0001193125-15-131398.txt : 20150415 0001193125-15-131398.hdr.sgml : 20150415 20150415165735 ACCESSION NUMBER: 0001193125-15-131398 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 20150415 DATE AS OF CHANGE: 20150415 EFFECTIVENESS DATE: 20150501 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: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 033-57320 FILM NUMBER: 15772260 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 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: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-06025 FILM NUMBER: 15772261 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 485BPOS 1 d830948d485bpos.txt METFLEX POST-EFFECTIVE AMENDMENT NO. 28 AS FILED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION ON APRIL 15, 2015 REGISTRATION NOS. 033-57320 811-06025 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-6 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 POST-EFFECTIVE AMENDMENT NO. 28 [X] AND/OR REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 AMENDMENT NO. 72 [X]
METROPOLITAN LIFE SEPARATE ACCOUNT UL (Exact Name of Registrant) METROPOLITAN LIFE INSURANCE COMPANY (Name of Depositor) 200 Park Avenue New York, NY 10166 (Address of depositor's principal executive offices) DEPOSITOR'S TELEPHONE NUMBER INCLUDING AREA CODE (212) 578-9500 RICARDO A. ANZALDUA, ESQ. Executive Vice President and General Counsel Metropolitan Life Insurance Company 1095 Avenue of the Americas New York, NY 10036 (Name and address of agent for service) COPY TO: W. THOMAS CONNER, ESQUIRE Reed Smith LLP 1301 K Street, NW, Suite 1100 Washington, D.C. 20005 Approximate Date of Proposed Public Offering: on May 1, 2015 or as soon thereafter as practicable It is proposed that this filing will become effective (check appropriate box) [ ] immediately upon filing pursuant to paragraph (b) [X] on May 1, 2015 pursuant to paragraph (b) [ ] 60 days after filing pursuant to paragraph (a)(1) [ ] on (date) pursuant to paragraph (a)(1) of Rule 485 [ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment Title of Securities Being Registered: Interests in Metropolitan Life Separate Account UL, which funds certain Variable Universal Life Insurance Policies. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- METROPOLITAN LIFE INSURANCE COMPANY METROPOLITAN LIFE SEPARATE ACCOUNT UL METFLEX FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICIES SUPPLEMENT DATED MAY 1, 2015 TO PROSPECTUS DATED MAY 1, 2015 This supplement is prepared for owners of MetFlex C and MetFlex policies issued prior to January 1, 2009. It describes certain differences in the charges imposed under your Policy and the charges described in the Fee Table of the current MetFlex Exec prospectus. You should read and retain this supplement. METFLEX C POLICIES For MetFlex C Policies issued on or after May 1, 1996 and before August 1, 2000, the current sales charge imposed in Policy years 1 to 10 is up to 9% of the annual target premium paid, and the current administrative charge imposed is up to 1.05% of the annual target premium paid. For MetFlex C Policies issued before January 1, 2009, the current charge for cost of insurance for coverage under the term benefit ranges from $0.03 to $13.93 per $1,000 of the term insurance amount. The maximum charge for cost of insurance for coverage under both the base Policy and the term benefit ranges from $0.09 to $30.45 per $1,000 of term insurance amount. For MetFlex C Policies, the current mortality and expense risk charge is 0.48% in Policy years 1 to 9, 0.36% in Policy years 10 to 20, and 0.30% thereafter. For MetFlex C Policies issued on or after November 5, 2001 and before February 1, 2004 with the Enhanced Cash Surrender Value Rider, if you request a full cash withdrawal in the first seven Policy years, we will refund the amounts shown in Table B below: TABLE B
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% 75% 2 90% 50% 3 75% 25% 4 60% None 5 45% None 6 30% None 7 15% None 8 and later None None
* The percent shown is applied to the cumulative sales, tax, and administrative charges deducted from your premium. METFLEX POLICIES For MetFlex Policies issued on or after September 1, 1993 and before January 1, 2009, there is no current sales charge and the maximum sales charge imposed is 1.0% of annual target premium paid in all Policy years. The current administrative charge is up to 1.05% of annual target premium paid in any Policy year and the maximum administrative charge is up to 1.05% of all premiums paid in all Policy years. For MetFlex Policies issued before January 1, 2009, the maximum cost of term insurance charge ranges from $0.09 to $30.45 per $1,000 of the term insurance amount. The current mortality and expense risk charge is 0.60% in Policy years 1 to 9 and 0.30% thereafter. PROSPECTUS FOR METFLEX, A FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY ("POLICY") ISSUED BY METROPOLITAN LIFE INSURANCE COMPANY ("METLIFE") MAY 1, 2015 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: o Life insurance coverage o Flexible premium payments o A choice among three death benefit options o 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: AB VARIABLE PRODUCTS SERIES FUND, INC. AB VPS Global Thematic Growth Portfolio -- Class B AB VPS Intermediate Bond Portfolio -- Class B AB VPS International Value Portfolio -- Class A AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS) Invesco V.I. Comstock Fund -- Series II Invesco V.I. Government Securities Fund -- Series II Invesco V.I. International Growth Fund -- Series I AMERICAN CENTURY VARIABLE PORTFOLIOS, INC. -- CLASS I VP Capital Appreciation 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 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 Franklin Mutual Global Discovery VIP Fund -- Class 2 Templeton Foreign VIP Fund -- Class 1 Templeton Global Bond VIP Fund -- Class 1 GOLDMAN SACHS VARIABLE INSURANCE TRUST -- INSTITUTIONAL SHARES Goldman Sachs Small Cap Equity Insights Fund JANUS ASPEN SERIES Balanced Portfolio -- Service Shares Enterprise Portfolio -- Service Shares Forty Portfolio -- Service Shares Janus Portfolio -- Institutional Shares Overseas Portfolio -- Service Shares MET INVESTORS SERIES TRUST Clarion Global Real Estate Portfolio -- Class A ClearBridge Aggressive Growth Portfolio -- Class A Harris Oakmark International Portfolio -- Class A Invesco Mid Cap Value Portfolio -- Class A Invesco Small Cap Growth Portfolio -- Class B JPMorgan Small Cap Value Portfolio -- Class A Lord Abbett Bond Debenture Portfolio -- Class A MetLife Asset Allocation 100 Portfolio -- Class B MetLife Small Cap Value Portfolio -- Class B MFS(R) Emerging Markets Equity Portfolio -- Class B MFS(R) Research International Portfolio -- Class B Morgan Stanley Mid Cap Growth Portfolio -- Class A Oppenheimer Global Equity Portfolio -- Class A PIMCO Inflation Protected Bond Portfolio -- Class A PIMCO Total Return Portfolio -- Class A Pioneer Fund Portfolio -- Class A T. Rowe Price Large Cap Value Portfolio -- Class A WMC Large Cap Research Portfolio -- Class A METROPOLITAN SERIES FUND Baillie Gifford International Stock Portfolio -- Class A Barclays Aggregate Bond Index Portfolio -- Class A BlackRock Bond Income Portfolio -- Class A BlackRock Capital Appreciation Portfolio -- Class A BlackRock Money Market Portfolio -- Class A Frontier Mid Cap Growth Portfolio -- Class A Jennison Growth Portfolio -- Class A Loomis Sayles Small Cap Core Portfolio -- Class A Met/Artisan Mid Cap Value Portfolio -- Class B MetLife Asset Allocation 20 Portfolio -- Class B MetLife Asset Allocation 40 Portfolio -- Class B MetLife Asset Allocation 60 Portfolio -- Class B MetLife Asset Allocation 80 Portfolio -- Class B MetLife Mid Cap Stock Index Portfolio -- Class A MetLife Stock Index Portfolio -- Class A MFS(R) Total Return Portfolio -- Class B MFS(R) Value Portfolio -- Class A MSCI EAFE(R) Index Portfolio -- Class A Neuberger Berman Genesis Portfolio -- Class A Russell 2000(R) Index Portfolio -- Class A T. Rowe Price Large Cap Growth Portfolio -- Class A T. Rowe Price Small Cap Growth Portfolio -- Class A WMC Balanced Portfolio -- Class A WMC Core Equity Opportunities Portfolio -- Class A MFS(R) VARIABLE INSURANCE TRUST -- SERVICE CLASS MFS(R) Global Equity Series MFS(R) New Discovery Series MFS(R) VARIABLE INSURANCE TRUST II -- SERVICE CLASS MFS(R) High Yield Portfolio OPPENHEIMER VARIABLE ACCOUNT FUNDS -- NON-SERVICE SHARES Oppenheimer Main Street Small Cap Fund(R)/VA PIMCO VARIABLE INSURANCE TRUST -- ADMINISTRATIVE CLASS PIMCO All Asset Portfolio PIMCO CommodityRealReturn(R) Strategy Portfolio PIMCO Long-Term U.S. Government Portfolio PIMCO Low Duration Portfolio PIONEER VARIABLE CONTRACTS TRUST -- CLASS I Pioneer Mid Cap Value VCT Portfolio 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 TRUST FOR ADVISED PORTFOLIOS 1919 Variable Socially Responsive Balanced Fund WELLS FARGO VARIABLE TRUST -- CLASS 2 VT Total Return Bond Fund Certain Funds and/or Portfolios have been subject to a name change or reorganization. Please see Appendix A-- "Additional Information Regarding the Funds." Separate prospectuses for the Metropolitan Series Fund, Met Investors Series Trust, AIM Variable Insurance Funds (Invesco Variable Insurance Funds), AB Variable Products Series Fund, Inc., American Century Variable Portfolios, Inc., American Funds Insurance Series(R), Dreyfus Variable Investment Fund, Fidelity(R) Variable Insurance Products, Franklin Templeton Variable Insurance Products Trust, Goldman Sachs Variable Insurance Trust, Janus Aspen Series, MFS(R) Variable Insurance Trust, MFS(R) Variable Insurance Trust II, Oppenheimer Variable Account Funds, PIMCO Variable Insurance Trust, Pioneer Variable Contracts Trust, Putnam Variable Trust, Royce Capital Fund, The Universal Institutional Funds, Inc., Trust for Advised Portfolios and 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 2 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. 3 TABLE OF CONTENTS
PAGE IN THIS SUBJECT PROSPECTUS ------------------------------------------------------------------------------- ----------- Contacting Us.................................................................. 5 Summary of Benefits and Risks.................................................. 5 Policy Benefits............................................................. 5 Risks of a Certificate...................................................... 6 Fee Tables..................................................................... 7 Transaction Fees............................................................ 7 Periodic Charges Other Than Portfolio Operating Expenses.................... 9 Periodic Charges............................................................ 9 Portfolio Operating Expenses................................................ 10 MetLife........................................................................ 15 The Fixed Account........................................................... 15 Separate Account UL......................................................... 15 The Funds................................................................... 16 The Portfolio Share Classes that We Offer................................... 23 Substitution of Portfolios.................................................. 23 Purchase and Redemption of Portfolio Shares by the Separate Account......... 23 Voting Rights............................................................... 23 Issuing a Policy............................................................... 23 Payment and Allocation of Premiums............................................. 24 Paying Premiums............................................................. 24 Maximum and Minimum Premium Payments........................................ 25 Allocating Net Premium...................................................... 25 Insurance Proceeds............................................................. 25 Death Benefit Options....................................................... 26 Minimum Death Benefit....................................................... 27 Specified Face Amount....................................................... 27 Income Plans................................................................ 28 Cash Value, Transfers and Withdrawals.......................................... 29 Cash Value.................................................................. 29 Surrender and Withdrawal Privileges......................................... 32 Benefit at Final Date....................................................... 33 Loan Privileges................................................................ 33 Optional Rider Benefits........................................................ 34 Term Benefit................................................................ 35 Charges and Deductions......................................................... 35 Important Information Applicable to all Policy Charges and Deductions....... 35 Charges Deducted from Premiums.............................................. 36 Charges Included in the Monthly Deduction................................... 37 Charges for Certain Optional Rider Benefits................................. 38 Variations In Charges....................................................... 38 Portfolio Company Charges................................................... 38 Other Charges............................................................... 38 Policy Termination and Reinstatement........................................... 38 Federal Tax Matters............................................................ 39 Rights We Reserve.............................................................. 43 Other Policy Provisions........................................................ 43 Sales of Policies.............................................................. 45 Legal Proceedings.............................................................. 47 Restrictions on Financial Transactions......................................... 48 Financial Statements........................................................... 48 Appendix A..................................................................... 49
4 CONTACTING US 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 frequent transfers (see "Cash Value, Transfers and Withdrawals"). If elected by your employer, 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. 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 adviser. 5 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 CERTIFICATE 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 certain 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. 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, is not entirely clear in certain circumstances, for example, with respect to Policies issued on a substandard risk basis. 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. 6 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 prior to termination of your Certificate, whether by lapse, surrender or exchange. 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 adviser. 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 Charge1,2 On payment of premium Policy Years 1 to 10, up Policy Years 1 to 10, up to 6.5% of annual target to 9% of annual target premium paid premium paid Policy Years 11 and Policy Years 11 and later, up to 3% of annual later, same as Current target premium paid Amount for those years 0% on premiums paid in 0% on premiums paid in excess of annual target excess of annual target premium in all Policy premium in all Policy years years Charge for average On payment of premium 2.25% of each premium Same as Current expected state and local payment Amount taxes attributable to premiums
7
WHEN CHARGE CURRENT AMOUNT MAXIMUM AMOUNT CHARGE IS DEDUCTED DEDUCTED WE CAN DEDUCT Charge for expected On payment of premium 1.2% of each premium Same as Current federal taxes payment Amount attributable to premiums Administrative Charge1 On payment of premium Policy Years 1 to 10, up Up to 1.05% of annual to 0.55% of annual target premium paid in target premium paid all Policy years Policy Years 11 and 0.05% of premiums paid later, up to 1.05% of in excess of annual annual target premium target premium in all paid Policy years 0.05% on premiums paid in excess of annual target premium in all Policy years Transfer Fee On transfer of cash Not currently charged $25 per transfer, and value among investment none for transfers under divisions or to or from Systematic Investment the Fixed Account Strategies Interim Term Insurance On payment of first Highest: $13.93 per Highest: $24.65 per Benefit3 (applies only if premium if rider is $1,000 of term insurance $1,000 of term insurance you elected rider at elected amount amount issue) Highest and Lowest Lowest: $0.03 per $1,000 Lowest: $0.04 per $1,000 Charge Among All of term insurance of term insurance Possible Insureds amount amount Charge for male, issue $0.152 per $1,000 of $0.271 per $1,000 of age 47, nonsmoker, term insurance amount term insurance amount Guaranteed Issue underwriting class Enhanced Cash On premium payments 0.25% of each premium Same as Current Surrender Value Rider4 made during the first payment made during Amount five Policy years the first five Policy years Underwriting Charge On face amount increase Not currently charged Up to $3 per $1,000 of (applies only if you increase request an increase in your specified face amount)
1See "Charges and Deductions--Annual Target Premium" for a detailed discussion of the determination of the annual target premium. 2For 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. 3This 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. 4For 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 8 (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. 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 $1,000 of term insurance $1,000 of term insurance policy 1, 2 Policy amount amount Highest and Lowest Lowest: $0.02 per $1,000 Lowest: $0.04 per $1,000 Charge Among All of term insurance of term insurance Possible Insureds amount amount Charge for male, issue $0.152 per $1,000 of $0.271 per $1,000 of age 47, nonsmoker, term insurance amount term 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 $1,000 of term insurance $1,000 of term insurance term benefit 1, 2 Policy amount amount Highest and Lowest Lowest: $0.02 per $1,000 Lowest: $0.04 per $1,000 Charge Among All of term insurance of term insurance Possible Insureds amount amount Charge for male, issue $0.114 per $1,000 of $0.271 per $1,000 of age 47, nonsmoker, term insurance amount term insurance amount Guaranteed Issue underwriting class
9
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 0.40% of the cash value to 0.90% Policy 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
1The 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. 2This 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. 3We are waiving the following amounts of the Mortality and Expense Risk Charge: 0.08% for the investment division investing in the WMC Large Cap Research 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), in excess of 1.15% for the investment division investing in the MetLife Small Cap Value Portfolio (Class B), and in excess of 0.62% for the investment division investing in the Oppenheimer Global Equity Portfolio (Class A). 4We 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, 2014. MINIMUM AND MAXIMUM TOTAL ANNUAL PORTFOLIO OPERATING EXPENSES
MINIMUM MAXIMUM TOTAL ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) 0.27% 1.70%
10 PORTFOLIO FEES AND EXPENSES (as a percentage of average daily net assets)
ACQUIRED DISTRIBUTION FUND TOTAL FEE WAIVER NET TOTAL AND/OR FEES ANNUAL AND/OR ANNUAL MANAGEMENT SERVICE OTHER AND OPERATING EXPENSE OPERATING PORTFOLIO FEE (12B-1) FEES EXPENSES EXPENSES EXPENSES REIMBURSEMENT EXPENSES AB VARIABLE PRODUCTS SERIES FUND, INC. AB VPS Global Thematic Growth Portfolio -- Class B 0.75% 0.25% 0.26% -- 1.26% -- 1.26% AB VPS Intermediate Bond Portfolio -- Class B 0.45% 0.25% 0.43% -- 1.13% -- 1.13% AB VPS International Value Portfolio -- Class A 0.75% -- 0.10% -- 0.85% -- 0.85% AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS) Invesco V.I. Comstock Fund -- Series II 0.56% 0.25% 0.27% -- 1.08% 0.05% 1.03% Invesco V.I. Government Securities Fund -- Series II 0.47% 0.25% 0.31% -- 1.03% -- 1.03% Invesco V.I. International Growth Fund -- Series I 0.71% -- 0.31% 0.01% 1.03% 0.01% 1.02% AMERICAN CENTURY VARIABLE PORTFOLIOS, INC. -- CLASS I VP Capital Appreciation Fund 1.00% -- -- -- 1.00% -- 1.00% AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 2 American Funds Growth Fund 0.33% 0.25% 0.02% -- 0.60% -- 0.60% American Funds High-Income Bond Fund 0.46% 0.25% 0.02% -- 0.73% -- 0.73% American Funds International Fund 0.50% 0.25% 0.04% -- 0.79% -- 0.79% American Funds U.S. Government/AAA-Rated Securities Fund 0.33% 0.25% 0.02% -- 0.60% -- 0.60% DREYFUS VARIABLE INVESTMENT FUND -- SERVICE SHARES International Value Portfolio 1.00% 0.25% 0.29% -- 1.54% -- 1.54% FIDELITY(R) VARIABLE INSURANCE PRODUCTS Asset Manager: Growth Portfolio -- Service Class 0.55% 0.10% 0.16% -- 0.81% -- 0.81% Contrafund(R) Portfolio -- Service Class 0.55% 0.10% 0.08% -- 0.73% -- 0.73% Equity-Income Portfolio -- Service Class 0.45% 0.10% 0.09% 0.06% 0.70% -- 0.70% Freedom 2010 Portfolio -- Initial Class -- -- -- 0.55% 0.55% -- 0.55% Freedom 2015 Portfolio -- Initial Class -- -- -- 0.58% 0.58% -- 0.58% 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 -- -- -- 0.68% 0.68% -- 0.68% High Income Portfolio -- Initial Class 0.56% -- 0.12% -- 0.68% -- 0.68% Investment Grade Bond Portfolio -- Service Class 0.31% 0.10% 0.11% -- 0.52% -- 0.52% Mid Cap Portfolio -- Service Class 2 0.55% 0.25% 0.08% -- 0.88% -- 0.88%
11
ACQUIRED DISTRIBUTION FUND TOTAL FEE WAIVER NET TOTAL AND/OR FEES ANNUAL AND/OR ANNUAL MANAGEMENT SERVICE OTHER AND OPERATING EXPENSE OPERATING PORTFOLIO FEE (12B-1) FEES EXPENSES EXPENSES EXPENSES REIMBURSEMENT EXPENSES FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST Franklin Mutual Global Discovery VIP Fund -- Class 2 0.94% 0.25% 0.06% -- 1.25% -- 1.25% Templeton Foreign VIP Fund -- Class 1 0.74% -- 0.03% -- 0.77% -- 0.77% Templeton Global Bond VIP Fund -- Class 1 0.46% -- 0.05% -- 0.51% -- 0.51% GOLDMAN SACHS VARIABLE INSURANCE TRUST -- INSTITUTIONAL SHARES Goldman Sachs Small Cap Equity Insights Fund 0.75% -- 0.29% -- 1.04% 0.21% 0.83% JANUS ASPEN SERIES Balanced Portfolio -- Service Shares 0.55% 0.25% 0.04% -- 0.84% -- 0.84% Enterprise Portfolio -- Service Shares 0.64% 0.25% 0.04% -- 0.93% -- 0.93% Forty Portfolio -- Service Shares 0.51% 0.25% 0.06% -- 0.82% -- 0.82% Janus Portfolio -- Institutional Shares 0.50% -- 0.05% -- 0.55% -- 0.55% Overseas Portfolio -- Service Shares 0.46% 0.25% 0.07% -- 0.78% -- 0.78% MET INVESTORS SERIES TRUST Clarion Global Real Estate Portfolio -- Class A 0.59% -- 0.05% -- 0.64% -- 0.64% ClearBridge Aggressive Growth Portfolio -- Class A 0.55% -- 0.02% -- 0.57% 0.01% 0.56% Harris Oakmark International Portfolio -- Class A 0.77% -- 0.06% -- 0.83% 0.02% 0.81% Invesco Mid Cap Value Portfolio -- Class A 0.64% -- 0.05% 0.04% 0.73% 0.02% 0.71% Invesco Small Cap Growth Portfolio -- Class B 0.84% 0.25% 0.03% -- 1.12% 0.01% 1.11% JPMorgan Small Cap Value Portfolio -- Class A 0.77% -- 0.05% 0.02% 0.84% 0.09% 0.75% Lord Abbett Bond Debenture Portfolio -- Class A 0.51% -- 0.04% -- 0.55% 0.01% 0.54% MetLife Asset Allocation 100 Portfolio -- Class B 0.07% 0.25% 0.01% 0.68% 1.01% -- 1.01% MetLife Small Cap Value Portfolio -- Class B 0.74% 0.25% 0.03% -- 1.02% 0.01% 1.01% MFS(R) Emerging Markets Equity Portfolio -- Class B 0.86% 0.25% 0.15% -- 1.26% 0.02% 1.24% MFS(R) Research International Portfolio -- Class B 0.69% 0.25% 0.07% -- 1.01% 0.06% 0.95% Morgan Stanley Mid Cap Growth Portfolio -- Class A 0.64% -- 0.05% -- 0.69% 0.01% 0.68% Oppenheimer Global Equity Portfolio -- Class A 0.66% -- 0.08% -- 0.74% 0.06% 0.68% PIMCO Inflation Protected Bond Portfolio -- Class A 0.47% -- 0.09% -- 0.56% 0.01% 0.55% PIMCO Total Return Portfolio -- Class A 0.48% -- 0.03% -- 0.51% 0.04% 0.47% Pioneer Fund Portfolio -- Class A 0.67% -- 0.05% -- 0.72% 0.05% 0.67%
12
ACQUIRED DISTRIBUTION FUND TOTAL FEE WAIVER NET TOTAL AND/OR FEES ANNUAL AND/OR ANNUAL MANAGEMENT SERVICE OTHER AND OPERATING EXPENSE OPERATING PORTFOLIO FEE (12B-1) FEES EXPENSES EXPENSES EXPENSES REIMBURSEMENT EXPENSES T. Rowe Price Large Cap Value Portfolio -- Class A 0.57% -- 0.02% -- 0.59% -- 0.59% WMC Large Cap Research Portfolio -- Class A 0.57% -- 0.03% -- 0.60% 0.05% 0.55% METROPOLITAN SERIES FUND Baillie Gifford International Stock Portfolio -- Class A 0.79% -- 0.08% -- 0.87% 0.12% 0.75% Barclays Aggregate Bond Index Portfolio -- Class A 0.25% -- 0.03% -- 0.28% 0.00% 0.28% BlackRock Bond Income Portfolio -- Class A 0.32% -- 0.03% -- 0.35% 0.00% 0.35% BlackRock Capital Appreciation Portfolio -- Class A 0.69% -- 0.02% -- 0.71% 0.06% 0.65% BlackRock Money Market Portfolio -- Class A 0.34% -- 0.03% -- 0.37% 0.02% 0.35% Frontier Mid Cap Growth Portfolio -- Class A 0.71% -- 0.05% -- 0.76% 0.01% 0.75% Jennison Growth Portfolio -- Class A 0.59% -- 0.03% -- 0.62% 0.08% 0.54% Loomis Sayles Small Cap Core Portfolio -- Class A 0.90% -- 0.06% 0.07% 1.03% 0.08% 0.95% Met/Artisan Mid Cap Value Portfolio -- Class B 0.81% 0.25% 0.03% -- 1.09% -- 1.09% MetLife Asset Allocation 20 Portfolio -- Class B 0.09% 0.25% 0.03% 0.52% 0.89% 0.02% 0.87% MetLife Asset Allocation 40 Portfolio -- Class B 0.06% 0.25% -- 0.56% 0.87% -- 0.87% MetLife Asset Allocation 60 Portfolio -- Class B 0.05% 0.25% -- 0.60% 0.90% -- 0.90% MetLife Asset Allocation 80 Portfolio -- Class B 0.05% 0.25% 0.01% 0.65% 0.96% -- 0.96% MetLife Mid Cap Stock Index Portfolio -- Class A 0.25% -- 0.05% 0.01% 0.31% 0.00% 0.31% MetLife Stock Index Portfolio -- Class A 0.25% -- 0.02% -- 0.27% 0.01% 0.26% MFS(R) Total Return Portfolio -- Class B 0.55% 0.25% 0.05% -- 0.85% -- 0.85% MFS(R) Value Portfolio -- Class A 0.70% -- 0.02% -- 0.72% 0.14% 0.58% MSCI EAFE(R) Index Portfolio -- Class A 0.30% -- 0.10% 0.01% 0.41% 0.00% 0.41% Neuberger Berman Genesis Portfolio -- Class A 0.80% -- 0.03% -- 0.83% 0.00% 0.83% Russell 2000(R) Index Portfolio -- Class A 0.25% -- 0.07% 0.05% 0.37% 0.01% 0.36% T. Rowe Price Large Cap Growth Portfolio -- Class A 0.60% -- 0.03% -- 0.63% 0.02% 0.61% T. Rowe Price Small Cap Growth Portfolio -- Class A 0.47% -- 0.04% -- 0.51% -- 0.51% WMC Balanced Portfolio -- Class A 0.46% -- 0.07% -- 0.53% 0.00% 0.53% WMC Core Equity Opportunities Portfolio -- Class A 0.70% -- 0.03% -- 0.73% 0.11% 0.62%
13
ACQUIRED DISTRIBUTION FUND TOTAL FEE WAIVER NET TOTAL AND/OR FEES ANNUAL AND/OR ANNUAL MANAGEMENT SERVICE OTHER AND OPERATING EXPENSE OPERATING PORTFOLIO FEE (12B-1) FEES EXPENSES EXPENSES EXPENSES REIMBURSEMENT EXPENSES MFS(R) VARIABLE INSURANCE TRUST -- SERVICE CLASS MFS(R) Global Equity Series 1.00% 0.25% 0.28% -- 1.53% 0.28% 1.25% MFS(R) New Discovery Series 0.90% 0.25% 0.06% -- 1.21% 0.02% 1.19% MFS(R) VARIABLE INSURANCE TRUST II -- SERVICE CLASS MFS(R) High Yield Portfolio 0.70% 0.25% 0.07% -- 1.02% 0.05% 0.97% OPPENHEIMER VARIABLE ACCOUNT FUNDS -- NON-SERVICE SHARES Oppenheimer Main Street Small Cap Fund(R)/VA 0.67% -- 0.13% -- 0.80% -- 0.80% PIMCO VARIABLE INSURANCE TRUST -- ADMINISTRATIVE CLASS PIMCO All Asset Portfolio 0.43% 0.15% -- 0.80% 1.38% 0.15% 1.23% PIMCO CommodityRealReturn(R) Strategy Portfolio 0.74% 0.15% 0.04% 0.13% 1.06% 0.13% 0.93% PIMCO Long-Term U.S. Government Portfolio 0.48% 0.15% 0.02% -- 0.65% -- 0.65% PIMCO Low Duration Portfolio 0.50% 0.15% -- -- 0.65% -- 0.65% PIONEER VARIABLE CONTRACTS TRUST -- CLASS I Pioneer Mid Cap Value VCT Portfolio 0.65% -- 0.06% -- 0.71% -- 0.71% PUTNAM VARIABLE TRUST -- CLASS IB Putnam VT International Value Fund 0.69% 0.25% 0.19% -- 1.13% -- 1.13% ROYCE CAPITAL FUND -- INVESTMENT CLASS Royce Micro-Cap Portfolio 1.25% -- 0.05% 0.01% 1.31% -- 1.31% Royce Small-Cap Portfolio 1.00% -- 0.05% -- 1.05% -- 1.05% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. -- CLASS I Emerging Markets Debt Portfolio 0.75% -- 0.33% -- 1.08% -- 1.08% Emerging Markets Equity Portfolio 1.25% -- 0.45% -- 1.70% 0.28% 1.42% TRUST FOR ADVISED PORTFOLIOS 1919 Variable Socially Responsive Balanced Fund 0.65% -- 0.29% -- 0.94% 0.05% 0.89% WELLS FARGO VARIABLE TRUST -- CLASS 2 VT Total Return Bond Fund 0.40% 0.25% 0.27% -- 0.92% 0.02% 0.90%
The information shown in the table above was provided by the Portfolios and we have not independently verified that information. Net Total Annual Operating Expenses shown in the table reflect any current fee waiver or expense reimbursement arrangement that will remain in effect for a period of at least one year from the date of the Portfolio's 2015 prospectus. "0.00%" in the Fee Waiver and/or Expense Reimbursement column indicates that there is such an arrangement in effect for the Portfolio, but that the expenses of the Portfolio are below the level that would trigger the waiver or reimbursement. Fee waiver and expense reimbursement arrangements with a duration of less than one year, or arrangements that may be terminated without the consent of the Portfolio's board of directors or trustees, are not shown. 14 Certain Portfolios that have "Acquired Fund Fees and Expenses" are "funds of funds." A fund of funds invests substantially all of its assets in other underlying funds. Because the Portfolio invests in other funds, it will bear its pro rata portion of the operating expenses of those underlying funds, including the management fee. 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." 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. The investment adviser to certain of the Portfolios offered with the Policy or with other variable life insurance policies issued through the Separate Account may be regulated as Commodity Pool Operators. While it does not concede that the Separate Account is a commodity pool, MetLife has claimed an exclusion from the definition of the term "commodity pool operator" under the Commodities Exchange Act ("CEA"), and is not subject to registration or regulation as a pool operator under the CEA. 15 THE INVESTMENT DIVISIONS. 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. In some cases, your employer retains the right to allocate the portion of any net premium it pays (rather than any premium you pay). If so, the Certificate will state this. Amounts you allocate to each investment division receive the investment experience of the investment division, and you bear this investment risk. THE FUNDS 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 (other than our affiliate MetLife Advisers, LLC) 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 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. 16 SELECTION OF PORTFOLIOS. We select the Portfolios offered through the Certificate 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 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: o The allocation of net premiums to the Separate Account. o 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). o Policy loans and loan repayments allocated to the Separate Account. o Transfers to and among investment divisions. o Withdrawals and surrenders taken from the Separate Account. The adviser, any sub-adviser and investment objective of each Portfolio are as follows:
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER AB VARIABLE PRODUCTS SERIES FUND, INC. AB VPS Global Thematic Growth Portfolio -- Seeks long-term growth of capital. AllianceBernstein L.P. Class B AB VPS Intermediate Bond Portfolio -- Class B Seeks to generate income and price AllianceBernstein L.P. appreciation without assuming what the Adviser considers undue risk. AB VPS International Value Portfolio -- Class A Seeks long-term growth of capital. AllianceBernstein L.P. AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS) Invesco V.I. Comstock Fund -- Series II Seeks capital growth and income Invesco Advisers, Inc. through investments in equity securities, including common stocks, preferred stocks and securities convertible into common and preferred stocks. Invesco V.I. Government Securities Fund -- Seeks total return, comprised of Invesco Advisers, Inc. Series II current income and capital appreciation. Invesco V.I. International Growth Fund -- Series I Seeks long-term growth of capital. Invesco Advisers, Inc.
17
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER AMERICAN CENTURY VARIABLE PORTFOLIOS, INC. -- CLASS I VP Capital Appreciation Fund Seeks capital growth. American Century Investment Management, Inc. AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 2 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 Management Its secondary investment objective is Company capital appreciation. American Funds International Fund Seeks long-term growth of capital. Capital Research and Management Company American Funds U.S. Government/AAA-Rated Seeks a high level of current income Capital Research and Management Securities Fund consistent with preservation of Company capital. DREYFUS VARIABLE INVESTMENT FUND -- SERVICE SHARES International Value Portfolio Seeks long-term capital growth. The Dreyfus Corporation FIDELITY(R) VARIABLE INSURANCE PRODUCTS Asset Manager: Growth Portfolio -- Service Class Seeks to maximize total return by Fidelity Management & Research allocating its assets among stocks, Company bonds, short-term instruments, and Subadvisers: FMR Co., Inc. ; Fidelity other investments. Investments Money Management, Inc. Contrafund(R) Portfolio -- Service Class Seeks long-term capital appreciation. Fidelity Management & Research Company Subadviser: FMR Co., Inc. Equity-Income Portfolio -- Service Class Seeks reasonable income. The fund Fidelity Management & Research will also consider the potential for 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 & Research while also considering growth of Company capital. Subadviser: FMR Co., Inc.
18
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER Investment Grade Bond Portfolio -- Service Class Seeks as high a level of current Fidelity Management & Research income as is consistent with the 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 Franklin Mutual Global Discovery VIP Fund -- Seeks capital appreciation. Franklin Mutual Advisers, LLC Class 2 Templeton Foreign VIP Fund -- Class 1 Seeks long-term capital growth. Templeton Investment Counsel, LLC Templeton Global Bond VIP Fund -- Class 1 Seeks high current income, Franklin Advisers, Inc. consistent with preservation of capital, with capital appreciation as a secondary consideration. GOLDMAN SACHS VARIABLE INSURANCE TRUST -- INSTITUTIONAL SHARES Goldman Sachs Small Cap Equity Insights Fund Seeks long-term growth of capital. Goldman Sachs Asset Management, L.P. JANUS ASPEN SERIES Balanced Portfolio -- Service Shares Seeks long-term capital growth, Janus Capital Management LLC consistent with preservation of 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 MET INVESTORS SERIES TRUST Clarion Global Real Estate Portfolio -- Class A Seeks total return through MetLife Advisers, LLC investment in real estate securities, Subadviser: CBRE Clarion emphasizing both capital appreciation Securities LLC and current income. ClearBridge Aggressive Growth Portfolio -- Seeks capital appreciation. MetLife Advisers, LLC Class A Subadviser: ClearBridge Investments, LLC Harris Oakmark International Portfolio -- Class A Seeks long-term capital appreciation. MetLife Advisers, LLC Subadviser: Harris Associates L.P. Invesco Mid Cap Value Portfolio -- Class A Seeks high total return by investing MetLife Advisers, LLC in equity securities of mid-sized Subadviser: Invesco Advisers, Inc. companies. Invesco Small Cap Growth Portfolio -- Class B Seeks long-term growth of capital. MetLife Advisers, LLC Subadviser: Invesco Advisers, Inc. JPMorgan Small Cap Value Portfolio -- Class A Seeks long-term capital growth. MetLife Advisers, LLC Subadviser: J.P. Morgan Investment Management Inc. Lord Abbett Bond Debenture Portfolio -- Class A Seeks high current income and the MetLife Advisers, LLC opportunity for capital appreciation Subadviser: Lord, Abbett & Co. LLC to produce a high total return. MetLife Asset Allocation 100 Portfolio -- Class B Seeks growth of capital. MetLife Advisers, LLC MetLife Small Cap Value Portfolio -- Class B Seeks long-term capital appreciation. MetLife Advisers, LLC Subadvisers: Delaware Investments Fund Advisers; Wells Capital Management Incorporated
19
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER MFS(R) Emerging Markets Equity Portfolio -- Seeks capital appreciation. MetLife Advisers, LLC Class B Subadviser: Massachusetts Financial Services Company MFS(R) Research International Portfolio -- Class B Seeks capital appreciation. MetLife Advisers, LLC Subadviser: Massachusetts Financial Services Company Morgan Stanley Mid Cap Growth Portfolio -- Seeks capital appreciation. MetLife Advisers, LLC Class A Subadviser: Morgan Stanley Investment Management Inc. Oppenheimer Global Equity Portfolio -- Class A Seeks capital appreciation. MetLife Advisers, LLC Subadviser: OppenheimerFunds, Inc. PIMCO Inflation Protected Bond Portfolio -- Seeks maximum real return, MetLife Advisers, LLC Class A consistent with preservation of Subadviser: Pacific Investment capital and prudent investment Management Company LLC management. PIMCO Total Return Portfolio -- Class A Seeks maximum total return, MetLife Advisers, LLC consistent with the preservation of Subadviser: Pacific Investment capital and prudent investment Management Company LLC management. Pioneer Fund Portfolio -- Class A Seeks reasonable income and capital MetLife Advisers, LLC growth. Subadviser: Pioneer Investment Management, Inc. T. Rowe Price Large Cap Value Portfolio -- Seeks long-term capital appreciation MetLife Advisers, LLC Class A by investing in common stocks Subadviser: T. Rowe Price believed to be undervalued. Income is Associates, Inc. a secondary objective. WMC Large Cap Research Portfolio -- Class A Seeks long-term capital appreciation. MetLife Advisers, LLC Subadviser: Wellington Management Company LLP METROPOLITAN SERIES FUND Baillie Gifford International Stock Portfolio -- Seeks long-term growth of capital. MetLife Advisers, LLC Class A Subadviser: Baillie Gifford Overseas Limited Barclays Aggregate Bond Index Portfolio -- Seeks to track the performance of the MetLife Advisers, LLC Class A Barclays U.S. Aggregate Bond Subadviser: MetLife Investment Index. Management, LLC BlackRock Bond Income Portfolio -- Class A Seeks a competitive total return MetLife Advisers, LLC primarily from investing in Subadviser: BlackRock Advisors, fixed-income securities. LLC BlackRock Capital Appreciation Portfolio -- Seeks long-term growth of capital. MetLife Advisers, LLC Class A Subadviser: BlackRock Advisors, LLC BlackRock Money Market Portfolio -- Class A Seeks a high level of current income MetLife Advisers, LLC consistent with preservation of Subadviser: BlackRock Advisors, capital. LLC Frontier Mid Cap Growth Portfolio -- Class A Seeks maximum capital appreciation. MetLife Advisers, LLC Subadviser: Frontier Capital Management Company, LLC Jennison Growth Portfolio -- Class A Seeks long-term growth of capital. MetLife Advisers, LLC Subadviser: Jennison Associates LLC Loomis Sayles Small Cap Core Portfolio -- Class A Seeks long-term capital growth from MetLife Advisers, LLC investments in common stocks or Subadviser: Loomis, Sayles & other equity securities. Company, L.P. Met/Artisan Mid Cap Value Portfolio -- Class B Seeks long-term capital growth. MetLife Advisers, LLC Subadviser: Artisan Partners Limited Partnership
20
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER MetLife Asset Allocation 20 Portfolio -- Class B Seeks a high level of current income, MetLife Advisers, LLC with growth of capital as a secondary objective. MetLife Asset Allocation 40 Portfolio -- Class B Seeks high total return in the form of MetLife Advisers, LLC income and growth of capital, with a greater emphasis on income. MetLife Asset Allocation 60 Portfolio -- Class B Seeks a balance between a high level MetLife Advisers, LLC of current income and growth of capital, with a greater emphasis on growth of capital. MetLife Asset Allocation 80 Portfolio -- Class B Seeks growth of capital. MetLife Advisers, LLC MetLife Mid Cap Stock Index Portfolio -- Class A Seeks to track the performance of the MetLife Advisers, LLC Standard & Poor's MidCap 400(R) Subadviser: MetLife Investment Composite Stock Price Index. Management, LLC MetLife Stock Index Portfolio -- Class A Seeks to track the performance of the MetLife Advisers, LLC Standard & Poor's 500(R) Composite Subadviser: MetLife Investment Stock Price Index. Management, LLC MFS(R) Total Return Portfolio -- Class B Seeks a favorable total return MetLife Advisers, LLC through investment in a diversified Subadviser: Massachusetts Financial portfolio. 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 Management, LLC Neuberger Berman Genesis Portfolio -- Class A Seeks high total return, consisting MetLife Advisers, LLC principally of capital appreciation. Subadviser: Neuberger Berman Management LLC Russell 2000(R) Index Portfolio -- Class A Seeks to track the performance of the MetLife Advisers, LLC Russell 2000(R) Index. Subadviser: MetLife Investment Management, LLC T. Rowe Price Large Cap Growth Portfolio -- Seeks long-term growth of capital. MetLife Advisers, LLC Class A Subadviser: T. Rowe Price Associates, Inc. T. Rowe Price Small Cap Growth Portfolio -- Seeks long-term capital growth. MetLife Advisers, LLC Class A Subadviser: T. Rowe Price Associates, Inc. WMC Balanced Portfolio -- Class A Seeks long-term capital appreciation MetLife Advisers, LLC with some current income. Subadviser: Wellington Management Company LLP WMC Core Equity Opportunities Portfolio -- Seeks to provide a growing stream of MetLife Advisers, LLC Class A income over time and, secondarily, Subadviser: Wellington Management long-term capital appreciation and Company LLP current income. MFS(R) VARIABLE INSURANCE TRUST -- SERVICE CLASS MFS(R) Global Equity Series Seeks capital appreciation. Massachusetts Financial Services Company MFS(R) New Discovery Series Seeks capital appreciation. Massachusetts Financial Services Company MFS(R) VARIABLE INSURANCE TRUST II -- SERVICE CLASS MFS(R) High Yield Portfolio Seeks total return with an emphasis Massachusetts Financial Services on high current income, but also Company considering capital appreciation.
21
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER OPPENHEIMER VARIABLE ACCOUNT FUNDS -- NON-SERVICE SHARES Oppenheimer Main Street Small Cap Fund(R)/VA Seeks capital appreciation. OFI Global Asset Management, Inc. Subadviser: OppenheimerFunds, Inc. PIMCO VARIABLE INSURANCE TRUST -- ADMINISTRATIVE CLASS PIMCO All Asset Portfolio Seeks maximum real return Pacific Investment Management consistent with preservation of real Company LLC capital and prudent investment Subadviser: Research Affiliates, LLC management. PIMCO CommodityRealReturn(R) Strategy Seeks maximum real return, Pacific Investment Management Portfolio consistent with prudent investment Company LLC management. PIMCO Long-Term U.S. Government Portfolio Seeks maximum total return, Pacific Investment Management consistent with preservation of Company LLC capital and prudent investment management. PIMCO Low Duration Portfolio Seeks maximum total return, Pacific Investment Management consistent with preservation of Company LLC capital and prudent investment management. PIONEER VARIABLE CONTRACTS TRUST -- CLASS I Pioneer Mid Cap Value VCT Portfolio Seeks capital appreciation by Pioneer Investment Management, investing in a diversified portfolio of Inc. securities consisting primarily of common stocks. PUTNAM VARIABLE TRUST -- CLASS IB Putnam VT International Value Fund Seeks capital growth. Current Putnam Investment Management, income is a secondary objective. 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 Investment primarily in fixed income securities of Management Inc. government and government-related issuers and, to a lesser extent, of corporate issuers in emerging market countries. Emerging Markets Equity Portfolio Seeks long-term capital appreciation Morgan Stanley Investment by investing primarily in Management Inc. growth-oriented equity securities of Subadvisers: Morgan Stanley issuers in emerging market Investment Management Company; countries. Morgan Stanley Investment Management Limited TRUST FOR ADVISED PORTFOLIOS 1919 Variable Socially Responsive Balanced Fund Seeks capital appreciation and 1919 Investment Counsel, LLC retention of net investment income. WELLS FARGO VARIABLE TRUST -- CLASS 2 VT Total Return Bond Fund Seeks total return, consisting of Wells Fargo Funds Management, income and capital appreciation. LLC Subadviser: Wells Capital Management Incorporated
22 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. PURCHASE AND REDEMPTION OF PORTFOLIO SHARES BY THE SEPARATE ACCOUNT As of the end of each Valuation Period (see "Valuation Period" description below in "Other Certificate 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: o The allocation of net premiums to the Separate Account. o 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). o Certificate loans and loan repayments allocated to the Separate Account. o Transfers to and among investment divisions. o Withdrawals and surrenders taken from the Separate Account. VOTING RIGHTS The Funds have shareholder meetings from time to time to, for example, elect directors and approve some changes in investment management arrangements. You can give us voting instructions on shares of each portfolio of a fund that are attributed to your Policy. 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. 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. 23 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 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. 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, P.O. Box 7369, Philadelphia, PA 19101-7369. Premium payments sent by express mail or courier service should be addressed to: MetLife, Lockbox #7369, Wells Fargo Bank Y1372-045, 401 Market Street, 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. 24 MAXIMUM AND MINIMUM PREMIUM PAYMENTS o The first premium may not be less than the planned premium unless agreed to by us. o After the first Policy year, your voluntary planned periodic payments must be at least $100, whether on an annual or semi-annual basis. o Unscheduled premium payments must be at least $100 each. We may change this minimum amount on 90 days notice to you. o 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.") o 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. o 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. ALLOCATING NET PREMIUM 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. 25 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. 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: o The death benefit under the death benefit option or minimum death benefit that is in effect on the date of death; plus o Any additional insurance proceeds provided by rider; minus o Any unpaid Certificate loans and accrued interest thereon, and any due and unpaid charges accruing during a grace period. Every state has unclaimed property laws which generally declare life insurance policies to be abandoned after a period of inactivity of three to five years from the date any death benefit is due and payable. For example, if the payment of a death benefit has been triggered, and after a thorough search, we are still unable to locate the beneficiary of the death benefit, the death benefit will be paid to the abandoned property division or unclaimed property office of the state in which the beneficiary or the policy owner last resided, as shown on our books and records. ("Escheatment" is the formal, legal name for this process.) However, the state is obligated to pay the death benefit (without interest) if your beneficiary steps forward to claim it with the proper documentation. To prevent your Policy's death benefit from being paid to the state's abandoned or unclaimed property office, it is important that you update your beneficiary designation--including complete names and complete address--if and as they change. You should contact our Designated Office in order to make a change to your beneficiary designation. (See "Contacting Us.") DEATH BENEFIT OPTIONS You can choose among three options. You select which option you want in the Policy application. The three options are: o Option A: The death benefit is a level amount and equals the specified face amount of the Policy. o Option B: The death benefit varies and equals the specified face amount of the Policy plus the cash value on the date of death. o 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. You can change your death benefit option after the first Policy year, provided that: o Your cash surrender value after the change would be enough to pay at least two monthly deductions. o The specified face amount continues to be no less than the minimum we allow after a decrease. o The total premiums you have paid do not exceed the then current maximum premium limitations permitted under Internal Revenue Service rules. o 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. 26 Before you change your death benefit option you should consider the following: o 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. o 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: o 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. o 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. o 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 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 27 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." 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: o 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. o 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. o 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.") o In some circumstances, the Policy could become a modified endowment contract. o 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 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: o Interest income o Installment Income for a Stated Period o Installment Income of a Stated Amount o Single Life Income--Guaranteed Payment Period o Single Life Income--Guaranteed Return o Joint and Survivor Life Income Before you choose an income plan you should consider: o 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. 28 o 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. o 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 Your Policy's CASH VALUE equals: o The Fixed Account cash value, plus o The -Policy Loan Account cash value, plus o 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: o The cash value in the investment division at the beginning of the Valuation Period; plus o All net premiums, loan repayments and cash value transfers into the investment division during the Valuation Period; minus o All partial cash withdrawals, loans and cash value transfers out of the investment division during the Valuation Period; minus o The portion of any charges and deductions allocated to the cash value in the investment division during the Valuation Period; plus o 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 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.") RESTRICTIONS OF FREQUENT TRANSFERS. 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"). Frequent transfers involving arbitrage trading 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). 29 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, MetLife Small Cap Value Portfolio, MFS(R) Emerging Markets Equity Portfolio, MFS(R) Research International Portfolio, -Invesco V.I. International Growth Fund, AB VPS Global Thematic Growth Portfolio, AB VPS International Value Portfolio, American Funds High-Income Bond Fund, American Funds International Fund, Dreyfus VIF International Value Portfolio, Fidelity(R) VIP High Income Portfolio, Franklin Mutual Global Discovery VIP Fund, Templeton Foreign VIP Fund, Templeton Global Bond VIP Fund, Janus Aspen Overseas Portfolio, MFS(R) Global Equity Series, MFS(R) High Yield Portfolio, MFS(R) New Discovery Series, -Goldman Sachs Small Cap Equity Insights Fund, Clarion Global Real Estate Portfolio, JPMorgan Small Cap Value Portfolio, Oppenheimer Main Street Small Cap Fund(R)/VA, 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 Portfolios (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. 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 frequent transfer 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 frequent transfer 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 frequent transfers. Currently, when we detect transfer activity in the Monitored Portfolios that exceeds our current transfer limits, we require future transfer requests to or from any Monitored Portfolios under that Policy to be submitted either (i) in writing with an original signature or (ii) by telephone prior to 10:00 a.m. A first occurrence will result in the imposition of this restriction for a six-month period; a second occurrence will result in the permanent imposition of the restriction. Transfers made under one of the systematic investment strategies described in the prospectus are not treated as transfers when we monitor the frequency of transfers. 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 30 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 frequent transfers in any Portfolios and there are no arrangements in place to permit any Policy owner to engage in frequent transfers; we apply our policies and procedures without exception, waiver, or special arrangement. The Portfolios may have adopted their own policies and procedures with respect to frequent transfers 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 frequent transfer 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 transfer 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 frequent transfer 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 frequent trading, the Portfolio may reject the entire omnibus order. 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 frequent transfers (even if an entire omnibus order is rejected due to the frequent transfers of a single Policy owner). You should read the Fund prospectuses for more details. RESTRICTIONS ON LARGE TRANSFERS. Large transfers may 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. We do not monitor for large transfers to or from Portfolios except where the manager of a particular underlying Portfolio has brought large transfer activity to our attention for investigation on a case-by-case basis. For example, some portfolio managers have asked us to monitor for "block transfers" where transfer requests have been submitted on behalf of multiple owners by a third party such as an investment adviser. When we detect such large trades, we may impose restrictions similar to those described above where future transfer requests from that third party must be submitted in writing with an original signature. A first occurrence will result in the imposition of this restriction for a six-month period; a second occurrence will result in the permanent imposition of the restriction. 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 SM. 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 Frontier Mid Cap 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. 31 Equalizer SM. Allows you to periodically equalize amounts in your Fixed Account and -either the MetLife Stock Index investment division - -or the Frontier Mid Cap 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 SM. 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: o A specific amount, until the cash value in the BlackRock Money Market investment division is exhausted. o A specific amount for a specific number of months. o 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 frequent transfer 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: o 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. o We will institute reasonable procedures to confirm that instructions we receive are genuine. Our procedures will include receiving from the caller your 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. o All telephone calls will be recorded. o You will receive a written confirmation of any transaction. o 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 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. 32 You can make partial withdrawals if: o the withdrawal would not result in the cash surrender value being less than sufficient to pay 2 monthly deductions; o the withdrawal is at least $250; o the withdrawal would not result in total premiums paid exceeding any then current maximum premium limitation determined by Internal Revenue Code rules; and o 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. Before surrendering your Policy or requesting a partial withdrawal, you should consider the following: o 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.") o Your Policy could become a modified endowment contract. o For partial withdrawals, your death benefit will decrease, generally by the amount of the withdrawal. o 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 You can borrow from us and use your Policy as security for the loan. The amount of each loan must be: o At least -$250. o 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: o 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. o 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 33 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. o 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: o The published monthly average for the calendar month ending two months before the start of such year; and o The guaranteed rate used to credit interest to the cash value allocated to the Fixed Account for the Policy, plus no more than 1%. 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: o Interest payments on loans are generally not deductible for tax purposes. o Under certain situations, Policy loans could be considered taxable distributions. o 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. o 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.) o 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. o 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: o Accelerated Death Benefit1 o Term Insurance Benefit2 o Interim Term Insurance Benefit o Enhanced Cash Surrender Value Rider3
1Payment under this rider may affect eligibility for benefits under state or federal law. 2This rider is discussed in more detail under "Term Benefit" below. 3This rider may be attached at issue if you request it, but not thereafter. 34 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. You should also consider: o That the addition of certain riders can restrict your ability to exercise certain rights under the Policy. o 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 rider generally will also terminate. o That there are tax consequences. You should consult with your tax adviser 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". CHARGES AND DEDUCTIONS IMPORTANT INFORMATION APPLICABLE TO ALL POLICY CHARGES AND DEDUCTIONS The charges discussed in the paragraphs that follow are all included in the Fee Tables on pages 7 -to 14 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 provide: o the death benefit, cash, and loan benefits under the Policy o investment options, including premium allocations o administration of elective options o the distribution of reports to Policy owners 35 Costs and expenses we incur: o costs associated with processing and underwriting applications, and with issuing and administering the Policy (including any riders) o overhead and other expenses for providing services and benefits o sales and marketing expenses o 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: o 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 o 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. 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. 36 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. 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. o 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 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. o 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. 37 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: o 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: o The nature of the group and its organizational framework o The method by which sales will be made to the individuals associated with the group o The facility by which premiums will be paid o The group's capabilities with respect to administrative tasks o Our anticipated persistency of the Policies o The size of the group and the number or years it has been in existence o 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. 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: o The cash surrender value is less than the monthly deduction; and o 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. 38 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: o A written application for reinstatement (the date we approve the application will be the effective date of the reinstatement). o Evidence of insurability that we find satisfactory. o An additional premium amount that the Policy prescribes for this purpose. FEDERAL TAX MATTERS 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 adviser 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. INSURANCE PROCEEDS o Insurance proceeds are generally excludable from your beneficiary's gross income to the extent provided in Section 101 of the Internal Revenue Code ("Code"). o In the case of employer-owned life insurance as defined in Section 101(j) of the 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. Certain specified exceptions are based on the status of an employee as highly compensated, a director, 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. o 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. o 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. o 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. o The insurance proceeds payable upon death of the insured will never be less than the minimum amount required for the Policyissued 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) o You are generally not taxed on your cash value until you withdraw it or surrender your Policy or receive a distribution (such as when your Policy terminates 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 treated as gain subject to 39 ordinary 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. Distributions during the first 15 Policy years accompanied by a reduction in Policy benefits, including distributions which must be made in order to enable the Policy to continue to qualify as a life insurance contract for federal income tax purposes, are subject to different tax rules and may be treated in whole or in part as taxable income. LOANS o 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. o 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. o 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. 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 policies where the premiums paid during the first 7 years after the Policy is issued, or after a material change in the Policy, exceeds 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 Modified Endowment Contract. If your Policy is considered a modified endowment contract the following applies: o The death benefit will still generally be income tax free to your beneficiary, to the extent discussed above. o Amounts withdrawn or distributed before the insured's death, including (without limitation) loans, assignments and pledges, are (to the extent of any gain in your Policy) treated as income first and subject to income tax. 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. o An additional 10% income tax generally applies to the taxable portion of the amounts you received before age 591/2 except if you are disabled or if the distribution is part of a series of substantially equal periodic payments for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your beneficiary. -The foregoing exceptions to the 10% -additional tax generally do not apply to a Policy owner that is a non-natural person, such as a corporation. o 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. 40 Failure to meet these standards would result in immediate taxation to Policy owners of gains under their Certificates. 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. 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 transfer and other taxes. In general, current rules provide for a $5 million estate, gift and generation-skipping transfer tax exemption (as indexed for inflation) and a top tax rate of 40 percent. 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 that are not U.S. citizens or residents are advised to consult with a qualified tax adviser regarding U.S. and foreign taxation with respect to a Policy purchase. 41 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 contemplating a change to an existing Policy or 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. 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 laws, 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: o Possible taxation of cash value transfers -between investment funds. o Possible taxation as if you were the owner of your allocable portion of the Separate Account's assets. o -Possible limits on the number of investment funds available or the frequency of transfers among them. o 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. 42 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: o Operating the Separate Account in any other form that is permitted by applicable law. o Changes to obtain or continue exemptions from the 1940 Act. o Transferring assets among investment divisions or to other separate accounts, or our general account or combining or removing investment divisions from the Separate Account. o Substituting Fund shares in an investment division for shares of another portfolio of a Fund or another fund or investment permitted by law. o Changing the way we assess charges without exceeding the aggregate amount of the Policy's guaranteed maximum charges. o 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 FREE LOOK PERIOD Carefully review your Policy, which contains a full discussion of all its provisions. You can return the Policy during this period. The period ends on the later of: o 10 days after you receive the Policy (unless state law requires a longer -specified period); and o 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. 43 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. REPORTS Generally, you will promptly receive statements confirming your significant transactions such as: o Change in specified face amount. o Change in death benefit option. o Transfers among investment divisions (including those through Systematic Investment Strategies, which maybe confirmed quarterly). o Partial withdrawals. o Loan amounts you request. o 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 generally within 30 days after a Policy year. That statement will summarize the year's transactions and include information on: o Deductions and charges. o Status of the death benefit. o Cash and cash surrender values. o Amounts in the investment divisions and Fixed Account. o Status of Policy loans. o Automatic loans to pay interest. o 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. The 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). 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. 44 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. CYBERSECURITY Our variable life insurance business is largely conducted through digital communications and data storage networks and systems operated by us and our service providers or other business partners (e.g., the Funds and the firms involved in the distribution and sale of our variable life insurance policies). For example, many routine operations, such as processing Policy owners' requests and elections and day-to-day record keeping, are all executed through computer networks and systems. We have established administrative and technical controls and a business continuity plan to protect our operations against cybersecurity breaches. Despite these protocols, a cybersecurity breach could have a material, negative impact on MetLife and the Separate Account, as well as individual Policy owners and their Policies. Our operations also could be negatively affected by a cybersecurity breach at a third party, such as a governmental or regulatory authority or another participant in the financial markets. Cybersecurity breaches can be intentional or unintentional events, and can occur through unauthorized access to computer systems, networks or devices; infection from computer viruses or other malicious software code; or attacks that shut down, disable, slow or otherwise disrupt operations, business processes or website access or functionality. Cybersecurity breaches can interfere with our processing of Policy transactions, including the processing of transfer orders from our website or with the Funds; impact our ability to calculate cash values; cause the release and possible destruction of confidential Policy owner or business information; or impede order processing or cause other operational issues. Although we continually make efforts to identify and reduce our exposure to cybersecurity risk, there is no guarantee that we will be able to successfully manage this risk at all times. 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 our affiliate MetLife Securities, Inc. ("MSI"). MSI is registered with the SEC as a broker-dealer under the '34 Act and is also a member 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. 45 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 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. Our affiliated sales representatives must meet a minimum level of sales production in order to maintain their agent status with us. Sales representatives can meet the minimum level of sales production through sales of proprietary and/or non-proprietary products. (Proprietary products are those issued by us or our affiliates.) However, sales representatives can meet a lower alternative minimum level of sales production if the sales representative focuses on sales of proprietary products. Therefore, a sales representative may have an incentive to favor the sale of proprietary products. Moreover, because the managers who supervise the representatives receive a higher level of compensation based on sales of proprietary products, these sales managers have an incentive to promote the sale of proprietary products. Our affiliated sales representatives receive cash payments for the products they sell and service based on a "gross dealer concession" model. A sales representative is entitled to part or all of the gross dealer concession. The percentage to which the representative is entitled is determined by a sliding-scale formula that takes into account the total amount of proprietary and non-proprietary products sold and serviced by the representative. 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. Under alternative schedules that are available, the gross dealer concession in the first Policy year ranges from 10% to 21% premiums paid up to the Target Premium and 2% of any excess; in Policy years 2 through 10, it ranges from 8.5% to 10% of premiums paid up to the Target Premium and 1.5% of any excess; in Policy years 11 and later, it is 3% of premiums paid up to the Target Premium and 1.5% of any excess; and in Policy years 8 and thereafter, a gross dealer concession ranging from 0.1% to 0.15% is paid on the Policy's cash value. For Policies sold by representatives of 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 through 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. Those programs may also include other types of cash and non-cash compensation and other benefits. Sales representatives of these broker-dealers may also receive non-cash compensation pursuant to the firm's guidelines or directly from us or MLIDC. Our sales representatives and their managers may be eligible for additional cash compensation, such as bonuses and expense allowances (that may be tied to sales of specific products), equity awards (such as stock options), training allowances, supplemental compensation, product level add-ons controlled at the local and company levels, financing arrangements, special loan repayment options, marketing support, medical and other insurance benefits, and retirement benefits and other benefits. Since some of this additional compensation, in particular, life insurance, disability and retirement benefits, is based primarily on the amount of proprietary products sold, sales representatives and their managers have an incentive to favor the sale of proprietary products. Sales representatives who meet certain productivity, persistency, and length of service standards and/or their managers may be eligible for additional cash compensation. 46 Moreover, managers may be eligible for additional cash compensation based on the sales production of the sales representatives that the manager supervises. The business unit responsible for the operation of our distribution system is also eligible to receive an amount of compensation. 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, the amount of which depends on cumulative periodic (usually quarterly) sales of our insurance products (including the Policies) and may also depend on meeting thresholds in the sale of certain of our insurance products (other than the Policies). 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 affiliate MSI. 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 insurance products. These consultants may also provide services directly to our clients for a fee. 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. 47 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. FINANCIAL STATEMENTS The financial statements comprising each of the Investment Divisions of the Separate Account and the financial statements of MetLife can be found 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. 48 APPENDIX A ADDITIONAL INFORMATION REGARDING THE FUNDS Certain Portfolios were subject to a name change or reorganization. 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/FUND NAME CHANGES
FORMER NAME NEW NAME -------------------------------------------------- ---------------------------------------- ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES AB VARIABLE PRODUCTS SERIES FUND, INC. FUND, INC. AllianceBernstein Global Thematic Growth AB VPS Global Thematic Growth Portfolio Portfolio AllianceBernstein Intermediate Bond Portfolio AB VPS Intermediate Bond Portfolio AllianceBernstein International Value Portfolio AB VPS International Value Portfolio MET INVESTORS SERIES TRUST MET INVESTORS SERIES TRUST Third Avenue Small Cap Value Portfolio MetLife Small Cap Value Portfolio
PORTFOLIO REORGANIZATION
FORMER PORTFOLIO/FUND NEW PORTFOLIO/FUND ------------------------------------------------ ------------------------------------------------ LEGG MASON PARTNERS VARIABLE EQUITY TRUST TRUST FOR ADVISED PORTFOLIOS Legg Mason Investment Counsel Variable Social 1919 Variable Socially Responsive Balanced Fund Awareness Portfolio
49 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 50 METFLEX A FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY METROPOLITAN LIFE SEPARATE ACCOUNT UL ISSUED BY METROPOLITAN LIFE INSURANCE COMPANY STATEMENT OF ADDITIONAL INFORMATION MAY 1, 2015 This Statement of Additional Information is not a prospectus. This Statement of Additional Information relates to the prospectus dated May 1, 2015 for MetFlex--A Flexible Premium Variable Life Insurance Policy. A copy of that prospectus may be obtained by writing to MetLife--SBR, 501 Route 22, Bridgewater, NJ 08807. 1 TABLE OF CONTENTS
PAGE ----- THE COMPANY AND THE SEPARATE ACCOUNT.............................. 3 ADDITIONAL INFORMATION ABOUT THE OPERATION OF THE POLICIES........ 3 LIMITS TO METLIFE'S RIGHT TO CHALLENGE THE POLICY................ 3 MISSTATEMENT OF AGE OR SEX....................................... 3 DIVIDENDS........................................................ 3 PAYMENT AND DEFERMENT............................................ 3 ADDITIONAL INFORMATION ABOUT VOTING............................... 4 ADDITIONAL INFORMATION ABOUT SALES OF POLICIES.................... 4 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM..................... 5 FINANCIAL STATEMENTS.............................................. 5
2 THE COMPANY AND THE SEPARATE ACCOUNT Metropolitan Life Insurance Company is a leading provider of insurance, annuities and employee benefit programs with operations throughout the United States. The Company offers life insurance and annuities to individuals, as well as group insurance and retirement and savings products and many other services to corporations and other institutions. The Company was formed under the laws of New York in 1868. The Company's principal executive office is located at 200 Park Avenue, New York, New York 10166-0188. The Company is a wholly-owned subsidiary of MetLife, Inc. MetLife, Inc. is a leading global provider of insurance, annuities, employee benefits and asset management serving 100 million customers. Through its subsidiaries and affiliates, MetLife, Inc. holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. We established the Separate Account under New York law on December 13, 1988. The Separate Account receives premium payments from the Policies described in the Prospectus and other variable life insurance policies that we issue. We have registered the Separate Account as a unit investment trust under the Investment Company Act of 1940 (the "1940 Act"). For more information about MetLife, please visit our website at www.metlife.com ADDITIONAL INFORMATION ABOUT THE OPERATION OF THE POLICIES LIMITS TO METLIFE'S RIGHT TO CHALLENGE THE POLICY We will not contest: o Your Policy after two Policy years from issue or reinstatement (excluding riders added later). o An increase in a death benefit after it has been in effect for two years. MISSTATEMENT OF AGE OR SEX We will adjust benefits to reflect the correct age and sex of the insured, if this information isn't correct in the Policy application. DIVIDENDS The Policy is "nonparticipating," which means it is not eligible for dividends from us and does not share in any distributions of our surplus. PAYMENT AND DEFERMENT We can delay transfers, withdrawals, surrender and payment of Policy loans from the Fixed Account for up to six months. Generally, we will pay or transfer amounts from the Separate Account within seven days after the Date of Receipt of all necessary documentation required for such payment or transfer. We can defer this if: o The New York Stock Exchange has an unscheduled closing. o There is an emergency so that we could not reasonably determine the investment experience of a Policy. o The Securities and Exchange determines that an emergency exists. 3 o The Securities and Exchange Commission by order permits us to do so for the protection of Policy owners (provided that the delay is permitted under New York State insurance law and regulations). o With respect to the insurance proceeds, if entitlement to a payment is being questioned or is uncertain. o We are paying amounts attributable to a check. In that case we can wait for a reasonable time (15 days or less) to let the check clear. We currently pay interest on the amount of insurance proceeds at 3% per year (or higher if state law requires) from the date of death until the date we pay the benefit. ADDITIONAL INFORMATION ABOUT VOTING If you are eligible to give us voting instructions, we will send you informational material and a form to send back to us. We are entitled to disregard voting instructions in certain limited circumstances prescribed by the SEC. If we do so, we will give you our reasons in the next semi-annual report to Policy owners. The number of shares for which you can give us voting instructions is determined as of the record date for the Fund shareholder meeting by dividing: Your Policy's cash value in the corresponding investment division; by The net asset value of one share of that Portfolio. We will count fractional votes. If we do not receive timely voting instructions from Policy owners and other insurance and annuity owners that are entitled to give us voting instructions, we will vote those shares in the same proportion as the shares held in the same separate account for which we did receive voting instructions. Also, we will vote Fund shares that are not attributable to insurance or annuity owners (including shares that we hold in our general account) or that are held in separate accounts that are not registered under the 1940 Act in the same proportion as the aggregate of the shares for which we received voting instructions from all insurance and annuity owners. ADDITIONAL INFORMATION ABOUT SALES OF POLICIES Information about the distribution of the Policies is contained in the prospectus. (See "Sales of Policies.") Additional information is provided below. The Policies are offered to the public on a continuous basis. We anticipate continuing to offer the Policies, but reserve the right to discontinue the offering. MetLife Investors Distribution Company ("MLIDC") serves as principal underwriter for the Policies. MLIDC is a Missouri corporation and its principal office is located at 1095 Avenue of the Americas, New York, NY 10036. MLIDC is an indirect wholly-owned subsidiary of MetLife, Inc. MLIDC is registered as a broker-dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934 and is a member of FINRA. MLIDC has entered into selling agreements with other broker-dealers and compensates them for their services. MLIDC received sales compensation with respect to the Policies in the following amounts during the periods indicated: 4
AGGREGATE AMOUNT OF AGGREGATE AMOUNT OF COMMISSIONS COMMISSION PAID TO RETAINED BY DISTRIBUTOR AFTER FISCAL YEAR DISTRIBUTOR PAYMENTS TO SELLING FIRMS --------------- --------------------- -------------------------------- 2014.........$1,089,430 $0 2013.........$1,424,904 $0 2012.........$1,380,694 $0
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 Statement of Additional Information, 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 are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The consolidated financial statements and related financial statement schedules of Metropolitan Life Insurance Company and subsidiaries, included in this Statement of Additional Information, 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 statement schedules are 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 30 Rockefeller Plaza, New York, New York 10112-0015. FINANCIAL STATEMENTS The financial statements of the Separate Account and the financial statements of MetLife are attached. Our financial statements should be considered only as bearing upon our ability to meet our obligations under the Policy. 5 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, 2014, 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, 2014, 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, 2014, 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 27, 2015 This page is intentionally left blank. METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 2014
ALLIANCEBERNSTEIN AMERICAN GLOBAL ALLIANCEBERNSTEIN CENTURY VP CAPITAL AMERICAN FUNDS THEMATIC GROWTH INTERMEDIATE BOND APPRECIATION BOND INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- --------------------- -------------------- ASSETS: Investments at fair value.......... $ 75,700 $ 59,589 $ 432 $ 5,975,916 Due from Metropolitan Life Insurance Company................ -- -- -- -- -------------------- -------------------- --------------------- -------------------- Total Assets.................. 75,700 59,589 432 5,975,916 -------------------- -------------------- --------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company................ -- -- -- -- -------------------- -------------------- --------------------- -------------------- Total Liabilities............. -- -- -- -- -------------------- -------------------- --------------------- -------------------- NET ASSETS............................ $ 75,700 $ 59,589 $ 432 $ 5,975,916 ==================== ==================== ===================== ====================
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, 2014
AMERICAN FUNDS GLOBAL SMALL AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS CAPITALIZATION GROWTH GROWTH-INCOME INTERNATIONAL INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- --------------------- --------------------- ASSETS: Investments at fair value.. $ 70,558,117 $ 164,910,420 $ 106,030,731 $ 682,005 Due from Metropolitan Life Insurance Company........ 1 1 1 -- -------------------- -------------------- --------------------- --------------------- Total Assets.......... 70,558,118 164,910,421 106,030,732 682,005 -------------------- -------------------- --------------------- --------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- --------------------- --------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- --------------------- --------------------- NET ASSETS.................... $ 70,558,118 $ 164,910,421 $ 106,030,732 $ 682,005 ==================== ==================== ===================== ===================== AMERICAN FUNDS U.S. GOVERNMENT/AAA- DREYFUS VIF FIDELITY VIP ASSET FIDELITY VIP RATED SECURITIES INTERNATIONAL VALUE MANAGER: GROWTH CONTRAFUND INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------- --------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 48,552 $ 220,569 $ 2,087,177 $ 2,913,464 Due from Metropolitan Life Insurance Company........ -- -- -- -- --------------------- --------------------- -------------------- -------------------- Total Assets.......... 48,552 220,569 2,087,177 2,913,464 --------------------- --------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- --------------------- --------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- --------------------- --------------------- -------------------- -------------------- NET ASSETS.................... $ 48,552 $ 220,569 $ 2,087,177 $ 2,913,464 ===================== ===================== ==================== ==================== FIDELITY VIP FIDELITY VIP EQUITY-INCOME FREEDOM 2010 INVESTMENT DIVISION INVESTMENT DIVISION --------------------- -------------------- ASSETS: Investments at fair value.. $ 25,205 $ 48,114 Due from Metropolitan Life Insurance Company........ -- -- --------------------- -------------------- Total Assets.......... 25,205 48,114 --------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- --------------------- -------------------- Total Liabilities..... -- -- --------------------- -------------------- NET ASSETS.................... $ 25,205 $ 48,114 ===================== ====================
The accompanying notes are an integral part of these financial statements. 2 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, 2014
FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP FREEDOM 2020 FREEDOM 2025 FREEDOM 2030 FREEDOM 2040 INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------- -------------------- -------------------- --------------------- ASSETS: Investments at fair value.. $ 984,560 $ 37,588 $ 81,658 $ 53,497 Due from Metropolitan Life Insurance Company........ -- -- -- -- --------------------- -------------------- -------------------- --------------------- Total Assets.......... 984,560 37,588 81,658 53,497 --------------------- -------------------- -------------------- --------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- --------------------- -------------------- -------------------- --------------------- Total Liabilities..... -- -- -- -- --------------------- -------------------- -------------------- --------------------- NET ASSETS.................... $ 984,560 $ 37,588 $ 81,658 $ 53,497 ===================== ==================== ==================== ===================== FIDELITY VIP FIDELITY VIP FIDELITY VIP INVESTMENT FREEDOM 2050 HIGH INCOME GRADE BOND FIDELITY VIP MID CAP INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- --------------------- --------------------- ASSETS: Investments at fair value.. $ 26,706 $ 172,179 $ 1,257,507 $ 254,337 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- --------------------- --------------------- Total Assets.......... 26,706 172,179 1,257,507 254,337 -------------------- -------------------- --------------------- --------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- --------------------- --------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- --------------------- --------------------- NET ASSETS.................... $ 26,706 $ 172,179 $ 1,257,507 $ 254,337 ==================== ==================== ===================== ===================== FTVIPT FTVIPT FRANKLIN MUTUAL FRANKLIN INCOME VIP GLOBAL DISCOVERY VIP INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 25,156 $ 488,433 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 25,156 488,433 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Liabilities..... -- -- -------------------- -------------------- NET ASSETS.................... $ 25,156 $ 488,433 ==================== ====================
The accompanying notes are an integral part of these financial statements. 4 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, 2014
FTVIPT FTVIPT FRANKLIN MUTUAL FTVIPT TEMPLETON TEMPLETON GLOBAL GOLDMAN SACHS SHARES VIP FOREIGN VIP BOND VIP MID-CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- --------------------- -------------------- ASSETS: Investments at fair value.. $ 42,378 $ 5,347,371 $ 1,236,895 $ 301,257 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- --------------------- -------------------- Total Assets.......... 42,378 5,347,371 1,236,895 301,257 -------------------- -------------------- --------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- --------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- --------------------- -------------------- NET ASSETS.................... $ 42,378 $ 5,347,371 $ 1,236,895 $ 301,257 ==================== ==================== ===================== ==================== GOLDMAN SACHS INVESCO V.I. SMALL CAP EQUITY INVESCO V.I. GOVERNMENT INVESCO V.I. INSIGHTS COMSTOCK SECURITIES INTERNATIONAL GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------- -------------------- --------------------- --------------------- ASSETS: Investments at fair value.. $ 37,063 $ 347,578 $ 84 $ 350,497 Due from Metropolitan Life Insurance Company........ -- -- -- -- --------------------- -------------------- --------------------- --------------------- Total Assets.......... 37,063 347,578 84 350,497 --------------------- -------------------- --------------------- --------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- --------------------- -------------------- --------------------- --------------------- Total Liabilities..... -- -- -- -- --------------------- -------------------- --------------------- --------------------- NET ASSETS.................... $ 37,063 $ 347,578 $ 84 $ 350,497 ===================== ==================== ===================== ===================== JANUS ASPEN BALANCED JANUS ASPEN FORTY INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 1,082,851 $ 550,397 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 1,082,851 550,397 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Liabilities..... -- -- -------------------- -------------------- NET ASSETS.................... $ 1,082,851 $ 550,397 ==================== ====================
The accompanying notes are an integral part of these financial statements. 6 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, 2014
MFS VIT MFS VIT JANUS ASPEN JANUS JANUS ASPEN OVERSEAS GLOBAL EQUITY NEW DISCOVERY INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 480,007 $ 47,442 $ 189,291 $ 206,851 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 480,007 47,442 189,291 206,851 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 480,007 $ 47,442 $ 189,291 $ 206,851 ==================== ==================== ==================== ==================== MIST MIST ALLIANCEBERNSTEIN ALLIANZ GLOBAL MFS VIT MFS VIT II GLOBAL DYNAMIC INVESTORS DYNAMIC VALUE HIGH YIELD ALLOCATION MULTI-ASSET PLUS INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- --------------------- ASSETS: Investments at fair value.. $ 22,067 $ 143,885 $ 49,893 $ 76 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- --------------------- Total Assets.......... 22,067 143,885 49,893 76 -------------------- -------------------- -------------------- --------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- --------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- --------------------- NET ASSETS.................... $ 22,067 $ 143,885 $ 49,893 $ 76 ==================== ==================== ==================== ===================== MIST MIST AMERICAN FUNDS AMERICAN FUNDS BALANCED ALLOCATION GROWTH ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 876,678 $ 1,495,337 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 876,678 1,495,337 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Liabilities..... -- -- -------------------- -------------------- NET ASSETS.................... $ 876,678 $ 1,495,337 ==================== ====================
The accompanying notes are an integral part of these financial statements. 8 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, 2014
MIST MIST MIST BLACKROCK AMERICAN FUNDS AQR GLOBAL GLOBAL TACTICAL MIST CLARION MODERATE ALLOCATION RISK BALANCED STRATEGIES GLOBAL REAL ESTATE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- --------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 1,020,697 $ 180,015 $ 191,557 $ 31,468,605 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- --------------------- -------------------- -------------------- Total Assets.......... 1,020,697 180,015 191,557 31,468,605 -------------------- --------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- 1 -------------------- --------------------- -------------------- -------------------- Total Liabilities..... -- -- -- 1 -------------------- --------------------- -------------------- -------------------- NET ASSETS.................... $ 1,020,697 $ 180,015 $ 191,557 $ 31,468,604 ==================== ===================== ==================== ==================== MIST MIST INVESCO MIST CLEARBRIDGE HARRIS OAKMARK BALANCED-RISK MIST INVESCO AGGRESSIVE GROWTH INTERNATIONAL ALLOCATION MID CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 47,278,587 $ 41,530,766 $ 31,001 $ 94,874,185 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 47,278,587 41,530,766 31,001 94,874,185 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ 43 -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... 43 -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 47,278,544 $ 41,530,766 $ 31,001 $ 94,874,185 ==================== ==================== ==================== ==================== MIST JPMORGAN MIST INVESCO GLOBAL ACTIVE SMALL CAP GROWTH ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- --------------------- ASSETS: Investments at fair value.. $ 7,086,689 $ 171,141 Due from Metropolitan Life Insurance Company........ -- -- -------------------- --------------------- Total Assets.......... 7,086,689 171,141 -------------------- --------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- --------------------- Total Liabilities..... -- -- -------------------- --------------------- NET ASSETS.................... $ 7,086,689 $ 171,141 ==================== =====================
The accompanying notes are an integral part of these financial statements. 10 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, 2014
MIST MIST JPMORGAN LOOMIS SAYLES MIST LORD ABBETT MIST MET/TEMPLETON SMALL CAP VALUE GLOBAL MARKETS BOND DEBENTURE INTERNATIONAL BOND INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 295,411 $ 423,380 $ 28,665,009 $ 173,865 Due from Metropolitan Life Insurance Company........ -- -- 1 -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 295,411 423,380 28,665,010 173,865 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 295,411 $ 423,380 $ 28,665,010 $ 173,865 ==================== ==================== ==================== ==================== MIST METLIFE MIST METLIFE MIST METLIFE MULTI-INDEX MIST METLIFE ASSET ALLOCATION 100 BALANCED PLUS TARGETED RISK SMALL CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 20,893,340 $ 235,501 $ 121,407 $ 864,244 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 20,893,340 235,501 121,407 864,244 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- 1 -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- 1 -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 20,893,340 $ 235,501 $ 121,407 $ 864,243 ==================== ==================== ==================== ==================== MIST MFS EMERGING MIST MFS RESEARCH MARKETS EQUITY INTERNATIONAL INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 521,123 $ 19,140,390 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 521,123 19,140,390 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Liabilities..... -- -- -------------------- -------------------- NET ASSETS.................... $ 521,123 $ 19,140,390 ==================== ====================
The accompanying notes are an integral part of these financial statements. 12 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, 2014
MIST MIST MIST MORGAN STANLEY OPPENHEIMER PIMCO INFLATION MIST PIMCO MID CAP GROWTH GLOBAL EQUITY PROTECTED BOND TOTAL RETURN INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- ------------------- ASSETS: Investments at fair value.. $ 233,885,326 $ 48,430,517 $ 11,277,978 $ 46,980,970 Due from Metropolitan Life Insurance Company........ -- 4 -- -- -------------------- -------------------- -------------------- ------------------- Total Assets.......... 233,885,326 48,430,521 11,277,978 46,980,970 -------------------- -------------------- -------------------- ------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- ------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- ------------------- NET ASSETS.................... $ 233,885,326 $ 48,430,521 $ 11,277,978 $ 46,980,970 ==================== ==================== ==================== =================== MIST PYRAMIS MIST SCHRODERS MIST SSGA GROWTH MIST PIONEER FUND MANAGED RISK GLOBAL MULTI-ASSET AND INCOME ETF INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 225,164 $ 1,575 $ 31,786 $ 7,718,022 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 225,164 1,575 31,786 7,718,022 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 225,164 $ 1,575 $ 31,786 $ 7,718,022 ==================== ==================== ==================== ==================== MIST SSGA MIST T. ROWE PRICE GROWTH ETF LARGE CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 6,445,663 $ 2,395,891 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 6,445,663 2,395,891 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Liabilities..... -- -- -------------------- -------------------- NET ASSETS.................... $ 6,445,663 $ 2,395,891 ==================== ====================
The accompanying notes are an integral part of these financial statements. 14 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, 2014
MIST T. ROWE PRICE MIST WMC MSF BAILLIE GIFFORD MSF BARCLAYS MID CAP GROWTH LARGE CAP RESEARCH INTERNATIONAL STOCK AGGREGATE BOND INDEX INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- --------------------- ASSETS: Investments at fair value.. $ 31,233,141 $ 412,427,171 $ 41,212,522 $ 130,875,542 Due from Metropolitan Life Insurance Company........ -- 19 -- -- -------------------- -------------------- -------------------- --------------------- Total Assets.......... 31,233,141 412,427,190 41,212,522 130,875,542 -------------------- -------------------- -------------------- --------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- --------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- --------------------- NET ASSETS.................... $ 31,233,141 $ 412,427,190 $ 41,212,522 $ 130,875,542 ==================== ==================== ==================== ===================== MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK BOND INCOME CAPITAL APPRECIATION LARGE CAP VALUE MONEY MARKET INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 82,796,372 $ 9,736,331 $ 20,080,783 $ 30,032,793 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 82,796,372 9,736,331 20,080,783 30,032,793 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 82,796,372 $ 9,736,331 $ 20,080,783 $ 30,032,793 ==================== ==================== ==================== ==================== MSF FRONTIER MSF JENNISON MID CAP GROWTH GROWTH INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 235,559,690 $ 22,860,613 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 235,559,690 22,860,613 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Liabilities..... -- -- -------------------- -------------------- NET ASSETS.................... $ 235,559,690 $ 22,860,613 ==================== ====================
The accompanying notes are an integral part of these financial statements. 16 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, 2014
MSF LOOMIS SAYLES MSF LOOMIS SAYLES MSF MET/ARTISAN MSF METLIFE SMALL CAP CORE SMALL CAP GROWTH MID CAP VALUE ASSET ALLOCATION 20 INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- --------------------- --------------------- -------------------- ASSETS: Investments at fair value.. $ 24,891,168 $ 11,372,610 $ 62,265,620 $ 5,533,722 Due from Metropolitan Life Insurance Company........ 3 -- 3 -- -------------------- --------------------- --------------------- -------------------- Total Assets.......... 24,891,171 11,372,610 62,265,623 5,533,722 -------------------- --------------------- --------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- 1 -- -- -------------------- --------------------- --------------------- -------------------- Total Liabilities..... -- 1 -- -- -------------------- --------------------- --------------------- -------------------- NET ASSETS.................... $ 24,891,171 $ 11,372,609 $ 62,265,623 $ 5,533,722 ==================== ===================== ===================== ==================== MSF METLIFE MSF METLIFE MSF METLIFE MSF METLIFE ASSET ALLOCATION 40 ASSET ALLOCATION 60 ASSET ALLOCATION 80 MID CAP STOCK INDEX INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- --------------------- --------------------- ASSETS: Investments at fair value.. $ 9,972,600 $ 53,734,766 $ 98,075,581 $ 89,174,913 Due from Metropolitan Life Insurance Company........ -- -- 1 -- -------------------- -------------------- --------------------- --------------------- Total Assets.......... 9,972,600 53,734,766 98,075,582 89,174,913 -------------------- -------------------- --------------------- --------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- 6 -- -- -------------------- -------------------- --------------------- --------------------- Total Liabilities..... -- 6 -- -- -------------------- -------------------- --------------------- --------------------- NET ASSETS.................... $ 9,972,600 $ 53,734,760 $ 98,075,582 $ 89,174,913 ==================== ==================== ===================== ===================== MSF METLIFE MSF MFS STOCK INDEX TOTAL RETURN INVESTMENT DIVISION INVESTMENT DIVISION -------------------- --------------------- ASSETS: Investments at fair value.. $ 986,064,739 $ 9,964,117 Due from Metropolitan Life Insurance Company........ -- -- -------------------- --------------------- Total Assets.......... 986,064,739 9,964,117 -------------------- --------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ 22 1 -------------------- --------------------- Total Liabilities..... 22 1 -------------------- --------------------- NET ASSETS.................... $ 986,064,717 $ 9,964,116 ==================== =====================
The accompanying notes are an integral part of these financial statements. 18 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, 2014
MSF MSCI MSF NEUBERGER MSF RUSSELL 2000 MSF MFS VALUE EAFE INDEX BERMAN GENESIS INDEX INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 87,234,542 $ 77,801,016 $ 106,824,598 $ 73,667,199 Due from Metropolitan Life Insurance Company........ -- -- -- 1 -------------------- -------------------- -------------------- -------------------- Total Assets.......... 87,234,542 77,801,016 106,824,598 73,667,200 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 87,234,542 $ 77,801,016 $ 106,824,598 $ 73,667,200 ==================== ==================== ==================== ==================== MSF WESTERN MSF VAN ECK ASSET MANAGEMENT MSF T. ROWE PRICE MSF T. ROWE PRICE GLOBAL NATURAL STRATEGIC BOND LARGE CAP GROWTH SMALL CAP GROWTH RESOURCES OPPORTUNITIES INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 83,295,013 $ 109,708,317 $ 176,178 $ 26,015,238 Due from Metropolitan Life Insurance Company........ 22 -- -- -- ------------------- -------------------- -------------------- -------------------- Total Assets.......... 83,295,035 109,708,317 176,178 26,015,238 ------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- ------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- ------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 83,295,035 $ 109,708,317 $ 176,178 $ 26,015,238 =================== ==================== ==================== ==================== MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT MSF WMC BALANCED INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 16,386,046 $ 312,335,178 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 16,386,046 312,335,178 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Liabilities..... -- -- -------------------- -------------------- NET ASSETS.................... $ 16,386,046 $ 312,335,178 ==================== ====================
The accompanying notes are an integral part of these financial statements. 20 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 -- (CONTINUED) DECEMBER 31, 2014
MSF WMC OPPENHEIMER PIMCO VIT CORE EQUITY VA MAIN STREET PIMCO VIT COMMODITY OPPORTUNITIES SMALL CAP ALL ASSET REALRETURN STRATEGY INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 75,552,945 $ 5,052 $ 902,397 $ 35,230 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 75,552,945 5,052 902,397 35,230 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 75,552,945 $ 5,052 $ 902,397 $ 35,230 ==================== ==================== ==================== ==================== PIMCO VIT PIONEER VCT PUTNAM VT LOW DURATION MID CAP VALUE INTERNATIONAL VALUE ROYCE MICRO-CAP INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 1,556,606 $ 70,257 $ 5,820 $ 8,336 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 1,556,606 70,257 5,820 8,336 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ 1,319 -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... 1,319 -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 1,555,287 $ 70,257 $ 5,820 $ 8,336 ==================== ==================== ==================== ==================== UIF EMERGING ROYCE SMALL-CAP MARKETS DEBT INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ASSETS: Investments at fair value.. $ 51,371 $ 792,559 Due from Metropolitan Life Insurance Company........ -- -- ------------------- ------------------- Total Assets.......... 51,371 792,559 ------------------- ------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- ------------------- ------------------- Total Liabilities..... -- -- ------------------- ------------------- NET ASSETS.................... $ 51,371 $ 792,559 =================== ===================
The accompanying notes are an integral part of these financial statements. 22 The accompanying notes are an integral part of these financial statements. 23 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONCLUDED) DECEMBER 31, 2014
UIF EMERGING WELLS FARGO VT MARKETS EQUITY TOTAL RETURN BOND INVESTMENT DIVISION INVESTMENT DIVISION -------------------- --------------------- ASSETS: Investments at fair value......................................................... $ 2,122,051 $ 1,015,198 Due from Metropolitan Life Insurance Company............................................................... -- -- -------------------- --------------------- Total Assets................................................................. 2,122,051 1,015,198 -------------------- --------------------- LIABILITIES: Due to Metropolitan Life Insurance Company............................................................... -- 145 -------------------- --------------------- Total Liabilities............................................................ -- 145 -------------------- --------------------- NET ASSETS........................................................................... $ 2,122,051 $ 1,015,053 ==================== =====================
The accompanying notes are an integral part of these financial statements. 24 This page is intentionally left blank. METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
ALLIANCEBERNSTEIN GLOBAL THEMATIC GROWTH INVESTMENT DIVISION ----------------------------------------------------------- 2014 2013 2012 ------------------ ------------------ ------------------ INVESTMENT INCOME: Dividends............................................ $ -- $ 13 $ -- ------------------ ------------------ ------------------ EXPENSES: Mortality and expense risk charges................... -- -- -- ------------------ ------------------ ------------------ Net investment income (loss).................... -- 13 -- ------------------ ------------------ ------------------ NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 1,302 (1,496) (1,307,724) ------------------ ------------------ ------------------ Net realized gains (losses)..................... 1,302 (1,496) (1,307,724) ------------------ ------------------ ------------------ Change in unrealized gains (losses) on investments... 2,635 14,581 1,419,031 ------------------ ------------------ ------------------ Net realized and changes in unrealized gains (losses) on investments.................................... 3,937 13,085 111,307 ------------------ ------------------ ------------------ Net increase (decrease) in net assets resulting from operations................................... $ 3,937 $ 13,098 $ 111,307 ================== ================== ================== ALLIANCEBERNSTEIN INTERMEDIATE BOND INVESTMENT DIVISION ----------------------------------------------------------- 2014 2013 2012 ------------------ ------------------ ------------------ INVESTMENT INCOME: Dividends............................................ $ 1,921 $ 1,888 $ 2,404 ------------------ ------------------ ------------------ EXPENSES: Mortality and expense risk charges................... -- -- -- ------------------ ------------------ ------------------ Net investment income (loss).................... 1,921 1,888 2,404 ------------------ ------------------ ------------------ NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 810 1,675 1,744 Realized gains (losses) on sale of investments....... (121) (24) 43 ------------------ ------------------ ------------------ Net realized gains (losses)..................... 689 1,651 1,787 ------------------ ------------------ ------------------ Change in unrealized gains (losses) on investments... 952 (5,086) (188) ------------------ ------------------ ------------------ Net realized and changes in unrealized gains (losses) on investments.................................... 1,641 (3,435) 1,599 ------------------ ------------------ ------------------ Net increase (decrease) in net assets resulting from operations................................... $ 3,562 $ (1,547) $ 4,003 ================== ================== ================== AMERICAN CENTURY VP CAPITAL APPRECIATION INVESTMENT DIVISION ------------------- 2014 (a) ------------------- INVESTMENT INCOME: Dividends............................................ $ -- ------------------- EXPENSES: Mortality and expense risk charges................... -- ------------------- Net investment income (loss).................... -- ------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- Realized gains (losses) on sale of investments....... 12 ------------------- Net realized gains (losses)..................... 12 ------------------- Change in unrealized gains (losses) on investments... 42 ------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 54 ------------------- Net increase (decrease) in net assets resulting from operations................................... $ 54 =================== AMERICAN FUNDS BOND INVESTMENT DIVISION ----------------------------------------------------------- 2014 2013 2012 ------------------ ------------------ ------------------ INVESTMENT INCOME: Dividends............................................ $ 115,025 $ 100,255 $ 133,110 ------------------ ------------------ ------------------ EXPENSES: Mortality and expense risk charges................... 8,401 8,663 9,169 ------------------ ------------------ ------------------ Net investment income (loss).................... 106,624 91,592 123,941 ------------------ ------------------ ------------------ NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 2,120 61,561 -- Realized gains (losses) on sale of investments....... 4,807 741 27,506 ------------------ ------------------ ------------------ Net realized gains (losses)..................... 6,927 62,302 27,506 ------------------ ------------------ ------------------ Change in unrealized gains (losses) on investments... 172,487 (282,587) 108,693 ------------------ ------------------ ------------------ Net realized and changes in unrealized gains (losses) on investments.................................... 179,414 (220,285) 136,199 ------------------ ------------------ ------------------ Net increase (decrease) in net assets resulting from operations................................... $ 286,038 $ (128,693) $ 260,140 ================== ================== ==================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 26 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, 2014, 2013 AND 2012
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 88,263 $ 571,973 $ 761,809 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 95,114 90,217 80,276 -------------------- -------------------- -------------------- Net investment income (loss).................... (6,851) 481,756 681,533 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 320,860 -- -- Realized gains (losses) on sale of investments....... 1,028,540 556,105 (342,892) -------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,349,400 556,105 (342,892) -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 96,482 15,213,508 9,028,936 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 1,445,882 15,769,613 8,686,044 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 1,439,031 $ 16,251,369 $ 9,367,577 ==================== ==================== ==================== AMERICAN FUNDS GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,286,837 $ 1,364,727 $ 1,013,020 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 152,282 139,123 133,202 -------------------- -------------------- -------------------- Net investment income (loss).................... 1,134,555 1,225,604 879,818 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 7,869,597 -- -- Realized gains (losses) on sale of investments....... 3,654,149 2,872,251 1,170,827 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 11,523,746 2,872,251 1,170,827 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 413,436 34,086,809 18,556,699 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 11,937,182 36,959,060 19,727,526 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 13,071,737 $ 38,184,664 $ 20,607,344 ==================== ==================== ==================== AMERICAN FUNDS GROWTH-INCOME INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,339,033 $ 1,235,600 $ 1,253,842 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 103,335 89,908 78,704 -------------------- -------------------- -------------------- Net investment income (loss).................... 1,235,698 1,145,692 1,175,138 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 5,003,511 -- -- Realized gains (losses) on sale of investments....... 2,212,712 1,441,252 300,932 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 7,216,223 1,441,252 300,932 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 1,935,227 23,374,516 10,629,027 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 9,151,450 24,815,768 10,929,959 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 10,387,148 $ 25,961,460 $ 12,105,097 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 28 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, 2014, 2013 AND 2012
AMERICAN FUNDS INTERNATIONAL INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 9,668 $ 7,749 $ 7,535 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 9,668 7,749 7,535 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 3,059 27,615 (1,402) --------------------- --------------------- --------------------- Net realized gains (losses)..................... 3,059 27,615 (1,402) --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (30,549) 63,361 82,398 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (27,490) 90,976 80,996 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (17,822) $ 98,725 $ 88,531 ===================== ===================== ===================== AMERICAN FUNDS U.S. GOVERNMENT/AAA-RATED SECURITIES INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 520 $ 317 $ 440 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 520 317 440 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- 1,258 1,252 Realized gains (losses) on sale of investments....... (30) (28) 258 --------------------- --------------------- --------------------- Net realized gains (losses)..................... (30) 1,230 1,510 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... 1,820 (2,996) (1,126) --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 1,790 (1,766) 384 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 2,310 $ (1,449) $ 824 ===================== ===================== ===================== DREYFUS VIF INTERNATIONAL VALUE INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 3,201 $ 4,021 $ 4,882 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 3,201 4,021 4,882 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (210) (906) (1,011) --------------------- --------------------- --------------------- Net realized gains (losses)..................... (210) (906) (1,011) --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (26,366) 42,909 18,857 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (26,576) 42,003 17,846 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (23,375) $ 46,024 $ 22,728 ===================== ===================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 30 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, 2014, 2013 AND 2012
FIDELITY VIP ASSET MANAGER: GROWTH INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 20,809 $ 16,073 $ 24,972 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 20,809 16,073 24,972 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,627 5,165 7,043 Realized gains (losses) on sale of investments....... 33,797 110,324 28,654 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 35,424 115,489 35,697 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... 59,690 260,059 172,026 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 95,114 375,548 207,723 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 115,923 $ 391,621 $ 232,695 ===================== ===================== ===================== FIDELITY VIP CONTRAFUND INVESTMENT DIVISION ---------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 24,338 $ 23,521 $ 28,837 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 24,338 23,521 28,837 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 56,967 690 -- Realized gains (losses) on sale of investments....... 61,174 146,443 38,806 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 118,141 147,133 38,806 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... 174,211 505,651 288,092 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 292,352 652,784 326,898 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 316,690 $ 676,305 $ 355,735 ===================== ===================== ===================== FIDELITY VIP EQUITY-INCOME INVESTMENT DIVISION ---------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 687 $ 752 $ 1,836 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 687 752 1,836 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 338 2,042 2,863 Realized gains (losses) on sale of investments....... 718 2,076 376 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 1,056 4,118 3,239 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... 37 3,227 (1,146) --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 1,093 7,345 2,093 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 1,780 $ 8,097 $ 3,929 ===================== ===================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 32 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, 2014, 2013 AND 2012
FIDELITY VIP FREEDOM 2010 INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 775 $ 755 $ 733 -------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 29 192 169 -------------------- --------------------- --------------------- Net investment income (loss).................... 746 563 564 -------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 738 501 535 Realized gains (losses) on sale of investments....... 2,715 164 98 -------------------- --------------------- --------------------- Net realized gains (losses)..................... 3,453 665 633 -------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (2,030) 3,994 2,707 -------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 1,423 4,659 3,340 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 2,169 $ 5,222 $ 3,904 ==================== ===================== ===================== FIDELITY VIP FREEDOM 2020 INVESTMENT DIVISION ---------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 16,277 $ 16,665 $ 15,185 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 108 653 280 --------------------- --------------------- --------------------- Net investment income (loss).................... 16,169 16,012 14,905 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 17,423 11,508 8,838 Realized gains (losses) on sale of investments....... 21,410 10,474 5,799 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 38,833 21,982 14,637 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (8,502) 93,753 62,352 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 30,331 115,735 76,989 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 46,500 $ 131,747 $ 91,894 ===================== ===================== ===================== FIDELITY VIP FREEDOM 2025 INVESTMENT DIVISION --------------------------------------------- 2014 2013 (b) --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 613 $ 694 --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- --------------------- --------------------- Net investment income (loss).................... 613 694 --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 771 278 Realized gains (losses) on sale of investments....... 464 135 --------------------- --------------------- Net realized gains (losses)..................... 1,235 413 --------------------- --------------------- Change in unrealized gains (losses) on investments... 73 3,626 --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 1,308 4,039 --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 1,921 $ 4,733 ===================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 34 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, 2014, 2013 AND 2012
FIDELITY VIP FREEDOM 2030 INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 1,233 $ 993 $ 881 -------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 38 230 216 -------------------- --------------------- --------------------- Net investment income (loss).................... 1,195 763 665 -------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,344 844 425 Realized gains (losses) on sale of investments....... 11,989 2,703 2,855 -------------------- --------------------- --------------------- Net realized gains (losses)..................... 13,333 3,547 3,280 -------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (10,096) 5,619 3,591 -------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 3,237 9,166 6,871 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 4,432 $ 9,929 $ 7,536 ==================== ===================== ===================== FIDELITY VIP FREEDOM 2040 INVESTMENT DIVISION --------------------------------------------- 2014 2013 (c) --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 775 $ 170 --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 8 17 --------------------- --------------------- Net investment income (loss).................... 767 153 --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 487 76 Realized gains (losses) on sale of investments....... 749 4 --------------------- --------------------- Net realized gains (losses)..................... 1,236 80 --------------------- --------------------- Change in unrealized gains (losses) on investments... (709) 545 --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 527 625 --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 1,294 $ 778 ===================== ===================== FIDELITY VIP FREEDOM 2050 INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 369 $ 284 $ 360 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 14 89 77 --------------------- --------------------- --------------------- Net investment income (loss).................... 355 195 283 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 382 229 2,132 Realized gains (losses) on sale of investments....... 6,257 94 28 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 6,639 323 2,160 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (5,093) 4,037 199 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 1,546 4,360 2,359 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 1,901 $ 4,555 $ 2,642 ===================== ===================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 36 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, 2014, 2013 AND 2012
FIDELITY VIP HIGH INCOME INVESTMENT DIVISION ---------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 10,183 $ 9,677 $ 9,229 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 10,183 9,677 9,229 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 158 73 67 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 158 73 67 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (8,210) (126) (1,277) --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (8,052) (53) (1,210) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 2,131 $ 9,624 $ 8,019 ===================== ===================== ===================== FIDELITY VIP INVESTMENT GRADE BOND INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 26,958 $ 39,909 $ 37,562 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 26,958 39,909 37,562 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 644 21,294 48,616 Realized gains (losses) on sale of investments....... (16,379) (28,717) 33,058 --------------------- --------------------- --------------------- Net realized gains (losses)..................... (15,735) (7,423) 81,674 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... 77,902 (76,349) (8,975) --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 62,167 (83,772) 72,699 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 89,125 $ (43,863) $ 110,261 ===================== ===================== ===================== FIDELITY VIP MID CAP INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 48 $ 613 $ 2,865 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 48 613 2,865 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 5,961 35,674 59,448 Realized gains (losses) on sale of investments....... 4,531 172,540 8,193 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 10,492 208,214 67,641 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... 4,318 1,232 20,392 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 14,810 209,446 88,033 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 14,858 $ 210,059 $ 90,898 ===================== ===================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 38 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, 2014, 2013 AND 2012
FTVIPT FRANKLIN INCOME VIP INVESTMENT DIVISION ------------------------------------------- 2014 2013 (d) -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 385 $ -- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -------------------- -------------------- Net investment income (loss).................... 385 -- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- Realized gains (losses) on sale of investments....... (51) 3 -------------------- -------------------- Net realized gains (losses)..................... (51) 3 -------------------- -------------------- Change in unrealized gains (losses) on investments... (1,084) 8 -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (1,135) 11 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (750) $ 11 ==================== ==================== FTVIPT FRANKLIN MUTUAL GLOBAL DISCOVERY VIP INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 10,690 $ 19,686 $ 21,682 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 10,690 19,686 21,682 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 33,082 81,814 43,771 Realized gains (losses) on sale of investments....... 10,518 59,341 5,837 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 43,600 141,155 49,608 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (24,521) 47,244 33,439 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 19,079 188,399 83,047 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 29,769 $ 208,085 $ 104,729 ==================== ==================== ==================== FTVIPT FRANKLIN MUTUAL SHARES VIP INVESTMENT DIVISION ------------------------------------------- 2014 2013 (d) -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 789 $ 445 -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -------------------- -------------------- Net investment income (loss).................... 789 445 -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 205 -- Realized gains (losses) on sale of investments....... 259 105 -------------------- -------------------- Net realized gains (losses)..................... 464 105 -------------------- -------------------- Change in unrealized gains (losses) on investments... 1,131 2,000 -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 1,595 2,105 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 2,384 $ 2,550 ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 40 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, 2014, 2013 AND 2012
FTVIPT TEMPLETON FOREIGN VIP INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 78,379 $ 98,174 $ 115,174 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 78,379 98,174 115,174 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 156,830 73,110 (16,852) -------------------- -------------------- -------------------- Net realized gains (losses)..................... 156,830 73,110 (16,852) -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (709,096) 689,874 501,451 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (552,266) 762,984 484,599 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (473,887) $ 861,158 $ 599,773 ==================== ==================== ==================== FTVIPT TEMPLETON GLOBAL BOND VIP INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 65,826 $ 20,975 $ 24,244 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 65,826 20,975 24,244 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- 5,202 590 Realized gains (losses) on sale of investments....... (644) 1,245 (238) -------------------- -------------------- -------------------- Net realized gains (losses)..................... (644) 6,447 352 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (38,430) (6,052) 26,566 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (39,074) 395 26,918 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 26,752 $ 21,370 $ 51,162 ==================== ==================== ==================== GOLDMAN SACHS MID-CAP VALUE VIP INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 2,932 $ 2,312 $ 2,932 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 2,932 2,312 2,932 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 48,819 22,308 -- Realized gains (losses) on sale of investments....... 7,493 9,943 (683) -------------------- -------------------- -------------------- Net realized gains (losses)..................... 56,312 32,251 (683) -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (21,021) 43,303 45,178 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 35,291 75,554 44,495 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 38,223 $ 77,866 $ 47,427 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 42 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, 2014, 2013 AND 2012
GOLDMAN SACHS SMALL CAP EQUITY INSIGHTS INVESTMENT DIVISION ----------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- ---------------------- INVESTMENT INCOME: Dividends............................................ $ 277 $ 373 $ 308 --------------------- --------------------- ---------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- ---------------------- Net investment income (loss)................... 277 373 308 --------------------- --------------------- ---------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 5,208 4,708 -- Realized gains (losses) on sale of investments....... 1,707 1,040 5,427 --------------------- --------------------- ---------------------- Net realized gains (losses).................... 6,915 5,748 5,427 --------------------- --------------------- ---------------------- Change in unrealized gains (losses) on investments... (4,589) 3,869 (629) --------------------- --------------------- ---------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 2,326 9,617 4,798 --------------------- --------------------- ---------------------- Net increase (decrease) in net assets resulting from operations................................... $ 2,603 $ 9,990 $ 5,106 ===================== ===================== ====================== INVESCO V.I. COMSTOCK INVESTMENT DIVISION ---------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 3,587 $ 4,077 $ 3,483 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss)................... 3,587 4,077 3,483 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 2,447 1,475 1,338 --------------------- --------------------- --------------------- Net realized gains (losses).................... 2,447 1,475 1,338 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... 22,523 78,224 32,459 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 24,970 79,699 33,797 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 28,557 $ 83,776 $ 37,280 ===================== ===================== ===================== INVESCO V.I. GOVERNMENT SECURITIES INVESTMENT DIVISION ----------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- ---------------------- INVESTMENT INCOME: Dividends............................................ $ 198 $ 367 $ -- --------------------- --------------------- ---------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- ---------------------- Net investment income (loss)................... 198 367 -- --------------------- --------------------- ---------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (416) (1) 1,308 --------------------- --------------------- ---------------------- Net realized gains (losses).................... (416) (1) 1,308 --------------------- --------------------- ---------------------- Change in unrealized gains (losses) on investments... 527 (529) (1,335) --------------------- --------------------- ---------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 111 (530) (27) --------------------- --------------------- ---------------------- Net increase (decrease) in net assets resulting from operations................................... $ 309 $ (163) $ (27) ===================== ===================== ======================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 44 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, 2014, 2013 AND 2012
INVESCO V.I. INTERNATIONAL GROWTH INVESTMENT DIVISION ----------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- ---------------------- INVESTMENT INCOME: Dividends............................................ $ 5,421 $ 4,576 $ 90,329 --------------------- --------------------- ---------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- ---------------------- Net investment income (loss)................... 5,421 4,576 90,329 --------------------- --------------------- ---------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 5,138 926,281 18,589 --------------------- --------------------- ---------------------- Net realized gains (losses).................... 5,138 926,281 18,589 --------------------- --------------------- ---------------------- Change in unrealized gains (losses) on investments... (10,871) (647,277) 685,032 --------------------- --------------------- ---------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (5,733) 279,004 703,621 --------------------- --------------------- ---------------------- Net increase (decrease) in net assets resulting from operations................................... $ (312) $ 283,580 $ 793,950 ===================== ===================== ====================== JANUS ASPEN BALANCED INVESTMENT DIVISION ---------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 16,228 $ 13,254 $ 27,163 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss)................... 16,228 13,254 27,163 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 26,985 54,904 74,896 Realized gains (losses) on sale of investments....... 10,485 25,371 40,351 --------------------- --------------------- --------------------- Net realized gains (losses).................... 37,470 80,275 115,247 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... 30,740 94,265 25,664 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 68,210 174,540 140,911 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 84,438 $ 187,794 $ 168,074 ===================== ===================== ===================== JANUS ASPEN FORTY INVESTMENT DIVISION ----------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- ---------------------- INVESTMENT INCOME: Dividends............................................ $ 252 $ 4,954 $ 5,152 --------------------- --------------------- ---------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- ---------------------- Net investment income (loss)................... 252 4,954 5,152 --------------------- --------------------- ---------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 249,329 -- -- Realized gains (losses) on sale of investments....... 62,849 69,285 38,660 --------------------- --------------------- ---------------------- Net realized gains (losses).................... 312,178 69,285 38,660 --------------------- --------------------- ---------------------- Change in unrealized gains (losses) on investments... (248,123) 155,845 126,343 --------------------- --------------------- ---------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 64,055 225,130 165,003 --------------------- --------------------- ---------------------- Net increase (decrease) in net assets resulting from operations................................... $ 64,307 $ 230,084 $ 170,155 ===================== ===================== ======================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 46 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, 2014, 2013 AND 2012
JANUS ASPEN JANUS INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,630 $ 6,858 $ 5,213 --------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- -------------------- Net investment income (loss).................... 1,630 6,858 5,213 --------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 31,621 -- 15,799 Realized gains (losses) on sale of investments....... 9,477 258,951 13,270 --------------------- --------------------- -------------------- Net realized gains (losses)..................... 41,098 258,951 29,069 --------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... 12,182 (62,054) 122,884 --------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 53,280 196,897 151,953 --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 54,910 $ 203,755 $ 157,166 ===================== ===================== ==================== JANUS ASPEN OVERSEAS INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 1,960 $ 11,835 $ 2,519 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 1,960 11,835 2,519 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 6,620 -- 43,521 Realized gains (losses) on sale of investments....... (4,308) (73,759) (7,156) --------------------- --------------------- --------------------- Net realized gains (losses)..................... 2,312 (73,759) 36,365 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (10,605) 113,083 8,927 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (8,293) 39,324 45,292 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (6,333) $ 51,159 $ 47,811 ===================== ===================== ===================== MFS VIT GLOBAL EQUITY INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 974 $ 1,253 $ 61 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 974 1,253 61 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,843 -- 154 Realized gains (losses) on sale of investments....... 2,541 550 274 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 4,384 550 428 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 1,213 37,978 6,795 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 5,597 38,528 7,223 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 6,571 $ 39,781 $ 7,284 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 48 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, 2014, 2013 AND 2012
MFS VIT NEW DISCOVERY INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ -- $ -- --------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- -------------------- --------------------- Net investment income (loss).................... -- -- -- --------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 45,559 1,718 15,912 Realized gains (losses) on sale of investments....... 1,237 1,963 264 --------------------- -------------------- --------------------- Net realized gains (losses)..................... 46,796 3,681 16,176 --------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (63,957) 65,025 11,186 --------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (17,161) 68,706 27,362 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (17,161) $ 68,706 $ 27,362 ===================== ==================== ===================== MFS VIT VALUE INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 285 $ 197 $ 668 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- -------------------- -------------------- Net investment income (loss).................... 285 197 668 --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 670 61 355 Realized gains (losses) on sale of investments....... 571 323 3,188 --------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,241 384 3,543 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 559 5,315 2,241 --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 1,800 5,699 5,784 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 2,085 $ 5,896 $ 6,452 ===================== ==================== ==================== MFS VIT II HIGH YIELD INVESTMENT DIVISION -------------------------------------------- 2014 2013 (e) --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 8,003 $ 3,270 --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- --------------------- -------------------- Net investment income (loss).................... 8,003 3,270 --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- Realized gains (losses) on sale of investments....... 25 (3) --------------------- -------------------- Net realized gains (losses)..................... 25 (3) --------------------- -------------------- Change in unrealized gains (losses) on investments... (4,175) 2,275 --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (4,150) 2,272 --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 3,853 $ 5,542 ===================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 50 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, 2014, 2013 AND 2012
