0001193125-16-541528.txt : 20160414 0001193125-16-541528.hdr.sgml : 20160414 20160414164458 ACCESSION NUMBER: 0001193125-16-541528 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 7 FILED AS OF DATE: 20160414 DATE AS OF CHANGE: 20160414 EFFECTIVENESS DATE: 20160501 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: 333-147508 FILM NUMBER: 161572200 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: 161572201 BUSINESS ADDRESS: STREET 1: METROPOLITAN LIFE INSURANCE COMPANY STREET 2: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2125788717 MAIL ADDRESS: STREET 1: METROPOLITAN LIFE INSURANCE COMPANY STREET 2: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 FORMER COMPANY: FORMER CONFORMED NAME: METROPOLITAN LIFE SEPARATE ACCOUNT UL DATE OF NAME CHANGE: 19920703 0000858997 S000004219 Metropolitan Life Separate Account UL C000058203 Equity Advantage VUL (MetLife) 485BPOS 1 d22797d485bpos.txt EQUITY ADVANTAGE VUL AS FILED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION ON APRIL 14, 2016 REGISTRATION NOS. 333-147508 811-06025 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-6 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ] PRE-EFFECTIVE AMENDMENT NO. [ ] POST-EFFECTIVE AMENDMENT NO. 8 [X] REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [ ] AMENDMENT NO. 76 [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, 2016 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, 2016 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: Flexible Premium Variable Universal Life Insurance Policies. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- EQUITY ADVANTAGE VUL Flexible Premium Variable Life Insurance Policies Issued by Metropolitan Life Separate Account UL of Metropolitan Life Insurance Company This prospectus offers individual flexible premium variable life insurance policies (the "Policies") issued by Metropolitan Life Insurance Company ("MetLife"). You allocate net premiums among the Investment Divisions of Metropolitan Life Separate Account UL (the "Separate Account"). Each Investment Division of the Separate Account invests in shares of one of the following "Portfolios": AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 2 American Funds Bond Fund American Funds Global Small Capitalization Fund American Funds Growth Fund American Funds Growth-Income Fund FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2 Franklin Income VIP Fund Franklin Mutual Shares VIP Fund MET INVESTORS SERIES TRUST AB Global Dynamic Allocation Portfolio -- Class B Allianz Global Investors Dynamic Multi-Asset Plus Portfolio -- Class B American Funds(R) Balanced Allocation Portfolio -- Class B American Funds(R) Growth Allocation Portfolio -- Class B American Funds(R) Moderate Allocation Portfolio -- Class B AQR Global Risk Balanced Portfolio -- Class B BlackRock Global Tactical Strategies Portfolio -- Class B Clarion Global Real Estate Portfolio -- Class A ClearBridge Aggressive Growth Portfolio -- Class A Harris Oakmark International Portfolio -- Class A Invesco Balanced-Risk Allocation Portfolio -- Class B Invesco Mid Cap Value Portfolio -- Class A Invesco Small Cap Growth Portfolio -- Class A JPMorgan Global Active Allocation Portfolio -- Class B JPMorgan Small Cap Value Portfolio -- Class A Loomis Sayles Global Markets Portfolio -- Class A Met/Aberdeen Emerging Markets Equity Portfolio -- Class A Met/Templeton International Bond Portfolio -- Class A Met/Wellington Large Cap Research Portfolio -- Class A MetLife Asset Allocation 100 Portfolio -- Class A MetLife Balanced Plus Portfolio -- Class B MetLife Multi-Index Targeted Risk Portfolio -- Class B MFS(R) Research International Portfolio -- Class A Morgan Stanley Mid Cap Growth Portfolio -- Class A Oppenheimer Global Equity Portfolio -- Class A PanAgora Global Diversified Risk Portfolio -- Class B PIMCO Inflation Protected Bond Portfolio -- Class A PIMCO Total Return Portfolio -- Class A Pyramis(R) Managed Risk Portfolio -- Class B Schroders Global Multi-Asset Portfolio -- Class B SSGA Growth and Income ETF Portfolio -- Class A SSGA Growth ETF Portfolio -- Class A T. Rowe Price Mid Cap Growth Portfolio -- Class A METROPOLITAN SERIES FUND -- CLASS A Baillie Gifford International Stock Portfolio Barclays Aggregate Bond Index Portfolio BlackRock Bond Income Portfolio BlackRock Capital Appreciation Portfolio BlackRock Large Cap Value Portfolio Frontier Mid Cap Growth Portfolio Jennison Growth Portfolio Loomis Sayles Small Cap Core Portfolio Loomis Sayles Small Cap Growth Portfolio Met/Artisan Mid Cap Value Portfolio Met/Wellington Balanced Portfolio Met/Wellington Core Equity Opportunities Portfolio MetLife Asset Allocation 20 Portfolio MetLife Asset Allocation 40 Portfolio MetLife Asset Allocation 60 Portfolio MetLife Asset Allocation 80 Portfolio MetLife Mid Cap Stock Index Portfolio MetLife Stock Index Portfolio MFS(R) Total Return Portfolio MFS(R) Value Portfolio MSCI EAFE(R) Index Portfolio Neuberger Berman Genesis Portfolio Russell 2000(R) Index Portfolio T. Rowe Price Large Cap Growth Portfolio T. Rowe Price Small Cap Growth Portfolio Van Eck Global Natural Resources Portfolio Western Asset Management Strategic Bond Opportunities Portfolio Western Asset Management U.S. Government Portfolio You may also allocate net premiums to our Fixed Account. Special limits may apply to Fixed Account transfers and withdrawals. You receive Fixed Account performance until 20 days after we apply your initial premium payment to the Policy. Thereafter, we invest the Policy's cash value according to your instructions. NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE POLICIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. WE DO NOT GUARANTEE HOW ANY OF THE INVESTMENT DIVISIONS OR PORTFOLIOS WILL PERFORM. THE POLICIES AND THE PORTFOLIOS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY, ANY FINANCIAL INSTITUTION AND ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY. MAY 1, 2016 TABLE OF CONTENTS
PAGE ----- SUMMARY OF BENEFITS AND RISKS............................................... A-4 Benefits of the Policy................................................... A-4 Risks of the Policy...................................................... A-5 Risks of the Portfolios.................................................. A-7 FEE TABLES.................................................................. A-7 Transaction Fees......................................................... A-7 Periodic Charges other than Portfolio Operating Expenses................. A-8 Annual Portfolio Operating Expenses...................................... A-11 THE COMPANY, THE SEPARATE ACCOUNT AND THE PORTFOLIOS........................ A-16 The Company.............................................................. A-16 The Separate Account..................................................... A-16 The Portfolios........................................................... A-16 Share Classes of the Portfolios.......................................... A-21 Certain Payments We Receive with Regard to the Portfolios................ A-22 Selection of the Portfolios.............................................. A-22 Voting Rights............................................................ A-23 Rights Reserved by MetLife............................................... A-23 THE POLICIES................................................................ A-23 Purchasing a Policy...................................................... A-23 Replacing Existing Insurance............................................. A-24 Policy Owner and Beneficiary............................................. A-24 24 Month Conversion Right................................................ A-24 Exchange Right........................................................... A-25 PREMIUMS.................................................................... A-25 Flexible Premiums........................................................ A-25 Amount Provided for Investment under the Policy.......................... A-25 Right to Examine Policy.................................................. A-26 Allocation of Net Premiums............................................... A-26 RECEIPT OF COMMUNICATIONS AND PAYMENTS AT METLIFE'S DESIGNATED OFFICE....... A-26 Cybersecurity............................................................ A-27 Payment of Proceeds...................................................... A-28 CASH VALUE.................................................................. A-29 DEATH BENEFITS.............................................................. A-29 Death Proceeds Payable................................................... A-30 Change in Death Benefit Option........................................... A-31 Increase in Face Amount.................................................. A-31 Reduction in Face Amount................................................. A-31 SURRENDERS AND PARTIAL WITHDRAWALS.......................................... A-32 Surrender................................................................ A-32 Partial Withdrawal....................................................... A-32 TRANSFERS................................................................... A-34 Transfer Option.......................................................... A-34 AUTOMATED INVESTMENT STRATEGIES............................................. A-36 LOANS....................................................................... A-37
A-2
PAGE ----- LAPSE AND REINSTATEMENT................................................................... A-38 Lapse.................................................................................. A-38 Reinstatement.......................................................................... A-39 ADDITIONAL BENEFITS BY RIDER.............................................................. A-39 THE FIXED ACCOUNT......................................................................... A-40 General Description.................................................................... A-40 Values and Benefits.................................................................... A-40 Policy Transactions.................................................................... A-41 CHARGES................................................................................... A-41 Deductions from Premiums............................................................... A-42 Surrender Charge....................................................................... A-42 Partial Withdrawal Charge.............................................................. A-43 Transfer Charge........................................................................ A-43 Illustration of Benefits Charge........................................................ A-44 Monthly Deduction from Cash Value...................................................... A-44 Loan Interest Spread................................................................... A-46 Charges Against the Portfolios and the Investment Divisions of the Separate Account.... A-46 TAX CONSIDERATIONS........................................................................ A-46 Introduction........................................................................... A-46 Tax Status of the Policy............................................................... A-47 Tax Treatment of Policy Benefits....................................................... A-47 MetLife's Income Taxes................................................................. A-51 DISTRIBUTION OF THE POLICIES.............................................................. A-51 LEGAL PROCEEDINGS......................................................................... A-53 RESTRICTIONS ON FINANCIAL TRANSACTIONS.................................................... A-53 FINANCIAL STATEMENTS...................................................................... A-54 GLOSSARY.................................................................................. A-55 APPENDIX A: GUIDELINE PREMIUM TEST AND CASH VALUE ACCUMULATION TEST....................... A-56 APPENDIX B: ILLUSTRATIONS OF DEATH BENEFITS, CASH VALUES AND CASH SURRENDER VALUES........ A-57
A-3 SUMMARY OF BENEFITS AND RISKS This summary describes the Policy's important benefits and risks. The sections in the prospectus following this summary discuss the Policy in more detail. The Glossary at the end of the prospectus defines certain words and phrases used in this prospectus. BENEFITS OF THE POLICY ---------------------- DEATH PROCEEDS. The Policy is designed to provide insurance protection. Upon receipt of satisfactory proof of the death of the insured, we pay death proceeds to the beneficiary of the Policy. Death proceeds generally equal the death benefit on the date of the insured's death plus any additional insurance provided by rider, less any outstanding loan and accrued loan interest. CHOICE OF DEATH BENEFIT OPTION. You may choose among three death benefit options: -- a level death benefit that equals the Policy's face amount, -- a variable death benefit that equals the Policy's face amount plus the Policy's cash value, and -- a combination variable and level death benefit that equals the Policy's face amount plus the Policy's cash value until the insured attains age 65 and equals the Policy's face amount thereafter. The death benefit under any option could increase to satisfy Federal tax law requirements if the cash value reaches certain levels. After the first Policy year you may change your death benefit option, subject to our underwriting rules. A change in death benefit option may have tax consequences. PREMIUM FLEXIBILITY. You can make premium payments based on a schedule you determine, subject to some limits. You may change your payment schedule at any time or make a payment that does not correspond to your schedule. We can, however, limit or prohibit payments in some situations. RIGHT TO EXAMINE THE POLICY. During the first ten days following your receipt of the Policy, you have the right to return the Policy to us. If you exercise this right, we will refund the premiums you paid. INVESTMENT OPTIONS. You can allocate your net premiums and cash value among your choice of sixty-eight Investment Divisions in the Separate Account, each of which corresponds to a mutual fund portfolio, or "Portfolio." The Portfolios available under the Policy include several common stock funds, including funds which invest primarily in foreign securities, as well as bond funds, balanced funds, asset allocation funds and funds that invest in exchange-traded funds. You may also allocate premiums and cash value to our Fixed Account which provides guarantees of interest and principal. You may change your allocation of future premiums at any time. PARTIAL WITHDRAWALS. You may withdraw cash surrender value from your Policy at any time after the first Policy anniversary. The minimum amount you may withdraw is $500. We reserve the right to limit partial withdrawals to no more than 90% of the Policy's cash surrender value. We may limit the number of partial withdrawals to 12 per Policy year or impose a processing charge of $25 for each partial withdrawal. Partial withdrawals may have tax consequences. TRANSFERS AND AUTOMATED INVESTMENT STRATEGIES. You may transfer your Policy's cash value among the Investment Divisions or between the Investment Divisions and the Fixed Account. The minimum amount you may transfer is $50, or if less, the total amount in the Investment Division or the Fixed Account. We may limit the number of transfers among the Investment Divisions and the Fixed Account to no more than four per Policy year. We may impose a processing charge of $25 for each transfer. We may also impose restrictions on frequent transfers. (See "Transfers" for additional information on such restrictions.) We offer five automated investment strategies that allow you to periodically transfer or reallocate your cash value among the Investment Divisions and the Fixed Account. (See "Automated Investment Strategies.") LOANS. You may borrow from the cash value of your Policy. The minimum amount you may borrow is $500. The maximum amount you may borrow is an amount equal to the Policy's cash value net of the Surrender Charge, reduced by Monthly Deductions and interest charges through the next Policy anniversary, increased by interest credits through the next Policy anniversary, less any existing Policy loans. We charge you a maximum annual interest rate of 4.0% for the first ten Policy years and 3.0% thereafter. We credit interest at an annual rate of at least 3.0% on amounts we hold as collateral to support your loan. Loans may have tax consequences. (See "Loans" for additional information.) A-4 SURRENDERS. You may surrender the Policy for its cash surrender value at any time. Cash surrender value equals the cash value reduced by any Policy loan and accrued loan interest and by any applicable Surrender Charge. A surrender may have tax consequences. TAX BENEFITS. We anticipate that the Policy should be deemed to be a life insurance contract under Federal tax law. Accordingly, undistributed increases in cash value should not be taxable to you. As long as your Policy is not a modified endowment contract, partial withdrawals should be non-taxable until you have withdrawn an amount equal to your total investment in the Policy. However, different rules apply in the first fifteen Policy years, when distributions accompanied by benefit reductions may be taxable prior to a complete withdrawal of your investment in the Policy. Always confirm in advance the tax consequences of a particular withdrawal with a qualified tax adviser. Death benefits paid to your beneficiary should generally be free of Federal income tax. Death benefits may be subject to estate taxes. Under current Federal income tax law, the taxable portion of distributions from variable life policies is taxed at ordinary income tax rates and does not qualify for the reduced tax rate applicable to long-term capital gains and dividends. CONVERSION RIGHT. During the first two Policy years, you may convert the Policy to fixed benefit coverage by exchanging the Policy for a fixed benefit life insurance policy that we agree to, and that is issued by us or an affiliate that we name. We will make the exchange without evidence of insurability. SUPPLEMENTAL BENEFITS AND RIDERS. We offer a variety of riders that provide supplemental benefits under the Policy. We generally deduct any monthly charges for these riders as part of the Monthly Deduction. Your registered representative can help you determine whether any of these riders are suitable for you. PERSONALIZED ILLUSTRATIONS. You will receive personalized illustrations in connection with the purchase of this Policy that reflect your own particular circumstances. These hypothetical illustrations may help you to understand the long-term effects of different levels of investment performance, the possibility of lapse, and the charges and deductions under the Policy. They will also help you to compare this Policy to other life insurance policies. The personalized illustrations are based on hypothetical rates of return and are not a representation or guarantee of investment returns or cash value. RISKS OF THE POLICY ------------------- INVESTMENT RISK. If you invest your Policy's cash value in one or more of the Investment Divisions, then you will be subject to the risk that investment performance will be unfavorable and that your cash value will decrease. In addition, we deduct Policy fees and charges from your Policy's cash value, which can significantly reduce your Policy's cash value. During times of poor investment performance, this deduction will have an even greater impact on your Policy's cash value. It is possible to lose your full investment and your Policy could lapse without value, unless you pay additional premium. If you allocate cash value to the Fixed Account, then we credit such cash value with a declared rate of interest. You assume the risk that the rate may decrease, although it will never be lower than the guaranteed minimum annual effective rate of 3%. SURRENDER AND WITHDRAWAL RISKS. The Policies are designed to provide lifetime insurance protection. They are not offered primarily as an investment, and should not be used as a short-term savings vehicle. If you surrender the Policy within the first ten Policy years (or within the first ten Policy years following a face amount increase), you will be subject to a Surrender Charge as well as income tax on any gain that is distributed or deemed to be distributed from the Policy. You will also be subject to a Surrender Charge if you make a partial withdrawal from the Policy within the first ten Policy years (or the first ten Policy years following the face amount increase) if the partial withdrawal reduces the face amount (or the face amount increase). If you surrender the Policy in the first Policy year (or in the first year following a face amount increase) we will also deduct an amount equal to the remaining first year Coverage Expense Charges. You should purchase the Policy only if you have the financial ability to keep it in force for a substantial period of time. You should not purchase the Policy if you intend to surrender all or part of the Policy's cash value in the near future. Even if you do not ask to surrender your Policy, surrender charges may play a role in determining whether your Policy will lapse (terminate without value), because surrender charges determine the cash surrender value, which is a measure we use to determine whether your Policy will enter the grace period (and possibly lapse). RISK OF LAPSE. Your Policy may lapse if you have paid an insufficient amount of premiums or if the investment experience of the Investment Divisions is poor. If your cash surrender value is not enough to pay the Monthly Deduction, your Policy may enter a 62-day grace period. We will notify you that the Policy will lapse unless you make a sufficient payment of additional premium during the grace period. Your Policy generally will not lapse if you pay certain required premium amounts A-5 and you are therefore protected by a Guaranteed Minimum Death Benefit. If your Policy does lapse, your insurance coverage will terminate, although you will be given an opportunity to reinstate it. Lapse of a Policy on which there is an outstanding loan may have adverse tax consequences. TAX RISKS. We anticipate that the Policy should be deemed to be a life insurance contract under Federal tax law. However, the rules are not entirely clear in certain circumstances, for example, if your Policy is issued on a substandard basis. The death benefit under the Policy will never be less than the minimum amount required for the Policy to be treated as life insurance under section 7702 of the Internal Revenue Code, as in effect on the date the Policy was issued. If your Policy is not treated as a life insurance contract under Federal tax law, increases in the Policy's cash value will be taxed currently. Even if your Policy is treated as a life insurance contract for Federal tax purposes, it may become a modified endowment contract due to the payment of excess premiums or unnecessary premiums, due to a material change or due to a reduction in your death benefit. If your Policy becomes a modified endowment contract, surrenders, partial withdrawals, loans, and use of the Policy as collateral for a loan will be treated as a distribution of the earnings in the Policy and will be taxable as ordinary income to the extent thereof. In addition, if the Policy Owner is under age 59 1/2 at the time of the surrender, partial withdrawal or loan, the amount that is included in income will generally be subject to a 10% penalty tax. If the Policy is not a modified endowment contract, distributions generally will be treated first as a return of basis or investment in the contract and then as taxable income. However, different rules apply in the first fifteen Policy years, when distributions accompanied by benefit reductions may be taxable prior to a complete withdrawal of your investment in the Policy. Moreover, loans will generally not be treated as distributions prior to termination of your Policy, whether by lapse, surrender or exchange. Additionally, the tax consequences of loans outstanding after the tenth Policy year are uncertain. Finally, neither distributions nor loans from a Policy that is not a modified endowment contract are subject to the 10% penalty tax. See "Tax Considerations." You should consult a qualified tax adviser for assistance in all Policy-related tax matters. LOAN RISKS. A Policy loan, whether or not repaid, will affect the cash value of your Policy over time because we subtract the amount of the loan from the Investment Divisions and/or Fixed Account as collateral, and hold it in our Loan Account. This loan collateral does not participate in the investment experience of the Investment Divisions or receive any higher current interest rate credited to the Fixed Account. We also reduce the amount we pay on the insured's death by the amount of any outstanding loan and accrued loan interest. Your Policy may lapse if your outstanding loan and accrued loan interest reduce the cash surrender value to zero. If you surrender your Policy or your Policy lapses while there is an outstanding loan, there will generally be Federal income tax payable on the amount by which loans and partial withdrawals exceed the premiums paid. Since loans and partial withdrawals reduce your Policy's cash value, any remaining cash value may be insufficient to pay the income tax due. LIMITATIONS ON CASH VALUE IN THE FIXED ACCOUNT. Transfers to and from the Fixed Account must generally be in amounts of $50 or more. Partial withdrawals from the Fixed Account must be in amounts of $500 or more. The total amount of transfers and withdrawals from the Fixed Account in a Policy year may generally not exceed the greater of 25% of the Policy's cash surrender value in the Fixed Account at the beginning of the year, or the maximum transfer amount for the preceding Policy year. We may also limit the number of transfers and partial withdrawals and may impose a processing charge for transfers and partial withdrawals. We are not currently imposing the maximum limit on transfers and withdrawals from the Fixed Account, but we reserve the right to do so. It is important to note that if we impose the maximum limit on transfers and withdrawals from the Fixed Account, 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. TAX LAW CHANGES. Tax laws, regulations, and interpretations have often been changed in the past and such changes continue to be proposed. To the extent that you purchase a Policy based on expected tax benefits, relative to other financial or investment products or strategies, there is no certainty that such advantages will always continue to exist. A-6 RISKS OF THE PORTFOLIOS ----------------------- A comprehensive discussion of the risks associated with each of the Portfolios can be found in the Portfolio prospectuses, which you can obtain by calling 1-800-638-5000. THERE IS NO ASSURANCE THAT ANY OF THE PORTFOLIOS WILL ACHIEVE ITS STATED INVESTMENT OBJECTIVE. FEE TABLES The following tables describe the fees and expenses that a Policy Owner will pay when buying, owning and surrendering the Policy. The first table describes the fees and expenses that a Policy Owner will pay at the time he or she buys the Policy, surrenders the Policy or transfers cash value among accounts. TRANSACTION FEES
CHARGE WHEN CHARGE IS DEDUCTED CURRENT AMOUNT DEDUCTED MAXIMUM AMOUNT DEDUCTIBLE Sales Charge Imposed on On payment of premium 2.25% of premiums paid 2.25% of each premium Premiums up to the Target Premium paid per Policy year1 Premium Tax Imposed on On payment of premium 2.0% in all Policy years 2.0% in all Policy years Premiums Federal Tax Imposed on On payment of premium 1.25% in all Policy years 1.25% in all Policy years Premiums
1 The target premium varies based on individual characteristics, including the insured's issue age, risk class and (except for unisex Policies) sex.
CHARGE WHEN CHARGE IS DEDUCTED CURRENT AMOUNT DEDUCTED MAXIMUM AMOUNT DEDUCTIBLE Surrender Charge1 On surrender, lapse, or face amount reduction in the first ten Policy years (and, with respect to a face amount increase, in the first ten Policy years after the increase) Minimum and In Policy year 1, $3.75 to In Policy year 1, $3.75 to Maximum Charge $38.25 per $1,000 of base $38.25 per $1,000 of base Policy face amount2 Policy face amount2 Charge in the first Policy $14.00 per $1,000 of base $14.00 per $1,000 of base year for a Representative Policy face amount Policy face amount Insured 3 Transfer Charge4 On transfer of cash value Not currently charged $25 for each transfer among the Investment Divisions and to and from the Fixed Account Partial Withdrawal Charge On partial withdrawal of Not currently charged $25 for each partial cash value withdrawal5 Illustration of Benefits On provision of each Not currently charged $25 per illustration Charge illustration in excess of one per year
A-7 1 The Surrender Charge varies based on individual characteristics, including the insured's issue age, risk class, sex (except for unisex Policies), smoker status, and the Policy's face amount. The Surrender Charge may not be representative of the charge that a particular Policy Owner would pay. You can obtain more information about the Surrender Charge that would apply for a particular insured by contacting your registered representative. 2 No Surrender Charge will apply on up to 10% of cash surrender value withdrawn each year. The Surrender Charge will remain level for one to three Policy years, and will then begin to decline on a monthly basis until it reaches zero in the last month of the tenth Policy year. The Surrender Charge applies to requested face amount reductions as well as to face amount reductions resulting from a change in death benefit option. 3 The Representative Insured is a male, age 35, in the preferred nonsmoker risk class, under a Policy with a base Policy face amount of $375,000. 4 The Portfolios in which the Investment Divisions invest may impose a redemption fee on shares held for a relatively short period. 5 If imposed, the partial withdrawal charge would be in addition to any Surrender Charge that is imposed. The next table describes the fees and expenses that a Policy Owner will pay periodically during the time that he or she owns the Policy, not including Portfolio fees and expenses. PERIODIC CHARGES OTHER THAN PORTFOLIO OPERATING EXPENSES
CHARGE WHEN CHARGE IS DEDUCTED CURRENT AMOUNT DEDUCTED MAXIMUM AMOUNT DEDUCTIBLE Cost of Insurance1 Minimum and Monthly $.01 to $83.33 per $1,000 $.02 to $83.33 per $1,000 Maximum Charge of net amount at risk2 of net amount at risk2 Charge in the first Policy Monthly $.02 per $1,000 of net $.09 per $1,000 of net year for a Representative amount at risk amount at risk Insured 3 Policy Charge4 Policy face amount less Monthly $12 $12 than $50,000 Policy face amount Monthly $15 $15 between $50,000 and $249,999 Mortality and Expense Risk Monthly .60% .80% Charge (annual rate imposed on cash value in the Separate Account)5 Coverage Expense Charge6 Minimum and Monthly $.04 to $2.30 per $1,000 $.04 to $2.30 per $1,000 Maximum Charge of base Policy face of base Policy face amount amount7 Charge for a Monthly $.16 per $1,000 of base $.16 per $1,000 of base Representative Insured 3 Policy face amount7 Policy face amount Loan Interest Spread8 Annually (or on loan 1.00% of loan collateral 1.00% of loan collateral termination, if earlier)
1 The cost of insurance charge varies based on individual characteristics, including the Policy's face amount and the insured's age, risk class, and (except for unisex Policies) sex. The cost of insurance charge may not be representative of the charge that a particular Policy Owner would pay. You can obtain more information about the cost of insurance charge that would apply for a particular insured by contacting your registered representative. 2 The net amount at risk is the difference between the death benefit (generally discounted at the monthly equivalent of 3% per year) and the Policy's cash value. A-8 3 The Representative Insured is a male, age 35, in the preferred nonsmoker risk class, under a Policy with a base policy face amount of $375,000. 4 After the first Policy Year, the Policy Charge declines to $9 for a Policy with a face amount of less than $50,000, and to $8 for a Policy with a face amount between $50,000 and $249,999. No Policy Charge applies if a Policy is issued with a face amount equal to or greater than $250,000. 5 The Mortality and Expense Risk Charge declines over time in accordance with the following schedule:
CURRENT CHARGE MAXIMUM CHARGE ---------------- --------------- Policy years 1 - 10 .60% .80% Policy years 11 - 19 .35% .35% Policy years 20 - 29 .20% .20% Policy years 30+ .05% .05%
The Current Charge Percentages shown above apply if the Policy's net cash value is less than the equivalent of five Target Premiums. The percentages decrease as the Policy's net cash value, measured as a multiple of Target Premiums, increases, as shown below:
LESS THAN 5 TARGET AT LEAST 5 BUT LESS THAN AT LEAST 10 BUT LESS THAN 20 OR MORE TARGET PREMIUMS 10 TARGET PREMIUMS 20 TARGET PREMIUMS PREMIUMS -------------------- -------------------------- --------------------------- ------------------ Policy years 1- 10 .60% .55% .30% .15% Policy years 11- 19 .35% .30% .15% .10% Policy years 20- 29 .20% .15% .10% .05% Policy years 30+ .05% .05% .05% .05%
6 The Coverage Expense Charge varies based on individual characteristics, including the Policy's face amount and the Insured's age, risk class, and (except for unisex Policies) sex. The Coverage Expense Charge may not be representative of the charge that a particular Policy Owner would pay. You can obtain more information about the Coverage Expense Charge that would apply to a particular insured by contacting your registered representative. 7 The Coverage Expense Charge is imposed in Policy years 1-8 and, with respect to a requested face amount increase, during the first eight years following the increase. If you surrender the Policy in the first Policy year (or in the first year following a face amount increase), we will deduct from the surrender proceeds an amount equal to the Coverage Expense Charges due for the remainder of the first Policy year (or the first year following the face amount increase). If the Policy's face amount is reduced in the first year following a face amount increase, we will deduct from the cash value an amount equal to the Coverage Expense Charges due for the remainder of the first year following the face amount increase. 8 The loan interest spread is the difference between the interest rates we charge on Policy loans and the interest earned on cash value we hold as security for the loan ("loan collateral"). We charge interest on Policy loans at an effective rate of 4.0% per year in Policy years 1-10 and 3.0% thereafter. Loan collateral earns interest at an effective rate of not less than 3.0% per year. A-9 CHARGES FOR OPTIONAL FEATURES (RIDERS):
CHARGE WHEN CHARGE IS DEDUCTED CURRENT AMOUNT DEDUCTED MAXIMUM AMOUNT DEDUCTIBLE Guaranteed Survivor Income Benefit Rider1 Minimum and Monthly $.01 to $1.08 per $1,000 $.01 to $83.33 per $1,000 Maximum Charge of Eligible Death Benefit of Eligible Death Benefit Charge for a Monthly $.02 per $1,000 of Eligible $.02 per $1,000 of Eligible Representative Insured2 Death Benefit Death Benefit Children's Term Insurance Monthly $.40 per $1,000 of rider $.40 per $1,000 of rider Rider face amount face amount Waiver of Monthly Deduction Rider3 Minimum and Monthly $.00 to $61.44 per $100 of $.00 to $61.44 per $100 of Maximum Charge Monthly Deduction Monthly Deduction Charge in the first Policy Monthly $6.30 per $100 of Monthly $6.30 per $100 of Monthly year for a Representative Deduction Deduction insured4 Waiver of Specified Premium Rider Minimum and Monthly $.00 to $21.75 per $100 of $.00 to $21.75 per $100 of Maximum Charge Specified Premium Specified Premium Charge in the first Policy Monthly $3.00 per $100 of $3.00 per $100 of year for a Representative Specified Premium Specified Premium Insured4
1 The charge for the Guaranteed Survivor Income Benefit Rider varies based on individual characteristics, including the rider's Eligible Death Benefit and the insured's age, risk class, and (except for unisex Policies) sex. The rider change may not be representative of the charge that a particular Policy Owner would pay. You can obtain more information about the rider charge that would apply for a particular insured by contacting your registered representative. 2 The Representative Insured is a male, age 35, in the preferred nonsmoker risk class, under a Policy with an Eligible Death Benefit of $375,000. 3 The charge for this rider varies based on individual characteristics, including the insured's age, risk class, and (except for unisex Policies) sex. The rider change may not be representative of the charge that a particular Policy Owner would pay. You can obtain more information about the rider charge that would apply for a particular insured by contacting your registered representative. 4 The Representative Insured is a male, age 35, in the preferred nonsmoker risk class. A-10
CHARGE WHEN CHARGE IS DEDUCTED CURRENT AMOUNT DEDUCTED MAXIMUM AMOUNT DEDUCTIBLE Options to Purchase Additional Insurance Coverage Rider1 Minimum and Monthly $.02 to $.25 per $1,000 of $.02 to $.25 per $1,000 of Maximum Charge Option amount Option amount Charge for a Monthly $.03 per $1,000 of Option $.03 per $1,000 of Option Representative Insured2 amount amount Accidental Death Benefit Rider1 Minimum and Monthly $.00 to $.34 per $1,000 $.00 to $83.33 per $1,000 Maximum Charge of rider face amount of rider face amount Charge in the first Policy Monthly $.05 per $1,000 of rider $.08 per $1,000 of rider year for a Representative face amount face amount Insured2 Guaranteed Minimum Death Benefit Rider1,3 Minimum and Monthly $.03 to $.14 per $1,000 $.03 to $83.33 per $1,000 Maximum Charge of net amount at risk of net amount at risk Charge for a Monthly $.03 per $1,000 of net $.03 per $1,000 of net Representative Insured4 amount at risk amount at risk Acceleration of Death Benefit At time of benefit payment Not currently charged One-time fee of $150 Rider Overloan Protection Rider At time of exercise One-time fee of 3.5% of One-time fee of 3.5% of Policy cash value Policy cash value
1 The charge for this rider varies based on individual characteristics, including the insured's age, risk class, and (except for unisex Policies) sex. The rider change may not be representative of the charge that a particular Policy Owner would pay. You can obtain more information about the rider charge that would apply for a particular insured by contacting your registered representative. 2 The Representative Insured is a male, age 35, in the preferred nonsmoker risk class. 3 The charge shown applicable to both the Guaranteed Minimum Death Benefit to Age 85 Rider and the Guaranteed Minimum Death Benefit to Age 121 Rider. 4 The Representative Insured is a female, age 45, in the preferred nonsmoker risk class. ANNUAL PORTFOLIO OPERATING EXPENSES The next table describes the Portfolio fees and expenses that a Policy Owner may pay periodically during the time that he or she owns the Policy. The table shows the minimum and maximum total operating expenses charged by the Portfolios for the fiscal year ended December 31, 2015. Expenses of the Portfolios may be higher or lower in the future. More detail concerning each Portfolio's fees and expenses is contained in the table that follows and in the prospectus for each Portfolio. A-11 ANNUAL OPERATING EXPENSES (AS A PERCENTAGE OF AVERAGE NET ASSETS) 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% 1.54%
PORTFOLIO FEES AND EXPENSES (AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS) The following table is a summary. For more complete information on Portfolio fees and expenses, please refer to the prospectus for each Portfolio.
DISTRIBUTION AND/OR MANAGEMENT SERVICE OTHER PORTFOLIO FEE (12B-1) FEES EXPENSES ------------------------------------------- ------------ -------------- ---------- AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 2 American Funds Bond Fund................... 0.37% 0.25% 0.01% American Funds Global Small Capitalization Fund....................... 0.69% 0.25% 0.04% American Funds Growth Fund................. 0.33% 0.25% 0.02% American Funds Growth-Income Fund.......... 0.27% 0.25% 0.02% FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2 Franklin Income VIP Fund................... 0.45% 0.25% 0.01% Franklin Mutual Shares VIP Fund............ 0.69% 0.25% 0.04% MET INVESTORS SERIES TRUST AB Global Dynamic Allocation Portfolio -- Class B...................... 0.61% 0.25% 0.03% Allianz Global Investors Dynamic Multi-Asset Plus Portfolio -- Class B..... 0.68% 0.25% 0.42% American Funds(R) Balanced Allocation Portfolio -- Class B...................... 0.06% 0.25% -- American Funds(R) Growth Allocation Portfolio -- Class B...................... 0.06% 0.25% 0.01% American Funds(R) Moderate Allocation Portfolio -- Class B...................... 0.06% 0.25% 0.01% AQR Global Risk Balanced Portfolio -- Class B................................... 0.61% 0.25% 0.03% BlackRock Global Tactical Strategies Portfolio -- Class B...................... 0.66% 0.25% 0.01% Clarion Global Real Estate Portfolio -- Class A................................... 0.60% -- 0.04% ClearBridge Aggressive Growth Portfolio -- Class A...................... 0.55% -- 0.02% Harris Oakmark International Portfolio -- Class A...................... 0.77% -- 0.06% ACQUIRED TOTAL FEE WAIVER NET TOTAL FUND FEES ANNUAL AND/OR ANNUAL AND OPERATING EXPENSE OPERATING PORTFOLIO EXPENSES EXPENSES REIMBURSEMENT EXPENSES ------------------------------------------- ----------- ----------- --------------- ---------- AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 2 American Funds Bond Fund................... -- 0.63% -- 0.63% American Funds Global Small Capitalization Fund....................... -- 0.98% -- 0.98% American Funds Growth Fund................. -- 0.60% -- 0.60% American Funds Growth-Income Fund.......... -- 0.54% -- 0.54% FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2 Franklin Income VIP Fund................... -- 0.71% -- 0.71% Franklin Mutual Shares VIP Fund............ -- 0.98% -- 0.98% MET INVESTORS SERIES TRUST AB Global Dynamic Allocation Portfolio -- Class B...................... 0.02% 0.91% 0.02% 0.89% Allianz Global Investors Dynamic Multi-Asset Plus Portfolio -- Class B..... 0.02% 1.37% 0.15% 1.22% American Funds(R) Balanced Allocation Portfolio -- Class B...................... 0.42% 0.73% -- 0.73% American Funds(R) Growth Allocation Portfolio -- Class B...................... 0.43% 0.75% -- 0.75% American Funds(R) Moderate Allocation Portfolio -- Class B...................... 0.40% 0.72% -- 0.72% AQR Global Risk Balanced Portfolio -- Class B................................... 0.01% 0.90% 0.01% 0.89% BlackRock Global Tactical Strategies Portfolio -- Class B...................... 0.12% 1.04% 0.03% 1.01% Clarion Global Real Estate Portfolio -- Class A................................... -- 0.64% -- 0.64% ClearBridge Aggressive Growth Portfolio -- Class A...................... -- 0.57% 0.00% 0.57% Harris Oakmark International Portfolio -- Class A...................... -- 0.83% 0.02% 0.81%
A-12
DISTRIBUTION AND/OR MANAGEMENT SERVICE OTHER PORTFOLIO FEE (12B-1) FEES EXPENSES -------------------------------------------- ------------ -------------- ---------- Invesco Balanced-Risk Allocation Portfolio -- Class B....................... 0.64% 0.25% 0.03% Invesco Mid Cap Value Portfolio -- Class A.................................... 0.64% -- 0.04% Invesco Small Cap Growth Portfolio -- Class A.................................... 0.85% -- 0.02% JPMorgan Global Active Allocation Portfolio -- Class B....................... 0.72% 0.25% 0.06% JPMorgan Small Cap Value Portfolio -- Class A.................................... 0.77% -- 0.05% Loomis Sayles Global Markets Portfolio -- Class A....................... 0.70% -- 0.08% Met/Aberdeen Emerging Markets Equity Portfolio -- Class A....................... 0.88% -- 0.14% Met/Templeton International Bond Portfolio -- Class A....................... 0.60% -- 0.13% Met/Wellington Large Cap Research Portfolio -- Class A....................... 0.56% -- 0.03% MetLife Asset Allocation 100 Portfolio -- Class A....................... 0.07% -- 0.01% MetLife Balanced Plus Portfolio -- Class B.................................... 0.24% 0.25% -- MetLife Multi-Index Targeted Risk Portfolio -- Class B....................... 0.17% 0.25% 0.02% MFS(R) Research International Portfolio -- Class A....................... 0.69% -- 0.07% Morgan Stanley Mid Cap Growth Portfolio -- Class A....................... 0.65% -- 0.03% Oppenheimer Global Equity Portfolio -- Class A.................................... 0.66% -- 0.05% PanAgora Global Diversified Risk Portfolio -- Class B....................... 0.65% 0.25% 0.60% PIMCO Inflation Protected Bond Portfolio -- Class A....................... 0.47% -- 0.15% PIMCO Total Return Portfolio -- Class A..... 0.48% -- 0.04% Pyramis(R) Managed Risk Portfolio -- Class B.................................... 0.45% 0.25% 0.04% Schroders Global Multi-Asset Portfolio -- Class B....................... 0.64% 0.25% 0.08% SSGA Growth and Income ETF Portfolio -- Class A....................... 0.31% -- -- SSGA Growth ETF Portfolio -- Class A........ 0.32% -- 0.02% T. Rowe Price Mid Cap Growth Portfolio -- Class A....................... 0.75% -- 0.03% METROPOLITAN SERIES FUND -- CLASS A Baillie Gifford International Stock Portfolio.................................. 0.79% -- 0.07% Barclays Aggregate Bond Index Portfolio.................................. 0.25% -- 0.03% ACQUIRED TOTAL FEE WAIVER NET TOTAL FUND FEES ANNUAL AND/OR ANNUAL AND OPERATING EXPENSE OPERATING PORTFOLIO EXPENSES EXPENSES REIMBURSEMENT EXPENSES -------------------------------------------- ----------- ----------- --------------- ----------- Invesco Balanced-Risk Allocation Portfolio -- Class B....................... 0.03% 0.95% 0.03% 0.92% Invesco Mid Cap Value Portfolio -- Class A.................................... 0.08% 0.76% 0.02% 0.74% Invesco Small Cap Growth Portfolio -- Class A.................................... -- 0.87% 0.02% 0.85% JPMorgan Global Active Allocation Portfolio -- Class B....................... -- 1.03% 0.04% 0.99% JPMorgan Small Cap Value Portfolio -- Class A.................................... -- 0.82% 0.09% 0.73% Loomis Sayles Global Markets Portfolio -- Class A....................... -- 0.78% -- 0.78% Met/Aberdeen Emerging Markets Equity Portfolio -- Class A....................... -- 1.02% 0.05% 0.97% Met/Templeton International Bond Portfolio -- Class A....................... -- 0.73% -- 0.73% Met/Wellington Large Cap Research Portfolio -- Class A....................... -- 0.59% 0.04% 0.55% MetLife Asset Allocation 100 Portfolio -- Class A....................... 0.68% 0.76% -- 0.76% MetLife Balanced Plus Portfolio -- Class B.................................... 0.42% 0.91% 0.00% 0.91% MetLife Multi-Index Targeted Risk Portfolio -- Class B....................... 0.22% 0.66% -- 0.66% MFS(R) Research International Portfolio -- Class A....................... -- 0.76% 0.06% 0.70% Morgan Stanley Mid Cap Growth Portfolio -- Class A....................... -- 0.68% 0.01% 0.67% Oppenheimer Global Equity Portfolio -- Class A.................................... -- 0.71% 0.08% 0.63% PanAgora Global Diversified Risk Portfolio -- Class B....................... 0.04% 1.54% 0.20% 1.34% PIMCO Inflation Protected Bond Portfolio -- Class A....................... -- 0.62% 0.01% 0.61% PIMCO Total Return Portfolio -- Class A..... -- 0.52% 0.04% 0.48% Pyramis(R) Managed Risk Portfolio -- Class B.................................... 0.53% 1.27% 0.11% 1.16% Schroders Global Multi-Asset Portfolio -- Class B....................... 0.01% 0.98% -- 0.98% SSGA Growth and Income ETF Portfolio -- Class A....................... 0.22% 0.53% -- 0.53% SSGA Growth ETF Portfolio -- Class A........ 0.24% 0.58% -- 0.58% T. Rowe Price Mid Cap Growth Portfolio -- Class A....................... -- 0.78% -- 0.78% METROPOLITAN SERIES FUND -- CLASS A Baillie Gifford International Stock Portfolio.................................. -- 0.86% 0.12% 0.74% Barclays Aggregate Bond Index Portfolio.................................. -- 0.28% 0.01% 0.27%
A-13
DISTRIBUTION AND/OR MANAGEMENT SERVICE OTHER PORTFOLIO FEE (12B-1) FEES EXPENSES ------------------------------------------- ------------ -------------- ---------- BlackRock Bond Income Portfolio............ 0.32% -- 0.04% BlackRock Capital Appreciation Portfolio................................. 0.69% -- 0.02% BlackRock Large Cap Value Portfolio........ 0.63% -- 0.03% Frontier Mid Cap Growth Portfolio.......... 0.71% -- 0.03% Jennison Growth Portfolio.................. 0.60% -- 0.02% Loomis Sayles Small Cap Core Portfolio..... 0.90% -- 0.06% Loomis Sayles Small Cap Growth Portfolio................................. 0.90% -- 0.05% Met/Artisan Mid Cap Value Portfolio........ 0.81% -- 0.03% Met/Wellington Balanced Portfolio.......... 0.46% -- 0.08% Met/Wellington Core Equity Opportunities Portfolio................... 0.70% -- 0.02% MetLife Asset Allocation 20 Portfolio...... 0.09% -- 0.02% MetLife Asset Allocation 40 Portfolio...... 0.06% -- -- MetLife Asset Allocation 60 Portfolio...... 0.05% -- -- MetLife Asset Allocation 80 Portfolio...... 0.05% -- -- MetLife Mid Cap Stock Index Portfolio...... 0.25% -- 0.04% MetLife Stock Index Portfolio.............. 0.25% -- 0.02% MFS(R) Total Return Portfolio.............. 0.55% -- 0.05% MFS(R) Value Portfolio..................... 0.70% -- 0.02% MSCI EAFE(R) Index Portfolio............... 0.30% -- 0.10% Neuberger Berman Genesis Portfolio......... 0.81% -- 0.03% Russell 2000(R) Index Portfolio............ 0.25% -- 0.06% T. Rowe Price Large Cap Growth Portfolio................................. 0.60% -- 0.02% T. Rowe Price Small Cap Growth Portfolio................................. 0.47% -- 0.03% Van Eck Global Natural Resources Portfolio................................. 0.78% -- 0.03% Western Asset Management Strategic Bond Opportunities Portfolio.............. 0.59% -- 0.04% Western Asset Management U.S. Government Portfolio................. 0.47% -- 0.02% ACQUIRED TOTAL FEE WAIVER NET TOTAL FUND FEES ANNUAL AND/OR ANNUAL AND OPERATING EXPENSE OPERATING PORTFOLIO EXPENSES EXPENSES REIMBURSEMENT EXPENSES ------------------------------------------- ----------- ----------- --------------- ----------- BlackRock Bond Income Portfolio............ -- 0.36% 0.00% 0.36% BlackRock Capital Appreciation Portfolio................................. -- 0.71% 0.05% 0.66% BlackRock Large Cap Value Portfolio........ -- 0.66% 0.03% 0.63% Frontier Mid Cap Growth Portfolio.......... -- 0.74% 0.02% 0.72% Jennison Growth Portfolio.................. -- 0.62% 0.08% 0.54% Loomis Sayles Small Cap Core Portfolio..... 0.04% 1.00% 0.08% 0.92% Loomis Sayles Small Cap Growth Portfolio................................. -- 0.95% 0.09% 0.86% Met/Artisan Mid Cap Value Portfolio........ -- 0.84% -- 0.84% Met/Wellington Balanced Portfolio.......... -- 0.54% 0.00% 0.54% Met/Wellington Core Equity Opportunities Portfolio................... -- 0.72% 0.12% 0.60% MetLife Asset Allocation 20 Portfolio...... 0.52% 0.63% 0.01% 0.62% MetLife Asset Allocation 40 Portfolio...... 0.56% 0.62% -- 0.62% MetLife Asset Allocation 60 Portfolio...... 0.60% 0.65% -- 0.65% MetLife Asset Allocation 80 Portfolio...... 0.65% 0.70% -- 0.70% MetLife Mid Cap Stock Index Portfolio...... 0.01% 0.30% 0.00% 0.30% MetLife Stock Index Portfolio.............. -- 0.27% 0.01% 0.26% MFS(R) Total Return Portfolio.............. -- 0.60% -- 0.60% MFS(R) Value Portfolio..................... -- 0.72% 0.14% 0.58% MSCI EAFE(R) Index Portfolio............... 0.01% 0.41% 0.00% 0.41% Neuberger Berman Genesis Portfolio......... -- 0.84% 0.01% 0.83% Russell 2000(R) Index Portfolio............ 0.01% 0.32% 0.00% 0.32% T. Rowe Price Large Cap Growth Portfolio................................. -- 0.62% 0.02% 0.60% T. Rowe Price Small Cap Growth Portfolio................................. -- 0.50% -- 0.50% Van Eck Global Natural Resources Portfolio................................. -- 0.81% 0.01% 0.80% Western Asset Management Strategic Bond Opportunities Portfolio.............. -- 0.63% 0.04% 0.59% Western Asset Management U.S. Government Portfolio................. -- 0.49% 0.01% 0.48%
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 2016 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. 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. The American Funds Insurance Series and the Franklin Templeton Variable Insurance Products Trust are not affiliated with Metropolitan Life Insurance Company. For information concerning compensation paid for the sale of the Policies, see "Distribution of the Policies." A-14 HOW THE POLICY WORKS [FLOW CHART] PREMIUM PAYMENTS - Flexible - Planned premium options - Guaranteed Minimum Death Benefit premium (5-year, 20-year, or to age 65) CHARGES FROM PREMIUM PAYMENTS - Sales Load: 2.25% up to Target Premium per Policy year (maximum 2.25% on all premiums) - Premium Tax Charge: 2.0% - Charge for Federal Taxes: 1.25% CASH VALUES - Net premium payments invested in your choice of Portfolio investments (after an initial period in the Fixed Account) or the Fixed Account - The cash value reflects investment experience, interest, premium payments, policy charges and any distributions from the Policy - We do not guarantee the cash value invested in the Portfolios - Any earnings you accumulate are generally free of any current income taxes - You may change the allocation of future net premiums at any time. You may transfer funds among Investment Divisions (and to the Fixed Account). Currently we do not limit the number of Investment Division transfers you can make in a Policy year (subject to restrictions we impose on frequent transfers). - We reserve the right to impose a $25 charge on each partial withdrawal and on each Investment Division transfer (including a transfer between an Investment Division and the Fixed Account) - We may limit the amount of transfers from (and in some cases to) the Fixed Account LOANS - You may borrow your cash value - Loan interest charge is 4.0% in Policy years 1-10 and 3.0% thereafter. - We transfer loaned funds out of the Fixed Account and the Investment Divisions into the Loan Account where we credit them with not less than 3.0% interest. RETIREMENT BENEFITS - Fixed settlement options are available for policy proceeds DEATH BENEFIT - Level, Variable and combined Level/Variable Death Benefit Options - Guaranteed not to be less than face amount (less any loan and loan interest) if the Guaranteed Minimum Death Benefit is in effect. - On or after age 121, under Options A and C, equal to the greater of (1) the face amount of the Policy as of the insured's age 121; and (2) 101% of the Policy's cash value. Under Option B, the face amount of the Policy as of the insured's age 121, plus the Policy's cash value. - Generally income tax free to named beneficiary; may be subject to estate tax. DAILY DEDUCTIONS FROM ASSETS OF THE SEPARATE ACCOUNT - Investment advisory fees and other expenses are deducted from the Portfolio values BEGINNING OF MONTH CHARGES - We deduct the cost of insurance protection (reflecting any substandard risk rating) from the cash value each month - Any Rider Charges - Policy Charge: $15.00 per month first year and $8.00 per month thereafter for Policies issued with face amounts of $50,000 and greater; but less than $250,000; $12.00 per month first year and $9.00 per month thereafter for Policies issued with face amounts of less than $50,000 - Coverage Expense Charge: Monthly charge imposed on base Policy face amount that applies during the first eight Policy years or during the first eight years following a face amount increase (in all years on a guaranteed basis). - Mortality and Expense Risk Charge applied against the cash value in the Separate Account at a maximum annual rate of .80% in Policy years 1-10; .35% in Policy years 11-19; .20% in Policy years 20-29; and .05% thereafter SURRENDER CHARGE - Applies on lapse, surrender, face amount reduction, or partial withdrawal or change in death benefit option that results in face reduction in first ten Policy years--or in the first ten Policy years following a face amount increase. Maximum charge applies in up to the first three Policy years. Thereafter, the charge decreases monthly basis over the remaining years of the surrender charge period. LIVING BENEFITS - If policyholder has elected and qualified for benefits for disability and becomes totally disabled, we will waive the monthly deduction or a specified amount of monthly premium during the period of disability up to certain limits. - You may surrender the Policy at any time for its cash surrender value - Deferred income taxes, including taxes on certain amounts borrowed, become payable upon surrender or lapse - Grace period for lapsing with no value is 62 days from the first date in which Monthly Deduction was not paid due to insufficient cash value - Subject to our rules, you may reinstate a lapsed Policy within three years of date of lapse if it has not been surrendered A-15 THE COMPANY, THE SEPARATE ACCOUNT AND THE PORTFOLIOS THE COMPANY Metropolitan Life Insurance Company is a wholly-owned subsidiary of MetLife, Inc., a publicly traded company. Our principal office is located at 200 Park Avenue, New York, New York 10166. MetLife is licensed to sell life insurance in all states and the District of Columbia, but we only offer the Policies in New York. We are obligated to pay all benefits under the Policies. THE SEPARATE ACCOUNT Metropolitan Life Separate Account UL is the funding vehicle for the Policies -and other variable life insurance policies that we issue. Income and realized and unrealized capital gains and losses of the Separate Account are credited to the Separate Account without regard to any of our other income or capital gains or losses. Although we own the assets of the Separate Account, applicable law provides that the portion of the Separate Account assets equal to the reserves and other liabilities of the Separate Account may not be charged with liabilities that arise out of any other business we conduct. This means that the assets of the Separate Account are not available to meet the claims of our general creditors, and may only be used to support the cash values of the variable life insurance policies issued by the Separate Account. We are obligated to pay the death benefit under the Policy even if that amount exceeds the Policy's cash value in the Separate Account. The amount of the death benefit that exceeds the Policy's cash value in the Separate Account is paid from our general account. Death benefits paid from the general account are subject to the financial strength and claims-paying ability of the Company. For other life insurance policies and annuity contracts that we issue, we pay all amounts owed under the policies and contracts from the general account. MetLife is regulated as an insurance company under state law, which generally imposes restrictions on the amount and type of investments in the general account. However, there is no guarantee that we will be able to meet our claims-paying obligations. There are risks to purchasing any insurance product. The 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. THE PORTFOLIOS Each Investment Division of the Separate Account invests in a corresponding Portfolio. Each Portfolio is part of an open-end management investment company, more commonly known as a mutual fund, that serves as an investment vehicle for variable life insurance and variable annuity separate accounts of various insurance companies. The mutual funds that offer the Portfolios are the Metropolitan Series Fund, the Met Investors Series Trust, the American Funds Insurance Series(R) and the Franklin Templeton Variable Insurance Products Trust. Each of these mutual funds has an investment adviser responsible for overall management of the fund. Some investment advisers have contracted with sub-advisers to make the day-to-day investment decisions for the Portfolios. The adviser, sub-adviser and investment objective of each Portfolio are as follows:
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER ----------------------------- ------------------------------------ -------------------------------- AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 2 American Funds Bond Fund Seeks as high a level of current Capital Research and Management income as is consistent with the Company preservation of capital. American Funds Global Small Seeks long-term growth of capital. Capital Research and Management Capitalization Fund Company
A-16
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER -------------------------------------- --------------------------------------- ----------------------------------------- American Funds Growth Fund Seeks growth of capital. Capital Research and Management Company American Funds Growth-Income Seeks long-term growth of capital Capital Research and Management Fund and income. Company FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2 Franklin Income VIP Fund Seeks to maximize income while Franklin Advisers, Inc. maintaining prospects for capital appreciation. Franklin Mutual Shares VIP Fund Seeks capital appreciation, with Franklin Mutual Advisers, LLC income as a secondary goal. MET INVESTORS SERIES TRUST AB Global Dynamic Allocation Seeks capital appreciation and MetLife Advisers, LLC Portfolio -- Class B current income. Subadviser: AllianceBernstein L.P. Allianz Global Investors Dynamic Seeks total return. MetLife Advisers, LLC Multi-Asset Plus Portfolio -- Subadviser: Allianz Global Investors Class B U.S. LLC American Funds(R) Balanced Seeks a balance between a high MetLife Advisers, LLC Allocation Portfolio -- Class B level of current income and growth of capital, with a greater emphasis on growth of capital. American Funds(R) Growth Allocation Seeks growth of capital. MetLife Advisers, LLC Portfolio -- Class B American Funds(R) Moderate Seeks a high total return in the form MetLife Advisers, LLC Allocation Portfolio -- Class B of income and growth of capital, with a greater emphasis on income. AQR Global Risk Balanced Seeks total return. MetLife Advisers, LLC Portfolio -- Class B Subadviser: AQR Capital Management, LLC BlackRock Global Tactical Strategies Seeks capital appreciation and MetLife Advisers, LLC Portfolio -- Class B current income. Subadviser: BlackRock Financial Management, Inc. Clarion Global Real Estate Seeks total return through MetLife Advisers, LLC Portfolio -- Class A investment in real estate securities, Subadviser: CBRE Clarion Securities LLC emphasizing both capital appreciation and current income. ClearBridge Aggressive Growth Seeks capital appreciation. MetLife Advisers, LLC Portfolio -- Class A Subadviser: ClearBridge Investments, LLC Harris Oakmark International Seeks long-term capital MetLife Advisers, LLC Portfolio -- Class A appreciation. Subadviser: Harris Associates L.P. Invesco Balanced-Risk Allocation Seeks total return. MetLife Advisers, LLC Portfolio -- Class B Subadviser: Invesco Advisers, Inc. Invesco Mid Cap Value Portfolio -- Seeks high total return by investing MetLife Advisers, LLC Class A in equity securities of mid-sized Subadviser: Invesco Advisers, Inc. companies. Invesco Small Cap Growth Seeks long-term growth of capital. MetLife Advisers, LLC Portfolio -- Class A Subadviser: Invesco Advisers, Inc.
A-17
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER ------------------------------------ ------------------------------------- --------------------------------------- JPMorgan Global Active Allocation Seeks capital appreciation and MetLife Advisers, LLC Portfolio -- Class B current income. Subadviser: J.P. Morgan Investment Management Inc. JPMorgan Small Cap Value Seeks long-term capital growth. MetLife Advisers, LLC Portfolio -- Class A Subadviser: J.P. Morgan Investment Management Inc. Loomis Sayles Global Markets Seeks high total investment return MetLife Advisers, LLC Portfolio -- Class A through a combination of capital Subadviser: Loomis, Sayles & Company, appreciation and income. L.P. Met/Aberdeen Emerging Markets Seeks capital appreciation. MetLife Advisers, LLC Equity Portfolio -- Class A Subadviser: Aberdeen Asset Managers (formerly MFS(R) Emerging Limited Markets Equity Portfolio) Met/Templeton International Bond Seeks current income with capital MetLife Advisers, LLC Portfolio -- Class A appreciation and growth of income. Subadviser: Franklin Advisers, Inc. Met/Wellington Large Cap Research Seeks long-term capital MetLife Advisers, LLC Portfolio -- Class A (formerly appreciation. Subadviser: Wellington Management WMC Large Cap Research Company LLP Portfolio) MetLife Asset Allocation 100 Seeks growth of capital. MetLife Advisers, LLC Portfolio -- Class A MetLife Balanced Plus Portfolio -- Seeks a balance between a high MetLife Advisers, LLC Class B level of current income and growth Subadviser: Overlay Portion: Pacific of capital, with a greater emphasis Investment Management Company LLC on growth of capital. MetLife Multi-Index Targeted Risk Seeks a balance between growth of MetLife Advisers, LLC Portfolio -- Class B capital and current income, with a Subadviser: Overlay Portion: MetLife greater emphasis on growth of Investment Advisors, LLC capital. MFS(R) Research International Seeks capital appreciation. MetLife Advisers, LLC Portfolio -- Class A Subadviser: Massachusetts Financial Services Company Morgan Stanley Mid Cap Growth Seeks capital appreciation. MetLife Advisers, LLC Portfolio -- Class A Subadviser: Morgan Stanley Investment Management Inc. Oppenheimer Global Equity Seeks capital appreciation. MetLife Advisers, LLC Portfolio -- Class A Subadviser: OppenheimerFunds, Inc. PanAgora Global Diversified Risk Seeks total return. MetLife Advisers, LLC Portfolio -- Class B Subadviser: PanAgora Asset Management, Inc. PIMCO Inflation Protected Bond Seeks maximum real return, MetLife Advisers, LLC Portfolio -- Class A consistent with preservation of Subadviser: Pacific Investment capital and prudent investment Management Company LLC management. PIMCO Total Return Portfolio -- Seeks maximum total return, MetLife Advisers, LLC Class A consistent with the preservation of Subadviser: Pacific Investment capital and prudent investment Management Company LLC management.
A-18
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER -------------------------------------- -------------------------------------- ------------------------------------------- Pyramis(R) Managed Risk Portfolio -- Seeks total return. MetLife Advisers, LLC Class B Subadviser: FIAM LLC Schroders Global Multi-Asset Seeks capital appreciation and MetLife Advisers, LLC Portfolio -- Class B current income. Subadvisers: Schroder Investment Management North America Inc.; Schroder Investment Management North America Limited SSGA Growth and Income ETF Seeks growth of capital and income. MetLife Advisers, LLC Portfolio -- Class A Subadviser: SSGA Funds Management, Inc. SSGA Growth ETF Portfolio -- Seeks growth of capital. MetLife Advisers, LLC Class A Subadviser: SSGA Funds Management, Inc. T. Rowe Price Mid Cap Growth Seeks long-term growth of capital. MetLife Advisers, LLC Portfolio -- Class A Subadviser: T. Rowe Price Associates, Inc. METROPOLITAN SERIES FUND -- CLASS A Baillie Gifford International Stock Seeks long-term growth of capital. MetLife Advisers, LLC Portfolio Subadviser: Baillie Gifford Overseas Limited Barclays Aggregate Bond Index Seeks to track the performance of MetLife Advisers, LLC Portfolio the Barclays U.S. Aggregate Bond Subadviser: MetLife Investment Advisors, Index. LLC BlackRock Bond Income Portfolio Seeks a competitive total return MetLife Advisers, LLC primarily from investing in Subadviser: BlackRock Advisors, LLC fixed-income securities. BlackRock Capital Appreciation Seeks long-term growth of capital. MetLife Advisers, LLC Portfolio Subadviser: BlackRock Advisors, LLC BlackRock Large Cap Value Portfolio Seeks long-term growth of capital. MetLife Advisers, LLC Subadviser: BlackRock Advisors, LLC Frontier Mid Cap Growth Portfolio Seeks maximum capital MetLife Advisers, LLC appreciation. Subadviser: Frontier Capital Management Company, LLC Jennison Growth Portfolio Seeks long-term growth of capital. MetLife Advisers, LLC Subadviser: Jennison Associates LLC Loomis Sayles Small Cap Core Seeks long-term capital growth from MetLife Advisers, LLC Portfolio investments in common stocks or Subadviser: Loomis, Sayles & Company, other equity securities. L.P. Loomis Sayles Small Cap Growth Seeks long-term capital growth. MetLife Advisers, LLC Portfolio Subadviser: Loomis, Sayles & Company, L.P. Met/Artisan Mid Cap Value Portfolio Seeks long-term capital growth. MetLife Advisers, LLC Subadviser: Artisan Partners Limited Partnership Met/Wellington Balanced Portfolio Seeks long-term capital appreciation MetLife Advisers, LLC (formerly WMC Balanced Portfolio) with some current income. Subadviser: Wellington Management Company LLP
A-19
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER --------------------------------------- ---------------------------------------- ------------------------------------------- Met/Wellington Core Equity Seeks to provide a growing stream MetLife Advisers, LLC Opportunities Portfolio (formerly of income over time and, Subadviser: Wellington Management WMC Core Equity Opportunities secondarily, long-term capital Company LLP Portfolio) appreciation and current income. MetLife Asset Allocation 20 Portfolio Seeks a high level of current income, MetLife Advisers, LLC with growth of capital as a secondary objective. MetLife Asset Allocation 40 Portfolio 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 Seeks a balance between a high MetLife Advisers, LLC level of current income and growth of capital, with a greater emphasis on growth of capital. MetLife Asset Allocation 80 Portfolio Seeks growth of capital. MetLife Advisers, LLC MetLife Mid Cap Stock Index Seeks to track the performance of MetLife Advisers, LLC Portfolio the Standard & Poor's MidCap 400(R) Subadviser: MetLife Investment Advisors, Composite Stock Price Index. LLC MetLife Stock Index Portfolio Seeks to track the performance of MetLife Advisers, LLC the Standard & Poor's 500(R) Subadviser: MetLife Investment Advisors, Composite Stock Price Index. LLC MFS(R) Total Return Portfolio Seeks a favorable total return MetLife Advisers, LLC through investment in a diversified Subadviser: Massachusetts Financial portfolio. Services Company MFS(R) Value Portfolio Seeks capital appreciation. MetLife Advisers, LLC Subadviser: Massachusetts Financial Services Company MSCI EAFE(R) Index Portfolio Seeks to track the performance of MetLife Advisers, LLC the MSCI EAFE(R) Index. Subadviser: MetLife Investment Advisors, LLC Neuberger Berman Genesis Portfolio Seeks high total return, consisting MetLife Advisers, LLC principally of capital appreciation. Subadviser: Neuberger Berman Investment Advisers LLC Russell 2000(R) Index Portfolio Seeks to track the performance of MetLife Advisers, LLC the Russell 2000(R) Index. Subadviser: MetLife Investment Advisors, LLC T. Rowe Price Large Cap Growth Seeks long-term growth of capital. MetLife Advisers, LLC Portfolio Subadviser: T. Rowe Price Associates, Inc. T. Rowe Price Small Cap Growth Seeks long-term capital growth. MetLife Advisers, LLC Portfolio Subadviser: T. Rowe Price Associates, Inc. Van Eck Global Natural Resources Seeks long-term capital appreciation MetLife Advisers, LLC Portfolio with income as a secondary Subadviser: Van Eck Associates consideration. Corporation Western Asset Management Seeks to maximize total return MetLife Advisers, LLC Strategic Bond Opportunities consistent with preservation of Subadviser: Western Asset Management Portfolio capital. Company
A-20
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER ---------------------------- --------------------------------------- ------------------------------------- Western Asset Management Seeks to maximize total return MetLife Advisers, LLC U.S. Government Portfolio consistent with preservation of Subadviser: Western Asset Management capital and maintenance of liquidity. Company
FOR MORE INFORMATION REGARDING THE PORTFOLIOS AND THEIR INVESTMENT ADVISERS AND SUBADVISERS, SEE THE PORTFOLIO PROSPECTUSES AND THEIR STATEMENTS OF ADDITIONAL INFORMATION, WHICH YOU CAN OBTAIN BY CALLING 1-800-638-5000. The Portfolios' investment objectives may not be met. The investment objectives and policies of certain Portfolios are similar to the investment objectives and policies of other funds that may be managed by the same investment adviser or sub-adviser. The investment results of the Portfolios may be higher or lower than the results of these funds. There is no assurance, and no representation is made, that the investment results of any of the Portfolios will be comparable to the investment results of any other fund. The Portfolios listed below are managed in a way that is intended to minimize volatility of returns (referred to as a "managed volatility strategy"): o AB Global Dynamic Allocation Portfolio o Allianz Global Investors Dynamic Multi-Asset Plus Portfolio o AQR Global Risk Balanced Portfolio o BlackRock Global Tactical Strategies Portfolio o Invesco Balanced-Risk Allocation Portfolio o JPMorgan Global Active Allocation Portfolio o MetLife Balanced Plus Portfolio o MetLife Multi-Index Targeted Risk Portfolio o PanAgora Global Diversified Risk Portfolio o Pyramis(R) Managed Risk Portfolio o Schroders Global Multi-Asset Portfolio Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors or general market conditions. Bond prices may fluctuate because they move in the opposite direction of interest rates. Foreign investing carries additional risks such as currency and market volatility. A managed volatility strategy is designed to reduce volatility of returns to the above Portfolios from investing in stocks and bonds. This strategy seeks to reduce such volatility by "smoothing" returns, which may result in an Portfolio outperforming the general securities market during periods of flat or negative market performance, and underperforming the general securities market during periods of positive market performance. This means that in periods of high market volatility, this managed volatility strategy could limit your participation in market gains; this may conflict with your investment objectives by limiting your ability to maximize potential growth of your Policy's cash value and, in turn, the value of any guaranteed benefit that is tied to investment performance. Other Portfolios may offer the potential for higher returns. SHARE CLASSES OF THE PORTFOLIOS The Portfolios offer various classes of shares, each of which has a different level of expenses. The prospectuses for the Portfolios may provide information for share classes that are not available through the Policy. When you consult the prospectus for any Portfolio, you should be careful to refer to only the information regarding the class of shares that is available through the Policy. For the Metropolitan Series Fund, we offer Class A shares only; for the Met Investors Series Trust, we offer Class A and Class B shares; and for the American Funds Insurance Series and the Franklin Templeton Variable Insurance Products Trust, we offer Class 2 shares only. A-21 CERTAIN PAYMENTS WE RECEIVE WITH REGARD TO THE PORTFOLIOS An investment adviser (other than our affiliate MetLife Advisers, LLC) or subadviser of a Portfolio, or its affiliates, may make payments to us and/or certain of our affiliates. These payments may be used for a variety of purposes, including payment for expenses for certain administrative, marketing and support services with respect to the Policies and, in our role as intermediary, with respect to the Portfolios. We and our affiliates may profit from these payments. These payments may be derived, in whole or in part, from the advisory fee deducted from Portfolio assets. Policy Owners, through their indirect investment in the Portfolios, bear the costs of these advisory fees (see the Portfolio prospectuses for more information). The amount of the payments we receive is based on a percentage of assets of the Portfolio attributable to the Policies and certain other variable insurance products that we and our affiliates issue. These percentages differ and some advisers or subadvisers (or other affiliates) may pay us more than others. These percentages currently range up to 0.50%. Additionally, an investment adviser (other than our affiliate MetLife Advisers, LLC) or subadviser of a Portfolio or its affiliates may provide us with wholesaling services that assist in the distribution of the Policies and may pay us and/or certain of our affiliates amounts to participate in sales meetings. These amounts may be significant and may provide the adviser or subadviser (or their affiliates) with increased access to persons involved in the distribution of the Policies. We and/or certain of our affiliated insurance companies have joint ownership interests in our affiliated investment adviser MetLife Advisers, LLC, which is formed as a "limited liability company." Our ownership interests in MetLife Advisers, LLC entitle us to profit distributions if the adviser makes a profit with respect to the advisory fees it receives from the Portfolios. We will benefit accordingly from assets allocated to the Portfolios to the extent they result in profits to the adviser. (See "Fee Tables--Annual Portfolio Operating Expenses" for information on the management fees paid by the Portfolios and the Statement of Additional Information for the Portfolios for information on the management fees paid by the adviser to the subadvisers.) Certain Portfolios have adopted a Distribution Plan under Rule 12b-1 of the Investment Company Act of 1940. A Portfolio's 12b-1 Plan, if any, is described in more detail in the Portfolio's prospectus. (See "Fee Tables--Annual Portfolio Expenses" and "Distribution of the Policies.") Any payments we receive pursuant to those 12b-1 Plans are paid to us or our Distributor. Payments under a Portfolio's 12b-1 Plan decrease the Portfolio's investment return. For more specific information on the amounts we may receive on account of your investment in the Portfolios, you may call us toll free at 1-800-638-5000. SELECTION OF THE PORTFOLIOS We select the Portfolios offered through the Policy based on a number of criteria, including asset class coverage, the strength of the adviser's or subadviser's reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor we consider during the selection process is whether the Portfolio's adviser or subadviser is one of our affiliates or whether the Portfolio, its adviser, its subadviser(s), or an affiliate will make payments to us or our affiliates. For additional information on these arrangements, see "Certain Payments We Receive with Regard to the Portfolios" above. In this regard, the profit distributions we receive from our affiliated investment advisers are a component of the total revenue that we consider in configuring the features and investment choices available in the variable insurance products that we and our affiliated insurance companies issue. Since we and our affiliated insurance companies may benefit more from the allocation of assets to Portfolios advised by our affiliates than those that are not, we may be more inclined to offer Portfolios advised by our affiliates in the variable insurance products we issue. We review the Portfolios periodically and may remove a Portfolio or limit its availability to new premium payments and/or transfers of cash value if we determine that the Portfolio no longer meets one or more of the selection criteria, and/or if the Portfolio has not attracted significant allocations from Policy Owners. We may include Portfolios based on recommendations from selling firms. In some cases, the selling firms may receive payments from the Portfolios they recommend and may benefit accordingly from the allocation of cash value to such Portfolios. WE DO NOT PROVIDE ANY INVESTMENT ADVICE AND DO NOT RECOMMEND OR ENDORSE ANY PARTICULAR PORTFOLIO. YOU BEAR THE RISK OF ANY DECLINE IN THE CASH VALUE OF YOUR POLICY RESULTING FROM THE PERFORMANCE OF THE PORTFOLIOS YOU HAVE CHOSEN. A-22 VOTING RIGHTS We own the Portfolio shares held in the Separate Account and have the right to vote those shares at meetings of the Portfolio shareholders. However, to the extent required by Federal securities law, we will give you, as Policy Owner, the right to instruct us how to vote the shares that are attributable to your Policy. We will determine, as of the record date, if you are entitled to give voting instructions and the number of shares to which you have a right of instruction. If we do not receive timely instructions from you, we will vote your shares for, against, or withhold from voting on, any proposition in the same proportion as the shares held in that Investment Division for all policies for which we have received voting instructions. The effect of this proportional voting is that a small number of Policy Owners may control the outcome of a vote. We will vote Portfolio shares held by our general account (or any unregistered separate account for which voting privileges were not extended) in the same proportion as the total of (i) shares for which voting instructions were received and (ii) shares that are voted in proportion to such voting instructions. We may disregard voting instructions for changes in the investment policy, investment adviser or principal underwriter of a Portfolio if required by state insurance law, or if we (i) reasonably disapprove of the changes and (ii) in the case of a change in investment policy or investment adviser, make a good faith determination that the proposed change is prohibited by state authorities or inconsistent with an Investment Division's investment objectives. If we do disregard voting instructions, the next semi-annual report to Policy Owners will include a summary of that action and the reasons for it. RIGHTS RESERVED BY METLIFE We and our affiliates may change the voting procedures and vote Portfolio shares without Policy Owner instructions, if the securities laws change. We also reserve the right: (1) to add Investment Divisions; (2) to combine Investment Divisions; (3) to substitute shares of another registered open-end management investment company, which may have different fees and expenses, for shares of a Portfolio; (4) to substitute or close an Investment Division to allocations of premium payments or cash value or both, and to existing investments or the investment of future premiums, or both, for any class of Policy or Policy Owner, at any time in our sole discretion; (5) to operate the Separate Account as a management investment company under the Investment Company Act of 1940 or in any other form; (6) to deregister the Separate Account under the Investment Company Act of 1940; (7) to combine it with other Separate Accounts; and (8) to transfer assets supporting the Policies from one Investment Division to another or from the Separate Account to other Separate Accounts, or to transfer assets to our general account as permitted by applicable law. We will exercise these rights in accordance with applicable law, including approval of Policy Owners if required. We will notify you if exercise of any of these rights would result in a material change in the Separate Account or its investments. We will not make any changes without receiving any necessary approval of the SEC and applicable state insurance departments. We will notify you of any changes. THE POLICIES PURCHASING A POLICY To purchase a Policy, you must submit a completed application and an initial premium to us at our Designated Office. (See "Receipt of Communications and Payments at MetLife's Designated Office.") The minimum face amount for the base Policy is $50,000 unless we consent to a lower amount. For Policies acquired through a pension or profit sharing plan qualified under Section 401 of the Internal Revenue Code of 1986, the minimum face amount is $25,000. The Policies are available for insureds age 85 or younger. We can provide you with details as to our underwriting standards when you apply for a Policy. We reserve the right to modify our minimum face amount and underwriting requirements at any time. We must receive evidence of insurability that satisfies our underwriting standards before we will issue a Policy. We reserve the right to reject an application for any reason permitted by law. A-23 We offer other variable life insurance policies that have different death benefits, policy features, and optional programs. However, these other policies also have different charges that would affect your Investment Division performance and cash values. To obtain more information about these other policies, including their eligibility requirements, contact our Designated Office or your registered representative. REPLACING EXISTING INSURANCE It may not be in your best interest to surrender, lapse, change, or borrow from existing life insurance policies or annuity contracts in connection with the purchase of the Policy. You should compare your existing insurance and the Policy carefully. You should replace your existing insurance only when you determine that the Policy is better for you. You may have to pay a surrender charge on your existing insurance, and the Policy will impose a new surrender charge period. You should talk to your financial professional or tax adviser to make sure the exchange will be tax-free. If you surrender your existing policy for cash and then buy the Policy, you may have to pay a tax, including possibly a penalty tax, on the surrender. Because we may not issue the Policy until we have received an initial premium from your existing insurance company, the issuance of the Policy may be delayed. POLICY OWNER AND BENEFICIARY The Policy Owner is named in the application but may be changed from time to time. While the insured is living and the Policy is in force, the Policy Owner may exercise all the rights and options described in the Policy, subject to the terms of any beneficiary designation or assignment of the Policy. These rights include selecting and changing the beneficiary, changing the owner, changing the face amount of the Policy and assigning the Policy. At the death of the Policy Owner who is not the insured, his or her estate will become the Policy Owner unless a successor Policy Owner has been named. The Policy Owner's rights (except for rights to payment of benefits) terminate at the death of the insured. The beneficiary is also named in the application. You may change the beneficiary at any time before the death of the insured, unless the beneficiary designation is irrevocable. The beneficiary has no rights under the Policy until the death of the insured and must survive the insured in order to receive the death proceeds. If no named beneficiary survives the insured, we pay proceeds to the Policy Owner. A change of Policy Owner or beneficiary is subject to all payments made and actions taken by us under the Policy before we receive a signed change form. You can contact your registered representative or our Designated Office for the procedure to follow. You may assign (transfer) your rights in the Policy to someone else. An absolute assignment of the Policy is a change of Policy Owner and beneficiary to the assignee. A collateral assignment of the Policy does not change the Policy Owner or beneficiary, but their rights will be subject to the terms of the assignment. Assignments are subject to all payments made and actions taken by us under the Policy before we receive a signed copy of the assignment form. We are not responsible for determining whether or not an assignment is valid. Changing the Policy Owner or assigning the Policy may have tax consequences. (See "Tax Considerations" below.) 24 MONTH CONVERSION RIGHT GENERAL RIGHT. Generally, during the first two Policy years, or in the event of a material change in the investment policy of the Separate Account, you may convert the Policy to fixed benefit coverage by exchanging the Policy for a fixed benefit life insurance policy agreed to by us and issued by us or an affiliate that we name provided that you repay any Policy loans and loan interest, and the Policy has not lapsed. We make the exchange without evidence of insurability. The new policy will have the same base Policy face amount as that being exchanged. The new policy will have the same issue age, risk class and Policy Date as the variable life Policy had. Contact our Designated Office or your registered representative for more specific information about the 24 Month Conversion Right. The exchange may result in a cost or credit to you. On the exchange, you may need to make an immediate premium payment on the new policy in order to keep it in force. A-24 EXCHANGE RIGHT At least once each year you have the option to transfer all of your cash value to the Fixed Account and apply the cash surrender value to a new policy issued by us or an affiliate which provides paid-up insurance. Paid-up insurance is permanent insurance with no further premiums due. The face amount of the new policy of paid-up insurance may be less than the face amount of the Policy. PREMIUMS FLEXIBLE PREMIUMS Subject to the limits described below, you choose the amount and frequency of premium payments. You select a Planned Premium schedule, which consists of a first-year premium amount and an amount for subsequent premium payments. This schedule appears in your Policy. YOUR PLANNED PREMIUMS WILL NOT NECESSARILY KEEP YOUR POLICY IN FORCE. You may skip Planned Premium payments or make additional payments. Additional payments could be subject to underwriting. No payment can be less than $50, except with our consent. You can pay Planned Premiums on an annual, semi-annual or quarterly schedule, or on a monthly schedule if payments are drawn directly from your checking account under our pre-authorized checking arrangement. We will send premium notices for annual, semi-annual or quarterly Planned Premiums. You may make payments by check or through our pre-authorized checking arrangement. You can change your Planned Premium schedule by sending your request to us at our Designated Office. You may not make premium payments on or after the Policy anniversary when the insured reaches age 121, except for premiums required during the grace period. If any payments under the Policy exceed the "7-pay limit" under Federal tax law, your Policy will become a modified endowment contract and you may have more adverse tax consequences with respect to certain distributions than would otherwise be the case if premium payments did not exceed the "7-pay limit." Information about your "7-pay limit" is found in your Policy illustration. If we receive a premium payment 30 days or less before the anniversary of the 7-pay testing period that exceeds the "7-pay limit" and would cause the Policy to become a modified endowment contract, and waiting until the anniversary to apply that payment would prevent the Policy from becoming a modified endowment contract, we may retain the premium payment in a non-interest bearing account and apply the payment to the Policy on the anniversary. If we follow this procedure, we will notify you and give you the option of having the premium payment applied to the Policy before the anniversary. Otherwise, if you make a premium payment that exceeds the "7-pay limit," we will apply the payment to the Policy according to our standard procedures described below and notify you that the Policy has become a modified endowment contract. In addition, if you have selected the guideline premium test, Federal tax law limits the amount of premiums that you can pay under the Policy. You need our consent if, because of tax law requirements, a payment would increase the Policy's death benefit by more than it would increase cash value. We may require evidence of insurability before accepting the payment. We allocate net premiums to your Policy's Investment Divisions as of the date we receive the payments at our Designated Office (or at our Administrative Office in Tampa, Florida), if they are received before the close of regular trading on the New York Stock Exchange. Payments received after that time, or on a day that the New York Stock Exchange is not open, will be allocated to your Policy's Investment Divisions on the next day that the New York Stock Exchange is open. (See "Receipt of Communications and Payments at MetLife's Designated Office.") Under our current processing, we treat any payment received by us as a premium payment unless it is clearly marked as a loan repayment. AMOUNT PROVIDED FOR INVESTMENT UNDER THE POLICY INVESTMENT START DATE. Your initial net premium is credited with Fixed Account interest as of the investment start date. The investment start date is the later of the Policy Date and the date we first receive a premium payment for the Policy at our Designated Office. (See "Receipt of Communications and Payments at MetLife's Designated Office.") A-25 PREMIUM WITH APPLICATION. If you make a premium payment with the application, unless you request otherwise, the Policy Date is the date the policy application is approved. Monthly Deductions begin on the Policy Date. You may only make one premium payment with the application. The minimum amount you must pay is set forth in the application. If we decline an application, we refund the premium payment made. If you make a premium payment with the application, we will cover the insured under a temporary insurance agreement beginning on the later of the date the application is signed or on the date of any required medical examination. (See "Death Benefits.") PREMIUM ON DELIVERY. If you pay the initial premium upon delivery of the Policy, unless you request otherwise, the Policy Date and the investment start date are the date your premium payment is received at our Designated Office. Monthly Deductions begin on the Policy Date. BACKDATING. We may sometimes backdate a Policy, if you request, by assigning a Policy Date earlier than the date the Policy application is approved. You may wish to backdate so that you can obtain lower cost of insurance rates, based on a younger insurance age. For a backdated Policy, you must also pay the minimum premiums due for the period between the Policy Date and the investment start date. As of the investment start date, we allocate the net premiums to the Policy, adjusted for monthly Policy charges. For a backdated Policy, the investment start date is the later of the date the policy application is approved and the date your premium is received at our Designated Office. RIGHT TO EXAMINE POLICY You may cancel the Policy within ten days after you receive it. You may return the Policy to our Designated Office (see "Receipt of Communications and Payments at MetLife's Designated Office") or your registered representative. Insurance coverage ends as soon as you return the Policy (determined by postmark, if the Policy is mailed). If you cancel the Policy, we refund any premiums paid. ALLOCATION OF NET PREMIUMS We allocate your initial net premium to the Fixed Account as of the investment start date. We will hold your initial net premium in the Fixed Account for twenty days, and then we make the allocation among the Investment Divisions as you choose. You may allocate any whole percentage to an Investment Division. You make the initial premium allocation when you apply for a Policy. You can change the allocation of future premiums at any time thereafter. The change will be effective for premiums applied on or after the date when we receive your request. You may request the change by telephone, by written request (which may be telecopied to us) or over the Internet. (See "Receipt of Communications and Payments at MetLife's Designated Office.") When we allocate net premiums to your Policy's Investment Divisions, we convert them into accumulation units of the Investment Divisions. We determine the number of accumulation units by dividing the dollar amount of the net premium by the accumulation unit value. For your initial premium, we use the accumulation unit value on the investment start date. For subsequent premiums, we use the accumulation unit value next determined after receipt of the payment. (See "Cash Value.") RECEIPT OF COMMUNICATIONS AND PAYMENTS AT METLIFE'S DESIGNATED OFFICE We will treat your request for a Policy transaction, or your submission of a payment, as received by us if we receive a request conforming to our administrative procedures or a payment at our Designated Office before the close of regular trading on the New York Stock Exchange on that day (usually 4:00 p.m. Eastern Time). If we receive it after that time, or if the New York Stock Exchange is not open that day, then we will treat it as received on the next day when the New York Stock Exchange is open. These rules apply regardless of the reason we did not receive your request by the close of regular trading on the New York Stock Exchange--even if due to our delay (such as a delay in answering your telephone call). The Designated Office for premium payments is printed on the billing statement we mail to you. If you do not have your billing statement you may call us at 1-800-638-5000 to obtain the address. The address to use depends on whether you purchased the Policy through a registered representative of our affiliate MetLife Securities, Inc. (or through a registered representative of our former affiliate New England Securities Corporation), or through another registered representative. If you purchased the Policy through a registered representative of MetLife Securities, Inc. or New England Securities A-26 Corporation, premium payments should be mailed to MetLife, P.O. Box 371351, Pittsburgh, PA 15250-7351. If your representative was not registered with one of these two affiliates, premium payments should be mailed to MetLife, P.O. Box 371862, Pittsburgh, PA 15250-7862. The Designated Office for other transactions is as follows: Payment Inquiries and MetLife Correspondence P.O. Box 354 Warwick, RI 02887-0354 Beneficiary and Ownership MetLife Changes P.O. Box 313 Warwick, RI 02887-0313 Surrenders, Loans, MetLife Withdrawals and P.O. Box 543 Investment Division Transfers Warwick, RI 02887-0543 Cancellations (Right to Examine Policy MetLife Period) Free Look Unit 500 Schoolhouse Road Johnstown, PA 15904 Death Claims MetLife P.O. Box 353 Warwick, RI 02887-0353 Investment Division Transfers and Other (800) 638-5000 Telephone Transactions and Inquiries
