--------------- -------------- --------------
Total expenses 100,112 99,823 75,162
--------------- -------------- --------------
Net investment income (loss) 149,656 119,973 (75,162)
--------------- -------------- --------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 2,199 (41,591) (540,105)
--------------- -------------- --------------
Net realized gains (losses) 2,199 (41,591) (540,105)
--------------- -------------- --------------
Change in unrealized gains (losses) on investments (1,278,619) 1,120,682 3,887,171
--------------- -------------- --------------
Net realized and changes in unrealized gains (losses)
on investments (1,276,420) 1,079,091 3,347,066
--------------- -------------- --------------
Net increase (decrease) in net assets resulting
from operations $ (1,126,764) $ 1,199,064 $ 3,271,904
=============== ============== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
54
MIST LAZARD MID CAP MIST LEGG MASON CLEARBRIDGE AGGRESSIVE GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------- ---------------------------------------------
2011 2010 2009 2011 2010 2009
------------- -------------- -------------- ------------- ---------------- --------------
$ 51,406 $ 51,856 $ 51,729 $ 8,681 $ 4,315 $ 6,856
------------- -------------- -------------- ------------- ---------------- --------------
44,360 40,421 32,462 88,982 57,953 47,276
------------- -------------- -------------- ------------- ---------------- --------------
44,360 40,421 32,462 88,982 57,953 47,276
------------- -------------- -------------- ------------- ---------------- --------------
7,046 11,435 19,267 (80,301) (53,638) (40,420)
------------- -------------- -------------- ------------- ---------------- --------------
-- -- -- -- -- --
(15,584) (93,933) (283,748) 93,448 (57,251) (166,346)
------------- -------------- -------------- ------------- ---------------- --------------
(15,584) (93,933) (283,748) 93,448 (57,251) (166,346)
------------- -------------- -------------- ------------- ---------------- --------------
(320,660) 1,108,654 1,519,608 (217,464) 1,583,027 1,815,976
------------- -------------- -------------- ------------- ---------------- --------------
(336,244) 1,014,721 1,235,860 (124,016) 1,525,776 1,649,630
------------- -------------- -------------- ------------- ---------------- --------------
$ (329,198) $ 1,026,156 $ 1,255,127 $ (204,317) $ 1,472,138 $ 1,609,210
============= ============== ============== ============= ================ ==============
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, 2011, 2010 AND 2009
MIST LORD ABBETT BOND DEBENTURE
INVESTMENT DIVISION
-----------------------------------------
2011 2010 2009
-------------- ----------- --------------
INVESTMENT INCOME:
Dividends $ 1,568,618 $ 1,718,530 $ 1,572,315
-------------- ----------- --------------
EXPENSES:
Mortality and expense risk charges 212,395 316,284 180,909
-------------- ----------- --------------
Total expenses 212,395 316,284 180,909
-------------- ----------- --------------
Net investment income (loss) 1,356,223 1,402,246 1,391,406
-------------- ----------- --------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 583,376 240,525 (126,749)
-------------- ----------- --------------
Net realized gains (losses) 583,376 240,525 (126,749)
-------------- ----------- --------------
Change in unrealized gains (losses) on investments (863,576) 1,315,427 5,411,601
-------------- ----------- --------------
Net realized and changes in unrealized gains (losses)
on investments (280,200) 1,555,952 5,284,852
-------------- ----------- --------------
Net increase (decrease) in net assets resulting
from operations $ 1,076,023 $ 2,958,198 $ 6,676,258
============== =========== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
56
MIST LORD ABBETT MID CAP VALUE MIST MET/FRANKLIN INCOME
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------- ---------------------------
2011 2010 2009 2011 2010 2009
-------------- -------- ----------- ---------- -------- -------
$ 603 $ 568 $ 1,893 $ 8,323 $ 3,216 $ --
-------------- -------- ----------- ---------- -------- -------
437 369 335 -- -- --
-------------- -------- ----------- ---------- -------- -------
437 369 335 -- -- --
-------------- -------- ----------- ---------- -------- -------
166 199 1,558 8,323 3,216 --
-------------- -------- ----------- ---------- -------- -------
-- -- -- 5,005 433 --
818 3,236 (38,897) 700 390 54
-------------- -------- ----------- ---------- -------- -------
818 3,236 (38,897) 5,705 823 54
-------------- -------- ----------- ---------- -------- -------
(5,510) 19,769 57,059 (8,507) 10,272 9,507
-------------- -------- ----------- ---------- -------- -------
(4,692) 23,005 18,162 (2,802) 11,095 9,561
-------------- -------- ----------- ---------- -------- -------
$ (4,526) $ 23,204 $ 19,720 $ 5,521 $ 14,311 $ 9,561
============== ======== =========== ========== ======== =======
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, 2011, 2010 AND 2009
MIST MET/FRANKLIN MUTUAL SHARES
INVESTMENT DIVISION
----------------------------------
2011 2010 2009
--------- --------- -------------
INVESTMENT INCOME:
Dividends $ 1,982 $ -- $ --
--------- --------- -------------
EXPENSES:
Mortality and expense risk charges -- -- --
--------- --------- -------------
Total expenses -- -- --
--------- --------- -------------
Net investment income (loss) 1,982 -- --
--------- --------- -------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions 3,716 577 --
Realized gains (losses) on sale of investments 386 106 (91)
--------- --------- -------------
Net realized gains (losses) 4,102 683 (91)
--------- --------- -------------
Change in unrealized gains (losses) on investments (6,478) 4,077 4,710
--------- --------- -------------
Net realized and changes in unrealized gains (losses)
on investments (2,376) 4,760 4,619
--------- --------- -------------
Net increase (decrease) in net assets resulting
from operations $ (394) $ 4,760 $ 4,619
========= ========= =============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
58
MIST MET/FRANKLIN TEMPLETON FOUNDING STRATEGY MIST MET/TEMPLETON GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------- --------------------------------
2011 2010 2009 2011 2010 2009
----------- -------------- ------------------ ----------- --------- ----------
$ 5,031 $ -- $ -- $ 792 $ 305 $ 2
----------- -------------- ------------------ ----------- --------- ----------
-- -- -- -- -- --
----------- -------------- ------------------ ----------- --------- ----------
-- -- -- -- -- --
----------- -------------- ------------------ ----------- --------- ----------
5,031 -- -- 792 305 2
----------- -------------- ------------------ ----------- --------- ----------
255 1 -- -- -- --
2,035 1,545 565 371 125 (60)
----------- -------------- ------------------ ----------- --------- ----------
2,290 1,546 565 371 125 (60)
----------- -------------- ------------------ ----------- --------- ----------
(10,599) 23,230 14,572 (5,463) 3,904 3,117
----------- -------------- ------------------ ----------- --------- ----------
(8,309) 24,776 15,137 (5,092) 4,029 3,057
----------- -------------- ------------------ ----------- --------- ----------
$ (3,278) $ 24,776 $ 15,137 $ (4,300) $ 4,334 $ 3,059
=========== ============== ================== =========== ========= ==========
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, 2011, 2010 AND 2009
MIST MFS
MIST METLIFE EMERGING
AGGRESSIVE STRATEGY MARKETS EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------- ----------------------
2011 (f) 2011 (f)
---------------------- ----------------------
INVESTMENT INCOME:
Dividends $ -- $ --
---------------------- ----------------------
EXPENSES:
Mortality and expense risk charges 77,007 788
---------------------- ----------------------
Total expenses 77,007 788
---------------------- ----------------------
Net investment income (loss) (77,007) (788)
---------------------- ----------------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- --
Realized gains (losses) on sale of investments (117,896) (70)
---------------------- ----------------------
Net realized gains (losses) (117,896) (70)
---------------------- ----------------------
Change in unrealized gains (losses) on investments (1,834,063) (3,209)
---------------------- ----------------------
Net realized and changes in unrealized gains (losses) on investments (1,951,959) (3,279)
---------------------- ----------------------
Net increase (decrease) in net assets resulting from operations $ (2,028,966) $ (4,067)
====================== ======================
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
60
MIST MFS RESEARCH INTERNATIONAL MIST MORGAN STANLEY MID CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------- --------------------------------------------
2011 2010 2009 2011 2010 2009
--------------- -------------- -------------- ---------------- --------------- -----------
$ 285,362 $ 240,942 $ 369,327 $ 1,490,199 $ 28 $ --
--------------- -------------- -------------- ---------------- --------------- -----------
108,556 106,709 89,063 1,473,993 957,621 870
--------------- -------------- -------------- ---------------- --------------- -----------
108,556 106,709 89,063 1,473,993 957,621 870
--------------- -------------- -------------- ---------------- --------------- -----------
176,806 134,233 280,264 16,206 (957,593) (870)
--------------- -------------- -------------- ---------------- --------------- -----------
-- -- -- 5,251,936 -- --
(233,782) (545,005) (1,024,253) 2,604,216 336,382 1,780
--------------- -------------- -------------- ---------------- --------------- -----------
(233,782) (545,005) (1,024,253) 7,856,152 336,382 1,780
--------------- -------------- -------------- ---------------- --------------- -----------
(1,480,693) 1,743,808 3,897,065 (21,552,444) 31,775,159 75,648
--------------- -------------- -------------- ---------------- --------------- -----------
(1,714,475) 1,198,803 2,872,812 (13,696,292) 32,111,541 77,428
--------------- -------------- -------------- ---------------- --------------- -----------
$ (1,537,669) $ 1,333,036 $ 3,153,076 $ (13,680,086) $ 31,153,948 $ 76,558
=============== ============== ============== ================ =============== ===========
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, 2011, 2010 AND 2009
MIST OPPENHEIMER CAPITAL APPRECIATION
INVESTMENT DIVISION
-------------------------------------
2011 2010 2009
------------ ----------- ------------
INVESTMENT INCOME:
Dividends $ 6,135 $ 10,876 $ --
------------ ----------- ------------
EXPENSES:
Mortality and expense risk charges 14,133 13,539 10,277
------------ ----------- ------------
Total expenses 14,133 13,539 10,277
------------ ----------- ------------
Net investment income (loss) (7,998) (2,663) (10,277)
------------ ----------- ------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments (25,379) (39,996) (109,001)
------------ ----------- ------------
Net realized gains (losses) (25,379) (39,996) (109,001)
------------ ----------- ------------
Change in unrealized gains (losses) on investments 5,975 190,578 558,202
------------ ----------- ------------
Net realized and changes in unrealized gains (losses)
on investments (19,404) 150,582 449,201
------------ ----------- ------------
Net increase (decrease) in net assets resulting
from operations $ (27,402) $ 147,919 $ 438,924
============ =========== ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
62
MIST PIMCO INFLATION PROTECTED BOND MIST PIMCO TOTAL RETURN
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------ --------------------------------------
2011 2010 2009 2011 2010 2009
----------- --------- -------------- -------------- ----------- -----------
$ 165,169 $ 210,729 $ 247,574 $ 1,344,247 $ 1,634,551 $ 2,762,595
----------- --------- -------------- -------------- ----------- -----------
69,974 64,055 52,710 368,735 360,915 310,295
----------- --------- -------------- -------------- ----------- -----------
69,974 64,055 52,710 368,735 360,915 310,295
----------- --------- -------------- -------------- ----------- -----------
95,195 146,674 194,864 975,512 1,273,636 2,452,300
----------- --------- -------------- -------------- ----------- -----------
424,271 220,376 -- 1,446,133 236,060 1,566,277
100,776 60,903 (46,474) 187,988 238,435 10,564
----------- --------- -------------- -------------- ----------- -----------
525,047 281,279 (46,474) 1,634,121 474,495 1,576,841
----------- --------- -------------- -------------- ----------- -----------
331,187 130,473 877,182 (1,410,547) 1,426,113 1,911,046
----------- --------- -------------- -------------- ----------- -----------
856,234 411,752 830,708 223,574 1,900,608 3,487,887
----------- --------- -------------- -------------- ----------- -----------
$ 951,429 $ 558,426 $ 1,025,572 $ 1,199,086 $ 3,174,244 $ 5,940,187
=========== ========= ============== ============== =========== ===========
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, 2011, 2010 AND 2009
MIST PIONEER FUND
INVESTMENT DIVISION
--------------------------------
2011 2010 2009 (e)
----------- -------- -----------
INVESTMENT INCOME:
Dividends $ 2,289 $ 1,987 $ --
----------- -------- -----------
EXPENSES:
Mortality and expense risk charges 770 982 580
----------- -------- -----------
Total expenses 770 982 580
----------- -------- -----------
Net investment income (loss) 1,519 1,005 (580)
----------- -------- -----------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 21,102 6,067 1,986
----------- -------- -----------
Net realized gains (losses) 21,102 6,067 1,986
----------- -------- -----------
Change in unrealized gains (losses) on investments (30,602) 25,716 48,304
----------- -------- -----------
Net realized and changes in unrealized gains (losses)
on investments (9,500) 31,783 50,290
----------- -------- -----------
Net increase (decrease) in net assets resulting
from operations $ (7,981) $ 32,788 $ 49,710
=========== ======== ===========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
64
MIST RCM TECHNOLOGY MIST SSGA GROWTH AND INCOME ETF
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------- -------------------------------
2011 2010 2009 2011 2010 2009
--------------- -------------- -------------- ----------- --------- ---------
$ -- $ -- $ -- $ 74,234 $ 35,130 $ 13,156
--------------- -------------- -------------- ----------- --------- ---------
125,028 111,175 82,504 32,826 22,837 6,883
--------------- -------------- -------------- ----------- --------- ---------
125,028 111,175 82,504 32,826 22,837 6,883
--------------- -------------- -------------- ----------- --------- ---------
(125,028) (111,175) (82,504) 41,408 12,293 6,273
--------------- -------------- -------------- ----------- --------- ---------
-- -- -- 74,142 115 --
512,571 (54,192) (600,648) 49,491 16,043 3,801
--------------- -------------- -------------- ----------- --------- ---------
512,571 (54,192) (600,648) 123,633 16,158 3,801
--------------- -------------- -------------- ----------- --------- ---------
(1,944,446) 3,551,862 5,182,655 (151,325) 322,318 204,020
--------------- -------------- -------------- ----------- --------- ---------
(1,431,875) 3,497,670 4,582,007 (27,692) 338,476 207,821
--------------- -------------- -------------- ----------- --------- ---------
$ (1,556,903) $ 3,386,495 $ 4,499,503 $ 13,716 $ 350,769 $ 214,094
=============== ============== ============== =========== ========= =========
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, 2011, 2010 AND 2009
MIST SSGA GROWTH ETF
INVESTMENT DIVISION
-----------------------------------
2011 2010 2009
------------ --------- ------------
INVESTMENT INCOME:
Dividends $ 57,479 $ 34,185 $ 15,419
------------ --------- ------------
EXPENSES:
Mortality and expense risk charges 26,324 17,903 8,413
------------ --------- ------------
Total expenses 26,324 17,903 8,413
------------ --------- ------------
Net investment income (loss) 31,155 16,282 7,006
------------ --------- ------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 63,035 12,378 (20,730)
------------ --------- ------------
Net realized gains (losses) 63,035 12,378 (20,730)
------------ --------- ------------
Change in unrealized gains (losses) on investments (183,850) 271,601 309,775
------------ --------- ------------
Net realized and changes in unrealized gains (losses)
on investments (120,815) 283,979 289,045
------------ --------- ------------
Net increase (decrease) in net assets resulting
from operations $ (89,660) $ 300,261 $ 296,051
============ ========= ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
66
MIST T. ROWE PRICE LARGE CAP VALUE MIST T. ROWE PRICE MID CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------- ----------------------------------------
2011 2010 2009 2011 2010 2009
---------- ----------- ----------- ------------- ------------ -------------
$ 9,481 $ 65,246 $ 104,472 $ -- $ -- $ --
---------- ----------- ----------- ------------- ------------ -------------
24,068 134,790 18,231 314,304 150,122 115,483
---------- ----------- ----------- ------------- ------------ -------------
24,068 134,790 18,231 314,304 150,122 115,483
---------- ----------- ----------- ------------- ------------ -------------
(14,587) (69,544) 86,241 (314,304) (150,122) (115,483)
---------- ----------- ----------- ------------- ------------ -------------
-- -- -- 560,152 -- --
(435,260) (79,021) (261,167) 312,619 131,367 (381,122)
---------- ----------- ----------- ------------- ------------ -------------
(435,260) (79,021) (261,167) 872,771 131,367 (381,122)
---------- ----------- ----------- ------------- ------------ -------------
577,510 921,874 894,542 (1,837,318) 4,580,355 5,596,487
---------- ----------- ----------- ------------- ------------ -------------
142,250 842,853 633,375 (964,547) 4,711,722 5,215,365
---------- ----------- ----------- ------------- ------------ -------------
$ 127,663 $ 773,309 $ 719,616 $(1,278,851) $ 4,561,600 $ 5,099,882
========== =========== =========== ============= ============ =============
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, 2011, 2010 AND 2009
MIST THIRD AVENUE SMALL CAP VALUE
INVESTMENT DIVISION
----------------------------------
2011 2010 2009
------------- --------- ----------
INVESTMENT INCOME:
Dividends $ 9,414 $ 12,822 $ 3,058
------------- --------- ----------
EXPENSES:
Mortality and expense risk charges 10,152 11,741 2,219
------------- --------- ----------
Total expenses 10,152 11,741 2,219
------------- --------- ----------
Net investment income (loss) (738) 1,081 839
------------- --------- ----------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- 2,838
Realized gains (losses) on sale of investments 86,881 42,370 (17,013)
------------- --------- ----------
Net realized gains (losses) 86,881 42,370 (14,175)
------------- --------- ----------
Change in unrealized gains (losses) on investments (240,493) 198,929 152,916
------------- --------- ----------
Net realized and changes in unrealized gains (losses)
on investments (153,612) 241,299 138,741
------------- --------- ----------
Net increase (decrease) in net assets resulting
from operations $ (154,350) $ 242,380 $ 139,580
============= ========= ==========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
68
MSF ARTIO INTERNATIONAL STOCK MSF BARCLAYS CAPITAL AGGREGATE BOND INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------- -----------------------------------------
2011 2010 2009 2011 2010 2009
--------------- -------------- -------------- ----------- ------------- ---------------
$ 753,948 $ 672,423 $ 284,863 $ 3,919,750 $ 4,039,520 $ 5,910,030
--------------- -------------- -------------- ----------- ------------- ---------------
342,874 360,189 333,983 911,279 904,600 732,517
--------------- -------------- -------------- ----------- ------------- ---------------
342,874 360,189 333,983 911,279 904,600 732,517
--------------- -------------- -------------- ----------- ------------- ---------------
411,074 312,234 (49,120) 3,008,471 3,134,920 5,177,513
--------------- -------------- -------------- ----------- ------------- ---------------
-- -- -- -- -- --
(808,593) (1,030,425) (2,053,375) 843,640 613,564 195,723
--------------- -------------- -------------- ----------- ------------- ---------------
(808,593) (1,030,425) (2,053,375) 843,640 613,564 195,723
--------------- -------------- -------------- ----------- ------------- ---------------
(8,900,342) 3,370,719 10,298,349 3,276,276 1,607,603 (1,139,158)
--------------- -------------- -------------- ----------- ------------- ---------------
(9,708,935) 2,340,294 8,244,974 4,119,916 2,221,167 (943,435)
--------------- -------------- -------------- ----------- ------------- ---------------
$ (9,297,861) $ 2,652,528 $ 8,195,854 $ 7,128,387 $ 5,356,087 $ 4,234,078
=============== ============== ============== =========== ============= ===============
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, 2011, 2010 AND 2009
MSF BLACKROCK AGGRESSIVE GROWTH
INVESTMENT DIVISION
-----------------------------------------------
2011 2010 2009
--------------- --------------- ---------------
INVESTMENT INCOME:
Dividends $ 597,164 $ 125,813 $ 309,682
--------------- --------------- ---------------
EXPENSES:
Mortality and expense risk charges 1,828,016 1,617,041 1,367,142
--------------- --------------- ---------------
Total expenses 1,828,016 1,617,041 1,367,142
--------------- --------------- ---------------
Net investment income (loss) (1,230,852) (1,491,228) (1,057,460)
--------------- --------------- ---------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 2,544,325 451,106 (3,328,441)
--------------- --------------- ---------------
Net realized gains (losses) 2,544,325 451,106 (3,328,441)
--------------- --------------- ---------------
Change in unrealized gains (losses) on investments (8,863,059) 26,312,677 66,805,065
--------------- --------------- ---------------
Net realized and changes in unrealized gains (losses)
on investments (6,318,734) 26,763,783 63,476,624