MIST ALLIANCEBERNSTEIN GLOBAL DYNAMIC ALLOCATION INVESTMENT DIVISION ---------------------------------------------------------- 2014 2013 2012 (f) ------------------ ------------------ ------------------ INVESTMENT INCOME: Dividends............................................ $ 860 $ 139 $ -- ------------------ ------------------ ------------------ EXPENSES: Mortality and expense risk charges................... -- -- -- ------------------ ------------------ ------------------ Net investment income (loss).................... 860 139 -- ------------------ ------------------ ------------------ NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 856 231 -- Realized gains (losses) on sale of investments....... 135 67 -- ------------------ ------------------ ------------------ Net realized gains (losses)..................... 991 298 -- ------------------ ------------------ ------------------ Change in unrealized gains (losses) on investments... 1,384 1,389 163 ------------------ ------------------ ------------------ Net realized and changes in unrealized gains (losses) on investments.................................... 2,375 1,687 163 ------------------ ------------------ ------------------ Net increase (decrease) in net assets resulting from operations................................... $ 3,235 $ 1,826 $ 163 ================== ================== ================== MIST ALLIANZ GLOBAL INVESTORS DYNAMIC MULTI-ASSET PLUS INVESTMENT DIVISION ------------------- 2014 (a) ------------------- INVESTMENT INCOME: Dividends............................................ $ -- ------------------- EXPENSES: Mortality and expense risk charges................... -- ------------------- Net investment income (loss).................... -- ------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1 Realized gains (losses) on sale of investments....... -- ------------------- Net realized gains (losses)..................... 1 ------------------- Change in unrealized gains (losses) on investments... 1 ------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 2 ------------------- Net increase (decrease) in net assets resulting from operations................................... $ 2 =================== MIST AMERICAN FUNDS BALANCED ALLOCATION INVESTMENT DIVISION ----------------------------------------------------------- 2014 2013 2012 ----------------- ------------------ ------------------ INVESTMENT INCOME: Dividends............................................ $ 13,034 $ 11,592 $ 10,680 ----------------- ------------------ ------------------ EXPENSES: Mortality and expense risk charges................... -- -- -- ----------------- ------------------ ------------------ Net investment income (loss).................... 13,034 11,592 10,680 ----------------- ------------------ ------------------ NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 78,760 42,196 5,437 Realized gains (losses) on sale of investments....... 6,182 5,669 3,875 ----------------- ------------------ ------------------ Net realized gains (losses)..................... 84,942 47,865 9,312 ----------------- ------------------ ------------------ Change in unrealized gains (losses) on investments... (47,376) 62,896 50,640 ----------------- ------------------ ------------------ Net realized and changes in unrealized gains (losses) on investments.................................... 37,566 110,761 59,952 ----------------- ------------------ ------------------ Net increase (decrease) in net assets resulting from operations................................... $ 50,600 $ 122,353 $ 70,632 ================= ================== ================== MIST AMERICAN FUNDS GROWTH ALLOCATION INVESTMENT DIVISION ---------------------------------------------------------- 2014 2013 2012 ------------------ ------------------ ----------------- INVESTMENT INCOME: Dividends............................................ $ 20,605 $ 16,414 $ 13,384 ------------------ ------------------ ----------------- EXPENSES: Mortality and expense risk charges................... -- -- -- ------------------ ------------------ ----------------- Net investment income (loss).................... 20,605 16,414 13,384 ------------------ ------------------ ----------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 237,874 69,006 -- Realized gains (losses) on sale of investments....... 24,970 36,038 16,384 ------------------ ------------------ ----------------- Net realized gains (losses)..................... 262,844 105,044 16,384 ------------------ ------------------ ----------------- Change in unrealized gains (losses) on investments... (180,168) 172,370 96,877 ------------------ ------------------ ----------------- Net realized and changes in unrealized gains (losses) on investments.................................... 82,676 277,414 113,261 ------------------ ------------------ ----------------- Net increase (decrease) in net assets resulting from operations................................... $ 103,281 $ 293,828 $ 126,645 ================== ================== =================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 52 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, 2014, 2013 AND 2012
MIST AMERICAN FUNDS MODERATE ALLOCATION INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 15,920 $ 14,487 $ 10,434 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- -------------------- -------------------- Net investment income (loss).................... 15,920 14,487 10,434 --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 77,010 39,313 5,798 Realized gains (losses) on sale of investments....... 5,925 5,863 5,301 --------------------- -------------------- -------------------- Net realized gains (losses)..................... 82,935 45,176 11,099 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (41,113) 36,688 29,635 --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 41,822 81,864 40,734 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 57,742 $ 96,351 $ 51,168 ===================== ==================== ==================== MIST AQR GLOBAL RISK BALANCED INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 (f) -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ 1,949 $ -- -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- --------------------- -------------------- Net investment income (loss).................... -- 1,949 -- -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 786 3,632 -- Realized gains (losses) on sale of investments....... (660) 169 (28) -------------------- --------------------- -------------------- Net realized gains (losses)..................... 126 3,801 (28) -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... 5,443 (10,413) 375 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 5,569 (6,612) 347 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 5,569 $ (4,663) $ 347 ==================== ===================== ==================== MIST BLACKROCK GLOBAL TACTICAL STRATEGIES INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 (f) -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,792 $ 951 $ -- -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- --------------------- -------------------- Net investment income (loss).................... 1,792 951 -- -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 8,451 1,537 -- Realized gains (losses) on sale of investments....... 363 238 51 -------------------- --------------------- -------------------- Net realized gains (losses)..................... 8,814 1,775 51 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (1,686) 4,911 878 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 7,128 6,686 929 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 8,920 $ 7,637 $ 929 ==================== ===================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 54 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, 2014, 2013 AND 2012
MIST CLARION GLOBAL REAL ESTATE INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 513,864 $ 1,883,980 $ 496,469 -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 33,399 31,537 26,819 -------------------- --------------------- -------------------- Net investment income (loss).................... 480,465 1,852,443 469,650 -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 314,419 (121,862) (282,095) -------------------- --------------------- -------------------- Net realized gains (losses)..................... 314,419 (121,862) (282,095) -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... 3,062,383 (768,686) 4,988,577 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 3,376,802 (890,548) 4,706,482 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 3,857,267 $ 961,895 $ 5,176,132 ==================== ===================== ==================== MIST CLEARBRIDGE AGGRESSIVE GROWTH INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 72,926 $ 71,803 $ 28,628 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 36,095 12,286 8,213 --------------------- -------------------- -------------------- Net investment income (loss).................... 36,831 59,517 20,415 --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 867,002 455,065 171,678 --------------------- -------------------- -------------------- Net realized gains (losses)..................... 867,002 455,065 171,678 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 5,750,935 6,062,472 2,107,124 --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 6,617,937 6,517,537 2,278,802 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 6,654,768 $ 6,577,054 $ 2,299,217 ===================== ==================== ==================== MIST HARRIS OAKMARK INTERNATIONAL INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,105,911 $ 1,234,640 $ 542,318 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 62,335 58,015 44,596 --------------------- -------------------- -------------------- Net investment income (loss).................... 1,043,576 1,176,625 497,722 --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 4,067,270 -- -- Realized gains (losses) on sale of investments....... 1,812,640 663,573 (140,345) --------------------- -------------------- -------------------- Net realized gains (losses)..................... 5,879,910 663,573 (140,345) --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (9,320,626) 9,999,502 7,474,599 --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (3,440,716) 10,663,075 7,334,254 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (2,397,140) $ 11,839,700 $ 7,831,976 ===================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 56 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, 2014, 2013 AND 2012
MIST INVESCO BALANCED-RISK ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 (f) -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ -- $ 23 -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- --------------------- -------------------- Net investment income (loss).................... -- -- 23 -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,200 159 83 Realized gains (losses) on sale of investments....... 65 (33) -- -------------------- --------------------- -------------------- Net realized gains (losses)..................... 1,265 126 83 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... 178 124 (2) -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 1,443 250 81 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 1,443 $ 250 $ 104 ==================== ===================== ==================== MIST INVESCO MID CAP VALUE INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 652,762 $ 762,499 $ 457 --------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 90,624 83,667 49,296 --------------------- --------------------- -------------------- Net investment income (loss).................... 562,138 678,832 (48,839) --------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 16,068,302 -- -- Realized gains (losses) on sale of investments....... 1,049,905 935,109 (82,924) --------------------- --------------------- -------------------- Net realized gains (losses)..................... 17,118,207 935,109 (82,924) --------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (8,899,738) 20,593,687 2,481,449 --------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 8,218,469 21,528,796 2,398,525 --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 8,780,607 $ 22,207,628 $ 2,349,686 ===================== ===================== ==================== MIST INVESCO SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ 23,000 $ -- -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 8,994 7,768 5,823 -------------------- --------------------- -------------------- Net investment income (loss).................... (8,994) 15,232 (5,823) -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 783,328 326,110 273,441 Realized gains (losses) on sale of investments....... 187,042 243,128 154,730 -------------------- --------------------- -------------------- Net realized gains (losses)..................... 970,370 569,238 428,171 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (438,103) 1,365,097 331,488 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 532,267 1,934,335 759,659 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 523,273 $ 1,949,567 $ 753,836 ==================== ===================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 58 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, 2014, 2013 AND 2012
MIST JPMORGAN GLOBAL ACTIVE ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 (f) -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,679 $ 54 $ 68 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 1,679 54 68 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 4,582 321 117 Realized gains (losses) on sale of investments....... 660 (595) (10) -------------------- -------------------- -------------------- Net realized gains (losses)..................... 5,242 (274) 107 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 2,680 5,829 152 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 7,922 5,555 259 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 9,601 $ 5,609 $ 327 ==================== ==================== ==================== MIST JPMORGAN SMALL CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 2,563 $ 337 $ 358 -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- --------------------- Net investment income (loss).................... 2,563 337 358 -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 28,052 -- -- Realized gains (losses) on sale of investments....... 2,277 2,408 3,130 -------------------- -------------------- --------------------- Net realized gains (losses)..................... 30,329 2,408 3,130 -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (18,929) 28,817 1,696 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 11,400 31,225 4,826 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 13,963 $ 31,562 $ 5,184 ==================== ==================== ===================== MIST LOOMIS SAYLES GLOBAL MARKETS INVESTMENT DIVISION ------------------------------------------- 2014 2013 (d) -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 9,637 $ -- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -------------------- -------------------- Net investment income (loss).................... 9,637 -- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- Realized gains (losses) on sale of investments....... 4,771 705 -------------------- -------------------- Net realized gains (losses)..................... 4,771 705 -------------------- -------------------- Change in unrealized gains (losses) on investments... 1,137 43,104 -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 5,908 43,809 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 15,545 $ 43,809 ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 60 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, 2014, 2013 AND 2012
MIST LORD ABBETT BOND DEBENTURE INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,679,139 $ 1,965,620 $ 1,984,542 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 62,645 63,217 61,482 --------------------- -------------------- -------------------- Net investment income (loss).................... 1,616,494 1,902,403 1,923,060 --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 782,757 -- -- Realized gains (losses) on sale of investments....... 320,061 299,375 218,347 --------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,102,818 299,375 218,347 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (1,312,784) (7,269) 1,167,280 --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (209,966) 292,106 1,385,627 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 1,406,528 $ 2,194,509 $ 3,308,687 ===================== ==================== ==================== MIST MET/TEMPLETON INTERNATIONAL BOND INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 (f) -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 6,729 $ 302 $ -- -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- --------------------- Net investment income (loss).................... 6,729 302 -- -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- 61 -- Realized gains (losses) on sale of investments....... 6 (24) 21 -------------------- -------------------- --------------------- Net realized gains (losses)..................... 6 37 21 -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (3,576) 996 47 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (3,570) 1,033 68 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 3,159 $ 1,335 $ 68 ==================== ==================== ===================== MIST METLIFE ASSET ALLOCATION 100 INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 181,683 $ 158,967 $ 118,210 -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 16,174 14,210 12,011 -------------------- -------------------- --------------------- Net investment income (loss).................... 165,509 144,757 106,199 -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 437,534 243,289 (55,023) -------------------- -------------------- --------------------- Net realized gains (losses)..................... 437,534 243,289 (55,023) -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... 404,377 4,045,633 2,084,613 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 841,911 4,288,922 2,029,590 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 1,007,420 $ 4,433,679 $ 2,135,789 ==================== ==================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 62 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, 2014, 2013 AND 2012
MIST METLIFE BALANCED PLUS INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 (f) --------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 2,715 $ 778 $ -- --------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- -------------------- Net investment income (loss).................... 2,715 778 -- --------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 12,036 1,257 -- Realized gains (losses) on sale of investments....... 220 2,685 119 --------------------- --------------------- -------------------- Net realized gains (losses)..................... 12,256 3,942 119 --------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (517) 4,689 1,691 --------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 11,739 8,631 1,810 --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 14,454 $ 9,409 $ 1,810 ===================== ===================== ==================== MIST METLIFE MULTI-INDEX TARGETED RISK INVESTMENT DIVISION -------------------------------------------- 2014 2013 (d) -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ 6 -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -------------------- -------------------- Net investment income (loss).................... -- 6 -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 172 47 Realized gains (losses) on sale of investments....... 90 (241) -------------------- -------------------- Net realized gains (losses)..................... 262 (194) -------------------- -------------------- Change in unrealized gains (losses) on investments... 4,343 52 -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 4,605 (142) -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 4,605 $ (136) ==================== ==================== MIST METLIFE SMALL CAP VALUE INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 366 $ 9,744 $ -- --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- -------------------- -------------------- Net investment income (loss).................... 366 9,744 -- --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 38,852 -- -- Realized gains (losses) on sale of investments....... 32,257 47,240 12,071 --------------------- -------------------- -------------------- Net realized gains (losses)..................... 71,109 47,240 12,071 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (58,142) 199,123 129,525 --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 12,967 246,363 141,596 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 13,333 $ 256,107 $ 141,596 ===================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 64 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, 2014, 2013 AND 2012
MIST MFS EMERGING MARKETS EQUITY INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 2,914 $ 1,482 $ 1,167 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 2,914 1,482 1,167 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (2,174) 254 (1,470) -------------------- -------------------- -------------------- Net realized gains (losses)..................... (2,174) 254 (1,470) -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (31,587) (3,821) 9,361 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (33,761) (3,567) 7,891 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (30,847) $ (2,085) $ 9,058 ==================== ==================== ==================== MIST MFS RESEARCH INTERNATIONAL INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 ------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 483,322 $ 475,117 $ 282,245 ------------------- ------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 18,674 17,938 16,065 ------------------- ------------------- -------------------- Net investment income (loss).................... 464,648 457,179 266,180 ------------------- ------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 144,798 48,641 (345,224) ------------------- ------------------- -------------------- Net realized gains (losses)..................... 144,798 48,641 (345,224) ------------------- ------------------- -------------------- Change in unrealized gains (losses) on investments... (2,026,000) 2,877,942 2,185,121 ------------------- ------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (1,881,202) 2,926,583 1,839,897 ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (1,416,554) $ 3,383,762 $ 2,106,077 =================== =================== ==================== MIST MORGAN STANLEY MID CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 132,861 $ 1,687,241 $ -- -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 717,140 654,660 579,825 -------------------- -------------------- -------------------- Net investment income (loss).................... (584,279) 1,032,581 (579,825) -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 5,665,992 3,781,941 1,677,793 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 5,665,992 3,781,941 1,677,793 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (2,867,790) 65,460,998 15,368,250 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 2,798,202 69,242,939 17,046,043 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 2,213,923 $ 70,275,520 $ 16,466,218 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 66 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, 2014, 2013 AND 2012
MIST OPPENHEIMER GLOBAL EQUITY INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 505,389 $ 945,127 $ 648,196 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 89,693 97,189 117,470 -------------------- -------------------- -------------------- Net investment income (loss).................... 415,696 847,938 530,726 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,468,712 -- -- Realized gains (losses) on sale of investments....... 1,473,679 1,128,194 700,180 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 2,942,391 1,128,194 700,180 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (2,309,701) 9,078,535 6,406,670 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 632,690 10,206,729 7,106,850 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 1,048,386 $ 11,054,667 $ 7,637,576 ==================== ==================== ==================== MIST PIMCO INFLATION PROTECTED BOND INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 213,452 $ 302,323 $ 395,503 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 21,738 25,479 26,003 -------------------- -------------------- -------------------- Net investment income (loss).................... 191,714 276,844 369,500 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- 719,437 725,803 Realized gains (losses) on sale of investments....... (162,419) (174,195) 75,075 -------------------- -------------------- -------------------- Net realized gains (losses)..................... (162,419) 545,242 800,878 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 319,472 (2,018,492) (101,684) -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 157,053 (1,473,250) 699,194 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 348,767 $ (1,196,406) $ 1,068,694 ==================== ==================== ==================== MIST PIMCO TOTAL RETURN INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,261,172 $ 2,175,351 $ 1,636,863 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 62,315 65,679 66,690 -------------------- -------------------- -------------------- Net investment income (loss).................... 1,198,857 2,109,672 1,570,173 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- 954,935 -- Realized gains (losses) on sale of investments....... 36,542 128,011 347,234 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 36,542 1,082,946 347,234 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 873,849 (4,155,495) 2,519,869 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 910,391 (3,072,549) 2,867,103 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 2,109,248 $ (962,877) $ 4,437,276 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 68 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, 2014, 2013 AND 2012
MIST PIONEER FUND INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 3,502 $ 6,252 $ 2,902 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 3,502 6,252 2,902 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 58,159 -- -- Realized gains (losses) on sale of investments....... 553 17,551 1,266 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 58,712 17,551 1,266 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (39,539) 32,389 14,560 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 19,173 49,940 15,826 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 22,675 $ 56,192 $ 18,728 ==================== ==================== ==================== MIST PYRAMIS MANAGED RISK INVESTMENT DIVISION -------------------------------------------- 2014 2013 (d) -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ 2 -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -------------------- -------------------- Net investment income (loss).................... -- 2 -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 2 5 Realized gains (losses) on sale of investments....... 8 -- -------------------- -------------------- Net realized gains (losses)..................... 10 5 -------------------- -------------------- Change in unrealized gains (losses) on investments... 48 6 -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 58 11 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 58 $ 13 ==================== ==================== MIST SCHRODERS GLOBAL MULTI-ASSET INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 (f) -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 398 $ 1 $ 42 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 398 1 42 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,089 37 94 Realized gains (losses) on sale of investments....... 168 150 9 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,257 187 103 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 553 1,498 (23) -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 1,810 1,685 80 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 2,208 $ 1,686 $ 122 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 70 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, 2014, 2013 AND 2012
MIST SSGA GROWTH AND INCOME ETF INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 195,317 $ 186,845 $ 133,958 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 9,443 9,307 7,748 -------------------- -------------------- -------------------- Net investment income (loss).................... 185,874 177,538 126,210 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 463,729 160,153 114,627 Realized gains (losses) on sale of investments....... 167,009 90,613 53,987 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 630,738 250,766 168,614 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (350,740) 431,610 365,606 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 279,998 682,376 534,220 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 465,872 $ 859,914 $ 660,430 ==================== ==================== ==================== MIST SSGA GROWTH ETF INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 118,289 $ 110,154 $ 80,502 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 7,409 7,236 5,984 -------------------- -------------------- -------------------- Net investment income (loss).................... 110,880 102,918 74,518 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 348,010 172,116 134,987 Realized gains (losses) on sale of investments....... 110,391 83,650 42,712 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 458,401 255,766 177,699 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (255,403) 467,150 279,360 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 202,998 722,916 457,059 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 313,878 $ 825,834 $ 531,577 ==================== ==================== ==================== MIST T. ROWE PRICE LARGE CAP VALUE INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- ------------------- INVESTMENT INCOME: Dividends............................................ $ 32,258 $ 30,041 $ 19,582 -------------------- -------------------- ------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- ------------------- Net investment income (loss).................... 32,258 30,041 19,582 -------------------- -------------------- ------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 6,947 22,312 (1,403) -------------------- -------------------- ------------------- Net realized gains (losses)..................... 6,947 22,312 (1,403) -------------------- -------------------- ------------------- Change in unrealized gains (losses) on investments... 244,232 456,298 181,043 -------------------- -------------------- ------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 251,179 478,610 179,640 -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 283,437 $ 508,651 $ 199,222 ==================== ==================== ===================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 72 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, 2014, 2013 AND 2012
MIST T. ROWE PRICE MID CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ 98,665 $ -- -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 39,978 33,261 29,751 -------------------- --------------------- -------------------- Net investment income (loss).................... (39,978) 65,404 (29,751) -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 2,710,770 1,223,909 2,679,802 Realized gains (losses) on sale of investments....... 622,719 608,004 (50,793) -------------------- --------------------- -------------------- Net realized gains (losses)..................... 3,333,489 1,831,913 2,629,009 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... 275,430 5,764,932 206,878 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 3,608,919 7,596,845 2,835,887 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 3,568,941 $ 7,662,249 $ 2,806,136 ==================== ===================== ==================== MIST WMC LARGE CAP RESEARCH INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 3,642,958 $ 4,873,934 $ 3,715,688 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 2,017,025 1,786,264 1,609,817 -------------------- -------------------- -------------------- Net investment income (loss).................... 1,625,933 3,087,670 2,105,871 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 5,779,958 1,187,504 (3,353,915) -------------------- -------------------- -------------------- Net realized gains (losses)..................... 5,779,958 1,187,504 (3,353,915) -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 41,616,595 96,008,684 38,395,441 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 47,396,553 97,196,188 35,041,526 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 49,022,486 $ 100,283,858 $ 37,147,397 ==================== ==================== ==================== MSF BAILLIE GIFFORD INTERNATIONAL STOCK INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 614,397 $ 674,943 $ 525,164 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 202,918 198,504 183,754 -------------------- -------------------- -------------------- Net investment income (loss).................... 411,479 476,439 341,410 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (176,452) (474,270) (1,190,404) -------------------- -------------------- -------------------- Net realized gains (losses)..................... (176,452) (474,270) (1,190,404) -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (1,735,615) 5,921,616 7,502,480 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (1,912,067) 5,447,346 6,312,076 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (1,500,588) $ 5,923,785 $ 6,653,486 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 74 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, 2014, 2013 AND 2012
MSF BARCLAYS AGGREGATE BOND INDEX INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 3,642,812 $ 4,111,311 $ 4,275,027 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 40,346 40,998 43,939 --------------------- -------------------- -------------------- Net investment income (loss).................... 3,602,466 4,070,313 4,231,088 --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 62,943 125,172 604,720 --------------------- -------------------- -------------------- Net realized gains (losses)..................... 62,943 125,172 604,720 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 3,247,015 (6,977,167) (447,969) --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 3,309,958 (6,851,995) 156,751 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 6,912,424 $ (2,781,682) $ 4,387,839 ===================== ==================== ==================== MSF BLACKROCK BOND INCOME INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 2,833,552 $ 3,290,462 $ 2,288,505 -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 293,168 301,259 317,038 -------------------- --------------------- -------------------- Net investment income (loss).................... 2,540,384 2,989,203 1,971,467 -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- 2,005,629 551,492 Realized gains (losses) on sale of investments....... 70,435 142,786 354,078 -------------------- --------------------- -------------------- Net realized gains (losses)..................... 70,435 2,148,415 905,570 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... 2,699,020 (6,076,619) 2,995,775 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 2,769,455 (3,928,204) 3,901,345 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 5,309,839 $ (939,001) $ 5,872,812 ==================== ===================== ==================== MSF BLACKROCK CAPITAL APPRECIATION INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 7,533 $ 144,698 $ 41,947 -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 10,001 8,874 8,390 -------------------- --------------------- -------------------- Net investment income (loss).................... (2,468) 135,824 33,557 -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 3,803,528 321,200 261,278 -------------------- --------------------- -------------------- Net realized gains (losses)..................... 3,803,528 321,200 261,278 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (2,831,679) 4,769,715 1,344,869 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 971,849 5,090,915 1,606,147 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 969,381 $ 5,226,739 $ 1,639,704 ==================== ===================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 76 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, 2014, 2013 AND 2012
MSF BLACKROCK LARGE CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 240,568 $ 225,484 $ 229,106 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 23,616 19,704 19,727 -------------------- -------------------- -------------------- Net investment income (loss).................... 216,952 205,780 209,379 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 4,383,514 871,774 2,231,565 Realized gains (losses) on sale of investments....... (65,732) 44,941 (224,253) -------------------- -------------------- -------------------- Net realized gains (losses)..................... 4,317,782 916,715 2,007,312 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (2,739,427) 3,399,848 (358,711) -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 1,578,355 4,316,563 1,648,601 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 1,795,307 $ 4,522,343 $ 1,857,980 ==================== ==================== ==================== MSF BLACKROCK MONEY MARKET INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ -- $ -- -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 38,422 45,649 48,731 -------------------- -------------------- -------------------- Net investment income (loss).................... (38,422) (45,649) (48,731) -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... -- -- -- -------------------- -------------------- -------------------- Net realized gains (losses)..................... -- -- -- -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... -- -- -- -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... -- -- -- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (38,422) $ (45,649) $ (48,731) ==================== ==================== ==================== MSF FRONTIER MID CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ 2,591,979 $ -- -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 1,529,952 1,371,993 1,258,555 -------------------- -------------------- -------------------- Net investment income (loss).................... (1,529,952) 1,219,986 (1,258,555) -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 20,270,585 4,884,883 -- Realized gains (losses) on sale of investments....... 5,829,957 5,761,928 2,892,428 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 26,100,542 10,646,811 2,892,428 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (1,683,974) 45,562,137 17,096,166 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 24,416,568 56,208,948 19,988,594 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 22,886,616 $ 57,428,934 $ 18,730,039 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 78 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, 2014, 2013 AND 2012
MSF JENNISON GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 57,642 $ 81,129 $ 37,925 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 13,806 11,843 9,820 -------------------- -------------------- -------------------- Net investment income (loss).................... 43,836 69,286 28,105 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,172,046 199,135 2,671,966 Realized gains (losses) on sale of investments....... 588,171 549,515 139,207 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,760,217 748,650 2,811,173 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 102,570 5,442,828 (683,735) -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 1,862,787 6,191,478 2,127,438 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 1,906,623 $ 6,260,764 $ 2,155,543 ==================== ==================== ==================== MSF LOOMIS SAYLES SMALL CAP CORE INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 10,698 $ 95,451 $ -- -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 24,993 22,893 18,930 -------------------- -------------------- --------------------- Net investment income (loss).................... (14,295) 72,558 (18,930) -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 3,179,934 1,618,689 452,678 Realized gains (losses) on sale of investments....... 437,509 624,015 282,308 -------------------- -------------------- --------------------- Net realized gains (losses)..................... 3,617,443 2,242,704 734,986 -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (2,720,783) 5,169,026 1,736,369 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 896,660 7,411,730 2,471,355 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 882,365 $ 7,484,288 $ 2,452,425 ==================== ==================== ===================== MSF LOOMIS SAYLES SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ -- $ -- -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 10,498 8,824 7,211 -------------------- -------------------- -------------------- Net investment income (loss).................... (10,498) (8,824) (7,211) -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,374,358 -- -- Realized gains (losses) on sale of investments....... 486,190 444,863 192,524 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,860,548 444,863 192,524 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (1,752,743) 3,463,471 678,535 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 107,805 3,908,334 871,059 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 97,307 $ 3,899,510 $ 863,848 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 80 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, 2014, 2013 AND 2012
MSF MET/ARTISAN MID CAP VALUE INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 459,965 $ 561,888 $ 483,287 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 58,197 55,101 46,626 -------------------- -------------------- -------------------- Net investment income (loss).................... 401,768 506,787 436,661 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 1,070,144 684,691 (286,700) -------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,070,144 684,691 (286,700) -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (313,797) 16,708,173 5,263,295 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 756,347 17,392,864 4,976,595 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 1,158,115 $ 17,899,651 $ 5,413,256 ==================== ==================== ==================== MSF METLIFE ASSET ALLOCATION 20 INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 209,842 $ 169,434 $ 148,047 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 8,381 8,929 9,352 --------------------- --------------------- --------------------- Net investment income (loss).................... 201,461 160,505 138,695 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 213,606 25,756 114,982 Realized gains (losses) on sale of investments....... 25,638 56,127 59,284 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 239,244 81,883 174,266 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (203,125) (14,063) 123,869 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 36,119 67,820 298,135 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 237,580 $ 228,325 $ 436,830 ===================== ===================== ===================== MSF METLIFE ASSET ALLOCATION 40 INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 291,635 $ 252,710 $ 219,743 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 18,482 17,423 14,684 --------------------- -------------------- -------------------- Net investment income (loss).................... 273,153 235,287 205,059 --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 346,288 95,776 21,976 Realized gains (losses) on sale of investments....... 121,187 210,565 59,559 --------------------- -------------------- -------------------- Net realized gains (losses)..................... 467,475 306,341 81,535 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (270,968) 418,401 541,162 --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 196,507 724,742 622,697 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 469,660 $ 960,029 $ 827,756 ===================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 82 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, 2014, 2013 AND 2012
MSF METLIFE ASSET ALLOCATION 60 INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,206,188 $ 1,058,783 $ 1,056,014 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 84,872 79,987 72,676 -------------------- -------------------- -------------------- Net investment income (loss).................... 1,121,316 978,796 983,338 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 2,031,851 386,257 -- Realized gains (losses) on sale of investments....... 808,239 1,204,992 307,411 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 2,840,090 1,591,249 307,411 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (1,284,610) 5,640,223 3,912,908 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 1,555,480 7,231,472 4,220,319 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 2,676,796 $ 8,210,268 $ 5,203,657 ==================== ==================== ==================== MSF METLIFE ASSET ALLOCATION 80 INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 1,754,790 $ 1,416,783 $ 1,528,175 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 84,172 85,508 75,645 --------------------- --------------------- --------------------- Net investment income (loss).................... 1,670,618 1,331,275 1,452,530 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 1,673,184 1,631,177 342,924 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 1,673,184 1,631,177 342,924 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... 1,795,645 15,682,919 8,619,633 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 3,468,829 17,314,096 8,962,557 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 5,139,447 $ 18,645,371 $ 10,415,087 ===================== ===================== ===================== MSF METLIFE MID CAP STOCK INDEX INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 910,209 $ 981,648 $ 662,912 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 66,825 59,983 51,493 --------------------- --------------------- --------------------- Net investment income (loss).................... 843,384 921,665 611,419 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 4,123,805 2,405,800 2,787,031 Realized gains (losses) on sale of investments....... 4,161,062 1,774,205 830,830 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 8,284,867 4,180,005 3,617,861 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (1,040,640) 18,736,176 6,545,785 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 7,244,227 22,916,181 10,163,646 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 8,087,611 $ 23,837,846 $ 10,775,065 ===================== ===================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 84 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, 2014, 2013 AND 2012
MSF METLIFE STOCK INDEX INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 15,723,375 $ 15,228,884 $ 12,674,264 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 2,152,159 1,937,634 1,725,734 -------------------- -------------------- -------------------- Net investment income (loss).................... 13,571,216 13,291,250 10,948,530 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 23,073,733 12,357,151 5,087,401 Realized gains (losses) on sale of investments....... 22,399,491 12,306,567 3,743,076 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 45,473,224 24,663,718 8,830,477 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 58,022,278 191,004,236 82,239,455 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 103,495,502 215,667,954 91,069,932 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 117,066,718 $ 228,959,204 $ 102,018,462 ==================== ==================== ==================== MSF MFS TOTAL RETURN INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 230,037 $ 226,568 $ 220,676 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 8,485 7,921 6,627 -------------------- -------------------- -------------------- Net investment income (loss).................... 221,552 218,647 214,049 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 193,152 99,210 32,260 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 193,152 99,210 32,260 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 388,544 1,215,884 595,278 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 581,696 1,315,094 627,538 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 803,248 $ 1,533,741 $ 841,587 ==================== ==================== ==================== MSF MFS VALUE INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,410,912 $ 1,234,016 $ 1,079,462 -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 70,434 63,296 47,838 -------------------- --------------------- -------------------- Net investment income (loss).................... 1,340,478 1,170,720 1,031,624 -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 3,936,675 2,095,342 768,644 Realized gains (losses) on sale of investments....... 1,680,541 1,087,562 200,451 -------------------- --------------------- -------------------- Net realized gains (losses)..................... 5,617,216 3,182,904 969,095 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... 1,679,688 17,288,533 6,505,435 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 7,296,904 20,471,437 7,474,530 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 8,637,382 $ 21,642,157 $ 8,506,154 ==================== ===================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 86 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, 2014, 2013 AND 2012
MSF MSCI EAFE INDEX INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,985,462 $ 2,250,635 $ 1,993,048 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 40,521 39,550 34,978 -------------------- -------------------- -------------------- Net investment income (loss).................... 1,944,941 2,211,085 1,958,070 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 1,139,967 838,301 (63,228) -------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,139,967 838,301 (63,228) -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (7,881,915) 11,746,223 9,143,347 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (6,741,948) 12,584,524 9,080,119 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (4,797,007) $ 14,795,609 $ 11,038,189 ==================== ==================== ==================== MSF NEUBERGER BERMAN GENESIS INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 420,580 $ 744,713 $ 297,555 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 96,260 89,260 75,540 -------------------- -------------------- -------------------- Net investment income (loss).................... 324,320 655,453 222,015 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 1,496,496 614,602 (730,868) -------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,496,496 614,602 (730,868) -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (2,029,896) 30,722,824 8,168,095 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (533,400) 31,337,426 7,437,227 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (209,080) $ 31,992,879 $ 7,659,242 ==================== ==================== ==================== MSF RUSSELL 2000 INDEX INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 812,259 $ 982,173 $ 623,816 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 48,414 47,086 39,701 -------------------- -------------------- -------------------- Net investment income (loss).................... 763,845 935,087 584,115 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,573,978 -- -- Realized gains (losses) on sale of investments....... 2,223,932 1,797,318 721,576 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 3,797,910 1,797,318 721,576 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (996,894) 17,937,722 6,793,518 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 2,801,016 19,735,040 7,515,094 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 3,564,861 $ 20,670,127 $ 8,099,209 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 88 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, 2014, 2013 AND 2012
MSF T. ROWE PRICE LARGE CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 48,493 $ 163,280 $ 58,548 -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 54,764 41,708 23,330 -------------------- --------------------- -------------------- Net investment income (loss).................... (6,271) 121,572 35,218 -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 5,537,905 -- -- Realized gains (losses) on sale of investments....... 2,356,884 2,302,973 996,117 -------------------- --------------------- -------------------- Net realized gains (losses)..................... 7,894,789 2,302,973 996,117 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (880,615) 19,823,349 6,924,755 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 7,014,174 22,126,322 7,920,872 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 7,007,903 $ 22,247,894 $ 7,956,090 ==================== ===================== ==================== MSF T. ROWE PRICE SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 19,192 $ 373,197 $ -- -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 389,795 356,357 304,065 -------------------- --------------------- -------------------- Net investment income (loss).................... (370,603) 16,840 (304,065) -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 8,559,449 5,766,149 9,066,425 Realized gains (losses) on sale of investments....... 9,322,153 3,667,968 2,397,895 -------------------- --------------------- -------------------- Net realized gains (losses)..................... 17,881,602 9,434,117 11,464,320 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (10,294,099) 30,236,593 2,263,900 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 7,587,503 39,670,710 13,728,220 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 7,216,900 $ 39,687,550 $ 13,424,155 ==================== ===================== ==================== MSF VAN ECK GLOBAL NATURAL RESOURCES INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 983 $ 669 $ -- --------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- -------------------- --------------------- Net investment income (loss).................... 983 669 -- --------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 3,054 -- 2,613 Realized gains (losses) on sale of investments....... (3,490) (55) (729) --------------------- -------------------- --------------------- Net realized gains (losses)..................... (436) (55) 1,884 --------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (44,636) 14,171 (2,269) --------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (45,072) 14,116 (385) --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (44,089) $ 14,785 $ (385) ===================== ==================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 90 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, 2014, 2013 AND 2012
MSF WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends............................................ $ 1,377,573 $ 1,259,304 $ 891,838 ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges................... 33,455 33,218 32,820 ------------------- ------------------- ------------------- Net investment income (loss).................... 1,344,118 1,226,086 859,018 ------------------- ------------------- ------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 163,589 194,088 204,230 ------------------- ------------------- ------------------- Net realized gains (losses)..................... 163,589 194,088 204,230 ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments... (168,552) (1,174,913) 1,584,984 ------------------- ------------------- ------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (4,963) (980,825) 1,789,214 ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 1,339,155 $ 245,261 $ 2,648,232 =================== =================== =================== MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 319,215 $ 353,673 $ 348,936 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 16,566 16,498 18,045 -------------------- -------------------- -------------------- Net investment income (loss).................... 302,649 337,175 330,891 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (4,464) 3,029 19,763 -------------------- -------------------- -------------------- Net realized gains (losses)..................... (4,464) 3,029 19,763 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 143,123 (476,487) 185,906 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 138,659 (473,458) 205,669 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 441,308 $ (136,283) $ 536,560 ==================== ==================== ==================== MSF WMC BALANCED INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 6,099,011 $ 6,982,518 $ 6,071,412 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 1,647,006 1,536,230 1,471,028 -------------------- -------------------- -------------------- Net investment income (loss).................... 4,452,005 5,446,288 4,600,384 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 5,320,748 2,747,913 1,094,116 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 5,320,748 2,747,913 1,094,116 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 19,346,415 43,444,585 23,691,349 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 24,667,163 46,192,498 24,785,465 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 29,119,168 $ 51,638,786 $ 29,385,849 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 92 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 -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
MSF WMC CORE EQUITY OPPORTUNITIES INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends............................................ $ 508,892 $ 908,277 $ 475,355 ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges................... 57,279 53,237 49,148 ------------------- ------------------- ------------------- Net investment income (loss).................... 451,613 855,040 426,207 ------------------- ------------------- ------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 6,081,753 1,084,791 -- Realized gains (losses) on sale of investments....... 1,674,792 1,697,357 549,533 ------------------- ------------------- ------------------- Net realized gains (losses)..................... 7,756,545 2,782,148 549,533 ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments... (869,547) 15,346,828 5,763,493 ------------------- ------------------- ------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 6,886,998 18,128,976 6,313,026 ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 7,338,611 $ 18,984,016 $ 6,739,233 =================== =================== =================== OPPENHEIMER VA MAIN STREET SMALL CAP INVESTMENT DIVISION -------------------- 2014 (g) -------------------- INVESTMENT INCOME: Dividends............................................ $ -- -------------------- EXPENSES: Mortality and expense risk charges................... -- -------------------- Net investment income (loss).................... -- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- Realized gains (losses) on sale of investments....... -- -------------------- Net realized gains (losses)..................... -- -------------------- Change in unrealized gains (losses) on investments... 198 -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 198 -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 198 ==================== PIMCO VIT ALL ASSET INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 49,509 $ 21,748 $ 6,301 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 49,509 21,748 6,301 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 28 (591) 190 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 28 (591) 190 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (44,010) (24,638) 8,832 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (43,982) (25,229) 9,022 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 5,527 $ (3,481) $ 15,323 ==================== ==================== ==================== PIMCO VIT COMMODITY REALRETURN STRATEGY INVESTMENT DIVISION ------------------------------------------- 2014 2013 (d) ------------------- ------------------- INVESTMENT INCOME: Dividends............................................ $ 86 $ -- ------------------- ------------------- EXPENSES: Mortality and expense risk charges................... -- -- ------------------- ------------------- Net investment income (loss).................... 86 -- ------------------- ------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- Realized gains (losses) on sale of investments....... (39) (5) ------------------- ------------------- Net realized gains (losses)..................... (39) (5) ------------------- ------------------- Change in unrealized gains (losses) on investments... (10,088) (126) ------------------- ------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (10,127) (131) ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (10,041) $ (131) =================== ===================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 94 The accompanying notes are an integral part of these financial statements. 95 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
PIMCO VIT LOW DURATION INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 17,764 $ 22,872 $ 18,366 -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- --------------------- Net investment income (loss).................... 17,764 22,872 18,366 -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 512 3,304 1,749 -------------------- -------------------- --------------------- Net realized gains (losses)..................... 512 3,304 1,749 -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (4,896) (33,450) 34,493 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (4,384) (30,146) 36,242 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 13,380 $ (7,274) $ 54,608 ==================== ==================== ===================== PIONEER VCT MID CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 452 $ 425 $ 1,561 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- -------------------- -------------------- Net investment income (loss).................... 452 425 1,561 --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 6,866 -- -- Realized gains (losses) on sale of investments....... 1,056 29,038 595 --------------------- -------------------- -------------------- Net realized gains (losses)..................... 7,922 29,038 595 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 732 (1,134) 12,468 --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 8,654 27,904 13,063 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 9,106 $ 28,329 $ 14,624 ===================== ==================== ==================== PUTNAM VT INTERNATIONAL VALUE INVESTMENT DIVISION ------------------------------------------- 2014 2013 (b) -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 95 $ -- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -------------------- -------------------- Net investment income (loss).................... 95 -- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- Realized gains (losses) on sale of investments....... 46 10 -------------------- -------------------- Net realized gains (losses)..................... 46 10 -------------------- -------------------- Change in unrealized gains (losses) on investments... (775) 477 -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (729) 487 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (634) $ 487 ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 96 The accompanying notes are an integral part of these financial statements. 97 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
ROYCE MICRO-CAP INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ 38 $ -- -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- --------------------- -------------------- Net investment income (loss).................... -- 38 -- -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 657 197 8,060 Realized gains (losses) on sale of investments....... 13 87,518 1,017 -------------------- --------------------- -------------------- Net realized gains (losses)..................... 670 87,715 9,077 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (951) (23,953) 15,667 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (281) 63,762 24,744 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (281) $ 63,800 $ 24,744 ==================== ===================== ==================== ROYCE SMALL-CAP INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 64 $ 6,679 $ 586 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 64 6,679 586 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 5,932 34,717 13,477 Realized gains (losses) on sale of investments....... 105,416 34,201 22,187 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 111,348 68,918 35,664 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (144,191) 110,499 34,489 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (32,843) 179,417 70,153 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (32,779) $ 186,096 $ 70,739 ==================== ==================== ==================== UIF EMERGING MARKETS DEBT INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 66,166 $ 51,315 $ 16,821 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 66,166 51,315 16,821 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 9,104 15,729 -- Realized gains (losses) on sale of investments....... (26,242) (4,843) 2,466 -------------------- -------------------- -------------------- Net realized gains (losses)..................... (17,138) 10,886 2,466 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 6,462 (181,259) 89,788 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (10,676) (170,373) 92,254 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 55,490 $ (119,058) $ 109,075 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 98 The accompanying notes are an integral part of these financial statements. 99 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONCLUDED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
UIF EMERGING MARKETS EQUITY INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 4,726 $ 14,065 $ -- -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- --------------------- Net investment income (loss).................... 4,726 14,065 -- -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 14,990 6,766 (26) -------------------- -------------------- --------------------- Net realized gains (losses)..................... 14,990 6,766 (26) -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (166,226) (38,224) 139,206 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (151,236) (31,458) 139,180 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (146,510) $ (17,393) $ 139,180 ==================== ==================== ===================== WELLS FARGO VT TOTAL RETURN BOND INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 5,207 $ 4,298 $ 4,369 -------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- --------------------- --------------------- Net investment income (loss).................... 5,207 4,298 4,369 -------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- 9,579 6,160 Realized gains (losses) on sale of investments....... (1,528) 1,277 1,595 -------------------- --------------------- --------------------- Net realized gains (losses)..................... (1,528) 10,856 7,755 -------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... 12,966 (21,523) 5,968 -------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 11,438 (10,667) 13,723 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 16,645 $ (6,369) $ 18,092 ==================== ===================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 100 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 FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
ALLIANCEBERNSTEIN GLOBAL THEMATIC GROWTH INVESTMENT DIVISION ----------------------------------------------------------- 2014 2013 2012 ------------------- ------------------ ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- $ 13 $ -- Net realized gains (losses)......................... 1,302 (1,496) (1,307,724) Change in unrealized gains (losses) on investments.. 2,635 14,581 1,419,031 ------------------- ------------------ ------------------ Net increase (decrease) in net assets resulting from operations................................ 3,937 13,098 111,307 ------------------- ------------------ ------------------ POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,269 1,269 4,561 Net transfers (including fixed account)............. 13,633 6,694 (4,345,166) Policy charges...................................... (2,507) (2,064) (2,096) Transfers for policy benefits and terminations...... (6,798) (14,687) (445) ------------------- ------------------ ------------------ Net increase (decrease) in net assets resulting from policy transactions....................... 5,597 (8,788) (4,343,146) ------------------- ------------------ ------------------ Net increase (decrease) in net assets............. 9,534 4,310 (4,231,839) NET ASSETS: Beginning of year................................... 66,166 61,856 4,293,695 ------------------- ------------------ ------------------ End of year......................................... $ 75,700 $ 66,166 $ 61,856 =================== ================== ================== ALLIANCEBERNSTEIN INTERMEDIATE BOND INVESTMENT DIVISION ----------------------------------------------------------- 2014 2013 2012 ------------------ ------------------ ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,921 $ 1,888 $ 2,404 Net realized gains (losses)......................... 689 1,651 1,787 Change in unrealized gains (losses) on investments.. 952 (5,086) (188) ------------------ ------------------ ------------------- Net increase (decrease) in net assets resulting from operations................................ 3,562 (1,547) 4,003 ------------------ ------------------ ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 644 -- 8,926 Net transfers (including fixed account)............. 32 (42,312) 44,909 Policy charges...................................... (2,264) (1,794) (1,818) Transfers for policy benefits and terminations...... -- (32) (6) ------------------ ------------------ ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (1,588) (44,138) 52,011 ------------------ ------------------ ------------------- Net increase (decrease) in net assets............. 1,974 (45,685) 56,014 NET ASSETS: Beginning of year................................... 57,615 103,300 47,286 ------------------ ------------------ ------------------- End of year......................................... $ 59,589 $ 57,615 $ 103,300 ================== ================== =================== AMERICAN CENTURY VP CAPITAL APPRECIATION INVESTMENT DIVISION ------------------- 2014 (a) ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- Net realized gains (losses)......................... 12 Change in unrealized gains (losses) on investments.. 42 ------------------- Net increase (decrease) in net assets resulting from operations................................ 54 ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- Net transfers (including fixed account)............. 589 Policy charges...................................... (211) Transfers for policy benefits and terminations...... -- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 378 ------------------- Net increase (decrease) in net assets............. 432 NET ASSETS: Beginning of year................................... -- ------------------- End of year......................................... $ 432 =================== AMERICAN FUNDS BOND INVESTMENT DIVISION ----------------------------------------------------------- 2014 2013 2012 ------------------- ------------------ ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 106,624 $ 91,592 $ 123,941 Net realized gains (losses)......................... 6,927 62,302 27,506 Change in unrealized gains (losses) on investments.. 172,487 (282,587) 108,693 ------------------- ------------------ ------------------ Net increase (decrease) in net assets resulting from operations................................ 286,038 (128,693) 260,140 ------------------- ------------------ ------------------ POLICY TRANSACTIONS: Premium payments received from policy owners........ 623,827 663,938 681,465 Net transfers (including fixed account)............. 255,803 291,663 491,460 Policy charges...................................... (362,278) (373,489) (388,415) Transfers for policy benefits and terminations...... (416,749) (284,454) (359,799) ------------------- ------------------ ------------------ Net increase (decrease) in net assets resulting from policy transactions....................... 100,603 297,658 424,711 ------------------- ------------------ ------------------ Net increase (decrease) in net assets............. 386,641 168,965 684,851 NET ASSETS: Beginning of year................................... 5,589,275 5,420,310 4,735,459 ------------------- ------------------ ------------------ End of year......................................... $ 5,975,916 $ 5,589,275 $ 5,420,310 =================== ================== ==================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 102 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, 2014, 2013 AND 2012
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (6,851) $ 481,756 $ 681,533 Net realized gains (losses)......................... 1,349,400 556,105 (342,892) Change in unrealized gains (losses) on investments.. 96,482 15,213,508 9,028,936 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 1,439,031 16,251,369 9,367,577 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,749,295 6,319,815 6,754,997 Net transfers (including fixed account)............. (675,673) (1,380,353) (1,743,129) Policy charges...................................... (3,816,323) (3,857,829) (3,801,507) Transfers for policy benefits and terminations...... (4,204,832) (4,504,188) (3,815,121) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,947,533) (3,422,555) (2,604,760) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (1,508,502) 12,828,814 6,762,817 NET ASSETS: Beginning of year................................... 72,066,620 59,237,806 52,474,989 -------------------- -------------------- -------------------- End of year......................................... $ 70,558,118 $ 72,066,620 $ 59,237,806 ==================== ==================== ==================== AMERICAN FUNDS GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,134,555 $ 1,225,604 $ 879,818 Net realized gains (losses)......................... 11,523,746 2,872,251 1,170,827 Change in unrealized gains (losses) on investments.. 413,436 34,086,809 18,556,699 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 13,071,737 38,184,664 20,607,344 --------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 12,033,016 12,807,035 13,860,300 Net transfers (including fixed account)............. (1,562,797) (2,855,702) (3,812,042) Policy charges...................................... (8,831,204) (8,755,241) (8,845,036) Transfers for policy benefits and terminations...... (10,353,575) (9,748,734) (9,088,854) --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (8,714,560) (8,552,642) (7,885,632) --------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 4,357,177 29,632,022 12,721,712 NET ASSETS: Beginning of year................................... 160,553,244 130,921,222 118,199,510 --------------------- -------------------- -------------------- End of year......................................... $ 164,910,421 $ 160,553,244 $ 130,921,222 ===================== ==================== ==================== AMERICAN FUNDS GROWTH-INCOME INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,235,698 $ 1,145,692 $ 1,175,138 Net realized gains (losses)......................... 7,216,223 1,441,252 300,932 Change in unrealized gains (losses) on investments.. 1,935,227 23,374,516 10,629,027 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 10,387,148 25,961,460 12,105,097 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 7,556,304 8,145,719 8,728,377 Net transfers (including fixed account)............. (746,690) (404,802) (1,135,580) Policy charges...................................... (5,923,496) (5,713,396) (5,615,768) Transfers for policy benefits and terminations...... (6,455,691) (6,390,541) (5,724,226) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (5,569,573) (4,363,020) (3,747,197) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 4,817,575 21,598,440 8,357,900 NET ASSETS: Beginning of year................................... 101,213,157 79,614,717 71,256,817 -------------------- -------------------- -------------------- End of year......................................... $ 106,030,732 $ 101,213,157 $ 79,614,717 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 104 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, 2014, 2013 AND 2012
AMERICAN FUNDS INTERNATIONAL INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 9,668 $ 7,749 $ 7,535 Net realized gains (losses)......................... 3,059 27,615 (1,402) Change in unrealized gains (losses) on investments.. (30,549) 63,361 82,398 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (17,822) 98,725 88,531 -------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 19,466 4,396 46,649 Net transfers (including fixed account)............. 22,024 63,675 (25,495) Policy charges...................................... (10,594) (9,192) (12,774) Transfers for policy benefits and terminations...... (16,461) (24,265) (69,569) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 14,435 34,614 (61,189) -------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (3,387) 133,339 27,342 NET ASSETS: Beginning of year................................... 685,392 552,053 524,711 -------------------- -------------------- --------------------- End of year......................................... $ 682,005 $ 685,392 $ 552,053 ==================== ==================== ===================== AMERICAN FUNDS U.S. GOVERNMENT/AAA-RATED SECURITIES INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 520 $ 317 $ 440 Net realized gains (losses)......................... (30) 1,230 1,510 Change in unrealized gains (losses) on investments.. 1,820 (2,996) (1,126) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 2,310 (1,449) 824 -------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,253 4,239 6,275 Net transfers (including fixed account)............. -- 289 -- Policy charges...................................... (1,489) (1,787) (1,867) Transfers for policy benefits and terminations...... (6) -- (5,579) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (242) 2,741 (1,171) -------------------- -------------------- --------------------- Net increase (decrease) in net assets............. 2,068 1,292 (347) NET ASSETS: Beginning of year................................... 46,484 45,192 45,539 -------------------- -------------------- --------------------- End of year......................................... $ 48,552 $ 46,484 $ 45,192 ==================== ==================== ===================== DREYFUS VIF INTERNATIONAL VALUE INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 3,201 $ 4,021 $ 4,882 Net realized gains (losses)......................... (210) (906) (1,011) Change in unrealized gains (losses) on investments.. (26,366) 42,909 18,857 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (23,375) 46,024 22,728 --------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- 895 Net transfers (including fixed account)............. -- (2,380) 6 Policy charges...................................... (2,373) (2,445) (2,557) Transfers for policy benefits and terminations...... -- (15) -- --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,373) (4,840) (1,656) --------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (25,748) 41,184 21,072 NET ASSETS: Beginning of year................................... 246,317 205,133 184,061 --------------------- -------------------- -------------------- End of year......................................... $ 220,569 $ 246,317 $ 205,133 ===================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 106 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, 2014, 2013 AND 2012
FIDELITY VIP ASSET MANAGER: GROWTH INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 20,809 $ 16,073 $ 24,972 Net realized gains (losses)......................... 35,424 115,489 35,697 Change in unrealized gains (losses) on investments.. 59,690 260,059 172,026 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 115,923 391,621 232,695 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 105,211 116,700 122,067 Net transfers (including fixed account)............. 60,739 (143,822) 249,730 Policy charges...................................... (76,841) (76,211) (68,776) Transfers for policy benefits and terminations...... (47,777) (324,598) -- --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 41,332 (427,931) 303,021 --------------------- --------------------- --------------------- Net increase (decrease) in net assets............. 157,255 (36,310) 535,716 NET ASSETS: Beginning of year................................... 1,929,922 1,966,232 1,430,516 --------------------- --------------------- --------------------- End of year......................................... $ 2,087,177 $ 1,929,922 $ 1,966,232 ===================== ===================== ===================== FIDELITY VIP CONTRAFUND INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 24,338 $ 23,521 $ 28,837 Net realized gains (losses)......................... 118,141 147,133 38,806 Change in unrealized gains (losses) on investments.. 174,211 505,651 288,092 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 316,690 676,305 355,735 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 105,425 94,804 127,751 Net transfers (including fixed account)............. (10,694) (270,104) (78,043) Policy charges...................................... (90,082) (97,806) (99,800) Transfers for policy benefits and terminations...... (58,177) (95,919) (114,270) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (53,528) (369,025) (164,362) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............. 263,162 307,280 191,373 NET ASSETS: Beginning of year................................... 2,650,302 2,343,022 2,151,649 --------------------- --------------------- --------------------- End of year......................................... $ 2,913,464 $ 2,650,302 $ 2,343,022 ===================== ===================== ===================== FIDELITY VIP EQUITY-INCOME INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 687 $ 752 $ 1,836 Net realized gains (losses)......................... 1,056 4,118 3,239 Change in unrealized gains (losses) on investments.. 37 3,227 (1,146) --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 1,780 8,097 3,929 --------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,877 7,468 1,366 Net transfers (including fixed account)............. (11,506) (43,901) 39,024 Policy charges...................................... (409) (491) (617) Transfers for policy benefits and terminations...... (1) -- -- --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (10,039) (36,924) 39,773 --------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (8,259) (28,827) 43,702 NET ASSETS: Beginning of year................................... 33,464 62,291 18,589 --------------------- -------------------- -------------------- End of year......................................... $ 25,205 $ 33,464 $ 62,291 ===================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 108 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, 2014, 2013 AND 2012
FIDELITY VIP FREEDOM 2010 INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 746 $ 563 $ 564 Net realized gains (losses)......................... 3,453 665 633 Change in unrealized gains (losses) on investments.. (2,030) 3,994 2,707 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 2,169 5,222 3,904 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 53,609 2,634 2,629 Net transfers (including fixed account)............. -- -- 210 Policy charges...................................... -- -- -- Transfers for policy benefits and terminations...... (53,906) (1,252) (1,249) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (297) 1,382 1,590 --------------------- --------------------- --------------------- Net increase (decrease) in net assets............. 1,872 6,604 5,494 NET ASSETS: Beginning of year................................... 46,242 39,638 34,144 --------------------- --------------------- --------------------- End of year......................................... $ 48,114 $ 46,242 $ 39,638 ===================== ===================== ===================== FIDELITY VIP FREEDOM 2020 INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 16,169 $ 16,012 $ 14,905 Net realized gains (losses)......................... 38,833 21,982 14,637 Change in unrealized gains (losses) on investments.. (8,502) 93,753 62,352 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 46,500 131,747 91,894 -------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 113,318 13,583 13,429 Net transfers (including fixed account)............. -- 94,207 (20,603) Policy charges...................................... (12,214) (11,540) (10,886) Transfers for policy benefits and terminations...... (140,759) (15,006) (8,824) -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (39,655) 81,244 (26,884) -------------------- --------------------- --------------------- Net increase (decrease) in net assets............. 6,845 212,991 65,010 NET ASSETS: Beginning of year................................... 977,715 764,724 699,714 -------------------- --------------------- --------------------- End of year......................................... $ 984,560 $ 977,715 $ 764,724 ==================== ===================== ===================== FIDELITY VIP FREEDOM 2025 INVESTMENT DIVISION --------------------------------------------- 2014 2013 (b) --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 613 $ 694 Net realized gains (losses)......................... 1,235 413 Change in unrealized gains (losses) on investments.. 73 3,626 --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 1,921 4,733 --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- Net transfers (including fixed account)............. -- 38,425 Policy charges...................................... (4,514) (2,977) Transfers for policy benefits and terminations...... -- -- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (4,514) 35,448 --------------------- --------------------- Net increase (decrease) in net assets............. (2,593) 40,181 NET ASSETS: Beginning of year................................... 40,181 -- --------------------- --------------------- End of year......................................... $ 37,588 $ 40,181 ===================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 110 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, 2014, 2013 AND 2012
FIDELITY VIP FREEDOM 2030 INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,195 $ 763 $ 665 Net realized gains (losses)......................... 13,333 3,547 3,280 Change in unrealized gains (losses) on investments.. (10,096) 5,619 3,591 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 4,432 9,929 7,536 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 197,624 8,643 1,320 Net transfers (including fixed account)............. (1,696) 618 (21,760) Policy charges...................................... -- -- -- Transfers for policy benefits and terminations...... (180,726) -- (1,232) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 15,202 9,261 (21,672) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............. 19,634 19,190 (14,136) NET ASSETS: Beginning of year................................... 62,024 42,834 56,970 --------------------- --------------------- --------------------- End of year......................................... $ 81,658 $ 62,024 $ 42,834 ===================== ===================== ===================== FIDELITY VIP FREEDOM 2040 INVESTMENT DIVISION --------------------------------------------- 2014 2013 (c) -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 767 $ 153 Net realized gains (losses)......................... 1,236 80 Change in unrealized gains (losses) on investments.. (709) 545 -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 1,294 778 -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 138,827 4,187 Net transfers (including fixed account)............. -- 6,866 Policy charges...................................... -- -- Transfers for policy benefits and terminations...... (98,455) -- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 40,372 11,053 -------------------- --------------------- Net increase (decrease) in net assets............. 41,666 11,831 NET ASSETS: Beginning of year................................... 11,831 -- -------------------- --------------------- End of year......................................... $ 53,497 $ 11,831 ==================== ===================== FIDELITY VIP FREEDOM 2050 INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 355 $ 195 $ 283 Net realized gains (losses)......................... 6,639 323 2,160 Change in unrealized gains (losses) on investments.. (5,093) 4,037 199 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 1,901 4,555 2,642 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 91,003 13 -- Net transfers (including fixed account)............. -- -- -- Policy charges...................................... -- -- -- Transfers for policy benefits and terminations...... (88,212) (353) (281) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 2,791 (340) (281) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............. 4,692 4,215 2,361 NET ASSETS: Beginning of year................................... 22,014 17,799 15,438 --------------------- --------------------- --------------------- End of year......................................... $ 26,706 $ 22,014 $ 17,799 ===================== ===================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 112 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, 2014, 2013 AND 2012
FIDELITY VIP HIGH INCOME INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 10,183 $ 9,677 $ 9,229 Net realized gains (losses)......................... 158 73 67 Change in unrealized gains (losses) on investments.. (8,210) (126) (1,277) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 2,131 9,624 8,019 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 3,323 -- 1,301 Net transfers (including fixed account)............. 3,881 70 115,054 Policy charges...................................... (5,057) (4,648) (2,451) Transfers for policy benefits and terminations...... (91) (2,200) -- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 2,056 (6,778) 113,904 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 4,187 2,846 121,923 NET ASSETS: Beginning of year................................... 167,992 165,146 43,223 -------------------- -------------------- -------------------- End of year......................................... $ 172,179 $ 167,992 $ 165,146 ==================== ==================== ==================== FIDELITY VIP INVESTMENT GRADE BOND INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 26,958 $ 39,909 $ 37,562 Net realized gains (losses)......................... (15,735) (7,423) 81,674 Change in unrealized gains (losses) on investments.. 77,902 (76,349) (8,975) --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 89,125 (43,863) 110,261 --------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 829 2,145 829 Net transfers (including fixed account)............. (509,895) (522,146) 464,291 Policy charges...................................... (17,492) (21,723) (27,932) Transfers for policy benefits and terminations...... (5,265) -- (9,509) --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (531,823) (541,724) 427,679 --------------------- --------------------- -------------------- Net increase (decrease) in net assets............. (442,698) (585,587) 537,940 NET ASSETS: Beginning of year................................... 1,700,205 2,285,792 1,747,852 --------------------- --------------------- -------------------- End of year......................................... $ 1,257,507 $ 1,700,205 $ 2,285,792 ===================== ===================== ==================== FIDELITY VIP MID CAP INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 48 $ 613 $ 2,865 Net realized gains (losses)......................... 10,492 208,214 67,641 Change in unrealized gains (losses) on investments.. 4,318 1,232 20,392 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 14,858 210,059 90,898 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 7,147 -- 78,618 Net transfers (including fixed account)............. (62) (635,978) 25,075 Policy charges...................................... (3,945) (15,043) (15,222) Transfers for policy benefits and terminations...... (12,748) (58,870) (44,408) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (9,608) (709,891) 44,063 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 5,250 (499,832) 134,961 NET ASSETS: Beginning of year................................... 249,087 748,919 613,958 -------------------- -------------------- -------------------- End of year......................................... $ 254,337 $ 249,087 $ 748,919 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 114 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, 2014, 2013 AND 2012
FTVIPT FRANKLIN INCOME VIP INVESTMENT DIVISION ------------------------------------------- 2014 2013 (d) -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 385 $ -- Net realized gains (losses)......................... (51) 3 Change in unrealized gains (losses) on investments.. (1,084) 8 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (750) 11 -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,936 23 Net transfers (including fixed account)............. 24,540 595 Policy charges...................................... (1,188) (10) Transfers for policy benefits and terminations...... -- (1) -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 25,288 607 -------------------- -------------------- Net increase (decrease) in net assets............. 24,538 618 NET ASSETS: Beginning of year................................... 618 -- -------------------- -------------------- End of year......................................... $ 25,156 $ 618 ==================== ==================== FTVIPT FRANKLIN MUTUAL GLOBAL DISCOVERY VIP INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 10,690 $ 19,686 $ 21,682 Net realized gains (losses)......................... 43,600 141,155 49,608 Change in unrealized gains (losses) on investments.. (24,521) 47,244 33,439 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 29,769 208,085 104,729 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 10,410 10,185 83,607 Net transfers (including fixed account)............. 8,747 (460,707) (97,388) Policy charges...................................... (16,960) (21,702) (22,528) Transfers for policy benefits and terminations...... (38,467) (44,103) (49,079) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (36,270) (516,327) (85,388) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (6,501) (308,242) 19,341 NET ASSETS: Beginning of year................................... 494,934 803,176 783,835 -------------------- -------------------- -------------------- End of year......................................... $ 488,433 $ 494,934 $ 803,176 ==================== ==================== ==================== FTVIPT FRANKLIN MUTUAL SHARES VIP INVESTMENT DIVISION ------------------------------------------- 2014 2013 (d) -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 789 $ 445 Net realized gains (losses)......................... 464 105 Change in unrealized gains (losses) on investments.. 1,131 2,000 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 2,384 2,550 -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 4,760 776 Net transfers (including fixed account)............. 14,220 21,718 Policy charges...................................... (3,194) (833) Transfers for policy benefits and terminations...... -- (3) -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 15,786 21,658 -------------------- -------------------- Net increase (decrease) in net assets............. 18,170 24,208 NET ASSETS: Beginning of year................................... 24,208 -- -------------------- -------------------- End of year......................................... $ 42,378 $ 24,208 ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 116 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, 2014, 2013 AND 2012
FTVIPT TEMPLETON FOREIGN VIP INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 78,379 $ 98,174 $ 115,174 Net realized gains (losses)......................... 156,830 73,110 (16,852) Change in unrealized gains (losses) on investments.. (709,096) 689,874 501,451 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (473,887) 861,158 599,773 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 338,970 285,991 303,212 Net transfers (including fixed account)............. 2,058,544 70,380 178,098 Policy charges...................................... (168,065) (155,044) (140,398) Transfers for policy benefits and terminations...... (813,885) (619,261) -- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 1,415,564 (417,934) 340,912 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 941,677 443,224 940,685 NET ASSETS: Beginning of year................................... 4,405,694 3,962,470 3,021,785 -------------------- -------------------- -------------------- End of year......................................... $ 5,347,371 $ 4,405,694 $ 3,962,470 ==================== ==================== ==================== FTVIPT TEMPLETON GLOBAL BOND VIP INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 ------------------- ------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 65,826 $ 20,975 $ 24,244 Net realized gains (losses)......................... (644) 6,447 352 Change in unrealized gains (losses) on investments.. (38,430) (6,052) 26,566 ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 26,752 21,370 51,162 ------------------- ------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 15,639 16,330 41,308 Net transfers (including fixed account)............. (47,291) 881,830 73,730 Policy charges...................................... (34,683) (20,444) (10,633) Transfers for policy benefits and terminations...... (41,236) (23,473) (2,811) ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (107,571) 854,243 101,594 ------------------- ------------------- -------------------- Net increase (decrease) in net assets............. (80,819) 875,613 152,756 NET ASSETS: Beginning of year................................... 1,317,714 442,101 289,345 ------------------- ------------------- -------------------- End of year......................................... $ 1,236,895 $ 1,317,714 $ 442,101 =================== =================== ==================== GOLDMAN SACHS MID-CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,932 $ 2,312 $ 2,932 Net realized gains (losses)......................... 56,312 32,251 (683) Change in unrealized gains (losses) on investments.. (21,021) 43,303 45,178 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 38,223 77,866 47,427 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- -- Net transfers (including fixed account)............. -- (24,951) -- Policy charges...................................... (9,236) (9,102) (8,787) Transfers for policy benefits and terminations...... (23,589) (6,108) (48,734) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (32,825) (40,161) (57,521) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 5,398 37,705 (10,094) NET ASSETS: Beginning of year................................... 295,859 258,154 268,248 -------------------- -------------------- -------------------- End of year......................................... $ 301,257 $ 295,859 $ 258,154 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 118 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, 2014, 2013 AND 2012
GOLDMAN SACHS SMALL CAP EQUITY INSIGHTS INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 277 $ 373 $ 308 Net realized gains (losses)......................... 6,915 5,748 5,427 Change in unrealized gains (losses) on investments.. (4,589) 3,869 (629) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 2,603 9,990 5,106 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,186 1,542 4,965 Net transfers (including fixed account)............. (5,501) 6,458 (32,037) Policy charges...................................... (3,679) (2,827) (1,976) Transfers for policy benefits and terminations...... (26) -- -- --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (7,020) 5,173 (29,048) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ (4,417) 15,163 (23,942) NET ASSETS: Beginning of year................................... 41,480 26,317 50,259 --------------------- --------------------- --------------------- End of year......................................... $ 37,063 $ 41,480 $ 26,317 ===================== ===================== ===================== INVESCO V.I. COMSTOCK INVESTMENT DIVISION ---------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 3,587 $ 4,077 $ 3,483 Net realized gains (losses)......................... 2,447 1,475 1,338 Change in unrealized gains (losses) on investments.. 22,523 78,224 32,459 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 28,557 83,776 37,280 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,792 -- 26,415 Net transfers (including fixed account)............. 9,094 165 (11,358) Policy charges...................................... (7,120) (5,972) (5,093) Transfers for policy benefits and terminations...... (20) -- -- --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 3,746 (5,807) 9,964 --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ 32,303 77,969 47,244 NET ASSETS: Beginning of year................................... 315,275 237,306 190,062 --------------------- --------------------- --------------------- End of year......................................... $ 347,578 $ 315,275 $ 237,306 ===================== ===================== ===================== INVESCO V.I. GOVERNMENT SECURITIES INVESTMENT DIVISION ---------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 198 $ 367 $ -- Net realized gains (losses)......................... (416) (1) 1,308 Change in unrealized gains (losses) on investments.. 527 (529) (1,335) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 309 (163) (27) --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- 1,119 -- Net transfers (including fixed account)............. (6,878) 9,806 (21,034) Policy charges...................................... (74) (57) (119) Transfers for policy benefits and terminations...... (4,289) -- -- --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (11,241) 10,868 (21,153) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ (10,932) 10,705 (21,180) NET ASSETS: Beginning of year................................... 11,016 311 21,491 --------------------- --------------------- --------------------- End of year......................................... $ 84 $ 11,016 $ 311 ===================== ===================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 120 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, 2014, 2013 AND 2012
INVESCO V.I. INTERNATIONAL GROWTH INVESTMENT DIVISION ---------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 5,421 $ 4,576 $ 90,329 Net realized gains (losses)......................... 5,138 926,281 18,589 Change in unrealized gains (losses) on investments.. (10,871) (647,277) 685,032 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (312) 283,580 793,950 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- 1,064,864 Net transfers (including fixed account)............. 12,366 (6,300,567) 4,933,992 Policy charges...................................... (15,500) (60,067) (310,061) Transfers for policy benefits and terminations...... (45,248) (29,907) -- --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (48,382) (6,390,541) 5,688,795 --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ (48,694) (6,106,961) 6,482,745 NET ASSETS: Beginning of year................................... 399,191 6,506,152 23,407 --------------------- --------------------- --------------------- End of year......................................... $ 350,497 $ 399,191 $ 6,506,152 ===================== ===================== ===================== JANUS ASPEN BALANCED INVESTMENT DIVISION ---------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 16,228 $ 13,254 $ 27,163 Net realized gains (losses)......................... 37,470 80,275 115,247 Change in unrealized gains (losses) on investments.. 30,740 94,265 25,664 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 84,438 187,794 168,074 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 43,455 32,790 153,325 Net transfers (including fixed account)............. 39,697 (213,385) (463,753) Policy charges...................................... (34,009) (36,051) (37,906) Transfers for policy benefits and terminations...... (43,432) (78,995) (58,979) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 5,711 (295,641) (407,313) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ 90,149 (107,847) (239,239) NET ASSETS: Beginning of year................................... 992,702 1,100,549 1,339,788 --------------------- --------------------- --------------------- End of year......................................... $ 1,082,851 $ 992,702 $ 1,100,549 ===================== ===================== ===================== JANUS ASPEN FORTY INVESTMENT DIVISION ---------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 252 $ 4,954 $ 5,152 Net realized gains (losses)......................... 312,178 69,285 38,660 Change in unrealized gains (losses) on investments.. (248,123) 155,845 126,343 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 64,307 230,084 170,155 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 17,929 18,835 86,108 Net transfers (including fixed account)............. (352,405) (2,646) (41,907) Policy charges...................................... (23,445) (24,771) (29,645) Transfers for policy benefits and terminations...... (25,992) (239,346) -- --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (383,913) (247,928) 14,556 --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ (319,606) (17,844) 184,711 NET ASSETS: Beginning of year................................... 870,003 887,847 703,136 --------------------- --------------------- --------------------- End of year......................................... $ 550,397 $ 870,003 $ 887,847 ===================== ===================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 122 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, 2014, 2013 AND 2012
JANUS ASPEN JANUS INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,630 $ 6,858 $ 5,213 Net realized gains (losses)......................... 41,098 258,951 29,069 Change in unrealized gains (losses) on investments.. 12,182 (62,054) 122,884 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 54,910 203,755 157,166 --------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 11,134 1,427 19,037 Net transfers (including fixed account)............. -- (664,858) (14,200) Policy charges...................................... (15,340) (33,550) (41,868) Transfers for policy benefits and terminations...... (9,982) (39,166) (6,552) --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (14,188) (736,147) (43,583) --------------------- -------------------- --------------------- Net increase (decrease) in net assets............. 40,722 (532,392) 113,583 NET ASSETS: Beginning of year................................... 439,285 971,677 858,094 --------------------- -------------------- --------------------- End of year......................................... $ 480,007 $ 439,285 $ 971,677 ===================== ==================== ===================== JANUS ASPEN OVERSEAS INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,960 $ 11,835 $ 2,519 Net realized gains (losses)......................... 2,312 (73,759) 36,365 Change in unrealized gains (losses) on investments.. (10,605) 113,083 8,927 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (6,333) 51,159 47,811 -------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,199 5,947 72,495 Net transfers (including fixed account)............. -- (367,128) (60) Policy charges...................................... (9,034) (17,659) (20,490) Transfers for policy benefits and terminations...... (11,226) (45,425) (1,949) -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (15,061) (424,265) 49,996 -------------------- --------------------- -------------------- Net increase (decrease) in net assets............. (21,394) (373,106) 97,807 NET ASSETS: Beginning of year................................... 68,836 441,942 344,135 -------------------- --------------------- -------------------- End of year......................................... $ 47,442 $ 68,836 $ 441,942 ==================== ===================== ==================== MFS VIT GLOBAL EQUITY INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 974 $ 1,253 $ 61 Net realized gains (losses)......................... 4,384 550 428 Change in unrealized gains (losses) on investments.. 1,213 37,978 6,795 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 6,571 39,781 7,284 --------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 938 1,231 2,223 Net transfers (including fixed account)............. 329 12,710 121,236 Policy charges...................................... (3,867) (3,432) (579) Transfers for policy benefits and terminations...... -- (398) (150) --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,600) 10,111 122,730 --------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 3,971 49,892 130,014 NET ASSETS: Beginning of year................................... 185,320 135,428 5,414 --------------------- -------------------- -------------------- End of year......................................... $ 189,291 $ 185,320 $ 135,428 ===================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 124 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, 2014, 2013 AND 2012
MFS VIT NEW DISCOVERY INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- $ -- $ -- Net realized gains (losses)......................... 46,796 3,681 16,176 Change in unrealized gains (losses) on investments.. (63,957) 65,025 11,186 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (17,161) 68,706 27,362 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- 25,604 Net transfers (including fixed account)............. -- -- 1,556 Policy charges...................................... (6,047) (5,593) (4,934) Transfers for policy benefits and terminations...... (56) (4,981) -- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (6,103) (10,574) 22,226 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (23,264) 58,132 49,588 NET ASSETS: Beginning of year................................... 230,115 171,983 122,395 -------------------- -------------------- -------------------- End of year......................................... $ 206,851 $ 230,115 $ 171,983 ==================== ==================== ==================== MFS VIT VALUE INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 285 $ 197 $ 668 Net realized gains (losses)......................... 1,241 384 3,543 Change in unrealized gains (losses) on investments.. 559 5,315 2,241 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 2,085 5,896 6,452 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- -- Net transfers (including fixed account)............. 166 5 -- Policy charges...................................... (1,886) (1,361) (2,417) Transfers for policy benefits and terminations...... -- -- (31,172) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (1,720) (1,356) (33,589) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 365 4,540 (27,137) NET ASSETS: Beginning of year................................... 21,702 17,162 44,299 -------------------- -------------------- -------------------- End of year......................................... $ 22,067 $ 21,702 $ 17,162 ==================== ==================== ==================== MFS VIT II HIGH YIELD INVESTMENT DIVISION ------------------------------------------- 2014 2013 (e) -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 8,003 $ 3,270 Net realized gains (losses)......................... 25 (3) Change in unrealized gains (losses) on investments.. (4,175) 2,275 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 3,853 5,542 -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- 671 Net transfers (including fixed account)............. (4,330) 143,861 Policy charges...................................... (2,228) (713) Transfers for policy benefits and terminations...... (2,771) -- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (9,329) 143,819 -------------------- -------------------- Net increase (decrease) in net assets............. (5,476) 149,361 NET ASSETS: Beginning of year................................... 149,361 -- -------------------- -------------------- End of year......................................... $ 143,885 $ 149,361 ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 126 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, 2014, 2013 AND 2012
MIST ALLIANCEBERNSTEIN GLOBAL DYNAMIC ALLOCATION INVESTMENT DIVISION ----------------------------------------------------------- 2014 2013 2012 (f) ------------------ ------------------ ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 860 $ 139 $ -- Net realized gains (losses)......................... 991 298 -- Change in unrealized gains (losses) on investments.. 1,384 1,389 163 ------------------ ------------------ ------------------- Net increase (decrease) in net assets resulting from operations................................ 3,235 1,826 163 ------------------ ------------------ ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 11,361 11,934 1,541 Net transfers (including fixed account)............. 7,219 18,582 5,907 Policy charges...................................... (5,606) (3,960) (513) Transfers for policy benefits and terminations...... (552) (1,244) -- ------------------ ------------------ ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 12,422 25,312 6,935 ------------------ ------------------ ------------------- Net increase (decrease) in net assets............. 15,657 27,138 7,098 NET ASSETS: Beginning of year................................... 34,236 7,098 -- ------------------ ------------------ ------------------- End of year......................................... $ 49,893 $ 34,236 $ 7,098 ================== ================== =================== MIST ALLIANZ GLOBAL INVESTORS DYNAMIC MULTI-ASSET PLUS INVESTMENT DIVISION ------------------- 2014 (a) ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- Net realized gains (losses)......................... 1 Change in unrealized gains (losses) on investments.. 1 ------------------- Net increase (decrease) in net assets resulting from operations................................ 2 ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 104 Net transfers (including fixed account)............. 19 Policy charges...................................... (48) Transfers for policy benefits and terminations...... (1) ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 74 ------------------- Net increase (decrease) in net assets............. 76 NET ASSETS: Beginning of year................................... -- ------------------- End of year......................................... $ 76 =================== MIST AMERICAN FUNDS BALANCED ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------ 2014 2013 2012 ------------------ ------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 13,034 $ 11,592 $ 10,680 Net realized gains (losses)......................... 84,942 47,865 9,312 Change in unrealized gains (losses) on investments.. (47,376) 62,896 50,640 ------------------ ------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ 50,600 122,353 70,632 ------------------ ------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 120,077 104,324 95,603 Net transfers (including fixed account)............. (11,952) (8,323) 9,483 Policy charges...................................... (53,306) (50,440) (41,140) Transfers for policy benefits and terminations...... (19,004) (9,074) (19,150) ------------------ ------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 35,815 36,487 44,796 ------------------ ------------------- ------------------- Net increase (decrease) in net assets............. 86,415 158,840 115,428 NET ASSETS: Beginning of year................................... 790,263 631,423 515,995 ------------------ ------------------- ------------------- End of year......................................... $ 876,678 $ 790,263 $ 631,423 ================== =================== =================== MIST AMERICAN FUNDS GROWTH ALLOCATION INVESTMENT DIVISION ---------------------------------------------------------- 2014 2013 2012 ------------------ ------------------ ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 20,605 $ 16,414 $ 13,384 Net realized gains (losses)......................... 262,844 105,044 16,384 Change in unrealized gains (losses) on investments.. (180,168) 172,370 96,877 ------------------ ------------------ ------------------ Net increase (decrease) in net assets resulting from operations................................ 103,281 293,828 126,645 ------------------ ------------------ ------------------ POLICY TRANSACTIONS: Premium payments received from policy owners........ 260,494 478,064 256,426 Net transfers (including fixed account)............. (3,533) 77,933 39,236 Policy charges...................................... (136,198) (121,468) (109,463) Transfers for policy benefits and terminations...... (219,541) (164,501) (167,111) ------------------ ------------------ ------------------ Net increase (decrease) in net assets resulting from policy transactions....................... (98,778) 270,028 19,088 ------------------ ------------------ ------------------ Net increase (decrease) in net assets............. 4,503 563,856 145,733 NET ASSETS: Beginning of year................................... 1,490,834 926,978 781,245 ------------------ ------------------ ------------------ End of year......................................... $ 1,495,337 $ 1,490,834 $ 926,978 ================== ================== ==================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 128 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, 2014, 2013 AND 2012
MIST AMERICAN FUNDS MODERATE ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 15,920 $ 14,487 $ 10,434 Net realized gains (losses)......................... 82,935 45,176 11,099 Change in unrealized gains (losses) on investments.. (41,113) 36,688 29,635 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 57,742 96,351 51,168 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 248,387 259,807 224,194 Net transfers (including fixed account)............. 17,382 85,500 22,347 Policy charges...................................... (114,645) (99,597) (81,784) Transfers for policy benefits and terminations...... (63,090) (54,826) (29,845) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 88,034 190,884 134,912 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 145,776 287,235 186,080 NET ASSETS: Beginning of year................................... 874,921 587,686 401,606 -------------------- -------------------- -------------------- End of year......................................... $ 1,020,697 $ 874,921 $ 587,686 ==================== ==================== ==================== MIST AQR GLOBAL RISK BALANCED INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 (f) -------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- $ 1,949 $ -- Net realized gains (losses)......................... 126 3,801 (28) Change in unrealized gains (losses) on investments.. 5,443 (10,413) 375 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 5,569 (4,663) 347 -------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 59,198 65,813 2,706 Net transfers (including fixed account)............. (15,436) 81,910 22,769 Policy charges...................................... (22,230) (14,930) (1,026) Transfers for policy benefits and terminations...... -- -- (12) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 21,532 132,793 24,437 -------------------- -------------------- --------------------- Net increase (decrease) in net assets............. 27,101 128,130 24,784 NET ASSETS: Beginning of year................................... 152,914 24,784 -- -------------------- -------------------- --------------------- End of year......................................... $ 180,015 $ 152,914 $ 24,784 ==================== ==================== ===================== MIST BLACKROCK GLOBAL TACTICAL STRATEGIES INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 (f) -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,792 $ 951 $ -- Net realized gains (losses)......................... 8,814 1,775 51 Change in unrealized gains (losses) on investments.. (1,686) 4,911 878 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 8,920 7,637 929 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 71,428 28,258 5,304 Net transfers (including fixed account)............. 30,488 42,849 34,552 Policy charges...................................... (18,675) (11,540) (1,705) Transfers for policy benefits and terminations...... (3,178) (3,708) (2) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 80,063 55,859 38,149 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 88,983 63,496 39,078 NET ASSETS: Beginning of year................................... 102,574 39,078 -- -------------------- -------------------- -------------------- End of year......................................... $ 191,557 $ 102,574 $ 39,078 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 130 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, 2014, 2013 AND 2012
MIST CLARION GLOBAL REAL ESTATE INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 480,465 $ 1,852,443 $ 469,650 Net realized gains (losses)......................... 314,419 (121,862) (282,095) Change in unrealized gains (losses) on investments.. 3,062,383 (768,686) 4,988,577 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 3,857,267 961,895 5,176,132 -------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,319,909 2,495,640 2,592,509 Net transfers (including fixed account)............. 1,111,969 1,467,986 1,803,836 Policy charges...................................... (1,557,429) (1,572,434) (1,523,067) Transfers for policy benefits and terminations...... (1,760,827) (1,938,690) (1,526,479) -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 113,622 452,502 1,346,799 -------------------- --------------------- -------------------- Net increase (decrease) in net assets............. 3,970,889 1,414,397 6,522,931 NET ASSETS: Beginning of year................................... 27,497,715 26,083,318 19,560,387 -------------------- --------------------- -------------------- End of year......................................... $ 31,468,604 $ 27,497,715 $ 26,083,318 ==================== ===================== ==================== MIST CLEARBRIDGE AGGRESSIVE GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 36,831 $ 59,517 $ 20,415 Net realized gains (losses)......................... 867,002 455,065 171,678 Change in unrealized gains (losses) on investments.. 5,750,935 6,062,472 2,107,124 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 6,654,768 6,577,054 2,299,217 -------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,789,219 1,403,269 1,437,587 Net transfers (including fixed account)............. 20,585,269 1,633,069 70,510 Policy charges...................................... (2,040,428) (1,055,732) (965,403) Transfers for policy benefits and terminations...... (2,395,229) (1,099,100) (981,320) -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 18,938,831 881,506 (438,626) -------------------- --------------------- -------------------- Net increase (decrease) in net assets............. 25,593,599 7,458,560 1,860,591 NET ASSETS: Beginning of year................................... 21,684,945 14,226,385 12,365,794 -------------------- --------------------- -------------------- End of year......................................... $ 47,278,544 $ 21,684,945 $ 14,226,385 ==================== ===================== ==================== MIST HARRIS OAKMARK INTERNATIONAL INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,043,576 $ 1,176,625 $ 497,722 Net realized gains (losses)......................... 5,879,910 663,573 (140,345) Change in unrealized gains (losses) on investments.. (9,320,626) 9,999,502 7,474,599 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (2,397,140) 11,839,700 7,831,976 --------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 3,289,660 3,906,251 3,418,984 Net transfers (including fixed account)............. (7,351,245) 8,505,167 (782,470) Policy charges...................................... (2,202,103) (2,400,727) (1,876,193) Transfers for policy benefits and terminations...... (2,639,180) (2,622,312) (2,206,344) --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (8,902,868) 7,388,379 (1,446,023) --------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (11,300,008) 19,228,079 6,385,953 NET ASSETS: Beginning of year................................... 52,830,774 33,602,695 27,216,742 --------------------- -------------------- --------------------- End of year......................................... $ 41,530,766 $ 52,830,774 $ 33,602,695 ===================== ==================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 132 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, 2014, 2013 AND 2012
MIST INVESCO BALANCED-RISK ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 (f) -------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- $ -- $ 23 Net realized gains (losses)......................... 1,265 126 83 Change in unrealized gains (losses) on investments.. 178 124 (2) -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 1,443 250 104 -------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 11,849 17,879 1,603 Net transfers (including fixed account)............. (2,709) 4,168 6,312 Policy charges...................................... (4,305) (4,070) (506) Transfers for policy benefits and terminations...... -- (1,017) -- -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 4,835 16,960 7,409 -------------------- --------------------- -------------------- Net increase (decrease) in net assets............. 6,278 17,210 7,513 NET ASSETS: Beginning of year................................... 24,723 7,513 -- -------------------- --------------------- -------------------- End of year......................................... $ 31,001 $ 24,723 $ 7,513 ==================== ===================== ==================== MIST INVESCO MID CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 562,138 $ 678,832 $ (48,839) Net realized gains (losses)......................... 17,118,207 935,109 (82,924) Change in unrealized gains (losses) on investments.. (8,899,738) 20,593,687 2,481,449 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 8,780,607 22,207,628 2,349,686 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 6,274,639 6,808,802 4,895,051 Net transfers (including fixed account)............. (1,527,527) (1,553,954) 74,538,068 Policy charges...................................... (5,148,577) (5,171,329) (3,428,791) Transfers for policy benefits and terminations...... (5,635,566) (5,053,458) (3,581,952) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (6,037,031) (4,969,939) 72,422,376 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 2,743,576 17,237,689 74,772,062 NET ASSETS: Beginning of year................................... 92,130,609 74,892,920 120,858 -------------------- -------------------- -------------------- End of year......................................... $ 94,874,185 $ 92,130,609 $ 74,892,920 ==================== ==================== ==================== MIST INVESCO SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (8,994) $ 15,232 $ (5,823) Net realized gains (losses)......................... 970,370 569,238 428,171 Change in unrealized gains (losses) on investments.. (438,103) 1,365,097 331,488 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 523,273 1,949,567 753,836 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 458,397 455,209 443,063 Net transfers (including fixed account)............. 80,982 194,761 (437,534) Policy charges...................................... (300,898) (291,728) (265,168) Transfers for policy benefits and terminations...... (288,293) (311,249) (290,496) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (49,812) 46,993 (550,135) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 473,461 1,996,560 203,701 NET ASSETS: Beginning of year................................... 6,613,228 4,616,668 4,412,967 -------------------- -------------------- -------------------- End of year......................................... $ 7,086,689 $ 6,613,228 $ 4,616,668 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 134 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, 2014, 2013 AND 2012
MIST JPMORGAN GLOBAL ACTIVE ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 (f) -------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,679 $ 54 $ 68 Net realized gains (losses)......................... 5,242 (274) 107 Change in unrealized gains (losses) on investments.. 2,680 5,829 152 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 9,601 5,609 327 -------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 41,753 18,212 1,977 Net transfers (including fixed account)............. 31,866 80,614 17,364 Policy charges...................................... (21,706) (12,825) (785) Transfers for policy benefits and terminations...... (786) (80) -- -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 51,127 85,921 18,556 -------------------- --------------------- -------------------- Net increase (decrease) in net assets............. 60,728 91,530 18,883 NET ASSETS: Beginning of year................................... 110,413 18,883 -- -------------------- --------------------- -------------------- End of year......................................... $ 171,141 $ 110,413 $ 18,883 ==================== ===================== ==================== MIST JPMORGAN SMALL CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,563 $ 337 $ 358 Net realized gains (losses)......................... 30,329 2,408 3,130 Change in unrealized gains (losses) on investments.. (18,929) 28,817 1,696 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 13,963 31,562 5,184 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 27,252 14,812 11,572 Net transfers (including fixed account)............. 42,989 181,255 (1,795) Policy charges...................................... (17,294) (9,533) (6,279) Transfers for policy benefits and terminations...... (26,298) (1,850) (6,067) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 26,649 184,684 (2,569) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 40,612 216,246 2,615 NET ASSETS: Beginning of year................................... 254,799 38,553 35,938 -------------------- -------------------- -------------------- End of year......................................... $ 295,411 $ 254,799 $ 38,553 ==================== ==================== ==================== MIST LOOMIS SAYLES GLOBAL MARKETS INVESTMENT DIVISION -------------------------------------------- 2014 2013 (d) -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 9,637 $ -- Net realized gains (losses)......................... 4,771 705 Change in unrealized gains (losses) on investments.. 1,137 43,104 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 15,545 43,809 -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 52,562 33,048 Net transfers (including fixed account)............. 9,314 369,498 Policy charges...................................... (34,455) (21,387) Transfers for policy benefits and terminations...... (37,846) (6,708) -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (10,425) 374,451 -------------------- -------------------- Net increase (decrease) in net assets............. 5,120 418,260 NET ASSETS: Beginning of year................................... 418,260 -- -------------------- -------------------- End of year......................................... $ 423,380 $ 418,260 ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 136 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, 2014, 2013 AND 2012
MIST LORD ABBETT BOND DEBENTURE INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,616,494 $ 1,902,403 $ 1,923,060 Net realized gains (losses)......................... 1,102,818 299,375 218,347 Change in unrealized gains (losses) on investments.. (1,312,784) (7,269) 1,167,280 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 1,406,528 2,194,509 3,308,687 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,028,426 2,130,805 2,367,942 Net transfers (including fixed account)............. (411,550) (494,009) 308,984 Policy charges...................................... (1,553,279) (1,625,126) (1,678,880) Transfers for policy benefits and terminations...... (1,929,229) (1,597,160) (1,522,631) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (1,865,632) (1,585,490) (524,585) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (459,104) 609,019 2,784,102 NET ASSETS: Beginning of year................................... 29,124,114 28,515,095 25,730,993 -------------------- -------------------- -------------------- End of year......................................... $ 28,665,010 $ 29,124,114 $ 28,515,095 ==================== ==================== ==================== MIST MET/TEMPLETON INTERNATIONAL BOND INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 (f) -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 6,729 $ 302 $ -- Net realized gains (losses)......................... 6 37 21 Change in unrealized gains (losses) on investments.. (3,576) 996 47 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 3,159 1,335 68 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 40,184 23,432 772 Net transfers (including fixed account)............. 57,850 64,543 2,031 Policy charges...................................... (12,411) (4,909) (254) Transfers for policy benefits and terminations...... (1,693) (230) (12) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 83,930 82,836 2,537 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 87,089 84,171 2,605 NET ASSETS: Beginning of year................................... 86,776 2,605 -- -------------------- -------------------- -------------------- End of year......................................... $ 173,865 $ 86,776 $ 2,605 ==================== ==================== ==================== MIST METLIFE ASSET ALLOCATION 100 INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 165,509 $ 144,757 $ 106,199 Net realized gains (losses)......................... 437,534 243,289 (55,023) Change in unrealized gains (losses) on investments.. 404,377 4,045,633 2,084,613 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 1,007,420 4,433,679 2,135,789 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,400,839 2,268,937 2,523,168 Net transfers (including fixed account)............. 489,496 149,509 (222,009) Policy charges...................................... (1,133,365) (1,056,742) (1,016,618) Transfers for policy benefits and terminations...... (1,142,502) (1,666,527) (750,395) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 614,468 (304,823) 534,146 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 1,621,888 4,128,856 2,669,935 NET ASSETS: Beginning of year................................... 19,271,452 15,142,596 12,472,661 -------------------- -------------------- -------------------- End of year......................................... $ 20,893,340 $ 19,271,452 $ 15,142,596 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 138 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, 2014, 2013 AND 2012
MIST METLIFE BALANCED PLUS INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 (f) -------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,715 $ 778 $ -- Net realized gains (losses)......................... 12,256 3,942 119 Change in unrealized gains (losses) on investments.. (517) 4,689 1,691 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 14,454 9,409 1,810 -------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 41,771 19,018 2,506 Net transfers (including fixed account)............. 106,162 28,730 42,755 Policy charges...................................... (21,052) (8,924) (1,138) Transfers for policy benefits and terminations...... -- -- -- -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 126,881 38,824 44,123 -------------------- --------------------- -------------------- Net increase (decrease) in net assets............. 141,335 48,233 45,933 NET ASSETS: Beginning of year................................... 94,166 45,933 -- -------------------- --------------------- -------------------- End of year......................................... $ 235,501 $ 94,166 $ 45,933 ==================== ===================== ==================== MIST METLIFE MULTI-INDEX TARGETED RISK INVESTMENT DIVISION ------------------------------------------- 2014 2013 (d) -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- $ 6 Net realized gains (losses)......................... 262 (194) Change in unrealized gains (losses) on investments.. 4,343 52 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 4,605 (136) -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 7,295 1,546 Net transfers (including fixed account)............. 111,732 1,810 Policy charges...................................... (4,904) (541) Transfers for policy benefits and terminations...... -- -- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 114,123 2,815 -------------------- -------------------- Net increase (decrease) in net assets............. 118,728 2,679 NET ASSETS: Beginning of year................................... 2,679 -- -------------------- -------------------- End of year......................................... $ 121,407 $ 2,679 ==================== ==================== MIST METLIFE SMALL CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 366 $ 9,744 $ -- Net realized gains (losses)......................... 71,109 47,240 12,071 Change in unrealized gains (losses) on investments.. (58,142) 199,123 129,525 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 13,333 256,107 141,596 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 16,136 18,262 66,068 Net transfers (including fixed account)............. (61,174) (70,109) (58,431) Policy charges...................................... (21,735) (22,081) (25,818) Transfers for policy benefits and terminations...... (40,137) (106,096) (47,729) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (106,910) (180,024) (65,910) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (93,577) 76,083 75,686 NET ASSETS: Beginning of year................................... 957,820 881,737 806,051 -------------------- -------------------- -------------------- End of year......................................... $ 864,243 $ 957,820 $ 881,737 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 140 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, 2014, 2013 AND 2012
MIST MFS EMERGING MARKETS EQUITY INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 ------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,914 $ 1,482 $ 1,167 Net realized gains (losses)......................... (2,174) 254 (1,470) Change in unrealized gains (losses) on investments.. (31,587) (3,821) 9,361 ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (30,847) (2,085) 9,058 ------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 130,260 65,858 18,431 Net transfers (including fixed account)............. 193,175 138,765 46,229 Policy charges...................................... (35,736) (16,190) (6,816) Transfers for policy benefits and terminations...... (8,565) (2,469) (895) ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 279,134 185,964 56,949 ------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 248,287 183,879 66,007 NET ASSETS: Beginning of year................................... 272,836 88,957 22,950 ------------------- -------------------- -------------------- End of year......................................... $ 521,123 $ 272,836 $ 88,957 =================== ==================== ==================== MIST MFS RESEARCH INTERNATIONAL INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 464,648 $ 457,179 $ 266,180 Net realized gains (losses)......................... 144,798 48,641 (345,224) Change in unrealized gains (losses) on investments.. (2,026,000) 2,877,942 2,185,121 -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ (1,416,554) 3,383,762 2,106,077 -------------------- -------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,202,389 1,318,727 1,458,020 Net transfers (including fixed account)............. (150,627) 2,955,311 1,660,976 Policy charges...................................... (914,533) (920,553) (839,930) Transfers for policy benefits and terminations...... (948,026) (1,090,319) (841,229) -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (810,797) 2,263,166 1,437,837 -------------------- -------------------- ------------------- Net increase (decrease) in net assets............. (2,227,351) 5,646,928 3,543,914 NET ASSETS: Beginning of year................................... 21,367,741 15,720,813 12,176,899 -------------------- -------------------- ------------------- End of year......................................... $ 19,140,390 $ 21,367,741 $ 15,720,813 ==================== ==================== =================== MIST MORGAN STANLEY MID CAP GROWTH INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (584,279) $ 1,032,581 $ (579,825) Net realized gains (losses)......................... 5,665,992 3,781,941 1,677,793 Change in unrealized gains (losses) on investments.. (2,867,790) 65,460,998 15,368,250 -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ 2,213,923 70,275,520 16,466,218 -------------------- -------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 18,859,785 19,642,966 21,032,275 Net transfers (including fixed account)............. (2,225,968) (3,859,066) (1,255,442) Policy charges...................................... (14,270,234) (14,305,433) (14,401,148) Transfers for policy benefits and terminations...... (15,106,139) (13,831,139) (13,701,209) -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (12,742,556) (12,352,672) (8,325,524) -------------------- -------------------- ------------------- Net increase (decrease) in net assets............. (10,528,633) 57,922,848 8,140,694 NET ASSETS: Beginning of year................................... 244,413,959 186,491,111 178,350,417 -------------------- -------------------- ------------------- End of year......................................... $ 233,885,326 $ 244,413,959 $ 186,491,111 ==================== ==================== ===================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 142 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, 2014, 2013 AND 2012
MIST OPPENHEIMER GLOBAL EQUITY INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 ------------------- ------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 415,696 $ 847,938 $ 530,726 Net realized gains (losses)......................... 2,942,391 1,128,194 700,180 Change in unrealized gains (losses) on investments.. (2,309,701) 9,078,535 6,406,670 ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 1,048,386 11,054,667 7,637,576 ------------------- ------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 3,247,625 3,161,117 3,535,071 Net transfers (including fixed account)............. (469,967) (609,502) (1,749,487) Policy charges...................................... (2,381,921) (2,431,800) (2,384,677) Transfers for policy benefits and terminations...... (3,500,487) (2,535,936) (2,687,363) ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (3,104,750) (2,416,121) (3,286,456) ------------------- ------------------- -------------------- Net increase (decrease) in net assets............. (2,056,364) 8,638,546 4,351,120 NET ASSETS: Beginning of year................................... 50,486,885 41,848,339 37,497,219 ------------------- ------------------- -------------------- End of year......................................... $ 48,430,521 $ 50,486,885 $ 41,848,339 =================== =================== ==================== MIST PIMCO INFLATION PROTECTED BOND INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 ------------------- ------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 191,714 $ 276,844 $ 369,500 Net realized gains (losses)......................... (162,419) 545,242 800,878 Change in unrealized gains (losses) on investments.. 319,472 (2,018,492) (101,684) ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 348,767 (1,196,406) 1,068,694 ------------------- ------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,086,624 1,300,352 1,385,490 Net transfers (including fixed account)............. 31,773 (1,029,716) 2,478,586 Policy charges...................................... (712,219) (806,882) (865,472) Transfers for policy benefits and terminations...... (690,467) (725,408) (915,239) ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (284,289) (1,261,654) 2,083,365 ------------------- ------------------- -------------------- Net increase (decrease) in net assets............. 64,478 (2,458,060) 3,152,059 NET ASSETS: Beginning of year................................... 11,213,500 13,671,560 10,519,501 ------------------- ------------------- -------------------- End of year......................................... $ 11,277,978 $ 11,213,500 $ 13,671,560 =================== =================== ==================== MIST PIMCO TOTAL RETURN INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,198,857 $ 2,109,672 $ 1,570,173 Net realized gains (losses)......................... 36,542 1,082,946 347,234 Change in unrealized gains (losses) on investments.. 873,849 (4,155,495) 2,519,869 -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ 2,109,248 (962,877) 4,437,276 -------------------- -------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 4,163,684 4,702,504 4,797,851 Net transfers (including fixed account)............. (3,229,896) 3,443,762 1,382,335 Policy charges...................................... (3,052,766) (3,408,964) (3,598,862) Transfers for policy benefits and terminations...... (2,972,047) (4,297,571) (3,664,586) -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (5,091,025) 439,731 (1,083,262) -------------------- -------------------- ------------------- Net increase (decrease) in net assets............. (2,981,777) (523,146) 3,354,014 NET ASSETS: Beginning of year................................... 49,962,747 50,485,893 47,131,879 -------------------- -------------------- ------------------- End of year......................................... $ 46,980,970 $ 49,962,747 $ 50,485,893 ==================== ==================== ===================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 144 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, 2014, 2013 AND 2012