You may request a cash value transfer or reallocation of future premiums by written request (which may be telecopied) to us, by telephoning us or over the Internet (subject to our restrictions on frequent transfers). To request a transfer or reallocation by telephone, you should contact your registered representative or contact us at 1-800-638-5000. To request a transfer over the Internet, you may log on to our website at www.metlife.com. We use reasonable procedures to confirm that instructions communicated by telephone, facsimile or Internet are genuine. Any telephone, facsimile or Internet instructions that we reasonably believe to be genuine are your responsibility, including losses arising from any errors in the communication of instructions. However, because telephone and Internet transactions may be available to anyone who provides certain information about you and your Policy, you should protect that information. We may not be able to verify that you are the person providing telephone or Internet instructions, or that you have authorized any such person to act for you. Telephone, facsimile, and computer systems (including the Internet) may not always be available. Any telephone, facsimile or computer system, whether it is yours, your service provider's, your registered representative's, or ours, can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may delay or prevent our processing of your request. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances. If you are experiencing problems, you should make your request by writing to our Designated Office. If you send your premium payments or transaction requests to an address other than the one we have designated for receipt of such payments or requests, we may return the premium payment to you, or there may be a delay in applying the premium payment or transaction to your Policy. 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 Portfolios 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 A-27 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 Portfolios; impact our ability to calculate unit 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. PAYMENT OF PROCEEDS We ordinarily pay any cash surrender value, loan value or death benefit proceeds from the Investment Divisions within seven days after we receive a request, or satisfactory proof of death of the insured (and any other information we need to pay the death proceeds). (See "Receipt of Communications and Payments at MetLife's Designated Office.") However, we may delay payment (except when a loan is made to pay a premium to us) or transfers from the Investment Divisions: (i) if the New York Stock Exchange is closed (other than customary weekend and holiday closing), or if trading on the New York Stock Exchange is restricted as determined by the SEC; or (ii) if an emergency exists as determined by the SEC, as a result of which disposal of securities is not reasonably practicable or it is not reasonably practicable to determine the value of the net assets of the Separate Account. We may withhold payment of surrender, withdrawal or loan proceeds if any portion of those proceeds would be derived from a Policy Owner's check that has not yet cleared (i.e., that could still be dishonored by your banking institution). We may use telephone, facsimile, Internet or other means of communications to verify that payment from the Policy Owner's check has been or will be collected. We will not delay payment longer than necessary for us to verify that payment has been or will be collected. Policy Owners may avoid the possibility of delay in the disbursement of proceeds coming from a check that has not yet cleared by providing us with a certified check. We will pay the proceeds in one sum, including either by check, by placing the amount in an account that earns interest, by any other method of payment that provides the beneficiary with immediate and full access to the proceeds, or under other settlement options that we may make available. None of these options vary with the investment performance of the Separate Account. More detailed information concerning settlement options is available in the Statement of Information and on request from our Designated Office. We will pay interest on the proceeds as required by applicable state law. Unless otherwise requested and subject to state law, the Policy's death proceeds will generally be paid to the beneficiary through a settlement option called the Total Control Account. The Total Control Account is an interest-bearing account through which the beneficiary has immediate and full access to the proceeds, with unlimited draft writing privileges. We credit interest to the account at a rate that will not be less than a guaranteed minimum annual effective rate. You may also elect to have any Policy surrender proceeds paid into a Total Control Account established for you. Assets backing the Total Control Accounts are maintained in our general account and are subject to the claims of our creditors. We will bear the investment experience of such assets; however, regardless of the investment experience of such assets, the interest credited to the Total Control Account will never fall below the applicable guaranteed minimum annual effective rate. Because we bear the investment experience of the assets backing the Total Control Accounts, we may receive a profit from these assets. The Total Control Account is not insured by the FDIC or any other governmental agency. 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 A-28 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 "Receipt of Communications and Payments at MetLife's Designated Office.") CASH VALUE Your Policy's total cash value includes its cash value in the Separate Account and in the Fixed Account. If you have a Policy loan, the cash value also includes the amount we hold in the Loan Account as a result of the loan. The cash value reflects: -- net premium payments -- the net investment experience of the Policy's Investment Divisions -- interest credited to cash value in the Fixed Account -- interest credited to amounts held in the Loan Account for a Policy loan -- the death benefit option you choose -- Policy charges -- partial withdrawals -- transfers among the Investment Divisions and the Fixed Account. The Policy's total cash value in the Separate Account equals the number of accumulation units credited in each Investment Division multiplied by that Investment Division's accumulation unit value. We convert any premium, interest earned on loan cash value, or cash value allocated to an Investment Division into accumulation units of the Investment Division. Surrenders, partial withdrawals, Policy loans, transfers and charges deducted from the cash value reduce the number of accumulation units credited in an Investment Division. We determine the number of accumulation units by dividing the dollar amount of the transaction by the Investment Division's accumulation unit value next determined following the transaction. (In the case of an initial premium, we use the accumulation unit value on the investment start date.) The accumulation unit value of an Investment Division depends on the net investment experience of its corresponding Portfolio and reflects fees and expenses of the Portfolio. We determine the accumulation unit value as of the close of regular trading on the New York Stock Exchange on each day that the Exchange is open for trading by multiplying the most recent accumulation unit value by the net investment factor ("NIF") for that day (see below). The NIF for an Investment Division reflects: -- the change in net asset value per share of the corresponding Portfolio (as of the close of regular trading on the Exchange) from its last value, -- the amount of dividends or other distributions from the Portfolio since the last determination of net asset value per share, and -- any deductions for taxes that we make from the Separate Account. The NIF can be greater or less than one. DEATH BENEFITS If the insured dies while the Policy is in force, we pay a death benefit to the beneficiary. Coverage under the Policy generally begins when you pay the initial premium. If you make a premium payment with the application, we will cover the insured under a temporary insurance agreement for a limited time that begins on the later of the date we receive the premium payment or the date of any required medical examination. Temporary coverage is not available for proposed insureds who have received medical treatment for, or been diagnosed as having, certain conditions or diseases specified in the temporary insurance agreement. The maximum temporary coverage is the lesser of the amount of insurance applied for and $1,000,000. A-29 DEATH BENEFIT OPTIONS. When you apply for a Policy, you must choose among three death benefit options. If you fail to select a death benefit option in the application, we will seek the required information from you. The Option A death benefit is equal to the face amount of the Policy. The Option A death benefit is fixed, subject to increases required by the Internal Revenue Code of 1986 (the "Code"). The Option B death benefit is equal to the face amount of the Policy, plus the Policy's cash value, if any. The Option B death benefit is also subject to increases required by the Code. The Option C death benefit (available if the insured is age 60 or younger) is equal to the face amount of the Policy plus the Policy's cash value until the insured attains age 65, at which time we will increase the Policy's face amount by the amount of the Policy's cash value and thereafter the death benefit will remain level, at the increased face amount, subject to increases required by the Code. CHOICE OF TAX TEST. The Internal Revenue Code requires the Policy's death benefit to be not less than an amount defined in the Code. As a result, if the cash value grows to certain levels, the death benefit increases to satisfy tax law requirements. When you apply for your Policy, you select which tax test will apply to the death benefit. You will choose between: (1) the guideline premium test, and (2) the cash value accumulation test. The test you choose at issue cannot be changed. Under the GUIDELINE PREMIUM TEST, the amount of premium that can be paid is subject to tax law limits. Additionally, the death benefit will not be less than the cash value times the guideline premium factor. See Appendix A. Under the CASH VALUE ACCUMULATION TEST, the death benefit will not be less than the cash value times the net single premium factor set by the Code. Net single premium factors are based on the age, smoking status, and sex (if not unisex) of the insured at the time of the calculation. Sample net single premium factors appear in Appendix A. If cash value growth in the later Policy years is your main objective, the guideline premium test may be the appropriate choice because it does not require as high a death benefit as the cash value accumulation test, and therefore cost of insurance charges may be lower, once the Policy's death benefit is subject to increases required by the Code. If you select the cash value accumulation test, you can generally make a higher amount of premium payments for any given face amount, and a higher death benefit may result in the long term. If cash value growth in the early Policy years is your main objective, the cash value accumulation test may be the appropriate choice because it allows you to invest more premiums in the Policy for each dollar of death benefit. AGE 121. The death benefit payable under Option A or Option C on or after the insured's attained age 121 will be the greater of: -- 101% of the cash value on the date of death, or -- the face amount of the base Policy on the Policy anniversary at the insured's attained age 121. The death benefit payable under Option B on or after the insured's attained age 121 will be the face amount of the base Policy on the Policy anniversary at the insured's attained age 121, plus the cash value on the date of death. The tax consequences of keeping the Policy in force beyond the insured's attained age 121 are unclear. DEATH PROCEEDS PAYABLE The death proceeds we pay are equal to the death benefit on the date of the insured's death, reduced by any outstanding loan and accrued loan interest on that date. If death occurs during the grace period, we reduce the proceeds by the amount of unpaid Monthly Deductions. (See "Lapse and Reinstatement.") We increase the death proceeds (1) by any rider benefits payable and (2) by any cost of insurance charge made for a period beyond the date of death. Riders that can have an effect on the amount of death proceeds payable are the Accelerated Death Benefit Rider, the Accidental Death Benefit Rider and the Options to Purchase Additional Insurance Coverage Rider. (See "Additional Benefits by Rider.") We may adjust the death proceeds if the insured's age or sex was misstated in the application, if death results from the insured's suicide within two years from the Policy's date of issue, or if a rider limits the death benefit. A-30 SUICIDE. If the insured commits suicide within two years from the date of issue, the death benefit will be limited to premiums paid, less any partial withdrawals, less any loan and loan interest outstanding on the date of death. If the insured commits suicide within two years after the effective date of an increase in face amount, the death benefit for such increase may be limited to the Monthly Deductions for the increase. CHANGE IN DEATH BENEFIT OPTION After the first Policy year you may change your death benefit option, subject to our underwriting rules, by written request to our Designated Office. The change will be effective on the monthly anniversary on or following the date we approve your request. We may require proof of insurability. A change in death benefit option may have tax consequences. If you change from Option A (or from Option C after the insured's attained age 65) to Option B (or to Option C on or before the insured's attained age 60), we reduce the Policy's face amount if necessary so that the death benefit is the same immediately before and after the change. A face amount reduction below $50,000 requires our consent. If we reduce the face amount, we will first reduce any prior increases in face amount that you applied for, in the reverse order in which the increases occurred, then any remaining initial face amount, and then any increase in face amount from a prior change in death benefit option, but not below the Policy minimum. A partial withdrawal of cash value may be necessary to meet Federal tax law limits on the amount of premiums that you can pay into the Policy. A Surrender Charge may apply to a Policy face amount reduction or partial withdrawal that reduces the face amount on a change from Option A (or from Option C after the insured's attained age 65) to Option B (or to Option C on or before the insured's attained age 60). (See "Surrender Charge.") In addition, if the face amount reduction occurs within 12 months after a face amount increase, we will deduct a proportionate part of the Coverage Expense Charges due with respect to the face amount increase for the remainder of the 12-month period. If you change from Option B (or from Option C on or before the insured's attained age 65) to Option A, we increase the Policy's face amount, if necessary, so that the death benefit is the same immediately before and after the change. This increase in face amount is not subject to the Coverage Expense Charge and will not be subject to any Surrender Charge. INCREASE IN FACE AMOUNT You may increase the Policy's face amount. We require satisfactory evidence of insurability, and the insured's attained age must be 85 or less. The minimum amount of increase permitted is $5,000. The increase is effective on the monthly anniversary on or next following our approval of your request. Requests for face amount increases should be submitted to our Designated Office. An increase in face amount may have tax consequences. The face amount increase will have its own Target Premium, as well as its own Surrender Charge, current cost of insurance rates, Coverage Expense Charge and Right to Examine Policy and suicide and contestability periods as if it were a new Policy. (See "Surrender Charge", "Monthly Deduction from Cash Value", "Partial Withdrawal" and "Reduction in Face Amount.") When calculating the monthly cost of insurance charge, we attribute the Policy's cash value first to any remaining initial face amount (including any increase in face amount from a prior change in death benefit option), then to any face amount increases in the order in which they were issued, for purposes of determining the net amount at risk. We reserve the right to (i) restrict certain Policy changes, such as death benefit increases, or (ii) require the issuance of a new Policy in connection with such Policy changes if we deem it administratively necessary or prudent to do so in order to comply with applicable law, including applicable Federal income tax law. REDUCTION IN FACE AMOUNT After the first Policy year, you may reduce the face amount of your Policy without receiving a distribution of any Policy cash value. If you reduce the face amount of your Policy, we deduct any Surrender Charge that applies from the Policy's cash value in proportion to the amount of the face amount reduction. If the face amount of your Policy is reduced in the first year following a face amount increase, we will also deduct a proportionate part of the Coverage Expense Charges due for the remainder of the first year following the face amount increase. A face amount reduction will decrease the Policy's death benefit unless we are increasing the death benefit to satisfy Federal income tax laws, in which case a face amount reduction will not decrease the death benefit unless we deduct a A-31 Surrender Charge from the cash value. A reduction in face amount in this situation may not be advisable. The amount of any face reduction must be at least $5,000, and the face amount remaining after a reduction must meet our minimum face amount requirements for issue, except with our consent. If you choose to reduce your Policy's face amount, unless you request otherwise, we will first decrease any prior increases in base Policy face amount that you applied for, in the reverse order in which the increases occurred, then any remaining initial base Policy face amount, and then any increase in face amount from a prior change in death benefit option. A reduction in face amount reduces the Federal tax law limits on the amount of premiums that you can pay under the Policy under the guideline premium test. In these cases, a portion of the Policy's cash value may have to be paid to you to comply with Federal tax law. A face amount reduction takes effect on the monthly anniversary on or next following the date we receive your request. You can contact your registered representative or the Designated Office for information on face amount reduction procedures. A reduction in the face amount of a Policy may create a modified endowment contract or have other adverse tax consequences. If you are contemplating a reduction in face amount, you should consult your tax adviser regarding the tax consequences of the transaction. (See "Tax Considerations.") SURRENDERS AND PARTIAL WITHDRAWALS SURRENDER You may surrender the Policy for its cash surrender value at any time while the insured is living. We determine the cash surrender value as of the date when we receive the surrender request. (See "Receipt of Communications and Payments at MetLife's Designated Office.") The cash surrender value equals the cash value reduced by any Policy loan and accrued interest and by any applicable Surrender Charge. (See "Surrender Charge.") If you surrender the Policy in the first Policy year (or in the first year following a face amount increase), we will also deduct an amount equal to the remaining first year Coverage Expense Charges. We reserve the right to also deduct an amount equal to the remaining first year Policy Charges. If you surrender the Policy, coverage will terminate on the monthly anniversary on or next following the date of surrender. If the insured dies on or after the surrender date, but before the termination date, we will reverse the surrender and will pay the Policy's death benefit to the beneficiary, but we will deduct from the death proceeds an amount equal to the cash surrender value paid to you. You may apply all or part of the surrender proceeds to a payment option. Once a Policy is surrendered, all coverage and benefits cease and cannot be reinstated. A surrender may result in adverse tax consequences. (See "Tax Considerations" below.) The Policies are designed to be long-term investments. As a result, you should be aware that if you surrender your Policy in the first Policy year, the Surrender Charge is likely to exceed the cash value of your Policy and you will receive no proceeds upon surrender. PARTIAL WITHDRAWAL After the first Policy anniversary you may withdraw a portion of the Policy's cash surrender value. A partial withdrawal reduces the Policy's death benefit and may reduce the Policy's face amount if necessary so that the amount at risk under the Policy will not increase. A partial withdrawal may also reduce rider benefits. The minimum amount of a partial withdrawal request must be $500. We have the right to limit partial withdrawals to no more than 90% of the cash surrender value. In addition, a partial withdrawal will be limited by any restriction that we currently impose on withdrawals from the Fixed Account. (See "The Fixed Account.") Currently, we permit partial withdrawals equal to the lesser of 100% of the Policy's cash surrender value in the Separate Account as of the beginning of the year, or the maximum amount that can be withdrawn without causing the Policy's face amount to fall below the minimum permitted. (However, we may allow the face amount to fall below the minimum if the Policy has been in force for at least 15 years and the insured's attained age is greater than 55.) You may not make a partial withdrawal that would reduce your cash surrender value to less than the amount of two Monthly Deductions. A-32 We have the right to limit partial withdrawals to 12 per Policy year. Currently we do not limit the number of partial withdrawals. We reserve the right to impose a charge of $25 on each partial withdrawal. If a partial withdrawal reduces your Policy's face amount, the amount of the Surrender Charge that will be deducted from your cash value is an amount that is proportional to the amount of the face reduction. The amount deducted will reduce the remaining Surrender Charge payable under the Policy. No Surrender Charge will apply on up to 10% of the cash surrender value withdrawn each year, measured as a percentage of each withdrawal. EXAMPLE. The following example assumes that a Policy Owner withdraws, in the first month of the second Policy year, 20% of the cash surrender value of a Policy. The insured under the Policy is assumed to be the representative insured shown in the fee table on page A-8 of the prospectus. As shown in the fee table, the Surrender Charge for that insured is $14.00 per $1,000 of Policy face amount. The Policy is assumed to have the other characteristics shown below: Face Amount:................. $ 375,000 Death Benefit Option:........ Option A -- Level Cash Value:.................. $ 12,000 Surrender Charge:............ $ -5,250 ($14.00 x $375,000/1,000) ------------------- Cash Surrender Value:........ $ 6,750 x 20% ------------------- Withdrawal Amount:........... $ 1,350
The first 10% of cash surrender value, or $675, can be withdrawn free of Surrender Charge. The remaining $675 withdrawn is subject to a portion of the Policy's Surrender Charge -- based on the ratio that such excess withdrawal amount bears to the Policy's face amount less the Surrender Charge, as shown in the formula below: Withdrawal Amount in Excess of Free Withdrawal ---------------------------------- Surrender Charge x = Surrender Charge On Withdrawal Face Amount less Surrender Charge $675 ---- $5,250 x = $10 $375,000 - $5,250
Because the Policy has a level death benefit, the withdrawal will cause a dollar for dollar reduction in the Policy's face amount, so that the cash value and the face amount will both be reduced by the $1,350 withdrawal and by the $10 Surrender Charge. The effect of the withdrawal on the Policy would be as follows: Face Amount before Withdrawal................ $375,000 Withdrawal.................................. - 1,350 Surrender Charge on Withdrawal.............. - 10 ---------- Face Amount after Withdrawal................. $373,640 Surrender Charge before Withdrawal........... $ 5,250 Surrender Charge on Withdrawal.............. - 10 ---------- Surrender Charge after Withdrawal............ $ 5,240 Cash Value before Withdrawal................. $ 12,000 Withdrawal.................................. - 1,350 Surrender Charge on Withdrawal.............. - 10 ---------- Cash Value after Withdrawal.................. $ 10,640 Surrender Charge after Withdrawal............ - 5,240 ---------- Cash Surrender Value after Withdrawal........ $ 5,400
A-33 Any face amount reduction resulting from a partial withdrawal will reduce the face amount in the following order: any prior increases in base Policy face amount that you applied for, in the reverse order in which the increases occurred; any remaining initial face amount; and then any face amount increases resulting from a change in death benefit option, down to the required minimum. A partial withdrawal reduces the cash value in the Investment Divisions of the Separate Account and the Fixed Account in the same proportion that the cash value in each bears to the Policy's total unloaned cash value. We determine the amount of cash surrender value paid upon a partial withdrawal as of the date when we receive a request. You can contact your registered representative or our Designated Office for information on partial withdrawal procedures. (See "Receipt of Communications and Payments at MetLife's Designated Office.") A reduction in the death benefit as a result of a partial withdrawal may create a modified endowment contract or have other adverse tax consequences. If you are contemplating a partial withdrawal, you should consult your tax adviser regarding the tax consequences. (See "Tax Considerations.") TRANSFERS TRANSFER OPTION You may transfer your Policy's cash value between and among the Investment Divisions and the Fixed Account. Your right to transfer begins 20 days after we apply your initial premium to the Policy. We reserve the right to limit transfers to four per Policy year and to impose a charge of $25 per transfer. Currently we do not limit the number of transfers per Policy year or impose a charge on transfers. We treat all transfer requests made at the same time as a single request. The transfer is effective as of the date when we receive the transfer request, if the request is received before the close of regular trading on the New York Stock Exchange. Transfer requests received after that time, or on a day that the New York Stock Exchange is not open, will be effective on the next day that the New York Stock Exchange is open. (See "Receipt of Communications and Payments at MetLife's Designated Office.") For special rules regarding transfers involving the Fixed Account, see "The Fixed Account". RESTRICTIONS ON 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). 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. -In addition, as described below, we treat all American Funds Insurance Series portfolios ("American Funds portfolios") as Monitored Portfolios. We monitor the following portfolios: American Funds Global Small Capitalization Fund Baillie Gifford International Stock Portfolio Clarion Global Real Estate Portfolio Harris Oakmark International Portfolio Invesco Small Cap Growth Portfolio JPMorgan Small Cap Value Portfolio Loomis Sayles Global Markets Portfolio Loomis Sayles Small Cap Core Portfolio Loomis Sayles Small Cap Growth Portfolio Met/Aberdeen Emerging Markets Equity Portfolio Met/Templeton International Bond Portfolio MFS(R) Research International Portfolio MSCI EAFE(R) Index Portfolio Neuberger Berman Genesis Portfolio Oppenheimer Global Equity Portfolio A-34 Russell 2000(R) Index Portfolio T. Rowe Price Small Cap Growth Portfolio Van Eck Global Natural Resources Portfolio Western Asset Management Strategic Bond Opportunities Portfolio We employ various means to monitor transfer activity, such as examining the frequency and size of transfers into and out of the Monitored Portfolios within given periods of time. For example, we currently monitor transfer activity to determine if, for each category of international, small-cap, and high-yield Portfolios, in a 12-month period there were, (1) six or more transfers involving the given category; (2) cumulative gross transfers involving the given category that exceed the current cash value; and (3) two or more "round-trips" involving any Portfolio in the given category. A round-trip generally is defined as a transfer in followed by a transfer out within the next seven calendar days or a transfer out followed by a transfer in within the next seven calendar days, in either case subject to certain other criteria. WE DO NOT BELIEVE THAT OTHER PORTFOLIOS PRESENT A SIGNIFICANT OPPORTUNITY TO ENGAGE IN ARBITRAGE TRADING AND THEREFORE DO NOT MONITOR TRANSFER ACTIVITY IN THOSE PORTFOLIOS. We may change the Monitored Portfolios at any time without notice in our sole discretion. 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 or other identified Portfolios under that Policy to be submitted either (i) in writing with an original signature or (ii) by telephone prior to 10:00 a.m. 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 an Automated Investment Strategy 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 also may be limited by provisions of the Policy. Accordingly, there is no assurance that we will prevent all transfer activity that may adversely affect Policy Owners and other persons with interests in the Policies. We do not accommodate frequent transfers in any Portfolio 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 products. The omnibus orders reflect the aggregation and netting of multiple A-35 orders from individual owners of variable insurance products and/or individual retirement plan participants. The omnibus nature of these orders may limit the Portfolios in their ability to apply their frequent 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 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 Portfolio 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 portfolio 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 Policy 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 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. In addition to the foregoing, your right to make transfers is subject to limitations or modifications by us if we determine, in our sole opinion, that the exercise of the right by one or more owners with interests in the Investment Divisions is, or would be, to the disadvantage of other owners. Restrictions may be applied in any manner reasonably designed to prevent any use of the transfer right that we consider to be to the disadvantage of other owners. A limitation or modification could be applied to transfers to and from one or more of the Investment Divisions and could include, but is not limited to: (1) the requirement of a minimum time period between each transfer; (2) not accepting a transfer request from a third party acting under authorization on behalf of more than one owner; (3) limiting the dollar amount that may be transferred by an owner between Investment Divisions at any one time; or (4) requiring that a transfer request be provided in writing and signed by the owner. AUTOMATED INVESTMENT STRATEGIES You can choose one of five automated investment strategies. You can change or cancel your choice at any time. EQUITY GENERATORSM. The Equity Generator allows you to transfer the interest earned in the Fixed Account to any one of the Investment Divisions on each monthly anniversary. The interest earned in the month must be at least $20 in order for the transfer to take place. If less than $20 is earned, no transfer will occur, and the interest not transferred cannot be counted towards the next month's minimum. ALLOCATORSM. The Allocator allows you to systematically transfer cash value from the Fixed Account or any one Investment Division (the "source fund") to any number of Investment Divisions. The transfers will take place on each monthly anniversary. You can choose to transfer a specified dollar amount (1) for a specified number of months, or (2) until the source fund is depleted. In either case, you must select a dollar amount that would allow transfers to continue for at least three months. ENHANCED DOLLAR COST AVERAGER. With the Enhanced Dollar Cost Averager, cash value is transferred from the EDCA fixed account to the Investment Divisions monthly. You elect the EDCA at issue and select the total dollar amount of cash value to be transferred. The cash value earmarked for the strategy is held in the EDCA fixed account where it may be credited with a rate of interest that is higher than the Fixed Account's current crediting rate. The amount transferred each month to the Investment Divisions equals the total amount earmarked for the strategy divided by 12. A-36 REBALANCERSM. The Rebalancer allows your Policy's cash value to be automatically redistributed on a quarterly basis among the Investment Divisions and the Fixed Account in accordance with the allocation percentages you have selected. INDEX SELECTORSM. The Index Selector allows you to choose one of five asset allocation models which are designed to correlate to various risk tolerance levels. Based on your selection, we allocate 100% of your cash value among the five Investment Divisions that invest in the five index Portfolios available under the Policy (the Barclays Aggregate Bond Index, MSCI EAFE Index, MetLife Stock Index, MetLife Mid Cap Stock Index and Russell 2000 Index Portfolios) and the Fixed Account. On a quarterly basis, we will redistribute your cash value among these Investment Divisions and the Fixed Account in order to return your cash value to the original allocation percentages. If you change your allocation of net premiums the Index Selector strategy, including the rebalancing feature, will be terminated. We will continue to implement the Index Selector strategy using the percentage allocations of the model that was in effect when you elected the Index Selector strategy. You should consider whether it is appropriate for you to continue using this strategy over time if your risk tolerance, time horizon or financial situation changes. The asset allocation models used in Index Selector may change from time to time. If you are interested in an updated model, please contact your registered representative. You may not elect Index Selector unless you purchase the Policy through a registered representative of one of our affiliated broker-dealers MetLife Securities, Inc. and New England Securities Corporation. However, ask your registered representative how you might design a similar investment strategy using Rebalancer. These automated investment strategies allow you to take advantage of investment fluctuations, but none assures a profit nor protects against a loss. Because certain strategies involve continuous investment in securities regardless of fluctuating price levels of such securities, you should consider your financial ability to continue purchases through periods of fluctuating price levels. We reserve the right to modify or terminate any of the automated investment strategies for any reason, including, without limitation, a change in regulatory requirements applicable to such programs. For more information about the automated investment strategies, please contact your registered representative. LOANS You may borrow from your Policy at any time. The maximum amount you may borrow, calculated as of the date of the loan, is -the greater of 75% of the Policy's cash surrender value or: -- the Policy's cash value, less -- any Policy loan balance, less -- loan interest due to the next Policy anniversary, less -- the most recent Monthly Deduction times the number of months to the next Policy anniversary, less -- any Surrender Charge, plus -- interest credited on the cash value at the guaranteed interest rate to the next Policy anniversary. The minimum loan amount is $500. We make the loan as of the date when we receive a loan request. (See "Receipt of Communications and Payments at MetLife's Designated Office.") You may increase your risk of lapse if you take a loan. You should contact our Designated Office or your registered representative for information on loan procedures. A Policy loan reduces the Policy's cash value in the Investment Divisions and the Fixed Account by the amount of the loan. A loan repayment increases the cash value in the Investment Divisions and the Fixed Account by the amount of the repayment. We attribute Policy loans to the Investment Divisions and the Fixed Account in proportion to the cash value in each. We transfer cash value equal to the amount of the loan from the Investment Divisions and the Fixed Account to the Loan Account (which is part of our general account). A-37 You may repay all or part of your loan at any time while the insured is still alive. When you make a loan repayment, we transfer an amount of cash value equal to the repayment from the Loan Account to the Divisions of the Separate Account and to the Fixed Account in proportion to the cash value in each. (See "Receipt of Communications and Payments at MetLife's Designated Office.") We guarantee that the interest rate charged on Policy loans will not be more than 4.0% per year in Policy years 1-10 and 3.0% per year thereafter. Policy loan interest is due and payable annually on each Policy anniversary. If not paid when due, we add the interest accrued to the loan amount, and we transfer an amount of cash value equal to the unpaid interest from the Investment Divisions and the Fixed Account to the Loan Account in the same manner as a new loan. Cash value in the Loan Account earns interest at not less than 3.0% per year and is transferred on each Policy anniversary to the Investment Divisions and to the Fixed Account in proportion to the cash value in each. The interest credited will also be transferred: (1) when you take a new loan; (2) when you make a full or partial loan repayment; and (3) when the Policy enters the grace period. The amount taken from the Policy's Investment Divisions as a result of a loan does not participate in the investment experience of the Investment Divisions. Therefore, loans can permanently affect the death benefit and cash value of the Policy, even if repaid. In addition, we reduce any proceeds payable under a Policy by the amount of any outstanding loan plus accrued interest. If a Policy loan is outstanding, it may be better to repay the loan than to pay a premium, because the payment is subject to sales and premium tax charges, and the loan repayment is not subject to charges. (See "Deductions from Premiums.") If you want us to treat a payment as a loan repayment, it should be clearly marked as such. A loan that is taken from, or secured by, a Policy may have tax consequences. Although the issue is not free from doubt, we believe that a loan from or secured by a Policy that is not classified as a modified endowment contract should generally not be treated as a taxable distribution. Nevertheless, the tax consequences associated with loans outstanding after the tenth Policy year are uncertain. A tax adviser should be consulted when considering a loan. LAPSE AND REINSTATEMENT LAPSE In general, in any month that your Policy's cash surrender value is not large enough to cover a Monthly Deduction, your Policy will be in default, and may lapse. However, you can prevent your Policy from lapsing, regardless of the amount of your cash surrender value, if the premiums you pay are sufficient to keep the Guaranteed Minimum Death Benefit ("GMDB") in effect. The base Policy offers, at no additional charge, a five-year GMDB, a 20-year GMDB and a GMDB that lasts until the insured's age 65. For an additional charge, you can add a Policy rider at issue that provides a GMDB to age 85 or a GMDB to age 121. All Policies are issued with a GMDB, which guarantees that the Policy will remain in force for at least five years if the required Guaranteed Minimum Death Benefit Monthly Premiums ("GMDB Monthly Premiums") are paid when due. The five-year GMDB Monthly Premium is set forth in your Policy. It is the minimum initial periodic premium you can pay into the Policy. Policies will be issued with the 20-year GMDB or the GMDB to age 65 to eligible Policy Owners who elect either of these GMDBs at issue. The GMDB Monthly Premium varies depending on the guarantee period, the insured's age, sex (except for unisex policies), smoking status and risk class, the Policy's face amount and the death benefit option chosen. The GMDB Monthly Premium may change in the event that any of the following events occur: an increase or decrease in the base Policy face amount; adding, deleting or changing a rider; a change in death benefit option or the insured's risk class; or a misstatement of the insured's age or sex in the Policy application. On each monthly anniversary we test the Policy to determine if the cumulative premiums you have paid, less any partial withdrawals or outstanding loans you have taken, equal or exceed the sum of the GMDB Monthly Premiums due to date for the GMDB you selected. If you meet this test, the GMDB you selected will be in effect. However, even if you have not elected the 20-year GMDB or the GMDB to age 65, if the amount of premiums you pay into the Policy for each Policy month since the A-38 Policy Date is sufficient to meet the requirements of the 20-year GMDB or the GMDB to age 65, in your third annual statement we will notify you that the applicable GMDB is in effect. Conversely, if you have elected the 20-year GMDB or the GMDB to age 65 and your premium payments are insufficient to satisfy the GMDB Monthly Premium requirements, we will notify you that your GMDB will be reduced to the five-year GMDB, the GMDB to age 65, or the 20-year GMDB, as applicable, unless you pay sufficient premiums within 62 days to meet the requirements of the GMDB you originally selected. If, during the first five Policy years, you fail to pay sufficient premiums to keep the five-year GMDB in effect, we will notify you that the GMDB will terminate within 62 days if you fail to pay the required Monthly Premiums. If the guarantee provided by the GMDB terminates, the Policy will continue in force for as long as there is cash surrender value sufficient to pay the Monthly Deduction. If the GMDB terminates, you may reinstate it within nine months provided the Policy remains in force. In order to reinstate the GMDB, you must pay sufficient premiums to satisfy the cumulative premium requirement for the applicable GMDB (five-year, 20-year or to age 65) at the time of reinstatement. If the GMDB is in effect and the Policy's cash surrender value is insufficient to cover the Monthly Deduction, the Policy will not lapse. We will take the Monthly Deduction from the Policy's cash value until the cash value has been reduced to zero. At that point, future Monthly Deductions will be waived for as long as the GMDB is in effect. If the GMDB is not in effect and the cash surrender value is insufficient to pay the Monthly Deduction, the Policy will enter a 62-day grace period during which you will have an opportunity to pay a premium sufficient to keep the Policy in force. The minimum amount you must pay is the lesser of three Monthly Deductions or, if applicable, the amount necessary to reinstate the GMDB. We will tell you the amount due. If you fail to pay this amount before the end of the grace period, the Policy will terminate. Your Policy may also lapse if Policy loans plus accrued interest exceed the Policy's cash value less the Surrender Charge. Your Policy may be protected against lapse in these circumstances if it has been in force for 15 years, the insured has attained age 75, and the other requirements for coverage under the Overloan Protection Rider are met. If your Policy is not so protected, we will notify you that the Policy is going to terminate. The Policy terminates without value unless you make a sufficient payment within the later of 62 days from the monthly anniversary immediately before the date when the excess loan occurs or 31 days after we mail the notice. If the Policy lapses with a loan outstanding, adverse tax consequences may result. (See "Tax Considerations" below.) REINSTATEMENT If your Policy has lapsed, you may reinstate it within three years after the date of lapse if the insured has not attained age 121. If more than three years have passed, you need our consent to reinstate. Reinstatement in all cases requires payment of certain charges described in the Policy and usually requires evidence of insurability that is satisfactory to us. If the Policy lapses and is reinstated during the first five Policy years, only the five-year GMDB will be reinstated. If the Policy lapses after the first five Policy years, the GMDB will terminate and cannot be reinstated. Under no circumstances can the GMDB provided by Policy rider be reinstated following a Policy lapse. If we deducted a Surrender Charge on lapse, we credit it back to the Policy's cash value on reinstatement. The Surrender Charge on the date of reinstatement is the same as it was on the date of lapse. When we determine the Surrender Charge and other charges except cost of insurance and the Policy loan interest rate, we do not count the amount of time that a Policy was lapsed. ADDITIONAL BENEFITS BY RIDER You can add additional benefits to the Policy by rider, subject to our underwriting and issuance standards. These additional benefits usually require an additional charge as part of the Monthly Deduction from cash value. The rider benefits available with the Policy provide fixed benefits that do not vary with the investment experience of the Separate Account. There is no limit on the number of riders you can elect to add to your Policy at issue. However, you may not elect both the Waiver of Monthly Deduction Rider and the Waiver of Specified Premium Rider. The following riders, some of which have been described previously, are available: CHILDREN'S TERM INSURANCE RIDER, which provides term insurance on the lives of children of the insured. A-39 WAIVER OF MONTHLY DEDUCTION RIDER, which provides for waiver of Monthly Deductions in the event of the disability of the insured. WAIVER OF SPECIFIED PREMIUM RIDER, which provides for waiver of a specified amount of monthly premium in the event of the disability of the insured. OPTIONS TO PURCHASE ADDITIONAL INSURANCE COVERAGE RIDER, which allows the Owner to purchase additional coverage on the insured without providing evidence of insurability. ACCELERATION OF DEATH BENEFIT RIDER, which allows a Policy Owner to accelerate payment of all or part of the Policy's death benefit if the insured is terminally ill. In calculating the Accelerated Death Benefit, we assume that death occurs one year from the date of claim and we discount the future death benefit using an interest rate not to exceed the greater of (1) the current yield on 90-day Treasury bills, and (2) the maximum policy loan interest rate under the Policy. The Policy Owner must accelerate at least $50,000 (or 25% of the death benefit, if less), but not more than the greater of $250,000 or 10% of the death benefit. As an example, if a Policy Owner accelerated the death benefit of a Policy with a face amount of $1,000,000, the maximum amount that could be accelerated would be $250,000. Assuming an interest rate of 6%, the present value of the benefit would be $235,849. If we exercised our reserved right to impose a $150 processing fee, the benefit payable would be $235,849 less $150, or $235,699. GUARANTEED SURVIVOR INCOME BENEFIT RIDER, which provides the beneficiary with the option of exchanging the Policy's death benefit for enhanced monthly income payments for life. ACCIDENTAL DEATH BENEFIT RIDER, which provides for the payment of an additional death benefit in the event of the insured's death by accident. GUARANTEED MINIMUM DEATH BENEFIT RIDER, which provides for a guaranteed death benefit until the insured's age 85 or the insured's age 121. OVERLOAN PROTECTION RIDER, which provides protection from Policy lapse due to an excess Policy loan. Riders in addition to those listed above may be made available. You should consult your registered representative regarding the availability of riders. THE FIXED ACCOUNT You may allocate net premiums and transfer cash value to the Fixed Account, which is part of MetLife's general account. Because of exemptive and exclusionary provisions in the Federal securities laws, interests in the Fixed Account are not registered under the Securities Act of 1933. Neither the Fixed Account nor the general account is registered as an investment company under the Investment Company Act of 1940. Therefore, neither the Fixed Account, the general account nor any interests therein are generally subject to the provisions of these Acts, and the SEC does not review Fixed Account disclosure. This disclosure may, however, be subject to certain provisions of the Federal securities laws on the accuracy and completeness of prospectuses. GENERAL DESCRIPTION Our general account includes all of our assets except assets in the Separate Account or in our other separate accounts. We decide how to invest our general account assets. Fixed Account allocations do not share in the actual investment experience of the general account. Instead, we guarantee that the Fixed Account will credit interest at an annual effective rate of at least 3%. We may or may not credit interest at a higher rate. We declare the current interest rate for the Fixed Account periodically. The Fixed Account earns interest daily. VALUES AND BENEFITS Cash value in the Fixed Account increases from net premiums allocated and transfers to the Fixed Account and Fixed Account interest, and decreases from loans, partial withdrawals made from the Fixed Account, charges and transfers from the Fixed Account. We deduct charges from the Fixed Account and the Policy's Investment Divisions in proportion to the amount of cash value in each. (See "Monthly Deduction from Cash Value.") A Policy's total cash value includes cash value in the Separate Account, the Fixed Account, and any cash value held in the Loan Account due to a Policy loan. A-40 Cash value in the Fixed Account is included in the calculation of the Policy's death benefit in the same manner as the cash value in the Separate Account. (See "Death Benefits.") POLICY TRANSACTIONS Except as described below, the Fixed Account has the same rights and limitations regarding premium allocations, transfers, loans, surrenders and partial withdrawals as the Separate Account. The following special rules apply to the Fixed Account. Twenty days after we apply the initial premium to the Policy you may transfer cash value from the Fixed Account to the Separate Account. The amount of any transfer must be at least $50, unless the balance remaining would be less than $50, in which case you may withdraw or transfer the entire Fixed Account cash value. After the first Policy year you may withdraw cash value from the Fixed Account. The amount of any partial withdrawal, net of applicable Surrender Charges, must be at least $500. No amount may be withdrawn from the Fixed Account that would result in there being insufficient cash value to meet any Surrender Charges that would be payable immediately following the withdrawal upon the surrender of the remaining cash value in the Policy. We reserve the right to only allow transfers and withdrawals from the Fixed Account during the 30-day period that follows the Policy anniversary. The total amount of transfers and withdrawals in a Policy year may not exceed the greater of (a) 25% of the Policy's cash surrender value in the Fixed Account at the beginning of the Policy year, (b) the previous Policy year's maximum allowable withdrawal amount, and (c) 100% of the cash surrender value in the Fixed Account if withdrawing the greater of (a) and (b) would result in a Fixed Account balance of $50 or less. We are not currently imposing the maximum limit on transfers and withdrawals from the Fixed Account, but we reserve the right to do so. There is currently no transaction charge for partial withdrawals or transfers. We reserve the right to limit partial withdrawals to 12 and transfers to four in a Policy year and to impose a charge of $25 for each partial withdrawal or transfer. We may revoke or modify the privilege of transferring amounts to the Fixed Account at any time. We may also modify the privilege of transferring amounts from the Fixed Account at any time. Partial withdrawals will result in the imposition of any applicable Surrender Charges. Unless you request otherwise, a Policy loan reduces the Policy's cash value in the Investment Divisions and the Fixed Account proportionately. We allocate all loan repayments in the same proportion that the cash value in each Investment Division and the Fixed Account bears to the Policy's total unloaned cash value. The amount transferred from the Policy's Investment Divisions and the Fixed Account as a result of a loan earns interest at an effective rate of at least 3% per year, which we credit to the Policy's cash value in the Investment Divisions and the Fixed Account in proportion to the Policy's cash value in each on the day it is credited. We take partial withdrawals from the Policy's Investment Divisions and the Fixed Account in the same proportion that the cash value in each account bears to the Policy's total unloaned cash value. We can delay transfers, surrenders, withdrawals and Policy loans from the Fixed Account for up to six months. We will not delay loans to pay premiums on policies issued by us. CHARGES We make certain charges and deductions under the Policy. These charges and deductions compensate us for: (1) services and benefits we provide; (2) costs and expenses we incur; and (3) risks we assume. Services and benefits we provide: 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 Costs and expenses we incur: A-41 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 insurance charges we may deduct are insufficient to meet our actual claims because the insureds die sooner than we estimate o that the cost of providing the services and benefits under the Policies exceed the charges we deduct The amount of a charge may not necessarily correspond to the costs of the services or benefits that are implied by the name of the charge or that are associated with the particular Policy. For example, the sales charge and Surrender Charge may not fully cover all of our sales and distribution expenses, and we may use proceeds from other charges, including the Mortality and Expense Risk Charge and the cost of insurance charge, to help cover those expenses. We may profit from certain Policy charges. DEDUCTIONS FROM PREMIUMS Prior to the allocation of a premium, we deduct a percentage of your premium payment. We credit the remaining amount (the net premium) to the Investment Divisions and the Fixed Account according to your allocation instructions. The deductions we make from each premium payment are the sales charge, the premium tax charge, and the federal tax charge. SALES CHARGE. We deduct a 2.25% sales charge from each premium payment. Currently, the sales charge is only deducted from premium payments that are less than or equal to the Target Premium. PREMIUM TAX CHARGE. We deduct 2.0% from each premium for premium taxes and administrative expenses. Premium taxes vary from state to state, but we deduct a flat 2.0%, which is based on an average of such taxes. Administrative expenses covered by this charge include those related to premium tax and certain other state filings. FEDERAL TAX CHARGE. We deduct 1.25% from each premium for our Federal income tax liability related to premiums. -------------------------------------------------------------------------------- EXAMPLE: The following chart shows the net amount that we would allocate to the Policy assuming a premium payment of $4,000 (and a Target Premium of $2,000).
NET PREMIUM PREMIUM --------- --------- $4,000 $4,000 -175 (2.25% x $2,000) + (3.25% x $4,000) = total sales, premium tax and Federal tax charges ------ $3,825 Net Premium
-------------------------------------------------------------------------------- SURRENDER CHARGE If, during the first ten Policy years, or during the first ten Policy years following a face amount increase, you surrender or lapse your Policy, reduce the face amount, or make a partial withdrawal or change in death benefit option that reduces the face amount, then we will deduct a Surrender Charge from the cash value. The maximum Surrender Charge is shown in your Policy. No Surrender Charge will apply on up to 10% of the cash surrender value withdrawn each year. The Surrender Charge depends on the face amount of your Policy and the issue age, sex (except for unisex policies), risk class and smoker status of the insured. The Surrender Charge remains level for an initial period following Policy issue (or following an increase in face amount), and then declines proportionately, on a monthly basis, until the last month of the tenth A-42 Policy year (or the tenth year following the face amount increase). The initial period during which the Surrender Charge remains level before it begins to decline will be at least one year, but no more than three years, and will be specified in your Policy. The table below shows the maximum Surrender Charge that could apply under any Policy during the first Policy year (or the first year following a face amount increase) and in the last month of each Policy year thereafter. If your Policy is subject to the maximum Surrender Charge shown in the table for Policy Year 1, your Surrender Charge will begin to decline in the second Policy year (or the second year following the face amount increase), so that it will not exceed, in the last month of the second Policy year, the amount shown in the table for Policy Year 2. If your Policy is not subject to the maximum Surrender Charge in the first Policy year, then your Surrender Charge will remain level beyond the first Policy year (or the first year following a face amount increase), but in no event for more than three years.
FOR POLICIES WHICH THE MAXIMUM ARE SURRENDERED, SURRENDER CHARGE LAPSED OR PER $1,000 OF BASE REDUCED DURING POLICY FACE AMOUNT -------------------- ------------------- Entire Policy Year 1 $38.25 Last Month of Policy Year 2 35.81 3 32.56 4 31.74 5 29.84 6 27.13 7 24.42 8 18.99 9 9.50 10 0.00
In the case of a face amount reduction or a partial withdrawal or change in death benefit option that results in a face amount reduction, we deduct any Surrender Charge that applies from the Policy's remaining cash value in an amount that is proportional to the amount of the Policy's face amount surrendered. (See "Reduction in Face Amount," "Partial Withdrawal" and "Change in Death Benefit Option.") If you surrender the Policy (or a face amount increase) in the first Policy year (or in the first year following the face amount increase) we will deduct from the surrender proceeds an amount equal to the remaining first year Coverage Expense Charges. We reserve the right to also deduct an amount equal to the remaining first year Policy Charges. If you reduce the face amount of your Policy in the first year following a face amount increase, we will deduct from your cash value a proportionate amount of the remaining first year Coverage Expense Charges, based on the ratio of the face amount reduction to the Policy's original face amount. The Surrender Charge reduces the Policy's cash value in the Investment Divisions and the Fixed Account in proportion to the amount of the Policy's cash value in each. However, if you designate the accounts from which a partial withdrawal is to be taken, the charge will be deducted proportionately from the cash value of the designated accounts. PARTIAL WITHDRAWAL CHARGE We reserve the right to impose a $25 processing charge on each partial withdrawal. If imposed, this charge would compensate us for administrative costs in generating the withdrawn payment and in making all calculations that may be required because of the partial withdrawal. We are currently waiving this charge. TRANSFER CHARGE We reserve the right to impose a $25 processing charge on each transfer between Investment Divisions or between an Investment Division and the Fixed Account to compensate us for the costs of processing these transfers. If imposed, transfers under one of our Automated Investment Strategies would not count as transfers for the purpose of assessing this charge. We are currently waiving this charge. A-43 ILLUSTRATION OF BENEFITS CHARGE We reserve the right to impose a $25 charge for each illustration of Policy benefits that you request in excess of one per year. If imposed, this charge would compensate us for the cost of preparing and delivering the illustration to you. We are currently waiving this charge. MONTHLY DEDUCTION FROM CASH VALUE On the first day of each Policy month, starting with the Policy Date, we deduct the "Monthly Deduction" from your cash value. -- If your Policy is protected against lapse by a Guaranteed Minimum Death Benefit, we make the Monthly Deduction each month regardless of the amount of your cash surrender value. If your cash surrender value is insufficient to pay the Monthly Deduction in any month, your Policy will not lapse, but the shortfall will, in effect, cause your cash surrender value to have a negative balance. (See "Lapse and Reinstatement.") -- If a Guaranteed Minimum Death Benefit is not in effect, and the cash surrender value is not large enough to cover the entire Monthly Deduction, we will make the deduction to the extent cash value is available, but the Policy will be in default, and it may lapse. (See "Lapse and Reinstatement.") There is no Monthly Deduction on or after the Policy anniversary when the insured attains age 121. The Monthly Deduction reduces the cash value in each Investment Division and in the Fixed Account (and, if applicable, in the EDCA account) in proportion to the cash value in each. However, you may request that we charge the Monthly Deduction to a specific Investment Division or to the Fixed Account. If, in any month, the designated account has insufficient cash value to cover the Monthly Deduction, we will first reduce the designated account cash value to zero and then charge the remaining Monthly Deduction to all Investment Divisions and, if applicable, the Fixed Account, in proportion to the cash value in each. The Monthly Deduction includes the following charges: POLICY CHARGE. The Policy Charge is equal to $15.00 per month in the first Policy year and $8.00 per month thereafter. The Policy Charge is $12 per month in the first Policy year and $9 per month thereafter for Policies issued with face amounts of less than $50,000. No Policy Charge applies to Policies issued with face amounts equal to or greater than $250,000. The Policy Charge compensates us for administrative costs such as record keeping, processing death benefit claims and policy changes, preparing and mailing reports, and overhead costs. COVERAGE EXPENSE CHARGE. We impose a monthly charge for the costs of underwriting, issuing (including sales commissions), and administering the Policy or the face amount increase. The monthly charge is imposed on the base Policy face amount and varies by the base Policy's face amount and duration, and by the insured's issue age, smoking status, risk class (at the time the Policy or a face amount increase is issued), and, except for unisex Policies, the insured's sex. Currently, we only impose the Coverage Expense Charge during the first eight Policy years, and during the first eight years following a requested face amount increase. MONTHLY CHARGES FOR THE COST OF INSURANCE. This charge covers the cost of providing insurance protection under your Policy. The cost of insurance charge for a Policy month is equal to the "amount at risk" under the Policy, multiplied by the cost of insurance rate for that Policy month. We determine the amount at risk on the first day of the Policy month. The amount at risk is the amount by which the death benefit (generally discounted at the monthly equivalent of 3% per year) exceeds the Policy's cash value. The amount at risk is affected by investment performance, loans, premium payments, fees and charges, partial withdrawals and face amount reductions. The guaranteed cost of insurance rates for a Policy depend on the insured's -- smoking status -- risk class -- attained age -- sex (if the Policy is sex-based). A-44 The current cost of insurance rates will depend on the above factors, plus -- the insured's age at issue (and at the time of any face amount increase) -- the Policy year (and the year of any face amount increase) -- the Policy's face amount. We guarantee that the rates for underwritten Policies will not be higher than rates based on -- the 2001 Commissioners Standard Ordinary Mortality Tables (the "2001 CSO Tables") with smoker/ nonsmoker modifications, for Policies issued on non-juvenile insureds (age 18 and above at issue), adjusted for substandard ratings or flat extras, if applicable -- the 2001 CSO Aggregate Tables (Nonsmoker Tables for attained age 16 and older), for Policies issued on juvenile insureds (below age 18 at issue). The actual rates we use may be lower than the maximum rates, depending on our expectations about our future mortality and expense experience, lapse rates, taxes and investment earnings. We review the adequacy of our cost of insurance rates and other non-guaranteed charges periodically and may adjust them. Any change will apply prospectively. The risk classes we use are -- for Policies issued on non-juvenile insureds: preferred smoker, standard smoker, rated smoker, elite nonsmoker, preferred nonsmoker, standard nonsmoker, and rated nonsmoker. -- for Policies issued on juvenile insureds: standard and rated (with our consent). Rated Policies have higher cost of insurance deductions. We base the guaranteed maximum mortality charges for substandard ratings on multiples of the 2001 CSO Tables. The following standard or better smoker and non-smoker classes are available for underwritten Policies: -- elite nonsmoker for Policies with face amounts of $250,000 or more where the issue age is 18 through 80; -- preferred smoker and preferred nonsmoker for Policies with face amounts of $100,000 or more where the issue age is 18 through 80; -- standard smoker and standard nonsmoker for Policies with face amounts of $50,000 or more ($25,000 for pension plans) where the issue age is 18 through 85. The elite nonsmoker class generally offers the best current cost of insurance rates, and the preferred classes generally offer better current cost of insurance rates than the standard classes. Cost of insurance rates are generally lower for nonsmokers than for smokers and generally lower for females than for males. Within a given risk class, cost of insurance rates are generally lower for insureds with lower issue ages. For Policies sold in connection with some employee benefit plans, cost of insurance rates (and Policy values and benefits) do not vary based on the sex of the insured. We may offer Policies on a guaranteed issue basis to certain group or sponsored arrangements. We issue these Policies up to predetermined face amount limits. Because we issue these Policies based on minimal underwriting information, they may present a greater mortality cost to us than Policies issued in a standard class. Therefore, these Policies will be issued with a risk class of standard smoker or standard nonsmoker, but will be subject to an additional flat extra charge. However, the overall cost of insurance deduction for a Policy issued on a guaranteed issue basis will not exceed the maximum cost of insurance deduction imposed under fully underwritten Policies. CHARGES FOR ADDITIONAL BENEFITS. We charge monthly for the cost of any additional rider benefits (other than for the Acceleration of Death Benefit and the Overloan Protection Riders, for which we deduct a one-time fee at the time of exercise) as described in the rider form. MORTALITY AND EXPENSE RISK CHARGE. We impose a monthly charge for our mortality and expense risks. A-45 The mortality risk we assume is that insureds may live for shorter periods of time than we estimated. The expense risk is that our costs of issuing and administering the Policies may be more than we estimated. The charge is imposed on the cash value in the Separate Account, but the rate we charge is determined by the cash value in the Separate Account and the Fixed Account. The rate is determined on each monthly anniversary and varies based on the Policy year and the Policy's net cash value in relation to the Policy's Target Premium. As shown in the table below, the rate declines as the Policy's net cash value and the Policy years increase. The charge is guaranteed not to exceed 0.80% in Policy years 1-10, 0.35% in Policy years 11-19, 0.20% in Policy years 20-29 and 0.05% thereafter.
CHARGE APPLIED TO CASH VALUE IN POLICY YEAR NET CASH VALUE SEPARATE ACCOUNT ------------- ----------------------------- ----------------- < 5 target premiums 0.60% 5 but < 10 target premiums 0.55% 1 - 10 10 but < 20 target premiums 0.30% 20 target premiums or more 0.15% ---- ----------------------------- ---- < 5 target premiums 0.35% 5 but < 10 target premiums 0.30% 11 - 19 10 but < 20 target premiums 0.15% 20 target premiums or more 0.10% ---- ----------------------------- ---- < 5 target premiums 0.20% 5 but < 10 target premiums 0.15% 20 - 29 10 but < 20 target premiums 0.10% 20 target premiums or more 0.05% ---- ----------------------------- ---- 30+ 0.05%
LOAN INTEREST SPREAD We charge you interest on a loan at a maximum effective rate of 4.0% per year in Policy years 1-10 and 3.0% per year thereafter, compounded daily. We also credit interest on the amount we take from the Policy's accounts as a result of the loan at a minimum annual effective rate of 3% per year, compounded daily. As a result, the loan interest spread will never be more than 1.00%. CHARGES AGAINST THE PORTFOLIOS AND THE INVESTMENT DIVISIONS OF THE SEPARATE ACCOUNT CHARGES FOR INCOME TAXES. We currently do not charge the Separate Account for income taxes, but in the future we may make such a charge, if appropriate. We have the right to make a charge for any taxes imposed on the Policies in the future. (See "MetLife's Income Taxes".) PORTFOLIO EXPENSES. There are daily charges against the Portfolio assets for investment advisory services and fund operating expenses. These are described in the Fee Table as well as in the Portfolio prospectuses. TAX CONSIDERATIONS INTRODUCTION The following summary provides a general description of the Federal income tax considerations associated with the Policy and does not purport to be complete or to cover all tax situations. The summary does not address state, local or foreign tax issues related to the Policy. This discussion is not intended as tax advice. Counsel or other competent tax advisers should be consulted for more complete information. This discussion is based upon our understanding of the present Federal income tax laws. No representation is made as to the likelihood of continuation of the present Federal income tax laws or as to how they may be interpreted by the Internal Revenue Service. It should be further understood that the following discussion is not exhaustive and that special rules not described herein may be applicable in certain situations. A-46 TAX STATUS OF THE POLICY In order to qualify as a life insurance contract for Federal income tax purposes and to receive the tax treatment normally accorded life insurance contracts under Federal tax law, a Policy must satisfy certain requirements which are set forth in the Internal Revenue Code. Guidance as to how these requirements are to be applied is limited. Nevertheless, we anticipate that the Policy should be deemed to be a life insurance contract under Federal tax law. However, if your Policy is issued on a substandard basis, there is additional uncertainty. Moreover, if you elect the Acceleration of Death Benefit Rider, the tax qualification consequences associated with continuing the Policy after a distribution is made under the rider are unclear. We may take appropriate steps to bring the Policy into compliance with applicable requirements, and we reserve the right to restrict Policy transactions in order to do so. The insurance proceeds payable on the death of the insured will never be less than the minimum amount required for the Policy to be treated as life insurance under section 7702 of the Internal Revenue Code, as in effect on the date the Policy was issued. In some circumstances, owners of variable contracts who retain excessive control over the investment of the underlying separate account assets may be treated as the owners of those assets. Although published guidance in this area does not address certain aspects of the Policies, we believe that the Owner of a Policy should not be treated as the owner of the Separate Account assets. We reserve the right to modify the Policies to bring them into conformity with applicable standards should such modification be necessary to prevent Owners of the Policies from being treated as the owners of the underlying Separate Account assets. In addition, the Code requires that the investments of the Separate Account be "adequately diversified" in order for the Policies to be treated as life insurance contracts for Federal income tax purposes. It is intended that the Separate Account, through the Portfolios, will satisfy these diversification requirements. If Portfolio shares are sold directly to either non-qualified plans or to tax-qualified retirement plans that later lose their tax qualified status, there could be adverse consequences under the diversification rules. The following discussion assumes that the Policy will qualify as a life insurance contract for Federal income tax purposes. TAX TREATMENT OF POLICY BENEFITS IN GENERAL. The death benefit under a Policy should generally be excludible from the gross income of the beneficiary for Federal income tax purposes. In the case of employer-owned life insurance as defined in Section 101(j), the amount of the death benefit excludable from gross income is limited to premiums paid unless the Policy falls within certain specified exceptions and a notice and consent requirement is satisfied before the Policy is issued. Certain specified exceptions are based on the status of an employee as highly compensated, 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. Federal, state and local estate, inheritance and other tax consequences of ownership, or receipt of Policy proceeds, depend on the circumstances of each Policy Owner or beneficiary. A tax adviser should be consulted on these circumstances. Generally, the Policy Owner will not be deemed to be in constructive receipt of the Policy cash value until there is a distribution or a deemed distribution. When distributions from a Policy occur, or when loans are taken from or secured by a Policy, the tax consequences depend on whether the Policy is classified as a modified endowment contract ("MEC"). MODIFIED ENDOWMENT CONTRACTS. Under the Internal Revenue Code, certain life insurance contracts are classified as modified endowment contracts, with less favorable income tax treatment than other life insurance contracts. Due to the Policy's flexibility with respect to premium payments and benefits, each Policy's circumstances will determine whether the Policy is a MEC. In general a Policy will be classified as a modified endowment contract if the amount of premiums paid into the Policy causes the Policy to fail the "7-pay test." A Policy will fail the 7-pay test if at any time in the first seven Policy years, A-47 or seven years after a material change, the amount paid into the Policy exceeds the sum of the level premiums that would have been paid at that point under a Policy that provided for paid-up future benefits after the payment of seven level annual payments. If there is a reduction in the benefits under the Policy during a 7-pay testing period, for example, as a result of a partial withdrawal, the 7-pay test will have to be reapplied as if the Policy had originally been issued at the reduced face amount. If there is a "material change" in the Policy's benefits or other terms, even after the first seven Policy years, the Policy may have to be retested as if it were a newly issued Policy. A material change can occur, for example, when there is an increase in the death benefit or the receipt of an unnecessary premium. Unnecessary premiums are premiums paid into the Policy which are not needed in order to provide a death benefit equal to the lowest death benefit that was payable in the most recent 7-pay testing period. To prevent your Policy from becoming a modified endowment contract, it may be necessary to limit premium payments or to limit reductions in benefits. A current or prospective Policy Owner should consult a tax adviser to determine whether a Policy transaction will cause the Policy to be classified as a modified endowment contract. The IRS has promulgated a procedure for the correction of inadvertent modified endowment contracts that may provide relief in limited circumstances. DISTRIBUTIONS OTHER THAN DEATH BENEFITS FROM MODIFIED ENDOWMENT CONTRACTS. Policies classified as modified endowment contracts are subject to the following tax rules: (1) All distributions other than death benefits, including distributions upon surrender and withdrawals, from a modified endowment contract will be treated first as distributions of gain taxable as ordinary income and as tax-free recovery of the Policy Owner's investment in the Policy only after all gain has been distributed. (2) Loans taken from or secured by a Policy classified as a modified endowment contract are treated as distributions and taxed accordingly. (3) A 10 percent additional income tax is imposed on the amount subject to tax except where the distribution or loan is made when the Policy Owner has attained age 59 1/2 or is disabled, or where the distribution is part of a series of substantially equal periodic payments for the life (or life expectancy) of the Policy Owner or the joint lives (or joint life expectancies) of the Policy Owner and the Policy Owner's beneficiary. The foregoing exceptions generally do not apply to a Policy Owner which is a non-natural person, such as a corporation. If a Policy becomes a modified endowment contract, distributions will be taxed as distributions from a modified endowment contract. In addition, distributions from a Policy within two years before it becomes a modified endowment contract will be taxed in this manner. This means that a distribution made from a Policy that is not a modified endowment contract could later become taxable as a distribution from a modified endowment contract. DISTRIBUTIONS OTHER THAN DEATH BENEFITS FROM POLICIES THAT ARE NOT MODIFIED ENDOWMENT CONTRACTS. Distributions other than death benefits from a Policy that is not classified as a modified endowment contract are generally treated first as a non-taxable recovery of the Policy Owner's investment in the Policy, and only after the recovery of all investment in the Policy as gain taxable as ordinary income. However, 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 from or secured by a Policy that is not a modified endowment contract are generally not treated as distributions. However, the tax consequences associated with Policy loans that are outstanding after the first ten Policy years are less clear and a tax adviser should be consulted about such loans. Finally, neither distributions from nor loans from or secured by a Policy that is not a modified endowment contract are subject to the 10 percent additional income tax. INVESTMENT IN THE POLICY. Your investment in the Policy is generally your aggregate premiums. When a distribution is taken from the Policy, your investment in the Policy is reduced by the amount of the distribution that is tax-free. A-48 POLICY LOANS. In general, interest on a Policy loan will not be deductible. If a Policy loan is outstanding when a Policy is canceled or lapses, the amount of the outstanding indebtedness will be added to the amount distributed and will be taxed accordingly. A loan may also be taxed when a Policy is exchanged. Before taking out a Policy loan, you should consult a tax adviser as to the tax consequences. MULTIPLE POLICIES. All modified endowment contracts that are issued by MetLife (or its affiliates) to the same Policy Owner during any calendar year are treated as one modified endowment contract for purposes of determining the amount includible in the Policy Owner's income when a taxable distribution occurs. WITHHOLDING. To the extent that Policy distributions are taxable, they are generally subject to withholding for the recipient's Federal income tax liability. Recipients can generally elect, however, not to have tax withheld from distributions. LIFE INSURANCE PURCHASES BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS. Policy Owners that are not U.S. citizens or residents will generally be subject to U.S. Federal withholding tax on taxable distributions from life insurance policies at a 30% rate, unless a lower treaty rate applies. In addition, Policy Owners may be subject to state and/or municipal taxes and taxes that may be imposed by the Policy Owner's country of citizenship or residence. Prospective purchasers are advised to consult with a qualified tax adviser regarding taxation with respect to a purchase of the Policy. ACCELERATION OF DEATH BENEFIT RIDER. Payments received under the Acceleration of Death Benefit Rider should be excludable from the gross income of the Policy Owner except in certain business contexts. However, you should consult a qualified tax adviser about the consequences of adding this rider to a Policy or requesting payment under this rider. OVERLOAN PROTECTION RIDER. If you are contemplating the purchase of the Policy with the Overloan Protection Rider, you should be aware that the tax consequences of the Overloan Protection Rider have not been ruled on by the IRS or the courts. It is possible that the IRS could assert that the outstanding loan balance should be treated as a taxable distribution when the Overloan Protection Rider causes the Policy to be converted into a fixed Policy. You should consult a tax adviser as to the tax risks associated with the Overloan Protection Rider. ESTATE, GIFT AND GENERATION-SKIPPING TRANSFER TAXES. The transfer of the Policy or the designation of a beneficiary may have Federal, state, and/or local transfer and inheritance tax consequences, including the imposition 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 insured possessed incidents of ownership in the Policy at the time of death, or if the insured made a gift transfer of the Policy within three years of death. 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. Moreover, under certain circumstances, the Internal Revenue Code may impose a "generation-skipping transfer tax" when all or part of a life insurance policy is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Policy Owner. Regulations issued under the Internal Revenue Code may require us to deduct the tax from your Policy, or from any applicable payment, and pay it directly to the IRS. Qualified tax advisers should be consulted concerning the estate and gift tax consequences of Policy ownership and distributions under Federal, state and local law. The individual situation of each Policy Owner or beneficiary will determine the extent, if any, to which Federal, state, and local transfer and inheritance taxes may be imposed and how ownership or receipt of Policy proceeds will be treated for purposes of Federal, state and local estate, inheritance, generation-skipping and other taxes. 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. OTHER POLICY OWNER TAX MATTERS. The application of certain tax rules after age 100 is not entirely clear. The tax consequences of continuing the Policy beyond the insured's attained age 121 are also unclear. You should consult a tax adviser if you intend to keep the Policy in force beyond the insured's attained age 121. A-49 If a trustee under a pension or profit-sharing plan, or similar deferred compensation arrangement, owns a Policy, the Federal, state and estate tax consequences could differ. The amounts of life insurance that may be purchased on behalf of a participant in a pension or profit-sharing plan are limited. Providing excessive life insurance coverage in a retirement plan will have adverse tax consequences. The inclusion of riders, such as waiver of premium riders, may also have adverse tax consequences. Therefore, it is important to discuss with your tax adviser the suitability of the Policy, including the suitability of coverage amounts and Policy riders, before any purchase by a retirement plan. Any proposed distribution or sale of a Policy by a retirement plan will also need to be discussed with a tax adviser. The current cost of insurance for the net amount at risk is treated as a "current fringe benefit" and must be included annually in the plan participant's gross income. If the plan participant dies while covered by the plan and the Policy proceeds are paid to the participant's beneficiary, then the excess of the death benefit over the cash value is not income taxable. However, the cash value will generally be taxable to the extent it exceeds the participant's cost basis in the Policy. Policies owned under these types of plans may be subject to restrictions under the Employee Retirement Income Security Act of 1974 ("ERISA"). You should consult a qualified adviser regarding ERISA. Department of Labor ("DOL") regulations impose requirements for participant loans under retirement plans covered by ERISA. Plan loans must also satisfy tax requirements to be treated as nontaxable. Plan loan requirements and provisions may differ from the Policy loan provisions. Failure of plan loans to comply with the requirements and provisions of the DOL regulations and of tax law may result in adverse tax consequences and/or adverse consequences under ERISA. Plan fiduciaries and participants should consult a qualified adviser before requesting a loan under a Policy held in connection with a retirement plan. Businesses can use the Policies in various arrangements, including nonqualified deferred compensation or salary continuance plans, split dollar insurance plans, executive bonus plans, tax exempt and nonexempt welfare benefit plans, retiree medical benefit plans and others. The tax consequences of such plans may vary depending on the particular facts and circumstances. If you are 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. Ownership of the Policy by a corporation, trust or other non-natural person could jeopardize some (or all) of such entity's interest deduction under Internal Revenue Code Section 264, even where such entity's indebtedness is in no way connected to the Policy. In addition, under Section 264(f)(5), if a business (other than a sole proprietorship) is directly or indirectly a beneficiary of the Policy, the Policy could be treated as held by the business for purposes of the Section 264(f) entity-holder rules. Therefore, it would be advisable to consult with a qualified tax adviser before any non-natural person is made an owner or holder of the Policy, or before a business (other than a sole proprietorship) is made a beneficiary of the Policy. GUIDANCE ON SPLIT DOLLAR PLANS. The IRS has issued guidance on split dollar insurance plans. A tax adviser should be consulted with respect to this guidance if you have purchased or are considering the purchase of a Policy for a split dollar insurance plan. If your Policy is part of an equity split dollar arrangement taxed under the economic benefit regime, there is a risk that some portion of the Policy cash value may be taxed prior to any Policy distribution. If your split dollar plan provides deferred compensation, specific tax rules governing deferred compensation arrangements may apply. Failure to adhere to these rules will result in adverse tax consequences. In addition, the Sarbanes-Oxley Act of 2002 (the "Act"), which was signed into law on July 30, 2002, prohibits, with limited exceptions, publicly-traded companies, including non-U.S. companies that have securities listed on U.S. exchanges, from extending, directly or indirectly or through a subsidiary, many types of personal loans to their directors or executive officers. It is possible that this prohibition may be interpreted to apply to split-dollar life insurance arrangements for directors and executive officers of such companies, since such arrangements can arguably be viewed as involving a loan from the employer for at least some purposes. Any affected business contemplating the payment of a premium on an existing Policy or the purchase of a new Policy in connection with a split-dollar life insurance arrangement should consult legal counsel. CORPORATE ALTERNATIVE MINIMUM TAX. There may also be an indirect tax upon the income in the Policy or the proceeds of a Policy under the Federal corporate alternative minimum tax, if the Policy Owner is subject to that tax. A-50 POSSIBLE TAX LAW CHANGES. Although the likelihood of legislative changes is uncertain, there is always the possibility that the tax treatment of the Policy could change by legislation or otherwise. Consult a tax adviser with respect to legislative developments and their effect on the Policy. METLIFE'S INCOME TAXES Under current Federal income tax law, MetLife is not taxed on the Separate Account's operations. Thus, currently we do not deduct a charge from the Separate Account for 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 in several states, we may incur state and local taxes (in addition to premium taxes). These taxes are not now significant and we are not currently charging for them. If they increase, we may deduct charges for such taxes. TAX CREDITS AND DEDUCTIONS. MetLife 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 dividend received deductions, are not passed back to the Separate Account or to Policy Owners since MetLife is the owner of the assets from which the tax benefits are derived. DISTRIBUTION OF THE POLICIES We have entered into a distribution agreement with our affiliate, MetLife Investors Distribution Company ("Distributor"), for the distribution of the Policies. We are affiliated with Distributor because we are both under common control of MetLife, Inc. We and Distributor have entered into selling agreements with other affiliated and unaffiliated broker-dealers ("selling firms") for the sale of the Policies through their registered representatives. Our affiliated broker-dealer is MetLife Securities, Inc. ("MSI"). Distributor and MSI are registered with the SEC as broker-dealers under the Securities Exchange Act of 1934 and are members of the Financial Industry Regulatory Authority ("FINRA"). FINRA provides background information about broker-dealers and their registered representatives through FINRA BrokerCheck. You may contact the FINRA BrokerCheck Hotline at 1-800-289-9999, or log on to www.finra.org. An investor brochure that includes information describing FINRA BrokerCheck is available through the Hotline or on-line. On February 29, 2016, MetLife, Inc. and Massachusetts Mutual Life Insurance Company (MassMutual) announced they have entered into a definitive agreement for the acquisition by MassMutual of MSI. The transaction is expected to close by mid-2016, and is subject to certain closing conditions, including regulatory approval. As a result of the transaction, MSI will no longer be affiliated with MetLife Insurance Company USA. COMMISSIONS AND OTHER CASH COMPENSATION All selling firms receive commissions. The portion of the commission payments that selling firms pass on to their sales representatives is determined in accordance with their internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. A selling firm or a sales representative of a selling firm may receive different compensation for selling one product over another and/or may be inclined to favor one product provider over another due to differing compensation rates. 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. A-51 In the first Policy year, the gross dealer concession amount for the Policies is 117% of premiums paid up to the Commissionable Target Premium, and 5.0% of premiums paid in excess of the Commissionable Target Premium. In Policy years 2 through 10, the gross dealer concession amount is 8.0% of all premiums paid, and in Policy years 11 and thereafter the gross dealer concession amount is 2.0% of all premiums. Commissionable Target Premium is generally the Target Premium as defined in the Glossary, excluding the portions associated with flat extras and certain riders, and is generally equal to or less than the Target Premium. Sales representatives of our affiliated selling firm and their managers may be eligible for various cash benefits that we may provide jointly with our affiliated selling firm. Ask your sales representative for further information about what your sales representative and the selling firm for which he or she works may receive in connection with your purchase of the Policy. Our sales representatives and their managers may be eligible for additional cash compensation, such as bonuses and expense allowances, including, for example, a bonus of 2.5% of first year gross dealer concession payable for sales of the Policy, 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. 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. The maximum commissions paid for sale of the Policies through unaffiliated selling firms are as follows: 110% of premiums paid up to the Commissionable Target Premium, and 4.5% of premiums paid in excess of Commissionable Target Premium in Policy year 1; and 13.0% of all premiums paid in Policy years 2 through 10; and 2.0% of all premiums paid thereafter. In addition, commissions are payable based on the cash value of the Policies in the following amounts: 0.10% in Policy years 2 through 10; 0.08% in Policy years 11 through 20; and 0.06% thereafter. Commissionable Target Premium is generally the Target Premium as defined in the Glossary, excluding the portions associated with flat extras and certain riders, and is generally equal to or less than the Target Premium. We and/or Distributor may also make bonus payments to selling firms. The maximum amount of these bonus payments are as follows: 9.0% of premiums paid up to the Commissionable Target Premium and 2.0% of premiums paid in excess of the Commissionable Target Premium in Policy year 1; 19.75% of premiums paid up to the Commissionable Target Premium and 0.25% of premiums paid in excess of the Commissionable Target Premium paid in Policy year 2; and 0.25% of all premiums paid thereafter. Unaffiliated selling firms pay their sales representatives all or a portion of the commissions received for their sales of the Policies. The amount that firms pass on to their sales representatives is determined in accordance with their internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. Sales representatives of these selling firms may also receive non-cash compensation pursuant to their firm's guidelines or directly from us or Distributor. Ask your sales representative for further information about what your sales representative and the selling firm for which he or she works may receive in connection with your purchase of the Policy. NON-CASH COMPENSATION Sales representatives and their Managers (and the sales representatives and managers of our affiliates) are also eligible for various non-cash compensation programs that we offer such as conferences, trips, prizes, and awards. Other payments may be made for other services that do not directly involve the sale of the Policies. These services may include the recruitment and training of personnel, production of promotional literature, and similar services. OTHER PAYMENTS We and Distributor may enter into preferred distribution arrangements with selected selling firms under which we pay additional compensation, including marketing allowances, introduction fees, persistency payments, preferred status fees and industry conference fees. Marketing allowances are periodic payments to certain selling firms, 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. They may also include payments we make to cover the A-52 cost of marketing or other support services provided for or by registered representatives who may sell our products. Introduction fees are payments to selling firms in connection with the addition of these variable products to the selling firm's line of investment products, including expenses relating to establishing the data communications systems necessary for the selling firm to offer, sell and administer these products. Persistency payments are periodic payments based on account and/ or cash values of these variable insurance products. Preferred status fees are paid to obtain preferred treatment of these products in selling firms' marketing programs, which may include marketing services, participation in marketing meetings, listings in data resources and increased access to their sales representatives. Industry conference fees are amounts paid to cover in part the costs associated with sales conferences and educational seminars for selling firms' sales representatives. These preferred distribution arrangements are not offered to all selling firms. The terms of any particular agreement governing compensation may vary among selling firms and the amounts may be significant. We and Distributor have entered into preferred distribution arrangements with the unaffiliated selling firms listed in the Statement of Additional Information. We and Distributor may enter into similar arrangements with our affiliate MSI. The prospect of receiving, or the receipt of, additional compensation as described above may provide selling firms or their representatives with an incentive to favor sales of the Policies over other variable insurance policies (or other investments) with respect to which the selling firm does not receive additional compensation, or lower levels of additional compensation. You may wish to take such payment arrangements into account when considering and evaluating any recommendation relating to the Policies. For more information about any such arrangements, ask your sales representative for further information about what your sales representative and the selling firm for which he or she works may receive in connection with your purchase of a Policy. We also pay amounts to Distributor that may be used for its operating and other expenses, including the following sales expenses: compensation and bonuses for Distributor's management team, advertising expenses, and other expenses of distributing the Policies. Distributor's management team may also be eligible for non-cash compensation items that we may provide jointly with Distributor. Non-cash items include conferences, seminars and trips (including travel, lodging and meals in connection therewith), entertainment, merchandise and similar items. Commissions and other incentives or payments described above are not charged directly to Policy Owners or the Separate Account. We intend to recoup commissions and other sales expenses through fees and charges deducted under the Policy. The Statement of Additional Information contains additional information about the compensation paid for the sale of the Policies. LEGAL PROCEEDINGS In the ordinary course of business, MetLife, similar to other life insurance companies, is involved in lawsuits (including class action lawsuits), arbitrations and other legal proceedings. Also, from time to time, state and federal regulators or other officials conduct formal and informal examinations or undertake other actions dealing with various aspects of the financial services and insurance industries. In some legal proceedings involving insurers, substantial damages have been sought and/ or material settlement payments have been made. It is not possible to predict with certainty the ultimate outcome of any pending legal proceeding or regulatory action. However, MetLife does not believe any such action or proceeding will have a material adverse effect upon the Separate Account or upon the ability of MetLife Investors Distribution Company to perform its contract with the Separate Account or of MetLife to meet its obligations under the Policies. RESTRICTIONS ON FINANCIAL TRANSACTIONS Applicable laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to reject a premium payment and/or block or "freeze" your Policy. If these laws apply in a particular situation, we would not be allowed to process any request for withdrawals, surrenders, loans or death benefits, make transfers, or continue making payments under your death benefit option until instructions are received from the appropriate regulator. We also may be required to provide additional information about you or your Policy to government regulators. A-53 FINANCIAL STATEMENTS You may find the financial statements of the Separate Account and the financial statements of MetLife in the Statement of Additional Information. MetLife's financial statements should be considered only as bearing on our ability to meet our obligations under the Policies. They should not be considered as bearing on the investment performance of the assets held in the Separate Account. A-54 GLOSSARY AGE. The age of an insured refers to the insured's age at his or her nearest birthday. ATTAINED AGE. The insured's issue age plus the number of completed Policy years. BASE POLICY. The Policy without riders. CASH SURRENDER VALUE. The amount you receive if you surrender the Policy. It is equal to the Policy's cash value reduced by any Surrender Charge that would apply on surrender and by any outstanding Policy loan and accrued interest. CASH VALUE. A Policy's cash value includes the amount of its cash value held in the Separate Account, the amount held in the Fixed Account, if there is an outstanding Policy loan, the amount of its cash value held in the Loan Account, and any amount held in the EDCA account. FIXED ACCOUNT. The Fixed Account is a part of our general account to which you may allocate net premiums. It provides guarantees of principal and interest. INVESTMENT DIVISION. A sub-account of the Separate Account that invests in shares of an open-ended management investment company or other pools of investment assets. INVESTMENT START DATE. This is the later of the Policy Date and the date we first receive a premium payment for the Policy. ISSUE AGE. The age of the insured as of his or her birthday nearest to the Policy Date. LOAN ACCOUNT. The account to which cash value from the Separate and/or Fixed Accounts is transferred when a Policy loan is taken. NET CASH VALUE. The Policy's cash value less any outstanding loans and accrued loan interest. NET PREMIUM. The net premium is equal to the premium payment minus the sales charge, the premium tax charge, and the federal tax charge. PLANNED PREMIUM. The Planned Premium is the premium payment schedule you choose to help meet your future goals under the Policy. The Planned Premium consists of a first-year premium amount and an amount for premium payments in subsequent Policy years. It is subject to certain limits under the Policy. POLICY DATE. The date on which coverage under the Policy and Monthly Deductions begin. If you make a premium payment with the application, unless you request otherwise, the Policy Date is generally the date the Policy application is approved. If you choose to pay the initial premium upon delivery of the Policy, unless you request otherwise, the Policy Date is generally the date on which we receive your initial payment. The Policy Date is used to measure Policy years, Policy months, and Policy anniversaries. PREMIUMS. Premiums include all payments under the Policy, whether a Planned Premium or an unscheduled payment. SEPARATE ACCOUNT. Metropolitan Life Separate Account UL, a separate account established by MetLife to receive and invest premiums paid under the Policies and certain other variable life insurance policies, and to provide variable benefits. TARGET PREMIUM. We use the Target Premium to determine the amount of Mortality and Expense Risk Charge imposed on the Separate Account and the amount of Sales Charge imposed on premium payments. The Target Premium varies by issue age, sex (except for unisex Policies), smoking status and any flat extras and substandard rating of the insured, and the Policy's base face amount, with additional amounts for most riders. YOU. "You" refers to the Policy Owner. A-55 APPENDIX A GUIDELINE PREMIUM TEST AND CASH VALUE ACCUMULATION TEST In order to meet the Internal Revenue Code's definition of life insurance, the Policies provide that the death benefit will not be less than what is required by the "guideline premium test" under Section 7702(a)(2) of the Internal Revenue Code, or the "cash value accumulation test" under Section 7702(a)(1) of the Internal Revenue Code, as selected by you when the Policy is issued. The test you choose at issue will be used for the life of the Policy. (See "Death Benefits.") For the guideline premium test, the table below shows the percentage of the Policy's cash value that is used to determine the death benefit.
AGE OF AGE OF INSURED AT START OF PERCENTAGE OF INSURED AT START OF PERCENTAGE OF THE POLICY YEAR CASH VALUE THE POLICY YEAR CASH VALUE --------------------- --------------- --------------------- -------------- 0 through 40 250 61 128 41 243 62 126 42 236 63 124 43 229 64 122 44 222 65 120 45 215 66 119 46 209 67 118 47 203 68 117 48 197 69 116 49 191 70 115 50 185 71 113 51 178 72 111 52 171 73 109 53 164 74 107 54 157 75 through 90 105 55 150 91 104 56 146 92 103 57 142 93 102 58 138 94 through 121 101 59 134 60 130
For the cash value accumulation test, sample net single premium factors for selected ages of male and female insureds, in a standard or better nonsmoker risk class, are listed below.
NET SINGLE PREMIUM FACTOR -------------------- AGE MALE FEMALE ----------- --------- -------- 30......... 5.82979 6.59918 40......... 4.11359 4.63373 50......... 2.93292 3.28706 60......... 2.14246 2.40697 70......... 1.64028 1.82665 80......... 1.32530 1.44515 90......... 1.15724 1.22113 100........ 1.08417 1.10646 120........ 1.02597 1.02597
A-56 APPENDIX B ILLUSTRATIONS OF DEATH BENEFITS, CASH VALUES AND CASH SURRENDER VALUES The tables in Appendix B illustrate the way the Policies work, based on assumptions about investment returns and the insured's characteristics. They show how the death benefit, cash surrender value and cash value could vary over an extended period of time assuming hypothetical gross rates of return (i.e., investment income and capital gains and losses, realized or unrealized) for the Separate Account equal to constant after tax annual rates of 0%, 6% and 10%. The tables are based on a face amount of $375,000 for a male aged 35. The insured is assumed to be in the preferred nonsmoker risk class. The tables assume no rider benefits and assume that no allocations are made to the Fixed Account. Values are first given based on current Policy charges and then based on guaranteed Policy charges. (See "Charges.") Illustrations show the Option A death benefit. Policy values would be different (either higher or lower) from the illustrated amounts in certain circumstances. For example, illustrated amounts would be different where actual gross rates of return averaged 0%, 6% or 10%, but: (i) the rates of return varied above and below these averages during the period, (ii) premiums were paid in other amounts or at other than annual intervals, or (iii) cash values were allocated differently among individual Investment Divisions with varying rates of return. They would also differ if a Policy loan or partial withdrawal were made during the period of time illustrated, if the insured were female, a different age, or in another risk classification, or if the Policies were issued at unisex rates. For example, as a result of variations in actual returns, additional premium payments beyond those illustrated may be necessary to maintain the Policy in force for the periods shown or to realize the Policy values shown, even if the average rate of return is achieved. The death benefits, cash surrender values and cash values shown in the tables reflect: (i) deductions from premiums for the sales charge, premium tax and federal tax charge; and (ii) a Monthly Deduction (consisting of a Coverage Expense Charge, a Mortality and Expense Risk Charge, and a charge for the cost of insurance) from the cash value on the first day of each Policy month. The cash surrender values reflect a Surrender Charge deducted from the cash value upon surrender, partial withdrawal, face reduction or lapse during the first ten Policy years. (See "Charges.") The illustrations reflect an arithmetic average of the gross investment advisory fees and operating expenses of the Portfolios, at an annual rate of .74% of the average daily net assets of the Portfolios. This average does not reflect expense subsidies by the investment advisers of certain Portfolios. The gross rates of return used in the illustrations do not reflect the deductions of the fees and expenses of the Portfolios. Taking account of the average investment advisory fee and operating expenses of the Portfolios, the gross annual rates of return of 0%, 6% and 10% correspond to net investment experience at constant annual rates of -.74%, 5.22% and 9.19%, respectively. If you request, we will furnish a personalized illustration reflecting the proposed insured's age, sex, risk class, and the face amount or premium payment schedule requested. Because these and other assumptions will differ, the values shown in the personalized illustrations can differ very substantially from those shown in the tables. Therefore, you should carefully review the information that accompanies any personalized illustration. That information will disclose all the assumptions on which the personalized illustration is based. Where applicable, we will also furnish on request a personalized illustration for a Policy which is not affected by the sex of the insured. You should contact your registered representative to request a personalized illustration. A-57 MALE ISSUE AGE 35 $2,500 ANNUAL PREMIUM FOR PREFERRED NONSMOKER RISK CLASS $375,000 FACE AMOUNT OPTION A DEATH BENEFIT THIS ILLUSTRATION IS BASED ON CURRENT POLICY CHARGES.
DEATH BENEFIT CASH SURRENDER VALUE CASH VALUE ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF GROSS ANNUAL RATE OF RETURN OF GROSS ANNUAL RATE OF RETURN OF END OF -------------------------------------- ------------------------------------ ------------------------------------ POLICY 0% 6% 10% 0% 6% 10% 0% 6% 10% YEAR ----------- ------------ ------------- --------- ------------ ------------- --------- ------------ ------------- 1 $375,000 $ 375,000 $ 375,000 $ 0 $ 0 $ 0 $ 1,519 $ 1,633 $ 1,709 2 375,000 375,000 375,000 0 0 0 2,985 3,307 3,649 3 375,000 375,000 375,000 0 0 220 4,398 5,024 5,661 4 375,000 375,000 375,000 1,208 2,233 2,991 5,758 6,784 7,810 5 375,000 375,000 375,000 3,211 4,735 5,899 7,061 8,585 10,105 6 375,000 375,000 375,000 4,804 6,926 8,601 8,304 10,426 12,554 7 375,000 375,000 375,000 6,335 9,155 11,458 9,486 12,306 15,170 8 375,000 375,000 375,000 8,157 11,777 14,835 10,608 14,227 17,976 9 375,000 375,000 375,000 11,184 15,730 19,710 12,409 16,955 21,709 10 375,000 375,000 375,000 14,146 19,779 24,860 14,146 19,779 25,726 15 375,000 375,000 375,000 22,457 36,121 50,657 22,457 36,121 50,657 20 375,000 375,000 375,000 29,568 56,467 89,999 29,568 56,467 89,999 25 375,000 375,000 375,000 34,844 81,203 150,102 34,844 81,203 150,102 30 375,000 375,000 375,000 36,891 110,623 242,431 36,891 110,623 242,431 35 375,000 375,000 448,652 33,569 144,824 386,769 33,569 144,824 386,769 40 375,000 375,000 652,998 22,782 185,521 610,278 22,782 185,521 610,278 45 375,000 1,002,804 232,115 955,052 232,115 955,052 50 375,000 1,550,728 282,724 1,476,883 282,724 1,476,883 55 375,000 2,362,006 346,267 2,249,530 346,267 2,249,530 60 454,027 3,460,409 449,532 3,426,148 449,532 3,426,148 65 592,019 5,318,774 586,157 5,266,113 586,157 5,266,113 70 766,520 8,153,658 758,931 8,072,929 758,931 8,072,929 75 985,330 12,452,475 975,574 12,329,183 975,574 12,329,183 80 1,255,067 18,894,787 1,242,641 18,707,710 1,242,641 18,707,710 85 1,579,907 28,391,978 1,564,265 28,110,870 1,564,265 28,110,870 86 1,653,046 30,783,244 1,636,679 30,478,459 1,636,679 30,478,459
IT IS EMPHASIZED THAT THE HYPOTHETICAL GROSS ANNUAL RATES OF RETURN SHOWN ABOVE ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE GROSS ANNUAL RATES OF RETURN. ACTUAL GROSS RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS MADE BY A POLICY OWNER, THE FREQUENCY OF PREMIUM PAYMENTS CHOSEN BY A POLICY OWNER, AND THE INVESTMENT EXPERIENCE OF THE POLICY'S INVESTMENT DIVISIONS. THE DEATH BENEFIT, CASH VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS ANNUAL RATES OF RETURN AVERAGED 0%, 6%, AND 10% OVER A PERIOD OF YEARS, BUT VARIED ABOVE OR BELOW THAT AVERAGE DURING THE PERIOD. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOAN OR PARTIAL WITHDRAWAL WERE MADE DURING THE PERIOD. NO REPRESENTATIONS CAN BE MADE BY METLIFE OR THE PORTFOLIOS THAT THOSE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME. A-58 MALE ISSUE AGE 35 $2,500 ANNUAL PREMIUM FOR PREFERRED NONSMOKER RISK CLASS $375,000 FACE AMOUNT OPTION A DEATH BENEFIT THIS ILLUSTRATION IS BASED ON GUARANTEED POLICY CHARGES.