--------------- --------------- ---------------
Net increase (decrease) in net assets resulting
from operations $ (7,549,586) $ 25,272,555 $ 62,419,164
=============== =============== ===============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
70
MSF BLACKROCK BOND INCOME MSF BLACKROCK DIVERSIFIED
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------- ------------------------------------------
2011 2010 2009 2011 2010 2009
----------- ----------- -------------- -------------- ------------- -------------
$ 3,304,583 $ 3,345,493 $ 5,731,533 $ 6,407,012 $ 4,856,230 $ 12,214,068
----------- ----------- -------------- -------------- ------------- -------------
652,314 675,543 651,039 2,319,083 2,202,890 2,044,120
----------- ----------- -------------- -------------- ------------- -------------
652,314 675,543 651,039 2,319,083 2,202,890 2,044,120
----------- ----------- -------------- -------------- ------------- -------------
2,652,269 2,669,950 5,080,494 4,087,929 2,653,340 10,169,948
----------- ----------- -------------- -------------- ------------- -------------
-- -- -- -- -- --
132,024 24,746 (553,787) (191,522) (1,951,136) (4,609,576)
----------- ----------- -------------- -------------- ------------- -------------
132,024 24,746 (553,787) (191,522) (1,951,136) (4,609,576)
----------- ----------- -------------- -------------- ------------- -------------
1,930,533 3,372,816 2,142,811 3,658,514 20,635,275 31,028,944
----------- ----------- -------------- -------------- ------------- -------------
2,062,557 3,397,562 1,589,024 3,466,992 18,684,139 26,419,368
----------- ----------- -------------- -------------- ------------- -------------
$ 4,714,826 $ 6,067,512 $ 6,669,518 $ 7,554,921 $ 21,337,479 $ 36,589,316
=========== =========== ============== ============== ============= =============
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, 2011, 2010 AND 2009
MSF BLACKROCK LARGE CAP VALUE
INVESTMENT DIVISION
------------------------------------------
2011 2010 2009
------------ -------------- --------------
INVESTMENT INCOME:
Dividends $ 149,056 $ 122,314 $ 155,310
------------ -------------- --------------
EXPENSES:
Mortality and expense risk charges 105,410 95,279 81,859
------------ -------------- --------------
Total expenses 105,410 95,279 81,859
------------ -------------- --------------
Net investment income (loss) 43,646 27,035 73,451
------------ -------------- --------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments (80,782) (263,466) (513,587)
------------ -------------- --------------
Net realized gains (losses) (80,782) (263,466) (513,587)
------------ -------------- --------------
Change in unrealized gains (losses) on investments 254,349 1,265,453 1,615,283
------------ -------------- --------------
Net realized and changes in unrealized gains (losses)
on investments 173,567 1,001,987 1,101,696
------------ -------------- --------------
Net increase (decrease) in net assets resulting
from operations $ 217,213 $ 1,029,022 $ 1,175,147
============ ============== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
72
MSF BLACKROCK LEGACY LARGE CAP GROWTH MSF BLACKROCK MONEY MARKET
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------- ---------------------------------------
2011 2010 2009 2011 2010 2009
------------- -------------- -------------- ------------ ------------- ------------
$ 14,560 $ 14,175 $ 29,634 $ -- $ 3,600 $ 269,650
------------- -------------- -------------- ------------ ------------- ------------
61,180 52,945 35,213 161,149 304,506 280,999
------------- -------------- -------------- ------------ ------------- ------------
61,180 52,945 35,213 161,149 304,506 280,999
------------- -------------- -------------- ------------ ------------- ------------
(46,620) (38,770) (5,579) (161,149) (300,906) (11,349)
------------- -------------- -------------- ------------ ------------- ------------
-- -- -- -- -- --
137,813 75,641 (146,284) -- -- --
------------- -------------- -------------- ------------ ------------- ------------
137,813 75,641 (146,284) -- -- --
------------- -------------- -------------- ------------ ------------- ------------
(879,158) 1,107,022 1,684,656 -- -- --
------------- -------------- -------------- ------------ ------------- ------------
(741,345) 1,182,663 1,538,372 -- -- --
------------- -------------- -------------- ------------ ------------- ------------
$ (787,965) $ 1,143,893 $ 1,532,793 $(161,149) $ (300,906) $ (11,349)
============= ============== ============== ============ ============= ============
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, 2011, 2010 AND 2009
MSF DAVIS VENTURE VALUE
INVESTMENT DIVISION
-------------------------------------------
2011 2010 2009
--------------- ----------- ---------------
INVESTMENT INCOME:
Dividends $ 648,127 $ 534,093 $ 679,120
--------------- ----------- ---------------
EXPENSES:
Mortality and expense risk charges 437,275 444,758 366,383
--------------- ----------- ---------------
Total expenses 437,275 444,758 366,383
--------------- ----------- ---------------
Net investment income (loss) 210,852 89,335 312,737
--------------- ----------- ---------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 492,146 191,969 (723,952)
--------------- ----------- ---------------
Net realized gains (losses) 492,146 191,969 (723,952)
--------------- ----------- ---------------
Change in unrealized gains (losses) on investments (3,392,027) 5,562,556 12,907,686
--------------- ----------- ---------------
Net realized and changes in unrealized gains (losses)
on investments (2,899,881) 5,754,525 12,183,734
--------------- ----------- ---------------
Net increase (decrease) in net assets resulting
from operations $ (2,689,029) $ 5,843,860 $ 12,496,471
=============== =========== ===============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
74
MSF FI VALUE LEADERS MSF JENNISON GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------- -----------------------------------------
2011 2010 2009 2011 2010 2009
------------- ------------ ------------ ----------- -------------- --------------
$ 70,725 $ 90,469 $ 128,519 $ 42,021 $ 82,750 $ 21,249
------------- ------------ ------------ ----------- -------------- --------------
51,616 48,155 38,405 109,004 116,354 96,459
------------- ------------ ------------ ----------- -------------- --------------
51,616 48,155 38,405 109,004 116,354 96,459
----------- ------------ ------------ ----------- -------------- --------------
19,109 42,314 90,114 (66,983) (33,604) (75,210)
----------- ------------ ------------ ----------- -------------- --------------
-- -- -- -- -- --
(99,840) (145,291) (259,906) 251,119 17,747 (140,559)
------------- ------------ ------------ ----------- -------------- --------------
(99,840) (145,291) (259,906) 251,119 17,747 (140,559)
------------- ------------ ------------ ----------- -------------- --------------
(347,209) 885,079 1,128,894 (215,551) 1,535,759 4,015,386
------------- ------------ ------------ ----------- -------------- --------------
(447,049) 739,788 868,988 35,568 1,553,506 3,874,827
------------- ------------ ------------ ----------- -------------- --------------
$ (427,940) $ 782,102 $ 959,102 $(31,415) $ 1,519,902 $ 3,799,617
============= ============ ============ =========== ============== ==============
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, 2011, 2010 AND 2009
MSF LOOMIS SAYLES SMALL CAP CORE
INVESTMENT DIVISION
-----------------------------------------
2011 2010 2009
----------- -------------- --------------
INVESTMENT INCOME:
Dividends $ 20,207 $ 14,765 $ 34,048
----------- -------------- --------------
EXPENSES:
Mortality and expense risk charges 137,144 127,370 100,553
----------- -------------- --------------
Total expenses 137,144 127,370 100,553
----------- -------------- --------------
Net investment income (loss) (116,937) (112,605) (66,505)
----------- -------------- --------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 258,722 (55,224) (439,969)
----------- -------------- --------------
Net realized gains (losses) 258,722 (55,224) (439,969)
----------- -------------- --------------
Change in unrealized gains (losses) on investments (166,265) 4,065,140 3,809,050
----------- -------------- --------------
Net realized and changes in unrealized gains (losses)
on investments 92,457 4,009,916 3,369,081
----------- -------------- --------------
Net increase (decrease) in net assets resulting
from operations $ (24,480) $ 3,897,311 $ 3,302,576
=========== ============== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
76
MSF LOOMIS SAYLES SMALL CAP GROWTH MSF MET/ARTISAN MID CAP VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------- --------------------------------------------
2011 2010 2009 2011 2010 2009
-------------- -------------- -------------- -------------- -------------- ---------------
$ -- $ -- $ -- $ 455,060 $ 314,548 $ 390,395
-------------- -------------- -------------- -------------- -------------- ---------------
65,916 51,755 39,304 394,641 362,293 295,816
-------------- -------------- -------------- -------------- -------------- ---------------
65,916 51,755 39,304 394,641 362,293 295,816
-------------- -------------- -------------- -------------- -------------- ---------------
(65,916) (51,755) (39,304) 60,419 (47,745) 94,579
-------------- -------------- -------------- -------------- -------------- ---------------
-- -- -- -- -- --
104,198 (47,680) (219,528) (412,007) (887,093) (2,074,439)
-------------- -------------- -------------- -------------- -------------- ---------------
104,198 (47,680) (219,528) (412,007) (887,093) (2,074,439)
-------------- -------------- -------------- -------------- -------------- ---------------
121,090 1,843,398 1,519,136 3,096,938 6,661,231 14,134,862
-------------- -------------- -------------- -------------- -------------- ---------------
225,288 1,795,718 1,299,608 2,684,931 5,774,138 12,060,423
-------------- -------------- -------------- -------------- -------------- ---------------
$ 159,372 $ 1,743,963 $ 1,260,304 $ 2,745,350 $ 5,726,393 $ 12,155,002
============== ============== ============== ============== ============== ===============
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, 2011, 2010 AND 2009
MSF METLIFE CONSERVATIVE ALLOCATION
INVESTMENT DIVISION
-----------------------------------
2011 2010 2009
------------ --------- ------------
INVESTMENT INCOME:
Dividends $ 98,787 $ 102,209 $ 56,682
------------ --------- ------------
EXPENSES:
Mortality and expense risk charges 30,203 21,942 14,419
------------ --------- ------------
Total expenses 30,203 21,942 14,419
------------ --------- ------------
Net investment income (loss) 68,584 80,267 42,263
------------ --------- ------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- 10,668
Realized gains (losses) on sale of investments 77,218 46,459 (4,941)
------------ --------- ------------
Net realized gains (losses) 77,218 46,459 5,727
------------ --------- ------------
Change in unrealized gains (losses) on investments (37,275) 119,161 276,504
------------ --------- ------------
Net realized and changes in unrealized gains (losses)
on investments 39,943 165,620 282,231
------------ --------- ------------
Net increase (decrease) in net assets resulting
from operations $ 108,527 $ 245,887 $ 324,494
============ ========= ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
78
MSF METLIFE CONSERVATIVE TO MODERATE ALLOCATION MSF METLIFE MID CAP STOCK INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------- -------------------------------------------------
2011 2010 2009 2011 2010 2009
------------ ---------------- ----------------- --------------- -------------- -----------------
$ 156,398 $ 193,442 $ 133,159 $ 593,088 $ 562,548 $ 810,735
------------ ---------------- ----------------- --------------- -------------- -----------------
53,513 46,556 35,274 500,504 473,626 374,527
------------ ---------------- ----------------- --------------- -------------- -----------------
53,513 46,556 35,274 500,504 473,626 374,527
------------ ---------------- ----------------- --------------- -------------- -----------------
102,885 146,886 97,885 92,584 88,922 436,208
------------ ---------------- ----------------- --------------- -------------- -----------------
-- -- 27,807 2,722,599 70,909 1,783,617
135,436 32,319 (95,953) 678,616 177,461 (1,475,288)
------------ ---------------- ----------------- --------------- -------------- -----------------
135,436 32,319 (68,146) 3,401,215 248,370 308,329
------------ ---------------- ----------------- --------------- -------------- -----------------
(210,123) 421,073 828,280 (4,954,472) 12,893,844 13,600,526
------------ ---------------- ----------------- --------------- -------------- -----------------
(74,687) 453,392 760,134 (1,553,257) 13,142,214 13,908,855
------------ ---------------- ----------------- --------------- -------------- -----------------
$ 28,198 $ 600,278 $ 858,019 $ (1,460,673) $ 13,231,136 $ 14,345,063
============ ================ ================= =============== ============== =================
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, 2011, 2010 AND 2009
MSF METLIFE MODERATE ALLOCATION
INVESTMENT DIVISION
---------------------------------------
2011 2010 2009
------------- ----------- -------------
INVESTMENT INCOME:
Dividends $ 669,982 $ 877,469 $ 699,782
------------- ----------- -------------
EXPENSES:
Mortality and expense risk charges 304,573 264,549 193,170
------------- ----------- -------------
Total expenses 304,573 264,549 193,170
------------- ----------- -------------
Net investment income (loss) 365,409 612,920 506,612
------------- ----------- -------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- 337,203
Realized gains (losses) on sale of investments 234,474 17,779 (340,090)
------------- ----------- -------------
Net realized gains (losses) 234,474 17,779 (2,887)
------------- ----------- -------------
Change in unrealized gains (losses) on investments (1,362,402) 3,378,733 5,007,760
------------- ----------- -------------
Net realized and changes in unrealized gains (losses)
on investments (1,127,928) 3,396,512 5,004,873
------------- ----------- -------------
Net increase (decrease) in net assets resulting
from operations $ (762,519) $ 4,009,432 $ 5,511,485
============= =========== =============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
80
MSF METLIFE MODERATE TO AGGRESSIVE ALLOCATION MSF METLIFE STOCK INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------- ------------------------------------------------
2011 2010 2009 2011 2010 2009
--------------- ----------------- --------------- --------------- --------------- ----------------
$ 1,073,341 $ 1,283,219 $ 1,144,971 $ 11,182,368 $ 10,671,016 $ 13,698,992
--------------- ----------------- --------------- --------------- --------------- ----------------
567,221 486,295 365,479 4,861,432 4,862,670 4,016,527
--------------- ----------------- --------------- --------------- --------------- ----------------
567,221 486,295 365,479 4,861,432 4,862,670 4,016,527
--------------- ----------------- --------------- --------------- --------------- ----------------
506,120 796,924 779,492 6,320,936 5,808,346 9,682,465
--------------- ----------------- --------------- --------------- --------------- ----------------
-- -- 560,846 4,115,111 -- 10,241,628
112,005 (102,509) (694,062) (324,668) (5,405,568) (11,218,400)
--------------- ----------------- --------------- --------------- --------------- ----------------
112,005 (102,509) (133,216) 3,790,443 (5,405,568) (976,772)
--------------- ----------------- --------------- --------------- --------------- ----------------
(3,772,324) 7,116,457 10,602,923 (2,093,968) 82,259,608 112,925,652
--------------- ----------------- --------------- --------------- --------------- ----------------
(3,660,319) 7,013,948 10,469,707 1,696,475 76,854,040 111,948,880
--------------- ----------------- --------------- --------------- --------------- ----------------
$ (3,154,199) $ 7,810,872 $ 11,249,199 $ 8,017,411 $ 82,662,386 $ 121,631,345
=============== ================= =============== =============== =============== ================
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, 2011, 2010 AND 2009
MSF MFS TOTAL RETURN
INVESTMENT DIVISION
--------------------------------------
2011 2010 2009
------------ ------------ ------------
INVESTMENT INCOME:
Dividends $ 208,852 $ 217,114 $ 230,711
------------ ------------ ------------
EXPENSES:
Mortality and expense risk charges 112,685 86,631 51,498
------------ ------------ ------------
Total expenses 112,685 86,631 51,498
------------ ------------ ------------
Net investment income (loss) 96,167 130,483 179,213
------------ ------------ ------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments (29,847) (99,947) (173,243)
------------ ------------ ------------
Net realized gains (losses) (29,847) (99,947) (173,243)
------------ ------------ ------------
Change in unrealized gains (losses) on investments (11,189) 568,242 937,515
------------ ------------ ------------
Net realized and changes in unrealized gains (losses)
on investments (41,036) 468,295 764,272
------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations $ 55,131 $ 598,778 $ 943,485
============ ============ ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
82
MSF MFS VALUE MSF MORGAN STANLEY EAFE INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------ ----------------------------------------------
2011 2010 2009 2011 2010 2009
------------ -------------- -------------- --------------- -------------- ---------------
$ 836,589 $ 713,180 $ -- $ 1,549,893 $ 1,568,147 $ 2,127,820
------------ -------------- -------------- --------------- -------------- ---------------
469,226 457,584 360,654 552,900 524,541 418,461
------------ -------------- -------------- --------------- -------------- ---------------
469,226 457,584 360,654 552,900 524,541 418,461
------------ -------------- -------------- --------------- -------------- ---------------
367,363 255,596 (360,654) 996,993 1,043,606 1,709,359
------------ -------------- -------------- --------------- -------------- ---------------
-- -- -- -- -- 345,458
(44,982) (425,864) (877,734) 137,025 (236,046) (800,654)
------------ -------------- -------------- --------------- -------------- ---------------
(44,982) (425,864) (877,734) 137,025 (236,046) (455,196)
------------ -------------- -------------- --------------- -------------- ---------------
(346,891) 5,358,513 9,493,542 (9,604,700) 3,674,685 11,844,795
------------ -------------- -------------- --------------- -------------- ---------------
(391,873) 4,932,649 8,615,808 (9,467,675) 3,438,639 11,389,599
------------ -------------- -------------- --------------- -------------- ---------------
$ (24,510) $ 5,188,245 $ 8,255,154 $ (8,470,682) $ 4,482,245 $ 13,098,958
============ ============== ============== =============== ============== ===============
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, 2011, 2010 AND 2009
MSF NEUBERGER BERMAN GENESIS
INVESTMENT DIVISION
-------------------------------------------
2011 2010 2009
-------------- ------------- --------------
INVESTMENT INCOME:
Dividends $ 596,562 $ 353,007 $ 663,127
-------------- ------------- --------------
EXPENSES:
Mortality and expense risk charges 663,840 628,387 512,489
-------------- ------------- --------------
Total expenses 663,840 628,387 512,489
-------------- ------------- --------------
Net investment income (loss) (67,278) (275,380) 150,638
-------------- ------------- --------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments (976,828) (2,085,738) (2,703,187)
-------------- ------------- --------------
Net realized gains (losses) (976,828) (2,085,738) (2,703,187)
-------------- ------------- --------------
Change in unrealized gains (losses) on investments 4,961,322 15,927,942 10,045,644
-------------- ------------- --------------
Net realized and changes in unrealized gains (losses)
on investments 3,984,494 13,842,204 7,342,457
-------------- ------------- --------------
Net increase (decrease) in net assets resulting
from operations $ 3,917,216 $ 13,566,824 $ 7,493,095
============== ============= ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
84
MSF NEUBERGER BERMAN MID CAP VALUE MSF OPPENHEIMER GLOBAL EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------- -----------------------------------------
2011 2010 2009 2011 2010 2009
--------------- --------------- --------------- --------------- ----------- -------------
$ 587,608 $ 569,862 $ 813,259 $ 845,569 $ 612,821 $ 852,361
--------------- --------------- --------------- --------------- ----------- -------------
575,836 570,197 440,022 304,815 297,201 258,416
--------------- --------------- --------------- --------------- ----------- -------------
575,836 570,197 440,022 304,815 297,201 258,416
--------------- --------------- --------------- --------------- ----------- -------------
11,772 (335) 373,237 540,754 315,620 593,945
--------------- --------------- --------------- --------------- ----------- -------------
-- -- 16,184 -- -- --
682,184 12,235 (1,401,599) 892,248 362,727 (362,452)
--------------- --------------- --------------- --------------- ----------- -------------
682,184 12,235 (1,385,415) 892,248 362,727 (362,452)
--------------- --------------- --------------- --------------- ----------- -------------
(5,912,606) 15,949,723 21,838,137 (5,213,727) 5,192,068 11,124,292
--------------- --------------- --------------- --------------- ----------- -------------
(5,230,422) 15,961,958 20,452,722 (4,321,479) 5,554,795 10,761,840
--------------- --------------- --------------- --------------- ----------- -------------
$ (5,218,650) $ 15,961,623 $ 20,825,959 $ (3,780,725) $ 5,870,415 $ 11,355,785
=============== =============== =============== =============== =========== =============
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, 2011, 2010 AND 2009
MSF RUSSELL 2000 INDEX