MIST PIONEER FUND INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 3,502 $ 6,252 $ 2,902 Net realized gains (losses)......................... 58,712 17,551 1,266 Change in unrealized gains (losses) on investments.. (39,539) 32,389 14,560 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 22,675 56,192 18,728 -------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- 1,433 4,118 Net transfers (including fixed account)............. -- (14,658) 15 Policy charges...................................... (2,073) (3,841) (4,551) Transfers for policy benefits and terminations...... -- (29,228) -- -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,073) (46,294) (418) -------------------- --------------------- -------------------- Net increase (decrease) in net assets............. 20,602 9,898 18,310 NET ASSETS: Beginning of year................................... 204,562 194,664 176,354 -------------------- --------------------- -------------------- End of year......................................... $ 225,164 $ 204,562 $ 194,664 ==================== ===================== ==================== MIST PYRAMIS MANAGED RISK INVESTMENT DIVISION ------------------------------------------- 2014 2013 (d) -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- $ 2 Net realized gains (losses)......................... 10 5 Change in unrealized gains (losses) on investments.. 48 6 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 58 13 -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,546 376 Net transfers (including fixed account)............. 189 48 Policy charges...................................... (516) (139) Transfers for policy benefits and terminations...... -- -- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 1,219 285 -------------------- -------------------- Net increase (decrease) in net assets............. 1,277 298 NET ASSETS: Beginning of year................................... 298 -- -------------------- -------------------- End of year......................................... $ 1,575 $ 298 ==================== ==================== MIST SCHRODERS GLOBAL MULTI-ASSET INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 (f) -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 398 $ 1 $ 42 Net realized gains (losses)......................... 1,257 187 103 Change in unrealized gains (losses) on investments.. 553 1,498 (23) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 2,208 1,686 122 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 9,093 6,592 792 Net transfers (including fixed account)............. 3,198 11,865 5,247 Policy charges...................................... (5,139) (3,230) (409) Transfers for policy benefits and terminations...... (239) -- -- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 6,913 15,227 5,630 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 9,121 16,913 5,752 NET ASSETS: Beginning of year................................... 22,665 5,752 -- -------------------- -------------------- -------------------- End of year......................................... $ 31,786 $ 22,665 $ 5,752 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 146 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, 2014, 2013 AND 2012
MIST SSGA GROWTH AND INCOME ETF INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 185,874 $ 177,538 $ 126,210 Net realized gains (losses)......................... 630,738 250,766 168,614 Change in unrealized gains (losses) on investments.. (350,740) 431,610 365,606 -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ 465,872 859,914 660,430 -------------------- -------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 906,155 862,220 646,514 Net transfers (including fixed account)............. (356,847) 630,532 942,683 Policy charges...................................... (484,443) (442,367) (351,822) Transfers for policy benefits and terminations...... (640,439) (250,215) (341,292) -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (575,574) 800,170 896,083 -------------------- -------------------- ------------------- Net increase (decrease) in net assets............. (109,702) 1,660,084 1,556,513 NET ASSETS: Beginning of year................................... 7,827,724 6,167,640 4,611,127 -------------------- -------------------- ------------------- End of year......................................... $ 7,718,022 $ 7,827,724 $ 6,167,640 ==================== ==================== =================== MIST SSGA GROWTH ETF INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 -------------------- ------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 110,880 $ 102,918 $ 74,518 Net realized gains (losses)......................... 458,401 255,766 177,699 Change in unrealized gains (losses) on investments.. (255,403) 467,150 279,360 -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 313,878 825,834 531,577 -------------------- ------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,072,149 588,590 510,609 Net transfers (including fixed account)............. 369,458 627,263 331,103 Policy charges...................................... (333,333) (282,734) (237,442) Transfers for policy benefits and terminations...... (546,709) (433,221) (200,877) -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 561,565 499,898 403,393 -------------------- ------------------- -------------------- Net increase (decrease) in net assets............. 875,443 1,325,732 934,970 NET ASSETS: Beginning of year................................... 5,570,220 4,244,488 3,309,518 -------------------- ------------------- -------------------- End of year......................................... $ 6,445,663 $ 5,570,220 $ 4,244,488 ==================== =================== ==================== MIST T. ROWE PRICE LARGE CAP VALUE INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 -------------------- ------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 32,258 $ 30,041 $ 19,582 Net realized gains (losses)......................... 6,947 22,312 (1,403) Change in unrealized gains (losses) on investments.. 244,232 456,298 181,043 -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 283,437 508,651 199,222 -------------------- ------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 3,948 7,454 7,131 Net transfers (including fixed account)............. 113,630 326,923 49,898 Policy charges...................................... (30,992) (25,078) (17,285) Transfers for policy benefits and terminations...... (119) (112,478) (5) -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 86,467 196,821 39,739 -------------------- ------------------- -------------------- Net increase (decrease) in net assets............. 369,904 705,472 238,961 NET ASSETS: Beginning of year................................... 2,025,987 1,320,515 1,081,554 -------------------- ------------------- -------------------- End of year......................................... $ 2,395,891 $ 2,025,987 $ 1,320,515 ==================== =================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 148 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, 2014, 2013 AND 2012
MIST T. ROWE PRICE MID CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (39,978) $ 65,404 $ (29,751) Net realized gains (losses)......................... 3,333,489 1,831,913 2,629,009 Change in unrealized gains (losses) on investments.. 275,430 5,764,932 206,878 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 3,568,941 7,662,249 2,806,136 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,971,641 1,926,999 1,915,712 Net transfers (including fixed account)............. 1,134,159 205,058 (5,662,939) Policy charges...................................... (1,470,638) (1,381,598) (1,349,872) Transfers for policy benefits and terminations...... (1,719,618) (1,809,707) (1,768,009) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (84,456) (1,059,248) (6,865,108) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 3,484,485 6,603,001 (4,058,972) NET ASSETS: Beginning of year................................... 27,748,656 21,145,655 25,204,627 -------------------- -------------------- -------------------- End of year......................................... $ 31,233,141 $ 27,748,656 $ 21,145,655 ==================== ==================== ==================== MIST WMC LARGE CAP RESEARCH INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,625,933 $ 3,087,670 $ 2,105,871 Net realized gains (losses)......................... 5,779,958 1,187,504 (3,353,915) Change in unrealized gains (losses) on investments.. 41,616,595 96,008,684 38,395,441 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 49,022,486 100,283,858 37,147,397 -------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 26,924,187 28,600,415 30,263,186 Net transfers (including fixed account)............. 566,938 (4,051,695) (3,536,610) Policy charges...................................... (25,639,658) (25,380,973) (25,681,797) Transfers for policy benefits and terminations...... (23,789,708) (21,667,485) (22,249,090) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (21,938,241) (22,499,738) (21,204,311) -------------------- -------------------- --------------------- Net increase (decrease) in net assets............. 27,084,245 77,784,120 15,943,086 NET ASSETS: Beginning of year................................... 385,342,945 307,558,825 291,615,739 -------------------- -------------------- --------------------- End of year......................................... $ 412,427,190 $ 385,342,945 $ 307,558,825 ==================== ==================== ===================== MSF BAILLIE GIFFORD INTERNATIONAL STOCK INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 411,479 $ 476,439 $ 341,410 Net realized gains (losses)......................... (176,452) (474,270) (1,190,404) Change in unrealized gains (losses) on investments.. (1,735,615) 5,921,616 7,502,480 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (1,500,588) 5,923,785 6,653,486 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 3,833,062 4,172,944 4,637,990 Net transfers (including fixed account)............. (778,376) (82,846) (1,376,713) Policy charges...................................... (2,744,350) (2,853,344) (2,907,524) Transfers for policy benefits and terminations...... (2,453,566) (2,703,864) (2,527,135) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,143,230) (1,467,110) (2,173,382) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (3,643,818) 4,456,675 4,480,104 NET ASSETS: Beginning of year................................... 44,856,340 40,399,665 35,919,561 -------------------- -------------------- -------------------- End of year......................................... $ 41,212,522 $ 44,856,340 $ 40,399,665 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 150 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, 2014, 2013 AND 2012
MSF BARCLAYS AGGREGATE BOND INDEX INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 3,602,466 $ 4,070,313 $ 4,231,088 Net realized gains (losses)......................... 62,943 125,172 604,720 Change in unrealized gains (losses) on investments.. 3,247,015 (6,977,167) (447,969) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 6,912,424 (2,781,682) 4,387,839 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 10,905,300 11,646,001 12,468,986 Net transfers (including fixed account)............. 8,138,349 11,038,720 7,067,547 Policy charges...................................... (8,147,634) (8,147,262) (8,609,472) Transfers for policy benefits and terminations...... (8,356,763) (6,747,468) (7,662,930) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 2,539,252 7,789,991 3,264,131 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 9,451,676 5,008,309 7,651,970 NET ASSETS: Beginning of year................................... 121,423,866 116,415,557 108,763,587 -------------------- -------------------- -------------------- End of year......................................... $ 130,875,542 $ 121,423,866 $ 116,415,557 ==================== ==================== ==================== MSF BLACKROCK BOND INCOME INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,540,384 $ 2,989,203 $ 1,971,467 Net realized gains (losses)......................... 70,435 2,148,415 905,570 Change in unrealized gains (losses) on investments.. 2,699,020 (6,076,619) 2,995,775 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 5,309,839 (939,001) 5,872,812 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 6,564,554 7,196,561 7,520,502 Net transfers (including fixed account)............. (132,609) 376,688 238,363 Policy charges...................................... (5,530,279) (5,905,721) (6,492,283) Transfers for policy benefits and terminations...... (4,664,936) (4,992,049) (5,691,274) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (3,763,270) (3,324,521) (4,424,692) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 1,546,569 (4,263,522) 1,448,120 NET ASSETS: Beginning of year................................... 81,249,803 85,513,325 84,065,205 -------------------- -------------------- -------------------- End of year......................................... $ 82,796,372 $ 81,249,803 $ 85,513,325 ==================== ==================== ==================== MSF BLACKROCK CAPITAL APPRECIATION INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (2,468) $ 135,824 $ 33,557 Net realized gains (losses)......................... 3,803,528 321,200 261,278 Change in unrealized gains (losses) on investments.. (2,831,679) 4,769,715 1,344,869 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 969,381 5,226,739 1,639,704 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 901,941 1,539,986 2,048,562 Net transfers (including fixed account)............. (11,673,050) 1,984,291 4,185,125 Policy charges...................................... (632,673) (888,848) (887,196) Transfers for policy benefits and terminations...... (709,448) (994,087) (341,906) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (12,113,230) 1,641,342 5,004,585 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (11,143,849) 6,868,081 6,644,289 NET ASSETS: Beginning of year................................... 20,880,180 14,012,099 7,367,810 -------------------- -------------------- -------------------- End of year......................................... $ 9,736,331 $ 20,880,180 $ 14,012,099 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 152 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, 2014, 2013 AND 2012
MSF BLACKROCK LARGE CAP VALUE INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 216,952 $ 205,780 $ 209,379 Net realized gains (losses)......................... 4,317,782 916,715 2,007,312 Change in unrealized gains (losses) on investments.. (2,739,427) 3,399,848 (358,711) -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ 1,795,307 4,522,343 1,857,980 -------------------- -------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,677,799 1,703,921 1,824,774 Net transfers (including fixed account)............. 458,183 136,294 (541,800) Policy charges...................................... (1,071,625) (1,017,256) (986,361) Transfers for policy benefits and terminations...... (1,236,456) (1,178,677) (1,176,695) -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (172,099) (355,718) (880,082) -------------------- -------------------- ------------------- Net increase (decrease) in net assets............. 1,623,208 4,166,625 977,898 NET ASSETS: Beginning of year................................... 18,457,575 14,290,950 13,313,052 -------------------- -------------------- ------------------- End of year......................................... $ 20,080,783 $ 18,457,575 $ 14,290,950 ==================== ==================== =================== MSF BLACKROCK MONEY MARKET INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 -------------------- ------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (38,422) $ (45,649) $ (48,731) Net realized gains (losses)......................... -- -- -- Change in unrealized gains (losses) on investments.. -- -- -- -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (38,422) (45,649) (48,731) -------------------- ------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,264,640 3,313,077 1,122,876 Net transfers (including fixed account)............. 5,773,861 981,039 4,792,952 Policy charges...................................... (1,047,919) (1,064,647) (709,203) Transfers for policy benefits and terminations...... (701,246) (2,676,395) (2,666,648) -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 6,289,336 553,074 2,539,977 -------------------- ------------------- -------------------- Net increase (decrease) in net assets............. 6,250,914 507,425 2,491,246 NET ASSETS: Beginning of year................................... 23,781,879 23,274,454 20,783,208 -------------------- ------------------- -------------------- End of year......................................... $ 30,032,793 $ 23,781,879 $ 23,274,454 ==================== =================== ==================== MSF FRONTIER MID CAP GROWTH INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 ------------------- ------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (1,529,952) $ 1,219,986 $ (1,258,555) Net realized gains (losses)......................... 26,100,542 10,646,811 2,892,428 Change in unrealized gains (losses) on investments.. (1,683,974) 45,562,137 17,096,166 ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 22,886,616 57,428,934 18,730,039 ------------------- ------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 14,123,989 15,025,336 17,178,798 Net transfers (including fixed account)............. (2,083,030) (9,140,683) (3,218,712) Policy charges...................................... (13,134,488) (13,251,775) (13,834,330) Transfers for policy benefits and terminations...... (14,207,419) (12,787,266) (13,147,114) ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (15,300,948) (20,154,388) (13,021,358) ------------------- ------------------- -------------------- Net increase (decrease) in net assets............. 7,585,668 37,274,546 5,708,681 NET ASSETS: Beginning of year................................... 227,974,022 190,699,476 184,990,795 ------------------- ------------------- -------------------- End of year......................................... $ 235,559,690 $ 227,974,022 $ 190,699,476 =================== =================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 154 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, 2014, 2013 AND 2012
MSF JENNISON GROWTH INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 43,836 $ 69,286 $ 28,105 Net realized gains (losses)......................... 1,760,217 748,650 2,811,173 Change in unrealized gains (losses) on investments.. 102,570 5,442,828 (683,735) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 1,906,623 6,260,764 2,155,543 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,453,986 1,523,693 1,531,550 Net transfers (including fixed account)............. 255,971 (654,269) 2,297,949 Policy charges...................................... (1,193,061) (1,190,262) (1,167,566) Transfers for policy benefits and terminations...... (1,317,032) (1,960,411) (1,209,351) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (800,136) (2,281,249) 1,452,582 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 1,106,487 3,979,515 3,608,125 NET ASSETS: Beginning of year................................... 21,754,126 17,774,611 14,166,486 -------------------- -------------------- -------------------- End of year......................................... $ 22,860,613 $ 21,754,126 $ 17,774,611 ==================== ==================== ==================== MSF LOOMIS SAYLES SMALL CAP CORE INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 ------------------- ------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (14,295) $ 72,558 $ (18,930) Net realized gains (losses)......................... 3,617,443 2,242,704 734,986 Change in unrealized gains (losses) on investments.. (2,720,783) 5,169,026 1,736,369 ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 882,365 7,484,288 2,452,425 ------------------- ------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,565,136 1,615,232 1,746,601 Net transfers (including fixed account)............. (73,345) (215,054) (297,817) Policy charges...................................... (1,224,901) (1,228,517) (1,178,997) Transfers for policy benefits and terminations...... (1,266,842) (1,483,788) (1,329,599) ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (999,952) (1,312,127) (1,059,812) ------------------- ------------------- -------------------- Net increase (decrease) in net assets............. (117,587) 6,172,161 1,392,613 NET ASSETS: Beginning of year................................... 25,008,758 18,836,597 17,443,984 ------------------- ------------------- -------------------- End of year......................................... $ 24,891,171 $ 25,008,758 $ 18,836,597 =================== =================== ==================== MSF LOOMIS SAYLES SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (10,498) $ (8,824) $ (7,211) Net realized gains (losses)......................... 1,860,548 444,863 192,524 Change in unrealized gains (losses) on investments.. (1,752,743) 3,463,471 678,535 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 97,307 3,899,510 863,848 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 896,507 804,491 809,473 Net transfers (including fixed account)............. (421,247) 748,405 (560,400) Policy charges...................................... (607,725) (585,929) (544,759) Transfers for policy benefits and terminations...... (728,890) (824,857) (652,904) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (861,355) 142,110 (948,590) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (764,048) 4,041,620 (84,742) NET ASSETS: Beginning of year................................... 12,136,657 8,095,037 8,179,779 -------------------- -------------------- -------------------- End of year......................................... $ 11,372,609 $ 12,136,657 $ 8,095,037 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 156 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, 2014, 2013 AND 2012
MSF MET/ARTISAN MID CAP VALUE INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 401,768 $ 506,787 $ 436,661 Net realized gains (losses)......................... 1,070,144 684,691 (286,700) Change in unrealized gains (losses) on investments.. (313,797) 16,708,173 5,263,295 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 1,158,115 17,899,651 5,413,256 --------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 4,484,293 4,818,272 5,235,295 Net transfers (including fixed account)............. (394,233) (164,067) (939,024) Policy charges...................................... (3,529,069) (3,575,679) (3,448,574) Transfers for policy benefits and terminations...... (4,058,223) (4,519,220) (3,304,159) --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (3,497,232) (3,440,694) (2,456,462) --------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (2,339,117) 14,458,957 2,956,794 NET ASSETS: Beginning of year................................... 64,604,740 50,145,783 47,188,989 --------------------- -------------------- -------------------- End of year......................................... $ 62,265,623 $ 64,604,740 $ 50,145,783 ===================== ==================== ==================== MSF METLIFE ASSET ALLOCATION 20 INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 201,461 $ 160,505 $ 138,695 Net realized gains (losses)......................... 239,244 81,883 174,266 Change in unrealized gains (losses) on investments.. (203,125) (14,063) 123,869 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 237,580 228,325 436,830 --------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 486,493 533,556 568,235 Net transfers (including fixed account)............. 224,914 (150,585) 1,144,105 Policy charges...................................... (502,703) (484,460) (430,185) Transfers for policy benefits and terminations...... (70,115) (355,218) (704,305) --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 138,589 (456,707) 577,850 --------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 376,169 (228,382) 1,014,680 NET ASSETS: Beginning of year................................... 5,157,553 5,385,935 4,371,255 --------------------- -------------------- -------------------- End of year......................................... $ 5,533,722 $ 5,157,553 $ 5,385,935 ===================== ==================== ==================== MSF METLIFE ASSET ALLOCATION 40 INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 -------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 273,153 $ 235,287 $ 205,059 Net realized gains (losses)......................... 467,475 306,341 81,535 Change in unrealized gains (losses) on investments.. (270,968) 418,401 541,162 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 469,660 960,029 827,756 -------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 955,553 1,011,525 1,481,933 Net transfers (including fixed account)............. 607,149 150,570 843,570 Policy charges...................................... (775,283) (748,237) (736,496) Transfers for policy benefits and terminations...... (593,011) (741,985) (304,695) -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 194,408 (328,127) 1,284,312 -------------------- --------------------- --------------------- Net increase (decrease) in net assets............. 664,068 631,902 2,112,068 NET ASSETS: Beginning of year................................... 9,308,532 8,676,630 6,564,562 -------------------- --------------------- --------------------- End of year......................................... $ 9,972,600 $ 9,308,532 $ 8,676,630 ==================== ===================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 158 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, 2014, 2013 AND 2012
MSF METLIFE ASSET ALLOCATION 60 INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,121,316 $ 978,796 $ 983,338 Net realized gains (losses)......................... 2,840,090 1,591,249 307,411 Change in unrealized gains (losses) on investments.. (1,284,610) 5,640,223 3,912,908 --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 2,676,796 8,210,268 5,203,657 --------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 4,845,492 5,151,753 5,386,770 Net transfers (including fixed account)............. 1,294,516 (136,518) 1,630,562 Policy charges...................................... (3,579,223) (3,553,677) (3,268,135) Transfers for policy benefits and terminations...... (2,913,886) (3,662,499) (3,139,425) --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (353,101) (2,200,941) 609,772 --------------------- --------------------- -------------------- Net increase (decrease) in net assets............. 2,323,695 6,009,327 5,813,429 NET ASSETS: Beginning of year................................... 51,411,065 45,401,738 39,588,309 --------------------- --------------------- -------------------- End of year......................................... $ 53,734,760 $ 51,411,065 $ 45,401,738 ===================== ===================== ==================== MSF METLIFE ASSET ALLOCATION 80 INVESTMENT DIVISION --------------------------------------------------------------------- 2014 2013 2012 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,670,618 $ 1,331,275 $ 1,452,530 Net realized gains (losses)......................... 1,673,184 1,631,177 342,924 Change in unrealized gains (losses) on investments.. 1,795,645 15,682,919 8,619,633 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 5,139,447 18,645,371 10,415,087 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 9,639,429 9,997,220 10,953,737 Net transfers (including fixed account)............. 1,001,195 (970,786) (395,131) Policy charges...................................... (5,665,664) (5,392,604) (5,381,249) Transfers for policy benefits and terminations...... (5,697,181) (5,660,564) (4,722,972) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (722,221) (2,026,734) 454,385 --------------------- --------------------- --------------------- Net increase (decrease) in net assets............. 4,417,226 16,618,637 10,869,472 NET ASSETS: Beginning of year................................... 93,658,356 77,039,719 66,170,247 --------------------- --------------------- --------------------- End of year......................................... $ 98,075,582 $ 93,658,356 $ 77,039,719 ===================== ===================== ===================== MSF METLIFE MID CAP STOCK INDEX INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 843,384 $ 921,665 $ 611,419 Net realized gains (losses)......................... 8,284,867 4,180,005 3,617,861 Change in unrealized gains (losses) on investments.. (1,040,640) 18,736,176 6,545,785 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 8,087,611 23,837,846 10,775,065 --------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,599,962 6,442,989 6,251,227 Net transfers (including fixed account)............. (10,183,170) 6,297,964 (874,909) Policy charges...................................... (4,685,942) (4,821,378) (4,370,955) Transfers for policy benefits and terminations...... (5,756,275) (5,452,511) (4,820,226) --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (15,025,425) 2,467,064 (3,814,863) --------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (6,937,814) 26,304,910 6,960,202 NET ASSETS: Beginning of year................................... 96,112,727 69,807,817 62,847,615 --------------------- -------------------- -------------------- End of year......................................... $ 89,174,913 $ 96,112,727 $ 69,807,817 ===================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 160 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, 2014, 2013 AND 2012
MSF METLIFE STOCK INDEX INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 13,571,216 $ 13,291,250 $ 10,948,530 Net realized gains (losses)......................... 45,473,224 24,663,718 8,830,477 Change in unrealized gains (losses) on investments.. 58,022,278 191,004,236 82,239,455 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 117,066,718 228,959,204 102,018,462 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 71,591,777 74,274,408 78,256,067 Net transfers (including fixed account)............. (11,181,289) (13,931,092) (12,171,521) Policy charges...................................... (46,691,201) (46,520,238) (45,906,276) Transfers for policy benefits and terminations...... (70,976,222) (56,333,579) (51,016,668) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (57,256,935) (42,510,501) (30,838,398) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 59,809,783 186,448,703 71,180,064 NET ASSETS: Beginning of year................................... 926,254,934 739,806,231 668,626,167 -------------------- -------------------- -------------------- End of year......................................... $ 986,064,717 $ 926,254,934 $ 739,806,231 ==================== ==================== ==================== MSF MFS TOTAL RETURN INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 221,552 $ 218,647 $ 214,049 Net realized gains (losses)......................... 193,152 99,210 32,260 Change in unrealized gains (losses) on investments.. 388,544 1,215,884 595,278 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 803,248 1,533,741 841,587 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 803,185 855,275 920,793 Net transfers (including fixed account)............. 80,744 222,090 252,642 Policy charges...................................... (608,835) (611,556) (606,480) Transfers for policy benefits and terminations...... (680,255) (576,957) (627,444) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (405,161) (111,148) (60,489) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 398,087 1,422,593 781,098 NET ASSETS: Beginning of year................................... 9,566,029 8,143,436 7,362,338 -------------------- -------------------- -------------------- End of year......................................... $ 9,964,116 $ 9,566,029 $ 8,143,436 ==================== ==================== ==================== MSF MFS VALUE INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 ------------------- ------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,340,478 $ 1,170,720 $ 1,031,624 Net realized gains (losses)......................... 5,617,216 3,182,904 969,095 Change in unrealized gains (losses) on investments.. 1,679,688 17,288,533 6,505,435 ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ 8,637,382 21,642,157 8,506,154 ------------------- ------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,969,586 5,983,336 5,745,674 Net transfers (including fixed account)............. (737,889) 7,686,212 (975,483) Policy charges...................................... (4,711,074) (4,505,565) (3,989,183) Transfers for policy benefits and terminations...... (5,805,644) (4,815,384) (3,759,106) ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (5,285,021) 4,348,599 (2,978,098) ------------------- ------------------- ------------------- Net increase (decrease) in net assets............. 3,352,361 25,990,756 5,528,056 NET ASSETS: Beginning of year................................... 83,882,181 57,891,425 52,363,369 ------------------- ------------------- ------------------- End of year......................................... $ 87,234,542 $ 83,882,181 $ 57,891,425 =================== =================== ===================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 162 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, 2014, 2013 AND 2012
MSF MSCI EAFE INDEX INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 ------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,944,941 $ 2,211,085 $ 1,958,070 Net realized gains (losses)......................... 1,139,967 838,301 (63,228) Change in unrealized gains (losses) on investments.. (7,881,915) 11,746,223 9,143,347 ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (4,797,007) 14,795,609 11,038,189 ------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 6,436,883 6,716,745 6,997,903 Net transfers (including fixed account)............. 6,174,254 128,185 (1,236,350) Policy charges...................................... (4,328,910) (4,441,685) (4,297,245) Transfers for policy benefits and terminations...... (6,727,062) (4,377,881) (4,040,162) ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 1,555,165 (1,974,636) (2,575,854) ------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (3,241,842) 12,820,973 8,462,335 NET ASSETS: Beginning of year................................... 81,042,858 68,221,885 59,759,550 ------------------- -------------------- -------------------- End of year......................................... $ 77,801,016 $ 81,042,858 $ 68,221,885 =================== ==================== ==================== MSF NEUBERGER BERMAN GENESIS INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 ------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 324,320 $ 655,453 $ 222,015 Net realized gains (losses)......................... 1,496,496 614,602 (730,868) Change in unrealized gains (losses) on investments.. (2,029,896) 30,722,824 8,168,095 ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (209,080) 31,992,879 7,659,242 ------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 7,662,015 8,008,218 8,263,575 Net transfers (including fixed account)............. (396,548) 3,343,892 (1,257,789) Policy charges...................................... (6,031,755) (6,107,509) (5,820,066) Transfers for policy benefits and terminations...... (7,231,509) (6,615,611) (5,714,422) ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (5,997,797) (1,371,010) (4,528,702) ------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (6,206,877) 30,621,869 3,130,540 NET ASSETS: Beginning of year................................... 113,031,475 82,409,606 79,279,066 ------------------- -------------------- -------------------- End of year......................................... $ 106,824,598 $ 113,031,475 $ 82,409,606 =================== ==================== ==================== MSF RUSSELL 2000 INDEX INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 ------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 763,845 $ 935,087 $ 584,115 Net realized gains (losses)......................... 3,797,910 1,797,318 721,576 Change in unrealized gains (losses) on investments.. (996,894) 17,937,722 6,793,518 ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 3,564,861 20,670,127 8,099,209 ------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,061,087 4,998,071 5,255,166 Net transfers (including fixed account)............. 570,926 (1,828,111) (1,271,073) Policy charges...................................... (3,622,004) (3,577,463) (3,472,278) Transfers for policy benefits and terminations...... (4,139,758) (3,961,136) (3,852,208) ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,129,749) (4,368,639) (3,340,393) ------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 1,435,112 16,301,488 4,758,816 NET ASSETS: Beginning of year................................... 72,232,088 55,930,600 51,171,784 ------------------- -------------------- -------------------- End of year......................................... $ 73,667,200 $ 72,232,088 $ 55,930,600 =================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 164 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 -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
MSF T. ROWE PRICE LARGE CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (6,271) $ 121,572 $ 35,218 Net realized gains (losses)......................... 7,894,789 2,302,973 996,117 Change in unrealized gains (losses) on investments.. (880,615) 19,823,349 6,924,755 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 7,007,903 22,247,894 7,956,090 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,142,662 4,856,717 3,933,872 Net transfers (including fixed account)............. 447,854 12,281,657 1,360,962 Policy charges...................................... (4,447,459) (3,980,799) (3,253,193) Transfers for policy benefits and terminations...... (5,183,233) (4,480,626) (2,912,602) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (4,040,176) 8,676,949 (870,961) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 2,967,727 30,924,843 7,085,129 NET ASSETS: Beginning of year................................... 80,327,308 49,402,465 42,317,336 -------------------- -------------------- -------------------- End of year......................................... $ 83,295,035 $ 80,327,308 $ 49,402,465 ==================== ==================== ==================== MSF T. ROWE PRICE SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (370,603) $ 16,840 $ (304,065) Net realized gains (losses)......................... 17,881,602 9,434,117 11,464,320 Change in unrealized gains (losses) on investments.. (10,294,099) 30,236,593 2,263,900 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 7,216,900 39,687,550 13,424,155 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 6,500,697 6,334,314 7,087,296 Net transfers (including fixed account)............. (16,314,954) (2,078,011) (2,999,440) Policy charges...................................... (5,322,474) (5,566,115) (5,536,576) Transfers for policy benefits and terminations...... (7,648,701) (6,511,897) (5,390,198) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (22,785,432) (7,821,709) (6,838,918) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (15,568,532) 31,865,841 6,585,237 NET ASSETS: Beginning of year................................... 125,276,849 93,411,008 86,825,771 -------------------- -------------------- -------------------- End of year......................................... $ 109,708,317 $ 125,276,849 $ 93,411,008 ==================== ==================== ==================== MSF VAN ECK GLOBAL NATURAL RESOURCES INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 983 $ 669 $ -- Net realized gains (losses)......................... (436) (55) 1,884 Change in unrealized gains (losses) on investments.. (44,636) 14,171 (2,269) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (44,089) 14,785 (385) -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 82,106 55,907 16,626 Net transfers (including fixed account)............. (14,270) 60,548 29,151 Policy charges...................................... (17,934) (13,231) (5,086) Transfers for policy benefits and terminations...... -- (1,067) (62) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 49,902 102,157 40,629 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 5,813 116,942 40,244 NET ASSETS: Beginning of year................................... 170,365 53,423 13,179 -------------------- -------------------- -------------------- End of year......................................... $ 176,178 $ 170,365 $ 53,423 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 166 The accompanying notes are an integral part of these financial statements. 167 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
MSF WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 -------------------- ------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,344,118 $ 1,226,086 $ 859,018 Net realized gains (losses)......................... 163,589 194,088 204,230 Change in unrealized gains (losses) on investments.. (168,552) (1,174,913) 1,584,984 -------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ 1,339,155 245,261 2,648,232 -------------------- ------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,069,314 2,229,010 2,376,193 Net transfers (including fixed account)............. 284,768 1,081,271 559,734 Policy charges...................................... (1,508,520) (1,575,456) (1,697,175) Transfers for policy benefits and terminations...... (1,535,921) (2,069,679) (1,967,837) -------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (690,359) (334,854) (729,085) -------------------- ------------------- ------------------- Net increase (decrease) in net assets............. 648,796 (89,593) 1,919,147 NET ASSETS: Beginning of year................................... 25,366,442 25,456,035 23,536,888 -------------------- ------------------- ------------------- End of year......................................... $ 26,015,238 $ 25,366,442 $ 25,456,035 ==================== =================== =================== MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 302,649 $ 337,175 $ 330,891 Net realized gains (losses)......................... (4,464) 3,029 19,763 Change in unrealized gains (losses) on investments.. 143,123 (476,487) 185,906 -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ 441,308 (136,283) 536,560 -------------------- -------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,783,465 1,775,872 1,850,612 Net transfers (including fixed account)............. (202,894) 653,302 271,627 Policy charges...................................... (1,276,160) (1,231,455) (1,308,474) Transfers for policy benefits and terminations...... (853,922) (1,189,735) (1,163,575) -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (549,511) 7,984 (349,810) -------------------- -------------------- ------------------- Net increase (decrease) in net assets............. (108,203) (128,299) 186,750 NET ASSETS: Beginning of year................................... 16,494,249 16,622,548 16,435,798 -------------------- -------------------- ------------------- End of year......................................... $ 16,386,046 $ 16,494,249 $ 16,622,548 ==================== ==================== =================== MSF WMC BALANCED INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 ------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 4,452,005 $ 5,446,288 $ 4,600,384 Net realized gains (losses)......................... 5,320,748 2,747,913 1,094,116 Change in unrealized gains (losses) on investments.. 19,346,415 43,444,585 23,691,349 ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 29,119,168 51,638,786 29,385,849 ------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 23,111,609 24,527,235 26,242,636 Net transfers (including fixed account)............. (2,156,943) (283,654) (1,486,565) Policy charges...................................... (22,284,172) (22,861,275) (23,779,226) Transfers for policy benefits and terminations...... (18,266,637) (17,190,722) (18,935,103) ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (19,596,143) (15,808,416) (17,958,258) ------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 9,523,025 35,830,370 11,427,591 NET ASSETS: Beginning of year................................... 302,812,153 266,981,783 255,554,192 ------------------- -------------------- -------------------- End of year......................................... $ 312,335,178 $ 302,812,153 $ 266,981,783 =================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 168 The accompanying notes are an integral part of these financial statements. 169 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
MSF WMC CORE EQUITY OPPORTUNITIES INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 451,613 $ 855,040 $ 426,207 Net realized gains (losses)......................... 7,756,545 2,782,148 549,533 Change in unrealized gains (losses) on investments.. (869,547) 15,346,828 5,763,493 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 7,338,611 18,984,016 6,739,233 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,479,853 5,941,838 6,480,032 Net transfers (including fixed account)............. (1,548,334) (2,306,865) (813,439) Policy charges...................................... (3,989,630) (3,965,087) (3,889,505) Transfers for policy benefits and terminations...... (4,457,258) (4,143,551) (3,947,761) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (4,515,369) (4,473,665) (2,170,673) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 2,823,242 14,510,351 4,568,560 NET ASSETS: Beginning of year................................... 72,729,703 58,219,352 53,650,792 -------------------- -------------------- -------------------- End of year......................................... $ 75,552,945 $ 72,729,703 $ 58,219,352 ==================== ==================== ==================== OPPENHEIMER VA MAIN STREET SMALL CAP INVESTMENT DIVISION -------------------- 2014 (g) -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- Net realized gains (losses)......................... -- Change in unrealized gains (losses) on investments.. 198 -------------------- Net increase (decrease) in net assets resulting from operations................................ 198 -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 950 Net transfers (including fixed account)............. 4,034 Policy charges...................................... (91) Transfers for policy benefits and terminations...... (39) -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 4,854 -------------------- Net increase (decrease) in net assets............. 5,052 NET ASSETS: Beginning of year................................... -- -------------------- End of year......................................... $ 5,052 ==================== PIMCO VIT ALL ASSET INVESTMENT DIVISION ----------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 49,509 $ 21,748 $ 6,301 Net realized gains (losses)......................... 28 (591) 190 Change in unrealized gains (losses) on investments.. (44,010) (24,638) 8,832 -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ 5,527 (3,481) 15,323 -------------------- -------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 9,596 -- -- Net transfers (including fixed account)............. (9,803) 897,967 24,949 Policy charges...................................... (20,445) (7,144) (4,485) Transfers for policy benefits and terminations...... (6,773) (94,966) (6) -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (27,425) 795,857 20,458 -------------------- -------------------- ------------------- Net increase (decrease) in net assets............. (21,898) 792,376 35,781 NET ASSETS: Beginning of year................................... 924,295 131,919 96,138 -------------------- -------------------- ------------------- End of year......................................... $ 902,397 $ 924,295 $ 131,919 ==================== ==================== =================== PIMCO VIT COMMODITYREALRETURN STRATEGY INVESTMENT DIVISION ------------------------------------------- 2014 2013 (d) -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 86 $ -- Net realized gains (losses)......................... (39) (5) Change in unrealized gains (losses) on investments.. (10,088) (126) -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (10,041) (131) -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,721 -- Net transfers (including fixed account)............. 38,376 6,189 Policy charges...................................... (1,596) (275) Transfers for policy benefits and terminations...... (13) -- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 39,488 5,914 -------------------- -------------------- Net increase (decrease) in net assets............. 29,447 5,783 NET ASSETS: Beginning of year................................... 5,783 -- -------------------- -------------------- End of year......................................... $ 35,230 $ 5,783 ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 170 The accompanying notes are an integral part of these financial statements. 171 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
PIMCO VIT LOW DURATION INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 17,764 $ 22,872 $ 18,366 Net realized gains (losses)......................... 512 3,304 1,749 Change in unrealized gains (losses) on investments.. (4,896) (33,450) 34,493 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 13,380 (7,274) 54,608 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 3,323 2,809 33,008 Net transfers (including fixed account)............. -- 888,377 (5,071) Policy charges...................................... (24,792) (36,664) (42,837) Transfers for policy benefits and terminations...... (6,920) (262,466) (202) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (28,389) 592,056 (15,102) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (15,009) 584,782 39,506 NET ASSETS: Beginning of year................................... 1,570,296 985,514 946,008 -------------------- -------------------- -------------------- End of year......................................... $ 1,555,287 $ 1,570,296 $ 985,514 ==================== ==================== ==================== PIONEER VCT MID CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 452 $ 425 $ 1,561 Net realized gains (losses)......................... 7,922 29,038 595 Change in unrealized gains (losses) on investments.. 732 (1,134) 12,468 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 9,106 28,329 14,624 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- 8,995 Net transfers (including fixed account)............. 14,941 (126,970) 1,893 Policy charges...................................... (3,653) (4,969) (6,747) Transfers for policy benefits and terminations...... (72) -- -- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 11,216 (131,939) 4,141 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 20,322 (103,610) 18,765 NET ASSETS: Beginning of year................................... 49,935 153,545 134,780 -------------------- -------------------- -------------------- End of year......................................... $ 70,257 $ 49,935 $ 153,545 ==================== ==================== ==================== PUTNAM VT INTERNATIONAL VALUE INVESTMENT DIVISION ------------------------------------------- 2014 2013 (b) ------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 95 $ -- Net realized gains (losses)......................... 46 10 Change in unrealized gains (losses) on investments.. (775) 477 ------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (634) 487 ------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,288 -- Net transfers (including fixed account)............. 32 6,234 Policy charges...................................... (1,293) (293) Transfers for policy benefits and terminations...... (1) -- ------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 26 5,941 ------------------- -------------------- Net increase (decrease) in net assets............. (608) 6,428 NET ASSETS: Beginning of year................................... 6,428 -- ------------------- -------------------- End of year......................................... $ 5,820 $ 6,428 =================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 172 The accompanying notes are an integral part of these financial statements. 173 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
ROYCE MICRO-CAP INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- $ 38 $ -- Net realized gains (losses)......................... 670 87,715 9,077 Change in unrealized gains (losses) on investments.. (951) (23,953) 15,667 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (281) 63,800 24,744 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 939 1,884 49,620 Net transfers (including fixed account)............. 1 (423,639) -- Policy charges...................................... (80) (6,293) (7,913) Transfers for policy benefits and terminations...... -- (1) (4,908) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 860 (428,049) 36,799 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 579 (364,249) 61,543 NET ASSETS: Beginning of year................................... 7,757 372,006 310,463 -------------------- -------------------- -------------------- End of year......................................... $ 8,336 $ 7,757 $ 372,006 ==================== ==================== ==================== ROYCE SMALL-CAP INVESTMENT DIVISION ------------------------------------------------------------------- 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 64 $ 6,679 $ 586 Net realized gains (losses)......................... 111,348 68,918 35,664 Change in unrealized gains (losses) on investments.. (144,191) 110,499 34,489 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (32,779) 186,096 70,739 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- 8,995 Net transfers (including fixed account)............. (595,217) (28,963) (281,935) Policy charges...................................... (9,562) (10,076) (10,669) Transfers for policy benefits and terminations...... -- -- -- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (604,779) (39,039) (283,609) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (637,558) 147,057 (212,870) NET ASSETS: Beginning of year................................... 688,929 541,872 754,742 -------------------- -------------------- -------------------- End of year......................................... $ 51,371 $ 688,929 $ 541,872 ==================== ==================== ==================== UIF EMERGING MARKETS DEBT INVESTMENT DIVISION ------------------------------------------------------------------ 2014 2013 2012 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 66,166 $ 51,315 $ 16,821 Net realized gains (losses)......................... (17,138) 10,886 2,466 Change in unrealized gains (losses) on investments.. 6,462 (181,259) 89,788 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 55,490 (119,058) 109,075 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 3,052 64,400 64,771 Net transfers (including fixed account)............. (402,394) 136,192 599,117 Policy charges...................................... (17,192) (20,164) (10,880) Transfers for policy benefits and terminations...... (6,416) (83,949) (483) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (422,950) 96,479 652,525 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (367,460) (22,579) 761,600 NET ASSETS: Beginning of year................................... 1,160,019 1,182,598 420,998 -------------------- -------------------- -------------------- End of year......................................... $ 792,559 $ 1,160,019 $ 1,182,598 ==================== ==================== ====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 174 The accompanying notes are an integral part of these financial statements. 175 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONCLUDED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
UIF EMERGING MARKETS EQUITY INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 4,726 $ 14,065 $ -- Net realized gains (losses)......................... 14,990 6,766 (26) Change in unrealized gains (losses) on investments.. (166,226) (38,224) 139,206 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (146,510) (17,393) 139,180 --------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 4,305 58,675 70,772 Net transfers (including fixed account)............. 1,057,866 283,169 302,018 Policy charges...................................... (26,285) (21,217) (17,053) Transfers for policy benefits and terminations...... (3,783) (100,720) (361) --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 1,032,103 219,907 355,376 --------------------- -------------------- --------------------- Net increase (decrease) in net assets............. 885,593 202,514 494,556 NET ASSETS: Beginning of year................................... 1,236,458 1,033,944 539,388 --------------------- -------------------- --------------------- End of year......................................... $ 2,122,051 $ 1,236,458 $ 1,033,944 ===================== ==================== ===================== WELLS FARGO VT TOTAL RETURN BOND INVESTMENT DIVISION -------------------------------------------------------------------- 2014 2013 2012 --------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 5,207 $ 4,298 $ 4,369 Net realized gains (losses)......................... (1,528) 10,856 7,755 Change in unrealized gains (losses) on investments.. 12,966 (21,523) 5,968 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 16,645 (6,369) 18,092 --------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 17,657 30,618 45,280 Net transfers (including fixed account)............. 741,576 (5,806) 301,563 Policy charges...................................... (12,748) (12,342) (11,089) Transfers for policy benefits and terminations...... (5,916) (237,322) -- --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 740,569 (224,852) 335,754 --------------------- -------------------- --------------------- Net increase (decrease) in net assets............. 757,214 (231,221) 353,846 NET ASSETS: Beginning of year................................... 257,839 489,060 135,214 --------------------- -------------------- --------------------- End of year......................................... $ 1,015,053 $ 257,839 $ 489,060 ===================== ==================== =====================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 176 The accompanying notes are an integral part of these financial statements. 177 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 fund, portfolio or series (with the same name) of registered investment management companies (the "Trusts"), which are presented below: AIM Variable Insurance Funds (Invesco Variable Met Investors Series Trust ("MIST")* Insurance Funds) ("Invesco V.I.") Metropolitan Series Fund ("MSF")* AllianceBernstein Variable Products Series Fund, Inc. MFS Variable Insurance Trust ("MFS VIT") ("AllianceBernstein") MFS Variable Insurance Trust II ("MFS VIT II") American Century Variable Portfolios, Inc. Oppenheimer Variable Account Funds ("American Century VP") ("Oppenheimer VA") American Funds Insurance Series ("American Funds") PIMCO Variable Insurance Trust ("PIMCO VIT") Dreyfus Variable Investment Fund ("Dreyfus VIF") Pioneer Variable Contracts Trust ("Pioneer VCT") Fidelity Variable Insurance Products ("Fidelity VIP") Putnam Variable Trust ("Putnam VT") Franklin Templeton Variable Insurance Products Trust Royce Capital Fund ("Royce") ("FTVIPT") Trust for Advised Portfolios ("TAP") Goldman Sachs Variable Insurance Trust The Universal Institutional Funds, Inc. ("UIF") ("Goldman Sachs") Wells Fargo Variable Trust ("Wells Fargo VT") Janus Aspen Series ("Janus Aspen")
*See Note 5 for a discussion of additional information on related party transactions. The assets of each of the Investment Divisions of the Separate Account are registered in the name of the Company. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the Company's other assets and liabilities. The portion of the Separate Account's assets applicable to the Policies is not chargeable with liabilities arising out of any other business the Company may conduct. 2. LIST OF INVESTMENT DIVISIONS A. Premium payments, less any applicable charges, applied to the Separate Account are invested in one or more Investment Divisions in accordance with the selection made by the policy owner. The following Investment Divisions had net assets as of December 31, 2014: AllianceBernstein Global Thematic Growth Investment American Funds U.S. Government/AAA-Rated Division Securities Investment Division AllianceBernstein Intermediate Bond Investment Dreyfus VIF International Value Investment Division Division Fidelity VIP Asset Manager: Growth Investment American Century VP Capital Appreciation Investment Division Division (b) Fidelity VIP Contrafund Investment Division American Funds Bond Investment Division Fidelity VIP Equity-Income Investment Division American Funds Global Small Capitalization Fidelity VIP Freedom 2010 Investment Division Investment Division Fidelity VIP Freedom 2020 Investment Division American Funds Growth Investment Division Fidelity VIP Freedom 2025 Investment Division American Funds Growth-Income Investment Division Fidelity VIP Freedom 2030 Investment Division American Funds International Investment Division Fidelity VIP Freedom 2040 Investment Division
178 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 2. LIST OF INVESTMENT DIVISIONS -- (CONTINUED) Fidelity VIP Freedom 2050 Investment Division MIST Invesco Small Cap Growth Investment Fidelity VIP High Income Investment Division Division (a) Fidelity VIP Investment Grade Bond Investment MIST JPMorgan Global Active Allocation Investment Division Division Fidelity VIP Mid Cap Investment Division MIST JPMorgan Small Cap Value Investment Division FTVIPT Franklin Income VIP Investment Division MIST Loomis Sayles Global Markets Investment FTVIPT Franklin Mutual Global Discovery VIP Division Investment Division MIST Lord Abbett Bond Debenture Investment FTVIPT Franklin Mutual Shares VIP Investment Division Division MIST Met/Templeton International Bond Investment FTVIPT Templeton Foreign VIP Investment Division Division FTVIPT Templeton Global Bond VIP Investment MIST MetLife Asset Allocation 100 Investment Division Division (a) Goldman Sachs Mid-Cap Value Investment Division MIST MetLife Balanced Plus Investment Division Goldman Sachs Small Cap Equity Insights Investment MIST MetLife Multi-Index Targeted Risk Investment Division Division Invesco V.I. Comstock Investment Division MIST MetLife Small Cap Value Investment Division Invesco V.I. Government Securities Investment MIST MFS Emerging Markets Equity Investment Division Division (a) Invesco V.I. International Growth Investment Division MIST MFS Research International Investment Janus Aspen Balanced Investment Division Division (a) Janus Aspen Forty Investment Division MIST Morgan Stanley Mid Cap Growth Investment Janus Aspen Janus Investment Division Division Janus Aspen Overseas Investment Division MIST Oppenheimer Global Equity Investment MFS VIT Global Equity Investment Division Division MFS VIT New Discovery Investment Division MIST PIMCO Inflation Protected Bond Investment MFS VIT Value Investment Division Division MFS VIT II High Yield Investment Division MIST PIMCO Total Return Investment Division MIST AllianceBernstein Global Dynamic Allocation MIST Pioneer Fund Investment Division Investment Division MIST Pyramis Managed Risk Investment Division MIST Allianz Global Investors Dynamic Multi-Asset MIST Schroders Global Multi-Asset Investment Plus Investment Division (b) Division MIST American Funds Balanced Allocation MIST SSgA Growth and Income ETF Investment Investment Division Division MIST American Funds Growth Allocation Investment MIST SSgA Growth ETF Investment Division Division MIST T. Rowe Price Large Cap Value Investment MIST American Funds Moderate Allocation Division Investment Division MIST T. Rowe Price Mid Cap Growth Investment MIST AQR Global Risk Balanced Investment Division Division (a) MIST BlackRock Global Tactical Strategies Investment MIST WMC Large Cap Research Investment Division Division MSF Baillie Gifford International Stock Investment MIST Clarion Global Real Estate Investment Division Division MIST ClearBridge Aggressive Growth Investment MSF Barclays Aggregate Bond Index Investment Division Division MIST Harris Oakmark International Investment MSF BlackRock Bond Income Investment Division Division MSF BlackRock Capital Appreciation Investment MIST Invesco Balanced-Risk Allocation Investment Division Division MSF BlackRock Large Cap Value Investment Division MIST Invesco Mid Cap Value Investment Division MSF BlackRock Money Market Investment Division
179 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 2. LIST OF INVESTMENT DIVISIONS -- (CONCLUDED) MSF Frontier Mid Cap Growth Investment Division MSF T. Rowe Price Small Cap Growth Investment MSF Jennison Growth Investment Division Division MSF Loomis Sayles Small Cap Core Investment MSF Van Eck Global Natural Resources Investment Division Division MSF Loomis Sayles Small Cap Growth Investment MSF Western Asset Management Strategic Bond Division Opportunities Investment Division MSF Met/Artisan Mid Cap Value Investment MSF Western Asset Management U.S. Government Division (a) Investment Division MSF MetLife Asset Allocation 20 Investment MSF WMC Balanced Investment Division Division (a) MSF WMC Core Equity Opportunities Investment MSF MetLife Asset Allocation 40 Investment Division Division (a) Oppenheimer VA Main Street Small Cap Investment MSF MetLife Asset Allocation 60 Investment Division Division (a) PIMCO VIT All Asset Investment Division MSF MetLife Asset Allocation 80 Investment Division PIMCO VIT CommodityRealReturn Strategy MSF MetLife Mid Cap Stock Index Investment Investment Division Division PIMCO VIT Low Duration Investment Division MSF MetLife Stock Index Investment Division Pioneer VCT Mid Cap Value Investment Division MSF MFS Total Return Investment Division (a) Putnam VT International Value Investment Division MSF MFS Value Investment Division Royce Micro-Cap Investment Division MSF MSCI EAFE Index Investment Division Royce Small-Cap Investment Division MSF Neuberger Berman Genesis Investment Division UIF Emerging Markets Debt Investment Division MSF Russell 2000 Index Investment Division UIF Emerging Markets Equity Investment Division MSF T. Rowe Price Large Cap Growth Investment Wells Fargo VT Total Return Bond Investment Division Division
(a) This Investment Division invests in two or more share classes within the underlying fund, portfolio or series of the Trusts. (b) This Investment Division began operations during the year ended December 31, 2014. B. The following Investment Divisions had no net assets as of December 31, 2014: AllianceBernstein International Value Investment MIST PanAgora Global Diversified Risk Investment Division Division* American Funds High-Income Bond Investment PIMCO VIT Long-Term U.S. Government Investment Division Division Fidelity VIP Freedom 2015 Investment Division TAP 1919 Variable Socially Responsive Balanced Janus Aspen Enterprise Investment Division Investment Division
*This Investment Division commenced on April 28, 2014. 3. PORTFOLIO CHANGES The following Investment Divisions ceased operations during the year ended December 31, 2014: American Century VP Vista Investment Division MIST MetLife Growth Strategy Investment Division Invesco V.I. Global Real Estate Investment Division Pioneer VCT Emerging Markets Investment Division MIST ClearBridge Aggressive Growth II Investment Division
180 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 3. PORTFOLIO CHANGES -- (CONCLUDED) The operations of the Investment Divisions were affected by the following changes that occurred during the year ended December 31, 2014: NAME CHANGES: Former Name New Name Franklin Income Securities Fund Franklin Income VIP Fund Mutual Global Discovery Securities Fund Franklin Mutual Global Discovery VIP Fund Mutual Shares Securities Fund Franklin Mutual Shares VIP Fund Templeton Foreign Securities Fund Templeton Foreign VIP Fund Templeton Global Bond Securities Fund Templeton Global Bond VIP Fund Goldman Sachs Structured Small Cap Equity Fund Goldman Sachs Small Cap Equity Insights Fund (MIST) BlackRock Large Cap Core Portfolio (MIST) WMC Large Cap Research Portfolio (MIST) MetLife Aggressive Strategy Portfolio (MIST) MetLife Asset Allocation 100 Portfolio (MIST) Third Avenue Small Cap Value Portfolio (MIST) MetLife Small Cap Value Portfolio (MSF) BlackRock Diversified Portfolio (MSF) WMC Balanced Portfolio (MSF) Davis Venture Value Portfolio (MSF) WMC Core Equity Opportunities Portfolio (MSF) MetLife Conservative Allocation Portfolio (MSF) MetLife Asset Allocation 20 Portfolio (MSF) MetLife Conservative to Moderate Allocation (MSF) MetLife Asset Allocation 40 Portfolio Portfolio (MSF) MetLife Moderate Allocation Portfolio (MSF) MetLife Asset Allocation 60 Portfolio (MSF) MetLife Moderate to Aggressive Allocation (MSF) MetLife Asset Allocation 80 Portfolio Portfolio
MERGERS: Former Portfolio New Portfolio American Century VP Vista Fund American Century VP Capital Appreciation Fund (MIST) ClearBridge Aggressive Growth Portfolio II (MIST) ClearBridge Aggressive Growth Portfolio (MIST) MetLife Growth Strategy Portfolio (MSF) MetLife Asset Allocation 80 Portfolio
REORGANIZATION: Former Portfolio New Portfolio (LMPVET) Legg Mason Investment Counsel Variable (TAP) 1919 Variable Socially Responsive Balanced Social Awareness Portfolio Fund
SUBSTITUTIONS: Former Portfolio New Portfolio Invesco V.I. Global Real Estate Fund (MIST) Clarion Global Real Estate Portfolio Pioneer Emerging Markets VCT Portfolio (MIST) MFS Emerging Markets Equity 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, which follow the accounting and reporting guidance in Financial Accounting Standards Board ACCOUNTING STANDARDS CODIFICATION TOPIC 946. 181 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 4. SIGNIFICANT ACCOUNTING POLICIES -- (CONTINUED) 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 An Investment Division's investment in shares of a fund, portfolio or series 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. 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. 182 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 4. SIGNIFICANT ACCOUNTING POLICIES -- (CONCLUDED) PREMIUM PAYMENTS The Company deducts a sales charge for certain policies and a state premium tax charge from premiums before amounts are allocated to the Separate Account. In the case of certain Policies, the Company also deducts a federal income tax charge before amounts are allocated to the Separate Account. This federal income tax charge is imposed in connection with certain Policies to recover a portion of the federal income tax adjustment attributable to policy acquisition expenses. Net premiums are reported as premium 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 Investment Divisions within the Separate Account or into or out of the fixed account, which is part of 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. 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 charge for the year ended December 31, 2014: ------------------------------------------------------------------------------------------------------------------------- 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 policy charges in the 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. A transfer fee ranging from $0 to $25 may be deducted after twelve transfers made in a policy year. Administrative charges range from $0 to $15 and are assessed monthly. Policy fees are assessed monthly and range from $9 to $12 for policies with face amounts less than $50,000 and from $8 to $15 for policies with face amounts between $50,000 and $249,999 depending on the policy year. No policy fee applies to policies issued with face amounts equal to or greater than $250,000. 183 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 5. EXPENSES AND RELATED PARTY TRANSACTIONS -- (CONCLUDED) 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. 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 $83.33 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 $100 of the benefit provided. The above referenced charges are paid to the Company and are recorded as policy charges in the accompanying statements of changes in net assets of the applicable Investment Divisions for the years ended December 31, 2014, 2013 and 2012. MetLife Advisers, LLC, which acts in the capacity of investment adviser to the portfolios of the MIST and MSF Trusts, is an affiliate of the Company. 184 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS
AS OF DECEMBER 31, ------------------------ SHARES COST ($) ----------- ----------- 2014 2014 ----------- ----------- AllianceBernstein Global Thematic Growth Investment Division...... 3,579 68,271 AllianceBernstein Intermediate Bond Investment Division...... 5,292 63,067 American Century VP Capital Appreciation Investment Division...... 28 390 American Funds Bond Investment Division...... 545,746 5,928,585 American Funds Global Small Capitalization Investment Division...... 2,751,877 56,153,799 American Funds Growth Investment Division...... 2,065,511 110,234,883 American Funds Growth-Income Investment Division...... 2,023,101 72,808,492 American Funds International Investment Division...... 33,613 622,862 American Funds U.S. Government/AAA-Rated Securities Investment Division................. 3,951 49,102 Dreyfus VIF International Value Investment Division................. 20,907 263,440 Fidelity VIP Asset Manager: Growth Investment Division................. 109,678 1,496,837 Fidelity VIP Contrafund Investment Division...... 78,256 1,971,479 Fidelity VIP Equity-Income Investment Division...... 1,042 22,763 Fidelity VIP Freedom 2010 Investment Division...... 3,865 42,914 Fidelity VIP Freedom 2020 Investment Division...... 77,099 661,785 Fidelity VIP Freedom 2025 Investment Division...... 2,856 33,890 Fidelity VIP Freedom 2030 Investment Division...... 6,277 80,204 Fidelity VIP Freedom 2040 Investment Division...... 2,867 53,661 Fidelity VIP Freedom 2050 Investment Division...... 1,584 26,113 FOR THE YEAR ENDED DECEMBER 31, ---------------------------------------------------------------------------------- COST OF PROCEEDS PURCHASES ($) FROM SALES ($) --------------------------------------- ----------------------------------------- 2014 2013 2012 2014 2013 2012 ------------- ------------ ---------- ------------- ------------- ----------- AllianceBernstein Global Thematic Growth Investment Division...... 17,021 7,870 3,785 11,424 16,644 4,346,961 AllianceBernstein Intermediate Bond Investment Division...... 3,407 6,655 57,983 2,264 47,232 1,934 American Century VP Capital Appreciation Investment Division...... 589(a) -- -- 211(a) -- -- American Funds Bond Investment Division...... 879,839 1,038,371 1,312,217 670,493 587,559 763,603 American Funds Global Small Capitalization Investment Division...... 2,323,592 2,195,162 3,115,383 4,957,120 5,135,958 5,038,503 American Funds Growth Investment Division...... 11,457,537 3,805,307 3,746,471 11,167,958 11,132,333 10,752,272 American Funds Growth-Income Investment Division...... 7,783,956 3,196,534 2,947,311 7,114,338 6,413,846 5,517,911 American Funds International Investment Division...... 49,085 273,741 53,707 24,982 231,378 107,360 American Funds U.S. Government/AAA-Rated Securities Investment Division................. 1,772 6,097 7,935 1,495 1,780 7,421 Dreyfus VIF International Value Investment Division................. 3,201 4,196 5,777 2,373 5,015 2,581 Fidelity VIP Asset Manager: Growth Investment Division................. 181,483 141,995 564,188 117,715 548,689 229,156 Fidelity VIP Contrafund Investment Division...... 226,935 410,978 256,811 199,157 755,794 392,517 Fidelity VIP Equity-Income Investment Division...... 2,954 17,769 51,762 11,967 51,901 7,307 Fidelity VIP Freedom 2010 Investment Division...... 21,634 3,749 3,999 20,447 1,304 1,313 Fidelity VIP Freedom 2020 Investment Division...... 165,843 145,138 38,622 171,907 36,374 41,771 Fidelity VIP Freedom 2025 Investment Division...... 1,384 39,398(b) -- 4,514 2,977(b) -- Fidelity VIP Freedom 2030 Investment Division...... 140,205 30,075 2,517 122,464 19,207 23,108 Fidelity VIP Freedom 2040 Investment Division...... 93,959 11,359(c) -- 52,334 76(c) -- Fidelity VIP Freedom 2050 Investment Division...... 60,842 518 2,492 57,314 489 302
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 185 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS -- (CONTINUED)
AS OF DECEMBER 31, ------------------------- SHARES COST ($) ----------- ------------ 2014 2014 ----------- ------------ Fidelity VIP High Income Investment Division..... 31,192 183,406 Fidelity VIP Investment Grade Bond Investment Division................ 99,329 1,279,762 Fidelity VIP Mid Cap Investment Division..... 6,904 202,790 FTVIPT Franklin Income VIP Investment Division................ 1,572 26,232 FTVIPT Franklin Mutual Global Discovery VIP Investment Division..... 22,091 452,831 FTVIPT Franklin Mutual Shares VIP Investment Division................ 1,875 39,246 FTVIPT Templeton Foreign VIP Investment Division................ 348,590 5,205,211 FTVIPT Templeton Global Bond VIP Investment Division................ 66,643 1,266,691 Goldman Sachs Mid-Cap Value Investment Division................ 17,284 275,724 Goldman Sachs Small Cap Equity Insights Investment Division..... 2,711 34,247 Invesco V.I. Comstock Investment Division..... 18,217 220,508 Invesco V.I. Government Securities Investment Division................ 7 84 Invesco V.I. International Growth Investment Division................ 10,052 323,147 Janus Aspen Balanced Investment Division..... 32,844 930,071 Janus Aspen Forty Investment Division..... 14,037 479,580 Janus Aspen Janus Investment Division..... 13,423 283,280 Janus Aspen Overseas Investment Division..... 1,504 67,837 MFS VIT Global Equity Investment Division..... 9,707 143,234 MFS VIT New Discovery Investment Division..... 13,520 197,510 FOR THE YEAR ENDED DECEMBER 31, ----------------------------------------------------------------------------- COST OF PROCEEDS PURCHASES ($) FROM SALES ($) -------------------------------------- ------------------------------------- 2014 2013 2012 2014 2013 2012 --------- ------------ ---------- ------- ------------ --------- Fidelity VIP High Income Investment Division..... 21,533 9,749 125,580 9,295 6,850 2,451 Fidelity VIP Investment Grade Bond Investment Division................ 492,396 1,222,120 1,921,672 996,618 1,702,641 1,407,822 Fidelity VIP Mid Cap Investment Division..... 20,809 36,720 173,748 24,409 710,324 67,376 FTVIPT Franklin Income VIP Investment Division................ 30,058 1,158(d) -- 4,384 551(d) -- FTVIPT Franklin Mutual Global Discovery VIP Investment Division..... 87,301 138,324 175,011 79,798 553,153 195,072 FTVIPT Franklin Mutual Shares VIP Investment Division................ 19,716 23,740(d) -- 2,934 1,637(d) -- FTVIPT Templeton Foreign VIP Investment Division................ 2,395,132 488,568 878,128 901,189 808,327 422,457 FTVIPT Templeton Global Bond VIP Investment Division................ 94,840 996,332 146,290 136,586 115,913 19,865 Goldman Sachs Mid-Cap Value Investment Division................ 54,571 60,380 2,932 35,646 75,921 57,554 Goldman Sachs Small Cap Equity Insights Investment Division..... 7,642 14,789 6,983 9,176 4,535 35,753 Invesco V.I. Comstock Investment Division..... 14,379 4,245 29,964 7,046 5,974 16,512 Invesco V.I. Government Securities Investment Division................ 282 11,593 15,310 11,325 357 36,465 Invesco V.I. International Growth Investment Division................ 23,557 347,644 6,090,412 66,518 6,733,613 311,291 Janus Aspen Balanced Investment Division..... 131,441 103,316 249,875 82,517 330,801 555,156 Janus Aspen Forty Investment Division..... 266,429 25,891 251,563 400,760 268,869 231,604 Janus Aspen Janus Investment Division..... 42,556 7,622 34,590 23,494 736,912 57,167 Janus Aspen Overseas Investment Division..... 14,546 17,811 114,730 21,028 430,241 18,736 MFS VIT Global Equity Investment Division..... 11,222 15,146 135,732 11,006 3,782 12,826 MFS VIT New Discovery Investment Division..... 45,561 1,726 42,794 6,105 10,583 4,661
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 186 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS -- (CONTINUED)
AS OF DECEMBER 31, ------------------------ SHARES COST ($) ----------- ----------- 2014 2014 ----------- ----------- MFS VIT Value Investment Division................ 1,101 14,322 MFS VIT II High Yield Investment Division..... 23,822 145,784 MIST AllianceBernstein Global Dynamic Allocation Investment Division................ 4,214 46,956 MIST Allianz Global Investors Dynamic Multi-Asset Plus Investment Division..... 7 76 MIST American Funds Balanced Allocation Investment Division..... 80,874 794,696 MIST American Funds Growth Allocation Investment Division..... 143,369 1,364,585 MIST American Funds Moderate Allocation Investment Division..... 96,201 974,847 MIST AQR Global Risk Balanced Investment Division................ 16,545 184,610 MIST BlackRock Global Tactical Strategies Investment Division..... 17,510 187,454 MIST Clarion Global Real Estate Investment Division................ 2,531,666 29,983,323 MIST ClearBridge Aggressive Growth Investment Division..... 2,960,463 32,892,931 MIST Harris Oakmark International Investment Division................ 2,605,443 38,234,966 MIST Invesco Balanced- Risk Allocation Investment Division..... 2,914 30,701 MIST Invesco Mid Cap Value Investment Division................ 4,659,832 80,675,509 MIST Invesco Small Cap Growth Investment Division................ 362,671 5,459,934 MIST JPMorgan Global Active Allocation Investment Division..... 14,442 162,480 FOR THE YEAR ENDED DECEMBER 31, -------------------------------------------------------------------------------------- COST OF PROCEEDS PURCHASES ($) FROM SALES ($) ------------------------------------------- ----------------------------------------- 2014 2013 2012 2014 2013 2012 ------------- ------------- ------------- ------------- ------------ ------------ MFS VIT Value Investment Division................ 955 274 1,023 1,720 1,372 33,595 MFS VIT II High Yield Investment Division..... 8,053 147,796(e) -- 9,380 707(e) -- MIST AllianceBernstein Global Dynamic Allocation Investment Division................ 17,377 33,068 8,989(f) 3,240 7,386 2,055(f) MIST Allianz Global Investors Dynamic Multi-Asset Plus Investment Division..... 100(a) -- -- 24(a) -- -- MIST American Funds Balanced Allocation Investment Division..... 187,720 136,505 111,688 60,112 46,230 50,779 MIST American Funds Growth Allocation Investment Division..... 432,644 596,532 211,211 272,941 241,084 178,743 MIST American Funds Moderate Allocation Investment Division..... 261,530 332,563 223,173 80,567 87,879 72,031 MIST AQR Global Risk Balanced Investment Division................ 57,534 202,173 30,767(f) 35,216 63,799 6,330(f) MIST BlackRock Global Tactical Strategies Investment Division..... 104,608 72,022 40,820(f) 14,302 13,676 2,670(f) MIST Clarion Global Real Estate Investment Division................ 7,937,396 4,872,884 3,856,513 7,343,310 2,567,939 2,040,067 MIST ClearBridge Aggressive Growth Investment Division..... 22,044,282 2,383,159 770,047 3,068,564 1,442,150 1,188,432 MIST Harris Oakmark International Investment Division................ 7,989,660 12,366,501 2,666,808 11,781,678 3,801,502 3,615,172 MIST Invesco Balanced- Risk Allocation Investment Division..... 10,894 28,473 9,936(f) 4,860 11,354 2,420(f) MIST Invesco Mid Cap Value Investment Division................ 17,257,547 1,498,456 76,386,802 6,663,774 5,791,979 4,011,220 MIST Invesco Small Cap Growth Investment Division................ 1,841,187 1,526,001 866,163 1,116,722 1,137,610 1,148,655 MIST JPMorgan Global Active Allocation Investment Division..... 72,943 133,918 21,306(f) 15,555 47,621 2,566(f)
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 187 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS -- (CONTINUED)
AS OF DECEMBER 31, ------------------------ SHARES COST ($) ---------- ------------ 2014 2014 ---------- ------------ MIST JPMorgan Small Cap Value Investment Division................ 16,330 281,643 MIST Loomis Sayles Global Markets Investment Division..... 28,001 379,139 MIST Lord Abbett Bond Debenture Investment Division................ 2,196,552 26,792,695 MIST Met/Templeton International Bond Investment Division..... 15,359 176,398 MIST MetLife Asset Allocation 100 Investment Division..... 1,489,336 16,192,783 MIST MetLife Balanced Plus Investment Division................ 20,128 229,639 MIST MetLife Multi-Index Targeted Risk Investment Division................ 9,919 117,011 MIST MetLife Small Cap Value Investment Division................ 42,448 619,619 MIST MFS Emerging Markets Equity Investment Division..... 54,415 550,380 MIST MFS Research International Investment Division................ 1,756,047 18,966,440 MIST Morgan Stanley Mid Cap Growth Investment Division................ 14,166,283 145,643,325 MIST Oppenheimer Global Equity Investment Division................ 2,381,048 32,138,325 MIST PIMCO Inflation Protected Bond Investment Division..... 1,118,847 12,369,420 MIST PIMCO Total Return Investment Division..... 3,885,936 45,989,560 MIST Pioneer Fund Investment Division..... 15,539 174,337 MIST Pyramis Managed Risk Investment Division................ 137 1,522 FOR THE YEAR ENDED DECEMBER 31, ------------------------------------------------------------------------------------ COST OF PROCEEDS PURCHASES ($) FROM SALES ($) ---------------------------------------- ------------------------------------------ 2014 2013 2012 2014 2013 2012 ---------- ------------ ------------ ----------- -------------- ------------- MIST JPMorgan Small Cap Value Investment Division................ 107,150 203,341 19,336 49,885 18,320 21,553 MIST Loomis Sayles Global Markets Investment Division..... 47,648 386,272(d) -- 48,429 11,829(d) -- MIST Lord Abbett Bond Debenture Investment Division................ 5,135,027 3,850,241 4,029,220 4,601,508 3,533,230 2,630,362 MIST Met/Templeton International Bond Investment Division..... 99,613 105,910 3,780(f) 8,955 22,711 1,243(f) MIST MetLife Asset Allocation 100 Investment Division..... 2,705,529 1,755,615 1,631,765 1,925,555 1,915,678 989,906 MIST MetLife Balanced Plus Investment Division................ 157,666 107,011 50,269(f) 16,033 66,151 6,146(f) MIST MetLife Multi-Index Targeted Risk Investment Division................ 116,860 10,029(d) -- 2,566 7,161(d) -- MIST MetLife Small Cap Value Investment Division................ 53,036 63,430 126,084 120,727 233,699 192,017 MIST MFS Emerging Markets Equity Investment Division..... 409,348 203,989 153,279 127,301 16,542 95,164 MIST MFS Research International Investment Division................ 1,401,947 4,346,021 3,674,489 1,748,099 1,625,675 1,969,844 MIST Morgan Stanley Mid Cap Growth Investment Division................ 2,474,168 3,506,234 4,192,041 15,801,000 14,826,330 13,094,724 MIST Oppenheimer Global Equity Investment Division................ 3,170,102 2,321,885 1,995,431 4,390,657 3,889,775 4,751,183 MIST PIMCO Inflation Protected Bond Investment Division..... 1,814,740 2,836,674 4,918,545 1,907,316 3,102,046 1,739,898 MIST PIMCO Total Return Investment Division..... 2,535,003 9,342,752 6,325,271 6,427,172 5,838,413 5,836,729 MIST Pioneer Fund Investment Division..... 61,661 7,882 7,582 2,073 47,925 4,551 MIST Pyramis Managed Risk Investment Division................ 1,698 292(d) -- 476 --(d) --
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 188 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS -- (CONTINUED)
AS OF DECEMBER 31, ----------------------- SHARES COST ($) ---------- ----------- 2014 2014 ---------- ----------- MIST Schroders Global Multi-Asset Investment Division............... 2,685 29,759 MIST SSgA Growth and Income ETF Investment Division............... 611,571 6,990,886 MIST SSgA Growth ETF Investment Division.... 513,599 5,765,554 MIST T. Rowe Price Large Cap Value Investment Division............... 66,664 1,702,047 MIST T. Rowe Price Mid Cap Growth Investment Division............... 2,495,523 22,606,849 MIST WMC Large Cap Research Investment Division............... 28,462,883 305,484,709 MSF Baillie Gifford International Stock Investment Division.... 4,092,604 45,323,026 MSF Barclays Aggregate Bond Index Investment Division............... 11,664,487 127,947,920 MSF BlackRock Bond Income Investment Division............... 746,115 80,232,641 MSF BlackRock Capital Appreciation Investment Division............... 236,376 5,905,934 MSF BlackRock Large Cap Value Investment Division............... 2,030,413 20,929,786 MSF BlackRock Money Market Investment Division............... 300,328 30,032,793 MSF Frontier Mid Cap Growth Investment Division............... 6,318,661 154,154,563 MSF Jennison Growth Investment Division.... 1,408,541 16,419,470 MSF Loomis Sayles Small Cap Core Investment Division............... 85,796 18,983,963 MSF Loomis Sayles Small Cap Growth Investment Division............... 773,647 8,310,626 FOR THE YEAR ENDED DECEMBER 31, -------------------------------------------------------------------------------- COST OF PROCEEDS PURCHASES ($) FROM SALES ($) --------------------------------------- --------------------------------------- 2014 2013 2012 2014 2013 2012 ---------- ---------- ------------- ---------- ----------- -------------- MIST Schroders Global Multi-Asset Investment Division............... 11,548 20,776 8,021(f) 3,147 5,512 2,255(f) MIST SSgA Growth and Income ETF Investment Division............... 1,761,161 1,997,849 1,824,928 1,687,133 859,987 688,031 MIST SSgA Growth ETF Investment Division.... 1,868,438 1,446,527 1,113,746 847,985 671,592 500,843 MIST T. Rowe Price Large Cap Value Investment Division............... 147,425 420,793 76,536 28,700 193,933 17,219 MIST T. Rowe Price Mid Cap Growth Investment Division............... 5,023,487 3,029,264 3,759,855 2,437,153 2,799,197 7,974,926 MIST WMC Large Cap Research Investment Division............... 8,159,906 6,774,176 5,579,948 28,472,042 26,186,441 24,675,854 MSF Baillie Gifford International Stock Investment Division.... 1,702,428 2,118,267 2,184,026 3,434,170 3,108,949 4,015,643 MSF Barclays Aggregate Bond Index Investment Division............... 17,873,747 20,021,956 18,934,907 11,732,000 8,161,697 11,439,455 MSF BlackRock Bond Income Investment Division............... 5,415,462 8,070,467 5,640,825 6,638,355 6,400,153 7,542,088 MSF BlackRock Capital Appreciation Investment Division............... 690,157 3,327,801 7,158,245 12,805,858 1,550,635 2,120,133 MSF BlackRock Large Cap Value Investment Division............... 6,262,989 2,342,311 3,386,813 1,834,624 1,620,473 1,826,005 MSF BlackRock Money Market Investment Division............... 18,335,118 8,919,408 13,187,844 12,084,209 8,411,979 10,707,190 MSF Frontier Mid Cap Growth Investment Division............... 21,151,998 8,476,019 2,359,607 17,712,139 22,525,722 16,639,363 MSF Jennison Growth Investment Division.... 3,179,188 913,517 5,678,348 2,763,458 2,926,328 1,525,681 MSF Loomis Sayles Small Cap Core Investment Division............... 3,980,334 2,698,843 1,244,281 1,814,675 2,319,697 1,870,414 MSF Loomis Sayles Small Cap Growth Investment Division............... 2,282,405 1,502,732 435,159 1,779,900 1,369,444 1,390,992
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 189 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS -- (CONTINUED)
AS OF DECEMBER 31, FOR THE YEAR ENDED DECEMBER 31, ------------------------ ------------------------------------------------------------------------- COST OF PROCEEDS SHARES COST ($) PURCHASES ($) FROM SALES ($) ---------- ------------ ----------------------------------- ----------------------------------- 2014 2014 2014 2013 2012 2014 2013 2012 ---------- ------------ ---------- ---------- ---------- ---------- ---------- ---------- MSF Met/Artisan Mid Cap Value Investment Division............... 229,147 47,205,549 1,388,923 1,897,264 1,652,342 4,484,383 4,831,177 3,672,223 MSF MetLife Asset Allocation 20 Investment Division.... 477,727 5,418,891 1,528,404 1,016,919 1,835,676 974,749 1,287,364 1,004,176 MSF MetLife Asset Allocation 40 Investment Division.... 783,233 8,930,537 1,909,288 1,722,153 2,243,025 1,095,441 1,719,216 731,687 MSF MetLife Asset Allocation 60 Investment Division.... 3,959,990 43,767,135 7,170,769 5,705,492 5,656,884 4,378,369 6,533,709 4,063,798 MSF MetLife Asset Allocation 80 Investment Division.... 6,573,430 72,363,864 7,388,669 7,738,825 7,501,562 6,440,275 8,434,282 5,594,631 MSF MetLife Mid Cap Stock Index Investment Division............... 4,690,948 60,746,648 8,192,648 13,448,733 6,434,902 18,250,892 7,654,195 6,851,251 MSF MetLife Stock Index Investment Division.... 21,338,774 664,443,857 55,709,939 44,934,052 41,740,053 76,321,598 61,796,495 56,539,432 MSF MFS Total Return Investment Division.... 57,815 7,957,251 862,352 938,490 1,197,544 1,045,972 830,981 1,043,992 MSF MFS Value Investment Division.... 4,746,167 63,854,211 6,999,445 13,685,105 3,310,186 7,007,481 6,070,278 4,486,581 MSF MSCI EAFE Index Investment Division.... 6,140,570 69,664,087 10,695,798 7,260,878 7,247,918 7,195,699 7,024,358 7,865,571 MSF Neuberger Berman Genesis Investment Division............... 5,911,710 85,325,484 2,063,278 7,027,531 1,372,639 7,736,851 7,742,991 5,678,800 MSF Russell 2000 Index Investment Division.... 3,663,212 46,122,490 6,587,826 3,029,528 2,536,084 6,379,754 6,463,070 5,292,336 MSF T. Rowe Price Large Cap Growth Investment Division............... 3,364,096 49,443,509 7,579,276 15,736,961 2,729,462 6,082,255 6,944,037 3,564,278 MSF T. Rowe Price Small Cap Growth Investment Division............... 4,688,390 66,379,597 10,586,051 9,391,866 12,017,765 25,182,622 11,430,616 10,094,477 MSF Van Eck Global Natural Resources Investment Division.... 15,563 211,110 134,400 114,120 52,989 80,461 11,294 9,747 MSF Western Asset Management Strategic Bond Opportunities Investment Division.... 1,937,099 24,190,106 2,618,269 3,018,642 2,398,460 1,964,514 2,127,409 2,267,683 MSF Western Asset Management U.S. Government Investment Division............... 1,353,100 16,365,737 1,153,933 1,874,177 1,529,728 1,400,796 1,529,016 1,548,704
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 190 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS -- (CONCLUDED)
AS OF DECEMBER 31, ------------------------ SHARES COST ($) ----------- ----------- 2014 2014 ----------- ----------- MSF WMC Balanced Investment Division..... 14,006,062 227,415,723 MSF WMC Core Equity Opportunities Investment Division..... 1,751,749 51,108,535 Oppenheimer VA Main Street Small Cap Investment Division..... 190 4,854 PIMCO VIT All Asset Investment Division..... 87,104 963,388 PIMCO VIT Commodity RealReturn Strategy Investment Division..... 7,249 45,443 PIMCO VIT Low Duration Investment Division..... 147,127 1,541,416 Pioneer VCT Mid Cap Value Investment Division..... 3,083 53,268 Putnam VT International Value Investment Division................ 589 6,119 Royce Micro-Cap Investment Division..... 733 7,741 Royce Small-Cap Investment Division..... 4,061 48,922 UIF Emerging Markets Debt Investment Division................ 99,693 877,077 UIF Emerging Markets Equity Investment Division................ 151,792 2,246,937 Wells Fargo VT Total Return Bond Investment Division................ 96,594 1,015,156 FOR THE YEAR ENDED DECEMBER 31, ---------------------------------------------------------------------------------- COST OF PROCEEDS PURCHASES ($) FROM SALES ($) --------------------------------------- ----------------------------------------- 2014 2013 2012 2014 2013 2012 ------------ ------------ ---------- ------------- ------------- ----------- MSF WMC Balanced Investment Division..... 7,536,901 9,203,469 8,590,251 22,681,028 19,565,615 21,948,665 MSF WMC Core Equity Opportunities Investment Division..... 7,579,420 3,803,213 2,240,132 5,561,430 6,337,042 3,984,624 Oppenheimer VA Main Street Small Cap Investment Division..... 4,945(g) -- -- 91(g) -- -- PIMCO VIT All Asset Investment Division..... 59,597 919,742 31,250 37,514 102,137 4,536 PIMCO VIT Commodity RealReturn Strategy Investment Division..... 40,783 6,189(d) -- 1,248 275(d) -- PIMCO VIT Low Duration Investment Division..... 21,087 932,742 47,764 31,701 317,710 43,068 Pioneer VCT Mid Cap Value Investment Division..... 22,259 425 13,669 3,724 131,940 7,978 Putnam VT International Value Investment Division................ 1,415 6,233(b) -- 1,293 293(b) -- Royce Micro-Cap Investment Division..... 1,597 2,118 56,398 80 429,932 11,535 Royce Small-Cap Investment Division..... 399,926 226,942 194,261 998,708 224,586 463,815 UIF Emerging Markets Debt Investment Division................ 126,705 271,301 734,902 474,385 107,779 65,546 UIF Emerging Markets Equity Investment Division................ 1,371,355 399,267 423,867 334,525 165,296 68,649 Wells Fargo VT Total Return Bond Investment Division................ 802,502 59,791 435,287 56,718 270,977 88,422
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 191 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012:
ALLIANCEBERNSTEIN GLOBAL THEMATIC GROWTH INVESTMENT DIVISION --------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ------------------ Units beginning of year.. 10,121 11,630 914,212 Units issued and transferred from other funding options....... 2,619 1,489 797 Units redeemed and transferred to other funding options....... (1,692) (2,998) (903,379) ------------------ ----------------- ------------------ Units end of year........ 11,048 10,121 11,630 ================== ================= ================== AMERICAN CENTURY VP CAPITAL ALLIANCEBERNSTEIN INTERMEDIATE BOND APPRECIATION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------------------------------------- ------------------- 2014 2013 2012 2014 (a) ----------------- ------------------ ------------------ ------------------- Units beginning of year.. 3,812 6,675 3,232 -- Units issued and transferred from other funding options....... 44 219 3,563 32 Units redeemed and transferred to other funding options....... (144) (3,082) (120) (11) ----------------- ------------------ ------------------ ------------------- Units end of year........ 3,712 3,812 6,675 21 ================= ================== ================== =================== AMERICAN FUNDS BOND INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ----------------- ------------------ ----------------- Units beginning of year.. 417,001 397,946 367,699 Units issued and transferred from other funding options....... 99,347 106,636 131,998 Units redeemed and transferred to other funding options....... (93,794) (87,581) (101,751) ----------------- ------------------ ----------------- Units end of year........ 422,554 417,001 397,946 ================= ================== =================
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 1,848,240 1,947,587 2,037,588 Units issued and transferred from other funding options....... 218,125 249,505 343,427 Units redeemed and transferred to other funding options....... (293,650) (348,852) (433,428) ----------------- ----------------- ----------------- Units end of year........ 1,772,715 1,848,240 1,947,587 ================= ================= ================= AMERICAN FUNDS GROWTH INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 1,184,798 1,269,410 1,353,057 Units issued and transferred from other funding options....... 116,712 145,646 191,289 Units redeemed and transferred to other funding options....... (181,654) (230,258) (274,936) ----------------- ----------------- ----------------- Units end of year........ 1,119,856 1,184,798 1,269,410 ================= ================= ================= AMERICAN FUNDS GROWTH-INCOME INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 1,315,261 1,382,116 1,453,945 Units issued and transferred from other funding options....... 131,341 173,179 212,605 Units redeemed and transferred to other funding options....... (203,195) (240,034) (284,434) ----------------- ----------------- ----------------- Units end of year........ 1,243,407 1,315,261 1,382,116 ================= ================= ================= AMERICAN FUNDS INTERNATIONAL INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 19,162 18,773 21,039 Units issued and transferred from other funding options....... 1,226 7,789 1,746 Units redeemed and transferred to other funding options....... (801) (7,400) (4,012) ----------------- ----------------- ----------------- Units end of year........ 19,587 19,162 18,773 ================= ================= =================
AMERICAN FUNDS U.S. GOVERNMENT/AAA-RATED SECURITIES INVESTMENT DIVISION --------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ------------------ Units beginning of year.. 2,093 1,972 2,025 Units issued and transferred from other funding options....... 54 220 292 Units redeemed and transferred to other funding options....... (65) (99) (345) ------------------ ----------------- ------------------ Units end of year........ 2,082 2,093 1,972 ================== ================= ================== DREYFUS VIF INTERNATIONAL VALUE INVESTMENT DIVISION --------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ------------------ Units beginning of year.. 15,672 16,013 16,153 Units issued and transferred from other funding options....... -- 11 77 Units redeemed and transferred to other funding options....... (153) (352) (217) ------------------ ----------------- ------------------ Units end of year........ 15,519 15,672 16,013 ================== ================= ================== FIDELITY VIP ASSET MANAGER: GROWTH INVESTMENT DIVISION --------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ------------------ Units beginning of year.. 132,058 164,596 138,116 Units issued and transferred from other funding options....... 11,986 11,097 47,327 Units redeemed and transferred to other funding options....... (8,991) (43,635) (20,847) ------------------ ----------------- ------------------ Units end of year........ 135,053 132,058 164,596 ================== ================= ================== FIDELITY VIP CONTRAFUND INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ----------------- ------------------ ----------------- Units beginning of year.. 115,785 147,414 157,450 Units issued and transferred from other funding options....... 6,940 9,977 16,403 Units redeemed and transferred to other funding options....... (8,894) (41,606) (26,439) ----------------- ------------------ ----------------- Units end of year........ 113,831 115,785 147,414 ================= ================== =================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 192 193 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012:
FIDELITY VIP EQUITY-INCOME INVESTMENT DIVISION --------------------------------------------------------- 2014 2013 2012 ----------------- ------------------ ------------------ Units beginning of year.. 1,817 4,431 1,549 Units issued and transferred from other funding options....... 100 860 3,462 Units redeemed and transferred to other funding options....... (658) (3,474) (580) ----------------- ------------------ ------------------ Units end of year........ 1,259 1,817 4,431 ================= ================== ================== FIDELITY VIP FREEDOM 2010 INVESTMENT DIVISION --------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ------------------ Units beginning of year.. 3,488 3,378 3,238 Units issued and transferred from other funding options....... 7,340 118 200 Units redeemed and transferred to other funding options....... (7,354) (8) (60) ------------------ ----------------- ------------------ Units end of year........ 3,474 3,488 3,378 ================== ================= ================== FIDELITY VIP FREEDOM 2020 FIDELITY VIP FREEDOM 2025 INVESTMENT DIVISION INVESTMENT DIVISION ---------------------------------------------------------- -------------------------------------- 2014 2013 2012 2014 2013 (b) ------------------ ------------------ ------------------ ------------------ ------------------ Units beginning of year.. 58,587 51,279 53,514 2,149 -- Units issued and transferred from other funding options....... 25,007 9,018 968 -- 2,321 Units redeemed and transferred to other funding options....... (27,549) (1,710) (3,203) (235) (172) ------------------ ------------------ ------------------ ------------------ ------------------ Units end of year........ 56,045 58,587 51,279 1,914 2,149 ================== ================== ================== ================== ==================
FIDELITY VIP FREEDOM 2030 FIDELITY VIP FREEDOM 2040 INVESTMENT DIVISION INVESTMENT DIVISION --------------------------------------------------------- ------------------------------------ 2014 2013 2012 2014 2013 (c) ----------------- ------------------ ------------------ ----------------- ----------------- Units beginning of year.. 4,709 3,939 6,028 782 -- Units issued and transferred from other funding options....... 23,056 811 83 10,224 784 Units redeemed and transferred to other funding options....... (21,854) (41) (2,172) (7,632) (2) ----------------- ------------------ ------------------ ----------------- ----------------- Units end of year........ 5,911 4,709 3,939 3,374 782 ================= ================== ================== ================= ================= FIDELITY VIP FREEDOM 2050 INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ----------------- Units beginning of year.. 1,444 1,468 1,492 Units issued and transferred from other funding options....... 7,473 1 -- Units redeemed and transferred to other funding options....... (7,248) (25) (24) ------------------ ----------------- ----------------- Units end of year........ 1,669 1,444 1,468 ================== ================= ================= FIDELITY VIP HIGH INCOME INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ----------------- Units beginning of year.. 8,598 8,955 2,677 Units issued and transferred from other funding options....... 576 4 6,418 Units redeemed and transferred to other funding options....... (462) (361) (140) ------------------ ----------------- ----------------- Units end of year........ 8,712 8,598 8,955 ================== ================= =================
FIDELITY VIP INVESTMENT GRADE BOND INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ------------------ Units beginning of year.. 109,725 144,729 117,053 Units issued and transferred from other funding options....... 29,160 74,632 117,701 Units redeemed and transferred to other funding options....... (62,146) (109,636) (90,025) ----------------- ----------------- ------------------ Units end of year........ 76,739 109,725 144,729 ================= ================= ================== FIDELITY VIP MID CAP FTVIPT FRANKLIN INCOME VIP INVESTMENT DIVISION INVESTMENT DIVISION ------------------------------------------------------- ------------------------------------- 2014 2013 2012 2014 2013 (d) ----------------- ----------------- ----------------- ----------------- ------------------ Units beginning of year.. 6,501 26,557 24,942 1 -- Units issued and transferred from other funding options....... 386 46 4,204 32 1 Units redeemed and transferred to other funding options....... (627) (20,102) (2,589) (5) -- ----------------- ----------------- ----------------- ----------------- ------------------ Units end of year........ 6,260 6,501 26,557 28 1 ================= ================= ================= ================= ================== FTVIPT FRANKLIN MUTUAL GLOBAL DISCOVERY VIP INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 19,479 40,339 44,626 Units issued and transferred from other funding options....... 1,756 1,707 6,077 Units redeemed and transferred to other funding options....... (3,050) (22,567) (10,364) ----------------- ----------------- ----------------- Units end of year........ 18,185 19,479 40,339 ================= ================= =================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 194 195 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012:
FTVIPT FRANKLIN MUTUAL SHARES VIP FTVIPT TEMPLETON FOREIGN VIP INVESTMENT DIVISION INVESTMENT DIVISION ------------------------------------ ------------------------------------------------------ 2014 2013 (d) 2014 2013 2012 ----------------- ----------------- ----------------- ---------------- ----------------- Units beginning of year.... 67 -- 203,220 225,312 203,775 Units issued and transferred from other funding options......... 50 72 129,250 22,322 49,290 Units redeemed and transferred to other funding options......... (8) (5) (55,683) (44,414) (27,753) ----------------- ----------------- ----------------- ---------------- ----------------- Units end of year.......... 109 67 276,787 203,220 225,312 ================= ================= ================= ================ ================= FTVIPT TEMPLETON GLOBAL BOND VIP INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ----------------- ---------------- ----------------- Units beginning of year.... 54,283 18,556 14,004 Units issued and transferred from other funding options......... 1,227 40,703 5,493 Units redeemed and transferred to other funding options......... (5,615) (4,976) (941) ----------------- ---------------- ----------------- Units end of year.......... 49,895 54,283 18,556 ================= ================ ================= GOLDMAN SACHS MID-CAP VALUE INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ----------------- ----------------- ---------------- Units beginning of year.... 11,790 15,625 19,234 Units issued and transferred from other funding options......... 140 -- -- Units redeemed and transferred to other funding options......... (1,360) (3,835) (3,609) ----------------- ----------------- ---------------- Units end of year.......... 10,570 11,790 15,625 ================= ================= ================
GOLDMAN SACHS SMALL CAP EQUITY INSIGHTS INVESTMENT DIVISION ---------------------------------------------------------- 2014 2013 2012 ------------------ ------------------ ------------------ Units beginning of year.. 2,114 1,925 4,148 Units issued and transferred from other funding options....... 111 460 435 Units redeemed and transferred to other funding options....... (459) (271) (2,658) ------------------ ------------------ ------------------ Units end of year........ 1,766 2,114 1,925 ================== ================== ================== INVESCO V.I. COMSTOCK INVESTMENT DIVISION ---------------------------------------------------------- 2014 2013 2012 ------------------ ------------------ ------------------ Units beginning of year.. 18,458 18,847 17,951 Units issued and transferred from other funding options....... 598 11 2,259 Units redeemed and transferred to other funding options....... (404) (400) (1,363) ------------------ ------------------ ------------------ Units end of year........ 18,652 18,458 18,847 ================== ================== ================== INVESCO V.I. GOVERNMENT SECURITIES INVESTMENT DIVISION ---------------------------------------------------------- 2014 2013 2012 ------------------ ------------------ ------------------ Units beginning of year.. 810 22 1,570 Units issued and transferred from other funding options....... 6 820 1,091 Units redeemed and transferred to other funding options....... (810) (32) (2,639) ------------------ ------------------ ------------------ Units end of year........ 6 810 22 ================== ================== ================== INVESCO V.I. INTERNATIONAL GROWTH INVESTMENT DIVISION ---------------------------------------------------------- 2014 2013 2012 ------------------ ------------------ ------------------ Units beginning of year.. 16,229 314,797 1,308 Units issued and transferred from other funding options....... 795 15,364 329,534 Units redeemed and transferred to other funding options....... (2,822) (313,932) (16,045) ------------------ ------------------ ------------------ Units end of year........ 14,202 16,229 314,797 ================== ================== ==================
JANUS ASPEN BALANCED INVESTMENT DIVISION --------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ------------------ Units beginning of year.. 44,471 59,065 81,522 Units issued and transferred from other funding options....... 4,121 1,895 9,247 Units redeemed and transferred to other funding options....... (3,775) (16,489) (31,704) ------------------ ----------------- ------------------ Units end of year........ 44,817 44,471 59,065 ================== ================= ================== JANUS ASPEN FORTY INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 34,817 46,505 45,616 Units issued and transferred from other funding options....... 912 1,234 13,757 Units redeemed and transferred to other funding options....... (15,422) (12,922) (12,868) ----------------- ----------------- ----------------- Units end of year........ 20,307 34,817 46,505 ================= ================= ================= JANUS ASPEN JANUS INVESTMENT DIVISION --------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ------------------ Units beginning of year.. 28,415 81,921 85,791 Units issued and transferred from other funding options....... 699 121 1,271 Units redeemed and transferred to other funding options....... (1,635) (53,627) (5,141) ------------------ ----------------- ------------------ Units end of year........ 27,479 28,415 81,921 ================== ================= ================== JANUS ASPEN OVERSEAS INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ----------------- ------------------ ----------------- Units beginning of year.. 2,403 17,627 15,536 Units issued and transferred from other funding options....... 240 228 3,116 Units redeemed and transferred to other funding options....... (759) (15,452) (1,025) ----------------- ------------------ ----------------- Units end of year........ 1,884 2,403 17,627 ================= ================== =================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 196 197 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012:
MFS VIT GLOBAL EQUITY INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 7,761 7,233 356 Units issued and transferred from other funding options....... 357 716 7,683 Units redeemed and transferred to other funding options....... (468) (188) (806) ----------------- ----------------- ----------------- Units end of year........ 7,650 7,761 7,233 ================= ================= ================= MFS VIT NEW DISCOVERY INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 8,721 9,204 7,919 Units issued and transferred from other funding options....... 5 -- 1,553 Units redeemed and transferred to other funding options....... (252) (483) (268) ----------------- ----------------- ----------------- Units end of year........ 8,474 8,721 9,204 ================= ================= ================= MFS VIT VALUE MFS VIT II HIGH YIELD INVESTMENT DIVISION INVESTMENT DIVISION ------------------------------------------------------- ------------------------------------ 2014 2013 2012 2014 2013 (e) ----------------- ----------------- ----------------- ----------------- ----------------- Units beginning of year.. 978 1,049 3,138 8,075 -- Units issued and transferred from other funding options....... 1,462 1 -- 3 8,117 Units redeemed and transferred to other funding options....... (1,537) (72) (2,089) (491) (42) ----------------- ----------------- ----------------- ----------------- ----------------- Units end of year........ 903 978 1,049 7,587 8,075 ================= ================= ================= ================= =================
MIST ALLIANZ GLOBAL INVESTORS MIST ALLIANCEBERNSTEIN DYNAMIC GLOBAL DYNAMIC ALLOCATION MULTI-ASSET PLUS INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------------------------------- ------------------- 2014 2013 2012 (f) 2014 (a) ------------------ ----------------- ----------------- ------------------- Units beginning of year.. 2,847 656 -- -- Units issued and transferred from other funding options....... 1,277 2,831 852 96 Units redeemed and transferred to other funding options....... (259) (640) (196) (24) ------------------ ----------------- ----------------- ------------------- Units end of year........ 3,865 2,847 656 72 ================== ================= ================= =================== MIST AMERICAN FUNDS BALANCED ALLOCATION INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ------------------ Units beginning of year.. 57,458 54,591 50,766 Units issued and transferred from other funding options....... 6,662 6,481 8,491 Units redeemed and transferred to other funding options....... (4,204) (3,614) (4,666) ----------------- ----------------- ------------------ Units end of year........ 59,916 57,458 54,591 ================= ================= ================== MIST AMERICAN FUNDS GROWTH ALLOCATION INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 108,102 84,318 82,817 Units issued and transferred from other funding options....... 12,222 43,545 19,200 Units redeemed and transferred to other funding options....... (18,723) (19,761) (17,699) ----------------- ----------------- ----------------- Units end of year........ 101,601 108,102 84,318 ================= ================= =================
MIST AMERICAN FUNDS MODERATE ALLOCATION INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ------------------ Units beginning of year.. 64,895 49,584 37,706 Units issued and transferred from other funding options....... 12,069 22,287 18,239 Units redeemed and transferred to other funding options....... (5,837) (6,976) (6,361) ----------------- ----------------- ------------------ Units end of year........ 71,127 64,895 49,584 ================= ================= ================== MIST AQR GLOBAL RISK BALANCED INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 (f) ----------------- ----------------- ----------------- Units beginning of year.. 15,059 2,358 -- Units issued and transferred from other funding options....... 5,307 18,647 2,974 Units redeemed and transferred to other funding options....... (3,320) (5,946) (616) ----------------- ----------------- ----------------- Units end of year........ 17,046 15,059 2,358 ================= ================= ================= MIST BLACKROCK GLOBAL TACTICAL STRATEGIES INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 (f) ----------------- ----------------- ----------------- Units beginning of year.. 8,821 3,707 -- Units issued and transferred from other funding options....... 7,919 6,344 3,964 Units redeemed and transferred to other funding options....... (1,188) (1,230) (257) ----------------- ----------------- ----------------- Units end of year........ 15,552 8,821 3,707 ================= ================= ================= MIST CLARION GLOBAL REAL ESTATE INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 1,412,669 1,388,419 1,311,823 Units issued and transferred from other funding options....... 493,788 302,475 371,416 Units redeemed and transferred to other funding options....... (481,847) (278,225) (294,820) ----------------- ----------------- ----------------- Units end of year........ 1,424,610 1,412,669 1,388,419 ================= ================= =================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 198 199 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012:
MIST CLEARBRIDGE AGGRESSIVE GROWTH INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 1,375,745 1,313,742 1,353,551 Units issued and transferred from other funding options....... 1,550,161 313,509 230,917 Units redeemed and transferred to other funding options....... (406,622) (251,506) (270,726) ----------------- ----------------- ----------------- Units end of year........ 2,519,284 1,375,745 1,313,742 ================= ================= ================= MIST HARRIS OAKMARK INTERNATIONAL INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ----------------- Units beginning of year.. 1,980,844 1,421,965 1,483,192 Units issued and transferred from other funding options....... 220,406 863,606 301,420 Units redeemed and transferred to other funding options....... (754,557) (304,727) (362,647) ------------------ ----------------- ----------------- Units end of year........ 1,446,693 1,980,844 1,421,965 ================== ================= ================= MIST INVESCO BALANCED-RISK ALLOCATION INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 (f) ----------------- ----------------- ----------------- Units beginning of year.. 22,938 7,100 -- Units issued and transferred from other funding options....... 8,699 26,433 9,427 Units redeemed and transferred to other funding options....... (4,395) (10,595) (2,327) ----------------- ----------------- ----------------- Units end of year........ 27,242 22,938 7,100 ================= ================= ================= MIST INVESCO MID CAP VALUE INVESTMENT DIVISION --------------------------------------------------------- 2014 2013 2012 ------------------ ------------------ ----------------- Units beginning of year.. 2,707,441 2,873,152 9,000 Units issued and transferred from other funding options....... 236,264 304,764 3,301,144 Units redeemed and transferred to other funding options....... (406,828) (470,475) (436,992) ------------------ ------------------ ----------------- Units end of year........ 2,536,877 2,707,441 2,873,152 ================== ================== =================
MIST INVESCO SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 251,143 245,733 279,254 Units issued and transferred from other funding options....... 57,371 77,189 58,241 Units redeemed and transferred to other funding options....... (59,460) (71,779) (91,762) ----------------- ----------------- ----------------- Units end of year........ 249,054 251,143 245,733 ================= ================= ================= MIST JPMORGAN GLOBAL ACTIVE ALLOCATION INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 (f) ----------------- ----------------- ----------------- Units beginning of year.. 93,835 17,811 -- Units issued and transferred from other funding options....... 54,885 119,559 20,291 Units redeemed and transferred to other funding options....... (12,758) (43,535) (2,480) ----------------- ----------------- ----------------- Units end of year........ 135,962 93,835 17,811 ================= ================= ================= MIST JPMORGAN SMALL CAP VALUE MIST LOOMIS SAYLES GLOBAL MARKETS INVESTMENT DIVISION INVESTMENT DIVISION ------------------------------------------------------- ------------------------------------ 2014 2013 2012 2014 2013 (d) ----------------- ----------------- ----------------- ----------------- ----------------- Units beginning of year.. 11,410 2,300 2,480 21,834 -- Units issued and transferred from other funding options....... 3,528 10,018 1,210 1,956 22,483 Units redeemed and transferred to other funding options....... (2,298) (908) (1,390) (2,488) (649) ----------------- ----------------- ----------------- ----------------- ----------------- Units end of year........ 12,640 11,410 2,300 21,302 21,834 ================= ================= ================= ================= =================
MIST LORD ABBETT BOND DEBENTURE INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 1,003,912 1,063,203 1,085,311 Units issued and transferred from other funding options....... 169,905 133,374 167,197 Units redeemed and transferred to other funding options....... (232,789) (192,665) (189,305) ----------------- ----------------- ----------------- Units end of year........ 941,028 1,003,912 1,063,203 ================= ================= ================= MIST MET/TEMPLETON INTERNATIONAL BOND INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 (f) ----------------- ----------------- ----------------- Units beginning of year.. 5,967 181 -- Units issued and transferred from other funding options....... 6,422 7,357 270 Units redeemed and transferred to other funding options....... (599) (1,571) (89) ----------------- ----------------- ----------------- Units end of year........ 11,790 5,967 181 ================= ================= ================= MIST METLIFE ASSET ALLOCATION 100 INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 1,065,070 1,085,674 1,049,786 Units issued and transferred from other funding options....... 228,160 197,390 225,712 Units redeemed and transferred to other funding options....... (196,513) (217,994) (189,824) ----------------- ----------------- ----------------- Units end of year........ 1,096,717 1,065,070 1,085,674 ================= ================= ================= MIST METLIFE BALANCED PLUS INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 (f) ----------------- ----------------- ----------------- Units beginning of year.. 7,685 4,287 -- Units issued and transferred from other funding options....... 11,072 9,284 4,873 Units redeemed and transferred to other funding options....... (1,228) (5,886) (586) ----------------- ----------------- ----------------- Units end of year........ 17,529 7,685 4,287 ================= ================= =================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 200 201 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012:
MIST METLIFE MULTI-INDEX TARGETED RISK MIST METLIFE SMALL CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION ------------------------------------ ------------------------------------------------------- 2014 2013 (d) 2014 2013 2012 ---------------- ----------------- ----------------- ----------------- ----------------- Units beginning of year.. 23 -- 41,430 50,513 54,483 Units issued and transferred from other funding options....... 966 91 892 3,119 8,078 Units redeemed and transferred to other funding options....... (21) (68) (5,571) (12,202) (12,048) ---------------- ----------------- ----------------- ----------------- ----------------- Units end of year........ 968 23 36,751 41,430 50,513 ================ ================= ================= ================= ================= MIST MFS EMERGING MARKETS EQUITY INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 21,705 6,737 2,070 Units issued and transferred from other funding options....... 25,364 16,265 12,249 Units redeemed and transferred to other funding options....... (10,806) (1,297) (7,582) ----------------- ----------------- ----------------- Units end of year........ 36,263 21,705 6,737 ================= ================= ================= MIST MFS RESEARCH INTERNATIONAL INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 1,065,499 920,691 820,338 Units issued and transferred from other funding options....... 100,778 300,336 314,771 Units redeemed and transferred to other funding options....... (141,112) (155,528) (214,418) ----------------- ----------------- ----------------- Units end of year........ 1,025,165 1,065,499 920,691 ================= ================= =================
MIST MORGAN STANLEY MID CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ----------------- ---------------- ----------------- Units beginning of year.... 11,170,989 11,831,703 12,356,734 Units issued and transferred from other funding options......... 1,232,830 1,271,412 1,750,563 Units redeemed and transferred to other funding options......... (1,810,918) (1,932,126) (2,275,594) ----------------- ---------------- ----------------- Units end of year.......... 10,592,901 11,170,989 11,831,703 ================= ================ ================= MIST OPPENHEIMER GLOBAL EQUITY INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ---------------- ----------------- ----------------- Units beginning of year.... 1,679,985 1,769,256 1,918,512 Units issued and transferred from other funding options......... 175,615 403,190 220,361 Units redeemed and transferred to other funding options......... (275,594) (492,461) (369,617) ---------------- ----------------- ----------------- Units end of year.......... 1,580,006 1,679,985 1,769,256 ================ ================= ================= MIST PIMCO INFLATION PROTECTED BOND INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ---------------- ----------------- ---------------- Units beginning of year.... 755,274 837,709 700,157 Units issued and transferred from other funding options......... 177,981 212,906 381,726 Units redeemed and transferred to other funding options......... (185,863) (295,341) (244,174) ---------------- ----------------- ---------------- Units end of year.......... 747,392 755,274 837,709 ================ ================= ================ MIST PIMCO TOTAL RETURN INVESTMENT DIVISION ----------------------------------------------------- 2014 2013 2012 ----------------- ---------------- ---------------- Units beginning of year.... 2,464,593 2,365,572 2,427,091 Units issued and transferred from other funding options......... 274,736 638,791 550,605 Units redeemed and transferred to other funding options......... (590,313) (539,770) (612,124) ----------------- ---------------- ---------------- Units end of year.......... 2,149,016 2,464,593 2,365,572 ================= ================ ================
MIST PIONEER FUND MIST PYRAMIS MANAGED RISK INVESTMENT DIVISION INVESTMENT DIVISION ------------------------------------------------------ ------------------------------------ 2014 2013 2012 2014 2013 (d) ----------------- ----------------- ---------------- ----------------- ----------------- Units beginning of year.... 10,624 13,454 13,480 3 -- Units issued and transferred from other funding options......... -- 95 301 15 3 Units redeemed and transferred to other funding options......... (103) (2,925) (327) (5) -- ----------------- ----------------- ---------------- ----------------- ----------------- Units end of year.......... 10,521 10,624 13,454 13 3 ================= ================= ================ ================= ================= MIST SCHRODERS GLOBAL MULTI-ASSET INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 (f) ---------------- ----------------- ----------------- Units beginning of year.... 19,086 5,334 -- Units issued and transferred from other funding options......... 8,293 18,632 7,478 Units redeemed and transferred to other funding options......... (2,535) (4,880) (2,144) ---------------- ----------------- ----------------- Units end of year.......... 24,844 19,086 5,334 ================ ================= ================= MIST SSGA GROWTH AND INCOME ETF INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.... 503,743 450,776 381,525 Units issued and transferred from other funding options......... 91,210 138,933 154,362 Units redeemed and transferred to other funding options......... (127,297) (85,966) (85,111) ----------------- ----------------- ----------------- Units end of year.......... 467,656 503,743 450,776 ================= ================= =================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 202 203 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012:
MIST SSGA GROWTH ETF INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ----------------- ---------------- ----------------- Units beginning of year.... 366,821 332,667 299,115 Units issued and transferred from other funding options......... 110,844 106,864 100,874 Units redeemed and transferred to other funding options......... (79,416) (72,710) (67,322) ----------------- ---------------- ----------------- Units end of year.......... 398,249 366,821 332,667 ================= ================ ================= MIST T. ROWE PRICE LARGE CAP VALUE INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ---------------- ----------------- ----------------- Units beginning of year.... 128,280 112,114 108,604 Units issued and transferred from other funding options......... 7,180 30,343 5,096 Units redeemed and transferred to other funding options......... (1,879) (14,177) (1,586) ---------------- ----------------- ----------------- Units end of year.......... 133,581 128,280 112,114 ================ ================= ================= MIST T. ROWE PRICE MID CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ---------------- ----------------- ---------------- Units beginning of year.... 1,482,938 1,544,904 1,957,835 Units issued and transferred from other funding options......... 265,792 265,706 314,763 Units redeemed and transferred to other funding options......... (270,030) (327,672) (727,694) ---------------- ----------------- ---------------- Units end of year.......... 1,478,700 1,482,938 1,544,904 ================ ================= ================ MIST WMC LARGE CAP RESEARCH INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ----------------- ---------------- ----------------- Units beginning of year.... 11,184,832 11,913,338 12,762,727 Units issued and transferred from other funding options......... 1,115,535 1,167,810 1,483,936 Units redeemed and transferred to other funding options......... (1,717,341) (1,896,316) (2,333,325) ----------------- ---------------- ----------------- Units end of year.......... 10,583,026 11,184,832 11,913,338 ================= ================ =================
MSF BAILLIE GIFFORD INTERNATIONAL STOCK INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ------------------ Units beginning of year.. 2,695,199 2,785,901 2,947,427 Units issued and transferred from other funding options....... 341,419 371,228 466,869 Units redeemed and transferred to other funding options....... (466,725) (461,930) (628,395) ----------------- ----------------- ------------------ Units end of year........ 2,569,893 2,695,199 2,785,901 ================= ================= ================== MSF BARCLAYS AGGREGATE BOND INDEX INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 5,904,440 5,528,875 5,367,889 Units issued and transferred from other funding options....... 1,175,001 1,310,705 1,299,442 Units redeemed and transferred to other funding options....... (1,066,935) (935,140) (1,138,456) ----------------- ----------------- ----------------- Units end of year........ 6,012,506 5,904,440 5,528,875 ================= ================= ================= MSF BLACKROCK BOND INCOME INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ----------------- Units beginning of year.. 3,164,737 3,286,524 3,448,815 Units issued and transferred from other funding options....... 388,693 408,801 453,762 Units redeemed and transferred to other funding options....... (534,550) (530,588) (616,053) ------------------ ----------------- ----------------- Units end of year........ 3,018,880 3,164,737 3,286,524 ================== ================= ================= MSF BLACKROCK CAPITAL APPRECIATION INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 1,238,069 1,083,757 533,802 Units issued and transferred from other funding options....... 69,171 306,867 759,181 Units redeemed and transferred to other funding options....... (892,267) (152,555) (209,226) ----------------- ----------------- ----------------- Units end of year........ 414,973 1,238,069 1,083,757 ================= ================= =================
MSF BLACKROCK LARGE CAP VALUE INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ----------------- ---------------- ----------------- Units beginning of year.... 952,777 972,398 1,036,664 Units issued and transferred from other funding options......... 168,601 172,172 193,068 Units redeemed and transferred to other funding options......... (177,912) (191,793) (257,334) ----------------- ---------------- ----------------- Units end of year.......... 943,466 952,777 972,398 ================= ================ ================= MSF BLACKROCK MONEY MARKET INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ----------------- ---------------- ----------------- Units beginning of year.... 1,334,062 1,306,002 1,163,332 Units issued and transferred from other funding options......... 1,140,932 573,675 797,800 Units redeemed and transferred to other funding options......... (792,056) (545,615) (655,130) ----------------- ---------------- ----------------- Units end of year.......... 1,682,938 1,334,062 1,306,002 ================= ================ ================= MSF FRONTIER MID CAP GROWTH INVESTMENT DIVISION ----------------------------------------------------- 2014 2013 2012 ---------------- ----------------- ---------------- Units beginning of year.... 7,328,205 8,053,406 8,613,267 Units issued and transferred from other funding options......... 603,587 669,008 944,396 Units redeemed and transferred to other funding options......... (1,070,231) (1,394,209) (1,504,257) ---------------- ----------------- ---------------- Units end of year.......... 6,861,561 7,328,205 8,053,406 ================ ================= ================ MSF JENNISON GROWTH INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ----------------- ----------------- ---------------- Units beginning of year.... 1,014,111 1,151,518 1,066,474 Units issued and transferred from other funding options......... 170,080 133,920 309,675 Units redeemed and transferred to other funding options......... (208,812) (271,327) (224,631) ----------------- ----------------- ---------------- Units end of year.......... 975,379 1,014,111 1,151,518 ================= ================= ================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 204 205 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012:
MSF LOOMIS SAYLES SMALL CAP CORE INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 81,272 88,479 95,949 Units issued and transferred from other funding options....... 7,450 9,232 10,523 Units redeemed and transferred to other funding options....... (10,178) (16,439) (17,993) ----------------- ----------------- ----------------- Units end of year........ 78,544 81,272 88,479 ================= ================= ================= MSF LOOMIS SAYLES SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 575,475 569,420 639,754 Units issued and transferred from other funding options....... 93,547 141,821 96,222 Units redeemed and transferred to other funding options....... (136,294) (135,766) (166,556) ----------------- ----------------- ----------------- Units end of year........ 532,728 575,475 569,420 ================= ================= ================= MSF MET/ARTISAN MID CAP VALUE INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 179,229 188,777 187,483 Units issued and transferred from other funding options....... 19,314 34,357 37,546 Units redeemed and transferred to other funding options....... (27,124) (43,905) (36,252) ----------------- ----------------- ----------------- Units end of year........ 171,419 179,229 188,777 ================= ================= ================= MSF METLIFE ASSET ALLOCATION 20 INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 302,268 330,868 293,962 Units issued and transferred from other funding options....... 96,285 80,970 138,689 Units redeemed and transferred to other funding options....... (87,371) (109,570) (101,783) ----------------- ----------------- ----------------- Units end of year........ 311,182 302,268 330,868 ================= ================= =================
MSF METLIFE ASSET ALLOCATION 40 INVESTMENT DIVISION --------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ------------------ Units beginning of year.. 528,645 548,694 491,119 Units issued and transferred from other funding options....... 114,747 132,624 165,315 Units redeemed and transferred to other funding options....... (106,240) (152,673) (107,740) ------------------ ----------------- ------------------ Units end of year........ 537,152 528,645 548,694 ================== ================= ================== MSF METLIFE ASSET ALLOCATION 60 INVESTMENT DIVISION --------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ------------------ Units beginning of year.. 2,959,238 3,085,848 3,050,810 Units issued and transferred from other funding options....... 485,403 570,724 658,640 Units redeemed and transferred to other funding options....... (498,005) (697,334) (623,602) ------------------ ----------------- ------------------ Units end of year........ 2,946,636 2,959,238 3,085,848 ================== ================= ================== MSF METLIFE ASSET ALLOCATION 80 INVESTMENT DIVISION --------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ------------------ Units beginning of year.. 5,304,870 5,433,641 5,400,236 Units issued and transferred from other funding options....... 762,440 951,279 1,100,174 Units redeemed and transferred to other funding options....... (799,572) (1,080,050) (1,066,769) ------------------ ----------------- ------------------ Units end of year........ 5,267,738 5,304,870 5,433,641 ================== ================= ================== MSF METLIFE MID CAP STOCK INDEX INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ----------------- ------------------ ----------------- Units beginning of year.. 3,096,714 2,971,386 3,140,839 Units issued and transferred from other funding options....... 344,308 688,636 476,623 Units redeemed and transferred to other funding options....... (837,180) (563,308) (646,076) ----------------- ------------------ ----------------- Units end of year........ 2,603,842 3,096,714 2,971,386 ================= ================== =================
MSF METLIFE STOCK INDEX INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ----------------- ---------------- ----------------- Units beginning of year.... 33,504,283 35,058,600 36,301,700 Units issued and transferred from other funding options......... 3,230,743 3,838,942 4,994,055 Units redeemed and transferred to other funding options......... (4,889,432) (5,393,259) (6,237,155) ----------------- ---------------- ----------------- Units end of year.......... 31,845,594 33,504,283 35,058,600 ================= ================ ================= MSF MFS TOTAL RETURN INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ---------------- ----------------- ----------------- Units beginning of year.... 516,460 523,594 528,477 Units issued and transferred from other funding options......... 64,664 78,131 105,811 Units redeemed and transferred to other funding options......... (86,045) (85,265) (110,694) ---------------- ----------------- ----------------- Units end of year.......... 495,079 516,460 523,594 ================ ================= ================= MSF MFS VALUE INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ---------------- ----------------- ---------------- Units beginning of year.... 3,880,440 3,634,888 3,828,828 Units issued and transferred from other funding options......... 410,647 938,625 529,637 Units redeemed and transferred to other funding options......... (639,267) (693,073) (723,577) ---------------- ----------------- ---------------- Units end of year.......... 3,651,820 3,880,440 3,634,888 ================ ================= ================ MSF MSCI EAFE INDEX INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ----------------- ---------------- ----------------- Units beginning of year.... 4,619,766 4,738,737 4,910,651 Units issued and transferred from other funding options......... 958,783 768,969 973,636 Units redeemed and transferred to other funding options......... (856,775) (887,940) (1,145,550) ----------------- ---------------- ----------------- Units end of year.......... 4,721,774 4,619,766 4,738,737 ================= ================ =================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 206 207 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012:
MSF NEUBERGER BERMAN GENESIS INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 3,669,017 3,701,342 3,915,596 Units issued and transferred from other funding options....... 372,237 615,549 506,545 Units redeemed and transferred to other funding options....... (573,671) (647,874) (720,799) ----------------- ----------------- ----------------- Units end of year........ 3,467,583 3,669,017 3,701,342 ================= ================= ================= MSF RUSSELL 2000 INDEX INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 2,328,388 2,492,581 2,653,125 Units issued and transferred from other funding options....... 345,889 288,294 369,378 Units redeemed and transferred to other funding options....... (413,347) (452,487) (529,922) ----------------- ----------------- ----------------- Units end of year........ 2,260,930 2,328,388 2,492,581 ================= ================= ================= MSF T. ROWE PRICE LARGE CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 3,427,787 2,902,055 2,954,760 Units issued and transferred from other funding options....... 389,494 1,182,376 509,096 Units redeemed and transferred to other funding options....... (557,656) (656,644) (561,801) ----------------- ----------------- ----------------- Units end of year........ 3,259,625 3,427,787 2,902,055 ================= ================= ================= MSF T. ROWE PRICE SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 3,406,451 3,660,384 3,938,724 Units issued and transferred from other funding options....... 292,004 337,801 426,779 Units redeemed and transferred to other funding options....... (879,738) (591,734) (705,119) ----------------- ----------------- ----------------- Units end of year........ 2,818,717 3,406,451 3,660,384 ================= ================= =================