DEATH BENEFIT CASH SURRENDER VALUE CASH VALUE ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF GROSS ANNUAL RATE OF RETURN OF GROSS ANNUAL RATE OF RETURN OF END OF ---------------------------------------- ------------------------------------ ------------------------------------ POLICY 0% 6% 10% 0% 6% 10% 0% 6% 10% YEAR ----------- ----------- ------------ --------- --------- ------------ --------- --------- ------------ 1 $375,000 $375,000 $ 375,000 $ 0 $ 0 $ 0 $ 1,189 $ 1,292 $ 1,361 2 375,000 375,000 375,000 0 0 0 2,338 2,619 2,813 3 375,000 375,000 375,000 0 0 0 3,453 3,987 4,369 4 375,000 375,000 375,000 0 832 1,472 4,520 5,383 6,022 5 375,000 375,000 375,000 1,691 2,961 3,933 5,542 6,811 7,784 6 375,000 375,000 375,000 3,016 4,770 6,160 6,516 8,270 9,660 7 375,000 375,000 375,000 4,284 6,601 8,501 7,434 9,751 11,651 8 375,000 375,000 375,000 5,835 8,794 11,304 8,285 11,244 13,754 9 375,000 375,000 375,000 7,838 11,516 14,747 9,063 12,741 15,972 10 375,000 375,000 375,000 9,758 14,234 18,305 9,758 14,234 18,305 15 375,000 375,000 375,000 12,239 22,037 32,734 12,239 22,037 32,734 20 375,000 375,000 375,000 12,364 29,607 52,522 12,364 29,607 52,522 25 375,000 375,000 375,000 7,567 34,253 78,508 7,567 34,253 78,508 30 375,000 375,000 31,698 112,156 31,698 112,156 35 375,000 375,000 13,258 156,444 13,258 156,444 40 375,000 217,915 217,915 45 375,000 313,073 313,073 50 505,091 481,039 481,039 55 764,071 727,686 727,686 60 1,110,269 1,099,277 1,099,277 65 1,699,397 1,682,571 1,682,571 70 2,576,930 2,551,416 2,551,416 75 3,864,684 3,826,420 3,826,420 80 5,713,948 5,657,374 5,657,374 85 8,425,302 8,341,883 8,341,883 86 9,105,256 9,015,105 9,015,105
IT IS EMPHASIZED THAT THE HYPOTHETICAL GROSS ANNUAL RATES OF RETURN SHOWN ABOVE ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE GROSS ANNUAL RATES OF RETURN. ACTUAL GROSS RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS MADE BY A POLICY OWNER, THE FREQUENCY OF PREMIUM PAYMENTS CHOSEN BY A POLICY OWNER, AND THE INVESTMENT EXPERIENCE OF THE POLICY'S INVESTMENT DIVISIONS. THE DEATH BENEFIT, CASH VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS ANNUAL RATES OF RETURN AVERAGED 0%, 6%, AND 10% OVER A PERIOD OF YEARS, BUT VARIED ABOVE OR BELOW THAT AVERAGE DURING THE PERIOD. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOAN OR PARTIAL WITHDRAWAL WERE MADE DURING THE PERIOD. NO REPRESENTATIONS CAN BE MADE BY METLIFE OR THE PORTFOLIOS THAT THOSE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME. A-59 Additional information about the Policy and the Separate Account can be found in the Statement of Additional Information, which is available online at our website www.metlife.com. You may also obtain a copy of the Statement of Additional Information, without charge, by calling our TeleService Center at 1-800-638-5000. You may also obtain, without charge, a personalized illustration of death benefits, cash surrender values and cash values by calling your registered representative. For Investment Division transfers and premium reallocations, for current information about your Policy values, to change or update Policy information such as your billing address, billing mode, beneficiary or ownership, for information about other Policy transactions, and to ask questions about your Policy, you may call us at 1-800-638-5000. This prospectus incorporates by reference all of the information contained in the Statement of Additional Information, which is legally part of this prospectus. Information about the Policy and the Separate Account, including the Statement of Additional Information, is available for viewing and copying at the SEC's Public Reference Room in Washington, D.C. Information about the operation of the Public Reference Room may be obtained by calling the SEC at 202-551-8090. The Statement of Additional Information, reports and other information about the Separate Account are available on the SEC Internet site at www.sec.gov. Copies of this information may be obtained upon payment of a duplicating fee, by writing to the SEC's Public Reference Section at 100 F Street, NE, Washington, DC 20549-0102. File No. 811-06025 METROPOLITAN LIFE INSURANCE COMPANY 200 PARK AVENUE NEW YORK, NY 10166 RECEIPT This is the acknowledge receipt of an Equity Advantage VUL Prospectus (Book#252) dated May 1, 2016. This Variable Life Insurance Policy is offered by Metropolitan Life Insurance Company. ------------------------------------- ------------------------------------- (Date) (Client's Signature)
METROPOLITAN LIFE INSURANCE COMPANY METROPOLITAN LIFE SEPARATE ACCOUNT UL EQUITY ADVANTAGE VUL SUPPLEMENT DATED MAY 1, 2016 TO THE PROSPECTUS DATED MAY 1, 2016 This supplement revises certain information in the May 1, 2016 prospectus for the Equity Advantage Variable Universal Life insurance policy issued by Metropolitan Life Insurance Company. You should read and retain this supplement. We currently limit the amount of cash value you may transfer to or from any one Investment Division to a maximum of $2.5 million per day. If you own more than one Equity Advantage VUL policy on the same insured, this limit will be applied to the cumulative transfers you make to or from the Investment Division under all such Policies. METROPOLITAN LIFE INSURANCE COMPANY METROPOLITAN LIFE SEPARATE ACCOUNT UL EQUITY ADVANTAGE VUL SUPPLEMENT DATED MAY 1, 2016 TO THE PROSPECTUS DATED MAY 1, 2016 If you purchase the Policy pursuant to your right to request a face amount increase under a Zenith Flexible Life or Zenith Flexible Life 2001 flexible premium variable life insurance policy issued by New England Life Insurance Company, your Policy will differ from the Policy as described in the prospectus. The differences are as follows: 1. The minimum face amount required at issue of the Policy will be $25,000 (except that, subject to state law requirements, the minimum face amount of a Policy issued to the owner of a Zenith Flexible Life policy may be $10,000). You will have the right to reduce the face amount below $25,000. 2. You will not be subject to the monthly Policy Charge. 3. You will be subject to a reduced monthly Coverage Expense Charge equal to 75% of the charge that would otherwise be payable under the Policy. METROPOLITAN LIFE INSURANCE COMPANY METROPOLITAN LIFE SEPARATE ACCOUNT UL EQUITY ADVANTAGE VUL SUPPLEMENT DATED MAY 1, 2016 TO THE PROSPECTUS DATED MAY 1, 2016 When you apply for the Policy, certain Portfolios may not be available to you because the broker-dealer through which you are purchasing the Policy does not make them available. However, once your Policy has been issued, all of the Portfolios will be available for premium allocations and cash value transfers. Please be aware that your registered representative may not be able to provide you any information or answer any questions you may have about the Portfolios that are not made available. Therefore, to allocate premium payments or to transfer cash value to those Portfolios, you may need to contact us directly, as described under RECEIPT OF COMMUNICATIONS AND PAYMENTS AT METLIFE'S DESIGNATED OFFICE on page A-26 of the prospectus. EQUITY ADVANTAGE VUL FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICIES METROPOLITAN LIFE SEPARATE ACCOUNT UL ISSUED BY METROPOLITAN LIFE INSURANCE COMPANY STATEMENT OF ADDITIONAL INFORMATION (PART B) MAY 1, 2016 This Statement of Additional Information is not a prospectus. This Statement of Additional Information relates to the Prospectus dated May 1, 2016 and should be read in conjunction therewith. A copy of the Prospectus may be obtained by writing to Metropolitan Life Insurance Company, P.O. Box 543, Warwick, RI 02887-0543. SAI-1 TABLE OF CONTENTS
PAGE ------ GENERAL INFORMATION AND HISTORY................................... SAI-3 The Company.................................................... SAI-3 The Separate Account........................................... SAI-3 DISTRIBUTION OF THE POLICIES...................................... SAI-3 ADDITIONAL INFORMATION ABOUT THE OPERATION OF THE POLICIES........ SAI-4 Payment of Proceeds............................................ SAI-4 Payment Options................................................ SAI-5 ADDITIONAL INFORMATION ABOUT CHARGES.............................. SAI-5 Group or Sponsored Arrangements................................ SAI-5 POTENTIAL CONFLICTS OF INTEREST................................... SAI-5 LIMITS TO METLIFE'S RIGHT TO CHALLENGE THE POLICY................. SAI-6 MISSTATEMENT OF AGE OR SEX........................................ SAI-6 REPORTS........................................................... SAI-6 PERSONALIZED ILLUSTRATIONS........................................ SAI-6 PERFORMANCE DATA.................................................. SAI-7 REGISTRATION STATEMENT............................................ SAI-7 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM..................... SAI-7 EXPERTS........................................................... SAI-7 FINANCIAL STATEMENTS.............................................. SAI-7
SAI-2 GENERAL INFORMATION AND HISTORY THE COMPANY Metropolitan Life Insurance Company (the "Company") is a leading provider of insurance, annuities, and employee benefit programs throughout the United States. The Company offers life insurance and annuities to individuals, as well as group insurance and retirement and savings products and other services to corporations and other institutions. The Company was formed under the laws of New York in 1866. 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., through its subsidiaries and affiliates, is a leading global provider of insurance and financial services to individuals and institutional customers. THE SEPARATE ACCOUNT We established the Separate Account as a separate investment account on December 13, 1988. The Separate Account is the funding vehicle for the Policies, and other variable life insurance policies that we issue. These other polices impose different costs, and provide different benefits, from the Policies. The Separate Account meets the definition of a "separate account" under Federal securities laws, and is registered with the U.S. Securities and Exchange Commission (the "SEC") as a unit investment trust under the Investment Company Act of 1940 (the "1940 Act"). Registration with the SEC does not involve SEC supervision of the Separate Account's management or investments. However, the New York Insurance Commissioner regulates MetLife and the Separate Account. DISTRIBUTION OF THE POLICIES Our affiliate, MetLife Investors Distribution Company, 1095 Avenue of the Americas, New York, NY 10036 ("Distributor"), serves as principal underwriter for the Policies. Distributor is a Missouri corporation organized in 2000. Distributor is registered as a broker-dealer with the U.S. Securities and Exchange Commission under the Securities Exchange Act of 1934, as well as with the securities commissions in the states in which it operates, and is a member of the Financial Industry Regulatory Authority. Distributor is not a member of the Securities Investor Protection Corporation. Distributor may enter into selling agreements with other broker-dealers ("selling firms") and compensate them for their services. Distributor passes through commissions it receives to selling firms for their sales and does not retain any portion of them in return for its services as distributor for the Policies. The Policies are sold through licensed life insurance sales representatives who are either registered through our affiliated broker-dealers, or registered through other broker-dealers. Distributor received sales compensation with respect to the Policies in the following amounts in the periods indicated:
AGGREGATE AMOUNT OF AGGREGATE AMOUNT OF COMMISSIONS RETAINED BY FISCAL COMMISSIONS PAID TO DISTRIBUTOR AFTER PAYMENTS YEAR DISTRIBUTOR TO SELLING FIRMS ---------------- --------------------- --------------------------- 2015..........$ 9,274,538 $0 2014..........$ 9,503,654 $0 2013..........$10,053,600 $0
We offer the Policies to the public on a continuous basis. We anticipate continuing to offer the Policies, but reserve the right to discontinue the offering. As noted in the prospectus, we and Distributor pay compensation to all selling firms in the form of commissions and certain types of non-cash compensation. We and Distributor may pay additional compensation to selected firms, including marketing allowances, introduction fees, persistency payments, preferred status fees and industry conference fees. The terms of any particular agreement governing compensation may vary among selling firms and SAI-3 the amounts may be significant. The amount of additional compensation (non-commission amounts) paid to selected selling firms that sold our variable life and variable annuity products in 2015 ranged from $0 to $13,121,738. For purposes of calculating these amounts, the amount of compensation received by a selling firm includes the additional compensation received by the firm for the sale of life insurance and annuity products issued by us and our affiliates. The following list sets forth the names of selling firms that received additional compensation in 2015 in connection with the sale of our and our affiliates' variable life policies, variable annuity contracts and other insurance products: AIG Advisory Group Ameriprise Financial Services, Inc. BBVA Compass Investment Solutions, Inc. Capital Investments Group, Inc. Centaurus Financial, Inc. Cetera Advisor Networks LLC Cetera Advisors LLC Cetera Financial Group Cetera Financial Specialists LLC Cetera Investment Services LLC CFD Investment, Inc. Citigroup Global Markets, Inc. Commonwealth Financial Network CUSO Financial Services, L.P. Edward D. Jones & Co., L.P. Equity Services, Inc. Essex National Securities, Inc. First Allied Securities, Inc. Founders Financial Securities, LLC FSC Securities Corporation Girard Securities, Inc. H. D. Vest Investment Services, Inc. Invest Financial Corp. Investacorp, Inc. Investment Centers of America, Inc. Investment Professionals, Inc. J.P. Turner & Company, L.L.C. Janney Montgomery Scott, LLC Key Investment Services LLC Legend Equities Corporation Lincoln Financial Advisors Corporation Lincoln Financial Securities Corporation Lincoln Investment Planning, LLC LPL Financial LLC Merrill Lynch, Inc. Morgan Stanley Smith Barney, LLC National Planning Corporation National Planning Holdings Navy Federal Brokerage Services, LLC NEXT Financial Group NFP Securities, Inc. Parkland Securities, LLC PFS Investments Inc. Planning Corporation of America ProEquities, Inc. Raymond James & Associates, Inc. Raymond James Financial Services, Inc. RBC Wealth Management Royal Alliance Associates, Inc. SagePoint Financial, Inc. Santander Securities, LLC Securities America, Inc. Sigma Financial Corporation Signator Financial Services, Inc. Signator Investors, Inc. SII Investments, Inc. Sorrento Pacific Financial, LLC Stifel, Nicolaus & Company, Incorporated Summit Brokerage Services, Inc. TFS Securities, Inc. Transamerica Financial Advisors, Inc. Triad Advisors, Inc. UBS Financial Services, Inc. U.S. Bancorp Investments, Inc. UVEST Financial Services Group Inc. ValMark Securities, Inc. Voya Financial Advisors, Inc. Voya Financial Partners, LLC VSR Financial Services, Inc. Wells Fargo Advisors, LLC Wells Fargo Advisors Financial Network, LLC Wescom Financial Services, LLC Woodbury Financial Services, Inc. ADDITIONAL INFORMATION ABOUT THE OPERATION OF THE POLICIES PAYMENT OF PROCEEDS We may withhold payment of surrender or loan proceeds if those proceeds are coming from a Policy Owner's check, or from a premium transaction under our pre-authorized checking arrangement, which has not yet cleared. We may also delay payment while we consider whether to contest the Policy. We pay interest on the death benefit proceeds from the date to the date we pay them. Normally we promptly make payments of cash value, or of any loan value available, from cash value in the Fixed Account. However, we may delay those payments for up to six months. We pay interest in accordance with state insurance law requirements on delayed payments. SAI-4 PAYMENT OPTIONS We pay the Policy's death benefit and cash surrender value in one sum unless you or the payee choose a payment option for all or part of the proceeds. You can choose a combination of payment options. You can make, change or revoke the selection of payee or payment option before the death of the insured. You can contact your registered representative or our Designated Office for the procedure to follow. (See "Receipt of Communications and Payments at MetLife's Designated Office.") The payment options available are fixed benefit options only and are not affected by the investment experience of the Separate Account. Once payments under an option begin, withdrawal rights may be restricted. Even if the death benefit under the Policy is excludible from income, payments under Payment Options may not be excludible in full. This is because earnings on the death benefit after the insured's death are taxable and payments under the Payment Options generally include such earnings. You should consult a tax adviser as to the tax treatment of payments under Payment Options. The following payment options are available: (i) SINGLE LIFE INCOME. We pay proceeds in equal monthly installments for the life of the payee. (ii) SINGLE LIFE INCOME--10-YEAR GUARANTEED PAYMENT PERIOD. We pay proceeds in equal monthly installments during the life of the payee, with a guaranteed payment period of 10 years. (iii) JOINT AND SURVIVOR LIFE INCOME. We pay proceeds in equal monthly installments (a) while either of two payees is living, or (b) while either of the two payees is living, but for at least 10 years. ADDITIONAL INFORMATION ABOUT CHARGES GROUP OR SPONSORED ARRANGEMENTS We may issue the Policies to group or sponsored arrangements, as well as on an individual basis. A "group arrangement" includes a situation where a trustee, employer or similar entity purchases individual Policies covering a group of individuals. Examples of such arrangements are non-qualified deferred compensation plans. A "sponsored arrangement" includes a situation where an employer or an association permits group solicitation of its employees or members for the purchase of individual Policies. We may waive, reduce or vary any Policy charges under Policies sold to a group or sponsored arrangement. We may also raise the interest rate credited to loaned amounts under these Policies. The amount of the variations and our eligibility rules may change from time to time. In general, they reflect cost savings over time that we anticipate for Policies sold to the eligible group or sponsored arrangements and relate to objective factors such as the size of the group, its stability, the purpose of the funding arrangement and characteristics of the group members. Consult your registered representative for any variations that may be available and appropriate for your case. The United States Supreme Court has ruled that insurance policies with values and benefits that vary with the sex of the insured may not be used to fund certain employee benefit programs. Therefore, we offer Policies that do not vary based on the sex of the insured to certain employee benefit programs. We recommend that employers consult an attorney before offering or purchasing the Policies in connection with an employee benefit program. POTENTIAL CONFLICTS OF INTEREST The Portfolios' Boards of Trustees monitor events to identify conflicts that may arise from the sale of Portfolio shares to variable life and variable annuity separate accounts of affiliated and, if applicable, unaffiliated insurance companies and qualified plans. Conflicts could result from changes in state insurance law or Federal income tax law, changes in investment management of a Portfolio, or differences in voting instructions given by variable life and variable annuity contract owners and qualified plans, if applicable. If there is a material conflict, the Board of Trustees will determine what action should be taken, including the removal of the affected Portfolios from the Separate Account, if necessary. If we believe any Portfolio action is insufficient, we will consider taking other action to protect Policy Owners. There could, however, be unavoidable delays or interruptions of operations of the Separate Account that we may be unable to remedy. SAI-5 LIMITS TO METLIFE'S RIGHT TO CHALLENGE THE POLICY Generally, we can challenge the validity of your Policy or a rider during the insured's lifetime for two years (or less, if required by state law) from the date of issue, based on misrepresentations made in the application. We can challenge the portion of the death benefit resulting from an underwritten premium payment for two years during the insured's lifetime from receipt of the premium payment. However, if the insured dies within two years of the date of issue, we can challenge all or part of the Policy at any time based on misrepresentations in the application. We can challenge an increase in face amount, with regard to material misstatements concerning such increase, for two years during the insured's lifetime from its effective date. MISSTATEMENT OF AGE OR SEX If we determine, while the insured is still living, that there was a misstatement of age or (if the Policy is not unisex) sex in the application, the Policy values and charges will be recalculated from the issue date based on the correct information. If, after the death of the insured, we determine that the application misstates the insured's age or sex, the Policy's death benefit will be the amount which would be bought by the most recent Monthly Cost of Insurance, based on the insured's correct age and, if the Policy is not unisex, correct sex. REPORTS We will send you an annual statement showing your Policy's death benefit, cash value and any outstanding Policy loan principal. We will also confirm Policy loans, account transfers, lapses, surrenders and other Policy transactions when they occur. You will be sent periodic reports containing the financial statements of the Portfolios. PERSONALIZED ILLUSTRATIONS We may provide personalized illustrations showing how the Policies work based on assumptions about investment returns and the Policy Owner's and/or insured's characteristics. The illustrations are intended to show how the death benefit, cash surrender value, and cash value could vary over an extended period of time assuming hypothetical gross rates of return (i.e., investment income and capital gains and losses, realized or unrealized) for the Separate Account equal to specified constant after-tax rates of return. One of the gross rates of return will be 0%. Gross rates of return do not reflect the deduction of any charges and expenses. The illustrations will be based on specified assumptions, such as face amount, premium payments, insured, risk class, and death benefit option. Illustrations will disclose the specific assumptions upon which they are based. Values will be given based on guaranteed mortality and expense risk and other charges and may also be based on current mortality and expense risk and other charges. The illustrated death benefit, cash surrender value, and cash value for a hypothetical Policy would be different, either higher or lower, from the amounts shown in the illustration if the actual gross rates of return averaged the gross rates of return upon which the illustration is based, but varied above and below the average during the period, or if premiums were paid in other amounts or at other than annual intervals. For example, as a result of variations in actual returns, additional premium payments beyond those illustrated may be necessary to maintain the Policy in force for the period shown or to realize the Policy values shown in particular illustrations even if the average rate of return is realized. Illustrations may also show the internal rate of return on the cash surrender value and the death benefit. The internal rate of return on the cash surrender value is equivalent to an interest rate (after taxes) at which an amount equal to the illustrated premiums could have been invested outside the Policy to arrive at the cash surrender value of the Policy. The internal rate of return on the death benefit is equivalent to an interest rate (after taxes) at which an amount equal to the illustrated premiums could have been invested outside the Policy to arrive at the death benefit of the Policy. Illustrations may also show values based on the historical performance of the Investment Divisions. We reserve the right to impose a $25 fee for each illustration that you request in excess of one per year. SAI-6 PERFORMANCE DATA We may provide information concerning the historical investment experience of the Investment Divisions, including average annual net rates of return for periods of one, three, five, and ten years, as well as average annual net rates of return and total net rates of return since inception of the Portfolios. These net rates of return represent past performance and are not an indication of future performance. Insurance, sales, premium tax, mortality and expense risk and coverage expense charges, which can significantly reduce the return to the Policy Owner, are not reflected in these rates. The rates of return reflect only the fees and expenses of the underlying Portfolios. The net rates of return show performance from the inception of the Portfolios, which in some instances, may precede the inception date of the corresponding Investment Division. REGISTRATION STATEMENT This Statement of Additional Information and the prospectus omit certain information contained in the Registration Statement which has been filed with the SEC. Copies of such additional information may be obtained from the SEC upon payment of the prescribed fee. 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. EXPERTS Barbara Stroz, FSA, Vice President of Metropolitan Life Insurance Company has examined actuarial matters included in the Registration Statement, as stated in her opinion filed as an exhibit to the Registration Statement. FINANCIAL STATEMENTS MetLife's financial statements should be distinguished from the financial statements and financial highlights comprising each of the Investment Divisions of the Separate Account, and should be considered only as bearing on MetLife's ability to meet its obligations under the Policies. They should not be considered as bearing on the investment performance of the assets held in the Separate Account. SAI-7 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, 2015, 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, 2015, 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, 2015, 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 25, 2016 This page is intentionally left blank. METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 2015
AMERICAN AB GLOBAL AB CENTURY VP CAPITAL AMERICAN FUNDS THEMATIC GROWTH INTERMEDIATE BOND APPRECIATION BOND INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value............ $ 39,803 $ 60,559 $ 83 $ 6,208,120 Due from Metropolitan Life Insurance Company.................. -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.................... 39,803 60,559 83 6,208,120 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company.................. -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities............... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.............................. $ 39,803 $ 60,559 $ 83 $ 6,208,120 ==================== ==================== ==================== ====================
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, 2015
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.. $ 67,195,649 $ 164,709,584 $ 101,658,951 $ 415,110 Due from Metropolitan Life Insurance Company........ 1 2 3 -- --------------------- -------------------- --------------------- -------------------- Total Assets.......... 67,195,650 164,709,586 101,658,954 415,110 --------------------- -------------------- --------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- --------------------- -------------------- --------------------- -------------------- Total Liabilities..... -- -- -- -- --------------------- -------------------- --------------------- -------------------- NET ASSETS.................... $ 67,195,650 $ 164,709,586 $ 101,658,954 $ 415,110 ===================== ==================== ===================== ==================== 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.. $ 50,343 $ 211,852 $ 1,870,972 $ 2,775,398 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 50,343 211,852 1,870,972 2,775,398 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 50,343 $ 211,852 $ 1,870,972 $ 2,775,398 ==================== ==================== ==================== ==================== FIDELITY VIP FIDELITY VIP EQUITY-INCOME FREEDOM 2010 INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 12,838 $ 19,219 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 12,838 19,219 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Liabilities..... -- -- -------------------- -------------------- NET ASSETS.................... $ 12,838 $ 19,219 ==================== ====================
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, 2015
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.. $ 528,621 $ 432,727 $ 119,873 $ 89,215 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- --------------------- -------------------- --------------------- Total Assets.......... 528,621 432,727 119,873 89,215 -------------------- --------------------- -------------------- --------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- --------------------- -------------------- --------------------- Total Liabilities..... -- -- -- -- -------------------- --------------------- -------------------- --------------------- NET ASSETS.................... $ 528,621 $ 432,727 $ 119,873 $ 89,215 ==================== ===================== ==================== ===================== 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.. $ 51,384 $ 205,740 $ 1,224,347 $ 279,768 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- --------------------- -------------------- --------------------- Total Assets.......... 51,384 205,740 1,224,347 279,768 -------------------- --------------------- -------------------- --------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- --------------------- -------------------- --------------------- Total Liabilities..... -- -- -- -- -------------------- --------------------- -------------------- --------------------- NET ASSETS.................... $ 51,384 $ 205,740 $ 1,224,347 $ 279,768 ==================== ===================== ==================== ===================== FTVIPT FTVIPT FRANKLIN MUTUAL FRANKLIN INCOME VIP GLOBAL DISCOVERY VIP INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 38,833 $ 479,582 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 38,833 479,582 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Liabilities..... -- -- -------------------- -------------------- NET ASSETS.................... $ 38,833 $ 479,582 ==================== ====================
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, 2015
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.. $ 71,304 $ 5,344,848 $ 559,264 $ 254,367 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 71,304 5,344,848 559,264 254,367 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 71,304 $ 5,344,848 $ 559,264 $ 254,367 ==================== ==================== ==================== ==================== GOLDMAN SACHS SMALL CAP EQUITY INVESCO V.I. INVESCO V.I. JANUS ASPEN INSIGHTS COMSTOCK INTERNATIONAL GROWTH BALANCED INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 33,793 $ 336,660 $ 329,823 $ 1,101,075 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 33,793 336,660 329,823 1,101,075 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 33,793 $ 336,660 $ 329,823 $ 1,101,075 ==================== ==================== ==================== ==================== JANUS ASPEN FORTY JANUS ASPEN JANUS INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 604,552 $ 469,667 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 604,552 469,667 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Liabilities..... -- -- -------------------- -------------------- NET ASSETS.................... $ 604,552 $ 469,667 ==================== ====================
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, 2015
MFS VIT MFS VIT MFS VIT JANUS ASPEN OVERSEAS GLOBAL EQUITY NEW DISCOVERY VALUE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- ------------------- -------------------- ------------------- ASSETS: Investments at fair value.. $ 36,023 $ 182,623 $ 196,330 $ 19,852 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- ------------------- -------------------- ------------------- Total Assets.......... 36,023 182,623 196,330 19,852 -------------------- ------------------- -------------------- ------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- ------------------- -------------------- ------------------- Total Liabilities..... -- -- -- -- -------------------- ------------------- -------------------- ------------------- NET ASSETS.................... $ 36,023 $ 182,623 $ 196,330 $ 19,852 ==================== =================== ==================== =================== MIST MIST AB ALLIANZ GLOBAL MIST MFS VIT II GLOBAL DYNAMIC INVESTORS DYNAMIC AMERICAN FUNDS HIGH YIELD ALLOCATION MULTI-ASSET PLUS BALANCED ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 135,308 $ 61,181 $ 2,020 $ 894,053 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 135,308 61,181 2,020 894,053 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 135,308 $ 61,181 $ 2,020 $ 894,053 ==================== ==================== ==================== ==================== MIST MIST AMERICAN FUNDS AMERICAN FUNDS GROWTH ALLOCATION MODERATE ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 1,538,114 $ 969,592 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 1,538,114 969,592 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Liabilities..... -- -- -------------------- -------------------- NET ASSETS.................... $ 1,538,114 $ 969,592 ==================== ====================
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, 2015
MIST MIST BLACKROCK AQR GLOBAL GLOBAL TACTICAL MIST CLARION MIST CLEARBRIDGE RISK BALANCED STRATEGIES GLOBAL REAL ESTATE AGGRESSIVE GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 134,644 $ 227,159 $ 29,524,589 $ 42,906,770 Due from Metropolitan Life Insurance Company........ -- -- -- 1 -------------------- -------------------- -------------------- -------------------- Total Assets.......... 134,644 227,159 29,524,589 42,906,771 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 134,644 $ 227,159 $ 29,524,589 $ 42,906,771 ==================== ==================== ==================== ==================== MIST MIST INVESCO HARRIS OAKMARK BALANCED-RISK MIST INVESCO MIST INVESCO INTERNATIONAL ALLOCATION MID CAP VALUE SMALL CAP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 38,468,819 $ 38,475 $ 82,921,442 $ 6,552,111 Due from Metropolitan Life Insurance Company........ 1 -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 38,468,820 38,475 82,921,442 6,552,111 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- 1 -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- 1 -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 38,468,820 $ 38,475 $ 82,921,441 $ 6,552,111 ==================== ==================== ==================== ==================== MIST JPMORGAN GLOBAL ACTIVE MIST JPMORGAN ALLOCATION SMALL CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 185,624 $ 310,452 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 185,624 310,452 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Liabilities..... -- -- -------------------- -------------------- NET ASSETS.................... $ 185,624 $ 310,452 ==================== ====================
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, 2015
MIST LOOMIS SAYLES MIST LORD ABBETT MIST MET/TEMPLETON MIST METLIFE GLOBAL MARKETS BOND DEBENTURE INTERNATIONAL BOND ASSET ALLOCATION 100 INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 327,025 $ 27,650,603 $ 183,501 $ 20,442,577 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 327,025 27,650,603 183,501 20,442,577 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- 8 -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- 8 -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 327,025 $ 27,650,595 $ 183,501 $ 20,442,577 ==================== ==================== ==================== ==================== MIST METLIFE MIST MIST METLIFE MULTI-INDEX MIST METLIFE MFS EMERGING BALANCED PLUS TARGETED RISK SMALL CAP VALUE MARKETS EQUITY INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 260,693 $ 136,087 $ 802,028 $ 538,485 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 260,693 136,087 802,028 538,485 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 260,693 $ 136,087 $ 802,028 $ 538,485 ==================== ==================== ==================== ==================== MIST MIST MFS RESEARCH MORGAN STANLEY INTERNATIONAL MID CAP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 18,155,765 $ 212,582,037 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 18,155,765 212,582,037 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ 2 139 -------------------- -------------------- Total Liabilities..... 2 139 -------------------- -------------------- NET ASSETS.................... $ 18,155,763 $ 212,581,898 ==================== ====================
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, 2015
MIST MIST MIST OPPENHEIMER PANAGORA GLOBAL PIMCO INFLATION MIST PIMCO GLOBAL EQUITY DIVERSIFIED RISK PROTECTED BOND TOTAL RETURN INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value.. $ 49,473,240 $ 10 $ 10,147,548 $ 44,320,248 Due from Metropolitan Life Insurance Company........ -- -- -- -- ------------------- -------------------- -------------------- -------------------- Total Assets.......... 49,473,240 10 10,147,548 44,320,248 ------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ 136 -- 1 -- ------------------- -------------------- -------------------- -------------------- Total Liabilities..... 136 -- 1 -- ------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 49,473,104 $ 10 $ 10,147,547 $ 44,320,248 =================== ==================== ==================== ==================== 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.. $ 176,804 $ 3,609 $ 37,661 $ 7,641,743 Due from Metropolitan Life Insurance Company........ -- -- -- -- ------------------- -------------------- ------------------- -------------------- Total Assets.......... 176,804 3,609 37,661 7,641,743 ------------------- -------------------- ------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- ------------------- -------------------- ------------------- -------------------- Total Liabilities..... -- -- -- -- ------------------- -------------------- ------------------- -------------------- NET ASSETS.................... $ 176,804 $ 3,609 $ 37,661 $ 7,641,743 =================== ==================== =================== ==================== MIST SSGA MIST T. ROWE PRICE GROWTH ETF LARGE CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION -------------------- ------------------- ASSETS: Investments at fair value.. $ 6,711,219 $ 2,029,557 Due from Metropolitan Life Insurance Company........ -- -- -------------------- ------------------- Total Assets.......... 6,711,219 2,029,557 -------------------- ------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- ------------------- Total Liabilities..... -- -- -------------------- ------------------- NET ASSETS.................... $ 6,711,219 $ 2,029,557 ==================== ===================
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, 2015
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.. $ 34,019,233 $ 404,612,636 $ 38,861,608 $ 126,951,478 Due from Metropolitan Life Insurance Company........ 1 19 2 -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 34,019,234 404,612,655 38,861,610 126,951,478 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- 1 -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- 1 -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 34,019,234 $ 404,612,655 $ 38,861,610 $ 126,951,477 ==================== ==================== ==================== ==================== 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.. $ 78,353,712 $ 10,225,796 $ 18,418,260 $ 24,684,237 Due from Metropolitan Life Insurance Company........ 14 -- 1 -- -------------------- -------------------- ------------------- -------------------- Total Assets.......... 78,353,726 10,225,796 18,418,261 24,684,237 -------------------- -------------------- ------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- ------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- ------------------- -------------------- NET ASSETS.................... $ 78,353,726 $ 10,225,796 $ 18,418,261 $ 24,684,237 ==================== ==================== =================== ==================== MSF FRONTIER MSF JENNISON MID CAP GROWTH GROWTH INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 227,974,827 $ 24,295,180 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 227,974,827 24,295,180 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ 1 2 -------------------- -------------------- Total Liabilities..... 1 2 -------------------- -------------------- NET ASSETS.................... $ 227,974,826 $ 24,295,178 ==================== ====================
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, 2015
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.. $ 23,094,907 $ 11,185,851 $ 53,555,880 $ 5,434,761 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.......... 23,094,907 11,185,851 53,555,880 5,434,761 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ 21 -- 6 -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... 21 -- 6 -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 23,094,886 $ 11,185,851 $ 53,555,874 $ 5,434,761 ==================== ==================== ==================== ==================== 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.. $ 9,648,019 $ 50,967,639 $ 93,610,979 $ 83,672,127 Due from Metropolitan Life Insurance Company........ -- -- -- 2 -------------------- -------------------- -------------------- -------------------- Total Assets.......... 9,648,019 50,967,639 93,610,979 83,672,129 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities..... -- -- -- -- -------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 9,648,019 $ 50,967,639 $ 93,610,979 $ 83,672,129 ==================== ==================== ==================== ==================== MSF METLIFE MSF MFS STOCK INDEX TOTAL RETURN INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 960,108,112 $ 9,806,863 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 960,108,112 9,806,863 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ 969 -- -------------------- -------------------- Total Liabilities..... 969 -- -------------------- -------------------- NET ASSETS.................... $ 960,107,143 $ 9,806,863 ==================== ====================
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, 2015
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.. $ 82,376,165 $ 76,534,999 $ 101,297,663 $ 68,161,805 Due from Metropolitan Life Insurance Company........ -- -- -- -- ------------------- -------------------- -------------------- ------------------- Total Assets.......... 82,376,165 76,534,999 101,297,663 68,161,805 ------------------- -------------------- -------------------- ------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -- -- ------------------- -------------------- -------------------- ------------------- Total Liabilities..... -- -- -- -- ------------------- -------------------- -------------------- ------------------- NET ASSETS.................... $ 82,376,165 $ 76,534,999 $ 101,297,663 $ 68,161,805 =================== ==================== ==================== =================== 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.. $ 87,850,152 $ 107,313,887 $ 173,650 $ 24,996,182 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- ------------------- -------------------- -------------------- Total Assets.......... 87,850,152 107,313,887 173,650 24,996,182 -------------------- ------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- 367 -- 1 -------------------- ------------------- -------------------- -------------------- Total Liabilities..... -- 367 -- 1 -------------------- ------------------- -------------------- -------------------- NET ASSETS.................... $ 87,850,152 $ 107,313,520 $ 173,650 $ 24,996,181 ==================== =================== ==================== ==================== MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT MSF WMC BALANCED INVESTMENT DIVISION INVESTMENT DIVISION ------------------- -------------------- ASSETS: Investments at fair value.. $ 15,860,627 $ 299,841,096 Due from Metropolitan Life Insurance Company........ -- -- ------------------- -------------------- Total Assets.......... 15,860,627 299,841,096 ------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- 7 ------------------- -------------------- Total Liabilities..... -- 7 ------------------- -------------------- NET ASSETS.................... $ 15,860,627 $ 299,841,089 =================== ====================
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, 2015
MSF WMC OPPENHEIMER PIMCO VIT CORE EQUITY VA MAIN STREET PIMCO VIT COMMODITYREALRETURN OPPORTUNITIES SMALL CAP ALL ASSET STRATEGY INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ------------------- -------------------- ASSETS: Investments at fair value.. $ 72,522,718 $ 9,828 $ 109,756 $ 10,211 Due from Metropolitan Life Insurance Company........ -- -- -- -- -------------------- -------------------- ------------------- -------------------- Total Assets.......... 72,522,718 9,828 109,756 10,211 -------------------- -------------------- ------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ 2 -- -- -- -------------------- -------------------- ------------------- -------------------- Total Liabilities..... 2 -- -- -- -------------------- -------------------- ------------------- -------------------- NET ASSETS.................... $ 72,522,716 $ 9,828 $ 109,756 $ 10,211 ==================== ==================== =================== ==================== 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.. $ 826,247 $ 46,440 $ 5,695 $ 8,139 Due from Metropolitan Life Insurance Company........ -- -- -- -- ------------------- -------------------- -------------------- -------------------- Total Assets.......... 826,247 46,440 5,695 8,139 ------------------- -------------------- -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ 1,323 -- -- -- ------------------- -------------------- -------------------- -------------------- Total Liabilities..... 1,323 -- -- -- ------------------- -------------------- -------------------- -------------------- NET ASSETS.................... $ 824,924 $ 46,440 $ 5,695 $ 8,139 =================== ==================== ==================== ==================== UIF EMERGING ROYCE SMALL-CAP MARKETS DEBT INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.. $ 53,973 $ 915,935 Due from Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Assets.......... 53,973 915,935 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company........ -- -- -------------------- -------------------- Total Liabilities..... -- -- -------------------- -------------------- NET ASSETS.................... $ 53,973 $ 915,935 ==================== ====================
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, 2015
UIF EMERGING WELLS FARGO VT MARKETS EQUITY TOTAL RETURN BOND INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- ASSETS: Investments at fair value.......................................................... $ 2,225,571 $ 239,758 Due from Metropolitan Life Insurance Company................................................................ -- -- -------------------- -------------------- Total Assets.................................................................. 2,225,571 239,758 -------------------- -------------------- LIABILITIES: Due to Metropolitan Life Insurance Company................................................................ -- 145 -------------------- -------------------- Total Liabilities............................................................. -- 145 -------------------- -------------------- NET ASSETS............................................................................ $ 2,225,571 $ 239,613 ==================== ====================
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, 2015, 2014 AND 2013
AB GLOBAL THEMATIC GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- 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....... 4,879 1,302 (1,496) -------------------- -------------------- -------------------- Net realized gains (losses)..................... 4,879 1,302 (1,496) -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (2,756) 2,635 14,581 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 2,123 3,937 13,085 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 2,123 $ 3,937 $ 13,098 ==================== ==================== ==================== AB INTERMEDIATE BOND INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 2,061 $ 1,921 $ 1,888 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 2,061 1,921 1,888 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,833 810 1,675 Realized gains (losses) on sale of investments....... (171) (121) (24) -------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,662 689 1,651 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (3,852) 952 (5,086) -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (2,190) 1,641 (3,435) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (129) $ 3,562 $ (1,547) ==================== ==================== ==================== AMERICAN CENTURY VP CAPITAL APPRECIATION INVESTMENT DIVISION ------------------------------------------- 2015 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.......................... 23 -- Realized gains (losses) on sale of investments....... 33 12 -------------------- -------------------- Net realized gains (losses)..................... 56 12 -------------------- -------------------- Change in unrealized gains (losses) on investments... (38) 42 -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 18 54 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 18 $ 54 ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
AMERICAN FUNDS BOND INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 104,107 $ 115,025 $ 100,255 -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 8,549 8,401 8,663 -------------------- -------------------- --------------------- Net investment income (loss).................... 95,558 106,624 91,592 -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 116,557 2,120 61,561 Realized gains (losses) on sale of investments....... (3,532) 4,807 741 -------------------- -------------------- --------------------- Net realized gains (losses)..................... 113,025 6,927 62,302 -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (201,734) 172,487 (282,587) -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (88,709) 179,414 (220,285) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 6,849 $ 286,038 $ (128,693) ==================== ==================== ===================== AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ 88,263 $ 571,973 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 91,602 95,114 90,217 --------------------- -------------------- -------------------- Net investment income (loss).................... (91,602) (6,851) 481,756 --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 5,579,846 320,860 -- Realized gains (losses) on sale of investments....... 1,343,378 1,028,540 556,105 --------------------- -------------------- -------------------- Net realized gains (losses)..................... 6,923,224 1,349,400 556,105 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (6,348,033) 96,482 15,213,508 --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 575,191 1,445,882 15,769,613 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 483,589 $ 1,439,031 $ 16,251,369 ===================== ==================== ==================== AMERICAN FUNDS GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 1,004,590 $ 1,286,837 $ 1,364,727 -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 155,259 152,282 139,123 -------------------- -------------------- --------------------- Net investment income (loss).................... 849,331 1,134,555 1,225,604 -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 34,618,471 7,869,597 -- Realized gains (losses) on sale of investments....... 3,175,509 3,654,149 2,872,251 -------------------- -------------------- --------------------- Net realized gains (losses)..................... 37,793,980 11,523,746 2,872,251 -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (27,669,113) 413,436 34,086,809 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 10,124,867 11,937,182 36,959,060 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 10,974,198 $ 13,071,737 $ 38,184,664 ==================== ==================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
AMERICAN FUNDS GROWTH-INCOME INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,369,670 $ 1,339,033 $ 1,235,600 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 103,704 103,335 89,908 -------------------- -------------------- -------------------- Net investment income (loss).................... 1,265,966 1,235,698 1,145,692 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 15,356,438 5,003,511 -- Realized gains (losses) on sale of investments....... 1,779,863 2,212,712 1,441,252 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 17,136,301 7,216,223 1,441,252 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (16,929,014) 1,935,227 23,374,516 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 207,287 9,151,450 24,815,768 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 1,473,253 $ 10,387,148 $ 25,961,460 ==================== ==================== ==================== AMERICAN FUNDS INTERNATIONAL INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 7,125 $ 9,668 $ 7,749 -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- --------------------- Net investment income (loss).................... 7,125 9,668 7,749 -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 32,754 -- -- Realized gains (losses) on sale of investments....... 20,582 3,059 27,615 -------------------- -------------------- --------------------- Net realized gains (losses)..................... 53,336 3,059 27,615 -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (72,634) (30,549) 63,361 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (19,298) (27,490) 90,976 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (12,173) $ (17,822) $ 98,725 ==================== ==================== ===================== AMERICAN FUNDS U.S. GOVERNMENT/AAA-RATED SECURITIES INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 712 $ 520 $ 317 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 712 520 317 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 404 -- 1,258 Realized gains (losses) on sale of investments....... (3) (30) (28) -------------------- -------------------- -------------------- Net realized gains (losses)..................... 401 (30) 1,230 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (350) 1,820 (2,996) -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 51 1,790 (1,766) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 763 $ 2,310 $ (1,449) ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
DREYFUS VIF INTERNATIONAL VALUE INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 4,421 $ 3,201 $ 4,021 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 4,421 3,201 4,021 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (390) (210) (906) --------------------- --------------------- --------------------- Net realized gains (losses)..................... (390) (210) (906) --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (10,460) (26,366) 42,909 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (10,850) (26,576) 42,003 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (6,429) $ (23,375) $ 46,024 ===================== ===================== ===================== FIDELITY VIP ASSET MANAGER: GROWTH INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 20,958 $ 20,809 $ 16,073 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 20,958 20,809 16,073 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,145 1,627 5,165 Realized gains (losses) on sale of investments....... 127,820 33,797 110,324 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 128,965 35,424 115,489 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (145,469) 59,690 260,059 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (16,504) 95,114 375,548 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 4,454 $ 115,923 $ 391,621 ===================== ===================== ===================== FIDELITY VIP CONTRAFUND INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 25,926 $ 24,338 $ 23,521 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 25,926 24,338 23,521 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 265,481 56,967 690 Realized gains (losses) on sale of investments....... 107,564 61,174 146,443 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 373,045 118,141 147,133 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (372,526) 174,211 505,651 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 519 292,352 652,784 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 26,445 $ 316,690 $ 676,305 ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
FIDELITY VIP EQUITY-INCOME INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 426 $ 687 $ 752 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 426 687 752 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 2,231 338 2,042 Realized gains (losses) on sale of investments....... 275 718 2,076 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 2,506 1,056 4,118 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (3,341) 37 3,227 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (835) 1,093 7,345 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (409) $ 1,780 $ 8,097 ===================== ===================== ===================== FIDELITY VIP FREEDOM 2010 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 361 $ 775 $ 755 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- 29 192 --------------------- --------------------- --------------------- Net investment income (loss).................... 361 746 563 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 65 738 501 Realized gains (losses) on sale of investments....... 5,610 2,715 164 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 5,675 3,453 665 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (5,470) (2,030) 3,994 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 205 1,423 4,659 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 566 $ 2,169 $ 5,222 ===================== ===================== ===================== FIDELITY VIP FREEDOM 2020 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 10,060 $ 16,277 $ 16,665 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- 108 653 --------------------- --------------------- --------------------- Net investment income (loss).................... 10,060 16,169 16,012 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 2,356 17,423 11,508 Realized gains (losses) on sale of investments....... 166,915 21,410 10,474 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 169,271 38,833 21,982 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (177,998) (8,502) 93,753 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (8,727) 30,331 115,735 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 1,333 $ 46,500 $ 131,747 ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
FIDELITY VIP FREEDOM 2025 INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 (b) -------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 8,151 $ 613 $ 694 -------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- --------------------- --------------------- Net investment income (loss).................... 8,151 613 694 -------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 2,389 771 278 Realized gains (losses) on sale of investments....... 231 464 135 -------------------- --------------------- --------------------- Net realized gains (losses)..................... 2,620 1,235 413 -------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (13,249) 73 3,626 -------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (10,629) 1,308 4,039 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (2,478) $ 1,921 $ 4,733 ==================== ===================== ===================== FIDELITY VIP FREEDOM 2030 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 2,154 $ 1,233 $ 993 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- 38 230 --------------------- --------------------- --------------------- Net investment income (loss).................... 2,154 1,195 763 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 611 1,344 844 Realized gains (losses) on sale of investments....... 1,142 11,989 2,703 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 1,753 13,333 3,547 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (4,989) (10,096) 5,619 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (3,236) 3,237 9,166 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (1,082) $ 4,432 $ 9,929 ===================== ===================== ===================== FIDELITY VIP FREEDOM 2040 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 (c) --------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 1,492 $ 775 $ 170 --------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- 8 17 --------------------- -------------------- --------------------- Net investment income (loss).................... 1,492 767 153 --------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 541 487 76 Realized gains (losses) on sale of investments....... 263 749 4 --------------------- -------------------- --------------------- Net realized gains (losses)..................... 804 1,236 80 --------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (3,345) (709) 545 --------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (2,541) 527 625 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (1,049) $ 1,294 $ 778 ===================== ==================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
FIDELITY VIP FREEDOM 2050 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 878 $ 369 $ 284 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- 14 89 --------------------- --------------------- --------------------- Net investment income (loss).................... 878 355 195 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 308 382 229 Realized gains (losses) on sale of investments....... 535 6,257 94 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 843 6,639 323 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (2,416) (5,093) 4,037 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (1,573) 1,546 4,360 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (695) $ 1,901 $ 4,555 ===================== ===================== ===================== FIDELITY VIP HIGH INCOME INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 14,336 $ 10,183 $ 9,677 --------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- -------------------- Net investment income (loss).................... 14,336 10,183 9,677 --------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (455) 158 73 --------------------- --------------------- -------------------- Net realized gains (losses)..................... (455) 158 73 --------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (20,979) (8,210) (126) --------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (21,434) (8,052) (53) --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (7,098) $ 2,131 $ 9,624 ===================== ===================== ==================== FIDELITY VIP INVESTMENT GRADE BOND INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 31,506 $ 26,958 $ 39,909 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 31,506 26,958 39,909 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 993 644 21,294 Realized gains (losses) on sale of investments....... (839) (16,379) (28,717) --------------------- --------------------- --------------------- Net realized gains (losses)..................... 154 (15,735) (7,423) --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (39,907) 77,902 (76,349) --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (39,753) 62,167 (83,772) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (8,247) $ 89,125 $ (43,863) ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
FIDELITY VIP MID CAP INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 745 $ 48 $ 613 --------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- -------------------- --------------------- Net investment income (loss).................... 745 48 613 --------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 30,638 5,961 35,674 Realized gains (losses) on sale of investments....... 648 4,531 172,540 --------------------- -------------------- --------------------- Net realized gains (losses)..................... 31,286 10,492 208,214 --------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (36,156) 4,318 1,232 --------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (4,870) 14,810 209,446 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (4,125) $ 14,858 $ 210,059 ===================== ==================== ===================== FTVIPT FRANKLIN INCOME VIP INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 (d) -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,086 $ 385 $ -- -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- --------------------- -------------------- Net investment income (loss).................... 1,086 385 -- -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (154) (51) 3 -------------------- --------------------- -------------------- Net realized gains (losses)..................... (154) (51) 3 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (2,439) (1,084) 8 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (2,593) (1,135) 11 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (1,507) $ (750) $ 11 ==================== ===================== ==================== FTVIPT FRANKLIN MUTUAL GLOBAL DISCOVERY VIP INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 13,670 $ 10,690 $ 19,686 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- -------------------- -------------------- Net investment income (loss).................... 13,670 10,690 19,686 --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 27,512 33,082 81,814 Realized gains (losses) on sale of investments....... 194 10,518 59,341 --------------------- -------------------- -------------------- Net realized gains (losses)..................... 27,706 43,600 141,155 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (58,851) (24,521) 47,244 --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (31,145) 19,079 188,399 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (17,475) $ 29,769 $ 208,085 ===================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
FTVIPT FRANKLIN MUTUAL SHARES VIP INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 (d) -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,895 $ 789 $ 445 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 1,895 789 445 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 4,180 205 -- Realized gains (losses) on sale of investments....... 33 259 105 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 4,213 464 105 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (9,723) 1,131 2,000 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (5,510) 1,595 2,105 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (3,615) $ 2,384 $ 2,550 ==================== ==================== ==================== FTVIPT TEMPLETON FOREIGN VIP INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 189,205 $ 78,379 $ 98,174 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 189,205 78,379 98,174 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 177,426 -- -- Realized gains (losses) on sale of investments....... 5,027 156,830 73,110 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 182,453 156,830 73,110 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (703,728) (709,096) 689,874 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (521,275) (552,266) 762,984 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (332,070) $ (473,887) $ 861,158 ==================== ==================== ==================== FTVIPT TEMPLETON GLOBAL BOND VIP INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 83,772 $ 65,826 $ 20,975 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 83,772 65,826 20,975 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 5,274 -- 5,202 Realized gains (losses) on sale of investments....... (97,965) (644) 1,245 -------------------- -------------------- -------------------- Net realized gains (losses)..................... (92,691) (644) 6,447 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (36,601) (38,430) (6,052) -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (129,292) (39,074) 395 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (45,520) $ 26,752 $ 21,370 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
GOLDMAN SACHS MID-CAP VALUE INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 1,118 $ 2,932 $ 2,312 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 1,118 2,932 2,312 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 20,122 48,819 22,308 Realized gains (losses) on sale of investments....... 671 7,493 9,943 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 20,793 56,312 32,251 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (48,920) (21,021) 43,303 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (28,127) 35,291 75,554 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (27,009) $ 38,223 $ 77,866 ===================== ===================== ===================== GOLDMAN SACHS SMALL CAP EQUITY INSIGHTS INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 104 $ 277 $ 373 -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- --------------------- Net investment income (loss).................... 104 277 373 -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 4,391 5,208 4,708 Realized gains (losses) on sale of investments....... 336 1,707 1,040 -------------------- -------------------- --------------------- Net realized gains (losses)..................... 4,727 6,915 5,748 -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (5,505) (4,589) 3,869 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (778) 2,326 9,617 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (674) $ 2,603 $ 9,990 ==================== ==================== ===================== INVESCO V.I. COMSTOCK INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 5,695 $ 3,587 $ 4,077 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 5,695 3,587 4,077 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 941 -- -- Realized gains (losses) on sale of investments....... 3,469 2,447 1,475 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 4,410 2,447 1,475 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (32,126) 22,523 78,224 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (27,716) 24,970 79,699 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (22,021) $ 28,557 $ 83,776 ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
INVESCO V.I. INTERNATIONAL GROWTH INVESTMENT DIVISION ----------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- ---------------------- INVESTMENT INCOME: Dividends............................................ $ 5,017 $ 5,421 $ 4,576 --------------------- --------------------- ---------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- ---------------------- Net investment income (loss)................... 5,017 5,421 4,576 --------------------- --------------------- ---------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 2,637 5,138 926,281 --------------------- --------------------- ---------------------- Net realized gains (losses).................... 2,637 5,138 926,281 --------------------- --------------------- ---------------------- Change in unrealized gains (losses) on investments... (13,856) (10,871) (647,277) --------------------- --------------------- ---------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (11,219) (5,733) 279,004 --------------------- --------------------- ---------------------- Net increase (decrease) in net assets resulting from operations................................... $ (6,202) $ (312) $ 283,580 ===================== ===================== ====================== JANUS ASPEN BALANCED INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 15,263 $ 16,228 $ 13,254 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss)................... 15,263 16,228 13,254 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 35,506 26,985 54,904 Realized gains (losses) on sale of investments....... 5,452 10,485 25,371 --------------------- --------------------- --------------------- Net realized gains (losses).................... 40,958 37,470 80,275 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (51,128) 30,740 94,265 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (10,170) 68,210 174,540 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 5,093 $ 84,438 $ 187,794 ===================== ===================== ===================== JANUS ASPEN FORTY INVESTMENT DIVISION ----------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- ---------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ 252 $ 4,954 --------------------- --------------------- ---------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- ---------------------- Net investment income (loss)................... -- 252 4,954 --------------------- --------------------- ---------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 121,081 249,329 -- Realized gains (losses) on sale of investments....... 1,569 62,849 69,285 --------------------- --------------------- ---------------------- Net realized gains (losses).................... 122,650 312,178 69,285 --------------------- --------------------- ---------------------- Change in unrealized gains (losses) on investments... (57,429) (248,123) 155,845 --------------------- --------------------- ---------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 65,221 64,055 225,130 --------------------- --------------------- ---------------------- Net increase (decrease) in net assets resulting from operations................................... $ 65,221 $ 64,307 $ 230,084 ===================== ===================== ======================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
JANUS ASPEN JANUS INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 2,968 $ 1,630 $ 6,858 --------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- -------------------- Net investment income (loss).................... 2,968 1,630 6,858 --------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 84,817 31,621 -- Realized gains (losses) on sale of investments....... 17,674 9,477 258,951 --------------------- --------------------- -------------------- Net realized gains (losses)..................... 102,491 41,098 258,951 --------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (79,472) 12,182 (62,054) --------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 23,019 53,280 196,897 --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 25,987 $ 54,910 $ 203,755 ===================== ===================== ==================== JANUS ASPEN OVERSEAS INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 225 $ 1,960 $ 11,835 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 225 1,960 11,835 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,449 6,620 -- Realized gains (losses) on sale of investments....... (6,243) (4,308) (73,759) --------------------- --------------------- --------------------- Net realized gains (losses)..................... (4,794) 2,312 (73,759) --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... 363 (10,605) 113,083 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (4,431) (8,293) 39,324 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (4,206) $ (6,333) $ 51,159 ===================== ===================== ===================== MFS VIT GLOBAL EQUITY INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,587 $ 974 $ 1,253 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 1,587 974 1,253 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 6,506 1,843 -- Realized gains (losses) on sale of investments....... 2,452 2,541 550 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 8,958 4,384 550 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (14,256) 1,213 37,978 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (5,298) 5,597 38,528 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (3,711) $ 6,571 $ 39,781 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MFS VIT NEW DISCOVERY INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- --------------------- 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.......................... 6,957 45,559 1,718 Realized gains (losses) on sale of investments....... 374 1,237 1,963 --------------------- -------------------- --------------------- Net realized gains (losses)..................... 7,331 46,796 3,681 --------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (11,470) (63,957) 65,025 --------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (4,139) (17,161) 68,706 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (4,139) $ (17,161) $ 68,706 ===================== ==================== ===================== MFS VIT VALUE INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 439 $ 285 $ 197 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 439 285 197 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,237 670 61 Realized gains (losses) on sale of investments....... 659 571 323 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,896 1,241 384 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (2,518) 559 5,315 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (622) 1,800 5,699 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (183) $ 2,085 $ 5,896 ==================== ==================== ==================== MFS VIT II HIGH YIELD INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 (e) --------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 9,868 $ 8,003 $ 3,270 --------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- -------------------- --------------------- Net investment income (loss).................... 9,868 8,003 3,270 --------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (99) 25 (3) --------------------- -------------------- --------------------- Net realized gains (losses)..................... (99) 25 (3) --------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (16,013) (4,175) 2,275 --------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (16,112) (4,150) 2,272 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (6,244) $ 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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST AB GLOBAL DYNAMIC ALLOCATION INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 2,180 $ 860 $ 139 -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- --------------------- Net investment income (loss).................... 2,180 860 139 -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 2,323 856 231 Realized gains (losses) on sale of investments....... (101) 135 67 -------------------- -------------------- --------------------- Net realized gains (losses)..................... 2,222 991 298 -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (4,443) 1,384 1,389 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (2,221) 2,375 1,687 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (41) $ 3,235 $ 1,826 ==================== ==================== ===================== MIST ALLIANZ GLOBAL INVESTORS DYNAMIC MULTI-ASSET PLUS INVESTMENT DIVISION -------------------------------------------- 2015 2014 (a) -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 21 $ -- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -------------------- --------------------- Net investment income (loss).................... 21 -- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 19 1 Realized gains (losses) on sale of investments....... (278) -- -------------------- --------------------- Net realized gains (losses)..................... (259) 1 -------------------- --------------------- Change in unrealized gains (losses) on investments... (72) 1 -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (331) 2 -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (310) $ 2 ==================== ===================== MIST AMERICAN FUNDS BALANCED ALLOCATION INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 15,506 $ 13,034 $ 11,592 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- -------------------- -------------------- Net investment income (loss).................... 15,506 13,034 11,592 --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 46,196 78,760 42,196 Realized gains (losses) on sale of investments....... 3,497 6,182 5,669 --------------------- -------------------- -------------------- Net realized gains (losses)..................... 49,693 84,942 47,865 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (69,036) (47,376) 62,896 --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (19,343) 37,566 110,761 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (3,837) $ 50,600 $ 122,353 ===================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST AMERICAN FUNDS GROWTH ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 24,524 $ 20,605 $ 16,414 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 24,524 20,605 16,414 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 95,418 237,874 69,006 Realized gains (losses) on sale of investments....... 15,416 24,970 36,038 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 110,834 262,844 105,044 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (141,365) (180,168) 172,370 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (30,531) 82,676 277,414 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (6,007) $ 103,281 $ 293,828 ==================== ==================== ==================== MIST AMERICAN FUNDS MODERATE ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 17,019 $ 15,920 $ 14,487 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 17,019 15,920 14,487 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 40,376 77,010 39,313 Realized gains (losses) on sale of investments....... 12,509 5,925 5,863 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 52,885 82,935 45,176 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (73,320) (41,113) 36,688 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (20,435) 41,822 81,864 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (3,416) $ 57,742 $ 96,351 ==================== ==================== ==================== MIST AQR GLOBAL RISK BALANCED INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 7,434 $ -- $ 1,949 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 7,434 -- 1,949 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 13,315 786 3,632 Realized gains (losses) on sale of investments....... (2,519) (660) 169 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 10,796 126 3,801 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (30,868) 5,443 (10,413) -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (20,072) 5,569 (6,612) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (12,638) $ 5,569 $ (4,663) ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST BLACKROCK GLOBAL TACTICAL STRATEGIES INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 3,577 $ 1,792 $ 951 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss).................... 3,577 1,792 951 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 9,296 8,451 1,537 Realized gains (losses) on sale of investments....... 49 363 238 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 9,345 8,814 1,775 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (14,933) (1,686) 4,911 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (5,588) 7,128 6,686 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (2,011) $ 8,920 $ 7,637 ===================== ===================== ===================== MIST CLARION GLOBAL REAL ESTATE INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 1,234,670 $ 513,864 $ 1,883,980 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 31,928 33,399 31,537 --------------------- --------------------- --------------------- Net investment income (loss).................... 1,202,742 480,465 1,852,443 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 48,531 314,419 (121,862) --------------------- --------------------- --------------------- Net realized gains (losses)..................... 48,531 314,419 (121,862) --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (1,654,271) 3,062,383 (768,686) --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (1,605,740) 3,376,802 (890,548) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (402,998) $ 3,857,267 $ 961,895 ===================== ===================== ===================== MIST CLEARBRIDGE AGGRESSIVE GROWTH INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 198,717 $ 72,926 $ 71,803 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 45,621 36,095 12,286 --------------------- --------------------- --------------------- Net investment income (loss).................... 153,096 36,831 59,517 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 1,820,551 867,002 455,065 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 1,820,551 867,002 455,065 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (3,670,688) 5,750,935 6,062,472 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (1,850,137) 6,617,937 6,517,537 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (1,697,041) $ 6,654,768 $ 6,577,054 ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST HARRIS OAKMARK INTERNATIONAL INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 1,358,813 $ 1,105,911 $ 1,234,640 -------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 57,999 62,335 58,015 -------------------- --------------------- --------------------- Net investment income (loss).................... 1,300,814 1,043,576 1,176,625 -------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 3,880,482 4,067,270 -- Realized gains (losses) on sale of investments....... 49,542 1,812,640 663,573 -------------------- --------------------- --------------------- Net realized gains (losses)..................... 3,930,024 5,879,910 663,573 -------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (6,964,997) (9,320,626) 9,999,502 -------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (3,034,973) (3,440,716) 10,663,075 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (1,734,159) $ (2,397,140) $ 11,839,700 ==================== ===================== ===================== MIST INVESCO BALANCED-RISK ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,200 $ -- $ -- -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- --------------------- -------------------- Net investment income (loss).................... 1,200 -- -- -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 3,078 1,200 159 Realized gains (losses) on sale of investments....... (1,351) 65 (33) -------------------- --------------------- -------------------- Net realized gains (losses)..................... 1,727 1,265 126 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (4,753) 178 124 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (3,026) 1,443 250 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (1,826) $ 1,443 $ 250 ==================== ===================== ==================== MIST INVESCO MID CAP VALUE INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 652,691 $ 652,762 $ 762,499 -------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 88,957 90,624 83,667 -------------------- --------------------- --------------------- Net investment income (loss).................... 563,734 562,138 678,832 -------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 4,446,457 16,068,302 -- Realized gains (losses) on sale of investments....... 732,310 1,049,905 935,109 -------------------- --------------------- --------------------- Net realized gains (losses)..................... 5,178,767 17,118,207 935,109 -------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (13,696,346) (8,899,738) 20,593,687 -------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (8,517,579) 8,218,469 21,528,796 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (7,953,845) $ 8,780,607 $ 22,207,628 ==================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST INVESCO SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 9,561 $ -- $ 23,000 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 9,074 8,994 7,768 -------------------- -------------------- -------------------- Net investment income (loss).................... 487 (8,994) 15,232 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,773,695 783,328 326,110 Realized gains (losses) on sale of investments....... 1,804 187,042 243,128 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,775,499 970,370 569,238 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (1,866,286) (438,103) 1,365,097 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (90,787) 532,267 1,934,335 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (90,300) $ 523,273 $ 1,949,567 ==================== ==================== ==================== MIST JPMORGAN GLOBAL ACTIVE ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 5,107 $ 1,679 $ 54 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 5,107 1,679 54 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 8,853 4,582 321 Realized gains (losses) on sale of investments....... (120) 660 (595) -------------------- -------------------- -------------------- Net realized gains (losses)..................... 8,733 5,242 (274) -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (12,813) 2,680 5,829 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (4,080) 7,922 5,555 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 1,027 $ 9,601 $ 5,609 ==================== ==================== ==================== MIST JPMORGAN SMALL CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 4,196 $ 2,563 $ 337 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 4,196 2,563 337 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 26,694 28,052 -- Realized gains (losses) on sale of investments....... (765) 2,277 2,408 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 25,929 30,329 2,408 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (52,802) (18,929) 28,817 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (26,873) 11,400 31,225 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (22,677) $ 13,963 $ 31,562 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST LOOMIS SAYLES GLOBAL MARKETS INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 (d) -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 7,875 $ 9,637 $ -- -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- --------------------- Net investment income (loss).................... 7,875 9,637 -- -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 18,423 4,771 705 -------------------- -------------------- --------------------- Net realized gains (losses)..................... 18,423 4,771 705 -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (13,993) 1,137 43,104 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 4,430 5,908 43,809 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 12,305 $ 15,545 $ 43,809 ==================== ==================== ===================== MIST LORD ABBETT BOND DEBENTURE INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,671,598 $ 1,679,139 $ 1,965,620 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 60,107 62,645 63,217 --------------------- -------------------- -------------------- Net investment income (loss).................... 1,611,491 1,616,494 1,902,403 --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,177,717 782,757 -- Realized gains (losses) on sale of investments....... 24,577 320,061 299,375 --------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,202,294 1,102,818 299,375 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (3,396,105) (1,312,784) (7,269) --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (2,193,811) (209,966) 292,106 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (582,320) $ 1,406,528 $ 2,194,509 ===================== ==================== ==================== MIST MET/TEMPLETON INTERNATIONAL BOND INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 16,491 $ 6,729 $ 302 -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- --------------------- Net investment income (loss).................... 16,491 6,729 302 -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 355 -- 61 Realized gains (losses) on sale of investments....... (5,538) 6 (24) -------------------- -------------------- --------------------- Net realized gains (losses)..................... (5,183) 6 37 -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (19,099) (3,576) 996 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (24,282) (3,570) 1,033 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (7,791) $ 3,159 $ 1,335 ==================== ==================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST METLIFE ASSET ALLOCATION 100 INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 322,952 $ 181,683 $ 158,967 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 16,490 16,174 14,210 --------------------- --------------------- --------------------- Net investment income (loss).................... 306,462 165,509 144,757 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,572,075 -- -- Realized gains (losses) on sale of investments....... 325,688 437,534 243,289 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 1,897,763 437,534 243,289 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (2,617,113) 404,377 4,045,633 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (719,350) 841,911 4,288,922 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (412,888) $ 1,007,420 $ 4,433,679 ===================== ===================== ===================== MIST METLIFE BALANCED PLUS INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 4,773 $ 2,715 $ 778 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 4,773 2,715 778 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 13,434 12,036 1,257 Realized gains (losses) on sale of investments....... (2,885) 220 2,685 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 10,549 12,256 3,942 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (26,058) (517) 4,689 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (15,509) 11,739 8,631 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (10,736) $ 14,454 $ 9,409 ==================== ==================== ==================== MIST METLIFE MULTI-INDEX TARGETED RISK INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 (d) -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 1,398 $ -- $ 6 -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- --------------------- Net investment income (loss).................... 1,398 -- 6 -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 3,097 172 47 Realized gains (losses) on sale of investments....... 1,073 90 (241) -------------------- -------------------- --------------------- Net realized gains (losses)..................... 4,170 262 (194) -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (7,672) 4,343 52 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (3,502) 4,605 (142) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (2,104) $ 4,605 $ (136) ==================== ==================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST METLIFE SMALL CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 800 $ 366 $ 9,744 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 800 366 9,744 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 310,745 38,852 -- Realized gains (losses) on sale of investments....... 1,317 32,257 47,240 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 312,062 71,109 47,240 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (358,930) (58,142) 199,123 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (46,868) 12,967 246,363 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (46,068) $ 13,333 $ 256,107 ==================== ==================== ==================== MIST MFS EMERGING MARKETS EQUITY INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- ------------------- INVESTMENT INCOME: Dividends............................................ $ 10,228 $ 2,914 $ 1,482 -------------------- -------------------- ------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- ------------------- Net investment income (loss).................... 10,228 2,914 1,482 -------------------- -------------------- ------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (4,559) (2,174) 254 -------------------- -------------------- ------------------- Net realized gains (losses)..................... (4,559) (2,174) 254 -------------------- -------------------- ------------------- Change in unrealized gains (losses) on investments... (82,085) (31,587) (3,821) -------------------- -------------------- ------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (86,644) (33,761) (3,567) -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (76,416) $ (30,847) $ (2,085) ==================== ==================== =================== MIST MFS RESEARCH INTERNATIONAL INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 565,935 $ 483,322 $ 475,117 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 17,693 18,674 17,938 -------------------- -------------------- -------------------- Net investment income (loss).................... 548,242 464,648 457,179 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 34,366 144,798 48,641 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 34,366 144,798 48,641 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (864,226) (2,026,000) 2,877,942 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (829,860) (1,881,202) 2,926,583 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (281,618) $ (1,416,554) $ 3,383,762 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST MORGAN STANLEY MID CAP GROWTH INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ----------------- ------------------ ------------------ INVESTMENT INCOME: Dividends............................................ $ -- $ 132,861 $ 1,687,241 ----------------- ------------------ ------------------ EXPENSES: Mortality and expense risk charges................... 686,901 717,140 654,660 ----------------- ------------------ ------------------ Net investment income (loss).................... (686,901) (584,279) 1,032,581 ----------------- ------------------ ------------------ NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 4,836,759 5,665,992 3,781,941 ----------------- ------------------ ------------------ Net realized gains (losses)..................... 4,836,759 5,665,992 3,781,941 ----------------- ------------------ ------------------ Change in unrealized gains (losses) on investments... (15,427,415) (2,867,790) 65,460,998 ----------------- ------------------ ------------------ Net realized and changes in unrealized gains (losses) on investments.................................... (10,590,656) 2,798,202 69,242,939 ----------------- ------------------ ------------------ Net increase (decrease) in net assets resulting from operations................................... $ (11,277,557) $ 2,213,923 $ 70,275,520 ================= ================== ================== MIST OPPENHEIMER GLOBAL EQUITY INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ------------------ INVESTMENT INCOME: Dividends............................................ $ 609,199 $ 505,389 $ 945,127 ----------------- ----------------- ------------------ EXPENSES: Mortality and expense risk charges................... 104,779 89,693 97,189 ----------------- ----------------- ------------------ Net investment income (loss).................... 504,420 415,696 847,938 ----------------- ----------------- ------------------ NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,119,227 1,468,712 -- Realized gains (losses) on sale of investments....... 1,459,506 1,473,679 1,128,194 ----------------- ----------------- ------------------ Net realized gains (losses)..................... 2,578,733 2,942,391 1,128,194 ----------------- ----------------- ------------------ Change in unrealized gains (losses) on investments... (1,183,054) (2,309,701) 9,078,535 ----------------- ----------------- ------------------ Net realized and changes in unrealized gains (losses) on investments.................................... 1,395,679 632,690 10,206,729 ----------------- ----------------- ------------------ Net increase (decrease) in net assets resulting from operations................................... $ 1,900,099 $ 1,048,386 $ 11,054,667 ================= ================= ================== MIST PANAGORA GLOBAL DIVERSIFIED RISK INVESTMENT DIVISION ------------------- 2015 (f) ------------------- INVESTMENT INCOME: Dividends............................................ $ 50 ------------------- EXPENSES: Mortality and expense risk charges................... -- ------------------- Net investment income (loss).................... 50 ------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 65 Realized gains (losses) on sale of investments....... (360) ------------------- Net realized gains (losses)..................... (295) ------------------- Change in unrealized gains (losses) on investments... 1 ------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (294) ------------------- Net increase (decrease) in net assets resulting from operations................................... $ (244) =================== MIST PIMCO INFLATION PROTECTED BOND INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- INVESTMENT INCOME: Dividends............................................ $ 559,967 $ 213,452 $ 302,323 ----------------- ----------------- ----------------- EXPENSES: Mortality and expense risk charges................... 19,912 21,738 25,479 ----------------- ----------------- ----------------- Net investment income (loss).................... 540,055 191,714 276,844 ----------------- ----------------- ----------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- 719,437 Realized gains (losses) on sale of investments....... (211,211) (162,419) (174,195) ----------------- ----------------- ----------------- Net realized gains (losses)..................... (211,211) (162,419) 545,242 ----------------- ----------------- ----------------- Change in unrealized gains (losses) on investments... (655,945) 319,472 (2,018,492) ----------------- ----------------- ----------------- Net realized and changes in unrealized gains (losses) on investments.................................... (867,156) 157,053 (1,473,250) ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from operations................................... $ (327,101) $ 348,767 $ (1,196,406) ================= ================= =================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST PIMCO TOTAL RETURN INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 2,501,824 $ 1,261,172 $ 2,175,351 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 58,540 62,315 65,679 -------------------- -------------------- -------------------- Net investment income (loss).................... 2,443,284 1,198,857 2,109,672 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 545,027 -- 954,935 Realized gains (losses) on sale of investments....... (40,218) 36,542 128,011 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 504,809 36,542 1,082,946 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (2,854,535) 873,849 (4,155,495) -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (2,349,726) 910,391 (3,072,549) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 93,558 $ 2,109,248 $ (962,877) ==================== ==================== ==================== MIST PIONEER FUND INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 ------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 2,424 $ 3,502 $ 6,252 ------------------- ------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- ------------------- ------------------- -------------------- Net investment income (loss).................... 2,424 3,502 6,252 ------------------- ------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 17,906 58,159 -- Realized gains (losses) on sale of investments....... 10,751 553 17,551 ------------------- ------------------- -------------------- Net realized gains (losses)..................... 28,657 58,712 17,551 ------------------- ------------------- -------------------- Change in unrealized gains (losses) on investments... (29,816) (39,539) 32,389 ------------------- ------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (1,159) 19,173 49,940 ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 1,265 $ 22,675 $ 56,192 =================== =================== ==================== MIST PYRAMIS MANAGED RISK INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 (d) -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 86 $ -- $ 2 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 86 -- 2 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 433 2 5 Realized gains (losses) on sale of investments....... 545 8 -- -------------------- -------------------- -------------------- Net realized gains (losses)..................... 978 10 5 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (255) 48 6 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 723 58 11 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 809 $ 58 $ 13 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST SCHRODERS GLOBAL MULTI-ASSET INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 ------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 467 $ 398 $ 1 ------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- ------------------- -------------------- -------------------- Net investment income (loss).................... 467 398 1 ------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,401 1,089 37 Realized gains (losses) on sale of investments....... 35 168 150 ------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,436 1,257 187 ------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (2,611) 553 1,498 ------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (1,175) 1,810 1,685 ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (708) $ 2,208 $ 1,686 =================== ==================== ==================== MIST SSGA GROWTH AND INCOME ETF INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- ------------------- INVESTMENT INCOME: Dividends............................................ $ 200,671 $ 195,317 $ 186,845 -------------------- -------------------- ------------------- EXPENSES: Mortality and expense risk charges................... 9,183 9,443 9,307 -------------------- -------------------- ------------------- Net investment income (loss).................... 191,488 185,874 177,538 -------------------- -------------------- ------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 439,240 463,729 160,153 Realized gains (losses) on sale of investments....... 68,038 167,009 90,613 -------------------- -------------------- ------------------- Net realized gains (losses)..................... 507,278 630,738 250,766 -------------------- -------------------- ------------------- Change in unrealized gains (losses) on investments... (845,948) (350,740) 431,610 -------------------- -------------------- ------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (338,670) 279,998 682,376 -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (147,182) $ 465,872 $ 859,914 ==================== ==================== =================== MIST SSGA GROWTH ETF INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- ------------------- INVESTMENT INCOME: Dividends............................................ $ 152,270 $ 118,289 $ 110,154 -------------------- -------------------- ------------------- EXPENSES: Mortality and expense risk charges................... 7,372 7,409 7,236 -------------------- -------------------- ------------------- Net investment income (loss).................... 144,898 110,880 102,918 -------------------- -------------------- ------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 369,187 348,010 172,116 Realized gains (losses) on sale of investments....... 30,189 110,391 83,650 -------------------- -------------------- ------------------- Net realized gains (losses)..................... 399,376 458,401 255,766 -------------------- -------------------- ------------------- Change in unrealized gains (losses) on investments... (699,498) (255,403) 467,150 -------------------- -------------------- ------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (300,122) 202,998 722,916 -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (155,224) $ 313,878 $ 825,834 ==================== ==================== ===================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST T. ROWE PRICE LARGE CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 36,741 $ 32,258 $ 30,041 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 36,741 32,258 30,041 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 4,421 -- -- Realized gains (losses) on sale of investments....... 86,882 6,947 22,312 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 91,303 6,947 22,312 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (197,956) 244,232 456,298 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (106,653) 251,179 478,610 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (69,912) $ 283,437 $ 508,651 ==================== ==================== ==================== MIST T. ROWE PRICE MID CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ -- $ 98,665 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 45,309 39,978 33,261 -------------------- -------------------- -------------------- Net investment income (loss).................... (45,309) (39,978) 65,404 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 5,111,107 2,710,770 1,223,909 Realized gains (losses) on sale of investments....... 671,843 622,719 608,004 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 5,782,950 3,333,489 1,831,913 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (3,612,484) 275,430 5,764,932 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 2,170,466 3,608,919 7,596,845 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 2,125,157 $ 3,568,941 $ 7,662,249 ==================== ==================== ==================== MIST WMC LARGE CAP RESEARCH INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 3,933,627 $ 3,642,958 $ 4,873,934 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 2,110,795 2,017,025 1,786,264 -------------------- -------------------- -------------------- Net investment income (loss).................... 1,822,832 1,625,933 3,087,670 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 29,529,907 -- -- Realized gains (losses) on sale of investments....... 6,791,139 5,779,958 1,187,504 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 36,321,046 5,779,958 1,187,504 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (21,509,605) 41,616,595 96,008,684 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 14,811,441 47,396,553 97,196,188 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 16,634,273 $ 49,022,486 $ 100,283,858 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF BAILLIE GIFFORD INTERNATIONAL STOCK INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 713,415 $ 614,397 $ 674,943 -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 193,538 202,918 198,504 -------------------- -------------------- --------------------- Net investment income (loss).................... 519,877 411,479 476,439 -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (206,507) (176,452) (474,270) -------------------- -------------------- --------------------- Net realized gains (losses)..................... (206,507) (176,452) (474,270) -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (1,227,962) (1,735,615) 5,921,616 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (1,434,469) (1,912,067) 5,447,346 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (914,592) $ (1,500,588) $ 5,923,785 ==================== ==================== ===================== MSF BARCLAYS AGGREGATE BOND INDEX INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 3,746,041 $ 3,642,812 $ 4,111,311 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 39,974 40,346 40,998 -------------------- -------------------- -------------------- Net investment income (loss).................... 3,706,067 3,602,466 4,070,313 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 111,155 62,943 125,172 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 111,155 62,943 125,172 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (3,467,125) 3,247,015 (6,977,167) -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (3,355,970) 3,309,958 (6,851,995) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 350,097 $ 6,912,424 $ (2,781,682) ==================== ==================== ==================== MSF BLACKROCK BOND INCOME INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 3,137,039 $ 2,833,552 $ 3,290,462 --------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 287,424 293,168 301,259 --------------------- --------------------- -------------------- Net investment income (loss).................... 