INVESTMENT DIVISION
----------------------------------------------
2011 2010 2009
--------------- --------------- --------------
INVESTMENT INCOME:
Dividends $ 561,526 $ 547,888 $ 812,284
--------------- --------------- --------------
EXPENSES:
Mortality and expense risk charges 389,979 378,183 318,144
--------------- --------------- --------------
Total expenses 389,979 378,183 318,144
--------------- --------------- --------------
Net investment income (loss) 171,547 169,705 494,140
--------------- --------------- --------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- 1,106,089
Realized gains (losses) on sale of investments 734,988 (66,857) (1,035,970)
--------------- --------------- --------------
Net realized gains (losses) 734,988 (66,857) 70,119
--------------- --------------- --------------
Change in unrealized gains (losses) on investments (3,300,203) 11,828,973 9,093,620
--------------- --------------- --------------
Net realized and changes in unrealized gains (losses)
on investments (2,565,215) 11,762,116 9,163,739
--------------- --------------- --------------
Net increase (decrease) in net assets resulting
from operations $ (2,393,668) $ 11,931,821 $ 9,657,879
=============== =============== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
86
MSF T. ROWE PRICE LARGE CAP GROWTH MSF T. ROWE PRICE SMALL CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------- ----------------------------------------------
2011 2010 2009 2011 2010 2009
------------- -------------- --------------- -------------- --------------- ---------------
$ 38,643 $ 113,187 $ 224,945 $ -- $ -- $ 200,547
------------- -------------- --------------- -------------- --------------- ---------------
354,938 373,672 295,919 968,014 769,902 477,748
------------- -------------- --------------- -------------- --------------- ---------------
354,938 373,672 295,919 968,014 769,902 477,748
------------- -------------- --------------- -------------- --------------- ---------------
(316,295) (260,485) (70,974) (968,014) (769,902) (277,201)
------------- -------------- --------------- -------------- --------------- ---------------
-- -- -- -- -- 1,576,442
908,859 253,453 (485,740) 2,332,511 562,971 (1,108,337)
------------- -------------- --------------- -------------- --------------- ---------------
908,859 253,453 (485,740) 2,332,511 562,971 468,105
------------- -------------- --------------- -------------- --------------- ---------------
(1,383,140) 6,370,252 13,392,122 (846,789) 22,601,563 19,138,611
------------- -------------- --------------- -------------- --------------- ---------------
(474,281) 6,623,705 12,906,382 1,485,722 23,164,534 19,606,716
------------- -------------- --------------- -------------- --------------- ---------------
$ (790,576) $ 6,363,220 $ 12,835,408 $ 517,708 $ 22,394,632 $ 19,329,515
============= ============== =============== ============== =============== ===============
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, 2011, 2010 AND 2009
MSF VAN ECK
GLOBAL NATURAL MSF WESTERN ASSET MANAGEMENT
RESOURCES STRATEGIC BOND OPPORTUNITIES
INVESTMENT DIVISION INVESTMENT DIVISION
------------------- --------------------------------------
2011 (f) 2011 2010 2009
------------------- ----------- ------------- ------------
INVESTMENT INCOME:
Dividends $ -- $ 1,209,466 $ 1,333,421 $ 1,175,403
------------------- ----------- ------------- ------------
EXPENSES:
Mortality and expense risk charges 609 192,580 182,131 148,016
------------------- ----------- ------------- ------------
Total expenses 609 192,580 182,131 148,016
------------------- ----------- ------------- ------------
Net investment income (loss) (609) 1,016,886 1,151,290 1,027,387
------------------- ----------- ------------- ------------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- -- 518,778
Realized gains (losses) on sale of investments (45) 144,847 71,403 (136,510)
------------------- ----------- ------------- ------------
Net realized gains (losses) (45) 144,847 71,403 382,268
------------------- ----------- ------------- ------------
Change in unrealized gains (losses)
on investments (2,198) 64,600 1,196,007 3,433,572
------------------- ----------- ------------- ------------
Net realized and changes in unrealized gains
(losses) on investments (2,243) 209,447 1,267,410 3,815,840
------------------- ----------- ------------- ------------
Net increase (decrease) in net assets
resulting from operations $ (2,852) $ 1,226,333 $ 2,418,700 $ 4,843,227
=================== =========== ============= ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
88
PIMCO VIT
ALL ASSET
MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT INVESTMENT PIMCO VIT LOW DURATION
INVESTMENT DIVISION DIVISION INVESTMENT DIVISION
-------------------------------------------- ------------ --------------------------------------
2011 2010 2009 2011 (f) 2011 2010 2009 (e)
------------ ---------------- -------------- ------------ ----------- ----------- --------------
$ 248,608 $ 448,826 $ 714,343 $ 2,796 $ 13,732 $ 12,187 $ 11,216
------------ ---------------- -------------- ------------ ----------- ----------- --------------
131,962 134,214 131,035 22 2,905 2,779 1,731
------------ ---------------- -------------- ------------ ----------- ----------- --------------
131,962 134,214 131,035 22 2,905 2,779 1,731
------------ ---------------- -------------- ------------ ----------- ----------- --------------
116,646 314,612 583,308 2,774 10,827 9,408 9,485
------------ ---------------- -------------- ------------ ----------- ----------- --------------
570,575 47,316 -- -- -- 2,469 32,906
(5,603) 1,727 (89,029) -- 618 260 180
------------ ---------------- -------------- ------------ ----------- ----------- --------------
564,972 49,043 (89,029) -- 618 2,729 33,086
------------ ---------------- -------------- ------------ ----------- ----------- --------------
82,587 435,726 44,105 (1,176) (6,243) 23,685 1,601
------------ ---------------- -------------- ------------ ----------- ----------- --------------
647,559 484,769 (44,924) (1,176) (5,625) 26,414 34,687
------------ ---------------- -------------- ------------ ----------- ----------- --------------
$ 764,205 $ 799,381 $ 538,384 $ 1,598 $ 5,202 $ 35,822 $ 44,172
============ ================ ============== ============ =========== =========== ==============
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, 2011, 2010 AND 2009
PIONEER VCT EMERGING MARKETS
INVESTMENT DIVISION
------------------------------------
2011 2010 2009
------------- ------------ ---------
INVESTMENT INCOME:
Dividends $ -- $ 3,039 $ 5,200
------------- ------------ ---------
EXPENSES:
Mortality and expense risk charges 12,310 13,622 1,999
------------- ------------ ---------
Total expenses 12,310 13,622 1,999
------------- ------------ ---------
Net investment income (loss) (12,310) (10,583) 3,201
------------- ------------ ---------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 121,447 75,682 8,989
------------- ------------ ---------
Net realized gains (losses) 121,447 75,682 8,989
------------- ------------ ---------
Change in unrealized gains (losses) on investments (327,299) 68,690 311,181
------------- ------------ ---------
Net realized and changes in unrealized gains (losses)
on investments (205,852) 144,372 320,170
------------- ------------ ---------
Net increase (decrease) in net assets
resulting from operations $ (218,162) $ 133,789 $ 323,371
============= ============ =========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) 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
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------- ------------------------
2011 2010 2009 (d) 2011 2010 (b)
----------- -------- ---------- ------------ -----------
$ 1,190 $ 801 $ -- $ 8,331 $ 5,659
----------- -------- ---------- ------------ -----------
550 297 34 1,375 619
----------- -------- ---------- ------------ -----------
550 297 34 1,375 619
----------- -------- ---------- ------------ -----------
640 504 (34) 6,956 5,040
----------- -------- ---------- ------------ -----------
-- -- -- -- --
580 313 32 1,545 197
----------- -------- ---------- ------------ -----------
580 313 32 1,545 197
----------- -------- ---------- ------------ -----------
(11,556) 14,039 2,439 (52,132) 61,964
----------- -------- ---------- ------------ -----------
(10,976) 14,352 2,471 (50,587) 62,161
----------- -------- ---------- ------------ -----------
$(10,336) $ 14,856 $ 2,437 $ (43,631) $ 67,201
=========== ======== ========== ============ ===========
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 -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009
ROYCE SMALL-CAP
INVESTMENT DIVISION
-----------------------------------
2011 2010 2009 (h)
------------ ----------- ----------
INVESTMENT INCOME:
Dividends $ 3,804 $ 425 $ --
------------ ----------- ----------
EXPENSES:
Mortality and expense risk charges 6,407 1,285 57
------------ ----------- ----------
Total expenses 6,407 1,285 57
------------ ----------- ----------
Net investment income (loss) (2,603) (860) (57)
------------ ----------- ----------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions -- -- --
Realized gains (losses) on sale of investments 18,080 2,111 16
------------ ----------- ----------
Net realized gains (losses) 18,080 2,111 16
------------ ----------- ----------
Change in unrealized gains (losses) on investments (64,398) 63,066 2,984
------------ ----------- ----------
Net realized and changes in unrealized gains (losses)
on investments (46,318) 65,177 3,000
------------ ----------- ----------
Net increase (decrease) in net assets
resulting from operations $ (48,921) $ 64,317 $ 2,943
============ =========== ==========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) 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 DEBT UIF EMERGING MARKETS EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------- ---------------------------------------
2011 2010 2009 (h) 2011 2010 2009 (h)
---------- ------ -------- ---------- ------------- --------------
$ 7,775 $ 318 $ 74 $ 1,515 $ 758 $ --
---------- ------ -------- ---------- ------------- --------------
1,372 31 6 2,182 520 17
---------- ------ -------- ---------- ------------- --------------
1,372 31 6 2,182 520 17
---------- ------ -------- ---------- ------------- --------------
6,403 287 68 (667) 238 (17)
---------- ------ -------- ---------- ------------- --------------
2,422 -- -- -- -- --
392 87 32 4,478 899 480
---------- ------ -------- ---------- ------------- --------------
2,814 87 32 4,478 899 480
---------- ------ -------- ---------- ------------- --------------
79 318 95 (99,779) 38,992 1,146
---------- ------ -------- ---------- ------------- --------------
2,893 405 127 (95,301) 39,891 1,626
---------- ------ -------- ---------- ------------- --------------
$ 9,296 $ 692 $ 195 $ (95,968) $ 40,129 $ 1,609
========== ====== ======== ========== ============= ==============
The accompanying notes are an integral part of these financial statements.
93
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONCLUDED)
FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009
WELLS FARGO VT TOTAL RETURN BOND
INVESTMENT DIVISION
--------------------------------
2011 2010 2009
----------- ----------- --------
INVESTMENT INCOME:
Dividends $ 18,903 $ 29,774 $ 18,789
----------- ----------- --------
EXPENSES:
Mortality and expense risk charges 6,364 6,709 1,892
----------- ----------- --------
Total expenses 6,364 6,709 1,892
----------- ----------- --------
Net investment income (loss) 12,539 23,065 16,897
----------- ----------- --------
NET REALIZED AND CHANGES IN UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Realized gain distributions 30,313 23,602 2,046
Realized gains (losses) on sale of investments 15,483 10,857 3,173
----------- ----------- --------
Net realized gains (losses) 45,796 34,459 5,219
----------- ----------- --------
Change in unrealized gains (losses) on investments (7,169) (12,496) 23,526
----------- ----------- --------
Net realized and changes in unrealized gains (losses)
on investments 38,627 21,963 28,745
----------- ----------- --------
Net increase (decrease) in net assets
resulting from operations $ 51,166 $ 45,028 $ 45,642
=========== =========== ========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
94
This page is intentionally left blank.
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009
ALLIANCEBERNSTEIN GLOBAL THEMATIC GROWTH
INVESTMENT DIVISION
------------------------------------------
2011 2010 2009
-------------- -------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (144,795) $ 1,176 $ (370)
Net realized gains (losses) (40,514) 8,379 (2,773)
Change in unrealized gains (losses) on investments (1,444,286) 1,480 45,397
-------------- -------------- ------------
Net increase (decrease) in net assets resulting
from operations (1,629,595) 11,035 42,254
-------------- -------------- ------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 6,425 1,269 21,200
Net transfers (including fixed account) 5,890,970 (20,468) 29,509
Policy charges (66,201) (1,852) (2,499)
Transfers for policy benefits and terminations (27,392) -- (10,407)
-------------- -------------- ------------
Net increase (decrease) in net assets resulting
from policy transactions 5,803,802 (21,051) 37,803
-------------- -------------- ------------
Net increase (decrease) in net assets 4,174,207 (10,016) 80,057
NET ASSETS:
Beginning of year 119,488 129,504 49,447
-------------- -------------- ------------
End of year $ 4,293,695 $ 119,488 $ 129,504
============== ============== ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
96
ALLIANCEBERNSTEIN INTERMEDIATE BOND ALLIANCEBERNSTEIN INTERNATIONAL VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------- ---------------------------------------
2011 2010 2009 (a) 2011 2010 (b)
-------------- -------------- -------------- ----------------- ---------------------
$ 1,914 $ 2,038 $ 692 $ (49) $ 29
184 2,172 716 175 1
563 (1,393) 2,187 (129) 88
-------------- -------------- -------------- ----------------- ---------------------
2,661 2,817 3,595 (3) 118
-------------- -------------- -------------- ----------------- ---------------------
2,678 3,570 13,019 268 --
-- 9,880 23,126 (1,225) 1,252
(1,310) (1,055) (590) (135) (13)
(8) (255) (10,842) (121) --
-------------- -------------- -------------- ----------------- ---------------------
1,360 12,140 24,713 (1,213) 1,239
-------------- -------------- -------------- ----------------- ---------------------
4,021 14,957 28,308 (1,216) 1,357
43,265 28,308 -- 1,357 --
-------------- -------------- -------------- ----------------- ---------------------
$ 47,286 $ 43,265 $ 28,308 $ 141 $ 1,357
============== ============== ============== ================= =====================
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, 2011, 2010 AND 2009
AMERICAN CENTURY VP VISTA
INVESTMENT DIVISION
--------------------------------------
2011 2010 2009
------------- ----------- ------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (305) $ (519) $ (472)
Net realized gains (losses) 5,995 12,351 (47,927)
Change in unrealized gains (losses) on investments (8,184) (1,947) 67,433
------------- ----------- ------------
Net increase (decrease) in net assets resulting
from operations (2,494) 9,885 19,034
------------- ----------- ------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 11,044 13,202 110,074
Net transfers (including fixed account) (72,025) (83,499) (53,969)
Policy charges (2,026) (2,550) (4,572)
Transfers for policy benefits and terminations -- (9,338) (3,305)
------------- ----------- ------------
Net increase (decrease) in net assets resulting
from policy transactions (63,007) (82,185) 48,228
------------- ----------- ------------
Net increase (decrease) in net assets (65,501) (72,300) 67,262
NET ASSETS:
Beginning of year 74,155 146,455 79,193
------------- ----------- ------------
End of year $ 8,654 $ 74,155 $ 146,455
============= =========== ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
98
AMERICAN FUNDS BOND AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------- ------------------------------------------------------
2011 2010 2009 2011 2010 2009
-------------- ---------------------- -------------- --------------- ---------------------- ---------------
$ 105,549 $ 94,433 $ 88,860 $ 324,478 $ 538,047 $ (246,097)
10,695 (8,911) (91,981) (68,423) (386,466) (2,366,209)
121,054 122,161 381,938 (13,188,181) 11,810,164 23,159,810
-------------- ---------------------- -------------- --------------- ---------------------- ---------------
237,298 207,683 378,817 (12,932,126) 11,961,745 20,547,504
-------------- ---------------------- -------------- --------------- ---------------------- ---------------
678,665 724,857 777,097 7,605,640 8,529,505 9,330,898
53,187 320,665 (59,617) (1,805,503) (976,366) (1,354,960)
(333,117) (330,299) (371,335) (3,739,239) (4,049,658) (3,968,778)
(265,605) (318,517) (107,448) (4,059,136) (4,114,157) (2,381,130)
-------------- ---------------------- -------------- --------------- ---------------------- ---------------
133,130 396,706 238,697 (1,998,238) (610,676) 1,626,030
-------------- ---------------------- -------------- --------------- ---------------------- ---------------
370,428 604,389 617,514 (14,930,364) 11,351,069 22,173,534
4,365,031 3,760,642 3,143,128 67,405,353 56,054,284 33,880,750
-------------- ---------------------- -------------- --------------- ---------------------- ---------------
$ 4,735,459 $ 4,365,031 $ 3,760,642 $ 52,474,989 $ 67,405,353 $ 56,054,284
============== ====================== ============== =============== ====================== ===============
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, 2011, 2010 AND 2009
AMERICAN FUNDS GROWTH
INVESTMENT DIVISION
----------------------------------------------------------
2011 2010 2009
---------------- ------------------------ ----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $(257,824) $ (121,539) $ (160,985)
Net realized gains (losses) 658,869 (328,082) (1,821,468)
Change in unrealized gains (losses) on investments (6,628,058) 19,817,938 31,985,158
---------------- ------------------------ ----------------
Net increase (decrease) in net assets resulting
from operations (6,227,013) 19,368,317 30,002,705
---------------- ------------------------ ----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 15,130,932 16,677,167 18,769,815
Net transfers (including fixed account) (1,178,160) (1,005,842) (2,195,305)
Policy charges (8,119,220) (8,182,015) (8,384,980)
Transfers for policy benefits and terminations (8,844,884) (8,617,264) (5,510,035)
---------------- ------------------------ ----------------
Net increase (decrease) in net assets resulting
from policy transactions (3,011,332) (1,127,954) 2,679,495
---------------- ------------------------ ----------------
Net increase (decrease) in net assets (9,238,345) 18,240,363 32,682,200
NET ASSETS:
Beginning of year 127,437,855 109,197,492 76,515,292
---------------- ------------------------ ----------------
End of year $ 118,199,510 $ 127,437,855 $ 109,197,492
================ ======================== ================
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
100
AMERICAN FUNDS GROWTH-INCOME AMERICAN FUNDS INTERNATIONAL
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------- ----------------------------------------
2011 2010 2009 2011 2010 2009
--------------- --------------- --------------- ------------ ------------ --------------
$ 553,773 $ 453,689 $ 446,910 $ 980 $ 3,782 $ 799
(58,726) (336,443) (956,152) (605) (608) 1,537
(2,428,568) 6,948,053 15,943,649 (108,507) 46,566 19,842
--------------- --------------- --------------- ------------ ------------ --------------
(1,933,521) 7,065,299 15,434,407 (108,132) 49,740 22,178
--------------- --------------- --------------- ------------ ------------ --------------
9,556,841 10,334,758 11,825,982 4,120 196,875 22,210
(457,407) (240,405) (1,377,002) (89,752) 113,293 416,930
(5,030,683) (5,117,228) (5,387,634) (8,379) (7,689) (1,457)
(4,739,607) (4,718,644) (3,569,007) (82,771) (7,938) (38,651)
--------------- --------------- --------------- ------------ ------------ --------------
(670,856) 258,481 1,492,339 (176,782) 294,541 399,032
--------------- --------------- --------------- ------------ ------------ --------------
(2,604,377) 7,323,780 16,926,746 (284,914) 344,281 421,210
73,861,194 66,537,414 49,610,668 809,625 465,344 44,134
--------------- --------------- --------------- ------------ ------------ --------------
$ 71,256,817 $ 73,861,194 $ 66,537,414 $ 524,711 $ 809,625 $ 465,344
=============== =============== =============== ============ ============ ==============
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, 2011, 2010 AND 2009
AMERICAN FUNDS U.S. GOVERNMENT/AAA-RATED SECURITIES
INVESTMENT DIVISION
------------------------------------------------------
2011 2010 2009
-------------- ---------------------- ----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 172 $ 87 $ 1,740
Net realized gains (losses) 1,620 643 1,124
Change in unrealized gains (losses) on investments 885 1,804 (1,799)
-------------- ---------------------- ----------------
Net increase (decrease) in net assets resulting
from operations 2,677 2,534 1,065
-------------- ---------------------- ----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 18,071 7,825 43,406
Net transfers (including fixed account) (2,592) (50,106) 40,706
Policy charges (8,463) (10,089) (8,355)
Transfers for policy benefits and terminations (1,984) (2,565) (21,474)
-------------- ---------------------- ----------------
Net increase (decrease) in net assets resulting
from policy transactions 5,032 (54,935) 54,283
-------------- ---------------------- ----------------
Net increase (decrease) in net assets 7,709 (52,401) 55,348
NET ASSETS:
Beginning of year 37,830 90,231 34,883
-------------- ---------------------- ----------------
End of year $ 45,539 $ 37,830 $ 90,231
============== ====================== ================