MSF VAN ECK GLOBAL NATURAL RESOURCES INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.... 916 319 81 Units issued and transferred from other funding options......... 698 661 295 Units redeemed and transferred to other funding options......... (450) (64) (57) ----------------- ----------------- ----------------- Units end of year.......... 1,164 916 319 ================= ================= ================= MSF WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ---------------- ----------------- ----------------- Units beginning of year.... 1,022,252 1,037,022 1,068,823 Units issued and transferred from other funding options......... 135,497 177,853 191,180 Units redeemed and transferred to other funding options......... (168,505) (192,623) (222,981) ---------------- ----------------- ----------------- Units end of year.......... 989,244 1,022,252 1,037,022 ================ ================= ================= MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ----------------- ---------------- ----------------- Units beginning of year.... 935,377 936,357 957,065 Units issued and transferred from other funding options......... 141,439 186,398 195,506 Units redeemed and transferred to other funding options......... (172,396) (187,378) (216,214) ----------------- ---------------- ----------------- Units end of year.......... 904,420 935,377 936,357 ================= ================ ================= MSF WMC BALANCED INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ----------------- ----------------- ---------------- Units beginning of year.... 9,093,665 9,597,280 10,223,668 Units issued and transferred from other funding options......... 836,836 1,003,288 1,214,215 Units redeemed and transferred to other funding options......... (1,388,875) (1,506,903) (1,840,603) ----------------- ----------------- ---------------- Units end of year.......... 8,541,626 9,093,665 9,597,280 ================= ================= ================
OPPENHEIMER VA MAIN STREET MSF WMC CORE EQUITY OPPORTUNITIES SMALL CAP INVESTMENT DIVISION INVESTMENT DIVISION ------------------------------------------------------ ------------------- 2014 2013 2012 2014 (g) ----------------- ----------------- ---------------- ----------------- Units beginning of year.... 1,389,950 1,511,861 1,569,723 -- Units issued and transferred from other funding options......... 130,153 186,017 233,892 143 Units redeemed and transferred to other funding options......... (215,512) (307,928) (291,754) (3) ----------------- ----------------- ---------------- ----------------- Units end of year.......... 1,304,591 1,389,950 1,511,861 140 ================= ================= ================ ================= PIMCO VIT PIMCO VIT ALL ASSET COMMODITYREALRETURN STRATEGY INVESTMENT DIVISION INVESTMENT DIVISION ------------------------------------------------------ ------------------------------------ 2014 2013 2012 2014 2013 (d) ----------------- ---------------- ----------------- ----------------- ----------------- Units beginning of year.... 72,143 10,325 8,649 479 -- Units issued and transferred from other funding options......... 784 69,923 2,051 3,227 502 Units redeemed and transferred to other funding options......... (2,825) (8,105) (375) (130) (23) ----------------- ---------------- ----------------- ----------------- ----------------- Units end of year.......... 70,102 72,143 10,325 3,576 479 ================= ================ ================= ================= =================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 208 209 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONCLUDED) FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012:
PIMCO VIT LOW DURATION INVESTMENT DIVISION ------------------------------------------------------ 2014 2013 2012 ----------------- ---------------- ----------------- Units beginning of year.. 126,188 79,088 80,364 Units issued and transferred from other funding options....... 265 72,882 2,679 Units redeemed and transferred to other funding options....... (2,526) (25,782) (3,955) ----------------- ---------------- ----------------- Units end of year........ 123,927 126,188 79,088 ================= ================ ================= PIONEER VCT MID CAP VALUE PUTNAM VT INTERNATIONAL VALUE INVESTMENT DIVISION INVESTMENT DIVISION ------------------------------------------------------- ------------------------------------ 2014 2013 2012 2014 2013 (b) ----------------- ----------------- ----------------- ----------------- ----------------- Units beginning of year.. 828 3,389 3,306 239 -- Units issued and transferred from other funding options....... 242 -- 238 49 250 Units redeemed and transferred to other funding options....... (58) (2,561) (155) (49) (11) ----------------- ----------------- ----------------- ----------------- ----------------- Units end of year........ 1,012 828 3,389 239 239 ================= ================= ================= ================= ================= ROYCE MICRO-CAP INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 374 21,685 19,473 Units issued and transferred from other funding options....... 47 101 2,968 Units redeemed and transferred to other funding options....... (4) (21,412) (756) ----------------- ----------------- ----------------- Units end of year........ 417 374 21,685 ================= ================= =================
ROYCE SMALL-CAP INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 31,356 33,234 52,075 Units issued and transferred from other funding options....... 18,250 10,487 11,367 Units redeemed and transferred to other funding options....... (47,341) (12,365) (30,208) ----------------- ----------------- ----------------- Units end of year........ 2,265 31,356 33,234 ================= ================= ================= UIF EMERGING MARKETS DEBT INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ------------------ ----------------- ----------------- Units beginning of year.. 35,538 33,059 13,883 Units issued and transferred from other funding options....... 1,488 5,716 21,216 Units redeemed and transferred to other funding options....... (13,436) (3,237) (2,040) ------------------ ----------------- ----------------- Units end of year........ 23,590 35,538 33,059 ================== ================= ================= UIF EMERGING MARKETS EQUITY INVESTMENT DIVISION ------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ----------------- Units beginning of year.. 83,866 69,412 43,435 Units issued and transferred from other funding options....... 88,221 25,714 30,945 Units redeemed and transferred to other funding options....... (21,388) (11,260) (4,968) ----------------- ----------------- ----------------- Units end of year........ 150,699 83,866 69,412 ================= ================= ================= WELLS FARGO VT TOTAL RETURN BOND INVESTMENT DIVISION -------------------------------------------------------- 2014 2013 2012 ----------------- ----------------- ------------------ Units beginning of year.. 16,006 29,620 8,689 Units issued and transferred from other funding options....... 47,678 3,045 26,948 Units redeemed and transferred to other funding options....... (4,008) (16,659) (6,017) ----------------- ----------------- ------------------ Units end of year........ 59,676 16,006 29,620 ================= ================= ==================
(a) For the period April 28, 2014 to December 31, 2014. (b) Commenced April 28, 2008 and began transactions in 2013. (c) Commenced May 3, 2010 and began transactions in 2013. (d) For the period April 29, 2013 to December 31, 2013. (e) For the period August 19, 2013 to December 31, 2013. (f) For the period April 30, 2012 to December 31, 2012. (g) Commenced April 28, 2008 and began transactions in 2014. 210 211 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS The Company sells a number of variable life products which have unique combinations of features and fees, some of which directly affect the unit values of the Investment Divisions. Differences in the fee structures result in a variety of unit values, expense ratios, and total returns. The following table is a summary of unit values and units outstanding for the Policies, net investment income ratios, and expense ratios, excluding expenses for the underlying fund, portfolio or series, for the respective stated periods in the five years ended December 31, 2014:
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- -------------- ------------ ------------- ---------------- ----------------- AllianceBernstein Global 2014 11,048 6.85 75,700 -- 0.00 4.81 Thematic Growth 2013 10,121 6.54 66,166 0.02 0.00 22.93 Investment Division 2012 11,630 5.32 61,856 -- 0.00 13.24 2011 914,212 4.70 4,293,695 0.43 0.00 (23.40) 2010 19,486 6.13 119,488 1.84 0.00 18.58 AllianceBernstein 2014 3,712 16.05 59,589 3.24 0.00 6.22 Intermediate Bond 2013 3,812 15.11 57,615 3.09 0.00 (2.34) Investment Division 2012 6,675 15.48 103,300 3.42 0.00 5.79 2011 3,232 14.63 47,286 4.56 0.00 6.38 2010 3,146 13.75 43,265 5.90 0.00 8.93 American Century VP 2014 21 20.72 432 -- 0.00 11.65 Capital Appreciation Investment Division (Commenced 4/28/2014) American Funds Bond 2014 422,554 12.67 - 23.04 5,975,916 1.99 0.00 - 0.90 4.33 - 5.28 Investment Division 2013 417,001 12.15 - 21.88 5,589,275 1.83 0.00 - 0.90 (3.03) - (2.16) 2012 397,946 12.53 - 22.37 5,420,310 2.55 0.00 - 0.90 4.42 - 5.37 2011 367,699 11.99 - 21.23 4,735,459 3.08 0.00 - 0.90 5.15 - 6.10 2010 361,073 11.41 - 20.00 4,365,031 3.15 0.00 - 0.90 5.49 - 6.44 American Funds Global 2014 1,772,715 35.77 - 46.48 70,558,118 0.12 0.00 - 0.90 1.21 - 2.12 Small Capitalization 2013 1,848,240 35.34 - 45.52 72,066,620 0.87 0.00 - 0.90 27.13 - 28.28 Investment Division 2012 1,947,587 27.80 - 35.48 59,237,806 1.34 0.00 - 0.90 17.11 - 18.18 2011 2,037,588 23.74 - 30.03 52,474,989 1.33 0.00 - 0.90 (19.87) - (19.14) 2010 2,114,920 29.62 - 37.13 67,405,353 1.74 0.00 - 0.90 21.32 - 22.41 American Funds Growth 2014 1,119,856 33.32 - 364.52 164,910,421 0.80 0.00 - 0.90 7.54 - 8.51 Investment Division 2013 1,184,798 30.71 - 335.94 160,553,244 0.94 0.00 - 0.90 28.94 - 30.10 2012 1,269,410 23.60 - 258.21 130,921,222 0.80 0.00 - 0.90 16.83 - 17.89 2011 1,353,057 20.02 - 219.03 118,199,510 0.61 0.00 - 0.90 (5.13) - (4.27) 2010 1,411,108 20.92 - 228.81 127,437,855 0.73 0.00 - 0.90 17.62 - 18.68 American Funds 2014 1,243,407 75.41 - 259.70 106,030,732 1.29 0.00 - 0.90 9.64 - 10.63 Growth-Income 2013 1,315,261 68.78 - 234.74 101,213,157 1.37 0.00 - 0.90 32.30 - 33.50 Investment Division 2012 1,382,116 51.99 - 175.83 79,614,717 1.64 0.00 - 0.90 16.42 - 17.48 2011 1,453,945 44.65 - 149.67 71,256,817 1.57 0.00 - 0.90 (2.71) - (1.83) 2010 1,483,095 45.89 - 152.46 73,861,194 1.51 0.00 - 0.90 10.43 - 11.43 American Funds International 2014 19,587 34.82 682,005 1.40 0.00 (2.65) Investment Division 2013 19,162 35.77 685,392 1.65 0.00 21.63 2012 18,773 29.41 552,053 1.43 0.00 17.91 2011 21,039 24.94 524,711 1.50 0.00 (13.96) 2010 27,930 28.99 809,625 2.23 0.00 7.23
212 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------------- ------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- ------------- ------------ ------------- ---------------- ---------------- American Funds U.S. 2014 2,082 23.33 48,552 1.10 0.00 5.02 Government/AAA-Rated 2013 2,093 22.21 46,484 0.68 0.00 (3.08) Securities Investment 2012 1,972 22.92 45,192 1.00 0.00 1.90 Division 2011 2,025 22.49 45,539 1.73 0.00 7.57 2010 1,810 20.90 37,830 1.49 0.00 5.75 Dreyfus VIF International 2014 15,519 14.21 220,569 1.32 0.00 (9.57) Value Investment Division 2013 15,672 15.72 246,317 1.78 0.00 22.69 2012 16,013 12.81 205,133 2.56 0.00 12.42 2011 16,153 11.40 184,061 1.88 0.00 (18.76) 2010 16,502 14.03 231,464 1.53 0.00 4.22 Fidelity VIP Asset Manager: 2014 135,053 15.45 2,087,177 1.01 0.00 5.75 Growth Investment Division 2013 132,058 14.61 1,929,922 0.83 0.00 22.34 2012 164,596 11.95 1,966,232 1.40 0.00 15.34 2011 138,116 10.36 1,430,516 1.33 0.00 (6.27) 2010 172,460 11.05 1,905,608 1.12 0.00 16.18 Fidelity VIP Contrafund 2014 113,831 25.59 2,913,464 0.86 0.00 11.82 Investment Division 2013 115,785 22.89 2,650,302 0.95 0.00 44.02 2012 147,414 15.89 2,343,022 1.22 0.00 16.31 2011 157,450 13.67 2,151,649 0.83 0.00 (2.64) 2010 190,755 14.04 2,677,373 0.96 0.00 17.11 Fidelity VIP Equity-Income 2014 1,259 20.01 25,205 2.88 0.00 8.65 Investment Division 2013 1,817 18.42 33,464 2.56 0.00 31.02 2012 4,431 14.06 62,291 5.62 0.00 17.19 2011 1,549 12.00 18,589 0.35 0.00 0.86 2010 17,040 11.90 202,690 1.60 0.00 15.09 Fidelity VIP Freedom 2010 2014 3,474 13.85 48,114 1.62 0.00 4.46 Investment Division 2013 3,488 13.26 46,242 1.76 0.00 12.98 2012 3,378 11.73 39,638 1.97 0.00 11.28 2011 3,238 10.55 34,144 2.18 0.00 (0.63) 2010 3,002 10.61 31,860 2.67 0.00 12.45 Fidelity VIP Freedom 2020 2014 56,045 13.66 - 18.66 984,560 1.65 0.00 4.76 - 4.82 Investment Division 2013 58,587 13.04 - 17.80 977,715 1.87 0.00 15.49 - 16.01 2012 51,279 11.29 - 15.34 764,724 2.06 0.00 12.87 - 13.38 2011 53,514 10.01 - 13.53 699,714 2.10 0.00 (1.47) - (1.03) 2010 56,297 10.16 - 13.67 738,702 2.26 0.00 13.98 - 14.49 Fidelity VIP Freedom 2025 2014 1,914 19.64 37,588 1.58 0.00 5.06 Investment Division 2013 2,149 18.70 40,181 1.79 0.00 19.95 (Commenced 4/28/2008 and began transactions in 2013) Fidelity VIP Freedom 2030 2014 5,911 13.81 81,658 1.76 0.00 4.89 Investment Division 2013 4,709 13.17 62,024 1.93 0.00 21.12 2012 3,939 10.87 42,834 1.84 0.00 15.06 2011 6,028 9.45 - 13.00 56,970 1.97 0.00 (3.03) - (2.59) 2010 9,011 9.75 - 13.35 108,191 2.42 0.00 15.56 - 16.08
213 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------------- ------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- -------------- ----------- ------------- ---------------- ---------------- Fidelity VIP Freedom 2040 2014 3,374 15.86 53,497 2.38 0.00 4.85 Investment Division 2013 782 15.12 11,831 3.69 0.00 24.73 (Commenced 5/3/2010 and began transactions in 2013) Fidelity VIP Freedom 2050 2014 1,669 16.00 26,706 1.38 0.00 4.94 Investment Division 2013 1,444 15.25 22,014 1.43 0.00 25.78 (Commenced 5/3/2010 2012 1,468 12.12 17,799 2.12 0.00 17.20 and began transactions 2011 1,492 10.34 15,438 1.77 0.00 (5.36) in 2011) Fidelity VIP High Income 2014 8,712 19.76 172,179 5.69 0.00 1.16 Investment Division 2013 8,598 19.54 167,992 5.84 0.00 5.95 2012 8,955 18.44 165,146 14.49 0.00 14.23 2011 2,677 16.14 43,223 37.24 0.00 4.03 2010 294 15.52 4,565 4.94 0.00 13.82 Fidelity VIP Investment 2014 76,739 16.39 1,257,507 1.79 0.00 5.75 Grade Bond Investment 2013 109,725 15.50 1,700,205 2.44 0.00 (1.89) Division 2012 144,729 15.79 2,285,792 1.95 0.00 5.77 2011 117,053 14.93 1,747,852 4.67 0.00 7.21 2010 38,436 13.93 535,344 4.23 0.00 7.68 Fidelity VIP Mid Cap 2014 6,260 40.63 254,337 0.02 0.00 6.03 Investment Division 2013 6,501 38.32 249,087 0.09 0.00 35.87 2012 26,557 28.20 748,919 0.42 0.00 14.56 2011 24,942 24.62 613,958 0.03 0.00 (10.85) 2010 16,733 27.61 462,031 0.15 0.00 28.57 FTVIPT Franklin Income VIP 2014 28 890.70 25,156 3.07 0.00 4.62 Investment Division 2013 1 851.40 618 -- 0.00 7.52 (Commenced 4/29/2013) FTVIPT Franklin Mutual 2014 18,185 26.86 488,433 2.10 0.00 5.71 Global Discovery VIP 2013 19,479 25.41 494,934 2.33 0.00 27.61 Investment Division 2012 40,339 19.91 803,176 2.67 0.00 13.36 2011 44,626 17.56 783,835 2.31 0.00 (2.96) 2010 53,444 18.10 967,332 1.39 0.00 11.96 FTVIPT Franklin Mutual 2014 109 387.51 42,378 2.19 0.00 7.12 Shares VIP Investment 2013 67 361.74 24,208 2.28 0.00 16.31 Division (Commenced 4/29/2013) FTVIPT Templeton Foreign VIP 2014 276,787 19.32 5,347,371 1.86 0.00 (10.89) Investment Division 2013 203,220 21.68 4,405,694 2.41 0.00 23.27 2012 225,312 17.59 3,962,470 3.26 0.00 18.60 2011 203,775 14.83 3,021,785 1.67 0.00 (10.44) 2010 558,309 16.56 9,244,694 2.02 0.00 8.67 FTVIPT Templeton Global 2014 49,895 24.79 1,236,895 5.18 0.00 2.12 Bond VIP Investment 2013 54,283 24.27 1,317,714 3.58 0.00 1.89 Division 2012 18,556 23.82 442,101 6.56 0.00 15.31 2011 14,004 20.66 289,345 3.79 0.00 (0.61) 2010 179 20.79 3,728 0.20 0.00 14.71
214 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------- ------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- -------------- ------------ ------------- ---------------- ---------------- Goldman Sachs Mid-Cap Value 2014 10,570 28.5 301,257 0.99 0.00 13.57 Investment Division 2013 11,790 25.09 295,859 0.85 0.00 51.88 2012 15,625 16.52 258,154 1.06 0.00 18.47 2011 19,234 13.95 268,248 0.67 0.00 (6.37) 2010 24,643 14.90 367,089 0.70 0.00 25.00 Goldman Sachs Small Cap 2014 1,766 20.99 37,063 0.68 0.00 6.93 Equity Insights Investment 2013 2,114 19.63 41,480 1.13 0.00 43.55 Division 2012 1,925 13.67 26,317 1.02 0.00 12.83 2011 4,148 12.12 50,259 0.82 0.00 0.67 2010 4,258 12.04 51,252 0.57 0.00 30.12 Invesco V.I. Comstock 2014 18,652 18.63 347,578 1.10 0.00 9.10 Investment Division 2013 18,458 17.08 315,275 1.46 0.00 35.65 (Commenced 5/3/2010) 2012 18,847 12.59 237,306 1.58 0.00 18.92 2011 17,951 10.59 190,062 0.44 0.00 (2.11) 2010 2,966 10.82 32,084 -- 0.00 19.94 Invesco V.I. Government 2014 6 14.12 84 2.32 0.00 3.88 Securities Investment 2013 810 13.59 11,016 4.03 0.00 (2.85) Division 2012 22 13.99 311 -- 0.00 10.11 (Commenced 5/2/2011) 2011 1,570 13.69 21,491 -- 0.00 7.73 Invesco V.I. International 2014 14,202 24.68 350,497 1.54 0.00 0.33 Growth Investment Division 2013 16,229 24.60 399,191 0.34 0.00 19.01 2012 314,797 20.67 6,506,152 1.58 0.00 15.53 2011 1,308 17.89 23,407 1.52 0.00 (6.74) 2010 14,201 19.18 272,411 2.40 0.00 12.86 Janus Aspen Balanced 2014 44,817 24.16 1,082,851 1.54 0.00 8.24 Investment Division 2013 44,471 22.32 992,702 1.28 0.00 19.80 2012 59,065 18.63 1,100,549 2.26 0.00 13.37 2011 81,522 16.43 1,339,788 2.04 0.00 1.36 2010 155,834 16.22 2,526,859 2.71 0.00 8.12 Janus Aspen Forty 2014 20,307 27.10 550,397 0.03 0.00 8.47 Investment Division 2013 34,817 24.99 870,003 0.58 0.00 30.89 2012 46,505 19.09 887,847 0.56 0.00 23.86 2011 45,616 15.41 703,136 0.24 0.00 (6.94) 2010 73,218 16.56 1,212,768 0.24 0.00 6.48 Janus Aspen Janus 2014 27,479 17.47 480,007 0.37 0.00 12.99 Investment Division 2013 28,415 15.46 439,285 0.89 0.00 30.34 2012 81,921 11.86 971,677 0.56 0.00 18.59 2011 85,791 10.00 858,094 0.24 0.00 (5.30) 2010 741,523 10.56 7,832,002 1.09 0.00 14.52 Janus Aspen Overseas 2014 1,884 25.18 47,442 3.16 0.00 (12.10) Investment Division 2013 2,403 28.65 68,836 3.03 0.00 14.28 2012 17,627 25.07 441,942 0.63 0.00 13.18 2011 15,536 22.15 344,135 0.10 0.00 (32.34) 2010 11,481 32.74 375,851 0.73 0.00 25.02
215 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------- ------------------------------------------------ UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ------------- ----------- ------------- ---------------- --------------- MFS VIT Global Equity 2014 7,650 24.74 189,291 0.53 0.00 3.63 Investment Division 2013 7,761 23.88 185,320 0.76 0.00 27.52 2012 7,233 18.72 135,428 0.22 0.00 22.98 2011 356 15.23 5,414 0.67 0.00 (4.53) 2010 14,222 15.95 226,794 0.78 0.00 12.05 MFS VIT New Discovery 2014 8,474 24.41 206,851 -- 0.00 (7.49) Investment Division 2013 8,721 26.39 230,115 -- 0.00 41.22 2012 9,204 18.68 171,983 -- 0.00 20.90 2011 7,919 15.46 122,395 -- 0.00 (10.49) 2010 7,814 17.27 134,923 -- 0.00 35.94 MFS VIT Value Investment 2014 903 24.45 22,067 1.33 0.00 10.20 Division 2013 978 22.18 21,702 1.01 0.00 35.59 2012 1,049 16.36 17,162 1.77 0.00 15.88 2011 3,138 14.12 44,299 1.45 0.00 (0.47) 2010 5,577 14.18 79,095 1.32 0.00 11.22 MFS VIT II High Yield 2014 7,587 18.97 143,885 5.29 0.00 2.53 Investment Division 2013 8,075 18.50 149,361 2.22 0.00 3.84 (Commenced 8/19/2013) MIST AllianceBernstein 2014 3,865 12.91 49,893 1.91 0.00 7.35 Global Dynamic Allocation 2013 2,847 12.03 34,236 0.59 0.00 11.15 Investment Division 2012 656 10.82 7,098 -- 0.00 4.39 (Commenced 4/30/2012) MIST Allianz Global Investors 2014 72 1.05 76 0.70 0.00 5.36 Dynamic Multi-Asset Plus Investment Division (Commenced 4/28/2014) MIST American Funds 2014 59,916 14.63 876,678 1.58 0.00 6.38 Balanced Allocation 2013 57,458 13.75 790,263 1.64 0.00 18.91 Investment Division 2012 54,591 11.57 631,423 1.94 0.00 13.80 2011 50,766 10.16 515,995 1.44 0.00 (1.80) 2010 41,296 10.35 427,406 1.26 0.00 12.40 MIST American Funds Growth 2014 101,601 14.72 1,495,337 1.36 0.00 6.72 Allocation Investment 2013 108,102 13.79 1,490,834 1.27 0.00 25.44 Division 2012 84,318 10.99 926,978 1.55 0.00 16.54 2011 82,817 9.43 781,245 1.38 0.00 (4.41) 2010 71,574 9.87 706,300 0.62 0.00 13.78 MIST American Funds 2014 71,127 14.35 1,020,697 1.69 0.00 6.44 Moderate Allocation 2013 64,895 13.48 874,921 1.90 0.00 13.75 Investment Division 2012 49,584 11.85 587,686 2.15 0.00 11.28 2011 37,706 10.65 401,606 1.66 0.00 0.44 2010 23,584 10.60 250,094 1.38 0.00 10.15 MIST AQR Global Risk 2014 17,046 10.56 180,015 -- 0.00 4.00 Balanced Investment Division 2013 15,059 10.15 152,914 1.78 0.00 (3.39) (Commenced 4/30/2012) 2012 2,358 10.51 24,784 -- 0.00 4.63
216 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 ----------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ----------- -------------- ------------ MIST BlackRock Global 2014 15,552 12.32 191,557 Tactical Strategies 2013 8,821 11.63 102,574 Investment Division 2012 3,707 10.54 39,078 (Commenced 4/30/2012) MIST Clarion Global Real 2014 1,424,610 20.39 - 22.44 31,468,604 Estate Investment Division 2013 1,412,669 18.10 - 19.74 27,497,715 2012 1,388,419 17.60 - 19.03 26,083,318 2011 1,311,823 14.06 - 15.06 19,560,387 2010 1,342,988 14.98 - 15.90 21,160,564 MIST ClearBridge Aggressive 2014 2,519,284 16.47 - 19.36 47,278,544 Growth Investment Division 2013 1,375,745 13.83 - 16.25 21,684,945 2012 1,313,742 9.48 - 11.14 14,226,385 2011 1,353,551 7.98 - 9.38 12,365,794 2010 888,257 7.56 - 9.05 7,832,576 MIST Harris Oakmark 2014 1,446,693 15.25 - 29.89 41,530,766 International Investment 2013 1,980,844 16.14 - 31.64 52,830,774 Division 2012 1,421,965 12.34 - 24.19 33,602,695 2011 1,483,192 9.53 - 18.68 27,216,742 2010 1,473,309 20.09 - 21.72 31,544,698 MIST Invesco Balanced- 2014 27,242 1.14 31,001 Risk Allocation 2013 22,938 1.08 24,723 Investment Division 2012 7,100 1.06 7,513 (Commenced 4/30/2012) MIST Invesco Mid Cap Value 2014 2,536,877 22.16 - 47.22 94,874,185 Investment Division 2013 2,707,441 20.16 - 42.94 92,130,609 2012 2,873,152 15.40 - 32.87 74,892,920 2011 9,000 13.43 120,858 2010 7,974 13.94 111,190 MIST Invesco Small Cap 2014 249,054 25.95 - 32.94 7,086,689 Growth Investment Division 2013 251,143 24.20 - 30.45 6,613,228 2012 245,733 17.38 - 21.67 4,616,668 2011 279,254 14.80 - 18.28 4,412,967 2010 280,254 15.06 - 18.44 4,469,898 MIST JPMorgan Global 2014 135,962 1.26 171,141 Active Allocation 2013 93,835 1.18 110,413 Investment Division 2012 17,811 1.06 18,883 (Commenced 4/30/2012) MIST JPMorgan Small Cap 2014 12,640 23.37 295,411 Value Investment Division 2013 11,410 22.33 254,799 2012 2,300 16.76 38,553 2011 2,480 14.49 35,938 2010 1,705 16.12 27,489 MIST Loomis Sayles Global 2014 21,302 19.88 423,380 Markets Investment Division 2013 21,834 19.16 418,260 (Commenced 4/29/2013) FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MIST BlackRock Global 2014 1.11 0.00 5.92 Tactical Strategies 2013 1.20 0.00 10.31 Investment Division 2012 -- 0.00 4.21 (Commenced 4/30/2012) MIST Clarion Global Real 2014 1.67 0.00 - 0.90 7.53 - 13.67 Estate Investment Division 2013 6.88 0.00 - 0.90 2.83 - 3.76 2012 2.22 0.00 - 0.90 25.16 - 26.30 2011 4.03 0.00 - 0.90 (6.12) - (5.28) 2010 8.28 0.00 - 0.90 15.24 - 16.28 MIST ClearBridge Aggressive 2014 0.19 0.00 - 0.90 18.05 - 19.12 Growth Investment Division 2013 0.40 0.00 - 0.90 44.60 - 45.90 2012 0.21 0.00 - 0.90 8.91 - 18.81 2011 0.08 0.00 - 0.90 (8.33) - 3.56 2010 0.06 0.00 - 0.90 22.94 - 24.05 MIST Harris Oakmark 2014 2.49 0.00 - 0.90 (6.37) - (5.52) International Investment 2013 2.71 0.00 - 0.90 29.63 - 30.80 Division 2012 1.82 0.00 - 0.90 28.31 - 29.47 2011 0.03 0.00 - 0.90 (14.75) - (13.98) 2010 2.05 0.00 - 0.90 15.63 - 16.67 MIST Invesco Balanced- 2014 -- 0.00 5.58 Risk Allocation 2013 -- 0.00 1.86 Investment Division 2012 0.66 0.00 4.67 (Commenced 4/30/2012) MIST Invesco Mid Cap Value 2014 0.70 0.00 - 0.90 8.97 - 9.96 Investment Division 2013 0.90 0.00 - 0.90 29.46 - 30.87 2012 -- 0.00 2.78 - 3.71 2011 0.53 0.00 (3.69) 2010 0.58 0.00 25.53 MIST Invesco Small Cap 2014 -- 0.00 - 0.90 7.21 - 8.18 Growth Investment Division 2013 0.40 0.00 - 0.90 39.28 - 40.54 2012 -- 0.00 - 0.90 17.44 - 18.51 2011 -- 0.00 - 0.90 (1.73) - (0.85) 2010 -- 0.00 - 0.90 25.34 - 26.47 MIST JPMorgan Global 2014 1.11 0.00 6.98 Active Allocation 2013 0.06 0.00 10.99 Investment Division 2012 1.08 0.00 4.66 (Commenced 4/30/2012) MIST JPMorgan Small Cap 2014 0.96 0.00 4.66 Value Investment Division 2013 0.27 0.00 33.25 2012 0.95 0.00 15.66 2011 1.63 0.00 (10.12) 2010 0.82 0.00 19.53 MIST Loomis Sayles Global 2014 2.29 0.00 3.76 Markets Investment Division 2013 -- 0.00 17.34 (Commenced 4/29/2013)
217 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- -------------- ------------ ------------- ---------------- ----------------- MIST Lord Abbett Bond 2014 941,028 25.70 - 39.77 28,665,010 5.82 0.00 - 0.90 4.18 - 5.12 Debenture Investment 2013 1,003,912 24.67 - 37.84 29,124,114 6.78 0.00 - 0.90 7.20 - 8.17 Division 2012 1,063,203 23.01 - 34.98 28,515,095 7.24 0.00 - 0.90 12.17 - 13.19 2011 1,085,311 20.52 - 30.90 25,730,993 5.96 0.00 - 0.90 3.89 - 4.83 2010 1,222,207 19.75 - 29.48 27,673,730 6.47 0.00 - 0.90 12.16 - 13.18 MIST Met/Templeton 2014 11,790 14.75 173,865 4.66 0.00 1.41 International Bond 2013 5,967 14.54 86,776 0.68 0.00 1.27 Investment Division 2012 181 14.36 2,605 -- 0.00 8.00 (Commenced 4/30/2012) MIST MetLife Asset 2014 1,096,717 17.06 - 181.68 20,893,340 0.90 0.00 - 0.90 4.29 - 5.24 Allocation 100 2013 1,065,070 16.36 - 172.88 19,271,452 0.93 0.00 - 0.90 28.61 - 29.77 Investment Division 2012 1,085,674 12.72 - 133.49 15,142,596 0.85 0.00 - 0.90 (0.17) - 3.96 (Commenced 5/2/2011) 2011 1,049,786 10.97 - 114.35 12,472,661 -- 0.00 - 0.90 (13.94) - (10.95) MIST MetLife Balanced Plus 2014 17,529 13.43 235,501 1.67 0.00 9.65 Investment Division 2013 7,685 12.25 94,166 1.11 0.00 14.36 (Commenced 4/30/2012) 2012 4,287 10.71 45,933 -- 0.00 5.63 MIST MetLife Multi-Index 2014 968 125.38 121,407 -- 0.00 9.26 Targeted Risk 2013 23 114.75 2,679 0.24 0.00 6.63 Investment Division (Commenced 4/29/2013) MIST MetLife Small Cap 2014 36,751 23.52 864,243 0.04 0.00 1.72 Value Investment Division 2013 41,430 23.12 957,820 1.08 0.00 32.45 2012 50,513 17.46 881,737 -- 0.00 17.99 2011 54,483 14.79 806,051 0.92 0.00 (8.98) 2010 96,930 16.25 1,575,589 1.05 0.00 19.90 MIST MFS Emerging Markets 2014 36,263 11.79 - 18.91 521,123 0.62 0.00 (6.23) - (3.93) Equity Investment Division 2013 21,705 12.57 272,836 0.98 0.00 (4.80) (Commenced 5/2/2011) 2012 6,737 13.20 88,957 1.57 0.00 19.10 2011 2,070 11.09 22,950 -- 0.00 (22.19) MIST MFS Research 2014 1,025,165 16.93 - 19.91 19,140,390 2.35 0.00 - 0.90 (7.57) - (6.74) International Investment 2013 1,065,499 18.19 - 21.34 21,367,741 2.53 0.00 - 0.90 18.51 - 19.58 Division 2012 920,691 15.26 - 17.85 15,720,813 2.10 0.00 - 0.90 15.92 - 16.97 2011 820,338 13.07 - 15.26 12,176,899 2.07 0.00 - 0.90 (11.23) - (10.44) 2010 838,110 14.64 - 17.04 13,920,818 1.89 0.00 - 0.90 10.65 - 11.65 MIST Morgan Stanley Mid Cap 2014 10,592,901 9.62 - 27.00 233,885,326 0.06 0.00 - 0.90 0.38 - 1.29 Growth Investment Division 2013 11,170,989 9.50 - 26.66 244,413,959 0.79 0.00 - 0.90 38.06 - 39.30 2012 11,831,703 6.82 - 19.14 186,491,111 -- 0.00 - 0.90 8.57 - 9.55 2011 12,356,734 6.22 - 17.47 178,350,417 0.73 0.00 - 0.90 (7.50) - (6.67) 2010 13,121,650 6.67 - 18.71 203,754,931 -- 0.00 - 0.90 17.91 - 32.19 MIST Oppenheimer Global 2014 1,580,006 29.15 - 34.22 48,430,521 1.02 0.00 - 0.90 1.49 - 2.41 Equity Investment Division 2013 1,679,985 28.72 - 33.41 50,486,885 2.05 0.00 - 0.90 26.28 - 27.42 2012 1,769,256 22.75 - 26.22 41,848,339 1.64 0.00 - 0.90 20.42 - 21.52 2011 1,918,512 18.89 - 21.58 37,497,219 1.98 0.00 - 0.90 (9.05) - (8.24) 2010 2,044,692 20.77 - 23.52 43,706,570 1.54 0.00 - 0.90 15.19 - 16.23
218 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------- ------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- -------------- ------------ ------------- ---------------- ---------------- MIST PIMCO Inflation 2014 747,392 11.87 - 17.89 11,277,978 1.83 0.00 - 0.90 2.25 - 3.18 Protected Bond Investment 2013 755,274 11.51 - 17.34 11,213,500 2.44 0.00 - 0.90 (9.80) - (8.98) Division 2012 837,709 12.64 - 19.05 13,671,560 3.14 0.00 - 0.90 8.34 - 20.51 2011 700,157 11.56 - 17.42 10,519,501 1.74 0.00 - 0.90 10.23 - 11.49 2010 653,613 12.97 - 15.63 8,812,538 2.54 0.00 - 0.90 7.04 - 8.00 MIST PIMCO Total Return 2014 2,149,016 12.14 - 22.45 46,980,970 2.56 0.00 - 0.90 3.55 - 4.49 Investment Division 2013 2,464,593 11.62 - 21.48 49,962,747 4.38 0.00 - 0.90 (2.60) - (1.72) 2012 2,365,572 11.82 - 21.86 50,485,893 3.30 0.00 - 0.90 8.57 - 9.56 2011 2,427,091 10.79 - 19.95 47,131,879 2.84 0.00 - 0.90 2.50 - 3.42 2010 2,450,427 17.69 - 19.29 46,602,262 3.66 0.00 - 0.90 7.44 - 8.41 MIST Pioneer Fund 2014 10,521 21.40 225,164 1.65 0.00 11.16 Investment Division 2013 10,624 19.25 204,562 3.20 0.00 33.08 2012 13,454 14.47 194,664 1.53 0.00 10.59 2011 13,480 13.08 176,354 1.21 0.00 (4.55) 2010 17,938 13.71 245,860 0.90 0.00 17.93 MIST Pyramis Managed Risk 2014 13 117.98 1,575 -- 0.00 8.64 Investment Division 2013 3 108.59 298 1.24 0.00 7.52 (Commenced 4/29/2013) MIST Schroders Global 2014 24,844 1.28 31,786 1.35 0.00 7.74 Multi-Asset 2013 19,086 1.19 22,665 0.01 0.00 10.11 Investment Division 2012 5,334 1.08 5,752 1.48 0.00 6.68 (Commenced 4/30/2012) MIST SSgA Growth and Income 2014 467,656 15.28 - 17.53 7,718,022 2.44 0.00 - 0.90 5.19 - 6.14 ETF Investment Division 2013 503,743 14.53 - 16.52 7,827,724 2.65 0.00 - 0.90 12.21 - 13.22 2012 450,776 12.95 - 14.59 6,167,640 2.40 0.00 - 0.90 12.09 - 13.11 2011 381,525 11.55 - 12.90 4,611,127 1.79 0.00 - 0.90 0.37 - 1.28 2010 320,284 11.51 - 12.74 3,818,907 1.29 0.00 - 0.90 11.60 - 12.61 MIST SSgA Growth ETF 2014 398,249 14.87 - 17.38 6,445,663 1.97 0.00 - 0.90 4.74 - 5.69 Investment Division 2013 366,821 14.19 - 16.45 5,570,220 2.22 0.00 - 0.90 17.28 - 18.34 2012 332,667 12.10 - 13.90 4,244,488 2.07 0.00 - 0.90 14.28 - 15.32 2011 299,115 10.59 - 12.05 3,309,518 1.76 0.00 - 0.90 (2.75) - (1.86) 2010 237,751 10.89 - 12.28 2,679,381 1.57 0.00 - 0.90 13.35 - 14.37 MIST T. Rowe Price Large 2014 133,581 17.94 2,395,891 1.47 0.00 13.57 Cap Value Investment 2013 128,280 15.79 2,025,987 1.68 0.00 34.09 Division 2012 112,114 11.78 1,320,515 1.62 0.00 18.27 2011 108,604 9.96 1,081,554 0.51 0.00 (3.77) 2010 601,441 10.35 6,224,061 1.22 0.00 17.33 MIST T. Rowe Price Mid Cap 2014 1,478,700 19.01 - 31.56 31,233,141 -- 0.00 - 0.90 12.03 - 13.04 Growth Investment 2013 1,482,938 16.97 - 27.99 27,748,656 0.40 0.00 - 0.90 35.73 - 36.96 Division 2012 1,544,904 12.50 - 20.49 21,145,655 -- 0.00 - 0.90 12.90 - 13.93 2011 1,957,835 11.07 - 18.03 25,204,627 -- 0.00 - 0.90 (2.28) - (1.39) 2010 1,725,748 11.33 - 18.33 21,234,908 -- 0.00 - 0.90 26.93 - 28.07
219 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- -------------- ------------ ------------- ---------------- ----------------- MIST WMC Large Cap 2014 10,583,026 14.53 - 62.18 412,427,190 0.93 0.00 - 0.90 12.85 - 13.87 Research Investment 2013 11,184,832 12.78 - 55.10 385,342,945 1.41 0.00 - 0.90 33.40 - 34.60 Division 2012 11,913,338 9.54 - 41.30 307,558,825 1.21 0.00 - 0.90 12.66 - 13.68 2011 12,762,727 8.43 - 36.66 291,615,739 1.12 0.00 - 0.90 (0.36) - 0.54 2010 13,468,383 8.42 - 36.79 309,489,536 1.34 0.00 - 0.90 11.73 - 12.73 MSF Baillie Gifford 2014 2,569,893 13.28 - 20.09 41,212,522 1.42 0.00 - 0.90 (3.97) - (3.10) International Stock 2013 2,695,199 13.71 - 20.73 44,856,340 1.61 0.00 - 0.90 14.51 - 15.54 Investment Division 2012 2,785,901 11.92 - 17.95 40,399,665 1.37 0.00 - 0.90 18.44 - 19.52 2011 2,947,427 10.02 - 15.01 35,919,561 1.77 0.00 - 0.90 (20.59) - (19.87) 2010 2,985,340 12.56 - 18.74 45,766,876 1.57 0.00 - 0.90 6.25 - 7.21 MSF Barclays Aggregate Bond 2014 6,012,506 18.66 - 22.06 130,875,542 2.97 0.00 - 0.90 4.86 - 5.81 Index Investment Division 2013 5,904,440 17.79 - 20.85 121,423,866 3.51 0.00 - 0.90 (3.20) - (2.33) 2012 5,528,875 18.38 - 21.34 116,415,557 3.71 0.00 - 0.90 2.97 - 3.90 2011 5,367,889 17.85 - 20.54 108,763,587 3.52 0.00 - 0.90 6.55 - 7.51 2010 6,069,208 16.75 - 19.11 114,484,755 3.72 0.00 - 0.90 5.10 - 6.05 MSF BlackRock Bond Income 2014 3,018,880 21.34 - 101.04 82,796,372 3.45 0.00 - 0.90 6.13 - 7.08 Investment Division 2013 3,164,737 19.93 - 94.36 81,249,803 3.96 0.00 - 0.90 (1.66) - (0.77) 2012 3,286,524 20.08 - 95.09 85,513,325 2.69 0.00 - 0.90 6.58 - 7.55 2011 3,448,815 18.67 - 88.42 84,065,205 3.92 0.00 - 0.90 5.61 - 6.56 2010 3,695,898 17.52 - 82.97 84,862,836 3.95 0.00 - 0.90 7.37 - 8.34 MSF BlackRock Capital 2014 414,973 15.60 - 62.78 9,736,331 0.06 0.00 - 0.90 7.92 - 8.90 Appreciation Investment 2013 1,238,069 14.32 - 57.65 20,880,180 0.83 0.00 - 0.90 33.02 - 34.22 Division 2012 1,083,757 10.67 - 42.95 14,012,099 0.31 0.00 - 0.90 13.34 - 14.37 2011 533,802 9.33 - 37.56 7,367,810 0.19 0.00 - 0.90 (9.76) - (8.94) 2010 494,998 10.25 - 41.25 7,322,523 0.23 0.00 - 0.90 18.75 - 19.82 MSF BlackRock Large Cap 2014 943,466 19.29 - 21.62 20,080,783 1.25 0.00 - 0.90 8.94 - 9.92 Value Investment Division 2013 952,777 17.71 - 19.67 18,457,575 1.36 0.00 - 0.90 30.87 - 32.05 2012 972,398 13.53 - 14.89 14,290,950 1.63 0.00 - 0.90 13.25 - 14.28 2011 1,036,664 11.95 - 13.03 13,313,052 1.11 0.00 - 0.90 1.43 - 2.35 2010 1,026,360 11.78 - 12.73 12,899,137 1.05 0.00 - 0.90 8.24 - 9.22 MSF BlackRock Money Market 2014 1,682,938 17.04 - 17.98 30,032,793 -- 0.00 - 0.90 (0.90) - 0.00 Investment Division 2013 1,334,062 17.19 - 17.98 23,781,879 -- 0.00 - 0.90 (0.90) - 0.00 2012 1,306,002 17.35 - 17.98 23,274,454 -- 0.00 - 0.90 (0.90) - 0.00 2011 1,163,332 17.51 - 17.98 20,783,208 -- 0.00 - 0.90 (0.89) - 0.00 2010 1,663,896 17.66 - 17.98 29,818,336 0.01 0.00 - 0.90 (0.89) - 0.01 MSF Frontier Mid Cap Growth 2014 6,861,561 27.24 - 103.81 235,559,690 -- 0.00 - 0.90 10.14 - 11.14 Investment Division 2013 7,328,205 24.52 - 93.40 227,974,022 1.25 0.00 - 0.90 31.58 - 32.77 2012 8,053,406 18.55 - 70.35 190,699,476 -- 0.00 - 0.90 9.98 - 10.97 2011 8,613,267 16.80 - 63.39 184,990,795 0.30 0.00 - 0.90 (3.87) - (3.00) 2010 9,010,506 17.39 - 65.35 200,141,525 0.07 0.00 - 0.90 14.27 - 15.30 MSF Jennison Growth 2014 975,379 11.20 - 24.72 22,860,613 0.26 0.00 - 0.90 8.08 - 9.06 Investment Division 2013 1,014,111 10.27 - 22.67 21,754,126 0.41 0.00 - 0.90 35.77 - 37.00 2012 1,151,518 7.50 - 16.55 17,774,611 0.22 0.00 - 0.90 14.74 - 15.78 2011 1,066,474 6.47 - 14.29 14,166,486 0.28 0.00 - 0.90 (0.39) - 0.51 2010 1,234,658 6.44 - 14.22 15,408,401 0.59 0.00 - 0.90 10.63 - 11.66
220 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------- ------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- -------------- ------------ ------------- ---------------- ---------------- MSF Loomis Sayles Small Cap 2014 78,544 27.05 - 599.24 24,891,171 0.04 0.00 - 0.90 2.83 - 3.76 Core Investment Division 2013 81,272 26.07 - 577.53 25,008,758 0.43 0.00 - 0.90 39.78 - 41.04 2012 88,479 18.49 - 409.49 18,836,597 -- 0.00 - 0.90 13.52 - 14.55 2011 95,949 16.14 - 357.46 17,443,984 0.11 0.00 - 0.90 (0.31) - 0.59 2010 115,539 16.04 - 355.36 18,282,784 0.09 0.00 - 0.90 26.38 - 27.53 MSF Loomis Sayles Small Cap 2014 532,728 19.12 - 21.62 11,372,609 -- 0.00 - 0.90 0.32 - 1.22 Growth Investment Division 2013 575,475 19.06 - 21.35 12,136,657 -- 0.00 - 0.90 47.37 - 48.70 2012 569,420 12.93 - 14.36 8,095,037 -- 0.00 - 0.90 10.19 - 11.19 2011 639,754 11.74 - 12.92 8,179,779 -- 0.00 - 0.90 2.06 - 2.98 2010 597,616 11.50 - 12.54 7,430,441 -- 0.00 - 0.90 30.53 - 31.71 MSF Met/Artisan Mid Cap 2014 171,419 29.03 - 417.58 62,265,623 0.72 0.00 - 0.90 1.01 - 1.93 Value Investment Division 2013 179,229 28.55 - 409.68 64,604,740 0.96 0.00 - 0.90 35.63 - 36.85 2012 188,777 20.91 - 299.35 50,145,783 0.99 0.00 - 0.90 10.86 - 11.86 2011 187,483 18.74 - 267.60 47,188,989 0.95 0.00 - 0.90 5.80 - 6.76 2010 222,836 17.60 - 250.67 46,601,141 0.74 0.00 - 0.90 7.99 - 15.04 MSF MetLife Asset 2014 311,182 15.36 - 163.63 5,533,722 3.93 0.00 - 0.90 3.79 - 4.73 Allocation 20 Investment 2013 302,268 14.80 - 156.63 5,157,553 3.17 0.00 - 0.90 3.57 - 4.50 Division 2012 330,868 14.29 - 150.19 5,385,935 2.97 0.00 - 0.90 8.50 - 9.49 2011 293,962 13.17 - 137.56 4,371,255 2.46 0.00 - 0.90 2.55 - 3.48 2010 281,025 12.84 - 133.23 4,036,496 3.52 0.00 - 0.90 9.35 - 10.34 MSF MetLife Asset 2014 537,152 16.22 - 172.58 9,972,600 3.00 0.00 - 0.90 4.22 - 5.16 Allocation 40 Investment 2013 528,645 15.56 - 164.48 9,308,532 2.71 0.00 - 0.90 10.20 - 11.20 Division 2012 548,694 14.12 - 148.28 8,676,630 2.88 0.00 - 0.90 10.73 - 11.74 2011 491,119 12.75 - 133.03 6,564,562 2.28 0.00 - 0.90 0.37 - 1.28 2010 523,187 12.70 - 131.65 6,925,701 3.39 0.00 - 0.90 10.78 - 11.78 MSF MetLife Asset 2014 2,946,636 16.81 - 179.11 53,734,760 2.27 0.00 - 0.90 4.35 - 5.29 Allocation 60 Investment 2013 2,959,238 16.11 - 170.50 51,411,065 2.13 0.00 - 0.90 17.23 - 18.29 Division 2012 3,085,848 13.74 - 144.51 45,401,738 2.48 0.00 - 0.90 12.45 - 13.47 2011 3,050,810 12.22 - 127.62 39,588,309 1.72 0.00 - 0.90 (2.02) - (1.14) 2010 2,825,563 12.48 - 129.39 37,214,331 2.69 0.00 - 0.90 12.45 - 13.47 MSF MetLife Asset 2014 5,267,738 17.22 - 18.78 98,075,582 1.82 0.00 - 0.90 4.59 - 5.53 Allocation 80 Investment 2013 5,304,870 16.46 - 17.80 93,658,356 1.65 0.00 - 0.90 23.40 - 24.51 Division 2012 5,433,641 13.34 - 14.29 77,039,719 2.10 0.00 - 0.90 14.77 - 15.82 2011 5,400,236 11.62 - 12.34 66,170,247 1.59 0.00 - 0.90 (4.42) - (3.55) 2010 5,118,269 12.16 - 126.24 65,064,069 2.27 0.00 - 0.90 13.86 - 14.89 MSF MetLife Mid Cap Stock 2014 2,603,842 30.57 - 34.82 89,174,913 1.02 0.00 - 0.90 8.51 - 9.49 Index Investment Division 2013 3,096,714 28.17 - 31.80 96,112,727 1.15 0.00 - 0.90 31.96 - 33.15 2012 2,971,386 21.35 - 23.88 69,807,817 0.99 0.00 - 0.90 16.54 - 17.60 2011 3,140,839 18.32 - 20.31 62,847,615 0.90 0.00 - 0.90 (2.77) - (1.89) 2010 3,223,737 18.84 - 20.70 65,796,062 0.99 0.00 - 0.90 25.15 - 26.28 MSF MetLife Stock Index 2014 31,845,594 21.66 - 97.03 986,064,717 1.66 0.00 - 0.90 12.35 - 13.36 Investment Division 2013 33,504,283 19.11 - 85.59 926,254,934 1.82 0.00 - 0.90 30.84 - 32.02 2012 35,058,600 14.48 - 64.83 739,806,231 1.76 0.00 - 0.90 14.72 - 15.76 2011 36,301,700 12.50 - 56.01 668,626,167 1.66 0.00 - 0.90 0.93 - 1.84 2010 36,664,506 12.28 - 55.00 671,751,965 1.75 0.00 - 0.90 13.79 - 14.82
221 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 ----------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ----------- -------------- ------------ MSF MFS Total Return 2014 495,079 18.19 - 97.90 9,964,116 Investment Division 2013 516,460 16.89 - 90.12 9,566,029 2012 523,594 14.32 - 75.73 8,143,436 2011 528,477 12.95 - 67.87 7,362,338 2010 568,106 12.76 - 66.27 7,708,272 MSF MFS Value Investment 2014 3,651,820 21.71 - 31.93 87,234,542 Division 2013 3,880,440 19.62 - 28.81 83,882,181 2012 3,634,888 14.55 - 21.23 57,891,425 2011 3,828,828 12.53 - 18.20 52,363,369 2010 3,975,344 12.48 - 18.04 54,052,850 MSF MSCI EAFE Index 2014 4,721,774 12.84 - 18.72 77,801,016 Investment Division 2013 4,619,766 13.79 - 19.92 81,042,858 2012 4,738,737 11.42 - 16.34 68,221,885 2011 4,910,651 9.74 - 13.81 59,759,550 2010 4,717,340 11.23 - 15.78 65,367,829 MSF Neuberger Berman 2014 3,467,583 27.43 - 31.24 106,824,598 Genesis Investment Division 2013 3,669,017 27.67 - 31.24 113,031,475 2012 3,701,342 20.16 - 22.55 82,409,606 2011 3,915,596 18.49 - 20.50 79,279,066 2010 4,111,864 17.63 - 19.37 78,718,096 MSF Russell 2000 Index 2014 2,260,930 24.05 - 36.04 73,667,200 Investment Division 2013 2,328,388 23.11 - 34.31 72,232,088 2012 2,492,581 16.83 - 24.76 55,930,600 2011 2,653,125 14.59 - 21.28 51,171,784 2010 2,808,600 15.35 - 22.19 56,596,227 MSF T. Rowe Price Large Cap 2014 3,259,625 18.86 - 30.68 83,295,035 Growth Investment Division 2013 3,427,787 17.44 - 28.13 80,327,308 2012 2,902,055 12.65 - 20.21 49,402,465 2011 2,954,760 10.73 - 16.99 42,317,336 2010 3,148,378 10.95 - 17.18 45,775,087 MSF T. Rowe Price Small Cap 2014 2,818,717 35.21 - 42.00 109,708,317 Growth Investment Division 2013 3,406,451 33.24 - 39.29 125,276,849 2012 3,660,384 23.20 - 27.18 93,411,008 2011 3,938,724 20.15 - 23.40 86,825,771 2010 4,055,742 19.98 - 22.99 88,004,866 MSF Van Eck Global Natural 2014 1,164 151.34 176,178 Resources Investment 2013 916 185.99 170,365 Division 2012 319 167.46 53,423 (Commenced 5/2/2011) 2011 81 162.89 13,179 MSF Western Asset 2014 989,244 23.46 - 41.91 26,015,238 Management Strategic Bond 2013 1,022,252 22.45 - 39.73 25,366,442 Opportunities Investment 2012 1,037,022 22.40 - 39.30 25,456,035 Division 2011 1,068,823 20.28 - 35.25 23,536,888 2010 1,145,809 19.28 - 33.21 23,786,502 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MSF MFS Total Return 2014 2.33 0.00 - 0.90 7.67 - 8.64 Investment Division 2013 2.52 0.00 - 0.90 17.93 - 18.99 2012 2.81 0.00 - 0.90 10.58 - 11.58 2011 2.71 0.00 - 0.90 1.50 - 2.42 2010 3.01 0.00 - 0.90 9.09 - 10.08 MSF MFS Value Investment 2014 1.68 0.00 - 0.90 9.82 - 10.81 Division 2013 1.69 0.00 - 0.90 (11.63) - 35.73 2012 1.92 0.00 - 0.90 15.60 - 16.65 2011 1.56 0.00 - 0.90 (0.05) - 0.85 2010 1.43 0.00 - 0.90 10.43 - 11.42 MSF MSCI EAFE Index 2014 2.52 0.00 - 0.90 (6.85) - (6.00) Investment Division 2013 3.03 0.00 - 0.90 20.77 - 21.86 2012 3.07 0.00 - 0.90 17.26 - 18.33 2011 2.43 0.00 - 0.90 (13.28) - (12.50) 2010 2.68 0.00 - 0.90 7.22 - 8.19 MSF Neuberger Berman 2014 0.39 0.00 - 0.90 (0.89) - 0.01 Genesis Investment Division 2013 0.76 0.00 - 0.90 37.28 - 38.52 2012 0.37 0.00 - 0.90 9.04 - 10.03 2011 0.74 0.00 - 0.90 4.85 - 5.80 2010 0.51 0.00 - 0.90 20.49 - 21.58 MSF Russell 2000 Index 2014 1.14 0.00 - 0.90 4.10 - 5.04 Investment Division 2013 1.53 0.00 - 0.90 37.31 - 38.55 2012 1.15 0.00 - 0.90 15.30 - 16.35 2011 1.05 0.00 - 0.90 (4.96) - (4.10) 2010 1.10 0.00 - 0.90 25.78 - 26.92 MSF T. Rowe Price Large Cap 2014 0.06 0.00 - 0.90 8.11 - 9.09 Growth Investment Division 2013 0.25 0.00 - 0.90 37.91 - 39.19 2012 0.12 0.00 - 0.90 17.90 - 18.97 2011 0.09 0.00 - 0.90 (1.99) - (1.11) 2010 0.27 0.00 - 0.90 16.00 - 17.05 MSF T. Rowe Price Small Cap 2014 0.02 0.00 - 0.90 5.95 - 6.91 Growth Investment Division 2013 0.34 0.00 - 0.90 43.26 - 44.55 2012 -- 0.00 - 0.90 15.13 - 16.18 2011 -- 0.00 - 0.90 0.86 - 1.77 2010 -- 0.00 - 0.90 33.69 - 34.90 MSF Van Eck Global Natural 2014 0.49 0.00 (18.63) Resources Investment 2013 0.61 0.00 14.17 Division 2012 -- 0.00 2.80 (Commenced 5/2/2011) 2011 -- 0.00 (22.34) MSF Western Asset 2014 5.30 0.00 - 0.90 4.53 - 5.47 Management Strategic Bond 2013 4.98 0.00 - 0.90 0.19 - 1.09 Opportunities Investment 2012 3.61 0.00 - 0.90 10.49 - 11.50 Division 2011 5.05 0.00 - 0.90 5.19 - 6.14 2010 6.04 0.00 - 0.90 11.72 - 12.73
222 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------- ------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- -------------- ------------ ------------- ---------------- ---------------- MSF Western Asset 2014 904,420 16.19 - 25.22 16,386,046 1.93 0.00 - 0.90 1.89 - 2.81 Management U.S. 2013 935,377 15.89 - 24.53 16,494,249 2.13 0.00 - 0.90 (1.63) - (0.74) Government Investment 2012 936,357 16.15 - 24.71 16,622,548 2.09 0.00 - 0.90 2.44 - 3.37 Division 2011 957,065 15.77 - 23.91 16,435,798 1.49 0.00 - 0.90 4.56 - 5.51 2010 1,021,769 15.08 - 22.66 16,633,651 2.70 0.00 - 0.90 4.86 - 5.81 MSF WMC Balanced 2014 8,541,626 23.21 - 93.94 312,335,178 1.99 0.00 - 0.90 9.56 - 10.55 Investment Division 2013 9,093,665 21.00 - 84.97 302,812,153 2.46 0.00 - 0.90 19.51 - 20.59 2012 9,597,280 17.41 - 70.46 266,981,783 2.28 0.00 - 0.90 11.36 - 12.38 2011 10,223,668 15.50 - 62.70 255,554,192 2.43 0.00 - 0.90 2.87 - 3.81 2010 10,826,228 14.93 - 60.41 263,102,316 1.90 0.00 - 0.90 8.67 - 9.65 MSF WMC Core Equity 2014 1,304,591 20.87 - 68.96 75,552,945 0.70 0.00 - 0.90 9.64 - 10.63 Opportunities Investment 2013 1,389,950 18.87 - 62.33 72,729,703 1.37 0.00 - 0.90 32.50 - 33.70 Division 2012 1,511,861 14.11 - 46.62 58,219,352 0.83 0.00 - 0.90 11.85 - 12.86 2011 1,569,723 12.50 - 41.31 53,650,792 1.15 0.00 - 0.90 (4.89) - (4.03) 2010 1,632,869 13.03 - 43.04 57,910,618 1.00 0.00 - 0.90 11.00 - 12.00 Oppenheimer VA Main 2014 140 36.01 5,052 -- 0.00 11.93 Street Small Cap Investment Division (Commenced 4/28/2008 and began transactions in 2014) PIMCO VIT All Asset 2014 70,102 12.87 902,397 5.22 0.00 0.47 Investment Division 2013 72,143 12.81 924,295 9.56 0.00 0.27 (Commenced 5/2/2011) 2012 10,325 12.78 131,919 5.69 0.00 10.96 2011 8,649 11.12 96,138 3.04 0.00 (3.47) PIMCO VIT 2014 3,576 9.85 35,230 0.40 0.00 (18.42) CommodityRealReturn 2013 479 12.08 5,783 -- 0.00 (7.98) Strategy Investment Division (Commenced 4/29/2013) PIMCO VIT Low Duration 2014 123,927 12.55 1,555,287 1.13 0.00 0.85 Investment Division 2013 126,188 12.44 1,570,296 1.45 0.00 0.21 2012 79,088 12.46 985,514 1.91 0.00 5.86 2011 80,364 11.77 946,008 1.68 0.00 1.11 2010 65,497 11.64 762,531 1.62 0.00 5.29 Pioneer VCT Mid Cap Value 2014 1,012 69.40 70,257 0.82 0.00 15.09 Investment Division 2013 828 60.30 49,935 0.48 0.00 33.10 2012 3,389 45.30 153,545 1.05 0.00 11.11 2011 3,306 40.77 134,780 0.87 0.00 (5.64) 2010 2,302 43.21 99,478 1.08 0.00 18.22 Putnam VT International 2014 239 24.36 5,820 1.40 0.00 (9.49) Value Investment Division 2013 239 26.91 6,428 -- 0.00 22.21 (Commenced 4/28/2008 and began transactions in 2013)
223 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONCLUDED) 8. FINANCIAL HIGHLIGHTS -- (CONCLUDED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------- ------------------------------------------------ UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ------------- ----------- ------------- ---------------- --------------- Royce Micro-Cap 2014 417 20.01 8,336 -- 0.00 (3.58) Investment Division 2013 374 20.76 7,757 0.01 0.00 20.99 (Commenced 11/10/2008 2012 21,685 17.16 372,006 -- 0.00 7.60 and began transactions 2011 19,473 15.94 310,463 2.46 0.00 (12.10) in 2010) 2010 19,226 18.14 348,709 3.02 0.00 29.96 Royce Small-Cap Investment 2014 2,265 22.68 51,371 0.01 0.00 3.24 Division 2013 31,356 21.97 688,929 1.08 0.00 34.75 2012 33,234 16.30 541,872 0.09 0.00 12.50 2011 52,075 14.49 754,742 0.36 0.00 (3.28) 2010 26,235 14.99 393,142 0.14 0.00 20.52 UIF Emerging Markets Debt 2014 23,590 33.60 792,559 6.39 0.00 2.93 Investment Division 2013 35,538 32.64 1,160,019 4.27 0.00 (8.75) 2012 33,059 35.77 1,182,598 2.41 0.00 17.96 2011 13,883 30.33 420,998 3.50 0.00 7.03 2010 259 28.33 7,343 4.24 0.00 9.74 UIF Emerging Markets Equity 2014 150,699 14.08 2,122,051 0.29 0.00 (4.49) Investment Division 2013 83,866 14.74 1,236,458 1.23 0.00 (1.02) 2012 69,412 14.90 1,033,944 -- 0.00 19.95 2011 43,435 12.42 539,388 0.35 0.00 (18.22) 2010 13,018 15.18 197,669 0.57 0.00 19.02 Wells Fargo VT Total Return 2014 59,676 17.01 1,015,053 1.33 0.00 5.59 Bond Investment Division 2013 16,006 16.11 257,839 1.23 0.00 (1.45) 2012 29,620 16.51 489,060 1.38 0.00 6.11 2011 8,689 15.56 135,214 2.74 0.00 8.33 2010 75,281 14.37 1,081,415 3.35 0.00 7.04
1 These amounts represent the dividends, excluding distributions of capital gains, received by the Investment Division from the underlying fund, portfolio, or series, net of management fees assessed by the fund manager, divided by the average net assets, regardless of share class, if any. These ratios exclude those expenses, such as mortality and expense risk charges, that are assessed against policy owner accounts either through reductions in the unit values or the redemption of units. The investment income ratio is calculated for each period indicated or from the effective date through the end of the reporting period. The recognition of investment income by the Investment Division is affected by the timing of the declaration of dividends by the underlying fund, portfolio, or series, in which the Investment Division invests. The investment income ratio is calculated as a weighted average ratio since the Investment Division may invest in two or more share classes, if any, within the underlying fund, portfolio, or series of the Trusts which may have unique investment income ratios. 2 These amounts represent annualized policy expenses of each of the applicable Investment Divisions, consisting primarily of mortality and expense risk charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to policy owner accounts through the redemption of units and expenses of the underlying fund, portfolio, or series have been excluded. 3 These amounts represent the total return for the period indicated, including changes in the value of the underlying fund, portfolio, or series, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. The total return is presented as a range of minimum to maximum returns, based on the minimum and maximum returns within each product grouping of the applicable Investment Division. 224 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Item 8. Financial Statements and Supplementary Data Index to Consolidated Financial Statements, Notes and Schedules
Page ---- Report of Independent Registered Public Accounting Firm.............................................. 2 Financial Statements at December 31, 2014 and 2013 and for the Years Ended December 31, 2014, 2013 and 2012: Consolidated Balance Sheets......................................................................... 3 Consolidated Statements of Operations............................................................... 4 Consolidated Statements of Comprehensive Income (Loss).............................................. 5 Consolidated Statements of Equity................................................................... 6 Consolidated Statements of Cash Flows............................................................... 7 Notes to the Consolidated Financial Statements...................................................... 9 Note 1 -- Business, Basis of Presentation and Summary of Significant Accounting Policies........ 9 Note 2 -- Segment Information................................................................... 30 Note 3 -- Dispositions.......................................................................... 36 Note 4 -- Insurance............................................................................. 36 Note 5 -- Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles... 44 Note 6 -- Reinsurance........................................................................... 47 Note 7 -- Closed Block.......................................................................... 55 Note 8 -- Investments........................................................................... 57 Note 9 -- Derivatives........................................................................... 82 Note 10 -- Fair Value........................................................................... 96 Note 11 -- Goodwill............................................................................. 126 Note 12 -- Long-term and Short-term Debt........................................................ 128 Note 13 -- Equity............................................................................... 131 Note 14 -- Other Expenses....................................................................... 137 Note 15 -- Employee Benefit Plans............................................................... 138 Note 16 -- Income Tax........................................................................... 152 Note 17 -- Contingencies, Commitments and Guarantees............................................ 156 Note 18 -- Quarterly Results of Operations (Unaudited).......................................... 165 Note 19 -- Related Party Transactions........................................................... 166 Financial Statement Schedules at December 31, 2014 and 2013 and for the Years Ended December 31, 2014, 2013 and 2012: Schedule I -- Consolidated Summary of Investments -- Other Than Investments in Related Parties...... 167 Schedule III -- Consolidated Supplementary Insurance Information.................................... 168 Schedule IV -- Consolidated Reinsurance............................................................. 170
1 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholder of Metropolitan Life Insurance Company: We have audited the accompanying consolidated balance sheets of Metropolitan Life Insurance Company and subsidiaries (the "Company") as of December 31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows for each of the three years in the period ended December 31, 2014. Our audits also included the financial statement schedules listed in the Index to Consolidated Financial Statements, Notes and Schedules. These consolidated financial statements and financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on the consolidated financial statements and financial statement schedules 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 consolidated financial statements are free of material misstatement. The Company 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 Company'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 consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Metropolitan Life Insurance Company and subsidiaries as of December 31, 2014 and 2013, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2014, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein. /s/ DELOITTE & TOUCHE LLP New York, New York March 27, 2015 2 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Balance Sheets December 31, 2014 and 2013 (In millions, except share and per share data)
2014 2013 ----------- ----------- Assets Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $173,604 and $165,371, respectively; includes $160 and $157, respectively, relating to variable interest entities)............................................ $ 188,911 $ 173,746 Equity securities available-for-sale, at estimated fair value (cost: $1,926 and $1,813, respectively)... 2,065 1,892 Trading and fair value option securities, at estimated fair value (includes $654 and $662, respectively, of actively traded securities; and $15 and $23, respectively, relating to variable interest entities)................................... 705 723 Mortgage loans (net of valuation allowances of $258 and $272, respectively; includes $308 and $338, respectively, under the fair value option)........... 49,059 46,024 Policy loans........................................... 8,491 8,421 Real estate and real estate joint ventures (includes $8 and $1,141, respectively, relating to variable interest entities; includes $78 and $40, respectively, of real estate held-for-sale).......... 7,874 7,798 Other limited partnership interests (includes $34 and $53, respectively, relating to variable interest entities)............................................ 4,926 4,716 Short-term investments, principally at estimated fair value................................................ 4,474 5,962 Other invested assets (includes $56 and $78, respectively, relating to variable interest entities)............................................ 14,209 10,589 ----------- ----------- Total investments.................................... 280,714 259,871 Cash and cash equivalents, principally at estimated fair value (includes $2 and $21, respectively, relating to variable interest entities)................ 1,993 1,098 Accrued investment income (includes $3 and $2, respectively, relating to variable interest entities).. 2,293 2,249 Premiums, reinsurance and other receivables (includes $2 and $7, respectively, relating to variable interest entities)..................................... 23,439 23,637 Deferred policy acquisition costs and value of business acquired...................................... 5,975 6,416 Other assets (includes $4 and $24, respectively, relating to variable interest entities)................ 4,469 4,716 Separate account assets................................. 139,335 134,796 ----------- ----------- Total assets......................................... $ 458,218 $ 432,783 =========== =========== Liabilities and Equity Liabilities Future policy benefits.................................. $ 117,402 $ 111,963 Policyholder account balances........................... 95,902 92,498 Other policy-related balances........................... 5,840 5,671 Policyholder dividends payable.......................... 615 601 Policyholder dividend obligation........................ 3,155 1,771 Payables for collateral under securities loaned and other transactions..................................... 24,167 21,096 Short-term debt......................................... 100 175 Long-term debt (includes $91 and $520, respectively, at estimated fair value, relating to variable interest entities)..................................... 2,027 2,828 Current income tax payable.............................. 44 365 Deferred income tax liability (includes $0 and $1, respectively, at estimated fair value, relating to variable interest entities)............................ 3,835 1,785 Other liabilities (includes $17 and $31, respectively, relating to variable interest entities)................ 33,447 32,180 Separate account liabilities............................ 139,335 134,796 ----------- ----------- Total liabilities.................................... 425,869 405,729 ----------- ----------- Contingencies, Commitments and Guarantees (Note 17) Redeemable noncontrolling interests..................... -- 774 ----------- ----------- Equity Metropolitan Life Insurance Company stockholder's equity: Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 494,466,664 shares issued and outstanding............................... 5 5 Additional paid-in capital............................. 14,448 14,515 Retained earnings...................................... 12,470 9,352 Accumulated other comprehensive income (loss).......... 5,034 2,158 ----------- ----------- Total Metropolitan Life Insurance Company stockholder's equity................................ 31,957 26,030 Noncontrolling interests................................ 392 250 ----------- ----------- Total equity....................................... 32,349 26,280 ----------- ----------- Total liabilities and equity....................... $ 458,218 $ 432,783 =========== ===========
See accompanying notes to the consolidated financial statements. 3 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Statements of Operations For the Years Ended December 31, 2014, 2013 and 2012 (In millions)
2014 2013 2012 ---------- ---------- ---------- Revenues Premiums............................................................. $ 21,384 $ 20,475 $ 19,880 Universal life and investment-type product policy fees............... 2,466 2,363 2,239 Net investment income................................................ 11,893 11,785 11,852 Other revenues....................................................... 1,808 1,699 1,730 Net investment gains (losses): Other-than-temporary impairments on fixed maturity securities....... (16) (81) (214) Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss).................. (10) (47) 22 Other net investment gains (losses)................................. 169 176 (138) ---------- ---------- ---------- Total net investment gains (losses)............................... 143 48 (330) Net derivative gains (losses)....................................... 1,037 (1,070) 675 ---------- ---------- ---------- Total revenues.................................................. 38,731 35,300 36,046 ---------- ---------- ---------- Expenses Policyholder benefits and claims..................................... 23,855 23,032 22,269 Interest credited to policyholder account balances................... 2,174 2,253 2,390 Policyholder dividends............................................... 1,240 1,205 1,295 Other expenses....................................................... 6,071 5,988 6,394 ---------- ---------- ---------- Total expenses.................................................. 33,340 32,478 32,348 ---------- ---------- ---------- Income (loss) from continuing operations before provision for income tax................................................................ 5,391 2,822 3,698 Provision for income tax expense (benefit)........................... 1,532 681 1,055 ---------- ---------- ---------- Income (loss) from continuing operations, net of income tax.......... 3,859 2,141 2,643 Income (loss) from discontinued operations, net of income tax........ (3) 1 40 ---------- ---------- ---------- Net income (loss).................................................... 3,856 2,142 2,683 Less: Net income (loss) attributable to noncontrolling interests..... (5) (7) 2 ---------- ---------- ---------- Net income (loss) attributable to Metropolitan Life Insurance Company............................................................ $ 3,861 $ 2,149 $ 2,681 ========== ========== ==========
See accompanying notes to the consolidated financial statements. 4 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Statements of Comprehensive Income (Loss) For the Years Ended December 31, 2014, 2013 and 2012 (In millions)
2014 2013 2012 --------- --------- --------- Net income (loss).................................................... $ 3,856 $ 2,142 $ 2,683 Other comprehensive income (loss): Unrealized investment gains (losses), net of related offsets........ 4,165 (3,337) 2,502 Unrealized gains (losses) on derivatives............................ 1,288 (691) (241) Foreign currency translation adjustments............................ (44) 22 (30) Defined benefit plans adjustment.................................... (1,001) 1,191 (766) --------- --------- --------- Other comprehensive income (loss), before income tax................. 4,408 (2,815) 1,465 Income tax (expense) benefit related to items of other comprehensive income (loss)...................................................... (1,532) 965 (511) --------- --------- --------- Other comprehensive income (loss), net of income tax................. 2,876 (1,850) 954 --------- --------- --------- Comprehensive income (loss).......................................... 6,732 292 3,637 Less: Comprehensive income (loss) attributable to noncontrolling interest, net of income tax........................................ (5) (7) 2 --------- --------- --------- Comprehensive income (loss) attributable to Metropolitan Life Insurance Company.................................................. $ 6,737 $ 299 $ 3,635 ========= ========= =========
See accompanying notes to the consolidated financial statements. 5 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Statements of Equity For the Years Ended December 31, 2014, 2013 and 2012 (In millions)
Total Metropolitan Accumulated Life Insurance Additional Other Company Common Paid-in Retained Comprehensive Stockholder's Noncontrolling Total Stock Capital Earnings Income (Loss) Equity Interests Equity ------ ---------- --------- ------------- -------------- -------------- --------- Balance at December 31, 2011... $ 5 $ 14,506 $ 6,973 $ 3,054 $ 24,538 $ 182 $ 24,720 Capital contributions from MetLife, Inc. (Note 13)....... 3 3 3 Excess tax benefits related to stock-based compensation...... 1 1 1 Dividends on common stock...... (1,023) (1,023) (1,023) Change in equity of noncontrolling interests...... -- 108 108 Net income (loss).............. 2,681 2,681 2 2,683 Other comprehensive income (loss), net of income tax..... 954 954 954 ------ --------- --------- ----------- ---------- ---------- --------- Balance at December 31, 2012... 5 14,510 8,631 4,008 27,154 292 27,446 ====== ========= ========= =========== ========== ========== ========= Capital contributions from MetLife, Inc. (Note 13)....... 3 3 3 Excess tax benefits related to stock-based compensation...... 2 2 2 Dividends on common stock...... (1,428) (1,428) (1,428) Change in equity of noncontrolling interests...... -- (35) (35) Net income (loss).............. 2,149 2,149 (7) 2,142 Other comprehensive income (loss), net of income tax..... (1,850) (1,850) (1,850) ------ --------- --------- ----------- ---------- ---------- --------- Balance at December 31, 2013... 5 14,515 9,352 2,158 26,030 250 26,280 ====== ========= ========= =========== ========== ========== ========= Capital contributions from MetLife, Inc. (Note 13)....... 4 4 4 Returns of capital............. (76) (76) (76) Excess tax benefits related to stock-based compensation...... 5 5 5 Dividends on common stock...... (708) (708) (708) Dividend of subsidiary (Note 3)...................... (35) (35) (35) Change in equity of noncontrolling interests...... -- 147 147 Net income (loss).............. 3,861 3,861 (5) 3,856 Other comprehensive income (loss), net of income tax..... 2,876 2,876 -- 2,876 ------ --------- --------- ----------- ---------- ---------- --------- Balance at December 31, 2014... $ 5 $ 14,448 $ 12,470 $ 5,034 $ 31,957 $ 392 $ 32,349 ====== ========= ========= =========== ========== ========== =========
See accompanying notes to the consolidated financial statements. 6 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Statements of Cash Flows For the Years Ended December 31, 2014, 2013 and 2012 (In millions)
2014 2013 2012 ----------- ----------- ----------- Cash flows from operating activities Net income (loss)...................................................................... $ 3,856 $ 2,142 $ 2,683 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization expenses............................................... 460 429 416 Amortization of premiums and accretion of discounts associated with investments, net. (664) (738) (698) (Gains) losses on investments and from sales of businesses, net...................... (138) (49) 272 (Gains) losses on derivatives, net................................................... (902) 1,059 (561) (Income) loss from equity method investments, net of dividends or distributions...... 374 195 42 Interest credited to policyholder account balances................................... 2,174 2,253 2,390 Universal life and investment-type product policy fees............................... (2,466) (2,363) (2,239) Change in trading and fair value option securities................................... 2 25 (100) Change in accrued investment income.................................................. 242 108 22 Change in premiums, reinsurance and other receivables................................ 711 (368) (422) Change in deferred policy acquisition costs and value of business acquired, net...... 271 (82) 359 Change in income tax................................................................. 229 334 (28) Change in other assets............................................................... 465 471 361 Change in insurance-related liabilities and policy-related balances.................. 2,672 3,032 1,915 Change in other liabilities.......................................................... (1,086) (381) 170 Other, net........................................................................... 1 (7) (46) ----------- ----------- ----------- Net cash provided by (used in) operating activities.................................... 6,201 6,060 4,536 ----------- ----------- ----------- Cash flows from investing activities Sales, maturities and repayments of: Fixed maturity securities............................................................ 63,068 71,396 52,889 Equity securities.................................................................... 186 206 245 Mortgage loans....................................................................... 11,605 10,655 8,668 Real estate and real estate joint ventures........................................... 976 87 721 Other limited partnership interests.................................................. 375 449 585 Purchases of: Fixed maturity securities............................................................ (69,256) (70,760) (62,136) Equity securities.................................................................... (173) (461) (393) Mortgage loans....................................................................... (14,769) (12,032) (9,448) Real estate and real estate joint ventures........................................... (1,876) (1,427) (1,447) Other limited partnership interests.................................................. (773) (675) (660) Cash received in connection with freestanding derivatives.............................. 740 560 634 Cash paid in connection with freestanding derivatives.................................. (1,050) (1,171) (443) Dividend of subsidiary................................................................. (49) -- -- Receipts on loans to affiliates........................................................ 75 -- -- Issuances of loans to affiliates....................................................... (100) -- -- Purchases of loans to affiliates....................................................... (437) -- -- Net change in policy loans............................................................. (70) (57) (50) Net change in short-term investments................................................... 1,472 900 (567) Net change in other invested assets.................................................... (254) (460) (791) Net change in property, equipment and leasehold improvements........................... (140) (76) (71) Other, net............................................................................. 17 -- -- ----------- ----------- ----------- Net cash provided by (used in) investing activities.................................... $ (10,433) $ (2,866) $ (12,264) ----------- ----------- -----------
See accompanying notes to the consolidated financial statements. 7 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Statements of Cash Flows -- (Continued) For the Years Ended December 31, 2014, 2013 and 2012 (In millions)
2014 2013 2012 ----------- ----------- ----------- Cash flows from financing activities Policyholder account balances: Deposits........................................................................... $ 54,902 $ 50,018 $ 61,647 Withdrawals........................................................................ (51,210) (52,020) (56,373) Net change in payables for collateral under securities loaned and other transactions. 3,071 (1,365) 2,181 Net change in short-term debt........................................................ (320) 75 (1) Long-term debt issued................................................................ 4 481 79 Long-term debt repaid................................................................ (390) (27) (81) Cash received in connection with redeemable noncontrolling interests................. -- 774 -- Dividends on common stock............................................................ (708) (1,428) (1,023) Other, net........................................................................... (222) (5) 611 ----------- ----------- ----------- Net cash provided by (used in) financing activities.................................. 5,127 (3,497) 7,040 ----------- ----------- ----------- Change in cash and cash equivalents.................................................. 895 (303) (688) Cash and cash equivalents, beginning of year......................................... 1,098 1,401 2,089 ----------- ----------- ----------- Cash and cash equivalents, end of year............................................... $ 1,993 $ 1,098 $ 1,401 =========== =========== =========== Supplemental disclosures of cash flow information Net cash paid (received) for: Interest........................................................................... $ 150 $ 152 $ 151 =========== =========== =========== Income tax......................................................................... $ 1,304 $ 822 $ 842 =========== =========== =========== Non-cash transactions: Capital contributions from MetLife, Inc............................................ $ 4 $ 3 $ 3 =========== =========== =========== Real estate and real estate joint ventures acquired in satisfaction of debt........ $ 3 $ 18 $ 264 =========== =========== =========== Deconsolidation of MetLife Core Property Fund (see Note 8): Reduction of redeemable noncontrolling interests.................................. $ 774 $ -- $ -- =========== =========== =========== Reduction of long-term debt....................................................... $ 413 $ -- $ -- =========== =========== =========== Reduction of real estate and real estate joint ventures........................... $ 1,132 $ -- $ -- =========== =========== =========== Issuance of short-term debt........................................................ $ 245 $ -- $ -- =========== =========== =========== Returns of capital................................................................. $ 76 $ -- $ -- =========== =========== =========== Disposal of subsidiary: Assets disposed................................................................... $ 69 $ -- $ -- Liabilities disposed.............................................................. (34) -- -- ----------- ----------- ----------- Net assets disposed............................................................... 35 -- -- Cash disposed..................................................................... (49) -- -- Dividend of interests in subsidiary............................................... 14 -- -- ----------- ----------- ----------- Loss on dividend of interests in subsidiary....................................... $ -- $ -- $ -- =========== =========== ===========
See accompanying notes to the consolidated financial statements. 8 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business Metropolitan Life Insurance Company and its subsidiaries (collectively, "MLIC" or the "Company") is a provider of life insurance, annuities, employee benefits and asset management and is organized into three segments: Retail; Group, Voluntary & Worksite Benefits; and Corporate Benefit Funding. Metropolitan Life Insurance Company is a wholly-owned subsidiary of MetLife, Inc. Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company's business and operations. Actual results could differ from estimates. Consolidation The accompanying consolidated financial statements include the accounts of Metropolitan Life Insurance Company and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities ("VIEs") for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. Discontinued Operations The results of operations of a component of the Company that has either been disposed of or is classified as held-for-sale are reported in discontinued operations if certain criteria are met. Effective January 1, 2014, the Company early adopted new guidance regarding reporting of discontinued operations for disposals or classifications as held-for-sale that have not been previously reported in the consolidated financial statements. A disposal of a component is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results. Separate Accounts Separate accounts are established in conformity with insurance laws and are generally not chargeable with liabilities that arise from any other business of the Company. Separate account assets are subject to general account claims only to the extent the value of such assets exceeds the separate account liabilities. The Company reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separate accounts if: . such separate accounts are legally recognized; . assets supporting the contract liabilities are legally insulated from the Company's general account liabilities; 9 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) . investments are directed by the contractholder; and . all investment performance, net of contract fees and assessments, is passed through to the contractholder. The Company reports separate account assets at their fair value, which is based on the estimated fair values of the underlying assets comprising the individual separate account portfolios. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line in the statements of operations. Separate accounts credited with a contractual investment return are combined on a line-by-line basis with the Company's general account assets, liabilities, revenues and expenses and the accounting for these investments is consistent with the methodologies described herein for similar financial instruments held within the general account. The Company's revenues reflect fees charged to the separate accounts, including mortality charges, risk charges, policy administration fees, investment management fees and surrender charges. Such fees are included in universal life and investment-type product policy fees in the statements of operations. Reclassifications Amounts in the prior years' consolidated financial statements have been reclassified to conform with the 2014 presentation. Certain derivatives (gains) losses were previously reported in: (i) (gains) losses on investments and from sales of businesses, net; and (ii) other, net and were reclassified to (gains) losses on derivatives, net. The following table presents such reclassifications, all within cash flows from operating activities, in the consolidated statements of cash flows:
Years Ended December 31, ----------------------- 2013 2012 - ------- ------- (In millions) (Gains) losses on investments and from sales of businesses, net. $(1,161) $ 460 Other, net...................................................... $ 102 $ 101 (Gains) losses on derivatives, net.............................. $ 1,059 $(561)
Additionally, certain amounts in the prior years' footnotes have been reclassified to conform with the current year presentation as discussed throughout the Notes to the Consolidated Financial Statements. 10 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Summary of Significant Accounting Policies The following are the Company's significant accounting policies with references to notes providing additional information on such policies and critical accounting estimates relating to such policies. Accounting Policy Note ----------------------------------------------------------------------------------------- Insurance 4 ----------------------------------------------------------------------------------------- Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles 5 ----------------------------------------------------------------------------------------- Reinsurance 6 ----------------------------------------------------------------------------------------- Investments 8 ----------------------------------------------------------------------------------------- Derivatives 9 ----------------------------------------------------------------------------------------- Fair Value 10 ----------------------------------------------------------------------------------------- Goodwill 11 ----------------------------------------------------------------------------------------- Employee Benefit Plans 15 ----------------------------------------------------------------------------------------- Income Tax 16 ----------------------------------------------------------------------------------------- Litigation Contingencies 17
Insurance Future Policy Benefit Liabilities and Policyholder Account Balances The Company establishes liabilities for amounts payable under insurance policies. Generally, amounts are payable over an extended period of time and related liabilities are calculated as the present value of future expected benefits to be paid reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions in accordance with GAAP and applicable actuarial standards. Principal assumptions used in the establishment of liabilities for future policy benefits are mortality, morbidity, policy lapse, renewal, retirement, disability incidence, disability terminations, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. These assumptions are established at the time the policy is issued and are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a block of business basis. For long duration insurance contracts, assumptions such as mortality, morbidity and interest rates are "locked in" upon the issuance of new business. However, significant adverse changes in experience on such contracts may require the establishment of premium deficiency reserves. Such reserves are determined based on the then current assumptions and do not include a provision for adverse deviation. Premium deficiency reserves may also be established for short duration contracts to provide for expected future losses. These reserves are based on actuarial estimates of the amount of loss inherent in that period, including losses incurred for which claims have not been reported. The provisions for unreported claims are calculated using studies that measure the historical length of time between the incurred date of a claim and its eventual reporting to the Company. Anticipated investment income is considered in the calculation of premium deficiency losses for short duration contracts. 11 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Liabilities for universal and variable life secondary guarantees and paid-up guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the accumulation period based on total expected assessments. The assumptions used in estimating the secondary guarantee and paid-up guarantee liabilities are consistent with those used for amortizing deferred policy acquisition costs ("DAC"), and are thus subject to the same variability and risk as further discussed herein. The assumptions of investment performance and volatility for variable products are consistent with historical experience of appropriate underlying equity indices, such as the Standard & Poor's Ratings Services ("S&P") 500 Index. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The Company regularly reviews its estimates of liabilities for future policy benefits and compares them with its actual experience. Differences result in changes to the liability balances with related charges or credits to benefit expenses in the period in which the changes occur. Policyholder account balances ("PABs") relate to contract or contract features where the Company has no significant insurance risk. The Company issues directly and assumes through reinsurance certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (i.e., the benefit base) less withdrawals. These guarantees are accounted for as insurance liabilities or as embedded derivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits ("GMDBs"), the portion of guaranteed minimum income benefits ("GMIBs") that require annuitization, and the life-contingent portion of guaranteed minimum withdrawal benefits ("GMWBs"). Guarantees accounted for as embedded derivatives in PABs include the non life-contingent portion of GMWBs, guaranteed minimum accumulation benefits ("GMABs") and the portion of GMIBs that do not require annuitization. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent "excess" fees and are reported in universal life and investment-type product policy fees. Other Policy-Related Balances Other policy-related balances include policy and contract claims, unearned revenue liabilities, premiums received in advance, policyholder dividends due and unpaid and policyholder dividends left on deposit. The liability for policy and contract claims generally relates to incurred but not reported death, disability, long-term care ("LTC") and dental claims, as well as claims which have been reported but not yet settled. The 12 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) liability for these claims is based on the Company's estimated ultimate cost of settling all claims. The Company derives estimates for the development of incurred but not reported claims principally from analyses of historical patterns of claims by business line. The methods used to determine these estimates are continually reviewed. Adjustments resulting from this continuous review process and differences between estimates and payments for claims are recognized in policyholder benefits and claims expense in the period in which the estimates are changed or payments are made. The unearned revenue liability relates to universal life-type and investment-type products and represents policy charges for services to be provided in future periods. The charges are deferred as unearned revenue and amortized using the product's estimated gross profits and margins, similar to DAC as discussed further herein. Such amortization is recorded in universal life and investment-type product policy fees. The Company accounts for the prepayment of premiums on its individual life, group life and health contracts as premiums received in advance and applies the cash received to premiums when due. Recognition of Insurance Revenues and Deposits Premiums related to traditional life and annuity policies with life contingencies are recognized as revenues when due from policyholders. Policyholder benefits and expenses are provided to recognize profits over the estimated lives of the insurance policies. When premiums are due over a significantly shorter period than the period over which benefits are provided, any excess profit is deferred and recognized into earnings in a constant relationship to insurance in-force or, for annuities, the amount of expected future policy benefit payments. Premiums related to non-medical health and disability contracts are recognized on a pro rata basis over the applicable contract term. Deposits related to universal life-type and investment-type products are credited to PABs. Revenues from such contracts consist of fees for mortality, policy administration and surrender charges and are recorded in universal life and investment-type product policy fees in the period in which services are provided. Amounts that are charged to earnings include interest credited and benefit claims incurred in excess of related PABs. Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: . incremental direct costs of contract acquisition, such as commissions; . the portion of an employee's total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and 13 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) . other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired ("VOBA") is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA are amortized as follows: Products: In proportion to the following over estimated lives of the contracts: ------------------------------------------------------------------------------ . Nonparticipating and Historic actual and expected future non-dividend-paying traditional gross premiums. contracts: . Term insurance . Nonparticipating whole life insurance . Traditional group life insurance . Non-medical health insurance ------------------------------------------------------------------------------ . Participating, dividend-paying Actual and expected future gross traditional contracts margins. ------------------------------------------------------------------------------ . Fixed and variable universal life Actual and expected future gross contracts profits. . Fixed and variable deferred annuity contracts See Note 5 for additional information on DAC and VOBA amortization. The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated in the financial statements for reporting purposes. The Company generally has two different types of sales inducements which are included in other assets: (i) the policyholder receives a bonus whereby the policyholder's initial account balance is increased by an amount equal to a specified percentage of the customer's deposit; and (ii) the policyholder receives a higher interest rate using a dollar cost averaging method than would have been received based on the normal general account interest rate credited. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of sales inducements is included in policyholder benefits and claims. Each year, or more frequently if circumstances indicate a potential recoverability issue exists, the Company reviews deferred sales inducements ("DSI") to determine the recoverability of the asset. Value of distribution agreements acquired ("VODA") is reported in other assets and represents the present value of expected future profits associated with the expected future business derived from the distribution 14 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) agreements acquired as part of a business combination. Value of customer relationships acquired ("VOCRA") is also reported in other assets and represents the present value of the expected future profits associated with the expected future business acquired through existing customers of the acquired company or business. The VODA and VOCRA associated with past business combinations are amortized over useful lives ranging from 10 to 30 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possible impairment exists, the Company reviews VODA and VOCRA to determine whether the asset is impaired. Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company's obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC when there is a gain at inception on the ceding entity and to other liabilities when there is a loss at inception. The net cost of reinsurance is recognized as a component of other expenses when there is a gain at inception and as policyholder benefits and claims when there is a loss and is subsequently amortized on a basis consistent with the methodology used for amortizing DAC related to the underlying reinsured contracts. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as ceded (assumed) premiums; and ceded (assumed) premiums, reinsurance and other receivables (future policy benefits) are established. For prospective reinsurance of short-duration contracts that meet the criteria for reinsurance accounting, amounts paid (received) are recorded as ceded (assumed) premiums and ceded (assumed) unearned premiums. Unearned premiums are reflected as a component of premiums, reinsurance and other receivables (future policy benefits). Such amounts are amortized through earned premiums over the remaining contract period in proportion to the amount of insurance protection provided. For retroactive reinsurance of short-duration contracts that meet the criteria of reinsurance accounting, amounts paid (received) in excess of the related insurance liabilities ceded (assumed) are recognized immediately as a loss and are reported in the appropriate line item within the statement of operations. Any gain on such retroactive agreement is deferred and is amortized as part of DAC, primarily using the recovery method. Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. 15 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. The Company withholds the funds rather than transferring the underlying investments and, as a result, records funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. Premiums, fees and policyholder benefits and claims include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. Certain assumed GMWB, GMAB and GMIB are also accounted for as embedded derivatives with changes in estimated fair value reported in net derivative gains (losses). Investments Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. Fixed Maturity and Equity Securities The majority of the Company's fixed maturity and equity securities are classified as available-for-sale ("AFS") and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) ("OCI"), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. Dividends on equity securities are recognized when declared. The Company periodically evaluates fixed maturity and equity securities for impairment. The assessment of whether impairments have occurred is based on management's case-by-case evaluation of the underlying 16 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) reasons for the decline in estimated fair value, as well as an analysis of the gross unrealized losses by severity and/or age as described in Note 8 "-- Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities." For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment ("OTTI") is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security's amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings ("credit loss"). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors ("noncredit loss") is recorded in OCI. With respect to equity securities, the Company considers in its OTTI analysis its intent and ability to hold a particular equity security for a period of time sufficient to allow for the recovery of its estimated fair value to an amount equal to or greater than cost. If a sale decision is made for an equity security and recovery to an amount at least equal to cost prior to the sale is not expected, the security will be deemed to be other-than-temporarily impaired in the period that the sale decision was made and an OTTI loss will be recorded in earnings. The OTTI loss recognized is the entire difference between the security's cost and its estimated fair value. Trading and Fair Value Option Securities Trading and fair value option securities are stated at estimated fair value and include investments that are actively purchased and sold ("Actively Traded Securities") and investments for which the fair value option ("FVO") has been elected ("FVO Securities"). Actively Traded Securities principally include fixed maturity securities and short sale agreement liabilities, which are included in other liabilities. Changes in estimated fair value of these securities are included in net investment income, except for certain securities included in FVO Securities where changes are included in net investment gains (losses). Mortgage Loans The Company disaggregates its mortgage loan investments into three portfolio segments: commercial, agricultural, and residential. The accounting policies that are applicable to all portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 8. Mortgage Loans Held-For-Investment Mortgage loans held-for-investment are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. 17 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Also included in mortgage loans held-for-investment are residential mortgage loans for which the FVO was elected. These mortgage loans are stated at estimated fair value. Changes in estimated fair value are recognized in net investment income. Mortgage Loans Held-For-Sale Mortgage loans held-for-sale that were previously designated as held-for-investment and mortgage loans originated with the intent to sell for which FVO was not elected, are stated at the lower of amortized cost or estimated fair value. Policy Loans Policy loans are stated at unpaid principal balances. Interest income is recorded as earned using the contractual interest rate. Generally, accrued interest is capitalized on the policy's anniversary date. Valuation allowances are not established for policy loans, as they are fully collateralized by the cash surrender value of the underlying insurance policies. Any unpaid principal and accrued interest is deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy. Real Estate Real estate held-for-investment is stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful life of the asset (typically 20 to 55 years). Rental income is recognized on a straight-line basis over the term of the respective leases. The Company periodically reviews its real estate held-for-investment for impairment and tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. Properties whose carrying values are greater than their undiscounted cash flows are written down to their estimated fair value, which is generally computed using the present value of expected future cash flows discounted at a rate commensurate with the underlying risks. Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition for a reasonable price in comparison to its estimated fair value is classified as held-for-sale. Real estate held-for-sale is stated at the lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated. Real Estate Joint Ventures and Other Limited Partnership Interests The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests ("investees") when it has more than a minor ownership interest or more than a minor influence over the investee's operations, but does not have a controlling financial interest. The Company generally recognizes its share of the investee's earnings on a three-month lag in instances where the investee's financial information is not sufficiently timely or when the investee's reporting period differs from the Company's reporting period. The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee's operations. The Company recognizes distributions on cost method investments as earned or 18 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) received. Because of the nature and structure of these cost method investments, they do not meet the characteristics of an equity security in accordance with applicable accounting standards. The Company routinely evaluates its equity method and cost method investments for impairment. For equity method investees, the Company considers financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. The Company considers its cost method investments for impairment when the carrying value of such investments exceeds the net asset value ("NAV"). The Company takes into consideration the severity and duration of this excess when determining whether the cost method investment is impaired. Short-term Investments Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. Short-term investments also include investments in affiliated money market pools. Other Invested Assets Other invested assets consist principally of the following: . Freestanding derivatives with positive estimated fair values which are described in "-- Derivatives" below. . Tax credit and renewable energy partnerships which derive a significant source of investment return in the form of income tax credits or other tax incentives. Where tax credits are guaranteed by a creditworthy third party, the investment is accounted for under the effective yield method. Otherwise, the investment is accounted for under the equity method. . Loans to affiliates which are stated at unpaid principal balance and adjusted for any unamortized premium or discount. . Leveraged leases which are recorded net of non-recourse debt. Income is recognized by applying the leveraged lease's estimated rate of return to the net investment in the lease. The Company regularly reviews residual values for impairment. . Direct financing leases gross investment is equal to the minimum lease payments plus the unguaranteed residual value. Income is recorded by applying the pre-tax internal rate of return to the investment balance. The Company regularly reviews lease receivables for impairment. . Funds withheld which represent a receivable for amounts contractually withheld by ceding companies in accordance with reinsurance agreements. The Company recognizes interest on funds withheld at rates defined by the terms of the agreement which may be contractually specified or directly related to the underlying investments. . Investments in operating joint ventures that engage in insurance underwriting activities and are accounted for under the equity method. 19 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Securities Lending Program Securities lending transactions, whereby blocks of securities are loaned to third parties, primarily brokerage firms and commercial banks, are treated as financing arrangements and the associated liability is recorded at the amount of cash received. The Company obtains collateral at the inception of the loan, usually cash, in an amount generally equal to 102% of the estimated fair value of the securities loaned, and maintains it at a level greater than or equal to 100% for the duration of the loan. The Company is liable to return to the counterparties the cash collateral received. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, unless the counterparty is in default, and is not reflected in the Company's financial statements. The Company monitors the estimated fair value of the securities loaned on a daily basis and additional collateral is obtained as necessary. Income and expenses associated with securities lending transactions are reported as investment income and investment expense, respectively, within net investment income. Derivatives Freestanding Derivatives Freestanding derivatives are carried in the Company's balance sheets either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: Statement of Operations Presentation: Derivative: ----------------------------------------------------------------------------- Policyholder benefits and claims . Economic hedges of variable annuity guarantees included in future policy benefits ----------------------------------------------------------------------------- Net investment income . Economic hedges of equity method investments in joint ventures . All derivatives held in relation to trading portfolios Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its 20 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: . Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) -- in net derivative gains (losses), consistent with the change in fair value of the hedged item attributable to the designated risk being hedged. . Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) -- effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company's earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported in the statement of operations within interest income or interest expense to match the location of the hedged item. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument's effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried in the balance sheets at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statements of operations when the Company's earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried in the balance sheets at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). 21 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value in the balance sheets, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: . the combined instrument is not accounted for in its entirety at fair value with changes in fair value recorded in earnings; . the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and . a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried in the balance sheets at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent "excess" fees and are reported in universal life and investment-type product policy fees. Fair Value Fair value is defined 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. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of assets and liabilities. 22 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Goodwill Goodwill, which is included in other assets, represents the future economic benefits arising from net assets acquired in a business combination that are not individually identified and recognized. Goodwill is calculated as the excess of cost over the estimated fair value of such net assets acquired, is not amortized, and is tested for impairment based on a fair value approach at least annually or more frequently if events or circumstances indicate that there may be justification for conducting an interim test. The Company performs its annual goodwill impairment testing during the third quarter of each year based upon data as of the close of the second quarter. Goodwill associated with a business acquisition is not tested for impairment during the year the business is acquired unless there is a significant identified impairment event. The impairment test is performed at the reporting unit level, which is the operating segment or a business one level below the operating segment, if discrete financial information is prepared and regularly reviewed by management at that level. For purposes of goodwill impairment testing, if the carrying value of a reporting unit exceeds its estimated fair value, there may be an indication of impairment. In such instances, the implied fair value of the goodwill is determined in the same manner as the amount of goodwill that would be determined in a business combination. The excess of the carrying value of goodwill over the implied fair value of goodwill would be recognized as an impairment and recorded as a charge against net income. On an ongoing basis, the Company evaluates potential triggering events that may affect the estimated fair value of the Company's reporting units to assess whether any goodwill impairment exists. Deteriorating or adverse market conditions for certain reporting units may have an impact on the estimated fair value of these reporting units and could result in future impairments of goodwill. Employee Benefit Plans The Company sponsors and administers various qualified and non-qualified defined benefit pension plans and other postretirement employee benefit plans covering eligible employees and sales representatives who meet specified eligibility requirements of the sponsor and its participating affiliates. A December 31 measurement date is used for all of the Company's defined benefit pension and other postretirement benefit plans. The Company recognizes the funded status of the projected benefit obligation ("PBO") for pension benefits and the accumulated postretirement benefit obligation ("APBO") for other postretirement benefits for each of its plans. The Company recognizes an expense for differences between actual experience and estimates over the average future service period of participants. The actuarial gains (losses), prior service costs and credits not yet included in net periodic benefit costs are charged to accumulated OCI ("AOCI"), net of income tax. The Company also sponsors defined contribution plans for substantially all U.S. employees under which a portion of participant contributions is matched. Applicable matching contributions are made each payroll period. Accordingly, the Company recognizes compensation cost for current matching contributions. As all contributions are transferred currently as earned to the defined contribution plans, no liability for matching contributions is recognized in the balance sheets. 23 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Income Tax Metropolitan Life Insurance Company and its includable subsidiaries join with MetLife, Inc. and its includable subsidiaries in filing a consolidated U.S. life and non-life federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended. Current taxes (and the benefits of tax attributes such as losses) are allocated to Metropolitan Life Insurance Company and its subsidiaries under the consolidated tax return regulations and a tax sharing agreement. Under the consolidated tax return regulations, MetLife, Inc, has elected the "percentage method" (and 100% under such method) of reimbursing companies for tax attributes, e.g., net operating losses. As a result, 100% of tax attributes are reimbursed by MetLife, Inc. to the extent that consolidated federal income tax of the consolidated federal tax return group is reduced in a year by tax attributes. On an annual basis, each of the profitable subsidiaries pays to MetLife, Inc. the federal income tax which it would have paid based upon that year's taxable income. If Metropolitan Life Insurance Company or its includable subsidiaries has current or prior deductions and credits (including but not limited to losses) which reduce the consolidated tax liability of the consolidated federal tax return group, the deductions and credits are characterized as realized (or realizable) by Metropolitan Life Insurance Company and its includable subsidiaries when those tax attributes are realized (or realizable) by the consolidated federal tax return group, even if Metropolitan Life Insurance Company or its includable subsidiaries would not have realized the attributes on a stand-alone basis under a "wait and see" method. The Company's accounting for income taxes represents management's best estimate of various events and transactions. Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. When making such determination, the Company considers many factors, including: . the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; . the jurisdiction in which the deferred tax asset was generated; . the length of time that carryforward can be utilized in the various taxing jurisdiction; . future taxable income exclusive of reversing temporary differences and carryforwards; . future reversals of existing taxable temporary differences; . taxable income in prior carryback years; and . tax planning strategies. The Company may be required to change its provision for income taxes in certain circumstances. Examples of such circumstances include when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, future events, such as changes in tax laws, tax regulations, or interpretations of such laws or 24 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) regulations, could have an impact on the provision for income tax and the effective tax rate. Any such changes could significantly affect the amounts reported in the financial statements in the year these changes occur. The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities and are charged to earnings in the period that such determination is made. The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax. Litigation Contingencies The Company is a party to a number of legal actions and is involved in a number of regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact on the Company's financial position. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Except as otherwise disclosed in Note 17, legal costs are recognized as incurred. On a quarterly and annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected in the Company's financial statements. Other Accounting Policies Redeemable Noncontrolling Interests Redeemable noncontrolling interests associated with certain joint ventures and partially-owned consolidated subsidiaries are reported in the temporary section of the balance sheet. Stock-Based Compensation Stock-based compensation recognized in the Company's consolidated results of operations is allocated from MetLife, Inc. The accounting policies described below represent those that MetLife, Inc. applies in determining such allocated expenses. MetLife, Inc. grants certain employees and directors stock-based compensation awards under various plans that are subject to specific vesting conditions. With the exception of performance shares granted in 2014 and 2013 which are re-measured quarterly, the cost of all stock-based transactions is measured at fair value at grant date and recognized over the period during which a grantee is required to provide services in exchange for the award. Although the terms of MetLife, Inc.'s stock-based plans do not accelerate vesting upon retirement, or the attainment of retirement eligibility, the requisite service period subsequent to attaining such eligibility is considered nonsubstantive. Accordingly, MetLife, Inc. recognizes compensation expense related to stock-based awards over the shorter of the requisite service period or the period to attainment of retirement eligibility. An estimation of future forfeitures of stock-based awards is incorporated into the determination of compensation expense when recognizing expense over the requisite service period. 25 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Cash and Cash Equivalents The Company considers all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at amortized cost, which approximates estimated fair value. Property, Equipment, Leasehold Improvements and Computer Software Property, equipment and leasehold improvements, which are included in other assets, are stated at cost, less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the assets, as appropriate. The estimated life is generally 40 years for company occupied real estate property, from one to 25 years for leasehold improvements, and from three to seven years for all other property and equipment. The cost basis of the property, equipment and leasehold improvements was $1.3 billion and $1.2 billion at December 31, 2014 and 2013, respectively. Accumulated depreciation and amortization of property, equipment and leasehold improvements was $721 million and $667 million at December 31, 2014 and 2013, respectively. Related depreciation and amortization expense was $123 million, $115 million and $121 million for the years ended December 31, 2014, 2013 and 2012, respectively. Computer software, which is included in other assets, is stated at cost, less accumulated amortization. Purchased software costs, as well as certain internal and external costs incurred to develop internal-use computer software during the application development stage, are capitalized. Such costs are amortized generally over a four-year period using the straight-line method. The cost basis of computer software was $1.2 billion and $1.0 billion at December 31, 2014 and 2013, respectively. Accumulated amortization of capitalized software was $882 million and $739 million at December 31, 2014 and 2013, respectively. Related amortization expense was $145 million, $144 million and $143 million for the years ended December 31, 2014, 2013 and 2012, respectively. Other Revenues Other revenues include, in addition to items described elsewhere herein, advisory fees, broker-dealer commissions and fees, administrative service fees, and changes in account value relating to corporate-owned life insurance ("COLI"). Such fees and commissions are recognized in the period in which services are performed. Under certain COLI contracts, if the Company reports certain unlikely adverse results in its financial statements, withdrawals would not be immediately available and would be subject to market value adjustment, which could result in a reduction of the account value. Policyholder Dividends Policyholder dividends are approved annually by Metropolitan Life Insurance Company and its insurance subsidiaries' boards of directors. The aggregate amount of policyholder dividends is related to actual interest, mortality, morbidity and expense experience for the year, as well as management's judgment as to the appropriate level of statutory surplus to be retained by Metropolitan Life Insurance Company and its insurance subsidiaries. 26 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Foreign Currency Assets, liabilities and operations of foreign affiliates and subsidiaries are recorded based on the functional currency of each entity. The determination of the functional currency is made based on the appropriate economic and management indicators. The local currencies of foreign operations are the functional currencies. Assets and liabilities of foreign affiliates and subsidiaries are translated from the functional currency to U.S. dollars at the exchange rates in effect at each year-end and income and expense accounts are translated at the average exchange rates during the year. The resulting translation adjustments are charged or credited directly to OCI, net of applicable taxes. Gains and losses from foreign currency transactions, including the effect of re-measurement of monetary assets and liabilities to the appropriate functional currency, are reported as part of net investment gains (losses) in the period in which they occur. Adoption of New Accounting Pronouncements Effective November 18, 2014, the Company adopted new guidance on when, if ever, the cost of acquiring an entity should be used to establish a new accounting basis ("pushdown") in the acquired entity's separate financial statements. The guidance provides an acquired entity and its subsidiaries with an irrevocable option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. If a reporting entity elects to apply pushdown accounting, its stand-alone financial statements would reflect the acquirer's new basis in the acquired entity's assets and liabilities. The election to apply pushdown accounting should be determined by an acquired entity for each individual change-in-control event in which an acquirer obtains control of the acquired entity; however, an entity that does not elect to apply pushdown accounting in the period of a change-in-control can later elect to retrospectively apply pushdown accounting to the most recent change-in-control transaction as a change in accounting principle. The new guidance did not have a material impact on the financial statements upon adoption. Effective January 1, 2014, the Company adopted new guidance regarding the presentation of an unrecognized tax benefit. The new guidance requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, when the carryforwards are not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position or the applicable tax law does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with the related deferred tax asset. The adoption was prospectively applied and resulted in a reduction to other liabilities and a corresponding increase to deferred income tax liability in the amount of $190 million. Effective January 1, 2014, the Company adopted new guidance on other expenses. The objective of this standard is to address how health insurers should recognize and classify in their income statements fees mandated by the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act. The amendments in this standard specify that the liability for the fee should be estimated and recorded in full once the entity provides qualifying health insurance in the applicable calendar year in which the fee is payable with a corresponding deferred cost that is amortized to expense using the straight-line method of allocation unless another method better allocates the fee over the calendar year that it is payable. In accordance with the adoption of the new accounting pronouncement, on January 1, 2014, the Company recorded $55 million in other liabilities, and a corresponding deferred cost, in other assets. 27 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Effective July 17, 2013, the Company adopted guidance regarding derivatives that permits the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the United States Treasury and London Interbank Offered Rate ("LIBOR"). Also, this new guidance removes the restriction on using different benchmark rates for similar hedges. The new guidance did not have a material impact on the financial statements upon adoption. Effective January 1, 2013, the Company adopted guidance regarding comprehensive income that requires an entity to provide information about the amounts reclassified out of AOCI by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The adoption was prospectively applied and resulted in additional disclosures in Note 13. Effective January 1, 2013, the Company adopted guidance regarding balance sheet offsetting disclosures which requires an entity to disclose information about offsetting and related arrangements for derivatives, including bifurcated embedded derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions, to enable users of its financial statements to understand the effects of those arrangements on its financial position. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The adoption was retrospectively applied and resulted in additional disclosures related to derivatives in Note 9. On January 1, 2012, the Company adopted guidance regarding accounting for DAC, which was retrospectively applied. The guidance specifies that only costs related directly to successful acquisition of new or renewal contracts can be capitalized as DAC; all other acquisition-related costs must be expensed as incurred. As a result, certain sales manager compensation and administrative costs previously capitalized by the Company will no longer be deferred. On January 1, 2012, the Company adopted guidance regarding comprehensive income, which was retrospectively applied, that provides companies with the option to present the total of comprehensive income, components of net income, and the components of OCI either in a single continuous statement of comprehensive income or in two separate but consecutive statements in annual financial statements. The standard eliminates the option to present components of OCI as part of the statement of changes in stockholder's equity. The Company adopted the two-statement approach for annual financial statements. Effective January 1, 2012, the Company adopted guidance on goodwill impairment testing that simplifies how an entity tests goodwill for impairment. This new guidance allows an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether it needs to perform the quantitative two-step goodwill impairment test. Only if an entity determines, based on qualitative assessment, that it is more likely than not that a reporting unit's fair value is less than its carrying value will it be required to calculate the fair value of the reporting unit. The qualitative assessment is optional and the Company is permitted to bypass it for any reporting unit in any period and begin its impairment analysis with the quantitative calculation. The Company is permitted to perform the qualitative assessment in any subsequent period. 28 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Effective January 1, 2012, the Company adopted guidance regarding fair value measurements that establishes common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and International Financial Reporting Standards. Some of the amendments clarify the Financial Accounting Standards Board's ("FASB") 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 adoption did not have a material impact on the Company's financial statements other than the expanded disclosures in Note 10. Future Adoption of New Accounting Pronouncements In February 2015, the FASB issued new guidance to improve consolidation guidance for legal entities (Accounting Standards Update ("ASU") 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis), effective for fiscal years beginning after December 15, 2015 and interim periods within those years and early adoption is permitted. The new standard is intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The amendments in the ASU affect the consolidation evaluation for reporting organizations. In addition, the amendments in this ASU simplify and improve current GAAP by reducing the number of consolidation models. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In June 2014, the FASB issued new guidance on transfers and servicing ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosure), effective prospectively for fiscal years beginning after December 15, 2014 and interim periods within those years. The new guidance requires that repurchase-to-maturity transactions and repurchase financing arrangements be accounted for as secured borrowings and provides for enhanced disclosures, including the nature of collateral pledged and the time to maturity. Certain interim period disclosures for repurchase agreements and securities lending transactions are not required until the second quarter of 2015. The adoption of this new guidance will not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued a comprehensive new revenue recognition standard (ASU 2014-09, Revenue from Contracts with Customers (Topic 606)), effective retrospectively for fiscal years beginning after December 15, 2016 and interim periods within those years. Early adoption of this standard is not permitted. The new guidance will supersede nearly all existing revenue recognition guidance under GAAP; however, it will not impact the accounting for insurance contracts, leases, financial instruments and guarantees. For those contracts that are impacted by the new guidance, the guidance will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In January 2014, the FASB issued new guidance regarding investments (ASU 2014-01, Investments -- Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects), effective retrospectively for fiscal years beginning after December 15, 2014 and interim reporting periods within those years. The new guidance is applicable to investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity that meets certain conditions is permitted to make an accounting policy election to amortize the initial 29 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) cost of its investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance on the statement of operations as a component of income tax expense (benefit). The adoption of this new guidance will not have an impact on the Company's consolidated financial statements. 2. Segment Information The Company is organized into three segments: Retail; Group, Voluntary & Worksite Benefits; and Corporate Benefit Funding. In addition, the Company reports certain of its results of operations in Corporate & Other. Retail The Retail segment offers a broad range of protection products and services and a variety of annuities to individuals and employees of corporations and other institutions, and is organized into two businesses: Life & Other and Annuities. Life & Other insurance products and services include variable life, universal life, term life and whole life products. Additionally, through broker-dealer affiliates, the Company offers a full range of mutual funds and other securities products. Life & Other products and services also include individual disability income products. Annuities includes a variety of variable and fixed annuities which provide for both asset accumulation and asset distribution needs. Group, Voluntary & Worksite Benefits The Group, Voluntary & Worksite Benefits segment offers a broad range of protection products and services to individuals and corporations, as well as other institutions and their respective employees. Group, Voluntary & Worksite Benefits insurance products and services include life, dental, group short- and long-term disability and accidental death and dismemberment ("AD&D") coverages. In addition, the Group, Voluntary & Worksite Benefits segment offers LTC, critical illness and accident & health coverages, as well as prepaid legal plans. Corporate Benefit Funding The Corporate Benefit Funding segment offers a broad range of annuity and investment products, including guaranteed interest products and other stable value products, income annuities, and separate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes structured settlements and certain products to fund postretirement benefits and company-, bank- or trust-owned life insurance used to finance non-qualified benefit programs for executives. Corporate & Other Corporate & Other contains the excess capital, as well as enterprise-wide strategic initiative restructuring charges, not allocated to the segments, various start-up businesses (including the investment management business through which the Company offers fee-based investment management services to institutional clients, as well as direct and digital marketing products), certain run-off businesses, the Company's ancillary international operations and interest expense related to the majority of the Company's outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. In addition, Corporate & Other includes ancillary U.S. sponsored direct business, comprised of group and individual products sold through sponsoring organizations and affinity groups. Additionally, Corporate & Other includes the elimination of intersegment amounts, which generally relate to intersegment loans, which bear interest rates commensurate with related borrowings. 30 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 2. Segment Information (continued) Financial Measures and Segment Accounting Policies Operating earnings is the measure of segment profit or loss the Company uses to evaluate segment performance and allocate resources. Consistent with GAAP guidance for segment reporting, operating earnings is the Company's measure of segment performance and is reported below. Operating earnings should not be viewed as a substitute for income (loss) from continuing operations, net of income tax. The Company believes the presentation of operating earnings as the Company measures it for management purposes enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business. Operating earnings is defined as operating revenues less operating expenses, both net of income tax. Operating revenues excludes net investment gains (losses) and net derivative gains (losses). The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues: . Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees ("GMIB Fees"); and . Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, and (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP. The following adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses: . Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets, (iii) benefits and hedging costs related to GMIBs ("GMIB Costs"), and (iv) market value adjustments associated with surrenders or terminations of contracts ("Market Value Adjustments"); . Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of PABs but do not qualify for hedge accounting treatment; . Amortization of DAC and VOBA excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments; . Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and . Other expenses excludes costs related to noncontrolling interests and goodwill impairments. 31 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 2. Segment Information (continued) Set forth in the tables below is certain financial information with respect to the Company's segments, as well as Corporate & Other, for the years ended December 31, 2014, 2013 and 2012 and at December 31, 2014 and 2013. The segment accounting policies are the same as those used to prepare the Company's consolidated financial statements, except for operating earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below. Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in MetLife, Inc.'s and the Company's business. MetLife, Inc.'s economic capital model aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon and applying an industry standard method for the inclusion of diversification benefits among risk types. MetLife, Inc.'s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards. Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company's consolidated net investment income, operating earnings or income (loss) from continuing operations, net of income tax. Net investment income is based upon the actual results of each segment's specifically identifiable investment portfolios adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company's product pricing. Effective January 1, 2015, the Company implemented certain segment reporting changes related to the measurement of segment operating earnings, including revising the Company's capital allocation methodology. The changes will be applied retrospectively beginning with the first quarter of 2015. The changes will not impact total consolidated operating earnings or net income. 32 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 2. Segment Information (continued)
Operating Results ------------------------------------------------ Group, Voluntary Corporate & Worksite Benefit Corporate Total Year Ended December 31, 2014 Retail Benefits Funding & Other Total Adjustments Consolidated -------------------------------------------------- -------- ---------- --------- --------- -------- ----------- ------------ (In millions) Revenues Premiums.......................................... $ 4,081 $14,381 $ 2,794 $ 128 $ 21,384 $ -- $ 21,384 Universal life and investment-type product policy fees............................................. 1,505 716 191 -- 2,412 54 2,466 Net investment income............................. 5,402 1,783 4,892 288 12,365 (472) 11,893 Other revenues.................................... 430 415 287 676 1,808 -- 1,808 Net investment gains (losses)..................... -- -- -- -- -- 143 143 Net derivative gains (losses)..................... -- -- -- -- -- 1,037 1,037 -------- ------- ------- -------- -------- -------- ---------- Total revenues.................................. 11,418 17,295 8,164 1,092 37,969 762 38,731 -------- ------- ------- -------- -------- -------- ---------- Expenses Policyholder benefits and claims and policyholder dividends........................................ 6,379 13,823 4,771 77 25,050 45 25,095 Interest credited to policyholder account balances......................................... 988 155 1,020 -- 2,163 11 2,174 Capitalization of DAC............................. (376) (17) (30) (1) (424) -- (424) Amortization of DAC and VOBA...................... 536 26 17 -- 579 116 695 Interest expense on debt.......................... 6 2 10 132 150 1 151 Other expenses.................................... 1,797 2,135 492 1,231 5,655 (6) 5,649 -------- ------- ------- -------- -------- -------- ---------- Total expenses.................................. 9,330 16,124 6,280 1,439 33,173 167 33,340 -------- ------- ------- -------- -------- -------- ---------- Provision for income tax expense (benefit)........ 733 430 659 (500) 1,322 210 1,532 -------- ------- ------- -------- -------- ---------- Operating earnings................................ $ 1,355 $ 741 $ 1,225 $ 153 3,474 ======== ======= ======= ======== Adjustments to:................................... Total revenues.................................. 762 Total expenses.................................. (167) Provision for income tax (expense) benefit...... (210) -------- Income (loss) from continuing operations, net of income tax....................................... $ 3,859 $ 3,859 ======== ==========
Group, Voluntary Corporate & Worksite Benefit Corporate At December 31, 2014 Retail Benefits Funding & Other Total ----------------------------- ---------- ---------- ---------- --------- ---------- (In millions) Total assets................. $ 180,572 $ 43,161 $ 205,088 $ 29,397 $ 458,218 Separate account assets...... $ 59,710 $ 669 $ 78,956 $ -- $ 139,335 Separate account liabilities. $ 59,710 $ 669 $ 78,956 $ -- $ 139,335
33 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 2. Segment Information (continued)
Operating Results ------------------------------------------------ Group, Voluntary Corporate & Worksite Benefit Corporate Total Year Ended December 31, 2013 Retail Benefits Funding & Other Total Adjustments Consolidated ------------------------------------------- -------- ---------- --------- --------- -------- ----------- ------------ (In millions) Revenues Premiums................................... $ 3,992 $ 13,732 $ 2,675 $ 76 $ 20,475 $ -- $ 20,475 Universal life and investment-type product policy fees............................... 1,397 688 211 -- 2,296 67 2,363 Net investment income...................... 5,385 1,790 4,611 431 12,217 (432) 11,785 Other revenues............................. 328 404 273 694 1,699 -- 1,699 Net investment gains (losses).............. -- -- -- -- -- 48 48 Net derivative gains (losses).............. -- -- -- -- -- (1,070) (1,070) -------- -------- -------- -------- -------- --------- --------- Total revenues........................... 11,102 16,614 7,770 1,201 36,687 (1,387) 35,300 -------- -------- -------- -------- -------- --------- --------- Expenses Policyholder benefits and claims and policyholder dividends.................... 6,246 13,191 4,723 67 24,227 10 24,237 Interest credited to policyholder account balances.................................. 988 156 1,092 -- 2,236 17 2,253 Capitalization of DAC...................... (517) (20) (25) -- (562) -- (562) Amortization of DAC and VOBA............... 447 25 19 -- 491 (230) 261 Interest expense on debt................... 5 1 10 134 150 3 153 Other expenses............................. 2,280 1,988 489 1,348 6,105 31 6,136 -------- -------- -------- -------- -------- --------- --------- Total expenses........................... 9,449 15,341 6,308 1,549 32,647 (169) 32,478 -------- -------- -------- -------- -------- --------- --------- Provision for income tax expense (benefit). 579 446 512 (421) 1,116 (435) 681 -------- -------- -------- -------- -------- --------- Operating earnings......................... $ 1,074 $ 827 $ 950 $ 73 2,924 ======== ======== ======== ======== Adjustments to: Total revenues........................... (1,387) Total expenses........................... 169 Provision for income tax (expense) benefit................................. 435 -------- Income (loss) from continuing operations, net of income tax......................... $ 2,141 $ 2,141 ======== =========
Group, Voluntary Corporate & Worksite Benefit Corporate At December 31, 2013 Retail Benefits Funding & Other Total ----------------------------- ---------- ---------- ---------- --------- ---------- (In millions) Total assets................. $ 174,853 $ 41,059 $ 188,960 $ 27,911 $ 432,783 Separate account assets...... $ 59,217 $ 644 $ 74,935 $ -- $ 134,796 Separate account liabilities. $ 59,217 $ 644 $ 74,935 $ -- $ 134,796
34 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 2. Segment Information (continued)
Operating Results ------------------------------------------------ Group, Voluntary Corporate & Worksite Benefit Corporate Total Year Ended December 31, 2012 Retail Benefits Funding & Other Total Adjustments Consolidated ------------------------------------------- -------- ---------- --------- --------- -------- ----------- ------------ (In millions) Revenues Premiums................................... $ 3,997 $13,274 $ 2,608 $ 1 $ 19,880 $ -- $ 19,880 Universal life and investment-type product policy fees............................... 1,332 663 194 -- 2,189 50 2,239 Net investment income...................... 5,384 1,680 4,519 554 12,137 (285) 11,852 Other revenues............................. 265 398 252 815 1,730 -- 1,730 Net investment gains (losses).............. -- -- -- -- -- (330) (330) Net derivative gains (losses).............. -- -- -- -- -- 675 675 -------- ------- ------- -------- -------- -------- -------- Total revenues........................... 10,978 16,015 7,573 1,370 35,936 110 36,046 -------- ------- ------- -------- -------- -------- -------- Expenses Policyholder benefits and claims and policyholder dividends.................... 6,294 12,580 4,552 (1) 23,425 139 23,564 Interest credited to policyholder account balances.................................. 1,002 167 1,192 -- 2,361 29 2,390 Capitalization of DAC...................... (584) (24) (24) -- (632) -- (632) Amortization of DAC and VOBA............... 656 29 12 2 699 292 991 Interest expense on debt................... 5 1 9 133 148 4 152 Other expenses............................. 2,341 1,901 438 1,196 5,876 7 5,883 -------- ------- ------- -------- -------- -------- -------- Total expenses........................... 9,714 14,654 6,179 1,330 31,877 471 32,348 -------- ------- ------- -------- -------- -------- -------- Provision for income tax expense (benefit). 442 477 488 (236) 1,171 (116) 1,055 -------- ------- ------- -------- -------- -------- Operating earnings......................... $ 822 $ 884 $ 906 $ 276 2,888 ======== ======= ======= ======== Adjustments to: Total revenues........................... 110 Total expenses........................... (471) Provision for income tax (expense) benefit................................. 116 -------- Income (loss) from continuing operations, net of income tax......................... $ 2,643 $ 2,643 ======== ========
The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company's segments, as well as Corporate & Other:
Years Ended December 31, ----------------------------- 2014 2013 2012 --------- --------- --------- (In millions) Life insurance................ $ 13,865 $ 13,482 $ 13,424 Accident and health insurance. 7,247 6,873 6,458 Annuities..................... 4,352 4,007 3,800 Non-insurance................. 194 175 167 --------- --------- --------- Total........................ $ 25,658 $ 24,537 $ 23,849 ========= ========= =========
35 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 2. Segment Information (continued) Substantially all of the Company's consolidated premiums, universal life & investment-type product policy fees and other revenues originated in the U.S. Revenues derived from one Group, Voluntary & Worksite Benefits customer were $2.8 billion, $2.5 billion and $2.5 billion for the years ended December 31, 2014, 2013 and 2012, respectively, which represented 11%, 10% and 11%, respectively, of consolidated premiums, universal life and investment-type product policy fees and other revenues. Revenues derived from any other customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2014, 2013 and 2012. 3. Dispositions In December 2014, Metropolitan Life Insurance Company distributed to MetLife as a dividend, all of the issued and outstanding shares of common stock of its wholly-owned, broker-dealer subsidiary, New England Securities Corporation ("NES"). The net book value of NES at the time of the dividend was $35 million, which was recorded as a dividend of retained earnings of $35 million. As of the date of the dividend payment, the Company no longer consolidates the assets, liabilities and operations of NES. 4. Insurance Insurance Liabilities Insurance liabilities, including affiliated insurance liabilities on reinsurance assumed and ceded, are comprised of future policy benefits, PABs and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at:
December 31, ------------------- 2014 2013 --------- --------- (In millions) Retail............................... $ 91,868 $ 91,575 Group, Voluntary & Worksite Benefits. 28,805 28,035 Corporate Benefit Funding............ 97,953 89,941 Corporate & Other.................... 518 581 --------- --------- Total............................... $ 219,144 $ 210,132 ========= =========
See Note 6 for discussion of affiliated reinsurance liabilities included in the table above. 36 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 4. Insurance (continued) Future policy benefits are measured as follows: --------------------------------------------------------------------------- Product Type: Measurement Assumptions: --------------------------------------------------------------------------- Participating life Aggregate of (i) net level premium reserves for death and endowment policy benefits (calculated based upon the non-forfeiture interest rate, ranging from 3% to 7%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends. --------------------------------------------------------------------------- Nonparticipating life Aggregate of the present value of expected future benefit payments and related expenses less the present value of expected future net premiums. Assumptions as to mortality and persistency are based upon the Company's experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 2% to 11%. --------------------------------------------------------------------------- Individual and group traditional Present value of expected future fixed annuities after annuitization payments. Interest rate assumptions used in establishing such liabilities range from 1% to 11%. --------------------------------------------------------------------------- Non-medical health insurance The net level premium method and assumptions as to future morbidity, withdrawals and interest, which provide a margin for adverse deviation. Interest rate assumptions used in establishing such liabilities range from 4% to 7%. --------------------------------------------------------------------------- Disabled lives Present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rate assumptions used in establishing such liabilities range from 3% to 8%. --------------------------------------------------------------------------- Participating business represented 5% of the Company's life insurance in-force at both December 31, 2014 and 2013. Participating policies represented 27%, 28% and 29% of gross life insurance premiums for the years ended December 31, 2014, 2013 and 2012, respectively. PABs are equal to: (i) policy account values, which consist of an accumulation of gross premium payments (ii) credited interest, ranging from 1% to 13%, less expenses, mortality charges and withdrawals; and (iii) fair value adjustments relating to business combinations. Guarantees The Company issues variable annuity products with guaranteed minimum benefits. The non-life contingent portion of GMWBs and the portion of certain GMIBs that does not require annuitization are accounted for as 37 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 4. Insurance (continued) embedded derivatives in PABs and are further discussed in Note 9. Guarantees accounted for as insurance liabilities include: Guarantee: Measurement Assumptions: ------------------------------------------------------------------------------------------------- GMDBs . A return of purchase payment upon Present value of expected death benefits in death even if the account value is excess of the projected account balance reduced to zero. recognizing the excess ratably over the accumulation period based on the present value of total expected assessments. . An enhanced death benefit may be Assumptions are consistent with those used available for an additional fee. for amortizing DAC, and are thus subject to the same variability and risk. Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the S&P 500 Index. Benefit assumptions are based on the average benefits payable over a range of scenarios. ------------------------------------------------------------------------------------------------- GMIBs . After a specified period of time Present value of expected income benefits in determined at the time of issuance excess of the projected account balance at of the variable annuity contract, any future date of annuitization and a minimum accumulation of purchase recognizing the excess ratably over the payments, even if the account accumulation period based on present value value is reduced to zero, that can of total expected assessments. be annuitized to receive a monthly income stream that is not less than a specified amount. . Certain contracts also provide for Assumptions are consistent with those used a guaranteed lump sum return of for estimating GMDB liabilities. purchase premium in lieu of the annuitization benefit. Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder. ------------------------------------------------------------------------------------------------- GMWBs. . A return of purchase payment via Expected value of the life contingent partial withdrawals, even if the payments and expected assessments using account value is reduced to zero, assumptions consistent with those used for provided that cumulative estimating the GMDB liabilities. withdrawals in a contract year do not exceed a certain limit. . Certain contracts include guaranteed withdrawals that are life contingent.