2,849,615 2,540,384 2,989,203 --------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 918,699 -- 2,005,629 Realized gains (losses) on sale of investments....... (4,703) 70,435 142,786 --------------------- --------------------- -------------------- Net realized gains (losses)..................... 913,996 70,435 2,148,415 --------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (3,544,439) 2,699,020 (6,076,619) --------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (2,630,443) 2,769,455 (3,928,204) --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 219,172 $ 5,309,839 $ (939,001) ===================== ===================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF BLACKROCK CAPITAL APPRECIATION INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ 7,533 $ 144,698 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 10,693 10,001 8,874 -------------------- -------------------- -------------------- Net investment income (loss).................... (10,693) (2,468) 135,824 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,744,269 -- -- Realized gains (losses) on sale of investments....... 278,466 3,803,528 321,200 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 2,022,735 3,803,528 321,200 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (1,407,738) (2,831,679) 4,769,715 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 614,997 971,849 5,090,915 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 604,304 $ 969,381 $ 5,226,739 ==================== ==================== ==================== MSF BLACKROCK LARGE CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 358,828 $ 240,568 $ 225,484 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 23,445 23,616 19,704 -------------------- -------------------- -------------------- Net investment income (loss).................... 335,383 216,952 205,780 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,605,704 4,383,514 871,774 Realized gains (losses) on sale of investments....... (183,787) (65,732) 44,941 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,421,917 4,317,782 916,715 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (2,942,487) (2,739,427) 3,399,848 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (1,520,570) 1,578,355 4,316,563 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (1,185,187) $ 1,795,307 $ 4,522,343 ==================== ==================== ==================== MSF BLACKROCK MONEY MARKET INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 813 $ -- $ -- -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 35,827 38,422 45,649 -------------------- -------------------- -------------------- Net investment income (loss).................... (35,014) (38,422) (45,649) -------------------- -------------------- -------------------- 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.................................... $ (35,014) $ (38,422) $ (45,649) ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF FRONTIER MID CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ -- $ 2,591,979 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 1,605,819 1,529,952 1,371,993 -------------------- -------------------- -------------------- Net investment income (loss).................... (1,605,819) (1,529,952) 1,219,986 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 31,059,487 20,270,585 4,884,883 Realized gains (losses) on sale of investments....... 5,229,191 5,829,957 5,761,928 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 36,288,678 26,100,542 10,646,811 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (28,947,695) (1,683,974) 45,562,137 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 7,340,983 24,416,568 56,208,948 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 5,735,164 $ 22,886,616 $ 57,428,934 ==================== ==================== ==================== MSF JENNISON GROWTH INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 64,278 $ 57,642 $ 81,129 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 14,588 13,806 11,843 -------------------- -------------------- -------------------- Net investment income (loss).................... 49,690 43,836 69,286 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 3,546,254 1,172,046 199,135 Realized gains (losses) on sale of investments....... 583,747 588,171 549,515 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 4,130,001 1,760,217 748,650 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (1,789,865) 102,570 5,442,828 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 2,340,136 1,862,787 6,191,478 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 2,389,826 $ 1,906,623 $ 6,260,764 ==================== ==================== ==================== MSF LOOMIS SAYLES SMALL CAP CORE INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 38,636 $ 10,698 $ 95,451 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 24,860 24,993 22,893 -------------------- -------------------- -------------------- Net investment income (loss).................... 13,776 (14,295) 72,558 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 3,150,294 3,179,934 1,618,689 Realized gains (losses) on sale of investments....... 370,891 437,509 624,015 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 3,521,185 3,617,443 2,242,704 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (3,857,826) (2,720,783) 5,169,026 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (336,641) 896,660 7,411,730 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (322,865) $ 882,365 $ 7,484,288 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF LOOMIS SAYLES SMALL CAP GROWTH INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ -- $ -- $ -- --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 9,783 10,498 8,824 --------------------- -------------------- -------------------- Net investment income (loss).................... (9,783) (10,498) (8,824) --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 1,543,783 1,374,358 -- Realized gains (losses) on sale of investments....... 261,026 486,190 444,863 --------------------- -------------------- -------------------- Net realized gains (losses)..................... 1,804,809 1,860,548 444,863 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (1,598,061) (1,752,743) 3,463,471 --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 206,748 107,805 3,908,334 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 196,965 $ 97,307 $ 3,899,510 ===================== ==================== ==================== MSF MET/ARTISAN MID CAP VALUE INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 704,333 $ 459,965 $ 561,888 -------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 52,726 58,197 55,101 -------------------- -------------------- --------------------- Net investment income (loss).................... 651,607 401,768 506,787 -------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 7,448,048 -- -- Realized gains (losses) on sale of investments....... 632,699 1,070,144 684,691 -------------------- -------------------- --------------------- Net realized gains (losses)..................... 8,080,747 1,070,144 684,691 -------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (14,388,947) (313,797) 16,708,173 -------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (6,308,200) 756,347 17,392,864 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (5,656,593) $ 1,158,115 $ 17,899,651 ==================== ==================== ===================== MSF METLIFE ASSET ALLOCATION 20 INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 124,733 $ 209,842 $ 169,434 -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 8,287 8,381 8,929 -------------------- --------------------- -------------------- Net investment income (loss).................... 116,446 201,461 160,505 -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 168,162 213,606 25,756 Realized gains (losses) on sale of investments....... 6,832 25,638 56,127 -------------------- --------------------- -------------------- Net realized gains (losses)..................... 174,994 239,244 81,883 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (309,762) (203,125) (14,063) -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (134,768) 36,119 67,820 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (18,322) $ 237,580 $ 228,325 ==================== ===================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF METLIFE ASSET ALLOCATION 40 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 46,938 $ 291,635 $ 252,710 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 17,505 18,482 17,423 --------------------- --------------------- --------------------- Net investment income (loss).................... 29,433 273,153 235,287 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 559,298 346,288 95,776 Realized gains (losses) on sale of investments....... 140,214 121,187 210,565 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 699,512 467,475 306,341 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (854,363) (270,968) 418,401 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (154,851) 196,507 724,742 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (125,418) $ 469,660 $ 960,029 ===================== ===================== ===================== MSF METLIFE ASSET ALLOCATION 60 INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 390,972 $ 1,206,188 $ 1,058,783 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 85,255 84,872 79,987 --------------------- --------------------- --------------------- Net investment income (loss).................... 305,717 1,121,316 978,796 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 3,409,671 2,031,851 386,257 Realized gains (losses) on sale of investments....... 662,426 808,239 1,204,992 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 4,072,097 2,840,090 1,591,249 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (4,965,532) (1,284,610) 5,640,223 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (893,435) 1,555,480 7,231,472 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (587,718) $ 2,676,796 $ 8,210,268 ===================== ===================== ===================== MSF METLIFE ASSET ALLOCATION 80 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 512,933 $ 1,754,790 $ 1,416,783 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 85,082 84,172 85,508 --------------------- --------------------- --------------------- Net investment income (loss).................... 427,851 1,670,618 1,331,275 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 4,372,751 -- -- Realized gains (losses) on sale of investments....... 1,805,013 1,673,184 1,631,177 --------------------- --------------------- --------------------- Net realized gains (losses)..................... 6,177,764 1,673,184 1,631,177 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (8,037,823) 1,795,645 15,682,919 --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (1,860,059) 3,468,829 17,314,096 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (1,432,208) $ 5,139,447 $ 18,645,371 ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF METLIFE MID CAP STOCK INDEX INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,033,473 $ 910,209 $ 981,648 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 68,461 66,825 59,983 -------------------- -------------------- -------------------- Net investment income (loss).................... 965,012 843,384 921,665 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 5,617,501 4,123,805 2,405,800 Realized gains (losses) on sale of investments....... 1,969,456 4,161,062 1,774,205 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 7,586,957 8,284,867 4,180,005 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (10,506,888) (1,040,640) 18,736,176 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (2,919,931) 7,244,227 22,916,181 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (1,954,919) $ 8,087,611 $ 23,837,846 ==================== ==================== ==================== MSF METLIFE STOCK INDEX INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 16,989,974 $ 15,723,375 $ 15,228,884 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 2,188,283 2,152,159 1,937,634 -------------------- -------------------- -------------------- Net investment income (loss).................... 14,801,691 13,571,216 13,291,250 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 40,868,342 23,073,733 12,357,151 Realized gains (losses) on sale of investments....... 17,484,826 22,399,491 12,306,567 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 58,353,168 45,473,224 24,663,718 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (63,726,527) 58,022,278 191,004,236 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (5,373,359) 103,495,502 215,667,954 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 9,428,332 $ 117,066,718 $ 228,959,204 ==================== ==================== ==================== MSF MFS TOTAL RETURN INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 256,077 $ 230,037 $ 226,568 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 8,955 8,485 7,921 -------------------- -------------------- -------------------- Net investment income (loss).................... 247,122 221,552 218,647 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 196,619 193,152 99,210 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 196,619 193,152 99,210 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (470,036) 388,544 1,215,884 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (273,417) 581,696 1,315,094 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (26,295) $ 803,248 $ 1,533,741 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF MFS VALUE INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 -------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends............................................ $ 2,325,157 $ 1,410,912 $ 1,234,016 -------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges................... 70,555 70,434 63,296 -------------------- ------------------- ------------------- Net investment income (loss).................... 2,254,602 1,340,478 1,170,720 -------------------- ------------------- ------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 13,359,170 3,936,675 2,095,342 Realized gains (losses) on sale of investments....... 1,066,697 1,680,541 1,087,562 -------------------- ------------------- ------------------- Net realized gains (losses)..................... 14,425,867 5,617,216 3,182,904 -------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments... (16,842,516) 1,679,688 17,288,533 -------------------- ------------------- ------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (2,416,649) 7,296,904 20,471,437 -------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (162,047) $ 8,637,382 $ 21,642,157 ==================== =================== =================== MSF MSCI EAFE INDEX INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 ------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 2,538,836 $ 1,985,462 $ 2,250,635 ------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 38,784 40,521 39,550 ------------------- -------------------- -------------------- Net investment income (loss).................... 2,500,052 1,944,941 2,211,085 ------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 707,350 1,139,967 838,301 ------------------- -------------------- -------------------- Net realized gains (losses)..................... 707,350 1,139,967 838,301 ------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (3,862,935) (7,881,915) 11,746,223 ------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (3,155,585) (6,741,948) 12,584,524 ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (655,533) $ (4,797,007) $ 14,795,609 =================== ==================== ==================== MSF NEUBERGER BERMAN GENESIS INVESTMENT DIVISION ---------------------------------------------------------------- 2015 2014 2013 ------------------- -------------------- ------------------- INVESTMENT INCOME: Dividends............................................ $ 455,355 $ 420,580 $ 744,713 ------------------- -------------------- ------------------- EXPENSES: Mortality and expense risk charges................... 93,449 96,260 89,260 ------------------- -------------------- ------------------- Net investment income (loss).................... 361,906 324,320 655,453 ------------------- -------------------- ------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 1,512,189 1,496,496 614,602 ------------------- -------------------- ------------------- Net realized gains (losses)..................... 1,512,189 1,496,496 614,602 ------------------- -------------------- ------------------- Change in unrealized gains (losses) on investments... (1,230,308) (2,029,896) 30,722,824 ------------------- -------------------- ------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 281,881 (533,400) 31,337,426 ------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 643,787 $ (209,080) $ 31,992,879 =================== ==================== ===================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF RUSSELL 2000 INDEX INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 876,249 $ 812,259 $ 982,173 --------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 47,773 48,414 47,086 --------------------- -------------------- --------------------- Net investment income (loss).................... 828,476 763,845 935,087 --------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 4,152,346 1,573,978 -- Realized gains (losses) on sale of investments....... 2,119,087 2,223,932 1,797,318 --------------------- -------------------- --------------------- Net realized gains (losses)..................... 6,271,433 3,797,910 1,797,318 --------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (10,053,677) (996,894) 17,937,722 --------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (3,782,244) 2,801,016 19,735,040 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (2,953,768) $ 3,564,861 $ 20,670,127 ===================== ==================== ===================== MSF T. ROWE PRICE LARGE CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 117,835 $ 48,493 $ 163,280 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 60,498 54,764 41,708 -------------------- -------------------- -------------------- Net investment income (loss).................... 57,337 (6,271) 121,572 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 15,073,030 5,537,905 -- Realized gains (losses) on sale of investments....... 2,495,339 2,356,884 2,302,973 -------------------- -------------------- -------------------- Net realized gains (losses)..................... 17,568,369 7,894,789 2,302,973 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (8,845,976) (880,615) 19,823,349 -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 8,722,393 7,014,174 22,126,322 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 8,779,730 $ 7,007,903 $ 22,247,894 ==================== ==================== ==================== MSF T. ROWE PRICE SMALL CAP GROWTH INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 155,566 $ 19,192 $ 373,197 --------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges................... 404,512 389,795 356,357 --------------------- -------------------- --------------------- Net investment income (loss).................... (248,946) (370,603) 16,840 --------------------- -------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 9,768,650 8,559,449 5,766,149 Realized gains (losses) on sale of investments....... 3,150,255 9,322,153 3,667,968 --------------------- -------------------- --------------------- Net realized gains (losses)..................... 12,918,905 17,881,602 9,434,117 --------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments... (9,935,901) (10,294,099) 30,236,593 --------------------- -------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... 2,983,004 7,587,503 39,670,710 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ 2,734,058 $ 7,216,900 $ 39,687,550 ===================== ==================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF VAN ECK GLOBAL NATURAL RESOURCES INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 974 $ 983 $ 669 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- --------------------- -------------------- -------------------- Net investment income (loss).................... 974 983 669 --------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- 3,054 -- Realized gains (losses) on sale of investments....... (9,795) (3,490) (55) --------------------- -------------------- -------------------- Net realized gains (losses)..................... (9,795) (436) (55) --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (64,308) (44,636) 14,171 --------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (74,103) (45,072) 14,116 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (73,129) $ (44,089) $ 14,785 ===================== ==================== ==================== MSF WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,322,147 $ 1,377,573 $ 1,259,304 -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 32,560 33,455 33,218 -------------------- --------------------- -------------------- Net investment income (loss).................... 1,289,587 1,344,118 1,226,086 -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 73,628 163,589 194,088 -------------------- --------------------- -------------------- Net realized gains (losses)..................... 73,628 163,589 194,088 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (1,827,670) (168,552) (1,174,913) -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (1,754,042) (4,963) (980,825) -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (464,455) $ 1,339,155 $ 245,261 ==================== ===================== ==================== MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 373,766 $ 319,215 $ 353,673 -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 16,226 16,566 16,498 -------------------- --------------------- -------------------- Net investment income (loss).................... 357,540 302,649 337,175 -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (6,880) (4,464) 3,029 -------------------- --------------------- -------------------- Net realized gains (losses)..................... (6,880) (4,464) 3,029 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (270,748) 143,123 (476,487) -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (277,628) 138,659 (473,458) -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ 79,912 $ 441,308 $ (136,283) ==================== ===================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF WMC BALANCED INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 -------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 6,073,749 $ 6,099,011 $ 6,982,518 -------------------- ------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 1,662,109 1,647,006 1,536,230 -------------------- ------------------- -------------------- Net investment income (loss).................... 4,411,640 4,452,005 5,446,288 -------------------- ------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 51,879,369 -- -- Realized gains (losses) on sale of investments....... 4,030,610 5,320,748 2,747,913 -------------------- ------------------- -------------------- Net realized gains (losses)..................... 55,909,979 5,320,748 2,747,913 -------------------- ------------------- -------------------- Change in unrealized gains (losses) on investments... (53,963,621) 19,346,415 43,444,585 -------------------- ------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 1,946,358 24,667,163 46,192,498 -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 6,357,998 $ 29,119,168 $ 51,638,786 ==================== =================== ==================== MSF WMC CORE EQUITY OPPORTUNITIES INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 ------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,320,806 $ 508,892 $ 908,277 ------------------- ------------------- -------------------- EXPENSES: Mortality and expense risk charges................... 57,675 57,279 53,237 ------------------- ------------------- -------------------- Net investment income (loss).................... 1,263,131 451,613 855,040 ------------------- ------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 25,408,009 6,081,753 1,084,791 Realized gains (losses) on sale of investments....... 716,455 1,674,792 1,697,357 ------------------- ------------------- -------------------- Net realized gains (losses)..................... 26,124,464 7,756,545 2,782,148 ------------------- ------------------- -------------------- Change in unrealized gains (losses) on investments... (25,717,218) (869,547) 15,346,828 ------------------- ------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... 407,246 6,886,998 18,128,976 ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 1,670,377 $ 7,338,611 $ 18,984,016 =================== =================== ==================== OPPENHEIMER VA MAIN STREET SMALL CAP INVESTMENT DIVISION ------------------------------------------- 2015 2014 (g) -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 40 $ -- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -------------------- -------------------- Net investment income (loss).................... 40 -- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 665 -- Realized gains (losses) on sale of investments....... (40) -- -------------------- -------------------- Net realized gains (losses)..................... 625 -- -------------------- -------------------- Change in unrealized gains (losses) on investments... (894) 198 -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (269) 198 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (229) $ 198 ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
PIMCO VIT ALL ASSET INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 ------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 17,942 $ 49,509 $ 21,748 ------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- ------------------- -------------------- -------------------- Net investment income (loss).................... 17,942 49,509 21,748 ------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (111,468) 28 (591) ------------------- -------------------- -------------------- Net realized gains (losses)..................... (111,468) 28 (591) ------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 38,369 (44,010) (24,638) ------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (73,099) (43,982) (25,229) ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (55,157) $ 5,527 $ (3,481) =================== ==================== ==================== PIMCO VIT COMMODITYREALRETURN STRATEGY INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 (d) ------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 1,467 $ 86 $ -- ------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- ------------------- -------------------- -------------------- Net investment income (loss).................... 1,467 86 -- ------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (11,415) (39) (5) ------------------- -------------------- -------------------- Net realized gains (losses)..................... (11,415) (39) (5) ------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... 3,408 (10,088) (126) ------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (8,007) (10,127) (131) ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (6,540) $ (10,041) $ (131) =================== ==================== ==================== PIMCO VIT LOW DURATION INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 -------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 29,643 $ 17,764 $ 22,872 -------------------- ------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- ------------------- -------------------- Net investment income (loss).................... 29,643 17,764 22,872 -------------------- ------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... 12,574 512 3,304 -------------------- ------------------- -------------------- Net realized gains (losses)..................... 12,574 512 3,304 -------------------- ------------------- -------------------- Change in unrealized gains (losses) on investments... (33,266) (4,896) (33,450) -------------------- ------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (20,692) (4,384) (30,146) -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.................................... $ 8,951 $ 13,380 $ (7,274) ==================== =================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
PIONEER VCT MID CAP VALUE INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................ $ 412 $ 452 $ 425 -------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- --------------------- --------------------- Net investment income (loss).................... 412 452 425 -------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 5,835 6,866 -- Realized gains (losses) on sale of investments....... 4,638 1,056 29,038 -------------------- --------------------- --------------------- Net realized gains (losses)..................... 10,473 7,922 29,038 -------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (13,938) 732 (1,134) -------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (3,465) 8,654 27,904 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (3,053) $ 9,106 $ 28,329 ==================== ===================== ===================== PUTNAM VT INTERNATIONAL VALUE INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 (b) -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 91 $ 95 $ -- -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- --------------------- -------------------- Net investment income (loss).................... 91 95 -- -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (22) 46 10 -------------------- --------------------- -------------------- Net realized gains (losses)..................... (22) 46 10 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (118) (775) 477 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (140) (729) 487 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (49) $ (634) $ 487 ==================== ===================== ==================== ROYCE MICRO-CAP INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- --------------------- 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.......................... 498 657 197 Realized gains (losses) on sale of investments....... 1 13 87,518 -------------------- --------------------- --------------------- Net realized gains (losses)..................... 499 670 87,715 -------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments... (1,557) (951) (23,953) -------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (1,058) (281) 63,762 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................... $ (1,058) $ (281) $ 63,800 ==================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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 -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
ROYCE SMALL-CAP INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 443 $ 64 $ 6,679 -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- --------------------- -------------------- Net investment income (loss).................... 443 64 6,679 -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... 12,749 5,932 34,717 Realized gains (losses) on sale of investments....... 64 105,416 34,201 -------------------- --------------------- -------------------- Net realized gains (losses)..................... 12,813 111,348 68,918 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (19,154) (144,191) 110,499 -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (6,341) (32,843) 179,417 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (5,898) $ (32,779) $ 186,096 ==================== ===================== ==================== UIF EMERGING MARKETS DEBT INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 45,047 $ 66,166 $ 51,315 -------------------- --------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- --------------------- -------------------- Net investment income (loss).................... 45,047 66,166 51,315 -------------------- --------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- 9,104 15,729 Realized gains (losses) on sale of investments....... (12,799) (26,242) (4,843) -------------------- --------------------- -------------------- Net realized gains (losses)..................... (12,799) (17,138) 10,886 -------------------- --------------------- -------------------- Change in unrealized gains (losses) on investments... (46,377) 6,462 (181,259) -------------------- --------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (59,176) (10,676) (170,373) -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (14,129) $ 55,490 $ (119,058) ==================== ===================== ==================== UIF EMERGING MARKETS EQUITY INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................................ $ 18,406 $ 4,726 $ 14,065 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges................... -- -- -- -------------------- -------------------- -------------------- Net investment income (loss).................... 18,406 4,726 14,065 -------------------- -------------------- -------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......................... -- -- -- Realized gains (losses) on sale of investments....... (24,296) 14,990 6,766 -------------------- -------------------- -------------------- Net realized gains (losses)..................... (24,296) 14,990 6,766 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments... (266,747) (166,226) (38,224) -------------------- -------------------- -------------------- Net realized and changes in unrealized gains (losses) on investments.................................... (291,043) (151,236) (31,458) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................... $ (272,637) $ (146,510) $ (17,393) ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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 OPERATIONS -- (CONCLUDED) FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
WELLS FARGO VT TOTAL RETURN BOND INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INVESTMENT INCOME: Dividends............................................. $ 10,591 $ 5,207 $ 4,298 --------------------- --------------------- --------------------- EXPENSES: Mortality and expense risk charges.................... -- -- -- --------------------- --------------------- --------------------- Net investment income (loss)..................... 10,591 5,207 4,298 --------------------- --------------------- --------------------- NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........................... -- -- 9,579 Realized gains (losses) on sale of investments........ (13,631) (1,528) 1,277 --------------------- --------------------- --------------------- Net realized gains (losses)...................... (13,631) (1,528) 10,856 --------------------- --------------------- --------------------- Change in unrealized gains (losses) on investments.... (2,133) 12,966 (21,523) --------------------- --------------------- --------------------- Net realized and changes in unrealized gains (losses) on investments..................................... (15,764) 11,438 (10,667) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations.................................... $ (5,173) $ 16,645 $ (6,369) ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 102 This page is intentionally left blank. METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
AB GLOBAL THEMATIC GROWTH INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- $ -- $ 13 Net realized gains (losses)......................... 4,879 1,302 (1,496) Change in unrealized gains (losses) on investments.. (2,756) 2,635 14,581 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 2,123 3,937 13,098 --------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,493 1,269 1,269 Net transfers (including fixed account)............. (6,753) 13,633 6,694 Policy charges...................................... (1,929) (2,507) (2,064) Transfers for policy benefits and terminations...... (30,831) (6,798) (14,687) --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (38,020) 5,597 (8,788) --------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (35,897) 9,534 4,310 NET ASSETS: Beginning of year................................... 75,700 66,166 61,856 --------------------- -------------------- --------------------- End of year......................................... $ 39,803 $ 75,700 $ 66,166 ===================== ==================== ===================== AB INTERMEDIATE BOND INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,061 $ 1,921 $ 1,888 Net realized gains (losses)......................... 1,662 689 1,651 Change in unrealized gains (losses) on investments.. (3,852) 952 (5,086) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (129) 3,562 (1,547) -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 644 644 -- Net transfers (including fixed account)............. 2,915 32 (42,312) Policy charges...................................... (2,460) (2,264) (1,794) Transfers for policy benefits and terminations...... -- -- (32) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 1,099 (1,588) (44,138) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 970 1,974 (45,685) NET ASSETS: Beginning of year................................... 59,589 57,615 103,300 -------------------- -------------------- -------------------- End of year......................................... $ 60,559 $ 59,589 $ 57,615 ==================== ==================== ==================== AMERICAN CENTURY VP CAPITAL APPRECIATION INVESTMENT DIVISION -------------------------------------------- 2015 2014 (a) --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- $ -- Net realized gains (losses)......................... 56 12 Change in unrealized gains (losses) on investments.. (38) 42 --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 18 54 --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- Net transfers (including fixed account)............. 1 589 Policy charges...................................... (368) (211) Transfers for policy benefits and terminations...... -- -- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (367) 378 --------------------- -------------------- Net increase (decrease) in net assets............. (349) 432 NET ASSETS: Beginning of year................................... 432 -- --------------------- -------------------- End of year......................................... $ 83 $ 432 ===================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
AMERICAN FUNDS BOND INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 95,558 $ 106,624 $ 91,592 Net realized gains (losses)......................... 113,025 6,927 62,302 Change in unrealized gains (losses) on investments.. (201,734) 172,487 (282,587) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 6,849 286,038 (128,693) -------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 595,751 623,827 663,938 Net transfers (including fixed account)............. 482,848 255,803 291,663 Policy charges...................................... (353,117) (362,278) (373,489) Transfers for policy benefits and terminations...... (500,127) (416,749) (284,454) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 225,355 100,603 297,658 -------------------- -------------------- --------------------- Net increase (decrease) in net assets............. 232,204 386,641 168,965 NET ASSETS: Beginning of year................................... 5,975,916 5,589,275 5,420,310 -------------------- -------------------- --------------------- End of year......................................... $ 6,208,120 $ 5,975,916 $ 5,589,275 ==================== ==================== ===================== AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (91,602) $ (6,851) $ 481,756 Net realized gains (losses)......................... 6,923,224 1,349,400 556,105 Change in unrealized gains (losses) on investments.. (6,348,033) 96,482 15,213,508 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 483,589 1,439,031 16,251,369 --------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,361,656 5,749,295 6,319,815 Net transfers (including fixed account)............. (992,517) (675,673) (1,380,353) Policy charges...................................... (3,751,216) (3,816,323) (3,857,829) Transfers for policy benefits and terminations...... (4,463,980) (4,204,832) (4,504,188) --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (3,846,057) (2,947,533) (3,422,555) --------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (3,362,468) (1,508,502) 12,828,814 NET ASSETS: Beginning of year................................... 70,558,118 72,066,620 59,237,806 --------------------- -------------------- --------------------- End of year......................................... $ 67,195,650 $ 70,558,118 $ 72,066,620 ===================== ==================== ===================== AMERICAN FUNDS GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 849,331 $ 1,134,555 $ 1,225,604 Net realized gains (losses)......................... 37,793,980 11,523,746 2,872,251 Change in unrealized gains (losses) on investments.. (27,669,113) 413,436 34,086,809 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 10,974,198 13,071,737 38,184,664 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 11,128,355 12,033,016 12,807,035 Net transfers (including fixed account)............. (2,877,301) (1,562,797) (2,855,702) Policy charges...................................... (8,922,399) (8,831,204) (8,755,241) Transfers for policy benefits and terminations...... (10,503,688) (10,353,575) (9,748,734) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (11,175,033) (8,714,560) (8,552,642) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (200,835) 4,357,177 29,632,022 NET ASSETS: Beginning of year................................... 164,910,421 160,553,244 130,921,222 -------------------- -------------------- -------------------- End of year......................................... $ 164,709,586 $ 164,910,421 $ 160,553,244 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
AMERICAN FUNDS GROWTH-INCOME INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,265,966 $ 1,235,698 $ 1,145,692 Net realized gains (losses)......................... 17,136,301 7,216,223 1,441,252 Change in unrealized gains (losses) on investments.. (16,929,014) 1,935,227 23,374,516 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 1,473,253 10,387,148 25,961,460 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 7,132,701 7,556,304 8,145,719 Net transfers (including fixed account)............. (706,082) (746,690) (404,802) Policy charges...................................... (5,898,040) (5,923,496) (5,713,396) Transfers for policy benefits and terminations...... (6,373,610) (6,455,691) (6,390,541) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (5,845,031) (5,569,573) (4,363,020) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (4,371,778) 4,817,575 21,598,440 NET ASSETS: Beginning of year................................... 106,030,732 101,213,157 79,614,717 -------------------- -------------------- -------------------- End of year......................................... $ 101,658,954 $ 106,030,732 $ 101,213,157 ==================== ==================== ==================== AMERICAN FUNDS INTERNATIONAL INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 7,125 $ 9,668 $ 7,749 Net realized gains (losses)......................... 53,336 3,059 27,615 Change in unrealized gains (losses) on investments.. (72,634) (30,549) 63,361 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (12,173) (17,822) 98,725 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 6,030 19,466 4,396 Net transfers (including fixed account)............. (251,186) 22,024 63,675 Policy charges...................................... (9,566) (10,594) (9,192) Transfers for policy benefits and terminations...... -- (16,461) (24,265) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (254,722) 14,435 34,614 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (266,895) (3,387) 133,339 NET ASSETS: Beginning of year................................... 682,005 685,392 552,053 -------------------- -------------------- -------------------- End of year......................................... $ 415,110 $ 682,005 $ 685,392 ==================== ==================== ==================== AMERICAN FUNDS U.S. GOVERNMENT/AAA-RATED SECURITIES INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 712 $ 520 $ 317 Net realized gains (losses)......................... 401 (30) 1,230 Change in unrealized gains (losses) on investments.. (350) 1,820 (2,996) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 763 2,310 (1,449) -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,595 1,253 4,239 Net transfers (including fixed account)............. 1 -- 289 Policy charges...................................... (1,568) (1,489) (1,787) Transfers for policy benefits and terminations...... -- (6) -- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 1,028 (242) 2,741 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 1,791 2,068 1,292 NET ASSETS: Beginning of year................................... 48,552 46,484 45,192 -------------------- -------------------- -------------------- End of year......................................... $ 50,343 $ 48,552 $ 46,484 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
DREYFUS VIF INTERNATIONAL VALUE INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- ---------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 4,421 $ 3,201 $ 4,021 Net realized gains (losses)......................... (390) (210) (906) Change in unrealized gains (losses) on investments.. (10,460) (26,366) 42,909 --------------------- ---------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (6,429) (23,375) 46,024 --------------------- ---------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- -- Net transfers (including fixed account)............. -- -- (2,380) Policy charges...................................... (2,287) (2,373) (2,445) Transfers for policy benefits and terminations...... (1) -- (15) --------------------- ---------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,288) (2,373) (4,840) --------------------- ---------------------- --------------------- Net increase (decrease) in net assets............ (8,717) (25,748) 41,184 NET ASSETS: Beginning of year................................... 220,569 246,317 205,133 --------------------- ---------------------- --------------------- End of year......................................... $ 211,852 $ 220,569 $ 246,317 ===================== ====================== ===================== FIDELITY VIP ASSET MANAGER: GROWTH INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 20,958 $ 20,809 $ 16,073 Net realized gains (losses)......................... 128,965 35,424 115,489 Change in unrealized gains (losses) on investments.. (145,469) 59,690 260,059 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 4,454 115,923 391,621 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 154,105 105,211 116,700 Net transfers (including fixed account)............. (120,734) 60,739 (143,822) Policy charges...................................... (80,789) (76,841) (76,211) Transfers for policy benefits and terminations...... (173,241) (47,777) (324,598) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (220,659) 41,332 (427,931) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ (216,205) 157,255 (36,310) NET ASSETS: Beginning of year................................... 2,087,177 1,929,922 1,966,232 --------------------- --------------------- --------------------- End of year......................................... $ 1,870,972 $ 2,087,177 $ 1,929,922 ===================== ===================== ===================== FIDELITY VIP CONTRAFUND INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 25,926 $ 24,338 $ 23,521 Net realized gains (losses)......................... 373,045 118,141 147,133 Change in unrealized gains (losses) on investments.. (372,526) 174,211 505,651 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 26,445 316,690 676,305 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 177,261 105,425 94,804 Net transfers (including fixed account)............. (158,700) (10,694) (270,104) Policy charges...................................... (94,010) (90,082) (97,806) Transfers for policy benefits and terminations...... (89,062) (58,177) (95,919) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (164,511) (53,528) (369,025) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ (138,066) 263,162 307,280 NET ASSETS: Beginning of year................................... 2,913,464 2,650,302 2,343,022 --------------------- --------------------- --------------------- End of year......................................... $ 2,775,398 $ 2,913,464 $ 2,650,302 ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
FIDELITY VIP EQUITY-INCOME INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 426 $ 687 $ 752 Net realized gains (losses)......................... 2,506 1,056 4,118 Change in unrealized gains (losses) on investments.. (3,341) 37 3,227 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (409) 1,780 8,097 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,405 1,877 7,468 Net transfers (including fixed account)............. -- (11,506) (43,901) Policy charges...................................... (278) (409) (491) Transfers for policy benefits and terminations...... (14,085) (1) -- --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (11,958) (10,039) (36,924) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ (12,367) (8,259) (28,827) NET ASSETS: Beginning of year................................... 25,205 33,464 62,291 --------------------- --------------------- --------------------- End of year......................................... $ 12,838 $ 25,205 $ 33,464 ===================== ===================== ===================== FIDELITY VIP FREEDOM 2010 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 361 $ 746 $ 563 Net realized gains (losses)......................... 5,675 3,453 665 Change in unrealized gains (losses) on investments.. (5,470) (2,030) 3,994 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 566 2,169 5,222 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 49,696 53,609 2,634 Net transfers (including fixed account)............. (481) -- -- Policy charges...................................... -- -- -- Transfers for policy benefits and terminations...... (78,676) (53,906) (1,252) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (29,461) (297) 1,382 --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ (28,895) 1,872 6,604 NET ASSETS: Beginning of year................................... 48,114 46,242 39,638 --------------------- --------------------- --------------------- End of year......................................... $ 19,219 $ 48,114 $ 46,242 ===================== ===================== ===================== FIDELITY VIP FREEDOM 2020 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 10,060 $ 16,169 $ 16,012 Net realized gains (losses)......................... 169,271 38,833 21,982 Change in unrealized gains (losses) on investments.. (177,998) (8,502) 93,753 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 1,333 46,500 131,747 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 132,204 113,318 13,583 Net transfers (including fixed account)............. (413,184) -- 94,207 Policy charges...................................... (7,305) (12,214) (11,540) Transfers for policy benefits and terminations...... (168,987) (140,759) (15,006) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (457,272) (39,655) 81,244 --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ (455,939) 6,845 212,991 NET ASSETS: Beginning of year................................... 984,560 977,715 764,724 --------------------- --------------------- --------------------- End of year......................................... $ 528,621 $ 984,560 $ 977,715 ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
FIDELITY VIP FREEDOM 2025 INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 (b) -------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 8,151 $ 613 $ 694 Net realized gains (losses)......................... 2,620 1,235 413 Change in unrealized gains (losses) on investments.. (13,249) 73 3,626 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (2,478) 1,921 4,733 -------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- -- Net transfers (including fixed account)............. 407,484 -- 38,425 Policy charges...................................... (9,867) (4,514) (2,977) Transfers for policy benefits and terminations...... -- -- -- -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 397,617 (4,514) 35,448 -------------------- --------------------- --------------------- Net increase (decrease) in net assets............ 395,139 (2,593) 40,181 NET ASSETS: Beginning of year................................... 37,588 40,181 -- -------------------- --------------------- --------------------- End of year......................................... $ 432,727 $ 37,588 $ 40,181 ==================== ===================== ===================== FIDELITY VIP FREEDOM 2030 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,154 $ 1,195 $ 763 Net realized gains (losses)......................... 1,753 13,333 3,547 Change in unrealized gains (losses) on investments.. (4,989) (10,096) 5,619 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (1,082) 4,432 9,929 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 248,938 197,624 8,643 Net transfers (including fixed account)............. 1,585 (1,696) 618 Policy charges...................................... -- -- -- Transfers for policy benefits and terminations...... (211,226) (180,726) -- --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 39,297 15,202 9,261 --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ 38,215 19,634 19,190 NET ASSETS: Beginning of year................................... 81,658 62,024 42,834 --------------------- --------------------- --------------------- End of year......................................... $ 119,873 $ 81,658 $ 62,024 ===================== ===================== ===================== FIDELITY VIP FREEDOM 2040 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 (c) --------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,492 $ 767 $ 153 Net realized gains (losses)......................... 804 1,236 80 Change in unrealized gains (losses) on investments.. (3,345) (709) 545 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (1,049) 1,294 778 --------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 178,750 138,827 4,187 Net transfers (including fixed account)............. -- -- 6,866 Policy charges...................................... -- -- -- Transfers for policy benefits and terminations...... (141,983) (98,455) -- --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 36,767 40,372 11,053 --------------------- -------------------- --------------------- Net increase (decrease) in net assets............ 35,718 41,666 11,831 NET ASSETS: Beginning of year................................... 53,497 11,831 -- --------------------- -------------------- --------------------- End of year......................................... $ 89,215 $ 53,497 $ 11,831 ===================== ==================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
FIDELITY VIP FREEDOM 2050 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 878 $ 355 $ 195 Net realized gains (losses)......................... 843 6,639 323 Change in unrealized gains (losses) on investments.. (2,416) (5,093) 4,037 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (695) 1,901 4,555 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 115,247 91,003 13 Net transfers (including fixed account)............. (1,460) -- -- Policy charges...................................... -- -- -- Transfers for policy benefits and terminations...... (88,414) (88,212) (353) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 25,373 2,791 (340) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ 24,678 4,692 4,215 NET ASSETS: Beginning of year................................... 26,706 22,014 17,799 --------------------- --------------------- --------------------- End of year......................................... $ 51,384 $ 26,706 $ 22,014 ===================== ===================== ===================== FIDELITY VIP HIGH INCOME INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 14,336 $ 10,183 $ 9,677 Net realized gains (losses)......................... (455) 158 73 Change in unrealized gains (losses) on investments.. (20,979) (8,210) (126) --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (7,098) 2,131 9,624 --------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 12,069 3,323 -- Net transfers (including fixed account)............. 35,979 3,881 70 Policy charges...................................... (5,315) (5,057) (4,648) Transfers for policy benefits and terminations...... (2,074) (91) (2,200) --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 40,659 2,056 (6,778) --------------------- --------------------- -------------------- Net increase (decrease) in net assets............ 33,561 4,187 2,846 NET ASSETS: Beginning of year................................... 172,179 167,992 165,146 --------------------- --------------------- -------------------- End of year......................................... $ 205,740 $ 172,179 $ 167,992 ===================== ===================== ==================== FIDELITY VIP INVESTMENT GRADE BOND INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 31,506 $ 26,958 $ 39,909 Net realized gains (losses)......................... 154 (15,735) (7,423) Change in unrealized gains (losses) on investments.. (39,907) 77,902 (76,349) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (8,247) 89,125 (43,863) --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 829 829 2,145 Net transfers (including fixed account)............. (11,610) (509,895) (522,146) Policy charges...................................... (14,132) (17,492) (21,723) Transfers for policy benefits and terminations...... -- (5,265) -- --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (24,913) (531,823) (541,724) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ (33,160) (442,698) (585,587) NET ASSETS: Beginning of year................................... 1,257,507 1,700,205 2,285,792 --------------------- --------------------- --------------------- End of year......................................... $ 1,224,347 $ 1,257,507 $ 1,700,205 ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
FIDELITY VIP MID CAP INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 745 $ 48 $ 613 Net realized gains (losses)......................... 31,286 10,492 208,214 Change in unrealized gains (losses) on investments.. (36,156) 4,318 1,232 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (4,125) 14,858 210,059 --------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,486 7,147 -- Net transfers (including fixed account)............. 32,283 (62) (635,978) Policy charges...................................... (4,213) (3,945) (15,043) Transfers for policy benefits and terminations...... -- (12,748) (58,870) --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 29,556 (9,608) (709,891) --------------------- -------------------- --------------------- Net increase (decrease) in net assets............. 25,431 5,250 (499,832) NET ASSETS: Beginning of year................................... 254,337 249,087 748,919 --------------------- -------------------- --------------------- End of year......................................... $ 279,768 $ 254,337 $ 249,087 ===================== ==================== ===================== FTVIPT FRANKLIN INCOME VIP INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 (d) -------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,086 $ 385 $ -- Net realized gains (losses)......................... (154) (51) 3 Change in unrealized gains (losses) on investments.. (2,439) (1,084) 8 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (1,507) (750) 11 -------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,340 1,936 23 Net transfers (including fixed account)............. 12,510 24,540 595 Policy charges...................................... (2,666) (1,188) (10) Transfers for policy benefits and terminations...... -- -- (1) -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 15,184 25,288 607 -------------------- --------------------- -------------------- Net increase (decrease) in net assets............. 13,677 24,538 618 NET ASSETS: Beginning of year................................... 25,156 618 -- -------------------- --------------------- -------------------- End of year......................................... $ 38,833 $ 25,156 $ 618 ==================== ===================== ==================== FTVIPT FRANKLIN MUTUAL GLOBAL DISCOVERY VIP INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 13,670 $ 10,690 $ 19,686 Net realized gains (losses)......................... 27,706 43,600 141,155 Change in unrealized gains (losses) on investments.. (58,851) (24,521) 47,244 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (17,475) 29,769 208,085 --------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 24,639 10,410 10,185 Net transfers (including fixed account)............. 13,951 8,747 (460,707) Policy charges...................................... (15,139) (16,960) (21,702) Transfers for policy benefits and terminations...... (14,827) (38,467) (44,103) --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 8,624 (36,270) (516,327) --------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (8,851) (6,501) (308,242) NET ASSETS: Beginning of year................................... 488,433 494,934 803,176 --------------------- -------------------- -------------------- End of year......................................... $ 479,582 $ 488,433 $ 494,934 ===================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
FTVIPT FRANKLIN MUTUAL SHARES VIP INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 (d) -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,895 $ 789 $ 445 Net realized gains (losses)......................... 4,213 464 105 Change in unrealized gains (losses) on investments.. (9,723) 1,131 2,000 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (3,615) 2,384 2,550 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 10,729 4,760 776 Net transfers (including fixed account)............. 27,697 14,220 21,718 Policy charges...................................... (5,813) (3,194) (833) Transfers for policy benefits and terminations...... (72) -- (3) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 32,541 15,786 21,658 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 28,926 18,170 24,208 NET ASSETS: Beginning of year................................... 42,378 24,208 -- -------------------- -------------------- -------------------- End of year......................................... $ 71,304 $ 42,378 $ 24,208 ==================== ==================== ==================== FTVIPT TEMPLETON FOREIGN VIP INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 189,205 $ 78,379 $ 98,174 Net realized gains (losses)......................... 182,453 156,830 73,110 Change in unrealized gains (losses) on investments.. (703,728) (709,096) 689,874 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (332,070) (473,887) 861,158 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 522,167 338,970 285,991 Net transfers (including fixed account)............. 131,629 2,058,544 70,380 Policy charges...................................... (204,300) (168,065) (155,044) Transfers for policy benefits and terminations...... (119,949) (813,885) (619,261) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 329,547 1,415,564 (417,934) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (2,523) 941,677 443,224 NET ASSETS: Beginning of year................................... 5,347,371 4,405,694 3,962,470 -------------------- -------------------- -------------------- End of year......................................... $ 5,344,848 $ 5,347,371 $ 4,405,694 ==================== ==================== ==================== FTVIPT TEMPLETON GLOBAL BOND VIP INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 83,772 $ 65,826 $ 20,975 Net realized gains (losses)......................... (92,691) (644) 6,447 Change in unrealized gains (losses) on investments.. (36,601) (38,430) (6,052) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (45,520) 26,752 21,370 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 35,603 15,639 16,330 Net transfers (including fixed account)............. (632,092) (47,291) 881,830 Policy charges...................................... (35,622) (34,683) (20,444) Transfers for policy benefits and terminations...... -- (41,236) (23,473) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (632,111) (107,571) 854,243 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (677,631) (80,819) 875,613 NET ASSETS: Beginning of year................................... 1,236,895 1,317,714 442,101 -------------------- -------------------- -------------------- End of year......................................... $ 559,264 $ 1,236,895 $ 1,317,714 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
GOLDMAN SACHS MID-CAP VALUE INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,118 $ 2,932 $ 2,312 Net realized gains (losses)......................... 20,793 56,312 32,251 Change in unrealized gains (losses) on investments.. (48,920) (21,021) 43,303 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (27,009) 38,223 77,866 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- -- Net transfers (including fixed account)............. -- -- (24,951) Policy charges...................................... (7,778) (9,236) (9,102) Transfers for policy benefits and terminations...... (12,103) (23,589) (6,108) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (19,881) (32,825) (40,161) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............. (46,890) 5,398 37,705 NET ASSETS: Beginning of year................................... 301,257 295,859 258,154 --------------------- --------------------- --------------------- End of year......................................... $ 254,367 $ 301,257 $ 295,859 ===================== ===================== ===================== GOLDMAN SACHS SMALL CAP EQUITY INSIGHTS INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 104 $ 277 $ 373 Net realized gains (losses)......................... 4,727 6,915 5,748 Change in unrealized gains (losses) on investments.. (5,505) (4,589) 3,869 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (674) 2,603 9,990 -------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,112 2,186 1,542 Net transfers (including fixed account)............. -- (5,501) 6,458 Policy charges...................................... (3,707) (3,679) (2,827) Transfers for policy benefits and terminations...... (1) (26) -- -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,596) (7,020) 5,173 -------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (3,270) (4,417) 15,163 NET ASSETS: Beginning of year................................... 37,063 41,480 26,317 -------------------- -------------------- --------------------- End of year......................................... $ 33,793 $ 37,063 $ 41,480 ==================== ==================== ===================== INVESCO V.I. COMSTOCK INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 5,695 $ 3,587 $ 4,077 Net realized gains (losses)......................... 4,410 2,447 1,475 Change in unrealized gains (losses) on investments.. (32,126) 22,523 78,224 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (22,021) 28,557 83,776 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 21,481 1,792 -- Net transfers (including fixed account)............. (1,856) 9,094 165 Policy charges...................................... (8,488) (7,120) (5,972) Transfers for policy benefits and terminations...... (34) (20) -- --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 11,103 3,746 (5,807) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............. (10,918) 32,303 77,969 NET ASSETS: Beginning of year................................... 347,578 315,275 237,306 --------------------- --------------------- --------------------- End of year......................................... $ 336,660 $ 347,578 $ 315,275 ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
INVESCO V.I. INTERNATIONAL GROWTH INVESTMENT DIVISION ----------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- ---------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 5,017 $ 5,421 $ 4,576 Net realized gains (losses)......................... 2,637 5,138 926,281 Change in unrealized gains (losses) on investments.. (13,856) (10,871) (647,277) --------------------- --------------------- ---------------------- Net increase (decrease) in net assets resulting from operations................................ (6,202) (312) 283,580 --------------------- --------------------- ---------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- -- Net transfers (including fixed account)............. 2,025 12,366 (6,300,567) Policy charges...................................... (16,496) (15,500) (60,067) Transfers for policy benefits and terminations...... (1) (45,248) (29,907) --------------------- --------------------- ---------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (14,472) (48,382) (6,390,541) --------------------- --------------------- ---------------------- Net increase (decrease) in net assets............ (20,674) (48,694) (6,106,961) NET ASSETS: Beginning of year................................... 350,497 399,191 6,506,152 --------------------- --------------------- ---------------------- End of year......................................... $ 329,823 $ 350,497 $ 399,191 ===================== ===================== ====================== JANUS ASPEN BALANCED INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 15,263 $ 16,228 $ 13,254 Net realized gains (losses)......................... 40,958 37,470 80,275 Change in unrealized gains (losses) on investments.. (51,128) 30,740 94,265 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 5,093 84,438 187,794 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 36,006 43,455 32,790 Net transfers (including fixed account)............. 28,037 39,697 (213,385) Policy charges...................................... (33,574) (34,009) (36,051) Transfers for policy benefits and terminations...... (17,338) (43,432) (78,995) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 13,131 5,711 (295,641) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ 18,224 90,149 (107,847) NET ASSETS: Beginning of year................................... 1,082,851 992,702 1,100,549 --------------------- --------------------- --------------------- End of year......................................... $ 1,101,075 $ 1,082,851 $ 992,702 ===================== ===================== ===================== JANUS ASPEN FORTY INVESTMENT DIVISION ----------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- ---------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- $ 252 $ 4,954 Net realized gains (losses)......................... 122,650 312,178 69,285 Change in unrealized gains (losses) on investments.. (57,429) (248,123) 155,845 --------------------- --------------------- ---------------------- Net increase (decrease) in net assets resulting from operations................................ 65,221 64,307 230,084 --------------------- --------------------- ---------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 8,927 17,929 18,835 Net transfers (including fixed account)............. 262 (352,405) (2,646) Policy charges...................................... (19,291) (23,445) (24,771) Transfers for policy benefits and terminations...... (964) (25,992) (239,346) --------------------- --------------------- ---------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (11,066) (383,913) (247,928) --------------------- --------------------- ---------------------- Net increase (decrease) in net assets............ 54,155 (319,606) (17,844) NET ASSETS: Beginning of year................................... 550,397 870,003 887,847 --------------------- --------------------- ---------------------- End of year......................................... $ 604,552 $ 550,397 $ 870,003 ===================== ===================== ======================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
JANUS ASPEN JANUS INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,968 $ 1,630 $ 6,858 Net realized gains (losses)......................... 102,491 41,098 258,951 Change in unrealized gains (losses) on investments.. (79,472) 12,182 (62,054) --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 25,987 54,910 203,755 --------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 6,990 11,134 1,427 Net transfers (including fixed account)............. -- -- (664,858) Policy charges...................................... (16,553) (15,340) (33,550) Transfers for policy benefits and terminations...... (26,764) (9,982) (39,166) --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (36,327) (14,188) (736,147) --------------------- --------------------- -------------------- Net increase (decrease) in net assets............. (10,340) 40,722 (532,392) NET ASSETS: Beginning of year................................... 480,007 439,285 971,677 --------------------- --------------------- -------------------- End of year......................................... $ 469,667 $ 480,007 $ 439,285 ===================== ===================== ==================== JANUS ASPEN OVERSEAS INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 225 $ 1,960 $ 11,835 Net realized gains (losses)......................... (4,794) 2,312 (73,759) Change in unrealized gains (losses) on investments.. 363 (10,605) 113,083 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (4,206) (6,333) 51,159 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,534 5,199 5,947 Net transfers (including fixed account)............. -- -- (367,128) Policy charges...................................... (7,590) (9,034) (17,659) Transfers for policy benefits and terminations...... (5,157) (11,226) (45,425) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (7,213) (15,061) (424,265) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............. (11,419) (21,394) (373,106) NET ASSETS: Beginning of year................................... 47,442 68,836 441,942 --------------------- --------------------- --------------------- End of year......................................... $ 36,023 $ 47,442 $ 68,836 ===================== ===================== ===================== MFS VIT GLOBAL EQUITY INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,587 $ 974 $ 1,253 Net realized gains (losses)......................... 8,958 4,384 550 Change in unrealized gains (losses) on investments.. (14,256) 1,213 37,978 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (3,711) 6,571 39,781 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 10,152 938 1,231 Net transfers (including fixed account)............. (8,832) 329 12,710 Policy charges...................................... (4,102) (3,867) (3,432) Transfers for policy benefits and terminations...... (175) -- (398) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,957) (2,600) 10,111 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (6,668) 3,971 49,892 NET ASSETS: Beginning of year................................... 189,291 185,320 135,428 -------------------- -------------------- -------------------- End of year......................................... $ 182,623 $ 189,291 $ 185,320 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MFS VIT NEW DISCOVERY INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- $ -- $ -- Net realized gains (losses)......................... 7,331 46,796 3,681 Change in unrealized gains (losses) on investments.. (11,470) (63,957) 65,025 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (4,139) (17,161) 68,706 --------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- -- Net transfers (including fixed account)............. -- -- -- Policy charges...................................... (6,330) (6,047) (5,593) Transfers for policy benefits and terminations...... (52) (56) (4,981) --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (6,382) (6,103) (10,574) --------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (10,521) (23,264) 58,132 NET ASSETS: Beginning of year................................... 206,851 230,115 171,983 --------------------- -------------------- --------------------- End of year......................................... $ 196,330 $ 206,851 $ 230,115 ===================== ==================== ===================== MFS VIT VALUE INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 439 $ 285 $ 197 Net realized gains (losses)......................... 1,896 1,241 384 Change in unrealized gains (losses) on investments.. (2,518) 559 5,315 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (183) 2,085 5,896 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- -- Net transfers (including fixed account)............. -- 166 5 Policy charges...................................... (2,032) (1,886) (1,361) Transfers for policy benefits and terminations...... -- -- -- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,032) (1,720) (1,356) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (2,215) 365 4,540 NET ASSETS: Beginning of year................................... 22,067 21,702 17,162 -------------------- -------------------- -------------------- End of year......................................... $ 19,852 $ 22,067 $ 21,702 ==================== ==================== ==================== MFS VIT II HIGH YIELD INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 (e) --------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 9,868 $ 8,003 $ 3,270 Net realized gains (losses)......................... (99) 25 (3) Change in unrealized gains (losses) on investments.. (16,013) (4,175) 2,275 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (6,244) 3,853 5,542 --------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- 671 Net transfers (including fixed account)............. (33) (4,330) 143,861 Policy charges...................................... (2,300) (2,228) (713) Transfers for policy benefits and terminations...... -- (2,771) -- --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,333) (9,329) 143,819 --------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (8,577) (5,476) 149,361 NET ASSETS: Beginning of year................................... 143,885 149,361 -- --------------------- -------------------- --------------------- End of year......................................... $ 135,308 $ 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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST AB GLOBAL DYNAMIC ALLOCATION INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,180 $ 860 $ 139 Net realized gains (losses)......................... 2,222 991 298 Change in unrealized gains (losses) on investments.. (4,443) 1,384 1,389 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (41) 3,235 1,826 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 16,182 11,361 11,934 Net transfers (including fixed account)............. 8,940 7,219 18,582 Policy charges...................................... (9,589) (5,606) (3,960) Transfers for policy benefits and terminations...... (4,204) (552) (1,244) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 11,329 12,422 25,312 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 11,288 15,657 27,138 NET ASSETS: Beginning of year................................... 49,893 34,236 7,098 -------------------- -------------------- -------------------- End of year......................................... $ 61,181 $ 49,893 $ 34,236 ==================== ==================== ==================== MIST ALLIANZ GLOBAL INVESTORS DYNAMIC MULTI-ASSET PLUS INVESTMENT DIVISION -------------------------------------------- 2015 2014 (a) --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 21 $ -- Net realized gains (losses)......................... (259) 1 Change in unrealized gains (losses) on investments.. (72) 1 --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (310) 2 --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,892 104 Net transfers (including fixed account)............. 1,102 19 Policy charges...................................... (645) (48) Transfers for policy benefits and terminations...... (95) (1) --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 2,254 74 --------------------- -------------------- Net increase (decrease) in net assets............. 1,944 76 NET ASSETS: Beginning of year................................... 76 -- --------------------- -------------------- End of year......................................... $ 2,020 $ 76 ===================== ==================== MIST AMERICAN FUNDS BALANCED ALLOCATION INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 15,506 $ 13,034 $ 11,592 Net realized gains (losses)......................... 49,693 84,942 47,865 Change in unrealized gains (losses) on investments.. (69,036) (47,376) 62,896 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (3,837) 50,600 122,353 -------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 112,261 120,077 104,324 Net transfers (including fixed account)............. (10,152) (11,952) (8,323) Policy charges...................................... (60,959) (53,306) (50,440) Transfers for policy benefits and terminations...... (19,938) (19,004) (9,074) -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 21,212 35,815 36,487 -------------------- --------------------- --------------------- Net increase (decrease) in net assets............. 17,375 86,415 158,840 NET ASSETS: Beginning of year................................... 876,678 790,263 631,423 -------------------- --------------------- --------------------- End of year......................................... $ 894,053 $ 876,678 $ 790,263 ==================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST AMERICAN FUNDS GROWTH ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 24,524 $ 20,605 $ 16,414 Net realized gains (losses)......................... 110,834 262,844 105,044 Change in unrealized gains (losses) on investments.. (141,365) (180,168) 172,370 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (6,007) 103,281 293,828 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 284,585 260,494 478,064 Net transfers (including fixed account)............. (51,416) (3,533) 77,933 Policy charges...................................... (138,948) (136,198) (121,468) Transfers for policy benefits and terminations...... (45,437) (219,541) (164,501) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 48,784 (98,778) 270,028 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 42,777 4,503 563,856 NET ASSETS: Beginning of year................................... 1,495,337 1,490,834 926,978 -------------------- -------------------- -------------------- End of year......................................... $ 1,538,114 $ 1,495,337 $ 1,490,834 ==================== ==================== ==================== MIST AMERICAN FUNDS MODERATE ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 17,019 $ 15,920 $ 14,487 Net realized gains (losses)......................... 52,885 82,935 45,176 Change in unrealized gains (losses) on investments.. (73,320) (41,113) 36,688 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (3,416) 57,742 96,351 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 222,467 248,387 259,807 Net transfers (including fixed account)............. 58,079 17,382 85,500 Policy charges...................................... (117,193) (114,645) (99,597) Transfers for policy benefits and terminations...... (211,042) (63,090) (54,826) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (47,689) 88,034 190,884 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (51,105) 145,776 287,235 NET ASSETS: Beginning of year................................... 1,020,697 874,921 587,686 -------------------- -------------------- -------------------- End of year......................................... $ 969,592 $ 1,020,697 $ 874,921 ==================== ==================== ==================== MIST AQR GLOBAL RISK BALANCED INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 7,434 $ -- $ 1,949 Net realized gains (losses)......................... 10,796 126 3,801 Change in unrealized gains (losses) on investments.. (30,868) 5,443 (10,413) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (12,638) 5,569 (4,663) -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 47,166 59,198 65,813 Net transfers (including fixed account)............. (53,166) (15,436) 81,910 Policy charges...................................... (21,458) (22,230) (14,930) Transfers for policy benefits and terminations...... (5,275) -- -- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (32,733) 21,532 132,793 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (45,371) 27,101 128,130 NET ASSETS: Beginning of year................................... 180,015 152,914 24,784 -------------------- -------------------- -------------------- End of year......................................... $ 134,644 $ 180,015 $ 152,914 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST BLACKROCK GLOBAL TACTICAL STRATEGIES INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 3,577 $ 1,792 $ 951 Net realized gains (losses)......................... 9,345 8,814 1,775 Change in unrealized gains (losses) on investments.. (14,933) (1,686) 4,911 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (2,011) 8,920 7,637 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 68,269 71,428 28,258 Net transfers (including fixed account)............. 617 30,488 42,849 Policy charges...................................... (22,928) (18,675) (11,540) Transfers for policy benefits and terminations...... (8,345) (3,178) (3,708) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 37,613 80,063 55,859 --------------------- --------------------- --------------------- Net increase (decrease) in net assets............. 35,602 88,983 63,496 NET ASSETS: Beginning of year................................... 191,557 102,574 39,078 --------------------- --------------------- --------------------- End of year......................................... $ 227,159 $ 191,557 $ 102,574 ===================== ===================== ===================== MIST CLARION GLOBAL REAL ESTATE INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,202,742 $ 480,465 $ 1,852,443 Net realized gains (losses)......................... 48,531 314,419 (121,862) Change in unrealized gains (losses) on investments.. (1,654,271) 3,062,383 (768,686) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (402,998) 3,857,267 961,895 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,178,317 2,319,909 2,495,640 Net transfers (including fixed account)............. (643,155) 1,111,969 1,467,986 Policy charges...................................... (1,546,835) (1,557,429) (1,572,434) Transfers for policy benefits and terminations...... (1,529,344) (1,760,827) (1,938,690) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (1,541,017) 113,622 452,502 --------------------- --------------------- --------------------- Net increase (decrease) in net assets............. (1,944,015) 3,970,889 1,414,397 NET ASSETS: Beginning of year................................... 31,468,604 27,497,715 26,083,318 --------------------- --------------------- --------------------- End of year......................................... $ 29,524,589 $ 31,468,604 $ 27,497,715 ===================== ===================== ===================== MIST CLEARBRIDGE AGGRESSIVE GROWTH INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 153,096 $ 36,831 $ 59,517 Net realized gains (losses)......................... 1,820,551 867,002 455,065 Change in unrealized gains (losses) on investments.. (3,670,688) 5,750,935 6,062,472 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (1,697,041) 6,654,768 6,577,054 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 3,350,304 2,789,219 1,403,269 Net transfers (including fixed account)............. (548,727) 20,585,269 1,633,069 Policy charges...................................... (2,487,088) (2,040,428) (1,055,732) Transfers for policy benefits and terminations...... (2,989,221) (2,395,229) (1,099,100) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,674,732) 18,938,831 881,506 --------------------- --------------------- --------------------- Net increase (decrease) in net assets............. (4,371,773) 25,593,599 7,458,560 NET ASSETS: Beginning of year................................... 47,278,544 21,684,945 14,226,385 --------------------- --------------------- --------------------- End of year......................................... $ 42,906,771 $ 47,278,544 $ 21,684,945 ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST HARRIS OAKMARK INTERNATIONAL INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,300,814 $ 1,043,576 $ 1,176,625 Net realized gains (losses)......................... 3,930,024 5,879,910 663,573 Change in unrealized gains (losses) on investments.. (6,964,997) (9,320,626) 9,999,502 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (1,734,159) (2,397,140) 11,839,700 -------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 3,189,787 3,289,660 3,906,251 Net transfers (including fixed account)............. 74,671 (7,351,245) 8,505,167 Policy charges...................................... (2,084,965) (2,202,103) (2,400,727) Transfers for policy benefits and terminations...... (2,507,280) (2,639,180) (2,622,312) -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (1,327,787) (8,902,868) 7,388,379 -------------------- --------------------- --------------------- Net increase (decrease) in net assets............. (3,061,946) (11,300,008) 19,228,079 NET ASSETS: Beginning of year................................... 41,530,766 52,830,774 33,602,695 -------------------- --------------------- --------------------- End of year......................................... $ 38,468,820 $ 41,530,766 $ 52,830,774 ==================== ===================== ===================== MIST INVESCO BALANCED-RISK ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,200 $ -- $ -- Net realized gains (losses)......................... 1,727 1,265 126 Change in unrealized gains (losses) on investments.. (4,753) 178 124 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (1,826) 1,443 250 -------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 16,400 11,849 17,879 Net transfers (including fixed account)............. 2,103 (2,709) 4,168 Policy charges...................................... (5,388) (4,305) (4,070) Transfers for policy benefits and terminations...... (3,815) -- (1,017) -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 9,300 4,835 16,960 -------------------- --------------------- -------------------- Net increase (decrease) in net assets............. 7,474 6,278 17,210 NET ASSETS: Beginning of year................................... 31,001 24,723 7,513 -------------------- --------------------- -------------------- End of year......................................... $ 38,475 $ 31,001 $ 24,723 ==================== ===================== ==================== MIST INVESCO MID CAP VALUE INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 563,734 $ 562,138 $ 678,832 Net realized gains (losses)......................... 5,178,767 17,118,207 935,109 Change in unrealized gains (losses) on investments.. (13,696,346) (8,899,738) 20,593,687 -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (7,953,845) 8,780,607 22,207,628 -------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,923,611 6,274,639 6,808,802 Net transfers (including fixed account)............. 396,833 (1,527,527) (1,553,954) Policy charges...................................... (5,050,098) (5,148,577) (5,171,329) Transfers for policy benefits and terminations...... (5,269,245) (5,635,566) (5,053,458) -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (3,998,899) (6,037,031) (4,969,939) -------------------- --------------------- --------------------- Net increase (decrease) in net assets............. (11,952,744) 2,743,576 17,237,689 NET ASSETS: Beginning of year................................... 94,874,185 92,130,609 74,892,920 -------------------- --------------------- --------------------- End of year......................................... $ 82,921,441 $ 94,874,185 $ 92,130,609 ==================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST INVESCO SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 487 $ (8,994) $ 15,232 Net realized gains (losses)......................... 1,775,499 970,370 569,238 Change in unrealized gains (losses) on investments.. (1,866,286) (438,103) 1,365,097 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (90,300) 523,273 1,949,567 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 432,154 458,397 455,209 Net transfers (including fixed account)............. (314,953) 80,982 194,761 Policy charges...................................... (309,254) (300,898) (291,728) Transfers for policy benefits and terminations...... (252,225) (288,293) (311,249) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (444,278) (49,812) 46,993 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (534,578) 473,461 1,996,560 NET ASSETS: Beginning of year................................... 7,086,689 6,613,228 4,616,668 -------------------- -------------------- -------------------- End of year......................................... $ 6,552,111 $ 7,086,689 $ 6,613,228 ==================== ==================== ==================== MIST JPMORGAN GLOBAL ACTIVE ALLOCATION INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 5,107 $ 1,679 $ 54 Net realized gains (losses)......................... 8,733 5,242 (274) Change in unrealized gains (losses) on investments.. (12,813) 2,680 5,829 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 1,027 9,601 5,609 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 43,757 41,753 18,212 Net transfers (including fixed account)............. (2,180) 31,866 80,614 Policy charges...................................... (25,286) (21,706) (12,825) Transfers for policy benefits and terminations...... (2,835) (786) (80) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 13,456 51,127 85,921 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 14,483 60,728 91,530 NET ASSETS: Beginning of year................................... 171,141 110,413 18,883 -------------------- -------------------- -------------------- End of year......................................... $ 185,624 $ 171,141 $ 110,413 ==================== ==================== ==================== MIST JPMORGAN SMALL CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 4,196 $ 2,563 $ 337 Net realized gains (losses)......................... 25,929 30,329 2,408 Change in unrealized gains (losses) on investments.. (52,802) (18,929) 28,817 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (22,677) 13,963 31,562 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 42,823 27,252 14,812 Net transfers (including fixed account)............. 19,637 42,989 181,255 Policy charges...................................... (22,975) (17,294) (9,533) Transfers for policy benefits and terminations...... (1,767) (26,298) (1,850) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 37,718 26,649 184,684 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 15,041 40,612 216,246 NET ASSETS: Beginning of year................................... 295,411 254,799 38,553 -------------------- -------------------- -------------------- End of year......................................... $ 310,452 $ 295,411 $ 254,799 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST LOOMIS SAYLES GLOBAL MARKETS INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 (d) -------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 7,875 $ 9,637 $ -- Net realized gains (losses)......................... 18,423 4,771 705 Change in unrealized gains (losses) on investments.. (13,993) 1,137 43,104 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 12,305 15,545 43,809 -------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 43,858 52,562 33,048 Net transfers (including fixed account)............. (6,677) 9,314 369,498 Policy charges...................................... (35,911) (34,455) (21,387) Transfers for policy benefits and terminations...... (109,930) (37,846) (6,708) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (108,660) (10,425) 374,451 -------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (96,355) 5,120 418,260 NET ASSETS: Beginning of year................................... 423,380 418,260 -- -------------------- -------------------- --------------------- End of year......................................... $ 327,025 $ 423,380 $ 418,260 ==================== ==================== ===================== MIST LORD ABBETT BOND DEBENTURE INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,611,491 $ 1,616,494 $ 1,902,403 Net realized gains (losses)......................... 1,202,294 1,102,818 299,375 Change in unrealized gains (losses) on investments.. (3,396,105) (1,312,784) (7,269) --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (582,320) 1,406,528 2,194,509 --------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,050,276 2,028,426 2,130,805 Net transfers (including fixed account)............. 648,749 (411,550) (494,009) Policy charges...................................... (1,556,057) (1,553,279) (1,625,126) Transfers for policy benefits and terminations...... (1,575,063) (1,929,229) (1,597,160) --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (432,095) (1,865,632) (1,585,490) --------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (1,014,415) (459,104) 609,019 NET ASSETS: Beginning of year................................... 28,665,010 29,124,114 28,515,095 --------------------- -------------------- -------------------- End of year......................................... $ 27,650,595 $ 28,665,010 $ 29,124,114 ===================== ==================== ==================== MIST MET/TEMPLETON INTERNATIONAL BOND INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 16,491 $ 6,729 $ 302 Net realized gains (losses)......................... (5,183) 6 37 Change in unrealized gains (losses) on investments.. (19,099) (3,576) 996 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (7,791) 3,159 1,335 -------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 46,145 40,184 23,432 Net transfers (including fixed account)............. (9,888) 57,850 64,543 Policy charges...................................... (17,243) (12,411) (4,909) Transfers for policy benefits and terminations...... (1,587) (1,693) (230) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 17,427 83,930 82,836 -------------------- -------------------- --------------------- Net increase (decrease) in net assets............. 9,636 87,089 84,171 NET ASSETS: Beginning of year................................... 173,865 86,776 2,605 -------------------- -------------------- --------------------- End of year......................................... $ 183,501 $ 173,865 $ 86,776 ==================== ==================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST METLIFE ASSET ALLOCATION 100 INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 306,462 $ 165,509 $ 144,757 Net realized gains (losses)......................... 1,897,763 437,534 243,289 Change in unrealized gains (losses) on investments.. (2,617,113) 404,377 4,045,633 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (412,888) 1,007,420 4,433,679 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,468,258 2,400,839 2,268,937 Net transfers (including fixed account)............. (542,629) 489,496 149,509 Policy charges...................................... (1,172,423) (1,133,365) (1,056,742) Transfers for policy benefits and terminations...... (791,081) (1,142,502) (1,666,527) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (37,875) 614,468 (304,823) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............. (450,763) 1,621,888 4,128,856 NET ASSETS: Beginning of year................................... 20,893,340 19,271,452 15,142,596 --------------------- --------------------- --------------------- End of year......................................... $ 20,442,577 $ 20,893,340 $ 19,271,452 ===================== ===================== ===================== MIST METLIFE BALANCED PLUS INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 4,773 $ 2,715 $ 778 Net realized gains (losses)......................... 10,549 12,256 3,942 Change in unrealized gains (losses) on investments.. (26,058) (517) 4,689 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (10,736) 14,454 9,409 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 60,907 41,771 19,018 Net transfers (including fixed account)............. 16,180 106,162 28,730 Policy charges...................................... (31,093) (21,052) (8,924) Transfers for policy benefits and terminations...... (10,066) -- -- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 35,928 126,881 38,824 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 25,192 141,335 48,233 NET ASSETS: Beginning of year................................... 235,501 94,166 45,933 -------------------- -------------------- -------------------- End of year......................................... $ 260,693 $ 235,501 $ 94,166 ==================== ==================== ==================== MIST METLIFE MULTI-INDEX TARGETED RISK INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 (d) -------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,398 $ -- $ 6 Net realized gains (losses)......................... 4,170 262 (194) Change in unrealized gains (losses) on investments.. (7,672) 4,343 52 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (2,104) 4,605 (136) -------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 18,161 7,295 1,546 Net transfers (including fixed account)............. 13,332 111,732 1,810 Policy charges...................................... (11,516) (4,904) (541) Transfers for policy benefits and terminations...... (3,193) -- -- -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 16,784 114,123 2,815 -------------------- -------------------- --------------------- Net increase (decrease) in net assets............. 14,680 118,728 2,679 NET ASSETS: Beginning of year................................... 121,407 2,679 -- -------------------- -------------------- --------------------- End of year......................................... $ 136,087 $ 121,407 $ 2,679 ==================== ==================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST METLIFE SMALL CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 800 $ 366 $ 9,744 Net realized gains (losses)......................... 312,062 71,109 47,240 Change in unrealized gains (losses) on investments.. (358,930) (58,142) 199,123 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (46,068) 13,333 256,107 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 9,270 16,136 18,262 Net transfers (including fixed account)............. (679) (61,174) (70,109) Policy charges...................................... (21,127) (21,735) (22,081) Transfers for policy benefits and terminations...... (3,611) (40,137) (106,096) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (16,147) (106,910) (180,024) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (62,215) (93,577) 76,083 NET ASSETS: Beginning of year................................... 864,243 957,820 881,737 -------------------- -------------------- -------------------- End of year......................................... $ 802,028 $ 864,243 $ 957,820 ==================== ==================== ==================== MIST MFS EMERGING MARKETS EQUITY INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 10,228 $ 2,914 $ 1,482 Net realized gains (losses)......................... (4,559) (2,174) 254 Change in unrealized gains (losses) on investments.. (82,085) (31,587) (3,821) -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ (76,416) (30,847) (2,085) -------------------- -------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 116,005 130,260 65,858 Net transfers (including fixed account)............. 29,215 193,175 138,765 Policy charges...................................... (40,363) (35,736) (16,190) Transfers for policy benefits and terminations...... (11,079) (8,565) (2,469) -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 93,778 279,134 185,964 -------------------- -------------------- ------------------- Net increase (decrease) in net assets............. 17,362 248,287 183,879 NET ASSETS: Beginning of year................................... 521,123 272,836 88,957 -------------------- -------------------- ------------------- End of year......................................... $ 538,485 $ 521,123 $ 272,836 ==================== ==================== =================== MIST MFS RESEARCH INTERNATIONAL INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 548,242 $ 464,648 $ 457,179 Net realized gains (losses)......................... 34,366 144,798 48,641 Change in unrealized gains (losses) on investments.. (864,226) (2,026,000) 2,877,942 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (281,618) (1,416,554) 3,383,762 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,136,865 1,202,389 1,318,727 Net transfers (including fixed account)............. (166,293) (150,627) 2,955,311 Policy charges...................................... (883,299) (914,533) (920,553) Transfers for policy benefits and terminations...... (790,282) (948,026) (1,090,319) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (703,009) (810,797) 2,263,166 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (984,627) (2,227,351) 5,646,928 NET ASSETS: Beginning of year................................... 19,140,390 21,367,741 15,720,813 -------------------- -------------------- -------------------- End of year......................................... $ 18,155,763 $ 19,140,390 $ 21,367,741 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST MORGAN STANLEY MID CAP GROWTH INVESTMENT DIVISION ---------------------------------------------------------- 2015 2014 2013 ------------------ ------------------ ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (686,901) $ (584,279) $ 1,032,581 Net realized gains (losses)......................... 4,836,759 5,665,992 3,781,941 Change in unrealized gains (losses) on investments.. (15,427,415) (2,867,790) 65,460,998 ------------------ ------------------ ------------------ Net increase (decrease) in net assets resulting from operations................................ (11,277,557) 2,213,923 70,275,520 ------------------ ------------------ ------------------ POLICY TRANSACTIONS: Premium payments received from policy owners........ 17,952,987 18,859,785 19,642,966 Net transfers (including fixed account)............. (1,160,187) (2,225,968) (3,859,066) Policy charges...................................... (13,674,535) (14,270,234) (14,305,433) Transfers for policy benefits and terminations...... (13,144,136) (15,106,139) (13,831,139) ------------------ ------------------ ------------------ Net increase (decrease) in net assets resulting from policy transactions....................... (10,025,871) (12,742,556) (12,352,672) ------------------ ------------------ ------------------ Net increase (decrease) in net assets............. (21,303,428) (10,528,633) 57,922,848 NET ASSETS: Beginning of year................................... 233,885,326 244,413,959 186,491,111 ------------------ ------------------ ------------------ End of year......................................... $ 212,581,898 $ 233,885,326 $ 244,413,959 ================== ================== ================== MIST OPPENHEIMER GLOBAL EQUITY INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 504,420 $ 415,696 $ 847,938 Net realized gains (losses)......................... 2,578,733 2,942,391 1,128,194 Change in unrealized gains (losses) on investments.. (1,183,054) (2,309,701) 9,078,535 ------------------ ----------------- ------------------ Net increase (decrease) in net assets resulting from operations................................ 1,900,099 1,048,386 11,054,667 ------------------ ----------------- ------------------ POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,885,208 3,247,625 3,161,117 Net transfers (including fixed account)............. 1,263,650 (469,967) (609,502) Policy charges...................................... (2,404,251) (2,381,921) (2,431,800) Transfers for policy benefits and terminations...... (2,602,123) (3,500,487) (2,535,936) ------------------ ----------------- ------------------ Net increase (decrease) in net assets resulting from policy transactions....................... (857,516) (3,104,750) (2,416,121) ------------------ ----------------- ------------------ Net increase (decrease) in net assets............. 1,042,583 (2,056,364) 8,638,546 NET ASSETS: Beginning of year................................... 48,430,521 50,486,885 41,848,339 ------------------ ----------------- ------------------ End of year......................................... $ 49,473,104 $ 48,430,521 $ 50,486,885 ================== ================= ================== MIST PANAGORA GLOBAL DIVERSIFIED RISK INVESTMENT DIVISION ------------------- 2015 (f) ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 50 Net realized gains (losses)......................... (295) Change in unrealized gains (losses) on investments.. 1 ------------------- Net increase (decrease) in net assets resulting from operations................................ (244) ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 41 Net transfers (including fixed account)............. 440 Policy charges...................................... (64) Transfers for policy benefits and terminations...... (163) ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 254 ------------------- Net increase (decrease) in net assets............. 10 NET ASSETS: Beginning of year................................... -- ------------------- End of year......................................... $ 10 =================== MIST PIMCO INFLATION PROTECTED BOND INVESTMENT DIVISION ---------------------------------------------------------- 2015 2014 2013 ------------------ ------------------ ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 540,055 $ 191,714 $ 276,844 Net realized gains (losses)......................... (211,211) (162,419) 545,242 Change in unrealized gains (losses) on investments.. (655,945) 319,472 (2,018,492) ------------------ ------------------ ------------------ Net increase (decrease) in net assets resulting from operations................................ (327,101) 348,767 (1,196,406) ------------------ ------------------ ------------------ POLICY TRANSACTIONS: Premium payments received from policy owners........ 942,996 1,086,624 1,300,352 Net transfers (including fixed account)............. (578,943) 31,773 (1,029,716) Policy charges...................................... (670,899) (712,219) (806,882) Transfers for policy benefits and terminations...... (496,484) (690,467) (725,408) ------------------ ------------------ ------------------ Net increase (decrease) in net assets resulting from policy transactions....................... (803,330) (284,289) (1,261,654) ------------------ ------------------ ------------------ Net increase (decrease) in net assets............. (1,130,431) 64,478 (2,458,060) NET ASSETS: Beginning of year................................... 11,277,978 11,213,500 13,671,560 ------------------ ------------------ ------------------ End of year......................................... $ 10,147,547 $ 11,277,978 $ 11,213,500 ================== ================== ==================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST PIMCO TOTAL RETURN INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,443,284 $ 1,198,857 $ 2,109,672 Net realized gains (losses)......................... 504,809 36,542 1,082,946 Change in unrealized gains (losses) on investments.. (2,854,535) 873,849 (4,155,495) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 93,558 2,109,248 (962,877) -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 3,809,014 4,163,684 4,702,504 Net transfers (including fixed account)............. (1,054,727) (3,229,896) 3,443,762 Policy charges...................................... (2,872,640) (3,052,766) (3,408,964) Transfers for policy benefits and terminations...... (2,635,927) (2,972,047) (4,297,571) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,754,280) (5,091,025) 439,731 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (2,660,722) (2,981,777) (523,146) NET ASSETS: Beginning of year................................... 46,980,970 49,962,747 50,485,893 -------------------- -------------------- -------------------- End of year......................................... $ 44,320,248 $ 46,980,970 $ 49,962,747 ==================== ==================== ==================== MIST PIONEER FUND INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 ------------------- ------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,424 $ 3,502 $ 6,252 Net realized gains (losses)......................... 