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
102
DREYFUS VIF INTERNATIONAL VALUE FIDELITY VIP ASSET MANAGER: GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------- --------------------------------------------
2011 2010 2009 2011 2010 2009
------------ ------------ ------------ -------------- -------------- --------------
$ 3,287 $ 2,491 $ 9,269 $ 12,600 $ 7,999 $ 15,866
(960) (14,086) (185,176) 74,260 37,274 (16,185)
(45,726) 19,382 238,024 (205,700) 201,872 427,179
------------ ------------ ------------ -------------- -------------- --------------
(43,399) 7,787 62,117 (118,840) 247,145 426,860
------------ ------------ ------------ -------------- -------------- --------------
1,458 955 28,115 182,388 168,558 240,196
(1,532) (65,938) (85,562) (79,369) (53,668) 256,106
(3,164) (3,082) (8,707) (67,026) (58,088) (64,669)
(766) -- (45,781) (392,245) (120,774) (44,925)
------------ ------------ ------------ -------------- -------------- --------------
(4,004) (68,065) (111,935) (356,252) (63,972) 386,708
------------ ------------ ------------ -------------- -------------- --------------
(47,403) (60,278) (49,818) (475,092) 183,173 813,568
231,464 291,742 341,560 1,905,608 1,722,435 908,867
------------ ------------ ------------ -------------- -------------- --------------
$ 184,061 $ 231,464 $ 291,742 $ 1,430,516 $ 1,905,608 $ 1,722,435
============ ============ ============ ============== ============== ==============
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, 2011, 2010 AND 2009
FIDELITY VIP CONTRAFUND
INVESTMENT DIVISION
--------------------------------------------
2011 2010 2009
-------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 10,058 $ 9,930 $ 30,836
Net realized gains (losses) 12,745 (217,628) (198,535)
Change in unrealized gains (losses) on investments (98,141) 648,547 1,136,586
-------------- -------------- --------------
Net increase (decrease) in net assets resulting
from operations (75,338) 440,849 968,887
-------------- -------------- --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 206,289 166,923 431,847
Net transfers (including fixed account) (243,464) (1,821,221) 898,388
Policy charges (93,976) (86,557) (99,153)
Transfers for policy benefits and terminations (319,235) (10,806) (139,114)
-------------- -------------- --------------
Net increase (decrease) in net assets resulting
from policy transactions (450,386) (1,751,661) 1,091,968
-------------- -------------- --------------
Net increase (decrease) in net assets (525,724) (1,310,812) 2,060,855
NET ASSETS:
Beginning of year 2,677,373 3,988,185 1,927,330
-------------- -------------- --------------
End of year $ 2,151,649 $ 2,677,373 $ 3,988,185
============== ============== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
104
FIDELITY VIP EQUITY-INCOME FIDELITY VIP FREEDOM 2010
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------- -----------------------------------
2011 2010 2009 2011 2010 2009
----------- ------------ ------------ ----------- ----------- -----------
$(112) $ 2,489 $ 3,688 $ 576 $ 545 $ 457
2,625 (5,418) (392,905) 1,481 537 (1,656)
(8,921) 31,745 405,695 (2,344) 2,036 3,793
----------- ------------ ------------ ----------- ----------- -----------
(6,408) 28,816 16,478 (287) 3,118 2,594
----------- ------------ ------------ ----------- ----------- -----------
26,285 37,251 60,293 2,823 2,793 1,353
(55,376) (103,500) (169,930) 884 12,520 (12,215)
(4,119) (5,643) (10,922) -- -- --
(144,483) -- (227,954) (1,136) (1,119) (753)
----------- ------------ ------------ ----------- ----------- -----------
(177,693) (71,892) (348,513) 2,571 14,194 (11,615)
----------- ------------ ------------ ----------- ----------- -----------
(184,101) (43,076) (332,035) 2,284 17,312 (9,021)
202,690 245,766 577,801 31,860 14,548 23,569
----------- ------------ ------------ ----------- ----------- -----------
$ 18,589 $ 202,690 $ 245,766 $ 34,144 $ 31,860 $ 14,548
=========== ============ ============ =========== =========== ===========
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, 2011, 2010 AND 2009
FIDELITY VIP FREEDOM 2020
INVESTMENT DIVISION
--------------------------------------
2011 2010 2009
------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 12,681 $ 12,680 $ 17,181
Net realized gains (losses) 12,805 8,278 (918)
Change in unrealized gains (losses) on investments (33,543) 70,032 149,817
------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations (8,057) 90,990 166,080
------------ ------------ ------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 12,681 10,953 2,536
Net transfers (including fixed account) 33,211 1,108 449,027
Policy charges (7,830) (7,298) (5,925)
Transfers for policy benefits and terminations (68,993) (5,562) (928)
------------ ------------ ------------
Net increase (decrease) in net assets resulting
from policy transactions (30,931) (799) 444,710
------------ ------------ ------------
Net increase (decrease) in net assets (38,988) 90,191 610,790
NET ASSETS:
Beginning of year 738,702 648,511 37,721
------------ ------------ ------------
End of year $ 699,714 $ 738,702 $ 648,511
============ ============ ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
106
FIDELITY VIP
FIDELITY VIP FREEDOM 2030 FREEDOM 2050
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------ --------------------
2011 2010 2009 2011 (c)
----------- ------------ ----------- -------------------
$ 932 $ 1,654 $ 512 $ 228
11,923 1,390 367 (3,654)
(12,843) 11,839 6,395 1,450
----------- ------------ ----------- -------------------
12 14,883 7,274 (1,976)
----------- ------------ ----------- -------------------
2,634 3,169 1,286 --
(51,129) 62,506 2,573 17,414
(369) (1,042) (28) --
(2,369) (3,063) (754) --
----------- ------------ ----------- -------------------
(51,233) 61,570 3,077 17,414
----------- ------------ ----------- -------------------
(51,221) 76,453 10,351 15,438
108,191 31,738 21,387 --
----------- ------------ ----------- -------------------
$ 56,970 $ 108,191 $ 31,738 $ 15,438
=========== ============ =========== ===================
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, 2011, 2010 AND 2009
FIDELITY VIP HIGH INCOME
INVESTMENT DIVISION
----------------------------------
2011 2010 2009 (d)
----------- ---------- -----------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 2,926 $ 310 $ 2,849
Net realized gains (losses) 13 (227) 11
Change in unrealized gains (losses) on investments (1,768) 801 (647)
----------- ---------- -----------
Net increase (decrease) in net assets resulting
from operations 1,171 884 2,213
----------- ---------- -----------
POLICY TRANSACTIONS:
Premium payments received from policy owners 3,335 -- 16,782
Net transfers (including fixed account) 34,562 (36,834) 22,156
Policy charges (330) (252) (236)
Transfers for policy benefits and terminations (80) (148) --
----------- ---------- -----------
Net increase (decrease) in net assets resulting
from policy transactions 37,487 (37,234) 38,702
----------- ---------- -----------
Net increase (decrease) in net assets 38,658 (36,350) 40,915
NET ASSETS:
Beginning of year 4,565 40,915 --
----------- ---------- -----------
End of year $ 43,223 $ 4,565 $ 40,915
=========== ========== ===========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
108
FIDELITY VIP INVESTMENT GRADE BOND FIDELITY VIP MID CAP
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------- ----------------------------------------
2011 2010 2009 2011 2010 2009
-------------- -------------- -------------- ------------ -------------- ------------
$ 48,188 $ 13,892 $ 10,311 $ (5,575) $ (4,707) $ (23)
21,189 23,465 3,887 12,027 3,104 742
1,742 (13,312) (1,678) (60,535) 83,723 13,131
-------------- -------------- -------------- ------------ -------------- ------------
71,119 24,045 12,520 (54,083) 82,120 13,850
-------------- -------------- -------------- ------------ -------------- ------------
1,122 829 4,336 5,952 95,232 3,949
1,150,764 281,430 183,821 253,173 77,140 192,734
(10,497) (4,910) (4,482) (5,498) (3,824) (835)
-- -- (5,946) (47,617) (4,506) (25,654)
-------------- -------------- -------------- ------------ -------------- ------------
1,141,389 277,349 177,729 206,010 164,042 170,194
-------------- -------------- -------------- ------------ -------------- ------------
1,212,508 301,394 190,249 151,927 246,162 184,044
535,344 233,950 43,701 462,031 215,869 31,825
-------------- -------------- -------------- ------------ -------------- ------------
$ 1,747,852 $ 535,344 $ 233,950 $ 613,958 $ 462,031 $ 215,869
============== ============== ============== ============ ============== ============
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, 2011, 2010 AND 2009
FTVIPT MUTUAL GLOBAL DISCOVERY SECURITIES
INVESTMENT DIVISION
-------------------------------------------
2011 2010 2009
------------ --------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 18,799 $ 7,237 $ 3,112
Net realized gains (losses) 1,929 (4,189) (438,168)
Change in unrealized gains (losses) on investments (59,670) 81,592 609,659
------------ --------------- --------------
Net increase (decrease) in net assets resulting
from operations (38,942) 84,640 174,603
------------ --------------- --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 53,641 97,464 291,315
Net transfers (including fixed account) 113,146 (79,267) (1,354,085)
Policy charges (20,333) (17,879) (31,930)
Transfers for policy benefits and terminations (291,009) (141) (32,906)
------------ --------------- --------------
Net increase (decrease) in net assets resulting
from policy transactions (144,555) 177 (1,127,606)
------------ --------------- --------------
Net increase (decrease) in net assets (183,497) 84,817 (953,003)
NET ASSETS:
Beginning of year 967,332 882,515 1,835,518
------------ --------------- --------------
End of year $ 783,835 $ 967,332 $ 882,515
============ =============== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
110
FTVIPT TEMPLETON FOREIGN SECURITIES FTVIPT TEMPLETON GLOBAL BOND SECURITIES
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------- ---------------------------------------
2011 2010 2009 2011 2010 2009 (e)
-------------- -------------- -------------- ------------ ------------- ------------
$(22,203) $ (74,871) $ 211,754 $ 9,757 $ (29) $ (4)
253,750 (50,450) (153,389) (11,299) 4,601 5
(552,735) 614,425 2,059,948 (11,949) (171) 239
-------------- -------------- -------------- ------------ ------------- ------------
(321,188) 489,104 2,118,313 (13,491) 4,401 240
-------------- -------------- -------------- ------------ ------------- ------------
379,032 834,212 807,327 38,191 9,303 --
(5,636,582) 220,184 (284,673) 482,861 (9,428) 3,614
(132,125) (165,900) (372,860) (6,561) (736) (140)
(512,046) (68,047) (189,134) (215,383) (3,516) (10)
-------------- -------------- -------------- ------------ ------------- ------------
(5,901,721) 820,449 (39,340) 299,108 (4,377) 3,464
-------------- -------------- -------------- ------------ ------------- ------------
(6,222,909) 1,309,553 2,078,973 285,617 24 3,704
9,244,694 7,935,141 5,856,168 3,728 3,704 --
-------------- -------------- -------------- ------------ ------------- ------------
$ 3,021,785 $ 9,244,694 $ 7,935,141 $ 289,345 $ 3,728 $ 3,704
============== ============== ============== ============ ============= ============
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, 2011, 2010 AND 2009
GOLDMAN SACHS MID-CAP VALUE
INVESTMENT DIVISION
------------------------------------------
2011 2010 2009
------------ ------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 932 $ 908 $ 2,747
Net realized gains (losses) (27,627) (13,608) (540,331)
Change in unrealized gains (losses) on investments 1,030 84,633 633,578
------------ ------------- ---------------
Net increase (decrease) in net assets resulting
from operations (25,665) 71,933 95,994
------------ ------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners -- -- --
Net transfers (including fixed account) -- (23,223) (667,539)
Policy charges (7,841) (7,848) (13,708)
Transfers for policy benefits and terminations (65,335) (2,114) (214)
------------ ------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions (73,176) (33,185) (681,461)
------------ ------------- ---------------
Net increase (decrease) in net assets (98,841) 38,748 (585,467)
NET ASSETS:
Beginning of year 367,089 328,341 913,808
------------ ------------- ---------------
End of year $ 268,248 $ 367,089 $ 328,341
============ ============= ===============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
112
INVESCO V.I.
GOVERNMENT
GOLDMAN SACHS STRUCTURED SMALL CAP EQUITY INVESCO V.I. GLOBAL REAL ESTATE SECURITIES
INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------ ------------------------------------------------ -------------------
2011 2010 2009 2011 2010 2009 2011 (f)
--------------- -------------- ----------- -------------- ---------------- ---------------- -------------------
$ 251 $ 100 $ 551 $ 22,923 $ 32,545 $ (5,813) $ (120)
175 (7,335) (17,708) (158,339) (130,047) (698,156) 1,389
(255) 18,632 28,044 (44,519) 289,353 1,038,943 1,336
--------------- -------------- ----------- -------------- ---------------- ---------------- -------------------
171 11,397 10,887 (179,935) 191,851 334,974 2,605
--------------- -------------- ----------- -------------- ---------------- ---------------- -------------------
468 4,077 12,573 18,821 3,708 143,426 --
-- (33,283) 4,125 131,727 (63,773) (367,827) 19,885
(1,631) (1,447) (1,545) (16,626) (14,537) (55,212) (999)
(1) -- (4,928) (60,454) (26,660) (3,924) --
--------------- -------------- ----------- -------------- ---------------- ---------------- -------------------
(1,164) (30,653) 10,225 73,468 (101,262) (283,537) 18,886
--------------- -------------- ----------- -------------- ---------------- ---------------- -------------------
(993) (19,256) 21,112 (106,467) 90,589 51,437 21,491
51,252 70,508 49,396 1,597,111 1,506,522 1,455,085 --
--------------- -------------- ----------- -------------- ---------------- ---------------- -------------------
$ 50,259 $ 51,252 $ 70,508 $ 1,490,644 $ 1,597,111 $ 1,506,522 $ 21,491
=============== ============== =========== ============== ================ ================ ===================
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, 2011, 2010 AND 2009
INVESCO V.I. INTERNATIONAL GROWTH
INVESTMENT DIVISION
------------------------------------------
2011 2010 2009 (d)
----------- --------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 2,260 $ 3,581 $ 213
Net realized gains (losses) 3,888 1,465 34
Change in unrealized gains (losses) on investments (28,330) 26,537 2,258
----------- --------------- --------------
Net increase (decrease) in net assets resulting
from operations (22,182) 31,583 2,505
----------- --------------- --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 3,175 43,890 --
Net transfers (including fixed account) (26,489) 184,805 16,392
Policy charges (5,587) (4,422) (495)
Transfers for policy benefits and terminations (197,921) (1,805) (42)
----------- --------------- --------------
Net increase (decrease) in net assets resulting
from policy transactions (226,822) 222,468 15,855
----------- --------------- --------------
Net increase (decrease) in net assets (249,004) 254,051 18,360
NET ASSETS:
Beginning of year 272,411 18,360 --
----------- --------------- --------------
End of year $ 23,407 $ 272,411 $ 18,360
=========== =============== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
114
INVESCO V.I. VAN KAMPEN COMSTOCK JANUS ASPEN BALANCED
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------- --------------------------------------------
2011 2010 (g) 2011 2010 2009
------------ ------------------- -------------- -------------- --------------
$ 66 $ -- $ 18,800 $ 30,692 $ 12,907
(127) 53 137,912 26,581 19,174
(6,181) 45 (161,867) 90,252 93,262
------------ ------------------- -------------- -------------- --------------
(6,242) 98 (5,155) 147,525 125,343
------------ ------------------- -------------- -------------- --------------
18,211 -- 105,004 500,783 116,443
148,276 31,986 (679,101) 426,734 1,020,529
(2,267) -- (31,952) (30,577) (15,717)
-- -- (575,867) (8,070) (2,543)
------------ ------------------- -------------- -------------- --------------
164,220 31,986 (1,181,916) 888,870 1,118,712
------------ ------------------- -------------- -------------- --------------
157,978 32,084 (1,187,071) 1,036,395 1,244,055
32,084 -- 2,526,859 1,490,464 246,409
------------ ------------------- -------------- -------------- --------------
$ 190,062 $ 32,084 $ 1,339,788 $ 2,526,859 $ 1,490,464
============ =================== ============== ============== ==============
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, 2011, 2010 AND 2009
JANUS ASPEN FORTY
INVESTMENT DIVISION
------------------------------------------
2011 2010 2009
------------ ---------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $(13,635) $ (14,015) $ (2,048)
Net realized gains (losses) 43,353 14,051 (78,622)
Change in unrealized gains (losses) on investments (117,114) 47,707 310,554
------------ ---------------- ------------
Net increase (decrease) in net assets resulting
from operations (87,396) 47,743 229,884
------------ ---------------- ------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 58,591 190,160 165,769
Net transfers (including fixed account) (237,596) 46,953 209,535
Policy charges (14,197) (16,395) (23,392)
Transfers for policy benefits and terminations (229,034) (6,634) (106,150)
------------ ---------------- ------------
Net increase (decrease) in net assets resulting
from policy transactions (422,236) 214,084 245,762
------------ ---------------- ------------
Net increase (decrease) in net assets (509,632) 261,827 475,646
NET ASSETS:
Beginning of year 1,212,768 950,941 475,295
------------ ---------------- ------------
End of year $ 703,136 $ 1,212,768 $ 950,941
============ ================ ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
116
JANUS ASPEN JANUS JANUS ASPEN OVERSEAS
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------- ---------------------------------------
2011 2010 2009 2011 2010 2009
------------- ------------------ -------------- ------------ -------------- -----------
$ (31,581) $(153,142) $ 5,686 $ (28,181) $ 792 $ 58
1,561,413 52,158 (31,201) (90,371) 4,218 26,564
(1,416,036) 848,330 1,662,317 (214,175) 62,994 37,885
------------- ------------------ -------------- ------------ -------------- -----------
113,796 747,346 1,636,802 (332,727) 68,004 64,507
------------- ------------------ -------------- ------------ -------------- -----------
6,403 635,005 658,401 17,337 61,601 9,283
(6,850,158) (58,773) 8,858 362,799 175,192 11,467
(52,198) (122,027) (310,790) (27,743) (7,034) (3,624)
(191,751) -- (1,693) (51,382) (4,005) (25,524)
------------- ------------------ -------------- ------------ -------------- -----------
(7,087,704) 454,205 354,776 301,011 225,754 (8,398)
------------- ------------------ -------------- ------------ -------------- -----------
(6,973,908) 1,201,551 1,991,578 (31,716) 293,758 56,109
7,832,002 6,630,451 4,638,873 375,851 82,093 25,984
------------- ------------------ -------------- ------------ -------------- -----------
$ 858,094 $ 7,832,002 $ 6,630,451 $ 344,135 $ 375,851 $ 82,093
============= ================== ============== ============ ============== ===========
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, 2011, 2010 AND 2009
MFS VIT GLOBAL EQUITY
INVESTMENT DIVISION
--------------------------------------
2011 2010 2009
----------- -------------- -----------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 214 $ 634 $ 1,004
Net realized gains (losses) 12,787 183 (11,994)
Change in unrealized gains (losses) on investments (16,173) 19,523 27,307
----------- -------------- -----------
Net increase (decrease) in net assets resulting
from operations (3,172) 20,340 16,317
----------- -------------- -----------
POLICY TRANSACTIONS:
Premium payments received from policy owners 10,718 28,453 20,456
Net transfers (including fixed account) (180,476) 103,015 (9,035)
Policy charges (1,193) (2,360) (1,544)
Transfers for policy benefits and terminations (47,257) (1,538) (5,469)
----------- -------------- -----------
Net increase (decrease) in net assets resulting
from policy transactions (218,208) 127,570 4,408
----------- -------------- -----------
Net increase (decrease) in net assets (221,380) 147,910 20,725
NET ASSETS:
Beginning of year 226,794 78,884 58,159
----------- -------------- -----------
End of year $ 5,414 $ 226,794 $ 78,884
=========== ============== ===========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
118
MFS VIT HIGH INCOME MFS VIT NEW DISCOVERY
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------- -------------------------------------------
2011 2010 2009 2011 2010 2009
------------ --------------- ------------ ------------ --------------- --------------
$ 11,578 $ 8,200 $ 660 $ (555) $ (340) $ (27)
361 680 326 18,098 544 1,560
(7,343) 7,331 21,466 (32,906) 28,843 3,314
------------ --------------- ------------ ------------ --------------- --------------
4,596 16,211 22,452 (15,363) 29,047 4,847
------------ --------------- ------------ ------------ --------------- --------------
-- -- 3,777 6,694 8,926 564
-- (706) 90,405 5 94,362 (83)
(1,372) (1,293) (684) (3,864) (2,441) (178)
(22) -- (1,164) -- -- (2,063)
------------ --------------- ------------ ------------ --------------- --------------
(1,394) (1,999) 92,334 2,835 100,847 (1,760)
------------ --------------- ------------ ------------ --------------- --------------
3,202 14,212 114,786 (12,528) 129,894 3,087
132,109 117,897 3,111 134,923 5,029 1,942
------------ --------------- ------------ ------------ --------------- --------------
$ 135,311 $ 132,109 $ 117,897 $ 122,395 $ 134,923 $ 5,029
============ =============== ============ ============ =============== ==============
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, 2011, 2010 AND 2009
MFS VIT VALUE