The Company also issues annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize ("two tier annuities"). These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certain other annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract. Additionally, the Company issues universal and variable 38 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 4. Insurance (continued) life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity and universal and variable life contracts was as follows:
Universal and Variable Annuity Contracts Life Contracts ----------------- --------------------- Secondary Paid-Up GMDBs GMIBs Guarantees Guarantees Total -------- -------- ---------- ---------- -------- (In millions) Direct Balance at January 1, 2012....... $ 84 $ 158 $ 261 $ 58 $ 561 Incurred guaranteed benefits..... 31 174 79 10 294 Paid guaranteed benefits......... (6) -- -- -- (6) -------- -------- -------- ------- -------- Balance at December 31, 2012..... 109 332 340 68 849 Incurred guaranteed benefits..... 44 58 77 6 185 Paid guaranteed benefits......... (5) -- -- -- (5) -------- -------- -------- ------- -------- Balance at December 31, 2013..... 148 390 417 74 1,029 Incurred guaranteed benefits..... 51 68 124 8 251 Paid guaranteed benefits......... (3) -- -- -- (3) -------- -------- -------- ------- -------- Balance at December 31, 2014..... $ 196 $ 458 $ 541 $ 82 $ 1,277 ======== ======== ======== ======= ======== Ceded Balance at January 1, 2012....... $ 62 $ 52 $ 212 $ 41 $ 367 Incurred guaranteed benefits..... 30 58 53 6 147 Paid guaranteed benefits......... (6) -- -- -- (6) -------- -------- -------- ------- -------- Balance at December 31, 2012..... 86 110 265 47 508 Incurred guaranteed benefits..... 39 14 49 4 106 Paid guaranteed benefits......... (5) -- -- -- (5) -------- -------- -------- ------- -------- Balance at December 31, 2013..... 120 124 314 51 609 Incurred guaranteed benefits (1). (80) (100) (9) 6 (183) Paid guaranteed benefits......... (3) -- -- -- (3) -------- -------- -------- ------- -------- Balance at December 31, 2014..... $ 37 $ 24 $ 305 $ 57 $ 423 ======== ======== ======== ======= ======== Net Balance at January 1, 2012....... $ 22 $ 106 $ 49 $ 17 $ 194 Incurred guaranteed benefits..... 1 116 26 4 147 Paid guaranteed benefits......... -- -- -- -- -- -------- -------- -------- ------- -------- Balance at December 31, 2012..... 23 222 75 21 341 Incurred guaranteed benefits..... 5 44 28 2 79 Paid guaranteed benefits......... -- -- -- -- -- -------- -------- -------- ------- -------- Balance at December 31, 2013..... 28 266 103 23 420 Incurred guaranteed benefits..... 131 168 133 2 434 Paid guaranteed benefits......... -- -- -- -- -- -------- -------- -------- ------- -------- Balance at December 31, 2014..... $ 159 $ 434 $ 236 $ 25 $ 854 ======== ======== ======== ======= ========
-------- (1)See Note 6. 39 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 4. Insurance (continued) Account balances of contracts with insurance guarantees were invested in separate account asset classes as follows at:
December 31, ------------------- 2014 2013 --------- --------- (In millions) Fund Groupings: Equity.......... $ 24,995 $ 24,915 Balanced........ 22,759 22,481 Bond............ 4,561 4,551 Money Market.... 150 179 --------- --------- Total.......... $ 52,465 $ 52,126 ========= =========
Based on the type of guarantee, the Company defines net amount at risk as listed below. These amounts include direct and assumed business, but exclude offsets from hedging or reinsurance, if any. Variable Annuity Guarantees In the Event of Death Defined as the death benefit less the total contract account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. At Annuitization Defined as the amount (if any) that would be required to be added to the total contract account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company's potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. Two Tier and Other Annuities Two tier annuities are defined as the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date. These contracts apply a lower rate on funds if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize. Other annuities are defined as the amount (if any) that would be required to be added to the total contract account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company's potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date. 40 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 4. Insurance (continued) Universal and Variable Life Contracts Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts was as follows at:
December 31, --------------------------------------------------------- 2014 2013 ---------------------------- ---------------------------- In the At In the At Event of Death Annuitization Event of Death Annuitization -------------- ------------- -------------- ------------- (In millions) Annuity Contracts (1) Variable Annuity Guarantees Total contract account value............ $ 62,810 $ 29,474 $ 62,763 $ 28,934 Separate account value.................. $ 51,077 $ 28,347 $ 50,700 $ 27,738 Net amount at risk...................... $ 702 $ 244 $ 641 $ 123 Average attained age of contractholders. 65 years 63 years 64 years 62 years Two Tier and Other Annuities Account value........................... N/A $ 456 N/A $ 397 Net amount at risk...................... N/A $ 153 N/A $ 123 Average attained age of contractholders. N/A 55 years N/A 54 years
December 31, ----------------------------------------------- 2014 2013 ----------------------- ----------------------- Secondary Paid-Up Secondary Paid-Up Guarantees Guarantees Guarantees Guarantees ----------- ----------- ----------- ----------- (In millions) Universal and Variable Life Contracts (1) Account value (general and separate account). $ 8,213 $ 1,091 $ 7,871 $ 1,125 Net amount at risk........................... $ 78,758 $ 8,164 $ 81,888 $ 8,701 Average attained age of policyholders........ 54 years 60 years 53 years 59 years
-------- (1)The Company's annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. Obligations Under Funding Agreements The Company issues fixed and floating rate funding agreements, which are denominated in either U.S. dollars or foreign currencies, to certain special purpose entities ("SPEs") that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such funding agreements. During the years ended December 31, 2014, 2013 and 2012, the Company issued $36.7 billion, $26.8 billion and $24.7 billion, respectively, and repaid $31.7 billion, $25.1 billion and $21.5 billion, respectively, of such funding 41 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 4. Insurance (continued) agreements. At December 31, 2014 and 2013, liabilities for funding agreements outstanding, which are included in PABs, were $30.3 billion and $26.0 billion, respectively. Metropolitan Life Insurance Company and General American Life Insurance Company ("GALIC"), a subsidiary, are members of regional banks in the Federal Home Loan Bank ("FHLB") system ("FHLBanks"). Holdings of common stock of FHLBanks, included in equity securities, were as follows at:
December 31, ---------------------- 2014 2013 ----------- ---------- (In millions) FHLB of NY......... $ 661 $ 700 FHLB of Des Moines. $ 50 $ 50
The Company has also entered into funding agreements with FHLBanks and the Federal Agricultural Mortgage Corporation, a federally chartered instrumentality of the U.S. ("Farmer Mac"). The liability for such funding agreements is included in PABs. Information related to such funding agreements was as follows at:
Liability Collateral ------------------- --------------------------- December 31, ----------------------------------------------- 2014 2013 2014 2013 --------- --------- ------------- ------------- (In millions) FHLB of NY (1)......... $ 12,570 $ 12,770 $ 15,255 (2) $ 14,287 (2) Farmer Mac (3)......... $ 2,550 $ 2,550 $ 2,932 $ 2,929 FHLB of Des Moines (1). $ 1,000 $ 1,000 $ 1,141 (2) $ 1,118 (2)
-------- (1)Represents funding agreements issued to the applicable FHLBank in exchange for cash and for which such FHLBank has been granted a lien on certain assets, some of which are in the custody of such FHLBank, including residential mortgage-backed securities ("RMBS"), to collateralize obligations under advances evidenced by funding agreements. The Company is permitted to withdraw any portion of the collateral in the custody of such FHLBank as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by the Company, such FHLBank's recovery on the collateral is limited to the amount of the Company's liability to such FHLBank. (2)Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value. (3)Represents funding agreements issued to certain SPEs that have issued debt securities for which payment of interest and principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by Farmer Mac. The obligations under these funding agreements are secured by a pledge of certain eligible agricultural real estate mortgage loans and may, under certain circumstances, be secured by other qualified collateral. The amount of collateral presented is at carrying value. 42 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 4. Insurance (continued) Liabilities for Unpaid Claims and Claim Expenses Information regarding the liabilities for unpaid claims and claim expenses relating to group accident and non-medical health policies and contracts, which are reported in future policy benefits and other policy-related balances, was as follows:
Years Ended December 31, -------------------------- 2014 2013 2012 -------- -------- -------- (In millions) Balance at January 1,........... $ 7,022 $ 6,826 $ 6,622 Less: Reinsurance recoverables. 290 301 324 -------- -------- -------- Net balance at January 1,....... 6,732 6,525 6,298 -------- -------- -------- Incurred related to: Current year................... 5,099 4,762 4,320 Prior years (1)................ -- (12) (42) -------- -------- -------- Total incurred............... 5,099 4,750 4,278 -------- -------- -------- Paid related to: Current year................... (3,228) (3,035) (2,626) Prior years.................... (1,579) (1,508) (1,425) -------- -------- -------- Total paid................... (4,807) (4,543) (4,051) -------- -------- -------- Net balance at December 31,..... 7,024 6,732 6,525 Add: Reinsurance recoverables.. 286 290 301 -------- -------- -------- Balance at December 31,......... $ 7,310 $ 7,022 $ 6,826 ======== ======== ========
-------- (1)During 2014, there were no changes to claims and claim adjustment expenses associated with prior years. During 2013 and 2012, as a result of changes in estimates of insured events in the respective prior year, claims and claim adjustment expenses associated with prior years decreased due to a reduction in prior year dental and AD&D claims and improved loss ratio for non-medical health claim liabilities. Separate Accounts Separate account assets and liabilities include two categories of account types: pass-through separate accounts totaling $83.8 billion and $83.1 billion at December 31, 2014 and 2013, respectively, for which the policyholder assumes all investment risk, and separate accounts for which the Company contractually guarantees either a minimum return or account value to the policyholder which totaled $55.5 billion and $51.7 billion at December 31, 2014 and 2013, respectively. The latter category consisted primarily of funding agreements and participating close-out contracts. The average interest rate credited on these contracts was 2.25% and 2.23% at December 31, 2014 and 2013, respectively. For the years ended December 31, 2014, 2013 and 2012, there were no investment gains (losses) on transfers of assets from the general account to the separate accounts. 43 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles See Note 1 for a description of capitalized acquisition costs. Nonparticipating and Non-Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts (term insurance, nonparticipating whole life insurance, traditional group life insurance, and non-medical health insurance) over the appropriate premium paying period in proportion to the historic actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, morbidity, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policyholder benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Participating, Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross margins. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The future gross margins are dependent principally on investment returns, policyholder dividend scales, mortality, persistency, expenses to administer the business, creditworthiness of reinsurance counterparties and certain economic variables, such as inflation. For participating contracts within the closed block (dividend-paying traditional contracts) future gross margins are also dependent upon changes in the policyholder dividend obligation. See Note 7. Of these factors, the Company anticipates that investment returns, expenses, persistency and other factor changes, as well as policyholder dividend scales, are reasonably likely to impact significantly the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross margins with the actual gross margins for that period. When the actual gross margins change from previously estimated gross margins, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross margins exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross margins are below the previously estimated gross margins. Each reporting period, the Company also updates the actual amount of business in-force, which impacts expected future gross margins. When expected future gross margins are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross margins are above the previously estimated expected future gross margins. Each period, the Company also reviews the estimated gross margins for each block of business to determine the recoverability of DAC and VOBA balances. Fixed and Variable Universal Life Contracts and Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used 44 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (continued) and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to impact significantly the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company's long-term expectation produce higher account balances, which increases the Company's future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company's long-term expectation. The Company's practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross margins and profits. These assumptions primarily relate to investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross margins and profits which may have significantly changed. If the update of assumptions causes expected future gross margins and profits to increase, DAC and VOBA amortization will decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross margins and profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross margins or profits originating from transactions other than 45 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (continued) investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. Information regarding DAC and VOBA was as follows:
Years Ended December 31, ---------------------------- 2014 2013 2012 -------- -------- -------- (In millions) DAC Balance at January 1,............................................ $ 6,338 $ 5,752 $ 6,244 Capitalizations.................................................. 424 562 632 Amortization related to: Net investment gains (losses) and net derivative gains (losses). (104) 227 (270) Other expenses.................................................. (583) (478) (709) -------- -------- -------- Total amortization............................................ (687) (251) (979) -------- -------- -------- Unrealized investment gains (losses)............................. (170) 495 (145) Other (1)........................................................ -- (220) -- -------- -------- -------- Balance at December 31,.......................................... 5,905 6,338 5,752 -------- -------- -------- VOBA Balance at January 1,............................................ 78 80 97 Amortization related to: Other expenses.................................................. (8) (10) (12) -------- -------- -------- Total amortization............................................ (8) (10) (12) -------- -------- -------- Unrealized investment gains (losses)............................. -- 8 (5) -------- -------- -------- Balance at December 31,.......................................... 70 78 80 -------- -------- -------- Total DAC and VOBA Balance at December 31,.......................................... $ 5,975 $ 6,416 $ 5,832 ======== ======== ========
-------- (1)The year ended December 31, 2013 includes ($220) million that was reclassified to DAC from other liabilities. The amounts reclassified relate to affiliated reinsurance agreements accounted for using the deposit method of accounting and represent the DAC amortization on the expense allowances assumed on the agreements from inception. These amounts were previously included in the calculated value of the deposit payable on these agreements and were recorded within other liabilities. 46 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (continued) Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at:
December 31, ----------------- 2014 2013 -------- -------- (In millions) Retail............................... $ 5,544 $ 5,990 Group, Voluntary & Worksite Benefits. 324 333 Corporate Benefit Funding............ 106 93 Corporate & Other.................... 1 -- -------- -------- Total............................... $ 5,975 $ 6,416 ======== ========
Information regarding other intangibles was as follows:
Years Ended December 31, ------------------------ 2014 2013 2012 ------ ------ ------ (In millions) DSI Balance at January 1,................ $ 175 $ 180 $ 184 Capitalization....................... 10 15 22 Amortization......................... (28) (20) (26) Unrealized investment gains (losses). (35) -- -- ------ ------ ------ Balance at December 31,.............. $ 122 $ 175 $ 180 ====== ====== ====== VODA and VOCRA Balance at January 1,................ $ 325 $ 353 $ 378 Amortization......................... (30) (28) (25) ------ ------ ------ Balance at December 31,.............. $ 295 $ 325 $ 353 ====== ====== ====== Accumulated amortization............. $ 162 $ 132 $ 104 ====== ====== ======
The estimated future amortization expense to be reported in other expenses for the next five years is as follows:
VOBA VODA and VOCRA -------------- -------------- (In millions) 2015.......................... $ 9 $ 30 2016.......................... $ 4 $ 30 2017.......................... $ 5 $ 28 2018.......................... $ 5 $ 26 2019.......................... $ 5 $ 24
6. Reinsurance The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by affiliated and 47 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 6. Reinsurance (continued) unaffiliated companies. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth. Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in Note 8. Retail For its Retail Life & Other insurance products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis. The Company currently reinsures 90% of the mortality risk in excess of $2 million for most products. In addition to reinsuring mortality risk as described above, the Company reinsures other risks, as well as specific coverages. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specified characteristics. On a case by case basis, the Company may retain up to $20 million per life and reinsure 100% of amounts in excess of the amount the Company retains. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time. The Company's Retail Annuities business assumes 90% of the fixed annuities issued by certain affiliates. The Company also reinsures 100% of the living and death benefit guarantees issued in connection with certain variable annuities issued since 2004 to an affiliate and portions of the living and death benefit guarantees issued in connection with its variable annuities issued prior to 2004 to affiliated and unaffiliated reinsurers. Under these reinsurance agreements, the Company pays a reinsurance premium generally based on fees associated with the guarantees collected from policyholders, and receives reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations. The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. The Company also assumes 100% of certain variable annuity risks issued by an affiliate. Group, Voluntary & Worksite Benefits For certain policies within the Group, Voluntary & Worksite Benefits segment, the Company generally retains most of the risk and only cedes particular risk on certain client arrangements. The majority of the Company's reinsurance activity within this segment relates to client agreements for employer sponsored captive programs, risk-sharing agreements and multinational pooling. Corporate Benefit Funding The Company's Corporate Benefit Funding segment has periodically engaged in reinsurance activities, on an opportunistic basis. The impact of these activities on the financial results of this segment has not been significant and there were no significant transactions during the periods presented. 48 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 6. Reinsurance (continued) Catastrophe Coverage The Company has exposure to catastrophes which could contribute to significant fluctuations in the Company's results of operations. The Company uses excess of retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposure to larger risks. Reinsurance Recoverables The Company reinsures its business through a diversified group of well-capitalized reinsurers. The Company analyzes recent trends in arbitration and litigation outcomes in disputes, if any, with its reinsurers. The Company monitors ratings and evaluates the financial strength of its reinsurers by analyzing their financial statements. In addition, the reinsurance recoverable balance due from each reinsurer is evaluated as part of the overall monitoring process. Recoverability of reinsurance recoverable balances is evaluated based on these analyses. The Company generally secures large reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. These reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, which at December 31, 2014 and 2013, were not significant. The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. The Company had $2.3 billion and $2.4 billion of unsecured unaffiliated reinsurance recoverable balances at December 31, 2014 and 2013, respectively. At December 31, 2014, the Company had $5.4 billion of net unaffiliated ceded reinsurance recoverables. Of this total, $4.4 billion, or 82%, were with the Company's five largest unaffiliated ceded reinsurers, including $1.8 billion of net unaffiliated ceded reinsurance recoverables which were unsecured. At December 31, 2013, the Company had $5.4 billion of net unaffiliated ceded reinsurance recoverables. Of this total, $4.4 billion, or 82%, were with the Company's five largest unaffiliated ceded reinsurers, including $1.8 billion of net unaffiliated ceded reinsurance recoverables which were unsecured. The Company has reinsured with an unaffiliated third-party reinsurer, 59.25% of the closed block through a modified coinsurance agreement. The Company accounts for this agreement under the deposit method of accounting. The Company, having the right of offset, has offset the modified coinsurance deposit with the deposit recoverable. 49 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 6. Reinsurance (continued) The amounts in the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows:
Years Ended December 31, ------------------------------- 2014 2013 2012 --------- --------- --------- (In millions) Premiums Direct premiums............................................... $ 20,963 $ 20,290 $ 19,821 Reinsurance assumed........................................... 1,673 1,469 1,350 Reinsurance ceded............................................. (1,252) (1,284) (1,291) --------- --------- --------- Net premiums................................................. $ 21,384 $ 20,475 $ 19,880 ========= ========= ========= Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees. $ 3,029 $ 2,913 $ 2,763 Reinsurance assumed........................................... 48 41 39 Reinsurance ceded............................................. (611) (591) (563) --------- --------- --------- Net universal life and investment-type product policy fees... $ 2,466 $ 2,363 $ 2,239 ========= ========= ========= Other revenues Direct other revenues......................................... $ 1,040 $ 970 $ 887 Reinsurance assumed........................................... 2 (2) (6) Reinsurance ceded............................................. 766 731 849 --------- --------- --------- Net other revenues........................................... $ 1,808 $ 1,699 $ 1,730 ========= ========= ========= Policyholder benefits and claims Direct policyholder benefits and claims....................... $ 23,978 $ 23,305 $ 22,677 Reinsurance assumed........................................... 1,416 1,225 1,208 Reinsurance ceded............................................. (1,539) (1,498) (1,616) --------- --------- --------- Net policyholder benefits and claims......................... $ 23,855 $ 23,032 $ 22,269 ========= ========= ========= Interest credited to policyholder account balances Direct interest credited to policyholder account balances..... $ 2,227 $ 2,322 $ 2,455 Reinsurance assumed........................................... 35 35 33 Reinsurance ceded............................................. (88) (104) (98) --------- --------- --------- Net interest credited to policyholder account balances....... $ 2,174 $ 2,253 $ 2,390 ========= ========= ========= Other expenses Direct other expenses......................................... $ 5,132 $ 5,028 $ 5,328 Reinsurance assumed........................................... 399 427 479 Reinsurance ceded............................................. 540 533 587 --------- --------- --------- Net other expenses........................................... $ 6,071 $ 5,988 $ 6,394 ========= ========= =========
50 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 6. Reinsurance (continued) The amounts in the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at:
December 31, ---------------------------------------------------------------------------------- 2014 2013 ----------------------------------------- ---------------------------------------- Total Total Balance Balance Direct Assumed Ceded Sheet Direct Assumed Ceded Sheet ---------- --------- --------- --------- ---------- -------- --------- --------- (In millions) Assets Premiums, reinsurance and other receivables........... $ 1,711 $ 649 $ 21,079 $ 23,439 $ 1,700 $ 527 $ 21,410 $ 23,637 Deferred policy acquisition costs and value of business acquired.................... 6,002 391 (418) 5,975 6,567 330 (481) 6,416 ---------- --------- --------- --------- ---------- -------- --------- --------- Total assets............... $ 7,713 $ 1,040 $ 20,661 $ 29,414 $ 8,267 $ 857 $ 20,929 $ 30,053 ========== ========= ========= ========= ========== ======== ========= ========= Liabilities Future policy benefits....... $ 115,143 $ 2,259 $ -- $ 117,402 $ 110,072 $ 1,891 $ -- $ 111,963 Policyholder account balances.................... 95,601 301 -- 95,902 92,246 252 -- 92,498 Other policy-related balances.................... 5,353 455 32 5,840 5,416 294 (39) 5,671 Other liabilities............ 10,350 7,020 16,077 33,447 8,690 7,046 16,444 32,180 ---------- --------- --------- --------- ---------- -------- --------- --------- Total liabilities.......... $ 226,447 $ 10,035 $ 16,109 $ 252,591 $ 216,424 $ 9,483 $ 16,405 $ 242,312 ========== ========= ========= ========= ========== ======== ========= =========
Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on reinsurance were $13.8 billion at both December 31, 2014 and 2013. The deposit liabilities on reinsurance were $6.8 billion and $6.5 billion at December 31, 2014 and 2013, respectively. Related Party Reinsurance Transactions The Company has reinsurance agreements with certain of MetLife, Inc.'s subsidiaries, including MetLife Insurance Company USA ("MetLife USA"), First MetLife Investors Insurance Company ("First MetLife"), MetLife Reinsurance Company of Charleston ("MRC"), MetLife Reinsurance Company of Vermont and Metropolitan Tower Life Insurance Company, all of which are related parties. 51 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 6. Reinsurance (continued) Information regarding the significant effects of affiliated reinsurance included in the consolidated statements of operations was as follows:
Years Ended December 31, ------------------------ 2014 2013 2012 ------ ------ -------- (In millions) Premiums Reinsurance assumed......................................... $ 681 $ 451 $ 319 Reinsurance ceded........................................... (36) (45) (54) ------ ------ -------- Net premiums............................................... $ 645 $ 406 $ 265 ====== ====== ======== Universal life and investment-type product policy fees Reinsurance assumed......................................... $ 48 $ 40 $ 39 Reinsurance ceded........................................... (240) (221) (216) ------ ------ -------- Net universal life and investment-type product policy fees. $ (192) $ (181) $ (177) ====== ====== ======== Other revenues Reinsurance assumed......................................... $ 2 $ (2) $ (6) Reinsurance ceded........................................... 713 675 790 ------ ------ -------- Net other revenues......................................... $ 715 $ 673 $ 784 ====== ====== ======== Policyholder benefits and claims Reinsurance assumed......................................... $ 623 $ 402 $ 334 Reinsurance ceded........................................... (197) (144) (177) ------ ------ -------- Net policyholder benefits and claims....................... $ 426 $ 258 $ 157 ====== ====== ======== Interest credited to policyholder account balances Reinsurance assumed......................................... $ 33 $ 31 $ 30 Reinsurance ceded........................................... (88) (102) (98) ------ ------ -------- Net interest credited to policyholder account balances..... $ (55) $ (71) $ (68) ====== ====== ======== Other expenses Reinsurance assumed......................................... $ 298 $ 326 $ 357 Reinsurance ceded........................................... 680 653 789 ------ ------ -------- Net other expenses......................................... $ 978 $ 979 $ 1,146 ====== ====== ========
52 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 6. Reinsurance (continued) Information regarding the significant effects of affiliated reinsurance included in the consolidated balance sheets was as follows at:
December 31, -------------------------------------- 2014 2013 ------------------ ------------------ Assumed Ceded Assumed Ceded -------- --------- -------- --------- (In millions) Assets Premiums, reinsurance and other receivables............. $ 257 $ 15,453 $ 109 $ 15,748 Deferred policy acquisition costs and value of business acquired.............................................. 370 (231) 309 (273) -------- --------- -------- --------- Total assets........................................... $ 627 $ 15,222 $ 418 $ 15,475 ======== ========= ======== ========= Liabilities Future policy benefits.................................. $ 1,146 $ -- $ 761 $ -- Policyholder account balances........................... 288 -- 239 -- Other policy-related balances........................... 264 32 67 (39) Other liabilities....................................... 6,610 13,545 6,606 14,044 -------- --------- -------- --------- Total liabilities...................................... $ 8,308 $ 13,577 $ 7,673 $ 14,005 ======== ========= ======== =========
The Company ceded two blocks of business to two affiliates on a 75% coinsurance with funds withheld basis. Certain contractual features of these agreements qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company's consolidated balance sheets. The embedded derivatives related to the funds withheld associated with these reinsurance agreements are included within other liabilities and increased/(decreased) the funds withheld balance by $20 million and ($11) million at December 31, 2014 and 2013, respectively. Net derivative gains (losses) associated with these embedded derivatives were ($39) million, $40 million and ($9) million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company ceded risks to an affiliate related to guaranteed minimum benefit guarantees written directly by the Company. These ceded reinsurance agreements contain embedded derivatives and changes in their fair value are also included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within premiums, reinsurance and other receivables and were $657 million and ($62) million at December 31, 2014 and 2013, respectively. Net derivative gains (losses) associated with the embedded derivatives were $497 million, ($1.7) billion and $14 million for the years ended December 31, 2014, 2013 and 2012, respectively. Certain contractual features of the closed block agreement with MRC create an embedded derivative, which is separately accounted for at estimated fair value on the Company's consolidated balance sheets. The embedded derivative related to the funds withheld associated with this reinsurance agreement was included within other liabilities and increased the funds withheld balance by $1.1 billion and $709 million at December 31, 2014 and 2013, respectively. Net derivative gains (losses) associated with the embedded derivative were ($389) million, $664 million and $135 million for the years ended December 31, 2014, 2013 and 2012, respectively. In November 2014, MetLife Insurance Company of Connecticut ("MICC"), a wholly-owned subsidiary of MetLife, Inc., re-domesticated from Connecticut to Delaware, changed its name to MetLife Insurance Company 53 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 6. Reinsurance (continued) USA and merged with its subsidiary, MetLife Investors USA Insurance Company, and its affiliate, MetLife Investors Insurance Company, each a U.S. insurance company that issued variable annuity products in addition to other products, and Exeter Reassurance Company, Ltd. ("Exeter"), a former offshore, reinsurance subsidiary of MetLife, Inc. and affiliate of MICC that mainly reinsured guarantees associated with variable annuity products (the "Mergers"). The surviving entity of the Mergers was MetLife USA. Effective January 1, 2014, following receipt of New York State Department of Financial Services (the "Department of Financial Services") approval, MICC withdrew its license to issue insurance policies and annuity contracts in New York. Prior to the Mergers, certain related party transactions were consummated as summarized below. See Notes 8 and 9 for information regarding additional related party transactions. . Effective January 1, 2014, MICC reinsured with Metropolitan Life Insurance Company all existing New York insurance policies and annuity contracts that include a separate account feature. As a result of the reinsurance agreements, the significant effects to the Company were increases in other invested assets of $192 million, in other liabilities of $572 million, in future policy benefits of $128 million and in cash and cash equivalents and total investments of $494 million received from MICC. . In October 2014, the Company recaptured a block of universal life secondary guarantee business ceded to Exeter on a 75% coinsurance with funds withheld basis. As a result of this recapture, the significant effects to the Company were decreases in premiums, reinsurance and other receivables of $492 million, and in other liabilities of $432 million, as well as increases in DAC of $30 million and in other policy-related balances of $9 million. . In November 2014, the Company partially recaptured risks related to guaranteed minimum benefit guarantees on certain variable annuities previously ceded to Exeter. As a result of this recapture, the significant effects to the Company were decreases in premiums, reinsurance and other receivables of $719 million, and in other liabilities of $447 million, as well as increases in DAC of $7 million and in cash and cash equivalents of $324 million. There was also an increase in net income of $54 million which was reflected in other income. . Effective November 1, 2014, the Company entered into an agreement to assume 100% of certain variable annuities including guaranteed minimum benefit guarantees on a modified coinsurance basis from First MetLife. As a result of this reinsurance agreement, the significant effects to the Company were decreases in other liabilities of $269 million and in cash and cash equivalents paid to First MetLife of $218 million. The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. The Company had $2.1 billion and $1.2 billion of unsecured affiliated reinsurance recoverable balances at December 31, 2014 and 2013, respectively. Affiliated reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on affiliated reinsurance were $11.7 billion and $11.8 billion at December 31, 2014 and 2013, respectively. The deposit liabilities on affiliated reinsurance were $6.7 billion and $6.5 billion at December 31, 2014 and 2013, respectively. 54 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 7. Closed Block On April 7, 2000 (the "Demutualization Date"), Metropolitan Life Insurance Company converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving Metropolitan Life Insurance Company's plan of reorganization, as amended (the "Plan of Reorganization"). On the Demutualization Date, Metropolitan Life Insurance Company established a closed block for the benefit of holders of certain individual life insurance policies of Metropolitan Life Insurance Company. Assets have been allocated to the closed block in an amount that has been determined to produce cash flows which, together with anticipated revenues from the policies included in the closed block, are reasonably expected to be sufficient to support obligations and liabilities relating to these policies, including, but not limited to, provisions for the payment of claims and certain expenses and taxes, and to provide for the continuation of policyholder dividend scales in effect for 1999, if the experience underlying such dividend scales continues, and for appropriate adjustments in such scales if the experience changes. At least annually, the Company compares actual and projected experience against the experience assumed in the then-current dividend scales. Dividend scales are adjusted periodically to give effect to changes in experience. The closed block assets, the cash flows generated by the closed block assets and the anticipated revenues from the policies in the closed block will benefit only the holders of the policies in the closed block. To the extent that, over time, cash flows from the assets allocated to the closed block and claims and other experience related to the closed block are, in the aggregate, more or less favorable than what was assumed when the closed block was established, total dividends paid to closed block policyholders in the future may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect for 1999 had been continued. Any cash flows in excess of amounts assumed will be available for distribution over time to closed block policyholders and will not be available to stockholders. If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside of the closed block. The closed block will continue in effect as long as any policy in the closed block remains in-force. The expected life of the closed block is over 100 years. The Company uses the same accounting principles to account for the participating policies included in the closed block as it used prior to the Demutualization Date. However, the Company establishes a policyholder dividend obligation for earnings that will be paid to policyholders as additional dividends as described below. The excess of closed block liabilities over closed block assets at the Demutualization Date (adjusted to eliminate the impact of related amounts in AOCI) represents the estimated maximum future earnings from the closed block expected to result from operations attributed to the closed block after income taxes. Earnings of the closed block are recognized in income over the period the policies and contracts in the closed block remain in-force. Management believes that over time the actual cumulative earnings of the closed block will approximately equal the expected cumulative earnings due to the effect of dividend changes. If, over the period the closed block remains in existence, the actual cumulative earnings of the closed block are greater than the expected cumulative earnings of the closed block, the Company will pay the excess of the actual cumulative earnings of the closed block over the expected cumulative earnings to closed block policyholders as additional policyholder dividends unless offset by future unfavorable experience of the closed block and, accordingly, will recognize only the expected cumulative earnings in income with the excess recorded as a policyholder dividend obligation. If over such period, the actual cumulative earnings of the closed block are less than the expected cumulative earnings of the closed block, the Company will recognize only the actual earnings in income. However, the Company may change policyholder dividend scales in the future, which would be intended to increase future actual earnings until the actual cumulative earnings equal the expected cumulative earnings. 55 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 7. Closed Block (continued) Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company's net income continues to be sensitive to the actual performance of the closed block. Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. Information regarding the closed block liabilities and assets designated to the closed block was as follows at:
December 31, -------------------- 2014 2013 --------- --------- (In millions) Closed Block Liabilities Future policy benefits............................................................ $ 41,667 $ 42,076 Other policy-related balances..................................................... 265 298 Policyholder dividends payable.................................................... 461 456 Policyholder dividend obligation.................................................. 3,155 1,771 Current income tax payable........................................................ 1 18 Other liabilities................................................................. 646 582 --------- --------- Total closed block liabilities................................................. 46,195 45,201 --------- --------- Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value............ 29,199 28,374 Equity securities available-for-sale, at estimated fair value.................... 91 86 Mortgage loans................................................................... 6,076 6,155 Policy loans..................................................................... 4,646 4,669 Real estate and real estate joint ventures....................................... 666 492 Other invested assets............................................................ 1,065 814 --------- --------- Total investments.............................................................. 41,743 40,590 Cash and cash equivalents......................................................... 227 238 Accrued investment income......................................................... 477 477 Premiums, reinsurance and other receivables....................................... 67 98 Deferred income tax assets........................................................ 289 293 --------- --------- Total assets designated to the closed block.................................... 42,803 41,696 --------- --------- Excess of closed block liabilities over assets designated to the closed block..... 3,392 3,505 --------- --------- Amounts included in AOCI: Unrealized investment gains (losses), net of income tax.......................... 2,291 1,502 Unrealized gains (losses) on derivatives, net of income tax...................... 28 (3) Allocated to policyholder dividend obligation, net of income tax................. (2,051) (1,151) --------- --------- Total amounts included in AOCI................................................. 268 348 --------- --------- Maximum future earnings to be recognized from closed block assets and liabilities. $ 3,660 $ 3,853 ========= =========
56 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 7. Closed Block (continued) Information regarding the closed block policyholder dividend obligation was as follows:
Years Ended December 31, --------------------------- 2014 2013 2012 -------- -------- -------- (In millions) Balance at January 1,......................................... $ 1,771 $ 3,828 $ 2,919 Change in unrealized investment and derivative gains (losses). 1,384 (2,057) 909 -------- -------- -------- Balance at December 31,....................................... $ 3,155 $ 1,771 $ 3,828 ======== ======== ========
Information regarding the closed block revenues and expenses was as follows:
Years Ended December 31, --------------------- 2014 2013 2012 ------ ------ ------ (In millions) Revenues Premiums...................................................................... $1,918 $1,987 $2,139 Net investment income......................................................... 2,093 2,130 2,188 Net investment gains (losses)................................................. 7 25 61 Net derivative gains (losses)................................................. 20 (6) (12) ------ ------ ------ Total revenues............................................................... 4,038 4,136 4,376 ------ ------ ------ Expenses Policyholder benefits and claims.............................................. 2,598 2,702 2,783 Policyholder dividends........................................................ 988 979 1,072 Other expenses................................................................ 155 165 179 ------ ------ ------ Total expenses............................................................... 3,741 3,846 4,034 ------ ------ ------ Revenues, net of expenses before provision for income tax expense (benefit)... 297 290 342 Provision for income tax expense (benefit).................................... 104 101 120 ------ ------ ------ Revenues, net of expenses and provision for income tax expense (benefit) from continuing operations....................................................... 193 189 222 Revenues, net of expenses and provision for income tax expense (benefit) from discontinued operations..................................................... -- -- 10 ------ ------ ------ Revenues, net of expenses and provision for income tax expense (benefit)...... $ 193 $ 189 $ 232 ====== ====== ======
Metropolitan Life Insurance Company charges the closed block with federal income taxes, state and local premium taxes and other additive state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan of Reorganization. Metropolitan Life Insurance Company also charges the closed block for expenses of maintaining the policies included in the closed block. 8. Investments See Note 10 for information about the fair value hierarchy for investments and the related valuation methodologies. 57 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) Investment Risks and Uncertainties Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of impairments, the recognition of income on certain investments and the potential consolidation of VIEs. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the consolidated financial statements. The determination of valuation allowances and impairments is highly subjective and is based upon periodic evaluations and assessments of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available. The recognition of income on certain investments (e.g. structured securities, including mortgage-backed securities, asset-backed securities ("ABS"), certain structured investment transactions and trading and FVO securities) is dependent upon certain factors such as prepayments and defaults, and changes in such factors could result in changes in amounts to be earned. Fixed Maturity and Equity Securities AFS Fixed Maturity and Equity Securities AFS by Sector The following table presents the fixed maturity and equity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable 58 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including RMBS, ABS and commercial mortgage-backed securities ("CMBS").
December 31, 2014 December 31, 2013 ------------------------------------------------ ------------------------------------------------- Gross Unrealized Gross Unrealized Cost or -------------------------- Estimated Cost or -------------------------- Estimated Amortized Temporary OTTI Fair Amortized Temporary OTTI Fair Cost Gains Losses Losses Value Cost Gains Losses Losses Value ---------- --------- --------- ------ ---------- ---------- --------- --------- ------ ---------- (In millions) Fixed maturity securities U.S. corporate............ $ 59,532 $ 6,246 $ 421 $ -- $ 65,357 $ 60,244 $ 4,678 $ 693 $ -- $ 64,229 U.S. Treasury and agency.. 34,391 4,698 19 -- 39,070 29,508 1,730 694 -- 30,544 Foreign corporate......... 28,395 1,934 511 -- 29,818 27,082 1,959 285 -- 28,756 RMBS...................... 26,893 1,493 157 66 28,163 24,119 1,109 368 150 24,710 ABS (1)................... 8,206 102 82 -- 8,226 7,789 151 117 (1) 7,824 CMBS...................... 7,705 241 33 -- 7,913 8,203 262 89 -- 8,376 State and political subdivision.............. 5,329 1,197 6 -- 6,520 5,386 467 76 -- 5,777 Foreign government........ 3,153 761 70 -- 3,844 3,040 597 107 -- 3,530 ---------- --------- -------- ----- ---------- ---------- --------- --------- ------ ---------- Total fixed maturity securities.............. $ 173,604 $ 16,672 $ 1,299 $ 66 $ 188,911 $ 165,371 $ 10,953 $ 2,429 $ 149 $ 173,746 ========== ========= ======== ===== ========== ========== ========= ========= ====== ========== Equity securities Common stock.............. $ 1,236 $ 142 $ 26 $ -- $ 1,352 $ 1,070 $ 97 $ 3 $ -- $ 1,164 Non-redeemable preferred stock.................... 690 53 30 -- 713 743 62 77 -- 728 ---------- --------- -------- ----- ---------- ---------- --------- --------- ------ ---------- Total equity securities.. $ 1,926 $ 195 $ 56 $ -- $ 2,065 $ 1,813 $ 159 $ 80 $ -- $ 1,892 ========== ========= ======== ===== ========== ========== ========= ========= ====== ==========
-------- (1)The noncredit loss component of OTTI losses was in an unrealized gain position of $1 million for ABS at December 31, 2013, due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also "--Net Unrealized Investment Gains (Losses)." The Company held non-income producing fixed maturity securities with an estimated fair value of $6 million and $38 million with unrealized gains (losses) of $5 million and $12 million at December 31, 2014 and 2013, respectively. Methodology for Amortization of Premium and Accretion of Discount on Structured Securities Amortization of premium and accretion of discount on structured securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single class and multi-class mortgage-backed and ABS are estimated using inputs obtained from third-party specialists and based on management's knowledge of the current market. For credit-sensitive mortgage-backed and ABS and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other mortgage-backed and ABS, the effective yield is recalculated on a retrospective basis. 59 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) Maturities of Fixed Maturity Securities The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at:
December 31, --------------------------------------- 2014 2013 ------------------- ------------------- Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value --------- --------- --------- --------- (In millions) Due in one year or less.................... $ 5,841 $ 5,902 $ 6,411 $ 6,516 Due after one year through five years...... 36,600 38,115 34,696 36,556 Due after five years through ten years..... 39,257 41,519 35,725 38,347 Due after ten years........................ 49,102 59,073 48,428 51,417 -------- -------- -------- -------- Subtotal................................ 130,800 144,609 125,260 132,836 Structured securities (RMBS, ABS and CMBS). 42,804 44,302 40,111 40,910 -------- -------- -------- -------- Total fixed maturity securities......... $173,604 $188,911 $165,371 $173,746 ======== ======== ======== ========
Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. RMBS, ABS and CMBS are shown separately, as they are not due at a single maturity. 60 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position.
December 31, 2014 December 31, 2013 ----------------------------------------- ----------------------------------------- Equal to or Greater Equal to or Greater Less than 12 Months than 12 Months Less than 12 Months than 12 Months -------------------- -------------------- -------------------- -------------------- Estimated Gross Estimated Gross Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Value Losses --------- ---------- --------- ---------- --------- ---------- --------- ---------- (In millions, except number of securities) Fixed maturity securities U.S. corporate................... $ 8,950 $ 260 $ 2,251 $ 161 $ 8,512 $ 426 $ 1,948 $ 267 U.S. Treasury and agency......... 3,933 6 982 13 10,077 687 33 7 Foreign corporate................ 7,052 397 1,165 114 4,217 176 952 109 RMBS............................. 3,141 63 1,900 160 8,194 291 1,675 227 ABS.............................. 3,147 45 732 37 1,701 28 530 88 CMBS............................. 772 20 461 13 2,022 74 221 15 State and political subdivision.. 26 -- 76 6 737 44 92 32 Foreign government............... 327 32 265 38 763 94 54 13 --------- ------ -------- ------ --------- -------- -------- ------ Total fixed maturity securities.................... $ 27,348 $ 823 $ 7,832 $ 542 $ 36,223 $ 1,820 $ 5,505 $ 758 ========= ====== ======== ====== ========= ======== ======== ====== Equity securities Common stock..................... $ 98 $ 26 $ 1 $ -- $ 37 $ 3 $ -- $ -- Non-redeemable preferred stock........................... 32 -- 139 30 222 41 125 36 --------- ------ -------- ------ --------- -------- -------- ------ Total equity securities........ $ 130 $ 26 $ 140 $ 30 $ 259 $ 44 $ 125 $ 36 ========= ====== ======== ====== ========= ======== ======== ====== Total number of securities in an unrealized loss position........ 1,997 642 2,211 469 ========= ======== ========= ========
Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities Evaluation and Measurement Methodologies Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management's evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the estimated fair value has been below cost or amortized cost; (ii) the potential for impairments when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments where the issuer, series of issuers or industry has suffered a catastrophic loss or has exhausted natural resources; (vi) with respect to fixed maturity securities, whether the Company has the intent to sell or 61 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (vii) with respect to structured securities, changes in forecasted cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security; (viii) the potential for impairments due to weakening of foreign currencies on non-functional currency denominated fixed maturity securities that are near maturity; and (ix) other subjective factors, including concentrations and information obtained from regulators and rating agencies. The methodology and significant inputs used to determine the amount of credit loss on fixed maturity securities are as follows: . The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security prior to impairment. . When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall impairment evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management's best estimates of likely scenario-based outcomes after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies. . Additional considerations are made when assessing the unique features that apply to certain structured securities including, but not limited to: the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, and the payment priority within the tranche structure of the security. . When determining the amount of the credit loss for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the estimated fair value is considered the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process as described above, as well as any private and public sector programs to restructure such securities. With respect to securities that have attributes of debt and equity (perpetual hybrid securities), consideration is given in the OTTI analysis as to whether there has been any deterioration in the credit of the issuer and the likelihood of recovery in value of the securities that are in a severe and extended unrealized loss position. Consideration is also given as to whether any perpetual hybrid securities, with an unrealized loss, regardless of credit rating, have deferred any dividend payments. When an OTTI loss has occurred, the OTTI loss is the 62 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) entire difference between the perpetual hybrid security's cost and its estimated fair value with a corresponding charge to earnings. The cost or amortized cost of fixed maturity and equity securities is adjusted for OTTI in the period in which the determination is made. The Company does not change the revised cost basis for subsequent recoveries in value. In periods subsequent to the recognition of OTTI on a fixed maturity security, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. Current Period Evaluation Based on the Company's current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company's current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company concluded that these securities were not other-than-temporarily impaired at December 31, 2014. Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), and changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods. Gross unrealized losses on fixed maturity securities decreased $1.2 billion during the year ended December 31, 2014 from $2.6 billion to $1.4 billion. The decrease in gross unrealized losses for the year ended December 31, 2014, was primarily attributable to a decrease in interest rates, partially offset by widening credit spreads. At December 31, 2014, $67 million of the total $1.4 billion of gross unrealized losses were from 27 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater. Investment Grade Fixed Maturity Securities Of the $67 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $24 million, or 36%, were related to gross unrealized losses on 12 investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase. Below Investment Grade Fixed Maturity Securities Of the $67 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $43 million, or 64%, were related to gross unrealized losses on 15 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to non-agency RMBS (primarily alternative residential mortgage 63 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) loans) and ABS (primarily foreign ABS) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainties including concerns over valuations of residential real estate supporting non-agency RMBS. Management evaluates non-agency RMBS and ABS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security. Equity Securities Gross unrealized losses on equity securities decreased $24 million during the year ended December 31, 2014 from $80 million to $56 million. Of the $56 million, $23 million were from six equity securities with gross unrealized losses of 20% or more of cost for 12 months or greater, all of which were financial services industry investment grade non-redeemable preferred stock, of which 26% were rated A or better. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at:
December 31, ---------------------------------------------- 2014 2013 --------------------- ----------------------- Carrying % of Carrying Value Total Value % of Total ------------- ------- ------------- ---------- (In millions) (In millions) Mortgage loans held-for-investment: Commercial......................................... $ 32,482 66.2% $ 33,072 71.9% Agricultural....................................... 11,033 22.5 11,025 24.0 Residential........................................ 5,494 11.2 1,858 4.0 --------- ------- --------- -------- Subtotal (1)..................................... 49,009 99.9 45,955 99.9 Valuation allowances............................... (258) (0.5) (272) (0.6) --------- ------- --------- -------- Subtotal mortgage loans held-for-investment, net. 48,751 99.4 45,683 99.3 Residential -- FVO................................. 308 0.6 338 0.7 --------- ------- --------- -------- Total mortgage loans held-for-investment, net.... 49,059 100.0 46,021 100.0 Mortgage loans held-for-sale....................... -- -- 3 -- --------- ------- --------- -------- Total mortgage loans, net........................ $ 49,059 100.0% $ 46,024 100.0% ========= ======= ========= ========
-------- (1)Purchases of mortgage loans were $4.7 billion and $2.2 billion for the years ended December 31, 2014 and 2013, respectively. 64 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment Mortgage loans held-for-investment by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at and for the years ended:
Evaluated Collectively Evaluated Individually for Credit Losses for Credit Losses Impaired Loans ------------------------------------------------------------------ --------------------- ------------------- Impaired Loans with a Valuation Impaired Loans without a Allowance Valuation Allowance -------------------------------------- --------------------------- Average Unpaid Principal Recorded Valuation Unpaid Principal Recorded Recorded Valuation Carrying Recorded Balance Investment Allowances Balance Investment Investment Allowances Value Investment ---------------- ---------- ---------- ---------------- ---------- ---------- ---------- -------- ---------- (In millions) December 31, 2014 Commercial........ $ 75 $ 75 $ 24 $ 84 $ 84 $ 32,323 $ 158 $ 135 $ 298 Agricultural...... 47 45 2 14 13 10,975 33 56 76 Residential....... -- -- -- 40 37 5,457 41 37 17 ------ ------ ----- ------ ------ --------- ------ ------ ------ Total............. $ 122 $ 120 $ 26 $ 138 $ 134 $ 48,755 $ 232 $ 228 $ 391 ====== ====== ===== ====== ====== ========= ====== ====== ====== December 31, 2013 Commercial........ $ 173 $ 169 $ 49 $ 247 $ 246 $ 32,657 $ 164 $ 366 $ 430 Agricultural...... 64 62 7 35 34 10,929 33 89 151 Residential....... -- -- -- 5 4 1,854 19 4 2 ------ ------ ----- ------ ------ --------- ------ ------ ------ Total............. $ 237 $ 231 $ 56 $ 287 $ 284 $ 45,440 $ 216 $ 459 $ 583 ====== ====== ===== ====== ====== ========= ====== ====== ======
The average recorded investment for commercial, agricultural and residential mortgage loans was $384 million, $201 million and $0, respectively, for the year ended December 31, 2012. Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows:
Commercial Agricultural Residential Total ---------- ------------ ----------- -------- (In millions) Balance at January 1, 2012..... $ 318 $ 75 $ -- $ 393 Provision (release)............ (50) 2 -- (48) Charge-offs, net of recoveries. (12) (24) -- (36) Transfers to held-for-sale..... -- (5) -- (5) -------- ------- ------- -------- Balance at December 31, 2012... 256 48 -- 304 Provision (release)............ (43) 3 19 (21) Charge-offs, net of recoveries. -- (11) -- (11) Transfers to held-for-sale..... -- -- -- -- -------- ------- ------- -------- Balance at December 31, 2013... 213 40 19 272 Provision (release)............ (8) (4) 27 15 Charge-offs, net of recoveries. (23) (1) (5) (29) Transfers to held-for-sale..... -- -- -- -- -------- ------- ------- -------- Balance at December 31, 2014... $ 182 $ 35 $ 41 $ 258 ======== ======= ======= ========
65 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) Valuation Allowance Methodology Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for all three portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan's original effective interest rate, (ii) the estimated fair value of the loan's underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan's observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for all loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company's experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. Commercial and Agricultural Mortgage Loan Portfolio Segments The Company typically uses several years of historical experience in establishing non-specific valuation allowances which captures multiple economic cycles. For evaluations of commercial mortgage loans, in addition to historical experience, management considers factors that include the impact of a rapid change to the economy, which may not be reflected in the loan portfolio, and recent loss and recovery trend experience as compared to historical loss and recovery experience. For evaluations of agricultural mortgage loans, in addition to historical experience, management considers factors that include increased stress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. On a quarterly basis, management incorporates the impact of these current market events and conditions on historical experience in determining the non-specific valuation allowance established for commercial and agricultural mortgage loans. All commercial mortgage loans are reviewed on an ongoing basis which may include an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios, and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher loan-to-value ratios and lower debt service coverage ratios. All agricultural mortgage loans are monitored on an ongoing basis. The monitoring process for agricultural mortgage loans is generally similar to the commercial mortgage loan monitoring process, with a focus on higher risk loans, including reviews on a geographic and property-type basis. Higher risk loans are reviewed individually on an ongoing basis for potential credit loss and specific valuation allowances are established using the methodology described above. Quarterly, the remaining loans are reviewed on a pool basis by aggregating groups of loans that have similar risk characteristics for potential credit loss, and non-specific valuation allowances are established as described above using inputs that are unique to each segment of the loan portfolio. For commercial mortgage loans, the primary credit quality indicator is the debt service coverage ratio, which compares a property's net operating income to amounts needed to service the principal and interest due 66 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) under the loan. Generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss. The Company also reviews the loan-to-value ratio of its commercial mortgage loan portfolio. Loan-to-value ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The debt service coverage ratio and loan-to-value ratio, as well as the values utilized in calculating these ratios, are updated annually, on a rolling basis, with a portion of the loan portfolio updated each quarter. For agricultural mortgage loans, the Company's primary credit quality indicator is the loan-to-value ratio. The values utilized in calculating this ratio are developed in connection with the ongoing review of the agricultural mortgage loan portfolio and are routinely updated. Residential Mortgage Loan Portfolio Segment The Company's residential mortgage loan portfolio is comprised primarily of closed end, amortizing residential mortgage loans. For evaluations of residential mortgage loans, the key inputs of expected frequency and expected loss reflect current market conditions, with expected frequency adjusted, when appropriate, for differences from market conditions and the Company's historical experience. In contrast to the commercial and agricultural mortgage loan portfolios, residential mortgage loans are smaller-balance homogeneous loans that are collectively evaluated for impairment. Non-specific valuation allowances are established using the evaluation framework described above for pools of loans with similar risk characteristics from inputs that are unique to the residential segment of the loan portfolio. Loan specific valuation allowances are only established on residential mortgage loans when they have been restructured and are established using the methodology described above for all loan portfolio segments. For residential mortgage loans, the Company's primary credit quality indicator is whether the loan is performing or nonperforming. The Company generally defines nonperforming residential mortgage loans as those that are 60 or more days past due and/or in non-accrual status which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss. 67 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) Credit Quality of Commercial Mortgage Loans The credit quality of commercial mortgage loans held-for-investment, were as follows at:
Recorded Investment ------------------------------------------------ Debt Service Coverage Ratios Estimated ------------------------------- % of Fair % of > 1.20x 1.00x - 1.20x < 1.00x Total Total Value Total --------- ------------- ------- --------- ------ ------------- ------ (In millions) (In millions) December 31, 2014 Loan-to-value ratios: Less than 65%......... $ 26,810 $ 746 $ 761 $ 28,317 87.2% $ 29,860 87.7% 65% to 75%............ 2,783 391 86 3,260 10.0 3,322 9.8 76% to 80%............ 109 -- 8 117 0.4 121 0.3 Greater than 80%...... 384 256 148 788 2.4 736 2.2 --------- -------- ------ --------- ------ --------- ------ Total................ $ 30,086 $ 1,393 $1,003 $ 32,482 100.0% $ 34,039 100.0% ========= ======== ====== ========= ====== ========= ====== December 31, 2013 Loan-to-value ratios: Less than 65%......... $ 24,585 $ 476 $ 596 $ 25,657 77.6% $ 26,900 78.4% 65% to 75%............ 5,219 438 104 5,761 17.4 5,852 17.1 76% to 80%............ 444 157 189 790 2.4 776 2.3 Greater than 80%...... 583 205 76 864 2.6 769 2.2 --------- -------- ------ --------- ------ --------- ------ Total................ $ 30,831 $ 1,276 $ 965 $ 33,072 100.0% $ 34,297 100.0% ========= ======== ====== ========= ====== ========= ======
Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans held-for-investment were as follows at:
December 31, --------------------------------------------- 2014 2013 ---------------------- ---------------------- Recorded % of Recorded % of Investment Total Investment Total ------------- -------- ------------- -------- (In millions) (In millions) Loan-to-value ratios: Less than 65%......... $ 10,462 94.8% $ 10,165 92.2% 65% to 75%............ 469 4.2 659 6.0 76% to 80%............ 17 0.2 84 0.8 Greater than 80%...... 85 0.8 117 1.0 --------- -------- --------- -------- Total................ $ 11,033 100.0% $ 11,025 100.0% ========= ======== ========= ========
The estimated fair value of agricultural mortgage loans held-for-investment was $11.4 billion and $11.3 billion at December 31, 2014 and 2013, respectively. 68 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) Credit Quality of Residential Mortgage Loans The credit quality of residential mortgage loans held-for-investment were as follows at:
December 31, --------------------------------------------- 2014 2013 -------------------- ------------------------ Recorded % of Recorded Investment Total Investment % of Total ------------- ------ ------------- ---------- (In millions) (In millions) Performance indicators: Performing.............. $ 5,345 97.3% $ 1,812 97.5% Nonperforming........... 149 2.7 46 2.5 -------- ------ -------- -------- Total.................. $ 5,494 100.0% $ 1,858 100.0% ======== ====== ======== ========
The estimated fair value of residential mortgage loans held-for-investment was $5.6 billion and $1.8 billion at December 31, 2014 and 2013, respectively. Past Due and Interest Accrual Status of Mortgage Loans The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both December 31, 2014 and 2013. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans -- 60 days and agricultural mortgage loans -- 90 days. The past due and accrual status of mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at:
Past Due Nonaccrual Status ----------------------------------- ----------------------------------- December 31, 2014 December 31, 2013 December 31, 2014 December 31, 2013 ----------------- ----------------- ----------------- ----------------- (In millions) Commercial... $ -- $ -- $ 75 $ 169 Agricultural. 1 44 41 47 Residential.. 149 46 149 46 ------ ----- ------ ------ Total....... $ 150 $ 90 $ 265 $ 262 ====== ===== ====== ======
Mortgage Loans Modified in a Troubled Debt Restructuring For a small portion of the mortgage loan portfolio, classified as troubled debt restructurings, concessions are granted related to borrowers experiencing financial difficulties. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concession granted is considered in determining any impairment or changes in the specific valuation allowance. During the years ended December 31, 2014 and 2013, the Company did not have a significant amount of mortgage loans modified in a troubled debt restructuring. 69 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) Other Invested Assets Other invested assets is comprised primarily of freestanding derivatives with positive estimated fair values (see Note 9), tax credit and renewable energy partnerships, loans to affiliates (see "-- Related Party Investment Transactions") and leveraged and direct financing leases. Leveraged and Direct Financing Leases Investment in leveraged and direct financing leases consisted of the following at:
December 31, --------------------------------------- 2014 2013 ------------------- ------------------- Direct Direct Leveraged Financing Leveraged Financing Leases Leases Leases Leases --------- --------- --------- --------- (In millions) Rental receivables, net........................... $ 1,320 $ 406 $ 1,393 $ 413 Estimated residual values......................... 827 57 853 52 -------- ------ -------- ------ Subtotal....................................... 2,147 463 2,246 465 Unearned income................................... (686) (178) (742) (177) -------- ------ -------- ------ Investment in leases, net of non-recourse debt. $ 1,461 $ 285 $ 1,504 $ 288 ======== ====== ======== ======
Rental receivables are generally due in periodic installments. The payment periods for leveraged leases range from one to 15 years but in certain circumstances can be over 30 years, while the payment periods for direct financing leases range from one to 22 years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. The Company generally defines nonperforming rental receivables as those that are 90 days or more past due. At December 31, 2014 and 2013, all leveraged lease receivables and direct financing rental receivables were performing. The deferred income tax liability related to leveraged leases was $1.3 billion and $1.4 billion at December 31, 2014 and 2013, respectively. The components of income from investments in leveraged and direct financing leases, excluding net investment gains (losses), were as follows:
Years Ended December 31, ----------------------------------------------------------- 2014 2013 2012 ------------------- ------------------- ------------------- Direct Direct Direct Leveraged Financing Leveraged Financing Leveraged Financing Leases Leases Leases Leases Leases Leases --------- --------- --------- --------- --------- --------- (In millions) Income from investment in leases...... $ 51 $ 19 $ 60 $ 17 $ 34 $ 15 Less: Income tax expense on leases.... 18 7 21 6 12 5 ------ ------ ------ ------ ------ ------ Investment income after income tax. $ 33 $ 12 $ 39 $ 11 $ 22 $ 10 ====== ====== ====== ====== ====== ======
70 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) Cash Equivalents The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $1.0 billion and $790 million at December 31, 2014 and 2013, respectively. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity and equity securities AFS and the effect on DAC, VOBA, DSI, future policy benefits and the policyholder dividend obligation, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI. The components of net unrealized investment gains (losses), included in AOCI, were as follows:
Years Ended December 31, ---------------------------- 2014 2013 2012 --------- -------- --------- (In millions) Fixed maturity securities.............................................. $ 15,374 $ 8,521 $ 19,120 Fixed maturity securities with noncredit OTTI losses in AOCI........... (66) (149) (256) --------- -------- --------- Total fixed maturity securities....................................... 15,308 8,372 18,864 Equity securities...................................................... 173 83 (13) Derivatives............................................................ 1,649 361 1,052 Short-term investments................................................. -- -- (2) Other.................................................................. 87 5 18 --------- -------- --------- Subtotal.............................................................. 17,217 8,821 19,919 --------- -------- --------- Amounts allocated from: Future policy benefits................................................ (1,964) (610) (5,120) DAC and VOBA related to noncredit OTTI losses recognized in AOCI................................................................ (3) 5 12 DAC, VOBA and DSI..................................................... (918) (721) (1,231) Policyholder dividend obligation...................................... (3,155) (1,771) (3,828) --------- -------- --------- Subtotal............................................................ (6,040) (3,097) (10,167) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI................................................... 25 51 86 Deferred income tax benefit (expense).................................. (3,928) (2,070) (3,498) --------- -------- --------- Net unrealized investment gains (losses).......................... 7,274 3,705 6,340 Net unrealized investment gains (losses) attributable to noncontrolling interests........................................ (1) (1) (1) --------- -------- --------- Net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company........................... $ 7,273 $ 3,704 $ 6,339 ========= ======== =========
71 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows:
Years Ended December 31, ---------------------------- 2014 2013 ------------- -------------- (In millions) Balance at January 1,................................... $ (149) $ (256) Noncredit OTTI losses and subsequent changes recognized. 10 47 Securities sold with previous noncredit OTTI loss....... 41 114 Subsequent changes in estimated fair value.............. 32 (54) ------------- -------------- Balance at December 31,................................. $ (66) $ (149) ============= ==============
The changes in net unrealized investment gains (losses) were as follows:
Years Ended December 31, -------------------------------- 2014 2013 2012 ---------- ---------- ---------- (In millions) Balance at January 1,................................................... $ 3,704 $ 6,339 $ 4,868 Fixed maturity securities on which noncredit OTTI losses have been recognized............................................................ 83 107 266 Unrealized investment gains (losses) during the year.................... 8,313 (11,205) 4,679 Unrealized investment gains (losses) relating to: Future policy benefits................................................. (1,354) 4,510 (1,625) DAC and VOBA related to noncredit OTTI losses recognized in AOCI................................................................. (8) (7) (21) DAC, VOBA and DSI...................................................... (197) 510 (129) Policyholder dividend obligation....................................... (1,384) 2,057 (909) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI............................................ (26) (35) (86) Deferred income tax benefit (expense).................................. (1,858) 1,428 (704) ---------- ---------- ---------- Net unrealized investment gains (losses)................................ 7,273 3,704 6,339 Net unrealized investment gains (losses) attributable to noncontrolling interests............................................................. -- -- -- ---------- ---------- ---------- Balance at December 31,................................................. $ 7,273 $ 3,704 $ 6,339 ========== ========== ========== Change in net unrealized investment gains (losses)................... $ 3,569 $ (2,635) $ 1,471 Change in net unrealized investment gains (losses) attributable to noncontrolling interests........................................... -- -- -- ---------- ---------- ---------- Change in net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company........................... $ 3,569 $ (2,635) $ 1,471 ========== ========== ==========
72 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company's equity, other than the U.S. government and its agencies, at both December 31, 2014 and 2013. Securities Lending Elements of the securities lending program are presented below at:
December 31, ----------------------- 2014 2013 ----------- ----------- (In millions) Securities on loan: (1) Amortized cost........................................ $ 19,099 $ 18,829 Estimated fair value.................................. $ 21,185 $ 19,153 Cash collateral on deposit from counterparties (2)..... $ 21,635 $ 19,673 Security collateral on deposit from counterparties (3). $ 19 $ -- Reinvestment portfolio -- estimated fair value......... $ 22,046 $ 19,822
-------- (1)Included within fixed maturity securities, short-term investments and equity securities. (2)Included within payables for collateral under securities loaned and other transactions. (3)Security collateral on deposit from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected in the consolidated financial statements. Invested Assets on Deposit and Pledged as Collateral Invested assets on deposit and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at:
December 31, ----------------------- 2014 2013 ----------- ----------- (In millions) Invested assets on deposit (regulatory deposits)............ $ 1,421 $ 1,338 Invested assets pledged as collateral (1)................... 20,712 19,555 ----------- ----------- Total invested assets on deposit and pledged as collateral. $ 22,133 $ 20,893 =========== ===========
-------- (1)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4), and derivative transactions (see Note 9). See "-- Securities Lending" for information regarding securities on loan and Note 7 for information regarding investments designated to the closed block. 73 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) Purchased Credit Impaired Investments Investments acquired with evidence of credit quality deterioration since origination and for which it is probable at the acquisition date that the Company will be unable to collect all contractually required payments are classified as purchased credit impaired ("PCI") investments. For each investment, the excess of the cash flows expected to be collected as of the acquisition date over its acquisition date fair value is referred to as the accretable yield and is recognized as net investment income on an effective yield basis. If subsequently, based on current information and events, it is probable that there is a significant increase in cash flows previously expected to be collected or if actual cash flows are significantly greater than cash flows previously expected to be collected, the accretable yield is adjusted prospectively. The excess of the contractually required payments (including interest) as of the acquisition date over the cash flows expected to be collected as of the acquisition date is referred to as the nonaccretable difference, and this amount is not expected to be realized as net investment income. Decreases in cash flows expected to be collected can result in OTTI. The Company's PCI fixed maturity securities were as follows at:
December 31, ------------------------- 2014 2013 ------------ ------------ (In millions) Outstanding principal and interest balance (1). $ 4,614 $ 4,653 Carrying value (2)............................. $ 3,651 $ 3,601
-------- (1)Represents the contractually required payments, which is the sum of contractual principal, whether or not currently due, and accrued interest. (2)Estimated fair value plus accrued interest. The following table presents information about PCI fixed maturity securities acquired during the periods indicated:
Years Ended December 31, ----------------------- 2014 2013 ---------- ------------ (In millions) Contractually required payments (including interest). $ 820 $ 1,612 Cash flows expected to be collected (1).............. $ 644 $ 1,248 Fair value of investments acquired................... $ 433 $ 841
-------- (1)Represents undiscounted principal and interest cash flow expectations, at the date of acquisition. 74 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) The following table presents activity for the accretable yield on PCI fixed maturity securities for:
Years Ended December 31, ------------------------- 2014 2013 ------------ ------------ (In millions) Accretable yield, January 1,........................ $ 2,431 $ 2,357 Investments purchased............................... 211 407 Accretion recognized in earnings.................... (217) (236) Disposals........................................... (47) (144) Reclassification (to) from nonaccretable difference. (495) 47 ------------ ------------ Accretable yield, December 31,...................... $ 1,883 $ 2,431 ============ ============
Collectively Significant Equity Method Investments The Company holds investments in real estate joint ventures, real estate funds and other limited partnership interests consisting of leveraged buy-out funds, hedge funds, private equity funds, joint ventures and other funds. The portion of these investments accounted for under the equity method had a carrying value of $9.9 billion at December 31, 2014. The Company's maximum exposure to loss related to these equity method investments is limited to the carrying value of these investments plus unfunded commitments of $2.7 billion at December 31, 2014. Except for certain real estate joint ventures, the Company's investments in real estate funds and other limited partnership interests are generally of a passive nature in that the Company does not participate in the management of the entities. As described in Note 1, the Company generally records its share of earnings in its equity method investments using a three-month lag methodology and within net investment income. Aggregate net investment income from these equity method investments exceeded 10% of the Company's consolidated pre-tax income (loss) from continuing operations for one of the three most recent annual periods: 2013. The Company is providing the following aggregated summarized financial data for such equity method investments, for the most recent annual periods, in order to provide comparative information. This aggregated summarized financial data does not represent the Company's proportionate share of the assets, liabilities, or earnings of such entities. The aggregated summarized financial data presented below reflects the latest available financial information and is as of, and for, the years ended December 31, 2014, 2013 and 2012. Aggregate total assets of these entities totaled $351.0 billion and $280.7 billion at December 31, 2014 and 2013, respectively. Aggregate total liabilities of these entities totaled $32.1 billion and $23.5 billion at December 31, 2014 and 2013, respectively. Aggregate net income (loss) of these entities totaled $33.7 billion, $25.0 billion and $16.5 billion for the years ended December 31, 2014, 2013 and 2012, respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses). Variable Interest Entities The Company has invested in certain structured transactions (including consolidated securitization entities ("CSEs")) that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. 75 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) The determination of the VIE's primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party's relationship with or involvement in the entity, an estimate of the entity's expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. The Company generally uses a qualitative approach to determine whether it is the primary beneficiary. However, for VIEs that are investment companies or apply measurement principles consistent with those utilized by investment companies, the primary beneficiary is based on a risks and rewards model and is defined as the entity that will absorb a majority of a VIE's expected losses, receive a majority of a VIE's expected residual returns if no single entity absorbs a majority of expected losses, or both. The Company reassesses its involvement with VIEs on a quarterly basis. The use of different methodologies, assumptions and inputs in the determination of the primary beneficiary could have a material effect on the amounts presented within the consolidated financial statements. Consolidated VIEs The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at December 31, 2014 and 2013. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company's obligation to the VIEs is limited to the amount of its committed investment.
December 31, --------------------------------------- 2014 2013 ------------------ -------------------- Total Total Total Total Assets Liabilities Assets Liabilities ------ ----------- -------- ----------- (In millions) Fixed maturity securities (1).................................. $ 163 $ 78 $ 159 $ 80 Other invested assets.......................................... 59 -- 82 7 Other limited partnership interests............................ 37 -- 61 -- CSEs (assets (primarily securities) and liabilities (primarily debt)) (2)................................................... 16 15 23 22 Real estate joint ventures (3)................................. 9 15 1,181 443 ------ ------ -------- ------ Total......................................................... $ 284 $ 108 $ 1,506 $ 552 ====== ====== ======== ======
-------- (1)The Company consolidates certain fixed maturity securities purchased in an investment vehicle which was partially funded with affiliated long-term debt. The long-term debt bears interest primarily at variable rates, payable on a bi-annual basis. Interest expense related to these obligations, included in other expenses, was $2 million for both the years ended December 31, 2014 and 2013 and was $1 million for the year ended December 31, 2012. (2)The Company consolidates entities that are structured as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company's exposure was limited to that of its remaining investment in these entities of less than $1 million at estimated fair value at both December 31, 2014 and 2013. The long-term debt bears interest primarily at variable rates, payable on a 76 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) bi-annual basis. Interest expense related to these obligations, included in other expenses, was $1 million, $3 million and $4 million for the years ended December 31, 2014, 2013 and 2012, respectively. (3)At December 31, 2013, the Company consolidated an open ended core real estate fund formed in the fourth quarter of 2013 (the "MetLife Core Property Fund"), which represented the majority of the balances at December 31, 2013. As a result of the quarterly reassessment in the first quarter of 2014, the Company no longer consolidated the MetLife Core Property Fund, effective March 31, 2014, based on the terms of the revised partnership agreement. The Company accounts for its retained interest in the real estate fund under the equity method. Assets of the real estate fund are a real estate investment trust which holds primarily traditional core income-producing real estate which has associated liabilities that are primarily non-recourse debt secured by certain real estate assets of the fund. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company's exposure was limited to that of its investment in the real estate fund of $178 million at carrying value at December 31, 2013. The long-term debt bears interest primarily at fixed rates ranging from 1.39% to 4.45%, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was less than $1 million for the year ended December 31, 2013. Unconsolidated VIEs The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:
December 31, ------------------------------------------- 2014 2013 --------------------- --------------------- Maximum Maximum Carrying Exposure Carrying Exposure Amount to Loss (1) Amount to Loss (1) --------- ----------- --------- ----------- (In millions) Fixed maturity securities AFS: Structured securities (RMBS, ABS and CMBS) (2). $ 44,302 $ 44,302 $ 40,910 $ 40,910 U.S. and foreign corporate..................... 1,919 1,919 2,251 2,251 Other limited partnership interests............. 3,722 4,833 3,168 4,273 Other invested assets........................... 1,683 2,003 1,498 1,852 Real estate joint ventures...................... 52 74 31 31 --------- --------- --------- --------- Total.......................................... $ 51,678 $ 53,131 $ 47,858 $ 49,317 ========= ========= ========= =========
-------- (1)The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments of the Company. For certain of its investments in other invested assets, the Company's return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded 77 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) commitments, reduced by income tax credits guaranteed by third parties of $212 million and $257 million at December 31, 2014 and 2013, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2)For these variable interests, the Company's involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. As described in Note 17, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during the years ended December 31, 2014, 2013 and 2012. Net Investment Income The components of net investment income were as follows:
Years Ended December 31, ----------------------- 2014 2013 2012 ------- ------- ------- (In millions) Investment income: Fixed maturity securities........................................... $ 8,260 $ 8,279 $ 8,295 Equity securities................................................... 86 78 68 Trading and FVO securities--Actively Traded and FVO general account securities (1).................................................... 23 43 77 Mortgage loans...................................................... 2,378 2,405 2,528 Policy loans........................................................ 448 440 451 Real estate and real estate joint ventures.......................... 725 699 593 Other limited partnership interests................................. 721 633 555 Cash, cash equivalents and short-term investments................... 26 32 19 Operating joint ventures............................................ 2 (4) (2) Other............................................................... 61 21 7 ------- ------- ------- Subtotal.......................................................... 12,730 12,626 12,591 Less: Investment expenses........................................... 838 844 743 ------- ------- ------- Subtotal, net..................................................... 11,892 11,782 11,848 ------- ------- ------- FVO CSEs--interest income: Securities.......................................................... 1 3 4 ------- ------- ------- Subtotal.......................................................... 1 3 4 ------- ------- ------- Net investment income........................................... $11,893 $11,785 $11,852 ======= ======= =======
-------- (1)Changes in estimated fair value subsequent to purchase for securities still held as of the end of the respective years included in net investment income were ($14) million, $4 million and $44 million for the years ended December 31, 2014, 2013 and 2012, respectively. See "-- Variable Interest Entities" for discussion of CSEs. See "-- Related Party Investment Transactions" for discussion of affiliated net investment income and investment expenses. 78 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows:
Years Ended December 31, -------------------------- 2014 2013 2012 ------- ------ -------- (In millions) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized -- by sector and industry: U.S. and foreign corporate securities -- by industry: Consumer.............................................................. $ (6) $ (12) $ (19) Utility............................................................... -- (48) (29) Finance............................................................... -- (4) (21) Communications........................................................ -- (2) (18) Industrial............................................................ -- -- (4) Transportation........................................................ -- -- (1) ------- ------ -------- Total U.S. and foreign corporate securities......................... (6) (66) (92) RMBS.................................................................... (20) (62) (70) CMBS.................................................................... -- -- (28) ABS..................................................................... -- -- (2) ------- ------ -------- OTTI losses on fixed maturity securities recognized in earnings..... (26) (128) (192) Fixed maturity securities -- net gains (losses) on sales and disposals.... (99) 177 16 ------- ------ -------- Total gains (losses) on fixed maturity securities....................... (125) 49 (176) ------- ------ -------- Total gains (losses) on equity securities: Total OTTI losses recognized -- by sector: Non-redeemable preferred stock.......................................... (16) (17) -- Common stock............................................................ (5) (2) (7) ------- ------ -------- OTTI losses on equity securities recognized in earnings............. (21) (19) (7) Equity securities -- net gains (losses) on sales and disposals............ 42 6 15 ------- ------ -------- Total gains (losses) on equity securities............................... 21 (13) 8 ------- ------ -------- Trading and FVO securities -- FVO general account securities.............. 1 11 11 Mortgage loans............................................................ (36) 31 84 Real estate and real estate joint ventures................................ 252 (15) (27) Other limited partnership interests....................................... (69) (41) (35) Other investment portfolio gains (losses)................................. (108) 5 (192) ------- ------ -------- Subtotal -- investment portfolio gains (losses)....................... (64) 27 (327) ------- ------ -------- FVO CSEs: Securities................................................................ -- 2 -- Long-term debt -- related to securities................................... (1) (2) (7) Non-investment portfolio gains (losses).................................... 208 21 4 ------- ------ -------- Subtotal FVO CSEs and non-investment portfolio gains (losses)......... 207 21 (3) ------- ------ -------- Total net investment gains (losses)................................. $ 143 $ 48 $ (330) ======= ====== ========
See "-- Variable Interest Entities" for discussion of CSEs. 79 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) See "-- Related Party Investment Transactions" for discussion of affiliated net investment gains (losses) related to transfers of invested assets to affiliates. Gains (losses) from foreign currency transactions included within net investment gains (losses) were $132 million, less than $1 million and $2 million for the years ended December 31, 2014, 2013 and 2012, respectively. Sales or Disposals and Impairments of Fixed Maturity and Equity Securities Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) are as shown in the table below. Investment gains and losses on sales of securities are determined on a specific identification basis.