28,657 58,712 17,551 Change in unrealized gains (losses) on investments.. (29,816) (39,539) 32,389 ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 1,265 22,675 56,192 ------------------- ------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 955 -- 1,433 Net transfers (including fixed account)............. -- -- (14,658) Policy charges...................................... (2,245) (2,073) (3,841) Transfers for policy benefits and terminations...... (48,335) -- (29,228) ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (49,625) (2,073) (46,294) ------------------- ------------------- -------------------- Net increase (decrease) in net assets............. (48,360) 20,602 9,898 NET ASSETS: Beginning of year................................... 225,164 204,562 194,664 ------------------- ------------------- -------------------- End of year......................................... $ 176,804 $ 225,164 $ 204,562 =================== =================== ==================== MIST PYRAMIS MANAGED RISK INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 (d) -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 86 $ -- $ 2 Net realized gains (losses)......................... 978 10 5 Change in unrealized gains (losses) on investments.. (255) 48 6 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 809 58 13 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 3,971 1,546 376 Net transfers (including fixed account)............. 96 189 48 Policy charges...................................... (2,087) (516) (139) Transfers for policy benefits and terminations...... (755) -- -- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 1,225 1,219 285 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 2,034 1,277 298 NET ASSETS: Beginning of year................................... 1,575 298 -- -------------------- -------------------- -------------------- End of year......................................... $ 3,609 $ 1,575 $ 298 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST SCHRODERS GLOBAL MULTI-ASSET INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 ------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 467 $ 398 $ 1 Net realized gains (losses)......................... 1,436 1,257 187 Change in unrealized gains (losses) on investments.. (2,611) 553 1,498 ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (708) 2,208 1,686 ------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 11,927 9,093 6,592 Net transfers (including fixed account)............. 948 3,198 11,865 Policy charges...................................... (5,687) (5,139) (3,230) Transfers for policy benefits and terminations...... (605) (239) -- ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 6,583 6,913 15,227 ------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 5,875 9,121 16,913 NET ASSETS: Beginning of year................................... 31,786 22,665 5,752 ------------------- -------------------- -------------------- End of year......................................... $ 37,661 $ 31,786 $ 22,665 =================== ==================== ==================== MIST SSGA GROWTH AND INCOME ETF INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 191,488 $ 185,874 $ 177,538 Net realized gains (losses)......................... 507,278 630,738 250,766 Change in unrealized gains (losses) on investments.. (845,948) (350,740) 431,610 -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ (147,182) 465,872 859,914 -------------------- -------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 902,958 906,155 862,220 Net transfers (including fixed account)............. (56,759) (356,847) 630,532 Policy charges...................................... (487,928) (484,443) (442,367) Transfers for policy benefits and terminations...... (287,368) (640,439) (250,215) -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 70,903 (575,574) 800,170 -------------------- -------------------- ------------------- Net increase (decrease) in net assets............. (76,279) (109,702) 1,660,084 NET ASSETS: Beginning of year................................... 7,718,022 7,827,724 6,167,640 -------------------- -------------------- ------------------- End of year......................................... $ 7,641,743 $ 7,718,022 $ 7,827,724 ==================== ==================== =================== MIST SSGA GROWTH ETF INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 144,898 $ 110,880 $ 102,918 Net realized gains (losses)......................... 399,376 458,401 255,766 Change in unrealized gains (losses) on investments.. (699,498) (255,403) 467,150 -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ (155,224) 313,878 825,834 -------------------- -------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,101,174 1,072,149 588,590 Net transfers (including fixed account)............. 27,146 369,458 627,263 Policy charges...................................... (371,675) (333,333) (282,734) Transfers for policy benefits and terminations...... (335,865) (546,709) (433,221) -------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 420,780 561,565 499,898 -------------------- -------------------- ------------------- Net increase (decrease) in net assets............. 265,556 875,443 1,325,732 NET ASSETS: Beginning of year................................... 6,445,663 5,570,220 4,244,488 -------------------- -------------------- ------------------- End of year......................................... $ 6,711,219 $ 6,445,663 $ 5,570,220 ==================== ==================== ===================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MIST T. ROWE PRICE LARGE CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 36,741 $ 32,258 $ 30,041 Net realized gains (losses)......................... 91,303 6,947 22,312 Change in unrealized gains (losses) on investments.. (197,956) 244,232 456,298 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (69,912) 283,437 508,651 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 7,472 3,948 7,454 Net transfers (including fixed account)............. (203,997) 113,630 326,923 Policy charges...................................... (30,931) (30,992) (25,078) Transfers for policy benefits and terminations...... (68,966) (119) (112,478) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (296,422) 86,467 196,821 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (366,334) 369,904 705,472 NET ASSETS: Beginning of year................................... 2,395,891 2,025,987 1,320,515 -------------------- -------------------- -------------------- End of year......................................... $ 2,029,557 $ 2,395,891 $ 2,025,987 ==================== ==================== ==================== MIST T. ROWE PRICE MID CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (45,309) $ (39,978) $ 65,404 Net realized gains (losses)......................... 5,782,950 3,333,489 1,831,913 Change in unrealized gains (losses) on investments.. (3,612,484) 275,430 5,764,932 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 2,125,157 3,568,941 7,662,249 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,017,424 1,971,641 1,926,999 Net transfers (including fixed account)............. 2,394,912 1,134,159 205,058 Policy charges...................................... (1,635,548) (1,470,638) (1,381,598) Transfers for policy benefits and terminations...... (2,115,852) (1,719,618) (1,809,707) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 660,936 (84,456) (1,059,248) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 2,786,093 3,484,485 6,603,001 NET ASSETS: Beginning of year................................... 31,233,141 27,748,656 21,145,655 -------------------- -------------------- -------------------- End of year......................................... $ 34,019,234 $ 31,233,141 $ 27,748,656 ==================== ==================== ==================== MIST WMC LARGE CAP RESEARCH INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,822,832 $ 1,625,933 $ 3,087,670 Net realized gains (losses)......................... 36,321,046 5,779,958 1,187,504 Change in unrealized gains (losses) on investments.. (21,509,605) 41,616,595 96,008,684 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 16,634,273 49,022,486 100,283,858 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 25,871,596 26,924,187 28,600,415 Net transfers (including fixed account)............. (1,616,660) 566,938 (4,051,695) Policy charges...................................... (25,907,001) (25,639,658) (25,380,973) Transfers for policy benefits and terminations...... (22,796,743) (23,789,708) (21,667,485) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (24,448,808) (21,938,241) (22,499,738) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (7,814,535) 27,084,245 77,784,120 NET ASSETS: Beginning of year................................... 412,427,190 385,342,945 307,558,825 -------------------- -------------------- -------------------- End of year......................................... $ 404,612,655 $ 412,427,190 $ 385,342,945 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF BAILLIE GIFFORD INTERNATIONAL STOCK INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 519,877 $ 411,479 $ 476,439 Net realized gains (losses)......................... (206,507) (176,452) (474,270) Change in unrealized gains (losses) on investments.. (1,227,962) (1,735,615) 5,921,616 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (914,592) (1,500,588) 5,923,785 -------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 3,575,231 3,833,062 4,172,944 Net transfers (including fixed account)............. (179,571) (778,376) (82,846) Policy charges...................................... (2,610,457) (2,744,350) (2,853,344) Transfers for policy benefits and terminations...... (2,221,523) (2,453,566) (2,703,864) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (1,436,320) (2,143,230) (1,467,110) -------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (2,350,912) (3,643,818) 4,456,675 NET ASSETS: Beginning of year................................... 41,212,522 44,856,340 40,399,665 -------------------- -------------------- --------------------- End of year......................................... $ 38,861,610 $ 41,212,522 $ 44,856,340 ==================== ==================== ===================== MSF BARCLAYS AGGREGATE BOND INDEX INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 3,706,067 $ 3,602,466 $ 4,070,313 Net realized gains (losses)......................... 111,155 62,943 125,172 Change in unrealized gains (losses) on investments.. (3,467,125) 3,247,015 (6,977,167) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 350,097 6,912,424 (2,781,682) -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 10,650,517 10,905,300 11,646,001 Net transfers (including fixed account)............. (390,145) 8,138,349 11,038,720 Policy charges...................................... (8,265,344) (8,147,634) (8,147,262) Transfers for policy benefits and terminations...... (6,269,190) (8,356,763) (6,747,468) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (4,274,162) 2,539,252 7,789,991 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (3,924,065) 9,451,676 5,008,309 NET ASSETS: Beginning of year................................... 130,875,542 121,423,866 116,415,557 -------------------- -------------------- -------------------- End of year......................................... $ 126,951,477 $ 130,875,542 $ 121,423,866 ==================== ==================== ==================== MSF BLACKROCK BOND INCOME INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,849,615 $ 2,540,384 $ 2,989,203 Net realized gains (losses)......................... 913,996 70,435 2,148,415 Change in unrealized gains (losses) on investments.. (3,544,439) 2,699,020 (6,076,619) --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 219,172 5,309,839 (939,001) --------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 6,361,507 6,564,554 7,196,561 Net transfers (including fixed account)............. (1,236,326) (132,609) 376,688 Policy charges...................................... (5,484,593) (5,530,279) (5,905,721) Transfers for policy benefits and terminations...... (4,302,406) (4,664,936) (4,992,049) --------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (4,661,818) (3,763,270) (3,324,521) --------------------- --------------------- -------------------- Net increase (decrease) in net assets............. (4,442,646) 1,546,569 (4,263,522) NET ASSETS: Beginning of year................................... 82,796,372 81,249,803 85,513,325 --------------------- --------------------- -------------------- End of year......................................... $ 78,353,726 $ 82,796,372 $ 81,249,803 ===================== ===================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF BLACKROCK CAPITAL APPRECIATION INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (10,693) $ (2,468) $ 135,824 Net realized gains (losses)......................... 2,022,735 3,803,528 321,200 Change in unrealized gains (losses) on investments.. (1,407,738) (2,831,679) 4,769,715 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 604,304 969,381 5,226,739 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 793,014 901,941 1,539,986 Net transfers (including fixed account)............. 336,170 (11,673,050) 1,984,291 Policy charges...................................... (588,991) (632,673) (888,848) Transfers for policy benefits and terminations...... (655,032) (709,448) (994,087) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (114,839) (12,113,230) 1,641,342 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 489,465 (11,143,849) 6,868,081 NET ASSETS: Beginning of year................................... 9,736,331 20,880,180 14,012,099 -------------------- -------------------- -------------------- End of year......................................... $ 10,225,796 $ 9,736,331 $ 20,880,180 ==================== ==================== ==================== MSF BLACKROCK LARGE CAP VALUE INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 335,383 $ 216,952 $ 205,780 Net realized gains (losses)......................... 1,421,917 4,317,782 916,715 Change in unrealized gains (losses) on investments.. (2,942,487) (2,739,427) 3,399,848 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (1,185,187) 1,795,307 4,522,343 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,614,117 1,677,799 1,703,921 Net transfers (including fixed account)............. 139,650 458,183 136,294 Policy charges...................................... (1,098,817) (1,071,625) (1,017,256) Transfers for policy benefits and terminations...... (1,132,285) (1,236,456) (1,178,677) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (477,335) (172,099) (355,718) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (1,662,522) 1,623,208 4,166,625 NET ASSETS: Beginning of year................................... 20,080,783 18,457,575 14,290,950 -------------------- -------------------- -------------------- End of year......................................... $ 18,418,261 $ 20,080,783 $ 18,457,575 ==================== ==================== ==================== MSF BLACKROCK MONEY MARKET INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (35,014) $ (38,422) $ (45,649) Net realized gains (losses)......................... -- -- -- Change in unrealized gains (losses) on investments.. -- -- -- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (35,014) (38,422) (45,649) -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 476,089 2,264,640 3,313,077 Net transfers (including fixed account)............. (4,569,788) 5,773,861 981,039 Policy charges...................................... (886,480) (1,047,919) (1,064,647) Transfers for policy benefits and terminations...... (333,363) (701,246) (2,676,395) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (5,313,542) 6,289,336 553,074 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (5,348,556) 6,250,914 507,425 NET ASSETS: Beginning of year................................... 30,032,793 23,781,879 23,274,454 -------------------- -------------------- -------------------- End of year......................................... $ 24,684,237 $ 30,032,793 $ 23,781,879 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF FRONTIER MID CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (1,605,819) $ (1,529,952) $ 1,219,986 Net realized gains (losses)......................... 36,288,678 26,100,542 10,646,811 Change in unrealized gains (losses) on investments.. (28,947,695) (1,683,974) 45,562,137 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 5,735,164 22,886,616 57,428,934 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 13,526,076 14,123,989 15,025,336 Net transfers (including fixed account)............. (546,174) (2,083,030) (9,140,683) Policy charges...................................... (13,281,761) (13,134,488) (13,251,775) Transfers for policy benefits and terminations...... (13,018,169) (14,207,419) (12,787,266) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (13,320,028) (15,300,948) (20,154,388) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (7,584,864) 7,585,668 37,274,546 NET ASSETS: Beginning of year................................... 235,559,690 227,974,022 190,699,476 -------------------- -------------------- -------------------- End of year......................................... $ 227,974,826 $ 235,559,690 $ 227,974,022 ==================== ==================== ==================== MSF JENNISON GROWTH INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 49,690 $ 43,836 $ 69,286 Net realized gains (losses)......................... 4,130,001 1,760,217 748,650 Change in unrealized gains (losses) on investments.. (1,789,865) 102,570 5,442,828 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 2,389,826 1,906,623 6,260,764 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,340,497 1,453,986 1,523,693 Net transfers (including fixed account)............. 509,083 255,971 (654,269) Policy charges...................................... (1,224,290) (1,193,061) (1,190,262) Transfers for policy benefits and terminations...... (1,580,551) (1,317,032) (1,960,411) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (955,261) (800,136) (2,281,249) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 1,434,565 1,106,487 3,979,515 NET ASSETS: Beginning of year................................... 22,860,613 21,754,126 17,774,611 -------------------- -------------------- -------------------- End of year......................................... $ 24,295,178 $ 22,860,613 $ 21,754,126 ==================== ==================== ==================== MSF LOOMIS SAYLES SMALL CAP CORE INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 13,776 $ (14,295) $ 72,558 Net realized gains (losses)......................... 3,521,185 3,617,443 2,242,704 Change in unrealized gains (losses) on investments.. (3,857,826) (2,720,783) 5,169,026 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (322,865) 882,365 7,484,288 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,455,376 1,565,136 1,615,232 Net transfers (including fixed account)............. (362,429) (73,345) (215,054) Policy charges...................................... (1,217,974) (1,224,901) (1,228,517) Transfers for policy benefits and terminations...... (1,348,393) (1,266,842) (1,483,788) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (1,473,420) (999,952) (1,312,127) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (1,796,285) (117,587) 6,172,161 NET ASSETS: Beginning of year................................... 24,891,171 25,008,758 18,836,597 -------------------- -------------------- -------------------- End of year......................................... $ 23,094,886 $ 24,891,171 $ 25,008,758 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF LOOMIS SAYLES SMALL CAP GROWTH INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (9,783) $ (10,498) $ (8,824) Net realized gains (losses)......................... 1,804,809 1,860,548 444,863 Change in unrealized gains (losses) on investments.. (1,598,061) (1,752,743) 3,463,471 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 196,965 97,307 3,899,510 --------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 790,736 896,507 804,491 Net transfers (including fixed account)............. 38,986 (421,247) 748,405 Policy charges...................................... (610,291) (607,725) (585,929) Transfers for policy benefits and terminations...... (603,154) (728,890) (824,857) --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (383,723) (861,355) 142,110 --------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (186,758) (764,048) 4,041,620 NET ASSETS: Beginning of year................................... 11,372,609 12,136,657 8,095,037 --------------------- -------------------- -------------------- End of year......................................... $ 11,185,851 $ 11,372,609 $ 12,136,657 ===================== ==================== ==================== MSF MET/ARTISAN MID CAP VALUE INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 651,607 $ 401,768 $ 506,787 Net realized gains (losses)......................... 8,080,747 1,070,144 684,691 Change in unrealized gains (losses) on investments.. (14,388,947) (313,797) 16,708,173 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (5,656,593) 1,158,115 17,899,651 -------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 4,248,709 4,484,293 4,818,272 Net transfers (including fixed account)............. (532,025) (394,233) (164,067) Policy charges...................................... (3,288,323) (3,529,069) (3,575,679) Transfers for policy benefits and terminations...... (3,481,517) (4,058,223) (4,519,220) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (3,053,156) (3,497,232) (3,440,694) -------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (8,709,749) (2,339,117) 14,458,957 NET ASSETS: Beginning of year................................... 62,265,623 64,604,740 50,145,783 -------------------- -------------------- --------------------- End of year......................................... $ 53,555,874 $ 62,265,623 $ 64,604,740 ==================== ==================== ===================== MSF METLIFE ASSET ALLOCATION 20 INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 116,446 $ 201,461 $ 160,505 Net realized gains (losses)......................... 174,994 239,244 81,883 Change in unrealized gains (losses) on investments.. (309,762) (203,125) (14,063) -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (18,322) 237,580 228,325 -------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 514,400 486,493 533,556 Net transfers (including fixed account)............. 93,614 224,914 (150,585) Policy charges...................................... (522,816) (502,703) (484,460) Transfers for policy benefits and terminations...... (165,837) (70,115) (355,218) -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (80,639) 138,589 (456,707) -------------------- --------------------- -------------------- Net increase (decrease) in net assets............. (98,961) 376,169 (228,382) NET ASSETS: Beginning of year................................... 5,533,722 5,157,553 5,385,935 -------------------- --------------------- -------------------- End of year......................................... $ 5,434,761 $ 5,533,722 $ 5,157,553 ==================== ===================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF METLIFE ASSET ALLOCATION 40 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 29,433 $ 273,153 $ 235,287 Net realized gains (losses)......................... 699,512 467,475 306,341 Change in unrealized gains (losses) on investments.. (854,363) (270,968) 418,401 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (125,418) 469,660 960,029 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 952,025 955,553 1,011,525 Net transfers (including fixed account)............. 315,680 607,149 150,570 Policy charges...................................... (829,348) (775,283) (748,237) Transfers for policy benefits and terminations...... (637,520) (593,011) (741,985) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (199,163) 194,408 (328,127) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ (324,581) 664,068 631,902 NET ASSETS: Beginning of year................................... 9,972,600 9,308,532 8,676,630 --------------------- --------------------- --------------------- End of year......................................... $ 9,648,019 $ 9,972,600 $ 9,308,532 ===================== ===================== ===================== MSF METLIFE ASSET ALLOCATION 60 INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 305,717 $ 1,121,316 $ 978,796 Net realized gains (losses)......................... 4,072,097 2,840,090 1,591,249 Change in unrealized gains (losses) on investments.. (4,965,532) (1,284,610) 5,640,223 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (587,718) 2,676,796 8,210,268 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 4,710,179 4,845,492 5,151,753 Net transfers (including fixed account)............. (516,267) 1,294,516 (136,518) Policy charges...................................... (3,570,057) (3,579,223) (3,553,677) Transfers for policy benefits and terminations...... (2,803,258) (2,913,886) (3,662,499) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,179,403) (353,101) (2,200,941) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ (2,767,121) 2,323,695 6,009,327 NET ASSETS: Beginning of year................................... 53,734,760 51,411,065 45,401,738 --------------------- --------------------- --------------------- End of year......................................... $ 50,967,639 $ 53,734,760 $ 51,411,065 ===================== ===================== ===================== MSF METLIFE ASSET ALLOCATION 80 INVESTMENT DIVISION ---------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 427,851 $ 1,670,618 $ 1,331,275 Net realized gains (losses)......................... 6,177,764 1,673,184 1,631,177 Change in unrealized gains (losses) on investments.. (8,037,823) 1,795,645 15,682,919 --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (1,432,208) 5,139,447 18,645,371 --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 9,064,666 9,639,429 9,997,220 Net transfers (including fixed account)............. (479,555) 1,001,195 (970,786) Policy charges...................................... (5,646,022) (5,665,664) (5,392,604) Transfers for policy benefits and terminations...... (5,971,484) (5,697,181) (5,660,564) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (3,032,395) (722,221) (2,026,734) --------------------- --------------------- --------------------- Net increase (decrease) in net assets............ (4,464,603) 4,417,226 16,618,637 NET ASSETS: Beginning of year................................... 98,075,582 93,658,356 77,039,719 --------------------- --------------------- --------------------- End of year......................................... $ 93,610,979 $ 98,075,582 $ 93,658,356 ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF METLIFE MID CAP STOCK INDEX INVESTMENT DIVISION ------------------------------------------------------------------ 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 965,012 $ 843,384 $ 921,665 Net realized gains (losses)......................... 7,586,957 8,284,867 4,180,005 Change in unrealized gains (losses) on investments.. (10,506,888) (1,040,640) 18,736,176 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (1,954,919) 8,087,611 23,837,846 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,638,229 5,599,962 6,442,989 Net transfers (including fixed account)............. 508,090 (10,183,170) 6,297,964 Policy charges...................................... (4,665,601) (4,685,942) (4,821,378) Transfers for policy benefits and terminations...... (5,028,583) (5,756,275) (5,452,511) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (3,547,865) (15,025,425) 2,467,064 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (5,502,784) (6,937,814) 26,304,910 NET ASSETS: Beginning of year................................... 89,174,913 96,112,727 69,807,817 -------------------- -------------------- -------------------- End of year......................................... $ 83,672,129 $ 89,174,913 $ 96,112,727 ==================== ==================== ==================== MSF METLIFE STOCK INDEX INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 14,801,691 $ 13,571,216 $ 13,291,250 Net realized gains (losses)......................... 58,353,168 45,473,224 24,663,718 Change in unrealized gains (losses) on investments.. (63,726,527) 58,022,278 191,004,236 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 9,428,332 117,066,718 228,959,204 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 70,011,175 71,591,777 74,274,408 Net transfers (including fixed account)............. 798,237 (11,181,289) (13,931,092) Policy charges...................................... (46,759,361) (46,691,201) (46,520,238) Transfers for policy benefits and terminations...... (59,435,957) (70,976,222) (56,333,579) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (35,385,906) (57,256,935) (42,510,501) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (25,957,574) 59,809,783 186,448,703 NET ASSETS: Beginning of year................................... 986,064,717 926,254,934 739,806,231 -------------------- -------------------- -------------------- End of year......................................... $ 960,107,143 $ 986,064,717 $ 926,254,934 ==================== ==================== ==================== MSF MFS TOTAL RETURN INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 247,122 $ 221,552 $ 218,647 Net realized gains (losses)......................... 196,619 193,152 99,210 Change in unrealized gains (losses) on investments.. (470,036) 388,544 1,215,884 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (26,295) 803,248 1,533,741 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 968,017 803,185 855,275 Net transfers (including fixed account)............. 63,944 80,744 222,090 Policy charges...................................... (604,132) (608,835) (611,556) Transfers for policy benefits and terminations...... (558,787) (680,255) (576,957) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (130,958) (405,161) (111,148) -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (157,253) 398,087 1,422,593 NET ASSETS: Beginning of year................................... 9,964,116 9,566,029 8,143,436 -------------------- -------------------- -------------------- End of year......................................... $ 9,806,863 $ 9,964,116 $ 9,566,029 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF MFS VALUE INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 -------------------- ------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,254,602 $ 1,340,478 $ 1,170,720 Net realized gains (losses)......................... 14,425,867 5,617,216 3,182,904 Change in unrealized gains (losses) on investments.. (16,842,516) 1,679,688 17,288,533 -------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ (162,047) 8,637,382 21,642,157 -------------------- ------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,724,364 5,969,586 5,983,336 Net transfers (including fixed account)............. (394,287) (737,889) 7,686,212 Policy charges...................................... (4,715,726) (4,711,074) (4,505,565) Transfers for policy benefits and terminations...... (5,310,681) (5,805,644) (4,815,384) -------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (4,696,330) (5,285,021) 4,348,599 -------------------- ------------------- ------------------- Net increase (decrease) in net assets............. (4,858,377) 3,352,361 25,990,756 NET ASSETS: Beginning of year................................... 87,234,542 83,882,181 57,891,425 -------------------- ------------------- ------------------- End of year......................................... $ 82,376,165 $ 87,234,542 $ 83,882,181 ==================== =================== =================== MSF MSCI EAFE INDEX INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 ------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 2,500,052 $ 1,944,941 $ 2,211,085 Net realized gains (losses)......................... 707,350 1,139,967 838,301 Change in unrealized gains (losses) on investments.. (3,862,935) (7,881,915) 11,746,223 ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (655,533) (4,797,007) 14,795,609 ------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 6,286,345 6,436,883 6,716,745 Net transfers (including fixed account)............. 1,565,657 6,174,254 128,185 Policy charges...................................... (4,329,144) (4,328,910) (4,441,685) Transfers for policy benefits and terminations...... (4,133,342) (6,727,062) (4,377,881) ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (610,484) 1,555,165 (1,974,636) ------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (1,266,017) (3,241,842) 12,820,973 NET ASSETS: Beginning of year................................... 77,801,016 81,042,858 68,221,885 ------------------- -------------------- -------------------- End of year......................................... $ 76,534,999 $ 77,801,016 $ 81,042,858 =================== ==================== ==================== MSF NEUBERGER BERMAN GENESIS INVESTMENT DIVISION ---------------------------------------------------------------- 2015 2014 2013 ------------------- -------------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 361,906 $ 324,320 $ 655,453 Net realized gains (losses)......................... 1,512,189 1,496,496 614,602 Change in unrealized gains (losses) on investments.. (1,230,308) (2,029,896) 30,722,824 ------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations................................ 643,787 (209,080) 31,992,879 ------------------- -------------------- ------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 7,267,381 7,662,015 8,008,218 Net transfers (including fixed account)............. (927,026) (396,548) 3,343,892 Policy charges...................................... (5,942,383) (6,031,755) (6,107,509) Transfers for policy benefits and terminations...... (6,568,694) (7,231,509) (6,615,611) ------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (6,170,722) (5,997,797) (1,371,010) ------------------- -------------------- ------------------- Net increase (decrease) in net assets............. (5,526,935) (6,206,877) 30,621,869 NET ASSETS: Beginning of year................................... 106,824,598 113,031,475 82,409,606 ------------------- -------------------- ------------------- End of year......................................... $ 101,297,663 $ 106,824,598 $ 113,031,475 =================== ==================== ===================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF RUSSELL 2000 INDEX INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 828,476 $ 763,845 $ 935,087 Net realized gains (losses)......................... 6,271,433 3,797,910 1,797,318 Change in unrealized gains (losses) on investments.. (10,053,677) (996,894) 17,937,722 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (2,953,768) 3,564,861 20,670,127 --------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 4,964,713 5,061,087 4,998,071 Net transfers (including fixed account)............. 432,389 570,926 (1,828,111) Policy charges...................................... (3,613,698) (3,622,004) (3,577,463) Transfers for policy benefits and terminations...... (4,335,031) (4,139,758) (3,961,136) --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (2,551,627) (2,129,749) (4,368,639) --------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (5,505,395) 1,435,112 16,301,488 NET ASSETS: Beginning of year................................... 73,667,200 72,232,088 55,930,600 --------------------- -------------------- --------------------- End of year......................................... $ 68,161,805 $ 73,667,200 $ 72,232,088 ===================== ==================== ===================== MSF T. ROWE PRICE LARGE CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 57,337 $ (6,271) $ 121,572 Net realized gains (losses)......................... 17,568,369 7,894,789 2,302,973 Change in unrealized gains (losses) on investments.. (8,845,976) (880,615) 19,823,349 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 8,779,730 7,007,903 22,247,894 -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,084,380 5,142,662 4,856,717 Net transfers (including fixed account)............. (3,825) 447,854 12,281,657 Policy charges...................................... (4,639,514) (4,447,459) (3,980,799) Transfers for policy benefits and terminations...... (4,665,654) (5,183,233) (4,480,626) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (4,224,613) (4,040,176) 8,676,949 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 4,555,117 2,967,727 30,924,843 NET ASSETS: Beginning of year................................... 83,295,035 80,327,308 49,402,465 -------------------- -------------------- -------------------- End of year......................................... $ 87,850,152 $ 83,295,035 $ 80,327,308 ==================== ==================== ==================== MSF T. ROWE PRICE SMALL CAP GROWTH INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ (248,946) $ (370,603) $ 16,840 Net realized gains (losses)......................... 12,918,905 17,881,602 9,434,117 Change in unrealized gains (losses) on investments.. (9,935,901) (10,294,099) 30,236,593 --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 2,734,058 7,216,900 39,687,550 --------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 6,600,673 6,500,697 6,334,314 Net transfers (including fixed account)............. 926,025 (16,314,954) (2,078,011) Policy charges...................................... (5,239,072) (5,322,474) (5,566,115) Transfers for policy benefits and terminations...... (7,416,481) (7,648,701) (6,511,897) --------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (5,128,855) (22,785,432) (7,821,709) --------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (2,394,797) (15,568,532) 31,865,841 NET ASSETS: Beginning of year................................... 109,708,317 125,276,849 93,411,008 --------------------- -------------------- --------------------- End of year......................................... $ 107,313,520 $ 109,708,317 $ 125,276,849 ===================== ==================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF VAN ECK GLOBAL NATURAL RESOURCES INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 974 $ 983 $ 669 Net realized gains (losses)......................... (9,795) (436) (55) Change in unrealized gains (losses) on investments.. (64,308) (44,636) 14,171 -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (73,129) (44,089) 14,785 -------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 58,025 82,106 55,907 Net transfers (including fixed account)............. 33,612 (14,270) 60,548 Policy charges...................................... (16,064) (17,934) (13,231) Transfers for policy benefits and terminations...... (4,972) -- (1,067) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 70,601 49,902 102,157 -------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (2,528) 5,813 116,942 NET ASSETS: Beginning of year................................... 176,178 170,365 53,423 -------------------- -------------------- --------------------- End of year......................................... $ 173,650 $ 176,178 $ 170,365 ==================== ==================== ===================== MSF WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 --------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,289,587 $ 1,344,118 $ 1,226,086 Net realized gains (losses)......................... 73,628 163,589 194,088 Change in unrealized gains (losses) on investments.. (1,827,670) (168,552) (1,174,913) --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (464,455) 1,339,155 245,261 --------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,048,302 2,069,314 2,229,010 Net transfers (including fixed account)............. 416,380 284,768 1,081,271 Policy charges...................................... (1,498,601) (1,508,520) (1,575,456) Transfers for policy benefits and terminations...... (1,520,683) (1,535,921) (2,069,679) --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (554,602) (690,359) (334,854) --------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (1,019,057) 648,796 (89,593) NET ASSETS: Beginning of year................................... 26,015,238 25,366,442 25,456,035 --------------------- -------------------- -------------------- End of year......................................... $ 24,996,181 $ 26,015,238 $ 25,366,442 ===================== ==================== ==================== MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 357,540 $ 302,649 $ 337,175 Net realized gains (losses)......................... (6,880) (4,464) 3,029 Change in unrealized gains (losses) on investments.. (270,748) 143,123 (476,487) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ 79,912 441,308 (136,283) -------------------- -------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,737,457 1,783,465 1,775,872 Net transfers (including fixed account)............. 3,538 (202,894) 653,302 Policy charges...................................... (1,277,275) (1,276,160) (1,231,455) Transfers for policy benefits and terminations...... (1,069,051) (853,922) (1,189,735) -------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (605,331) (549,511) 7,984 -------------------- -------------------- --------------------- Net increase (decrease) in net assets............. (525,419) (108,203) (128,299) NET ASSETS: Beginning of year................................... 16,386,046 16,494,249 16,622,548 -------------------- -------------------- --------------------- End of year......................................... $ 15,860,627 $ 16,386,046 $ 16,494,249 ==================== ==================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
MSF WMC BALANCED INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 -------------------- ------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 4,411,640 $ 4,452,005 $ 5,446,288 Net realized gains (losses)......................... 55,909,979 5,320,748 2,747,913 Change in unrealized gains (losses) on investments.. (53,963,621) 19,346,415 43,444,585 -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 6,357,998 29,119,168 51,638,786 -------------------- ------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 22,226,199 23,111,609 24,527,235 Net transfers (including fixed account)............. (1,114,111) (2,156,943) (283,654) Policy charges...................................... (22,125,724) (22,284,172) (22,861,275) Transfers for policy benefits and terminations...... (17,838,451) (18,266,637) (17,190,722) -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (18,852,087) (19,596,143) (15,808,416) -------------------- ------------------- -------------------- Net increase (decrease) in net assets............. (12,494,089) 9,523,025 35,830,370 NET ASSETS: Beginning of year................................... 312,335,178 302,812,153 266,981,783 -------------------- ------------------- -------------------- End of year......................................... $ 299,841,089 $ 312,335,178 $ 302,812,153 ==================== =================== ==================== MSF WMC CORE EQUITY OPPORTUNITIES INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 ------------------- ------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,263,131 $ 451,613 $ 855,040 Net realized gains (losses)......................... 26,124,464 7,756,545 2,782,148 Change in unrealized gains (losses) on investments.. (25,717,218) (869,547) 15,346,828 ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 1,670,377 7,338,611 18,984,016 ------------------- ------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 5,175,987 5,479,853 5,941,838 Net transfers (including fixed account)............. (1,253,819) (1,548,334) (2,306,865) Policy charges...................................... (3,976,712) (3,989,630) (3,965,087) Transfers for policy benefits and terminations...... (4,646,062) (4,457,258) (4,143,551) ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (4,700,606) (4,515,369) (4,473,665) ------------------- ------------------- -------------------- Net increase (decrease) in net assets............. (3,030,229) 2,823,242 14,510,351 NET ASSETS: Beginning of year................................... 75,552,945 72,729,703 58,219,352 ------------------- ------------------- -------------------- End of year......................................... $ 72,522,716 $ 75,552,945 $ 72,729,703 =================== =================== ==================== OPPENHEIMER VA MAIN STREET SMALL CAP INVESTMENT DIVISION ------------------------------------------- 2015 2014 (g) -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 40 $ -- Net realized gains (losses)......................... 625 -- Change in unrealized gains (losses) on investments.. (894) 198 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (229) 198 -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 995 950 Net transfers (including fixed account)............. 4,936 4,034 Policy charges...................................... (926) (91) Transfers for policy benefits and terminations...... -- (39) -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 5,005 4,854 -------------------- -------------------- Net increase (decrease) in net assets............. 4,776 5,052 NET ASSETS: Beginning of year................................... 5,052 -- -------------------- -------------------- End of year......................................... $ 9,828 $ 5,052 ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013
PIMCO VIT ALL ASSET INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 ------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 17,942 $ 49,509 $ 21,748 Net realized gains (losses)......................... (111,468) 28 (591) Change in unrealized gains (losses) on investments.. 38,369 (44,010) (24,638) ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (55,157) 5,527 (3,481) ------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 4,611 9,596 -- Net transfers (including fixed account)............. (723,721) (9,803) 897,967 Policy charges...................................... (18,374) (20,445) (7,144) Transfers for policy benefits and terminations...... -- (6,773) (94,966) ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (737,484) (27,425) 795,857 ------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (792,641) (21,898) 792,376 NET ASSETS: Beginning of year................................... 902,397 924,295 131,919 ------------------- -------------------- -------------------- End of year......................................... $ 109,756 $ 902,397 $ 924,295 =================== ==================== ==================== PIMCO VIT COMMODITYREALRETURN STRATEGY INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 (d) ------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 1,467 $ 86 $ -- Net realized gains (losses)......................... (11,415) (39) (5) Change in unrealized gains (losses) on investments.. 3,408 (10,088) (126) ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (6,540) (10,041) (131) ------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 2,720 2,721 -- Net transfers (including fixed account)............. (19,227) 38,376 6,189 Policy charges...................................... (1,972) (1,596) (275) Transfers for policy benefits and terminations...... -- (13) -- ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (18,479) 39,488 5,914 ------------------- -------------------- -------------------- Net increase (decrease) in net assets............. (25,019) 29,447 5,783 NET ASSETS: Beginning of year................................... 35,230 5,783 -- ------------------- -------------------- -------------------- End of year......................................... $ 10,211 $ 35,230 $ 5,783 =================== ==================== ==================== PIMCO VIT LOW DURATION INVESTMENT DIVISION ----------------------------------------------------------------- 2015 2014 2013 -------------------- ------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 29,643 $ 17,764 $ 22,872 Net realized gains (losses)......................... 12,574 512 3,304 Change in unrealized gains (losses) on investments.. (33,266) (4,896) (33,450) -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ 8,951 13,380 (7,274) -------------------- ------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,329 3,323 2,809 Net transfers (including fixed account)............. (723,808) -- 888,377 Policy charges...................................... (16,831) (24,792) (36,664) Transfers for policy benefits and terminations...... (4) (6,920) (262,466) -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (739,314) (28,389) 592,056 -------------------- ------------------- -------------------- Net increase (decrease) in net assets............. (730,363) (15,009) 584,782 NET ASSETS: Beginning of year................................... 1,555,287 1,570,296 985,514 -------------------- ------------------- -------------------- End of year......................................... $ 824,924 $ 1,555,287 $ 1,570,296 ==================== =================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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 -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
PIONEER VCT MID CAP VALUE INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 412 $ 452 $ 425 Net realized gains (losses)......................... 10,473 7,922 29,038 Change in unrealized gains (losses) on investments.. (13,938) 732 (1,134) -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (3,053) 9,106 28,329 -------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ -- -- -- Net transfers (including fixed account)............. (418) 14,941 (126,970) Policy charges...................................... (4,119) (3,653) (4,969) Transfers for policy benefits and terminations...... (16,227) (72) -- -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (20,764) 11,216 (131,939) -------------------- --------------------- --------------------- Net increase (decrease) in net assets............. (23,817) 20,322 (103,610) NET ASSETS: Beginning of year................................... 70,257 49,935 153,545 -------------------- --------------------- --------------------- End of year......................................... $ 46,440 $ 70,257 $ 49,935 ==================== ===================== ===================== PUTNAM VT INTERNATIONAL VALUE INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 (b) -------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 91 $ 95 $ -- Net realized gains (losses)......................... (22) 46 10 Change in unrealized gains (losses) on investments.. (118) (775) 477 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (49) (634) 487 -------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 1,288 1,288 -- Net transfers (including fixed account)............. -- 32 6,234 Policy charges...................................... (1,363) (1,293) (293) Transfers for policy benefits and terminations...... (1) (1) -- -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... (76) 26 5,941 -------------------- --------------------- -------------------- Net increase (decrease) in net assets............. (125) (608) 6,428 NET ASSETS: Beginning of year................................... 5,820 6,428 -- -------------------- --------------------- -------------------- End of year......................................... $ 5,695 $ 5,820 $ 6,428 ==================== ===================== ==================== ROYCE MICRO-CAP INVESTMENT DIVISION -------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ -- $ -- $ 38 Net realized gains (losses)......................... 499 670 87,715 Change in unrealized gains (losses) on investments.. (1,557) (951) (23,953) -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations................................ (1,058) (281) 63,800 -------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 939 939 1,884 Net transfers (including fixed account)............. -- 1 (423,639) Policy charges...................................... (78) (80) (6,293) Transfers for policy benefits and terminations...... -- -- (1) -------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 861 860 (428,049) -------------------- --------------------- --------------------- Net increase (decrease) in net assets............. (197) 579 (364,249) NET ASSETS: Beginning of year................................... 8,336 7,757 372,006 -------------------- --------------------- --------------------- End of year......................................... $ 8,139 $ 8,336 $ 7,757 ==================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (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 STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
ROYCE SMALL-CAP INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 443 $ 64 $ 6,679 Net realized gains (losses)......................... 12,813 111,348 68,918 Change in unrealized gains (losses) on investments.. (19,154) (144,191) 110,499 -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (5,898) (32,779) 186,096 -------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 278 -- -- Net transfers (including fixed account)............. 12,275 (595,217) (28,963) Policy charges...................................... (4,053) (9,562) (10,076) Transfers for policy benefits and terminations...... -- -- -- -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 8,500 (604,779) (39,039) -------------------- --------------------- -------------------- Net increase (decrease) in net assets............. 2,602 (637,558) 147,057 NET ASSETS: Beginning of year................................... 51,371 688,929 541,872 -------------------- --------------------- -------------------- End of year......................................... $ 53,973 $ 51,371 $ 688,929 ==================== ===================== ==================== UIF EMERGING MARKETS DEBT INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- --------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 45,047 $ 66,166 $ 51,315 Net realized gains (losses)......................... (12,799) (17,138) 10,886 Change in unrealized gains (losses) on investments.. (46,377) 6,462 (181,259) -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (14,129) 55,490 (119,058) -------------------- --------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 3,052 3,052 64,400 Net transfers (including fixed account)............. 149,611 (402,394) 136,192 Policy charges...................................... (14,377) (17,192) (20,164) Transfers for policy benefits and terminations...... (781) (6,416) (83,949) -------------------- --------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 137,505 (422,950) 96,479 -------------------- --------------------- -------------------- Net increase (decrease) in net assets............. 123,376 (367,460) (22,579) NET ASSETS: Beginning of year................................... 792,559 1,160,019 1,182,598 -------------------- --------------------- -------------------- End of year......................................... $ 915,935 $ 792,559 $ 1,160,019 ==================== ===================== ==================== UIF EMERGING MARKETS EQUITY INVESTMENT DIVISION ------------------------------------------------------------------- 2015 2014 2013 -------------------- -------------------- -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)........................ $ 18,406 $ 4,726 $ 14,065 Net realized gains (losses)......................... (24,296) 14,990 6,766 Change in unrealized gains (losses) on investments.. (266,747) (166,226) (38,224) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations................................ (272,637) (146,510) (17,393) -------------------- -------------------- -------------------- POLICY TRANSACTIONS: Premium payments received from policy owners........ 4,305 4,305 58,675 Net transfers (including fixed account)............. 408,440 1,057,866 283,169 Policy charges...................................... (36,287) (26,285) (21,217) Transfers for policy benefits and terminations...... (301) (3,783) (100,720) -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from policy transactions....................... 376,157 1,032,103 219,907 -------------------- -------------------- -------------------- Net increase (decrease) in net assets............. 103,520 885,593 202,514 NET ASSETS: Beginning of year................................... 2,122,051 1,236,458 1,033,944 -------------------- -------------------- -------------------- End of year......................................... $ 2,225,571 $ 2,122,051 $ 1,236,458 ==================== ==================== ====================
(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) Commenced April 28, 2014 and began transactions in 2015. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 178 The accompanying notes are an integral part of these financial statements. 179 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONCLUDED) FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
WELLS FARGO VT TOTAL RETURN BOND INVESTMENT DIVISION --------------------------------------------------------------------- 2015 2014 2013 --------------------- --------------------- --------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)............................. $ 10,591 $ 5,207 $ 4,298 Net realized gains (losses).............................. (13,631) (1,528) 10,856 Change in unrealized gains (losses) on investments....... (2,133) 12,966 (21,523) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from operations..................................... (5,173) 16,645 (6,369) --------------------- --------------------- --------------------- POLICY TRANSACTIONS: Premium payments received from policy owners............. 22,439 17,657 30,618 Net transfers (including fixed account).................. (769,510) 741,576 (5,806) Policy charges........................................... (23,196) (12,748) (12,342) Transfers for policy benefits and terminations........... -- (5,916) (237,322) --------------------- --------------------- --------------------- Net increase (decrease) in net assets resulting from policy transactions............................ (770,267) 740,569 (224,852) --------------------- --------------------- --------------------- Net increase (decrease) in net assets.................. (775,440) 757,214 (231,221) NET ASSETS: Beginning of year........................................ 1,015,053 257,839 489,060 --------------------- --------------------- --------------------- End of year.............................................. $ 239,613 $ 1,015,053 $ 257,839 ===================== ===================== =====================
(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) Commenced April 28, 2014 and began transactions in 2015. (g) Commenced April 28, 2008 and began transactions in 2014. The accompanying notes are an integral part of these financial statements. 180 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. On January 12, 2016, MetLife, Inc. announced a plan to pursue the separation of a portion of its U.S. retail business. MetLife, Inc. is currently evaluating structural alternatives for such a separation, including a public offering of shares in an independent, publicly traded company, a spin-off, or a sale. The completion of a public offering would depend on, among other things, the U.S. Securities and Exchange Commission (the "SEC") filing and review process as well as market conditions. Any Separation that might occur will be subject to the satisfaction of various conditions and approvals, including approval of any transaction by the MetLife, Inc. Board of Directors, satisfaction of any applicable requirements of the SEC, and receipt of insurance and other regulatory approvals and other anticipated conditions. 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: AB Variable Products Series Fund, Inc. ("AB") Met Investors Series Trust ("MIST")* AIM Variable Insurance Funds (Invesco Variable Metropolitan Series Fund ("MSF")* Insurance Funds) ("Invesco V.I.") MFS Variable Insurance Trust ("MFS VIT") American Century Variable Portfolios, Inc. ("American MFS Variable Insurance Trust II ("MFS VIT II") Century VP") Oppenheimer Variable Account Funds American Funds Insurance Series ("American Funds") ("Oppenheimer VA") Dreyfus Variable Investment Fund ("Dreyfus VIF") PIMCO Variable Insurance Trust ("PIMCO VIT") Fidelity Variable Insurance Products ("Fidelity VIP") Pioneer Variable Contracts Trust ("Pioneer VCT") Franklin Templeton Variable Insurance Products Trust Putnam Variable Trust ("Putnam VT") ("FTVIPT") Royce Capital Fund ("Royce") Goldman Sachs Variable Insurance Trust Trust for Advised Portfolios ("TAP") ("Goldman Sachs") The Universal Institutional Funds, Inc. ("UIF") Janus Aspen Series ("Janus Aspen") Wells Fargo Variable Trust ("Wells Fargo VT")
*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. 181 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 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, 2015: AB Global Thematic Growth Investment Division MFS VIT New Discovery Investment Division AB Intermediate Bond Investment Division MFS VIT Value Investment Division American Century VP Capital Appreciation Investment MFS VIT II High Yield Investment Division Division MIST AB Global Dynamic Allocation Investment American Funds Bond Investment Division Division American Funds Global Small Capitalization MIST Allianz Global Investors Dynamic Multi-Asset Investment Division Plus Investment Division American Funds Growth Investment Division MIST American Funds Balanced Allocation American Funds Growth-Income Investment Division Investment Division American Funds International Investment Division MIST American Funds Growth Allocation Investment American Funds U.S. Government/AAA-Rated Division Securities Investment Division MIST American Funds Moderate Allocation Dreyfus VIF International Value Investment Division Investment Division Fidelity VIP Asset Manager: Growth Investment MIST AQR Global Risk Balanced Investment Division Division MIST BlackRock Global Tactical Strategies Investment Fidelity VIP Contrafund Investment Division Division Fidelity VIP Equity-Income Investment Division MIST Clarion Global Real Estate Investment Division Fidelity VIP Freedom 2010 Investment Division MIST ClearBridge Aggressive Growth Investment Fidelity VIP Freedom 2020 Investment Division Division Fidelity VIP Freedom 2025 Investment Division MIST Harris Oakmark International Investment Fidelity VIP Freedom 2030 Investment Division Division Fidelity VIP Freedom 2040 Investment Division MIST Invesco Balanced-Risk Allocation Investment Fidelity VIP Freedom 2050 Investment Division Division Fidelity VIP High Income Investment Division MIST Invesco Mid Cap Value Investment Division Fidelity VIP Investment Grade Bond Investment MIST Invesco Small Cap Growth Investment Division Division (a) Fidelity VIP Mid Cap Investment Division MIST JPMorgan Global Active Allocation Investment FTVIPT Franklin Income VIP Investment Division Division FTVIPT Franklin Mutual Global Discovery VIP MIST JPMorgan Small Cap Value Investment Division Investment Division MIST Loomis Sayles Global Markets Investment FTVIPT Franklin Mutual Shares VIP Investment Division Division MIST Lord Abbett Bond Debenture Investment FTVIPT Templeton Foreign VIP Investment Division Division FTVIPT Templeton Global Bond VIP Investment MIST Met/Templeton International Bond Investment Division Division Goldman Sachs Mid-Cap Value Investment Division MIST MetLife Asset Allocation 100 Investment Goldman Sachs Small Cap Equity Insights Investment Division (a) Division MIST MetLife Balanced Plus Investment Division Invesco V.I. Comstock Investment Division MIST MetLife Multi-Index Targeted Risk Investment Invesco V.I. International Growth Investment Division Division Janus Aspen Balanced Investment Division MIST MetLife Small Cap Value Investment Division Janus Aspen Forty Investment Division MIST MFS Emerging Markets Equity Investment Janus Aspen Janus Investment Division Division (a) Janus Aspen Overseas Investment Division MIST MFS Research International Investment MFS VIT Global Equity Investment Division Division (a)
182 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 2. LIST OF INVESTMENT DIVISIONS -- (CONCLUDED) MIST Morgan Stanley Mid Cap Growth Investment MSF MetLife Asset Allocation 40 Investment Division (a) Division MSF MetLife Asset Allocation 60 Investment Division (a) MIST Oppenheimer Global Equity Investment Division MSF MetLife Asset Allocation 80 Investment Division (a) MIST PanAgora Global Diversified Risk Investment MSF MetLife Mid Cap Stock Index Investment Division Division (b) MSF MetLife Stock Index Investment Division MIST PIMCO Inflation Protected Bond Investment MSF MFS Total Return Investment Division (a) Division MSF MFS Value Investment Division MIST PIMCO Total Return Investment Division MSF MSCI EAFE Index Investment Division MIST Pioneer Fund Investment Division MSF Neuberger Berman Genesis Investment Division MIST Pyramis Managed Risk Investment Division MSF Russell 2000 Index Investment Division MIST Schroders Global Multi-Asset Investment Division MSF T. Rowe Price Large Cap Growth Investment MIST SSGA Growth and Income ETF Investment Division Division MSF T. Rowe Price Small Cap Growth Investment MIST SSGA Growth ETF Investment Division Division MIST T. Rowe Price Large Cap Value Investment MSF Van Eck Global Natural Resources Investment Division Division MIST T. Rowe Price Mid Cap Growth Investment MSF Western Asset Management Strategic Bond Division (a) Opportunities Investment Division MIST WMC Large Cap Research Investment Division MSF Western Asset Management U.S. Government MSF Baillie Gifford International Stock Investment Investment Division Division MSF WMC Balanced Investment Division MSF Barclays Aggregate Bond Index Investment MSF WMC Core Equity Opportunities Investment Division Division MSF BlackRock Bond Income Investment Division Oppenheimer VA Main Street Small Cap Investment MSF BlackRock Capital Appreciation Investment Division Division PIMCO VIT All Asset Investment Division MSF BlackRock Large Cap Value Investment Division PIMCO VIT CommodityRealReturn Strategy MSF BlackRock Money Market Investment Division Investment Division MSF Frontier Mid Cap Growth Investment Division PIMCO VIT Low Duration Investment Division MSF Jennison Growth Investment Division Pioneer VCT Mid Cap Value Investment Division MSF Loomis Sayles Small Cap Core Investment Putnam VT International Value Investment Division Division Royce Micro-Cap Investment Division MSF Loomis Sayles Small Cap Growth Investment Royce Small-Cap Investment Division Division UIF Emerging Markets Debt Investment Division MSF Met/Artisan Mid Cap Value Investment Division (a) UIF Emerging Markets Equity Investment Division MSF MetLife Asset Allocation 20 Investment Division (a) Wells Fargo VT Total Return Bond Investment 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, 2015. B. The following Investment Divisions had no net assets as of December 31, 2015: AB International Value Investment Division Janus Aspen Enterprise Investment 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 Invesco V.I. Government Securities Investment Division Investment Division
183 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 3. PORTFOLIO CHANGES The operations of the Investment Divisions were affected by the following changes that occurred during the year ended December 31, 2015: NAME CHANGES: Former Name New Name (MIST) AllianceBernstein Global Dynamic Allocation (MIST) AB Global Dynamic Allocation Portfolio Portfolio (MIST) SSgA Growth and Income ETF Portfolio (MIST) SSGA Growth and Income ETF Portfolio (MIST) SSgA Growth ETF Portfolio (MIST) SSGA Growth ETF Portfolio
TRUST NAME CHANGE: Former Trust New Trust AllianceBernstein Variable Products Series Fund, Inc. AB Variable Products Series Fund, Inc.
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. 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. 184 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 4. SIGNIFICANT ACCOUNTING POLICIES -- (CONCLUDED) SECURITY VALUATION -- (CONCLUDED) Each Investment Division invests in shares of open-end mutual funds which calculate a daily NAV based on the fair value of the underlying securities in their portfolios. As a result, and as required by law, shares of open-end mutual funds are purchased and redeemed at their quoted daily NAV as reported by the Trusts at the close of each business day. On that basis, the inputs used to value all shares held by the Separate Account, which are measured at fair value on a recurring basis, are classified as Level 2. There were no transfers between Level 1 and Level 2, and no activity in Level 3 during the year. FEDERAL INCOME TAXES The operations of the Separate Account form a part of the total operations of the Company and are not taxed separately. The Company is taxed as a life insurance company under the provisions of the Internal Revenue Code ("IRC"). Under the current provisions of the IRC, the Company does not expect to incur federal income taxes on the earnings of the Separate Account to the extent the earnings are credited under the Policies. Accordingly, no charge is currently being made to the Separate Account for federal income taxes. The Company will periodically review the status of this policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the Policies. PREMIUM PAYMENTS The Company deducts a sales charge 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, 2015: ------------------------------------------------------------------------------------------------------------------------- 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. 185 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 mortality and expense risk charge ranging from 0.05% 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 a face amount equal to or greater than $250,000. 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. 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 $100 of the benefit provided. The above referenced charges are paid to the Company and are recorded as policy charges in the accompanying statements of changes in net assets of the applicable Investment Divisions for the years ended December 31, 2015, 2014 and 2013. The MIST and MSF Trusts currently offer shares of their portfolios only to separate accounts established by the Company and other affiliated life insurance companies, and are managed by MetLife Advisers, LLC ("MetLife Advisers"), an affiliate of the Company. MetLife Advisers is also the investment adviser to the portfolios of the MIST and MSF Trusts. 186 METROPOLITAN LIFE SEPARATE ACCOUNT UL OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS
AS OF DECEMBER 31 ----------------------- SHARES COST ($) ---------- ----------- 2015 2015 ---------- ----------- AB Global Thematic Growth Investment Division..... 1,833 35,130 AB Intermediate Bond Investment Division..... 5,751 67,889 American Century VP Capital Appreciation Investment Division..... 6 79 American Funds Bond Investment Division..... 586,779 6,362,523 American Funds Global Small Capitalization Investment Division..... 2,811,533 59,139,365 American Funds Growth Investment Division..... 2,433,293 137,703,161 American Funds Growth-Income Investment Division..... 2,257,082 85,365,726 American Funds International Investment Division................ 23,036 428,602 American Funds U.S. Government/AAA-Rated Securities Investment Division................ 4,126 51,244 Dreyfus VIF International Value Investment Division................ 21,101 265,183 Fidelity VIP Asset Manager: Growth Investment Division................ 99,573 1,426,100 Fidelity VIP Contrafund Investment Division..... 82,137 2,205,938 Fidelity VIP Equity-Income Investment Division..... 630 13,737 Fidelity VIP Freedom 2010 Investment Division..... 1,582 19,490 Fidelity VIP Freedom 2020 Investment Division..... 42,494 383,844 Fidelity VIP Freedom 2025 Investment Division..... 33,754 442,278 Fidelity VIP Freedom 2030 Investment Division..... 9,454 123,408 Fidelity VIP Freedom 2040 Investment Division..... 4,905 92,724 Fidelity VIP Freedom 2050 Investment Division..... 3,129 53,207 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------------------------------------------------------- COST OF PROCEEDS PURCHASES ($) FROM SALES ($) ---------------------------------------- ------------------------------------------- 2015 2014 2013 2015 2014 2013 ---------- ------------- ------------ ----------- -------------- -------------- AB Global Thematic Growth Investment Division..... 1,345 17,021 7,870 39,364 11,424 16,644 AB Intermediate Bond Investment Division..... 7,452 3,407 6,655 2,460 2,264 47,232 American Century VP Capital Appreciation Investment Division..... 23 589(a) -- 368 211(a) -- American Funds Bond Investment Division..... 1,545,785 879,839 1,038,371 1,108,315 670,493 587,559 American Funds Global Small Capitalization Investment Division..... 7,946,645 2,323,592 2,195,162 6,304,457 4,957,120 5,135,958 American Funds Growth Investment Division..... 37,422,273 11,457,537 3,805,307 13,129,504 11,167,958 11,132,333 American Funds Growth-Income Investment Division..... 18,327,316 7,783,956 3,196,534 7,549,944 7,114,338 6,413,846 American Funds International Investment Division................ 68,037 49,085 273,741 282,880 24,982 231,378 American Funds U.S. Government/AAA-Rated Securities Investment Division................ 3,712 1,772 6,097 1,568 1,495 1,780 Dreyfus VIF International Value Investment Division................ 4,421 3,201 4,196 2,288 2,373 5,015 Fidelity VIP Asset Manager: Growth Investment Division................ 265,538 181,483 141,995 464,095 117,715 548,689 Fidelity VIP Contrafund Investment Division..... 557,464 226,935 410,978 430,569 199,157 755,794 Fidelity VIP Equity-Income Investment Division..... 5,037 2,954 17,769 14,338 11,967 51,901 Fidelity VIP Freedom 2010 Investment Division..... 71,664 21,634 3,749 100,698 20,447 1,304 Fidelity VIP Freedom 2020 Investment Division..... 55,480 165,843 145,138 500,336 171,907 36,374 Fidelity VIP Freedom 2025 Investment Division..... 418,024 1,384 39,398(b) 9,867 4,514 2,977(b) Fidelity VIP Freedom 2030 Investment Division..... 90,730 140,205 30,075 48,668 122,464 19,207 Fidelity VIP Freedom 2040 Investment Division..... 80,078 93,959 11,359(c) 41,278 52,334 76(c) Fidelity VIP Freedom 2050 Investment Division..... 56,548 60,842 518 29,989 57,314 489
(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) Commenced April 28, 2014 and began transactions in 2015. (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 ($) ---------- ------------ 2015 2015 ---------- ------------ Fidelity VIP High Income Investment Division..... 41,564 237,947 Fidelity VIP Investment Grade Bond Investment Division................ 100,028 1,286,509 Fidelity VIP Mid Cap Investment Division..... 8,789 264,376 FTVIPT Franklin Income VIP Investment Division................ 2,735 42,348 FTVIPT Franklin Mutual Global Discovery VIP Investment Division..... 24,759 502,830 FTVIPT Franklin Mutual Shares VIP Investment Division................ 3,714 77,895 FTVIPT Templeton Foreign VIP Investment Division................ 397,091 5,906,415 FTVIPT Templeton Global Bond VIP Investment Division................ 34,227 625,661 Goldman Sachs Mid-Cap Value Investment Division................ 17,555 277,754 Goldman Sachs Small Cap Equity Insights Investment Division..... 2,913 36,482 Invesco V.I. Comstock Investment Division..... 19,227 241,715 Invesco V.I. International Growth Investment Division................ 9,848 316,330 Janus Aspen Balanced Investment Division..... 34,833 999,422 Janus Aspen Forty Investment Division..... 17,234 591,164 Janus Aspen Janus Investment Division..... 15,229 352,412 Janus Aspen Overseas Investment Division..... 1,294 56,055 MFS VIT Global Equity Investment Division..... 9,979 150,822 MFS VIT New Discovery Investment Division..... 13,587 198,459 MFS VIT Value Investment Division................ 1,096 14,625 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------------------------------------------------- COST OF PROCEEDS PURCHASES ($) FROM SALES ($) --------------------------------------- -------------------------------------- 2015 2014 2013 2015 2014 2013 ---------- --------- ------------ -------- -------- ------------ Fidelity VIP High Income Investment Division..... 66,394 21,533 9,749 11,400 9,295 6,850 Fidelity VIP Investment Grade Bond Investment Division................ 84,404 492,396 1,222,120 76,817 996,618 1,702,641 Fidelity VIP Mid Cap Investment Division..... 67,101 20,809 36,720 6,163 24,409 710,324 FTVIPT Franklin Income VIP Investment Division................ 21,745 30,058 1,158(d) 5,475 4,384 551(d) FTVIPT Franklin Mutual Global Discovery VIP Investment Division..... 86,232 87,301 138,324 36,427 79,798 553,153 FTVIPT Franklin Mutual Shares VIP Investment Division................ 41,137 19,716 23,740(d) 2,521 2,934 1,637(d) FTVIPT Templeton Foreign VIP Investment Division................ 1,005,831 2,395,132 488,568 309,654 901,189 808,327 FTVIPT Templeton Global Bond VIP Investment Division................ 421,942 94,840 996,332 965,007 136,586 115,913 Goldman Sachs Mid-Cap Value Investment Division................ 21,240 54,571 60,380 19,881 35,646 75,921 Goldman Sachs Small Cap Equity Insights Investment Division..... 5,606 7,642 14,789 3,707 9,176 4,535 Invesco V.I. Comstock Investment Division..... 28,117 14,379 4,245 10,378 7,046 5,974 Invesco V.I. International Growth Investment Division................ 20,431 23,557 347,644 29,885 66,518 6,733,613 Janus Aspen Balanced Investment Division..... 115,942 131,441 103,316 52,044 82,517 330,801 Janus Aspen Forty Investment Division..... 129,875 266,429 25,891 19,860 400,760 268,869 Janus Aspen Janus Investment Division..... 94,675 42,556 7,622 43,217 23,494 736,912 Janus Aspen Overseas Investment Division..... 6,872 14,546 17,811 12,411 21,028 430,241 MFS VIT Global Equity Investment Division..... 18,861 11,222 15,146 13,725 11,006 3,782 MFS VIT New Discovery Investment Division..... 6,957 45,561 1,726 6,382 6,105 10,583 MFS VIT Value Investment Division................ 1,676 955 274 2,032 1,720 1,372
(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) Commenced April 28, 2014 and began transactions in 2015. (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 ($) ---------- ------------ 2015 2015 ---------- ------------ MFS VIT II High Yield Investment Division..... 25,197 153,220 MIST AB Global Dynamic Allocation Investment Division................ 5,507 62,686 MIST Allianz Global Investors Dynamic Multi-Asset Plus Investment Division..... 197 2,092 MIST American Funds Balanced Allocation Investment Division..... 88,784 881,108 MIST American Funds Growth Allocation Investment Division..... 160,722 1,548,727 MIST American Funds Moderate Allocation Investment Division..... 97,643 997,062 MIST AQR Global Risk Balanced Investment Division................ 16,087 170,107 MIST BlackRock Global Tactical Strategies Investment Division..... 21,990 237,991 MIST Clarion Global Real Estate Investment Division................ 2,506,332 29,693,578 MIST ClearBridge Aggressive Growth Investment Division..... 2,804,364 32,191,803 MIST Harris Oakmark International Investment Division................ 2,864,395 42,138,016 MIST Invesco Balanced-Risk Allocation Investment Division..... 4,191 42,929 MIST Invesco Mid Cap Value Investment Division................ 4,708,770 82,419,111 MIST Invesco Small Cap Growth Investment Division................ 439,557 6,791,641 MIST JPMorgan Global Active Allocation Investment Division..... 16,768 189,776 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------------------------------------------------------- COST OF PROCEEDS PURCHASES ($) FROM SALES ($) ------------------------------------------- ---------------------------------------- 2015 2014 2013 2015 2014 2013 --------- -------------- -------------- --------- ------------- ------------ MFS VIT II High Yield Investment Division..... 10,209 8,053 147,796(e) 2,674 9,380 707(e) MIST AB Global Dynamic Allocation Investment Division................ 35,828 17,377 33,068 19,998 3,240 7,386 MIST Allianz Global Investors Dynamic Multi-Asset Plus Investment Division..... 11,135 100(a) -- 8,841 24(a) -- MIST American Funds Balanced Allocation Investment Division..... 147,094 187,720 136,505 64,178 60,112 46,230 MIST American Funds Growth Allocation Investment Division..... 329,483 432,644 596,532 160,757 272,941 241,084 MIST American Funds Moderate Allocation Investment Division..... 262,764 261,530 332,563 253,058 80,567 87,879 MIST AQR Global Risk Balanced Investment Division................ 77,154 57,534 202,173 89,138 35,216 63,799 MIST BlackRock Global Tactical Strategies Investment Division..... 100,309 104,608 72,022 49,822 14,302 13,676 MIST Clarion Global Real Estate Investment Division................ 2,921,699 7,937,396 4,872,884 3,259,973 7,343,310 2,567,939 MIST ClearBridge Aggressive Growth Investment Division..... 3,901,426 22,044,282 2,383,159 6,423,106 3,068,564 1,442,150 MIST Harris Oakmark International Investment Division................ 7,532,177 7,989,660 12,366,501 3,678,669 11,781,678 3,801,502 MIST Invesco Balanced-Risk Allocation Investment Division..... 29,687 10,894 28,473 16,109 4,860 11,354 MIST Invesco Mid Cap Value Investment Division................ 7,116,167 17,257,547 1,498,456 6,104,875 6,663,774 5,791,979 MIST Invesco Small Cap Growth Investment Division................ 2,489,399 1,841,187 1,526,001 1,159,496 1,116,722 1,137,610 MIST JPMorgan Global Active Allocation Investment Division..... 61,002 72,943 133,918 33,585 15,555 47,621
(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) Commenced April 28, 2014 and began transactions in 2015. (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 ------------------------- SHARES COST ($) ----------- ------------ 2015 2015 ----------- ------------ MIST JPMorgan Small Cap Value Investment Division................ 20,492 349,485 MIST Loomis Sayles Global Markets Investment Division................ 21,700 296,777 MIST Lord Abbett Bond Debenture Investment Division................ 2,383,673 29,174,394 MIST Met/Templeton International Bond Investment Division..... 18,424 205,132 MIST MetLife Asset Allocation 100 Investment Division..... 1,622,633 18,359,133 MIST MetLife Balanced Plus Investment Division................ 25,212 280,889 MIST MetLife Multi-Index Targeted Risk Investment Division..... 11,711 139,364 MIST MetLife Small Cap Value Investment Division................ 64,162 916,334 MIST MFS Emerging Markets Equity Investment Division..... 66,399 649,826 MIST MFS Research International Investment Division................ 1,740,735 18,846,041 MIST Morgan Stanley Mid Cap Growth Investment Division..... 13,523,030 139,767,451 MIST Oppenheimer Global Equity Investment Division................ 2,414,507 34,364,101 MIST PanAgora Global Diversified Risk Investment Division..... 1 10 MIST PIMCO Inflation Protected Bond Investment Division..... 1,092,309 11,894,934 MIST PIMCO Total Return Investment Division..... 3,915,216 46,183,374 MIST Pioneer Fund Investment Division..... 13,600 155,792 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------------------------------------------------------ COST OF PROCEEDS PURCHASES ($) FROM SALES ($) ---------------------------------------- ------------------------------------------ 2015 2014 2013 2015 2014 2013 ------------ --------- ------------ -------------- ---------- ------------- MIST JPMorgan Small Cap Value Investment Division................ 86,606 107,150 203,341 18,000 49,885 18,320 MIST Loomis Sayles Global Markets Investment Division................ 28,756 47,648 386,272(d) 129,542 48,429 11,829(d) MIST Lord Abbett Bond Debenture Investment Division................ 5,338,414 5,135,027 3,850,241 2,981,292 4,601,508 3,533,230 MIST Met/Templeton International Bond Investment Division..... 88,215 99,613 105,910 53,943 8,955 22,711 MIST MetLife Asset Allocation 100 Investment Division..... 3,914,059 2,705,529 1,755,615 2,073,396 1,925,555 1,915,678 MIST MetLife Balanced Plus Investment Division................ 137,489 157,666 107,011 83,354 16,033 66,151 MIST MetLife Multi-Index Targeted Risk Investment Division..... 128,550 116,860 10,029(d) 107,270 2,566 7,161(d) MIST MetLife Small Cap Value Investment Division................ 320,730 53,036 63,430 25,332 120,727 233,699 MIST MFS Emerging Markets Equity Investment Division..... 165,039 409,348 203,989 61,034 127,301 16,542 MIST MFS Research International Investment Division................ 1,366,765 1,401,947 4,346,021 1,521,529 1,748,099 1,625,675 MIST Morgan Stanley Mid Cap Growth Investment Division..... 2,463,949 2,474,168 3,506,234 13,176,582 15,801,000 14,826,330 MIST Oppenheimer Global Equity Investment Division................ 5,241,230 3,170,102 2,321,885 4,474,959 4,390,657 3,889,775 MIST PanAgora Global Diversified Risk Investment Division..... 9,129(f) -- -- 8,759(f) -- -- MIST PIMCO Inflation Protected Bond Investment Division..... 1,409,990 1,814,740 2,836,674 1,673,265 1,907,316 3,102,046 MIST PIMCO Total Return Investment Division..... 4,418,576 2,535,003 9,342,752 4,184,544 6,427,172 5,838,413 MIST Pioneer Fund Investment Division..... 21,285 61,661 7,882 50,580 2,073 47,925
(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) Commenced April 28, 2014 and began transactions in 2015. (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 -- (CONTINUED)
AS OF DECEMBER 31 ------------------------ SHARES COST ($) ---------- ------------ 2015 2015 ---------- ------------ MIST Pyramis Managed Risk Investment Division................ 334 3,810 MIST Schroders Global Multi-Asset Investment Division................ 3,342 38,245 MIST SSGA Growth and Income ETF Investment Division................ 669,741 7,760,554 MIST SSGA Growth ETF Investment Division..... 590,257 6,730,607 MIST T. Rowe Price Large Cap Value Investment Division................ 59,535 1,533,669 MIST T. Rowe Price Mid Cap Growth Investment Division................ 2,987,988 29,005,425 MIST WMC Large Cap Research Investment Division................ 28,983,713 319,179,780 MSF Baillie Gifford International Stock Investment Division..... 4,002,225 44,200,073 MSF Barclays Aggregate Bond Index Investment Division................ 11,625,593 127,490,981 MSF BlackRock Bond Income Investment Division................ 738,211 79,334,420 MSF BlackRock Capital Appreciation Investment Division................ 280,159 7,803,137 MSF BlackRock Large Cap Value Investment Division................ 2,187,442 22,209,749 MSF BlackRock Money Market Investment Division................ 246,842 24,684,237 MSF Frontier Mid Cap Growth Investment Division................ 6,766,840 175,517,395 MSF Jennison Growth Investment Division..... 1,587,920 19,643,901 MSF Loomis Sayles Small Cap Core Investment Division..... 92,092 21,045,528 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------------------------------------- COST OF PROCEEDS PURCHASES ($) FROM SALES ($) --------------------------------------- --------------------------------------- 2015 2014 2013 2015 2014 2013 ----------- ---------- ------------- ----------- ----------- ------------- MIST Pyramis Managed Risk Investment Division................ 47,328 1,698 292(d) 45,584 476 --(d) MIST Schroders Global Multi-Asset Investment Division................ 21,659 11,548 20,776 13,208 3,147 5,512 MIST SSGA Growth and Income ETF Investment Division................ 1,604,888 1,761,161 1,997,849 903,258 1,687,133 859,987 MIST SSGA Growth ETF Investment Division..... 1,782,647 1,868,438 1,446,527 847,783 847,985 671,592 MIST T. Rowe Price Large Cap Value Investment Division................ 50,140 147,425 420,793 305,400 28,700 193,933 MIST T. Rowe Price Mid Cap Growth Investment Division................ 9,041,352 5,023,487 3,029,264 3,314,619 2,437,153 2,799,197 MIST WMC Large Cap Research Investment Division................ 35,133,904 8,159,906 6,774,176 28,229,973 28,472,042 26,186,441 MSF Baillie Gifford International Stock Investment Division..... 2,432,046 1,702,428 2,118,267 3,348,491 3,434,170 3,108,949 MSF Barclays Aggregate Bond Index Investment Division................ 12,590,249 17,873,747 20,021,956 13,158,342 11,732,000 8,161,697 MSF BlackRock Bond Income Investment Division................ 7,717,489 5,415,462 8,070,467 8,611,007 6,638,355 6,400,153 MSF BlackRock Capital Appreciation Investment Division................ 2,583,957 690,157 3,327,801 965,221 12,805,858 1,550,635 MSF BlackRock Large Cap Value Investment Division................ 3,367,903 6,262,989 2,342,311 1,904,152 1,834,624 1,620,473 MSF BlackRock Money Market Investment Division................ 5,475,949 18,335,118 8,919,408 10,824,505 12,084,209 8,411,979 MSF Frontier Mid Cap Growth Investment Division................ 32,585,116 21,151,998 8,476,019 16,451,475 17,712,139 22,525,722 MSF Jennison Growth Investment Division..... 5,344,129 3,179,188 913,517 2,703,444 2,763,458 2,926,328 MSF Loomis Sayles Small Cap Core Investment Division..... 3,725,578 3,980,334 2,698,843 2,034,904 1,814,675 2,319,697
(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) Commenced April 28, 2014 and began transactions in 2015. (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) 6. STATEMENTS OF INVESTMENTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------ ------------------------------------------------------------------------- COST OF PROCEEDS SHARES COST ($) PURCHASES ($) FROM SALES ($) ---------- ------------ ----------------------------------- ----------------------------------- 2015 2015 2015 2014 2013 2015 2014 2013 ---------- ------------ ---------- ---------- ---------- ---------- ---------- ---------- MSF Loomis Sayles Small Cap Growth Investment Division..... 855,842 9,721,928 2,397,390 2,282,405 1,502,732 1,247,114 1,779,900 1,369,444 MSF Met/Artisan Mid Cap Value Investment Division................ 250,567 52,884,756 9,241,788 1,388,923 1,897,264 4,195,279 4,484,383 4,831,177 MSF MetLife Asset Allocation 20 Investment Division................ 497,108 5,629,692 823,597 1,528,404 1,016,919 619,628 974,749 1,287,364 MSF MetLife Asset Allocation 40 Investment Division................ 811,513 9,460,318 2,475,186 1,909,288 1,722,153 2,085,619 1,095,441 1,719,216 MSF MetLife Asset Allocation 60 Investment Division................ 4,077,632 45,965,540 6,027,977 7,170,769 5,705,492 4,491,997 4,378,369 6,533,709 MSF MetLife Asset Allocation 80 Investment Division................ 6,696,067 75,937,084 8,947,130 7,388,669 7,738,825 7,178,922 6,440,275 8,434,282 MSF MetLife Mid Cap Stock Index Investment Division................ 4,856,188 65,750,750 10,066,908 8,192,648 13,448,733 7,032,261 18,250,892 7,654,195 MSF MetLife Stock Index Investment Division..... 21,800,820 702,213,756 79,790,746 55,709,939 44,934,052 59,505,671 76,321,598 61,796,495 MSF MFS Total Return Investment Division..... 58,512 8,270,033 1,186,630 862,352 938,490 1,070,466 1,045,972 830,981 MSF MFS Value Investment Division................ 5,458,990 75,838,351 17,539,930 6,999,445 13,685,105 6,622,488 7,007,481 6,070,278 MSF MSCI EAFE Index Investment Division..... 6,304,366 72,261,005 7,716,691 10,695,798 7,260,878 5,827,123 7,195,699 7,024,358 MSF Neuberger Berman Genesis Investment Division................ 5,596,556 81,028,858 1,163,361 2,063,278 7,027,531 6,972,177 7,736,851 7,742,991 MSF Russell 2000 Index Investment Division..... 3,790,979 50,670,772 8,769,748 6,587,826 3,029,528 6,340,553 6,379,754 6,463,070 MSF T. Rowe Price Large Cap Growth Investment Division................ 3,870,051 62,844,624 18,463,477 7,579,276 15,736,961 7,557,701 6,082,255 6,944,037 MSF T. Rowe Price Small Cap Growth Investment Division................ 4,875,688 73,921,068 13,093,685 10,586,051 9,391,866 8,702,468 25,182,622 11,430,616 MSF Van Eck Global Natural Resources Investment Division..... 22,879 272,890 96,754 134,400 114,120 25,178 80,461 11,294 MSF Western Asset Management Strategic Bond Opportunities Investment Division..... 1,994,907 24,998,720 2,670,409 2,618,269 3,018,642 1,935,423 1,964,514 2,127,409
(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) Commenced April 28, 2014 and began transactions in 2015. (g) Commenced April 28, 2008 and began transactions in 2014. 192 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 ($) ----------- ------------ 2015 2015 ----------- ------------ MSF Western Asset Management U.S. Government Investment Division................ 1,332,826 16,111,066 MSF WMC Balanced Investment Division..... 16,068,655 268,885,261 MSF WMC Core Equity Opportunities Investment Division................ 2,556,317 73,795,526 Oppenheimer VA Main Street Small Cap Investment Division..... 461 10,525 PIMCO VIT All Asset Investment Division..... 12,061 132,378 PIMCO VIT CommodityRealReturn Strategy Investment Division................ 1,478 17,017 PIMCO VIT Low Duration Investment Division..... 80,609 844,323 Pioneer VCT Mid Cap Value Investment Division..... 2,460 43,389 Putnam VT International Value Investment Division................ 596 6,112 Royce Micro-Cap Investment Division..... 871 9,102 Royce Small-Cap Investment Division..... 6,402 70,678 UIF Emerging Markets Debt Investment Division..... 122,944 1,046,831 UIF Emerging Markets Equity Investment Division................ 179,626 2,617,203 Wells Fargo VT Total Return Bond Investment Division................ 23,076 241,849 FOR THE YEAR ENDED DECEMBER 31 --------------------------------------------------------------------------------------- COST OF PROCEEDS PURCHASES ($) FROM SALES ($) ------------------------------------------ ------------------------------------------- 2015 2014 2013 2015 2014 2013 ----------- ------------- ------------- ----------- -------------- -------------- MSF Western Asset Management U.S. Government Investment Division................ 1,262,553 1,153,933 1,874,177 1,510,344 1,400,796 1,529,016 MSF WMC Balanced Investment Division..... 60,097,474 7,536,901 9,203,469 22,658,546 22,681,028 19,565,615 MSF WMC Core Equity Opportunities Investment Division................ 28,017,024 7,579,420 3,803,213 6,046,488 5,561,430 6,337,042 Oppenheimer VA Main Street Small Cap Investment Division..... 6,650 4,945(g) -- 939 91(g) -- PIMCO VIT All Asset Investment Division..... 59,535 59,597 919,742 779,077 37,514 102,137 PIMCO VIT CommodityRealReturn Strategy Investment Division................ 4,187 40,783 6,189(d) 21,199 1,248 275(d) PIMCO VIT Low Duration Investment Division..... 30,973 21,087 932,742 740,639 31,701 317,710 Pioneer VCT Mid Cap Value Investment Division..... 6,247 22,259 425 20,763 3,724 131,940 Putnam VT International Value Investment Division................ 1,379 1,415 6,233(b) 1,364 1,293 293(b) Royce Micro-Cap Investment Division..... 1,437 1,597 2,118 78 80 429,932 Royce Small-Cap Investment Division..... 25,745 399,926 226,942 4,053 998,708 224,586 UIF Emerging Markets Debt Investment Division..... 304,283 126,705 271,301 121,731 474,385 107,779 UIF Emerging Markets Equity Investment Division................ 758,349 1,371,355 399,267 363,786 334,525 165,296 Wells Fargo VT Total Return Bond Investment Division................ 1,611,052 802,502 59,791 2,370,728 56,718 270,977
(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) Commenced April 28, 2014 and began transactions in 2015. (g) Commenced April 28, 2008 and began transactions in 2014. 193 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, 2015, 2014 AND 2013:
AB GLOBAL THEMATIC GROWTH INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 11,048 10,121 11,630 Units issued and transferred from other funding options....... 227 2,619 1,489 Units redeemed and transferred to other funding options....... (5,616) (1,692) (2,998) ----------------- ----------------- ----------------- Units end of year........ 5,659 11,048 10,121 ================= ================= ================= AMERICAN CENTURY VP AB INTERMEDIATE BOND CAPITAL APPRECIATION INVESTMENT DIVISION INVESTMENT DIVISION ------------------------------------------------------- ------------------------------------ 2015 2014 2013 2015 2014 (a) ----------------- ----------------- ----------------- ----------------- ----------------- Units beginning of year.. 3,712 3,812 6,675 21 -- Units issued and transferred from other funding options....... 219 44 219 -- 32 Units redeemed and transferred to other funding options....... (152) (144) (3,082) (17) (11) ----------------- ----------------- ----------------- ----------------- ----------------- Units end of year........ 3,779 3,712 3,812 4 21 ================= ================= ================= ================= ================= AMERICAN FUNDS BOND INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 422,554 417,001 397,946 Units issued and transferred from other funding options....... 130,560 99,347 106,636 Units redeemed and transferred to other funding options....... (115,258) (93,794) (87,581) ----------------- ----------------- ----------------- Units end of year........ 437,856 422,554 417,001 ================= ================= =================
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 1,772,715 1,848,240 1,947,587 Units issued and transferred from other funding options....... 211,987 218,125 249,505 Units redeemed and transferred to other funding options....... (300,661) (293,650) (348,852) ----------------- ----------------- ----------------- Units end of year........ 1,684,041 1,772,715 1,848,240 ================= ================= ================= AMERICAN FUNDS GROWTH INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 1,119,856 1,184,798 1,269,410 Units issued and transferred from other funding options....... 101,013 116,712 145,646 Units redeemed and transferred to other funding options....... (175,701) (181,654) (230,258) ----------------- ----------------- ----------------- Units end of year........ 1,045,168 1,119,856 1,184,798 ================= ================= ================= AMERICAN FUNDS GROWTH-INCOME INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 1,243,407 1,315,261 1,382,116 Units issued and transferred from other funding options....... 120,286 131,341 173,179 Units redeemed and transferred to other funding options....... (190,280) (203,195) (240,034) ----------------- ----------------- ----------------- Units end of year........ 1,173,413 1,243,407 1,315,261 ================= ================= ================= AMERICAN FUNDS INTERNATIONAL INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 19,587 19,162 18,773 Units issued and transferred from other funding options....... 842 1,226 7,789 Units redeemed and transferred to other funding options....... (7,942) (801) (7,400) ----------------- ----------------- ----------------- Units end of year........ 12,487 19,587 19,162 ================= ================= =================
AMERICAN FUNDS U.S. GOVERNMENT/AAA-RATED SECURITIES INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ------------------ Units beginning of year.. 2,082 2,093 1,972 Units issued and transferred from other funding options....... 109 54 220 Units redeemed and transferred to other funding options....... (66) (65) (99) ------------------ ----------------- ------------------ Units end of year........ 2,125 2,082 2,093 ================== ================= ================== DREYFUS VIF INTERNATIONAL VALUE INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ------------------ Units beginning of year.. 15,519 15,672 16,013 Units issued and transferred from other funding options....... -- -- 11 Units redeemed and transferred to other funding options....... (156) (153) (352) ------------------ ----------------- ------------------ Units end of year........ 15,363 15,519 15,672 ================== ================= ================== FIDELITY VIP ASSET MANAGER: GROWTH INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ------------------ Units beginning of year.. 135,053 132,058 164,596 Units issued and transferred from other funding options....... 16,970 11,986 11,097 Units redeemed and transferred to other funding options....... (30,924) (8,991) (43,635) ------------------ ----------------- ------------------ Units end of year........ 121,099 135,053 132,058 ================== ================= ================== FIDELITY VIP CONTRAFUND INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ----------------- ------------------ ----------------- Units beginning of year.. 113,831 115,785 147,414 Units issued and transferred from other funding options....... 11,187 6,940 9,977 Units redeemed and transferred to other funding options....... (17,183) (8,894) (41,606) ----------------- ------------------ ----------------- Units end of year........ 107,835 113,831 115,785 ================= ================== =================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013:
FIDELITY VIP EQUITY-INCOME INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ----------------- ------------------ ------------------ Units beginning of year.. 1,259 1,817 4,431 Units issued and transferred from other funding options....... 122 100 860 Units redeemed and transferred to other funding options....... (712) (658) (3,474) ----------------- ------------------ ------------------ Units end of year........ 669 1,259 1,817 ================= ================== ================== FIDELITY VIP FREEDOM 2010 INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ------------------ Units beginning of year.. 3,474 3,488 3,378 Units issued and transferred from other funding options....... 8,348 7,340 118 Units redeemed and transferred to other funding options....... (10,430) (7,354) (8) ------------------ ----------------- ------------------ Units end of year........ 1,392 3,474 3,488 ================== ================= ================== FIDELITY VIP FREEDOM 2020 INVESTMENT DIVISION ---------------------------------------------------------- 2015 2014 2013 ------------------ ------------------ ------------------ Units beginning of year.. 56,045 58,587 51,279 Units issued and transferred from other funding options....... 12,806 25,007 9,018 Units redeemed and transferred to other funding options....... (37,904) (27,549) (1,710) ------------------ ------------------ ------------------ Units end of year........ 30,947 56,045 58,587 ================== ================== ================== FIDELITY VIP FREEDOM 2025 INVESTMENT DIVISION ---------------------------------------------------------- 2015 2014 2013 (b) ------------------ ------------------ ------------------ Units beginning of year.. 1,914 2,149 -- Units issued and transferred from other funding options....... 20,650 -- 2,321 Units redeemed and transferred to other funding options....... (494) (235) (172) ------------------ ------------------ ------------------ Units end of year........ 22,070 1,914 2,149 ================== ================== ==================
FIDELITY VIP FREEDOM 2030 INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ----------------- ------------------ ------------------ Units beginning of year.. 5,911 4,709 3,939 Units issued and transferred from other funding options....... 20,629 23,056 811 Units redeemed and transferred to other funding options....... (17,842) (21,854) (41) ----------------- ------------------ ------------------ Units end of year........ 8,698 5,911 4,709 ================= ================== ================== FIDELITY VIP FREEDOM 2040 INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 (c) ----------------- ----------------- ------------------ Units beginning of year.. 3,374 782 -- Units issued and transferred from other funding options....... 12,698 10,224 784 Units redeemed and transferred to other funding options....... (10,431) (7,632) (2) ----------------- ----------------- ------------------ Units end of year........ 5,641 3,374 782 ================= ================= ================== FIDELITY VIP FREEDOM 2050 INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ----------------- ------------------ ------------------ Units beginning of year.. 1,669 1,444 1,468 Units issued and transferred from other funding options....... 8,271 7,473 1 Units redeemed and transferred to other funding options....... (6,719) (7,248) (25) ----------------- ------------------ ------------------ Units end of year........ 3,221 1,669 1,444 ================= ================== ================== FIDELITY VIP HIGH INCOME INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ----------------- ------------------ ------------------ Units beginning of year.. 8,712 8,598 8,955 Units issued and transferred from other funding options....... 2,652 576 4 Units redeemed and transferred to other funding options....... (563) (462) (361) ----------------- ------------------ ------------------ Units end of year........ 10,801 8,712 8,598 ================= ================== ==================
FIDELITY VIP INVESTMENT GRADE BOND INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ------------------ Units beginning of year.. 76,739 109,725 144,729 Units issued and transferred from other funding options....... 3,210 29,160 74,632 Units redeemed and transferred to other funding options....... (4,702) (62,146) (109,636) ----------------- ----------------- ------------------ Units end of year........ 75,247 76,739 109,725 ================= ================= ================== FIDELITY VIP MID CAP INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 6,260 6,501 26,557 Units issued and transferred from other funding options....... 889 386 46 Units redeemed and transferred to other funding options....... (149) (627) (20,102) ----------------- ----------------- ----------------- Units end of year........ 7,000 6,260 6,501 ================= ================= ================= FTVIPT FRANKLIN INCOME VIP INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 (d) ------------------ ------------------ ----------------- Units beginning of year.. 28 1 -- Units issued and transferred from other funding options....... 25 32 1 Units redeemed and transferred to other funding options....... (6) (5) -- ------------------ ------------------ ----------------- Units end of year........ 47 28 1 ================== ================== ================= FTVIPT FRANKLIN MUTUAL GLOBAL DISCOVERY VIP INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ------------------ Units beginning of year.. 18,185 19,479 40,339 Units issued and transferred from other funding options....... 1,837 1,756 1,707 Units redeemed and transferred to other funding options....... (1,490) (3,050) (22,567) ----------------- ----------------- ------------------ Units end of year........ 18,532 18,185 19,479 ================= ================= ==================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013:
FTVIPT FRANKLIN MUTUAL SHARES VIP INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 (d) ----------------- ----------------- ----------------- Units beginning of year.... 109 67 -- Units issued and transferred from other funding options......... 92 50 72 Units redeemed and transferred to other funding options......... (7) (8) (5) ----------------- ----------------- ----------------- Units end of year.......... 194 109 67 ================= ================= ================= FTVIPT TEMPLETON FOREIGN VIP INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ---------------- ----------------- Units beginning of year.... 276,787 203,220 225,312 Units issued and transferred from other funding options......... 39,852 129,250 22,322 Units redeemed and transferred to other funding options......... (21,358) (55,683) (44,414) ----------------- ---------------- ----------------- Units end of year.......... 295,281 276,787 203,220 ================= ================ ================= FTVIPT TEMPLETON GLOBAL BOND VIP INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ----------------- ---------------- Units beginning of year.... 49,895 54,283 18,556 Units issued and transferred from other funding options......... 14,084 1,227 40,703 Units redeemed and transferred to other funding options......... (40,454) (5,615) (4,976) ----------------- ----------------- ---------------- Units end of year.......... 23,525 49,895 54,283 ================= ================= ================ GOLDMAN SACHS MID-CAP VALUE INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.... 10,570 11,790 15,625 Units issued and transferred from other funding options......... -- 140 -- Units redeemed and transferred to other funding options......... (736) (1,360) (3,835) ----------------- ----------------- ----------------- Units end of year.......... 9,834 10,570 11,790 ================= ================= =================
GOLDMAN SACHS SMALL CAP EQUITY INSIGHTS INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ------------------ Units beginning of year.. 1,766 2,114 1,925 Units issued and transferred from other funding options....... 53 111 460 Units redeemed and transferred to other funding options....... (174) (459) (271) ------------------ ----------------- ------------------ Units end of year........ 1,645 1,766 2,114 ================== ================= ================== INVESCO V.I. COMSTOCK INVESTMENT DIVISION ---------------------------------------------------------- 2015 2014 2013 ------------------ ------------------ ------------------ Units beginning of year.. 18,652 18,458 18,847 Units issued and transferred from other funding options....... 1,183 598 11 Units redeemed and transferred to other funding options....... (576) (404) (400) ------------------ ------------------ ------------------ Units end of year........ 19,259 18,652 18,458 ================== ================== ================== INVESCO V.I. INTERNATIONAL GROWTH INVESTMENT DIVISION ---------------------------------------------------------- 2015 2014 2013 ------------------ ------------------ ------------------ Units beginning of year.. 14,202 16,229 314,797 Units issued and transferred from other funding options....... 674 795 15,364 Units redeemed and transferred to other funding options....... (1,191) (2,882) (313,932) ------------------ ------------------ ------------------ Units end of year........ 13,685 14,202 16,229 ================== ================== ================== JANUS ASPEN BALANCED INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ----------------- ------------------ ------------------ Units beginning of year.. 44,817 44,471 59,065 Units issued and transferred from other funding options....... 2,768 4,121 1,895 Units redeemed and transferred to other funding options....... (2,200) (3,775) (16,489) ----------------- ------------------ ------------------ Units end of year........ 45,385 44,817 44,471 ================= ================== ==================
JANUS ASPEN FORTY INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ----------------- Units beginning of year.. 20,307 34,817 46,505 Units issued and transferred from other funding options....... 500 912 1,234 Units redeemed and transferred to other funding options....... (881) (15,422) (12,922) ------------------ ----------------- ----------------- Units end of year........ 19,926 20,307 34,817 ================== ================= ================= JANUS ASPEN JANUS INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ------------------ Units beginning of year.. 27,479 28,415 81,921 Units issued and transferred from other funding options....... 407 699 121 Units redeemed and transferred to other funding options....... (2,363) (1,635) (53,627) ------------------ ----------------- ------------------ Units end of year........ 25,523 27,479 28,415 ================== ================= ================== JANUS ASPEN OVERSEAS INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ------------------ Units beginning of year.. 1,884 2,403 17,627 Units issued and transferred from other funding options....... 223 240 228 Units redeemed and transferred to other funding options....... (539) (759) (15,452) ----------------- ----------------- ------------------ Units end of year........ 1,568 1,884 2,403 ================= ================= ================== MFS VIT GLOBAL EQUITY INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 7,650 7,761 7,233 Units issued and transferred from other funding options....... 430 357 716 Units redeemed and transferred to other funding options....... (574) (468) (188) ----------------- ----------------- ----------------- Units end of year........ 7,506 7,650 7,761 ================= ================= =================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013:
MFS VIT NEW DISCOVERY INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 8,474 8,721 9,204 Units issued and transferred from other funding options....... 8 5 -- Units redeemed and transferred to other funding options....... (262) (252) (483) ----------------- ----------------- ----------------- Units end of year........ 8,220 8,474 8,721 ================= ================= ================= MFS VIT VALUE INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 903 978 1,049 Units issued and transferred from other funding options....... -- 1,462 1 Units redeemed and transferred to other funding options....... (83) (1,537) (72) ----------------- ----------------- ----------------- Units end of year........ 820 903 978 ================= ================= ================= MFS VIT II HIGH YIELD INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 (e) ----------------- ----------------- ----------------- Units beginning of year.. 7,587 8,075 -- Units issued and transferred from other funding options....... 40 3 8,117 Units redeemed and transferred to other funding options....... (163) (491) (42) ----------------- ----------------- ----------------- Units end of year........ 7,464 7,587 8,075 ================= ================= ================= MIST AB GLOBAL DYNAMIC ALLOCATION INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 3,865 2,847 656 Units issued and transferred from other funding options....... 2,377 1,277 2,831 Units redeemed and transferred to other funding options....... (1,530) (259) (640) ----------------- ----------------- ----------------- Units end of year........ 4,712 3,865 2,847 ================= ================= =================