INVESTMENT DIVISION
------------------------------------------
2011 2010 2009
----------- --------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 714 $ 676 $ 546
Net realized gains (losses) (9,686) (552) (1,224)
Change in unrealized gains (losses) on investments 6,173 7,585 14,082
----------- --------------- --------------
Net increase (decrease) in net assets resulting
from operations (2,799) 7,709 13,404
----------- --------------- --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners -- -- --
Net transfers (including fixed account) -- -- --
Policy charges (2,437) (2,613) (2,736)
Transfers for policy benefits and terminations (29,560) (2) (1)
----------- --------------- --------------
Net increase (decrease) in net assets resulting
from policy transactions (31,997) (2,615) (2,737)
----------- --------------- --------------
Net increase (decrease) in net assets (34,796) 5,094 10,667
NET ASSETS:
Beginning of year 79,095 74,001 63,334
----------- --------------- --------------
End of year $ 44,299 $ 79,095 $ 74,001
=========== =============== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
120
MIST AMERICAN FUNDS BALANCED ALLOCATION MIST AMERICAN FUNDS GROWTH ALLOCATION
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------- -------------------------------------------
2011 2010 2009 2011 2010 2009
------------ ---------------- -------------- ------------ --------------- --------------
$ 6,635 $ 3,146 $ -- $ 10,815 $ 2,434 $ --
6,294 1,822 (28) 9,254 5,990 1,298
(23,258) 26,193 14,667 (58,738) 79,550 20,909
------------ ---------------- -------------- ------------ --------------- --------------
(10,329) 31,161 14,639 (38,669) 87,974 22,207
------------ ---------------- -------------- ------------ --------------- --------------
100,111 105,391 30,361 267,061 355,048 87,422
36,239 89,836 167,911 31,086 223,657 36,431
(32,003) (11,710) (9,727) (124,905) (93,195) (24,118)
(5,429) -- (563) (59,628) (2,170) (2,703)
------------ ---------------- -------------- ------------ --------------- --------------
98,918 183,517 187,982 113,614 483,340 97,032
------------ ---------------- -------------- ------------ --------------- --------------
88,589 214,678 202,621 74,945 571,314 119,239
427,406 212,728 10,107 706,300 134,986 15,747
------------ ---------------- -------------- ------------ --------------- --------------
$ 515,995 $ 427,406 $ 212,728 $ 781,245 $ 706,300 $ 134,986
============ ================ ============== ============ =============== ==============
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, 2011, 2010 AND 2009
MIST AMERICAN FUNDS MODERATE ALLOCATION
INVESTMENT DIVISION
-------------------------------------------
2011 2010 2009
------------ --------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 5,453 $ 2,501 $ --
Net realized gains (losses) 3,384 646 370
Change in unrealized gains (losses) on investments (7,233) 16,902 11,101
------------ --------------- --------------
Net increase (decrease) in net assets resulting
from operations 1,604 20,049 11,471
------------ --------------- --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 153,402 103,657 36,169
Net transfers (including fixed account) 57,534 70,020 57,483
Policy charges (55,936) (37,265) (13,816)
Transfers for policy benefits and terminations (5,092) (2,260) (21)
------------ --------------- --------------
Net increase (decrease) in net assets resulting
from policy transactions 149,908 134,152 79,815
------------ --------------- --------------
Net increase (decrease) in net assets 151,512 154,201 91,286
NET ASSETS:
Beginning of year 250,094 95,893 4,607
------------ --------------- --------------
End of year $ 401,606 $ 250,094 $ 95,893
============ =============== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
122
MIST BLACKROCK LARGE CAP CORE MIST CLARION GLOBAL REAL ESTATE
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------------ ---------------------------------------------------
2011 2010 2009 2011 2010 2009
---------------- ------------------ ------------------ --------------- ----------------- -----------------
$ 1,161,359 $ 1,615,609 $ 2,132,876 $ 668,733 $ 1,391,967 $ 376,681
(4,542,808) (7,248,214) (10,716,690) (421,589) (571,095) (1,092,248)
3,050,880 38,497,976 54,384,062 (1,500,208) 1,969,823 5,493,585
---------------- ------------------ ------------------ --------------- ----------------- -----------------
(330,569) 32,865,371 45,800,248 (1,253,064) 2,790,695 4,778,018
---------------- ------------------ ------------------ --------------- ----------------- -----------------
32,085,988 34,809,861 38,206,877 2,829,699 3,115,895 3,655,037
(2,768,320) (2,767,361) (5,847,879) (266,335) (6,843) (802,883)
(25,373,589) (25,759,862) (26,968,042) (1,318,752) (1,331,035) (1,374,865)
(21,487,307) (21,236,249) (18,412,707) (1,591,725) (1,474,613) (714,297)
---------------- ------------------ ------------------ --------------- ----------------- -----------------
(17,543,228) (14,953,611) (13,021,751) (347,113) 303,404 762,992
---------------- ------------------ ------------------ --------------- ----------------- -----------------
(17,873,797) 17,911,760 32,778,497 (1,600,177) 3,094,099 5,541,010
309,489,536 291,577,776 258,799,279 21,160,564 18,066,465 12,525,455
---------------- ------------------ ------------------ --------------- ----------------- -----------------
$ 291,615,739 $ 309,489,536 $ 291,577,776 $ 19,560,387 $ 21,160,564 $ 18,066,465
================ ================== ================== =============== ================= =================
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, 2011, 2010 AND 2009
MIST DREMAN SMALL CAP VALUE
INVESTMENT DIVISION
------------------------------------------------
2011 2010 2009
-------------- ----------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 217 $ (48) $ (427)
Net realized gains (losses) 1,124 403 58,177
Change in unrealized gains (losses) on investments (4,058) 3,392 2,844
-------------- ----------------- ---------------
Net increase (decrease) in net assets resulting
from operations (2,717) 3,747 60,594
-------------- ----------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 8,977 2,082 412
Net transfers (including fixed account) 6,064 6,849 240,274
Policy charges (3,875) (2,325) (5,500)
Transfers for policy benefits and terminations -- -- (278,764)
-------------- ----------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions 11,166 6,606 (43,578)
-------------- ----------------- ---------------
Net increase (decrease) in net assets 8,449 10,353 17,016
NET ASSETS:
Beginning of year 27,489 17,136 120
-------------- ----------------- ---------------
End of year $ 35,938 $ 27,489 $ 17,136
============== ================= ===============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
124
MIST HARRIS OAKMARK INTERNATIONAL MIST INVESCO SMALL CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------- --------------------------------------------------
2011 2010 2009 2011 2010 2009
--------------- ------------------ ----------------- -------------- ------------------ ----------------
$(234,682) $ 343,311 $ 1,418,689 $(36,533) $ (30,507) $ (22,254)
(114,036) (312,283) (1,294,657) 169,309 (15,371) (84,509)
(4,256,535) 4,235,035 8,897,628 (192,641) 887,599 919,328
--------------- ------------------ ----------------- -------------- ------------------ ----------------
(4,605,253) 4,266,063 9,021,660 (59,865) 841,721 812,565
--------------- ------------------ ----------------- -------------- ------------------ ----------------
3,837,373 4,074,673 4,204,850 453,004 471,774 525,764
133,438 669,473 154,538 42,346 164,724 214,625
(1,743,944) (1,796,257) (1,715,379) (231,126) (216,436) (223,502)
(1,949,570) (2,128,605) (1,050,988) (261,290) (184,521) (124,073)
--------------- ------------------ ----------------- -------------- ------------------ ----------------
277,297 819,284 1,593,021 (2,934) 235,541 392,814
--------------- ------------------ ----------------- -------------- ------------------ ----------------
(4,327,956) 5,085,347 10,614,681 (56,931) 1,077,262 1,205,379
31,544,698 26,459,351 15,844,670 4,469,898 3,392,636 2,187,257
--------------- ------------------ ----------------- -------------- ------------------ ----------------
$ 27,216,742 $ 31,544,698 $ 26,459,351 $ 4,412,967 $ 4,469,898 $ 3,392,636
=============== ================== ================= ============== ================== ================
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, 2011, 2010 AND 2009
MIST JANUS FORTY
INVESTMENT DIVISION
--------------------------------------------------
2011 2010 2009
--------------- ------------------ ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 149,656 $ 119,973 $ (75,162)
Net realized gains (losses) 2,199 (41,591) (540,105)
Change in unrealized gains (losses) on investments (1,278,619) 1,120,682 3,887,171
--------------- ------------------ ---------------
Net increase (decrease) in net assets resulting
from operations (1,126,764) 1,199,064 3,271,904
--------------- ------------------ ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 2,050,382 2,241,409 2,031,808
Net transfers (including fixed account) (1,014,538) 410,883 1,027,089
Policy charges (884,372) (908,738) (846,828)
Transfers for policy benefits and terminations (795,086) (788,374) (298,955)
--------------- ------------------ ---------------
Net increase (decrease) in net assets resulting
from policy transactions (643,614) 955,180 1,913,114
--------------- ------------------ ---------------
Net increase (decrease) in net assets (1,770,378) 2,154,244 5,185,018
NET ASSETS:
Beginning of year 14,254,655 12,100,411 6,915,393
--------------- ------------------ ---------------
End of year $ 12,484,277 $ 14,254,655 $ 12,100,411
=============== ================== ===============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
126
MIST LAZARD MID CAP MIST LEGG MASON CLEARBRIDGE AGGRESSIVE GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------- -------------------------------------------------
2011 2010 2009 2011 2010 2009
-------------- ----------------- -------------- --------------- ----------------- --------------
$ 7,046 $ 11,435 $ 19,267 $ (80,301) $ (53,638) $ (40,420)
(15,584) (93,933) (283,748) 93,448 (57,251) (166,346)
(320,660) 1,108,654 1,519,608 (217,464) 1,583,027 1,815,976
-------------- ----------------- -------------- --------------- ----------------- --------------
(329,198) 1,026,156 1,255,127 (204,317) 1,472,138 1,609,210
-------------- ----------------- -------------- --------------- ----------------- --------------
665,125 700,574 796,272 1,318,130 897,883 1,020,767
304,589 24,219 (267,754) 5,034,717 (116,646) (178,569)
(345,623) (347,953) (346,321) (725,056) (490,095) (500,322)
(602,339) (387,630) (290,206) (890,256) (464,163) (374,454)
-------------- ----------------- -------------- --------------- ----------------- --------------
21,752 (10,790) (108,009) 4,737,535 (173,021) (32,578)
-------------- ----------------- -------------- --------------- ----------------- --------------
(307,446) 1,015,366 1,147,118 4,533,218 1,299,117 1,576,632
5,585,124 4,569,758 3,422,640 7,832,576 6,533,459 4,956,827
-------------- ----------------- -------------- --------------- ----------------- --------------
$ 5,277,678 $ 5,585,124 $ 4,569,758 $ 12,365,794 $ 7,832,576 $ 6,533,459
============== ================= ============== =============== ================= ==============
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, 2011, 2010 AND 2009
MIST LORD ABBETT BOND DEBENTURE
INVESTMENT DIVISION
----------------------------------------------------
2011 2010 2009
--------------- ------------------ -----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 1,356,223 $ 1,402,246 $ 1,391,406
Net realized gains (losses) 583,376 240,525 (126,749)
Change in unrealized gains (losses) on investments (863,576) 1,315,427 5,411,601
--------------- ------------------ -----------------
Net increase (decrease) in net assets resulting
from operations 1,076,023 2,958,198 6,676,258
--------------- ------------------ -----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 2,158,065 2,523,009 2,703,439
Net transfers (including fixed account) (2,168,860) (548,415) 2,036,045
Policy charges (1,487,874) (1,509,898) (1,703,902)
Transfers for policy benefits and terminations (1,520,091) (1,782,906) (1,226,776)
--------------- ------------------ -----------------
Net increase (decrease) in net assets resulting
from policy transactions (3,018,760) (1,318,210) 1,808,806
--------------- ------------------ -----------------
Net increase (decrease) in net assets (1,942,737) 1,639,988 8,485,064
NET ASSETS:
Beginning of year 27,673,730 26,033,742 17,548,678
--------------- ------------------ -----------------
End of year $ 25,730,993 $ 27,673,730 $ 26,033,742
=============== ================== =================
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
128
MIST LORD ABBETT MID CAP VALUE MIST MET/FRANKLIN INCOME
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------- ---------------------------------------------
2011 2010 2009 2011 2010 2009
-------------- ----------------- -------------- ------------ ----------------- --------------
$ 166 $ 199 $ 1,558 $ 8,323 $ 3,216 $ --
818 3,236 (38,897) 5,705 823 54
(5,510) 19,769 57,059 (8,507) 10,272 9,507
-------------- ----------------- -------------- ------------ ----------------- --------------
(4,526) 23,204 19,720 5,521 14,311 9,561
-------------- ----------------- -------------- ------------ ----------------- --------------
5,506 6,334 75,266 44,198 28,894 13,515
11,792 (18,047) (77,923) 67,493 66,675 19,688
(3,104) (3,822) (4,803) (23,591) (12,613) (6,238)
-- -- (590) (7,430) (1,480) (482)
-------------- ----------------- -------------- ------------ ----------------- --------------
14,194 (15,535) (8,050) 80,670 81,476 26,483
-------------- ----------------- -------------- ------------ ----------------- --------------
9,668 7,669 11,670 86,191 95,787 36,044
111,190 103,521 91,851 151,292 55,505 19,461
-------------- ----------------- -------------- ------------ ----------------- --------------
$ 120,858 $ 111,190 $ 103,521 $ 237,483 $ 151,292 $ 55,505
============== ================= ============== ============ ================= ==============
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, 2011, 2010 AND 2009
MIST MET/FRANKLIN MUTUAL SHARES
INVESTMENT DIVISION
--------------------------------------------
2011 2010 2009
-------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 1,982 $ -- $ --
Net realized gains (losses) 4,102 683 (91)
Change in unrealized gains (losses) on investments (6,478) 4,077 4,710
-------------- -------------- --------------
Net increase (decrease) in net assets resulting
from operations (394) 4,760 4,619
-------------- -------------- --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 18,290 13,024 8,704
Net transfers (including fixed account) 18,465 22,360 6,499
Policy charges (9,290) (6,571) (3,313)
Transfers for policy benefits and terminations (4,200) (811) (293)
-------------- -------------- --------------
Net increase (decrease) in net assets resulting
from policy transactions 23,265 28,002 11,597
-------------- -------------- --------------
Net increase (decrease) in net assets 22,871 32,762 16,216
NET ASSETS:
Beginning of year 57,042 24,280 8,064
-------------- -------------- --------------
End of year $ 79,913 $ 57,042 $ 24,280
============== ============== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
130
MIST MET/FRANKLIN TEMPLETON FOUNDING STRATEGY MIST MET/TEMPLETON GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------- ------------------------------------------------
2011 2010 2009 2011 2010 2009
------------ ------------------ ------------- -------------- ---------------- ----------------
$ 5,031 $ -- $ -- $ 792 $ 305 $ 2
2,290 1,546 565 371 125 (60)
(10,599) 23,230 14,572 (5,463) 3,904 3,117
------------ ------------------ ------------- -------------- ---------------- ----------------
(3,278) 24,776 15,137 (4,300) 4,334 3,059
------------ ------------------ ------------- -------------- ---------------- ----------------
25,042 25,504 18,400 18,937 18,420 14,327
2,199 21,917 159,413 2,912 12,049 2,568
(8,412) (6,972) (7,871) (6,419) (5,335) (3,419)
(19) -- (705) (6,096) (173) (526)
------------ ------------------ ------------- -------------- ---------------- ----------------
18,810 40,449 169,237 9,334 24,961 12,950
------------ ------------------ ------------- -------------- ---------------- ----------------
15,532 65,225 184,374 5,034 29,295 16,009
260,280 195,055 10,681 48,492 19,197 3,188
------------ ------------------ ------------- -------------- ---------------- ----------------
$ 275,812 $ 260,280 $ 195,055 $ 53,526 $ 48,492 $ 19,197
============ ================== ============= ============== ================ ================
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, 2011, 2010 AND 2009
MIST MFS
MIST METLIFE EMERGING
AGGRESSIVE STRATEGY MARKETS EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------- ----------------------
2011 (f) 2011 (f)
---------------------- ----------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $(77,007) $ (788)
Net realized gains (losses) (117,896) (70)
Change in unrealized gains (losses) on investments (1,834,063) (3,209)
---------------------- ----------------------
Net increase (decrease) in net assets resulting
from operations (2,028,966) (4,067)
---------------------- ----------------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 1,640,701 3,938
Net transfers (including fixed account) 14,330,838 23,265
Policy charges (611,481) (123)
Transfers for policy benefits and terminations (858,431) (63)
---------------------- ----------------------
Net increase (decrease) in net assets resulting
from policy transactions 14,501,627 27,017
---------------------- ----------------------
Net increase (decrease) in net assets 12,472,661 22,950
NET ASSETS:
Beginning of year -- --
---------------------- ----------------------
End of year $ 12,472,661 $ 22,950
====================== ======================
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
132
MIST MFS RESEARCH INTERNATIONAL MIST MORGAN STANLEY MID CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------------- ------------------------------------------------------
2011 2010 2009 2011 2010 2009
--------------- ---------------------- ----------------- ---------------- ---------------------- --------------
$ 176,806 $ 134,233 $ 280,264 $ 16,206 $ (957,593) $ (870)
(233,782) (545,005) (1,024,253) 7,856,152 336,382 1,780
(1,480,693) 1,743,808 3,897,065 (21,552,444) 31,775,159 75,648
--------------- ---------------------- ----------------- ---------------- ---------------------- --------------
(1,537,669) 1,333,036 3,153,076 (13,680,086) 31,153,948 76,558
--------------- ---------------------- ----------------- ---------------- ---------------------- --------------
1,640,050 1,870,809 2,210,375 22,486,193 16,409,129 13,014
51,977 (766,625) (550,815) (4,111,245) 174,856,480 208,259
(767,791) (802,613) (902,498) (14,405,421) (9,530,730) (2,906)
(1,130,486) (892,543) (545,950) (15,693,955) (9,440,323) (5,098)
--------------- ---------------------- ----------------- ---------------- ---------------------- --------------
(206,250) (590,972) 211,112 (11,724,428) 172,294,556 213,269
--------------- ---------------------- ----------------- ---------------- ---------------------- --------------
(1,743,919) 742,064 3,364,188 (25,404,514) 203,448,504 289,827
13,920,818 13,178,754 9,814,566 203,754,931 306,427 16,600
--------------- ---------------------- ----------------- ---------------- ---------------------- --------------
$ 12,176,899 $ 13,920,818 $ 13,178,754 $ 178,350,417 $ 203,754,931 $ 306,427
=============== ====================== ================= ================ ====================== ==============
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, 2011, 2010 AND 2009
MIST OPPENHEIMER CAPITAL APPRECIATION
INVESTMENT DIVISION
-----------------------------------------------------
2011 2010 2009
-------------- ---------------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (7,998) $ (2,663) $ (10,277)
Net realized gains (losses) (25,379) (39,996) (109,001)
Change in unrealized gains (losses) on investments 5,975 190,578 558,202
-------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from operations (27,402) 147,919 438,924
-------------- ---------------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 291,580 304,670 338,372
Net transfers (including fixed account) (65,330) (75,809) 205,296
Policy charges (118,108) (119,410) (126,102)
Transfers for policy benefits and terminations (125,516) (109,397) (66,149)
-------------- ---------------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions (17,374) 54 351,417
-------------- ---------------------- ---------------
Net increase (decrease) in net assets (44,776) 147,973 790,341
NET ASSETS:
Beginning of year 1,779,611 1,631,638 841,297
-------------- ---------------------- ---------------
End of year $ 1,734,835 $ 1,779,611 $ 1,631,638
============== ====================== ===============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
134
MIST PIMCO INFLATION PROTECTED BOND MIST PIMCO TOTAL RETURN
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- ---------------------------------------------------
2011 2010 2009 2011 2010 2009
--------------- ----------------- ---------------- --------------- ------------------- ---------------
$ 95,195 $ 146,674 $ 194,864 $ 975,512 $ 1,273,636 $ 2,452,300
525,047 281,279 (46,474) 1,634,121 474,495 1,576,841
331,187 130,473 877,182 (1,410,547) 1,426,113 1,911,046
--------------- ----------------- ---------------- --------------- ------------------- ---------------
951,429 558,426 1,025,572 1,199,086 3,174,244 5,940,187
--------------- ----------------- ---------------- --------------- ------------------- ---------------
1,244,015 1,208,996 1,284,337 5,110,970 5,334,220 5,672,803
671,186 587,680 842,827 1,024,517 3,101,158 2,447,477