Years Ended December 31, ----------------------------------------------- 2014 2013 2012 2014 2013 2012 -------- -------- -------- ------ ------ ------ Fixed Maturity Securities Equity Securities -------------------------- -------------------- (In millions) Proceeds....................... $ 44,906 $ 45,538 $ 29,472 $ 128 $ 144 $ 126 ======== ======== ======== ====== ====== ====== Gross investment gains......... $ 260 $ 556 $ 327 $ 46 $ 25 $ 23 Gross investment losses........ (359) (379) (311) (4) (19) (8) OTTI losses (1)................ (26) (128) (192) (21) (19) (7) -------- -------- -------- ------ ------ ------ Net investment gains (losses). $ (125) $ 49 $ (176) $ 21 $ (13) $ 8 ======== ======== ======== ====== ====== ======
-------- (1)OTTI losses recognized in earnings include noncredit-related impairment losses of $0, $13 million and $67 million for the years ended December 31, 2014, 2013 and 2012, respectively, on (i) perpetual hybrid securities classified within fixed maturity securities where the primary reason for the impairment was the severity and/or the duration of an unrealized loss position, and (ii) fixed maturity securities where there is an intent to sell or it is more likely than not that the Company will be required to sell the security before recovery of the decline in estimated fair value. 80 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) Credit Loss Rollforward The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in OCI:
Years Ended December 31, ----------------------------- 2014 2013 -------------- -------------- (In millions) Balance at January 1,.................................................. $ 277 $ 285 Additions: Initial impairments -- credit loss OTTI recognized on securities not previously impaired................................................. 1 4 Additional impairments -- credit loss OTTI recognized on securities previously impaired................................................. 15 54 Reductions: Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI........................................ (30) (65) Securities impaired to net present value of expected future cash flows............................................................... -- -- Increases in cash flows -- accretion of previous credit loss OTTI..... -- (1) -------------- -------------- Balance at December 31,................................................ $ 263 $ 277 ============== ==============
Related Party Investment Transactions The Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Invested assets transferred to and from affiliates were as follows:
Years Ended December 31, ----------------------- 2014 2013 2012 ------- -------- ------ (In millions) Estimated fair value of invested assets transferred to affiliates... $ 97 $ 781 $ 4 Amortized cost of invested assets transferred to affiliates......... $ 89 $ 688 $ 4 Net investment gains (losses) recognized on transfers............... $ 8 $ 93 $ -- Estimated fair value of invested assets transferred from affiliates. $ 882 $ 882 $ --
Prior to the Mergers, certain related party investment transactions were consummated as summarized below. See Note 6 for additional information on the Mergers. .. The Company had a loan outstanding to Exeter, an affiliate, totaling $75 million at December 31, 2013, which was included in other invested assets. MetLife USA assumed the loan upon the consummation of the Mergers in November 2014 and, subsequently, the loan matured on December 30, 2014. Net investment income from this loan was $5 million for each of the years ended December 31, 2014, 2013 and 2012. .. In July 2014, the Company purchased from other affiliates additional affiliated loans (having an unpaid principal balance of $400 million) at estimated fair value of $437 million, which are included in other 81 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 8. Investments (continued) invested assets and in the table above. The unpaid principal balances on these acquired loans, which bear interest at fixed rates payable semiannually are due as follows: $295 million due July 15, 2021 at 5.64% and $105 million due December 16, 2021 at 5.86%. .. In 2013, Metropolitan Life Insurance Company transferred invested assets to and from MICC of $751 million and $739 million, respectively, related to the establishment of a custodial account to secure certain policyholder liabilities, which is included in the table above. In December 2014, American Life Insurance Company, an affiliate, issued a surplus note to the Company, which was included in other invested assets, totaling $100 million. The loan, which bears interest at a fixed rate of 3.17%, payable semiannually, is due on June 30, 2020. The Company has affiliated loans outstanding to MetLife, Inc., which are included in other invested assets, totaling $2.0 billion and $1.5 billion at December 31, 2014 and 2013, respectively. The loans, which bear interest at a fixed rate, payable semiannually are due as follows: $500 million at 3.54% due on June 30, 2019, $250 million at 3.57% due on October 1, 2019, $250 million at 7.44% due on September 30, 2016, $150 million at 5.64% due July 15, 2021 and $375 million at 5.86% due December 16, 2021. Net investment income from these affiliated loans, and the $400 million of affiliated loans acquired in July 2014 described above, was $92 million, $90 million and $93 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company purchased from MetLife Bank, National Association, $1.5 billion and $1.3 billion of fixed maturity securities and mortgage loans, respectively, at estimated fair value, for cash during the year ended December 31, 2012. The Company provides investment administrative services to certain affiliates. The related investment administrative service charges to these affiliates were $179 million, $172 million and $158 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company also earned additional affiliated net investment income of $4 million for each of the years ended December 31, 2014, 2013 and 2012. 9. Derivatives Accounting for Derivatives See Note 1 for a description of the Company's accounting policies for derivatives and Note 10 for information about the fair value hierarchy for derivatives. Derivative Strategies The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. Derivatives are financial instruments whose values are derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter ("OTC") market. Certain of the Company's OTC derivatives are cleared and settled through central clearing counterparties ("OTC-cleared"), while others are bilateral contracts between two counterparties 82 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) ("OTC-bilateral"). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash market. Interest Rate Derivatives The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, caps, floors, swaptions, forwards and futures. Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and non-qualifying hedging relationships. The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. Treasury, agency, or other fixed maturity security. Structured interest rate swaps are included in interest rate swaps. Structured interest rate swaps are not designated as hedging instruments. The Company purchases interest rate caps and floors primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, as well as to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level, respectively. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in non-qualifying hedging relationships. Swaptions are used by the Company to hedge interest rate risk associated with the Company's long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in non-qualifying hedging relationships. Swaptions are included in interest rate options. The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow hedging relationships. To a lesser extent, the Company uses interest rate futures in non-qualifying hedging relationships. Foreign Currency Exchange Rate Derivatives The Company uses foreign currency exchange rate derivatives including foreign currency swaps, and foreign currency forwards to reduce the risk from fluctuations in foreign currency exchange rates associated with its 83 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) assets and liabilities denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and non-qualifying hedging relationships. In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in non-qualifying hedging relationships. Credit Derivatives The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations, repudiation, moratorium, involuntary restructuring or governmental intervention. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. ("ISDA") deems that a credit event has occurred. The Company utilizes credit default swaps in non-qualifying hedging relationships. The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. Treasury securities, agency securities or other fixed maturity securities. These credit default swaps are not designated as hedging instruments. The Company also enters into certain purchased and written credit default swaps held in relation to trading portfolios for the purpose of generating profits on short-term differences in price. These credit default swaps are not designated as hedging instruments. The Company enters into forwards to lock in the price to be paid for forward purchases of certain securities. The price is agreed upon at the time of the contract and payment for the contract is made at a specified future date. When the primary purpose of entering into these transactions is to hedge against the risk of changes in purchase price due to changes in credit spreads, the Company designates these as credit forwards. The Company utilizes credit forwards in cash flow hedging relationships. Equity Derivatives The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and total rate of return swaps ("TRRs"). 84 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of these contracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in non-qualifying hedging relationships. Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in non-qualifying hedging relationships. In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded equity futures in non-qualifying hedging relationships. TRRs are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and the LIBOR, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses TRRs to hedge its equity market guarantees in certain of its insurance products. TRRs can be used as hedges or to synthetically create investments. The Company utilizes TRRs in non-qualifying hedging relationships. 85 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) Primary Risks Managed by Derivatives The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company's derivatives, excluding embedded derivatives, held at:
December 31, -------------------------------------------------------------- 2014 2013 ------------------------------ ------------------------------- Estimated Fair Value Estimated Fair Value -------------------- -------------------- Gross Gross Notional Notional Primary Underlying Risk Exposure Amount Assets Liabilities Amount Assets Liabilities -------------------------------- --------- -------- ----------- ---------- -------- ----------- (In millions) Derivatives Designated as Hedging Instruments Fair value hedges: Interest rate swaps..... Interest rate.................... $ 5,632 $ 2,031 $ 18 $ 5,940 $ 1,277 $ 68 Foreign currency swaps.. Foreign currency exchange rate... 2,709 65 101 2,591 252 122 --------- -------- -------- ---------- -------- -------- Subtotal.............................................. 8,341 2,096 119 8,531 1,529 190 --------- -------- -------- ---------- -------- -------- Cash flow hedges: Interest rate swaps..... Interest rate.................... 2,191 447 -- 2,584 77 109 Interest rate forwards.. Interest rate.................... 70 18 -- 205 3 3 Foreign currency swaps.. Foreign currency exchange rate... 14,895 501 614 10,560 374 500 --------- -------- -------- ---------- -------- -------- Subtotal.............................................. 17,156 966 614 13,349 454 612 --------- -------- -------- ---------- -------- -------- Total qualifying hedges............................. 25,497 3,062 733 21,880 1,983 802 --------- -------- -------- ---------- -------- -------- Derivatives Not Designated or Not Qualifying as Hedging Instruments Interest rate swaps....... Interest rate.................... 56,394 2,213 1,072 59,022 1,320 732 Interest rate floors...... Interest rate.................... 36,141 319 108 38,220 323 234 Interest rate caps........ Interest rate.................... 41,227 134 1 29,809 141 -- Interest rate futures..... Interest rate.................... 70 -- -- 105 -- -- Interest rate options..... Interest rate.................... 6,399 379 15 4,849 120 8 Synthetic GICs............ Interest rate.................... 4,298 -- -- 4,409 -- -- Foreign currency swaps.... Foreign currency exchange rate... 8,774 359 176 7,267 79 492 Foreign currency forwards. Foreign currency exchange rate... 3,985 92 80 4,261 44 32 Credit default swaps -- purchased....... Credit........................... 857 8 11 1,506 7 21 Credit default swaps -- written.................. Credit........................... 7,419 130 5 6,600 124 1 Equity futures............ Equity market.................... 954 10 -- -- -- -- Equity index options...... Equity market.................... 7,698 328 352 1,147 -- -- Equity variance swaps..... Equity market.................... 5,678 60 146 -- -- -- TRRs...................... Equity market.................... 911 10 33 -- -- -- --------- -------- -------- ---------- -------- -------- Total non-designated or non-qualifying derivatives.... 180,805 4,042 1,999 157,195 2,158 1,520 --------- -------- -------- ---------- -------- -------- Total............................................... $ 206,302 $ 7,104 $ 2,732 $ 179,075 $ 4,141 $ 2,322 ========= ======== ======== ========== ======== ========
Based on gross notional amounts, a substantial portion of the Company's derivatives was not designated or did not qualify as part of a hedging relationship at both December 31, 2014 and 2013. The Company's use of derivatives includes (i) derivatives that serve as macro hedges of the Company's exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps that are used to synthetically 86 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) create credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these non-qualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged. Net Derivative Gains (Losses) The components of net derivative gains (losses) were as follows:
Years Ended December 31, ------------------------------- 2014 2013 2012 ----------- ------------ ------ (In millions) Derivatives and hedging gains (losses) (1). $ 1,207 $ (1,205) $ 77 Embedded derivatives....................... (170) 135 598 ----------- ------------ ------ Total net derivative gains (losses)....... $ 1,037 $ (1,070) $ 675 =========== ============ ======
-------- (1)Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedging relationships, which are not presented elsewhere in this note. The following table presents earned income on derivatives:
Years Ended December 31, -------------------------- 2014 2013 2012 -------- -------- -------- (In millions) Qualifying hedges: Net investment income.............................. $ 162 $ 129 $ 108 Interest credited to policyholder account balances. 106 148 146 Non-qualifying hedges: Net investment income.............................. (4) (6) (6) Net derivative gains (losses)...................... 484 450 314 Policyholder benefits and claims................... 8 -- -- -------- -------- -------- Total............................................ $ 756 $ 721 $ 562 ======== ======== ========
87 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) Non-Qualifying Derivatives and Derivatives for Purposes Other Than Hedging The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or qualifying as hedging instruments:
Net Net Policyholder Derivative Investment Benefits and Gains (Losses) Income (1) Claims (2) -------------- ---------- ------------ (In millions) Year Ended December 31, 2014 Interest rate derivatives.................. $ 314 $ -- $ -- Foreign currency exchange rate derivatives. 554 -- -- Credit derivatives -- purchased............ (2) -- -- Credit derivatives -- written.............. (1) -- -- Equity derivatives......................... 11 (10) (10) ------------ ---------- -------- Total.................................... $ 876 $ (10) $ (10) ============ ========== ======== Year Ended December 31, 2013 Interest rate derivatives.................. $ (1,753) $ -- $ -- Foreign currency exchange rate derivatives. (69) -- -- Credit derivatives -- purchased............ (6) (14) -- Credit derivatives -- written.............. 100 1 -- Equity derivatives......................... -- (22) -- ------------ ---------- -------- Total.................................... $ (1,728) $ (35) $ -- ============ ========== ======== Year Ended December 31, 2012 Interest rate derivatives.................. $ (83) $ -- $ -- Foreign currency exchange rate derivatives. (252) -- -- Credit derivatives -- purchased............ (72) (15) -- Credit derivatives -- written.............. 105 -- -- Equity derivatives......................... -- (12) -- ------------ ---------- -------- Total.................................... $ (302) $ (27) $ -- ============ ========== ========
-------- (1)Changes in estimated fair value related to economic hedges of equity method investments in joint ventures and derivatives held in relation to trading portfolios. (2)Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits. Fair Value Hedges The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities. 88 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses):
Net Derivative Net Derivative Ineffectiveness Gains (Losses) Gains (Losses) Recognized in Derivatives in Fair Value Hedged Items in Fair Value Recognized Recognized for Net Derivative Hedging Relationships Hedging Relationships for Derivatives Hedged Items Gains (Losses) ------------------------- ----------------------------------- --------------- -------------- --------------- (In millions) Year Ended December 31, 2014 Interest rate swaps: Fixed maturity securities.......... $ 4 $ (1) $ 3 Policyholder liabilities (1)....... 649 (635) 14 Foreign currency swaps: Foreign-denominated fixed maturity securities......................... 13 (11) 2 Foreign-denominated PABs (2)....... (283) 270 (13) -------------- ------------ ------------- Total..................................................... $ 383 $ (377) $ 6 ============== ============ ============= Year Ended December 31, 2013 Interest rate swaps: Fixed maturity securities.......... $ 34 $ (33) $ 1 Policyholder liabilities (1)....... (800) 807 7 Foreign currency swaps: Foreign-denominated fixed maturity securities......................... 13 (12) 1 Foreign-denominated PABs (2)....... (98) 112 14 -------------- ------------ ------------- Total..................................................... $ (851) $ 874 $ 23 ============== ============ ============= Year Ended December 31, 2012 Interest rate swaps: Fixed maturity securities.......... $ 2 $ (3) $ (1) Policyholder liabilities (1)....... (72) 89 17 Foreign currency swaps: Foreign-denominated fixed maturity securities......................... (1) 1 -- Foreign-denominated PABs (2)....... 32 (41) (9) -------------- ------------ ------------- Total..................................................... $ (39) $ 46 $ 7 ============== ============ =============
-------- (1)Fixed rate liabilities reported in PABs or future policy benefits. (2)Fixed rate or floating rate liabilities. All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. Cash Flow Hedges The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments; and (v) interest rate forwards to hedge forecasted fixed-rate borrowings. In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified certain amounts from AOCI into net derivative gains (losses). These amounts were ($14) million and $1 million for the years ended December 31, 2014 and 2012, respectively, and were not significant for the year ended December 31, 2013. 89 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) At December 31, 2014 and 2013, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed six years and seven years, respectively. At December 31, 2014 and 2013, the balance in AOCI associated with cash flow hedges was $1.6 billion and $361 million, respectively. The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and the consolidated statements of equity:
Amount and Location Amount and Location Amount of Gains of Gains (Losses) of Gains (Losses) Derivatives in Cash Flow (Losses) Deferred in Reclassified from Recognized in Income (Loss) Hedging Relationships AOCI on Derivatives AOCI into Income (Loss) on Derivatives ------------------------ -------------------- ----------------------------- --------------------------- (Effective Portion) (Effective Portion) (Ineffective Portion) - -------------------- ----------------------------- --------------------------- Net Derivative Net Investment Net Derivative Gains (Losses) Income Gains (Losses) -------------- -------------- --------------------------- (In millions) Year Ended December 31, 2014 Interest rate swaps...... $ 587 $ 41 $ 9 $ 3 Interest rate forwards... 34 (8) 2 -- Foreign currency swaps... (15) (725) (2) 2 Credit forwards.......... -- -- 1 -- -------------------- -------------- -------------- --------------------------- Total.................. $ 606 $ (692) $ 10 $ 5 ==================== ============== ============== =========================== Year Ended December 31, 2013 Interest rate swaps...... $ (511) $ 20 $ 8 $ (3) Interest rate forwards... (43) 1 2 -- Foreign currency swaps... (120) (15) (3) 2 Credit forwards.......... (3) -- 1 -- -------------------- -------------- -------------- --------------------------- Total.................. $ (677) $ 6 $ 8 $ (1) ==================== ============== ============== =========================== Year Ended December 31, 2012 Interest rate swaps...... $ (55) $ 3 $ 4 $ 1 Interest rate forwards... (1) -- 2 -- Foreign currency swaps... (187) (7) (5) (5) Credit forwards.......... -- -- 1 -- -------------------- -------------- -------------- --------------------------- Total.................. $ (243) $ (4) $ 2 $ (4) ==================== ============== ============== ===========================
All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. At December 31, 2014, $26 million of deferred net gains (losses) on derivatives in AOCI was expected to be reclassified to earnings within the next 12 months. Credit Derivatives In connection with synthetically created credit investment transactions and credit default swaps held in relation to the trading portfolio, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the non-qualifying derivatives and derivatives for purposes other than hedging table. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company's maximum amount at risk, assuming 90 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) the value of all referenced credit obligations is zero, was $7.4 billion and $6.6 billion at December 31, 2014 and 2013, respectively. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current fair value of the credit default swaps. At December 31, 2014 and 2013, the Company would have received $125 million and $123 million, respectively, to terminate all of these contracts. The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at:
December 31, ---------------------------------------------------------------------------------- 2014 2013 ----------------------------------------- ---------------------------------------- Estimated Maximum Estimated Maximum Fair Value Amount of Future Weighted Fair Value Amount of Future Weighted of Credit Payments under Average of Credit Payments under Average Rating Agency Designation of Default Credit Default Years to Default Credit Default Years to Referenced Credit Obligations (1) Swaps Swaps (2) Maturity (3) Swaps Swaps (2) Maturity (3) --------------------------------- ---------- ---------------- ------------ ---------- ---------------- ------------ (In millions) (In millions) Aaa/Aa/A Single name credit default swaps (corporate)............ $ 5 $ 415 2.2 $ 6 $ 395 2.6 Credit default swaps referencing indices.......... 10 1,566 2.7 20 2,089 1.6 ---------- ---------------- ---------- ---------------- Subtotal...................... 15 1,981 2.6 26 2,484 1.7 ---------- ---------------- ---------- ---------------- Baa Single name credit default swaps (corporate)............ 15 1,002 2.8 16 874 3.2 Credit default swaps referencing indices.......... 59 3,687 4.5 52 2,898 4.7 ---------- ---------------- ---------- ---------------- Subtotal...................... 74 4,689 4.1 68 3,772 4.4 ---------- ---------------- ---------- ---------------- Ba Single name credit default swaps (corporate)............ -- 60 3.0 -- 5 3.8 Credit default swaps referencing indices.......... (1) 100 2.0 -- -- -- ---------- ---------------- ---------- ---------------- Subtotal...................... (1) 160 2.4 -- 5 3.8 ---------- ---------------- ---------- ---------------- B Single name credit default swaps (corporate)............ -- -- -- -- -- -- Credit default swaps referencing indices.......... 37 589 4.9 29 339 4.9 ---------- ---------------- ---------- ---------------- Subtotal...................... 37 589 4.9 29 339 4.9 ---------- ---------------- ---------- ---------------- Total....................... $ 125 $ 7,419 3.8 $ 123 $ 6,600 3.4 ========== ================ ========== ================
-------- (1)The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody's Investors Service ("Moody's"), S&P and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used. 91 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) (2)Assumes the value of the referenced credit obligations is zero. (3)The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts. The Company has also entered into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. As a result, the maximum amounts of potential future recoveries available to offset the $7.4 billion and $6.6 billion from the table above were $60 million and $70 million at December 31, 2014 and 2013, respectively. Written credit default swaps held in relation to the trading portfolio amounted to $15 million and $10 million in gross notional amount and $1 million and $0 in fair value at December 31, 2014 and 2013, respectively. Credit Risk on Freestanding Derivatives The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to derivatives. Generally, the current credit exposure of the Company's derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company's OTC-bilateral derivative transactions are generally governed by ISDA Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. Substantially all of the Company's ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives. The Company's OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivatives. See Note 10 for a description of the impact of credit risk on the valuation of derivatives. 92 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) The estimated fair values of the Company's net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:
December 31, 2014 December 31, 2013 -------------------- -------------------- Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities ---------------------------------------------------------------------------- -------- ----------- -------- ----------- (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1).................................................... $ 6,497 $ 2,092 $ 4,026 $ 2,232 OTC-cleared (1)...................................................... 740 682 251 117 Exchange-traded...................................................... 10 -- -- -- -------- -------- -------- -------- Total gross estimated fair value of derivatives (1)................ 7,247 2,774 4,277 2,349 Amounts offset on the consolidated balance sheets..................... -- -- -- -- -------- -------- -------- -------- Estimated fair value of derivatives presented on the consolidated balance sheets (1)..................................... 7,247 2,774 4,277 2,349 Gross amounts not offset on the consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral........................................................ (1,742) (1,742) (1,844) (1,844) OTC-cleared.......................................................... (638) (638) (114) (114) Exchange-traded...................................................... -- -- -- -- Cash collateral: (3), (4) OTC-bilateral........................................................ (2,470) (2) (1,143) (3) OTC-cleared.......................................................... (97) (40) (128) (3) Exchange-traded...................................................... -- -- -- -- Securities collateral: (5) OTC-bilateral........................................................ (2,161) (333) (1,024) (319) OTC-cleared.......................................................... -- (3) -- -- Exchange-traded...................................................... -- -- -- -- -------- -------- -------- -------- Net amount after application of master netting agreements and collateral.......................................................... $ 139 $ 16 $ 24 $ 66 ======== ======== ======== ========
-------- (1)At December 31, 2014 and 2013, derivative assets include income or expense accruals reported in accrued investment income or in other liabilities of $143 million and $136 million, respectively, and derivative liabilities include income or expense accruals reported in accrued investment income or in other liabilities of $42 million and $27 million, respectively. (2)Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3)Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. In certain instances, cash collateral pledged to the Company as initial margin for OTC-bilateral derivatives is held in separate custodial accounts and is not recorded on the Company's balance sheet because the account 93 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) title is in the name of the counterparty (but segregated for the benefit of the Company). The amount of this off-balance sheet collateral was $138 million and $0 at December 31, 2014 and 2013, respectively. (4)The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2014 and 2013, the Company received excess cash collateral of $0 and $47 million, respectively, and provided excess cash collateral of $31 million and $3 million, respectively, which is not included in the table above due to the foregoing limitation. (5)Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2014 none of the collateral had been sold or re-pledged . Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At December 31, 2014 and 2013, the Company received excess securities collateral with an estimated fair value of $243 million and $106 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At December 31, 2014 and 2013, the Company provided excess securities collateral with an estimated fair value of $57 million and $25 million, respectively, for its OTC-bilateral derivatives, and $155 million and $106 million, respectively, for its OTC-cleared derivatives, and $17 million and $0 respectively, for its exchange- traded derivatives, which are not included in the table above due to the foregoing limitation. The Company's collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the fair value of that counterparty's derivatives reaches a pre-determined threshold. Certain of these arrangements also include financial strength-contingent provisions that provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the financial strength ratings of the Company and/or the credit ratings of the counterparty. In addition, certain of the Company's netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade financial strength or credit rating from each of Moody's and S&P. If a party's financial strength or credit ratings were to fall below that specific investment grade financial strength or credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party's reasonable valuation of the derivatives. The following table presents the estimated fair value of the Company's OTC-bilateral derivatives that are in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. The table also presents the incremental collateral that the Company would be required to provide if there was a one notch downgrade in the Company's financial strength rating at the reporting date or if the Company's financial strength rating sustained a downgrade to a level that 94 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) triggered full overnight collateralization or termination of the derivative position at the reporting date. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table.
Estimated Fair Value of Fair Value of Incremental Collateral Provided Collateral Provided Upon ----------------------- ---------------------------------------- Downgrade in the Company's Financial One Notch Strength Rating to a Estimated Downgrade in Level that Triggers Full Fair Value of the Company's Overnight Derivatives in Financial Collateralization or Net Liability Fixed Maturity Strength Termination Position (1) Securities Cash Rating of the Derivative Position -------------- -------------- ----- ------------- -------------------------- (In millions) December 31, 2014 Derivatives subject to financial strength- contingent provisions $ 334 $ 390 $ -- $ -- $ -- Derivatives not subject to financial strength- contingent provisions 4 -- 2 -- -- -------------- ---------- ----- ------------- ------------------ Total $ 338 $ 390 $ 2 $ -- $ -- ============== ========== ===== ============= ================== December 31, 2013 Derivatives subject to financial strength- contingent provisions $ 354 $ 344 $ -- $ -- $ 5 Derivatives not subject to financial strength- contingent provisions 4 -- 3 -- -- -------------- ---------- ----- ------------- ------------------ Total $ 358 $ 344 $ 3 $ -- $ 5 ============== ========== ===== ============= ==================
-------- (1)After taking into consideration the existence of netting agreements. Embedded Derivatives The Company issues certain products or purchases certain investments that contain embedded derivatives that are required to be separated from their host contracts and accounted for as freestanding derivatives. These host contracts principally include: variable annuities with guaranteed minimum benefits, including GMWBs, GMABs and certain GMIBs; affiliated ceded reinsurance of guaranteed minimum benefits related to GMWBs, GMABs and certain GMIBs; affiliated assumed reinsurance of guaranteed minimum benefits related to GMWBs, GMABs, and certain GMIBs; funds withheld on ceded reinsurance and affiliated funds withheld on ceded reinsurance; funding agreements with equity or bond indexed crediting rates; and certain debt and equity securities. 95 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 9. Derivatives (continued) The following table presents the estimated fair value and balance sheet location of the Company's embedded derivatives that have been separated from their host contracts at:
December 31, ---------------- Balance Sheet Location 2014 2013 -------------------------- ------- -------- (In millions) Net embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits... Premiums, reinsurance and other receivables......... $ 657 $ (62) Options embedded in debt or equity securities......................... Investments............... (150) (106) ------- -------- Net embedded derivatives within asset host contracts....... $ 507 $ (168) ======= ======== Net embedded derivatives within liability host contracts: Direct guaranteed minimum benefits.. PABs...................... $ (548) $ (868) Assumed guaranteed minimum benefits. PABs...................... 72 -- Funds withheld on ceded reinsurance. Other liabilities......... 1,200 758 Other............................... PABs...................... 7 4 ------- -------- Net embedded derivatives within liability host contracts... $ 731 $ (106) ======= ========
The following table presents changes in estimated fair value related to embedded derivatives:
Years Ended December 31, ---------------------------------- 2014 2013 2012 ------------ --------- ----------- (In millions) Net derivative gains (losses) (1), (2). $ (170) $ 135 $ 598
-------- (1)The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses), in connection with this adjustment, were $14 million, ($42) million and ($71) million for the years ended December 31, 2014, 2013 and 2012, respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were ($9) million, $125 million and $122 million for the years ended December 31, 2014, 2013 and 2012, respectively. (2)See Note 6 for discussion of affiliated net derivative gains (losses) included in the table above. Related Party Freestanding Derivative Transactions In November 2014, as part of the settlement of related party reinsurance transactions, the Company acquired derivatives from an affiliate. The estimated fair value of freestanding derivative assets and liabilities acquired were $740 million and $754 million, respectively. See Note 6 for additional information regarding related party reinsurance transactions in connection with the Mergers. 10. Fair Value When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most 96 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability. Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. The Company's ability to sell securities, or the price ultimately realized for these securities, depends upon the demand and liquidity in the market and increases the use of judgment in determining the estimated fair value of certain securities. Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. 97 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below.
December 31, 2014 -------------------------------------------------- Fair Value Hierarchy ---------------------------------- Total Estimated Level 1 Level 2 Level 3 Fair Value ---------- ------------ ---------- --------------- (In millions) Assets Fixed maturity securities: U.S. corporate............................................. $ -- $ 60,420 $ 4,937 $ 65,357 U.S. Treasury and agency................................... 21,625 17,445 -- 39,070 Foreign corporate.......................................... -- 26,227 3,591 29,818 RMBS....................................................... -- 24,534 3,629 28,163 ABS........................................................ -- 6,734 1,492 8,226 CMBS....................................................... -- 7,464 449 7,913 State and political subdivision............................ -- 6,520 -- 6,520 Foreign government......................................... -- 3,642 202 3,844 ---------- ------------ ---------- ------------ Total fixed maturity securities........................... 21,625 152,986 14,300 188,911 ---------- ------------ ---------- ------------ Equity securities: Common stock............................................... 584 716 52 1,352 Non-redeemable preferred stock............................. -- 550 163 713 ---------- ------------ ---------- ------------ Total equity securities................................... 584 1,266 215 2,065 ---------- ------------ ---------- ------------ Trading and FVO securities: Actively Traded Securities................................. 22 627 5 654 FVO general account securities............................. -- 22 14 36 FVO securities held by CSEs................................ -- 3 12 15 ---------- ------------ ---------- ------------ Total trading and FVO securities.......................... 22 652 31 705 ---------- ------------ ---------- ------------ Short-term investments (1)................................... 860 3,091 230 4,181 Residential mortgage loans -- FVO............................ -- -- 308 308 Derivative assets: (2) Interest rate............................................. -- 5,524 17 5,541 Foreign currency exchange rate............................ -- 1,010 7 1,017 Credit.................................................... -- 125 13 138 Equity market............................................. 10 279 119 408 ---------- ------------ ---------- ------------ Total derivative assets.................................. 10 6,938 156 7,104 ---------- ------------ ---------- ------------ Net embedded derivatives within asset host contracts (3)..... -- -- 657 657 Separate account assets (4).................................. 26,119 111,601 1,615 139,335 ---------- ------------ ---------- ------------ Total assets........................................... $ 49,220 $ 276,534 $ 17,512 $ 343,266 ========== ============ ========== ============ Liabilities Derivative liabilities: (2) Interest rate.............................................. $ -- $ 1,214 $ -- $ 1,214 Foreign currency exchange rate............................. -- 971 -- 971 Credit..................................................... -- 15 1 16 Equity market.............................................. -- 382 149 531 ---------- ------------ ---------- ------------ Total derivative liabilities.............................. -- 2,582 150 2,732 ---------- ------------ ---------- ------------ Net embedded derivatives within liability host contracts (3). -- 7 724 731 Long-term debt............................................... -- 82 35 117 Long-term debt of CSEs -- FVO................................ -- -- 13 13 Trading liabilities (5)...................................... 215 24 -- 239 ---------- ------------ ---------- ------------ Total liabilities...................................... $ 215 $ 2,695 $ 922 $ 3,832 ========== ============ ========== ============
98 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued)
December 31, 2013 ---------------------------------------------- Fair Value Hierarchy ------------------------------ Total Estimated Level 1 Level 2 Level 3 Fair Value --------- ---------- --------- --------------- (In millions) Assets Fixed maturity securities: U.S. corporate............................................. $ -- $ 58,960 $ 5,269 $ 64,229 U.S. Treasury and agency................................... 15,858 14,624 62 30,544 Foreign corporate.......................................... -- 25,558 3,198 28,756 RMBS....................................................... -- 22,197 2,513 24,710 ABS........................................................ -- 5,298 2,526 7,824 CMBS....................................................... -- 7,946 430 8,376 State and political subdivision............................ -- 5,777 -- 5,777 Foreign government......................................... -- 3,256 274 3,530 --------- ---------- --------- ----------- Total fixed maturity securities........................... 15,858 143,616 14,272 173,746 --------- ---------- --------- ----------- Equity securities: Common stock............................................... 361 753 50 1,164 Non-redeemable preferred stock............................. -- 450 278 728 --------- ---------- --------- ----------- Total equity securities................................... 361 1,203 328 1,892 --------- ---------- --------- ----------- Trading and FVO securities: Actively Traded Securities................................. 2 648 12 662 FVO general account securities -- 24 14 38 FVO securities held by CSEs -- 23 -- 23 --------- ---------- --------- ----------- Total trading and FVO securities.......................... 2 695 26 723 --------- ---------- --------- ----------- Short-term investments (1)................................... 1,387 4,224 175 5,786 Residential mortgage loans -- FVO............................ -- -- 338 338 Derivative assets: (2) Interest rate............................................. -- 3,258 3 3,261 Foreign currency exchange rate............................ -- 735 14 749 Credit.................................................... -- 108 23 131 Equity market............................................. -- -- -- -- --------- ---------- --------- ----------- Total derivative assets................................. -- 4,101 40 4,141 --------- ---------- --------- ----------- Net embedded derivatives within asset host contracts (3)..... -- -- (62) (62) Separate account assets (4).................................. 28,422 105,165 1,209 134,796 --------- ---------- --------- ----------- Total assets............................................ $ 46,030 $ 259,004 $ 16,326 $ 321,360 ========= ========== ========= =========== Liabilities Derivative liabilities: (2) Interest rate.............................................. $ -- $ 1,150 $ 4 $ 1,154 Foreign currency exchange rate............................. -- 1,146 -- 1,146 Credit..................................................... -- 22 -- 22 Equity market.............................................. -- -- -- -- --------- ---------- --------- ----------- Total derivative liabilities.............................. -- 2,318 4 2,322 --------- ---------- --------- ----------- Net embedded derivatives within liability host contracts (3). -- 4 (110) (106) Long-term debt............................................... -- 79 43 122 Long-term debt of CSEs -- FVO................................ -- -- 28 28 Trading liabilities (5)...................................... 260 2 -- 262 --------- ---------- --------- ----------- Total liabilities...................................... $ 260 $ 2,403 $ (35) $ 2,628 ========= ========== ========= ===========
-------- (1)Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis. 99 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) (2)Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (3)Net embedded derivatives within asset host contracts are presented primarily within premiums, reinsurance and other receivables on the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented within PABs and other liabilities on the consolidated balance sheets. At December 31, 2014 and 2013, equity securities also included embedded derivatives of ($150) million and ($106) million, respectively. (4)Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. (5)Trading liabilities are presented within other liabilities on the consolidated balance sheets. The following describes the valuation methodologies used to measure assets and liabilities at fair value. The description includes the valuation techniques and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy. Investments Valuation Controls and Procedures On behalf of the Company and MetLife, Inc.'s Chief Investment Officer and Chief Financial Officer, a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management, provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a quarterly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible, and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. This committee also provides oversight of the selection of independent third party pricing providers and the controls and procedures to evaluate third party pricing. Periodically, the Chief Accounting Officer reports to the Audit Committees of Metropolitan Life Insurance Company's and MetLife, Inc.'s Boards of Directors regarding compliance with fair value accounting standards. The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management's knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services 100 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as "consensus pricing," represent a reasonable estimate of fair value by considering such pricing relative to the Company's knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent less than 1% of the total estimated fair value of fixed maturity securities and 9% of the total estimated fair value of Level 3 fixed maturity securities. The Company also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value, which reflect internal estimates of liquidity and nonperformance risks, compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of the portfolio; accordingly, overrides were not material. This is, in part, because internal estimates of liquidity and nonperformance risks are generally based on available market evidence and estimates used by other market participants. In the absence of such market-based evidence, management's best estimate is used. Securities, Short-term Investments, Long-term Debt, Long-term Debt of CSEs -- FVO, and Trading Liabilities When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company's securities holdings and valuation of these securities does not involve management's judgment. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based in large part on management's judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances. The estimated fair value of FVO securities held by CSEs, long-term debt, long-term debt of CSEs -- FVO, and trading liabilities is determined on a basis consistent with the methodologies described herein for securities. 101 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) The valuation of most instruments listed below are determined using independent pricing sources, matrix pricing, discounted cash flow methodologies or other similar techniques that use either observable market inputs or unobservable inputs.
Level 2 Level 3 Instrument Observable Inputs Unobservable Inputs -------------------------------------------------------------------------------------------------------------------------------- Fixed Maturity Securities -------------------------------------------------------------------------------------------------------------------------------- U.S. corporate and foreign corporate securities -------------------------------------------------------------------------------------------------------------------------------- Valuation Techniques: Principally the Valuation Techniques: Principally the market and income approaches. market approach. Key Inputs: Key Inputs: . quoted prices in markets that are not active . illiquidity premium . benchmark yields . delta spread adjustments to reflect specific credit-related issues . spreads off benchmark yields . credit spreads . new issuances . quoted prices in markets that are not . issuer rating active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in . duration Level 2 . trades of identical or comparable . independent non-binding broker securities quotations . Privately-placed securities are valued using the additional key inputs: . market yield curve . call provisions . observable prices and spreads for similar publicly traded or privately traded securities that incorporate the credit quality and industry sector of the issuer . delta spread adjustments to reflect specific credit-related issues -------------------------------------------------------------------------------------------------------------------------------- U.S. Treasury and agency, State and political subdivision and Foreign government securities -------------------------------------------------------------------------------------------------------------------------------- Valuation Techniques: Principally the Valuation Techniques: Principally the market approach. market approach. Key Inputs: Key Inputs: . quoted prices in markets that are not . independent non-binding broker active quotations . quoted prices in markets that are not active for identical or similar . benchmark U.S. Treasury yield or other securities that are less liquid and yields based on lower levels of trading . the spread off the U.S. Treasury yield activity than securities classified in curve for the identical security Level 2 . issuer ratings and issuer spreads . credit spreads . broker-dealer quotes . comparable securities that are actively traded . reported trades of similar securities, including those that are actively traded, and those within the same sub-sector or with a similar maturity or credit rating -------------------------------------------------------------------------------------------------------------------------------- Structured securities comprised of RMBS, ABS and CMBS -------------------------------------------------------------------------------------------------------------------------------- Valuation Techniques: Principally the Valuation Techniques: Principally the market and income approaches. market and income approaches. Key Inputs: Key Inputs: . quoted prices in markets that are not active . credit spreads . spreads for actively traded securities . quoted prices in markets that are not . spreads off benchmark yields active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 . expected prepayment speeds and volumes . independent non-binding broker . current and forecasted loss severity quotations . ratings . weighted average coupon and weighted average maturity . average delinquency rates . geographic region . debt-service coverage ratios . issuance-specific information, including, but not limited to: . collateral type . payment terms of the underlying assets . payment priority within the tranche . structure of the security . deal performance . vintage of loans
102 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued)
Instrument Level 2 Level 3 -------------------------------------------------------------------------------------------------------------------------------- Equity Securities -------------------------------------------------------------------------------------------------------------------------------- Common and non-redeemable preferred stock -------------------------------------------------------------------------------------------------------------------------------- Valuation Techniques: Principally the Valuation Techniques: Principally the market approach. market and income approaches. Key Input: . quoted prices in markets that are not considered active Key Inputs: . credit ratings . issuance structures . quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 . independent non-binding broker quotations -------------------------------------------------------------------------------------------------------------------------------- Trading and FVO securities and Short-term investments -------------------------------------------------------------------------------------------------------------------------------- . Trading and FVO securities and . Trading and FVO securities and short-term investments are of a short-term investments are of a similar nature and class to the fixed similar nature and class to the fixed maturity and equity securities maturity and equity securities described above; accordingly, the described above; accordingly, the valuation techniques and observable valuation techniques and unobservable inputs used in their valuation are inputs used in their valuation are also similar to those described above. also similar to those described above. -------------------------------------------------------------------------------------------------------------------------------- Mortgage Loans -- FVO -------------------------------------------------------------------------------------------------------------------------------- Residential mortgage loans -- FVO -------------------------------------------------------------------------------------------------------------------------------- . N/A Valuation Techniques: Principally the market approach, including matrix pricing or other similar techniques. Key Inputs: Inputs that are unobservable or cannot be derived principally from, or corroborated by, observable market data -------------------------------------------------------------------------------------------------------------------------------- Separate Account Assets (1) -------------------------------------------------------------------------------------------------------------------------------- Mutual funds and hedge funds without readily determinable fair values as prices are not published publicly -------------------------------------------------------------------------------------------------------------------------------- Key Input: . quoted prices or reported NAV provided . N/A by the fund managers -------------------------------------------------------------------------------------------------------------------------------- Other limited partnership interests -------------------------------------------------------------------------------------------------------------------------------- . N/A Valuation Techniques: Valued giving consideration to the underlying holdings of the partnerships and by applying a premium or discount, if appropriate. Key Inputs: . liquidity . bid/ask spreads . the performance record of the fund manager . other relevant variables that may impact the exit value of the particular partnership interest
-------- (1)Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under "-- Securities, Short-term Investments, Other Investments, Long-term Debt of CSEs -- FVO, and Trading Liabilities" and "-- Derivatives -- Freestanding Derivatives Valuation Techniques and Key Inputs." Derivatives The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market 103 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The valuation controls and procedures for derivatives are described in "-- Investments." The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company's derivatives and could materially affect net income. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company's ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. Freestanding Derivatives Valuation Techniques and Key Inputs Level 2 This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3. Level 3 These valuation methodologies generally use the same inputs as described in the corresponding sections for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. 104 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. Key inputs are as follows:
Instrument Interest Rate Foreign Currency Exchange Rate ------------------------------------------------------------------------------------------------------------- Inputs common to Level 2 and Level 3 . swap yield curve swap yield curve by instrument type . basis curves basis curves . interest rate volatility (2) currency spot rates cross currency basis curves ------------------------------------------------------------------------------------------------------------- Level 3 . swap yield curve (1) swap yield curve (1) . basis curves (1) basis curves (1) cross currency basis curves (1) currency correlation
Instrument Interest Rate Credit --------------------------------------------------------------------------------------------------------- Inputs common to Level 2 and Level 3 . swap yield curve swap yield curve by instrument type . basis curves credit curves . interest rate volatility (2) recovery rates --------------------------------------------------------------------------------------------------------- Level 3 . swap yield curve (1) swap yield curve (1) . basis curves (1) credit curves (1) credit spreads repurchase rates independent non-binding broker quotations
Instrument Interest Rate Equity market ---------------------------------------------------------------------------------------------------------- Inputs common to Level 2 and Level 3 . swap yield curve swap yield curve by instrument type . basis curves spot equity index levels . interest rate volatility (2) dividend yield curves equity volatility ---------------------------------------------------------------------------------------------------------- Level 3 . swap yield curve (1) dividend yield curves (1) . basis curves (1) equity volatility (1) correlation between model inputs (2)
-------- (1)Extrapolation beyond the observable limits of the curve(s). (2)Option-based only. Embedded Derivatives Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, certain affiliated ceded reinsurance agreements related to such variable annuity guarantees, equity or bond indexed crediting rates within certain funding agreements and those related to ceded funds withheld on reinsurance. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within PABs on the consolidated balance sheets. The Company's actuarial department calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into 105 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.'s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries compared to MetLife, Inc. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. The Company ceded the risk associated with certain of the GMIBs, GMABs and GMWBs previously described. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also ceded directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives) but where the reinsurance agreement contains an embedded derivative. These embedded derivatives are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as previously described in "-- Investments -- Securities, Short-term Investments, Long-term Debt of CSEs -- FVO, and Trading Liabilities." The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. The estimated fair value of the embedded equity and bond indexed derivatives contained in certain funding agreements is determined using market standard swap valuation models and observable market inputs, including a nonperformance risk adjustment. The estimated fair value of these embedded derivatives are included, along with their funding agreements host, within PABs with changes in estimated fair value recorded in net derivative gains (losses). Changes in equity and bond indices, interest rates and the Company's credit standing may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. 106 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) Embedded Derivatives Within Asset and Liability Host Contracts Level 3 Valuation Techniques and Key Inputs: Direct and assumed guaranteed minimum benefits These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curve, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curve and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin. Reinsurance ceded on certain guaranteed minimum benefits These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in "-- Direct and assumed guaranteed minimum benefits" and also include counterparty credit spreads. Embedded derivatives within funds withheld related to certain ceded reinsurance These embedded derivatives are principally valued using the income approach. The valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve and the fair value of assets within the reference portfolio. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include the fair value of certain assets within the reference portfolio which are not observable in the market and cannot be derived principally from, or corroborated by, observable market data. Transfers between Levels Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period. Transfers between Levels 1 and 2: For assets and liabilities measured at estimated fair value and still held at December 31, 2014, there were no transfers between Levels 1 and 2. For assets and liabilities measured at estimated fair value and still held at December 31, 2013, transfers between Levels 1 and 2 were not significant. Transfers into or out of Level 3: Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot 107 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Transfers into Level 3 for fixed maturity securities and separate account assets were due primarily to a lack of trading activity, decreased liquidity and credit ratings downgrades (e.g., from investment grade to below investment grade) which have resulted in decreased transparency of valuations and an increased use of independent non-binding broker quotations and unobservable inputs, such as illiquidity premiums, delta spread adjustments, or credit spreads. Transfers out of Level 3 for fixed maturity securities, equity securities and separate account assets resulted primarily from increased transparency of both new issuances that, subsequent to issuance and establishment of trading activity, became priced by independent pricing services and existing issuances that, over time, the Company was able to obtain pricing from, or corroborate pricing received from, independent pricing services with observable inputs (such as observable spreads used in pricing securities) or increases in market activity and upgraded credit ratings. 108 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at:
December 31, 2014 -------------------------- Valuation Significant Weighted Techniques Unobservable Inputs Range Average (1) ------------------------- ----------------------- ------------- ----------- Fixed maturity securities (3) U.S. corporate and foreign Delta spread (40) - 240 39 corporate................... Matrix pricing adjustments (4) Offered quotes (5) 64 - 130 96 Market pricing Quoted prices (5) - - 590 126 Consensus pricing Offered quotes (5) 98 - 126 101 --------------------------------------------------------------------------------- RMBS Market pricing Quoted prices (5) 22 - 120 97 Consensus pricing Offered quotes (5) 1 - 118 93 --------------------------------------------------------------------------------- ABS.......................... Market pricing Quoted prices (5) 15 - 110 100 Consensus pricing Offered quotes (5) 56 - 106 98 --------------------------------------------------------------------------------- Derivatives Interest rate Present value Swap yield (7) techniques 290 - 290 --------------------------------------------------------------------------------- Foreign currency exchange Present value Swap yield (7) rate techniques - - - Correlation (8) 40% - 55% --------------------------------------------------------------------------------- Credit........................ Present value Credit spreads (9) techniques 98 - 100 Consensus pricing Offered quotes (10) --------------------------------------------------------------------------------- Equity market................. Present value Volatility (12) techniques or option pricing models 15% - 27% Correlation (8) 70% - 70% --------------------------------------------------------------------------------- Embedded derivatives Direct and ceded guaranteed Option pricing Mortality rates: minimum benefits............. techniques Ages 0 - 40 0% - 0.10% Ages 41 - 60 0.04% - 0.65% Ages 61 - 115 0.26% - 100% Lapse rates: Durations 1 - 10 0.50% - 100% Durations 11 - 20 3% - 100% Durations 21 - 116 3% - 100% Utilization rates 20% - 50% Withdrawal rates 0.07% - 10% Long-term equity 17.40% - 25% volatilities Nonperformance risk 0.03% - 0.46% spread
Impact of December 31, 2013 Increase in -------------------------- Input on Valuation Significant Weighted Estimated Techniques Unobservable Inputs Range Average (1) Fair Value (2) ------------------------- ----------------------- ------------- ----------- -------------- Fixed maturity securities (3) U.S. corporate and foreign Delta spread (10) - 240 38 Decrease corporate................... Matrix pricing adjustments (4) Offered quotes (5) 4 - 104 100 Increase Market pricing Quoted prices (5) - - 277 122 Increase Consensus pricing Offered quotes (5) 33 - 140 98 Increase ------------------------------------------------------------------------------------------------ RMBS Market pricing Quoted prices (5) 22 - 100 98 Increase (6) Consensus pricing Offered quotes (5) 69 - 101 93 Increase (6) ------------------------------------------------------------------------------------------------ ABS.......................... Market pricing Quoted prices (5) - - 106 101 Increase (6) Consensus pricing Offered quotes (5) 56 - 106 98 Increase (6) ------------------------------------------------------------------------------------------------ Derivatives Interest rate Present value Swap yield (7) techniques 401 - 450 Increase (11) ------------------------------------------------------------------------------------------------ Foreign currency exchange Present value Swap yield (7) rate techniques 580 - 767 Increase (11) Correlation (8) 38% - 47% ------------------------------------------------------------------------------------------------ Credit........................ Present value Credit spreads (9) techniques 98 - 101 Decrease (9) Consensus pricing Offered quotes (10) ------------------------------------------------------------------------------------------------ Equity market................. Present value Volatility (12) techniques or option pricing models - - - Increase (11) Correlation (8) - - - ------------------------------------------------------------------------------------------------ Embedded derivatives Direct and ceded guaranteed Option pricing Mortality rates: minimum benefits............. techniques Ages 0 - 40 0% - 0.10% Decrease (13) Ages 41 - 60 0.04% - 0.65% Decrease (13) Ages 61 - 115 0.26% - 100% Decrease (13) Lapse rates: Durations 1 - 10 0.50% - 100% Decrease (14) Durations 11 - 20 3% - 100% Decrease (13) Durations 21 - 116 3% - 100% Decrease (14) Utilization rates 20% - 50% Increase (15) Withdrawal rates 0.07% - 10% (16) Long-term equity 17.40% - 25% Increase (17) volatilities Nonperformance risk 0.03% - 0.44% Decrease (18) spread
-------- (1)The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2)The impact of a decrease in input would have the opposite impact on the estimated fair value. For embedded derivatives, changes to direct guaranteed minimum benefits are based on liability positions and changes to ceded guaranteed minimum benefits are based on asset positions. (3)Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. 109 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) (4)Range and weighted average are presented in basis points. (5)Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (6)Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (7)Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curve is utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (8)Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. (9)Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (10)At both December 31, 2014 and 2013, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. (11)Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (12)Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (13)Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (14)Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (15)The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract's withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. 110 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) (16)The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (17)Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (18)Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement of assets and liabilities classified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3, including those within separate account assets and embedded derivatives within funds withheld related to certain ceded reinsurance, use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations. The residential mortgage loans -- FVO, long-term debt , and long-term debt of CSEs -- FVO are valued using independent non-binding broker quotations and internal models including matrix pricing and discounted cash flow methodologies using current interest rates. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table. The valuation techniques and significant unobservable inputs used in the fair value measurement for the more significant assets measured at estimated fair value on a nonrecurring basis and determined using significant unobservable inputs (Level 3) are summarized in "-- Nonrecurring Fair Value Measurements." 111 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3):
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) -------------------------------------------------------------------- Fixed Maturity Securities -------------------------------------------------------------------- U.S. U.S. Treasury Foreign Foreign Corporate and Agency Corporate RMBS ABS CMBS Government --------- ---------- --------- -------- -------- -------- ---------- (In millions) Year Ended December 31, 2014 Balance at January 1,.................... $ 5,269 $ 62 $ 3,198 $ 2,513 $ 2,526 $ 430 $ 274 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2) Net investment income................. 3 -- 2 42 6 (1) -- Net investment gains (losses)......... (6) -- (4) 5 (40) -- (49) Net derivative gains (losses)......... -- -- -- -- -- -- -- OCI.................................... 274 -- (56) 67 35 1 22 Purchases (3)............................ 1,027 -- 736 1,528 1,029 183 -- Sales (3)................................ (925) -- (229) (542) (725) (39) (115) Issuances (3)............................ -- -- -- -- -- -- -- Settlements (3).......................... -- -- -- -- -- -- -- Transfers into Level 3 (4)............... 87 -- 119 45 34 5 70 Transfers out of Level 3 (4)............. (792) (62) (175) (29) (1,373) (130) -- -------- ---------- -------- -------- -------- -------- ---------- Balance at December 31,.................. $ 4,937 $ -- $ 3,591 $ 3,629 $ 1,492 $ 449 $ 202 ======== ========== ======== ======== ======== ======== ========== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income.................. $ -- $ -- $ 2 $ 43 $ 1 $ (1) $ 1 Net investment gains (losses).......... $ (6) $ -- $ -- $ (1) $ -- $ -- $ -- Net derivative gains (losses).......... $ -- $ -- $ -- $ -- $ -- $ -- $ --
112 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) -------------------------------------------------------------------------------------- Equity Securities Trading and FVO Securities ------------------ -------------------------------- Non- FVO FVO redeemable Actively General Securities Residential Separate Common Preferred Traded Account Held by Short-term Mortgage Account Stock Stock Securities Securities CSEs Investments Loans - FVO Assets (6) ------- ---------- ---------- ---------- ---------- ----------- ----------- ---------- (In millions) Year Ended December 31, 2014 Balance at January 1,............ $ 50 $ 278 $ 12 $ 14 $ -- $ 175 $ 338 $ 1,209 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2) Net investment income......... -- -- -- -- -- 1 20 -- Net investment gains (losses)..................... 4 3 -- -- -- (2) -- 102 Net derivative gains (losses)..................... -- -- -- -- -- -- -- -- OCI............................ -- 2 -- -- -- -- -- -- Purchases (3).................... 19 -- 5 -- -- 230 124 527 Sales (3)........................ (21) (38) (7) -- (1) (156) (120) (376) Issuances (3).................... -- -- -- -- -- -- -- 81 Settlements (3).................. -- -- -- -- -- -- (54) (28) Transfers into Level 3 (4)....... -- -- -- -- 13 -- -- 144 Transfers out of Level 3 (4)..... -- (82) (5) -- -- (18) -- (44) ------- -------- ------ ------- ------ -------- ------- -------- Balance at December 31,.......... $ 52 $ 163 $ 5 $ 14 $ 12 $ 230 $ 308 $ 1,615 ======= ======== ====== ======= ====== ======== ======= ======== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income.......... $ -- $ -- $ -- $ -- -- $ -- 20 $ -- Net investment gains (losses).. $ (2) $ (3) $ -- $ -- -- $ -- -- $ -- Net derivative gains (losses).. $ -- $ -- $ -- $ -- -- $ -- -- $ --
113 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ------------------------------------------------------------------------ Net Derivatives (7) ------------------------------------ Foreign Currency Net Long-term Exchange Equity Embedded Long-term Debt of Interest Rate Rate Credit Market Derivatives (8) Debt CSEs - FVO ------------- -------- ------ ------ --------------- --------- ---------- (In millions) Year Ended December 31, 2014 Balance at January 1,......................... $ (1) $ 14 $ 23 $ -- $ 48 $ (43) $ (28) Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2) Net investment income...................... -- -- -- -- -- -- -- Net investment gains (losses).............. -- -- -- -- -- -- (1) Net derivative gains (losses).............. -- (6) (7) 14 (144) -- -- OCI......................................... 40 -- -- -- -- -- -- Purchases (3)................................. -- -- -- 111 -- -- -- Sales (3)..................................... -- -- -- -- -- -- -- Issuances (3)................................. -- -- (4) (155) -- (30) -- Settlements (3)............................... (22) (1) -- -- 29 20 16 Transfers into Level 3 (4).................... -- -- -- -- -- -- -- Transfers out of Level 3 (4).................. -- -- -- -- -- 18 -- ----------- ------- ----- ------ ---------- --------- --------- Balance at December 31,....................... $ 17 $ 7 $ 12 $ (30) $ (67) $ (35) $ (13) =========== ======= ===== ====== ========== ========= ========= Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income $ -- $ -- $ -- $ -- $ -- $ -- $ -- Net investment gains (losses) $ -- $ -- $ -- $ -- $ -- $ -- $ (1) Net derivative gains (losses) $ -- $ (6) $ -- $ 14 $ (115) $ -- $ --
114 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ----------------------------------------------------------------------- Fixed Maturity Securities ----------------------------------------------------------------------- U.S. U.S. Treasury Foreign Foreign Corporate and Agency Corporate RMBS ABS CMBS Government --------- ----------- --------- ------ ------ ------ ---------- (In millions) Year Ended December 31, 2013 Balance at January 1,................................. $ 5,460 $ 71 $ 3,054 $1,702 $1,923 $ 402 $ 282 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2) Net investment income.............................. 2 -- 1 30 -- (1) 4 Net investment gains (losses)...................... (37) -- (22) (2) 4 -- 2 Net derivative gains (losses)...................... -- -- -- -- -- -- -- OCI................................................. (36) (3) 3 140 (27) 2 (45) Purchases (3)......................................... 1,188 -- 842 1,001 1,133 221 69 Sales (3)............................................. (862) (6) (646) (328) (429) (66) (37) Issuances (3)......................................... -- -- -- -- -- -- -- Settlements (3)....................................... -- -- -- -- -- -- -- Transfers into Level 3 (4)............................ 717 -- 250 41 1 74 1 Transfers out of Level 3 (4).......................... (1,163) -- (284) (71) (79) (202) (2) -------- ----------- ------- ------ ------ ------ -------- Balance at December 31,............................... $ 5,269 $ 62 $ 3,198 $2,513 $2,526 $ 430 $ 274 ======== =========== ======= ====== ====== ====== ======== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income............................... $ 1 $ -- $ -- $ 35 $ -- $ (1) $ 4 Net investment gains (losses)....................... $ (40) $ -- $ -- $ (3) $ -- $ -- $ -- Net derivative gains (losses)....................... $ -- $ -- $ -- $ -- $ -- $ -- $ --
115 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ------------------------------------------------------------------------------------- Equity Securities Trading and FVO Securities ----------------- -------------------------------- Non- FVO FVO redeemable Actively General Securities Residential Separate Common Preferred Traded Account Held by Short-term Mortgage Account Stock Stock Securities Securities CSEs Investments Loans - FVO Assets (6) ------ ---------- ---------- ---------- ---------- ----------- ----------- ---------- (In millions) Year Ended December 31, 2013 Balance at January 1,................ $ 60 $ 281 $ 6 $ 26 $ -- $ 252 $ -- $ 940 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2) Net investment income............. -- -- -- 5 -- -- 1 -- Net investment gains (losses)..... 20 (30) -- 6 -- (23) -- 42 Net derivative gains (losses)..... -- -- -- -- -- -- -- -- OCI................................ (5) 84 -- -- -- 19 -- -- Purchases (3)........................ 5 17 9 -- -- 174 339 185 Sales (3)............................ (31) (74) -- (23) -- (247) (2) (204) Issuances (3)........................ -- -- -- -- -- -- -- 72 Settlements (3)...................... -- -- -- -- -- -- -- -- Transfers into Level 3 (4)........... 1 -- -- -- -- -- -- 236 Transfers out of Level 3 (4)......... -- -- (3) -- -- -- -- (62) ------ -------- ------ ------- ------ -------- -------- ------- Balance at December 31,.............. $ 50 $ 278 $ 12 $ 14 $ -- $ 175 $ 338 $ 1,209 ====== ======== ====== ======= ====== ======== ======== ======= Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income.............. $ -- $ -- $ -- $ 5 $ -- $ -- $ 1 $ -- Net investment gains (losses)...... $ -- $ (17) $ -- $ -- $ -- $ 1 $ -- $ -- Net derivative gains (losses)...... $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
116 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) -------------------------------------------------------------------- Net Derivatives (7) ------------------------------- Foreign Currency Net Long-term Interest Exchange Equity Embedded Long-term Debt of Rate Rate Credit Market Derivatives (8) Debt CSEs - FVO -------- -------- ------ ------ --------------- --------- ---------- (In millions) Year Ended December 31, 2013 Balance at January 1,............................ $ 58 $ 37 $ 33 $ -- $ (109) $ -- $ (44) Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2) Net investment income......................... -- -- -- -- -- -- -- Net investment gains (losses)................. -- -- -- -- -- -- (2) Net derivative gains (losses)................. (3) (24) (8) -- 102 -- -- OCI............................................ (44) -- -- -- -- -- -- Purchases (3).................................... -- -- -- -- -- -- -- Sales (3)........................................ -- -- -- -- -- -- -- Issuances (3).................................... -- -- (1) -- -- (43) -- Settlements (3).................................. (12) 1 (1) -- 55 -- 18 Transfers into Level 3 (4)....................... -- -- -- -- -- -- -- Transfers out of Level 3 (4)..................... -- -- -- -- -- -- -- ------- ------- ----- ------ ----------- -------- --------- Balance at December 31,.......................... $ (1) $ 14 $ 23 $ -- $ 48 $ (43) $ (28) ======= ======= ===== ====== =========== ======== ========= Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income.......................... $ -- $ -- $ -- $ -- $ -- $ -- $ -- Net investment gains (losses).................. $ -- $ -- $ -- $ -- $ -- $ -- $ (2) Net derivative gains (losses).................. $ -- $ (24) $ (5) $ -- $ 115 $ -- $ --
117 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ----------------------------------------------------------------------- Fixed Maturity Securities ----------------------------------------------------------------------- U.S. U.S. Treasury and Foreign Foreign Corporate Agency Corporate RMBS ABS CMBS Government --------- ------------ --------- ------ ------ ------ ---------- (In millions) Year Ended December 31, 2012 Balance at January 1,................................. $ 4,919 $ 25 $ 2,258 $ 691 $1,146 $ 219 $ 291 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2) Net investment income.............................. 7 -- 6 27 1 -- 5 Net investment gains (losses)...................... (2) -- (52) (5) (1) (7) (5) Net derivative gains (losses)...................... -- -- -- -- -- -- -- OCI................................................. 173 -- 142 220 (3) (3) 19 Purchases (3)......................................... 1,282 47 1,213 892 953 268 2 Sales (3)............................................. (848) (1) (489) (242) (157) (167) (55) Issuances (3)......................................... -- -- -- -- -- -- -- Settlements (3)....................................... -- -- -- -- -- -- -- Transfers into Level 3 (4)............................ 559 -- 99 131 4 104 25 Transfers out of Level 3 (4).......................... (630) -- (123) (12) (20) (12) -- -------- -------- -------- ------ ------ ------ ------ Balance at December 31,............................... $ 5,460 $ 71 $ 3,054 $1,702 $1,923 $ 402 $ 282 ======== ======== ======== ====== ====== ====== ====== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income............................... $ 4 $ -- $ 5 $ 27 $ 1 $ -- $ 5 Net investment gains (losses)....................... $ (3) $ -- $ (13) $ (2) $ -- $ -- $ -- Net derivative gains (losses)....................... $ -- $ -- $ -- $ -- $ -- $ -- $ --
118 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ------------------------------------------------------------------------------------- Equity Securities Trading and FVO Securities ----------------- -------------------------------- Non- FVO FVO redeemable Actively General Securities Residential Separate Common Preferred Traded Account Held by Short-term Mortgage Account Stock Stock Securities Securities CSEs Investments Loans - FVO Assets (6) ------ ---------- ---------- ---------- ---------- ----------- ----------- ---------- (In millions) Year Ended December 31, 2012 Balance at January 1,................ $ 104 $ 293 $ -- $ 14 $ -- $ 134 $ -- $ 1,082 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2) Net investment income............. -- -- -- 12 -- -- -- -- Net investment gains (losses)..... 7 (1) -- -- -- -- -- 84 Net derivative gains (losses)..... -- -- -- -- -- -- -- -- OCI................................ (7) 16 -- -- -- (19) -- -- Purchases (3)........................ 10 5 6 -- -- 246 -- 171 Sales (3)............................ (24) (32) -- -- -- (106) -- (379) Issuances (3)........................ -- -- -- -- -- -- -- 2 Settlements (3)...................... -- -- -- -- -- -- -- (1) Transfers into Level 3 (4)........... 1 -- -- -- -- 5 -- 24 Transfers out of Level 3 (4)......... (31) -- -- -- -- (8) -- (43) ------ -------- ------ ------ ------- -------- --------- ------- Balance at December 31,.............. $ 60 $ 281 $ 6 $ 26 $ -- $ 252 $ -- $ 940 ====== ======== ====== ====== ======= ======== ========= ======= Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income.............. $ -- $ -- $ -- $ 12 $ -- $ -- $ -- $ -- Net investment gains (losses)...... $ (4) $ -- $ -- $ -- $ -- $ -- $ -- $ -- Net derivative gains (losses)...... $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
119 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) -------------------------------------------------------------------- Net Derivatives (7) ------------------------------- Foreign Currency Net Long-term Interest Exchange Equity Embedded Long-term Debt of Rate Rate Credit Market Derivatives (8) Debt CSEs - FVO -------- -------- ------ ------ --------------- --------- ---------- (In millions) Year Ended December 31, 2012 Balance at January 1,................................. $ 67 $ 56 $ 1 $ -- $ (790) $ -- $ (116) Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2) Net investment income.............................. -- -- -- -- -- -- -- Net investment gains (losses)...................... -- -- -- -- -- -- (7) Net derivative gains (losses)...................... 17 (19) 38 -- 629 -- -- OCI................................................. (1) -- -- -- -- -- -- Purchases (3)......................................... -- -- -- -- -- -- -- Sales (3)............................................. -- -- -- -- -- -- -- Issuances (3)......................................... -- -- (3) -- -- -- -- Settlements (3)....................................... (25) -- (3) -- 52 -- 79 Transfers into Level 3 (4)............................ -- -- -- -- -- -- -- Transfers out of Level 3 (4).......................... -- -- -- -- -- -- -- ----- ------- ----- ----- ---------- ------- -------- Balance at December 31,............................... $ 58 $ 37 $ 33 $ -- $ (109) $ -- $ (44) ===== ======= ===== ===== ========== ======= ======== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income............................... $ -- $ -- $ -- $ -- $ -- $ -- $ -- Net investment gains (losses)....................... $ -- $ -- $ -- $ -- $ -- $ -- $ (7) Net derivative gains (losses)....................... $ -- $ (19) $ 36 $ -- $ 636 $ -- $ --
-------- (1)Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of mortgage loans--FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). (2)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (3)Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (4)Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (5)Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. (6)Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income. For the purpose of this disclosure, these changes are presented within net investment gains (losses). 120 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) (7)Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (8)Embedded derivative assets and liabilities are presented net for purposes of the rollforward. Fair Value Option The following table presents information for residential mortgage loans, which are accounted for under the FVO, and were initially measured at fair value.
December 31, --------------- 2014 2013 ------- ------- (In millions) Unpaid principal balance $ 436 $ 508 Difference between estimated fair value and unpaid principal balance. (128) (170) ------- ------- Carrying value at estimated fair value.............................. $ 308 $ 338 ======= ======= Loans in non-accrual status.......................................... $ 125 $ --
The following table presents information for long-term debt, which is accounted for under the FVO, and was initially measured at fair value.
Long-term Debt Long-term Debt of CSEs ---------------------------------- ---------------------------------- December 31, 2014 December 31, 2013 December 31, 2014 December 31, 2013 ----------------- ----------------- ----------------- ----------------- (In millions) Contractual principal balance............... $ 115 $ 123 $ 26 $ 42 Difference between estimated fair value and contractual principal balance............. 2 (1) (13) (14) ----------------- ----------------- ----------------- ----------------- Carrying value at estimated fair value (1)................................ $ 117 $ 122 $ 13 $ 28 ================= ================= ================= =================
-------- (1)Changes in estimated fair value are recognized in net investment gains (losses). Interest expense is recognized in other expenses. Nonrecurring Fair Value Measurements The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3).
At December 31, Years Ended December 31, -------------------------------- ----------------------------- 2014 2013 2012 2014 2013 2012 -------- -------- -------- -------- -------- --------- Carrying Value After Measurement Gains (Losses) -------------------------------- ----------------------------- (In millions) Mortgage loans, net (1)................. $ 94 $ 175 $ 361 $ 2 $ 24 $ (16) Other limited partnership interests (2). $ 109 $ 71 $ 48 $ (70) $ (40) $ (30) Goodwill (3)............................ $ -- $ -- $ -- $ -- $ -- $ (10)
121 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) -------- (1)Estimated fair values for impaired mortgage loans are based on independent broker quotations or valuation models using unobservable inputs or, if the loans are in foreclosure or are otherwise determined to be collateral dependent, are based on the estimated fair value of the underlying collateral or the present value of the expected future cash flows. (2)For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various strategies including domestic and international leveraged buyout funds; power, energy, timber and infrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next two to 10 years. Unfunded commitments for these investments at both December 31, 2014 and 2013 were not significant. (3)As discussed in Note 11, in 2012, the Company recorded an impairment of goodwill associated with the Retail Annuities reporting unit. This impairment has been categorized as Level 3 due to the significant unobservable inputs used in the determination of the estimated fair value. Fair Value of Financial Instruments Carried at Other Than Fair Value The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions, short-term debt and those short-term investments that are not securities, such as time deposits, and therefore are not included in the three level hierarchy table disclosed in the "--Recurring Fair Value Measurements" section. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2 and, to a lesser extent, in Level 1, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the table below are not considered financial instruments subject to this disclosure. 122 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:
December 31, 2014 ------------------------------------------------------------- Fair Value Hierarchy -------------------------------------- Total Carrying Estimated Value Level 1 Level 2 Level 3 Fair Value --------- ----------- ------------- ------------ ------------ (In millions) Assets Mortgage loans...................... $ 48,751 $ -- $ -- $ 50,992 $ 50,992 Policy loans........................ $ 8,491 $ -- $ 796 $ 9,614 $ 10,410 Real estate joint ventures.......... $ 30 $ -- $ -- $ 54 $ 54 Other limited partnership interests. $ 635 $ -- $ -- $ 819 $ 819 Other invested assets............... $ 2,385 $ -- $ 2,270 $ 220 $ 2,490 Premiums, reinsurance and other receivables........................ $ 13,845 $ -- $ 94 $ 14,607 $ 14,701 Liabilities PABs................................ $ 73,225 $ -- $ -- $ 75,481 $ 75,481 Long-term debt...................... $ 1,897 $ -- $ 2,029 $ 268 $ 2,297 Other liabilities................... $ 20,139 $ -- $ 609 $ 20,133 $ 20,742 Separate account liabilities........ $ 60,840 $ -- $ 60,840 $ -- $ 60,840 December 31, 2013 ------------------------------------------------------------- Fair Value Hierarchy -------------------------------------- Total Carrying Estimated Value Level 1 Level 2 Level 3 Fair Value --------- ----------- ------------- ------------ ------------ (In millions) Assets Mortgage loans...................... $ 45,686 $ -- $ -- $ 47,369 $ 47,369 Policy loans........................ $ 8,421 $ -- $ 786 $ 8,767 $ 9,553 Real estate joint ventures.......... $ 47 $ -- $ -- $ 70 $ 70 Other limited partnership interests. $ 865 $ -- $ -- $ 1,013 $ 1,013 Other invested assets............... $ 2,017 $ 87 $ 1,752 $ 176 $ 2,015 Premiums, reinsurance and other receivables........................ $ 14,210 $ -- $ 15 $ 14,906 $ 14,921 Liabilities PABs................................ $ 70,205 $ -- $ -- $ 72,236 $ 72,236 Long-term debt...................... $ 2,655 $ -- $ 2,956 $ -- $ 2,956 Other liabilities................... $ 19,601 $ -- $ 310 $ 19,787 $ 20,097 Separate account liabilities........ $ 57,935 $ -- $ 57,935 $ -- $ 57,935
The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows: Mortgage Loans The estimated fair value of mortgage loans is primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk, or is determined from pricing for similar loans. 123 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) Policy Loans Policy loans with fixed interest rates are classified within Level 3. The estimated fair values for these loans are determined using a discounted cash flow model applied to groups of similar policy loans determined by the nature of the underlying insurance liabilities. Cash flow estimates are developed by applying a weighted-average interest rate to the outstanding principal balance of the respective group of policy loans and an estimated average maturity determined through experience studies of the past performance of policyholder repayment behavior for similar loans. These cash flows are discounted using current risk-free interest rates with no adjustment for borrower credit risk as these loans are fully collateralized by the cash surrender value of the underlying insurance policy. Policy loans with variable interest rates are classified within Level 2 and the estimated fair value approximates carrying value due to the absence of borrower credit risk and the short time period between interest rate resets, which presents minimal risk of a material change in estimated fair value due to changes in market interest rates. Real Estate Joint Ventures and Other Limited Partnership Interests The estimated fair values of these cost method investments are generally based on the Company's share of the NAV as provided in the financial statements of the investees. In certain circumstances, management may adjust the NAV by a premium or discount when it has sufficient evidence to support applying such adjustments. Other Invested Assets These other invested assets are principally comprised of loans to affiliates. The estimated fair value of loans to affiliates is determined by discounting the expected future cash flows using market interest rates currently available for instruments with similar terms and remaining maturities. Premiums, Reinsurance and Other Receivables Premiums, reinsurance and other receivables are principally comprised of certain amounts recoverable under reinsurance agreements, amounts on deposit with financial institutions to facilitate daily settlements related to certain derivatives and amounts receivable for securities sold but not yet settled. Amounts recoverable under ceded reinsurance agreements, which the Company has determined do not transfer significant risk such that they are accounted for using the deposit method of accounting, have been classified as Level 3. The valuation is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using interest rates determined to reflect the appropriate credit standing of the assuming counterparty. The amounts on deposit for derivative settlements, classified within Level 2, essentially represent the equivalent of demand deposit balances and amounts due for securities sold are generally received over short periods such that the estimated fair value approximates carrying value. PABs These PABs include investment contracts. Embedded derivatives on investment contracts and certain variable annuity guarantees accounted for as embedded derivatives are excluded from this caption in the preceding tables as they are separately presented in "-- Recurring Fair Value Measurements." 124 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) The investment contracts primarily include certain funding agreements, fixed deferred annuities, modified guaranteed annuities, fixed term payout annuities and total control accounts. The valuation of these investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates adding a spread to reflect the nonperformance risk in the liability. Long-term Debt The estimated fair value of long-term debt is principally determined using market standard valuation methodologies. Capital leases, which are not required to be disclosed at estimated fair value, and debt carried at fair value are excluded from the preceding tables. Valuations of instruments classified as Level 2 are based primarily on quoted prices in markets that are not active or using matrix pricing that use standard market observable inputs such as quoted prices in markets that are not active and observable yields and spreads in the market. Instruments valued using discounted cash flow methodologies use standard market observable inputs including market yield curve, duration, observable prices and spreads for similar publicly traded or privately traded issues. Valuations of instruments classified as Level 3 are based primarily on discounted cash flow methodologies that utilize unobservable discount rates that can vary significantly based upon the specific terms of each individual arrangement. Other Liabilities Other liabilities consist primarily of interest payable, amounts due for securities purchased but not yet settled, funds withheld amounts payable, which are contractually withheld by the Company in accordance with the terms of the reinsurance agreements, and amounts payable under certain assumed reinsurance agreements, which are recorded using the deposit method of accounting. The Company evaluates the specific terms, facts and circumstances of each instrument to determine the appropriate estimated fair values, which are not materially different from the carrying values, with the exception of certain deposit type reinsurance payables. For such payables, the estimated fair value is determined as the present value of expected future cash flows, which are discounted using an interest rate determined to reflect the appropriate credit standing of the assuming counterparty. Separate Account Liabilities Separate account liabilities represent those balances due to policyholders under contracts that are classified as investment contracts. Separate account liabilities classified as investment contracts primarily represent variable annuities with no significant mortality risk to the Company such that the death benefit is equal to the account balance, funding agreements related to group life contracts and certain contracts that provide for benefit funding. Since separate account liabilities are fully funded by cash flows from the separate account assets which are recognized at estimated fair value as described in the section "-- Recurring Fair Value Measurements," the 125 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 10. Fair Value (continued) value of those assets approximates the estimated fair value of the related separate account liabilities. The valuation techniques and inputs for separate account liabilities are similar to those described for separate account assets. 11. Goodwill Goodwill, which is included in other assets, is the excess of cost over the estimated fair value of net assets acquired. Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test. The goodwill impairment process requires a comparison of the estimated fair value of a reporting unit to its carrying value. The Company tests goodwill for impairment by either performing a qualitative assessment or a two-step quantitative test. The qualitative assessment is an assessment of historical information and relevant events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company may elect not to perform the qualitative assessment for some or all of its reporting units and perform a two-step quantitative impairment test. In performing the two-step quantitative impairment test, the Company may use a market multiple valuation approach and a discounted cash flow valuation approach. For reporting units which are particularly sensitive to market assumptions, the Company may use additional valuation methodologies to estimate the reporting units' fair values. The market multiple valuation approach utilizes market multiples of companies with similar businesses and the projected operating earnings of the reporting unit. The discounted cash flow valuation approach requires judgments about revenues, operating earnings projections, capital market assumptions and discount rates. The key inputs, judgments and assumptions necessary in determining estimated fair value of the reporting units include projected operating earnings, current book value, the level of economic capital required to support the mix of business, long-term growth rates, comparative market multiples, the account value of in-force business, projections of new and renewal business, as well as margins on such business, the level of interest rates, credit spreads, equity market levels, and the discount rate that the Company believes is appropriate for the respective reporting unit. The valuation methodologies utilized are subject to key judgments and assumptions that are sensitive to change. Estimates of fair value are inherently uncertain and represent only management's reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Declines in the estimated fair value of the Company's reporting units could result in goodwill impairments in future periods which could materially adversely affect the Company's results of operations or financial position. For the 2014 annual goodwill impairment tests, the Company utilized the qualitative assessment for all of its reporting units and determined it was not more than likely that the fair value of any of the reporting units was less than its carrying amount, and, therefore no further testing was needed for these reporting units. As discussed in Note 2, effective January 1, 2015, the Company implemented certain segment reporting changes, including revising its capital allocation methodology, which were approved by the chief operating decision maker of MetLife, Inc. in the fourth quarter of 2014. As a result, goodwill was re-tested for impairment during the fourth quarter of 2014 using estimated revised carrying amounts of the reporting units. The Company 126 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 11. Goodwill (continued) concluded that the fair values of all reporting units were in excess of their carrying value and, therefore, goodwill was not impaired. Information regarding goodwill by segment, as well as Corporate & Other, was as follows:
Group, Voluntary & Corporate Worksite Benefit Corporate Retail Benefits Funding & Other Total ------- ----------- --------- --------- ------ (In millions) Balance at January 1, 2012 Goodwill..................... $ 37 $ 68 $ 2 $ 4 $ 111 Accumulated impairment....... -- -- -- -- -- ------- ----------- --------- --------- ------ Total goodwill, net......... 37 68 2 4 111 Impairments (1).............. (10) -- -- -- (10) Balance at December 31, 2012 Goodwill..................... 37 68 2 4 111 Accumulated impairment....... (10) -- -- -- (10) ------- ----------- --------- --------- ------ Total goodwill, net......... 27 68 2 4 101 Balance at December 31, 2013 Goodwill..................... 37 68 2 4 111 Accumulated impairment....... (10) -- -- -- (10) ------- ----------- --------- --------- ------ Total goodwill, net......... 27 68 2 4 101 Balance at December 31, 2014 Goodwill..................... 37 68 2 4 111 Accumulated impairment....... (10) -- -- -- (10) ------- ----------- --------- --------- ------ Total goodwill, net......... $ 27 $ 68 $ 2 $ 4 $ 101 ======= =========== ========= ========= ======
-------- (1)For the year ended December 31, 2012, a non-cash charge of $10 million, which had no impact on income taxes, was recorded in other expenses for the impairment of the entire goodwill balance for the Retail Annuities reporting unit. 127 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 12. Long-term and Short-term Debt Long-term and short-term debt outstanding was as follows:
Interest Rates (1) December 31, --------------------- --------------------- Weighted Range Average Maturity 2014 2013 ------------- -------- ----------- ---------- ---------- (In millions) Surplus notes --affiliated.... 3.00% - 7.38% 6.49% 2015 - 2037 $ 883 $ 1,100 Surplus notes................. 7.63% - 7.88% 7.83% 2015 - 2025 701 701 Mortgage loans --affiliated... 2.11% - 7.26% 5.21% 2015 - 2020 242 364 Senior notes --affiliated (2). 0.92% - 2.75% 1.97% 2021 - 2022 78 79 Other notes (3)............... 1.34% - 8.00% 3.34% 2015 - 2027 110 533 Capital lease obligations..... -- 23 ---------- ---------- Total long-term debt (4)...... 2,014 2,800 Total short-term debt......... 100 175 ---------- ---------- Total......................... $ 2,114 $ 2,975 ========== ==========
-------- (1)Range of interest rates and weighted average interest rates are for the year ended December 31, 2014. (2)During 2012, a consolidated VIE issued $80 million of long-term debt to an affiliate. See Note 8. (3)At December 31, 2013, the Company consolidated the MetLife Core Property Fund. During 2013, this consolidated VIE issued $373 million of long-term debt. The Company no longer consolidated the fund effective March 31, 2014. See Note 8. (4)Excludes $13 million and $28 million of long-term debt relating to CSEs at December 31, 2014 and 2013, respectively. See Note 8. The aggregate maturities of long-term debt at December 31, 2014 for the next five years and thereafter are $521 million in 2015, $3 million in 2016, $3 million in 2017, $7 million in 2018, $33 million in 2019 and $1.4 billion thereafter. Capital lease obligations and mortgage loans are collateralized and rank highest in priority, followed by unsecured senior debt which consists of senior notes and other notes. Payments of interest and principal on the Company's surplus notes are subordinate to all other obligations. Payments of interest and principal on surplus notes may be made only with the prior approval of the insurance department of the state of domicile. Certain of the Company's debt instruments, as well as its credit and committed facilities, contain various administrative, reporting, legal and financial covenants. The Company believes it was in compliance with all such covenants at December 31, 2014. 128 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 12. Long-term and Short-term Debt (continued) Debt Repayments In November 2014, a wholly-owned real estate subsidiary of the Company repaid in cash $60 million of its 7.01% mortgage loans issued to MetLife USA due in January 2020. It also repaid in cash $60 million of its 4.67% mortgage loans issued to MetLife USA due in January 2017. In September 2014, the Company repaid in cash $217 million of surplus notes issued to MetLife Mexico S.A., an affiliate. The redemption was approved by the Superintendent. Short-term Debt Short-term debt with maturities of one year or less was as follows:
December 31, ----------------- 2014 2013 -------- -------- (In millions) Commercial paper......... $ 100 $ 175 Average daily balance.... $ 109 $ 103 Average days outstanding. 69 days 55 days
During the years ended December 31, 2014, 2013 and 2012, the weighted average interest rate on short-term debt was 0.10%, 0.12% and 0.17%, respectively. Interest Expense Interest expense related to long-term and short-term debt included in other expenses was $150 million, $150 million and $148 million for the years ended December 31, 2014, 2013 and 2012, respectively. These amounts include $88 million, $91 million and $89 million of interest expense related to affiliated debt for the years ended December 31, 2014, 2013 and 2012, respectively. Such amounts do not include interest expense on long-term debt related to CSEs. See Note 8. Credit and Committed Facilities At December 31, 2014, MetLife Funding, Inc. ("MetLife Funding") and MetLife, Inc. maintained a $4.0 billion unsecured credit facility and a committed facility aggregating $490 million. When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements. Credit Facilities Unsecured credit facilities are used for general corporate purposes, to support the borrowers' commercial paper program and for the issuance of letters of credit. Total fees expensed associated with these credit facilities were $4 million, $3 million and $3 million for the years ended December 31, 2014, 2013 and 2012, respectively, and was included in other expenses. 129 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 12. Long-term and Short-term Debt (continued) Information on the credit facility at December 31, 2014 was as follows:
Letters of Maximum Credit Unused Borrower(s) Expiration Capacity Issued (1) Drawdowns Commitments -------------------------- ------------ ---------- ------------ ----------- ------------- (In millions) MetLife, Inc. and MetLife Funding, Inc............ May 2019 (2) $ 4,000 $ 684 $ -- $ 3,316
-------- (1)MetLife, Inc. and MetLife Funding, a wholly owned subsidiary of Metropolitan Life Insurance Company, are severally liable for their respective obligations under such unsecured credit facility. MetLife Funding is not an applicant under letters of credit outstanding as of December 31, 2014 and is not responsible for any reimbursement obligations under such letters of credit. (2)In May 2014, MetLife, Inc. and MetLife Funding entered into a $4.0 billion five-year unsecured credit agreement, which amended and restated both the five-year $3.0 billion and the five-year $1.0 billion unsecured credit agreements in their entireties into a single agreement (the "2014 Five-Year Credit Agreement"). The credit facility made available by the 2014 Five-Year Credit Agreement may be used for general corporate purposes (including in the case of loans, to back up commercial paper and, in the case of letters of credit, to support variable annuity policy and reinsurance reserve requirements). All borrowings under the 2014 Five-Year Credit Agreement must be repaid by May 30, 2019, except that letters of credit outstanding on that date may remain outstanding until no later than May 30, 2020. The Company incurred costs of $3 million related to the 2014 Five-Year Credit Agreement, which were capitalized and included in other assets. These costs are being amortized over the remaining term of the 2014 Five-Year Credit Agreement. Committed Facility The committed facility is used for collateral for certain of the Company's affiliated reinsurance liabilities. Total fees expensed associated with this committed facility were $4 million, $3 million and $3 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is included in other expenses. Information on the committed facility at December 31, 2014 was as follows:
Letters of Maximum Credit Unused Account Party/Borrower(s) Expiration Capacity Issued (1) Drawdowns Commitments ------------------------- ------------ ---------- ------------ ----------- ------------- (In millions) MetLife, Inc. & Missouri Reinsurance, Inc........ June 2016 (2) $ 490 $ 490 $ -- $ --
-------- (1)Missouri Reinsurance, Inc., a subsidiary of Metropolitan Life Insurance Company, had outstanding $490 million in letters of credit at December 31, 2014. (2)Commencing in December 2015 and extending through March 2016, the capacity will grade down from $490 million to $200 million. 130 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 13. Equity Stock-Based Compensation Plans Overview In accordance with a service agreement with an affiliate, the Company was allocated a proportionate share of stock-based compensation expenses. The stock-based compensation expenses recognized by the Company are related to awards under MetLife, Inc. 2005 Stock and Incentive Compensation Plan (the "2005 Stock Plan"), payable in shares of MetLife, Inc. common stock ("Shares"), or options to purchase MetLife, Inc. common stock. The Company does not issue any awards payable in its common stock or options to purchase its common stock. Description of Plan -- General Terms Under the 2005 Stock Plan, awards granted to employees and agents may be in the form of Stock Options, Stock Appreciation Rights, Restricted Stock or Restricted Stock Units, Performance Shares or Performance Share Units, Cash-Based Awards and Stock-Based Awards (each as defined in the 2005 Stock Plan with reference to Shares). Compensation expense related to awards under the 2005 Stock Plan is recognized based on the number of awards expected to vest, which represents the awards granted less expected forfeitures over the life of the award, as estimated at the date of grant. Unless a material deviation from the assumed forfeiture rate is observed during the term in which the awards are expensed, any adjustment necessary to reflect differences in actual experience is recognized in the period the award becomes payable or exercisable. Compensation expense related to awards under the 2005 Stock Plan is principally related to the issuance of Stock Options, Performance Shares and Restricted Stock Units. The majority of the awards granted by MetLife, Inc. each year under the 2005 Stock Plan are made in the first quarter of each year. The expense related to stock-based compensation included in other expenses was $100 million, $122 million and $127 million for the years ended December 31, 2014, 2013 and 2012, respectively. Statutory Equity and Income Each U.S. insurance company's state of domicile imposes risk-based capital ("RBC") requirements that were developed by the National Association of Insurance Commissioners ("NAIC"). Regulatory compliance is determined by a ratio of a company's total adjusted capital, calculated in the manner prescribed by the NAIC ("TAC") to its authorized control level RBC, calculated in the manner prescribed by the NAIC ("ACL RBC"). Companies below specific trigger levels or ratios are classified by their respective levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences is twice ACL RBC ("Company Action RBC"). The RBC ratios for Metropolitan Life Insurance Company and each of its insurance subsidiaries were in excess of 350% for all periods presented. Metropolitan Life Insurance Company and its insurance subsidiaries prepare statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of their respective state of domicile. The NAIC has adopted the Codification of Statutory Accounting Principles 131 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 13. Equity (continued) ("Statutory Codification"). Statutory Codification is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting principles continue to be established by individual state laws and permitted practices. Modifications by the various state insurance departments may impact the effect of Statutory Codification on the statutory capital and surplus of Metropolitan Life Insurance Company and its insurance subsidiaries. Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting surplus notes as surplus instead of debt, reporting of reinsurance agreements and valuing securities on a different basis. In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. The most significant assets not admitted by the Company are net deferred income tax assets resulting from temporary differences between statutory accounting principles basis and tax basis not expected to reverse and become recoverable within three years. The Department of Financial Services issues an annual "Special Considerations" circular letter to New York licensed insurers requiring tests to be performed as part of insurers' year-end asset adequacy testing. The Department of Financial Services issued its 2014 Special Considerations letter on October 10, 2014, which was substantially similar to the 2013 letter. The letter mandates the use of certain assumptions in asset adequacy testing. In 2013, MLIC established a three-year grade-in schedule for the amount of LTC reserves required as a result of the new assumptions. In 2014, MLIC established an additional schedule, reflecting current economic conditions, liabilities and assets. The following table summarizes the two schedules of strengthening:
2013 Schedule 2014 Schedule Combined Schedule ------------- ------------- ----------------- (In millions) 2013 Strengthening..... $ 300 N/A $ 300 2014 Strengthening..... $ 200 $ 100 $ 300 2015 Strengthening (1). $ 100 $ 100 $ 200 2016 Strengthening (1). N/A $ 100 $ 100
-------- (1)The actual 2015 and 2016 amounts may differ from those originally estimated in 2013 and 2014 due to changes in economic conditions, regulations, or policyholder behavior. The tables below present amounts from Metropolitan Life Insurance Company and its insurance subsidiaries, which are derived from the most recent statutory-basis financial statements as filed with the insurance regulators. 132 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 13. Equity (continued) Statutory net income (loss) was as follows:
Years Ended December 31, ------------------------ Company State of Domicile 2014 2013 2012 ---------------------------------------- ----------------- -------- ------ -------- (In millions) Metropolitan Life Insurance Company..... New York $ 1,487 $ 369 $ 1,320 New England Life Insurance Company...... Massachusetts $ 303 $ 103 $ 79 General American Life Insurance Company. Missouri $ 129 $ 60 $ 19
Statutory capital and surplus was as follows at:
December 31, ------------------- Company 2014 2013 ---------------------------------------- --------- --------- (In millions) Metropolitan Life Insurance Company..... $ 12,008 $ 12,428 New England Life Insurance Company...... $ 675 $ 571 General American Life Insurance Company. $ 867 $ 818
Dividend Restrictions The table below sets forth dividends permitted to be paid by Metropolitan Life Insurance Company to MetLife, Inc. without insurance regulatory approval and dividends paid:
2015 2014 2013 ----------------- ------------- -------- Permitted Without Company Approval Paid (1) Paid (1) ------------------------------------ ----------------- ------------- -------- (In millions) Metropolitan Life Insurance Company. $ 1,200 $ 821(2) $ 1,428
-------- (1)Includes all amounts paid, including those requiring regulatory approval. (2)During December 2014, Metropolitan Life Insurance Company distributed shares of an affiliate to MetLife, Inc. as an in-kind dividend of $113 million, as calculated on a statutory basis. Under New York State Insurance Law, Metropolitan Life Insurance Company is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to MetLife, Inc. as long as the aggregate amount of all such dividends in any calendar year does not exceed the lesser of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). Metropolitan Life Insurance Company will be permitted to pay a dividend to MetLife, Inc. in excess of the lesser of such two amounts only if it files notice of its intention to declare such a dividend and the amount thereof with the New York Superintendent of Financial Services (the "Superintendent") and the Superintendent either approves the distribution of the dividend or does not disapprove the dividend within 30 days of its filing. Under New York State Insurance Law, the Superintendent has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. 133 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 13. Equity (continued) The table below sets forth the dividends permitted to be paid by Metropolitan Life Insurance Company's insurance subsidiaries without regulatory approval and dividends paid:
2015 2014 2013 ----------------- ----------- --------- Permitted Without Company Approval (1) Paid (2) Paid (2) ---------------------------------------- ----------------- ----------- --------- (In millions) New England Life Insurance Company...... $ 199 $ 227(3) $ 77 General American Life Insurance Company. $ 88 $ -- $ --
-------- (1)Reflects dividend amounts that may be paid during 2015 without prior regulatory approval. However, because dividend tests may be based on dividends previously paid over a rolling 12-month period, if paid before a specified date during 2015, some or all of such dividends may require regulatory approval. (2)Includes all amounts paid, including those requiring regulatory approval. (3)During December 2014, New England Life Insurance Company ("NELICO") distributed shares of an affiliate to Metropolitan Life Insurance Company as an extraordinary in-kind dividend of $113 million, as calculated on a statutory basis. Also during December 2014, NELICO paid an extraordinary cash dividend to Metropolitan Life Insurance Company in the amount of $114 million. Under Massachusetts State Insurance Law, NELICO is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to Metropolitan Life Insurance Company as long as the aggregate amount of the dividend, when aggregated with all other dividends paid in the preceding 12 months, does not exceed the greater of: (i) 10 % of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year. NELICO will be permitted to pay a dividend to Metropolitan Life Insurance Company in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Massachusetts Commissioner of Insurance (the "Massachusetts Commissioner") and the Massachusetts Commissioner either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as "unassigned funds (surplus)") as of the last filed annual statutory statement requires insurance regulatory approval. Under Massachusetts State Insurance Law, the Massachusetts Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. Under Missouri State Insurance Law, GALIC is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to Metropolitan Life Insurance Company as long as the amount of such dividend when aggregated with all other dividends in the preceding 12 months, does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding net realized capital gains). GALIC will be permitted to pay a dividend to Metropolitan Life Insurance Company in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Missouri Director of Insurance (the "Missouri Director") and the Missouri Director either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, unassigned funds 134 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 13. Equity (continued) (surplus) as of the last filed annual statutory statement requires insurance regulatory approval. Under Missouri State Insurance Law, the Missouri Director has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. For the years ended December 31, 2014 and 2013, Metropolitan Life Insurance Company received dividends from non-insurance subsidiaries of $95 million and $45 million, respectively. Accumulated Other Comprehensive Income (Loss) Information regarding changes in the balances of each component of AOCI attributable to Metropolitan Life Insurance Company, net of income tax, was as follows:
Unrealized Foreign Defined Investment Gains Unrealized Currency Benefit (Losses), Net of Gains (Losses) Translation Plans Related Offsets (1) on Derivatives Adjustments Adjustment Total ------------------- -------------- ----------- ------------- ----------- (In millions) Balance at December 31, 2011.......... $ 4,028 $ 840 $ 37 $ (1,851) $ 3,054 OCI before reclassifications.......... 2,406 (243) (30) (618) 1,515 Deferred income tax benefit (expense). (843) 87 11 217 (528) ------------- ---------- ---------- ------------- ----------- OCI before reclassifications, net of income tax......................... 5,591 684 18 (2,252) 4,041 Amounts reclassified from AOCI........ 96 2 -- (148) (50) Deferred income tax benefit (expense). (33) (1) -- 51 17 ------------- ---------- ---------- ------------- ----------- Amounts reclassified from AOCI, net of income tax...................... 63 1 -- (97) (33) ------------- ---------- ---------- ------------- ----------- Balance at December 31, 2012.......... 5,654 685 18 (2,349) 4,008 OCI before reclassifications.......... (3,321) (677) 22 1,396 (2,580) Deferred income tax benefit (expense). 1,145 237 (9) (490) 883 ------------- ---------- ---------- ------------- ----------- OCI before reclassifications, net of income tax......................... 3,478 245 31 (1,443) 2,311 Amounts reclassified from AOCI........ (16) (14) -- (205) (235) Deferred income tax benefit (expense). 6 5 -- 71 82 ------------- ---------- ---------- ------------- ----------- Amounts reclassified from AOCI, net of income tax...................... (10) (9) -- (134) (153) ------------- ---------- ---------- ------------- ----------- Balance at December 31, 2013.......... 3,468 236 31 (1,577) 2,158 OCI before reclassifications.......... 4,095 606 (44) (1,181) 3,476 Deferred income tax benefit (expense). (1,409) (212) 10 406 (1,205) ------------- ---------- ---------- ------------- ----------- OCI before reclassifications, net of income tax......................... 6,154 630 (3) (2,352) 4,429 Amounts reclassified from AOCI........ 70 682 -- 180 932 Deferred income tax benefit (expense). (24) (239) -- (64) (327) ------------- ---------- ---------- ------------- ----------- Amounts reclassified from AOCI, net of income tax...................... 46 443 -- 116 605 ------------- ---------- ---------- ------------- ----------- Balance at December 31, 2014.......... $ 6,200 $ 1,073 $ (3) $ (2,236) $ 5,034 ============= ========== ========== ============= ===========
-------- (1)See Note 8 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. 135 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 13. Equity (continued) Information regarding amounts reclassified out of each component of AOCI, was as follows:
Consolidated Statement of Operations and AOCI Components Amounts Reclassified from AOCI Comprehensive Income (Loss) Locations -------------------------------------------- ---------------------------- ---------------------------------------- Years Ended December 31, ---------------------------- 2014 2013 2012 --------- --------- -------- (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses).................................... $ (103) $ (9) $ (136) Net investment gains (losses) Net unrealized investment gains (losses).................................... 40 53 56 Net investment income Net unrealized investment gains (losses).................................... (7) (28) (16) Net derivative gains (losses) --------- --------- -------- Net unrealized investment gains (losses), before income tax............... (70) 16 (96) Income tax (expense) benefit............... 24 (6) 33 --------- --------- -------- Net unrealized investment gains (losses), net of income tax............... $ (46) $ 10 $ (63) ========= ========= ======== Unrealized gains (losses) on derivatives-- cash flow hedges: Interest rate swaps.......................... $ 41 $ 20 $ 3 Net derivative gains (losses) Interest rate swaps.......................... 9 8 4 Net investment income Interest rate forwards....................... (8) 1 -- Net derivative gains (losses) Interest rate forwards....................... 2 2 2 Net investment income Foreign currency swaps....................... (725) (15) (7) Net derivative gains (losses) Foreign currency swaps....................... (2) (3) (5) Net investment income Credit forwards.............................. 1 1 1 Net investment income --------- --------- -------- Gains (losses) on cash flow hedges, before income tax......................... (682) 14 (2) Income tax (expense) benefit............... 239 (5) 1 --------- --------- -------- Gains (losses) on cash flow hedges, net of income tax............................. $ (443) $ 9 $ (1) ========= ========= ======== Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses).................................... $ (180) $ 274 $ 246 Amortization of prior service (costs) credit...................................... -- (69) (98) --------- --------- -------- Amortization of defined benefit plan items, before income tax.................. (180) 205 148 Income tax (expense) benefit............... 64 (71) (51) --------- --------- -------- Amortization of defined benefit plan items, net of income tax.................. $ (116) $ 134 $ 97 ========= ========= ======== Total reclassifications, net of income tax..... $ (605) $ 153 $ 33 ========= ========= ========
-------- (1)These AOCI components are included in the computation of net periodic benefit costs. See Note 15. 136 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 14. Other Expenses Information on other expenses was as follows:
Years Ended December 31, -------------------------- 2014 2013 2012 -------- -------- -------- (In millions) Compensation............................................... $ 2,257 $ 2,392 $ 2,426 Pension, postretirement and postemployment benefit costs... 322 364 285 Commissions................................................ 828 781 769 Volume-related costs....................................... 70 253 241 Affiliated interest costs on ceded and assumed reinsurance. 1,009 1,033 1,209 Capitalization of DAC...................................... (424) (562) (632) Amortization of DAC and VOBA............................... 695 261 991 Interest expense on debt................................... 151 153 152 Premium taxes, licenses and fees........................... 328 263 294 Professional services...................................... 1,013 989 946 Rent and related expenses, net of sublease income.......... 128 143 123 Other...................................................... (306) (82) (410) -------- -------- -------- Total other expenses...................................... $ 6,071 $ 5,988 $ 6,394 ======== ======== ========
Capitalization of DAC and Amortization of DAC and VOBA See Note 5 for additional information on DAC and VOBA including impacts of capitalization and amortization. See also Note 7 for a description of the DAC amortization impact associated with the closed block. Interest Expense on Debt Interest expense on debt includes interest expense (see Note 12) and interest expense related to CSEs. See Note 8. Affiliated Expenses Commissions, capitalization of DAC and amortization of DAC and VOBA include the impact of affiliated reinsurance transactions. See Notes 6, 12 and 19 for a discussion of affiliated expenses included in the table above. Restructuring Charges MetLife, Inc. commenced an enterprise-wide strategic initiative in 2012. This global strategy focuses on leveraging MetLife, Inc. and its subsidiaries' scale to improve the value they provide to customers and shareholders in order to reduce costs, enhance revenues, achieve efficiencies and reinvest in their technology, platforms and functionality to improve their current operations and develop new capabilities. 137 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 14. Other Expenses (continued) These restructuring charges are included in other expenses. As the expenses relate to an enterprise-wide initiative, they are reported in Corporate & Other. Information regarding restructuring charges was as follows:
Years Ended December 31, ---------------------------------------------------------------------------------------- 2014 2013 2012 ---------------------------- ---------------------------- ---------------------------- Lease and Lease and Lease and Asset Asset Asset Severance Impairment Total Severance Impairment Total Severance Impairment Total --------- ---------- ------- --------- ---------- ------- --------- ---------- ------- (In millions) Balance at January 1,........ $ 39 $ 6 $ 45 $ 22 $ -- $ 22 $ -- $ -- $ -- Restructuring charges........ 66 8 74 87 16 103 101 18 119 Cash payments................ (74) (8) (82) (70) (10) (80) (79) (18) (97) ------- ------ ------- ------- ----- ------- ------- ------ ------- Balance at December 31,...... $ 31 $ 6 $ 37 $ 39 $ 6 $ 45 $ 22 $ -- $ 22 ======= ====== ======= ======= ===== ======= ======= ====== ======= Total restructuring charges incurred since inception of initiative.................. $ 254 $ 42 $ 296 $ 188 $ 34 $ 222 $ 101 $ 18 $ 119 ======= ====== ======= ======= ===== ======= ======= ====== =======
Management anticipates further restructuring charges including severance, as well as lease and asset impairments, through the year ending December 31, 2016. However, such restructuring plans were not sufficiently developed to enable management to make an estimate of such restructuring charges at December 31, 2014. 15. Employee Benefit Plans Pension and Other Postretirement Benefit Plans The Company sponsors and administers various U.S. qualified and non-qualified defined benefit pension plans and other postretirement employee benefit plans covering employees and sales representatives who meet specified eligibility requirements. Pension benefits are provided utilizing either a traditional formula or cash balance formula. The traditional formula provides benefits based upon years of credited service and final average earnings. The cash balance formula utilizes hypothetical or notional accounts which credit participants with benefits equal to a percentage of eligible pay, as well as earnings credits, determined annually based upon the average annual rate of interest on 30-year U.S. Treasury securities, for each account balance. At December 31, 2014, the majority of active participants were accruing benefits under the cash balance formula; however, 89% of the Company's obligations result from benefits calculated with the traditional formula. The non-qualified pension plans provide supplemental benefits in excess of limits applicable to a qualified plan. Participating affiliates are allocated a proportionate share of net expense related to the plans, as well as contributions made to the plans. The Company also provides certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. Employees of the Company who were hired prior to 2003 (or, in certain cases, rehired during or after 2003) and meet age and service criteria while working for the Company may become eligible for these other postretirement benefits, at various levels, in accordance with the applicable plans. Virtually all retirees, or their beneficiaries, contribute a portion of the total costs of postretirement medical benefits. Employees hired after 2003 are not eligible for any employer subsidy for postretirement medical benefits. Participating affiliates are allocated a proportionate share of net expense and contributions related to the postemployment and other postretirement plans. 138 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans (continued) Obligations and Funded Status
December 31, ------------------------------------------------------- 2014 2013 --------------------------- --------------------------- Other Other Pension Postretirement Pension Postretirement Benefits (1) Benefits Benefits (1) Benefits ------------ -------------- ------------ -------------- (In millions) Change in benefit obligations Benefit obligations at January 1,.............. $ 8,130 $ 1,861 $ 8,937 $ 2,402 Service costs................................. 183 14 214 20 Interest costs................................ 413 92 367 92 Plan participants' contributions.............. -- 30 -- 30 Net actuarial (gains) losses.................. 1,461 264 (967) (550) Settlements and curtailments.................. (13) (6) -- -- Change in benefits and other.................. 574 (16) 26 -- Benefits paid................................. (486) (109) (447) (133) Foreign exchange impact....................... -- (1) -- -- ---------- ---------- ---------- ---------- Benefit obligations at December 31,............ 10,262 2,129 8,130 1,861 ---------- ---------- ---------- ---------- Change in plan assets Fair value of plan assets at January 1,........ 7,305 1,352 7,390 1,320 Actual return on plan assets.................. 1,018 112 (20) 57 Change in benefits and other.................. 523 -- 28 -- Plan participants' contributions.............. -- 30 -- 30 Employer contributions........................ 390 41 354 78 Benefits paid................................. (486) (109) (447) (133) ---------- ---------- ---------- ---------- Fair value of plan assets at December 31,...... 8,750 1,426 7,305 1,352 ---------- ---------- ---------- ---------- Over (under) funded status at December 31,.... $ (1,512) $ (703) $ (825) $ (509) ========== ========== ========== ========== Amounts recognized in the consolidated balance sheets Other assets.................................. $ -- $ -- $ 213 $ -- Other liabilities............................. (1,512) (703) (1,038) (509) ---------- ---------- ---------- ---------- Net amount recognized....................... $ (1,512) $ (703) $ (825) $ (509) ========== ========== ========== ========== AOCI Net actuarial (gains) losses.................. $ 3,034 $ 420 $ 2,207 $ 209 Prior service costs (credit).................. (2) (10) 17 1 ---------- ---------- ---------- ---------- AOCI, before income tax..................... $ 3,032 $ 410 $ 2,224 $ 210 ========== ========== ========== ========== Accumulated benefit obligation................. $ 9,729 N/A $ 7,689 N/A ========== ==========
-------- (1)Includes non-qualified unfunded plans, for which the aggregate PBO was $1.3 billion and $ 1.0 billion at December 31, 2014 and 2013, respectively. 139 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans (continued) The aggregate pension accumulated benefit obligation and aggregate fair value of plan assets for pension benefit plans with accumulated benefit obligations in excess of plan assets was as follows at:
December 31, --------------------- 2014 2013 ---------- ---------- (In millions) Projected benefit obligations... $ 1,981 $ 1,037 Accumulated benefit obligations. $ 1,789 $ 927 Fair value of plan assets....... $ 676 $ --
Information for pension and other postretirement benefit plans with a PBO in excess of plan assets were as follows at:
December 31, ---------------------------------------------------- 2014 2013 -------------------------- ------------------------- Other Other Pension Postretirement Pension Postretirement Benefits Benefits Benefits Benefits ----------- -------------- ---------- -------------- (In millions) Projected benefit obligations. $ 10,241 $ 2,129 $ 1,170 $ 1,863 Fair value of plan assets..... $ 8,719 $ 1,426 $ 133 $ 1,353
Net Periodic Benefit Costs Net periodic benefit costs are determined using management estimates and actuarial assumptions to derive service costs, interest costs and expected return on plan assets for a particular year. Net periodic benefit costs also includes the applicable amortization of net actuarial (gains) losses and amortization of any prior service costs (credit). The obligations and expenses associated with these plans require an extensive use of assumptions such as the discount rate, expected rate of return on plan assets, rate of future compensation increases, healthcare cost trend rates, as well as assumptions regarding participant demographics such as rate and age of retirements, withdrawal rates and mortality. Management, in consultation with its external consulting actuarial firms, determines these assumptions based upon a variety of factors such as historical performance of the plan and its assets, currently available market and industry data and expected benefit payout streams. The assumptions used may differ materially from actual results due to, among other factors, changing market and economic conditions and changes in participant demographics. These differences may have a significant effect on the Company's consolidated financial statements and liquidity. Net periodic pension costs and net periodic other postretirement benefit plan costs are comprised of the following: .. Service Costs -- Service costs are the increase in the projected (expected) PBO resulting from benefits payable to employees of the Company on service rendered during the current year. .. Interest Costs -- Interest costs are the time value adjustment on the projected (expected) PBO at the end of each year. 140 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans (continued) .. Settlement and Curtailment Costs -- The aggregate amount of net (gains) losses recognized in net periodic benefit costs is due to settlements and curtailments. Settlements result from actions that relieve/eliminate the plan's responsibility for benefit obligations or risks associated with the obligations or assets used for the settlement. Curtailments result from an event that significantly reduces/eliminates plan participants' expected years of future services or benefit accruals. .. Expected Return on Plan Assets -- Expected return on plan assets is the assumed return earned by the accumulated pension and other postretirement fund assets in a particular year. .. Amortization of Net Actuarial (Gains) Losses -- Actuarial gains and losses result from differences between the actual experience and the expected experience on pension and other postretirement plan assets or projected (expected) PBO during a particular period. These gains and losses are accumulated and, to the extent they exceed 10% of the greater of the PBO or the fair value of plan assets, the excess is amortized into pension and other postretirement benefit costs over the expected service years of the employees. .. Amortization of Prior Service Costs (Credit) -- These costs relate to the recognition of increases or decreases in pension and other postretirement benefit obligation due to amendments in plans or initiation of new plans. These increases or decreases in obligation are recognized in AOCI at the time of the amendment. These costs are then amortized to pension and other postretirement benefit costs over the expected service years of the employees affected by the change. 141 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans (continued) The Company's proportionate share of components of net periodic benefit costs and other changes in plan assets and benefit obligations recognized in OCI were as follows:
Years Ended December 31, ----------------------------------------------------------------------- 2014 2013 2012 ----------------------- ----------------------- ----------------------- Other Other Other Pension Postretirement Pension Postretirement Pension Postretirement Benefits Benefits Benefits Benefits Benefits Benefits -------- -------------- -------- -------------- -------- -------------- (In millions) Net periodic benefit costs Service costs....................... $ 200 $ 14 $ 214 $ 17 $ 195 $ 31 Interest costs...................... 437 92 366 85 383 97 Settlement and curtailment costs............................. 14 2 -- -- -- -- Expected return on plan assets............................ (475) (75) (453) (74) (456) (76) Amortization of net actuarial (gains) losses.................... 169 11 219 51 188 53 Amortization of prior service costs (credit).................... 1 (1) 6 (69) 6 (97) Allocated to affiliates............. (54) (11) (12) -- (12) (1) -------- ------- -------- ------- -------- ------- Total net periodic benefit costs (credit).................. 292 32 340 10 304 7 -------- ------- -------- ------- -------- ------- Other changes in plan assets and benefit obligations recognized in OCI Net actuarial (gains) losses........ 996 222 (492) (532) 705 232 Prior service costs (credit)........ (18) (12) -- -- -- -- Amortization of net actuarial (gains) losses.................... (169) (11) (219) (55) (189) (57) Amortization of prior service (costs) credit.................... (1) 1 (6) 75 (6) 104 -------- ------- -------- ------- -------- ------- Total recognized in OCI........... 808 200 (717) (512) 510 279 -------- ------- -------- ------- -------- ------- Total recognized in net periodic benefit costs and OCI........................... $ 1,100 $ 232 $ (377) $ (502) $ 814 $ 286 ======== ======= ======== ======= ======== =======
The estimated net actuarial (gains) losses and prior service costs (credit) for the pension plans and the defined benefit other postretirement benefit plans that will be amortized from AOCI into net periodic benefit costs over the next year are $200 million and ($1) million, and $31 million and ($4) million, respectively. 142 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans (continued) Assumptions Assumptions used in determining benefit obligations were as follows at:
December 31, --------------------------------------------------------------------------- 2014 2013 ------------------------------------- ------------------------------------- Other Postretirement Other Postretirement Pension Benefits Benefits Pension Benefits Benefits ---------------- -------------------- ---------------- -------------------- Weighted average discount rate. 4.10% 4.10% 5.15% 5.15% Rate of compensation increase.. 2.25% - 8.50% N/A 3.50% - 7.50% N/A
Assumptions used in determining net periodic benefit costs were as follows:
Years Ended December 31, ----------------------------------------------------------------------------------------------- 2014 2013 2012 ------------------------------- ------------------------------- ------------------------------- Other Other Other Postretirement Postretirement Postretirement Pension Benefits Benefits Pension Benefits Benefits Pension Benefits Benefits ---------------- -------------- ---------------- -------------- ---------------- -------------- Weighted average discount rate...... 5.15% 5.15% 4.20% 4.20% 4.95% 4.95% Weighted average expected rate of return on plan assets............. 6.25% 5.70% 6.24% 5.76% 7.00% 6.26% Rate of compensation increase........... 3.50% - 7.50% N/A 3.50% - 7.50% N/A 3.50% - 7.50% N/A
The weighted average discount rate is determined annually based on the yield, measured on a yield to worst basis, of a hypothetical portfolio constructed of high quality debt instruments available on the valuation date, which would provide the necessary future cash flows to pay the aggregate PBO when due. The weighted average expected rate of return on plan assets is based on anticipated performance of the various asset sectors in which the plan invests, weighted by target allocation percentages. Anticipated future performance is based on long-term historical returns of the plan assets by sector, adjusted for the Company's long-term expectations on the performance of the markets. While the precise expected rate of return derived using this approach will fluctuate from year to year, the Company's policy is to hold this long-term assumption constant as long as it remains within reasonable tolerance from the derived rate. The weighted average expected rate of return on plan assets for use in that plan's valuation in 2015 is currently anticipated to be 6.24% for pension benefits and 5.65% for other postretirement benefits. 143 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans (continued) The assumed healthcare costs trend rates used in measuring the APBO and net periodic benefit costs were as follows:
December 31, ----------------------------------------------------------------------------- 2014 2013 ------------------------------------- ------------------------------------- Pre-and Post-Medicare eligible claims 6.4% for 2015, gradually decreasing 6.4% in 2014, gradually decreasing each year for Pre-Medicare until 2094 each year until 2094 reaching the reaching the ultimate rate of 4.4% ultimate rate of 4.4% for Pre- and for Post-Medicare until 2089 Medicare and 4.6% for Post-Medicare. reaching the ultimate rate of 4.7%
Assumed healthcare costs trend rates may have a significant effect on the amounts reported for healthcare plans. A 1% change in assumed healthcare costs trend rates would have the following effects as of December 31, 2014:
One Percent One Percent Increase Decrease ----------- ----------- (In millions) Effect on total of service and interest costs components. $ 14 $ (11) Effect of accumulated postretirement benefit obligations. $ 302 $ (245)
As of December 31, 2014, the improved mortality rate assumption used for all U.S. pension and postretirement benefit plans is the RP-2000 healthy mortality table projected generationally using 175% of Scale AA. The mortality rate assumption was revised based upon the results of a comprehensive study of MetLife's demographic experience and reflects the current best estimate of expected mortality rates for MetLife's participant population. Prior to December 31, 2014, the mortality rate assumption used to value the benefit obligations and net periodic benefit cost for these plans was the RP-2000 healthy mortality table projected generationally using 100% of Scale AA. Plan Assets The pension and other postretirement benefit plan assets are categorized into a three-level fair value hierarchy, as defined in Note 10, based upon the significant input with the lowest level in its valuation. The following summarizes the types of assets included within the three-level fair value hierarchy presented below. Level 1This category includes separate accounts that are invested in fixed maturity securities, equity securities, derivative assets and short-term investments which have unadjusted quoted market prices in active markets for identical assets and liabilities. Level 2This category includes certain separate accounts that are primarily invested in liquid and readily marketable securities. The estimated fair value of such separate account is based upon reported NAV provided by fund managers and this value represents the amount at which transfers into and out of the respective separate account are effected. These separate accounts provide reasonable levels of price transparency and can be corroborated through observable market data. Directly held investments are primarily invested in U.S. and foreign government and corporate securities. 144 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans (continued) Level 3This category includes separate accounts that are invested in fixed maturity securities, equity securities, derivative assets and other investments that provide little or no price transparency due to the infrequency with which the underlying assets trade and generally require additional time to liquidate in an orderly manner. Accordingly, the values for separate accounts invested in these alternative asset classes are based on inputs that cannot be readily derived from or corroborated by observable market data. Certain separate accounts are invested in investment partnerships designated as hedge funds. The values for these separate accounts is determined monthly based on the NAV of the underlying hedge fund investment. Additionally, such hedge funds generally contain lock out or other waiting period provisions for redemption requests to be filled. While the reporting and redemption restrictions may limit the frequency of trading activity in separate accounts invested in hedge funds, the reported NAV, and thus the referenced value of the separate account, provides a reasonable level of price transparency that can be corroborated through observable market data. The Company provides employees with benefits under various Employee Retirement Income Security Act of 1974 ("ERISA") benefit plans. These include qualified pension plans, postretirement medical plans and certain retiree life insurance coverage. The assets of the Company's qualified pension plans are held in an insurance group annuity contract, and the vast majority of the assets of the postretirement medical plan and backing the retiree life coverage are held in a trust which largely utilizes insurance contracts to hold the assets. All of these contracts are issued by the Company's insurance affiliates, and the assets under the contracts are held in insurance separate accounts that have been established by the Company. The underlying assets of the separate accounts are principally comprised of cash and cash equivalents, short-term investments, fixed maturity and equity securities, derivatives, real estate, private equity investments and hedge fund investments. The insurance contract provider engages investment management firms ("Managers") to serve as sub-advisors for the separate accounts based on the specific investment needs and requests identified by the plan fiduciary. These Managers have portfolio management discretion over the purchasing and selling of securities and other investment assets pursuant to the respective investment management agreements and guidelines established for each insurance separate account. The assets of the qualified pension plans and postretirement medical plans (the "Invested Plans") are well diversified across multiple asset categories and across a number of different Managers, with the intent of minimizing risk concentrations within any given asset category or with any given Manager. The Invested Plans, other than those held in participant directed investment accounts, are managed in accordance with investment policies consistent with the longer-term nature of related benefit obligations and within prudent risk parameters. Specifically, investment policies are oriented toward (i) maximizing the Invested Plan's funded status; (ii) minimizing the volatility of the Invested Plan's funded status; (iii) generating asset returns that exceed liability increases; and (iv) targeting rates of return in excess of a custom benchmark and industry standards over appropriate reference time periods. These goals are expected to be met through identifying appropriate and diversified asset classes and allocations, ensuring adequate liquidity to pay benefits and expenses when due and controlling the costs of administering and managing the Invested Plan's investments. Independent investment consultants are periodically used to evaluate the investment risk of Invested Plan's assets relative to liabilities, analyze the economic and portfolio impact of various asset allocations and management strategies and to recommend asset allocations. 145 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans (continued) Derivative contracts may be used to reduce investment risk, to manage duration and to replicate the risk/return profile of an asset or asset class. Derivatives may not be used to leverage a portfolio in any manner, such as to magnify exposure to an asset, asset class, interest rates or any other financial variable. Derivatives are also prohibited for use in creating exposures to securities, currencies, indices or any other financial variable that is otherwise restricted. The table below summarizes the actual weighted average allocation of the fair value of total plan assets by asset class at December 31 for the years indicated and the approved target allocation by major asset class at December 31, 2014 for the Invested Plans:
December 31, ---------------------------------------------------------------------------------------------- 2014 2013 ----------------------------------------------------- ---------------------------------------- Postretirement Postretirement Postretirement Postretirement Pension Medical Life Pension Medical Life ----------------- ----------------- ----------------- ---------- -------------- -------------- Actual Actual Actual Actual Actual Actual Target Allocation Target Allocation Target Allocation Allocation Allocation Allocation ------ ---------- ------ ---------- ------ ---------- ---------- -------------- -------------- Asset Class Fixed maturity securities (1). 75% 69% 70% 71% --% --% 64% 66% --% Equity securities (2)......... 12% 15% 30% 27% --% --% 23% 33% --% Alternative securities (3).... 13% 16% --% 2% 100% 100% 13% 1% 100% ---- ---- ---- ---- ---- ---- Total assets................ 100% 100% 100% 100% 100% 100% ==== ==== ==== ==== ==== ====
-------- (1)Fixed maturity securities include ABS, collateralized mortgage obligations, corporate, federal agency, foreign bonds, mortgage-backed securities, municipals, preferred stocks, U.S. government bonds and exchange traded funds. Certain prior year amounts have been reclassified from equity securities into fixed maturity securities to conform to the current year presentation. (2)Equity securities primarily include common stock of U.S. companies. (3)Alternative securities primarily include derivative assets, money market securities, short-term investments and other investments. Postretirement life's target and actual allocation of plan assets are all in short-term investments. 146 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans (continued) The pension and postretirement plan assets measured at estimated fair value on a recurring basis were determined as described in "-- Plan Assets." These estimated fair values and their corresponding placement in the fair value hierarchy are summarized as follows:
December 31, 2014 --------------------------------------------------------------------- Pension Benefits Other Postretirement Benefits ----------------------------------- --------------------------------- Fair Value Hierarchy Fair Value Hierarchy ------------------------- ----------------------- Total Total Estimated Estimated Fair Fair Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 Value -------- -------- ------- --------- ------- ------- ------- --------- (In millions) Assets Fixed maturity securities: Corporate................. $ -- $ 2,638 $ 80 $ 2,718 $ 42 $ 244 $ 3 $ 289 U.S. government bonds................... 1,605 223 -- 1,828 169 12 -- 181 Foreign bonds............. -- 718 17 735 -- 68 -- 68 Federal agencies.......... -- 254 -- 254 -- 35 -- 35 Municipals................ -- 270 -- 270 -- 74 -- 74 Other (1)................. -- 188 8 196 -- 63 -- 63 -------- -------- ------ -------- ------ ------ ---- -------- Total fixed maturity securities............ 1,605 4,291 105 6,001 211 496 3 710 -------- -------- ------ -------- ------ ------ ---- -------- Equity securities: Common stock - domestic................ 951 -- -- 951 188 -- -- 188 Common stock - foreign................. 394 -- -- 394 80 -- -- 80 -------- -------- ------ -------- ------ ------ ---- -------- Total equity securities............ 1,345 -- -- 1,345 268 -- -- 268 -------- -------- ------ -------- ------ ------ ---- -------- Other investments.......... -- 24 743 767 -- -- -- -- Short-term investments..... 189 273 -- 462 14 433 -- 447 Money market securities............... 29 56 -- 85 -- -- -- -- Derivative assets.......... 11 7 72 90 -- 1 -- 1 -------- -------- ------ -------- ------ ------ ---- -------- Total assets............ $ 3,179 $ 4,651 $ 920 $ 8,750 $ 493 $ 930 $ 3 $ 1,426 ======== ======== ====== ======== ====== ====== ==== ========
147 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans (continued)
December 31, 2013 --------------------------------------------------------------------- Pension Benefits Other Postretirement Benefits ----------------------------------- --------------------------------- Fair Value Hierarchy Fair Value Hierarchy ------------------------- ----------------------- Total Total Estimated Estimated Fair Fair Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 Value -------- -------- ------- --------- ------- ------- ------- --------- (In millions) Assets Fixed maturity securities: Corporate................. $ -- $ 1,948 $ 55 $ 2,003 $ 77 $ 170 $ 1 $ 248 U.S. government bonds................... 868 156 -- 1,024 135 5 -- 140 Foreign bonds............. -- 675 10 685 -- 63 -- 63 Federal agencies.......... -- 274 -- 274 -- 33 -- 33 Municipals................ -- 206 -- 206 55 15 -- 70 Other (1)................. -- 460 19 479 -- 54 -- 54 -------- -------- ------ -------- ------ ------ ---- -------- Total fixed maturity securities............ 868 3,719 84 4,671 267 340 1 608 -------- -------- ------ -------- ------ ------ ---- -------- Equity securities: Common stock - domestic................ 1,064 21 139 1,224 196 -- -- 196 Common stock - foreign................. 432 -- -- 432 102 -- -- 102 -------- -------- ------ -------- ------ ------ ---- -------- Total equity securities............ 1,496 21 139 1,656 298 -- -- 298 -------- -------- ------ -------- ------ ------ ---- -------- Other investments.......... -- -- 563 563 -- -- -- -- Short-term investments..... 49 290 -- 339 -- 439 -- 439 Money market securities............... 1 12 -- 13 4 -- -- 4 Derivative assets.......... 16 14 33 63 -- 3 -- 3 -------- -------- ------ -------- ------ ------ ---- -------- Total assets............ $ 2,430 $ 4,056 $ 819 $ 7,305 $ 569 $ 782 $ 1 $ 1,352 ======== ======== ====== ======== ====== ====== ==== ========
-------- (1)Other primarily includes mortgage-backed securities, collateralized mortgage obligations and ABS. 148 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans (continued) A rollforward of all pension and other postretirement benefit plan assets measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs was as follows:
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ------------------------------------------------------------------------------------------------------- Pension Benefits Other Postretirement Benefits ------------------------------------------------------------- ----------------------------------------- Fixed Maturity Equity Fixed Maturity Securities Securities Securities --------------------------- ---------- ------------------------------ Common Foreign Stock - Other Derivative Derivative Corporate Bonds Other (1) Domestic Investments Assets Corporate Municipals Other (1) Assets --------- ------- --------- ---------- ----------- ---------- --------- ---------- --------- ---------- (In millions) Year Ended December 31, 2014 Balance at January 1, $ 55 $ 10 $ 19 $ 139 $ 563 $ 33 $ 1 $ -- $ -- $ -- Realized gains (losses)............ 3 -- -- -- (13) (16) -- -- -- -- Unrealized gains (losses)............ -- -- -- -- 114 19 1 -- -- -- Purchases, sales, issuances and settlements, net.... 11 5 (2) -- (104) 34 1 -- -- -- Transfers into and/or out of Level 3............. 11 2 (9) (139) 183 2 -- -- -- -- ----- ----- ---- ------ ------ ----- ---- ----- ----- ----- Balance at December 31,........ $ 80 $ 17 $ 8 $ -- $ 743 $ 72 $ 3 $ -- $ -- $ -- ===== ===== ==== ====== ====== ===== ==== ===== ===== =====
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ------------------------------------------------------------------------------------------------------- Pension Benefits Other Postretirement Benefits ------------------------------------------------------------- ----------------------------------------- Fixed Maturity Equity Fixed Maturity Securities Securities Securities --------------------------- ---------- ------------------------------ Common Foreign Stock - Other Derivative Derivative Corporate Bonds Other (1) Domestic Investments Assets Corporate Municipals Other (1) Assets --------- ------- --------- ---------- ----------- ---------- --------- ---------- --------- ---------- (In millions) Year Ended December 31, 2013 Balance at January 1, $ 18 $ 7 $ 7 $ 129 $ 419 $ 1 $ 4 $ 1 $ 3 $ -- Realized gains (losses)............ -- -- -- (1) -- (2) -- -- (3) -- Unrealized gains (losses)............ (2) 1 -- 9 56 (17) -- -- 4 -- Purchases, sales, issuances and settlements, net.... 17 (3) 11 2 (58) 51 (3) (1) (4) -- Transfers into and/or out of Level 3............. 22 5 1 -- 146 -- -- -- -- -- ----- ----- ----- ------ ------ ----- ---- ----- ----- ----- Balance at December 31,........ $ 55 $ 10 $ 19 $ 139 $ 563 $ 33 $ 1 $ -- $ -- $ -- ===== ===== ===== ====== ====== ===== ==== ===== ===== =====
149 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ------------------------------------------------------------------------------------------------------ Pension Benefits Other Postretirement Benefits ------------------------------------------------------------ ---------------------------------------- Fixed Maturity Equity Fixed Maturity Securities Securities Securities --------------------------- ---------- ----------------------------- Common Foreign Stock - Other Derivative Derivative Corporate Bonds Other (1) Domestic Investments Assets Corporate Municipals Other (1) Assets --------- ------- --------- ---------- ----------- ---------- --------- ---------- --------- ---------- (In millions) Year Ended December 31, 2012 Balance at January 1, $ 30 $ 5 $ 2 $ 194 $ 501 $ 4 $ 4 $ 1 $ 5 $ 1 Realized gains (losses)............ -- -- -- (25) 52 4 -- -- (2) 2 Unrealized gains (losses)............ (1) 8 1 9 (38) (6) -- -- 2 (2) Purchases, sales, issuances and settlements, net.... (11) (6) 4 (49) (96) (1) -- -- (2) (1) Transfers into and/or out of Level 3............. -- -- -- -- -- -- -- -- -- -- ----- ---- ---- ------ ------ ---- ---- ---- ---- ----- Balance at December 31,........ $ 18 $ 7 $ 7 $ 129 $ 419 $ 1 $ 4 $ 1 $ 3 $ -- ===== ==== ==== ====== ====== ==== ==== ==== ==== =====
-------- (1)Other includes ABS and collateralized mortgage obligations. Expected Future Contributions and Benefit Payments It is the Company's practice to make contributions to the qualified pension plan to comply with minimum funding requirements of ERISA. In accordance with such practice, no contributions are required for 2015. The Company expects to make discretionary contributions to the qualified pension plan of $300 million in 2015. For information on employer contributions, see "-- Obligations and Funded Status." Benefit payments due under the non-qualified pension plans are primarily funded from the Company's general assets as they become due under the provision of the plans, therefore benefit payments equal employer contributions. The Company expects to make contributions of $70 million to fund the benefit payments in 2015. Postretirement benefits are either: (i) not vested under law; (ii) a non-funded obligation of the Company; or (iii) both. Current regulations do not require funding for these benefits. The Company uses its general assets, net of participant's contributions, to pay postretirement medical claims as they come due. As permitted under the terms of the governing trust document, the Company may be reimbursed from plan assets for postretirement medical claims paid from their general assets. The Company expects to make contributions of $50 million towards benefit obligations in 2015 to pay postretirement medical claims. 150 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans (continued) Gross benefit payments for the next 10 years, which reflect expected future service where appropriate, are expected to be as follows:
Pension Benefits Other Postretirement Benefits ---------------- ----------------------------- (In millions) 2015...... $ 490 $ 81 2016...... $ 507 $ 82 2017...... $ 531 $ 85 2018...... $ 544 $ 88 2019...... $ 565 $ 92 2020-2024. $ 3,134 $ 522
Additional Information As previously discussed, most of the assets of the pension benefit plan are held in a group annuity contract issued by the Company while some of the assets of the postretirement benefit plans are held in a trust which largely utilizes life insurance contracts issued by the Company to hold such assets. Total revenues from these contracts recognized in the consolidated statements of operations were $50 million, $49 million and $54 million for the years ended December 31, 2014, 2013 and 2012, respectively, and included policy charges and net investment income from investments backing the contracts and administrative fees. Total investment income (loss), including realized and unrealized gains (losses), credited to the account balances was $1.2 billion, $20 million and $867 million for the years ended December 31, 2014, 2013 and 2012, respectively. The terms of these contracts are consistent in all material respects with those the Company offers to unaffiliated parties that are similarly situated. Defined Contribution Plans The Company sponsors defined contribution plans for substantially all Company employees under which a portion of employee contributions are matched. The Company contributed $68 million, $84 million and $83 million for the years ended December 31, 2014, 2013 and 2012, respectively. 151 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 16. Income Tax The provision for income tax from continuing operations was as follows:
Years Ended December 31, ------------------------- 2014 2013 2012 -------- ------- -------- (In millions) Current: Federal.......................................... $ 901 $ 789 $ 675 State and local.................................. 3 2 2 Foreign.......................................... 74 176 176 -------- ------- -------- Subtotal....................................... 978 967 853 -------- ------- -------- Deferred: Federal.......................................... 538 (411) 346 Foreign.......................................... 16 125 (144) -------- ------- -------- Subtotal....................................... 554 (286) 202 -------- ------- -------- Provision for income tax expense (benefit)... $ 1,532 $ 681 $ 1,055 ======== ======= ========
The Company's income (loss) from continuing operations before income tax expense (benefit) from domestic and foreign operations were as follows:
Years Ended December 31, -------------------------- 2014 2013 2012 -------- -------- -------- (In millions) Income (loss) from continuing operations: Domestic................................. $ 5,335 $ 2,540 $ 3,153 Foreign.................................. 56 282 545 -------- -------- -------- Total.................................. $ 5,391 $ 2,822 $ 3,698 ======== ======== ========
The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported for continuing operations was as follows:
Years Ended December 31, ------------------------ 2014 2013 2012 -------- ------ -------- (In millions) Tax provision at U.S. statutory rate.......... $ 1,887 $ 988 $ 1,294 Tax effect of: Dividend received deduction.................. (82) (66) (75) Tax-exempt income............................ (40) (42) (43) Prior year tax............................... 11 29 10 Low income housing tax credits............... (205) (190) (142) Other tax credits............................ (66) (44) (18) Foreign tax rate differential................ -- 2 3 Change in valuation allowance................ -- (4) 13 Other, net................................... 27 8 13 -------- ------ -------- Provision for income tax expense (benefit). $ 1,532 $ 681 $ 1,055 ======== ====== ========
152 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 16. Income Tax (continued) Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at:
December 31, ----------------------------------- 2014 2013 ----------------- ----------------- (In millions) Deferred income tax assets: Policyholder liabilities and receivables........ $ 1,577 $ 1,823 Net operating loss carryforwards................ 29 64 Employee benefits............................... 1,015 649 Capital loss carryforwards...................... -- 14 Tax credit carryforwards........................ 979 909 Litigation-related and government mandated...... 259 223 Other........................................... 309 349 ----------------- ----------------- Total gross deferred income tax assets........ 4,168 4,031 Less: Valuation allowance....................... 22 72 ----------------- ----------------- Total net deferred income tax assets.......... 4,146 3,959 ----------------- ----------------- Deferred income tax liabilities: Investments, including derivatives.............. 2,402 2,021 Intangibles..................................... 72 77 DAC............................................. 1,568 1,600 Net unrealized investment gains................. 3,903 2,019 Other........................................... 36 27 ----------------- ----------------- Total deferred income tax liabilities......... 7,981 5,744 ----------------- ----------------- Net deferred income tax asset (liability)... $ (3,835) $ (1,785) ================= =================
See Note 1 for information regarding new guidance adopted by the Company related to the presentation of an unrecognized tax benefit. The Company has recorded a $50 million reduction of valuation allowance as a balance sheet reclassification with other deferred tax assets. The valuation allowance reflects management's assessment, based on available information, that it is more likely than not that the deferred income tax asset for certain state net operating loss carryforwards will not be realized. The tax benefit will be recognized when management believes that it is more likely than not that these deferred income tax assets are realizable. 153 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 16. Income Tax (continued) The following table sets forth the domestic and state net operating loss carryforwards for tax purposes at December 31, 2014.