MIST ALLIANZ GLOBAL INVESTORS DYNAMIC MULTI-ASSET PLUS MIST AMERICAN FUNDS BALANCED ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION ------------------------------------ -------------------------------------------------------- 2015 2014 (a) 2015 2014 2013 ----------------- ----------------- ----------------- ------------------ ----------------- Units beginning of year.. 72 -- 59,916 57,458 54,591 Units issued and transferred from other funding options....... 10,338 96 5,741 6,662 6,481 Units redeemed and transferred to other funding options....... (8,468) (24) (4,351) (4,204) (3,614) ----------------- ----------------- ----------------- ------------------ ----------------- Units end of year........ 1,942 72 61,306 59,916 57,458 ================= ================= ================= ================== ================= MIST AMERICAN FUNDS GROWTH ALLOCATION INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 101,601 108,102 84,318 Units issued and transferred from other funding options....... 14,045 12,222 43,545 Units redeemed and transferred to other funding options....... (10,606) (18,723) (19,761) ----------------- ----------------- ----------------- Units end of year........ 105,040 101,601 108,102 ================= ================= ================= MIST AMERICAN FUNDS MODERATE ALLOCATION INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 71,127 64,895 49,584 Units issued and transferred from other funding options....... 14,053 12,069 22,287 Units redeemed and transferred to other funding options....... (17,368) (5,837) (6,976) ----------------- ----------------- ----------------- Units end of year........ 67,812 71,127 64,895 ================= ================= =================
MIST AQR GLOBAL RISK BALANCED INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 17,046 15,059 2,358 Units issued and transferred from other funding options....... 5,403 5,307 18,647 Units redeemed and transferred to other funding options....... (8,350) (3,320) (5,946) ----------------- ----------------- ----------------- Units end of year........ 14,099 17,046 15,059 ================= ================= ================= MIST BLACKROCK GLOBAL TACTICAL STRATEGIES INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ------------------ Units beginning of year.. 15,552 8,821 3,707 Units issued and transferred from other funding options....... 6,931 7,919 6,344 Units redeemed and transferred to other funding options....... (4,020) (1,188) (1,230) ----------------- ----------------- ------------------ Units end of year........ 18,463 15,552 8,821 ================= ================= ================== MIST CLARION GLOBAL REAL ESTATE INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ----------------- Units beginning of year.. 1,424,610 1,412,669 1,388,419 Units issued and transferred from other funding options....... 197,300 493,788 302,475 Units redeemed and transferred to other funding options....... (268,419) (481,847) (278,225) ------------------ ----------------- ----------------- Units end of year........ 1,353,491 1,424,610 1,412,669 ================== ================= ================= MIST CLEARBRIDGE AGGRESSIVE GROWTH INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ----------------- ------------------ ----------------- Units beginning of year.. 2,519,284 1,375,745 1,313,742 Units issued and transferred from other funding options....... 466,292 1,550,161 313,509 Units redeemed and transferred to other funding options....... (607,947) (406,622) (251,506) ----------------- ------------------ ----------------- Units end of year........ 2,377,629 2,519,284 1,375,745 ================= ================== =================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013:
MIST HARRIS OAKMARK INTERNATIONAL INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 1,446,693 1,980,844 1,421,965 Units issued and transferred from other funding options....... 200,787 220,406 863,606 Units redeemed and transferred to other funding options....... (244,523) (754,557) (304,727) ----------------- ----------------- ----------------- Units end of year........ 1,402,957 1,446,693 1,980,844 ================= ================= ================= MIST INVESCO BALANCED-RISK ALLOCATION INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 27,242 22,938 7,100 Units issued and transferred from other funding options....... 22,460 8,699 26,433 Units redeemed and transferred to other funding options....... (14,407) (4,395) (10,595) ----------------- ----------------- ----------------- Units end of year........ 35,295 27,242 22,938 ================= ================= ================= MIST INVESCO MID CAP VALUE INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 2,536,877 2,707,441 2,873,152 Units issued and transferred from other funding options....... 264,793 236,264 304,764 Units redeemed and transferred to other funding options....... (365,099) (406,828) (470,475) ----------------- ----------------- ----------------- Units end of year........ 2,436,571 2,536,877 2,707,441 ================= ================= ================= MIST INVESCO SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 249,054 251,143 245,733 Units issued and transferred from other funding options....... 41,305 57,371 77,189 Units redeemed and transferred to other funding options....... (57,393) (59,460) (71,779) ----------------- ----------------- ----------------- Units end of year........ 232,966 249,054 251,143 ================= ================= =================
MIST JPMORGAN GLOBAL ACTIVE ALLOCATION INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ---------------- ----------------- ----------------- Units beginning of year.. 135,962 93,835 17,811 Units issued and transferred from other funding options....... 36,613 54,885 119,559 Units redeemed and transferred to other funding options....... (26,415) (12,758) (43,535) ---------------- ----------------- ----------------- Units end of year........ 146,160 135,962 93,835 ================ ================= ================= MIST JPMORGAN SMALL CAP VALUE INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 12,640 11,410 2,300 Units issued and transferred from other funding options....... 2,473 3,528 10,018 Units redeemed and transferred to other funding options....... (791) (2,298) (908) ----------------- ----------------- ----------------- Units end of year........ 14,322 12,640 11,410 ================= ================= ================= MIST LOOMIS SAYLES GLOBAL MARKETS INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 (d) ----------------- ----------------- ----------------- Units beginning of year.. 21,302 21,834 -- Units issued and transferred from other funding options....... 1,018 1,956 22,483 Units redeemed and transferred to other funding options....... (6,104) (2,488) (649) ----------------- ----------------- ----------------- Units end of year........ 16,216 21,302 21,834 ================= ================= ================= MIST LORD ABBETT BOND DEBENTURE INVESTMENT DIVISION ----------------------------------------------------- 2015 2014 2013 ----------------- ---------------- ---------------- Units beginning of year.. 941,028 1,003,912 1,063,203 Units issued and transferred from other funding options....... 147,194 169,905 133,374 Units redeemed and transferred to other funding options....... (162,376) (232,789) (192,665) ----------------- ---------------- ---------------- Units end of year........ 925,846 941,028 1,003,912 ================= ================ ================
MIST MET/TEMPLETON INTERNATIONAL BOND INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ----------------- ------------------ ----------------- Units beginning of year.. 11,790 5,967 181 Units issued and transferred from other funding options....... 4,916 6,422 7,357 Units redeemed and transferred to other funding options....... (3,751) (599) (1,571) ----------------- ------------------ ----------------- Units end of year........ 12,955 11,790 5,967 ================= ================== ================= MIST METLIFE ASSET ALLOCATION 100 INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ----------------- ------------------ ------------------ Units beginning of year.. 1,096,717 1,065,070 1,085,674 Units issued and transferred from other funding options....... 187,265 228,160 197,390 Units redeemed and transferred to other funding options....... (191,206) (196,513) (217,994) ----------------- ------------------ ------------------ Units end of year........ 1,092,776 1,096,717 1,065,070 ================= ================== ================== MIST METLIFE BALANCED PLUS INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 17,529 7,685 4,287 Units issued and transferred from other funding options....... 9,022 11,072 9,284 Units redeemed and transferred to other funding options....... (6,320) (1,228) (5,886) ----------------- ----------------- ----------------- Units end of year........ 20,231 17,529 7,685 ================= ================= ================= MIST METLIFE MULTI-INDEX TARGETED RISK INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 (d) ------------------ ----------------- ----------------- Units beginning of year.. 968 23 -- Units issued and transferred from other funding options....... 982 966 91 Units redeemed and transferred to other funding options....... (851) (21) (68) ------------------ ----------------- ----------------- Units end of year........ 1,099 968 23 ================== ================= =================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013:
MIST METLIFE SMALL CAP VALUE INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ----------------- ---------------- Units beginning of year.... 36,751 41,430 50,513 Units issued and transferred from other funding options......... 595 892 3,119 Units redeemed and transferred to other funding options......... (1,290) (5,571) (12,202) ----------------- ----------------- ---------------- Units end of year.......... 36,056 36,751 41,430 ================= ================= ================ MIST MFS EMERGING MARKETS EQUITY INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ----------------- ---------------- Units beginning of year.... 36,263 21,705 6,737 Units issued and transferred from other funding options......... 14,079 25,364 16,265 Units redeemed and transferred to other funding options......... (5,952) (10,806) (1,297) ----------------- ----------------- ---------------- Units end of year.......... 44,390 36,263 21,705 ================= ================= ================ MIST MFS RESEARCH INTERNATIONAL INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ----------------- ---------------- Units beginning of year.... 1,025,165 1,065,499 920,691 Units issued and transferred from other funding options......... 97,048 100,778 300,336 Units redeemed and transferred to other funding options......... (133,705) (141,112) (155,528) ----------------- ----------------- ---------------- Units end of year.......... 988,508 1,025,165 1,065,499 ================= ================= ================ MIST MORGAN STANLEY MID CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ----------------- ---------------- Units beginning of year.... 10,592,901 11,170,989 11,831,703 Units issued and transferred from other funding options......... 1,090,120 1,232,830 1,271,412 Units redeemed and transferred to other funding options......... (1,538,600) (1,810,918) (1,932,126) ----------------- ----------------- ---------------- Units end of year.......... 10,144,421 10,592,901 11,170,989 ================= ================= ================
MIST PANAGORA GLOBAL MIST OPPENHEIMER GLOBAL EQUITY DIVERSIFIED RISK INVESTMENT DIVISION INVESTMENT DIVISION ------------------------------------------------------- ------------------- 2015 2014 2013 2015 (f) ---------------- ----------------- ----------------- ------------------- Units beginning of year.. 1,580,006 1,679,985 1,769,256 -- Units issued and transferred from other funding options....... 214,184 175,615 403,190 8,768 Units redeemed and transferred to other funding options....... (244,196) (275,594) (492,461) (8,758) ---------------- ----------------- ----------------- ------------------- Units end of year........ 1,549,994 1,580,006 1,679,985 10 ================ ================= ================= =================== MIST PIMCO INFLATION PROTECTED BOND INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 747,392 755,274 837,709 Units issued and transferred from other funding options....... 113,438 177,981 212,906 Units redeemed and transferred to other funding options....... (169,445) (185,863) (295,341) ----------------- ----------------- ----------------- Units end of year........ 691,385 747,392 755,274 ================= ================= ================= MIST PIMCO TOTAL RETURN INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 2,149,016 2,464,593 2,365,572 Units issued and transferred from other funding options....... 253,114 274,736 638,791 Units redeemed and transferred to other funding options....... (374,537) (590,313) (539,770) ----------------- ----------------- ----------------- Units end of year........ 2,027,593 2,149,016 2,464,593 ================= ================= =================
MIST PIONEER FUND INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ---------------- ----------------- Units beginning of year.... 10,521 10,624 13,454 Units issued and transferred from other funding options......... 44 -- 95 Units redeemed and transferred to other funding options......... (2,309) (103) (2,925) ----------------- ---------------- ----------------- Units end of year.......... 8,256 10,521 10,624 ================= ================ ================= MIST PYRAMIS MANAGED RISK INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 (d) ----------------- ---------------- ----------------- Units beginning of year.... 13 3 -- Units issued and transferred from other funding options......... 393 15 3 Units redeemed and transferred to other funding options......... (375) (5) -- ----------------- ---------------- ----------------- Units end of year.......... 31 13 3 ================= ================ ================= MIST SCHRODERS GLOBAL MULTI-ASSET INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ---------------- ----------------- Units beginning of year.... 24,844 19,086 5,334 Units issued and transferred from other funding options......... 15,177 8,293 18,632 Units redeemed and transferred to other funding options......... (10,324) (2,535) (4,880) ----------------- ---------------- ----------------- Units end of year.......... 29,697 24,844 19,086 ================= ================ ================= MIST SSGA GROWTH AND INCOME ETF INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.... 467,656 503,743 450,776 Units issued and transferred from other funding options......... 77,796 91,210 138,933 Units redeemed and transferred to other funding options......... (75,098) (127,297) (85,966) ----------------- ----------------- ----------------- Units end of year.......... 470,354 467,656 503,743 ================= ================= =================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013:
MIST SSGA GROWTH ETF INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.... 398,249 366,821 332,667 Units issued and transferred from other funding options......... 95,075 110,844 106,864 Units redeemed and transferred to other funding options......... (71,452) (79,416) (72,710) ----------------- ----------------- ----------------- Units end of year.......... 421,872 398,249 366,821 ================= ================= ================= MIST T. ROWE PRICE LARGE CAP VALUE INVESTMENT DIVISION ----------------------------------------------------- 2015 2014 2013 ---------------- ----------------- ---------------- Units beginning of year.... 133,581 128,280 112,114 Units issued and transferred from other funding options......... 514 7,180 30,343 Units redeemed and transferred to other funding options......... (17,063) (1,879) (14,177) ---------------- ----------------- ---------------- Units end of year.......... 117,032 133,581 128,280 ================ ================= ================ MIST T. ROWE PRICE MID CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ---------------- ----------------- Units beginning of year.... 1,478,700 1,482,938 1,544,904 Units issued and transferred from other funding options......... 325,674 265,792 265,706 Units redeemed and transferred to other funding options......... (295,823) (270,030) (327,672) ----------------- ---------------- ----------------- Units end of year.......... 1,508,551 1,478,700 1,482,938 ================= ================ ================= MIST WMC LARGE CAP RESEARCH INVESTMENT DIVISION ----------------------------------------------------- 2015 2014 2013 ---------------- ----------------- ---------------- Units beginning of year.... 10,583,026 11,184,832 11,913,338 Units issued and transferred from other funding options......... 847,471 1,115,535 1,167,810 Units redeemed and transferred to other funding options......... (1,460,772) (1,717,341) (1,896,316) ---------------- ----------------- ---------------- Units end of year.......... 9,969,725 10,583,026 11,184,832 ================ ================= ================
MSF BAILLIE GIFFORD INTERNATIONAL STOCK INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ------------------ Units beginning of year.. 2,569,893 2,695,199 2,785,901 Units issued and transferred from other funding options....... 347,116 341,419 371,228 Units redeemed and transferred to other funding options....... (434,216) (466,725) (461,930) ----------------- ----------------- ------------------ Units end of year........ 2,482,793 2,569,893 2,695,199 ================= ================= ================== MSF BARCLAYS AGGREGATE BOND INDEX INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 6,012,506 5,904,440 5,528,875 Units issued and transferred from other funding options....... 869,690 1,175,001 1,310,705 Units redeemed and transferred to other funding options....... (1,063,054) (1,066,935) (935,140) ----------------- ----------------- ----------------- Units end of year........ 5,819,142 6,012,506 5,904,440 ================= ================= ================= MSF BLACKROCK BOND INCOME INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ----------------- Units beginning of year.. 3,018,880 3,164,737 3,286,524 Units issued and transferred from other funding options....... 413,695 388,693 408,801 Units redeemed and transferred to other funding options....... (592,052) (534,550) (530,588) ------------------ ----------------- ----------------- Units end of year........ 2,840,523 3,018,880 3,164,737 ================== ================= ================= MSF BLACKROCK CAPITAL APPRECIATION INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 414,973 1,238,069 1,083,757 Units issued and transferred from other funding options....... 70,459 69,171 306,867 Units redeemed and transferred to other funding options....... (75,820) (892,267) (152,555) ----------------- ----------------- ----------------- Units end of year........ 409,612 414,973 1,238,069 ================= ================= =================
MSF BLACKROCK LARGE CAP VALUE INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ---------------- ----------------- Units beginning of year.... 943,466 952,777 972,398 Units issued and transferred from other funding options......... 144,666 168,601 172,172 Units redeemed and transferred to other funding options......... (166,523) (177,912) (191,793) ----------------- ---------------- ----------------- Units end of year.......... 921,609 943,466 952,777 ================= ================ ================= MSF BLACKROCK MONEY MARKET INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ---------------- ----------------- Units beginning of year.... 1,682,938 1,334,062 1,306,002 Units issued and transferred from other funding options......... 357,312 1,140,932 573,675 Units redeemed and transferred to other funding options......... (653,316) (792,056) (545,615) ----------------- ---------------- ----------------- Units end of year.......... 1,386,934 1,682,938 1,334,062 ================= ================ ================= MSF FRONTIER MID CAP GROWTH INVESTMENT DIVISION ----------------------------------------------------- 2015 2014 2013 ---------------- ----------------- ---------------- Units beginning of year.... 6,861,561 7,328,205 8,053,406 Units issued and transferred from other funding options......... 503,551 603,587 669,008 Units redeemed and transferred to other funding options......... (872,778) (1,070,231) (1,394,209) ---------------- ----------------- ---------------- Units end of year.......... 6,492,334 6,861,561 7,328,205 ================ ================= ================ MSF JENNISON GROWTH INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ----------------- ---------------- Units beginning of year.... 975,379 1,014,111 1,151,518 Units issued and transferred from other funding options......... 152,823 170,080 133,920 Units redeemed and transferred to other funding options......... (192,375) (208,812) (271,327) ----------------- ----------------- ---------------- Units end of year.......... 935,827 975,379 1,014,111 ================= ================= ================
(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) Commenced April 28, 2014 and began transactions in 2015. (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, 2015, 2014 AND 2013:
MSF LOOMIS SAYLES SMALL CAP CORE INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 78,544 81,272 88,479 Units issued and transferred from other funding options....... 5,343 7,450 9,232 Units redeemed and transferred to other funding options....... (11,017) (10,178) (16,439) ----------------- ----------------- ----------------- Units end of year........ 72,870 78,544 81,272 ================= ================= ================= MSF LOOMIS SAYLES SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 532,728 575,475 569,420 Units issued and transferred from other funding options....... 77,825 93,547 141,821 Units redeemed and transferred to other funding options....... (95,180) (136,294) (135,766) ----------------- ----------------- ----------------- Units end of year........ 515,373 532,728 575,475 ================= ================= ================= MSF MET/ARTISAN MID CAP VALUE INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 171,419 179,229 188,777 Units issued and transferred from other funding options....... 17,894 19,314 34,357 Units redeemed and transferred to other funding options....... (29,417) (27,124) (43,905) ----------------- ----------------- ----------------- Units end of year........ 159,896 171,419 179,229 ================= ================= ================= MSF METLIFE ASSET ALLOCATION 20 INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 311,182 302,268 330,868 Units issued and transferred from other funding options....... 56,467 96,285 80,970 Units redeemed and transferred to other funding options....... (60,492) (87,371) (109,570) ----------------- ----------------- ----------------- Units end of year........ 307,157 311,182 302,268 ================= ================= =================
MSF METLIFE ASSET ALLOCATION 40 INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ------------------ Units beginning of year.. 537,152 528,645 548,694 Units issued and transferred from other funding options....... 145,986 114,747 132,624 Units redeemed and transferred to other funding options....... (172,701) (106,240) (152,673) ------------------ ----------------- ------------------ Units end of year........ 510,437 537,152 528,645 ================== ================= ================== MSF METLIFE ASSET ALLOCATION 60 INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ------------------ Units beginning of year.. 2,946,636 2,959,238 3,085,848 Units issued and transferred from other funding options....... 339,199 485,403 570,724 Units redeemed and transferred to other funding options....... (457,196) (498,005) (697,334) ------------------ ----------------- ------------------ Units end of year........ 2,828,639 2,946,636 2,959,238 ================== ================= ================== MSF METLIFE ASSET ALLOCATION 80 INVESTMENT DIVISION --------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ------------------ Units beginning of year.. 5,267,738 5,304,870 5,433,641 Units issued and transferred from other funding options....... 601,128 762,440 951,279 Units redeemed and transferred to other funding options....... (760,462) (799,572) (1,080,050) ------------------ ----------------- ------------------ Units end of year........ 5,108,404 5,267,738 5,304,870 ================== ================= ================== MSF METLIFE MID CAP STOCK INDEX INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ----------------- ------------------ ----------------- Units beginning of year.. 2,603,842 3,096,714 2,971,386 Units issued and transferred from other funding options....... 303,111 344,308 688,636 Units redeemed and transferred to other funding options....... (401,893) (837,180) (563,308) ----------------- ------------------ ----------------- Units end of year........ 2,505,060 2,603,842 3,096,714 ================= ================== =================
MSF METLIFE STOCK INDEX INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ---------------- ----------------- Units beginning of year.... 31,845,594 33,504,283 35,058,600 Units issued and transferred from other funding options......... 3,048,757 3,230,743 3,838,942 Units redeemed and transferred to other funding options......... (4,159,659) (4,889,432) (5,393,259) ----------------- ---------------- ----------------- Units end of year.......... 30,734,692 31,845,594 33,504,283 ================= ================ ================= MSF MFS TOTAL RETURN INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ---------------- ----------------- ----------------- Units beginning of year.... 495,079 516,460 523,594 Units issued and transferred from other funding options......... 76,608 64,664 78,131 Units redeemed and transferred to other funding options......... (82,509) (86,045) (85,265) ---------------- ----------------- ----------------- Units end of year.......... 489,178 495,079 516,460 ================ ================= ================= MSF MFS VALUE INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ---------------- ----------------- ---------------- Units beginning of year.... 3,651,820 3,880,440 3,634,888 Units issued and transferred from other funding options......... 362,018 410,647 938,625 Units redeemed and transferred to other funding options......... (557,996) (639,267) (693,073) ---------------- ----------------- ---------------- Units end of year.......... 3,455,842 3,651,820 3,880,440 ================ ================= ================ MSF MSCI EAFE INDEX INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ---------------- ----------------- Units beginning of year.... 4,721,774 4,619,766 4,738,737 Units issued and transferred from other funding options......... 694,105 958,783 768,969 Units redeemed and transferred to other funding options......... (731,504) (856,775) (887,940) ----------------- ---------------- ----------------- Units end of year.......... 4,684,375 4,721,774 4,619,766 ================= ================ =================
(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) Commenced April 28, 2014 and began transactions in 2015. (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 -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013:
MSF NEUBERGER BERMAN GENESIS INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 3,467,583 3,669,017 3,701,342 Units issued and transferred from other funding options....... 312,240 372,237 615,549 Units redeemed and transferred to other funding options....... (508,737) (573,671) (647,874) ----------------- ----------------- ----------------- Units end of year........ 3,271,086 3,467,583 3,669,017 ================= ================= ================= MSF RUSSELL 2000 INDEX INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 2,260,930 2,328,388 2,492,581 Units issued and transferred from other funding options....... 287,495 345,889 288,294 Units redeemed and transferred to other funding options....... (364,903) (413,347) (452,487) ----------------- ----------------- ----------------- Units end of year........ 2,183,522 2,260,930 2,328,388 ================= ================= ================= MSF T. ROWE PRICE LARGE CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 3,259,625 3,427,787 2,902,055 Units issued and transferred from other funding options....... 404,951 389,494 1,182,376 Units redeemed and transferred to other funding options....... (554,701) (557,656) (656,644) ----------------- ----------------- ----------------- Units end of year........ 3,109,875 3,259,625 3,427,787 ================= ================= ================= MSF T. ROWE PRICE SMALL CAP GROWTH INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 2,818,717 3,406,451 3,660,384 Units issued and transferred from other funding options....... 266,479 292,004 337,801 Units redeemed and transferred to other funding options....... (393,277) (879,738) (591,734) ----------------- ----------------- ----------------- Units end of year........ 2,691,919 2,818,717 3,406,451 ================= ================= =================
MSF VAN ECK GLOBAL NATURAL RESOURCES INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.... 1,164 916 319 Units issued and transferred from other funding options......... 743 698 661 Units redeemed and transferred to other funding options......... (204) (450) (64) ----------------- ----------------- ----------------- Units end of year.......... 1,703 1,164 916 ================= ================= ================= MSF WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ---------------- ----------------- ----------------- Units beginning of year.... 989,244 1,022,252 1,037,022 Units issued and transferred from other funding options......... 135,162 135,497 177,853 Units redeemed and transferred to other funding options......... (159,944) (168,505) (192,623) ---------------- ----------------- ----------------- Units end of year.......... 964,462 989,244 1,022,252 ================ ================= ================= MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ---------------- ----------------- Units beginning of year.... 904,420 935,377 936,357 Units issued and transferred from other funding options......... 138,201 141,439 186,398 Units redeemed and transferred to other funding options......... (172,219) (172,396) (187,378) ----------------- ---------------- ----------------- Units end of year.......... 870,402 904,420 935,377 ================= ================ ================= MSF WMC BALANCED INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ----------------- ---------------- Units beginning of year.... 8,541,626 9,093,665 9,597,280 Units issued and transferred from other funding options......... 766,101 836,836 1,003,288 Units redeemed and transferred to other funding options......... (1,277,914) (1,388,875) (1,506,903) ----------------- ----------------- ---------------- Units end of year.......... 8,029,813 8,541,626 9,093,665 ================= ================= ================
OPPENHEIMER VA MSF WMC CORE EQUITY OPPORTUNITIES MAIN STREET SMALL CAP INVESTMENT DIVISION INVESTMENT DIVISION ------------------------------------------------------ ----------------------------------- 2015 2014 2013 2015 2014 (g) ----------------- ---------------- ----------------- ----------------- ---------------- Units beginning of year.... 1,304,591 1,389,950 1,511,861 140 -- Units issued and transferred from other funding options......... 121,985 130,153 186,017 176 143 Units redeemed and transferred to other funding options......... (201,601) (215,512) (307,928) (26) (3) ----------------- ---------------- ----------------- ----------------- ---------------- Units end of year.......... 1,224,975 1,304,591 1,389,950 290 140 ================= ================ ================= ================= ================ PIMCO VIT ALL ASSET INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ---------------- ----------------- Units beginning of year.... 70,102 72,143 10,325 Units issued and transferred from other funding options......... 3,231 784 69,923 Units redeemed and transferred to other funding options......... (63,965) (2,825) (8,105) ----------------- ---------------- ----------------- Units end of year.......... 9,368 70,102 72,143 ================= ================ ================= PIMCO VIT COMMODITYREALRETURN STRATEGY INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 (d) ----------------- ---------------- ----------------- Units beginning of year.... 3,576 479 -- Units issued and transferred from other funding options......... 331 3,227 502 Units redeemed and transferred to other funding options......... (2,512) (130) (23) ----------------- ---------------- ----------------- Units end of year.......... 1,395 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) Commenced April 28, 2014 and began transactions in 2015. (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) 7. SCHEDULES OF UNITS -- (CONCLUDED) FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013:
PIMCO VIT LOW DURATION INVESTMENT DIVISION ------------------------------------------------------ 2015 2014 2013 ----------------- ---------------- ----------------- Units beginning of year.. 123,927 126,188 79,088 Units issued and transferred from other funding options....... 105 265 72,882 Units redeemed and transferred to other funding options....... (58,507) (2,526) (25,782) ----------------- ---------------- ----------------- Units end of year........ 65,525 123,927 126,188 ================= ================ ================= PIONEER VCT MID CAP VALUE INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 1,012 828 3,389 Units issued and transferred from other funding options....... -- 242 -- Units redeemed and transferred to other funding options....... (299) (58) (2,561) ----------------- ----------------- ----------------- Units end of year........ 713 1,012 828 ================= ================= ================= PUTNAM VT INTERNATIONAL VALUE INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 (b) ----------------- ----------------- ----------------- Units beginning of year.. 239 239 -- Units issued and transferred from other funding options....... 54 49 250 Units redeemed and transferred to other funding options....... (54) (49) (11) ----------------- ----------------- ----------------- Units end of year........ 239 239 239 ================= ================= ================= ROYCE MICRO-CAP INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 417 374 21,685 Units issued and transferred from other funding options....... 52 47 101 Units redeemed and transferred to other funding options....... (4) (4) (21,412) ----------------- ----------------- ----------------- Units end of year........ 465 417 374 ================= ================= =================
ROYCE SMALL-CAP INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 2,265 31,356 33,234 Units issued and transferred from other funding options....... 619 18,250 10,487 Units redeemed and transferred to other funding options....... (186) (47,341) (12,365) ----------------- ----------------- ----------------- Units end of year........ 2,698 2,265 31,356 ================= ================= ================= UIF EMERGING MARKETS DEBT INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ------------------ ----------------- ----------------- Units beginning of year.. 23,590 35,538 33,059 Units issued and transferred from other funding options....... 7,582 1,488 5,716 Units redeemed and transferred to other funding options....... (3,603) (13,436) (3,237) ------------------ ----------------- ----------------- Units end of year........ 27,569 23,590 35,538 ================== ================= ================= UIF EMERGING MARKETS EQUITY INVESTMENT DIVISION ------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ----------------- Units beginning of year.. 150,699 83,866 69,412 Units issued and transferred from other funding options....... 52,324 88,221 25,714 Units redeemed and transferred to other funding options....... (26,053) (21,388) (11,260) ----------------- ----------------- ----------------- Units end of year........ 176,970 150,699 83,866 ================= ================= ================= WELLS FARGO VT TOTAL RETURN BOND INVESTMENT DIVISION -------------------------------------------------------- 2015 2014 2013 ----------------- ----------------- ------------------ Units beginning of year.. 59,676 16,006 29,620 Units issued and transferred from other funding options....... 94,215 47,678 3,045 Units redeemed and transferred to other funding options....... (139,823) (4,008) (16,659) ----------------- ----------------- ------------------ Units end of year........ 14,068 59,676 16,006 ================= ================= ==================
(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) Commenced April 28, 2014 and began transactions in 2015. (g) Commenced April 28, 2008 and began transactions in 2014. 212 213 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, 2015:
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 (%) ----------- -------------- ------------ ------------- ---------------- ----------------- AB Global Thematic Growth 2015 5,659 7.03 39,803 -- 0.00 2.65 Investment Division 2014 11,048 6.85 75,700 -- 0.00 4.81 2013 10,121 6.54 66,166 0.02 0.00 22.93 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) AB Intermediate Bond 2015 3,779 16.02 60,559 3.34 0.00 (0.18) Investment Division 2014 3,712 16.05 59,589 3.24 0.00 6.22 2013 3,812 15.11 57,615 3.09 0.00 (2.34) 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 American Century VP 2015 4 21.12 83 -- 0.00 1.93 Capital Appreciation 2014 21 20.72 432 -- 0.00 11.65 Investment Division (Commenced 4/28/2014) American Funds Bond 2015 437,856 12.59 - 23.10 6,208,120 1.73 0.00 - 0.90 (0.62) - 0.27 Investment Division 2014 422,554 12.67 - 23.04 5,975,916 1.99 0.00 - 0.90 4.33 - 5.28 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 American Funds Global 2015 1,684,041 35.54 - 46.61 67,195,650 -- 0.00 - 0.90 (0.63) - 0.27 Small Capitalization 2014 1,772,715 35.77 - 46.48 70,558,118 0.12 0.00 - 0.90 1.21 - 2.12 Investment Division 2013 1,848,240 35.34 - 45.52 72,066,620 0.87 0.00 - 0.90 27.13 - 28.28 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) American Funds Growth 2015 1,045,168 35.61 - 389.52 164,709,586 0.60 0.00 - 0.90 5.90 - 6.86 Investment Division 2014 1,119,856 33.32 - 364.52 164,910,421 0.80 0.00 - 0.90 7.54 - 8.51 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) American Funds 2015 1,173,413 75.82 - 263.48 101,658,954 1.30 0.00 - 0.90 0.55 - 1.45 Growth-Income 2014 1,243,407 75.41 - 259.70 106,030,732 1.29 0.00 - 0.90 9.64 - 10.63 Investment Division 2013 1,315,261 68.78 - 234.74 101,213,157 1.37 0.00 - 0.90 32.30 - 33.50 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) American Funds International 2015 12,487 33.24 415,110 1.24 0.00 (4.53) Investment Division 2014 19,587 34.82 682,005 1.40 0.00 (2.65) 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)
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 (%) ----------- ------------- ------------ ------------- ---------------- ---------------- American Funds U.S. 2015 2,125 23.70 50,343 1.47 0.00 1.59 Government/AAA-Rated 2014 2,082 23.33 48,552 1.10 0.00 5.02 Securities 2013 2,093 22.21 46,484 0.68 0.00 (3.08) Investment Division 2012 1,972 22.92 45,192 1.00 0.00 1.90 2011 2,025 22.49 45,539 1.73 0.00 7.57 Dreyfus VIF International 2015 15,363 13.79 211,852 1.94 0.00 (2.98) Value Investment Division 2014 15,519 14.21 220,569 1.32 0.00 (9.57) 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) Fidelity VIP Asset Manager: 2015 121,099 15.45 1,870,972 1.03 0.00 (0.03) Growth Investment Division 2014 135,053 15.45 2,087,177 1.01 0.00 5.75 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) Fidelity VIP Contrafund 2015 107,835 25.74 2,775,398 0.90 0.00 0.56 Investment Division 2014 113,831 25.59 2,913,464 0.86 0.00 11.82 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) Fidelity VIP Equity-Income 2015 669 19.20 12,838 2.69 0.00 (4.09) Investment Division 2014 1,259 20.01 25,205 2.88 0.00 8.65 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 Fidelity VIP Freedom 2010 2015 1,392 13.81 19,219 0.92 0.00 (0.29) Investment Division 2014 3,474 13.85 48,114 1.62 0.00 4.46 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) Fidelity VIP Freedom 2020 2015 30,947 13.63 - 18.61 528,621 1.71 0.00 (0.27) Investment Division 2014 56,045 13.66 - 18.66 984,560 1.65 0.00 4.76 - 4.82 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) Fidelity VIP Freedom 2025 2015 22,070 19.61 432,727 1.92 0.00 (0.18) Investment Division 2014 1,914 19.64 37,588 1.58 0.00 5.06 (Commenced 4/28/2008 and 2013 2,149 18.70 40,181 1.79 0.00 19.95 began transactions in 2013) Fidelity VIP Freedom 2030 2015 8,698 13.78 119,873 2.05 0.00 (0.24) Investment Division 2014 5,911 13.81 81,658 1.76 0.00 4.89 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)
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 (%) ---------- ------------- ------------ ------------- ---------------- ---------------- Fidelity VIP Freedom 2040 2015 5,641 15.81 89,215 2.00 0.00 (0.26) Investment Division 2014 3,374 15.86 53,497 2.38 0.00 4.85 (Commenced 5/3/2010 and 2013 782 15.12 11,831 3.69 0.00 24.73 began transactions in 2013) Fidelity VIP Freedom 2050 2015 3,221 15.95 51,384 2.16 0.00 (0.29) Investment Division 2014 1,669 16.00 26,706 1.38 0.00 4.94 (Commenced 5/3/2010 2013 1,444 15.25 22,014 1.43 0.00 25.78 and began transactions 2012 1,468 12.12 17,799 2.12 0.00 17.20 in 2011) 2011 1,492 10.34 15,438 1.77 0.00 (5.36) Fidelity VIP High Income 2015 10,801 19.05 205,740 7.86 0.00 (3.63) Investment Division 2014 8,712 19.76 172,179 5.69 0.00 1.16 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 Fidelity VIP Investment Grade 2015 75,247 16.27 1,224,347 2.51 0.00 (0.71) Bond Investment Division 2014 76,739 16.39 1,257,507 1.79 0.00 5.75 2013 109,725 15.50 1,700,205 2.44 0.00 (1.89) 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 Fidelity VIP Mid Cap 2015 7,000 39.97 279,768 0.28 0.00 (1.63) Investment Division 2014 6,260 40.63 254,337 0.02 0.00 6.03 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) FTVIPT Franklin Income VIP 2015 47 827.87 38,833 3.59 0.00 (7.05) Investment Division 2014 28 890.70 25,156 3.07 0.00 4.62 (Commenced 4/29/2013) 2013 1 851.40 618 -- 0.00 7.52 FTVIPT Franklin Mutual 2015 18,532 25.88 479,582 2.78 0.00 (3.65) Global Discovery VIP 2014 18,185 26.86 488,433 2.10 0.00 5.71 Investment Division 2013 19,479 25.41 494,934 2.33 0.00 27.61 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) FTVIPT Franklin Mutual 2015 194 368.38 71,304 3.29 0.00 (4.94) Shares VIP Investment 2014 109 387.51 42,378 2.19 0.00 7.12 Division 2013 67 361.74 24,208 2.28 0.00 16.31 (Commenced 4/29/2013) FTVIPT Templeton Foreign VIP 2015 295,281 18.10 5,344,848 3.37 0.00 (6.31) Investment Division 2014 276,787 19.32 5,347,371 1.86 0.00 (10.89) 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) FTVIPT Templeton Global 2015 23,525 23.77 559,264 7.41 0.00 (4.10) Bond VIP Investment 2014 49,895 24.79 1,236,895 5.18 0.00 2.12 Division 2013 54,283 24.27 1,317,714 3.58 0.00 1.89 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)
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 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 2015 9,834 25.87 254,367 0.39 0.00 (9.24) Investment Division 2014 10,570 28.50 301,257 0.99 0.00 13.57 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) Goldman Sachs Small Cap 2015 1,645 20.54 33,793 0.28 0.00 (2.13) Equity Insights Investment 2014 1,766 20.99 37,063 0.68 0.00 6.93 Division 2013 2,114 19.63 41,480 1.13 0.00 43.55 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 Invesco V.I. Comstock 2015 19,259 17.48 336,660 1.68 0.00 (6.19) Investment Division 2014 18,652 18.63 347,578 1.10 0.00 9.10 2013 18,458 17.08 315,275 1.46 0.00 35.65 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) Invesco V.I. International 2015 13,685 24.10 329,823 1.45 0.00 (2.34) Growth Investment Division 2014 14,202 24.68 350,497 1.54 0.00 0.33 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) Janus Aspen Balanced 2015 45,385 24.26 1,101,075 1.38 0.00 0.41 Investment Division 2014 44,817 24.16 1,082,851 1.54 0.00 8.24 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 Janus Aspen Forty 2015 19,926 30.34 604,552 -- 0.00 11.94 Investment Division 2014 20,307 27.10 550,397 0.03 0.00 8.47 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) Janus Aspen Janus 2015 25,523 18.40 469,667 0.62 0.00 5.35 Investment Division 2014 27,479 17.47 480,007 0.37 0.00 12.99 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) Janus Aspen Overseas 2015 1,568 22.97 36,023 0.48 0.00 (8.80) Investment Division 2014 1,884 25.18 47,442 3.16 0.00 (12.10) 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) MFS VIT Global Equity 2015 7,506 24.33 182,623 0.84 0.00 (1.67) Investment Division 2014 7,650 24.74 189,291 0.53 0.00 3.63 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)
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 ---------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ---------- -------------- ------------ MFS VIT New Discovery 2015 8,220 23.89 196,330 Investment Division 2014 8,474 24.41 206,851 2013 8,721 26.39 230,115 2012 9,204 18.68 171,983 2011 7,919 15.46 122,395 MFS VIT Value Investment 2015 820 24.22 19,852 Division 2014 903 24.45 22,067 2013 978 22.18 21,702 2012 1,049 16.36 17,162 2011 3,138 14.12 44,299 MFS VIT II High Yield 2015 7,464 18.13 135,308 Investment Division 2014 7,587 18.97 143,885 (Commenced 8/19/2013) 2013 8,075 18.50 149,361 MIST AB Global Dynamic 2015 4,712 12.98 61,181 Allocation Investment 2014 3,865 12.91 49,893 Division 2013 2,847 12.03 34,236 (Commenced 4/30/2012) 2012 656 10.82 7,098 MIST Allianz Global Investors 2015 1,942 1.04 2,020 Dynamic Multi-Asset Plus 2014 72 1.05 76 Investment Division (Commenced 4/28/2014) MIST American Funds 2015 61,306 14.58 894,053 Balanced Allocation 2014 59,916 14.63 876,678 Investment Division 2013 57,458 13.75 790,263 2012 54,591 11.57 631,423 2011 50,766 10.16 515,995 MIST American Funds 2015 105,040 14.64 1,538,114 Growth Allocation 2014 101,601 14.72 1,495,337 Investment Division 2013 108,102 13.79 1,490,834 2012 84,318 10.99 926,978 2011 82,817 9.43 781,245 MIST American Funds 2015 67,812 14.30 969,592 Moderate Allocation 2014 71,127 14.35 1,020,697 Investment Division 2013 64,895 13.48 874,921 2012 49,584 11.85 587,686 2011 37,706 10.65 401,606 MIST AQR Global Risk 2015 14,099 9.55 134,644 Balanced Investment Division 2014 17,046 10.56 180,015 (Commenced 4/30/2012) 2013 15,059 10.15 152,914 2012 2,358 10.51 24,784 MIST BlackRock Global 2015 18,463 12.30 227,159 Tactical Strategies 2014 15,552 12.32 191,557 Investment Division 2013 8,821 11.63 102,574 (Commenced 4/30/2012) 2012 3,707 10.54 39,078 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ---------------- MFS VIT New Discovery 2015 -- 0.00 (2.15) Investment Division 2014 -- 0.00 (7.49) 2013 -- 0.00 41.22 2012 -- 0.00 20.90 2011 -- 0.00 (10.49) MFS VIT Value Investment 2015 2.08 0.00 (0.93) Division 2014 1.33 0.00 10.20 2013 1.01 0.00 35.59 2012 1.77 0.00 15.88 2011 1.45 0.00 (0.47) MFS VIT II High Yield 2015 6.86 0.00 (4.42) Investment Division 2014 5.29 0.00 2.53 (Commenced 8/19/2013) 2013 2.22 0.00 3.84 MIST AB Global Dynamic 2015 3.66 0.00 0.58 Allocation Investment 2014 1.91 0.00 7.35 Division 2013 0.59 0.00 11.15 (Commenced 4/30/2012) 2012 -- 0.00 4.39 MIST Allianz Global Investors 2015 0.73 0.00 (0.98) Dynamic Multi-Asset Plus 2014 0.70 0.00 5.36 Investment Division (Commenced 4/28/2014) MIST American Funds 2015 1.74 0.00 (0.33) Balanced Allocation 2014 1.58 0.00 6.38 Investment Division 2013 1.64 0.00 18.91 2012 1.94 0.00 13.80 2011 1.44 0.00 (1.80) MIST American Funds 2015 1.62 0.00 (0.51) Growth Allocation 2014 1.36 0.00 6.72 Investment Division 2013 1.27 0.00 25.44 2012 1.55 0.00 16.54 2011 1.38 0.00 (4.41) MIST American Funds 2015 1.77 0.00 (0.36) Moderate Allocation 2014 1.69 0.00 6.44 Investment Division 2013 1.90 0.00 13.75 2012 2.15 0.00 11.28 2011 1.66 0.00 0.44 MIST AQR Global Risk 2015 5.02 0.00 (9.57) Balanced Investment Division 2014 -- 0.00 4.00 (Commenced 4/30/2012) 2013 1.78 0.00 (3.39) 2012 -- 0.00 4.63 MIST BlackRock Global 2015 1.59 0.00 (0.11) Tactical Strategies 2014 1.11 0.00 5.92 Investment Division 2013 1.20 0.00 10.31 (Commenced 4/30/2012) 2012 -- 0.00 4.21
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 ------------------------------------------ UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ----------- -------------- ------------- MIST Clarion Global Real 2015 1,353,491 19.96 - 22.17 29,524,589 Estate Investment Division 2014 1,424,610 20.39 - 22.44 31,468,604 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 MIST ClearBridge Aggressive 2015 2,377,629 15.85 - 18.62 42,906,771 Growth Investment Division 2014 2,519,284 16.47 - 19.36 47,278,544 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 MIST Harris Oakmark 2015 1,402,957 14.59 - 28.60 38,468,820 International Investment 2014 1,446,693 15.25 - 29.89 41,530,766 Division 2013 1,980,844 16.14 - 31.64 52,830,774 2012 1,421,965 12.34 - 24.19 33,602,695 2011 1,483,192 9.53 - 18.68 27,216,742 MIST Invesco Balanced-Risk 2015 35,295 1.09 38,475 Allocation Investment 2014 27,242 1.14 31,001 Division 2013 22,938 1.08 24,723 (Commenced 4/30/2012) 2012 7,100 1.06 7,513 MIST Invesco Mid Cap Value 2015 2,436,571 20.22 - 43.08 82,921,441 Investment Division 2014 2,536,877 22.16 - 47.22 94,874,185 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 MIST Invesco Small Cap 2015 232,966 25.35 - 32.47 6,552,111 Growth Investment Division 2014 249,054 25.95 - 32.94 7,086,689 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 MIST JPMorgan Global Active 2015 146,160 1.27 185,624 Allocation Investment 2014 135,962 1.26 171,141 Division 2013 93,835 1.18 110,413 (Commenced 4/30/2012) 2012 17,811 1.06 18,883 MIST JPMorgan Small Cap 2015 14,322 21.68 310,452 Value Investment Division 2014 12,640 23.37 295,411 2013 11,410 22.33 254,799 2012 2,300 16.76 38,553 2011 2,480 14.49 35,938 MIST Loomis Sayles Global 2015 16,216 20.17 327,025 Markets Investment Division 2014 21,302 19.88 423,380 (Commenced 4/29/2013) 2013 21,834 19.16 418,260 FOR THE YEAR ENDED DECEMBER 31 --------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) -------------- ---------------- ----------------- MIST Clarion Global Real 2015 3.99 0.00 - 0.90 (2.11) - (1.23) Estate Investment Division 2014 1.67 0.00 - 0.90 7.53 - 13.67 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) MIST ClearBridge Aggressive 2015 0.42 0.00 - 0.90 (4.67) - (3.81) Growth Investment Division 2014 0.19 0.00 - 0.90 18.05 - 19.12 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 MIST Harris Oakmark 2015 3.22 0.00 - 0.90 (5.17) - (4.31) International Investment 2014 2.49 0.00 - 0.90 (6.37) - (5.52) Division 2013 2.71 0.00 - 0.90 29.63 - 30.80 2012 1.82 0.00 - 0.90 28.31 - 29.47 2011 0.03 0.00 - 0.90 (14.75) - (13.98) MIST Invesco Balanced-Risk 2015 3.22 0.00 (4.20) Allocation Investment 2014 -- 0.00 5.58 Division 2013 -- 0.00 1.86 (Commenced 4/30/2012) 2012 0.66 0.00 4.67 MIST Invesco Mid Cap Value 2015 0.71 0.00 - 0.90 (9.57) - (8.76) Investment Division 2014 0.70 0.00 - 0.90 8.97 - 9.96 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) MIST Invesco Small Cap 2015 0.13 0.00 - 0.90 (2.30) - (1.42) Growth Investment Division 2014 -- 0.00 - 0.90 7.21 - 8.18 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) MIST JPMorgan Global Active 2015 2.72 0.00 0.89 Allocation Investment 2014 1.11 0.00 6.98 Division 2013 0.06 0.00 10.99 (Commenced 4/30/2012) 2012 1.08 0.00 4.66 MIST JPMorgan Small Cap 2015 1.36 0.00 (7.25) Value Investment Division 2014 0.96 0.00 4.66 2013 0.27 0.00 33.25 2012 0.95 0.00 15.66 2011 1.63 0.00 (10.12) MIST Loomis Sayles Global 2015 2.02 0.00 1.47 Markets Investment Division 2014 2.29 0.00 3.76 (Commenced 4/29/2013) 2013 -- 0.00 17.34
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 ------------------------------------------ UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ----------- -------------- ------------- MIST Lord Abbett Bond 2015 925,846 24.99 - 39.03 27,650,595 Debenture Investment 2014 941,028 25.70 - 39.77 28,665,010 Division 2013 1,003,912 24.67 - 37.84 29,124,114 2012 1,063,203 23.01 - 34.98 28,515,095 2011 1,085,311 20.52 - 30.90 25,730,993 MIST Met/Templeton 2015 12,955 14.16 183,501 International Bond 2014 11,790 14.75 173,865 Investment Division 2013 5,967 14.54 86,776 (Commenced 4/30/2012) 2012 181 14.36 2,605 MIST MetLife Asset 2015 1,092,776 16.63 - 178.03 20,442,577 Allocation 100 2014 1,096,717 17.06 - 181.68 20,893,340 Investment Division 2013 1,065,070 16.36 - 172.88 19,271,452 (Commenced 5/2/2011) 2012 1,085,674 12.72 - 133.49 15,142,596 2011 1,049,786 10.97 - 114.35 12,472,661 MIST MetLife Balanced Plus 2015 20,231 12.89 260,693 Investment Division 2014 17,529 13.43 235,501 (Commenced 4/30/2012) 2013 7,685 12.25 94,166 2012 4,287 10.71 45,933 MIST MetLife Multi-Index 2015 1,099 123.86 136,087 Targeted Risk 2014 968 125.38 121,407 Investment Division 2013 23 114.75 2,679 (Commenced 4/29/2013) MIST MetLife Small Cap Value 2015 36,056 22.24 802,028 Investment Division 2014 36,751 23.52 864,243 2013 41,430 23.12 957,820 2012 50,513 17.46 881,737 2011 54,483 14.79 806,051 MIST MFS Emerging Markets 2015 44,390 10.18 - 16.30 538,485 Equity Investment Division 2014 36,263 11.79 - 18.91 521,123 (Commenced 5/2/2011) 2013 21,705 12.57 272,836 2012 6,737 13.20 88,957 2011 2,070 11.09 22,950 MIST MFS Research 2015 988,508 16.63 - 19.61 18,155,763 International Investment 2014 1,025,165 16.93 - 19.91 19,140,390 Division 2013 1,065,499 18.19 - 21.34 21,367,741 2012 920,691 15.26 - 17.85 15,720,813 2011 820,338 13.07 - 15.26 12,176,899 MIST Morgan Stanley Mid Cap 2015 10,144,421 9.16 - 25.71 212,581,898 Growth Investment Division 2014 10,592,901 9.62 - 27.00 233,885,326 2013 11,170,989 9.50 - 26.66 244,413,959 2012 11,831,703 6.82 - 19.14 186,491,111 2011 12,356,734 6.22 - 17.47 178,350,417 FOR THE YEAR ENDED DECEMBER 31 --------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) -------------- ---------------- ----------------- MIST Lord Abbett Bond 2015 5.75 0.00 - 0.90 (2.75) - (1.87) Debenture Investment 2014 5.82 0.00 - 0.90 4.18 - 5.12 Division 2013 6.78 0.00 - 0.90 7.20 - 8.17 2012 7.24 0.00 - 0.90 12.17 - 13.19 2011 5.96 0.00 - 0.90 3.89 - 4.83 MIST Met/Templeton 2015 8.56 0.00 (3.95) International Bond 2014 4.66 0.00 1.41 Investment Division 2013 0.68 0.00 1.27 (Commenced 4/30/2012) 2012 -- 0.00 8.00 MIST MetLife Asset 2015 1.53 0.00 - 0.90 (2.55) - (1.67) Allocation 100 2014 0.90 0.00 - 0.90 4.29 - 5.24 Investment Division 2013 0.93 0.00 - 0.90 28.61 - 29.77 (Commenced 5/2/2011) 2012 0.85 0.00 - 0.90 (0.17) - 3.96 2011 -- 0.00 - 0.90 (13.94) - (10.95) MIST MetLife Balanced Plus 2015 1.99 0.00 (4.09) Investment Division 2014 1.67 0.00 9.65 (Commenced 4/30/2012) 2013 1.11 0.00 14.36 2012 -- 0.00 5.63 MIST MetLife Multi-Index 2015 1.12 0.00 (1.21) Targeted Risk 2014 -- 0.00 9.26 Investment Division 2013 0.24 0.00 6.63 (Commenced 4/29/2013) MIST MetLife Small Cap Value 2015 0.09 0.00 (5.41) Investment Division 2014 0.04 0.00 1.72 2013 1.08 0.00 32.45 2012 -- 0.00 17.99 2011 0.92 0.00 (8.98) MIST MFS Emerging Markets 2015 1.94 0.00 (13.81) - (13.66) Equity Investment Division 2014 0.62 0.00 (6.23) - (3.93) (Commenced 5/2/2011) 2013 0.98 0.00 (4.80) 2012 1.57 0.00 19.10 2011 -- 0.00 (22.19) MIST MFS Research 2015 2.89 0.00 - 0.90 (2.38) - (1.50) International Investment 2014 2.35 0.00 - 0.90 (7.57) - (6.74) Division 2013 2.53 0.00 - 0.90 18.51 - 19.58 2012 2.10 0.00 - 0.90 15.92 - 16.97 2011 2.07 0.00 - 0.90 (11.23) - (10.44) MIST Morgan Stanley Mid Cap 2015 -- 0.00 - 0.90 (5.64) - (4.78) Growth Investment Division 2014 0.06 0.00 - 0.90 0.38 - 1.29 2013 0.79 0.00 - 0.90 38.06 - 39.30 2012 -- 0.00 - 0.90 8.57 - 9.55 2011 0.73 0.00 - 0.90 (7.50) - (6.67)
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 (%) ----------- -------------- ------------ ------------- ---------------- ---------------- MIST Oppenheimer Global 2015 1,549,994 30.10 - 35.65 49,473,104 1.19 0.00 - 0.90 3.24 - 4.18 Equity Investment Division 2014 1,580,006 29.15 - 34.22 48,430,521 1.02 0.00 - 0.90 1.49 - 2.41 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) MIST PanAgora Global 2015 10 0.99 10 1.18 0.00 (5.48) Diversified Risk Investment Division (Commenced 4/28/2014 and began transactions in 2015) MIST PIMCO Inflation 2015 691,385 11.53 - 17.37 10,147,547 5.15 0.00 - 0.90 (3.78) - (2.91) Protected Bond Investment 2014 747,392 11.87 - 17.89 11,277,978 1.83 0.00 - 0.90 2.25 - 3.18 Division 2013 755,274 11.51 - 17.34 11,213,500 2.44 0.00 - 0.90 (9.80) - (8.98) 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 MIST PIMCO Total Return 2015 2,027,593 12.18 - 22.51 44,320,248 5.43 0.00 - 0.90 (0.61) - 0.28 Investment Division 2014 2,149,016 12.14 - 22.45 46,980,970 2.56 0.00 - 0.90 3.55 - 4.49 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 MIST Pioneer Fund 2015 8,256 21.42 176,804 1.23 0.00 0.06 Investment Division 2014 10,521 21.40 225,164 1.65 0.00 11.16 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) MIST Pyramis Managed Risk 2015 31 116.50 3,609 0.73 0.00 (1.25) Investment Division 2014 13 117.98 1,575 -- 0.00 8.64 (Commenced 4/29/2013) 2013 3 108.59 298 1.24 0.00 7.52 MIST Schroders Global 2015 29,697 1.27 37,661 1.19 0.00 (0.88) Multi-Asset Investment 2014 24,844 1.28 31,786 1.35 0.00 7.74 Division 2013 19,086 1.19 22,665 0.01 0.00 10.11 (Commenced 4/30/2012) 2012 5,334 1.08 5,752 1.48 0.00 6.68 MIST SSGA Growth and Income 2015 470,354 14.87 - 17.22 7,641,743 2.54 0.00 - 0.90 (2.65) - (1.77) ETF Investment Division 2014 467,656 15.28 - 17.53 7,718,022 2.44 0.00 - 0.90 5.19 - 6.14 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 MIST SSGA Growth ETF 2015 421,872 14.43 - 17.03 6,711,219 2.26 0.00 - 0.90 (2.92) - (2.04) Investment Division 2014 398,249 14.87 - 17.38 6,445,663 1.97 0.00 - 0.90 4.74 - 5.69 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)
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 ($) ASSETS ($) ----------- -------------- ------------ MIST T. Rowe Price Large Cap 2015 117,032 17.34 2,029,557 Value Investment Division 2014 133,581 17.94 2,395,891 2013 128,280 15.79 2,025,987 2012 112,114 11.78 1,320,515 2011 108,604 9.96 1,081,554 MIST T. Rowe Price Mid Cap 2015 1,508,551 20.13 - 33.67 34,019,234 Growth Investment Division 2014 1,478,700 19.01 - 31.56 31,233,141 2013 1,482,938 16.97 - 27.99 27,748,656 2012 1,544,904 12.50 - 20.49 21,145,655 2011 1,957,835 11.07 - 18.03 25,204,627 MIST WMC Large Cap 2015 9,969,725 15.20 - 64.50 404,612,655 Research Investment Division 2014 10,583,026 14.53 - 62.18 412,427,190 2013 11,184,832 12.78 - 55.10 385,342,945 2012 11,913,338 9.54 - 41.30 307,558,825 2011 12,762,727 8.43 - 36.66 291,615,739 MSF Baillie Gifford 2015 2,482,793 13.02 - 19.69 38,861,610 International Stock 2014 2,569,893 13.28 - 20.09 41,212,522 Investment Division 2013 2,695,199 13.71 - 20.73 44,856,340 2012 2,785,901 11.92 - 17.95 40,399,665 2011 2,947,427 10.02 - 15.01 35,919,561 MSF Barclays Aggregate Bond 2015 5,819,142 18.54 - 22.11 126,951,477 Index Investment Division 2014 6,012,506 18.66 - 22.06 130,875,542 2013 5,904,440 17.79 - 20.85 121,423,866 2012 5,528,875 18.38 - 21.34 116,415,557 2011 5,367,889 17.85 - 20.54 108,763,587 MSF BlackRock Bond Income 2015 2,840,523 21.46 - 101.64 78,353,726 Investment Division 2014 3,018,880 21.34 - 101.04 82,796,372 2013 3,164,737 19.93 - 94.36 81,249,803 2012 3,286,524 20.08 - 95.09 85,513,325 2011 3,448,815 18.67 - 88.42 84,065,205 MSF BlackRock Capital 2015 409,612 16.58 - 66.72 10,225,796 Appreciation Investment 2014 414,973 15.60 - 62.78 9,736,331 Division 2013 1,238,069 14.32 - 57.65 20,880,180 2012 1,083,757 10.67 - 42.95 14,012,099 2011 533,802 9.33 - 37.56 7,367,810 MSF BlackRock Large Cap 2015 921,609 17.97 - 20.32 18,418,261 Value Investment Division 2014 943,466 19.29 - 21.62 20,080,783 2013 952,777 17.71 - 19.67 18,457,575 2012 972,398 13.53 - 14.89 14,290,950 2011 1,036,664 11.95 - 13.03 13,313,052 MSF BlackRock Money Market 2015 1,386,934 16.89 - 17.98 24,684,237 Investment Division 2014 1,682,938 17.04 - 17.98 30,032,793 2013 1,334,062 17.19 - 17.98 23,781,879 2012 1,306,002 17.35 - 17.98 23,274,454 2011 1,163,332 17.51 - 17.98 20,783,208 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MIST T. Rowe Price Large Cap 2015 1.72 0.00 (3.31) Value Investment Division 2014 1.47 0.00 13.57 2013 1.68 0.00 34.09 2012 1.62 0.00 18.27 2011 0.51 0.00 (3.77) MIST T. Rowe Price Mid Cap 2015 -- 0.00 - 0.90 5.92 - 6.88 Growth Investment Division 2014 -- 0.00 - 0.90 12.03 - 13.04 2013 0.40 0.00 - 0.90 35.73 - 36.96 2012 -- 0.00 - 0.90 12.90 - 13.93 2011 -- 0.00 - 0.90 (2.28) - (1.39) MIST WMC Large Cap 2015 0.95 0.00 - 0.90 3.74 - 4.67 Research Investment Division 2014 0.93 0.00 - 0.90 12.85 - 13.87 2013 1.41 0.00 - 0.90 33.40 - 34.60 2012 1.21 0.00 - 0.90 12.66 - 13.68 2011 1.12 0.00 - 0.90 (0.36) - 0.54 MSF Baillie Gifford 2015 1.72 0.00 - 0.90 (2.85) - (1.97) International Stock 2014 1.42 0.00 - 0.90 (3.97) - (3.10) Investment Division 2013 1.61 0.00 - 0.90 14.51 - 15.54 2012 1.37 0.00 - 0.90 18.44 - 19.52 2011 1.77 0.00 - 0.90 (20.59) - (19.87) MSF Barclays Aggregate Bond 2015 2.91 0.00 - 0.90 (0.64) - 0.25 Index Investment Division 2014 2.97 0.00 - 0.90 4.86 - 5.81 2013 3.51 0.00 - 0.90 (3.20) - (2.33) 2012 3.71 0.00 - 0.90 2.97 - 3.90 2011 3.52 0.00 - 0.90 6.55 - 7.51 MSF BlackRock Bond Income 2015 3.81 0.00 - 0.90 (0.31) - 0.59 Investment Division 2014 3.45 0.00 - 0.90 6.13 - 7.08 2013 3.96 0.00 - 0.90 (1.66) - (0.77) 2012 2.69 0.00 - 0.90 6.58 - 7.55 2011 3.92 0.00 - 0.90 5.61 - 6.56 MSF BlackRock Capital 2015 -- 0.00 - 0.90 5.33 - 6.28 Appreciation Investment 2014 0.06 0.00 - 0.90 7.92 - 8.90 Division 2013 0.83 0.00 - 0.90 33.02 - 34.22 2012 0.31 0.00 - 0.90 13.34 - 14.37 2011 0.19 0.00 - 0.90 (9.76) - (8.94) MSF BlackRock Large Cap 2015 1.81 0.00 - 0.90 (6.83) - (5.99) Value Investment Division 2014 1.25 0.00 - 0.90 8.94 - 9.92 2013 1.36 0.00 - 0.90 30.87 - 32.05 2012 1.63 0.00 - 0.90 13.25 - 14.28 2011 1.11 0.00 - 0.90 1.43 - 2.35 MSF BlackRock Money Market 2015 -- 0.00 - 0.90 (0.89) - 0.00 Investment Division 2014 -- 0.00 - 0.90 (0.90) - 0.00 2013 -- 0.00 - 0.90 (0.90) - 0.00 2012 -- 0.00 - 0.90 (0.90) - 0.00 2011 -- 0.00 - 0.90 (0.89) - 0.00
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 Frontier Mid Cap Growth 2015 6,492,334 28.02 - 106.80 227,974,826 -- 0.00 - 0.90 1.96 - 2.88 Investment Division 2014 6,861,561 27.24 - 103.81 235,559,690 -- 0.00 - 0.90 10.14 - 11.14 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) MSF Jennison Growth 2015 935,827 12.41 - 27.39 24,295,178 0.27 0.00 - 0.90 9.79 - 10.78 Investment Division 2014 975,379 11.20 - 24.72 22,860,613 0.26 0.00 - 0.90 8.08 - 9.06 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 MSF Loomis Sayles Small Cap 2015 72,870 26.65 - 590.28 23,094,886 0.16 0.00 - 0.90 (2.38) - (1.50) Core Investment Division 2014 78,544 27.05 - 599.24 24,891,171 0.04 0.00 - 0.90 2.83 - 3.76 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 MSF Loomis Sayles Small Cap 2015 515,373 19.27 - 21.99 11,185,851 -- 0.00 - 0.90 0.82 - 1.73 Growth Investment Division 2014 532,728 19.12 - 21.62 11,372,609 -- 0.00 - 0.90 0.32 - 1.22 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 MSF Met/Artisan Mid Cap 2015 159,896 26.22 - 378.15 53,555,874 1.18 0.00 - 0.90 (10.25) - (9.44) Value Investment Division 2014 171,419 29.03 - 417.58 62,265,623 0.72 0.00 - 0.90 1.01 - 1.93 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 MSF MetLife Asset 2015 307,157 15.19 - 162.67 5,434,761 2.26 0.00 - 0.90 (1.12) - (0.23) Allocation 20 Investment 2014 311,182 15.36 - 163.63 5,533,722 3.93 0.00 - 0.90 3.79 - 4.73 Division 2013 302,268 14.80 - 156.63 5,157,553 3.17 0.00 - 0.90 3.57 - 4.50 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 MSF MetLife Asset 2015 510,437 15.95 - 170.73 9,648,019 0.47 0.00 - 0.90 (1.67) - (0.78) Allocation 40 Investment 2014 537,152 16.22 - 172.58 9,972,600 3.00 0.00 - 0.90 4.22 - 5.16 Division 2013 528,645 15.56 - 164.48 9,308,532 2.71 0.00 - 0.90 10.20 - 11.20 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 MSF MetLife Asset 2015 2,828,639 16.50 - 176.84 50,967,639 0.73 0.00 - 0.90 (1.87) - (0.99) Allocation 60 Investment 2014 2,946,636 16.81 - 179.11 53,734,760 2.27 0.00 - 0.90 4.35 - 5.29 Division 2013 2,959,238 16.11 - 170.50 51,411,065 2.13 0.00 - 0.90 17.23 - 18.29 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) MSF MetLife Asset 2015 5,108,404 16.81 - 180.25 93,610,979 0.53 0.00 - 0.90 (2.38) - (1.50) Allocation 80 Investment 2014 5,267,738 17.22 - 18.78 98,075,582 1.82 0.00 - 0.90 4.59 - 5.53 Division 2013 5,304,870 16.46 - 17.80 93,658,356 1.65 0.00 - 0.90 23.40 - 24.51 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)
223 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 MetLife Mid Cap Stock 2015 2,505,060 29.58 - 34.00 83,672,129 Index Investment Division 2014 2,603,842 30.57 - 34.82 89,174,913 2013 3,096,714 28.17 - 31.80 96,112,727 2012 2,971,386 21.35 - 23.88 69,807,817 2011 3,140,839 18.32 - 20.31 62,847,615 MSF MetLife Stock Index 2015 30,734,692 21.92 - 98.16 960,107,143 Investment Division 2014 31,845,594 21.66 - 97.03 986,064,717 2013 33,504,283 19.11 - 85.59 926,254,934 2012 35,058,600 14.48 - 64.83 739,806,231 2011 36,301,700 12.50 - 56.01 668,626,167 MSF MFS Total Return 2015 489,178 18.00 - 97.75 9,806,863 Investment Division 2014 495,079 18.19 - 97.90 9,964,116 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 MSF MFS Value Investment 2015 3,455,842 21.68 - 31.88 82,376,165 Division 2014 3,651,820 21.71 - 31.93 87,234,542 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 MSF MSCI EAFE Index 2015 4,684,375 12.59 - 18.52 76,534,999 Investment Division 2014 4,721,774 12.84 - 18.72 77,801,016 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 MSF Neuberger Berman 2015 3,271,086 27.34 - 31.42 101,297,663 Genesis Investment Division 2014 3,467,583 27.43 - 31.24 106,824,598 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 MSF Russell 2000 Index 2015 2,183,522 22.82 - 34.50 68,161,805 Investment Division 2014 2,260,930 24.05 - 36.04 73,667,200 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 MSF T. Rowe Price Large Cap 2015 3,109,875 20.70 - 33.99 87,850,152 Growth Investment Division 2014 3,259,625 18.86 - 30.68 83,295,035 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 MSF T. Rowe Price Small Cap 2015 2,691,919 35.84 - 43.14 107,313,520 Growth Investment Division 2014 2,818,717 35.21 - 42.00 109,708,317 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 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MSF MetLife Mid Cap Stock 2015 1.16 0.00 - 0.90 (3.23) - (2.35) Index Investment Division 2014 1.02 0.00 - 0.90 8.51 - 9.49 2013 1.15 0.00 - 0.90 31.96 - 33.15 2012 0.99 0.00 - 0.90 16.54 - 17.60 2011 0.90 0.00 - 0.90 (2.77) - (1.89) MSF MetLife Stock Index 2015 1.74 0.00 - 0.90 0.26 - 1.17 Investment Division 2014 1.66 0.00 - 0.90 12.35 - 13.36 2013 1.82 0.00 - 0.90 30.84 - 32.02 2012 1.76 0.00 - 0.90 14.72 - 15.76 2011 1.66 0.00 - 0.90 0.93 - 1.84 MSF MFS Total Return 2015 2.59 0.00 - 0.90 (1.05) - (0.16) Investment Division 2014 2.33 0.00 - 0.90 7.67 - 8.64 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 MSF MFS Value Investment 2015 2.71 0.00 - 0.90 (1.05) - (0.15) Division 2014 1.68 0.00 - 0.90 9.82 - 10.81 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 MSF MSCI EAFE Index 2015 3.19 0.00 - 0.90 (1.98) - (1.09) Investment Division 2014 2.52 0.00 - 0.90 (6.85) - (6.00) 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) MSF Neuberger Berman 2015 0.43 0.00 - 0.90 (0.32) - 0.58 Genesis Investment Division 2014 0.39 0.00 - 0.90 (0.89) - 0.01 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 MSF Russell 2000 Index 2015 1.21 0.00 - 0.90 (5.13) - (4.27) Investment Division 2014 1.14 0.00 - 0.90 4.10 - 5.04 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) MSF T. Rowe Price Large Cap 2015 0.14 0.00 - 0.90 9.79 - 10.78 Growth Investment Division 2014 0.06 0.00 - 0.90 8.11 - 9.09 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) MSF T. Rowe Price Small Cap 2015 0.14 0.00 - 0.90 1.79 - 2.71 Growth Investment Division 2014 0.02 0.00 - 0.90 5.95 - 6.91 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
224 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 Van Eck Global Natural 2015 1,703 101.94 173,650 Resources Investment 2014 1,164 151.34 176,178 Division 2013 916 185.99 170,365 (Commenced 5/2/2011) 2012 319 167.46 53,423 2011 81 162.89 13,179 MSF Western Asset Management 2015 964,462 22.85 - 41.19 24,996,181 Strategic Bond Opportunities 2014 989,244 23.46 - 41.91 26,015,238 Investment Division 2013 1,022,252 22.45 - 39.73 25,366,442 2012 1,037,022 22.40 - 39.30 25,456,035 2011 1,068,823 20.28 - 35.25 23,536,888 MSF Western Asset 2015 870,402 16.14 - 25.36 15,860,627 Management 2014 904,420 16.19 - 25.22 16,386,046 U.S. Government 2013 935,377 15.89 - 24.53 16,494,249 Investment Division 2012 936,357 16.15 - 24.71 16,622,548 2011 957,065 15.77 - 23.91 16,435,798 MSF WMC Balanced 2015 8,029,813 23.81 - 96.36 299,841,089 Investment Division 2014 8,541,626 23.21 - 93.94 312,335,178 2013 9,093,665 21.00 - 84.97 302,812,153 2012 9,597,280 17.41 - 70.46 266,981,783 2011 10,223,668 15.50 - 62.70 255,554,192 MSF WMC Core Equity 2015 1,224,975 21.37 - 70.61 72,522,716 Opportunities Investment 2014 1,304,591 20.87 - 68.96 75,552,945 Division 2013 1,389,950 18.87 - 62.33 72,729,703 2012 1,511,861 14.11 - 46.62 58,219,352 2011 1,569,723 12.50 - 41.31 53,650,792 Oppenheimer VA Main 2015 290 33.88 9,828 Street Small Cap 2014 140 36.01 5,052 Investment Division (Commenced 4/28/2008 and began transactions in 2014) PIMCO VIT All Asset 2015 9,368 11.72 109,756 Investment Division 2014 70,102 12.87 902,397 (Commenced 5/2/2011) 2013 72,143 12.81 924,295 2012 10,325 12.78 131,919 2011 8,649 11.12 96,138 PIMCO VIT 2015 1,395 7.32 10,211 Commodity RealReturn 2014 3,576 9.85 35,230 Strategy Investment Division 2013 479 12.08 5,783 (Commenced 4/29/2013) PIMCO VIT Low Duration 2015 65,525 12.59 824,924 Investment Division 2014 123,927 12.55 1,555,287 2013 126,188 12.44 1,570,296 2012 79,088 12.46 985,514 2011 80,364 11.77 946,008 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ---------------- MSF Van Eck Global Natural 2015 0.52 0.00 (32.64) Resources Investment 2014 0.49 0.00 (18.63) Division 2013 0.61 0.00 14.17 (Commenced 5/2/2011) 2012 -- 0.00 2.80 2011 -- 0.00 (22.34) MSF Western Asset Management 2015 5.11 0.00 - 0.90 (2.60) - (1.72) Strategic Bond Opportunities 2014 5.30 0.00 - 0.90 4.53 - 5.47 Investment Division 2013 4.98 0.00 - 0.90 0.19 - 1.09 2012 3.61 0.00 - 0.90 10.49 - 11.50 2011 5.05 0.00 - 0.90 5.19 - 6.14 MSF Western Asset 2015 2.30 0.00 - 0.90 (0.33) - 0.57 Management 2014 1.93 0.00 - 0.90 1.89 - 2.81 U.S. Government 2013 2.13 0.00 - 0.90 (1.63) - (0.74) Investment Division 2012 2.09 0.00 - 0.90 2.44 - 3.37 2011 1.49 0.00 - 0.90 4.56 - 5.51 MSF WMC Balanced 2015 1.96 0.00 - 0.90 1.66 - 2.58 Investment Division 2014 1.99 0.00 - 0.90 9.56 - 10.55 2013 2.46 0.00 - 0.90 19.51 - 20.59 2012 2.28 0.00 - 0.90 11.36 - 12.38 2011 2.43 0.00 - 0.90 2.87 - 3.81 MSF WMC Core Equity 2015 1.78 0.00 - 0.90 1.48 - 2.40 Opportunities Investment 2014 0.70 0.00 - 0.90 9.64 - 10.63 Division 2013 1.37 0.00 - 0.90 32.50 - 33.70 2012 0.83 0.00 - 0.90 11.85 - 12.86 2011 1.15 0.00 - 0.90 (4.89) - (4.03) Oppenheimer VA Main 2015 0.84 0.00 (5.90) Street Small Cap 2014 -- 0.00 11.93 Investment Division (Commenced 4/28/2008 and began transactions in 2014) PIMCO VIT All Asset 2015 2.33 0.00 (8.99) Investment Division 2014 5.22 0.00 0.47 (Commenced 5/2/2011) 2013 9.56 0.00 0.27 2012 5.69 0.00 10.96 2011 3.04 0.00 (3.47) PIMCO VIT 2015 5.76 0.00 (25.70) Commodity RealReturn 2014 0.40 0.00 (18.42) Strategy Investment Division 2013 -- 0.00 (7.98) (Commenced 4/29/2013) PIMCO VIT Low Duration 2015 3.11 0.00 0.31 Investment Division 2014 1.13 0.00 0.85 2013 1.45 0.00 0.21 2012 1.91 0.00 5.86 2011 1.68 0.00 1.11
225 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 (%) ----------- -------------- ------------ ------------- ---------------- --------------- Pioneer VCT Mid Cap Value 2015 713 65.14 46,440 0.78 0.00 (6.14) Investment Division 2014 1,012 69.40 70,257 0.82 0.00 15.09 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) Putnam VT International 2015 239 23.87 5,695 1.37 0.00 (2.00) Value Investment Division 2014 239 24.36 5,820 1.40 0.00 (9.49) (Commenced 4/28/2008 and 2013 239 26.91 6,428 -- 0.00 22.21 began transactions in 2013) Royce Micro-Cap 2015 465 17.52 8,139 -- 0.00 (12.46) Investment Division 2014 417 20.01 8,336 -- 0.00 (3.58) 2013 374 20.76 7,757 0.01 0.00 20.99 2012 21,685 17.16 372,006 -- 0.00 7.60 2011 19,473 15.94 310,463 2.46 0.00 (12.10) Royce Small-Cap 2015 2,698 20.01 53,973 0.87 0.00 (11.80) Investment Division 2014 2,265 22.68 51,371 0.01 0.00 3.24 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) UIF Emerging Markets Debt 2015 27,569 33.22 915,935 5.42 0.00 (1.12) Investment Division 2014 23,590 33.60 792,559 6.39 0.00 2.93 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 UIF Emerging Markets Equity 2015 176,970 12.58 2,225,571 0.83 0.00 (10.69) Investment Division 2014 150,699 14.08 2,122,051 0.29 0.00 (4.49) 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) Wells Fargo VT Total Return 2015 14,068 17.03 239,613 1.33 0.00 0.13 Bond Investment Division 2014 59,676 17.01 1,015,053 1.33 0.00 5.59 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
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. 226 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, 2015 and 2014 and for the Years Ended December 31, 2015, 2014 and 2013: 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........................................................................... 48 Note 7 -- Closed Block.......................................................................... 55 Note 8 -- Investments........................................................................... 59 Note 9 -- Derivatives........................................................................... 84 Note 10 -- Fair Value........................................................................... 98 Note 11 -- Goodwill............................................................................. 119 Note 12 -- Long-term and Short-term Debt........................................................ 121 Note 13 -- Equity............................................................................... 124 Note 14 -- Other Expenses....................................................................... 131 Note 15 -- Employee Benefit Plans............................................................... 132 Note 16 -- Income Tax........................................................................... 142 Note 17 -- Contingencies, Commitments and Guarantees............................................ 146 Note 18 -- Quarterly Results of Operations (Unaudited).......................................... 156 Note 19 -- Related Party Transactions........................................................... 157 Note 20 -- Subsequent Events.................................................................... 157 Financial Statement Schedules at December 31, 2015 and 2014 and for the Years Ended December 31, 2015, 2014 and 2013: Schedule I -- Consolidated Summary of Investments -- Other Than Investments in Related Parties...... 159 Schedule III -- Consolidated Supplementary Insurance Information.................................... 160 Schedule IV -- Consolidated Reinsurance............................................................. 162
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, 2015 and 2014, 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, 2015. 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, 2015 and 2014, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2015, 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 24, 2016 2 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Balance Sheets December 31, 2015 and 2014 (In millions, except share and per share data)
2015 2014 ----------- ----------- Assets Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $168,361 and $173,604, respectively; includes $103 and $160, respectively, relating to variable interest entities)................... $ 175,686 $ 188,911 Equity securities available-for-sale, at estimated fair value (cost: $1,985 and $1,926, respectively)............. 1,949 2,065 Trading and fair value option securities, at estimated fair value (includes $404 and $654, respectively, of actively traded securities; and $13 and $15, respectively, relating to variable interest entities)..... 431 705 Mortgage loans (net of valuation allowances of $257 and $258, respectively; includes $314 and $308, respectively, under the fair value option)................ 53,722 49,059 Policy loans................................................ 8,134 8,491 Real estate and real estate joint ventures (includes $0 and $8, respectively, relating to variable interest entities; includes $42 and $78, respectively, of real estate held-for-sale)..................................... 6,008 7,874 Other limited partnership interests (includes $27 and $34, respectively, relating to variable interest entities)..... 4,088 4,926 Short-term investments, principally at estimated fair value............................................... 5,595 4,474 Other invested assets (includes $43 and $56, respectively, relating to variable interest entities)................... 16,869 14,209 ----------- ----------- Total investments......................................... 272,482 280,714 Cash and cash equivalents, principally at estimated fair value (includes $1 and $2, respectively, relating to variable interest entities)................................. 4,651 1,993 Accrued investment income (includes $1 and $3, respectively, relating to variable interest entities)....... 2,250 2,293 Premiums, reinsurance and other receivables (includes $2 and $2, respectively, relating to variable interest entities)................................................... 23,722 23,439 Deferred policy acquisition costs and value of business acquired.................................................... 6,043 5,975 Current income tax recoverable............................... 36 -- Other assets (includes $3 and $4, respectively, relating to variable interest entities)................................. 4,397 4,469 Separate account assets...................................... 135,939 139,335 ----------- ----------- Total assets............................................. $ 449,520 $ 458,218 =========== =========== Liabilities and Equity Liabilities Future policy benefits....................................... $ 118,914 $ 117,402 Policyholder account balances................................ 94,420 95,902 Other policy-related balances................................ 7,201 5,840 Policyholder dividends payable............................... 624 615 Policyholder dividend obligation............................. 1,783 3,155 Payables for collateral under securities loaned and other transactions................................................ 21,937 24,167 Short-term debt.............................................. 100 100 Long-term debt (includes $61 and $91, respectively, at estimated fair value, relating to variable interest entities)................................................... 1,715 2,027 Current income tax payable................................... -- 44 Deferred income tax liability................................ 2,888 3,835 Other liabilities (includes $2 and $17, respectively, relating to variable interest entities)..................... 32,755 33,447 Separate account liabilities................................. 135,939 139,335 ----------- ----------- Total liabilities........................................ 418,276 425,869 ----------- ----------- Contingencies, Commitments and Guarantees (Note 17) 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.................................. 14,444 14,448 Retained earnings........................................... 13,738 12,470 Accumulated other comprehensive income (loss)............... 2,685 5,034 ----------- ----------- Total Metropolitan Life Insurance Company stockholder's equity................................................... 30,872 31,957 Noncontrolling interests..................................... 372 392 ----------- ----------- Total equity............................................. 31,244 32,349 ----------- ----------- Total liabilities and equity............................. $ 449,520 $ 458,218 =========== ===========
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, 2015, 2014 and 2013 (In millions)
2015 2014 2013 ---------- ---------- ---------- Revenues Premiums......................................................... $ 21,934 $ 21,384 $ 20,475 Universal life and investment-type product policy fees........... 2,584 2,466 2,363 Net investment income............................................ 11,577 11,893 11,785 Other revenues................................................... 1,536 1,808 1,699 Net investment gains (losses): Other-than-temporary impairments on fixed maturity securities.................................................... (49) (16) (81) Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss).............. (5) (10) (47) Other net investment gains (losses)............................. 313 169 176 ---------- ---------- ---------- Total net investment gains (losses)........................... 259 143 48 Net derivative gains (losses)................................... 881 1,037 (1,070) ---------- ---------- ---------- Total revenues.............................................. 38,771 38,731 35,300 ---------- ---------- ---------- Expenses Policyholder benefits and claims................................. 24,527 23,855 23,032 Interest credited to policyholder account balances............... 2,183 2,174 2,253 Policyholder dividends........................................... 1,264 1,240 1,205 Other expenses................................................... 6,258 6,071 5,988 ---------- ---------- ---------- Total expenses.............................................. 34,232 33,340 32,478 ---------- ---------- ---------- Income (loss) from continuing operations before provision for income tax..................................................... 4,539 5,391 2,822 Provision for income tax expense (benefit)....................... 1,782 1,532 681 ---------- ---------- ---------- Income (loss) from continuing operations, net of income tax...... 2,757 3,859 2,141 Income (loss) from discontinued operations, net of income tax.... -- (3) 1 ---------- ---------- ---------- Net income (loss)................................................ 2,757 3,856 2,142 Less: Net income (loss) attributable to noncontrolling interests. -- (5) (7) ---------- ---------- ---------- Net income (loss) attributable to Metropolitan Life Insurance Company........................................................ $ 2,757 $ 3,861 $ 2,149 ========== ========== ==========
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, 2015, 2014 and 2013 (In millions)
2015 2014 2013 ---------- ---------- ---------- Net income (loss).................................................... $ 2,757 $ 3,856 $ 2,142 Other comprehensive income (loss): Unrealized investment gains (losses), net of related offsets........ (4,434) 4,165 (3,337) Unrealized gains (losses) on derivatives............................ 559 1,288 (691) Foreign currency translation adjustments............................ (101) (44) 22 Defined benefit plans adjustment.................................... 342 (1,001) 1,191 ---------- ---------- ---------- Other comprehensive income (loss), before income tax................. (3,634) 4,408 (2,815) Income tax (expense) benefit related to items of other comprehensive income (loss)...................................................... 1,285 (1,532) 965 ---------- ---------- ---------- Other comprehensive income (loss), net of income tax................. (2,349) 2,876 (1,850) ---------- ---------- ---------- Comprehensive income (loss).......................................... 408 6,732 292 Less: Comprehensive income (loss) attributable to noncontrolling interest, net of income tax........................................ -- (5) (7) ---------- ---------- ---------- Comprehensive income (loss) attributable to Metropolitan Life Insurance Company.................................................. $ 408 $ 6,737 $ 299 ========== ========== ==========
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, 2015, 2014 and 2013 (In millions)
Accumulated Total Additional Other Metropolitan Life Common Paid-in Retained Comprehensive Insurance Company Noncontrolling Total Stock Capital Earnings Income (Loss) Stockholder's Equity Interests Equity ------ ---------- -------- ------------- -------------------- -------------- -------- Balance at December 31, 2012....... $ 5 $ 14,510 $ 8,631 $ 4,008 $ 27,154 $ 292 $ 27,446 Capital contributions from MetLife, Inc...................... 3 3 3 Excess tax benefits related to stock-based compensation.......... 2 2 2 Dividends paid to MetLife, Inc..... (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...................... 4 4 4 Returns of capital................. (76) (76) (76) Excess tax benefits related to stock-based compensation.......... 5 5 5 Dividends paid to MetLife, Inc..... (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 Capital contributions from MetLife, Inc...................... 4 4 4 Returns of capital................. (11) (11) (11) Excess tax benefits related to stock-based compensation.......... 3 3 3 Dividends paid to MetLife, Inc..... (1,489) (1,489) (1,489) Change in equity of noncontrolling interests......................... -- (20) (20) Net income (loss).................. 2,757 2,757 2,757 Other comprehensive income (loss), net of income tax................. (2,349) (2,349) (2,349) --- -------- -------- ------- -------- ----- -------- Balance at December 31, 2015....... $ 5 $ 14,444 $ 13,738 $ 2,685 $ 30,872 $ 372 $ 31,244 === ======== ======== ======= ======== ===== ========
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, 2015, 2014 and 2013 (In millions)
2015 2014 2013 ---------- ---------- ---------- Cash flows from operating activities Net income (loss)...................................................................... $ 2,757 $ 3,856 $ 2,142 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization expenses............................................... 474 460 429 Amortization of premiums and accretion of discounts associated with investments, net. (848) (664) (738) (Gains) losses on investments and from sales of businesses, net...................... (259) (138) (49) (Gains) losses on derivatives, net................................................... (426) (902) 1,059 (Income) loss from equity method investments, net of dividends or distributions...... 320 374 195 Interest credited to policyholder account balances................................... 2,183 2,174 2,253 Universal life and investment-type product policy fees............................... (2,584) (2,466) (2,363) Change in trading and fair value option securities................................... 278 2 25 Change in accrued investment income.................................................. 113 242 108 Change in premiums, reinsurance and other receivables................................ (135) 711 (368) Change in deferred policy acquisition costs and value of business acquired, net...... 260 271 (82) Change in income tax................................................................. 257 229 334 Change in other assets............................................................... 763 465 471 Change in insurance-related liabilities and policy-related balances.................. 2,628 2,672 3,032 Change in other liabilities.......................................................... (499) (1,086) (381) Other, net........................................................................... (16) 1 (7) ---------- ---------- ---------- Net cash provided by (used in) operating activities.................................... 5,266 6,201 6,060 ---------- ---------- ---------- Cash flows from investing activities Sales, maturities and repayments of: Fixed maturity securities............................................................ 82,744 63,068 71,396 Equity securities.................................................................... 651 186 206 Mortgage loans....................................................................... 11,189 11,605 10,655 Real estate and real estate joint ventures........................................... 2,734 976 87 Other limited partnership interests.................................................. 1,185 375 449 Purchases of: Fixed maturity securities............................................................ (76,594) (69,256) (70,760) Equity securities.................................................................... (694) (173) (461) Mortgage loans....................................................................... (16,268) (14,769) (12,032) Real estate and real estate joint ventures........................................... (823) (1,876) (1,427) Other limited partnership interests.................................................. (668) (773) (675) Cash received in connection with freestanding derivatives.............................. 1,039 740 560 Cash paid in connection with freestanding derivatives.................................. (1,012) (1,050) (1,171) 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............................................................. 357 (70) (57) Net change in short-term investments................................................... (1,117) 1,472 900 Net change in other invested assets.................................................... (603) (254) (460) Net change in property, equipment and leasehold improvements........................... 23 (140) (76) Other, net............................................................................. -- 17 -- ---------- ---------- ---------- Net cash provided by (used in) investing activities.................................... $ 2,143 $ (10,433) $ (2,866) ---------- ---------- ----------
See accompanying notes to the consolidated financial statements. 7 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) -- (continued) Consolidated Statements of Cash Flows For the Years Ended December 31, 2015, 2014 and 2013 (In millions)
2015 2014 2013 --------- --------- --------- Cash flows from financing activities Policyholder account balances: Deposits................................................................................. $ 60,216 $ 54,902 $ 50,018 Withdrawals.............................................................................. (61,248) (51,210) (52,020) Net change in payables for collateral under securities loaned and other transactions....... (2,230) 3,071 (1,365) Net change in short-term debt.............................................................. -- (320) 75 Long-term debt issued...................................................................... 907 4 481 Long-term debt repaid...................................................................... (673) (390) (27) Cash received in connection with redeemable noncontrolling interests....................... -- -- 774 Cash paid in connection with noncontrolling interests...................................... (159) -- -- Dividends paid to MetLife, Inc............................................................. (1,489) (708) (1,428) Returns of capital......................................................................... (11) -- -- Other, net................................................................................. (64) (222) (5) --------- --------- --------- Net cash provided by (used in) financing activities........................................ (4,751) 5,127 (3,497) --------- --------- --------- Change in cash and cash equivalents........................................................ 2,658 895 (303) Cash and cash equivalents, beginning of year............................................... 1,993 1,098 1,401 --------- --------- --------- Cash and cash equivalents, end of year..................................................... $ 4,651 $ 1,993 $ 1,098 ========= ========= ========= Supplemental disclosures of cash flow information Net cash paid (received) for: Interest................................................................................. $ 123 $ 150 $ 152 ========= ========= ========= Income tax............................................................................... $ 1,217 $ 1,304 $ 822 ========= ========= ========= Non-cash transactions: Capital contributions from MetLife, Inc.................................................. $ 4 $ 4 $ 3 ========= ========= ========= Fixed maturity securities received in connection with pension risk transfer transactions. $ 903 $ -- $ -- ========= ========= ========= Deconsolidation of real estate investment vehicles (1): Reduction of redeemable noncontrolling interests........................................ $ -- $ 774 $ -- ========= ========= ========= Reduction of long-term debt............................................................. $ 543 $ 413 $ -- ========= ========= ========= Reduction of real estate and real estate joint ventures................................. $ 389 $ 1,132 $ -- ========= ========= ========= Increase in noncontrolling interests.................................................... $ 153 $ -- $ -- ========= ========= ========= 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............................................. $ -- $ -- $ -- ========= ========= =========
-------- (1)For the year ended December 31, 2015, amounts represent the impact of the consolidation of a real estate investment vehicle, offset by the subsequent deconsolidation of such real estate investment vehicle. See Note 8 for information on the 2014 amounts. 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. (MetLife, Inc., together with its subsidiaries and affiliates, "MetLife"). 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 on 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 adopted new guidance regarding reporting of discontinued operations for disposals or classifications as held-for-sale that have not been previously reported on 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. Generally, the assets of the separate accounts cannot be used to settle the 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; . investments are directed by the contractholder; and . all investment performance, net of contract fees and assessments, is passed through to the contractholder. 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) 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 on 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 on the statements of operations. Reclassifications Certain amounts in the prior years' consolidated financial statements and related footnotes thereto have been reclassified to conform with the current year presentation as discussed throughout the Notes to the Consolidated Financial Statements. 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 ----------------------------------------------------------------------------------------- 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 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) 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. 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 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 relate to contracts 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. 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) 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 policyholder account balances 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, policyholder dividends left on deposit and obligations assumed under structured settlement assignments. The liability for policy and contract claims generally relates to incurred but not reported death, disability, long-term care and dental claims, as well as claims which have been reported but not yet settled. The 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. See Note 4 for additional information on obligations assumed under structured settlement assignments. Recognition of Insurance Revenues and Deposits Premiums related to traditional life and annuity contracts 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. 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) 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 policyholder account balances. 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 policyholder account balances. 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 . 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. 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) DAC and VOBA are amortized as follows: Products: In proportion to the following over estimated lives of the contracts: ------------------------------------------------------------------------------ . Nonparticipating and Actual and expected future gross non-dividend-paying traditional 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. Amortization of DAC and VOBA is included in other expenses. 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 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 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) 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. 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). 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) 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 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. 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) 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 ("FVO") securities are stated at estimated fair value and include investments that are actively purchased and sold ("Actively traded securities") and investments for which the FVO has been elected ("FVO securities"). 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 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. Also included in mortgage loans 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. 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 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) 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 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. 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) 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. . Annuities funding structured settlement claims represent annuities funding claims assumed by the Company in its capacity as a structured settlements assignment company. The annuities are stated at their contract value, which represents the present value of the future periodic claim payments to be provided. The net investment income recognized reflects the amortization of discount of the annuity at its implied effective interest rate. See Note 4. . 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 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. . Investment in an operating joint venture that engages in insurance underwriting activities accounted for under the equity method. 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. Securities loaned under such transactions may be sold or re-pledged by the transferee. 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 on 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 throughout the duration of the loan. Income and expenses associated with securities lending transactions are reported as investment income and investment expense, respectively, within net investment income. 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) Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company's balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated 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 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 estimated 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 on 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 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) 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 on the balance sheet 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 statement 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 on the balance sheet 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). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, 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 estimated fair value with changes in estimated 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. 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) Such embedded derivatives are carried on the balance sheet 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. Employee Benefit Plans The Company sponsors and administers various qualified and nonqualified 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 each of its defined pension and postretirement benefit plans, measured as the difference between the fair value of plan assets and the benefit obligation, which is the projected benefit obligation ("PBO") for pension benefits and the accumulated postretirement benefit obligation ("APBO") for other postretirement benefits in other assets or other liabilities. Actuarial gains and losses result from differences between the actual experience and the assumed experience on plan assets or PBO during a particular period and are recorded in accumulated OCI ("AOCI"). To the extent such gains and losses exceed 10% of the greater of the PBO or the estimated fair value of plan assets, the excess is amortized into net periodic benefit costs over the average projected future service years of the active employees. In addition, prior service costs (credit) are recognized in AOCI at the time of the amendment and then amortized to net periodic benefit costs over the average projected future service years of the active employees affected by the change. 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) Net periodic benefit costs are determined using management estimates and actuarial assumptions and are comprised of service cost, interest cost, settlement and curtailment costs, expected return on plan assets, amortization of net actuarial (gains) losses, and amortization of prior service costs (credit). Fair value is used to determine the expected return on plan assets. 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 on the balance sheets. 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 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) 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 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, the effect of changes in tax laws, tax regulations, or interpretations of such laws or regulations, is recognized in net income tax expense (benefit) in the period of change. 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 expense. 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 on the Company's financial statements. Other Accounting Policies Stock-Based Compensation Stock-based compensation recognized on 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. 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) 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 2015, 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 non-substantive. 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. 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 $1.2 billion and $1.3 billion at December 31, 2015 and 2014, respectively. Accumulated depreciation and amortization of property, equipment and leasehold improvements was $720 million and $721 million at December 31, 2015 and 2014, respectively. Related depreciation and amortization expense was $159 million, $123 million and $115 million for the years ended December 31, 2015, 2014 and 2013, 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 $1.4 billion and $1.2 billion at December 31, 2015 and 2014, respectively. Accumulated amortization of capitalized software was $1.0 billion and $882 million at December 31, 2015 and 2014, respectively. Related amortization expense was $150 million, $145 million and $144 million for the years ended December 31, 2015, 2014 and 2013, 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. 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) 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. 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 revenues and expenses 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. 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. 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) 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 consolidated 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. 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 consolidated 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 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) 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. Future Adoption of New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued new guidance on leasing transactions (Accounting Standards Update ("ASU") 2016-02, Leases -- Topic 842). The new guidance is effective for the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and requires a modified retrospective transition approach which includes a number of optional practical expedients. Early adoption is permitted. The new guidance requires a lessee to recognize assets and liabilities for leases with lease terms of more than twelve months. Consistent with current guidance, leases would be classified as finance or operating leases. However, unlike current guidance, the new guidance will require both types of leases to be recognized on the balance sheet. Lessor accounting will remain largely unchanged from current guidance except for certain targeted changes. The new guidance will also require new qualitative and quantitative disclosures. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In January 2016, the FASB issued new guidance (ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities) on the recognition and measurement of financial instruments. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted for the instrument-specific credit risk provision. The new guidance changes the current accounting guidance related to (i) the classification and measurement of certain equity investments, (ii) the presentation of changes in the fair value of financial liabilities measured under the FVO that are due to instrument-specific credit risk, and (iii) certain disclosures associated with the fair value of financial instruments. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In May 2015, the FASB issued new guidance on short-duration insurance contracts (ASU 2015-09, Financial Services -- Insurance (Topic 944): Disclosures about Short-Duration Contracts). The amendments in this new guidance are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. The new guidance should be applied retrospectively by providing comparative disclosures for each period presented, except for those requirements that apply only to the current period. The new guidance requires insurance entities to provide users of financial statements with more 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) transparent information about initial claim estimates and subsequent adjustments to these estimates, including information on: (i) reconciling from the claim development table to the balance sheet liability, (ii) methodologies and judgments in estimating claims, and (iii) the timing, and frequency of claims. The adoption will not have an impact on the Company's consolidated financial statements other than expanded disclosures in Note 4. In May 2015, the FASB issued new guidance on fair value measurement (ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)), effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years and which should be applied retrospectively to all periods presented. Earlier application is permitted. The amendments in this ASU remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using NAV per share (or its equivalent) practical expedient. In addition, the amendments remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The adoption of this new guidance will not have a material impact on the Company's consolidated financial statements. In April 2015, the FASB issued new guidance on accounting for fees paid in a cloud computing arrangement (ASU 2015-05, Intangibles -- Goodwill and Other -- Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement), effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the new guidance is permitted and an entity can elect to adopt the guidance either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. The new guidance provides that all software licenses included in cloud computing arrangements be accounted for consistent with other licenses of intangible assets. However, if a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract, the accounting for which did not change. The adoption of this new guidance will not have a material impact on the Company's consolidated financial statements. In February 2015, the FASB issued certain amendments to the consolidation analysis to improve consolidation guidance for legal entities (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 this 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 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 for fiscal years beginning after December 15, 2016 and interim periods within those years and should be applied retrospectively. In August 2015, the FASB amended the guidance to defer the effective date by one year, effective for the fiscal years beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. 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 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) 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. 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. On January 12, 2016, MetLife, Inc. announced its plan to pursue the separation of a substantial portion of its Retail segment, which is organized into two U.S. businesses, Life & Other and Annuities, as well as certain portions of its Corporate Benefit Funding segment and Corporate & Other (the "Separation"). See Note 20. In the first quarter of 2015, the Company implemented certain segment reporting changes related to the measurement of segment operating earnings, which included revising the Company's capital allocation methodology. These changes were applied retrospectively and did not have an impact on total consolidated operating earnings or net income. 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 U.S. 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 coverages. In addition, the Group, Voluntary & Worksite Benefits segment offers long-term care, critical illness, vision 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 contracts 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 nonqualified benefit programs for executives. 30 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 2. Segment Information (continued) 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), 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. direct business, comprised of group and individual products sold through sponsoring organizations, affinity groups and direct to consumer. Additionally, Corporate & Other includes the elimination of intersegment amounts, which generally relate to intersegment loans, which bear interest rates commensurate with related borrowings. 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 accounting 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 investment hedge adjustments which represent earned income on derivatives 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. 31 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 2. Segment Information (continued) 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 earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances 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. In the first quarter of 2015, the Company implemented certain segment reporting changes related to the measurement of segment operating earnings, which included revising the Company's capital allocation methodology. Consequently, prior period results for the years ended December 31, 2014 and 2013 were impacted as follows: . Retail's operating earnings increased (decreased) by $145 million and $74 million, net of ($49) million and ($49) million of income tax expense (benefit), respectively; . Group, Voluntary & Worksite Benefits' operating earnings increased (decreased) by ($19) million and ($38) million, net of ($13) million and ($21) million of income tax expense (benefit), respectively; . Corporate Benefit Funding's operating earnings increased (decreased) by ($60) million and ($57) million, net of ($41) million and ($25) million of income tax expense (benefit), respectively; and . Corporate & Other's operating earnings increased (decreased) by ($66) million and $21 million, net of $103 million and $95 million of income tax expense (benefit), respectively. 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, 2015, 2014 and 2013 and at December 31, 2015 and 2014. 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's and the Company's business. MetLife's economic capital model, coupled with considerations of local capital requirements, 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 32 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 2. Segment Information (continued) include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types. MetLife'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.