(631,840) (577,592) (561,645) (3,110,778) (3,135,341) (3,246,181)
(527,827) (699,416) (379,813) (3,694,178) (3,692,336) (3,035,028)
--------------- ----------------- ---------------- --------------- ------------------- ---------------
755,534 519,668 1,185,706 (669,469) 1,607,701 1,839,071
--------------- ----------------- ---------------- --------------- ------------------- ---------------
1,706,963 1,078,094 2,211,278 529,617 4,781,945 7,779,258
8,812,538 7,734,444 5,523,166 46,602,262 41,820,317 34,041,059
--------------- ----------------- ---------------- --------------- ------------------- ---------------
$ 10,519,501 $ 8,812,538 $ 7,734,444 $ 47,131,879 $ 46,602,262 $ 41,820,317
=============== ================= ================ =============== =================== ===============
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, 2011, 2010 AND 2009
MIST PIONEER FUND
INVESTMENT DIVISION
-----------------------------------------
2011 2010 2009 (e)
------------ --------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 1,519 $ 1,005 $ (580)
Net realized gains (losses) 21,102 6,067 1,986
Change in unrealized gains (losses) on investments (30,602) 25,716 48,304
------------ --------------- ------------
Net increase (decrease) in net assets resulting
from operations (7,981) 32,788 49,710
------------ --------------- ------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 5,551 4,871 9,778
Net transfers (including fixed account) (1,284) (26,206) 197,145
Policy charges (3,877) (4,729) (2,535)
Transfers for policy benefits and terminations (61,915) -- (14,962)
------------ --------------- ------------
Net increase (decrease) in net assets resulting
from policy transactions (61,525) (26,064) 189,426
------------ --------------- ------------
Net increase (decrease) in net assets (69,506) 6,724 239,136
NET ASSETS:
Beginning of year 245,860 239,136 --
------------ --------------- ------------
End of year $ 176,354 $ 245,860 $ 239,136
============ =============== ============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
136
MIST RCM TECHNOLOGY MIST SSGA GROWTH AND INCOME ETF
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------- -------------------------------------------------
2011 2010 2009 2011 2010 2009
-------------- ---------------- --------------- -------------- ----------------- ----------------
$(125,028) $ (111,175) $ (82,504) $ 41,408 $ 12,293 $ 6,273
512,571 (54,192) (600,648) 123,633 16,158 3,801
(1,944,446) 3,551,862 5,182,655 (151,325) 322,318 204,020
-------------- ---------------- --------------- -------------- ----------------- ----------------
(1,556,903) 3,386,495 4,499,503 13,716 350,769 214,094
-------------- ---------------- --------------- -------------- ----------------- ----------------
1,591,820 1,602,041 1,674,647 610,076 471,109 200,034
(740,109) 7,146 1,430,181 653,921 1,821,735 921,708
(964,790) (958,684) (886,510) (249,515) (188,226) (67,668)
(1,227,369) (1,144,160) (618,269) (235,978) (217,589) (23,508)
-------------- ---------------- --------------- -------------- ----------------- ----------------
(1,340,448) (493,657) 1,600,049 778,504 1,887,029 1,030,566
-------------- ---------------- --------------- -------------- ----------------- ----------------
(2,897,351) 2,892,838 6,099,552 792,220 2,237,798 1,244,660
16,113,886 13,221,048 7,121,496 3,818,907 1,581,109 336,449
-------------- ---------------- --------------- -------------- ----------------- ----------------
$ 13,216,535 $ 16,113,886 $ 13,221,048 $ 4,611,127 $ 3,818,907 $ 1,581,109
============== ================ =============== ============== ================= ================
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, 2011, 2010 AND 2009
MIST SSGA GROWTH ETF
INVESTMENT DIVISION
------------------------------------------------
2011 2010 2009
-------------- ------------------ --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 31,155 $ 16,282 $ 7,006
Net realized gains (losses) 63,035 12,378 (20,730)
Change in unrealized gains (losses) on investments (183,850) 271,601 309,775
-------------- ------------------ --------------
Net increase (decrease) in net assets resulting
from operations (89,660) 300,261 296,051
-------------- ------------------ --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 473,918 426,740 229,022
Net transfers (including fixed account) 671,574 479,704 921,197
Policy charges (187,333) (144,844) (75,749)
Transfers for policy benefits and terminations (238,362) (171,487) (38,845)
-------------- ------------------ --------------
Net increase (decrease) in net assets resulting
from policy transactions 719,797 590,113 1,035,625
-------------- ------------------ --------------
Net increase (decrease) in net assets 630,137 890,374 1,331,676
NET ASSETS:
Beginning of year 2,679,381 1,789,007 457,331
-------------- ------------------ --------------
End of year $ 3,309,518 $ 2,679,381 $ 1,789,007
============== ================== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
138
MIST T. ROWE PRICE LARGE CAP VALUE MIST T. ROWE PRICE MID CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------- -----------------------------------------------------
2011 2010 2009 2011 2010 2009
-------------- ----------------- ---------------- --------------- ------------------- -----------------
$ (14,587) $ (69,544) $ 86,241 $ (314,304) $ (150,122) $ (115,483)
(435,260) (79,021) (261,167) 872,771 131,367 (381,122)
577,510 921,874 894,542 (1,837,318) 4,580,355 5,596,487
-------------- ----------------- ---------------- --------------- ------------------- -----------------
127,663 773,309 719,616 (1,278,581) 4,561,600 5,099,882
-------------- ----------------- ---------------- --------------- ------------------- -----------------
4,938 427,886 455,197 2,194,867 2,269,288 2,540,664
(4,150,820) (66,707) (56,090) 5,978,566 264,028 (25,606)
(22,272) (66,379) (175,840) (1,281,123) (1,184,611) (1,208,476)
(1,102,016) (7,059) (15,683) (1,643,740) (1,448,078) (796,500)
-------------- ----------------- ---------------- --------------- ------------------- -----------------
(5,270,170) 287,741 207,584 5,248,570 (99,373) 510,082
-------------- ----------------- ---------------- --------------- ------------------- -----------------
(5,142,507) 1,061,050 927,200 3,969,719 4,462,227 5,609,964
6,224,061 5,163,011 4,235,811 21,234,908 16,772,681 11,162,717
-------------- ----------------- ---------------- --------------- ------------------- -----------------
$ 1,081,554 $ 6,224,061 $ 5,163,011 $ 25,204,627 $ 21,234,908 $ 16,772,681
============== ================= ================ =============== =================== =================
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, 2011, 2010 AND 2009
MIST THIRD AVENUE SMALL CAP VALUE
INVESTMENT DIVISION
--------------------------------------------
2011 2010 2009
------------ ---------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (738) $ 1,081 $ 839
Net realized gains (losses) 86,881 42,370 (14,175)
Change in unrealized gains (losses) on investments (240,493) 198,929 152,916
------------ ---------------- --------------
Net increase (decrease) in net assets resulting
from operations (154,350) 242,380 139,580
------------ ---------------- --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 28,968 152,265 57,631
Net transfers (including fixed account) (400,494) 298,003 486,247
Policy charges (18,468) (17,684) (12,877)
Transfers for policy benefits and terminations (225,194) (369) (13,418)
------------ ---------------- --------------
Net increase (decrease) in net assets resulting
from policy transactions (615,188) 432,215 517,583
------------ ---------------- --------------
Net increase (decrease) in net assets (769,538) 674,595 657,163
NET ASSETS:
Beginning of year 1,575,589 900,994 243,831
------------ ---------------- --------------
End of year $ 806,051 $ 1,575,589 $ 900,994
============ ================ ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
140
MSF ARTIO INTERNATIONAL STOCK MSF BARCLAYS CAPITAL AGGREGATE BOND INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------------- -----------------------------------------------------
2011 2010 2009 2011 2010 2009
--------------- ------------------- ----------------- ---------------- ------------------- ----------------
$ 411,074 $ 312,234 $ (49,120) $ 3,008,471 $ 3,134,920 $ 5,177,513
(808,593) (1,030,425) (2,053,375) 843,640 613,564 195,723
(8,900,342) 3,370,719 10,298,349 3,276,276 1,607,603 (1,139,158)
--------------- ------------------- ----------------- ---------------- ------------------- ----------------
(9,297,861) 2,652,528 8,195,854 7,128,387 5,356,087 4,234,078
--------------- ------------------- ----------------- ---------------- ------------------- ----------------
4,892,915 5,258,777 5,947,335 12,546,475 13,651,933 15,575,764
100,755 (592,663) (1,694,751) (5,035,008) 4,296,224 5,185,787
(3,012,276) (3,227,781) (3,532,211) (7,661,064) (7,836,195) (8,703,722)
(2,530,848) (3,487,847) (2,746,693) (12,699,958) (7,334,933) (6,465,006)
--------------- ------------------- ----------------- ---------------- ------------------- ----------------
(549,454) (2,049,514) (2,026,320) (12,849,555) 2,777,029 5,592,823
--------------- ------------------- ----------------- ---------------- ------------------- ----------------
(9,847,315) 603,014 6,169,534 (5,721,168) 8,133,116 9,826,901
45,766,876 45,163,862 38,994,328 114,484,755 106,351,639 96,524,738
--------------- ------------------- ----------------- ---------------- ------------------- ----------------
$ 35,919,561 $ 45,766,876 $ 45,163,862 $ 108,763,587 $ 114,484,755 $ 106,351,639
=============== =================== ================= ================ =================== ================
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, 2011, 2010 AND 2009
MSF BLACKROCK AGGRESSIVE GROWTH
INVESTMENT DIVISION
-------------------------------------------------------
2011 2010 2009
---------------- ------------------- ------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (1,230,852) $ (1,491,228) $ (1,057,460)
Net realized gains (losses) 2,544,325 451,106 (3,328,441)
Change in unrealized gains (losses) on investments (8,863,059) 26,312,677 66,805,065
---------------- ------------------- ------------------
Net increase (decrease) in net assets resulting
from operations (7,549,586) 25,272,555 62,419,164
---------------- ------------------- ------------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 17,102,384 18,632,365 20,361,017
Net transfers (including fixed account) 3,214,026 (3,158,688) (3,469,034)
Policy charges (13,648,373) (13,928,346) (14,222,944)
Transfers for policy benefits and terminations (14,269,181) (14,208,996) (11,832,605)
---------------- ------------------- ------------------
Net increase (decrease) in net assets resulting
from policy transactions (7,601,144) (12,663,665) (9,163,566)
---------------- ------------------- ------------------
Net increase (decrease) in net assets (15,150,730) 12,608,890 53,255,598
NET ASSETS:
Beginning of year 200,141,525 187,532,635 134,277,037
---------------- ------------------- ------------------
End of year $ 184,990,795 $ 200,141,525 $ 187,532,635
================ =================== ==================
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
142
MSF BLACKROCK BOND INCOME MSF BLACKROCK DIVERSIFIED
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------- ------------------------------------------------------
2011 2010 2009 2011 2010 2009
--------------- ------------------ ----------------- ---------------- -------------------- ----------------
$ 2,652,269 $ 2,669,950 $ 5,080,494 $ 4,087,929 $ 2,653,340 $ 10,169,948
132,024 24,746 (553,787) (191,522) (1,951,136) (4,609,576)
1,930,533 3,372,816 2,142,811 3,658,514 20,635,275 31,028,944
--------------- ------------------ ----------------- ---------------- -------------------- ----------------
4,714,826 6,067,512 6,669,518 7,554,921 21,337,479 36,589,316
--------------- ------------------ ----------------- ---------------- -------------------- ----------------
7,828,777 8,520,413 9,587,028 27,879,758 29,469,771 32,386,040
(1,265,327) 406,620 (2,591,044) (878,239) (2,059,076) (4,711,176)
(6,239,953) (6,604,181) (7,385,796) (23,064,453) (23,701,241) (25,234,205)
(5,835,954) (5,946,761) (5,845,823) (19,040,111) (19,336,433) (17,354,140)
--------------- ------------------ ----------------- ---------------- -------------------- ----------------
(5,512,457) (3,623,909) (6,235,635) (15,103,045) (15,626,979) (14,913,481)
--------------- ------------------ ----------------- ---------------- -------------------- ----------------
(797,631) 2,443,603 433,883 (7,548,124) 5,710,500 21,675,835
84,862,836 82,419,233 81,985,350 263,102,316 257,391,816 235,715,981
--------------- ------------------ ----------------- ---------------- -------------------- ----------------
$ 84,065,205 $ 84,862,836 $ 82,419,233 $ 255,554,192 $ 263,102,316 $ 257,391,816
=============== ================== ================= ================ ==================== ================
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, 2011, 2010 AND 2009
MSF BLACKROCK LARGE CAP VALUE
INVESTMENT DIVISION
----------------------------------------------------
2011 2010 2009
--------------- ------------------ ----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 43,646 $ 27,035 $ 73,451
Net realized gains (losses) (80,782) (263,466) (513,587)
Change in unrealized gains (losses) on investments 254,349 1,265,453 1,615,283
--------------- ------------------ ----------------
Net increase (decrease) in net assets resulting
from operations 217,213 1,029,022 1,175,147
--------------- ------------------ ----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 1,997,147 2,157,901 2,432,547
Net transfers (including fixed account) 22,211 (183,197) 29,524
Policy charges (867,088) (871,019) (969,741)
Transfers for policy benefits and terminations (955,568) (957,459) (514,960)
--------------- ------------------ ----------------
Net increase (decrease) in net assets resulting
from policy transactions 196,702 146,226 977,370
--------------- ------------------ ----------------
Net increase (decrease) in net assets 413,915 1,175,248 2,152,517
NET ASSETS:
Beginning of year 12,899,137 11,723,889 9,571,372
--------------- ------------------ ----------------
End of year $ 13,313,052 $ 12,899,137 $ 11,723,889
=============== ================== ================
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
144
MSF BLACKROCK LEGACY LARGE CAP GROWTH MSF BLACKROCK MONEY MARKET
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------- ------------------------------------------------------
2011 2010 2009 2011 2010 2009
-------------- ----------------- ---------------- --------------- ------------------- ------------------
$ (46,620) $ (38,770) $ (5,579) $ (161,149) $ (300,906) $ (11,349)
137,813 75,641 (146,284) -- -- --
(879,158) 1,107,022 1,684,656 -- -- --
-------------- ----------------- ---------------- --------------- ------------------- ------------------
(787,965) 1,143,893 1,532,793 (161,149) (300,906) (11,349)
-------------- ----------------- ---------------- --------------- ------------------- ------------------
1,133,989 1,127,304 1,097,152 6,905,158 14,816,043 8,264,492
1,403,176 39,075 217,819 (10,656,392) (13,160,154) (31,859,828)
(514,429) (499,832) (460,694) (1,109,422) (1,340,285) (1,914,002)
(1,189,484) (438,412) (223,463) (4,013,323) (5,424,880) (2,515,809)
-------------- ----------------- ---------------- --------------- ------------------- ------------------
833,252 228,135 630,814 (8,873,979) (5,109,276) (28,025,147)
-------------- ----------------- ---------------- --------------- ------------------- ------------------
45,287 1,372,028 2,163,607 (9,035,128) (5,410,182) (28,036,496)
7,322,523 5,950,495 3,786,888 29,818,336 35,228,518 63,265,014
-------------- ----------------- ---------------- --------------- ------------------- ------------------
$ 7,367,810 $ 7,322,523 $ 5,950,495 $ 20,783,208 $ 29,818,336 $ 35,228,518
============== ================= ================ =============== =================== ==================
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, 2011, 2010 AND 2009
MSF DAVIS VENTURE VALUE
INVESTMENT DIVISION
-------------------------------------------------
2011 2010 2009
--------------- ----------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 210,852 $ 89,335 $ 312,737
Net realized gains (losses) 492,146 191,969 (723,952)
Change in unrealized gains (losses) on investments (3,392,027) 5,562,556 12,907,686
--------------- ----------------- ---------------
Net increase (decrease) in net assets resulting
from operations (2,689,029) 5,843,860 12,496,471
--------------- ----------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 7,273,891 8,027,444 9,217,297
Net transfers (including fixed account) 33,336 (908,212) (601,386)
Policy charges (3,741,905) (3,883,974) (4,013,443)
Transfers for policy benefits and terminations (5,136,119) (3,941,742) (2,327,459)
--------------- ----------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions (1,570,797) (706,484) 2,275,009
--------------- ----------------- ---------------
Net increase (decrease) in net assets (4,259,826) 5,137,376 14,771,480
NET ASSETS:
Beginning of year 57,910,618 52,773,242 38,001,762
--------------- ----------------- ---------------
End of year $ 53,650,792 $ 57,910,618 $ 52,773,242
=============== ================= ===============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
146
MSF FI VALUE LEADERS MSF JENNISON GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
----------------------------------------------- --------------------------------------------------
2011 2010 2009 2011 2010 2009
-------------- ----------------- -------------- --------------- ------------------ ---------------
$ 19,109 $ 42,314 $ 90,114 $ (66,983) $ (33,604) $ (75,210)
(99,840) (145,291) (259,906) 251,119 17,747 (140,559)
(347,209) 885,079 1,128,894 (215,551) 1,535,759 4,015,386
-------------- ----------------- -------------- --------------- ------------------ ---------------
(427,940) 782,102 959,102 (31,415) 1,519,902 3,799,617
-------------- ----------------- -------------- --------------- ------------------ ---------------
906,978 997,133 1,137,076 1,444,160 1,601,194 1,719,206
107,098 41,388 (112,167) (43,841) 598,866 (143,027)
(436,787) (451,311) (473,372) (938,887) (946,786) (963,364)
(572,452) (361,541) (254,916) (1,671,932) (838,122) (752,854)
-------------- ----------------- -------------- --------------- ------------------ ---------------
4,837 225,669 296,621 (1,210,500) 415,152 (140,039)
-------------- ----------------- -------------- --------------- ------------------ ---------------
(423,103) 1,007,771 1,255,723 (1,241,915) 1,935,054 3,659,578
6,488,932 5,481,161 4,225,438 15,408,401 13,473,347 9,813,769
-------------- ----------------- -------------- --------------- ------------------ ---------------
$ 6,065,829 $ 6,488,932 $ 5,481,161 $ 14,166,486 $ 15,408,401 $ 13,473,347
============== ================= ============== =============== ================== ===============
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, 2011, 2010 AND 2009
MSF LOOMIS SAYLES SMALL CAP CORE
INVESTMENT DIVISION
----------------------------------------------------
2011 2010 2009
--------------- ------------------ -----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (116,937) $ (112,605) $ (66,505)
Net realized gains (losses) 258,722 (55,224) (439,969)
Change in unrealized gains (losses) on investments (166,265) 4,065,140 3,809,050
--------------- ------------------ -----------------
Net increase (decrease) in net assets resulting
from operations (24,480) 3,897,311 3,302,576
--------------- ------------------ -----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 1,937,235 2,076,395 2,435,828
Net transfers (including fixed account) (342,656) (491,792) (114,204)
Policy charges (1,066,229) (1,025,327) (1,044,037)
Transfers for policy benefits and terminations (1,342,670) (999,217) (789,008)
--------------- ------------------ -----------------
Net increase (decrease) in net assets resulting
from policy transactions (814,320) (439,941) 488,579
--------------- ------------------ -----------------
Net increase (decrease) in net assets (838,800) 3,457,370 3,791,155
NET ASSETS:
Beginning of year 18,282,784 14,825,414 11,034,259
--------------- ------------------ -----------------
End of year $ 17,443,984 $ 18,282,784 $ 14,825,414
=============== ================== =================
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
148
MSF LOOMIS SAYLES SMALL CAP GROWTH MSF MET/ARTISAN MID CAP VALUE
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- -----------------------------------------------------
2011 2010 2009 2011 2010 2009
-------------- ------------------ ---------------- --------------- ------------------- -----------------
$(65,916) $ (51,755) $ (39,304) $ 60,419 $ (47,745) $ 94,579
104,198 (47,680) (219,528) (412,007) (887,093) (2,074,439)
121,090 1,843,398 1,519,136 3,096,938 6,661,231 14,134,862
-------------- ------------------ ---------------- --------------- ------------------- -----------------
159,372 1,743,963 1,260,304 2,745,350 5,726,393 12,155,002
-------------- ------------------ ---------------- --------------- ------------------- -----------------
919,698 919,140 988,520 5,738,107 6,389,633 7,222,155
627,796 81,273 (173,065) (545,207) (144,561) (2,763,216)
(484,566) (421,055) (408,126) (3,144,705) (3,135,232) (3,172,696)
(472,962) (486,248) (281,193) (4,205,697) (3,307,007) (2,344,946)
-------------- ------------------ ---------------- --------------- ------------------- -----------------
589,966 93,110 126,136 (2,157,502) (197,167) (1,058,703)
-------------- ------------------ ---------------- --------------- ------------------- -----------------
749,338 1,837,073 1,386,440 587,848 5,529,226 11,096,299
7,430,441 5,593,368 4,206,928 46,601,141 41,071,915 29,975,616
-------------- ------------------ ---------------- --------------- ------------------- -----------------