Net Operating Loss Carryforwards -------------------------------- Domestic State ------------ --------------- (In millions) Expiration 2015-2019.. $ -- $ 32 2020-2024.. -- 44 2025-2029.. -- 53 2030-2034.. 21 8 Indefinite. -- -- ------------ --------------- $ 21 $ 137 ============ ===============
The following table sets forth the general business credits, foreign tax credits, and other tax credit carryforwards for tax purposes at December 31, 2014.
Tax Credit Carryforwards -------------------------------------------------------------- General Business Credits Foreign Tax Credits Other ------------------------ ------------------- ----------------- (In millions) Expiration 2015-2019.. $ -- $ -- $ -- 2020-2024.. -- 301 -- 2025-2029.. 4 -- -- 2030-2034.. 832 -- -- Indefinite. -- -- 32 ------------------ ------------------ ----------------- $ 836 $ 301 $ 32 ================== ================== =================
The Company participates in a tax sharing agreement with MetLife, Inc. as described in Note 1. Pursuant to this tax sharing agreement, the amounts due to (from) affiliates included ($24) million, $157 million and ($14) million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company files income tax returns with the U.S. federal government and various state and local jurisdictions, as well as foreign jurisdictions. The Company is under continuous examination by the Internal Revenue Service ("IRS") and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction and subsidiary. The Company is no longer subject to U.S. federal, state, or local income tax examinations for years prior to 2007, except for 2000 through 2006 where the IRS disallowance relates predominantly to certain tax credits claimed and the Company continues to protest. During June 2014, the IRS concluded its audit of the Company's tax returns for the years 2003 through 2006 and issued a Revenue Agent's report. The Company agreed with certain tax adjustments and filed a protest in 154 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 16. Income Tax (continued) July 2014 for other tax adjustments. Management believes it has established adequate tax liabilities and final resolution of the audit for the years 2003 through 2006 is not expected to have a material impact on the Company's financial statements. The Company's liability for unrecognized tax benefits may increase or decrease in the next 12 months. A reasonable estimate of the increase or decrease cannot be made at this time. However, the Company continues to believe that the ultimate resolution of the pending issues will not result in a material change to its consolidated financial statements, although the resolution of income tax matters could impact the Company's effective tax rate for a particular future period. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:
Years Ended December 31, -------------------------- 2014 2013 2012 -------- -------- -------- (In millions) Balance at January 1,.................................................... $ 532 $ 532 $ 525 Additions for tax positions of prior years............................... 27 50 27 Reductions for tax positions of prior years.............................. (13) (4) (5) Additions for tax positions of current year.............................. 3 3 -- Settlements with tax authorities......................................... (3) (49) (15) -------- -------- -------- Balance at December 31,.................................................. $ 546 $ 532 $ 532 ======== ======== ======== Unrecognized tax benefits that, if recognized would impact the effective rate................................................................... $ 497 $ 491 $ 466 ======== ======== ========
The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses, while penalties are included in income tax expense. Interest was as follows:
Years Ended December 31, ----------------------- 2014 2013 2012 ------- -------- ------ (In millions) Interest recognized in the consolidated statements of operations. $ 37 $ 17 $ 8 December 31, --------------- 2014 2013 -------- ------ (In millions) Interest included in other liabilities in the consolidated balance sheets. $ 265 $ 228
The Company had no penalties for the years ended December 31, 2014, 2013 and 2012. The U.S. Treasury Department and the IRS have indicated that they intend to address through regulations the methodology to be followed in determining the dividends received deduction ("DRD"), related to variable life insurance and annuity contracts. The DRD reduces the amount of dividend income subject to tax and is a 155 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 16. Income Tax (continued) significant component of the difference between the actual tax expense and expected amount determined using the federal statutory tax rate of 35%. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other interested parties will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. As a result, the ultimate timing and substance of any such regulations are unknown at this time. For the years ended December 31, 2014 and 2013, the Company recognized an income tax benefit of $92 million and $53 million, respectively, related to the separate account DRD. The 2014 benefit included a benefit of $16 million related to a true-up of the 2013 tax return. The 2013 benefit included an expense of $7 million related to a true-up of the 2012 tax return. 17. Contingencies, Commitments and Guarantees Contingencies Litigation The Company is a defendant in a large number of litigation matters. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been established for a number of the matters noted below. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at December 31, 2014. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known to management, management does not believe any such charges are likely to have a material effect on the Company's financial position. Matters as to Which an Estimate Can Be Made For some of the matters disclosed below, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. 156 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 17. Contingencies, Commitments and Guarantees (continued) As of December 31, 2014, the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $390 million. Matters as to Which an Estimate Cannot Be Made For other matters disclosed below, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Asbestos-Related Claims Metropolitan Life Insurance Company is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege that the plaintiff or plaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. Metropolitan Life Insurance Company has never engaged in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products nor has Metropolitan Life Insurance Company issued liability or workers' compensation insurance to companies in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication and other activities of one or more of Metropolitan Life Insurance Company's employees during the period from the 1920's through approximately the 1950's and allege that Metropolitan Life Insurance Company learned or should have learned of certain health risks posed by asbestos and, among other things, improperly publicized or failed to disclose those health risks. Metropolitan Life Insurance Company believes that it should not have legal liability in these cases. The outcome of most asbestos litigation matters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the nature of the alleged injury and factors unrelated to the ultimate legal merit of the claims asserted against Metropolitan Life Insurance Company. Metropolitan Life Insurance Company employs a number of resolution strategies to manage its asbestos loss exposure, including seeking resolution of pending litigation by judicial rulings and settling individual or groups of claims or lawsuits under appropriate circumstances. Claims asserted against Metropolitan Life Insurance Company have included negligence, intentional tort and conspiracy concerning the health risks associated with asbestos. Metropolitan Life Insurance Company's defenses (beyond denial of certain factual allegations) include that: (i) Metropolitan Life Insurance Company owed no duty to the plaintiffs -- it had no special relationship with the plaintiffs and did not manufacture, produce, distribute or sell the asbestos products that allegedly injured plaintiffs; (ii) plaintiffs did not rely on any actions of Metropolitan Life Insurance Company; (iii) Metropolitan Life Insurance Company's conduct was not the cause of the plaintiffs' injuries; (iv) plaintiffs' exposure occurred after the dangers of asbestos were known; and (v) the applicable time with respect to filing suit has expired. During the course of the litigation, certain trial courts have granted motions dismissing claims against Metropolitan Life Insurance Company, while other trial courts have denied Metropolitan Life Insurance Company's motions. There can be 157 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 17. Contingencies, Commitments and Guarantees (continued) no assurance that Metropolitan Life Insurance Company will receive favorable decisions on motions in the future. While most cases brought to date have settled, Metropolitan Life Insurance Company intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials. The approximate total number of asbestos personal injury claims pending against Metropolitan Life Insurance Company as of the dates indicated, the approximate number of new claims during the years ended on those dates and the approximate total settlement payments made to resolve asbestos personal injury claims at or during those years are set forth in the following table:
December 31, -------------------------------------- 2014 2013 2012 ----------- ----------- ----------- (In millions, except number of claims) Asbestos personal injury claims at year end. 68,460 67,983 65,812 Number of new claims during the year........ 4,636 5,898 5,303 Settlement payments during the year (1)..... $ 46.0 $ 37.0 $ 36.4
-------- (1)Settlement payments represent payments made by MLIC during the year in connection with settlements made in that year and in prior years. Amounts do not include MLIC's attorneys' fees and expenses and do not reflect amounts received from insurance carriers. The number of asbestos cases that may be brought, the aggregate amount of any liability that Metropolitan Life Insurance Company may incur, and the total amount paid in settlements in any given year are uncertain and may vary significantly from year to year. The ability of Metropolitan Life Insurance Company to estimate its ultimate asbestos exposure is subject to considerable uncertainty, and the conditions impacting its liability can be dynamic and subject to change. The availability of reliable data is limited and it is difficult to predict the numerous variables that can affect liability estimates, including the number of future claims, the cost to resolve claims, the disease mix and severity of disease in pending and future claims, the impact of the number of new claims filed in a particular jurisdiction and variations in the law in the jurisdictions in which claims are filed, the possible impact of tort reform efforts, the willingness of courts to allow plaintiffs to pursue claims against Metropolitan Life Insurance Company when exposure to asbestos took place after the dangers of asbestos exposure were well known, and the impact of any possible future adverse verdicts and their amounts. The ability to make estimates regarding ultimate asbestos exposure declines significantly as the estimates relate to years further in the future. In the Company's judgment, there is a future point after which losses cease to be probable and reasonably estimable. It is reasonably possible that the Company's total exposure to asbestos claims may be materially greater than the asbestos liability currently accrued and that future charges to income may be necessary. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material effect on the Company's financial position. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for asbestos-related claims. Metropolitan Life Insurance Company's 158 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 17. Contingencies, Commitments and Guarantees (continued) recorded asbestos liability is based on its estimation of the following elements, as informed by the facts presently known to it, its understanding of current law and its past experiences: (i) the probable and reasonably estimable liability for asbestos claims already asserted against Metropolitan Life Insurance Company, including claims settled but not yet paid; (ii) the probable and reasonably estimable liability for asbestos claims not yet asserted against Metropolitan Life Insurance Company, but which Metropolitan Life Insurance Company believes are reasonably probable of assertion; and (iii) the legal defense costs associated with the foregoing claims. Significant assumptions underlying Metropolitan Life Insurance Company's analysis of the adequacy of its recorded liability with respect to asbestos litigation include: (i) the number of future claims; (ii) the cost to resolve claims; and (iii) the cost to defend claims. Metropolitan Life Insurance Company reevaluates on a quarterly and annual basis its exposure from asbestos litigation, including studying its claims experience, reviewing external literature regarding asbestos claims experience in the United States, assessing relevant trends impacting asbestos liability and considering numerous variables that can affect its asbestos liability exposure on an overall or per claim basis. These variables include bankruptcies of other companies involved in asbestos litigation, legislative and judicial developments, the number of pending claims involving serious disease, the number of new claims filed against it and other defendants and the jurisdictions in which claims are pending. Based upon its reevaluation of its exposure from asbestos litigation, Metropolitan Life Insurance Company has updated its liability analysis for asbestos-related claims through December 31, 2014. The frequency and severity of claims relating to asbestos have increased, and Metropolitan Life Insurance Company has reflected this in its provisions. Accordingly, Metropolitan Life Insurance Company increased its recorded liability for asbestos related claims to $690 million at December 31, 2014. Regulatory Matters The Company receives and responds to subpoenas or other inquiries from state regulators, including state insurance commissioners; state attorneys general or other state governmental authorities; federal regulators, including the U.S. Securities and Exchange Commission ("SEC") ; federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority ("FINRA") seeking a broad range of information. The issues involved in information requests and regulatory matters vary widely. The Company cooperates in these inquiries. In the Matter of Chemform, Inc. Site, Pompano Beach, Broward County, Florida In July 2010, the Environmental Protection Agency ("EPA") advised Metropolitan Life Insurance Company that it believed payments were due under two settlement agreements, known as "Administrative Orders on Consent," that New England Mutual Life Insurance Company ("New England Mutual") signed in 1989 and 1992 with respect to the cleanup of a Superfund site in Florida (the "Chemform Site"). The EPA originally contacted Metropolitan Life Insurance Company (as successor to New England Mutual) and a third party in 2001, and advised that they owed additional clean-up costs for the Chemform Site. The matter was not resolved at that time. The EPA is requesting payment of an amount under $1 million from Metropolitan Life Insurance Company and such third party for past costs and an additional amount for future environmental testing costs at the Chemform Site. In September 2012, the EPA, Metropolitan Life Insurance Company and the third party executed an Administrative Order on Consent under which Metropolitan Life Insurance Company and the third party have agreed to be responsible for certain environmental testing at the 159 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 17. Contingencies, Commitments and Guarantees (continued) Chemform site. The Company estimates that its costs for the environmental testing will not exceed $100,000. The September 2012 Administrative Order on Consent does not resolve the EPA's claim for past clean-up costs. The EPA may seek additional costs if the environmental testing identifies issues. The Company estimates that the aggregate cost to resolve this matter will not exceed $1 million. Sales Practices Regulatory Matters. Regulatory authorities in a small number of states and FINRA, and occasionally the SEC, have had investigations or inquiries relating to sales of individual life insurance policies or annuities or other products by Metropolitan Life Insurance Company, NELICO and GALIC. These investigations often focus on the conduct of particular financial services representatives and the sale of unregistered or unsuitable products or the misuse of client assets. Over the past several years, these and a number of investigations by other regulatory authorities were resolved for monetary payments and certain other relief, including restitution payments. The Company may continue to resolve investigations in a similar manner. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for these sales practices-related investigations or inquiries. Unclaimed Property Litigation On September 20, 2012, the West Virginia Treasurer filed an action against Metropolitan Life Insurance Company in West Virginia state court (West Virginia ex rel. John D. Perdue v. Metropolitan Life Insurance Company, Circuit Court of Putnam County, Civil Action No. 12-C-295) alleging that Metropolitan Life Insurance Company violated the West Virginia Uniform Unclaimed Property Act, seeking to compel compliance with the Act, and seeking payment of unclaimed property, interest, and penalties. On November 21, 2012 and January 9, 2013, the Treasurer filed substantially identical suits against NELICO and GALIC, respectively. On December 30, 2013, the court granted defendants' motions to dismiss all of the West Virginia Treasurer's actions. The Treasurer has appealed the dismissal order. Total Control Accounts Litigation Metropolitan Life Insurance Company is a defendant in lawsuits related to its use of retained asset accounts, known as Total Control Accounts ("TCA"), as a settlement option for death benefits. Keife, et al. v. Metropolitan Life Insurance Company (D. Nev., filed in state court on July 30, 2010 and removed to federal court on September 7, 2010); and Simon v. Metropolitan Life Insurance Company (D. Nev., filed November 3, 2011) These putative class action lawsuits, which have been consolidated, raise breach of contract claims arising from Metropolitan Life Insurance Company's use of the TCA to pay life insurance benefits under the Federal Employees' Group Life Insurance program. On March 8, 2013, the court granted Metropolitan Life Insurance Company's motion for summary judgment. Plaintiffs have appealed that decision to the United States Court of Appeals for the Ninth Circuit. Owens v. Metropolitan Life Insurance Company (N.D. Ga., filed April 17, 2014) This putative class action lawsuit alleges that Metropolitan Life Insurance Company's use of the TCA as the settlement option for life insurance benefits under some group life insurance policies violates 160 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 17. Contingencies, Commitments and Guarantees (continued) Metropolitan Life Insurance Company's fiduciary duties under ERISA. As damages, plaintiff seeks disgorgement of profits that Metropolitan Life Insurance Company realized on accounts owned by members of the putative class. Metropolitan Life Insurance Company moved to dismiss the complaint and intends to defend this action vigorously. Other Litigation McGuire v. Metropolitan Life Insurance Company (E.D. Mich., filed February 22, 2012) This lawsuit was filed by the fiduciary for the Union Carbide Employees' Pension Plan and alleges that Metropolitan Life Insurance Company, which issued annuity contracts to fund some of the benefits the Plan provides, engaged in transactions that ERISA prohibits and violated duties under ERISA and federal common law by determining that no dividends were payable with respect to the contracts from and after 1999. On August 8, 2014, the court denied the parties' motion for summary judgment. The court has not yet set a new trial date. Sun Life Assurance Company of Canada Indemnity Claim In 2006, Sun Life Assurance Company of Canada ("Sun Life"), as successor to the purchaser of Metropolitan Life Insurance Company's Canadian operations, filed a lawsuit in Toronto, seeking a declaration that Metropolitan Life Insurance Company remains liable for "market conduct claims" related to certain individual life insurance policies sold by Metropolitan Life Insurance Company and that were transferred to Sun Life. Sun Life had asked that the court require Metropolitan Life Insurance Company to indemnify Sun Life for these claims pursuant to indemnity provisions in the sale agreement for the sale of Metropolitan Life Insurance Company's Canadian operations entered into in June of 1998. In January 2010, the court found that Sun Life had given timely notice of its claim for indemnification but, because it found that Sun Life had not yet incurred an indemnifiable loss, granted Metropolitan Life Insurance Company's motion for summary judgment. Both parties appealed but subsequently agreed to withdraw the appeal and consider the indemnity claim through arbitration. In September 2010, Sun Life notified Metropolitan Life Insurance Company that a purported class action lawsuit was filed against Sun Life in Toronto, Fehr v. Sun Life Assurance Co. (Super. Ct., Ontario, September 2010), alleging sales practices claims regarding the same individual policies sold by Metropolitan Life Insurance Company and transferred to Sun Life. An amended class action complaint in that case was served on Sun Life in May 2013, again without naming Metropolitan Life Insurance Company as a party. On August 30, 2011, Sun Life notified Metropolitan Life Insurance Company that a purported class action lawsuit was filed against Sun Life in Vancouver, Alamwala v. Sun Life Assurance Co. (Sup. Ct., British Columbia, August 2011), alleging sales practices claims regarding certain of the same policies sold by Metropolitan Life Insurance Company and transferred to Sun Life. Sun Life contends that Metropolitan Life Insurance Company is obligated to indemnify Sun Life for some or all of the claims in these lawsuits. These sales practices cases against Sun Life are ongoing and the Company is unable to estimate the reasonably possible loss or range of loss arising from this litigation. 161 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 17. Contingencies, Commitments and Guarantees (continued) C-Mart, Inc. v. Metropolitan Life Ins. Co., et al. (S.D. Fla., January 10, 2013); Cadenasso v. Metropolitan Life Insurance Co., et al. (N.D. Cal., November 26, 2013, subsequently transferred to S.D. Fla. 2013); and Fauley v. Metropolitan Life Insurance Co., et al. (Circuit Court of the 19th Judicial Circuit, Lake County, Ill., July 3, 2014) Plaintiffs filed these lawsuits against defendants, including Metropolitan Life Insurance Company and a former MetLife financial services representative, alleging that the defendants sent unsolicited fax advertisements to plaintiff and others in violation of the Telephone Consumer Protection Act, as amended by the Junk Fax Prevention Act, 47 U.S.C. (S) 227 ("TCPA"). The C-Mart and Cadenasso cases were voluntarily dismissed. In the Fauley case, the Illinois court certified a nationwide settlement class and approved a settlement under which Metropolitan Life Insurance Company has agreed to pay up to $23 million to resolve claims as to fax ads sent between August 23, 2008 and the date of the preliminary approval in August 2014. Robainas v. Metropolitan Life Ins. Co. and MetLife, Inc. (S.D.N.Y., December 16, 2014); International Association of Machinists and Aerospace Workers District Lodge 15 v. Metropolitan Life Insurance Co. (E.D.N.Y., February 2, 2015) Plaintiffs filed these putative class action lawsuits on behalf of themselves and all persons and entities who, directly or indirectly, purchased, renewed or paid premiums on life insurance policies issued by Metropolitan Life Insurance Company from 2009 through 2014 (the "Policies"). The complaints allege that Metropolitan Life Insurance Company inadequately disclosed in its statutory annual statements that certain reinsurance transactions with affiliated reinsurance companies were collateralized using "contractual parental guarantees," and thereby allegedly misrepresented its financial condition and the adequacy of its reserves. The lawsuits seek recovery under Section 4226 of the New York Insurance Law of a statutory penalty in the amount of the premiums paid for the Policies. MetLife intends to defend these actions vigorously. Sales Practices Claims Over the past several years, the Company has faced numerous claims, including class action lawsuits, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds or other products. Some of the current cases seek substantial damages, including punitive and treble damages and attorneys' fees. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters. Summary Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company's consolidated financial statements, have arisen in the course of the Company's business, including, but not limited to, in connection with its activities as an insurer, employer, investor, investment advisor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company's compliance with applicable insurance and other laws and regulations. 162 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 17. Contingencies, Commitments and Guarantees (continued) It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company's financial position, based on information currently known by the Company's management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company's consolidated net income or cash flows in particular quarterly or annual periods. Insolvency Assessments Most of the jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guaranty associations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. Assets and liabilities held for insolvency assessments were as follows:
December 31, --------------- 2014 2013 ------- ------- (In millions) Other Assets: Premium tax offset for future undiscounted assessments....... $ 34 $ 46 Premium tax offsets currently available for paid assessments. 65 54 ------- ------- $ 99 $ 100 ======= ======= Other Liabilities: Insolvency assessments....................................... $ 50 $ 67 ======= =======
163 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 17. Contingencies, Commitments and Guarantees (continued) Commitments Leases The Company, as lessee, has entered into various lease and sublease agreements for office space, information technology, aircrafts and other equipment. Future minimum gross rental payments relating to these lease arrangements are as follows:
Amount ------------- (In millions) 2015....... $ 223 2016....... 190 2017....... 147 2018....... 133 2019....... 110 Thereafter. 701 ------------ Total..... $ 1,504 ============
Total minimum rentals to be received in the future under non-cancelable subleases were $ 108 million as of December 31, 2014. Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $3.9 billion and $3.1 billion at December 31, 2014 and 2013, respectively. Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments The Company commits to fund partnership investments and to lend funds under bank credit facilities, bridge loans and private corporate bond investments. The amounts of these unfunded commitments were $3.6 billion and $3.4 billion at December 31, 2014 and 2013, respectively. Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual 164 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 17. Contingencies, Commitments and Guarantees (continued) limitation ranging from less than $1 million to $800 million, with a cumulative maximum of $1.1 billion, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company's interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. The Company's recorded liabilities were $3 million at both December 31, 2014 and 2013, for indemnities, guarantees and commitments. 18. Quarterly Results of Operations (Unaudited) The unaudited quarterly results of operations for 2014 and 2013 are summarized in the table below:
Three Months Ended ------------------------------------------------ March 31, June 30, September 30, December 31, ---------- ---------- ------------- ------------ (In millions) 2014 Total revenues...................................... $ 9,037 $ 9,252 $ 9,857 $ 10,585 Total expenses...................................... $ 7,889 $ 8,210 $ 8,017 $ 9,224 Income (loss) from continuing operations, net of income tax........................................ $ 828 $ 749 $ 1,303 $ 979 Income (loss) from discontinued operations, net of income tax........................................ $ (3) $ -- $ -- $ -- Net income (loss)................................... $ 825 $ 749 $ 1,303 $ 979 Less: Net income (loss) attributable to noncontrolling interests.......................... $ 1 $ -- $ (7) $ 1 Net income (loss) attributable to Metropolitan Life Insurance Company................................. $ 824 $ 749 $ 1,310 $ 978 2013 Total revenues...................................... $ 8,766 $ 8,632 $ 8,018 $ 9,884 Total expenses...................................... $ 7,843 $ 7,771 $ 7,758 $ 9,106 Income (loss) from continuing operations, net of income tax........................................ $ 673 $ 646 $ 242 $ 580 Income (loss) from discontinued operations, net of income tax........................................ $ -- $ -- $ -- $ 1 Net income (loss)................................... $ 673 $ 646 $ 242 $ 581 Less: Net income (loss) attributable to noncontrolling interests.......................... $ (1) $ 3 $ (5) $ (4) Net income (loss) attributable to Metropolitan Life Insurance Company................................. $ 674 $ 643 $ 247 $ 585
165 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 19. Related Party Transactions Service Agreements The Company has entered into various agreements with affiliates for services necessary to conduct its activities. Typical services provided under these agreements include personnel, policy administrative functions and distribution services. For certain agreements, charges are based on various performance measures or activity-based costing. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the Company and/or affiliate. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $2.1 billion, $2.4 billion and $2.6 billion for the years ended December 31, 2014, 2013 and 2012, respectively. Revenues received from affiliates related to these agreements, recorded in universal life and investment-type product policy fees, were $129 million, $127 million and $108 million for the years ended December 31, 2014, 2013 and 2012, respectively. Revenues received from affiliates related to these agreements, recorded in other revenues, were $177 million, $142 million and $113 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company also entered into agreements with affiliates to provide additional services necessary to conduct the affiliates' activities. Typical services provided under these agreements include management, policy administrative functions, investment advice and distribution services. Expenses incurred by the Company related to these agreements, included in other expenses, were $1.8 billion, $1.4 billion and $1.6 billion for the years ended December 31, 2014, 2013 and 2012, respectively, and were reimbursed to the Company by these affiliates. The Company had net payables to affiliates, related to the items discussed above, of $169 million and $327 million at December 31, 2014 and 2013, respectively. See Notes 6, 8, 9 and 12 for additional information on related party transactions. 166 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule I Consolidated Summary of Investments -- Other Than Investments in Related Parties December 31, 2014 (In millions)
Amount at Cost or Estimated Which Shown on Amortized Cost (1) Fair Value Balance Sheet Types of Investments ------------------ ------------ -------------- Fixed maturity securities: Bonds: U.S. Treasury and agency securities........ $ 34,391 $ 39,070 $ 39,070 Public utilities........................... 14,945 16,861 16,861 State and political subdivision securities. 5,329 6,520 6,520 Foreign government securities.............. 3,153 3,844 3,844 All other corporate bonds.................. 71,950 77,200 77,200 ---------------- ------------ -------------- Total bonds.............................. 129,768 143,495 143,495 Mortgage-backed and asset-backed securities.. 42,804 44,302 44,302 Redeemable preferred stock................... 1,032 1,114 1,114 ---------------- ------------ -------------- Total fixed maturity securities........ 173,604 188,911 188,911 ---------------- ------------ -------------- Trading and fair value option securities...... 720 705 705 ---------------- ------------ -------------- Equity securities: Common stock: Industrial, miscellaneous and all other...... 1,236 1,352 1,352 Non-redeemable preferred stock............... 690 713 713 ---------------- ------------ -------------- Total equity securities.................. 1,926 2,065 2,065 ---------------- ------------ -------------- Mortgage loans held-for-investment............ 49,059 49,059 Policy loans.................................. 8,491 8,491 Real estate and real estate joint ventures.... 7,595 7,595 Real estate acquired in satisfaction of debt.. 279 279 Other limited partnership interests........... 4,926 4,926 Short-term investments........................ 4,474 4,474 Other invested assets......................... 14,209 14,209 ---------------- -------------- Total investments..................... $ 265,283 $ 280,714 ================ ==============
-------- (1)The Company's trading and fair value option securities portfolio is mainly comprised of fixed maturity and equity securities, including mutual funds and, to a lesser extent, short-term investments and cash and cash equivalents. Cost or amortized cost for fixed maturity securities and mortgage loans held-for-investment represents original cost reduced by repayments, valuation allowances and impairments from other-than-temporary declines in estimated fair value that are charged to earnings and adjusted for amortization of premiums or accretion of discounts; for equity securities, cost represents original cost reduced by impairments from other-than-temporary declines in estimated fair value; for real estate, cost represents original cost reduced by impairments and adjusted for valuation allowances and depreciation; for real estate joint ventures and other limited partnership interests, cost represents original cost reduced for impairments or original cost adjusted for equity in earnings and distributions. 167 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule III Consolidated Supplementary Insurance Information December 31, 2014, 2013 and 2012 (In millions)
Future Policy Benefits, Other Policy-Related DAC Balances and Policyholder Policyholder and Policyholder Dividend Account Dividends Unearned Unearned Segment VOBA Obligation Balances Payable Premiums (1), (2) Revenue (1) -------------------- -------- ----------------------- ------------ ------------ ----------------- ----------- 2014 Retail.............. $ 5,544 $ 64,965 $ 30,058 $ 615 $ 35 $ 527 Group, Voluntary & Worksite Benefits. 324 20,500 8,305 -- 321 -- Corporate Benefit Funding........... 106 40,414 57,539 -- -- 41 Corporate & Other... 1 518 -- -- -- -- -------- ----------------- --------- --------- ------------ -------- Total.............. $ 5,975 $ 126,397 $ 95,902 $ 615 $ 356 $ 568 ======== ================= ========= ========= ============ ======== 2013 Retail.............. $ 5,990 $ 62,912 $ 30,434 $ 601 $ 36 $ 507 Group, Voluntary & Worksite Benefits. 333 19,460 8,575 -- 236 -- Corporate Benefit Funding........... 93 36,452 53,489 -- -- 31 Corporate & Other... -- 581 -- -- 1 -- -------- ----------------- --------- --------- ------------ -------- Total.............. $ 6,416 $ 119,405 $ 92,498 $ 601 $ 273 $ 538 ======== ================= ========= ========= ============ ======== 2012 Retail.............. $ 5,407 $ 64,757 $ 31,393 $ 610 $ 36 $ 539 Group, Voluntary & Worksite Benefits. 337 19,599 8,918 -- 248 -- Corporate Benefit Funding........... 88 38,645 54,406 -- -- 38 Corporate & Other... -- 476 (1) -- -- -- -------- ----------------- --------- --------- ------------ -------- Total.............. $ 5,832 $ 123,477 $ 94,716 $ 610 $ 284 $ 577 ======== ================= ========= ========= ============ ========
-------- (1)Amounts are included within the future policy benefits, other policy-related balances and policyholder dividend obligation column. (2)Includes premiums received in advance. 168 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule III Consolidated Supplementary Insurance Information -- (Continued) December 31, 2014, 2013 and 2012 (In millions)
Policyholder Amortization of Benefits and DAC and Premiums and Universal Claims and VOBA Life Net Interest Credited Charged to Other and Investment-Type Investment to Policyholder Other Operating Segment Product Policy Fees Income Account Balances Expenses Expenses (1) -------------------- ----------------------- ---------- ----------------- --------------- ------------ 2014 Retail.............. $ 5,640 $ 5,101 $ 6,170 $ 652 $ 2,666 Group, Voluntary & Worksite Benefits. 15,097 1,616 13,977 26 2,121 Corporate Benefit Funding........... 2,985 4,895 5,805 17 472 Corporate & Other... 128 281 77 -- 1,357 --------------- --------- ------------- ----------- --------- Total.............. $ 23,850 $ 11,893 $ 26,029 $ 695 $ 6,616 =============== ========= ============= =========== ========= 2013 Retail.............. $ 5,456 $ 5,067 $ 6,059 $ 217 $ 2,971 Group, Voluntary & Worksite Benefits. 14,420 1,618 13,346 25 1,970 Corporate Benefit Funding........... 2,886 4,680 5,813 19 474 Corporate & Other... 76 420 67 -- 1,517 --------------- --------- ------------- ----------- --------- Total.............. $ 22,838 $ 11,785 $ 25,285 $ 261 $ 6,932 =============== ========= ============= =========== ========= 2012 Retail.............. $ 5,379 $ 5,113 $ 6,121 $ 948 $ 3,067 Group, Voluntary & Worksite Benefits. 13,937 1,540 12,747 29 1,878 Corporate Benefit Funding........... 2,802 4,636 5,792 12 421 Corporate & Other... 1 563 (1) 2 1,332 --------------- --------- ------------- ----------- --------- Total.............. $ 22,119 $ 11,852 $ 24,659 $ 991 $ 6,698 =============== ========= ============= =========== =========
-------- (1)Includes other expenses and policyholder dividends, excluding amortization of DAC and VOBA charged to other expenses. 169 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule IV Consolidated Reinsurance December 31, 2014, 2013 and 2012 (In millions)
% Amount Assumed Gross Amount Ceded Assumed Net Amount to Net ------------ ---------- ---------- ------------ ---------------- 2014 Life insurance in-force.. $ 2,935,363 $ 372,886 $ 830,980 $ 3,393,457 24.5% ============ ========== ========== ============ Insurance premium Life insurance (1)....... $ 14,135 $ 1,159 $ 1,630 $ 14,606 11.2% Accident and health insurance.............. 6,828 93 43 6,778 0.6% ------------ ---------- ---------- ------------ Total insurance premium. $ 20,963 $ 1,252 $ 1,673 $ 21,384 7.8% ============ ========== ========== ============ 2013 Life insurance in-force.. $ 2,940,853 $ 401,576 $ 844,946 $ 3,384,223 25.0% ============ ========== ========== ============ Insurance premium Life insurance (1)....... $ 13,820 $ 1,187 $ 1,423 $ 14,056 10.1% Accident and health insurance.............. 6,470 97 46 6,419 0.7% ------------ ---------- ---------- ------------ Total insurance premium. $ 20,290 $ 1,284 $ 1,469 $ 20,475 7.2% ============ ========== ========== ============ 2012 Life insurance in-force.. $ 2,914,815 $ 417,026 $ 785,391 $ 3,283,180 23.9% ============ ========== ========== ============ Insurance premium Life insurance (1)....... $ 18,982 $ 756 $ 794 $ 19,020 4.2% Accident and health insurance.............. 839 535 556 860 64.7% ------------ ---------- ---------- ------------ Total insurance premium. $ 19,821 $ 1,291 $ 1,350 $ 19,880 6.8% ============ ========== ========== ============
-------- (1)Includes annuities. For the year ended December 31, 2014, reinsurance ceded and assumed included affiliated transactions for life insurance in-force of $23.9 billion and $277.9 billion, respectively, and life insurance premiums of $36 million and $681 million, respectively. For the year ended December 31, 2013, reinsurance ceded and assumed included affiliated transactions for life insurance in-force of $26.1 billion and $259.6 billion, respectively, and life insurance premiums of $45 million and $451 million, respectively. For the year ended December 31, 2012, reinsurance ceded and assumed included affiliated transactions for life insurance in-force of $27.4 billion and $230.6 billion, respectively, and life insurance premiums of $54 million and $319 million, respectively. 170 [THIS PAGE INTENTIONALLY LEFT BLANK] [THIS PAGE INTENTIONALLY LEFT BLANK] METROPOLITAN LIFE SEPARATE ACCOUNT UL PART C: OTHER INFORMATION ITEM 26. EXHIBITS (a) Resolution of the Board of Directors of Metropolitan Life effecting the establishment of Metropolitan Life Separate Account UL (Incorporated herein by reference to Post-Effective Amendment No. 5 to the Registrant's Registration Statement on Form S-6 (File No. 033-47927) filed April 30, 1997.) (b) Not Applicable (c) (i) Form of Selected Broker Agreement (Incorporated herein by reference to Post-Effective Amendment No. 6 to the Registrant's Registration Statement on Form S-6 (File No. 033-57320) filed April 30, 1997.) (ii) Schedule of Sales Commissions (Incorporated by reference from "Sales and Administration of the Policies" in the Prospectuses included herein and "Distribution of the Policies" in the Statement of Additional Information.) (iii) Form of Retail Sales Agreement (Incorporated herein by reference to the Post-Effective Amendment No. 20 to the Registrant's Registration Statement on Form N-6 (File No. 033-47927) filed April 25, 2006.) (iv) Principal Underwriting Agreement with MLIDC (Incorporated herein by reference to Post-Effective Amendment No. 3 to Paragon Separate Account B's Registration Statement on Form N-6 (File No. 333-133675) filed January 16, 2008.) (v) Enterprise Sales Agreement between MetLife Investors Distribution Company and broker-dealers dated February 2010 (Incorporated herein by reference to Exhibit 3(b)(ii) in Post-Effective Amendment No. 14 to Metropolitan Life Separate Account E's Registration Statement on Form N-4 (File No. 333-83716) filed April 13, 2010.) (vi) Master Retail Sales Agreement between MetLife Investors Distribution Company and broker-dealers dated September 2012 (Incorporated herein by reference to Post-Effective Amendment No. 27 to the Registrant's Registration Statement on Form N-6 (File No. 033-47927) filed April 11, 2013.) (d) (i) Specimen Flexible Premium Variable Life Insurance Policy (Incorporated herein by reference to Post-Effective Amendment No. 6 to the Registrant's Registration Statement on Form S-6 (File No. 033-57320) filed April 30, 1997.) (ii) Alternative pages required by state law (Incorporated herein by reference to Post-Effective Amendment No. 6 to the Registrant's Registration Statement on Form S-6 (File No. 033-57320) filed April 30, 1997.) (iii) Endorsement for calculation of minimum death benefit using the Cash Value Accumulation test (Incorporated herein by reference to Post-Effective Amendment No. 6 to the Registrant's Registration Statement on Form S-6 (File No. 033-57320) filed April 30, 1997.) (iv) Accelerated Death Benefit and Zero Cost Loan Riders (Incorporated herein by reference to Post-Effective Amendment No. 6 to the Registrant's Registration Statement on Form S-6 (File No. 033-57320) filed on April 30, 1997.) (v) Yearly Renewable Term Rider (Incorporated herein by reference to Post-Effective Amendment No. 5 to the Registrant's Registration Statement on Form S-6 (File No. 033-57320) filed April 26, 1996.) (vi) Refund of sales load rider (Incorporated herein by reference to Post-Effective Amendment No. 5 to the Registrant's Registration Statement on Form S-6 (File No. 033-57320) filed April 26, 1996.) (vii) Amended Policy Specifications Page indicating alternate premium expense charges (Incorporated herein by reference to Post-Effective Amendment No. 5 to the Registrant's Registration Statement on Form S-6 (File No. 033-57320) filed April 26, 1996.) (viii) Enhanced Cash Surrender Value Rider (Incorporated herein by reference to Post-Effective Amendment No. 12 to the Registrant's Registration Statement on Form S-6 (File No. 033-57320) filed April 22, 2002.) (ix) Term Insurance Rider (Incorporated herein by reference to Post-Effective Amendment No. 16 to the Registrant's Registration Statement on Form N-6 (File No. 033-57320) filed April 30, 2004.) (e) Amended Application Forms for Policy and Form of Receipt (including State variations) (Incorporated herein by reference to Post-Effective Amendment No. 6 to the Registrant's Registration Statement on Form S-6 (File No. 033-57320) filed April 30, 1997.) (f) (i) Restated Charter and By-Laws of Metropolitan Life (Incorporated herein by reference to Post-Effective Amendment No. 3 to the Registrant's Registration Statement on Form S-6 (File No. 333- 40161) filed April 6, 2000.) (ii) Amended and Restated By-Laws of Metropolitan Life (Incorporated herein by reference to Post-Effective Amendment No. 3 to Paragon Separate Account B's Registration Statement on Form N-6 (File No. 333-133675) filed January 16, 2008.) (g) Reinsurance Contracts (Incorporated herein by reference to Post-Effective Amendment No. 18 to the Registrant's Registration Statement on Form N-6 (File No. 033-47927) filed April 30, 2004.) (h) (i) Participation Agreements with INVESCO Variable Investment Funds, Inc., Janus Aspen Series and Templeton Variable Products Series Fund (Incorporated herein by reference to Post-Effective Amendment No. 8 to the Registrant's Registration Statement on Form S-6 (File No. 033-57320) filed April 23, 1999.) (ii) Participation Agreements with Alliance Variable Product Series Fund, Inc. (Incorporated herein by reference to Post-Effective Amendment No. 10 to the Registrant's Registration Statement on Form S-6 (File No. 033-57320) filed September 18, 2000.) (iii) Participation Agreement with Met Investors Series Trust (Incorporated herein by reference to Metropolitan Life Separate Account E's Registration Statement on Form N-4 (File No. 333- 83716) filed March 5, 2002.) (iv) Participation Agreement with Fidelity Variable Insurance Products Funds (Incorporated herein by reference to Post-Effective Amendment No. 26 to Metropolitan Life Separate Account E's Registration Statement on Form N-4 (File No. 002-90380) filed April 30, 1997.) (v) Supplemental Agreements with Fidelity Variable Insurance Products Funds (Incorporated herein by reference to Post-Effective Amendment No. 10 to the Registrant's Registration Statement (File No. 033-57320) filed September 18, 2000.) (vi) Participation Agreements with AIM Variable Insurance Funds, American Century, Dreyfus Variable Investment Fund, Franklin Templeton Variable Insurance Products Trust, Goldman Sachs Variable Insurance Trust, Janus Aspen Series, MFS Variable Insurance Trust and Wells Fargo Variable Trust. (Incorporated herein by reference to Post-Effective Amendment No. 16 to the Registrant's Registration Statement (File No. 033-57320) filed April 30, 2004.) (vii) Participation Agreement among Metropolitan Series Fund, Inc., MetLife Advisers, LLC and Metropolitan Life Insurance Company (8/31/07) (Incorporated herein by reference to Post-Effective Amendment No. 9 to Metropolitan Life Separate Account E's Registration Statement on Form N-4 (File No. 333-83716) filed September 10, 2007.) (viii) Amended and Restated Participation Agreement and First Amendment with Fidelity Variable Insurance Products Funds I, II, III, IV and V (Incorporated herein by reference to Post-Effective Amendment No. 20 to the Registrant's Registration Statement on Form N-6 (File No. 033-57320) filed April 18, 2008.) (ix) Participation Agreement among American Funds Insurance Series, Capital Research and Management Company and Metropolitan Life Insurance Company dated April 30, 2001. (Incorporated herein by reference to Metropolitan Life Separate Account E's Registration Statement on Form N-4 (333-52366) filed August 3, 2001.) (x) First and Second Amendments to the Participation Agreement with Met Investors Series Trust (Incorporated herein by reference to Post-Effective Amendment No. 22 to the Registrant's Registration Statement on Form N-6 (File No. 033-57320) filed April 16, 2009.) (xi) Amendments to the Participation Agreements with AIM/Invesco, American Century, American Funds, Fidelity, Franklin Templeton, Legg Mason, and Royce (Incorporated herein by reference to Post-Effective Amendment No. 24 to the Registrant's Registration Statement on Form N-6 (File No. 033-57320) filed April 14, 2011.) (xii) Amendments to the Participation Agreements with AllianceBernstein Variable Products Series Fund, Inc., Dreyfus Variable Investment Fund, Franklin Templeton Variable Insurance Products Trust, Goldman Sachs Variable Insurance Trust, Janus Aspen Series, Met Investors Series Trust, Metropolitan Series Fund, MFS Variable Insurance Trust, Oppenheimer Variable Account Funds, PIMCO Variable Insurance Trust, Pioneer Variable Contracts Trust (Incorporated herein by reference to Post-Effective Amendment No. 25 to the Registrant's Registration Statement on Form N-6 (File No. 033-57320) filed April 12, 2012.) (xiii) Amendments to the Participation Agreements with Franklin Templeton Variable Insurance Products Trust and Wells Fargo Variable Trust (Incorporated herein by reference to Post-Effective No. 26 to the Registrant's Registration Statement on Form N-6 (File No. 033-57320) filed April 11, 2013.) (xiv) Amendments to the Participation Agreements with Franklin Templeton Variable Insurance Products Trust, Janus Aspen Series and Legg Mason Partners Variable Equity Trust and Legg Mason Partners Variable Income Trust (Incorporated herein by reference to Post-Effective No. 27 to the Registrant's Registration Statement on Form N-6 (File No. 033-57320) filed April 11, 2014.) (xv) Participation Agreement and Amendments among The Universal Institutional Funds, Inc., Morgan Stanley Investment Management and Metropolitan Life Insurance Company and the Participation Agreement among PIMCO Variable Insurance Trust and Metropolitan Life Insurance Company (Incorporated herein by reference to the Metropolitan Life Separate Account E's Registration Statement on Form N-4 (File No. 333-198448) filed August 28, 2014.) (xvi) Amendment to the Participation Agreement among PIMCO Variable Insurance Trust and Metropolitan Life insurance Company (Incorporated herein by reference to Pre-Effective Amendment No. 1 to Metropolitan Life Separate Account E's Registration Statement on Form N-4 (File No. 333-198448) filed November 10, 2014.) (xvii) Participation Agreement with Putnam Variable Trust (Incorporated herein by reference to Pre-Effective Amendment No. 1 to Paragon Separate Account D's Registration Statement on Form S-6 (File No. 333-80393) filed September 1, 1999.) (xviii) Participation Agreement with Royce Capital Fund (Filed herewith.) (xix) Participation Agreement among Trust for Advised Portfolios, Quasar Distributors, LLC, 1919 Investment Counsel, LLC and Metropolitan Life Insurance Company dated November 7, 2014. (Filed herewith.) (i) Not Applicable (j) Not Applicable (k) Opinion and Consent of Marie C. Swift as to the legality of the securities being registered (Incorporated herein by reference to the Post-Effective Amendment No. 17 to the Registrant's Registration Statement on Form N-6 (033-57320) filed April 28, 2005.) (l) Not Applicable (m) Not Applicable (n) Consent of Independent Registered Public Accounting Firm (Filed herewith) (o) Not Applicable (p) Not Applicable (q) (i) Memoranda describing certain procedures filed pursuant to Rule 6e-3(T)(b)(12)(iii) (Incorporated herein by reference to Post-Effective Amendment No. 6 to the Registration Statement (File No. 033-57320) filed on April 30, 1997.) (r) Powers of Attorney (Filed herewith) ITEM 27. DIRECTORS AND OFFICERS OF DEPOSITOR
NAME AND PRINCIPAL BUSINESS ADDRESS POSITIONS AND OFFICES WITH DEPOSITOR ------------------------------------- ------------------------------------------------------------- Steven A. Kandarian Chairman of the Board, President and Chief Executive Officer MetLife, Inc. and Metropolitan Life and a Director Insurance Company 200 Park Avenue New York, NY 10166
Cheryl W. Grise Director c/o MetLife, Inc. and Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166
Carlos M. Gutierrez Director Co-Chair Albright Stonebridge Group (ASG) 601 Thirteenth Street, NW, Suite 500 Washington, DC 20005
R. Glenn Hubbard Director Dean and Russell L. Carson Professor of Finance and Economics Graduate School of Business Columbia University Uris Hall, Room 101 3022 Broadway New York, NY 10027-6902
John M. Keane Director Senior Partner SCP Partners 2020 Wilson Blvd, Suite 102-542 Arlington, VA 22201-3324
Alfred F. Kelly, Jr. Director c/o MetLife, Inc. and Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166
Edward J. Kelly, III Director c/o MetLife, Inc. and Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166
William E. Kennard Director c/o MetLife, Inc. and Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166
James M. Kilts Director Founding Partner Centerview Capital 3 Greenwich Office Park, 2nd Floor Greenwich, CT 06831
Catherine R. Kinney Director c/o MetLife, Inc. and Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166
Denise M. Morrison Director President and Chief Executive Officer Campbell Soup Company One Campbell Place Camden, NJ 08103
Kenton J. Sicchitano Director c/o MetLife, Inc. and Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166
Lulu C. Wang Director Chief Executive Officer Tupelo Capital Management LLC 340 Madison Avenue, 19th Floor New York, NY 10173
Set forth below is a list of certain principal officers of Metropolitan Life Insurance Company. The principal business address of each principal officer is 1095 Avenue of the Americas, New York, NY 10036 unless otherwise noted below.
NAME AND PRINCIPAL BUSINESS ADDRESS POSITIONS WITH DEPOSITOR ------------------------------------- -------------------------------------------------- Steven A. Kandarian Chairman of the Board, President and Chief Executive Officer and a Director
Michel A. Khalaf President, Europe/Middle East/Africa Division The Gate Building Dubai International Financial Center 07th Floor, West Wing Dubai, United Arab Emirates
Christopher G. Townsend President, Asia 39/F Dorset House 979 King's Road Hong Kong, Hong Kong
William J. Wheeler President, Americas
Ricardo A. Anzaldua Executive Vice President and General Counsel
Peter M. Carlson Executive Vice President and Chief Accounting Officer
Steven J. Goulart Executive Vice President and Chief Investment 10 Park Avenue Officer Morristown, NJ 07962
John C.R. Hele Executive Vice President and Chief Financial Officer
Franciscus Hijkoop Executive Vice President and Chief Human Resources Officer
Todd B. Katz Executive Vice President
Robin Lenna Executive Vice President 200 Park Avnue, 12th Floor New York, NY 10166
Martin J. Lippert Executive Vice President, Global Technology & Operations
Maria R. Morris Executive Vice President, Global Employee Benefits
Anthony J.Nugent Executive Vice President 1200 South Pine Island Road Suite 770 Plantation, FL 33324
Oscar Schmidt Executive Vice President
Eric T. Steigerwalt Executive Vice President Gragg Building 11225 North Community House Road Charlotte, NC 28277
Stanley J. Talbi Executive Vice President
ITEM 28. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR THE REGISTRANT The registrant is a separate account of Metropolitan Life Insurance Company under the New York Insurance law. Under said law the assets allocated to the separate account are the property of Metropolitan Life Insurance Company. Metropolitan Life Insurance Company is a wholly-owned subsidiary of MetLife, Inc. a publicly traded company. The following outline indicates those persons who are controlled by or under common control with Metropolitan Life Insurance Company. ORGANIZATIONAL STRUCTURE OF METLIFE, INC. AND SUBSIDIARIES AS OF December 31, 2014 The following is a list of subsidiaries of MetLife, Inc. updated as of December 31, 2014. Those entities which are listed at the left margin (labeled with capital letters) are direct subsidiaries of MetLife, Inc. Unless otherwise indicated, each entity which is indented under another entity is a subsidiary of that other entity and, therefore, an indirect subsidiary of MetLife, Inc. Certain inactive subsidiaries have been omitted from the MetLife, Inc. organizational listing. The voting securities (excluding directors' qualifying shares, if any) of the subsidiaries listed are 100% owned by their respective parent corporations, unless otherwise indicated. The jurisdiction of domicile of each subsidiary listed is set forth in the parenthetical following such subsidiary. A. MetLife Group, Inc. (NY) B. MetLife Home Loans LLC (DE) C. New England Securities Corporation (MA) D. Metropolitan Tower Life Insurance Company (DE) 1. EntreCap Real Estate II LLC (DE) a) PREFCO Dix-Huit LLC (CT) b) PREFCO X Holdings LLC (CT) c) PREFCO Ten Limited Partnership (CT) - a 99.9% limited partnership interest of PREFCO Ten Limited Partnership is held by EntreCap Real Estate II LLC and 0.1% general partnership is held by PREFCO X Holdings LLC. d) PREFCO Vingt LLC (CT) e) PREFCO Twenty Limited Partnership (CT) - a 99% limited partnership interest of PREFCO Twenty Limited Partnership is held by EntreCap Real Estate II LLC and 1% general partnership is held by PREFCO Vingt LLC. 2. Plaza Drive Properties, LLC (DE) 3. MTL Leasing, LLC (DE) a) PREFCO IX Realty LLC (CT) b) PREFCO XIV Holdings LLC (CT) c) PREFCO Fourteen Limited Partnership (CT) - a 99.9% limited partnership interest of PREFCO Fourteen Limited Partnership is held by MTL Leasing, LLC and 0.1% general partnership is held by PREFCO XIV Holdings LLC. d) 1320 Venture LLC (DE) i) 1320 Owner LP (DE) - a 99.9% limited partnership of 1320 Owner LP is held by 1320 Venture LLC and 0.1% general partnership is held by 1320 GP LLC. e) 1320 GP LLC (DE) E. MetLife Chile Inversiones Limitada (Chile) - 70.4345328853% of MetLife Chile Inversiones Limitada is owned by MetLife, Inc., 26.6071557459% by American Life Insurance Company ("ALICO"), 2.9583113284% is owned by Inversiones MetLife Holdco Dos Limitada and 0.0000000404% is owned by Natilportem Holdings, Inc. 1. MetLife Chile Seguros de Vida S.A. (Chile) - 99.9969% of MetLife Chile Seguros de Vida S.A. is held by MetLife Chile Inversiones Limitada and 0.0031% by International Technical and Advisory Services Limited ("ITAS"). a) MetLife Chile Administradora de Mutuos Hipotecarios S.A. (Chile) - 99.99% of MetLife Chile Administradora de Mutuos Hipotecarios S.A. is held by MetLife Chile Seguros de Vida S.A. and 0.01% is held by MetLife Chile Inversiones Limitada. 2. Legal Chile S.A. (Chile) - 51% of Legal Chile S.A. is owned by MetLife Chile Inversiones Limitada and the remaining interest is owned by a third party. a) Legagroup S.A. (Chile) - 99% of Legagroup S.A. is owned by Legal Chile S.A. and the remaining interest is owned by a third party. 3. Inversiones MetLife Holdco Tres Limitada (Chile) - 99.9% of Inversiones MetLife Holdco Tres Limitada is owned by MetLife Chile Inversiones Limitada and 0.1% is owned by Inversiones MetLife Holdco Dos Limitada. a) MetLife Chile Acquisition Co. S.A. (Chile) - 45% of MetLife Chile Acquisition Co. S.A. is owned by Inversiones MetLife Holdco Dos Limitada, 45% is owned by Inversiones MetLife Holdco Tres Limitada and 10% is owned by MetLife Chile Inversiones Limitada. i) Inversiones Previsionales S.A. (Chile) - 99.999% of Inversiones Previsionales S.A. is owned by MetLife Chile Acquisition Co. S.A. and 0.001% is owned by Inversiones MetLife Holdco Tres Limitada. aa) AFP Provida S.A. (Chile) - 51.62% of AFP Provida S.A. is owned by Inversiones Previsionales S.A., 21.97% is owned indirectly (by means of ADR) by MetLife Chile Acquisition Co. S.A., 17.79% is owned directly by MetLife Chile Acquisition Co. S.A. and the remainder is owned by third parties. 1) Provida Internacional S.A. (Chile) - 99.99% of Provida Internacional S.A. is owned by AFP Provida S.A. and 0.01% by Inversiones Previsionales S.A. ii) AFP Genesis Administradora de Fondos y Fidecomisos S.A. (Ecuador) - 99.9997% of AFP Genesis Administradora de Fondos y Fidecomisos S.A. is owned by Provida Internacional S.A. and 0.0003% is owned by Inversiones Previsionales S.A. 4. MetLife Chile Seguros Generales S.A. (Chile) - 99.9% of MetLife Chile Seguros Generales, S.A. is owned by MetLife Chile Inversiones Limitada and 0.1% is owned by Inversiones MetLife Holdco Dos Limitada. F. MetLife Securities, Inc. (DE) G. Enterprise General Insurance Agency, Inc. (DE) 1 H. Metropolitan Property and Casualty Insurance Company (RI) 1. Metropolitan General Insurance Company (RI) 2. Metropolitan Casualty Insurance Company (RI) 3. Metropolitan Direct Property and Casualty Insurance Company (RI) 4. MetLife Auto & Home Insurance Agency, Inc. (RI) 5. Metropolitan Group Property and Casualty Insurance Company (RI) 6. Metropolitan Lloyds, Inc. (TX) a) Metropolitan Lloyds Insurance Company of Texas (TX)- Metropolitan Lloyds Insurance Company of Texas, an affiliated association, provides automobile, homeowner and related insurance for the Texas market. It is an association of individuals designated as underwriters. Metropolitan Lloyds, Inc., a subsidiary of Metropolitan Property and Casualty Insurance Company, serves as the attorney-in-fact and manages the association. 7. Economy Fire & Casualty Company (IL) a) Economy Preferred Insurance Company (IL) b) Economy Premier Assurance Company (IL) I. First MetLife Investors Insurance Company (NY) J. Newbury Insurance Company, Limited (DE) K. MetLife Investors Group, LLC (DE) 1. MetLife Investors Distribution Company (MO) 2. MetLife Advisers, LLC (MA) 2 L. MetLife International Holdings, Inc. (DE) 1. MetLife Mexico Cares, S.A. de C.V. (Mexico) a) Fundacion MetLife Mexico, A.C. (Mexico) 2. Natiloportem Holdings, Inc. (DE) a) Excelencia Operativa y Tecnologica, S.A. de C.V. (Mexico) i) MLA Comercial, S.A. de C.V. (Mexico) 99% is owned by Excelencia Operativa y Tecnologica, S.A. de C.V. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. ii) MLA Servicios, S.A. de C.V. (Mexico) 99% is owned by Excelencia Operativa y Tecnologica, S.A. de C.V. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. 3. PNB MetLife India Insurance Company Limited (India)- 26% is owned by MetLife International Holdings, Inc. and 74% is owned by third parties. 4. Metropolitan Life Insurance Company of Hong Kong Limited (Hong Kong)- 99.99935% is owned by MetLife International Holdings, Inc. and 0.00065% is owned by Natiloporterm Holdings, Inc. 5. MetLife Seguros S.A. (Argentina)- 79.3196% is owned by MetLife International Holdings, Inc., 2.6753% is owned by Natiloportem Holdings, Inc., 16.2046% by ALICO and 1.8005% by ITAS. 6. Metropolitan Life Seguros e Previdencia Privada S.A. (Brazil)- 66.662% is owned by MetLife International Holdings, Inc., 33.337% is owned by MetLife Worldwide Holdings, Inc. and 0.001% is owned by Natiloportem Holdings, Inc. 7. MetLife Global, Inc. (DE) 8. MetLife Administradora de Fundos Multipatrocinados Ltda. (Brazil) - 99.99998% of MetLife Administradora de Fundos Multipatrocinados Ltda. is owned by MetLife International Holdings, Inc. and 0.00002% by Natiloportem Holdings, Inc. 9. MetLife Seguros de Retiro S.A. (Argentina) - 95.5883% is owned by MetLife International Holdings, Inc., 3.1102% is owned by Natiloportem Holdings, Inc., 1.3014% by ALICO and 0.0001% by ITAS. 10. Best Market S.A. (Argentina) - 5% of the shares are held by Natiloportem Holdings, Inc. and 95% is owned by MetLife International Holdings Inc. 11. Compania Inversora MetLife S.A. (Argentina) - 95.46% is owned by MetLife International Holdings, Inc. and 4.54% is owned by Natiloportem Holdings, Inc. a) MetLife Servicios S.A. (Argentina) - 18.87% of the shares of MetLife Servicios S.A. are held by Compania Inversora MetLife S.A., 79.88% is owned by MetLife Seguros S.A., 0.99% is held by Natiloportem Holdings, Inc. and 0.26% is held by MetLife Seguros de Retiro S.A. 12. MetLife Worldwide Holdings, Inc. (DE) a) MetLife Direct Co., LTD. (Japan) b) MetLife Limited (Hong Kong) i) BIDV MetLife Life Insurance Limited Liability Company (Vietnam) - 60% of BIDV MetLife Life Insurance Limited Liability Company is held by MetLife Limited (Hong Kong) and the remainder by third parties 13. MetLife International Limited, LLC (DE) 14. MetLife Planos Odontologicos Ltda. (Brazil) - 99.999% is owned by MetLife International Holdings, Inc. and 0.001% is owned by Natiloportem Holdings, Inc. 15. MetLife Ireland Holdings One Limited (Ireland) a) MetLife Global Holdings Corporation S.A. de C.V. (Mexico/Ireland) - 98.9% is owned by MetLife Ireland Holdings One Limited and 1.1% is owned by MetLife International Limited, LLC. i) MetLife Ireland Treasury Limited (Ireland) aa) MetLife General Insurance Limited (Australia) bb) MetLife Insurance Limited (Australia) - 91.16468% of MetLife Insurance Limited (Australia) is owned by MetLife Ireland Treasury Limited and 8.83532% is owned by MetLife Global Holdings Corp. S.A. de C.V. 1) The Direct Call Centre PTY Limited (Australia) 2) MetLife Investments PTY Limited (Australia) aa) MetLife Insurance and Investment Trust (Australia) - MetLife Insurance and Investment Trust is a trust vehicle, the trustee of which is MetLife Investments PTY Limited ("MIPL"). MIPL is a wholly owned subsidiary of MetLife Insurance Limited. ii) Metropolitan Global Management, LLC (DE/Ireland) - 99.7% is owned by MetLife Global Holdings Corporation S.A. de C.V. and 0.3% is owned by MetLife International Holdings, Inc. aa) MetLife Pensiones Mexico S.A. (Mexico)- 97.4738% is owned by Metropolitan Global Management, LLC and 2.5262% is owned by MetLife International Holdings, Inc. bb) MetLife Mexico Servicios, S.A. de C.V. (Mexico) - 98% is owned by Metropolitan Global Management, LLC and 2% is owned by MetLife International Holdings, Inc. cc) MetLife Mexico S.A. (Mexico)- 99.050271% is owned by Metropolitan Global Management, LLC and 0.949729% is owned by MetLife International Holdings, Inc. 1) MetLife Afore, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Mexico S.A. and 0.01% is owned by MetLife Pensiones Mexico S.A. aa) Met1 SIEFORE, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. ab) Met2 SIEFORE, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. ac) MetA SIEFORE Adicional, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. ad) Met3 SIEFORE Basica, S.A. de C.V. (Mexico) - 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. ae) Met4 SIEFORE, S.A. de C.V. (Mexico) - 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. af) Met5 SIEFORE, S.A. de C.V. (Mexico) - 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. 2) ML Capacitacion Comercial S.A. de C.V.(Mexico) - 99% is owned by MetLife Mexico S.A. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. dd) MetLife Saengmyoung Insurance Co. Ltd. (also known as MetLife Insurance Company of Korea Limited) (South Korea)- 14.64% is owned by MetLife Mexico, S.A. and 85.36% is owned by Metropolitan Global Management, LLC. ee) GlobalMKT S.A. (Uruguay) 16. MetLife Asia Limited (Hong Kong) 17. AmMetLife Insurance Berhad (Malaysia) - 50.000001% of AmMetLife Insurance Berhad is owned by MetLife International Holdings, Inc. and the remainder is owned by a third party. 18. AmMetLife Takaful Berhad (Malaysia) - 49.999999% of AmMetLife Takaful Berhad is owned by MetLife International Holdings, Inc. and the remainder is owned by a third party. 19. MAXIS GBN S.A.S. (France) - 50% of MAXIS GBN S.A.S. is held by MetLife International Holdings, Inc. and the remainder by third parties. M. Metropolitan Life Insurance Company ("MLIC") (NY) 1. 334 Madison Euro Investments, Inc. (DE) 2. St. James Fleet Investments Two Limited (Cayman Islands) a) Park Twenty Three Investments Company (United Kingdom) i) Convent Station Euro Investments Four Company (United Kingdom) aa) OMI MLIC Investments Limited (Cayman Islands) 3. CRB Co., Inc. (MA) 4. MLIC Asset Holdings II LLC (DE) a) El Conquistador MAH II LLC (DE) b) Mansell Office LLC (DE) - 73.0284% of Mansell Office LLC is owned by MLIC Asset Holdings II LLC and 26.9716% is owned by MLIC CB Holdings LLC. c) Mansell Retail LLC (DE) - 73.0284% of Mansell Retail LLC is owned by MLIC Asset Holdings II LLC and 26.9716% is owned by MLIC CB Holdings LLC. 3 5. CC Holdco Manager, LLC (DE) 6. Alternative Fuel I, LLC (DE) 7. Transmountain Land & Livestock Company (MT) 8. MetPark Funding, Inc. (DE) 9. HPZ Assets LLC (DE) 10. Missouri Reinsurance, Inc. (Cayman Islands) 11. Metropolitan Tower Realty Company, Inc. (DE) a) Midtown Heights, LLC (DE) 12. ML New River Village III, LLC (DE) 13. MetLife RC SF Member, LLC (DE) 14. MetLife Private Equity Holdings, LLC (DE) 15. 23rd Street Investments, Inc. (DE) a) MetLife Capital Credit L.P. (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc. and 99% Limited Partnership interest is held by Metropolitan Life Insurance Company. b) MetLife Capital, Limited Partnership (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc. and 99% Limited Partnership interest is held by Metropolitan Life Insurance Company. i) Long Island Solar Farm, LLC ("LISF")(DE) - 9.61% membership interest is held by MetLife Renewables Holding, LLC and 90.39% membership interest is held by LISF Solar Trust in which MetLife Capital Limited Partnership has 100% beneficial interest. ii) MetLife Canada Solar ULC (Canada) 16. Hyatt Legal Plans, Inc. (DE) a) Hyatt Legal Plans of Florida, Inc. (FL) 17. MetLife Holdings, Inc. (DE) a) MetLife Credit Corp. (DE) b) MetLife Funding, Inc. (DE) 4 18. MetLife Investments Asia Limited (Hong Kong) 19. MetLife Investments Limited (United Kingdom)- 23rd Street Investments, Inc. holds one share of MetLife Investments Limited. 20. MetLife Latin America Asesorias e Inversiones Limitada (Chile)- 23rd Street Investments, Inc. holds 0.01% of MetLife Latin America Asesorias e Inversiones Limitada. 21. New England Life Insurance Company (MA) 22. General American Life Insurance Company (MO) a) GALIC Holdings LLC (DE) 5 23. Corporate Real Estate Holdings, LLC (DE) 24. Ten Park SPC (Cayman Islands) - 1% voting control of Ten Park SPC is held by 23rd Street Investments, Inc. 25. MetLife Tower Resources Group, Inc. (DE) 26. Headland-Pacific Palisades, LLC (CA) 27. Headland Properties Associates (CA) - 99% is owned by Metropolitan Life Insurance Company and 1% is owned by Headland-Pacific Palisades, LLC. 28. WFP 1000 Holding Company GP, LLC (DE) 29. White Oak Royalty Company (OK) 30. 500 Grant Street GP LLC (DE) 31. 500 Grant Street Associates Limited Partnership (CT) - 99% of 500 Grant Street Associates Limited Partnership is held by Metropolitan Life Insurance Company and 1% by 500 Grant Street GP LLC. 32. MetLife Mall Ventures Limited Partnership (DE) - 99% LP interest of MetLife Mall Ventures Limited Partnership is owned by MLIC and 1% GP interest is owned by Metropolitan Tower Realty Company, Inc. a) HMS Master Limited Partnership (DE) - 60% LP interest of HMS Master Limited Partnership is owned by MetLife Mall Ventures Limited Partnership. A 40% LP interest is owned by a third party. Metropolitan Tower Realty Company, Inc. is the GP. i) HMS Southpark Residential LLC (DE) 33. MetLife Retirement Services LLC (NJ) a) MetLife Associates LLC (DE) 34. Euro CL Investments, LLC (DE) 35. MEX DF Properties, LLC (DE) 36. MSV Irvine Property, LLC (DE) - 4% of MSV Irvine Property, LLC is owned by Metropolitan Tower Realty Company, Inc. and 96% is owned by Metropolitan Life Insurance Company 37. MetLife Properties Ventures, LLC (DE) a) Citypoint Holdings II Limited (United Kingdom) 38. Housing Fund Manager, LLC (DE) a) MTC Fund I, LLC (DE) - 0.01% of MTC Fund I, LLC is held by Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the managing member LLC and the remaining interests are held by a third party member. b) MTC Fund II, LLC (DE) - 0.01% of MTC Fund II, LLC is held by Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the managing member LLC and the remaining interests are held by a third party member. c) MTC Fund III, LLC (DE) - 0.01% of MTC Fund III, LLC is held by Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the managing member LLC and the remaining interests are held by a third party member. 39. MLIC Asset Holdings LLC (DE) 40. 85 Broad Street Mezzanine LLC (DE) a) 85 Broad Street LLC (DE) - 49.9% of 85 Broad Street LLC is owned by a third party. 41. The Building at 575 Fifth Avenue Mezzanine LLC (DE) a) The Building at 575 Fifth LLC (DE) 42. ML Bridgeside Apartments LLC (DE) 43. Para-Met Plaza Associates (FL)- 75% of the General Partnership is held by Metropolitan Life Insurance Company and 25% of the General Partnership is held by Metropolitan Tower Realty Company, Inc. 44. MLIC CB Holdings LLC (DE) 45. Met II Office Mezzanine LLC, (FL) - 10.4167% of the membership interest is owned by Metropolitan Tower Life Insurance Company and 89.5833% is owned by Metropolitan Life Insurance Company. a) Met II Office LLC (FL) 46. The Worthington Series Trust (DE) 47. MetLife CC Member, LLC (DE) - 63.415% of MetLife CC Member, LLC is held by Metropolitan Life Insurance Company, 31.707% by MetLife Insurance Company USA and 4.878% by General American Life Insurance Company. 48. Oconee Hotel Company, LLC (DE) 49. Oconee Land Company, LLC (DE) a) Oconee Land Development Company, LLC (DE) b) Oconee Golf Company, LLC (DE) c) Oconee Marina Company, LLC (DE) 50. 1201 TAB Manager, LLC (DE) 51. MetLife 1201 TAB Member, LLC (DE) - 69.66% of MetLife 1201 TAB Member, LLC is owned by Metropolitan Life Insurance Company, 27.24% is owned by MetLife Insurance Company USA and 3.10% is owned by Metropolitan Property and Casualty Insurance Company. a) 1201 TAB Owner, LLC (DE) - 50% of 1201 TAB Owner, LLC is owned by Metlife 1201 TAB Member, LLC and the remainder is owned by a third party. Metlife 1201 TAB Manager, LLC is the manager of 1201 TAB Owner, LLC. 52. MetLife LHH Member, LLC (DE) - 69.23% of MetLife LHH Member, LLC is owned by Metropolitan Life Insurance Company, 19.78% is owned by MetLife Insurance Company USA and 10.99% is owned by New England Life Insurance Company. 53. Ashton Southend GP, LLC (DE) 54. Tremont Partners, LP (DE) - 99.9% LP interest of Tremont Partners, LP is owned by Metropolitan Life Insurance Company and 0.1% GP interest is owned by Ashton Southend GP, LLC. 55. Riverway Residential, LP (DE) - 99.9% LP interest of Riverway Residential, LP is owned by Metropolitan Life Insurance Company and 0.1% GP interest is owned by Metropolitan Tower Realty Company, Inc. 56. 10420 McKinley Partners, LP (DE) - 99.9% LP interest of 10420 McKinley Partners, LP is owned by Metropolitan Life Insurance Company and 0.1% GP interest is owned by Metropolitan Tower Realty Company, Inc. 57. Ardrey Kell Townhomes, LLC (DE) 58. Boulevard Residential, LLC (DE) 59. 465 N. Park Drive, LLC (DE) 60. Ashton Judiciary Square, LLC (DE) 61. Sandpiper Cove Associates, LLC (DE) - 90.59% membership interest of Sandpiper Cove Associates, LLC is owned by MLIC and 9.41% is owned by Metropolitan Tower Realty Company. 62. 1900 McKinney Properties, LP (DE) - 99.9% LP interest of 1900 McKinney Properties, LP is owned by MLIC and 0.1% GP interest is owned by Metropolitan Tower Realty Company, Inc. 63. Marketplace Residences, LLC (DE) 64. ML Swan Mezz, LLC (DE) a) ML Swan GP, LLC (DE) 65. ML Dolphin Mezz, LLC (DE) a) ML Dolphin GP, LLC (DE) 66. Haskell East Village, LLC (DE) 67. MetLife Cabo Hilton Member, LLC (DE) - 54.129% of MetLife Cabo Hilton Member, LLC is owned by MLIC, 16.9% by General American Life Insurance Company, 28.971% by MetLife Insurance Company USA 68. ML Terraces, LLC (DE) 69. Chestnut Flats Wind, LLC (DE) 70. MetLife 425 MKT Member, LLC (DE) a) 425 MKT, LLC (DE) - 52.5% of 425 MKT, LLC is owned by MetLife 425 MKT Member, LLC and 47.5% is owned by a third party. 425 MKT, LLC is the managing member of 425 MKT REIT, LLC. i) 425 MKT REIT, LLC (DE) - 99.9% of 425 MKT REIT, LLC is owned by 425 MKT, LLC and the remaining 0.1% by third parties. 71. MetLife OFC Member, LLC (DE) a) OFC Boston, LLC (DE) - 52.5% of OFC Boston, LLC is owned by MetLife OFC Member, LLC and 47.5% is owned by a third party. i) OFC REIT, LLC (DE) - 99.9% of OFC REIT, LLC is owned by OFC Boston, LLC and the remaining 0.1% is owned by third parties. 1) Dewey Square Tower Associates, LLC (MA) 72. MetLife THR Investor, LLC (DE) - 85% of MetLife THR Investor, LLC is owned by MLIC and 15% is owned by MetLife Insurance Company USA. 73. ML Southmore, LLC (DE) - 75.12% of ML Southmore, LLC is owned by MLIC and 24.88% is owned by MetLife Insurance Company USA. 74. ML - AI MetLife Member 1, LLC (DE) - 83.675% of the membership interest is owned by MLIC, 10.563% by MetLife Insurance Company USA and 4.801% by Metropolitan Property and Casualty Insurance Company. a) ML - AI Venture 1, LLC (DE) - 51% of ML-AI Venture 1, LLC is owned by ML-AI MetLife Member 1, LLC and 49% is owned by a third party. MetLife Investment Management, LLC is the asset manager. i) ML-AI 125 Wacker, LLC (DE) 75. MetLife CB W/A, LLC (DE) 76. MetLife Camino Ramon Member, LLC (DE) - 78.6% of MetLife Camino Ramon Member, LLC is owned by MLIC and 21.4% is owned by MetLife Insurance Company USA. 77. 10700 Wilshire, LLC (DE) 78. Viridian Miracle Mile, LLC (DE) 79. MetLife 555 12th Member, LLC (DE) - MetLife 555 12th Member, LLC is owned at 69.4% by MLIC, 25.2% by MetLife Insurance Company USA and 5.4% by GALIC. a) 555 12th, LLC (DE) - 52.5% of 555 12th, LLC is owned by MetLife 555 12th Member, LLC and the remainder by a third party. i) 555 12 REIT, LLC (DE) 80. MetLife OBS Member, LLC (DE) a) OBS Boston, LLC (DE) - 52.5% of OBS Boston, LLC is owned by MetLife OBS Member, LLC and the remaining by third parties i) OBS REIT, LLC (DE) - 99.98% of OBS REIT, LLC is owned by OBS Boston, LLC and the remaining 0.02% by third parties 1) OBS BOS Services, LLC (DE) 81. MetLife 1007 Stewart, LLC (DE) 82. ML-AI MetLife Member 2, LLC (DE) a) ML-AI Venture 2, LLC (DE) - 50% of ML-AI Venture 2, LLC is owned by ML-AI MetLife Member 2, LLC and the remaining by third parties. i) ML-AI Normandale, LLC 83. 655 West Broadway, LLC (DE) - 90% of 655 West Broadway, LLC is owned by MLIC and 10% by Metropolitan Tower Realty Company, Inc. 84. MetLife FM Hotel Member, LLC (DE) a) LHCW Holdings (U.S.) LLC (DE) i) LHC Holdings (U.S.) LLC (DE) aa) LHCW Hotel Holding LLC (DE) 1) LHCW Hotel Holding (2002) LLC (DE) 2) LHCW Hotel Operating Company (2002) LLC (DE) 85. ML Mililani Member, LLC (DE)- is owned at 70% by MLIC, 25% by MetLife Insurance Company USA and 5% by General American Life Insurance Company. N. MetLife Capital Trust IV (DE) O. MetLife Insurance Company USA (DE) 1. MetLife Property Ventures Canada ULC (Canada) 2. Metropolitan Connecticut Property Ventures, LLC (DE) 3. MetLife Canadian Property Ventures LLC (NY) 4. Euro TI Investments LLC (DE) 5. Greenwich Street Investments, L.L.C. (DE) a) Greenwich Street Capital Offshore Fund, Ltd. (Virgin Islands) b) Greenwich Street Investments, L.P. (DE) 6. One Financial Place Corporation (DE) - 100% is owned in the aggregate by MetLife Insurance Company USA. 7. MetLife USA Assignment Company (CT) 8. TIC European Real Estate LP, LLC (DE) 9. MetLife European Holdings, LLC (DE) 10. Euro TL Investments LLC (DE) 11. Corrigan TLP LLC (DE) 12. TLA Holdings LLC (DE) a) The Prospect Company (DE) 13. TRAL & Co. (CT) - TRAL & Co. is a general partnership. Its partners are MetLife Insurance Company USA and Metropolitan Life Insurance Company. 14. MetLife Renewables Holding, LLC (DE) a) Greater Sandhill I, LLC (DE) 15. TLA Holdings II LLC (DE) 16. TLA Holdings III LLC (DE) 17. MetLife Greenstone Southeast Ventures, LLC (DE) - 95% of MetLife Greenstone Southeast Venture, LLC is owned by MetLife Insurance Company USA and 5% is owned by Metropolitan Connecticut Properties Ventures, LLC. a) MLGP Lakeside, LLC (DE) 18. Sino-US United MetLife Insurance Co., Ltd. (China) - Sino-US United MetLife Insurance Co., Ltd. is owned at 27.8% by MetLife Insurance Company USA, 22.2% by MLIC and 50% by a third party. P. MetLife Reinsurance Company of South Carolina (SC) Q. MetLife Investment Management, LLC (DE) 1. MetLife Alternatives GP, LLC (DE) a) MetLife International PE Fund I, LP (Cayman Islands) - 92.593% of the Limited Partnership interests of this entity is owned by MetLife Insurance K.K., 4.115% is owned by MetLife Mexico S.A., 2.716% is owned by MetLife Limited (Hong Kong) and the remaining 0.576% is owned by Metropolitan Life Insurance Company of Hong Kong Limited. b) MetLife International PE Fund II, LP (Cayman Islands) - 94.54% of the limited partnership interests of MetLife International PE Fund II, LP is owned by MetLife Insurance K.K., 2.77% is owned by MetLife Limited (Hong Kong), 2.1% by MetLife Mexico, S.A. and 0.59% is owned by MetLife Insurance Company of Hong Kong Limited. c) MetLife International HF Partners, LP (Cayman Islands) - 87.77% of the Limited partnership interests of this entity is owned by MetLife Insurance K.K. and 9.54% is owned by MetLife Insurance Company of Korea Limited, 2.67% is owned by MetLife Limited (Hong Kong) and 0.02% is owned by MetLife Alternatives, GP 2. MetLife Loan Asset Management LLC (DE) 3. MetLife Core Property Fund GP, LLC (DE) a) MetLife Core Property Fund, LP (DE) - MetLife Core Property Fund GP, LLC is the general partner of MetLife Core Property Fund, LP (the "Fund"). A substantial majority of the limited partnership interests in the Fund are held by third parties. The following affiliates hold a minority share of the limited partnership interests in the Fund: Metropolitan Life Insurance Company owns 23.7%, General American Life Insurance Company owns 0.1% and MetLife Insurance Company USA owns 0.2%. i) MetLife Core Property REIT, LLC (DE) aa) MetLife Core Property Holdings, LLC (DE) - MetLife Core Property Holdings, LLC holds the following single-property limited liability companies: MCP 7 Riverway, LLC; MCP SoCal Industrial-Redondo, LLC; MCP SoCal Industrial-Springdale, LLC; MCP SoCal Industrial-Concourse, LLC; MCP SoCal Industrial-Kellwood, LLC; MCP SoCal Industrial-Bernado, LLC; MCP SoCal Industrial-Canyon, LLC; MCP SoCal Industrial-Anaheim, LLC; MCP SoCal Industrial-LAX, LLC; MCP SoCal Industrial-Fullerton, LLC; MCP SoCal Industrial-Ontario, LLC; MCP SoCal Industrial-Loker, LLC; MCP Paragon Point, LLC; MCP 4600 South Syracuse, LLC; MCP The Palms at Doral, LLC; MCP Waterford Atrium, LLC; MCP EnV Chicago, LLC; MCP 100 Congress, LLC; MCP 1900 McKinney, LLC; MCP 550 West Washington, LLC; MCP Main Street Village, LLC; MCP Lodge At Lakecrest, LLC; MCP Ashton South End, LLC, MCP 3040 Post Oak, LLC; MCP Plaza at Legacy, LLC; MCP VOA Holdings, LLC; MCP VOA I & III, LLC and MCP VOA II, LLC. R. MetLife Standby I, LLC (DE) 1. MetLife Exchange Trust I (DE) S. MetLife Services and Solutions, LLC (DE) 1. MetLife Solutions Pte. Ltd. (Singapore) a) MetLife Services East Private Limited (India) b) MetLife Global Operations Support Center Private Limited (India) - 99.99999% is owned by MetLife Solutions Pte. Ltd. and 0.00001% is owned by Natiloportem Holdings, Inc. T. SafeGuard Health Enterprises, Inc. (DE) 1. MetLife Health Plans, Inc. (DE) 2. SafeGuard Health Plans, Inc. (CA) 3. SafeHealth Life Insurance Company (CA) 4. SafeGuard Health Plans, Inc. (FL) 5. SafeGuard Health Plans, Inc. (NV) 6. SafeGuard Health Plans, Inc. (TX) U. MetLife Capital Trust X (DE) V. Cova Life Management Company (DE) W. MetLife Reinsurance Company of Charleston (SC) X. MetLife Reinsurance Company of Vermont (VT) Y. Delaware American Life Insurance Company (DE) Z. Federal Flood Certification LLC (TX) AA. American Life Insurance Company (ALICO) (DE) 1. MetLife Insurance K.K. (Japan) a) Communication One Kabushiki Kaisha (Japan) 2. MetLife Global Holding Company I GmbH (Swiss I) (Switzerland) a) MetLife Global Holding Company II GmbH (Swiss II) (Switzerland) i) MetLife Emeklilik ve Hayat A.S. (Turkey) - 99.98% of MetLife Emeklilik ve Hayat A.S. is owned by Metlife Global Holding Company II GmbH (Swiss II) and the remainder by third parties. ii) ALICO European Holdings Limited (Ireland) aa) ZAO Master D (Russia) 1) Closed Joint Stock Company MetLife Insurance Company (Russia) - 51% of Closed Joint Stock Company MetLife Insurance Company is owned by ZAO Master D and 49% is owned by MetLife Global Holding Company II GmbH. iii) MetLife Asia Holding Company Pte. Ltd. (Singapore) 1) MetLife Innovation Centre Pte. Ltd. (Singapore) iv) MetLife Reinsurance Company of Bermuda Ltd. (Bermuda) v) MetLife Bulgaria Services EOOD (Bulgaria) vi) MetLife Investment Management Limited (United Kingdom) vii) MetLife EU Holding Company Limited (Ireland) aa) MetLife Europe Limited (Ireland) - 93% of MetLife Europe Limited is owned by MetLife EU Holding Company Limited and 7% is owned by ALICO. 1. MetLife Pension Trustees Limited (United Kingdom) bb) Agenvita S.r.l. (Italy) cc) MetLife Europe Insurance Limited (Ireland)- 93% of MetLife Europe Insurance Limited is owned by MetLife EU Holding Company Limited and 7% is owned by ALICO. dd) MetLife Europe Services Limited (Ireland) ee) MetLife Insurance Limited (United Kingdom) ff) MetLife Limited (United Kingdom) gg) MetLife Services, Sociedad Limitada (Spain) hh) MetLife Slovakia s.r.o. (Slovakia) - 99.956% of MetLife Slovakia s.r.o. is owned by MetLife EU Holding Company Limited and 0.044% is owned by ITAS. ii) MetLife Solutions S.A.S. (France) jj) Metlife Biztosito Zrt. (Hungary) 1) First American-Hungarian Insurance Agency Limited (Hungary) kk) Metropolitan Life Asigurari S.A. (Romania) - 99.9982018% of Metropolitan Life Asigurari S.A. is owned by MetLife EU Holding Company Limited and the remaining 0.0017982% is owned by ITAS. 1) MetLife Societate de Administrare a unui Fond de Pensii Administrat Privat S.A. (Romania) - 99.9836% of MetLife Societate de Administrare a unui Fond de Pensii Administrat Privat S.A. is owned by Metropolitan Life Asigurari S.A. and 0.0164% is owned by MetLife Services Sp z.o.o. 2) Metropolitan Life Training and Consulting S.R.L. (Romania) 3) APF Societate de Administrare a Fondurilor De Pensii Facultative (APF) (Romania) - 99.99% of APF is owned by Metropolitan Life Asigurari S.A. and 0.01% is owned by ITAS. ll) MetLife AMSLICO poist'ovna, a.s. (Slovakia) 1) ALICO Funds Central Europe sprav. spol., a.s. (Slovakia) mm) MetLife pojist'ovna a.s. (Czech Republic) nn) MetLife Towarzystwo Ubezpieczen na Zycie I Reasekuracji S.A. (Poland) 1) MetLife Services Sp z.o.o. (Poland) 2) MetLife Towarzystwo Funduszy Inwestycyjnych, S.A. (Poland) 3) MetLife Powszechne Towarzystwo Emerytalne S.A. (Poland) - 50% of MetLife Powszechne Towarzystwo Emerytalne S.A. is owned by MetLife Towarzystwo Ubezpieczen na Zycie I Reasekuracji S.A. and the remaining 50% is owned by MetLife EU Holding Company Limited. oo) MetLife Holdings (Cyprus) Limited (Cyprus) 1) American Life Insurance Company (CY) Limited (Cyprus) 2) Hellenic Alico Life Insurance Company, Ltd. (Cyprus) - 27.5% of Hellenic Alico Life Insurance Company, Ltd. Is owned by American Life Insurance Company (CY) and the remaining is owned by a third party. pp) ALICO Bulgaria Zhivotozastrahovat elno Druzhestvo EAD (Bulgaria) qq) MetLife Life Insurance S.A. (Greece) 1) MetLife Mutual Fund S.A. (Greece) - 90% of MetLife Mutual Fund S.A. is owned by MetLife Life Insurance S.A. (Greece) and the remaining interests are owned by third parties. 3. Pharaonic American Life Insurance Company (Egypt) - 84.125% of Pharaonic American Life Insurance Company is owned by ALICO and the remaining interests are owned by third parties. 4. IGI Life Insurance Limited (Pakistan) - 12.296% of IGI Life Insurance Limited is owned by ALICO and the remaining is owned by third parties. 5. International Investment Holding Company Limited (Russia) 6. MetLife Akcionarsko Drustvo za Zivotno Osiguranje (Serbia) - 99.98% of MetLife Akcionarska Drustvoza za Zivotno Osiguranje is owned by ALICO and the remaining 0.02% is owned by ITAS. 7. ALICO Management Services Limited (United Kingdom) 8. PJSC MetLife (Ukraine) - 99.9988% of PJSC MetLife Ukraine is owned by ALICO, 0.0006% is owned by ITAS and the remaining 0.0006% is owned by Borderland Investment Limited. 9. Borderland Investment Limited (USA-Delaware) a) ALICO Hellas Single Member Limited Liability Company (Greece) 10. International Technical and Advisory Services Limited ("ITAS") (USA-Delaware) 11. ALICO Operations Inc. (USA-Delaware) a) MetLife Asset Management Corp. (Japan) 12. MetLife Colombia Seguros de Vida S.A. (Colombia) - 90.9999942% of MetLife Colombia Seguros de Vida S.A. is owned by ALICO, 9.0000011% is owned by ITAS, 0.0000016% is owned by Borderland Investments Limited, 0.0000016% by MetLife International Holdings, Inc. and 0.0000016% by Natiloportem Holdings, Inc.. 13. MetLife Mas, S.A. de C.V. (Mexico) - 99.9997546% of MetLife Mas, SA de CV is owned by ALICO and 0.0002454% is owned by ITAS. 14. MetLife Seguros S.A. (Uruguay) - 74.9187% of MetLife Seguros S.A. is owned by ALICO, 25.0798% by MetLife, Inc. and 0.0015% by a third party (Oscar Schmidt). 15. ALICO Properties, Inc. (USA-Delaware) - 51% of ALICO Properties, Inc. is owned by ALICO and the remaining interests are owned by third parties. a) Global Properties, Inc. (USA-Delaware) 16. Alpha Properties, Inc. (USA-Delaware) 17. Beta Properties, Inc. (USA-Delaware) 18. Delta Properties Japan, Inc. (USA-Delaware) 19. Epsilon Properties Japan, Inc. (USA-Delaware) 20. Iris Properties, Inc. (USA-Delaware) 21. Kappa Properties Japan, Inc. (USA-Delaware) 22. UBB Zhivotozastrahovatelno Drujestvo AD (Bulgaria) - 40% of UBB Zhivotozastrahovatelno Drujestvo AD is owned by ALICO and the remaining by third parties. 23. MetLife American International Group and Arab National Bank Cooperative Insurance Company (Saudi Arabia) - 30% of MetLife American International Group and Arab National Bank Cooperative Insurance Company is owned by ALICO and the remaining interest by third parties. AB. MetLife Global Benefits, Ltd. (Cayman Islands) AC. Inversiones Metlife Holdco Dos Limitada (Chile) - 99.999338695% of Inversiones MetLife Holdco Dos Limitada is owned by MetLife, Inc., 0.00065469% is owned by MetLife International Holdings, Inc. and 0.000006613% is owned by Natiloportem. AD. MetLife Consumer Services, Inc. (DE) AE. MetLife Reinsurance Company of Delaware (DE) 1) The voting securities (excluding directors' qualifying shares, if any) of each subsidiary shown on the organizational chart are 100% owned by their respective parent corporation, unless otherwise indicated. 2) The Metropolitan Money Market Pool and MetLife Intermediate Income Pool are pass-through investment pools, of which Metropolitan Life Insurance Company and/or its subsidiaries and/or affiliates are general partners. 3) The MetLife, Inc. organizational chart does not include real estate joint ventures and partnerships of which MetLife, Inc. and/or its subsidiaries is an investment partner. In addition, certain inactive subsidiaries have also been omitted. 4) MetLife Services EEIG is a cost-sharing mechanism used in the EU for EU- affiliated members. 6 ITEM 29. INDEMNIFICATION As described in their respective governing documents, MetLife, Inc. (the ultimate parent of the Depositor and MetLife Investors Distribution Company, the Registrant's principal underwriter (the "Underwriter")), which is incorporated in the state of Delaware, and the Depositor, which is incorporated in the state of New York, shall indemnify any person who is made or is threatened to be made a party to any civil or criminal suit, or any administrative or investigative proceeding, by reason of the fact that such person is or was a director or officer of the respective company, under certain circumstances, against liabilities and expenses incurred by such person. MetLife, Inc. also has adopted a policy to indemnify employees ("MetLife Employees") of MetLife, Inc. or its affiliates ("MetLife"), including any MetLife Employees serving as directors or officers of the Depositor or the Underwriter. Under the policy, MetLife, Inc. will, under certain circumstances, indemnify MetLife Employees for losses and expenses incurred in connection with legal actions threatened or brought against them as a result of their service to MetLife. The policy excludes MetLife directors and others who are not MetLife Employees, whose rights to indemnification, if any, are as described in the charter, bylaws or other arrangement of the relevant company. MetLife, Inc. also maintains a Directors and Officers Liability and Corporate Reimbursement Insurance Policy under which the Depositor and the Underwriter, as well as certain other subsidiaries of MetLife, are covered. MetLife, Inc. also has secured a Financial Institutions Bond. Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Company, pursuant to the foregoing provisions, or otherwise, the Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Company of expenses incurred or paid by a director, officer or controlling person of the Company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. ITEM 30. PRINCIPAL UNDERWRITERS (a) MetLife Investors Distribution Company is the principal underwriter and distributor of the Policies. MetLife Investors Distribution Company is the principal underwriter for the following investment companies: Met Investors Series Trust Metropolitan Series Fund First MetLife Investors Variable Annuity Account One General American Separate Account Two General American Separate Account Eleven General American Separate Account Twenty-Eight General American Separate Account Twenty-Nine MetLife of CT Fund UL for Variable Life Insurance MetLife of CT Fund UL III for Variable Life Insurance MetLife of CT Separate Account Eleven for Variable Annuities MetLife of CT Separate Account QPN for Variable Annuities MetLife Investors Variable Annuity Account One MetLife Investors Variable Life Account One MetLife Investors USA Separate Account A MetLife Investors USA Variable Life Account A Metropolitan Life Separate Account E Metropolitan Life Separate Account UL Metropolitan Life Variable Annuity Separate Account II Metropolitan Tower Separate Account One Metropolitan Tower Separate Account Two New England Life Retirement Investment Account New England Variable Annuity Fund I New England Variable Annuity Separate Account New England Variable Life Separate Account Paragon Separate Account A Paragon Separate Account B Paragon Separate Account C Paragon Separate Account D Security Equity Separate Account Twenty-Six Security Equity Separate Account Twenty-Seven Separate Account No. 13S (b) The following persons are the officers and directors of MetLife Investors Distribution Company. The principal business address for MetLife Investors Distribution Company is 1095 Avenue of the Americas, New York, NY 10036.
NAME AND PRINCIPAL BUSINESS OFFICE POSITIONS AND OFFICES WITH UNDERWRITER ------------------------------------ --------------------------------------- Elizabeth M. Forget Director Gragg Building 11225 North Community House Road Charlotte, NC 28277
Paul A. LaPiana Director Gragg Building 11225 North Community House Road Charlotte, NC 28277
Gerard Nigro Director One MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101
Lance Carlson President One MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101
Kieran R. Mullins Executive Vice President Gragg Building 11225 North Community House Road Charlotte, NC 28277
Barbara A. Dare Senior Vice President Gragg Building 11225 North Community House Road Charlotte, NC 28277
Donald Leintz Senior Vice President Gragg Building 11225 North Community House Road Charlotte, NC 28277
John P. Kyne, III Vice President and Chief Compliance Officer Gragg Building 11225 North Community House Road Charlotte, NC 28277
John G. Martinez Vice President and Chief Financial Officer 18210 Crane Nest Drive Tampa, FL 33647
Tyla L. Reynolds Vice President and Secretary 600 North King Street Wilmington DE 19801
Marlene B. Debel Treasurer 1095 Avenue of the Americas New York, NY 10036
(c) Compensation from the Registrant.
(3) COMPENSATION ON (2) EVENTS OCCASIONING NET UNDERWRITING THE DEDUCTION OF A (4) (5) (1) DISCOUNTS AND DEFERRED SALES BROKERAGE OTHER NAME OF PRINCIPAL UNDERWRITER COMMISSIONS LOAD COMMISSIONS COMPENSATION --------------------------------------------- ------------------ -------------------- ------------- ------------- MetLife Investors Distribution Company....... $1,089,430 $0 $0 $0
ITEM 31. LOCATION OF ACCOUNTS AND RECORDS The following companies will maintain possession of the documents required by Section 31(a) of the Investment Company Act of 1940 and the Rules thereunder: (a) Registrant (b) Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166 (c) MetLife Investors Distribution Company 1095 Avenue of the Americas New York, NY 10036 (d) Metropolitan Life Insurance Company 18210 Crane Nest Drive Tampa, FL 33647 (e) Metropolitan Life Insurance Company One Financial Center Boston, MA 02111 ITEM 32. MANAGEMENT SERVICES Not applicable ITEM 33. FEE REPRESENTATION Metropolitan Life represents that the fees and charges deducted under the Policies offered and sold pursuant to this amended Registration Statement, in the aggregate, are reasonable in relation to the services rendered, the expenses to be incurred, and the risks assumed by Metropolitan Life under the Policies. SIGNATURES Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this amended Registration Statement under Rule 485(b) under the Securities Act and has caused this Amendment to the Registration Statement to be signed on its behalf by the undersigned, in the City of Boston and the Commonwealth of Massachusetts, on the April 15, 2015. Metropolitan Life Separate Account UL By: Metropolitan Life Insurance Company By: /s/ PETER H. DUFFY -------------------------------------- Peter H. Duffy Vice President SIGNATURES Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, Metropolitan Life Insurance Company certifies that it meets all of the requirements for effectiveness of this amended Registration Statement under Rule 485(b) under the Securities Act and has caused this Amendment to the Registration Statement to be signed on its behalf, in the City of Boston, and the Commonwealth of Massachusetts on the April 15, 2015. Metropolitan Life Insurance Company BY: /s/ PETER H. DUFFY -------------------------------------- Peter H. Duffy Vice President Pursuant to the requirements of the Securities Act of 1933, this Amendment to the Registration Statement has been signed by the following persons, in the capacities indicated, on April 15, 2015.