Operating Results ------------------------------------------------------------ Group, Voluntary Corporate & Worksite Benefit Corporate Total Year Ended December 31, 2015 Retail Benefits Funding & Other Total Adjustments Consolidated ------------------------------------- ---------- ----------- ---------- ---------- ----------- ----------- ------------ (In millions) Revenues Premiums............................. $ 4,115 $ 14,699 $ 3,004 $ 116 $ 21,934 $ -- $ 21,934 Universal life and investment-type product policy fees................. 1,543 740 201 -- 2,484 100 2,584 Net investment income................ 5,269 1,825 4,901 38 12,033 (456) 11,577 Other revenues....................... 156 441 287 652 1,536 -- 1,536 Net investment gains (losses)........ -- -- -- -- -- 259 259 Net derivative gains (losses)........ -- -- -- -- -- 881 881 ---------- ----------- ---------- ---------- ----------- ---------- ----------- Total revenues..................... 11,083 17,705 8,393 806 37,987 784 38,771 ---------- ----------- ---------- ---------- ----------- ---------- ----------- Expenses Policyholder benefits and claims and policyholder dividends.............. 6,547 13,974 5,126 80 25,727 64 25,791 Interest credited to policyholder account balances.................... 955 151 1,073 -- 2,179 4 2,183 Capitalization of DAC................ (449) (12) (19) (2) (482) -- (482) Amortization of DAC and VOBA......... 579 32 20 (1) 630 112 742 Interest expense on debt............. 3 -- 4 115 122 -- 122 Other expenses....................... 1,873 2,246 474 1,280 5,873 3 5,876 ---------- ----------- ---------- ---------- ----------- ---------- ----------- Total expenses..................... 9,508 16,391 6,678 1,472 34,049 183 34,232 ---------- ----------- ---------- ---------- ----------- ---------- ----------- Provision for income tax expense (benefit)........................... 479 488 596 10 1,573 209 1,782 ---------- ----------- ---------- ---------- ----------- ----------- Operating earnings................... $ 1,096 $ 826 $ 1,119 $ (676) 2,365 ========== =========== ========== ========== Adjustments to: Total revenues..................... 784 Total expenses..................... (183) Provision for income tax (expense) benefit................. (209) ----------- Income (loss) from continuing operations, net of income tax....... $ 2,757 $ 2,757 =========== ===========
33 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 2. Segment Information (continued)
Group, Voluntary Corporate & Worksite Benefit Corporate At December 31, 2015 Retail Benefits Funding & Other Total --------------------------------------- ---------- ---------- ------------ --------- ---------- (In millions) Total assets............................ $ 176,776 $ 43,770 $ 201,251 $ 27,723 $ 449,520 Separate account assets................. $ 56,377 $ 638 $ 78,924 $ -- $ 135,939 Separate account liabilities............ $ 56,377 $ 638 $ 78,924 $ -- $ 135,939
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................ 5,451 1,785 4,777 352 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..................... 11,467 17,297 8,049 1,156 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....................... 1,750 2,169 478 1,258 5,655 (6) 5,649 ---------- ---------- --------- --------- ---------- --------- ---------- Total expenses..................... 9,283 16,158 6,266 1,466 33,173 167 33,340 ---------- ---------- --------- --------- ---------- --------- ---------- Provision for income tax expense (benefit)........................... 684 417 618 (397) 1,322 210 1,532 ---------- ---------- --------- --------- ---------- ---------- Operating earnings................... $ 1,500 $ 722 $ 1,165 $ 87 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 ========== ==========
34 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 2. Segment Information (continued)
Group, Voluntary Corporate & Worksite Benefit Corporate At December 31, 2014 Retail Benefits Funding & Other Total ----------------------------- ---------- ---------- ---------- --------- ---------- (In millions) Total assets................. $ 181,207 $ 43,718 $ 203,281 $ 30,012 $ 458,218 Separate account assets...... $ 59,710 $ 669 $ 78,956 $ -- $ 139,335 Separate account liabilities. $ 59,710 $ 669 $ 78,956 $ -- $ 139,335
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................ 5,395 1,766 4,516 540 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..................... 11,112 16,590 7,675 1,310 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....................... 2,265 2,023 476 1,341 6,105 31 6,136 ---------- ---------- --------- --------- ---------- ---------- ---------- Total expenses..................... 9,434 15,376 6,295 1,542 32,647 (169) 32,478 ---------- ---------- --------- --------- ---------- ---------- ---------- Provision for income tax expense (benefit)........................... 530 425 487 (326) 1,116 (435) 681 ---------- ---------- --------- --------- ---------- ---------- Operating earnings................... $ 1,148 $ 789 $ 893 $ 94 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 ========== ==========
35 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 2. Segment Information (continued) 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, ----------------------- 2015 2014 2013 ------- ------- ------- (In millions) Life insurance............................... $13,811 $13,865 $13,482 Accident & health insurance.................. 7,475 7,247 6,873 Annuities.................................... 4,548 4,352 4,007 Non-insurance................................ 220 194 175 ------- ------- ------- Total...................................... $26,054 $25,658 $24,537 ======= ======= =======
Substantially all of the Company's consolidated premiums, universal life and investment-type product policy fees and other revenues originated in the U.S. Revenues derived from one Group, Voluntary & Worksite Benefits customer were $2.7 billion, $2.8 billion and $2.5 billion for the years ended December 31, 2015, 2014 and 2013, respectively, which represented 10%, 11% and 10%, 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, 2015, 2014 and 2013. 3. Dispositions In December 2014, Metropolitan Life Insurance Company distributed to MetLife, Inc., 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, policyholder account balances and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at:
December 31, ------------------- 2015 2014 --------- --------- (In millions) Retail....................................... $ 92,618 $ 91,868 Group, Voluntary & Worksite Benefits......... 29,670 28,805 Corporate Benefit Funding.................... 97,719 97,953 Corporate & Other............................ 528 518 --------- --------- Total...................................... $ 220,535 $ 219,144 ========= =========
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 payments. Interest rate assumptions annuitization used in establishing such liabilities range from 2% to 11%. ------------------------------------------------------------------------ Non-medical health The net level premium method and insurance 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 2% to 8%. Participating business represented 5% of the Company's life insurance in-force at both December 31, 2015 and 2014. Participating policies represented 27%, 27% and 28% of gross traditional life insurance premiums for the years ended December 31, 2015, 2014 and 2013, respectively. Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments; and (ii) credited interest, ranging from less than 1% to 13%, less expenses, mortality charges and withdrawals. 37 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 4. Insurance (continued) Guarantees The Company issues variable annuity products with guaranteed minimum benefits. GMABs, the non-life-contingent portion of GMWBs and the portion of certain GMIBs that does not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 9. Guarantees accounted for as insurance liabilities include: ------------------------------------------------------------------------------ Guarantee: Measurement Assumptions: ------------------------------------------------------------------------------ GMDBs . A return of purchase payment . Present value of expected death upon death even if the account benefits in excess of the value is reduced to zero. projected account balance 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 available for an additional fee. those used 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 determined at the time of benefits in excess of the issuance of the variable projected account balance at annuity contract, a minimum any future date of accumulation of purchase annuitization and recognizing payments, even if the account the excess ratably over the value is reduced to zero, that accumulation period based on can be annuitized to receive a present value of total expected monthly income stream that is assessments. not less than a specified amount. . Certain contracts also provide . Assumptions are consistent with for a guaranteed lump sum those used for estimating GMDB return of purchase premium in liabilities. 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 partial withdrawals, even if contingent payments and the account value is reduced to expected assessments using zero, provided that cumulative assumptions consistent with withdrawals in a contract year those used for estimating the do not exceed a certain limit. GMDB liabilities. . Certain contracts include guaranteed with- drawals that are life contingent. ------------------------------------------------------------------------------ 38 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 4. Insurance (continued) The Company also issues other 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. 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 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, 2013......... $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 Incurred guaranteed benefits....... 37 80 86 9 212 Paid guaranteed benefits........... (1) -- -- -- (1) ---- ----- ---- --- ------ Balance at December 31, 2015....... $232 $ 538 $627 $91 $1,488 ==== ===== ==== === ====== Ceded Balance at January 1, 2013......... $ 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 Incurred guaranteed benefits....... 14 2 49 6 71 Paid guaranteed benefits........... (1) -- -- -- (1) ---- ----- ---- --- ------ Balance at December 31, 2015....... $ 50 $ 26 $354 $63 $ 493 ==== ===== ==== === ======
39 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 4. Insurance (continued)
Universal and Variable Annuity Contracts Life Contracts ----------------- --------------------- Secondary Paid-Up GMDBs GMIBs Guarantees Guarantees Total -------- -------- ---------- ---------- -------- (In millions) Net Balance at January 1, 2013......... $ 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 Incurred guaranteed benefits....... 23 78 37 3 141 Paid guaranteed benefits........... -- -- -- -- -- -------- -------- -------- ------- -------- Balance at December 31, 2015....... $ 182 $ 512 $ 273 $ 28 $ 995 ======== ======== ======== ======= ========
-------- (1) See Note 6. Information regarding the Company's guarantee exposure, which includes direct business, but excludes offsets from hedging or reinsurance, if any, was as follows at:
December 31, --------------------------------------------------------------- 2015 2014 ----------------------------- ----------------------------- In the At In the At Event of Death Annuitization Event of Death Annuitization -------------- ------------- -------------- ------------- (In millions) Annuity Contracts (1) Variable Annuity Guarantees Total account value (2)................. $ 59,858 $ 27,648 $ 62,810 $ 29,474 Separate account value.................. $ 48,216 $ 26,530 $ 51,077 $ 28,347 Net amount at risk...................... $ 1,698 (3) $ 379 (4) $ 702 (3) $ 244 (4) Average attained age of contractholders. 65 years 63 years 65 years 63 years Other Annuity Guarantees Total account value (2)................. N/A $ 406 N/A $ 456 Net amount at risk...................... N/A $ 144 (5) N/A $ 153 (5) Average attained age of contractholders. N/A 56 years N/A 55 years
40 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 4. Insurance (continued)
December 31, ----------------------------------------------- 2015 2014 ----------------------- ----------------------- Secondary Paid-Up Secondary Paid-Up Guarantees Guarantees Guarantees Guarantees ----------- ----------- ----------- ----------- (In millions) Universal and Variable Life Contracts (1) Total account value (2)................... $ 8,166 $ 1,052 $ 8,213 $ 1,091 Net amount at risk (6).................... $ 75,994 $ 7,658 $ 78,758 $ 8,164 Average attained age of policyholders..... 55 years 61 years 54 years 60 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. (2)Includes the contractholder's investments in the general account and separate account, if applicable. (3)Defined as the death benefit less the total 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. (4)Defined as the amount (if any) that would be required to be added to the total 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. (5)Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company's potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date. (6)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. Account balances of contracts with guarantees were invested in separate account asset classes as follows at:
December 31, ------------------- 2015 2014 --------- --------- (In millions) Fund Groupings: Equity......... $ 23,701 $ 24,995 Balanced....... 21,082 22,759 Bond........... 4,454 4,561 Money Market... 132 150 --------- --------- Total........ $ 49,369 $ 52,465 ========= =========
41 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 4. Insurance (continued) Obligations Assumed Under Structured Settlement Assignments The Company assumes structured settlement claim obligations as an assignment company. These liabilities are measured at the present value of the periodic claims to be provided and reported as other policy-related balances. The Company receives a fee for assuming these claim obligations and, as the assignee of the claim, is legally obligated to ensure periodic payments are made to the claimant. The Company purchases annuities from affiliates to fund these periodic payment claim obligations and designates payments to be made directly to the claimant by the affiliated annuity writer. These annuities funding structured settlement claims are recorded as an investment. See Note 1. See Note 8 for additional information on obligations assumed under structured settlement assignments. 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, 2015, 2014 and 2013, the Company issued $35.1 billion, $36.7 billion and $26.8 billion, respectively, and repaid $35.5 billion, $31.7 billion and $25.1 billion, respectively, of such funding agreements. At December 31, 2015 and 2014, liabilities for funding agreements outstanding, which are included in policyholder account balances, were $29.5 billion and $30.3 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, ------------------- 2015 2014 --------- --------- (In millions) FHLB of NY......... $ 666 $ 661 FHLB of Des Moines. $ 40 $ 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 policyholder account balances. Information related to such funding agreements was as follows at:
Liability Collateral ------------------------ --------------------- December 31, ---------------------------------------------- 2015 2014 2015 2014 ------------ ----------- --------- ------- (In millions) FHLB of NY (1)......... $ 12,570 $ 12,570 $ 14,085 (2) $15,255 (2) Farmer Mac (3)......... $ 2,550 $ 2,550 $ 2,643 $ 2,932 FHLB of Des Moines (1). $ 750 $ 1,000 $ 851 (2) $ 1,141 (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, 42 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 4. Insurance (continued) 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. 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, ---------------------------- 2015 2014 2013 -------- -------- -------- (In millions) Balance at January 1,......... $ 7,310 $ 7,022 $ 6,826 Less: Reinsurance recoverables............... 286 290 301 -------- -------- -------- Net balance at January 1,..... 7,024 6,732 6,525 -------- -------- -------- Incurred related to: Current year................ 5,316 5,099 4,762 Prior years................. 13 -- (12) -------- -------- -------- Total incurred............. 5,329 5,099 4,750 -------- -------- -------- Paid related to: Current year................ (3,415) (3,228) (3,035) Prior years................. (1,684) (1,579) (1,508) -------- -------- -------- Total paid................. (5,099) (4,807) (4,543) -------- -------- -------- Net balance at December 31,... 7,254 7,024 6,732 Add: Reinsurance recoverables............... 273 286 290 -------- -------- -------- Balance at December 31,....... $ 7,527 $ 7,310 $ 7,022 ======== ======== ========
Separate Accounts Separate account assets and liabilities include two categories of account types: pass-through separate accounts totaling $79.7 billion and $83.8 billion at December 31, 2015 and 2014, respectively, for which the policyholder 43 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 4. Insurance (continued) 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 $56.2 billion and $55.5 billion at December 31, 2015 and 2014, respectively. The latter category consisted primarily of guaranteed interest contracts. The average interest rate credited on these contracts was 2.40% and 2.25% at December 31, 2015 and 2014, respectively. For the years ended December 31, 2015, 2014 and 2013, there were no investment gains (losses) on transfers of assets from the general account to the separate accounts. 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 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 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) 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 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. 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) 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 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, ---------------------------- 2015 2014 2013 -------- -------- -------- (In millions) DAC Balance at January 1,............................................ $ 5,905 $ 6,338 $ 5,752 Capitalizations.................................................. 482 424 562 Amortization related to: Net investment gains (losses) and net derivative gains (losses). (111) (104) 227 Other expenses.................................................. (624) (583) (478) -------- -------- -------- Total amortization............................................ (735) (687) (251) -------- -------- -------- Unrealized investment gains (losses)............................. 325 (170) 495 Other (1)........................................................ -- -- (220) -------- -------- -------- Balance at December 31,.......................................... 5,977 5,905 6,338 -------- -------- -------- VOBA Balance at January 1,............................................ 70 78 80 Amortization related to: Other expenses.................................................. (7) (8) (10) -------- -------- -------- Total amortization............................................ (7) (8) (10) -------- -------- -------- Unrealized investment gains (losses)............................. 3 -- 8 -------- -------- -------- Balance at December 31,.......................................... 66 70 78 -------- -------- -------- Total DAC and VOBA Balance at December 31,.......................................... $ 6,043 $ 5,975 $ 6,416 ======== ======== ========
-------- (1)The year ended December 31, 2013 includes ($220) million that was reclassified to DAC from other liabilities. The amounts reclassified related to affiliated reinsurance agreements accounted for using the deposit method of accounting and represented 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, ----------------- 2015 2014 -------- -------- (In millions) Retail............................... $ 5,630 $ 5,544 Group, Voluntary & Worksite Benefits. 303 324 Corporate Benefit Funding............ 105 106 Corporate & Other.................... 5 1 -------- -------- Total............................... $ 6,043 $ 5,975 ======== ========
Information regarding other intangibles was as follows:
Years Ended December 31, ------------------------- 2015 2014 2013 ------- ------- ------- (In millions) DSI Balance at January 1,................ $ 122 $ 175 $ 180 Capitalization....................... 8 10 15 Amortization......................... (21) (28) (20) Unrealized investment gains (losses). 21 (35) -- ------- ------- ------- Balance at December 31,.............. $ 130 $ 122 $ 175 ======= ======= ======= VODA and VOCRA Balance at January 1,................ $ 295 $ 325 $ 353 Amortization......................... (30) (30) (28) ------- ------- ------- Balance at December 31,.............. $ 265 $ 295 $ 325 ======= ======= ======= Accumulated amortization............. $ 192 $ 162 $ 132 ======= ======= =======
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) 2016.......................... $ 4 $ 30 2017.......................... $ 6 $ 28 2018.......................... $ 5 $ 26 2019.......................... $ 5 $ 24 2020.......................... $ 5 $ 21
47 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 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 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 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 90% of the fixed annuities issued by certain affiliates and 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 risks 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, 2015 and 2014, 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 $2.4 billion and $2.3 billion of unsecured unaffiliated reinsurance recoverable balances at December 31, 2015 and 2014, respectively. At December 31, 2015, the Company had $5.4 billion of net unaffiliated ceded reinsurance recoverables. Of this total, $4.2 billion, or 78%, were with the Company's five largest unaffiliated ceded reinsurers, including $1.6 billion of net unaffiliated ceded reinsurance recoverables which were unsecured. 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. 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 on the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows:
Years Ended December 31, ------------------------------- 2015 2014 2013 --------- --------- --------- (In millions) Premiums Direct premiums............................................... $ 21,497 $ 20,963 $ 20,290 Reinsurance assumed........................................... 1,679 1,673 1,469 Reinsurance ceded............................................. (1,242) (1,252) (1,284) --------- --------- --------- Net premiums................................................. $ 21,934 $ 21,384 $ 20,475 ========= ========= ========= Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees. $ 3,050 $ 3,029 $ 2,913 Reinsurance assumed........................................... 58 48 41 Reinsurance ceded............................................. (524) (611) (591) --------- --------- --------- Net universal life and investment-type product policy fees... $ 2,584 $ 2,466 $ 2,363 ========= ========= ========= Other revenues Direct other revenues......................................... $ 875 $ 1,040 $ 970 Reinsurance assumed........................................... 5 2 (2) Reinsurance ceded............................................. 656 766 731 --------- --------- --------- Net other revenues........................................... $ 1,536 $ 1,808 $ 1,699 ========= ========= ========= Policyholder benefits and claims Direct policyholder benefits and claims....................... $ 24,541 $ 23,978 $ 23,305 Reinsurance assumed........................................... 1,454 1,416 1,225 Reinsurance ceded............................................. (1,468) (1,539) (1,498) --------- --------- --------- Net policyholder benefits and claims......................... $ 24,527 $ 23,855 $ 23,032 ========= ========= ========= Interest credited to policyholder account balances Direct interest credited to policyholder account balances..... $ 2,240 $ 2,227 $ 2,322 Reinsurance assumed........................................... 33 35 35 Reinsurance ceded............................................. (90) (88) (104) --------- --------- --------- Net interest credited to policyholder account balances....... $ 2,183 $ 2,174 $ 2,253 ========= ========= ========= Other expenses Direct other expenses......................................... $ 5,448 $ 5,132 $ 5,028 Reinsurance assumed........................................... 340 399 427 Reinsurance ceded............................................. 470 540 533 --------- --------- --------- Net other expenses........................................... $ 6,258 $ 6,071 $ 5,988 ========= ========= =========
50 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 6. Reinsurance (continued) The amounts on the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at:
December 31, ------------------------------------------------------------------------------------- 2015 2014 ------------------------------------------ ------------------------------------------ Total Total Balance Balance Direct Assumed Ceded Sheet Direct Assumed Ceded Sheet ---------- --------- --------- ---------- ---------- --------- --------- ---------- (In millions) Assets Premiums, reinsurance and other receivables.......... $ 1,957 $ 667 $ 21,098 $ 23,722 $ 1,711 $ 649 $ 21,079 $ 23,439 Deferred policy acquisition costs and value of business acquired.......... 5,973 458 (388) 6,043 6,002 391 (418) 5,975 ---------- --------- --------- ---------- ---------- --------- --------- ---------- Total assets.............. $ 7,930 $ 1,125 $ 20,710 $ 29,765 $ 7,713 $ 1,040 $ 20,661 $ 29,414 ========== ========= ========= ========== ========== ========= ========= ========== Liabilities Future policy benefits...... $ 116,389 $ 2,530 $ (5) $ 118,914 $ 115,143 $ 2,259 $ -- $ 117,402 Policyholder account balances................... 94,080 340 -- 94,420 95,601 301 -- 95,902 Other policy-related balances................... 6,766 392 43 7,201 5,353 455 32 5,840 Other liabilities........... 10,384 6,843 15,528 32,755 10,350 7,020 16,077 33,447 ---------- --------- --------- ---------- ---------- --------- --------- ---------- Total liabilities......... $ 227,619 $ 10,105 $ 15,566 $ 253,290 $ 226,447 $ 10,035 $ 16,109 $ 252,591 ========== ========= ========= ========== ========== ========= ========= ==========
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 $13.6 billion and $13.8 billion at December 31, 2015 and 2014, respectively. The deposit liabilities on reinsurance were $6.5 billion and $6.8 billion at December 31, 2015 and 2014, respectively. Related Party Reinsurance Transactions The Company has reinsurance agreements with certain MetLife, Inc. 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 on the consolidated statements of operations was as follows:
Years Ended December 31, ------------------------- 2015 2014 2013 ------- ------- ------- (In millions) Premiums Reinsurance assumed.................................... $ 701 $ 681 $ 451 Reinsurance ceded...................................... (40) (36) (45) ------- ------- ------- Net premiums......................................... $ 661 $ 645 $ 406 ======= ======= ======= Universal life and investment-type product policy fees Reinsurance assumed.................................... $ 58 $ 48 $ 40 Reinsurance ceded...................................... (141) (240) (221) ------- ------- ------- Net universal life and investment-type product policy fees......................................... $ (83) $ (192) $ (181) ======= ======= ======= Other revenues Reinsurance assumed.................................... $ 5 $ 2 $ (2) Reinsurance ceded...................................... 607 713 675 ------- ------- ------- Net other revenues................................... $ 612 $ 715 $ 673 ======= ======= ======= Policyholder benefits and claims Reinsurance assumed.................................... $ 652 $ 623 $ 402 Reinsurance ceded...................................... (106) (197) (144) ------- ------- ------- Net policyholder benefits and claims................. $ 546 $ 426 $ 258 ======= ======= ======= Interest credited to policyholder account balances Reinsurance assumed.................................... $ 32 $ 33 $ 31 Reinsurance ceded...................................... (90) (88) (102) ------- ------- ------- Net interest credited to policyholder account balances............................................ $ (58) $ (55) $ (71) ======= ======= ======= Other expenses Reinsurance assumed.................................... $ 245 $ 298 $ 326 Reinsurance ceded...................................... 578 680 653 ------- ------- ------- Net other expenses................................... $ 823 $ 978 $ 979 ======= ======= =======
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 on the consolidated balance sheets was as follows at:
December 31, -------------------------------------- 2015 2014 ------------------ ------------------ Assumed Ceded Assumed Ceded -------- --------- -------- --------- (In millions) Assets Premiums, reinsurance and other receivables............. $ 280 $ 15,466 $ 257 $ 15,453 Deferred policy acquisition costs and value of business acquired.............................................. 439 (193) 370 (231) -------- --------- -------- --------- Total assets........................................... $ 719 $ 15,273 $ 627 $ 15,222 ======== ========= ======== ========= Liabilities Future policy benefits.................................. $ 1,436 $ (5) $ 1,146 $ -- Policyholder account balances........................... 326 -- 288 -- Other policy-related balances........................... 187 43 264 32 Other liabilities....................................... 6,463 13,000 6,610 13,545 -------- --------- -------- --------- Total liabilities...................................... $ 8,412 $ 13,038 $ 8,308 $ 13,577 ======== ========= ======== =========
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 the funds withheld balance by $8 million and $20 million at December 31, 2015 and 2014, respectively. Net derivative gains (losses) associated with these embedded derivatives were $12 million, ($39) million and $40 million for the years ended December 31, 2015, 2014 and 2013, 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 estimated 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 $712 million and $657 million at December 31, 2015 and 2014, respectively. Net derivative gains (losses) associated with the embedded derivatives were $47 million, $497 million and ($1.7) billion for the years ended December 31, 2015, 2014 and 2013, respectively. Certain contractual features of the closed block reinsurance 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 $694 million and $1.1 billion at December 31, 2015 and 2014, respectively. Net derivative gains (losses) associated with the embedded derivative were $404 million, ($389) million and $664 million for the years ended December 31, 2015, 2014 and 2013, 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 53 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 6. Reinsurance (continued) Company 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, captive 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 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. . In January 2014, the Company entered into an agreement with MICC which reinsured all existing New York insurance policies and annuity contracts that include a separate account feature. As a result of this reinsurance agreement, the significant effects to the Company were increases in other invested assets of $192 million, in other liabilities of $572 million and in future policy benefits of $128 million at December 31, 2014. The Company received a one-time payment of cash and cash equivalents and total investments of $494 million from MICC. Certain contractual features of this agreement qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company's consolidated balance sheets. The embedded derivative related to this agreement is included within policyholder account balances and was $4 million at both December 31, 2015 and 2014. Net derivative gains (losses) associated with the embedded derivative were less than ($1) million and ($4) million for the years ended December 31, 2015 and 2014, respectively. . 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. . In November 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 at December 31, 2014. The Company made a one-time payment of cash and cash equivalents to First MetLife of $218 million at December 31, 2014. Certain contractual features of this agreement qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company's consolidated balance sheets. The embedded derivative related to this agreement is included within policyholder account balances and was $122 million and $68 million at December 31, 2015 and 2014, respectively. Net derivative gains (losses) associated with the embedded derivative were ($54) million and ($38) million for the years ended December 31, 2015 and 2014, respectively. 54 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 6. Reinsurance (continued) 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 $2.2 billion and $2.1 billion of unsecured affiliated reinsurance recoverable balances at December 31, 2015 and 2014, 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 at both December 31, 2015 and 2014. The deposit liabilities on affiliated reinsurance were $6.5 billion and $6.7 billion at December 31, 2015 and 2014, respectively. 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 55 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 7. Closed Block (continued) 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. 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. 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 liabilities and assets designated to the closed block was as follows at:
December 31, ---------------------- 2015 2014 ---------- ---------- (In millions) Closed Block Liabilities Future policy benefits................................. $ 41,278 $ 41,667 Other policy-related balances.......................... 249 265 Policyholder dividends payable......................... 468 461 Policyholder dividend obligation....................... 1,783 3,155 Current income tax payable............................. -- 1 Other liabilities...................................... 380 646 ---------- ---------- Total closed block liabilities...................... 44,158 46,195 ---------- ---------- Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value................................ 27,556 29,199 Equity securities available-for-sale, at estimated fair value.......................................... 111 91 Mortgage loans....................................... 6,022 6,076 Policy loans......................................... 4,642 4,646 Real estate and real estate joint ventures........... 462 666 Other invested assets................................ 1,066 1,065 ---------- ---------- Total investments................................... 39,859 41,743 Cash and cash equivalents.............................. 236 227 Accrued investment income.............................. 474 477 Premiums, reinsurance and other receivables............ 56 67 Current income tax recoverable......................... 11 -- Deferred income tax assets............................. 234 289 ---------- ---------- Total assets designated to the closed block......... 40,870 42,803 ---------- ---------- Excess of closed block liabilities over assets designated to the closed block....................... 3,288 3,392 ---------- ---------- Amounts included in AOCI: Unrealized investment gains (losses), net of income tax................................................. 1,382 2,291 Unrealized gains (losses) on derivatives, net of income tax.......................................... 76 28 Allocated to policyholder dividend obligation, net of income tax....................................... (1,159) (2,051) ---------- ---------- Total amounts included in AOCI...................... 299 268 ---------- ---------- Maximum future earnings to be recognized from closed block assets and liabilities......................... $ 3,587 $ 3,660 ========== ==========
57 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, --------------------------------- 2015 2014 2013 ---------- ---------- ---------- (In millions) Balance at January 1,............................. $ 3,155 $ 1,771 $ 3,828 Change in unrealized investment and derivative gains (losses).................................. (1,372) 1,384 (2,057) ---------- ---------- ---------- Balance at December 31,........................... $ 1,783 $ 3,155 $ 1,771 ========== ========== ==========
Information regarding the closed block revenues and expenses was as follows:
Years Ended December 31, --------------------------------- 2015 2014 2013 ---------- ---------- ---------- (In millions) Revenues Premiums.......................................................... $ 1,850 $ 1,918 $ 1,987 Net investment income............................................. 1,982 2,093 2,130 Net investment gains (losses)..................................... (23) 7 25 Net derivative gains (losses)..................................... 27 20 (6) ---------- ---------- ---------- Total revenues................................................... 3,836 4,038 4,136 ---------- ---------- ---------- Expenses Policyholder benefits and claims.................................. 2,564 2,598 2,702 Policyholder dividends............................................ 1,015 988 979 Other expenses.................................................... 143 155 165 ---------- ---------- ---------- Total expenses................................................... 3,722 3,741 3,846 ---------- ---------- ---------- Revenues, net of expenses before provision for income tax expense (benefit)....................................................... 114 297 290 Provision for income tax expense (benefit)........................ 41 104 101 ---------- ---------- ---------- Revenues, net of expenses and provision for income tax expense (benefit)....................................................... $ 73 $ 193 $ 189 ========== ========== ==========
Metropolitan Life Insurance Company charges the closed block with federal income taxes, state and local premium taxes and other 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. 58 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments See Note 10 for information about the fair value hierarchy for investments and the related valuation methodologies. 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 preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including RMBS, commercial mortgage-backed securities ("CMBS") and ABS.
December 31, 2015 December 31, 2014 ------------------------------------------------- ------------------------------------------------- Gross Unrealized Gross Unrealized Cost or --------------------------- Cost or --------------------------- Amortized Temporary OTTI Estimated Amortized Temporary OTTI Estimated Cost Gains Losses Losses Fair Value Cost Gains Losses Losses Fair Value ---------- --------- --------- ------- ---------- ---------- --------- --------- ------- ---------- (In millions) Fixed maturity securities U.S. corporate........... $ 59,305 $ 3,763 $ 1,511 $ -- $ 61,557 $ 59,532 $ 6,246 $ 421 $ -- $ 65,357 U.S. Treasury and agency. 36,183 3,638 128 -- 39,693 34,391 4,698 19 -- 39,070 Foreign corporate........ 27,218 1,005 1,427 1 26,795 28,395 1,934 511 -- 29,818 RMBS..................... 23,195 1,008 252 36 23,915 26,893 1,493 157 66 28,163 State and political subdivision............. 6,070 935 29 2 6,974 5,329 1,197 6 -- 6,520 CMBS..................... 6,547 114 82 -- 6,579 7,705 241 33 -- 7,913 ABS...................... 6,665 40 138 -- 6,567 8,206 102 82 -- 8,226 Foreign government....... 3,178 536 108 -- 3,606 3,153 761 70 -- 3,844 ---------- --------- -------- ------- ---------- ---------- --------- -------- ------- ---------- Total fixed maturity securities............. $ 168,361 $ 11,039 $ 3,675 $ 39 $ 175,686 $ 173,604 $ 16,672 $ 1,299 $ 66 $ 188,911 ========== ========= ======== ======= ========== ========== ========= ======== ======= ========== Equity securities Common stock............. $ 1,298 $ 46 $ 101 $ -- $ 1,243 $ 1,236 $ 142 $ 26 $ -- $ 1,352 Non-redeemable preferred stock................... 687 59 40 -- 706 690 53 30 -- 713 ---------- --------- -------- ------- ---------- ---------- --------- -------- ------- ---------- Total equity securities. $ 1,985 $ 105 $ 141 $ -- $ 1,949 $ 1,926 $ 195 $ 56 $ -- $ 2,065 ========== ========= ======== ======= ========== ========== ========= ======== ======= ==========
59 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) The Company held non-income producing fixed maturity securities with an estimated fair value of $3 million and $6 million with unrealized gains (losses) of less than $1 million and $5 million at December 31, 2015 and 2014, 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. 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, 2015:
Due After Five Due After One Years Total Fixed Due in One Year Through Through Ten Due After Ten Structured Maturity Year or Less Five Years Years Years Securities Securities ------------ ------------- -------------- ------------- ---------- ----------- (In millions) Amortized cost....... $ 6,323 $ 38,390 $ 34,613 $ 52,628 $ 36,407 $ 168,361 Estimated fair value. $ 6,252 $ 39,432 $ 35,000 $ 57,941 $ 37,061 $ 175,686
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. Structured securities (RMBS, CMBS and ABS) 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, 2015 December 31, 2014 ----------------------------------------- ----------------------------------------- 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................ $ 17,480 $ 1,078 $ 2,469 $ 433 $ 8,950 $ 260 $ 2,251 $ 161 U.S. Treasury and agency...... 11,683 125 248 3 3,933 6 982 13 Foreign corporate............. 8,823 669 4,049 759 7,052 397 1,165 114 RMBS.......................... 6,065 158 1,769 130 3,141 63 1,900 160 State and political subdivision.................. 767 26 15 5 26 -- 76 6 CMBS.......................... 2,266 42 509 40 772 20 461 13 ABS........................... 3,211 54 1,817 84 3,147 45 732 37 Foreign government............ 961 91 87 17 327 32 265 38 --------- -------- --------- -------- --------- ------ -------- ------ Total fixed maturity securities................. $ 51,256 $ 2,243 $ 10,963 $ 1,471 $ 27,348 $ 823 $ 7,832 $ 542 ========= ======== ========= ======== ========= ====== ======== ====== Equity securities Common stock.................. $ 182 $ 99 $ 19 $ 2 $ 98 $ 26 $ 1 $ -- Non-redeemable preferred stock 56 2 132 38 32 -- 139 30 --------- -------- --------- -------- --------- ------ -------- ------ Total equity securities...... $ 238 $ 101 $ 151 $ 40 $ 130 $ 26 $ 140 $ 30 ========= ======== ========= ======== ========= ====== ======== ====== Total number of securities in an unrealized loss position.. 4,167 807 1,997 642 ========= ========= ========= ========
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 will more likely than not be required to sell a particular security before the decline in estimated fair value 61 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) 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 entire difference between the perpetual hybrid security's cost and its estimated fair value with a corresponding charge to earnings. 62 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) 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, 2015. Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), 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 increased $2.3 billion during the year ended December 31, 2015 to $3.7 billion. The increase in gross unrealized losses for the year ended December 31, 2015 was primarily attributable to widening credit spreads, an increase in interest rates and, to a lesser extent, the impact of weakening foreign currencies on non-functional currency denominated fixed maturity securities. At December 31, 2015, $271 million of the total $3.7 billion of gross unrealized losses were from 50 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 $271 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, $187 million, or 69%, were related to gross unrealized losses on 27 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 $271 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, $84 million, or 31%, were related to gross unrealized losses on 23 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to U.S. and foreign corporate securities (primarily utility and industrial securities) and non-agency RMBS (primarily alternative residential mortgage loans) 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 lower oil prices in the energy sector and valuations of residential real estate supporting non-agency RMBS. Management evaluates U.S. and foreign corporate 63 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuers and evaluates non-agency RMBS 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 increased $85 million during the year ended December 31, 2015 to $141 million. Of the $141 million, $31 million were from eight securities with gross unrealized losses of 20% or more of cost for 12 months or greater. Of the $31 million, 68% were rated A or better, and all were from financial services industry investment grade non-redeemable preferred stock. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at:
December 31, ---------------------------------------------- 2015 2014 ---------------------- ---------------------- Carrying % of Carrying % of Value Total Value Total ------------- -------- ------------- -------- (In millions) (In millions) Mortgage loans Commercial...................... $ 33,440 62.3% $ 32,482 66.2% Agricultural.................... 11,663 21.7 11,033 22.5 Residential..................... 8,562 15.9 5,494 11.2 ---------- -------- ---------- -------- Subtotal...................... 53,665 99.9 49,009 99.9 Valuation allowances............ (257) (0.5) (258) (0.5) ---------- -------- ---------- -------- Subtotal mortgage loans, net.. 53,408 99.4 48,751 99.4 Residential -- FVO.............. 314 0.6 308 0.6 ---------- -------- ---------- -------- Total mortgage loans, net... $ 53,722 100.0% $ 49,059 100.0% ========== ======== ========== ========
The Company originates and acquires unaffiliated mortgage loans and simultaneously sells a portion to affiliates under master participation agreements. The aggregate amount of unaffiliated mortgage loan participation interests sold by the Company to affiliates during the years ended December 31, 2015, 2014 and 2013 were $3.0 billion, $1.9 billion and $2.3 billion, respectively. In connection with the mortgage loan participations, the Company collected mortgage loan principal and interest payments from unaffiliated borrowers on behalf of affiliates and remitted such receipts to the affiliates in the amount of $1.8 billion, $1.3 billion and $1.8 billion during the years ended December 31, 2015, 2014 and 2013, respectively. Purchases of mortgage loans from third parties were $3.9 billion and $4.7 billion for the years ended December 31, 2015 and 2014, respectively. 64 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) Information on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on residential -- FVO is presented in Note 10. The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment Mortgage loans 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 for Evaluated Individually for Credit Losses Credit Losses Impaired Loans ------------------------------------------------------ -------------------------- ------------------- Impaired Loans with a Valuation Impaired Loans without Allowance a Valuation Allowance ------------------------------- ---------------------- Unpaid Unpaid Average Principal Recorded Valuation Principal Recorded Recorded Valuation Carrying Recorded Balance Investment Allowances Balance Investment Investment Allowances Value Investment --------- ---------- ---------- --------- ---------- ---------- ---------- -------- ---------- (In millions) December 31, 2015 Commercial........ $ -- $ -- $ -- $ 57 $ 57 $ 33,383 $ 165 $ 57 $ 120 Agricultural...... 45 43 3 22 21 11,599 34 61 60 Residential....... -- -- -- 141 131 8,431 55 131 84 ------- ------- ------ ------- ------- ---------- ------- ------ ------- Total........... $ 45 $ 43 $ 3 $ 220 $ 209 $ 53,413 $ 254 $ 249 $ 264 ======= ======= ====== ======= ======= ========== ======= ====== ======= 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 ======= ======= ====== ======= ======= ========== ======= ====== =======
The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $430 million, $151 million and $2 million, respectively, for the year ended December 31, 2013. 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, 2013........................ $ 256 $ 48 $ -- $ 304 Provision (release)............................... (43) 3 19 (21) Charge-offs, net of recoveries.................... -- (11) -- (11) ------- ------ ------- ------- Balance at December 31, 2013...................... 213 40 19 272 Provision (release)............................... (8) (4) 27 15 Charge-offs, net of recoveries.................... (23) (1) (5) (29) ------- ------ ------- ------- Balance at December 31, 2014...................... 182 35 41 258 Provision (release)............................... 2 2 30 34 Charge-offs, net of recoveries.................... (19) -- (16) (35) ------- ------ ------- ------- Balance at December 31, 2015...................... $ 165 $ 37 $ 55 $ 257 ======= ====== ======= =======
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 the values utilized in calculating the ratio are updated annually on a rolling basis, with a portion of the portfolio updated each quarter. In addition, the loan-to-value ratio is routinely updated for all but the lowest risk loans as part of the Company's ongoing review of its commercial mortgage loan portfolio. 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 was 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, 2015 Loan-to-value ratios Less than 65%........ $ 28,828 $ 909 $ 408 $ 30,145 90.2% $ 30,996 90.5% 65% to 75%........... 2,550 138 61 2,749 8.2 2,730 8.0 76% to 80%........... -- -- -- -- -- -- -- Greater than 80%..... 208 115 223 546 1.6 519 1.5 --------- -------- -------- --------- ------ --------- ------ Total.............. $ 31,586 $ 1,162 $ 692 $ 33,440 100.0% $ 34,245 100.0% ========= ======== ======== ========= ====== ========= ====== 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% ========= ======== ======== ========= ====== ========= ======
Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans was as follows at:
December 31, ------------------------------------------- 2015 2014 ---------------------- -------------------- Recorded % of Recorded % of Investment Total Investment Total ------------- -------- ------------- ------ (In millions) (In millions) Loan-to-value ratios Less than 65%........ $ 10,975 94.1% $ 10,462 94.8% 65% to 75%........... 609 5.2 469 4.2 76% to 80%........... 21 0.2 17 0.2 Greater than 80%..... 58 0.5 85 0.8 --------- -------- --------- ------ Total.............. $ 11,663 100.0% $ 11,033 100.0% ========= ======== ========= ======
The estimated fair value of agricultural mortgage loans was $11.9 billion and $11.4 billion at December 31, 2015 and 2014, 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 was as follows at:
December 31, ----------------------------------------- 2015 2014 -------------------- -------------------- Recorded % of Recorded % of Investment Total Investment Total ------------- ------ ------------- ------ (In millions) (In millions) Performance indicators Performing............. $ 8,261 96.5% $ 5,345 97.3% Nonperforming.......... 301 3.5 149 2.7 -------- ------ -------- ------ Total................ $ 8,562 100.0% $ 5,494 100.0% ======== ====== ======== ======
The estimated fair value of residential mortgage loans was $8.8 billion and $5.6 billion at December 31, 2015 and 2014, 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, 2015 and 2014. 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, 2015 December 31, 2014 December 31, 2015 December 31, 2014 ----------------- ----------------- ----------------- ----------------- (In millions) Commercial... $ -- $ -- $ -- $ 75 Agricultural. 103 1 46 41 Residential.. 301 149 301 149 ------ ------ ------ ------ Total...... $ 404 $ 150 $ 347 $ 265 ====== ====== ====== ======
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, 2015 and 2014, 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, leveraged leases, annuities funding structured settlement claims and direct financing leases. See "-- Related Party Investment Transactions" for information regarding loans to affiliates and annuities funding structured settlement claims. Tax Credit Partnerships The carrying value of tax credit partnerships was $1.6 billion at both December 31, 2015 and 2014. Losses from tax credit partnerships included within net investment income were $163 million, $152 million, and $137 million for the years ended December 31, 2015, 2014 and 2013, respectively. Leveraged and Direct Financing Leases Investment in leveraged and direct financing leases consisted of the following at:
December 31, -------------------------------------- 2015 2014 ------------------ ------------------ Direct Direct Leveraged Financing Leveraged Financing Leases Leases Leases Leases --------- --------- --------- --------- (In millions) Rental receivables, net........................ $ 1,238 $ 376 $ 1,320 $ 406 Estimated residual values...................... 755 57 827 57 -------- ------- -------- ------ Subtotal....................................... 1,993 433 2,147 463 Unearned income................................ (615) (159) (686) (178) -------- ------- -------- ------ Investment in leases, net of non-recourse debt.$ 1,378 $ 274 $ 1,461 $ 285 ======== ======= ======== ======
Rental receivables are generally due in periodic installments. The payment periods for leveraged leases generally 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 21 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, 2015 and 2014, all leveraged lease receivables and direct financing rental receivables were performing. The deferred income tax liability related to leveraged leases was $1.3 billion at both December 31, 2015 and 2014. 70 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) The components of income from investments in leveraged and direct financing leases, excluding net investment gains (losses), were as follows:
Years Ended December 31, ----------------------------------------------------------- 2015 2014 2013 ------------------- ------------------- ------------------- Direct Direct Direct Leveraged Financing Leveraged Financing Leveraged Financing Leases Leases Leases Leases Leases Leases --------- --------- --------- --------- --------- --------- (In millions) Income from investment in leases.... $ 48 $ 20 $ 51 $ 19 $ 60 $ 17 Less: Income tax expense on leases.. 17 7 18 7 21 6 ------ ------ ------ ------ ------ ------ Investment income after income tax. $ 31 $ 13 $ 33 $ 12 $ 39 $ 11 ====== ====== ====== ====== ====== ======
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 $3.9 billion and $1.0 billion at December 31, 2015 and 2014, 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. 71 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) The components of net unrealized investment gains (losses), included in AOCI, were as follows:
Years Ended December 31, ----------------------------- 2015 2014 2013 -------- --------- -------- (In millions) Fixed maturity securities.............................................. $ 7,331 $ 15,374 $ 8,521 Fixed maturity securities with noncredit OTTI losses in AOCI........... (39) (66) (149) -------- --------- -------- Total fixed maturity securities....................................... 7,292 15,308 8,372 Equity securities...................................................... 27 173 83 Derivatives............................................................ 2,208 1,649 361 Other.................................................................. 137 87 5 -------- --------- -------- Subtotal.............................................................. 9,664 17,217 8,821 -------- --------- -------- Amounts allocated from: Future policy benefits................................................. (7) (1,964) (610) DAC and VOBA related to noncredit OTTI losses recognized in AOCI....... -- (3) 5 DAC, VOBA and DSI...................................................... (572) (918) (721) Policyholder dividend obligation....................................... (1,783) (3,155) (1,771) -------- --------- -------- Subtotal.............................................................. (2,362) (6,040) (3,097) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI................................................... 14 25 51 Deferred income tax benefit (expense).................................. (2,542) (3,928) (2,070) -------- --------- -------- Net unrealized investment gains (losses)............................ 4,774 7,274 3,705 Net unrealized investment gains (losses) attributable to noncontrolling interests.......................................... (1) (1) (1) -------- --------- -------- Net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company............................. $ 4,773 $ 7,273 $ 3,704 ======== ========= ========
The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows:
Years Ended December 31, --------------------------- 2015 2014 ------------ ------------- (In millions) Balance at January 1,................................... $ (66) $ (149) Noncredit OTTI losses and subsequent changes recognized. 5 10 Securities sold with previous noncredit OTTI loss....... 105 41 Subsequent changes in estimated fair value.............. (83) 32 ------------ ------------- Balance at December 31,................................. $ (39) $ (66) ============ =============
72 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) The changes in net unrealized investment gains (losses) were as follows:
Years Ended December 31, ------------------------------ 2015 2014 2013 --------- -------- --------- (In millions) Balance at January 1,................................................... $ 7,273 $ 3,704 $ 6,339 Fixed maturity securities on which noncredit OTTI losses have been recognized............................................................ 27 83 107 Unrealized investment gains (losses) during the year.................... (7,580) 8,313 (11,205) Unrealized investment gains (losses) relating to: Future policy benefits................................................. 1,957 (1,354) 4,510 DAC and VOBA related to noncredit OTTI losses recognized in AOCI................................................................. 3 (8) (7) DAC, VOBA and DSI...................................................... 346 (197) 510 Policyholder dividend obligation....................................... 1,372 (1,384) 2,057 Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI................................................... (11) (26) (35) Deferred income tax benefit (expense).................................. 1,386 (1,858) 1,428 --------- -------- --------- Net unrealized investment gains (losses)................................ 4,773 7,273 3,704 Net unrealized investment gains (losses) attributable to noncontrolling interests............................................................. -- -- -- --------- -------- --------- Balance at December 31,................................................. $ 4,773 $ 7,273 $ 3,704 ========= ======== ========= Change in net unrealized investment gains (losses)..................... $ (2,500) $ 3,569 $ (2,635) Change in net unrealized investment gains (losses) attributable to noncontrolling interests............................................. -- -- -- --------- -------- --------- Change in net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company................................ $ (2,500) $ 3,569 $ (2,635) ========= ======== =========
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, 2015 and 2014. 73 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) Securities Lending Elements of the securities lending program are presented below at:
December 31, ----------------------- 2015 2014 ----------- ----------- (In millions) Securities on loan: (1) Amortized cost........................................ $ 16,257 $ 19,099 Estimated fair value.................................. $ 17,700 $ 21,185 Cash collateral on deposit from counterparties (2)..... $ 18,053 $ 21,635 Security collateral on deposit from counterparties (3). $ 22 $ 19 Reinvestment portfolio -- estimated fair value......... $ 18,138 $ 22,046
-------- (1)Included within fixed maturity securities and short-term investments. (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 on the consolidated financial statements. The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:
December 31, 2015 ------------------------------------------------------------------------ Remaining Tenor of Securities Lending Agreements --------------------------------------------------- Open (1) 1 Month or Less 1 to 6 Months Total % of Total -------- --------------- ------------- --------- ---------- (In millions) Cash collateral liability by loaned security type U.S. Treasury and agency............ $ 6,260 $ 7,421 $ 4,303 $ 17,984 99.6% U.S. corporate...................... 1 41 -- 42 0.3 Agency RMBS......................... -- 6 21 27 0.1 Foreign corporate................... -- -- -- -- -- Foreign government.................. -- -- -- -- -- -------- -------- -------- --------- ------ Total.............................. $ 6,261 $ 7,468 $ 4,324 $ 18,053 100.0% ======== ======== ======== ========= ======
74 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued)
December 31, 2014 ------------------------------------------------------------------------ Remaining Tenor of Securities Lending Agreements --------------------------------------------------- Open (1) 1 Month or Less 1 to 6 Months Total % of Total -------- --------------- ------------- --------- ---------- (In millions) Cash collateral liability by loaned security type U.S. Treasury and agency............ $ 7,346 $ 7,401 $ 3,912 $ 18,659 86.2% U.S. corporate...................... 109 148 -- 257 1.2 Agency RMBS......................... -- 387 2,015 2,402 11.1 Foreign corporate................... 152 89 -- 241 1.1 Foreign government.................. 22 54 -- 76 0.4 -------- -------- -------- --------- ------ Total.............................. $ 7,629 $ 8,079 $ 5,927 $ 21,635 100.0% ======== ======== ======== ========= ======
-------- (1)The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at December 31, 2015 was $6.1 billion, over 99% of which were U.S. Treasury and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement. The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including U.S. Treasury and agency, agency RMBS, ABS, U.S. and foreign corporate securities) with 66% invested in U.S. Treasury and agency securities, agency RMBS, cash equivalents, short-term investments or held in cash. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company. 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, ----------------------- 2015 2014 ----------- ----------- (In millions) Invested assets on deposit (regulatory deposits)............ $ 1,245 $ 1,421 Invested assets pledged as collateral (1)................... 19,011 20,712 ----------- ----------- Total invested assets on deposit and pledged as collateral. $ 20,256 $ 22,133 =========== ===========
-------- (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). 75 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) See "-- Securities Lending" for information regarding securities on loan and Note 7 for information regarding investments designated to the closed block. 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, --------------------- 2015 2014 ---------- ---------- (In millions) Outstanding principal and interest balance (1). $ 5,139 $ 4,614 Carrying value (2)............................. $ 3,937 $ 3,651
-------- (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, ------------------------ 2015 2014 ----------- ---------- (In millions) Contractually required payments (including interest). $ 1,401 $ 820 Cash flows expected to be collected (1).............. $ 1,222 $ 644 Fair value of investments acquired................... $ 905 $ 433
-------- (1)Represents undiscounted principal and interest cash flow expectations, at the date of acquisition. 76 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, ------------------------ 2015 2014 ----------- ----------- (In millions) Accretable yield, January 1,........................ $ 1,883 $ 2,431 Investments purchased............................... 317 211 Accretion recognized in earnings.................... (276) (217) Disposals........................................... (48) (47) Reclassification (to) from nonaccretable difference. (92) (495) ----------- ----------- Accretable yield, December 31,...................... $ 1,784 $ 1,883 =========== ===========
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 $10.2 billion at December 31, 2015. 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 $3.4 billion at December 31, 2015. 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 only 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, 2015, 2014 and 2013. Aggregate total assets of these entities totaled $397.9 billion and $351.0 billion at December 31, 2015 and 2014, respectively. Aggregate total liabilities of these entities totaled $64.1 billion and $32.1 billion at December 31, 2015 and 2014, respectively. Aggregate net income (loss) of these entities totaled $23.4 billion, $33.7 billion and $25.0 billion for the years ended December 31, 2015, 2014 and 2013, 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). 77 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) 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. 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 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. 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, 2015 and 2014.
December 31, --------------------------------------- 2015 2014 ------------------- ------------------- Total Total Total Total Assets Liabilities Assets Liabilities ------- ----------- ------- ----------- (In millions) Fixed maturity securities (1). $ 104 $ 50 $ 163 $ 78 Other investments (2)......... 89 13 121 30 ------- ----------- ------- ----------- Total........................ $ 193 $ 63 $ 284 $ 108 ======= =========== ======= ===========
-------- (1)The Company consolidates certain fixed maturity securities purchased in an investment structure 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 each of the years ended December 31, 2015, 2014 and 2013. (2)Other investments is comprised of other invested assets, other limited partnership interests, CSEs reported within FVO securities and real estate joint ventures. The Company consolidates CSEs which are entities that 78 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) 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, 2015 and 2014. 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 less than $1 million, $1 million and $3 million for the years ended December 31, 2015, 2014 and 2013, respectively. Effective March 31, 2014, as a result of a quarterly reassessment in the first quarter of 2014, the Company deconsolidated an open ended core real estate fund, based on the terms of a revised partnership agreement. At December 31, 2013, the Company had consolidated this real estate fund. 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. As a result of the deconsolidation in 2014, supplemental disclosures of cash flow information on the consolidated statements of cash flows for the year ended December 31, 2014 includes reductions in redeemable noncontrolling interests, long-term debt and real estate and real estate joint ventures. 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, --------------------------------------------- 2015 2014 ---------------------- ---------------------- Maximum Maximum Carrying Exposure Carrying Exposure Amount to Loss (1) Amount to Loss (1) ---------- ----------- ---------- ----------- (In millions) Fixed maturity securities AFS: Structured securities (RMBS, CMBS and ABS) (2)............................ $ 37,061 $ 37,061 $ 44,302 $ 44,302 U.S. and foreign corporate............ 1,593 1,593 1,919 1,919 Other limited partnership interests.... 2,874 3,672 3,722 4,833 Other invested assets.................. 1,564 2,116 1,683 2,003 Real estate joint ventures............. 31 44 52 74 ---------- ---------- ---------- ---------- Total................................. $ 43,123 $ 44,486 $ 51,678 $ 53,131 ========== ========== ========== ==========
-------- (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. 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 commitments, reduced by income tax 79 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) credits guaranteed by third parties of $179 million and $212 million at December 31, 2015 and 2014, 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, 2015, 2014 and 2013. Net Investment Income The components of net investment income were as follows:
Years Ended December 31, ------------------------------------ 2015 2014 2013 ---------- ------------- ---------- (In millions) Investment income: Fixed maturity securities..................................... $ 7,930 $ 8,260 $ 8,279 Equity securities............................................. 91 86 78 Trading and FVO securities -- Actively traded and FVO general account securities (1)...................................... (15) 23 43 Mortgage loans................................................ 2,514 2,378 2,405 Policy loans.................................................. 435 448 440 Real estate and real estate joint ventures.................... 743 725 699 Other limited partnership interests........................... 519 721 633 Cash, cash equivalents and short-term investments............. 25 26 32 Operating joint venture....................................... 9 2 (4) Other......................................................... 202 61 21 ---------- ---------- ---------- Subtotal.................................................... 12,453 12,730 12,626 Less: Investment expenses..................................... 876 838 844 ---------- ---------- ---------- Subtotal, net............................................... 11,577 11,892 11,782 ---------- ---------- ---------- FVO CSEs -- interest income: Securities.................................................... -- 1 3 ---------- ---------- ---------- Subtotal.................................................... -- 1 3 ---------- ---------- ---------- Net investment income..................................... $ 11,577 $ 11,893 $ 11,785 ========== ========== ==========
-------- (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 ($18) million, ($14) million and $4 million for the years ended December 31, 2015, 2014 and 2013, respectively. See "-- Variable Interest Entities" for discussion of CSEs. See "-- Related Party Investment Transactions" for discussion of affiliated net investment income and investment expenses. 80 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) The Company has a trading securities portfolio, principally invested in fixed maturity securities, to support investment strategies that involve the active and frequent purchase and sale of actively traded securities and the execution of short sale agreements. FVO securities include certain fixed maturity and equity securities held-for-investment by the general account to support asset/liability management strategies for certain insurance products and securities held by CSEs. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows:
Years Ended December 31, ---------------------------- 2015 2014 2013 -------- ------- ------- (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.................................................................... $ (21) $ (6) $ (12) Utility..................................................................... (15) -- (48) Finance..................................................................... -- -- (4) Communications.............................................................. -- -- (2) -------- ------- ------- Total U.S. and foreign corporate securities............................ (36) (6) (66) RMBS.......................................................................... (17) (20) (62) State and political subdivision............................................... (1) -- -- -------- ------- ------- OTTI losses on fixed maturity securities recognized in earnings........ (54) (26) (128) Fixed maturity securities -- net gains (losses) on sales and disposals.......... (114) (99) 177 -------- ------- ------- Total gains (losses) on fixed maturity securities......................... (168) (125) 49 -------- ------- ------- Total gains (losses) on equity securities: Total OTTI losses recognized -- by sector: Common stock.................................................................. (37) (5) (2) Non-redeemable preferred stock................................................ -- (16) (17) -------- ------- ------- OTTI losses on equity securities recognized in earnings................ (37) (21) (19) Equity securities -- net gains (losses) on sales and disposals.................. -- 42 6 -------- ------- ------- Total gains (losses) on equity securities................................. (37) 21 (13) -------- ------- ------- Trading and FVO securities -- FVO general account securities..................... -- 1 11 Mortgage loans................................................................... (90) (36) 31 Real estate and real estate joint ventures....................................... 430 252 (15) Other limited partnership interests.............................................. (66) (69) (41) Other............................................................................ (18) (108) 5 -------- ------- ------- Subtotal.................................................................. 51 (64) 27 -------- ------- ------- FVO CSEs: Securities...................................................................... -- -- 2 Long-term debt -- related to securities......................................... -- (1) (2) Non-investment portfolio gains (losses).......................................... 208 208 21 -------- ------- ------- Subtotal.................................................................. 208 207 21 -------- ------- ------- Total net investment gains (losses).................................... $ 259 $ 143 $ 48 ======== ======= =======
81 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) See "-- Variable Interest Entities" for discussion of CSEs. 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 $125 million, $132 million and less than $1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Sales or Disposals and Impairments of Fixed Maturity and Equity Securities Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) were as shown in the table below.
Years Ended December 31, ------------------------------------------------------------- 2015 2014 2013 2015 2014 2013 ---------- ---------- ---------- ------- ------- ------- Fixed Maturity Securities Equity Securities ---------------------------------- ------------------------- (In millions) Proceeds....................... $ 60,957 $ 44,906 $ 45,538 $ 105 $ 128 $ 144 ========== ========== ========== ======= ======= ======= Gross investment gains......... $ 584 $ 260 $ 556 $ 28 $ 46 $ 25 Gross investment losses........ (698) (359) (379) (28) (4) (19) OTTI losses.................... (54) (26) (128) (37) (21) (19) ---------- ---------- ---------- ------- ------- ------- Net investment gains (losses). $ (168) $ (125) $ 49 $ (37) $ 21 $ (13) ========== ========== ========== ======= ======= =======
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, ------------------------ 2015 2014 ----------- ----------- (In millions) Balance at January 1,........................................................... $ 263 $ 277 Additions: Initial impairments -- credit loss OTTI on securities not previously impaired.. 14 1 Additional impairments -- credit loss OTTI on securities previously impaired..................................................................... 15 15 Reductions: Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI.......................................................... (102) (30) Increase in cash flows -- accretion of previous credit loss OTTI............... (2) -- ----------- ----------- Balance at December 31,......................................................... $ 188 $ 263 =========== ===========
82 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 8. Investments (continued) 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, ------------------------- 2015 2014 2013 --------- ------- ------- (In millions) Estimated fair value of invested assets transferred to affiliates... $ 1,003 $ 97 $ 781 Amortized cost of invested assets transferred to affiliates......... $ 941 $ 89 $ 688 Net investment gains (losses) recognized on transfers............... $ 62 $ 8 $ 93 Estimated fair value of invested assets transferred from affiliates. $ 237 $ 882 $ 882
In 2013, prior to the Mergers, the 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. See Note 6 for additional information on the Mergers. In July 2014, prior to the Mergers, the Company purchased from certain affiliates MetLife, Inc. affiliated loans with an unpaid principal balance of $400 million and estimated fair value of $437 million, which are included in the table above. The unpaid principal balance of MetLife, Inc. affiliated loans held by the Company totals $1.9 billion, bear interest at the following fixed rates, payable semiannually, and are due as follows: $250 million at 7.44% due on September 30, 2016, $500 million at 3.54% due on June 30, 2019, $250 million at 3.57% due on October 1, 2019, $445 million at 5.64% due on July 15, 2021 and $480 million at 5.86% due on December 16, 2021. The carrying value of these MetLife, Inc. affiliated loans totaled $2.0 billion at both December 31, 2015 and 2014 which are included in other invested assets. Net investment income from these affiliated loans was $95 million, $92 million and $90 million for the years ended December 31, 2015, 2014 and 2013, respectively. As a structured settlements assignment company, the Company purchases annuities from affiliates to fund the periodic structured settlement claim payment obligations it assumes. Each annuity purchased is contractually designated to the assumed claim obligation it funds. The aggregate annuity contract values recorded, for which the Company has also recorded an unpaid claim obligation of equal amounts, were $1.3 billion at December 31, 2015. The related net investment income and corresponding policyholder benefits and claims recognized were $63 million for the year ended December 31, 2015. The Company had a surplus note outstanding from American Life Insurance Company, an affiliate, which was included in other invested assets, totaling $100 million at both December 31, 2015 and 2014. The loan, which bears interest at a fixed rate of 3.17%, payable semiannually, is due on June 30, 2020. Net investment income from this surplus note was $3 million and less than $1 million for the years ended December 31, 2015 and 2014, respectively. The Company provides investment administrative services to certain affiliates. The related investment administrative service charges to these affiliates were $157 million, $179 million and $172 million for the years ended December 31, 2015, 2014 and 2013, respectively. The Company also earned additional affiliated net investment income of $4 million for each of the years ended December 31, 2015, 2014 and 2013. See "-- Mortgage Loans -- Mortgage Loans by Portfolio Segment" for discussion of mortgage loan participation agreements with affiliates. 83 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 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 with values 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 ("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, futures and forwards. 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 nonqualifying 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 and 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 nonqualifying 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 84 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 9. Derivatives (continued) offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in nonqualifying 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 exchange-traded interest rate futures in nonqualifying 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 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 nonqualifying 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 nonqualifying 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 nonqualifying 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. 85 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 9. Derivatives (continued) 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 transactions 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"). 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 nonqualifying 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 nonqualifying 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 nonqualifying 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 nonqualifying hedging relationships. 86 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, --------------------------------------------------------------- 2015 2014 ------------------------------- ------------------------------- 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.................... $ 5,089 $ 2,177 $ 11 $ 5,632 $ 2,031 $ 18 Foreign currency swaps.. Foreign currency exchange rate... 2,133 61 159 2,709 65 101 ---------- -------- -------- ---------- -------- -------- Subtotal............... 7,222 2,238 170 8,341 2,096 119 ---------- -------- -------- ---------- -------- -------- Cash flow hedges: Interest rate swaps..... Interest rate.................... 1,960 426 -- 2,191 447 -- Interest rate forwards.. Interest rate.................... 70 15 -- 70 18 -- Foreign currency swaps.. Foreign currency exchange rate... 18,743 1,132 1,376 14,895 501 614 ---------- -------- -------- ---------- -------- -------- Subtotal............... 20,773 1,573 1,376 17,156 966 614 ---------- -------- -------- ---------- -------- -------- Total qualifying hedges............................. 27,995 3,811 1,546 25,497 3,062 733 ---------- -------- -------- ---------- -------- -------- Derivatives Not Designated or Not Qualifying as Hedging Instruments Interest rate swaps....... Interest rate.................... 51,489 2,613 1,197 56,394 2,213 1,072 Interest rate floors...... Interest rate.................... 13,701 252 10 36,141 319 108 Interest rate caps........ Interest rate.................... 55,136 67 2 41,227 134 1 Interest rate futures..... Interest rate.................... 2,023 -- 2 70 -- -- Interest rate options..... Interest rate.................... 2,295 227 4 6,399 379 15 Synthetic GICs............ Interest rate.................... 4,216 -- -- 4,298 -- -- Foreign currency swaps.... Foreign currency exchange rate... 8,095 600 94 8,774 359 176 Foreign currency forwards. Foreign currency exchange rate... 3,014 83 36 3,985 92 80 Credit default swaps -- purchased................ Credit........................... 819 28 8 857 8 11 Credit default swaps -- written.................. Credit........................... 6,577 51 11 7,419 130 5 Equity futures............ Equity market.................... 1,452 15 -- 954 10 -- Equity index options...... Equity market.................... 7,364 326 349 7,698 328 352 Equity variance swaps..... Equity market.................... 5,676 62 160 5,678 60 146 TRRs...................... Equity market.................... 952 11 9 911 10 33 ---------- -------- -------- ---------- -------- -------- Total non-designated or nonqualifying derivatives... 162,809 4,335 1,882 180,805 4,042 1,999 ---------- -------- -------- ---------- -------- -------- Total........................................... $ 190,804 $ 8,146 $ 3,428 $ 206,302 $ 7,104 $ 2,732 ========== ======== ======== ========== ======== ========
87 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 9. Derivatives (continued) 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, 2015 and 2014. 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 create credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these nonqualified 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, ------------------------------- 2015 2014 2013 --------- ---------- --------- (In millions) Freestanding derivatives and hedging gains (losses) (1).................................... $ 463 $ 1,207 $ (1,205) Embedded derivatives gains (losses)............... 418 (170) 135 --------- ---------- --------- Total net derivative gains (losses)............. $ 881 $ 1,037 $ (1,070) ========= ========== =========
-------- (1)Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presented elsewhere in this note. The following table presents earned income on derivatives:
Years Ended December 31, ---------------------------- 2015 2014 2013 -------- -------- -------- (In millions) Qualifying hedges: Net investment income........................... $ 227 $ 162 $ 129 Interest credited to policyholder account balances....................................... 28 106 148 Nonqualifying hedges: Net investment income........................... (5) (4) (6) Net derivative gains (losses)................... 518 484 450 Policyholder benefits and claims................ 2 8 -- -------- -------- -------- Total.......................................... $ 770 $ 756 $ 721 ======== ======== ========
88 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 9. Derivatives (continued) Nonqualifying 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, 2015 Interest rate derivatives.......... $ (243) $ -- $ -- Foreign currency exchange rate derivatives...................... 678 -- -- Credit derivatives -- purchased.... 17 (3) -- Credit derivatives -- written...... (57) -- -- Equity derivatives................. (152) (11) -- ----------- -------- ---------- Total............................ $ 243 $ (14) $ -- =========== ======== ========== 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) $ -- =========== ======== ==========
-------- (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. 89 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, 2015 Interest rate swaps: Fixed maturity securities.......... $ 4 $ -- $ 4 Policyholder liabilities (1)....... (4) (6) (10) Foreign currency swaps: Foreign-denominated fixed maturity securities. ..................... 14 (5) 9 Foreign-denominated policyholder account balances (2).. .......... (240) 231 (9) ----------- ---------- ----------- Total..................................................... $ (226) $ 220 $ (6) =========== ========== =========== 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 policyholder account balances (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 policyholder account balances (2)............. (98) 112 14 ----------- ---------- ----------- Total..................................................... $ (851) $ 874 $ 23 =========== ========== ===========
-------- (1)Fixed rate liabilities reported in policyholder account balances 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. 90 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 9. Derivatives (continued) 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 amounts from AOCI into net derivative gains (losses). These amounts were $14 million and ($14) million for the years ended December 31, 2015 and 2014, respectively, and were not significant for the year ended December 31, 2013. At December 31, 2015 and 2014, 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 five years and six years, respectively. At December 31, 2015 and 2014, the balance in AOCI associated with cash flow hedges was $2.2 billion and $1.6 billion, 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 Hedging Relationships AOCI on Derivatives AOCI into Income (Loss) (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, 2015 Interest rate swaps...... $ 76 $ 83 $ 11 $ 2 Interest rate forwards... (3) 4 2 -- Foreign currency swaps... (92) (679) (1) 7 Credit forwards.......... -- 1 1 -- ---------- ---------- ------------- ------------------- Total.................. $ (19) $ (591) $ 13 $ 9 ========== ========== ============= =================== 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) ========== ========== ============= ===================
All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. At December 31, 2015, $93 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. 91 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 9. Derivatives (continued) Such credit derivatives are included within the nonqualifying 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 the value of all referenced credit obligations is zero, was $6.6 billion and $7.4 billion at December 31, 2015 and 2014, respectively. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current estimated fair value of the credit default swaps. At December 31, 2015 and 2014, the Company would have received $40 million and $125 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, ----------------------------------------------------------------------------- 2015 2014 -------------------------------------- -------------------------------------- Maximum Maximum Estimated Amount Estimated Amount Fair Value of Future Weighted Fair Value of Future Weighted of Credit Payments under Average of Credit Payments under Average Rating Agency Designation of Referenced Default Credit Default Years to Default Credit Default Years to Credit Obligations (1) Swaps Swaps Maturity (2) Swaps Swaps Maturity (2) --------------------------------------- ---------- -------------- ------------ ---------- -------------- ------------ (In millions) (In millions) Aaa/Aa/A Single name credit default swaps (corporate)........................ $ 2 $ 245 2.5 $ 5 $ 415 2.2 Credit default swaps referencing indices............................ 5 1,366 3.3 10 1,566 2.7 ---------- -------------- ---------- -------------- Subtotal............................ 7 1,611 3.2 15 1,981 2.6 ---------- -------------- ---------- -------------- Baa Single name credit default swaps (corporate)........................ 5 752 2.6 15 1,002 2.8 Credit default swaps referencing indices............................ 21 3,452 4.8 59 3,687 4.5 ---------- -------------- ---------- -------------- Subtotal............................ 26 4,204 4.4 74 4,689 4.1 ---------- -------------- ---------- -------------- Ba Single name credit default swaps (corporate)........................ (2) 60 2.2 -- 60 3.0 Credit default swaps referencing indices............................ (1) 100 1.0 (1) 100 2.0 ---------- -------------- ---------- -------------- Subtotal............................ (3) 160 1.4 (1) 160 2.4 ---------- -------------- ---------- -------------- B Single name credit default swaps (corporate)........................ -- -- -- -- -- -- Credit default swaps referencing indices............................ 10 602 4.9 37 589 4.9 ---------- -------------- ---------- -------------- Subtotal............................ 10 602 4.9 37 589 4.9 ---------- -------------- ---------- -------------- Total............................. $ 40 $ 6,577 4.1 $ 125 $ 7,419 3.8 ========== ============== ========== ==============
-------- 92 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 9. Derivatives (continued) (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. (2)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 $6.6 billion and $7.4 billion from the table above were $70 million and $60 million at December 31, 2015 and 2014, respectively. Written credit default swaps held in relation to the trading portfolio amounted to $20 million and $15 million in gross notional amount and ($2) million and $1 million in estimated fair value at December 31, 2015 and 2014, respectively. Credit Risk on Freestanding Derivatives The Company may be exposed to credit-related losses in the event of nonperformance by its 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. 93 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, -------------------------------------------- 2015 2014 --------------------- --------------------- 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)...................................................... $ 7,368 $ 2,667 $ 6,497 $ 2,092 OTC-cleared (1)........................................................ 909 783 740 682 Exchange-traded........................................................ 15 2 10 -- --------- --------- --------- --------- Total gross estimated fair value of derivatives (1).................. 8,292 3,452 7,247 2,774 Amounts offset on the consolidated balance sheets....................... -- -- -- -- --------- --------- --------- --------- Estimated fair value of derivatives presented on the consolidated balance sheets (1).................................................... 8,292 3,452 7,247 2,774 Gross amounts not offset on the consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral.......................................................... (2,117) (2,117) (1,742) (1,742) OTC-cleared............................................................ (776) (776) (638) (638) Exchange-traded........................................................ -- -- -- -- Cash collateral: (3), (4) OTC-bilateral.......................................................... (3,705) (3) (2,470) (2) OTC-cleared............................................................ (119) -- (97) (40) Exchange-traded........................................................ -- -- -- -- Securities collateral: (5) OTC-bilateral.......................................................... (1,345) (541) (2,161) (333) OTC-cleared............................................................ -- -- -- (3) Exchange-traded........................................................ -- -- -- -- --------- --------- --------- --------- Net amount after application of master netting agreements and collateral............................................................ $ 230 $ 15 $ 139 $ 16 ========= ========= ========= =========
-------- (1)At December 31, 2015 and 2014, derivative assets included income or expense accruals reported in accrued investment income or in other liabilities of $146 million and $143 million, respectively, and derivative liabilities included income or expense accruals reported in accrued investment income or in other liabilities of $24 million and $42 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 94 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 $0 and $138 million at December 31, 2015 and 2014, 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, 2015 and 2014, the Company received excess cash collateral of $17 million and $0, respectively, and provided excess cash collateral of $58 million and $31 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, 2015 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, 2015 and 2014, the Company received excess securities collateral with an estimated fair value of $71 million and $243 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At December 31, 2015 and 2014, the Company provided excess securities collateral with an estimated fair value of $81 million and $57 million, respectively, for its OTC-bilateral derivatives, and $239 million and $155 million, respectively, for its OTC-cleared derivatives, and $15 million and $17 million, 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 estimated 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 Metropolitan Life Insurance Company, or its subsidiaries, as applicable, and/or the credit ratings of the counterparty. In addition, certain of the Company's netting agreements for derivatives contain provisions that require both Metropolitan Life Insurance Company, or its subsidiaries, as applicable, 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. 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 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 Metropolitan Life Insurance Company, or its subsidiaries, as applicable, would be required to provide if there was a one-notch downgrade in such companies' financial strength rating at the reporting date or if such companies' financial strength rating sustained a downgrade to a level that 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.