$ 8,179,779 $ 7,430,441 $ 5,593,368 $ 47,188,989 $ 46,601,141 $ 41,071,915
============== ================== ================ =============== =================== =================
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, 2011, 2010 AND 2009
MSF METLIFE CONSERVATIVE ALLOCATION
INVESTMENT DIVISION
--------------------------------------------------
2011 2010 2009
-------------- ------------------ ----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 68,584 $ 80,267 $ 42,263
Net realized gains (losses) 77,218 46,459 5,727
Change in unrealized gains (losses) on investments (37,275) 119,161 276,504
-------------- ------------------ ----------------
Net increase (decrease) in net assets resulting
from operations 108,527 245,887 324,494
-------------- ------------------ ----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 485,812 467,696 374,777
Net transfers (including fixed account) 943,856 1,892,409 493,401
Policy charges (360,205) (296,178) (222,010)
Transfers for policy benefits and terminations (843,231) (461,555) (132,555)
-------------- ------------------ ----------------
Net increase (decrease) in net assets resulting
from policy transactions 226,232 1,602,372 513,613
-------------- ------------------ ----------------
Net increase (decrease) in net assets 334,759 1,848,259 838,107
NET ASSETS:
Beginning of year 4,036,496 2,188,237 1,350,130
-------------- ------------------ ----------------
End of year $ 4,371,255 $ 4,036,496 $ 2,188,237
============== ================== ================
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
150
MSF METLIFE CONSERVATIVE TO MODERATE ALLOCATION MSF METLIFE MID CAP STOCK INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------------------ -----------------------------------------------------
2011 2010 2009 2011 2010 2009
-------------- ------------------ -------------- --------------- ------------------- -----------------
$ 102,885 $ 146,886 $ 97,885 $ 92,584 $ 88,922 $ 436,208
135,436 32,319 (68,146) 3,401,215 248,370 308,329
(210,123) 421,073 828,280 (4,954,472) 12,893,844 13,600,526
-------------- ------------------ -------------- --------------- ------------------- -----------------
28,198 600,278 858,019 (1,460,673) 13,231,136 14,345,063
-------------- ------------------ -------------- --------------- ------------------- -----------------
968,450 1,013,491 1,081,983 6,663,417 7,250,885 8,322,995
(142,377) 1,079,782 990,434 550,217 173,240 (1,733,152)
(614,893) (573,007) (588,201) (3,942,548) (3,916,122) (3,929,463)
(600,517) (457,386) (298,169) (4,758,860) (4,634,928) (4,046,727)
-------------- ------------------ -------------- --------------- ------------------- -----------------
(389,337) 1,062,880 1,186,047 (1,487,774) (1,126,925) (1,386,347)
-------------- ------------------ -------------- --------------- ------------------- -----------------
(361,139) 1,663,158 2,044,066 (2,948,447) 12,104,211 12,958,716
6,925,701 5,262,543 3,218,477 65,796,062 53,691,851 40,733,135
-------------- ------------------ -------------- --------------- ------------------- -----------------
$ 6,564,562 $ 6,925,701 $ 5,262,543 $ 62,847,615 $ 65,796,062 $ 53,691,851
============== ================== ============== =============== =================== =================
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, 2011, 2010 AND 2009
MSF METLIFE MODERATE ALLOCATION
INVESTMENT DIVISION
-----------------------------------------------------
2011 2010 2009
--------------- ------------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 365,409 $ 612,920 $ 506,612
Net realized gains (losses) 234,474 17,779 (2,887)
Change in unrealized gains (losses) on investments (1,362,402) 3,378,733 5,007,760
--------------- ------------------- -----------------
Net increase (decrease) in net assets resulting
from operations (762,519) 4,009,432 5,511,485
--------------- ------------------- -----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 5,784,576 5,949,225 6,448,156
Net transfers (including fixed account) 3,395,270 3,305,318 2,562,902
Policy charges (2,904,925) (2,798,394) (2,812,947)
Transfers for policy benefits and terminations (3,138,424) (2,041,425) (1,454,530)
--------------- ------------------- -----------------
Net increase (decrease) in net assets resulting
from policy transactions 3,136,497 4,414,724 4,743,581
--------------- ------------------- -----------------
Net increase (decrease) in net assets 2,373,978 8,424,156 10,255,066
NET ASSETS:
Beginning of year 37,214,331 28,790,175 18,535,109
--------------- ------------------- -----------------
End of year $ 39,588,309 $ 37,214,331 $ 28,790,175
=============== =================== =================
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
152
MSF METLIFE MODERATE TO AGGRESSIVE ALLOCATION MSF METLIFE STOCK INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------- ------------------------------------------------------
2011 2010 2009 2011 2010 2009
--------------- -------------------- --------------- ---------------- -------------------- ----------------
$ 506,120 $ 796,924 $ 779,492 $ 6,320,936 $ 5,808,346 $ 9,682,465
112,005 (102,509) (133,216) 3,790,443 (5,405,568) (976,772)
(3,772,324) 7,116,457 10,602,923 (2,093,968) 82,259,608 112,925,652
--------------- -------------------- --------------- ---------------- -------------------- ----------------
(3,154,199) 7,810,872 11,249,199 8,017,411 82,662,386 121,631,345
--------------- -------------------- --------------- ---------------- -------------------- ----------------
12,078,791 13,837,630 16,058,041 80,842,256 86,739,358 95,757,402
1,724,329 655,595 (778,406) (3,601,844) (12,182,904) (18,281,346)
(4,865,736) (5,100,587) (5,739,610) (41,264,087) (41,866,793) (43,260,398)
(4,677,007) (4,588,662) (2,211,947) (47,119,534) (41,307,628) (30,750,386)
--------------- -------------------- --------------- ---------------- -------------------- ----------------
4,260,377 4,803,976 7,328,078 (11,143,209) (8,617,967) 3,465,272
--------------- -------------------- --------------- ---------------- -------------------- ----------------
1,106,178 12,614,848 18,577,277 (3,125,798) 74,044,419 125,096,617
65,064,069 52,449,221 33,871,944 671,751,965 597,707,546 472,610,929
--------------- -------------------- --------------- ---------------- -------------------- ----------------
$ 66,170,247 $ 65,064,069 $ 52,449,221 $ 668,626,167 $ 671,751,965 $ 597,707,546
=============== ==================== =============== ================ ==================== ================
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, 2011, 2010 AND 2009
MSF MFS TOTAL RETURN
INVESTMENT DIVISION
------------------------------------------------
2011 2010 2009
-------------- ------------------ --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 96,167 $ 130,483 $ 179,213
Net realized gains (losses) (29,847) (99,947) (173,243)
Change in unrealized gains (losses) on investments (11,189) 568,242 937,515
-------------- ------------------ --------------
Net increase (decrease) in net assets resulting
from operations 55,131 598,778 943,485
-------------- ------------------ --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 1,027,479 952,924 1,270,198
Net transfers (including fixed account) (126,958) (93,026) 999,337
Policy charges (500,485) (506,572) (577,409)
Transfers for policy benefits and terminations (801,101) (377,989) (362,991)
-------------- ------------------ --------------
Net increase (decrease) in net assets resulting
from policy transactions (401,065) (24,663) 1,329,135
-------------- ------------------ --------------
Net increase (decrease) in net assets (345,934) 574,115 2,272,620
NET ASSETS:
Beginning of year 7,708,272 7,134,157 4,861,537
-------------- ------------------ --------------
End of year $ 7,362,338 $ 7,708,272 $ 7,134,157
============== ================== ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
154
MSF MFS VALUE MSF MORGAN STANLEY EAFE INDEX
INVESTMENT DIVISION INVESTMENT DIVISION
-------------------------------------------------- -----------------------------------------------------
2011 2010 2009 2011 2010 2009
--------------- ------------------ --------------- --------------- ------------------- -----------------
$ 367,363 $ 255,596 $ (360,654) $ 996,993 $ 1,043,606 $ 1,709,359
(44,982) (425,864) (877,734) 137,025 (236,046) (455,196)
(346,891) 5,358,513 9,493,542 (9,604,700) 3,674,685 11,844,795
--------------- ------------------ --------------- --------------- ------------------- -----------------
(24,510) 5,188,245 8,255,154 (8,470,682) 4,482,245 13,098,958
--------------- ------------------ --------------- --------------- ------------------- -----------------
6,217,602 6,966,530 7,793,992 7,277,374 7,898,110 9,558,645
423,365 37,691 (1,188,905) 3,903,398 2,327,295 (1,404,247)
(3,452,473) (3,542,869) (3,789,583) (3,801,271) (3,885,302) (4,356,028)
(4,853,465) (3,962,238) (2,718,079) (4,517,098) (4,368,376) (2,974,891)
--------------- ------------------ --------------- --------------- ------------------- -----------------
(1,664,971) (500,886) 97,425 2,862,403 1,971,727 823,479
--------------- ------------------ --------------- --------------- ------------------- -----------------
(1,689,481) 4,687,359 8,352,579 (5,608,279) 6,453,972 13,922,437
54,052,850 49,365,491 41,012,912 65,367,829 58,913,857 44,991,420
--------------- ------------------ --------------- --------------- ------------------- -----------------
$ 52,363,369 $ 54,052,850 $ 49,365,491 $ 59,759,550 $ 65,367,829 $ 58,913,857
=============== ================== =============== =============== =================== =================
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, 2011, 2010 AND 2009
MSF NEUBERGER BERMAN GENESIS
INVESTMENT DIVISION
-----------------------------------------------------
2011 2010 2009
--------------- ------------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (67,278) $ (275,380) $ 150,638
Net realized gains (losses) (976,828) (2,085,738) (2,703,187)
Change in unrealized gains (losses) on investments 4,961,322 15,927,942 10,045,644
--------------- ------------------- -----------------
Net increase (decrease) in net assets resulting
from operations 3,917,216 13,566,824 7,493,095
--------------- ------------------- -----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 8,942,665 9,951,447 11,539,415
Net transfers (including fixed account) (1,072,904) (1,640,139) (1,847,368)
Policy charges (5,313,072) (5,140,082) (5,408,103)
Transfers for policy benefits and terminations (5,912,935) (5,453,013) (4,050,199)
--------------- ------------------- -----------------
Net increase (decrease) in net assets resulting
from policy transactions (3,356,246) (2,281,787) 233,745
--------------- ------------------- -----------------
Net increase (decrease) in net assets 560,970 11,285,037 7,726,840
NET ASSETS:
Beginning of year 78,718,096 67,433,059 59,706,219
--------------- ------------------- -----------------
End of year $ 79,279,066 $ 78,718,096 $ 67,433,059
=============== =================== =================
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
156
MSF NEUBERGER BERMAN MID CAP VALUE MSF OPPENHEIMER GLOBAL EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------------------- -----------------------------------------------------
2011 2010 2009 2011 2010 2009
--------------- ------------------ ----------------- --------------- ------------------- -----------------
$ 11,772 $ (335) $ 373,237 $ 540,754 $ 315,620 $ 593,945
682,184 12,235 (1,385,415) 892,248 362,727 (362,452)
(5,912,606) 15,949,723 21,838,137 (5,213,727) 5,192,068 11,124,292
--------------- ------------------ ----------------- --------------- ------------------- -----------------
(5,218,650) 15,961,623 20,825,959 (3,780,725) 5,870,415 11,355,785
--------------- ------------------ ----------------- --------------- ------------------- -----------------
8,114,422 8,746,908 9,917,985 3,587,418 3,921,178 4,170,777
(368,606) (311,273) (2,538,823) (166,778) 130,181 (1,832,917)
(4,863,238) (4,935,922) (4,785,680) (2,342,147) (2,449,571) (2,484,658)
(5,832,043) (5,431,326) (3,527,386) (3,507,119) (2,648,050) (1,971,254)
--------------- ------------------ ----------------- --------------- ------------------- -----------------
(2,949,465) (1,931,613) (933,904) (2,428,626) (1,046,262) (2,118,052)
--------------- ------------------ ----------------- --------------- ------------------- -----------------
(8,168,115) 14,030,010 19,892,055 (6,209,351) 4,824,153 9,237,733
77,987,809 63,957,799 44,065,744 43,706,570 38,882,417 29,644,684
--------------- ------------------ ----------------- --------------- ------------------- -----------------
$ 69,819,694 $ 77,987,809 $ 63,957,799 $ 37,497,219 $ 43,706,570 $ 38,882,417
=============== ================== ================= =============== =================== =================
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, 2011, 2010 AND 2009
MSF RUSSELL 2000 INDEX
INVESTMENT DIVISION
---------------------------------------------------
2011 2010 2009
--------------- ------------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 171,547 $ 169,705 $ 494,140
Net realized gains (losses) 734,988 (66,857) 70,119
Change in unrealized gains (losses) on investments (3,300,203) 11,828,973 9,093,620
--------------- ------------------- ---------------
Net increase (decrease) in net assets resulting
from operations (2,393,668) 11,931,821 9,657,879
--------------- ------------------- ---------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 5,547,834 6,030,913 6,872,994
Net transfers (including fixed account) 238,532 (1,459,730) (966,184)
Policy charges (3,170,368) (3,188,654) (3,197,900)
Transfers for policy benefits and terminations (5,646,773) (3,961,411) (2,569,871)
--------------- ------------------- ---------------
Net increase (decrease) in net assets resulting
from policy transactions (3,030,775) (2,578,882) 139,039
--------------- ------------------- ---------------
Net increase (decrease) in net assets (5,424,443) 9,352,939 9,796,918
NET ASSETS:
Beginning of year 56,596,227 47,243,288 37,446,370
--------------- ------------------- ---------------
End of year $ 51,171,784 $ 56,596,227 $ 47,243,288
=============== =================== ===============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
158
MSF T. ROWE PRICE LARGE CAP GROWTH MSF T. ROWE PRICE SMALL CAP GROWTH
INVESTMENT DIVISION INVESTMENT DIVISION
--------------------------------------------------- ---------------------------------------------------
2011 2010 2009 2011 2010 2009
--------------- ------------------ ---------------- --------------- ----------------- -----------------
$ (316,295) $ (260,485) $ (70,974) $ (968,014) $ (769,902) $ (277,201)
908,859 253,453 (485,740) 2,332,511 562,971 468,105
(1,383,140) 6,370,252 13,392,122 (846,789) 22,601,563 19,138,611
--------------- ------------------ ---------------- --------------- ----------------- -----------------
(790,576) 6,363,220 12,835,408 517,708 22,394,632 19,329,515
--------------- ------------------ ---------------- --------------- ----------------- -----------------
4,270,409 4,102,715 5,247,409 6,244,277 6,679,778 7,344,778
162,723 (1,629,305) (479,252) 3,733,237 (365,817) (1,819,482)
(2,791,074) (2,739,632) (3,146,728) (4,773,192) (4,469,032) (4,555,731)
(4,309,233) (2,842,508) (2,638,815) (6,901,125) (5,044,716) (3,780,276)
--------------- ------------------ ---------------- --------------- ----------------- -----------------
(2,667,175) (3,108,730) (1,017,386) (1,696,803) (3,199,787) (2,810,711)
--------------- ------------------ ---------------- --------------- ----------------- -----------------
(3,457,751) 3,254,490 11,818,022 (1,179,095) 19,194,845 16,518,804
45,775,087 42,520,597 30,702,575 88,004,866 68,810,021 52,291,217
--------------- ------------------ ---------------- --------------- ----------------- -----------------
$ 42,317,336 $ 45,775,087 $ 42,520,597 $ 86,825,771 $ 88,004,866 $ 68,810,021
=============== ================== ================ =============== ================= =================
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, 2011, 2010 AND 2009
MSF VAN ECK
GLOBAL NATURAL MSF WESTERN ASSET MANAGEMENT
RESOURCES STRATEGIC BOND OPPORTUNITIES
INVESTMENT DIVISION INVESTMENT DIVISION
------------------- ------------------------------------------------------
2011 (f) 2011 2010 2009
------------------- ------------- ---------------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (609) $ 1,016,886 $ 1,151,290 $ 1,027,387
Net realized gains (losses) (45) 144,847 71,403 382,268
Change in unrealized gains (losses) on investments (2,198) 64,600 1,196,007 3,433,572
------------------- ------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from operations (2,852) 1,226,333 2,418,700 4,843,227
------------------- ------------- ---------------------- -----------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 3,321 2,593,403 2,832,832 3,046,053
Net transfers (including fixed account) 12,824 (646,114) 1,156,919 35,565
Policy charges (101) (1,546,833) (1,584,202) (1,611,112)
Transfers for policy benefits and terminations (13) (1,876,403) (1,617,829) (1,198,113)
------------------- ------------- ---------------------- -----------------
Net increase (decrease) in net assets resulting
from policy transactions 16,031 (1,475,947) 787,720 272,393
------------------- ------------- ---------------------- -----------------
Net increase (decrease) in net assets 13,179 (249,614) 3,206,420 5,115,620
NET ASSETS:
Beginning of year -- 23,786,502 20,580,082 15,464,462
------------------- ------------- ---------------------- -----------------
End of year $ 13,179 $ 23,536,888 $ 23,786,502 $ 20,580,082
=================== ============= ====================== =================
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
160
PIMCO VIT
ALL ASSET
MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT INVESTMENT PIMCO VIT LOW DURATION
INVESTMENT DIVISION DIVISION INVESTMENT DIVISION
--------------------------------------------------- -------------- ------------------------------------------
2011 2010 2009 2011 (f) 2011 2010 2009 (e)
--------------- ------------------- --------------- -------------- ------------ -------------- --------------
$ 116,646 $ 314,612 $ 583,308 $ 2,774 $ 10,827 $ 9,408 $ 9,485
564,972 49,043 (89,029) -- 618 2,729 33,086
82,587 435,726 44,105 (1,176) (6,243) 23,685 1,601
--------------- ------------------- --------------- -------------- ------------ -------------- --------------
764,205 799,381 538,384 1,598 5,202 35,822 44,172
--------------- ------------------- --------------- -------------- ------------ -------------- --------------
2,130,621 2,331,803 2,652,804 8,337 43,028 -- --
(428,475) (168,918) 3,368,164 86,523 153,678 32 696,037
(1,254,276) (1,312,750) (1,485,448) (320) (18,431) (8,069) (3,966)
(1,409,928) (1,375,135) (4,351,515) -- -- -- (1,497)
--------------- ------------------- --------------- -------------- ------------ -------------- --------------
(962,058) (525,000) 184,005 94,540 178,275 (8,037) 690,574
--------------- ------------------- --------------- -------------- ------------ -------------- --------------
(197,853) 274,381 722,389 96,138 183,477 27,785 734,746
16,633,651 16,359,270 15,636,881 -- 762,531 734,746 --
--------------- ------------------- --------------- -------------- ------------ -------------- --------------
$ 16,435,798 $ 16,633,651 $ 16,359,270 $ 96,138 $ 946,008 $ 762,531 $ 734,746
=============== =================== =============== ============== ============ ============== ==============
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 -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009
PIONEER VCT EMERGING MARKETS
INVESTMENT DIVISION
--------------------------------------------
2011 2010 2009
------------ ---------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $(12,310) $ (10,583) $ 3,201
Net realized gains (losses) 121,447 75,682 8,989
Change in unrealized gains (losses) on investments (327,299) 68,690 311,181
------------ ---------------- --------------
Net increase (decrease) in net assets resulting
from operations (218,162) 133,789 323,371
------------ ---------------- --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 104,589 102,565 70,484
Net transfers (including fixed account) 193,458 72,459 258,993
Policy charges (13,621) (14,156) (19,519)
Transfers for policy benefits and terminations (649,132) (82,614) (15,065)
------------ ---------------- --------------
Net increase (decrease) in net assets resulting
from policy transactions (364,706) 78,254 294,893
------------ ---------------- --------------
Net increase (decrease) in net assets (582,868) 212,043 618,264
NET ASSETS:
Beginning of year 984,166 772,123 153,859
------------ ---------------- --------------
End of year $ 401,298 $ 984,166 $ 772,123
============ ================ ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
162
PIONEER VCT MID CAP VALUE ROYCE MICRO-CAP
INVESTMENT DIVISION INVESTMENT DIVISION
---------------------------------------- -------------------------
2011 2010 2009 (d) 2011 2010 (b)
------------ --------------- ----------- ------------ ------------
$ 640 $ 504 $ (34) $ 6,956 $ 5,040
580 313 32 1,545 197
(11,556) 14,039 2,439 (52,132) 61,964
------------ --------------- ----------- ------------ ------------
(10,336) 14,856 2,437 (43,631) 67,201
------------ --------------- ----------- ------------ ------------
-- 7,217 -- 4,792 53,592
51,112 59,471 19,671 7,703 236,555
(5,471) (3,451) (582) (7,099) (4,223)
(3) (18) (123) (11) (4,416)
------------ --------------- ----------- ------------ ------------
45,638 63,219 18,966 5,385 281,508
------------ --------------- ----------- ------------ ------------
35,302 78,075 21,403 (38,246) 348,709
99,478 21,403 -- 348,709 --
------------ --------------- ----------- ------------ ------------
$ 134,780 $ 99,478 $ 21,403 $ 310,463 $ 348,709
============ =============== =========== ============ ============
The accompanying notes are an integral part of these financial statements.