SIGNATURE TITLE * Chairman of the Board, President and Chief Executive ------------------------------------- Officer and a Director Steven A. Kandarian * Director ------------------------------------- Cheryl W. Grise * Director ------------------------------------- Carlos Miguel Gutierrez * Director ------------------------------------- R. Glenn Hubbard * Director ------------------------------------- John M. Keane * Director ------------------------------------- Alfred F. Kelly, Jr. * Director ------------------------------------- Edward J. Kelly, III * Director ------------------------------------- William E. Kennard * Director ------------------------------------- James M. Kilts * Director ------------------------------------- Catherine R. Kinney * Director ------------------------------------- Denise M. Morrison * Director ------------------------------------- Kenton J. Sicchitano * Director ------------------------------------- Lulu C. Wang * Executive Vice President and Chief Financial Officer ------------------------------------- John C. R. Hele * Executive Vice President and Chief Accounting Officer ------------------------------------- Peter M. Carlson
By: /s/ JOHN M. RICHARDS -------------------------------------- John M. Richards, Esq. Attorney-in-fact *Executed by John M. Richards on behalf of those indicated pursuant to powers of attorney filed herewith. EXHIBIT INDEX (h)(xviii) Participation Agreement with Royce Capital Fund (h)(xix) Participation Agreement with Trust for Advised Portfolios (n) Consent of Independent Registered Public Accounting Firm (r) Powers of Attorney- Metropolitan Life Insurance Company EX-99.(H)(XVIII) 2 d830948dex99hxviii.txt PARTICIPATION AGREEMENT WITH ROYCE CAPITAL FUND PARTICIPATION AGREEMENT ----------------------- THIS AGREEMENT, made and entered into as of the 19 day of November, 2008 by and among METROPOLITAN LIFE INSURANCE COMPANY________________________ (hereinafter the "Company"), a life insurance company organized under the laws of New York____, on its own behalf and on behalf of each separate account of the Company set forth on Schedule B hereto as may be amended from time to time (each such account hereinafter referred to as the "Account"), and ROYCE CAPITAL FUND (hereinafter the "Fund"), a Delaware statutory trust, , ROYCE FUND SERVICES, INC., a New York corporation (the "Distributor") and ROYCE & ASSOCIATES, LLC (the "Adviser"), a Delaware limited liability company. WHEREAS, the Fund engages in business as an open-end management investment company and is available to act as (i) the investment vehicle for separate accounts established by insurance companies for individual and group life insurance policies and annuity contracts with variable accumulation and/or pay-out provisions (hereinafter referred to individually and/or collectively as "Variable Insurance Products") and (ii) the investment vehicle for certain qualified pension and retirement plans (hereinafter "Qualified Plans"); and WHEREAS, insurance companies desiring to utilize the Fund as an investment vehicle under their Variable Insurance Products are required to enter into a participation agreement with the Fund and the Distributor (the "Participating Insurance Companies"); and WHEREAS, shares of the Fund are divided into several series of shares, each representing the interest in a particular managed portfolio of securities and other assets, any one or more of which may be made available for Variable Insurance Products of Participating Insurance Companies; and WHEREAS, the Fund intends to offer shares of the series set forth on Schedule A (each such series hereinafter referred to as a "Portfolio"), as may be amended from time to time by mutual agreement of the parties hereto, under this Agreement to the Accounts of the Company; and WHEREAS, the Fund has obtained an order from the Securities and Exchange Commission, dated July 24, 1996 (File No. 812-9988), granting Participating Insurance Companies and Variable Insurance Product separate accounts exemptions from the provisions of Sections 9(a), 13(a), 15(a), and 15(b) of the Investment Company Act of 1940, as amended (hereinafter the "1940 Act"), and Rules 6e-2(b)(15) and 6e-3(T)(b)(15) thereunder, to the extent necessary to permit shares of the Fund to be sold to and held by Variable Insurance Products separate accounts of both affiliated and unaffiliated life insurance companies and Qualified Plans (hereinafter the "Shared Funding Exemptive Order"); and WHEREAS, the Fund is registered as an open-end management investment company under the 1940 Act and its shares are registered under the Securities Act of 1933, as amended (hereinafter the "1933 Act"); and WHEREAS, the Distributor is registered as a broker-dealer with the SEC under the Securities Exchange Act of 1934, as amended (hereinafter the "1934 Act"), and is a member in good standing of the National Association of Securities Dealers, Inc. ("NASD"); and WHEREAS, the Distributor is the principal underwriter of the Portfolios of the Fund; and WHEREAS, the Adviser is duly registered as an investment adviser under the Investment Advisers Act of 1940 and any applicable state securities laws; and WHEREAS, the Adviser manages certain Portfolios of the Fund; and WHEREAS, the Company has registered or will register certain Variable Insurance Products under the 1933 Act; and WHEREAS, each Account is a duly organized, validly existing segregated asset account, established by resolution or under authority of the Board of Directors of the Company, on the date shown for such Account on Schedule B hereto, to set aside and invest assets attributable to the aforesaid Variable Insurance Products; and WHEREAS, the Company has registered or will register each Account as a unit investment trust under the 1940 Act; and WHEREAS, to the extent permitted by applicable insurance laws and regulations, the Company intends to purchase shares in the Portfolios on behalf of each Account to fund certain of the aforesaid Variable Insurance Products; NOW, THEREFORE, in consideration of their mutual promises, the Company and the Fund agree as follows: ARTICLE I. Fund Shares 1.1. The Fund agrees to make available for purchase by the Company shares of the Portfolios set forth on Schedule A and shall execute orders placed for each Account on a daily basis at the net asset value next computed after receipt by the Fund or its designee of such order. For purposes of this Section 1.1, the Company shall be the designee of the Fund for receipt of such orders from each Account and receipt by such designee of orders prior to the close of regular trading on the New York Stock Exchange (generally 4:00 p.m. Eastern time) shall constitute receipt by the Fund; provided that the Fund receives notice of such order by 10:00 a.m. Eastern time on the next following Business Day. Notwithstanding the foregoing, the Company shall use its best efforts to provide the Fund with notice of such orders by 9:00 a.m. Eastern time on the next following Business Day. "Business Day" shall mean any day on which the New York Stock Exchange is open for trading and on which the Fund calculates the net asset value pursuant to the rules of the SEC, as set forth in the Fund's Prospectus and Statement of Additional Information. Notwithstanding the foregoing, the Board of Trustees of the Fund (hereinafter the "Board") may refuse to permit the Fund to sell shares of any Portfolio to any person, or suspend or terminate the offering of shares of any Portfolio, if such action is required by law or by regulatory authorities having jurisdiction or is, in the sole discretion of the Board acting in good faith and in light of their fiduciary duties under federal and any applicable state laws, necessary in the best interests of the shareholders of such Portfolio. 1.2. The Fund agrees that shares of the Fund will be sold only to Participating Insurance Companies and their Variable Insurance Products and to certain Qualified Plans. No shares of any Portfolio will be sold to the general public. 1.3. The Fund will not make its shares available for purchase by any insurance company or separate account unless an agreement containing provisions substantially the same as Sections 2.4, 2.9, 3.4 and Article VII of this Agreement is in effect to govern such sales. 1.4. The Fund agrees to redeem for cash, on the Company's request, any full or fractional shares of the Fund held by the Company, executing such requests on a daily basis at the net asset value next computed after receipt by the Fund or its designee of the request for redemption. For purposes of this Section 1.4, the Company shall be the designee of the Fund for receipt of requests for redemption from each Account and receipt by such designee shall constitute receipt by the Fund; provided that the Fund receives notice of such request for redemption on the next following Business Day in accordance with the timing rules described in Section 1.1. 1.5. The Company agrees that purchases and redemptions of Portfolio shares offered by the then current prospectus of the Fund shall be made in accordance with the provisions of such prospectus. The Accounts of the Company, under which amounts may be invested in the Fund, are listed on Schedule B attached hereto and incorporated herein by reference, as such Schedule B may be amended from time to time by mutual written agreement of all of the parties hereto. 1.6. The Company will place separate orders to purchase or redeem shares of each Portfolio. Each order shall describe the net amount of shares and dollar amount of each Portfolio to be purchased or redeemed. In the event of net purchases, the Company shall pay for Portfolio shares on the next Business Day after an order to purchase Portfolio shares is made in accordance with the provisions of Section 1.1 hereof. Payment shall be in federal funds transmitted by wire. In the event of net redemptions, the Portfolio shall use its best efforts to pay the redemption proceeds in federal funds transmitted by wire on the next Business Day, in any event redemption proceeds shall be wired to the Company within three Business Days or such longer period permitted by the 1940 Act, after an order to redeem a Portfolio's shares is made in accordance with the provision of Section 1.4 hereof. Notwithstanding the foregoing, the Portfolio reserves the right to suspend the right of redemption or postpone the date of payment or satisfaction upon redemption consistent with Section 22(e) of the 1940 Act. 1.7. Issuance and transfer of the Fund's shares will be by book entry only. Stock certificates will not be issued to the Company or any Account. Shares ordered from the Fund will be recorded in an appropriate title for each Account or the appropriate subaccount of each Account. 1.8. The Fund shall make the dividends or capital gain distributions per share payable on the Fund's shares available to the Company as soon as reasonably practical after the dividends or capital gains are declared (normally by 6:30 p.m. Eastern time) and shall use its best efforts to furnish same day notice by 7:00 p.m. Eastern time (by wire or telephone, followed by written confirmation) to the Company of any dividends or capital gain distributions per share payable on the Fund's shares. The Company hereby elects to receive all such dividends and capital gain distributions as are payable on the Portfolio shares in additional shares of that Portfolio. The Company reserves the right to revoke this election and to receive all such dividends and capital gain distributions in cash. The Fund shall notify the Company of the number of shares so issued as payment of such dividends and distributions. 1.9. The Fund shall make the net asset value per share for each Portfolio available to the Company on a daily basis as soon as reasonably practical after the net asset value per share is calculated (normally by 6:30 p.m. Eastern time) and shall use its best efforts to make such net asset value per share available by 7:00 p.m. Eastern time. In the event that the Fund is unable to meet the 7:00 p.m. time stated immediately above, then the Fund shall provide the Company with additional time to notify the Fund of purchase or redemption orders pursuant to Sections 1.1 and 1.4, respectively, above. Such additional time shall be equal to the additional time that the Fund takes to make the net asset values available to the Company; provided, however, that notification must be made by 10:15 a.m. Eastern time on the Business Day such order is to be executed regardless of when the net asset value is made available. If the Fund provides the Company with materially incorrect share net asset value information, the Separate Account(s) shall be entitled to a timely adjustment to the number of shares purchased or redeemed necessary to make the Separate Account(s) whole. Any material error in the calculation of the net asset value per share, dividend or capital gain information shall be reported promptly upon discovery to the Company. If such material error results in an underpayment to the Separate Account(s), the Fund shall pay the amount of such underpayment to the Company in order to make the Separate Account(s) whole. If such material error results in an overpayment to the Separate Account(s), the Company will use its best efforts to collect such overpayment. If, after such efforts, the Company is not able to recover all such overpayment, the Company will cooperate with the attempts of the Fund and/or Distributor to recover the overpayment. Furthermore, the Distributor shall be liable for the reasonable administrative costs incurred by the Company in relation to the correction of any material error, provided such error is attributable to the Fund or the Distributor. Administrative costs shall include reasonable allocation of staff time, costs of outside service providers, printing and postage. Non-material errors will be corrected in the next Business Day's net asset value per share. ARTICLE II. Representations and Warranties 2.1. The Company represents and warrants that the interests of the Accounts (the "Contracts") are or will be registered and will maintain the registration under the 1933 Act and the regulations thereunder to the extent required by the 1933 Act (unless an exemption from registration is available) that the Contracts will be issued in compliance in all material respects with all applicable federal and state laws and regulations. The Company further represents and warrants that it is an insurance company duly organized and in good standing under applicable law and that it has legally and validly established each Account prior to any issuance or sale thereof as a segregated asset account under the New York Insurance Law and the regulations thereunder and has registered or, prior to any issuance or sale of the Contracts, will register and will maintain the registration of each Account as a unit investment trust in accordance with and to the extent required by the provisions of the 1940 Act and the regulations thereunder (unless an exemption from registration is available) to serve as a segregated investment account for the Contracts. The Company shall amend its registration statement for its contracts under the 1933 Act and the 1940 Act from time to time as required in order to effect the continuous offering of its Contracts. 2.2. The Fund represents and warrants that Fund shares sold pursuant to this Agreement shall be registered under the 1933 Act and the regulations thereunder to the extent required by the 1933 Act, duly authorized for issuance in accordance with the laws of the State of Delaware and sold in compliance with all applicable federal and state securities laws and regulations and that the Fund is and shall remain registered under the 1940 Act and the regulations thereunder to the extent required by the 1940 Act. The Fund shall amend the registration statement for its shares under the 1933 Act and the 1940 Act from time to time as required in order to effect the continuous offering of its shares. The Fund shall register and qualify the shares for sale in accordance with the laws of the various states only if and to the extent deemed advisable by the Fund. 2.3 The Fund, Distributor and the Adviser represent that the Fund is currently qualified as a Regulated Investment Company under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"), and that the Fund will make every effort to maintain such qualification (under Subchapter M or any successor or similar provision) and that the Fund or its designee will notify the Company immediately upon having a reasonable basis for believing that a Portfolio has ceased to so qualify or that a Portfolio might not so qualify in the future. 2.4. The Company represents that each Account is and will continue to be a "segregated account" under applicable provisions of the Code and that each Contract is and will be treated as a "variable contract" under applicable provisions of the Code and that it will make every effort to maintain such treatments and that it will notify the Fund immediately upon having a reasonable basis for believing that the Account or Contract has ceased to be so treated or that they might not be so treated in the future. 2.5. The Fund represents that to the extent it decides to finance distribution expenses pursuant to Rule 12b-1 under the 1940 Act, the Fund undertakes to have a board of trustees, a majority of whom are not interested persons of the Fund, formulate and approve any plan under Rule 12b-1 to finance distribution expenses in accordance with the 1940 Act. 2.6. The Fund makes no representation as to whether any aspect of its operations (including, but not limited to, fees and expenses and investment policies) complies with the insurance laws or regulations of the various states. 2.7. The Fund, the Distributor and the Adviser represent that the Fund is lawfully organized and validly existing under the laws of Delaware and that the Fund does and will comply in all material respects with the 1940 Act. 2.8. The Distributor and Adviser represent and warrant that each is and shall remain duly registered in all material respects under all applicable federal securities laws and that it will perform its obligations for the Fund and the Company in compliance in all material respects with the laws and regulations of its state of domicile and any applicable state and federal securities laws and regulations. 2.9. The Parties represent and warrant that each of their trustees, officers, employees, investment advisers, and other individuals/entities dealing with the money and/or securities of the Fund are covered by a blanket fidelity bond or similar coverage, in an amount equal to the greater of $5 million or any amount required by applicable federal or state law or regulation. The aforesaid includes coverage for larceny and embezzlement is issued by a reputable bonding company. Each Party agrees to make all reasonable efforts to see that this bond or another bond containing these provisions is always in effect, and each agrees to notify the other in the event that such coverage no longer applies 2.10. The Company represents and warrants that it has a policy intended to discourage shareholders from trading that could be detrimental to long-term shareholders of the Fund (the "Policy"), as set forth in the current prospectus for the contracts (the "Contract Prospectus"). 2.11. The Company represents and warrants that it has implemented policies and procedures reasonably designed to guard against money laundering activities, to detect and report suspicious activities and to comply with the applicable provisions of the Bank Secrecy Act, as amended by the USA PATRIOT Act. 2.12. The Company, Fund and Distributor agree that all non-public records, information, and data relating to the business of the other (including customer names and information and portfolio holdings information) that are exchanged or negotiated pursuant to this Agreement or in carrying out this Agreement shall remain confidential, and shall not be voluntarily disclosed by either party without the prior written consent of the other party, except as may be required by law or by such party to carry out this Agreement or an order of an court, governmental agency or regulatory body. ARTICLE III. Prospectuses, Reports to Shareholders and Proxy Statements; Voting 3.1(a) The Fund or its designee shall provide the Company with as many printed copies of the Fund Prospectus as the Company may reasonably request. If requested by the Company, in addition to providing printed copies of the Fund Prospectus, the Fund shall provide camera-ready film or computer diskettes containing the Fund Prospectus, or shall provide the same electronically in .pdf format, and such other assistance as is reasonably necessary in order for the Company once each year (or more frequently if the Fund Prospectus is amended during the year) to have the Contract Prospectus and the Fund Prospectus printed together in one document or separately. The Company may elect to print the Fund Prospectus in combination with other fund companies' prospectuses. For purposes hereof, any combined prospectus including the Fund Prospectus along with the Contract Prospectus or prospectus of other fund companies shall be referred to as a "Combined Prospectus." For purposes hereof, the term "Fund Portion of the Combined Prospectus" shall refer to the percentage of the number of Fund Prospectus pages in the Combined Prospectus in relation to the total number of pages of the Combined Prospectus. 3.1(b) The Fund shall provide the Company with as many printed copies of the Fund's current statement of additional information (the "Fund SAI") as the Company may reasonably request. If requested by the Company in addition to providing printed copies of the Fund SAI, the Fund shall provide camera-ready film or computer diskettes containing the Fund SAI, or shall provide the same electronically in .pdf format, and such other assistance as is reasonably necessary in order for the Company once each year (or more frequently if the Fund SAI is amended during the year) to have the statement of additional information for the Contracts (the "Contract SAI") and the Fund SAI printed together or separately. The Company may also elect to print the Fund SAI in combination with other fund companies' statements of additional information. For purposes hereof, any combined statement of additional information including the Fund SAI along with the Contract SAI or statement of additional information of other fund companies shall be referred to as a "Combined SAI." For purposes hereof, the term "Fund Portion of the Combined SAI" shall refer to the percentage of the number of Fund SAI pages in the Combined SAI in relation to the total number of pages of the Combined SAI. 3.1(c) The Fund shall provide the Company with as many printed copies of the Fund's annual report and semi-annual report (collectively, the "Fund Reports") as the Company may reasonably request. If requested by the Company in lieu of providing printed copies of the Fund Reports, the Fund shall provide camera-ready film or computer diskettes containing the Fund's Reports, or shall provide the same electronically in .pdf format, and such other assistance as is reasonably necessary in order for the Company once each year to have the annual report and semi-annual report for the Contracts (collectively, the "Contract Reports") and the Fund Reports printed together or separately. The Company may also elect to print the Fund Reports in combination with other fund companies' annual reports and semi-annual reports. For purposes hereof, any combined annual reports and semi-annual reports including the Fund Reports along with the Contract Reports or annual reports and semi-annual reports of other fund companies shall be referred to as "Combined Reports." For purposes hereof, the term "Fund Portion of the Combined Reports" shall refer to the percentage of the number of Fund Reports pages in the Combined Reports in relation to the total number or pages of the Combined Reports. 3.2 Expenses -------- 3.2(a) Expenses Borne by Company. Except as otherwise provided in this ------------------------- Section 3.2., all expenses of preparing, setting in type and printing and distributing (i) Contract Prospectuses, Fund Prospectuses, and Combined Prospectuses; (ii) Fund SAIs, Contract SAIs, and Combined SAIs; (iii) Fund Reports, Contract Reports, and Combined Reports, and (iv) Contract proxy material that the Company may require in sufficient quantity to be sent to Contract owners, annuitants, or participants under Contracts (collectively, the "Participants"), shall be the expense of the Company. 3.2(b) Expenses Borne by Fund ---------------------- Fund Prospectuses ----------------- With respect to existing Participants, the Fund shall pay the cost of setting in type and printing Fund Prospectuses made available by the Company to such existing Participants in order to update disclosure as required by the 1933 Act and/or the 1940 Act. With respect to existing Participants, in the event the Company elects to prepare a Combined Prospectus, the Fund shall pay the cost of setting in type and printing the Fund Portion of the Combined Prospectus made available by the Company to its existing Participants in order to update disclosure as required by the 1933 Act and/or the 1940 Act. In such event, the Fund shall bear the cost of typesetting to provide the Fund Prospectus to the Company in the format in which the Fund is accustomed to formatting prospectus. Notwithstanding the foregoing, in no event shall the Fund pay for any such costs that exceed by more than five (5) percent what the Fund would have paid to print such documents. The Fund shall not pay any costs of typesetting and printing the Fund Prospectus (or Combined Prospectus, if applicable) to prospective Participants. Fund SAIs, Fund Reports and Proxy Material ------------------------------------------ With respect to existing Participants, the Fund shall pay the cost of setting in type, printing and mailing Fund SAIs, Fund Reports and Fund proxy material made available by the Company to its existing Participants. With respect to existing Participants, in the event the Company elects to prepare a Combined SAI or Combined Reports, the Fund shall pay the cost of setting in type and printing the Fund Portion of the Combined SAI or Combined Reports, respectively, made available by the Company to its existing Participants. In such event, the Fund shall bear the cost of typesetting to provide the Fund SAI or Fund Reports to the Company in the format in which the Fund is accustomed to formatting statements of additional information and annual and semi-annual reports. Notwithstanding the foregoing, in no event shall the Fund pay for any such costs that exceed by more than five (5) percent what the Fund would have paid to print such documents. The Company agrees to provide the Fund or its designee with such information as may be reasonably requested by the Fund to assure that the Fund's expenses do not include the cost of typesetting, printing or distributing any of the foregoing documents other than as described above. 3.3. The Fund SAI shall be obtainable from the Fund, the Company or such other person as the Fund may designate. 3.4. If and to the extent required by law the Company shall distribute all proxy material furnished by the Fund to Participants to whom voting privileges are required to be extended and shall: (i) solicit voting instructions from Participants; (ii) vote the Fund shares in accordance with instructions received from Participants; and (iii) vote Fund shares for which no instructions have been received in the same proportion as Fund shares of such Portfolio for which instructions have been received, so long as and to the extent that the SEC continues to interpret the 1940 Act to require pass-through voting privileges for variable contract owners. The Company reserves the right to vote Fund shares held in any segregated asset account in its own right, to the extent permitted by law. The Fund and the Company shall follow the procedures, and shall have the corresponding responsibilities, for the handling of proxy and voting instruction solicitations, as set forth in Schedule C attached hereto and incorporated herein by reference. Participating Insurance Companies shall be responsible for ensuring that each of their separate accounts participating in the Fund calculates voting privileges in a manner consistent with the standards set forth on Schedule C, which standards will also be provided to the other Participating Insurance Companies. 3.5. The Fund will comply with all provisions of the 1940 Act requiring voting by shareholders, and in particular the Fund will either provide for annual meetings (except insofar as the Securities and Exchange Commission may interpret Section 16 not to require such meetings) or comply with Section 16(c) of the 1940 Act (although the Fund is not one of the trusts described in Section 16(c) of that Act) as well as with Sections 16(a) and, if and when applicable, 16(b). Further, the Fund will act in accordance with the Securities and Exchange Commission's interpretation of the requirements of Section 16(a) with respect to periodic elections of directors and with whatever rules the Commission may promulgate with respect thereto. ARTICLE IV. Sales Material and Information 4.1. The Company shall furnish, or shall cause to be furnished, to the Fund or its designee, each piece of sales literature or other promotional material prepared by the Company or any person contracting with the Company in which the Fund the Distributor or the Adviser is named, at least ten Business Days prior to its use. No such material shall be used if the Fund, the Distributor, the Adviser, or their designee reasonably objects to such use within five Business Days after receipt of such material. 4.2. Neither the Company nor any person contracting with the Company shall give any information or make any representations or statements on behalf of the Fund or concerning the Fund in connection with the sale of the Contracts other than the information or representations contained in the registration statement or the Fund Prospectus, as such registration statement or Fund Prospectus may be amended or supplemented from time to time, or in reports or proxy statements for the Fund, or in sales literature or other promotional material approved by the Fund or its designee, except with the written permission of the Fund. 4.3. The Fund or its designee shall furnish, or shall cause to be furnished, to the Company or its designee, each piece of sales literature or other promotional material prepared by the Fund in which the Company or its Account(s) are named at least ten Business Days prior to its use. No such material shall be used if the Company or its designee reasonably objects to such use within five Business Days after receipt of such material. 4.4. Neither the Fund the Distributor nor the Adviser shall give any information or make any representations on behalf of the Company or concerning the Company, each Account, or the Contracts, other than the information or representations contained in a registration statement or prospectus for the Contracts, as such registration statement and prospectus may be amended or supplemented from time to time, or in published reports or solicitations for voting instructions for each Account which are in the public domain or approved by the Company for distribution to Participants, or in sales literature or other promotional material approved by the Company or its designee, except with the written permission of the Company. 4.5. The Fund will provide to the Company at least one complete copy of all registration statements, prospectuses, statements of additional information, reports, proxy statements, sales literature and other promotional materials, applications for exemptions, requests for no-action letters, and all amendments to any of the above, that relate to the Fund or its shares, contemporaneously with the filing of such document with the SEC or other regulatory authorities. 4.6. Upon request of the Fund, Distributor or Adviser, the Company will provide to the Fund at least one complete copy of all registration statements, prospectuses, statements of additional information, reports, solicitations for voting instructions, sales literature and other promotional materials, applications for exemptions, requests for no action letters, and all amendments to any of the above, that relate to the investment in an Account or Contract contemporaneously with the filing of such document with the SEC or other regulatory authorities. 4.7. For purposes of this Article IV, the phrase "sales literature or other promotional material" includes, but is not limited to, any of the following: advertisements (such as material published, or designed for use in, a newspaper, magazine, or other periodical, radio, television, telephone or tape recording, videotape display, signs or billboards, motion pictures, or other public media), sales literature (i.e., any written communication distributed or made generally ---- available to customers or the public, including brochures, circulars, research reports, market letters, form letters, seminar texts, reprints or excerpts of any other advertisement, sales literature, or published article), educational or training materials or other communications distributed or made generally available to some or all agents or employees, and registration statements, prospectuses, statements of additional information, shareholder reports, and proxy materials. ARTICLE V. [Reserved] ARTICLE VI. Diversification 6.1. The Fund represents and warrants that each Portfolio: (a) will use its best efforts to qualify at all times as a look-through entity within the meaning of Treas. Reg. section 1.817-5(f), and (b) use its best efforts to at all times invest money from the Contracts and conduct its operations to ensure that: (i) the assets of the Fund are diversified within the meaning of Treas. Reg. section 1.817-5(b), (ii) the Contracts shall be treated as variable contracts under the Code and the regulations issued thereunder, and (iii) no Contract owner shall be treated as the owner of the assets of an Account solely due to purchase of shares of a Portfolio by an Account. The Fund will take all reasonable steps to notify the Company within ten (10) days of becoming aware of a reasonable basis for believing that a Fund is in breach of the foregoing representation and warranty or that a Portfolio might be in breach in the future. In addition, the Fund will immediately take all reasonable steps to cure any breach and to achieve compliance with the foregoing representations and warranties within the relevant grace period provided under applicable law. ARTICLE VII. Potential Conflicts 7.1. The Board will monitor the Fund for the existence of any material irreconcilable conflict between the interests of the contract owners of all separate accounts investing in the Fund. An irreconcilable material conflict may arise for a variety of reasons, including: (a) an action by any state insurance regulatory authority; (b) a change in applicable federal or state insurance, tax, or securities laws or regulations, or a public ruling, private letter ruling, no-action or interpretative letter, or any similar action by insurance, tax, or securities regulatory authorities; (c) an administrative or judicial decision in any relevant proceeding; (d) the manner in which the investments of any Portfolio are being managed; (e) a difference in voting instructions given by variable annuity contract owners and variable life insurance contract owners; or (f) a decision by a Participating Insurance Company to disregard the voting instructions of Contract owners. The Board shall promptly inform the Company if it determines that an irreconcilable material conflict exists and the implications thereof. 7.2. The Company will report any potential or existing material irreconcilable conflicts of which it is aware to the Board. The Company will assist the Board in carrying out its responsibilities under the Shared Funding Exemptive Order, by providing the Board with all information reasonably necessary for the Board to consider any issues raised. This includes, but is not limited to, an obligation by the Company to inform the Board whenever contract owner voting instructions are disregarded. 7.3. If it is determined by a majority of the Board, or a majority of its disinterested directors, that a material irreconcilable conflict exists, the Company and other Participating Insurance Companies shall, at their expense and to the extent reasonably practicable (as determined by a majority of the disinterested trustees), take whatever steps are necessary to remedy or eliminate the irreconcilable material conflict, up to and including: (1) withdrawing the assets allocable to some or all of the Separate Accounts from the Fund or any Portfolio and reinvesting such assets in a different investment medium, including (but not limited to) another Portfolio of the Fund, or submitting the question whether such segregation should be implemented to a vote of all affected Contract owners and, as appropriate, segregating the assets of any appropriate group (i.e., annuity contract owners, life insurance policy owners, ---- or variable Contract owners of one or more Participating Insurance Companies) that votes in favor of such segregation, or offering to the affected Contract owners the option of making such a change; and (2) establishing a new registered management investment company or managed separate account. No charge or penalty will be imposed as a result of such withdrawal. The Company agrees that it bears the responsibility to take remedial action in the event of a Board determination of an irreconcilable material conflict and the cost of such remedial action, and these responsibilities will be carried out with a view only to the interests of Contract owners. 7.4. If a material irreconcilable conflict arises because of a decision by the Company to disregard contract owner voting instructions and that decision represents a minority position or would preclude a majority vote, the Company may be required, at the Fund's election, to withdraw the affected Account's investment in the Fund and terminate this Agreement with respect to such Account (at the Company's expense); provided, however that such withdrawal and termination shall be limited to the extent required by the foregoing material irreconcilable conflict as determined by a majority of the disinterested members of the Board. No charge or penalty will be imposed as a result of such withdrawal. The Company agrees that it bears the responsibility to take remedial action in the event of a Board determination of an irreconcilable material conflict and the cost of such remedial action, and these responsibilities will be carried out with a view only to the interests of Contract owners. 7.5. For purposes of Sections 7.3 and 7.4 of this Agreement, a majority of the disinterested members of the Board shall determine whether any proposed action adequately remedies any irreconcilable material conflict, but in no event will the Fund be required to establish a new funding medium for the Contracts. The Company shall not be required by Section 7.3 or 7.4 to establish a new funding medium for the Contracts if an offer to do so has been declined by vote of a majority of Contract owners materially adversely affected by the irreconcilable material conflict. 7.6. If and to the extent that Rule 6e-2 and Rule 6e-3(T) are amended, or Rule 6e-3 is adopted, to provide exemptive relief from any provision of the 1940 Act or the rules promulgated thereunder with respect to mixed or shared funding (as defined in the Shared Funding Exemptive Order) on terms and conditions materially different from those contained in the Shared Funding Exemptive Order, then the Fund and/or the Participating Insurance Companies, as appropriate, shall take such steps as may be necessary to comply with Rules 6e-2 and 6e-3(T), as amended, and Rule 6e-3, as adopted, to the extent such rules are applicable. 7.7 The Company and the Distributor shall at least annually submit to the Board of the Fund such reports, materials or data as the Board may reasonably request so that the Board may fully carry out the obligations imposed upon them by the provisions hereof, and said reports, materials and data shall be submitted more frequently if deemed appropriate by the Board. All reports received by the Board of potential or existing conflicts, and all Board action with regard to determining the existence of a conflict, notifying Participating Insurance Companies of a conflict, and determining whether any proposed action adequately remedies a conflict, shall be properly recorded in the minutes of the Board or other appropriate records, and such minutes or other records shall be made available to the SEC upon request. ARTICLE VIII. Indemnification 8.1. Indemnification By The Company ------------------------------ 8.1(a) The Company agrees to indemnify and hold harmless the Fund and each member of its Board and officers, the Distributor and each director and officer of the Distributor, the Adviser and each member or officer of the Adviser, and each person, if any, who controls the Fund or the Distributor within the meaning of Section 15 of the 1933 Act (collectively, the "Indemnified Parties" and individually, "Indemnified Party," for purposes of this Section 8.1) against any and all losses, claims, damages, liabilities (including amounts paid in settlement with the written consent of the Company) or litigation (including legal and other expenses), to which the Indemnified Parties may become subject under any statute or regulation, at common law or otherwise, insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof) or settlements are related to the sale or acquisition of the Fund's shares or the Contracts and: (i) arise out of or are based upon any untrue statements or alleged untrue statements of any material fact contained in the registration statement or prospectus for the Contracts or contained in the Contracts or sales literature for the Contracts (or any amendment or supplement to any of the foregoing), or arise out of or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, provided that this agreement to indemnify shall not apply as to any Indemnified Party if such statement or omission or such alleged statement or omission was made in reliance upon and in conformity with information furnished to the Company by or on behalf of the Fund, the Distributor or the Adviser for use in the registration statement or prospectus for the Contracts or in the Contracts or sales literature (or any amendment or supplement) or otherwise for use in connection with the sale of the Contracts or Fund shares; or (ii) arise out of or as a result of any statements or representations made by or on behalf of the Company (other than statements or representations contained in the registration statement, prospectus or sales literature of the Fund not supplied by the Company or persons under its control and other than statements or representations authorized by the Fund, the Distributor or the Adviser) or unlawful conduct of the Company or persons under its control, with respect to the sale or distribution of the Contracts or Fund shares; or (iii) arise out of or as a result of any untrue statement or alleged untrue statement of a material fact contained in a registration statement, prospectus, or sales literature of the Fund or any amendment thereof or supplement thereto or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading if such a statement or omission was made in reliance upon and in conformity with information furnished to the Fund by or on behalf of the Company; or (iv) arise as a result of any material failure by the Company to provide the services and furnish the materials under the terms of this Agreement; or (v) arise out of or result from any material breach of any representation and/or warranty made by the Company in this Agreement or arise out of or result from any other material breach of this Agreement by the Company. 8.1(b). Notwithstanding Section 8.1(a) above, the Company shall not be liable under this indemnification provision with respect to any losses, claims, damages, liabilities or litigation incurred or assessed against an Indemnified Party as such may arise from such Indemnified Party's willful misfeasance, bad faith, or gross negligence in the performance of such Indemnified Party's duties or by reason of such Indemnified Party's reckless disregard of obligations or duties under this Agreement. 8.1(c). Notwithstanding Section 8.1(a) above, the Company shall not be liable under this indemnification provision with respect to any claim made against an Indemnified Party unless such Indemnified Party shall have notified the Company in writing within a reasonable time after the summons or other first legal process giving information of the nature of the claim shall have been served upon such Indemnified Party (or after such Indemnified Party shall have received notice of such service on any designated agent), but failure to notify the Company of any such claim shall not relieve the Company from any liability which it may have to the Indemnified Party against whom such action is brought unless the Company is materially prejudiced by failure to notify. In case any such action is brought against the Indemnified Parties, the Company shall be entitled to participate, at its own expense, in the defense of such action. The Company also shall be entitled to assume the defense thereof, with counsel satisfactory to the party named in the action. After notice from the Company to such Party of the Company's election to assume the defense thereof, the Indemnified Party shall bear the fees and expenses under this Agreement for any legal or other expenses subsequently incurred by such Party independently in connection with the defense thereof other than reasonable costs of investigation. 8.1(d). The Indemnified Parties will promptly notify the Company of the commencement of any litigation or proceedings against them in connection with the issuance or sale of the Fund shares or the Contracts or the operation of the Fund. 8.2. Indemnification by the Fund, the Distributor and the Adviser ------------------------------------------------------------ 8.2(a). The Fund, the Distributor and the Adviser agree to indemnify and hold harmless the Company and each of its directors and officers and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act (collectively, the "Indemnified Parties" and individually, "Indemnified Party," for purposes of this Section 8.2) against any and all losses, claims, damages, liabilities (including amounts paid in settlement with the written consent of the Fund , the Distributor and the Adviser) or litigation (including legal and other expenses) to which the Indemnified Parties may become subject under any statute, at common law or otherwise, insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof) or settlements are related to the sale or acquisition of the Fund's shares or the Contracts and: (i) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the registration statement or prospectus or sales literature of the Fund (or any amendment or supplement to any of the foregoing), or arise out of or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, provided that this agreement to indemnify shall not apply as to any Indemnified Party if such statement or omission or such alleged statement or omission was made in reliance upon and in conformity with information furnished to the Fund, the Distributor or the Adviser by or on behalf of the Company for use in the registration statement or prospectus for the Fund or in sales literature (or any amendment or supplement) or otherwise for use in connection with the sale of the Contracts or Portfolio shares; or (ii) arise out of or as a result of statements or representations (other than statements or representations contained in the registration statement, prospectus or sales literature for the Contracts not supplied by the Fund, the Distributor, the Adviser or persons under their control and other than statements or representations authorized by the Company) or unlawful conduct of the Fund, the Distributor, the Adviser or persons under their control, with respect to the sale or distribution of the Contracts or Portfolio shares; or (iii) arise out of or as a result of any untrue statement or alleged untrue statement of a material fact contained in a registration statement, prospectus, or sales literature covering the Contracts, or any amendment thereof or supplement thereto, or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statement or statements therein not misleading, if such statement or omission was made in reliance upon information furnished in writing to the Company by or on behalf of the Fund, the Distributor or the Adviser; or (iv) arise as a result of any material failure by the Fund, the Distributor or the Adviser to provide the services and furnish the materials under the terms of this Agreement; or (v) arise out of or result from any material breach of any representation and/or warranty made by the Fund, the Distributor or the Adviser in this Agreement or arise out of or result from any other material breach of this Agreement by the Fund, the Distributor, or the Adviser; including without limitation any failure by the Fund to comply with the conditions of Article VI hereof. 8.2(b). The Fund, the Distributor or the Adviser shall not be liable under this indemnification provision with respect to any losses, claims, damages, liabilities or litigation incurred or assessed against an Indemnified Party as may arise from such Indemnified Party's willful misfeasance, bad faith, or gross negligence in the performance of such Indemnified Party's duties or by reason of such Indemnified Party's reckless disregard of obligations and duties under this Agreement. 8.2(c). The Fund, the Distributor or the Adviser shall not be liable under this indemnification provision with respect to any claim made against an Indemnified Party unless such Indemnified Party shall have notified the Fund, the Distributor and the Adviser in writing within a reasonable time after the summons or other first legal process giving information of the nature of the claim shall have been served upon such Indemnified Party (or after such Indemnified Party shall have received notice of such service on any designated agent), but failure to notify the Fund, the Distributor and the Adviser of any such claim shall not relieve the Fund, the Distributor and the Adviser from any liability which it may have to the Indemnified Party against whom such action is brought otherwise than on account of this indemnification provision. In case any such action is brought against the Indemnified Parties, the Fund, the Distributor and the Adviser will be entitled to participate, at its own expense, in the defense thereof. The Fund, the Distributor and the Adviser also shall be entitled to assume the defense thereof, with counsel satisfactory to the party named in the action. After notice from the Fund, the Distributor and the Adviser to such Party of the Fund's, the Distributor's and the Adviser's election to assume the defense thereof, the Indemnified Party shall bear the fees and expenses of any additional counsel retained by it, and the Fund, the Distributor and the Adviser will not be liable to such Party under this Agreement for any legal or other expenses subsequently incurred by such Party independently in connection with the defense thereof other than reasonable costs of investigation. 8.2(d). The Company agrees promptly to notify the Fund, the Distributor and the Adviser of the commencement of any litigation or proceedings against it or any of its officers, trustees or directors in connection with this Agreement, the issuance or sale of the Contracts with respect to the operation of each Account, or the sale or acquisition of shares of the Fund. 8.2(e). It is understood that these indemnities shall have no effect on any other agreement or arrangement between the Fund and/or its series and the Distributor. ARTICLE IX. Applicable Law 9.1. This Agreement shall be construed and the provisions hereof interpreted under and in accordance with the laws of the State of New York. 9.2. This Agreement shall be subject to the provisions of the 1933, 1934 and 1940 Acts, and the rules and regulations and rulings thereunder, including such exemptions from those statutes, rules and regulations as the SEC may grant (including, but not limited to, the Shared Funding Exemptive Order) and the terms hereof shall be interpreted and construed in accordance therewith. ARTICLE X. Termination 10.1. This Agreement shall continue in full force and effect until the first to occur of: (a) termination by any party for any reason upon six-months advance written notice delivered to the other parties; or (b) termination by the Company by written notice to the Fund, the Distributor and the Adviser with respect to any Portfolio based upon the Company's determination that shares of such Portfolio are not reasonably available to meet the requirements of the Contracts. Reasonable advance notice of election to terminate shall be furnished by the Company, said termination to be effective ten (10) days after receipt of notice unless the Fund makes available a sufficient number of shares to reasonably meet the requirements of the Account within said ten (10) day period; or (c) termination by the Company by written notice to the Fund, the Distributor and the Adviser with respect to any Portfolio in the event any of the Portfolio's shares are not registered, issued or sold in accordance with applicable state and/or federal law or such law precludes the use of such shares as the underlying investment medium of the Contracts issued or to be issued by the Company. The terminating party shall give prompt notice to the other parties of its decision to terminate; or (d) termination by the Company by written notice to the Fund, the Distributor and the Adviser with respect to any Portfolio in the event that such Portfolio ceases to qualify as a Regulated Investment Company under Subchapter M of the Code or under any successor or similar provision, or if the Company reasonably believes that the Fund may fail to so qualify; or (e) termination by the Company by written notice to the Fund the Distributor and the Adviser with respect to any Portfolio in the event that such Portfolio fails to meet the diversification requirements specified in Article VI hereof or the Company has a reasonable expectation that the Fund will fail to meet these diversification requirements in the future; or (f) termination by either the Fund, the Distributor or the Adviser by written notice to the Company if the Fund, the Distributor or the Adviser shall determine, in its sole judgment exercised in good faith, that the Company and/or its affiliated companies has suffered a material adverse change in its business, operations, financial condition or prospects since the date of this Agreement or is the subject of material adverse publicity and as a result ability to perform obligations under this Agreement is materially impaired, provided that the Fund the Distributor or the Adviser will give the Company sixty (60) days' advance written notice of such determination of its intent to terminate this Agreement, and provided further that after consideration of the actions taken by the Company and any other changes in circumstances since the giving of such notice, the determination of the Fund, the Distributor or the Adviser shall continue to apply on the 60th day since giving of such notice, then such 60th day shall be the effective date of termination; or (g) termination by the Company by written notice to the Fund, the Distributor and the Adviser, if the Company shall determine, in its sole judgment exercised in good faith, that either the Fund, the Distributor or the Adviser(with respect to the appropriate Portfolio) has suffered a material adverse change in its business, operations, financial condition or prospects since the date of this Agreement or is the subject of material adverse publicity; provided that the Fund, the Distributor or the Adviser will give the Company sixty (60) days' advance written notice of such determination of its intent to terminate this Agreement, and provided further that after consideration of the actions taken by the Company and any other changes in circumstances since the giving of such notice, the determination of the Company shall continue to apply on the 60th day since giving of such notice, then such 60th day shall be the effective date of termination; or (h) termination by the Company in the event that formal administrative proceedings are instituted against the Fund, the Distributor or the Adviser by the NASD, the SEC, or any state securities or insurance department or any other regulatory body in respect of the sale of shares of the Fund to the Company, provided, however, that the Company determines in its sole judgment exercised in good faith, that any such administrative proceedings will have a material adverse effect upon the ability of the Fund , the Distributor or the Adviser to perform its obligations under this Agreement; or (i) termination by any party upon the other party's breach of any representation in Section 2 or any material provision of this Agreement, which breach has not been cured to the satisfaction of the terminating party within ten (10) days after written notice of such breach is delivered to the Fund or the Company, as the case may be; or (j) termination by the Fund, the Distributor or the Adviser by written notice to the Company in the event an Account or Contract is not registered or sold in accordance with applicable federal or state law or regulation, or the Company fails to provide pass-through voting privileges as specified in Section 3.4; provided that the Fund the Distributor or the Adviser will give the Company sixty (60) days' advance written notice of such intent. 10.2. Effect of Termination. Notwithstanding any termination of this --------------------- Agreement, the Fund shall at the option of the Company, continue to make available additional shares of the Fund pursuant to the terms and conditions of this Agreement, for all Contracts in effect on the effective date of termination of this Agreement (hereinafter referred to as "Existing Contracts") unless such further sale of Fund shares is proscribed by law, regulation or applicable regulatory body, or unless the Fund determines that liquidation of the Fund following termination of this Agreement is in the best interests of the Fund and its shareholders. Specifically, without limitation, the owners of the Existing Contracts shall be permitted to direct reallocation of investments in the Fund, redemption of investments in the Fund and/or investment in the Fund upon the making of additional purchase payments under the Existing Contracts. The parties agree that this Section 10.2 shall not apply to any terminations under Article VII and the effect of such Article VII terminations shall be governed by Article VII of this Agreement. 10.3. The Company shall not redeem Fund shares attributable to the Contracts (as distinct from Fund shares attributable to the Company's assets held in the Account) except (i) as necessary to implement Contract Owner initiated or approved transactions, or (ii) as required by state and/or federal laws or regulations or judicial or other legal precedent of general application (hereinafter referred to as a "Legally Required Redemption") or (iii) as permitted by an order of the SEC pursuant to Section 26(b) of the 1940 Act. Upon request, the Company will promptly furnish to the Fund the opinion of counsel for the Company (which counsel shall be reasonably satisfactory to the Fund the Distributor and the Adviser) to the effect that any redemption pursuant to clause (ii) above is a Legally Required Redemption. Furthermore, except in cases where permitted under the terms of the Contracts, the Company shall not prevent Contract Owners from allocating payments to a Portfolio that was otherwise available under the Contracts without first giving the Fund or the appropriate Distributor 90 days prior written notice of its intention to do so. 10.4. Notwithstanding any termination of this Agreement pursuant to Article X hereof, all rights and obligations arising under Article VIII of this Agreement shall survive. ARTICLE XI. Notices Any notice shall be sufficiently given when sent by registered or certified mail to the other party at the address of such party set forth below or at such other address as such party may from time to time specify in writing to the other party. If to the Fund, the Distributor or the Adviser: Royce Capital Fund/Royce Fund Services, Inc./Royce & Associates, LLC 1414 Avenue of the Americas New York, New York 10019 Attention: John D. Diederich If to the Company: Metropolitan Life Insurance Company Specialized Benefit Resources 485B Route One South, 4th Floor Iselin, N.J. 08830 Attention: Michael F. Rogalski. With a copy to Metropolitan Life Insurance Company 501 Boylston Street, Boston MA 02116 Attention: Law Department. ____________________________ ARTICLE XII. Foreign Tax Credits The Fund and the Distributor agree to consult with the Company concerning whether any Portfolio of the Fund qualifies to provide a foreign tax credit pursuant to Section 853 of the Code. ARTICLE XIII. Miscellaneous 13.1. All persons dealing with the Fund must look solely to the property of the Fund for the enforcement of any claims against the Fund as neither the Board, officers, agents or shareholders assume any personal liability for obligations entered into on behalf of the Fund. 13.2. Subject to the requirements of legal process and regulatory authority, each party hereto shall treat as confidential the names and addresses of the owners of the Contracts and all information reasonably identified as confidential in writing by any other party hereto and, except as permitted by this Agreement, shall not disclose, disseminate or utilize such names and addresses and other confidential information until such time as it may come into the public domain without the express written consent of the affected party. 13.3. The captions in this Agreement are included for convenience of reference only and in no way define or delineate any of the provisions hereof or otherwise affect their construction or effect. 13.4. This Agreement may be executed simultaneously in two or more counterparts, each of which taken together shall constitute one and the same instrument. 13.5. If any provision of this Agreement shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of this Agreement shall not be affected thereby. 13.6. Each party hereto shall cooperate with each other party and all appropriate governmental authorities (including without limitation the SEC, the NASD and state insurance regulators) and shall permit such authorities reasonable access to its books and records in connection with any investigation or inquiry relating to this Agreement or the transactions contemplated hereby. 13.7. The rights, remedies and obligations contained in this Agreement are cumulative and are in addition to any and all rights, remedies and obligations at law or in equity, which the parties hereto are entitled to under state and federal laws. 13.8. This Agreement or any of the rights and obligations hereunder may not be assigned by any party without the prior written consent of all parties hereto; provided, however, that the Distributor may assign this Agreement or any rights or obligations hereunder to any affiliate of or company under common control with the Distributor, if such assignee is duly licensed and registered to perform the obligations of the Distributor under this Agreement. 13.9 Upon the request of the Fund, Distributor or Adviser, the Company shall furnish, or shall cause to be furnished, to the Fund or its designee copies of the following reports: (a) the Company's annual statement (prepared under statutory accounting principles) and annual report (prepared under generally accepted accounting principles ("GAAP"), if any), as soon as practical and in any event within 90 days after the end of each fiscal year; (b) the Company's June 30th quarterly statements (statutory) (and GAAP, if any), as soon as practical and in any event within 45 days after the end of each semi-annual period: (c) any financial statement, proxy statement, notice or report of the Company sent to stockholders and/or policyholders; (d) any registration statement (without exhibits) and financial reports of the Company filed with the SEC or any state insurance regulator, 13.10. The Company hereby acknowledges that the Fund has notified the Company that it may be appropriate for its separate account prospectuses or offering memoranda to contain disclosure regarding the potential risks of mixed and shared funding. IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed in its name and on its behalf by its duly authorized representative hereto as of the date specified above. _________________________ on behalf of itself and each of its Accounts named in Schedule B hereto, as amended from time to time. METROPOLITAN LIFE INSURANCE COMPANY By: /s/ Kathleen Muleski ------------------------------- Name: Kathleen Muleski Title: VP & Actuary ROYCE FUND SERVICES, INC. By: /s/ John D. Diederich ------------------------------- Name: John D. Diederich Title: President ROYCE CAPITAL FUND By: /s/ John D. Diederich ------------------------------- Name: John D. Diederich Title: Vice President ROYCE & ASSOCIATES, LLC By: /s/ John D. Diederich ------------------------------- Name: John D. Diederich Title: Chief Operating Officer SCHEDULE A PORTFOLIOS OF ROYCE CAPITAL FUND FUNDS AVAILABLE FOR PURCHASE BY _________________________ Royce Capital Fund - Micro-Cap Portfolio Royce Capital Fund - Small-Cap Portfolio SCHEDULE B SEPARATE ACCOUNTS AND CONTRACTS -------------------------------
Separate Account Date Established ---------------- Metropolitan Life Separate Account UL December 13, 1988 Metropolitan Life Separate Account DCVL November 4, 2003
Contracts --------- Individual Variable Life Insurance Policies (MetFlex) Group Private Placement Variable Life Insurance Policies (PPVL) SCHEDULE C PROXY VOTING PROCEDURES ----------------------- The following is a list of procedures and corresponding responsibilities for the handling of proxies and voting instructions relating to the Fund. The defined terms herein shall have the meanings assigned in the Participation Agreement except that the term "Company" shall also include the department or third party assigned by the Company to perform the steps delineated below. 1. The proxy proposals are given to the Company by the Fund as early as possible before the date set by the Fund for the shareholder meeting to enable the Company to consider and prepare for the solicitation of voting instructions from owners of the Contracts and to facilitate the establishment of tabulation procedures. At this time the Fund will inform the Company of the Record, Mailing and Meeting dates. This will be done verbally approximately two months before meeting. 2. Promptly after the Record Date, the Company will perform a "tape run", or other activity, which will generate the names, addresses and number of units which are attributed to each contract owner/policyholder (the "Customer") as of the Record Date. Allowance should be made for account adjustments made after this date that could affect the status of the Customers' accounts as of the Record Date. Note: The number of proxy statements is determined by the activities described in this Step #2. The Company will use its best efforts to call in the number of Customers to the Fund , as soon as possible, but no later than two weeks after the Record Date. 3. The text and format for the Voting Instruction Cards ("Cards" or "Card") is provided to the Company by the Fund. The Company, at its expense, shall produce and personalize the Voting Instruction Cards. The Fund or its affiliate must approve the Card before it is printed. Allow approximately 2-4 business days for printing information on the Cards. Information commonly found on the Cards includes: a. name (legal name as found on account registration) b. address c. fund or account number d. coding to state number of units e. individual Card number for use in tracking and verification of votes (already on Cards as printed by the Fund). (This and related steps may occur later in the chronological process due to possible uncertainties relating to the proposals.) 4. During this time, the Fund will develop, produce and pay for the Notice of Proxy and the Proxy Statement (one document). Printed and folded notices and statements will be sent to Company for insertion into envelopes (envelopes and return envelopes are provided and paid for by the Company). Contents of envelope sent to Customers by the Company will include: a. Voting Instruction Card(s) b. One proxy notice and statement (one document) c. return envelope (postage pre-paid by Company) addressed to the Company or its tabulation agent d. "urge buckslip" - optional, but recommended. (This is a small, single sheet of paper that requests Customers to vote as quickly as possible and that their vote is important. One copy will be supplied by the Fund.) e. cover letter - optional, supplied by Company and reviewed and approved in advance by the Fund. 5. The above contents should be received by the Company approximately 3-5 business days before mail date. Individual in charge at Company reviews and approves the contents of the mailing package to ensure correctness and completeness. Copy of this approval sent to the Fund. 6. Package mailed by the Company. * The Fund must allow at least a 15-day solicitation time to the Company as the shareowner. (A 5-week period is recommended.) Solicitation time is calculated as calendar days from (but not --- including,) the meeting, counting backwards. 7. Collection and tabulation of Cards begins. Tabulation usually takes place in another department or another vendor depending on process used. An often used procedure is to sort Cards on arrival by proposal into vote categories of all yes, no, or mixed replies, and to begin data entry. Note: Postmarks are not generally needed. A need for postmark information would be due to an insurance company's internal procedure and has not been required by the Fund in the past. 8. Signatures on Card checked against legal name on account registration which was printed on the Card. Note: For example, if the account registration is under "John A. Smith, Trustee," then that is the exact legal name to be printed on the Card and is the signature needed on the Card. 9. If Cards are mutilated, or for any reason are illegible or are not signed properly, they are sent back to Customer with an explanatory letter and a new Card and return envelope. The mutilated or illegible Card is disregarded and considered to be not --- received for purposes of vote tabulation. Any Cards that have been "kicked -------- out" (e.g. mutilated, illegible) of the procedure are "hand verified," i.e., examined as to why they did not complete the system. Any questions on those Cards are usually remedied individually. 10. There are various control procedures used to ensure proper tabulation of votes and accuracy of that tabulation. The most prevalent is to sort the Cards as they first arrive into categories depending upon their vote; an estimate of how the vote is progressing may then be calculated. If the initial estimates and the actual vote do not coincide, then an internal audit of that vote should occur. This may entail a recount. 11. The actual tabulation of votes is done in units which is then converted to shares. (It is very important that the Fund receives the tabulations stated in terms of a percentage and the number of shares.) The Fund must review ------ and approve tabulation format. 12. Final tabulation in shares is verbally given by the Company to the Fund on the morning of the meeting not later than 10:00 a.m. Eastern time. The Fund may request an earlier deadline if reasonable and if required to calculate the vote in time for the meeting. 13. A Certification of Mailing and Authorization to Vote Shares will be required from the Company as well as an original copy of the final vote. The Fund will provide a standard form for each Certification. 14. The Company will be required to box and archive the Cards received from the Customers. In the event that any vote is challenged or if otherwise necessary for legal, regulatory, or accounting purposes, the Fund will be permitted reasonable access to such Cards. 15. All approvals and "signing-off' may be done orally, but must always be followed up in writing. EX-99.(H)(XIX) 3 d830948dex99hxix.txt PARTICIPATION AGREEMENT WITH TRUST FOR ADVISED PORTFOLIOS PARTICIPATION AGREEMENT AMONG TRUST FOR ADVISED PORTFOLIOS, QUASAR DISTRIBUTORS, LLC 1919 INVESTMENT COUNSEL, LLC AND METROPOLITAN LIFE INSURANCE COMPANY THIS AGREEMENT, made and entered into this 7th day of November by and among Metropolitan Life Insurance Company, a New York corporation (the "Company"), on its own behalf and on behalf of each segregated asset account of the Company set forth on Schedule A hereto, as may be amended from time to time (each such account hereinafter referred to as the "Account"), and the Trust for Advised Portfolios (the "Trust"), a Delaware statutory trust on behalf of each series listed on Schedule B (each a "Fund", collectively the "Funds"), Quasar Distributors, LLC, a Delaware limited liability company (the "Distributor"), and 1919 Investment Counsel, LLC, a Delaware limited liability company (the "Adviser"). WHEREAS, the Fund engages in business as an open-end management investment company and is available to act as (i) the investment vehicle for separate accounts established for variable life insurance policies and variable annuity contracts (collectively, the "Contracts") to be offered by insurance companies that have entered into participation agreements with the Fund, the Adviser and the Distributor (each, a "Participating Insurance Company" and collectively, the "Participating Insurance Companies"), and (ii) the investment vehicle for certain qualified pension and retirement plans ("Qualified Plans") for which the shares of the Fund are either held by Participating Insurance Companies on behalf of the Qualified Plans through omnibus accounts or are held by Qualified Plans without any financial intermediary through direct accounts on the books of the Fund; WHEREAS, the Trust has obtained an order from the Securities and Exchange Commission (the "SEC"), granting the Participating Insurance Companies and variable annuity and variable insurance separate accounts exemptions from the provisions of Sections 9(a), 13(a), 15(a), and 15(b) of the Investment Company Act of 1940, (the "1940 Act" which for the purposes of this Agreement includes the rules and regulations thereunder, all as amended from time to time, as may apply to a Fund, including pursuant to any exemptive, interpretive or other relief or guidance issued by the Commission or the staff of the Commission under such Act) and Rules 6e-2(b)(15) and 6e-3(T)(b)(15) thereunder, to the extent necessary to permit shares of the Fund to be sold to and held by variable annuity and variable life insurance separate accounts of both affiliated and unaffiliated life insurance companies (the "Mixed and Shared Funding Exemptive Order"); WHEREAS, the Fund is registered as an open-end management investment company under the 1940 Act and its shares are registered under the Securities Act of 1933, as amended (the "1933 Act"); WHEREAS, the Distributor is duly registered as a broker-dealer under the Securities Exchange Act of 1934 (the "Exchange Act") and any applicable state securities law; WHEREAS, the Adviser is duly registered as an investment adviser under the Investment Advisers Act of 1940, as amended; WHEREAS, the Distributor is a distributor of shares of the Fund; WHEREAS, the Company has registered or will register certain Contracts under the 1933 Act, or such Contracts are or will be exempt from registration thereunder; WHEREAS, each Account is a duly organized, validly existing segregated asset account, established by resolution of the Board of Directors of the Company to set aside and invest assets attributable to one or more Contracts; WHEREAS, each Account is or will be registered as an investment company under the 1940 Act, or the Account is or will be exempt from registration under the 1940 Act; 2 WHEREAS, to the extent permitted by applicable insurance laws and regulations, the Company intends to purchase shares in the Fund on behalf of each Account to fund certain of the aforesaid Contracts, and NOW, THEREFORE, in consideration of their mutual promises the Company, the Fund and the Distributor agree as follows: ARTICLE I. SALE OF FUND SHARES ------------------- 1.1 The Fund agrees to sell to the Company those shares of the Fund which each Account orders, executing such orders on a daily basis at the net asset value next computed after receipt by the Fund or its designee of the order for Fund shares. For purposes of this Section 1.1, the Company shall be the designee of the Fund for receipt of such orders from each Account and receipt by such designee shall constitute receipt by the Fund, provided that: (i) the orders are received by the Company (or their designee) in good order prior to the time the net asset value of each Fund is priced in accordance with its Prospectus/1/ (generally at the close of regular trading on the New York Stock Exchange (the "NYSE") at 4:00 p.m. Eastern Time), and (ii) the Fund receives notice of such order by 10:00 a.m. Eastern Time on the next following "Business Day." "Business Day" shall mean any day on which the NYSE is open for regular trading and on which the Fund calculates its net asset value pursuant to the rules of the SEC. 1.2 The Fund agrees to make its shares available indefinitely for purchase at the applicable net asset value per share by the Company and its Accounts on those days on which the Fund calculates its net asset value, which is calculated each day that the NYSE is open for trading. Notwithstanding the foregoing, the Board of Trustees of the Trust (the "Board") may refuse to sell shares of any Fund to any person, or suspend or terminate the offering of shares of any Fund if such action is required by law or by --------- /1/ The term "Prospectus" as used herein, refers to the prospectus and related statement of additional information (the "Statement of Additional Information") incorporated therein by reference (each as amended or supplemented) on file with the SEC at the time in question. 3 any regulatory authority having jurisdiction or is, in the sole discretion of the Board acting in good faith and in light of their fiduciary duties under federal and any applicable state laws, necessary in the best interest of the shareholders of such Fund. 1.3 The Fund, the Adviser and the Distributor agree that shares of the Fund will be sold only to Participating Insurance Companies and their separate accounts and, in accordance with the terms of the Mixed and Shared Funding Exemptive Order, certain Qualified Plans. No shares of a Fund will be sold to the general public. 1.4 The Fund will not sell Fund shares to any insurance company or separate account unless an agreement containing provisions substantially the same as Articles I, III, V, VI and Section 2.5 of Article II of this Agreement is in effect to govern such sales. 1.5 The Fund agrees to redeem for cash, on the Company's request, any full or fractional shares of the Fund held by the Company, executing such requests on a daily basis at the net asset value next computed after receipt by the Fund or its designee of the request for redemption. For purposes of this Section 1.5, the Company shall be the designee of the Fund for receipt of requests for redemption from the Account and receipt by such designee shall constitute receipt by the Fund, provided that: (i) the orders are received by the Company (or its designee) in good order prior to the time the net asset value of each Fund is priced in accordance with its Prospectus (generally at the close of regular trading on the NYSE at 4:00 p.m. Eastern Time), and (ii) provided that the Fund receives notice of such request for redemption by 10:00 a.m. Eastern Time on the next following "Business Day." The Fund may impose redemption fees, as described in the Prospectus. 1.6 The Company agrees to purchase and redeem the shares of each Fund offered by the then current Prospectus of the Fund and in accordance with the provisions of such Prospectus. The Company agrees that all net amounts available under the Contracts which are listed on Schedule A attached hereto and incorporated herein by this reference, as such Schedule A may be amended from time to time hereafter by mutual written agreement of all the parties hereto, shall be invested in the Fund, in such other Funds selected by the Company or in the Company's general account. The Company agrees to comply 4 with the provisions of Rule 22c-2 under the 1940 Act as applicable to the Fund (including reporting procedures adopted to comply with the Rule). 1.7 The Company shall pay for Fund shares on the next "Business Day" after an order to purchase Fund shares is made in accordance with the provisions of Section 1.1 hereof. Payment shall be in federal funds transmitted by wire. For purpose of Sections 2.9 and 2.10, upon receipt by the Fund of the federal funds so wired, such funds shall cease to be the responsibility of the Company and shall become the responsibility of the Fund. 1.8 Issuance and transfer of the Fund's shares will be by book entry only. Stock certificates will not be issued to the Company or any Account. Shares ordered from the Fund will be recorded in an appropriate title for each Account or the appropriate subaccount of each Account. 1.9 The Fund shall furnish same day notice by wire, telephone (followed by written confirmation), electronic media or fax to the Company of any income, dividends or capital gain distributions payable on the Fund's shares. The Company hereby elects to receive all such income dividends and capital gain distributions as are payable on Portfolio shares in additional shares of the applicable Portfolio. The Company reserves the right to revoke this election and to receive all such income dividends and capital gain distributions in cash. The Fund shall notify the Company of the number of shares so issued as payment of such dividends and distributions. 1.10 The Fund shall provide (electronically or by fax) the closing net asset value per share for each Portfolio to the Company on a daily basis as soon as reasonably practical after the closing net asset value per share is calculated (normally 6:30 p.m. Eastern Time) and shall use its best efforts to make such net asset value per share available by 7:00 p.m. Eastern Time. In the event that the Fund is unable to meet the 7.00 p.m. time stated immediately above, then the Fund shall immediately notify the Company and provide the Company with additional time to notify the Fund of purchase or redemption orders pursuant to Sections 1.1 and 1.5, respectively, above. Such additional time shall be equal to the additional time that the Fund takes to make the closing net asset values available to the Company. If the Fund provides the Company with the incorrect closing share net asset value information, the Company, on behalf of the 5 Account, shall be entitled to a prompt adjustment to the number of shares purchased or redeemed to reflect the correct share net asset value, and the Fund or the Distributor shall bear the cost of correcting such errors. Upon a final determination that there has been an error in the calculation of the closing net asset value, dividend or capital gain, the Fund shall promptly report such error to the Company. 1.11 The Fund shall, upon request of the Company, provide a manual daily confirmation of trade activity from the previous "Business Day." Such confirmation shall include the dollar amount of purchases or redemptions submitted by the Company for each Portfolio, price per share of each Portfolio, and the corresponding total share amount of such purchase or redemption, and shall be transmitted to the Company on the Business Day following the request. 1.12 The Fund shall, upon request of the Company, provide on a monthly basis, a screen printed report of the monthly trade activity for the Account which shall be transmitted to the Company on the "Business Day" following the request. ARTICLE II. REPRESENTATIONS AND WARRANTIES ------------------------------ 2.1 The Company represents and warrants that the Contracts are or will be registered under the 1933 Act, unless exempt from such registration, and that the Contracts will be issued and sold in compliance in all material respects with all applicable Federal and State laws and regulations. The Company shall amend the registration statements for its Contracts under the 1933 Act and 1940 Act from time to time as required to effect the continuous offering of its Contracts. The Company represents and warrants that it is an insurance company duly organized and in good standing under applicable law and that it has legally and validly established each Account prior to any issuance or sale thereof as a segregated asset account under their domiciliary state insurance laws and has registered or, prior to any issuance or sale of the Contracts, will register each Account as a unit investment trust in accordance with the provisions of the 1940 Act to serve as a segregated investment account for the Contracts, unless exempt from such registration. The Company represents and warrants that the Company and the Account are in compliance with Rule 38a-1 under the 1940 Act pursuant to the requirements of federal law or of 6 any state insurance department. The Company represents and warrants that it has implemented controls designed to prevent, and will provide any reasonable assistance requested by the Fund related to the deterrence of, market timing and/or late trading of shares of the Fund. Further, the Company represents and warrants that: (a) The Company has in place an anti-money laundering program ("AML program") that does now and will continue to comply with applicable laws and regulations, including the relevant provisions of the Bank Secrecy Act and the USA PATRIOT Act (Pub. L. No. 107-56 (2001)), as they may be amended, and the regulations issued thereunder by duly vested regulatory authority and the Rules of Conduct of the Financial Industry Regulatory Authority ("FINRA") ("Anti-Money Laundering Law and Regulation"). (b) The Company has, after undertaking reasonable inquiry, no information or knowledge that (i) any Contract owners of all separate accounts investing in the Fund, or (ii) any person or entity controlling, controlled by or under common control with such Contract owners is an individual or entity or in a country or territory that is on an Office of Foreign Assets Control ("OFAC") list or similar list of sanctioned or prohibited persons maintained by a U.S. governmental or regulatory body. (c) The Company has in place policies, procedures and internal controls reasonably designed (i) to verify the identity of Contract owners, and (ii) to identify those Contract owners' sources of funds, and has no reason to believe that any of the invested funds were derived from illegal activities. (d) The Company will provide the Fund or the Distributor (or their respective service providers) upon reasonable request any information regarding specific accounts that may be reasonably necessary for the Fund and its service providers to fulfill their responsibilities relating to their anti-money laundering programs or any other information reasonably requested by the Fund or the Distributor (or their respective service providers) to assist with compliance with the Anti-Money Laundering Law and Regulation, as may be permitted by law or regulation. (e) The Company will promptly notify the Fund and the Distributor should the Company become aware of any change in the above representations and warranties to the extent that the 7 change relates to the relationship between the Company and the Fund and/or Distributor. In addition, the Fund and the Distributor hereby provide notice to the Company that the Fund and/or the Distributor reserve the right to make inquires of and request additional information from the Company regarding its AML program. 2.2 The Fund represents and warrants that Fund shares sold pursuant to this Agreement shall be registered under the 1933 Act, duly authorized for issuance and sold in compliance with the laws of the State of Delaware, as applicable, and all applicable federal and state securities laws. Further, the Fund represents and warrants that the Fund is in compliance with Rule 38a-1 under the 1940 Act. The Fund is and shall remain registered under the 1940 Act. The Fund shall amend the registration statement for its shares under the 1933 Act and the 1940 Act from time to time as required in order to effect the continuous offering of its shares. The Fund shall register and qualify the shares for sale in accordance with the laws of all states. The Distributor or the Fund shall provide to the Company a list of the various jurisdictions in which the Portfolios are registered. 2.3 The Fund represents that it is currently qualified as a Regulated Investment Company under Subchapter M of the Internal Revenue Code of 1986, as amended, (the "Code") and that it will make every effort to maintain such qualification (under Subchapter M or any successor or similar provision) and that it will notify the Company immediately upon having a reasonable basis for believing that it has ceased to so qualify or that it might not so qualify in the future. The parties acknowledge that compliance with Subchapter M is an essential element of compliance with Section 817(h) of the Code. 2.4 The Company represents that the Contracts are currently treated as endowment, annuity or life insurance contracts, under applicable provisions of the Code and that it will make every effort to maintain such treatment and that it will notify the Funds and the Distributor immediately upon having a reasonable basis for believing that the Contracts have ceased to be so treated or that they might not be so treated in the future. 2.5 The Company represents that either (i) the Company does not make the Fund available as an investment vehicle for any clients of the Company (other than through Contracts), or (ii) if the 8 Company makes the Fund available as an investment vehicle for any clients of the Company (other than through Contracts), the Company has adopted commercially reasonable procedures ("Procedures for Qualified Plan Clients") to ensure (A) such client is a "Qualified Pension Or Retirement Plan" within the meaning of Revenue Ruling 94-62, as supplemented or modified by Revenue Ruling 2007-58 and any successor guidance, (B) such client provides written assurances initially and on a periodic basis that it is not aware of any failure resulting in the loss of its tax-qualified status, and (C) such client will notify the Company in the event of a loss of its tax-qualified status and agrees to redeem its interest in the Fund within 90 days after such notice. If the adoption of, or any change in, any applicable law or regulatory guidance after the date hereof would require any changes or additions to such procedures in order for such client to be treated as a Qualified Pension Or Retirement Plan, the Company will take such reasonable steps in good faith as may be reasonably necessary to facilitate compliance with Section 817(h) of the Code and the Treasury regulations thereunder. 2.6 The Fund represents and warrants that it has adopted, or has caused to be adopted, written procedures under which (i) financial intermediaries may only make the Fund available to its Qualified Plan clients if any such financial intermediary is a Participating Insurance Company, (ii) if any such Participating Insurance Company requests that the Fund be made available as an investment vehicle for its Qualified Plan clients (other than through Contracts), such Participating Insurance Company will be required to represent in writing that it has adopted Procedures for Qualified Plan Clients, and (iii) shares of the Fund may only be held by Qualified Plans without a financial intermediary through direct accounts on the books of the Fund if the Fund has adopted Procedures for Qualified Plans. 2.7 The Funds represent and warrants that each Fund: (i) qualifies as a look-through entity within the meaning of Treas. Reg. section 1.817-5(f), and (ii) shall at all times invest money from the Contracts and conduct its operations to ensure that: (a) the assets of the Fund are diversified within the meaning of Treas. Reg. section 1.817-5(b), (b) the Contracts shall be treated as variable contracts under the Code and the regulations issued thereunder, and 9 (c) no Contract owner shall be treated as the owner of the assets of an Account solely due to the purchase of shares of a Fund by an Account. The Funds will notify the Company immediately upon having a reasonable basis for believing that a Fund is in breach of the foregoing representation and warranty or that a Fund might be in breach in the future. In addition, the Fund will immediately take all steps necessary to cure any breach to achieve compliance with the foregoing representations and warranties. 2.8 The Fund has adopted a Rule 12b-1 Plan under which it makes payments to finance administrative, service, and distribution expenses with respect to certain Portfolios. The Fund represents and warrants that its Board, a majority of whom are not interested persons of the Fund, has approved such Rule 12b-1 Plan to finance administrative, service, and distribution expenses of the Fund's Portfolios that are subject to a 12b-1 fee, and that any changes to the Fund's Rule 12b-l Plan will be approved, in accordance with Rule 12b-1 under the 1940 Act. 2.9 The Fund makes no representation as to whether any aspect of its operations (including, but not limited to, fees, expenses and investment policies) complies with the insurance laws or regulations of various states except that the Fund represents that the Fund's investment policies, fees and expenses are and shall at all times remain in compliance with the laws of its state of domicile, and the Fund represents that its respective operations are and shall at all times remain in material compliance with the laws of its state of domicile, to the extent required to perform this Agreement. 2.10 The Distributor represents and warrants that the Distributor is and shall remain duly registered in all material respects under all applicable federal and state laws and regulations and that the Distributor shall perform its obligations for the Fund in compliance in all material respects with the laws of the State of Delaware, and any applicable state and federal laws and regulations. 2.11 The Adviser represents and warrants that the Adviser is and shall remain duly registered in all material respects under all applicable federal and state laws and regulations and that the Adviser shall perform its obligations for the Fund in compliance in all material respects with the laws of the State of Delaware, and any applicable state and federal laws and regulations. 10 2.12 The Fund represents and warrants that its trustees, officers, employees, and other individuals/entities dealing with the money and/or securities of the Fund are and shall continue to be at all times covered by a blanket fidelity bond or similar coverage for the benefit of the Fund in an amount not less than the minimal coverage as required currently by Rule 17g-1 of the 1940 Act or related provisions as may be promulgated from time to time. The aforesaid bond shall include coverage for larceny and embezzlement and shall be issued by a reputable bonding company. 2.13 The Company represents and warrants that all of its directors, officers, employees, investment advisers, and other individuals/entities dealing with the money and/or securities of the Fund are and shall continue to be at all times covered by a blanket fidelity bond or similar coverage in an amount not less than the minimal coverage as required currently by entities subject to the requirements of Rule 17g-1 of the 1940 Act or related provisions as may be promulgated from time to time. The aforesaid bond shall include coverage for larceny and embezzlement and shall be issued by a reputable bonding company. 2.14 Each party to this Agreement will maintain all records required by law, including records detailing the services it provides. Such records will be preserved, maintained and made available to the extent required by law and in accordance with the 1940 Act and the rules thereunder. Upon request by the Fund, the Adviser or the Distributor, the Company agrees promptly to make copies or, if required, originals of all records pertaining to the performance of services under this Agreement available to the Fund, the Adviser or the Distributor, as the case may be. The Fund agrees that the Company will have the right to inspect, audit and copy all records pertaining to the performance of services under this Agreement pursuant to the requirements of any state insurance department. Each party also agrees promptly to notify the other parties if it experiences any difficulty in maintaining the records in an accurate and complete manner. This provision shall survive termination of the Agreement. 11 ARTICLE III. PROSPECTUSES AND PROXY STATEMENTS; VOTING ----------------------------------------- 3.1 For prospective Contract owners, the Distributor shall provide the Company (at the Company's expense) with as many copies of the Fund's current Prospectus as the Company may reasonably request. If requested by the Company in lieu thereof, the Fund shall provide such documentation (including a final copy of the new Prospectus as set in type at the Fund's expense - in lieu thereof, such final copy may be provided, if requested by the Company, electronically or through camera ready film) and other assistance as is reasonably necessary in order for the Company once each year (or more frequently, if the Prospectus for the Fund is amended) to have the prospectus for each Contract and the Fund's Prospectus printed together in one document (such printing to be at the Company's expense). 3.2 The Fund's Prospectus shall state that the Statement of Additional Information for the Fund is available from the Distributor (or in the Fund's discretion, the Prospectus shall state that such Statement is available from the Fund), and the Distributor (or the Fund), at its expense, shall print and provide such Statement free of charge to the Company and to any owner of a Contract or prospective owner who requests such Statement. 3.3 The Fund, at its expense, shall provide the Company with copies of its proxy material, reports to shareholders, and other communications to shareholders in such quantity as the Company shall reasonably require for distributing to Contract owners. 3.4 If and to the extent required by the 1940 Act or other applicable law the Company shall: (a) assist the Fund in soliciting voting instructions from Contract owners by providing the Fund with a mailing list of Contract owners; (b) vote Fund shares in accordance with instructions received from Contract owners; and (c) vote Fund shares for which no instructions have been received in the same proportion as Fund shares of such Portfolio for which instructions have been received. The Company reserves the right to vote Fund shares held in any segregated asset account in its own right, to the extent 12 permitted by law. Each Participating Insurance Company shall be responsible for assuring that each of its separate accounts participating in the Fund calculates voting privileges in a manner consistent with this Section. 3.5 The Fund will comply with all provisions of the 1940 Act requiring voting by shareholders ARTICLE IV. SALES MATERIAL AND INFORMATION ------------------------------ 4.1 The Company shall furnish, or shall cause to be furnished, to the Fund or its designee, each piece of sales literature or other promotional material in which the Fund or its investment adviser or any of its underwriters is named, at least fifteen (15) "Business Days" prior to its use. No such material shall be used if the Fund or its designee objects to such use within fifteen (15) "Business Days" after receipt of such material. 4.2 The Company shall not give any information or make any representations or statements on behalf of the Fund or concerning the Fund in connection with the sale of the Contracts other than the information or representations contained in the registration statement or Prospectus for the Fund shares, as such registration statement and Prospectus may be amended or supplemented from time to time, or in reports or proxy statements for the Fund, or in sales literature or other promotional material approved by the Fund or the Distributor or the designee of either, except with the permission of the Fund or the Distributor or the designee of either. 4.3 The Fund and the Distributor, or the designee of either shall furnish, or shall cause to be furnished, to the Company or its designee, each piece of sales literature or other promotional material in which the Company and/or its Account(s), is named at least fifteen (15) "Business Days" prior to its use. No such material shall be used if the Company or its designee objects to such use within fifteen (15) "Business Days" after receipt of such material. 4.4 The Fund and the Distributor shall not give any information or make any representations on behalf of the Company or concerning the Company, an Account, or the Contracts other than the 13 information or representations contained in a registration statement or prospectus for the Contracts, as such registration statement and prospectus may be amended or supplemented from time to time, or in published reports for each Account which are in the public domain or approved by the Company for distribution to Contract owners, or in sales literature or other promotional material approved by the Company or its designee, except with the permission of the Company. 4.5 Upon request, the Fund will provide to the Company at least one complete copy of all registration statements, Prospectuses, Statements of Additional Information, reports, proxy statements, sales literature and other promotional materials, applications for exemptions, requests for no-action letters, and all amendments to any of the above, that relate to the Fund or its shares. 4.6 Upon request, the Company will provide to the Fund at least one complete copy of all registration statements, prospectuses, Statements of Additional Information, reports, solicitations for voting instructions, sales literature and other promotional materials, applications for exemptions, requests for no action letters, and all amendments to any of the above, that relate to the Contracts or the Account. 4.7 For purposes of this Article IV, the phrase "sales literature or other promotional material" includes, but is not limited to, advertisements (such as materials published, or designed for use, in a newspaper, magazine, or other periodical, radio, television, telephone or tape recording, videotape display, signs or billboards, motion pictures, or other public media), sales literature, (I.E., any written communication distributed or made generally available to customers or the public, including brochures, circulars, research reports, market letters, form letters, seminar texts, reprints or excerpts of any other advertisement, sales literature, or published article), educational or training materials or other communications distributed or made generally available to some or all agents or employees, and registration statements, prospectuses, statements of additional information, shareholder reports, and proxy materials and any other material constituting sales literature or advertising under the FINRA rules, the 1940 Act, the 1933 Act, or rules thereunder. 14 ARTICLE V. FEES AND EXPENSES ----------------- 5.1 All expenses incident to performance by the Fund under this Agreement shall be paid by the Fund. The Fund shall see to it that all its shares are registered and authorized for issuance in accordance with applicable federal law and, if and to the extent deemed advisable by the Fund, in accordance with applicable state laws prior to their sale. The Fund shall bear the expenses for the cost of registration and qualification of the Fund's shares, preparation and filing of the Fund's Prospectus and registration statement, proxy material, information statements and reports, setting the Fund's Prospectus for printing, setting in type and printing the proxy material, information statements and reports to shareholders, and the preparation of all statements and notices required by any federal or state law. The Fund shall bear the cost of printing and distributing the Fund's Prospectus, periodic reports to shareholders, proxy materials and other shareholder communications to existing Contract owners. The Company shall see to it that each of the Contracts and the Accounts are registered and are authorized for issuance in accordance with applicable federal law. The Company shall bear the expenses for the cost of registration and qualification of the Contracts and the Accounts, preparation and filing of the applicable prospectus and registration statements, setting each Contract prospectus for printing, and the preparation of all statements and notices required by any federal or state law. In addition, the Company shall bear the cost of printing and distributing the Fund's Prospectus to be delivered to prospective Contract owners. 5.2 Except as otherwise provided in Section 5.1, the Company shall bear the expenses of printing and distributing the Fund's Prospectus to owners of Contracts issued by the Company and of distributing the Fund's proxy materials and reports to such Contract owners. ARTICLE VI. POTENTIAL CONFLICTS ------------------- 6.1 The Board will monitor the Fund for the existence of any material irreconcilable conflict among the interests of the Contract owners of all separate accounts investing in the Fund. An irreconcilable material conflict may arise for a variety of reasons, including: (a) an action by any state 15 insurance regulatory authority; (b) a change in applicable federal or state insurance, tax or securities laws or regulations, or a public ruling, private letter ruling, no-action or interpretive letter, or any similar action by insurance, tax, or securities regulatory authorities; (c) an administrative or judicial decision in any relevant proceeding; (d) the manner in which the investments of any Portfolio are being managed; (e) a difference in voting instructions given by variable annuity contract owners and variable life insurance contract owners; or (f) a decision by an insurer to disregard the voting instructions of Contract owners. The Board shall promptly inform the Company if they determine that an irreconcilable material conflict exists and the implications thereof. 6.2 The Company will report any potential or existing conflicts of which it is aware to the Board. The Company will assist the Board in carrying out its responsibilities under the Mixed and Shared Funding Exemptive Order, by providing the Board with all information reasonably necessary for the Board to consider any issues raised. This includes, but is not limited to, an obligation by the Company to inform the Board whenever Contract owners' voting instructions are disregarded. 6.3 If it is determined by a majority of the Board, or a majority of its disinterested trustees, that a material irreconcilable conflict exists, the Company and other Participating Insurance Companies shall, at their expense and to the extent reasonably practicable (as determined by a majority of the disinterested directors), take whatever steps are necessary to remedy or eliminate the irreconcilable material conflict, up to and including: (1) withdrawing the assets allocable to some or all of the separate accounts from the Fund or any Portfolio and reinvesting such assets in a different investment medium, including (but not limited to) another Portfolio of the Fund, or submitting the question whether such segregation should be implemented to a vote of all affected Contract owners and, as appropriate, segregating the assets of any appropriate group, (I.E., annuity Contract owners, life insurance Contract owners, or Contract owners of one or more Participating Insurance Companies) that votes in favor of such segregation, or offering to the affected contract owners the option of making such a change; and (2) establishing a new registered management investment company or managed separate account. 16 6.4 If a material irreconcilable conflict arises because of a decision by the Company to disregard Contract owners' voting instructions and that decision represents a minority position or would preclude a majority vote, the Company may be required, at the Fund's election, to withdraw the affected Account's investment in the Fund and terminate this Agreement with respect to such Account; provided, however that such withdrawal and termination shall be limited to the extent required by the foregoing material irreconcilable conflict as determined by a majority of the disinterested members of the Board. Any such withdrawal and termination must take place within six (6) months after the Fund gives written notice that this provision is being implemented, and until the end of that six-month period the Fund and the Distributor shall continue to accept and implement orders by the Company for the purchase (and redemption) of Fund shares. 6.5 If a material irreconcilable conflict arises because a particular state insurance regulator's decision applicable to the Company conflicts with the majority of other state regulators, then the Company will withdraw the affected Account's investment in the Fund and terminate this Agreement with respect to such Account within six (6) months after the Board informs the Company in writing that it has determined that such decision has created an irreconcilable material conflict; provided, however, that such withdrawal and termination shall be limited to the extent required by the foregoing material irreconcilable conflict as determined by a majority of the disinterested members of the Board. Until the end of the foregoing six-month period, the Fund and the Distributor shall continue to accept and implement orders by the Company for the purchase (and redemption) of Fund shares. 6.6 For purposes of Sections 6.3 through 6.6 of this Agreement, a majority of the disinterested members of the Board shall determine whether any proposed action adequately remedies any irreconcilable material conflict, but in no event will the Fund be required to establish a new funding medium for the Contracts. The Company shall not be required by Section 6.3 to establish a new funding medium for the Contracts if an offer to do so has been declined by vote of a majority of Contract owners materially adversely affected by the irreconcilable material conflict. In the event that the Board determines that any proposed action does not adequately remedy any irreconcilable material conflict, then 17 the Company will withdraw the Account's investment in the Fund and terminate this Agreement within six (6) months after the Board informs the Company in writing of the foregoing determination, provided, however, that such withdrawal and termination shall be limited to the extent required by any such material irreconcilable conflict as determined by a majority of the disinterested members of the Board. 6.7 If and to the extent that Rule 6e-2 and Rule 6e-3(T) are amended, or Rule 6e-3 is adopted, to provide exemptive relief from any provision of the Act or the rules promulgated thereunder with respect to mixed or shared funding (as defined in the Mixed and Shared Funding Exemptive Order) on terms and conditions materially different from those contained in the Mixed and Shared Funding Exemptive Order, then (a) the Fund and/or the Participating Insurance Company, as appropriate, shall take such steps as may be necessary to comply with Rules 6e-2 and 6e-3(T) as amended, and Rule 6e-3, as adopted, to the extent such rules are applicable; and (b) Sections 6.1, 6.2, 6.3, 6.4 and 6.5 of this Agreement shall continue in effect only to the extent that terms and conditions substantially identical to such Sections are contained in such Rule(s) as so amended or adopted. ARTICLE VII. INDEMNIFICATION --------------- 7.1 Indemnification by the Company ------------------------------ (a) The Company agrees to indemnify and hold harmless the Fund, the Adviser and the Distributor and each of its directors, trustees and officers and each person, if any, who controls the Fund within the meaning of Section 15 of the 1933 Act (collectively, the "Indemnified Parties" for purposes of this Section 7.1) against any and all losses, claims, damages, liabilities (including amounts paid in settlement with the written consent of the Company, which consent will not be unreasonably withheld) or litigation (including legal and other expenses), to which the Indemnified Parties may become subject under any statute, regulation, at common law or otherwise, insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof) or settlements are related to the sale or acquisition of the Fund's shares or the Contracts and: 18 (i) arise out of or are based upon any untrue statements or alleged untrue statements of any material fact contained in the registration statement or prospectus for the Contracts or contained in the Contracts or sales literature for the Contracts (or any amendment or supplement to any of the foregoing), or arise out of or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, provided that this agreement to indemnify shall not apply as to any Indemnified Party if such statement or omission or such alleged statement or omission was made in reliance upon and in conformity with information furnished to the Company by or on behalf of the Fund, the Adviser or the Distributor for use in the registration statement or prospectus for the Contracts or in the Contracts or sales literature (or any amendment or supplement) or otherwise for use in connection with the sale of the Contracts or Fund shares; or (ii) arise out of or as a result of statements or representations (other than statements or representations contained in the registration statement, Prospectus or sales literature of the Fund not supplied by the Company, or persons under their control) or wrongful conduct of the Company or persons under their control, with respect to the sale or distribution of the Contracts or Fund Shares; or (iii) arise out of any untrue statement or alleged untrue statement of a material fact contained in the registration statement, Prospectus, or sales literature of the Fund or any amendment thereof or supplement thereto or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading if such a statement or omission was made in reliance upon information furnished to the Fund by or on behalf of the Company; or (iv) arise as a result of any failure by the Company to provide the services and furnish the materials under the terms of this Agreement; or (v) arise out of or result from any material breach of any representation and/or warranty made by the Company in this Agreement or arise out of or result from any other material breach of this Agreement by the Company, as limited by and in accordance with the provisions of Sections 7.1(b) and 7.1(c) hereof. 19 (b) The Company shall not be liable under this indemnification provision with respect to any losses, claims, damages, liabilities or litigation incurred or assessed against an Indemnified Party as such may arise from such Indemnified Party's willful misfeasance, bad faith, or gross negligence in the performance of such Indemnified Party's duties or by reason of such Indemnified Party's reckless disregard of obligations or duties under this Agreement or to the Fund, whichever is applicable. (c) The Company shall not be liable under this indemnification provision with respect to any claim made against an Indemnified Party unless such Indemnified Party shall have notified the Company in writing within a reasonable time after the summons or other first legal process giving information of the nature of the claim shall have been served upon such Indemnified Party (or after such Indemnified Party shall have received notice of such service on any designated agent), but failure to notify the Company of any such claim shall not relieve the Company from any liability which it may have to the Indemnified Party against whom such action is brought otherwise than on account of this indemnification provision. In case any such action is brought against the Indemnified Parties, the Company shall be entitled to participate, at its own expense, in the defense of such action. The Company also shall be entitled to assume the defense thereof, with counsel satisfactory to the party named in the action. After notice from the Company to such party of the Company's election to assume the defense thereof, the Indemnified Party shall bear the fees and expenses of any additional counsel retained by it, and the Company will not be liable to such party under this Agreement for any legal or other expenses subsequently incurred by such party independently in connection with the defense thereof other than reasonable costs of investigation. (d) The Indemnified Parties will promptly notify the Company of the commencement of any litigation or proceedings against them in connection with the issuance or sale of the Fund Shares or the Contracts or the operations of the Fund. 7.2 Indemnification by the Fund, the Adviser and the Distributor ------------------------------------------------------------ (a) The Fund, the Adviser and the Distributor agree to indemnify and hold harmless the Company and its directors, employees and officers and each person, if any, who controls the Company 20 within the meaning of Section 15 of the 1933 Act (collectively, the "Indemnified Parties" for purposes of this Section 7.2) against any and all losses, claims, damages, liabilities (including amounts paid in settlement with the written consent of the Fund, which consent shall not be unreasonably withheld) or litigation (including legal and other expenses) to which the Indemnified Parties may become subject under any statute, at common law or otherwise, insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof) or settlements are related to the sale or acquisition of the Fund's shares or the Contracts and: (i) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the registration statement or Prospectus or sales literature of the Fund (or any amendment or supplement to any of the foregoing), or arise out of or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, provided that this agreement to indemnify shall not apply as to any Indemnified Party if such statement or omission or such alleged statement or omission was made in reliance upon and in conformity with information furnished to the Distributor, Adviser or Fund by or on behalf of the Company for use in the registration statement or Prospectus for the Fund or in sales literature (or any amendment or supplement) or otherwise for use in connection with the sale of the Contracts or Fund shares; or (ii) arise out of or as a result of statements or representations (other than statements or representations contained in the registration statement, prospectus or sales literature for the Contracts not supplied by the Distributor or Fund or persons under its control) or wrongful conduct of the Fund, the Adviser or the Distributor or persons under their control, with respect to the sale or distribution of the Contracts or Fund shares; or (iii) arise out of any untrue statement or alleged untrue statement of a material fact contained in a registration statement, prospectus or sales literature covering the Contracts, or any amendment thereof or supplement thereto, or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statement or statements therein not misleading, 21 if such statement or omission was made in reliance upon information furnished to the Company by or on behalf of the Fund; or (iv) arise as a result of any failure by the Fund, the Adviser or Distributor to provide the services and furnish the materials under the terms of this Agreement (including a failure, whether unintentional or in good faith or otherwise, to comply with the diversification requirements specified in Article II of this Agreement or the failure of the Fund to qualify under subchapter M as a Regulated Investment Company); or (v) arise out of or result from any material breach of any representation and/or warranty made by the Fund, the Adviser or the Distributor in this Agreement or arise out of or result from any other material breach of this Agreement by the Fund, the Adviser or the Distributor, as limited by and in accordance with the provisions of Sections 7.2(b) and 7.2(c) hereof. (b) The Fund, the Adviser or the Distributor shall not be liable under this indemnification provision with respect to any losses, claims, damages, liabilities or litigation to which an Indemnified Party would otherwise be subject by reason of such Indemnified Party's willful misfeasance, bad faith, or gross negligence in the performance of such Indemnified Party's duties or by reason of such Indemnified Party's reckless disregard of obligations and duties under this Agreement or to the Company or Account, whichever is applicable. (c) The Fund, the Adviser and the Distributor shall not be liable under this indemnification provision with respect to any claim made against an Indemnified Party unless such Indemnified Party shall have notified the Fund, the Adviser and the Distributor in writing within a reasonable time after the summons or other first legal process giving information of the nature of the claim shall have been served upon such Indemnified Party (or after such Indemnified Party shall have received notice of such service on any designated agent), but failure to notify the Fund, the Adviser and the Distributor of any such claim shall not relieve the Fund, the Adviser and the Distributor from any liability which they may have to the Indemnified Party against whom such action is brought otherwise than on account of this indemnification provision. In case any such action is brought against the Indemnified 22 Parties, the Fund, the Adviser and the Distributor will be entitled to participate, at their own expense, in the defense thereof. The Fund, the Adviser and the Distributor also shall be entitled to assume the defense thereof with counsel satisfactory to the party named in the action. After notice from the Fund, the Adviser and the Distributor to such party of the Fund's, the Adviser's and the Distributor's election to assume the defense thereof, the Indemnified Party shall bear the fees and expenses of any additional counsel retained by it, and the Fund, the Adviser and the Distributor will not be liable to such party under this Agreement for any legal or other expenses subsequently incurred by such party independently in connection with the defense thereof other than reasonable costs of investigation. (d) The Company agrees promptly to notify the Fund, the Adviser and the Distributor of the commencement of any litigation or proceedings against it or any of its officers or directors in connection with the issuance or sale of the Contracts or the operation of the Account. ARTICLE VIII. APPLICABLE LAW -------------- 8.1 This Agreement shall be construed and the provisions hereof interpreted under and in accordance with the laws of Delaware. 8.2 This Agreement shall be subject to the provisions of the federal securities laws, and the rules, regulations and rulings thereunder, including such exemptions from those statutes, rules and regulations as the SEC may grant (including, but not limited to, the Mixed and Shared Funding Exemptive Order) and the terms hereof shall be interpreted and construed in accordance therewith. ARTICLE IX. TERMINATION ----------- 9.1 This Agreement shall terminate: (a) at the option of any party upon six months advance written notice to the other parties unless otherwise agreed in a separate written agreement among the parties; or (b) at the option of the Company if shares of the Portfolios delineated in Schedule B are not reasonably available to meet the requirements of the Contracts as determined by the Company; or 23 (c) at the option of the Fund upon institution of formal proceedings against the Company by the FINRA, the SEC, the insurance commission of any state or any other regulatory body regarding the Company's duties under this Agreement that would have a material adverse impact on the sale of the Contracts, the administration of the Contracts, the operation of an Account, or the purchase of Fund shares; or (d) at the option of the Company upon institution of formal proceedings against the Fund by the FINRA, the SEC, or any state securities or insurance department or any other regulatory body that would have a material adverse impact on the Fund; or (e) at the option of the Company upon receipt of any necessary regulatory approvals and/or the vote of the Contract owners having an interest in the Account (or any subaccount) to substitute the shares of another investment company for the corresponding Portfolio shares of the Fund in accordance with the terms of the Contracts for which those Portfolio shares had been selected to serve as the underlying investment media. The Company will give thirty (30) days' prior written notice to the Fund of the date of any proposed vote or other action taken to replace the Fund's shares; or (f) at the option of the Company or the Fund upon a determination by a majority of the Fund Board, or a majority of the disinterested Fund Board members, that an irreconcilable material conflict exists among the interests of (i) all Contract owners of Contracts of all separate accounts, or (ii) the interests of the Participating Insurance Company investing in the Fund as delineated in Article VI of this Agreement; or (g) at the option of the Company if the Fund ceases to qualify as a Regulated Investment Company under Subchapter M of the Code, or under any successor or similar provision, or if the Company reasonably believes that the Fund may fail to so qualify; or (h) at the option of the Company if the Fund fails to meet the diversification requirements specified in Article II hereof or the Company has a reasonable expectation that the Fund will fail to meet these diversification requirements in the future; or 24 (i) at the option of any party to this Agreement, upon another party's material breach of any provision of this Agreement; or (j) at the option of the Company, if the Company determines in its sole judgment exercised in good faith, that either the Fund, the Adviser or the Distributor has suffered a material adverse change in its business, operations or financial condition since the date of this Agreement or is the subject of material adverse publicity which is likely to have a material adverse impact upon the business and operations of the Company; or (k) at the option of the Fund, the Adviser or the Distributor, if the Fund, the Adviser or the Distributor respectively, shall determine in its sole judgment exercised in good faith, that the Company has suffered a material adverse change in its business, operations or financial condition since the date of this Agreement or is the subject of material adverse publicity which is likely to have a material adverse impact upon the business and operations of the Fund, the Adviser or the Distributor, or (l) at the option of the Fund in the event any of the Contracts are not issued or sold in accordance with applicable federal and/or state law. Termination shall be effective immediately upon such occurrence without notice. 9.2 Notice Requirement ------------------ (a) In the event that any termination of this Agreement is based upon the provisions of Article VI, such prior written notice shall be given in advance of the effective date of termination as required by such provisions. (b) In the event that any termination of this Agreement is based upon the provisions of Sections 9.1(b) - (d) or 9.1(g) - (i), prompt written notice of the election to terminate this Agreement for cause shall be furnished by the party terminating the Agreement to the non-terminating parties, with said termination to be effective upon receipt of such notice by the non-terminating parties. (c) In the event that any termination of this Agreement is based upon the provisions of Sections 9.1(i) or 9.1(k), prior written notice of the election to terminate this Agreement for cause shall be furnished by the party terminating this Agreement to the non-terminating parties. Such prior written 25 notice shall be given by the party terminating this Agreement to the non-terminating parties at least thirty (30) days before the effective date of termination. 9.3 No Reason Required for Termination. It is understood and agreed that ---------------------------------- the right to terminate this Agreement pursuant to Section 9.1 (a) may be exercised for any reason or for no reason. 9.4 Effect of Termination --------------------- (a) Notwithstanding any termination pursuant to Section 9.1 of this Agreement, the Fund may, at its option, or in the event of termination of this Agreement by the Fund, the Adviser or the Distributor pursuant to Section 9.1 (a) of this Agreement, the Company may require the Fund, the Adviser and the Distributor to continue to make available additional shares of the Fund for so long after the termination of this Agreement as the Fund or the Company, if the Company so requires, desires pursuant to the terms and conditions of this Agreement as provided in paragraph (b) below for all Contracts in effect on the effective date of termination of this Agreement (hereinafter referred to as "Existing Contracts"). Specifically, without limitation, if the Fund so elects to make available additional shares of the Fund, the owners of the Existing Contracts shall be permitted to reallocate investments in the Fund, redeem investments in the Fund and/or invest in the Fund upon the making of additional purchase payments under the Existing Contracts. The parties agree that this Section 9.4 shall not apply to any terminations under Article VI and the effect of such Article VI terminations shall be governed by Article VI of this Agreement. (b) In the event of a termination pursuant to Section 9.1 of this Agreement, the Fund shall promptly notify the Company whether the Fund will continue to make available shares of the Fund after such termination, except that, with respect to a termination by the Fund, the Adviser or the Distributor pursuant to Section 9.1 (a) of this Agreement, the Company shall promptly notify the Fund whether it wishes the Fund to continue to make available additional shares of the Fund. If shares of the Fund continue to be made available after such termination, the provisions of this Agreement shall remain in effect except for Section 9.1(a) and thereafter the Fund or the Company may terminate the Agreement, 26 as so continued pursuant to this Section 9.4 upon written notice to the other party, such notice to be for a period that is reasonable under the circumstances. (c) In the event of termination purusant to Section 9.1(l), or such laws preclude the use of such shares as the underlying investment medium for the Contracts issued or to be issued by the Company, and if through no fault of the Company, the need for substitution of Fund shares for the shares of another "registered investment company" arises out of this event, the expenses of obtaining such an order shall be reimbursed by the Fund. The Fund, the Adviser and the Distributor shall cooperate fully with the Company in connection with such application. 9.5 Surviving Provisions. Each party's obligations under Section 2.11 and -------------------- Article VII will survive and will not be affected by any termination of this Agreement. In addition, with respect to Existing Contracts, all provisions of this Agreement also will survive and not be affected by any termination of this Agreement. ARTICLE X. NOTICES ------- Any notice shall be sufficiently given when sent by registered or certified mail to the other party at the address of such party set forth below or at such other address as such party may from time to time specify in writing to the other party. If to the Fund: 615 East Michigan Street, 4th floor Milwaukee, Wisconsin 53202 If to the Company: MetLife One Financial Center, 20th Floor Boston, MA 02111 Attn: Law Department If to the Distributor: Quasar Distributors, LLC 615 East Michigan Street Milwaukee, Wisconsin 53202 27 If to the Adviser: 1919 Investment Counsel, LLC 100 International Drive, 5th Floor Baltimore, MD 21202 ARTICLE XI. MISCELLANEOUS ------------- 11.1 The captions in this Agreement are included for convenience of reference only and in no way define or delineate any of the provisions hereof or otherwise affect their construction or effect. 11.2 This Agreement may be executed simultaneously in two or more counterparts, each of which taken together shall constitute one and the same instrument. 11.3 If any provision of this Agreement shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of the Agreement shall not be affected thereby. 11.4 Each party hereto shall cooperate with each other party and all appropriate governmental authorities (including without limitation the SEC, the FINRA and state insurance regulators) and shall permit such authorities reasonable access to its books and records in connection with any investigation or inquiry relating to this Agreement or the transactions contemplated hereby. 11.5 The rights, remedies and obligations contained in this Agreement are cumulative and are in addition to any and all rights, remedies and obligations, at law or in equity, which the parties hereto are entitled to under state and federal laws. 11.6 Except as provided in Sections 12.4 and 12.7 of this Agreement, each party will keep confidential any information acquired as a result of this Agreement regarding the business and affairs of the other parties to this Agreement and their affiliates. 11.7 Subject to the requirements of legal process and regulatory authority, each party hereto shall treat as confidential the names and address of owners of the Contracts and all information reasonably identified as confidential in writing by any other party hereto and, except as permitted by this Agreement in order to carry out the specified purposes specified herein, shall not disclose, disseminate or utilize such 28 names and addresses and other confidential information until such time as it may come into public domain without express written consent of the affected party. In addition, each party shall adopt policies and procedures that address administrative, technical and physical safeguards for the protection of such customer records. 11.8 Each party will comply with all applicable laws and regulations aimed at preventing, detecting, and reporting money laundering and suspicious transactions. To the extent required by applicable regulation and generally accepted industry practices, each party shall take all necessary and appropriate steps to: (i) obtain, verify, and retain information with regard to contract owner identification, and (ii) maintain records of all contract owner transactions. The Company will (but only to the extent consistent with applicable law) take all steps necessary and appropriate to provide the Fund with any requested information about Contract owners and their accounts in the event that the Fund shall request such information due to an inquiry or investigation by any law enforcement, regulatory, or administrative authority. To the extent permitted by applicable law and regulations, the Company will notify the Fund of any concerns that the Company may have in connection with any Contract owners in the context of relevant anti-money laundering laws or regulations. 11.9 The Fund agrees to consult with the Company concerning whether any Portfolio of the Fund qualifies to provide a foreign tax credit pursuant to Section 853 of the Code. 11.10 The Fund, Distributor and Advisor will use reasonable best efforts to prevent the Fund from engaging, directly or indirectly, in a transaction that, as of the date the Fund enters into a binding contract to engage in such transaction, is a "listed transaction" as defined in Treas. Regs. Section 1.6011-4(b)(2) or successor provision (a "Listed Transaction"). If the Fund Distributor or Advisor reasonably determines that the Fund has engaged in a Listed Transaction, it will (i) provide the Company with prompt notice thereof and (ii) with respect to any such transaction, the Fund will provide the Company, upon the Company's request, (A) with all information relating to such Listed Transaction which the Company would need in order to comply with its disclosure obligations under the Code and applicable regulations 29 and state laws. In addition, the Fund will promptly notify the Company if the Fund must file (or has filed) Form 8886 ("Reportable Transaction Disclosure Statement"), or successor form. IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed in its name and on its behalf by its duly authorized representative and its seal to be hereunder affixed hereto as of the date specified below. Company: METROPOLITAN LIFE INSURANCE COMPANY By its authorized officer: By: /s/ Alan C. Leland, Jr. ---------------------------------- Name: Alan C. Leland, Jr. Title: Vice President Date: 11/11/14 Trust on behalf of Fund(s) listed on Schedule B: TRUST FOR ADVISED PORTFOLIOS By its authorized officer: By: /s/ Christopher E. Kashmerick ---------------------------------- Name: Christopher E. Kashmerick Title: President Date: 12/30/14 Adviser: 1919 INVESTMENT COUNSEL, LLC By its authorized officer: By: /s/ Brian Callaghan ---------------------------------- Name: Brian Callaghan TITLE: Director of Operations Date: 12/22/14 30 Distributor: QUASAR FUND SERVICES By its authorized officer: By: /s/ James R. Schoenike ---------------------------------- Name: James R. Schoenike Title: President Date: 11/17/14 31 SCHEDULE A ---------- SEPARATE ACCOUNTS AND ASSOCIATED PRODUCTS -----------------------------------------
SEPARATE ACCOUNTS PRODUCTS/CONTRACTS --------------------------------------- ------------------------------- VARIABLE ANNUITY SEPARATE ACCOUNT Metropolitan Life Separate Account E Gold Track Select VARIABLE LIFE SEPARATE ACCOUNTS Metropolitan Life Separate Account DCVL Private Placement Variable Life Metropolitan Life Separate Account UL MetFlex
32 SCHEDULE B ---------- PORTFOLIOS AVAILABLE UNDER THE CONTRACTS ----------------------------------------
TRUST NAME CURRENT FUND NAME / NEW FUND NAME CUSIP/CLASS ---------------------------- ----------------------------------------------- ----------- Trust for Advised Portfolios 1919 Variable Socially Responsive Balanced Fund 89832P713
33 EX-99.N 4 d830948dex99n.txt CONSENT OF INDEPENDENT REGISTERED PUBLIC CONSENT OF INDEPENDENT REGISTERED PUBLIC Exhibit (n) CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We consent to the use in this Post-Effective Amendment No. 28/Amendment No. 72 to Registration Statement File Nos. 033-57320/811-06025 on Form N-6 of our report dated March 27, 2015, relating to the financial statements and financial highlights comprising each of the Investment Divisions of Metropolitan Life Separate Account UL, and our report dated March 27, 2015, relating to the consolidated financial statements and financial statement schedules of Metropolitan Life Insurance Company and subsidiaries, both appearing in the Statement of Additional Information, which is part of such Registration Statement, and to the reference to us under the heading "Independent Registered Public Accounting Firm" also in such Statement of Additional Information. /s/ DELOITTE & TOUCHE LLP Tampa, Florida April 15, 2015 EX-99.R 5 d830948dex99r.txt POWERS OF ATTORNEY - METROPOLITAN LIFE POWERS OF ATTORNEY - METROPOLITAN LIFE METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY Steven A. Kandarian Chairman of the Board, President and Chief Executive Officer and a Director KNOW ALL MEN BY THESE PRESENTS, that I, Steven A. Kandarian, Chairman of the Board, President and Chief Executive Officer and a Director of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 25th day of September, 2014. /s/ Steven A. Kandarian -------------------------- Steven A. Kandarian METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY Cheryl W. Grise Director KNOW ALL MEN BY THESE PRESENTS, that I, Cheryl W. Grise, a Director of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of September, 2014. /s/ Cheryl W. Grise -------------------------- Cheryl W. Grise METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY Carlos M. Gutierrez Director KNOW ALL MEN BY THESE PRESENTS, that I, Carlos M. Gutierrez, a Director of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of September, 2014. /s/ Carlos M. Gutierrez -------------------------- Carlos M. Gutierrez METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY R. Glenn Hubbard Director KNOW ALL MEN BY THESE PRESENTS, that I, R. Glenn Hubbard, a Director of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of September, 2014. /s/ R. Glenn Hubbard -------------------------- R. Glenn Hubbard METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY John M. Keane Director KNOW ALL MEN BY THESE PRESENTS, that I, John M. Keane, a Director of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of September, 2014. /s/ John M. Keane -------------------------- John M. Keane METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY Alfred F. Kelly, Jr. Director KNOW ALL MEN BY THESE PRESENTS, that I, Alfred F. Kelly, Jr., a Director of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of September, 2014. /s/ Alfred F. Kelly, Jr. -------------------------- Alfred F. Kelly, Jr. METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY Edward J. Kelly, III Director KNOW ALL MEN BY THESE PRESENTS, that I, Edward J. Kelly, III, a Director of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Michele H. Abate, Christine M. DeBiase, Andrew Gangolf, and John M. Richards, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C, Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D, Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 31st day of March, 2015. /s/ Edward J. Kelly, III -------------------------- Edward J. Kelly, III METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY William E. Kennard Director KNOW ALL MEN BY THESE PRESENTS, that I, William E. Kennard, a Director of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of September, 2014. /s/ William E. Kennard -------------------------- William E. Kennard METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY James M. Kilts Director KNOW ALL MEN BY THESE PRESENTS, that I, James M. Kilts, a Director of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of September, 2014. /s/ James M. Kilts -------------------------- James M. Kilts METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY Catherine R. Kinney Director KNOW ALL MEN BY THESE PRESENTS, that I, Catherine R. Kinney, a Director of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of September, 2014. /s/ Catherine R. Kinney -------------------------- Catherine R. Kinney METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY Denise M. Morrison Director KNOW ALL MEN BY THESE PRESENTS, that I, Denise M. Morrison, a Director of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of September, 2014. /s/ Denise M. Morrison -------------------------- Denise M. Morrison METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY Kenton J. Sicchitano Director KNOW ALL MEN BY THESE PRESENTS, that I, Kenton J. Sicchitano, a Director of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of September, 2014. /s/ Kenton J. Sicchitano -------------------------- Kenton J. Sicchitano METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY Lulu C. Wang Director KNOW ALL MEN BY THESE PRESENTS, that I, Lulu C. Wang, a Director of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of September, 2014. /s/ Lulu C. Wang -------------------------- Lulu C. Wang METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY John C.R. Hele Executive Vice President and Chief Financial Officer KNOW ALL MEN BY THESE PRESENTS, that I, John C.R. Hele, Executive Vice President and Chief Financial Officer of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 29th day of September, 2014. /s/ John C.R. Hele -------------------------- John C.R. Hele METROPOLITAN LIFE INSURANCE COMPANY POWER OF ATTORNEY Peter M. Carlson Executive Vice President and Chief Accounting Officer KNOW ALL MEN BY THESE PRESENTS, that I, Peter M. Carlson, Executive Vice President and Chief Accounting Officer of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Paul G. Cellupica, Andrew Gangolf, Michele H. Abate, John M. Richards, Trina Sandoval and John B. Towers, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: o Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File No. 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333-176654 Preference Premier Variable Annuity; File No. 333-190296 Gold Track Select; File No. 333-198314 MetLife Accumulation Annuity; File No. 333-198448 MetLife Investment Portfolio Architect/SM (Standard Version and C Share Option); and Variable Annuity File No. 333-_________) o Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL; and Variable Life File No. 333-_________) o Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) o New England Life Retirement Investment Account File No. 333-11133 Preference o New England Variable Annuity Fund I File No. 333-11137 o Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus o Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product and Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II o Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D o Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL o Security Equity Separate Account 26 File No. 333-110183 Variable Annuity o Security Equity Separate Account 27 File No. 333-110184 Variable Annuity o Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 1st day of October, 2014. /s/ Peter M. Carlson -------------------------- Peter M. Carlson