163
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009
ROYCE SMALL-CAP
INVESTMENT DIVISION
-----------------------------------------
2011 2010 2009 (h)
------------ ---------------- -----------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $(2,603) $ (860) $ (57)
Net realized gains (losses) 18,080 2,111 16
Change in unrealized gains (losses) on investments (64,398) 63,066 2,984
------------ ---------------- -----------
Net increase (decrease) in net assets resulting
from operations (48,921) 64,317 2,943
------------ ---------------- -----------
POLICY TRANSACTIONS:
Premium payments received from policy owners 4,584 22,886 13,726
Net transfers (including fixed account) 740,973 257,401 42,530
Policy charges (13,407) (6,872) (728)
Transfers for policy benefits and terminations (321,629) (3,061) --
------------ ---------------- -----------
Net increase (decrease) in net assets resulting
from policy transactions (410,521) 270,354 55,528
------------ ---------------- -----------
Net increase (decrease) in net assets 361,600 334,671 58,471
NET ASSETS:
Beginning of year 393,142 58,471 --
------------ ---------------- -----------
End of year $ 754,742 $ 393,142 $ 58,471
============ ================ ===========
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
164
UIF EMERGING MARKETS DEBT UIF EMERGING MARKETS EQUITY
INVESTMENT DIVISION INVESTMENT DIVISION
------------------------------------- --------------------------------------------
2011 2010 2009 (h) 2011 2010 2009 (h)
------------ ------------- ---------- ------------ ---------------- --------------
$ 6,403 $ 287 $ 68 $ (667) $ 238 $ (17)
2,814 87 32 4,478 899 480
79 318 95 (99,779) 38,992 1,146
------------ ------------- ---------- ------------ ---------------- --------------
9,296 692 195 (95,968) 40,129 1,609
------------ ------------- ---------- ------------ ---------------- --------------
2,057 2,057 803 2,923 2,451 803
408,567 -- 6,688 444,567 157,781 6,231
(2,897) (1,064) (131) (9,803) (6,947) (1,164)
(3,368) (89) (1,808) -- (1,388) (1,836)
------------ ------------- ---------- ------------ ---------------- --------------
404,359 904 5,552 437,687 151,897 4,034
------------ ------------- ---------- ------------ ---------------- --------------
413,655 1,596 5,747 341,719 192,026 5,643
7,343 5,747 -- 197,669 5,643 --
------------ ------------- ---------- ------------ ---------------- --------------
$ 420,998 $ 7,343 $ 5,747 $ 539,388 $ 197,669 $ 5,643
============ ============= ========== ============ ================ ==============
The accompanying notes are an integral part of these financial statements.
165
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONCLUDED)
FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009
WELLS FARGO VT TOTAL RETURN BOND
INVESTMENT DIVISION
----------------------------------------------
2011 2010 2009
------------- ----------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 12,539 $ 23,065 $ 16,897
Net realized gains (losses) 45,796 34,459 5,219
Change in unrealized gains (losses) on investments (7,169) (12,496) 23,526
------------- ----------------- --------------
Net increase (decrease) in net assets resulting
from operations 51,166 45,028 45,642
------------- ----------------- --------------
POLICY TRANSACTIONS:
Premium payments received from policy owners 66,775 158,432 124,039
Net transfers (including fixed account) (413,486) 386,034 234,843
Policy charges (13,372) (15,907) (14,024)
Transfers for policy benefits and terminations (637,284) (26,909) (39,437)
------------- ----------------- --------------
Net increase (decrease) in net assets resulting
from policy transactions (997,367) 501,650 305,421
------------- ----------------- --------------
Net increase (decrease) in net assets (946,201) 546,678 351,063
NET ASSETS:
Beginning of year 1,081,415 534,737 183,674
------------- ----------------- --------------
End of year $ 135,214 $ 1,081,415 $ 534,737
============= ================= ==============
(a) Commenced on May 1, 2005 and began transactions in 2009.
(b) Commenced on November 10, 2008 and began transactions in 2010.
(c) Commenced on May 4, 2009 and began transactions in 2011.
(d) Commenced on April 28, 2008 and began transactions in 2009.
(e) For the period May 4, 2009 to December 31, 2009.
(f) For the period May 2, 2011 to December 31, 2011.
(g) For the period May 3, 2010 to December 31, 2010.
(h) Commenced on November 10, 2008 and began transactions in 2009.
The accompanying notes are an integral part of these financial statements.
166
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 State Department of Financial
Services.
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:
AIM Variable Insurance Funds (Invesco Variable
Insurance Funds) ("Invesco V.I.")
AllianceBernstein Variable Products Series Fund, Inc.
("AllianceBernstein")
American Century Variable Portfolios, Inc.
("American Century VP")
American Funds Insurance Series ("American Funds")
Dreyfus Variable Investment Fund ("Dreyfus VIF")
Fidelity Variable Insurance Products ("Fidelity VIP")
Franklin Templeton Variable Insurance Products Trust
("FTVIPT")
Goldman Sachs Variable Insurance Trust
("Goldman Sachs")
Janus Aspen Series ("Janus Aspen")
Legg Mason Partners Variable Equity Trust
("LMPVET")
Met Investors Series Trust ("MIST")*
Metropolitan Series Fund, Inc. ("MSF")*
MFS Variable Insurance Trust ("MFS VIT")
Oppenheimer Variable Account Funds
("Oppenheimer VA")
PIMCO Variable Insurance Trust ("PIMCO VIT")
Pioneer Variable Contracts Trust ("Pioneer VCT")
Putnam Variable Trust ("Putnam VT")
Royce Capital Fund ("Royce")
The Universal Institutional Funds, Inc. ("UIF")
Wells Fargo Variable Trust ("Wells Fargo VT")
* See Note 5 for a discussion of additional information on related party
transactions.
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, 2011:
AllianceBernstein Global Thematic Growth Investment
Division
AllianceBernstein Intermediate Bond Investment
Division
AllianceBernstein International Value Investment
Division
American Century VP Vista Investment Division
American Funds Bond Investment Division
American Funds Global Small Capitalization
Investment Division
American Funds Growth Investment Division
American Funds Growth-Income Investment Division
American Funds International Investment Division
American Funds U.S. Government/AAA-Rated
Securities Investment Division
Dreyfus VIF International Value Investment Division
Fidelity VIP Asset Manager: Growth Investment
Division
Fidelity VIP Contrafund Investment Division
Fidelity VIP Equity-Income Investment Division
Fidelity VIP Freedom 2010 Investment Division
Fidelity VIP Freedom 2020 Investment Division
Fidelity VIP Freedom 2030 Investment Division
Fidelity VIP Freedom 2050 Investment Division
Fidelity VIP High Income Investment Division
Fidelity VIP Investment Grade Bond Investment
Division
Fidelity VIP Mid Cap Investment Division
FTVIPT Mutual Global Discovery Securities
Investment Division
167
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
2. LIST OF INVESTMENT DIVISIONS -- (CONTINUED)
FTVIPT Templeton Foreign Securities Investment
Division
FTVIPT Templeton Global Bond Securities Investment
Division
Goldman Sachs Mid-Cap Value Investment Division
Goldman Sachs Structured Small Cap Equity
Investment Division
Invesco V.I. Global Real Estate Investment Division
Invesco V.I. Government Securities Investment
Division (a)
Invesco V.I. International Growth Investment Division
Invesco V.I. Van Kampen Comstock Investment
Division
Janus Aspen Balanced Investment Division
Janus Aspen Forty Investment Division
Janus Aspen Janus Investment Division
Janus Aspen Overseas Investment Division
MFS VIT Global Equity Investment Division
MFS VIT High Income Investment Division
MFS VIT New Discovery Investment Division
MFS VIT 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 BlackRock Large Cap Core Investment Division
MIST Clarion Global Real Estate Investment Division*
MIST Dreman Small Cap Value Investment Division
MIST Harris Oakmark International Investment
Division
MIST Invesco Small Cap Growth Investment Division*
MIST Janus Forty Investment Division
MIST Lazard Mid Cap Investment Division*
MIST Legg Mason ClearBridge Aggressive Growth
Investment Division
MIST Lord Abbett Bond Debenture Investment
Division
MIST Lord Abbett Mid Cap Value 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 MetLife Aggressive Strategy Investment
Division* (a)
MIST MFS Emerging Markets Equity Investment Division (a)
MIST MFS Research International Investment
Division*
MIST Morgan Stanley Mid Cap Growth Investment
Division
MIST Oppenheimer Capital Appreciation Investment
Division
MIST PIMCO Inflation Protected Bond Investment
Division
MIST PIMCO Total Return Investment Division
MIST Pioneer Fund Investment Division
MIST RCM Technology Investment Division
MIST SSgA Growth and Income ETF Investment
Division
MIST SSgA Growth ETF Investment Division
MIST T. Rowe Price Large Cap Value Investment
Division
MIST T. Rowe Price Mid Cap Growth Investment
Division*
MIST Third Avenue Small Cap Value Investment
Division
MSF Artio International Stock Investment Division
MSF Barclays Capital Aggregate Bond Index
Investment Division
MSF BlackRock Aggressive Growth Investment
Division
MSF BlackRock Bond Income Investment Division
MSF BlackRock Diversified Investment Division
MSF BlackRock Large Cap Value Investment Division
MSF BlackRock Legacy Large Cap Growth Investment
Division
MSF BlackRock Money Market Investment Division
MSF Davis Venture Value Investment Division
MSF FI Value Leaders Investment Division
MSF Jennison Growth Investment Division
MSF Loomis Sayles Small Cap Core Investment
Division
MSF Loomis Sayles Small Cap Growth Investment
Division
MSF Met/Artisan Mid Cap Value Investment Division*
MSF MetLife Conservative Allocation Investment
Division*
MSF MetLife Conservative to Moderate Allocation
Investment Division*
MSF MetLife Mid Cap Stock Index Investment
Division
MSF MetLife Moderate Allocation Investment
Division*
MSF MetLife Moderate to Aggressive Allocation
Investment Division*
168
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
2. LIST OF INVESTMENT DIVISIONS -- (CONCLUDED)
MSF MetLife Stock Index Investment Division
MSF MFS Total Return Investment Division*
MSF MFS Value Investment Division
MSF Morgan Stanley EAFE Index Investment Division
MSF Neuberger Berman Genesis Investment Division
MSF Neuberger Berman Mid Cap Value Investment
Division
MSF Oppenheimer Global Equity Investment Division
MSF Russell 2000 Index Investment Division
MSF T. Rowe Price Large Cap Growth Investment
Division
MSF T. Rowe Price Small Cap Growth Investment
Division
MSF Van Eck Global Natural Resources Investment
Division (a)
MSF Western Asset Management Strategic Bond
Opportunities Investment Division
MSF Western Asset Management U.S. Government Investment
Division
PIMCO VIT All Asset Investment Division (a)
PIMCO VIT Low Duration 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
Wells Fargo VT Total Return Bond Investment
Division
* This Investment Division invests in two or more share classes within the
underlying portfolio, series, or fund of the Trusts.
(a) This Investment Division began operations during the year ended
December 31, 2011.
B. The following Investment Divisions had no net assets as of December 31,
2011:
American Funds High-Income Bond Investment
Division
Fidelity VIP Freedom 2015 Investment Division
Fidelity VIP Freedom 2025 Investment Division
Fidelity VIP Freedom 2040 Investment Division
Janus Aspen Enterprise Investment Division
LMPVET Investment Counsel Variable Social
Awareness Investment Division
Oppenheimer VA Main Street Small- & Mid-Cap
Investment Division
PIMCO VIT Long-Term U.S. Government Investment
Division
Putnam VT International Value Investment Division
3. PORTFOLIO CHANGES
The following Investment Divisions ceased operations during the year ended
December 31, 2011:
Delaware VIP Small Cap Value Investment Division
Invesco V.I. Van Kampen Government Investment Division
MIST Legg Mason Value Equity Investment Division
MSF MetLife Aggressive Allocation Investment Division
The operations of the Investment Divisions were affected by the following
changes that occurred during the year ended December 31, 2011:
NAME CHANGES:
FORMER NAME NEW NAME
(MIST) Lord Abbett Growth and Income Portfolio (MIST) T. Rowe Price Large Cap Value Portfolio
Oppenheimer Main Street Small Cap Fund/VA Oppenheimer Main Street Small- & Mid-Cap Fund/VA
169
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
3. PORTFOLIO CHANGES -- (CONTINUED)
MERGERS:
FORMER PORTFOLIO NEW PORTFOLIO
Invesco V.I. Van Kampen Government Fund Invesco V.I. Government Securities Fund
(MIST) Legg Mason Value Equity Portfolio (MIST) Legg Mason ClearBridge Aggressive Growth Portfolio
(MSF) MetLIfe Aggressive Allocation Portfolio (MIST) MetLife Aggressive Strategy Portfolio
SUBSTITUTION:
FORMER PORTFOLIO NEW PORTFOLIO
Delaware VIP Small Cap Value Series (MIST) Third Avenue Small Cap Value Portfolio
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.
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
that the Separate Account has the ability to access.
Level 2 Observable inputs other than quoted prices in Level 1 that are
observable either directly or indirectly. These inputs may include
quoted prices for the identical instrument on an inactive market
or prices for similar instruments.
Level 3 Unobservable inputs that are supported by little or no market
activity and are significant to the fair value of the assets,
representing the Separate Account's own assumptions about the
assumptions a market participant would use in valuing the asset,
and based on the best information available.
170
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
4. SIGNIFICANT ACCOUNTING POLICIES -- (CONTINUED)
Each Investment Division invests in shares of open-end mutual funds which
calculate a daily NAV based on the fair 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. There were no
transfers between Level 1 and Level 2, and no activity in Level 3 during the
year.
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
currently 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.
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.
171
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
4. SIGNIFICANT ACCOUNTING POLICIES -- (CONCLUDED)
FUTURE ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
In May 2011, the Financial Accounting Standards Board ("FASB") issued new
guidance regarding fair value measurements (Accounting Standards Update ("ASU")
2011-04, FAIR VALUE MEASUREMENT (TOPIC 820): AMENDMENTS TO ACHIEVE COMMON FAIR
VALUE MEASUREMENT AND DISCLOSURE REQUIREMENTS IN U.S. GAAP AND IFRSS),
effective for the first interim or annual period beginning after December 15,
2011. The guidance should be applied prospectively. The amendments in this ASU
are intended to establish common requirements for measuring fair value and for
disclosing information about fair value measurements in accordance with GAAP
and International Financial Reporting Standards ("IFRS"). Some of the
amendments clarify the FASB's intent on the application of existing fair value
measurement requirements. Other amendments change a particular principle or
requirement for measuring fair value or for disclosing information about fair
value measurements. The Separate Account does not expect the adoption of this
new guidance to have a material impact on its financial statements.
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, 2011:
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. The charges outlined in the following
section 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.
Other 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 $3 to $35 and are assessed monthly. For some Policies, a
surrender 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.
172
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
5. EXPENSES AND RELATED PARTY TRANSACTIONS -- (CONTINUED)
Most policies offer optional benefits that can be added to the policy by rider.
The charge for riders that provide life insurance benefits can range from $0.01
to $30.34 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 affiliate of the Company. On May 1, 2009, Met
Investors Advisory, LLC, an affiliate of the Company and previous manager of
the MIST Trust, merged into MetLife Advisers, LLC.
173
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
6. STATEMENTS OF INVESTMENTS