December 31, ----------------------------------------------------------------- 2015 2014 -------------------------------- -------------------------------- Derivatives Derivatives Derivatives Derivatives Subject to Not Subject Subject to Not Subject Financial to Financial Financial to Financial Strength- Strength- Strength- Strength- Contingent Contingent Contingent Contingent Provisions Provisions Total Provisions Provisions Total ----------- ------------ ------- ----------- ------------ ------- (In millions) Estimated fair value of derivatives in a net liability position (1)..................... $ 547 $ 3 $ 550 $ 334 $ 4 $ 338 Estimated Fair Value of Collateral Provided Fixed maturity securities................... $ 622 $ -- $ 622 $ 390 $ -- $ 390 Cash........................................ $ -- $ 4 $ 4 $ -- $ 2 $ 2 Fair Value of Incremental Collateral Provided Upon One-notch downgrade in financial strength rating.................................... $ -- $ -- $ -- $ -- $ -- $ -- Downgrade in financial strength rating to a level that triggers full overnight collateralization or termination of the derivative position....................... $ -- $ -- $ -- $ -- $ -- $ --
-------- (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. 96 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 2015 2014 -------------------------- -------- ------- (In millions) Net embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits....... Premiums, reinsurance and other receivables....... $ 712 $ 657 Options embedded in debt or equity securities............................. Investments............... (142) (150) -------- ------- Net embedded derivatives within asset host contracts........... $ 570 $ 507 ======== ======= Net embedded derivatives within liability host contracts: Direct guaranteed minimum benefits...... Policyholder account balances................ $ (284) $ (548) Assumed guaranteed minimum benefits..... Policyholder account balances................ 126 72 Funds withheld on ceded reinsurance..... Other liabilities......... 687 1,200 Other................................... Policyholder account balances................ (3) 7 -------- ------- Net embedded derivatives within liability host contracts....... $ 526 $ 731 ======== =======
The following table presents changes in estimated fair value related to embedded derivatives:
Years Ended December 31, ------------------------------------ 2015 2014 2013 ------------ ----------- ----------- (In millions) Net derivative gains (losses) (1), (2)....... $ 418 $ (170) $ 135
-------- (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 $29 million, $14 million and ($42) million for the years ended December 31, 2015, 2014 and 2013, 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 ($4) million, ($9) million and $125 million for the years ended December 31, 2015, 2014 and 2013, respectively. (2)See Note 6 for discussion of affiliated net derivative gains (losses). 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. 97 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 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 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. 98 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, 2015 ------------------------------------------------- Fair Value Hierarchy --------------------------------- Total Estimated Level 1 Level 2 Level 3 Fair Value ---------- ----------- ---------- --------------- (In millions) Assets Fixed maturity securities: U.S. corporate................................... $ -- $ 56,848 $ 4,709 $ 61,557 U.S. Treasury and agency......................... 23,015 16,678 -- 39,693 Foreign corporate................................ -- 23,222 3,573 26,795 RMBS............................................. -- 20,585 3,330 23,915 State and political subdivision.................. -- 6,941 33 6,974 CMBS............................................. -- 6,361 218 6,579 ABS.............................................. -- 5,699 868 6,567 Foreign government............................... -- 3,331 275 3,606 ---------- ----------- ---------- ----------- Total fixed maturity securities................ 23,015 139,665 13,006 175,686 ---------- ----------- ---------- ----------- Equity securities................................. 424 1,197 328 1,949 Trading and FVO securities: Actively traded securities....................... -- 400 4 404 FVO general account securities................... -- -- 15 15 FVO securities held by CSEs...................... -- 2 10 12 ---------- ----------- ---------- ----------- Total trading and FVO securities............... -- 402 29 431 ---------- ----------- ---------- ----------- Short-term investments............................ 1,513 3,882 200 5,595 Residential mortgage loans -- FVO................. -- -- 314 314 Derivative assets: (1) Interest rate.................................... -- 5,762 15 5,777 Foreign currency exchange rate................... -- 1,876 -- 1,876 Credit........................................... -- 72 7 79 Equity market.................................... 15 282 117 414 ---------- ----------- ---------- ----------- Total derivative assets........................ 15 7,992 139 8,146 ---------- ----------- ---------- ----------- Net embedded derivatives within asset host contracts (2).................................... -- -- 712 712 Separate account assets (3)....................... 23,498 110,921 1,520 135,939 ---------- ----------- ---------- ----------- Total assets................................. $ 48,465 $ 264,059 $ 16,248 $ 328,772 ========== =========== ========== =========== Liabilities Derivative liabilities: (1) Interest rate.................................... $ 2 $ 1,224 $ -- $ 1,226 Foreign currency exchange rate................... -- 1,665 -- 1,665 Credit........................................... -- 17 2 19 Equity market.................................... -- 358 160 518 ---------- ----------- ---------- ----------- Total derivative liabilities................... 2 3,264 162 3,428 ---------- ----------- ---------- ----------- Net embedded derivatives within liability host contracts (2).................................... -- -- 526 526 Long-term debt.................................... -- 50 36 86 Long-term debt of CSEs -- FVO..................... -- -- 11 11 Trading liabilities (4)........................... 103 50 -- 153 ---------- ----------- ---------- ----------- Total liabilities............................ $ 105 $ 3,364 $ 735 $ 4,204 ========== =========== ========== ===========
99 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued)
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 State and political subdivision............ -- 6,520 -- 6,520 CMBS....................................... -- 7,464 449 7,913 ABS........................................ -- 6,734 1,492 8,226 Foreign government......................... -- 3,642 202 3,844 --------- ---------- --------- ------------- Total fixed maturity securities........... 21,625 152,986 14,300 188,911 --------- ---------- --------- ------------- 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 (5)................... 860 3,091 230 4,181 Residential mortgage loans -- FVO............ -- -- 308 308 Derivative assets: (1) 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 (2).............................. -- -- 657 657 Separate account assets (3).................. 26,119 111,601 1,615 139,335 --------- ---------- --------- ------------- Total assets............................ $ 49,220 $ 276,534 $ 17,512 $ 343,266 ========= ========== ========= ============= Liabilities Derivative liabilities: (1) 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 (2)......................... -- 7 724 731 Long-term debt............................... -- 82 35 117 Long-term debt of CSEs -- FVO................ -- -- 13 13 Trading liabilities (4)...................... 215 24 -- 239 --------- ---------- --------- ------------- Total liabilities....................... $ 215 $ 2,695 $ 922 $ 3,832 ========= ========== ========= =============
-------- 100 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued) (1)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. (2)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 policyholder account balances and other liabilities on the consolidated balance sheets. At December 31, 2015 and 2014, debt and equity securities also included embedded derivatives of ($142) million and ($150) million, respectively. (3)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. (4)Trading liabilities are presented within other liabilities on the consolidated balance sheets. (5)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. 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 Committee of the Board of Directors of each of MetLife, Inc. and Metropolitan Life Insurance Company 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 101 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued) 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 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 5% of the total estimated fair value of Level 3 fixed maturity securities at December 31, 2015. 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. 102 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued) 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. The valuation of most instruments listed below is 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: Valuation Techniques: Principally the market Principally the market and income approaches. approach. Key Inputs: Key Inputs: . quoted prices in . illiquidity premium markets that are not active . benchmark yields; . delta spread spreads off benchmark adjustments to yields; new issuances; reflect specific issuer rating credit-related issues . trades of identical . credit spreads or comparable securities; duration . Privately-placed . quoted prices in securities are valued markets that are not using the additional active for identical key inputs: or similar securities . market yield curve; that are less liquid call provisions and based on lower . observable prices levels of trading and spreads for activity than similar public or securities classified private securities in Level 2 that incorporate the . independent credit quality and non-binding broker industry sector of quotations 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: Valuation Techniques: Principally the market Principally the market approach. approach. Key Inputs: Key Inputs: . quoted prices in . independent markets that are not non-binding broker active quotations . benchmark U.S. . quoted prices in Treasury yield or markets that are not other yields active for identical . the spread off the or similar securities U.S. Treasury yield that are less liquid curve for the and based on lower identical security levels of trading . issuer ratings and activity than issuer spreads; securities classified broker-dealer quotes in Level 2 . comparable securities that are actively traded . credit spreads ----------------------------------------------------------------------------- Structured securities comprised of RMBS, CMBS and ABS ----------------------------------------------------------------------------- Valuation Techniques: Valuation Techniques: Principally the market Principally the market and income approaches. and income approaches. Key Inputs: Key Inputs: . quoted prices in . credit spreads markets that are not active . spreads for actively . quoted prices in traded securities; markets that are not spreads off benchmark active for identical yields or similar securities . expected prepayment that are less liquid speeds and volumes and based on lower . current and levels of trading forecasted loss activity than severity; ratings; securities classified geographic region in Level 2 . weighted average . independent coupon and weighted non-binding broker average maturity quotations . average delinquency rates; debt-service coverage ratios . issuance-specific information, including, but not limited to: . collateral type; structure of the security; vintage of the loans . payment terms of the underlying assets . payment priority within the tranche; deal performance
103 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued) Level 2 Level 3 Instrument Observable Inputs Unobservable Inputs -------------------------------------------------------------------------------- Equity Securities -------------------------------------------------------------------------------- Valuation Techniques: Valuation Techniques: Principally the market Principally the market approach. and income approaches. Key Input: Key Inputs: . quoted prices in markets that are not . credit ratings; considered active 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 . Trading and FVO securities and securities and short-term investments short-term investments are of a similar nature are of a similar nature and class to the fixed and class to the fixed maturity and equity maturity and equity securities described securities described above; accordingly, the above; accordingly, the valuation techniques and valuation techniques observable inputs used and unobservable inputs in their valuation are used in their valuation also similar to those are also similar to described above. 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: . N/A . quoted prices or reported NAV provided 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; 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 104 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued) valuation methodologies and inputs that management believes are consistent with what other market 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. 105 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 (1) .currency spot rates .cross currency basis curves ----------------------------------------------------------------------------------------------------------- Level 3 . swap yield curve (2) .swap yield curve (2) . basis curves (2) .basis curves (2) .cross currency basis .curves (2) .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 (1) .recovery rates --------------------------------------------------------------------------------------------------------- Level 3 . swap yield curve (2) .swap yield curve (2) . basis curves (2) .credit curves (2) .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 (1) . dividend yield curves . equity volatility (1) ---------------------------------------------------------------------------------------------------------- Level 3 . swap yield curve (2) . dividend yield curves (2) . basis curves (2) . equity volatility (1), (2) . correlation between model inputs (1)
-------- (1)Option-based only. (2)Extrapolation beyond the observable limits of the curve(s). 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 funds withheld on ceded reinsurance agreements. 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 policyholder account balances 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. 106 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 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 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 policyholder account balances 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. 107 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, 2015, transfers between Levels 1 and 2 were not significant. 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. 108 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued) 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 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. 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, 2015 ----------------------------- Significant Weighted Valuation Techniques Unobservable Inputs Range Average (1) --------------------- ----------------------- ----------------- ----------- Fixed maturity securities (3) U.S. corporate and foreign Delta spread corporate.................... Matrix pricing adjustments (4) (65) - 240 37 Offered quotes (5) 39 - 96 60 Market pricing Quoted prices (5) -- - 385 125 Consensus pricing Offered quotes (5) 100 - 119 103 ---------------------------------------------------------------------------------- RMBS.......................... Market pricing Quoted prices (5) 19 - 121 92 ---------------------------------------------------------------------------------- ABS........................... Market pricing Quoted prices (5) 16 - 103 100 Consensus pricing Offered quotes (5) 97 - 105 99 ---------------------------------------------------------------------------------- Derivatives Interest rate................. Present value Swap yield (7) 307 - 307 techniques ---------------------------------------------------------------------------------- Foreign currency exchange Present value Correlation (8) -- - -- rate......................... techniques ---------------------------------------------------------------------------------- Credit........................ Present value Credit spreads (9) 98 - 100 techniques Consensus pricing Offered quotes (10) ---------------------------------------------------------------------------------- Equity market................. Present value Volatility (12) 17% - 36% techniques or option pricing models Correlation (8) 70% - 70% ---------------------------------------------------------------------------------- Embedded derivatives Direct, assumed and ceded Option pricing Mortality rates: guaranteed minimum techniques Ages 0 - 40 0% - 0.09% benefits..................... Ages 41 - 60 0.04% - 0.65% Ages 61 - 115 0.26% - 100% Lapse rates: Durations 1 - 10 0.25% - 100% Durations 11 - 20 3% - 100% Durations 21 - 116 3% - 100% Utilization rates 0% - 25% Withdrawal rates 0.25% - 10% Long-term equity volatilities 17.40% - 25% Nonperformance risk 0.04% - 0.52% spread
December 31, 2014 ----------------------------- Significant Weighted Valuation Techniques Unobservable Inputs Range Average (1) --------------------- ----------------------- ----------------- ----------- Fixed maturity securities (3) U.S. corporate and foreign Delta spread corporate.................... Matrix pricing adjustments (4) (40) - 240 39 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 ---------------------------------------------------------------------------------- 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) 290 - 290 techniques ---------------------------------------------------------------------------------- Foreign currency exchange Present value Correlation (8) 40% - 55% rate......................... techniques ---------------------------------------------------------------------------------- Credit........................ Present value Credit spreads (9) 98 - 100 techniques Consensus pricing Offered quotes (10) ---------------------------------------------------------------------------------- Equity market................. Present value Volatility (12) 15% - 27% techniques or option pricing models Correlation (8) 70% - 70% ---------------------------------------------------------------------------------- Embedded derivatives Direct, assumed and ceded Option pricing Mortality rates: guaranteed minimum techniques Ages 0 - 40 0% - 0.10% benefits..................... 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 volatilities 17.40% - 25% Nonperformance risk spread 0.03% - 0.46%
Impact of Increase in Input Significant on Estimated Valuation Techniques Unobservable Inputs Fair Value (2) --------------------- ----------------------- ----------------- Fixed maturity securities (3) U.S. corporate and foreign Delta spread corporate.................... Matrix pricing adjustments (4) Decrease Offered quotes (5) Increase Market pricing Quoted prices (5) Increase Consensus pricing Offered quotes (5) Increase ------------------------------------------------------------------- RMBS.......................... Market pricing Quoted prices (5) Increase (6) ------------------------------------------------------------------- ABS........................... Market pricing Quoted prices (5) Increase (6) Consensus pricing Offered quotes (5) Increase (6) ------------------------------------------------------------------- Derivatives Interest rate................. Present value Swap yield (7) Increase (11) techniques ------------------------------------------------------------------- Foreign currency exchange Present value Correlation (8) Increase (11) rate......................... techniques ------------------------------------------------------------------- Credit........................ Present value Credit spreads (9) Decrease (9) techniques Consensus pricing Offered quotes (10) ------------------------------------------------------------------- Equity market................. Present value Volatility (12) Increase (11) techniques or option pricing models Correlation (8) ------------------------------------------------------------------- Embedded derivatives Direct, assumed and ceded Option pricing Mortality rates: guaranteed minimum techniques Ages 0 - 40 Decrease (13) benefits..................... Ages 41 - 60 Decrease (13) Ages 61 - 115 Decrease (13) Lapse rates: Durations 1 - 10 Decrease (14) Durations 11 - 20 Decrease (14) Durations 21 - 116 Decrease (14) Utilization rates Increase (15) Withdrawal rates (16) Long-term equity Increase (17) volatilities Nonperformance risk Decrease (18) spread
-------- (1)The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. 109 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued) (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. (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, 2015 and 2014, 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. 110 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued) (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. (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. State and Trading Treasury Political Foreign Equity and FVO Corporate (1) and Agency Structured (2) Subdivision Government Securities Securities (3) ------------- ---------- -------------- ----------- ---------- ---------- -------------- (In millions) Balance, January 1, 2014................ $ 8,467 $ 62 $ 5,469 $ -- $ 274 $ 328 $ 26 Total realized/unrealized gains (losses) included in net income (loss) (4) (5)................................ (5) -- 12 -- (49) 7 -- Total realized/unrealized gains (losses) included in AOCI.............. 218 -- 103 -- 22 2 -- Purchases (6)........................... 1,763 -- 2,740 -- -- 19 5 Sales (6)............................... (1,154) -- (1,306) -- (115) (59) (8) Issuances (6)........................... -- -- -- -- -- -- -- Settlements (6)......................... -- -- -- -- -- -- -- Transfers into Level 3 (7).............. 206 -- 84 -- 70 -- 13 Transfers out of Level 3 (7)............ (967) (62) (1,532) -- -- (82) (5) ------- ---- --------- ------- ------ ------ ----- Balance, December 31, 2014.............. 8,528 -- 5,570 -- 202 215 31 Total realized/unrealized gains (losses) included in net income (loss) (4) (5)................................ 38 -- 101 -- 1 12 (1) Total realized/unrealized gains (losses) included in AOCI.............. (399) -- (67) -- (1) (53) -- Purchases (6)........................... 1,546 -- 1,393 33 120 127 -- Sales (6)............................... (1,018) -- (1,205) -- (1) (61) (1) Issuances (6)........................... -- -- -- -- -- -- -- Settlements (6)......................... -- -- -- -- -- -- -- Transfers into Level 3 (7).............. 635 -- 32 -- -- 88 -- Transfers out of Level 3 (7)............ (1,048) -- (1,408) -- (46) -- -- ------- ---- --------- ------- ------ ------ ----- Balance, December 31, 2015.............. $ 8,282 $ -- $ 4,416 $ 33 $ 275 $ 328 $ 29 ======= ==== ========= ======= ====== ====== ===== Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2013: (8).............................. $ (39) $ -- $ 31 $ -- $ 4 $ (17) $ 5 ======= ==== ========= ======= ====== ====== ===== Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2014: (8).............................. $ (4) $ -- $ 42 $ -- $ 1 $ (5) $ -- ======= ==== ========= ======= ====== ====== ===== Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2015: (8).............................. $ 7 $ -- $ 102 $ -- $ 1 $ -- $ -- ======= ==== ========= ======= ====== ====== ===== Gains (Losses) Data for the year ended December 31, 2013 Total realized/unrealized gains (losses) included in net income (loss) (4) (5)................................ $ (56) $ -- $ 31 $ -- $ 6 $ (10) $ 11 Total realized/unrealized gains (losses) included in AOCI.............. $ (33) $ (3) $ 115 $ -- $ (45) $ 79 $ --
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) ---------------------------------------------------------------------------------------- Residential Mortgage Separate Long-term Short-term Loans - Account Net Net Embedded Long-term Debt of Investments FVO Assets (9) Derivatives (10) Derivatives (11) Debt CSEs - FVO ----------- ----------- ---------- ---------------- ---------------- --------- ---------- (In millions) Balance, January 1, 2014............... $ 175 $ 338 $1,209 $ 36 $ 48 $ (43) $ (28) Total realized/unrealized gains (losses) included in net income (loss) (4) (5)............ (1) 20 102 1 (144) -- (1) Total realized/unrealized gains (losses) included in AOCI... -- -- -- 40 -- -- -- Purchases (6)....... 230 124 527 111 -- -- -- Sales (6)........... (156) (120) (376) -- -- -- -- Issuances (6)....... -- -- 81 (159) -- (30) -- Settlements (6)..... -- (54) (28) (23) 29 20 16 Transfers into Level 3 (7)........ -- -- 144 -- -- -- -- Transfers out of Level 3 (7)........ (18) -- (44) -- -- 18 -- ----- ----- ------ ----- ------ ----- ----- Balance, December 31, 2014.. 230 308 1,615 6 (67) (35) (13) Total realized/unrealized gains (losses) included in net income (loss) (4) (5)............ -- 20 15 (27) 447 -- -- Total realized/unrealized gains (losses) included in AOCI... -- -- -- (2) -- -- -- Purchases (6)....... 200 136 348 3 -- -- -- Sales (6)........... -- (121) (344) -- -- -- -- Issuances (6)....... -- -- 98 -- -- (38) -- Settlements (6)..... -- (29) (60) (3) (194) 37 2 Transfers into Level 3 (7)........ -- -- 1 -- -- -- -- Transfers out of Level 3 (7)........ (230) -- (153) -- -- -- -- ----- ----- ------ ----- ------ ----- ----- Balance, December 31, 2015.. $ 200 $ 314 $1,520 $ (23) $ 186 $ (36) $ (11) ===== ===== ====== ===== ====== ===== ===== Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2013: (8)................ $ 1 $ 1 $ -- $ (29) $ 115 $ -- $ (2) ===== ===== ====== ===== ====== ===== ===== Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2014: (8)................ $ -- $ 20 $ -- $ 8 $ (115) $ -- $ (1) ===== ===== ====== ===== ====== ===== ===== Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2015: (8)................ $ -- $ 20 $ -- $ (24) $ 461 $ -- $ -- ===== ===== ====== ===== ====== ===== ===== Gains (Losses) Data for the year ended December 31, 2013.. Total realized/unrealized gains (losses) included in net income (loss) (4) (5)............ $ (23) $ 1 $ 42 $ (35) $ 102 $ -- $ (2) Total realized/unrealized gains (losses) included in AOCI... $ 19 $ -- $ -- $ (44) $ -- $ -- $ --
-------- (1)Comprised of U.S. and foreign corporate securities. (2)Comprised of RMBS, CMBS, and ABS. 113 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued) (3)Comprised of Actively traded securities, FVO general account securities and FVO securities held by CSEs. (4)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 residential mortgage loans -- FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income for net derivatives and net embedded derivatives are reported in net derivatives gains (losses). (5)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (6)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. (7)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. (8)Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (9)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). (10)Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (11)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, ------------------ 2015 2014 -------- -------- (In millions) Unpaid principal balance............................................. $ 436 $ 436 Difference between estimated fair value and unpaid principal balance. (122) (128) -------- -------- Carrying value at estimated fair value.............................. $ 314 $ 308 ======== ======== Loans in non-accrual status.......................................... $ 122 $ 125
114 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued) 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 of Long-term Debt CSEs - FVO ------------------------- ------------------------ December 31, December 31, December 31, December 31, 2015 2014 2015 2014 ------------ ------------ ------------ ------------ (In millions) Contractual principal balance........................... $ 82 $ 115 $ 24 $ 26 Difference between estimated fair value and contractual principal balance..................................... 4 2 (13) (13) ------- -------- ------- ------- Carrying value at estimated fair value (1)............. $ 86 $ 117 $ 11 $ 13 ======= ======== ======= =======
-------- (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, -------------------------------- -------------------------- 2015 2014 2013 2015 2014 2013 ------- -------- -------- --------- ------ -------- Carrying Value After Measurement Gains (Losses) -------------------------------- -------------------------- (In millions) Mortgage loans (1)................................ $ 40 $ 94 $ 175 $ (1) $ 2 $ 24 Other limited partnership interests (2)........... $ 57 $ 109 $ 71 $ (31) $ (70) $ (40)
-------- (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, 2015 and 2014 were not significant. 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 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, 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 tables below are not considered financial instruments subject to this disclosure. 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, 2015 -------------------------------------------------------- Fair Value Hierarchy ----------------------------------- Total Carrying Estimated Value Level 1 Level 2 Level 3 Fair Value --------- ----------- ----------- ----------- ---------- (In millions) Assets Mortgage loans.............................. $ 53,408 $ -- $ -- $ 54,969 $ 54,969 Policy loans................................ $ 8,134 $ -- $ 330 $ 9,539 $ 9,869 Real estate joint ventures.................. $ 12 $ -- $ -- $ 39 $ 39 Other limited partnership interests......... $ 467 $ -- $ -- $ 553 $ 553 Other invested assets....................... $ 2,372 $ -- $ 2,197 $ 202 $ 2,399 Premiums, reinsurance and other receivables. $ 13,879 $ -- $ 229 $ 14,610 $ 14,839 Liabilities Policyholder account balances............... $ 71,331 $ -- $ -- $ 73,506 $ 73,506 Long-term debt.............................. $ 1,618 $ -- $ 1,912 $ -- $ 1,912 Other liabilities........................... $ 19,545 $ -- $ 323 $ 19,882 $ 20,205 Separate account liabilities................ $ 60,767 $ -- $ 60,767 $ -- $ 60,767
116 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued)
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 Policyholder account balances........... $ 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
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. 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. 117 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued) 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. Policyholder Account Balances These policyholder account balances include investment contracts which primarily include certain funding agreements, fixed deferred annuities, modified guaranteed annuities, fixed term payout annuities and total control accounts ("TCA"). 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. 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, call provisions, observable prices and spreads for similar publicly traded or privately traded issues. 118 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 10. Fair Value (continued) 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 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. 119 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 11. Goodwill (continued) 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, control premium, 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 2015 annual goodwill impairment tests, the Company utilized the qualitative assessment for all of its reporting units and determined it was not more likely than not 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. 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, 2013 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 Balance at December 31, 2015 Goodwill..................... 37 68 2 4 111 Accumulated impairment....... (10) -- -- -- (10) ----- ----- ------ ------ ------ Total goodwill, net......... $ 27 $ 68 $ 2 $ 4 $ 101 ===== ===== ====== ====== ======
120 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 2015 2014 --------------- -------- ------------- ---------- ---------- (In millions) Surplus notes -- affiliated........ 3.00% - 7.38% 6.59% 2037 $ 695 $ 883 Surplus notes...................... 7.63% - 7.88% 7.80% 2024 - 2025 502 701 Mortgage loans -- affiliated....... 2.13% - 7.26% 4.10% -- -- 242 Senior notes -- affiliated......... 0.92% - 2.78% 2.09% 2021 - 2022 50 78 Other notes........................ 1.36% - 8.00% 3.12% 2016 - 2030 457 110 ---------- ---------- Total long-term debt (2)......... 1,704 2,014 Total short-term debt............ 100 100 ---------- ---------- Total........................... $ 1,804 $ 2,114 ========== ==========
-------- (1)Range of interest rates and weighted average interest rates are for the year ended December 31, 2015. (2)Excludes $11 million and $13 million of long-term debt relating to CSEs -- FVO at December 31, 2015 and 2014, respectively. See Note 10. The aggregate maturities of long-term debt at December 31, 2015 for the next five years and thereafter are $20 million in 2016, $0 in each of 2017 through 2019, $350 million in 2020 and $1.3 billion thereafter. 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 and may be made only with the prior approval of the insurance department of the state of domicile. Debt Issuance -- Other Notes In December 2015, MetLife Private Equity Holdings, LLC ("MPEH"), a wholly-owned indirect investment subsidiary of Metropolitan Life Insurance Company, entered into a five-year credit agreement (the "MPEH Credit Agreement") and borrowed $350 million under term loans that mature in December 2020. The loans bear interest at a variable rate of three-month LIBOR plus 3.70%, payable quarterly. In connection with the borrowing, $6 million of costs were incurred which have been capitalized and included in other assets. These costs are being amortized over the term of the loans. Additionally, the MPEH Credit Agreement provides for MPEH to borrow up to $100 million on a revolving basis at a variable rate of three-month LIBOR plus 3.70%, payable quarterly. There were no revolving loans outstanding under the MPEH Credit Agreement at December 31, 2015. Term loans and revolving loans borrowed under the MPEH Credit Agreement are non-recourse to Metropolitan Life Insurance Company. 121 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 December 2015, a wholly-owned real estate subsidiary of the Company repaid in cash $110 million of its mortgage loans issued to MetLife USA due in January 2016. In November 2015, the Company repaid in cash, at maturity, $188 million of surplus notes issued to MetLife Mexico S.A., an affiliate. The redemption was approved by the New York Superintendent of Financial Services (the "Superintendent"). In November 2015, the Company repaid in cash, at maturity, $200 million of surplus notes. The redemption was approved by the Superintendent. During 2015, a wholly-owned real estate subsidiary of the Company repaid in cash $132 million of its 7.26% mortgage loans issued to MetLife USA due in January 2020. 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, at maturity, $217 million of surplus notes issued to MetLife Mexico S.A. 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, ------------------------- 2015 2014 ------------ ------------ (In millions) Commercial paper......... $ 100 $ 100 Average daily balance.... $ 100 $ 109 Average days outstanding. 68 days 69 days
During the years ended December 31, 2015, 2014 and 2013, the weighted average interest rate on short-term debt was 0.15%, 0.10% and 0.12%, respectively. Interest Expense Interest expense related to long-term and short-term debt included in other expenses was $122 million, $150 million and $150 million for the years ended December 31, 2015, 2014 and 2013, respectively. These amounts include $67 million, $88 million and $91 million of interest expense related to affiliated debt for the years ended December 31, 2015, 2014 and 2013, respectively. Such amounts do not include interest expense on long-term debt related to CSEs. See Note 8. 122 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) Credit and Committed Facilities At December 31, 2015, MetLife, Inc. and MetLife Funding, Inc., a wholly-owned subsidiary of Metropolitan Life Insurance Company ("MetLife Funding"), maintained a $4.0 billion unsecured credit facility (the "Credit Facility"), and Missouri Reinsurance, Inc. ("MoRe"), a wholly-owned subsidiary of Metropolitan Life Insurance Company, along with MetLife, Inc., maintained a $210 million committed facility (the "Committed Facility"). When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements. Credit Facility The Credit Facility is used for general corporate purposes, to support the borrowers' commercial paper programs and for the issuance of letters of credit. Total fees associated with the Credit Facility were $4 million, $4 million and $3 million for the years ended December 31, 2015, 2014 and 2013, respectively, and were included in other expenses. Information on the Credit Facility at December 31, 2015 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 $ 484 $ -- $ 3,516
-------- (1)MetLife, Inc. and MetLife Funding, are severally liable for their respective obligations under the Credit Facility. MetLife Funding is not an applicant under letters of credit outstanding as of December 31, 2015 and is not responsible for any reimbursement obligations under such letters of credit. (2)All borrowings under the Credit Facility 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. Committed Facility The Committed Facility is used for collateral for certain of its affiliated reinsurance liabilities. Total fees associated with the Committed Facility was $4 million, $4 million and $3 million for the years ended December 31, 2015, 2014 and 2013, respectively, and was included in other expenses. Information on the Committed Facility at December 31, 2015 was as follows:
Letters of Maximum Credit Unused Account Party/Borrower(s) Expiration Capacity Issued (1) Drawdowns Commitments --------------------------------------------- ---------- -------- ---------- --------- ----------- (In millions) MetLife, Inc. and Missouri Reinsurance, Inc.. June 2016 (2) $ 210 $ 210 $ -- $ --
-------- (1)MoRe had outstanding $210 million in letters of credit at December 31, 2015. (2)Capacity at December 31, 2015 of $210 million decreases in March 2016 and June 2016 to $200 million and $0, respectively. 123 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) In addition to the Committed Facility, see also "-- Debt Issuance -- Other Notes" for information about the undrawn line of credit facility in the amount of $100 million. Debt and Facility Covenants Certain of the Company's debt instruments, as well as the Credit Facility and Committed Facility, contain various administrative, reporting, legal and financial covenants. The Company believes it was in compliance with all applicable covenants at December 31, 2015. 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 the MetLife, Inc. 2005 Stock and Incentive Compensation Plan and the MetLife, Inc. 2015 Stock and Incentive Compensation Plan (together, the "Stock Plans"), 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 Stock Plans, 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 Stock Plans with reference to Shares). Compensation expense related to awards under the Stock Plans 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 Stock Plans 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 Stock Plans are made in the first quarter of each year. The expense related to stock-based compensation included in other expenses was $85 million, $100 million and $122 million for the years ended December 31, 2015, 2014 and 2013, respectively. 124 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 13. Equity (continued) Statutory Equity and Income The states of domicile of Metropolitan Life Insurance Company and its U.S. insurance subsidiaries impose 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"), based on the statutory-based filed financial statements. 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. The RBC ratios for Metropolitan Life Insurance Company and its U.S. insurance subsidiaries were each in excess of 350% for all periods presented. Metropolitan Life Insurance Company's foreign insurance operations are regulated by applicable authorities of the countries in which each entity operates and are subject to minimum capital and solvency requirements in those countries before corrective actions commences. The aggregate required capital and surplus of Metropolitan Life Insurance Company's foreign insurance operations was $31 million and the aggregate actual regulatory capital and surplus was $488 million as of the date of the most recent required capital adequacy calculation for each jurisdiction. Each of those foreign insurance operations exceeded minimum capital and solvency requirements of their respective countries for all periods presented. Metropolitan Life Insurance Company and its U.S. insurance subsidiaries prepare statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile. The NAIC has adopted the Codification of Statutory Accounting Principles ("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 U.S. 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. Metropolitan Life Insurance Company and its U.S. insurance subsidiaries have no material state prescribed accounting practices, except as described below. New York has adopted certain prescribed accounting practices, primarily consisting of the continuous Commissioners' Annuity Reserve Valuation Method, which impacts deferred annuities, and the New York Special Consideration Letter, which mandates certain assumptions in asset adequacy testing. The collective impact of these prescribed accounting practices decreased the statutory capital and surplus of MLIC for the years ended December 31, 2015 and 2014 by an amount of $1.2 billion and $2.3 billion, respectively, in excess of the amount of the decrease had capital and surplus been measured under NAIC guidance. 125 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 13. Equity (continued) The tables below present amounts from Metropolitan Life Insurance Company and its U.S. insurance subsidiaries, which are derived from the statutory-basis financial statements as filed with the insurance regulators. Statutory net income (loss) was as follows:
Years Ended December 31, ------------------------ Company State of Domicile 2015 2014 2013 ---------------------------------------- ----------------- -------- -------- ------ (In millions) Metropolitan Life Insurance Company..... New York $ 3,703 $ 1,487 $ 369 New England Life Insurance Company...... Massachusetts $ 157 $ 303 $ 103 General American Life Insurance Company. Missouri $ 204 $ 129 $ 60
Statutory capital and surplus was as follows at:
December 31, ------------------- Company 2015 2014 ---------------------------------------- --------- --------- (In millions) Metropolitan Life Insurance Company..... $ 14,485 $ 12,008 New England Life Insurance Company...... $ 632 $ 675 General American Life Insurance Company. $ 984 $ 867
Dividend Restrictions The table below sets forth the dividends permitted to be paid by Metropolitan Life Insurance Company to MetLife, Inc. without insurance regulatory approval and dividends paid:
2016 2015 2014 ----------------- -------- -------- Permitted Without Company Approval Paid (1) Paid (1) ---------------------------------------- ----------------- -------- -------- (In millions) Metropolitan Life Insurance Company (3). $ 3,753 $ 1,489 $ 821(2)
-------- (1)Reflects 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. (3)As discussed below, the New York Insurance Law was amended, permitting Metropolitan Life Insurance Company to pay dividends without prior regulatory approval under one of two alternative formulations beginning in 2016. The dividend amount that Metropolitan Life Insurance Company may pay during 2016 under the new formulation is reflected in the table above. 126 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 13. Equity (continued) Effective for dividends paid during 2016 and going forward, the New York Insurance Law was amended permitting Metropolitan Life Insurance Company without prior insurance regulatory clearance, to pay stockholder dividends to MetLife, Inc. in any calendar year based on either of two standards. Under one standard, Metropolitan Life Insurance Company is permitted, without prior insurance regulatory clearance, to pay dividends out of earned surplus (defined as positive "unassigned funds (surplus)" excluding 85% of the change in net unrealized capital gains or losses (less capital gains tax), for the immediately preceding calendar year), in an amount up to 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 realized capital gains), not to exceed 30% of surplus to policyholders as of the end of the immediately preceding calendar year. In addition, under this standard, Metropolitan Life Insurance Company may not, without prior insurance regulatory clearance, pay any dividends in any calendar year immediately following a calendar year for which its net gain from operations, excluding realized capital gains, was negative. Under the second standard, if dividends are paid out of other than earned surplus, Metropolitan Life Insurance Company may, without prior insurance regulatory clearance, pay an amount up to 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). In addition, Metropolitan Life Insurance Company will be permitted to pay a dividend to MetLife, Inc. in excess of the amounts allowed under both standards only if it files notice of its intention to declare such a dividend and the amount thereof with 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 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. 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:
2016 2015 2014 ----------------- --------- --------- Permitted Without Company Approval (1) Paid (2) Paid (2) ---------------------------------------- ----------------- --------- --------- (In millions) New England Life Insurance Company...... $ 156 $ 199 $ 227 (3) General American Life Insurance Company. $ 136 $ -- $ --
-------- (1)Reflects dividend amounts that may be paid during 2016 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 2016, 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 127 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 13. Equity (continued) 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 (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, 2015 and 2014, Metropolitan Life Insurance Company received dividends from non-insurance subsidiaries of $159 million and $95 million, respectively. 128 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 13. Equity (continued) Accumulated Other Comprehensive Income (Loss) Information regarding changes in the balances of each component of AOCI attributable to Metropolitan Life Insurance Company, was as follows:
Unrealized Foreign Defined Investment Gains Unrealized Gains Currency Benefit (Losses), Net of (Losses) on Translation Plans Related Offsets (1) Derivatives Adjustments Adjustment Total ------------------- ---------------- ----------- ---------- --------- (In millions) 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 -------- -------- -------- --------- --------- AOCI 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) -------- -------- -------- --------- --------- AOCI 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 OCI before reclassifications........ (4,839) (19) (101) 113 (4,846) Deferred income tax benefit (expense)......................... 1,715 6 30 (40) 1,711 -------- -------- -------- --------- --------- AOCI before reclassifications, net of income tax.................... 3,076 1,060 (74) (2,163) 1,899 Amounts reclassified from AOCI...... 405 578 -- 229 1,212 Deferred income tax benefit (expense)......................... (144) (202) -- (80) (426) -------- -------- -------- --------- --------- Amounts reclassified from AOCI, net of income tax................ 261 376 -- 149 786 -------- -------- -------- --------- --------- Balance at December 31, 2015........ $ 3,337 $ 1,436 $ (74) $ (2,014) $ 2,685 ======== ======== ======== ========= =========
-------- (1)See Note 8 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. 129 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 Comprehensive Income (Loss) AOCI Components Amounts Reclassified from AOCI Locations -------------------------------------------------- --------------------------- ------------------------------------ Years Ended December 31, --------------------------- 2015 2014 2013 -------- -------- ------- (In millions) Net unrealized investment gains (losses):............ Net unrealized investment gains (losses)........... $ (208) $ (103) $ (9) Net investment gains (losses) Net unrealized investment gains (losses)........... 31 40 53 Net investment income Net unrealized investment gains (losses)........... (228) (7) (28) Net derivative gains (losses) -------- -------- ------- Net unrealized investment gains (losses), before income tax............................... (405) (70) 16 Income tax (expense) benefit..................... 144 24 (6) -------- -------- ------- Net unrealized investment gains (losses), net of income tax................................... $ (261) $ (46) $ 10 ======== ======== ======= Unrealized gains (losses) on derivatives -- cash flow hedges:........................................ Interest rate swaps................................ $ 83 $ 41 $ 20 Net derivative gains (losses) Interest rate swaps................................ 11 9 8 Net investment income Interest rate forwards............................. 4 (8) 1 Net derivative gains (losses) Interest rate forwards............................. 2 2 2 Net investment income Foreign currency swaps............................. (679) (725) (15) Net derivative gains (losses) Foreign currency swaps............................. (1) (2) (3) Net investment income Credit forwards.................................... 1 -- -- Net derivative gains (losses) Credit forwards.................................... 1 1 1 Net investment income -------- -------- ------- Gains (losses) on cash flow hedges, before income tax...................................... (578) (682) 14 Income tax (expense) benefit..................... 202 239 (5) -------- -------- ------- Gains (losses) on cash flow hedges, net of income tax...................................... $ (376) $ (443) $ 9 ======== ======== ======= Defined benefit plans adjustment: (1)................ Amortization of net actuarial gains (losses)....... $ (233) $ (180) $ 274 Amortization of prior service (costs) credit....... 4 -- (69) -------- -------- ------- Amortization of defined benefit plan items, before income tax............................... (229) (180) 205 Income tax (expense) benefit..................... 80 64 (71) -------- -------- ------- Amortization of defined benefit plan items, net of income tax............................... $ (149) $ (116) $ 134 ======== ======== ======= Total reclassifications, net of income tax........... $ (786) $ (605) $ 153 ======== ======== =======
-------- (1)These AOCI components are included in the computation of net periodic benefit costs. See Note 15. 130 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, ---------------------------- 2015 2014 2013 -------- -------- -------- (In millions) Compensation............................ $ 2,056 $ 2,257 $ 2,392 Pension, postretirement and postemployment benefit costs.......... 241 322 364 Commissions............................. 685 828 781 Volume-related costs.................... 221 70 253 Affiliated interest costs on ceded and assumed reinsurance................... 807 1,009 1,033 Capitalization of DAC................... (482) (424) (562) Amortization of DAC and VOBA............ 742 695 261 Interest expense on debt................ 122 151 153 Premium taxes, licenses and fees........ 355 328 263 Professional services................... 1,133 1,013 989 Rent and related expenses, net of sublease income....................... 87 128 143 Other (1)............................... 291 (306) (82) -------- -------- -------- Total other expenses.................. $ 6,258 $ 6,071 $ 5,988 ======== ======== ========
-------- (1)See Note 16 for information on the charge related to income tax for the year ended December 31, 2015. 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 commenced an enterprise-wide strategic initiative in 2012. This global strategy focuses on leveraging MetLife's scale to improve the value it provides to customers and shareholders in order to reduce costs, enhance revenues, achieve efficiencies and reinvest in its technology, platforms and functionality to improve its current operations and develop new capabilities. 131 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, ------------------------------------------------------------------------------- 2015 2014 2013 ------------------------- ------------------------- ------------------------- Lease and Lease and Lease and Asset Asset Asset Severance Impairment Total Severance Impairment Total Severance Impairment Total --------- ---------- ----- --------- ---------- ----- --------- ---------- ----- (In millions) Balance at January 1,......... $ 31 $ 6 $ 37 $ 39 $ 6 $ 45 $ 22 $ -- $ 22 Restructuring charges......... 52 4 56 66 8 74 87 16 103 Cash payments................. (66) (6) (72) (74) (8) (82) (70) (10) (80) ---- --- ---- ---- --- ---- ---- ---- ---- Balance at December 31,....... $ 17 $ 4 $ 21 $ 31 $ 6 $ 37 $ 39 $ 6 $ 45 ==== === ==== ==== === ==== ==== ==== ==== Total restructuring charges incurred since inception of initiative.................. $306 $46 $352 $254 $42 $296 $188 $ 34 $222 ==== === ==== ==== === ==== ==== ==== ====
Management estimates further restructuring charges including severance, as well as lease and asset impairments, through the year ending December 31, 2016 to be $5 million. 15. Employee Benefit Plans Pension and Other Postretirement Benefit Plans The Company sponsors and administers various U.S. qualified and nonqualified 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 that are primarily based upon years of credited service and either final average or career 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. The nonqualified pension plans provide supplemental benefits in excess of limits applicable to a qualified plan. Participating affiliates are allocated an equitable share of net expense related to the plans, proportionate to other expenses being allocated to these affiliates. 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. 132 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, ------------------------------------------------------ 2015 2014 -------------------------- -------------------------- Other Other Pension Postretirement Pension Postretirement Benefits (1) Benefits Benefits (1) Benefits ------------ -------------- ------------ -------------- (In millions) Change in benefit obligations Benefit obligations at January 1,................. $ 10,262 $ 2,129 $ 8,130 $ 1,861 Service costs.................................... 217 15 183 14 Interest costs................................... 404 88 413 92 Plan participants' contributions................. -- 30 -- 30 Net actuarial (gains) losses..................... (626) (233) 1,461 264 Settlements and curtailments..................... -- -- (13) (6) Change in benefits and other..................... -- (14) 574 (16) Benefits paid.................................... (497) (109) (486) (109) Effect of foreign currency translation........... -- (1) -- (1) ----------- ---------- ---------- ---------- Benefit obligations at December 31,............... 9,760 1,905 10,262 2,129 ----------- ---------- ---------- ---------- Change in plan assets Estimated fair value of plan assets at January 1,. 8,750 1,426 7,305 1,352 Actual return on plan assets..................... (138) 3 1,018 112 Change in benefits and other..................... -- -- 523 -- Plan participants' contributions................. -- 30 -- 30 Employer contributions........................... 375 22 390 41 Benefits paid.................................... (497) (109) (486) (109) ----------- ---------- ---------- ---------- Estimated fair value of plan assets at December 31,.................................... 8,490 1,372 8,750 1,426 ----------- ---------- ---------- ---------- Over (under) funded status at December 31,....... $ (1,270) $ (533) $ (1,512) $ (703) =========== ========== ========== ========== Amounts recognized on the consolidated balance sheets Other assets..................................... $ -- $ -- $ -- $ -- Other liabilities................................ (1,270) (533) (1,512) (703) ----------- ---------- ---------- ---------- Net amount recognized.......................... $ (1,270) $ (533) $ (1,512) $ (703) =========== ========== ========== ========== AOCI Net actuarial (gains) losses..................... $ 2,894 $ 221 $ 3,034 $ 420 Prior service costs (credit)..................... (1) (14) (2) (10) ----------- ---------- ---------- ---------- AOCI, before income tax........................ $ 2,893 $ 207 $ 3,032 $ 410 =========== ========== ========== ========== Accumulated benefit obligation.................... $ 9,439 N/A $ 9,729 N/A =========== ==========
-------- (1)Includes nonqualified unfunded plans, for which the aggregate PBO was $1.1 billion and $1.3 billion at December 31, 2015 and 2014, respectively. 133 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 15. Employee Benefit Plans (continued) Information for pension plans with PBOs in excess of plan assets and accumulated benefit obligations ("ABO") in excess of plan assets was as follows at:
December 31, ----------------------------------------------------------------- 2015 2014 2015 2014 ---------- ----------- ---------- ---------- PBO Exceeds Estimated Fair Value ABO Exceeds Estimated Fair Value of Plan Assets of Plan Assets -------------------------------- -------------------------------- (In millions) Projected benefit obligations....... $ 9,759 $ 10,241 $ 1,832 $ 1,981 Accumulated benefit obligations..... $ 9,439 $ 9,709 $ 1,751 $ 1,789 Estimated fair value of plan assets. $ 8,490 $ 8,719 $ 646 $ 676
Net Periodic Benefit Costs The 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, -------------------------------------------------------------------------------- 2015 2014 2013 ------------------------- -------------------------- ------------------------- Other Other Other Pension Postretirement Pension Postretirement Pension Postretirement Benefits Benefits Benefits Benefits Benefits Benefits --------- -------------- ---------- -------------- --------- -------------- (In millions) Net periodic benefit costs Service costs................... $ 217 $ 15 $ 200 $ 14 $ 214 $ 17 Interest costs.................. 404 88 437 92 366 85 Settlement and curtailment costs......................... -- -- 14 2 -- -- Expected return on plan assets........................ (538) (80) (475) (75) (453) (74) Amortization of net actuarial (gains) losses................ 190 43 169 11 219 51 Amortization of prior service costs (credit)................ (1) (3) 1 (1) 6 (69) Allocated to affiliates......... (59) (18) (54) (11) (12) -- --------- --------- ---------- -------- --------- --------- Total net periodic benefit costs (credit).............. 213 45 292 32 340 10 --------- --------- ---------- -------- --------- --------- Other changes in plan assets and benefit obligations recognized in OCI Net actuarial (gains) losses.... 50 (156) 996 222 (492) (532) Prior service costs (credit).... -- (7) (18) (12) -- -- Amortization of net actuarial (gains) losses................ (190) (43) (169) (11) (219) (55) Amortization of prior service (costs) credit................ 1 3 (1) 1 (6) 75 --------- --------- ---------- -------- --------- --------- Total recognized in OCI....... (139) (203) 808 200 (717) (512) --------- --------- ---------- -------- --------- --------- Total recognized in net periodic benefit costs and OCI................... $ 74 $ (158) $ 1,100 $ 232 $ (377) $ (502) ========= ========= ========== ======== ========= =========
134 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 15. Employee Benefit Plans (continued) The estimated net actuarial (gains) losses and prior service costs (credit) for the defined benefit pension plans and other postretirement benefit plans that will be amortized from AOCI into net periodic benefit costs over the next year are $193 million and ($1) million, and $13 million and ($7) million, respectively. Assumptions Assumptions used in determining benefit obligations were as follows:
Pension Benefits Other Postretirement Benefits ---------------- ----------------------------- December 31, 2015 Weighted average discount rate..... 4.50% 4.60% Rate of compensation increase...... 2.25% - 8.50% N/A December 31, 2014 Weighted average discount rate..... 4.10% 4.10% Rate of compensation increase...... 2.25% - 8.50% N/A
Assumptions used in determining net periodic benefit costs were as follows:
Pension Benefits Other Postretirement Benefits ---------------- ----------------------------- Year Ended December 31, 2015 Weighted average discount rate..... 4.10% 4.10% Weighted average expected rate of return on plan assets............ 6.25% 5.70% Rate of compensation increase...... 2.25% - 8.50% N/A Year Ended December 31, 2014 Weighted average discount rate..... 5.15% 5.15% Weighted average expected rate of return on plan assets............ 6.25% 5.70% Rate of compensation increase...... 3.50% - 7.50% N/A Year Ended December 31, 2013 Weighted average discount rate..... 4.20% 4.20% Weighted average expected rate of return on plan assets............ 6.24% 5.76% Rate of compensation increase...... 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 2016 is currently anticipated to be 6.00% for pension benefits and 5.52% for other postretirement benefits. 135 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, ------------------------------------- 2015 2014 ------------------- ----------------- Before Age 65 and Before Age 65 and Age 65 older Age 65 older -------- ---------- ------ ---------- Following year............................................. 6.3% 10.3% 6.4% 6.4% Ultimate rate to which cost increase is assumed to decline. 4.2% 4.6% 4.4% 4.7% Year in which the ultimate trend rate is reached........... 2086 2091 2094 2089
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, 2015:
One Percent One Percent Increase Decrease ----------- ----------- (In millions) Effect on total of service and interest costs components. $ 15 $ (12) Effect of accumulated postretirement benefit obligations. $ 253 $ (207)
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 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 136 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 15. Employee Benefit Plans (continued) 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 of the given Managers. 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. 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 estimated 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, 2015 for the Invested Plans:
December 31, ---------------------------------------------------------------------------- 2015 2014 -------------------------------------- ------------------------------------- Other Postretirement Other Postretirement Pension Benefits Benefits Pension Benefits Benefits ----------------- -------------------- ---------------- -------------------- Actual Actual Actual Target Allocation Target Allocation Allocation Actual Allocation ------ ---------- ------ ---------- ---------------- -------------------- Asset Class Fixed maturity securities 80% 71% 76% 73% 69% 71% Equity securities........ 10% 14% 24% 25% 15% 27% Alternative securities (1)......... 10% 15% --% 2% 16% 2% -------- -------- -------- -------- Total assets........... 100% 100% 100% 100% ======== ======== ======== ========
-------- (1)Alternative securities primarily include derivative assets, money market securities, short-term investments and other investments. Other postretirement benefits do not include postretirement life's target and actual allocation of plan assets that are all in short-term investments. 137 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 15. Employee Benefit Plans (continued) Estimated Fair Value The pension and other postretirement benefit plan assets are categorized into a three-level fair value hierarchy, as described in Note 10, based upon the significant input with the lowest level in its valuation. The Level 2 asset category includes certain separate accounts that are primarily invested in liquid and readily marketable securities. The estimated fair value of such separate accounts 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. The Level 3 asset category includes separate accounts that are invested in assets 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. The pension and other postretirement plan assets measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are summarized as follows:
December 31, 2015 --------------------------------------------------------------------- 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.............................. $ -- $ 2,905 $ 78 $ 2,983 $ 18 $ 280 $ 1 $ 299 U.S. government bonds.................. 994 493 -- 1,487 193 12 -- 205 Foreign bonds.......................... -- 677 17 694 -- 61 -- 61 Federal agencies....................... -- 228 -- 228 -- 34 -- 34 Municipals............................. -- 302 -- 302 -- 55 -- 55 Other (1).............................. -- 354 7 361 -- 47 -- 47 -------- -------- ------ -------- ------ ------ ----- -------- Total fixed maturity securities...... 994 4,959 102 6,055 211 489 1 701 -------- -------- ------ -------- ------ ------ ----- -------- Equity securities: Common stock -- domestic............... 751 24 -- 775 126 -- -- 126 Common stock -- foreign................ 378 -- -- 378 111 -- -- 111 -------- -------- ------ -------- ------ ------ ----- -------- Total equity securities.............. 1,129 24 -- 1,153 237 -- -- 237 -------- -------- ------ -------- ------ ------ ----- -------- Other investments....................... -- 84 722 806 -- -- -- -- Short-term investments.................. 10 304 -- 314 1 431 -- 432 Money market securities................. 9 49 -- 58 -- -- -- -- Derivative assets....................... 26 3 75 104 2 -- -- 2 -------- -------- ------ -------- ------ ------ ----- -------- Total assets....................... $ 2,168 $ 5,423 $ 899 $ 8,490 $ 451 $ 920 $ 1 $ 1,372 ======== ======== ====== ======== ====== ====== ===== ========
138 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, 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 ======== ======== ====== ======== ====== ====== ===== ========
-------- (1)Other primarily includes mortgage-backed securities, collateralized mortgage obligations and ABS. 139 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 ---------------------------------------------------------------------- Equity Fixed Maturity Securities Securities --------------------------------- ---------- Common Foreign Stock - Other Derivative Corporate Bonds Other (1) Domestic Investments Assets --------- ------- --------- ---------- ----------- ---------- (In millions) Balance, January 1, 2014........ $ 55 $ 10 $ 19 $ 139 $ 563 $ 33 Realized gains (losses)......... 3 -- -- -- (13) (16) Unrealized gains (losses)....... -- -- -- -- 114 19 Purchases, sales, issuances and settlements, net.............. 11 5 (2) -- (104) 34 Transfers into and/or out of Level 3....................... 11 2 (9) (139) 183 2 ------- ------- ------- --------- --------- -------- Balance, December 31, 2014...... $ 80 $ 17 $ 8 $ -- $ 743 $ 72 Realized gains (losses)......... 1 -- -- -- -- (11) Unrealized gains (losses)....... (5) -- 1 -- 55 (9) Purchases, sales, issuances and settlements, net.............. 8 1 (1) -- (76) 23 Transfers into and/or out of Level 3....................... (6) (1) (1) -- -- -- ------- ------- ------- --------- --------- -------- Balance, December 31, 2015...... $ 78 $ 17 $ 7 $ -- $ 722 $ 75 ======= ======= ======= ========= ========= ========
-------- (1)Other includes ABS and collateralized mortgage obligations. Other postretirement benefit plan assets measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs were not significant for the years ended December 31, 2015 and 2014. 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 2016. The Company expects to make discretionary contributions to the qualified pension plan of $300 million in 2016. For information on employer contributions, see "-- Obligations and Funded Status." Benefit payments due under the nonqualified 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 $65 million to fund the benefit payments in 2016. 140 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 15. Employee Benefit Plans (continued) 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 2016 to pay postretirement medical claims. 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) 2016......................................... $ 512 $ 84 2017......................................... $ 534 $ 85 2018......................................... $ 545 $ 88 2019......................................... $ 563 $ 90 2020......................................... $ 583 $ 93 2021-2025.................................... $ 3,202 $ 501
Additional Information As previously discussed, most of the assets of the pension benefit plans 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 on the consolidated statements of operations were $55 million, $50 million and $49 million for the years ended December 31, 2015, 2014 and 2013, 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 ($130) million, $1.2 billion and $20 million for the years ended December 31, 2015, 2014 and 2013, 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 $72 million, $68 million and $84 million for the years ended December 31, 2015, 2014 and 2013, respectively. 141 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, ------------------------------- 2015 2014 2013 ---------- ---------- --------- (In millions) Current: Federal....................... $ 1,384 $ 901 $ 789 State and local............... 20 3 2 Foreign....................... 36 74 176 ---------- ---------- --------- Subtotal..................... 1,440 978 967 ---------- ---------- --------- Deferred: Federal....................... 315 538 (411) Foreign....................... 27 16 125 ---------- ---------- --------- Subtotal..................... 342 554 (286) ---------- ---------- --------- Provision for income tax expense (benefit)........ $ 1,782 $ 1,532 $ 681 ========== ========== =========
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, -------------------------- 2015 2014 2013 -------- -------- -------- (In millions) Income (loss) from continuing operations: Domestic.................... $ 4,467 $ 5,335 $ 2,540 Foreign..................... 72 56 282 -------- -------- -------- Total...................... $ 4,539 $ 5,391 $ 2,822 ======== ======== ========
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, -------------------------- 2015 2014 2013 -------- -------- ------ (In millions) Tax provision at U.S. statutory rate.............. $ 1,589 $ 1,887 $ 988 Tax effect of: Dividend received deduction. (82) (82) (66) Tax-exempt income........... (24) (40) (42) Prior year tax (1).......... 558 11 29 Low income housing tax credits.................... (221) (205) (190) Other tax credits........... (68) (66) (44) Foreign tax rate differential............... (4) -- 2 Change in valuation allowance.................. (1) -- (4) Other, net.................. 35 27 8 -------- -------- ------ Provision for income tax expense (benefit)........ $ 1,782 $ 1,532 $ 681 ======== ======== ======
-------- (1)As discussed further below, prior year tax includes a $557 million non-cash charge related to an uncertain tax position. 142 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, ------------------ 2015 2014 -------- -------- (In millions) Deferred income tax assets: Policyholder liabilities and receivables........ $ 1,888 $ 1,577 Net operating loss carryforwards................ 26 29 Employee benefits............................... 922 1,015 Tax credit carryforwards........................ 700 979 Litigation-related and government mandated...... 231 259 Other........................................... 438 309 -------- -------- Total gross deferred income tax assets........ 4,205 4,168 Less: Valuation allowance....................... 21 22 -------- -------- Total net deferred income tax assets.......... 4,184 4,146 -------- -------- Deferred income tax liabilities: Investments, including derivatives.............. 3,025 2,402 Intangibles..................................... 53 72 DAC............................................. 1,461 1,568 Net unrealized investment gains................. 2,528 3,903 Other........................................... 5 36 -------- -------- Total deferred income tax liabilities......... 7,072 7,981 -------- -------- Net deferred income tax asset (liability)... $ (2,888) $ (3,835) ======== ========
The Company also has recorded a valuation allowance charge of $1 million related to certain state net operating loss carryforwards. 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. The following table sets forth the domestic and state net operating loss carryforwards for tax purposes at December 31, 2015.
Net Operating Loss Carryforwards -------------------------------- Domestic State ------------ --------- (In millions) Expiration 2016-2020..................... $ -- $ 31 2021-2025..................... -- 50 2026-2030..................... -- 41 2031-2035..................... 14 12 Indefinite.................... -- -- ------- ------ $ 14 $ 134 ======= ======
143 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 general business credits, foreign tax credits, and other credit carryforwards for tax purposes at December 31, 2015.
Tax Credit Carryforwards --------------------------------------------- General Business Credits Foreign Tax Credits Other ---------------- ------------------- -------- (In millions) Expiration 2016-2020.......................... $ -- $ -- $ -- 2021-2025.......................... -- 185 -- 2026-2030.......................... 103 -- -- 2031-2035.......................... 519 -- -- Indefinite......................... -- -- 123 -------- -------- -------- $ 622 $ 185 $ 123 ======== ======== ========
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 $124 million, ($24) million and $157 million for the years ended December 31, 2015, 2014 and 2013, 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 i) 2000 through 2002 where the IRS disallowance relates to certain tax credits claimed--in April 2015, the Company received a Statutory Notice of Deficiency (the "Notice") and paid the tax thereon in September 2015 (see additional details below); and ii) 2003 through 2006, where the IRS disallowance relates predominantly to certain tax credits claimed and the Company is engaged with IRS appeals. Management believes it has established adequate tax liabilities and final resolution for the years 2000 through 2006 is not expected to have a material impact on the Company's consolidated financial statements. The Company recorded a non-cash charge to net income of $792 million, net of tax, during the third quarter of 2015. The charge was related to an uncertain tax position and was comprised of a $557 million charge included in provision for income tax expense (benefit) and a $362 million ($235 million, net of tax) charge included in other expenses. This charge is the result of the Company's consideration of recent decisions of the U.S. Court of Appeals for the Second Circuit upholding the disallowance of foreign tax credits claimed by other corporate entities not affiliated with the Company. The Company's action relates to tax years from 2000 to 2009, during which MLIC held non-U.S. investments in support of its life insurance business through a United Kingdom investment subsidiary that was structured as a joint venture at the time. There has been no change in the Company's position on the disallowance of its foreign tax credits by the IRS. The Company continues to contest the disallowance of these foreign tax credits by the IRS as management believes the facts strongly support the Company's position. The Company will defend its position vigorously and does not expect any additional charges related to this matter. 144 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 16. Income Tax (continued) Also related to the aforementioned foreign tax credit matter, on April 9, 2015, the IRS issued the Notice to the Company. The Notice asserted that the Company owes additional taxes and interest for 2000 through 2002 primarily due to the disallowance of foreign tax credits. The transactions that are the subject of the Notice continue through 2009, and it is likely that the IRS will seek to challenge these later periods. On September 18, 2015, the Company paid the assessed tax and interest of $444 million for 2000 through 2002 and will subsequently file a claim for a refund. On November 19, 2015, $9 million of this amount was refunded from the IRS as an overpayment of interest. 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, ------------------------------ 2015 2014 2013 ---------- -------- -------- (In millions) Balance at January 1,.......................................... $ 546 $ 532 $ 532 Additions for tax positions of prior years (1)................. 558 27 50 Reductions for tax positions of prior years.................... -- (13) (4) Additions for tax positions of current year.................... 4 3 3 Settlements with tax authorities............................... (33) (3) (49) ---------- -------- -------- Balance at December 31,........................................ $ 1,075 $ 546 $ 532 ========== ======== ======== Unrecognized tax benefits that, if recognized would impact the effective rate............................................... $ 1,060 $ 497 $ 491 ========== ======== ========
-------- (1)The significant increase in 2015 is related to the non-cash charge discussed above. 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, ------------------------ 2015 2014 2013 -------- ------- ------- (In millions) Interest recognized on the consolidated statements of operations (1).............. $ 382 $ 37 $ 17
December 31, ----------------- 2015 2014 -------- -------- (In millions) Interest included in other liabilities on the consolidated balance sheets (1)......................... $ 647 $ 265
-------- (1)The significant increase in 2015 is related to the non-cash charge discussed above. The Company had no penalties for the years ended December 31, 2015, 2014 and 2013. 145 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 16. Income Tax (continued) 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 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, 2015, 2014 and 2013, the Company recognized an income tax benefit of $76 million, $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 reasonably estimated at December 31, 2015. 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. 146 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 17. Contingencies, Commitments and Guarantees (continued) 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. As of December 31, 2015, the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $420 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 147 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 17. Contingencies, Commitments and Guarantees (continued) 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 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, -------------------------------------- 2015 2014 2013 --------- --------- --------- (In millions, except number of claims) Asbestos personal injury claims at year end. 67,787 68,460 67,983 Number of new claims during the year........ 3,856 4,636 5,898 Settlement payments during the year (1)..... $ 56.1 $ 46.0 $ 37.0
-------- (1)Settlement payments represent payments made by Metropolitan Life Insurance Company during the year in connection with settlements made in that year and in prior years. Amounts do not include Metropolitan Life Insurance Company's attorneys' fees and expenses. 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 148 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 17. Contingencies, Commitments and Guarantees (continued) 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 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. As previously disclosed, in 2014, Metropolitan Life Insurance Company increased its recorded liability for asbestos-related claims to $690 million. Based upon its regular reevaluation of its exposure from asbestos litigation, Metropolitan Life Insurance Company has updated its liability analysis for asbestos-related claims through December 31, 2015. Regulatory Matters The Company receives and responds to subpoenas or other inquiries seeking a broad range of information 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"). 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 149 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 17. Contingencies, Commitments and Guarantees (continued) 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 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 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 West Virginia Lawsuits 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 (the "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 June 16, 2015, the West Virginia Supreme Court of Appeals reversed the Circuit Court's order that had granted defendants' motions to dismiss the actions and remanded them to the Circuit Court for further proceedings. The defendants intend to defend these actions vigorously. Total Control Accounts Litigation Metropolitan Life Insurance Company is a defendant in a lawsuit related to its use of retained asset accounts, known as TCA, as a settlement option for death benefits. Owens v. Metropolitan Life Insurance Company (N.D. Ga., filed April 17, 2014) Plaintiff filed this putative class action lawsuit on behalf of all persons for whom Metropolitan Life Insurance Company established a TCA to pay death benefits under an ERISA plan. The action alleges that Metropolitan Life Insurance Company's use of the TCA as the settlement option for life insurance benefits 150 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 17. Contingencies, Commitments and Guarantees (continued) under some group life insurance policies violates 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. The court denied Metropolitan Life Insurance Company's motion to dismiss the complaint. The Company intends to defend this action vigorously. Reinsurance Litigation Robainas, et al. v. Metropolitan Life Ins. Co. (S.D.N.Y., December 16, 2014) Plaintiffs filed this putative class action lawsuit 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"). Two similar actions were subsequently filed, Yale v. Metropolitan Life Ins. Co. (S.D.N.Y., January 12, 2015) and International Association of Machinists and Aerospace Workers District Lodge 15 v. Metropolitan Life Ins. Co. (E.D.N.Y., February 2, 2015). Both of these actions were consolidated with the Robainas action. The consolidated complaint alleges 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 lawsuit sought recovery under Section 4226 of the New York Insurance Law of a statutory penalty in the amount of the premiums paid for the Policies. On October 9, 2015, the court granted Metropolitan Life Insurance Company's motion to dismiss the consolidated complaint, finding that plaintiffs lacked Article III standing because they did not allege any concrete injury as a result of the alleged conduct. Plaintiffs appealed this decision to the Second Circuit Court of Appeals. Intoccia v. Metropolitan Life Ins. Co. (S.D.N.Y., April 20, 2015) Plaintiffs filed this putative class action on behalf of themselves and all persons and entities who, directly or indirectly, purchased, renewed or paid premiums for Guaranteed Benefits Insurance Riders attached to variable annuity contracts with Metropolitan Life Insurance Company from 2009 through 2015 (the "Annuities"). The court consolidated Weilert v. Metropolitan Life Ins. Co. (S.D.N.Y., April 30, 2015) with the Intoccia case, and the consolidated, amended complaint alleges 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 Guaranteed Benefits Insurance Riders attached to the Annuities. The Court granted Metropolitan Life Insurance Company's motion to dismiss, adopting the reasoning of the Robainas decision. Plaintiffs appealed this decision to the Second Circuit Court of Appeals. 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 151 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 17. Contingencies, Commitments and Guarantees (continued) 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' motions for summary judgment. The court has set a June 6, 2016 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. Fauley v. Metropolitan Life Insurance Co., et al. (Circuit Court of the 19th Judicial Circuit, Lake County, Ill., July 3, 2014). Plaintiffs filed this lawsuit 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. The court issued a final order certifying a nationwide settlement class and approving 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 August 7, 2014. On March 23, 2016, the intermediate appellate court affirmed the trial court's order. Voshall v. Metropolitan Life Ins. Co. (Superior Court of the State of California, County of Los Angeles, April 8, 2015) Plaintiff filed this putative class action lawsuit on behalf of himself and all persons covered under a long-term group disability income insurance policy issued by Metropolitan Life Insurance Company to public 152 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 17. Contingencies, Commitments and Guarantees (continued) entities in California between April 8, 2011 and April 8, 2015. Plaintiff alleges that Metropolitan Life Insurance Company improperly reduced benefits by including cost of living adjustments and employee paid contributions in the employer retirement benefits and other income that reduces the benefit payable under such policies. Plaintiff asserts causes of action for declaratory relief, violation of the California Business & Professions Code, breach of contract and breach of the implied covenant of good faith and fair dealing. The Company intends to defend this action vigorously. Martin v. Metropolitan Life Insurance Company, (Superior Court of the State of California, County of Contra Costa, filed December 17, 2015) Plaintiffs filed this this putative class action lawsuit on behalf of themselves and all California persons who have been charged compound interest by Metropolitan Life Insurance Company in life insurance policy and/or premium loan balances within the last four years. Plaintiffs allege that Metropolitan Life Insurance Company has engaged in a pattern and practice of charging compound interest on life insurance policy and premium loans without the borrower authorizing such compounding, and that this constitutes an unlawful business practice under California law. Plaintiff asserts causes of action for declaratory relief, violation of California's Unfair Competition Law and Usury Law, and unjust enrichment. Plaintiff seeks declaratory and injunctive relief, restitution of interest, and damages in an unspecified amount. The Company intends to defend this action vigorously. Lau v. Metropolitan Life Insurance Co. (S.D.N.Y. filed, December 3, 2015) This putative class action lawsuit was filed by a single defined contribution plan participant on behalf of all ERISA plans whose assets were invested in Metropolitan Life Insurance Company's "Group Annuity Contract Stable Value Funds" within the past six years. The suit alleges breaches of fiduciary duty under ERISA and challenges the "spread" with respect to the stable value fund group annuity products sold to retirement plans. The allegations focus on the methodology Metropolitan Life Insurance Company uses to establish and reset the crediting rate, the terms under which plan participants are permitted to transfer funds from a stable value option to another investment option, the procedures followed if an employer terminates a contract, and the level of disclosure provided. Plaintiff seeks declaratory and injunctive relief, as well as damages in an unspecified amount. The Company intends to defend this action 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, other products or the misuse of client assets. 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 153 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 17. Contingencies, Commitments and Guarantees (continued) limited to, in connection with its activities as an insurer, investor 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. 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, --------------- 2015 2014 ------- ------- (In millions) Other Assets: Premium tax offset for future discounted and undiscounted assessments. $ 29 $ 34 Premium tax offsets currently available for paid assessments.......... 50 65 ------- ------- $ 79 $ 99 ======= ======= Other Liabilities: Insolvency assessments................................................ $ 43 $ 50 ======= =======
154 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) 2016....... $ 241 2017....... 202 2018....... 189 2019....... 160 2020....... 154 Thereafter. 859 -------- Total..... $ 1,805 ========
Total minimum rentals to be received in the future under non-cancelable subleases were $93 million as of December 31, 2015. Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $4.2 billion and $3.9 billion at December 31, 2015 and 2014, 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 $4.4 billion and $3.6 billion at December 31, 2015 and 2014, 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 155 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 17. Contingencies, Commitments and Guarantees (continued) cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $800 million, with a cumulative maximum of $1.2 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 $4 million and $3 million at December 31, 2015 and 2014, respectively, for indemnities, guarantees and commitments. 18. Quarterly Results of Operations (Unaudited) The unaudited quarterly results of operations for 2015 and 2014 are summarized in the table below:
Three Months Ended --------------------------------------------- March 31, June 30, September 30, December 31, --------- -------- ------------- ------------ (In millions) 2015 Total revenues............................................ $ 9,862 $ 8,833 $ 10,772 $ 9,304 Total expenses............................................ $ 8,170 $ 7,945 $ 9,637 $ 8,480 Income (loss) from continuing operations, net of income tax..................................................... $ 1,190 $ 668 $ 268 $ 631 Income (loss) from discontinued operations, net of income tax..................................................... $ -- $ -- $ -- $ -- Net income (loss)......................................... $ 1,190 $ 668 $ 268 $ 631 Less: Net income (loss) attributable to noncontrolling interests............................................... $ 1 $ 6 $ (8) $ 1 Net income (loss) attributable to Metropolitan Life Insurance Company....................................... $ 1,189 $ 662 $ 276 $ 630 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
156 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, $2.1 billion and $2.4 billion for the years ended December 31, 2015, 2014 and 2013, respectively. Revenues received from affiliates related to these agreements, recorded in universal life and investment-type product policy fees, were $135 million, $129 million and $127 million for the years ended December 31, 2015, 2014 and 2013, respectively. Revenues received from affiliates related to these agreements, recorded in other revenues, were $151 million, $177 million and $142 million for the years ended December 31, 2015, 2014 and 2013, 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 $1.5 billion, $1.8 billion and $1.4 billion for the years ended December 31, 2015, 2014 and 2013, respectively, and were reimbursed to the Company by these affiliates. The Company had net payables to affiliates, related to the items discussed above, of $282 million and $169 million at December 31, 2015 and 2014, respectively. See Notes 6, 8, 9, 12, 13 and 15 for additional information on related party transactions. 20. Subsequent Events Common Stock Dividend On March 15, 2016, Metropolitan Life Insurance Company paid an ordinary cash dividend to MetLife, Inc. of $1.5 billion. Sales Distribution Services On February 28, 2016, MetLife, Inc. entered into a purchase agreement with Massachusetts Mutual Life Insurance Company ("MassMutual") pursuant to which MassMutual will acquire MetLife's U.S. Retail advisor force, the MetLife Premier Client Group, together with its affiliated broker-dealer, MetLife Securities, Inc., a wholly-owned subsidiary of MetLife, Inc., and certain related assets. As part of the transaction, MetLife, Inc. and MassMutual have also agreed to enter into a product development agreement under which MetLife's U.S. Retail business will be the exclusive developer of certain annuity products to be issued by MassMutual. The transaction is subject to certain closing conditions, including regulatory approval. 157 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (continued) 20. Subsequent Events (continued) The Separation On January 12, 2016, MetLife, Inc. announced its plan to pursue the Separation. MetLife is currently evaluating structural alternatives for the proposed Separation, including a public offering of shares in an independent, publicly traded company, a spin-off, or a sale. The completion of a public offering would depend on, among other things, the SEC filing and review process, as well as market conditions. Any Separation that might occur will be subject to the satisfaction of various conditions and approvals, including approval of any transaction by the MetLife, Inc. Board of Directors, satisfaction of any applicable requirements of the SEC, and receipt of insurance and other regulatory approvals and other anticipated conditions. MetLife expects that the life insurance closed block and the life and annuity business sold through Metropolitan Life Insurance Company will not be a part of the Separation. Metropolitan Life Insurance Company would no longer write new retail life and annuity business post-Separation. 158 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, 2015 (In millions)
Amount at Cost or Estimated Fair Which Shown on Amortized Cost (1) Value Balance Sheet Types of Investments ------------------ -------------- ---------------- Fixed maturity securities: Bonds: U.S. Treasury and agency securities........ $ 36,183 $ 39,693 $ 39,693 Public utilities........................... 10,186 10,681 10,681 State and political subdivision securities. 6,070 6,974 6,974 Foreign government securities.............. 3,178 3,606 3,606 All other corporate bonds.................. 75,375 76,682 76,682 ---------------- -------- ---------------- Total bonds.............................. 130,992 137,636 137,636 Mortgage-backed and asset-backed securities.. 36,407 37,061 37,061 Redeemable preferred stock................... 962 989 989 ---------------- -------- ---------------- Total fixed maturity securities........ 168,361 175,686 175,686 ---------------- -------- ---------------- Trading and fair value option securities...... 463 431 431 ---------------- -------- ---------------- Equity securities: Common stock: Industrial, miscellaneous and all other.... 1,103 1,066 1,066 Public utilities........................... 195 177 177 Non-redeemable preferred stock............... 687 706 706 ---------------- -------- ---------------- Total equity securities................ 1,985 1,949 1,949 ---------------- -------- ---------------- Mortgage loans held-for-investment............ 53,722 53,722 Policy loans.................................. 8,134 8,134 Real estate and real estate joint ventures.... 5,968 5,968 Real estate acquired in satisfaction of debt.. 40 40 Other limited partnership interests........... 4,088 4,088 Short-term investments........................ 5,595 5,595 Other invested assets......................... 16,869 16,869 ---------------- ---------------- Total investments...................... $ 265,225 $ 272,482 ================ ================
-------- (1)The Company's trading and FVO 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. 159 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule III Consolidated Supplementary Insurance Information December 31, 2015, 2014 and 2013 (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) -------------------- -------- ----------------------- ------------ ------------ ----------------- ----------- 2015 Retail.............. $ 5,630 $ 64,197 $ 30,204 $ 624 $ 36 $ 522 Group, Voluntary & Worksite Benefits. 303 21,477 8,193 -- 269 -- Corporate Benefit Funding........... 105 41,696 56,023 -- -- 33 Corporate & Other... 5 528 -- -- 3 -- -------- ---------- --------- ------ ------ ------ Total.............. $ 6,043 $ 127,898 $ 94,420 $ 624 $ 308 $ 555 ======== ========== ========= ====== ====== ====== 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 ======== ========== ========= ====== ====== ======
-------- (1)Amounts are included within the future policy benefits, other policy-related balances and policyholder dividend obligation column. (2)Includes premiums received in advance. 160 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule III Consolidated Supplementary Insurance Information -- (continued) December 31, 2015, 2014 and 2013 (In millions)
Policyholder Amortization of Benefits and DAC and Premiums and Claims and VOBA Universal 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) ---------------------------- ------------------- ---------- ----------------- --------------- ------------ 2015 Retail...................... $ 5,758 $ 5,039 $ 6,320 $ 691 $ 2,691 Group, Voluntary & Worksite Benefits.................. 15,439 1,655 14,125 32 2,234 Corporate Benefit Funding... 3,205 4,850 6,185 20 459 Corporate & Other........... 116 33 80 (1) 1,396 --------- --------- --------- ------ -------- Total...................... $ 24,518 $ 11,577 $ 26,710 $ 742 $ 6,780 ========= ========= ========= ====== ======== 2014 Retail...................... $ 5,640 $ 5,150 $ 6,170 $ 652 $ 2,619 Group, Voluntary & Worksite Benefits.................. 15,097 1,618 13,977 26 2,155 Corporate Benefit Funding... 2,985 4,780 5,805 17 458 Corporate & Other........... 128 345 77 -- 1,384 --------- --------- --------- ------ -------- Total...................... $ 23,850 $ 11,893 $ 26,029 $ 695 $ 6,616 ========= ========= ========= ====== ======== 2013 Retail...................... $ 5,456 $ 5,077 $ 6,059 $ 217 $ 2,956 Group, Voluntary & Worksite Benefits.................. 14,420 1,594 13,346 25 2,005 Corporate Benefit Funding... 2,886 4,585 5,813 19 461 Corporate & Other........... 76 529 67 -- 1,510 --------- --------- --------- ------ -------- Total...................... $ 22,838 $ 11,785 $ 25,285 $ 261 $ 6,932 ========= ========= ========= ====== ========
-------- (1)Includes other expenses and policyholder dividends, excluding amortization of DAC and VOBA charged to other expenses. See Note 2 of the Notes to the Consolidated Financial Statements for information on certain segment reporting changes during the first quarter of 2015, which were retrospectively applied. 161 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule IV Consolidated Reinsurance December 31, 2015, 2014 and 2013 (In millions)
% Amount Assumed Gross Amount Ceded Assumed Net Amount to Net ------------ ---------- ---------- ------------ -------- 2015 Life insurance in-force..... $ 3,035,399 $ 361,355 $ 811,435 $ 3,485,479 23.3% ============ ========== ========== ============ Insurance premium Life insurance (1).......... $ 14,449 $ 1,143 $ 1,638 $ 14,944 11.0% Accident & health insurance. 7,048 99 41 6,990 0.6% ------------ ---------- ---------- ------------ Total insurance premium.... $ 21,497 $ 1,242 $ 1,679 $ 21,934 7.7% ============ ========== ========== ============ 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 & 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 & health insurance. 6,470 97 46 6,419 0.7% ------------ ---------- ---------- ------------ Total insurance premium.... $ 20,290 $ 1,284 $ 1,469 $ 20,475 7.2% ============ ========== ========== ============
-------- (1)Includes annuities with life contingencies. For the year ended December 31, 2015, reinsurance ceded and assumed included affiliated transactions for life insurance in-force of $23.1 billion and $276.7 billion, respectively, and life insurance premiums of $40 million and $701 million, respectively. 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. 162 [THIS PAGE INTENTIONALLY LEFT BLANK] [THIS PAGE INTENTIONALLY LEFT BLANK] 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 (File No. 033-47927) filed April 30, 1997.) (b) None (c) (i) Form of Broker Agreement (Incorporated herein by reference to Post-Effective Amendment No. 5 to the Registrant's Registration Statement (File No. 033-47927) filed April 30, 1997.) (ii) Forms of Selling Agreement (Incorporated herein by reference to the Post-Effective Amendment No. 18 to the Registrant's Registration Statement on Form N-6 (File No. 033-47927) filed April 30, 2004.) (iii) Form of Retail Sales Agreement (Incorporated herein by reference to 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 (Incorporation 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) as 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) Flexible Premium Variable Life Policy (Incorporated herein by reference to Pre-Effective Amendment No. 2 to the Registrant's Registration Statement on Form N-6 (File No. 333-147508) filed April 4, 2008.) (ii) Riders: Accelerated Death Benefit Rider, Accidental Death Benefit Rider, Children's Term Insurance, Guaranteed Minimum Death Benefit Rider, Guaranteed Survivor Income Benefit Rider, Options to Purchase Additional Insurance Coverage Rider, Overloan Protection Rider, Waiver of Monthly Deduction Rider, Waiver of Specified Premium Rider ((Incorporated herein by reference to Pre-Effective Amendment No. 2 to the Registrant's Registration Statement on Form N-6 (File No. 333-147508) filed April 4, 2008.) (e) (i) Enterprise Application for Policy (Incorporated herein by reference to the Registrant's Registration Statement on Form N-6 (File No. 333-147508) filed November 19, 2007.) (ii) Application Supplements (Incorporated herein by reference to Pre-Effective Amendment No. 2 to the Registrant's Registration Statement on Form N-6 (File No. 333-147508) filed April 4, 2008.) (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 on April 6, 2000.) (ii) Amended and Restated Charter and By-laws of Metropolitan Life (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.) (iii) Amended and Restated By-Laws of Metropolitan Life (Incorporation 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) (i) Reinsurance Contracts (Incorporated herein by reference to Post-Effective Amendment No. 4 to the Registrant's Registration Statement on Form N-6 (File No. 333-147508) filed April 12, 2012.) (ii) Reinsurance Contract Amendments dated June 25, 2012 and November 30, 2012 (Incorporated herein by reference to Post-Effective Amendment No.5 to the Registrant's Registration Statement on Form N-6 (File No. 333-147508) filed April 11, 2013.) (iii) Reinsurance Contract Amendments (Filed herewith) (h) (i) Participation Agreement among Metropolitan Series Fund, Inc., MetLife Advisers, LLC, MetLife Investors Distribution Company 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.) (ii) Participation Agreement among Met Investors Series Trust, Metropolitan Life Insurance Company, Met Investors Advisory Corp and MetLife Investors Distribution Company (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.) (iii) Participation Agreement among American Funds Insurance Series, Capital Research and Management Company and Metropolitan Life Insurance Company dated April 30th, 2001 (Incorporated herein by reference to Metropolitan Life Separate Account E's Registration Statement of Metropolitan Life Separate Account E of Form N-4 (File No. 333-52366) filed August 3, 2001.) (iv) Participation Agreement among Franklin Templeton Variable Insurance Products Trust, Franklin Templeton Distributors, Inc. and Metropolitan Life Insurance Company dated April 30, 2004 (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.) (v) 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.) (vi) Amendment to the American Funds Insurance Series Participation Agreement dated April 30, 2010 (Incorporated herein by reference to Exhibit (3)(d)(i) in Post-Effective Amendment No. 15 to Metropolitan Life Separate Account E's Registration Statement on Form N-4 (File No. 333-83716) filed April 12, 2011.) (vii) Amendment to the Participation Agreement with Franklin Templeton Variable Insurance Trust (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.) (viii) Amendments to the Participation Agreements with Franklin Templeton Variable Insurance Products Trust, Met Investors Series Trust and Metropolitan Series Fund, Inc. (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.) (ix) Amendment to the Participation Agreement with Franklin Templeton Variable Insurance Products Trust (Incorporated herein by reference to Post-Effective Amendment No. 26 to the Registrant's Registration Statement on Form N-6 (File No. 033-57320) filed April 11, 2013.) (x) Amendment No. 5 to Amended and Restated Participation Agreement with Franklin Templeton Variable Insurance Products Trust (Incorporated herein by reference to Post-Effective Amendment No. 6 to the Registrant's Registration Statement on Form N-6 (File No. 333-147508) filed April 11, 2014.) (xi) Amendment No. 4 to Participation Agreement between Metropolitan Life Insurance Company, American Funds Insurance Series and Capital Research and Management Company dated November 19, 2014 (Incorporated herein by reference to Post-Effective Amendment No. 18 to Metropolitan Life Separate Account E's Registration Statement on Form N-4 (File No. 333-176654) filed April 13, 2016.) (xii) Amendment to Amended and Restated Participation Agreement with Franklin Templeton Variable Insurance Products Trust (Filed herewith.) (i) None (j) None (k) Opinion and Consent of Marie C. Swift as to the legality of the securities being registered (Incorporated herein by reference to Pre-Effective Amendment No. 2 to the Registrant's Registration Statement on Form N-6 (File No. 333-147508) filed April 4, 2008.) (l) Actuarial Opinion and Consent (Filed herewith) (m) Calculation Exhibit (Filed herewith) (n) Consent of Independent Registered Public Accounting Firm (Filed herewith) (o) None (p) None (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. 5 to the Registrant's Registration Statement (File No. 033-47927) filed April 30, 1997.) (ii) Addendum to Memoranda describing certain procedures filed pursuant to Rule 6e-3(T)(b)(12)(iii) (Incorporated herein by reference to Post-Effective Amendment No. 21 to the Registrant's Registration Statement on Form N-6 (File No. 033-47927) filed April 18, 2007.) (r) Powers of Attorney (Filed herewith) ITEM 27. DIRECTORS AND OFFICERS OF DEPOSITOR
NAME AND PRINCIPAL BUSINESS POSITION AND OFFICES WITH ADDRESS DEPOSITOR ------------------------------------- ----------------------------- Steven A. Kandarian Chairman of the Board, MetLife, Inc, and President and Chief Executive Metropolitan Life Insurance Company Officer and a Director 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, D.C. 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
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 Americas, New York, NY 10036 unless otherwise indicated.
NAME POSITIONS WITH DEPOSITOR --------------------- ------------------------------- Steven A. Kandarian Chairman of the Board, MetLife, Inc. and President and Chief Executive Metropolitan Life Insurance Company Officer and a Director 200 Park Avenue New York, NY 10166
Michel A. Khalaf President, Europe/Middle The Gate Building Dubai East/Africa Division 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
Ricardo A. Anzaldua Executive Vice President
and General Counsel Margery A. Britton Executive Vice President
Peter M. Carlson Executive Vice President and Chief Accounting Officer
Graham S. Cox Executive Vice President 10 Park Avenue Morristown, NJ 07962
Marlene B. Debel Executive Vice President and Treasurer
Karl R. Erhardt Executive Vice President and Chief Auditor
Elizabeth M. Forget Executive Vice President Gragg Building 11225 North Community House Road Charlotte, NC 28277
Steven J. Goulart Executive Vice President and Chief 10 Park Avenue Investment Officer Morristown, NJ 07962
John C.R. Hele Executive Vice President and Chief Financial Officer
David W. Henderson Executive Vice President
Franciscus Hijkoop Executive Vice President and Chief Human Resources Officer
Gary Hoberman Executive Vice President
Adam M. Hodes Executive Vice President
William R. Hogan Executive Vice President
Todd B. Katz Executive Vice President
Paul A. LaPiana Executive Vice President Gragg Building 11225 North Community House Road Charlotte, NC 28277
Esther S. Lee Executive Vice President, Global Chief Marketing Office
Robin F. Lenna Executive Vice President 200 Park Avenue, 12th Floor New York, NY 10166
Martin J. Lippert Executive Vice President, Global Technology & Operations
Jeanmarie McFadden Executive Vice President
Maria R. Morris Executive Vice President, Global Employee Benefits
James J. O'Donnell Executive Vice President 101 MetLife Way Cary, NC 27513
Kishore Ponnavolu Executive Vice President 700 Quaker Lane Warwick, RI 02886
Andrew D. Rallis Executive Vice President 501 Route 22 Bridgewater, NJ 08807
Douglas A. Rayvid Executive Vice President and Chief 501 Route 22 Compliance officer Bridgewater, NJ 08807
James W. Reid Executive Vice President 501 Route 22 Bridgewater, NJ 08807
Oscar Schmidt Executive Vice President
Sachin Shah Executive Vice President 4-1-3 Taihei Sumida-ku 13 130-0012 Japan
Christopher B. Smith Executive Vice President
Joseph W. Sprouls Executive Vice President
Eric T. Steigerwalt Executive Vice President Gragg Building 11225 North Community House Road Charlotte, NC 28277
Rebecca Tadikonda Executive Vice President and Chief Strategy Officer
Stanley J. Talbi Executive Vice President
Michael C. Walsh Executive Vice President 700 Quaker Lane Warwick, RI 02886
Steven Weinreb Executive Vice President 6-3-1 Toyo Koto-ku 13 135-0016 Japan
Thomas Wolf Executive Vice President 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101
Michael A. Zarcone Executive Vice President 111 Washington Avenue, Suite 300 Albany, NY 12210
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, 2015 The following is a list of subsidiaries of MetLife, Inc. updated as of December 31, 2015. 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. 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) D. MetLife Chile Inversiones Limitada (Chile) - 72.35% of MetLife Chile Inversiones Limitada is owned by MetLife, Inc., 24.88% by American Life Insurance Company ("ALICO"), 2.76% is owned by Inversiones MetLife Holdco Dos Limitada and 0.01% is owned by Natiloportem Holdings, LLC and the rest by Third Parties. 1. MetLife Chile Seguros de Vida S.A. (Chile) - 99.995% of MetLife Chile Seguros de Vida S.A. is held by MetLife Chile Inversiones Limitada and 0.005% by International Technical and Advisory Services Limited ("ITAS"). a) MetLife Chile Administradora de Mutuos Hipotecarios S.A. (Chile) - 99.9% of MetLife Chile Administradora de Mutuos Hipotecarios S.A. is held by MetLife Chile Seguros de Vida S.A. and 0.1% 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) - 97.13% of Inversiones MetLife Holdco Tres Limitada is owned by MetLife Chile Inversiones Limitada and 2.87% is owned by Inversiones MetLife Holdco Dos Limitada. a) AFP Provida S.A. - 41.959% of AFP Provida S.A. is owned by Inversiones MetLife Holdco Dos Limitada., 41.959% is owned by Inversiones MetLife Holdco Tres Limitada, 10.7% is owned by MetLife Chile Inversiones Limitada and the remainder is owned by the public. i) Provida Internacional S.A. - 99.99% of Provida Internacional S.A. is owned by AFP Provida S.A and 0.01% is owned by MetLife Chile Inversiones Limitada. 1) 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 0.01% by AFP Provida S.A. 4. MetLife Chile Seguros Generales S.A. (Chile) - 99.98% of MetLife Chile Seguros Generales, S.A. is owned by MetLife Chile Inversiones Limitada and 0.02% is owned by Inversiones MetLife Holdco Dos Limitada. E. MetLife Securities, Inc. (DE) F. Enterprise General Insurance Agency, Inc. (DE) G. 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) H. First MetLife Investors Insurance Company (NY) I. Newbury Insurance Company, Limited (DE) J. MetLife Investors Group, LLC (DE) 1. MetLife Investors Distribution Company (MO) 2. MetLife Advisers, LLC (MA) 1 K. 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) 1) OMI MLIC Investments Limited (Cayman Islands) 3. Sandpiper Cove Associates II, LLC 4. MLIC Asset Holdings II LLC (DE) a) El Conquistador MAH II LLC (DE) b) Mansell Office, LLC (DE) - 73.0284% is owned by MLIC Asset Holdings II, LLC and 29.9716% is owned by MLIC CB Holdings LLC. i) Mansell Retail, LLC (DE) - 73.0284% is owned by MLIC Asset Holdings II, LLC and 29.9716% is owned by MLIC CB Holdings LLC. 5. CC Holdco Manager, LLC (DE) 6. Alternative Fuel I, LLC (DE) 7. Transmountain Land & Livestock Company (MT) 8. HPZ Assets LLC (DE) 9. Missouri Reinsurance, Inc. (Cayman Islands) 10. Metropolitan Tower Realty Company, Inc. (DE) a) Midtown Heights, LLC (DE) 11. ML New River Village III, LLC (DE) 12. MetLife RC SF Member, LLC (DE) 13. MetLife Private Equity Holdings, LLC (DE) 14. 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) Met Canada Solar ULC (Canada) 15. Hyatt Legal Plans, Inc. (DE) a) Hyatt Legal Plans of Florida, Inc. (FL) 16. MetLife Holdings, Inc. (DE) a) MetLife Credit Corp. (DE) b) MetLife Funding, Inc. (DE) 17. MetLife Investments Asia Limited (Hong Kong) 18. MetLife Investments Limited (United Kingdom)- 23rd Street Investments, Inc. holds one share of MetLife Investments Limited. 19. MetLife Latin America Asesorias e Inversiones Limitada (Chile)- 23rd Street Investments, Inc. holds 0.01% of MetLife Latin America Asesorias e Inversiones Limitada. 20. New England Life Insurance Company (MA) 21. General American Life Insurance Company (MO) a) GALIC Holdings LLC (DE) 22. Corporate Real Estate Holdings, LLC (DE) 23. Ten Park SPC (Cayman Islands) - 1% voting control of Ten Park SPC is held by 23rd Street Investments, Inc. 24. MetLife Tower Resources Group, Inc. (DE) 25. Headland-Pacific Palisades, LLC (CA) 26. Headland Properties Associates (CA) - 99% is owned by Metropolitan Life Insurance Company and 1% is owned by Headland-Pacific Palisades, LLC. 27. WFP 1000 Holding Company GP, LLC (DE) 28. White Oak Royalty Company (OK) 29. 500 Grant Street GP LLC (DE) 30. 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. 31. 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) 32. MetLife Retirement Services LLC (NJ) a) MetLife Associates LLC (DE) 33. Euro CL Investments, LLC (DE) 34. MEX DF Properties, LLC (DE) 35. 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. 36. MetLife Properties Ventures, LLC (DE) a) Citypoint Holdings II Limited (United Kingdom) 37. 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. 38. MLIC Asset Holdings LLC (DE) 39. 85 Broad Street Mezzanine LLC (DE) 40. The Building at 575 Fifth Avenue Mezzanine LLC (DE) a) The Building at 575 Fifth Retail Holding LLC (DE) b) The Building at 575 Fifth Retail Owner LLC (DE) 41. ML Bridgeside Apartments LLC (DE) 42. 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. 43. MLIC CB Holdings LLC (DE) 44. LAR Vivienda XVII, S. de R.L. de C.V. (Mexico) - 99.99% of LAR Vivienda XVII S. de R.L. de C.V. is owned by MEX DF Properties, LLC and 0.01% is owned by Euro CL Investments LLC. 45. The Worthington Series Trust (DE) 46. 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. 47. Oconee Hotel Company, LLC (DE) 48. Oconee Land Company, LLC (DE) a) Oconee Land Development Company, LLC (DE) b) Oconee Golf Company, LLC (DE) c) Oconee Marina Company, LLC (DE) 2 49. 1201 TAB Manager, LLC (DE) 50. 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. 51. 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. 52. Ashton Southend GP, LLC (DE) 53. 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. 54. 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. 55. 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. 56. Ardrey Kell Townhomes, LLC (DE) 57. Boulevard Residential, LLC (DE) 58. 465 N. Park Drive, LLC (DE) 59. Ashton Judiciary Square, LLC (DE) 60. 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. 61. 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. 62. Marketplace Residences, LLC (DE) 63. ML Swan Mezz, LLC (DE) a) ML Swan GP, LLC (DE) 64. ML Dolphin Mezz, LLC (DE) a) ML Dolphin GP, LLC (DE) 65. Haskell East Village, LLC (DE) 66. 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 67. ML Terraces, LLC (DE) 68. Chestnut Flats Wind, LLC (DE) 69. MetLife 425 MKT Member, LLC (DE) 70. MetLife OFC Member, LLC (DE) 71. MetLife THR Investor, LLC (DE) - 85% of MetLife THR Investor, LLC is owned by MLIC and 15% is owned by MetLife Insurance Company USA. 72. ML Southmore, LLC (DE) - 75.12% of ML Southmore, LLC is owned by MLIC and 24.88% is owned by MetLife Insurance Company USA. 73. 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. 74. MetLife CB W/A, LLC (DE) 75. 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. 76. 10700 Wilshire, LLC (DE) 77. Viridian Miracle Mile, LLC (DE) 78. 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. 79. MetLife OBS Member, LLC (DE) 80. MetLife 1007 Stewart, LLC (DE) 81. ML-AI MetLife Member 2, LLC (DE) - 82% of ML-AI MetLife Member 2, LLC's ownership interest is owned by MLIC and 18% by MetLife Insurance Company USA. 82. MetLife Treat Towers Member, LLC (DE) 83. MetLife FM Hotel Member, LLC (DE) a) LHCW Holdings (U.S.) LLC (DE) i) LHC Holdings (U.S.) LLC (DE) 1) LHCW Hotel Holding LLC (DE) aa) LHCW Hotel Holding (2002) LLC (DE) bb) LHCW Hotel Operating Company (2002) LLC (DE) 84. 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. 85. MetLife SP Holdings, LLC (DE) 86. Buford Logistics Center, LLC (DE) 87. ML North Brand Member, LLC (DE) 88. MetLife Park Tower Member, LLC (DE) a) Park Tower REIT, Inc. (DE) i) Park Tower JV Member, LLC (DE) 89. MCPP Owners, LLC (DE) - 60.427% of MCPP Owners, LLC is owned by MLIC, 5.435% by MetLife Insurance Company USA, 0.603% by General American Life Insurance Company, 1.616% by Metropolitan Tower Life Insurance Company, 13.278% MTL Leasing, LLC, and 18.641% by Daniel/MetLife Midtown Atlanta Master Limited Liability Company. 90. MetLife HCMJV 1 GP, LLC (DE) 91. MetLife HCMJV 1 LP, LLC (DE) L. MetLife Capital Trust IV (DE) M. MetLife Insurance Company USA (DE) 1. MetLife Property Ventures Canada ULC (Canada) 2. MetLife Canadian Property Ventures LLC (NY) 3. Metropolitan Connecticut Property Ventures, LLC (DE) 4. Euro TI Investments LLC (DE) 5. Greenwich Street Investments, L.L.C. (DE) a) 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 Venture, 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. 19. ML 1065 Hotel, LLC 20. Daniel/MetLife Midtown Atlanta Master Limited Liability Company (DE) a) 1075 Peachtree, LLC (DE) 3 N. MetLife Reinsurance Company of South Carolina (SC) O. MetLife Investment Advisors, 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) - 88.22% of the Limited partnership interests of this entity is owned by MetLife Insurance K.K. and 9.47% is owned by MetLife Insurance Company of Korea Limited, 2.29% is owned by MetLife Limited (Hong Kong) and 0.02% is owned by MetLife Alternative, GP d) MetLife International PE Fund III, LP - 88.93% of the limited partnership interests of MetLife International PE Fund III LP is owned by MetLife Insurance K.K, 7.91% is owned by MetLife Insurance Company of Korea Limited, 2.61% is owned by MetLife Limited (Hong Kong), and 0.55% is owned by Metropolitan Life Insurance Company of Hong Kong Limited. 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) 1) MetLife Core Property Holdings, LLC (DE) - MetLife Core Property Holdings, LLC also holds the following single-property limited liability companies: MCP Denver Pavilions Member, LLC, MCP SoCal Industrial- Springdale, LLC, MCP SoCal Industrial-Redondo, LLC, MCP SoCal Industrial-Concourse, LLC, MCP SoCal Industrial-Kellwood, LLC, MCP SoCal Industrial- Bernardo, 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, MCP VOA II, LLC, MCP Highland Park Lender, LLC, MCP Property Management, LLC, MCP One Westside, LLC, MCP 7 Riverway, LLC, MCP Trimble Campus, LLC, MCP 9020 Murphy Road, LLC, MCP DMCBP Phase II Venture LLC, MCP Buford Logistics Center 2 Member, LLC, and MCPF Acquisition, LLC, MCP 60 11th Street Member, LLC, MCP Magnolia Park Member, LLC, and MCP Fife Enterprise Member, LLC. 4. MIM Property Management, LLC (DE) 5. MetLife Commercial Mortgage Income Fund GP, LLC (DE) a) MetLife Commercial Mortgage Income Fund, LP (DE) - MetLife Commercial Mortgage Income Fund GP, LLC is the general partner of MetLife Commercial Mortgage Income Fund, LP (the "Fund"). A 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 29.2%, MetLife Insurance Company USA owns 9.7%, MetLife Insurance Co. of Korea, Ltd. owns 5.8%, MetLife Limited owns 3.1%, and Metropolitan Life Insurance Company of Hong Kong Limited owns .8%. i) MetLife Commercial Mortgage REIT, LLC (DE) 1) MetLife Commercial Mortgage Originator, LLC (DE) aa) MCMIF Holdco I, LLC (DE) P. MetLife Standby I, LLC (DE) 1. MetLife Exchange Trust I (DE) Q. 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, LLC. R. 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) S. MetLife Capital Trust X (DE) T. Cova Life Management Company (DE) U. MetLife Reinsurance Company of Charleston (SC) V. MetLife Reinsurance Company of Vermont (VT) W. Delaware American Life Insurance Company (DE) X. Federal Flood Certification LLC (TX) 4 Y. 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) 1) ZAO Master D (Russia) aa) Joint Stock Company MetLife Insurance Company (Russia) - 51% of 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 Investment Management Limited (United Kingdom) vi) MetLife EU Holding Company Limited (Ireland) 1) MetLife Europe Limited (Ireland) - 95.78% of MetLife Europe Limited is owned by MetLife EU Holding Company Limited and 4.22% is owned by ALICO. 1. MetLife Pension Trustees Limited (United Kingdom) 2) Agenvita S.r.l. (Italy) 3) 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. 4) MetLife Europe Services Limited (Ireland) 5) MetLife Insurance Limited (United Kingdom) 6) MetLife Limited (United Kingdom) 7) MetLife Services, Sociedad Limitada (Spain) 8) 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. 9) MetLife Solutions S.A.S. (France) 10) 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. aa) Metropolitan Life Societate de Administrare a unui Fond de Pensii Administrat Privat S.A. (Romania) - 99.9836% of Metropolitan Life 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. 11) MetLife Towarzystwo Ubezpieczen na Zycie I Reasekuracji S.A. (Poland) aa) MetLife Services Sp z.o.o. (Poland) bb) MetLife Towarzystwo Funduszy Inwestycyjnych, S.A. (Poland) cc) MetLife Powszechne Towarzystwo Emerytalne S.A. (Poland) 12) MetLife Holdings (Cyprus) Limited (Cyprus) aa) American Life Insurance Company (CY) Limited (Cyprus) i) Hellenic Alico Life Insurance Company, Ltd. (Cyprus) - 27.5% of Hellenic Alico Life Insurance Company, Ltd. Is owned by American Life Insurance Company (CY) Limited and the remaining is owned by a third party. 13) MetLife Services EOOD (Bulgaria) 14) MetLife Life Insurance S.A. (Greece) aa) MetLife Mutual Fund Company (Greece) - 90% of MetLife Mutual Fund Company is owned by MetLife Life Insurance S.A. (Greece) and the remaining interests are owned by third parties. 15) First American-Hungarian Insurance Agency Limited (Hungary) 16) ALICO Funds Central Europe sprav. Spol., a.s. (Slovakia) 17) UBB-MetLife Zhivotozastrahovatelno Drujestvo AD (Bulgaria) - 40% of UBB-MetLife Zhivotozastrahovatelno Drujestvo AD is owned by MetLife EU Holding Company Limited and the rest by third parties. 18) Metropolitan Life Training and Consulting S.R.L. (Romania) - 99.99% of Metropolitan Life Training & Consulting S.R.L is owned by MetLife EU Holding Company Limited and the remaining 0.01% is owned by MetLife Global Holding Company II GmbH vii. MetLife International Holdings, LLC (DE) 1. Natiloportem Holdings, LLC (DE) aa) Excelencia Operativa y Tecnologica, S.A. de C.V. (Mexico) - 99% of Excelencia Operativa y Tecnologica, S.A. de C.V. is held by Natiloportem Holdings, LLC and 1% by MetLife Mexico Servicios S.A. de C.V. 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 Servicios, 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 Servicios, S.A. de C.V. 2. PNB MetLife India Insurance Company Limited (India)- 26% is owned by MetLife International Holdings, LLC and 74% is owned by third parties. 3. 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, LLC. 4. MetLife Seguros S.A. (Argentina)- 95.5242% is owned by MetLife International Holdings, LLC, 2.6753% is owned by Natiloportem Holdings, LLC, 16.2046% by ALICO and 1.8005% by ITAS. 5. Metropolitan Life Seguros e Previdencia Privada S.A. (Brazil)-66.662% is owned by MetLife International Holdings, LLC, 33.337% is owned by MetLife Worldwide Holdings, LLC and 0.001% is owned by Natiloportem Holdings, LLC. 6. MetLife Administradora de Fundos Multipatrocinados Ltda. (Brazil) - 99.99998% of MetLife Administradora de Fundos Multipatrocinados Ltda. is owned by MetLife International Holdings, LLC and 0.00002% by Natiloportem Holdings, LLC. 7. MetLife Seguros de Retiro S.A. (Argentina) - 96.887% is owned by MetLife International Holdings, LLC, 3.1102% is owned by Natiloportem Holdings, LLC, 1.3014% by ALICO and 0.0001% by ITAS. 8. Best Market S.A. (Argentina) - 5% of the shares are held by Natiloportem Holdings, LLC and 95% is owned by MetLife International Holdings, LLC. 9. Compania Inversora MetLife S.A. (Argentina) - 95.46% is owned by MetLife International Holdings, LLC and 4.54% is owned by Natiloportem Holdings, LLC. aa) 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, LLC and 0.26% is held by MetLife Seguros de Retiro S.A. 10. MetLife Worldwide Holdings, LLC (DE) aa) 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 11. MetLife International Limited, LLC (DE) 12. MetLife Planos Odontologicos Ltda. (Brazil) - 99.999% is owned by MetLife International Holdings, LLC and 0.001% is owned by Natiloportem Holdings, LLC. 5 13. MetLife Ireland Holdings One Limited (Ireland) aa) 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) 1) MetLife General Insurance Limited (Australia) 2) 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. a) The Direct Call Centre PTY Limited (Australia) b) MetLife Investments PTY Limited (Australia) i) 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, LLC. aaa) MetLife Pensiones Mexico S.A. (Mexico)- 97.5125% is owned by Metropolitan Global Management, LLC and 2.4875% is owned by MetLife International Holdings, LLC. bbb) 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, LLC. ccc) MetLife Mexico S.A. (Mexico)- 99.050271% is owned by Metropolitan Global Management, LLC and 0.949729% is owned by MetLife International Holdings, LLC. 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. aaaa) 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. bbbb) 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. cccc) 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. dddd) 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. eeee) 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. ffff) Met0 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. ddd) 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. eee) GlobalMKT S.A. (Uruguay) 14. MetLife Asia Limited (Hong Kong) 15. AmMetLife Insurance Berhad (Malaysia) - 50.000001% of AmMetLife Insurance Berhad is owned by MetLife International Holdings, LLC and the remainder is owned by a third party. 16. AmMetLife Takaful Berhad (Malaysia) - 49.999999% of AmMetLife Takaful Berhad is owned by MetLife International Holdings, LLC and the remainder is owned by a third party. 17. MAXIS GBN S.A.S. (France) - 50% of MAXIS GBN S.A.S. is held by MetLife International Holdings, LLC and the remainder by third parties. 18. MetLife Mas S.A. de C.V. (Mexico) - 99.99964399% MetLife Mas, SA de CV is owned by MetLife International Holdings, LLC and .00035601% is owned by International Technical and Advisory Services Limited. viii. MM Global Operations Support Center, S.A. de C.V. (Mexico) - 99% of MM Global Operations Support Center, S.A. de C.V. is held by MetLife Global Holding Company II GmbH (Swiss) and 1% is held by MetLife Global Holding Company I GmbH (Swiss). 1. Fundacion MetLife Mexico, A.C. (Mexico) ix. MetLife Colombia Seguros de Vida S.A. (Colombia) - 89.999966393% of MetLife Colombia Seguros de Vida S.A. is owned by MetLife Global Holding Company II GmbH , 10.000029508% is owned by MetLife Global Holding Company I GmbH, 0.000001366% is owned by International Technical and Advisory Services Limited, 0.000001366% is owned by Borderland Investments Limited and 0.000001366% by Natiloportem Holdings, LLC x. PJSC MetLife (Ukraine) - 99.9988% of PJSC MetLife is owned by MetLife Global Holding Company II GmbH, .0006% is owned by ITAS and the remaining .0006% is owned by Borderland Investments Limited. b) Pharaonic American Life Insurance Company (Egypt) - 84.125% of Pharaonic American Life Insurance Company is owned by MetLife Global Holding Company I GmbH and the remaining interests are owned by third parties. 3. International Investment Holding Company Limited (Russia) 4. MetLife Akcionarsko Drustvo za Zivotno Osiguranje u likvidaciji (Serbia) - 99.98% of MetLife Akcionarska Drustvoza za Zivotno Osiguranje is owned by ALICO and the remaining 0.02% is owned by ITAS. 5. ALICO Management Services Limited (United Kingdom) 6. Borderland Investments Limited (USA-Delaware) a) ALICO Hellas Single Member Limited Liability Company (Greece) 7. International Technical and Advisory Services Limited ("ITAS") (USA-Delaware) 8. ALICO Operations LLC (USA-Delaware) a) MetLife Asset Management Corp. (Japan) 9. 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). 10. 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) 11. Alpha Properties, Inc. (USA-Delaware) 12. Beta Properties, Inc. (USA-Delaware) 13. Delta Properties Japan, Inc. (USA-Delaware) 14. Epsilon Properties Japan, Inc. (USA-Delaware) 15. Iris Properties, Inc. (USA-Delaware) 16. Kappa Properties Japan, Inc. (USA-Delaware) 17. 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. The Delaware Department of Insurance approved a disclaimer of affiliation and therefore, this company is not considered an affiliate under Delaware Law. Z. MetLife Global Benefits, Ltd. (Cayman Islands) AA. Inversiones Metlife Holdco Dos Limitada (Chile) - 99.99946% of Inversiones MetLife Holdco Dos Limitada is owned by MetLife, Inc., 0.000535% is owned by MetLife International Holdings, LLC and 0.0000054% is owned by Natiloportem Holdings, LLC AB. MetLife Consumer Services, Inc. (DE) AC. MetLife Reinsurance Company of Delaware (DE) AD. MetLife Global, Inc. 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 ("MLIDC") 1095 Avenue of the Americas New York, NY 10036 MetLife Investors Distribution Company serves as principal underwriter and distributor 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)MetLife Investors Distribution Company is the principal underwriter for the Policies. 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 and Senior Vice President One MetLife Plaza 27-01 Queens Plaza, North Long Island City, NY 11101
Myles J. Lambert Chairman of the Board, President and Chief Executive Officer 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 Metropolitan Life Insurance Company 1095 Avenue of the Americas New York, NY 10036
(c) Compensation from the Registrant.
(3) COMPENSATION ON EVENTS (2) OCCASIONING THE (1) NET UNDERWRITING DEDUCTION OF A (5) NAME OF PRINCIPAL DISCOUNTS AND DEFERRED SALES (4) OTHER UNDERWRITER COMMISSIONS LOAD BROKERAGE COMMISSIONS COMPENSATION ---------------------------------------- ------------------ ---------------- ----------------------- ------------- MetLife Investors Distribution Insurance Company................................. $9,503,654 $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 Policy described in this 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. 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 April 14, 2016. 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 April 14, 2016. 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 14, 2016.
SIGNATURE TITLE * Chairman of the Board, President and Chief Executive ------------------------------------- Officer and a Director Steven A. Kandarian * Director ------------------------------------- Cheryl W. Grise * Director ------------------------------------- Carlos M. Gutierrez * Director ------------------------------------- R. Glenn Hubbard * 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 (g)(iii) Reinsurance Contract Amendments (h)(xii) Amendment to the Restated and Amended Participation Agreement with Franklin Templeton Variable Insurance Products Trust (l) Actuarial Opinion and Consent (m) Calculation Exhibit (n) Consent of Independent Registered Public Accounting Firm (r) Powers of Attorney EX-99.G(III) 2 d22797dex99giii.txt REINSURANCE CONTRACT AMENDMENTS AMENDMENT EFFECTIVE FEBRUARY 25, 2013 to the AUTOMATIC AND FACULTATIVE YRT AGREEMENT EFFECTIVE JANUARY 1, 2012 between THE METROPOLITAN LIFE INSURANCE COMPANIES WHICH SHALL INCLUDE THE FOLLOWING COMPANIES: METROPOLITAN LIFE INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, NEW ENGLAND LIFE INSURANCE COMPANY, A MASSACHUSETTS INSURANCE COMPANY, GENERAL AMERICAN LIFE INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, METLIFE INVESTORS USA INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, METLIFE INVESTORS INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, FIRST METLIFE INVESTORS INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, METROPOLITAN TOWER LIFE INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, AND METLIFE INSURANCE COMPANY OF CONNECTICUT, A CONNECTICUT INSURANCE COMPANY. (HEREINAFTER INDIVIDUALLY OR COLLECTIVELY REFERRED TO AS "THE CEDING COMPANY" OR "COMPANIES") AND GENERALI USA LIFE REASSURANCE COMPANY, A MISSOURI REINSURANCE COMPANY (HEREINAFTER REFERRED TO AS "THE REINSURER") This Agreement originally executed effective January 1, 2012, as amended, is hereby amended, effective FEBRUARY 25, 2013 for all eligible policies issued on or after the effective date of this amendment, including policies backdated for up to six (6) months to save age. WHEREAS, GLT is a covered product under the Agreement and included in the list of products covered in Exhibit III to the Agreement; WHEREAS, GLT is being repriced in February 2013; and WHEREAS, the parties wish to document their mutual understanding that, effective as of the effective date hereof, the Agreement shall cover GLT as so repriced; NOW THEREFORE, in consideration of the mutual and foregoing recitals and the mutual covenants and undertakings herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows. 1. The February 2013 reprice of GLT is now added as a covered product; however, given that the name/plan identifiers for the February 2013 reprice of GLT are not changing from the current GLT product, no updates are needed to Exhibit III. All terms, provisions, and conditions of this Agreement will continue unchanged except as specifically revised in this Amendment. Page 1 of 4 THE METROPOLITAN LIFE INSURANCE COMPANIES WHICH SHALL INCLUDE THE FOLLOWING COMPANIES: METROPOLITAN LIFE INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, NEW ENGLAND LIFE INSURANCE COMPANY, A MASSACHUSETTS INSURANCE COMPANY, GENERAL AMERICAN LIFE INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, METLIFE INVESTORS USA INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, METLIFE INVESTORS INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, FIRST METLIFE INVESTORS INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, METROPOLITAN TOWER LIFE INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, AND METLIFE INSURANCE COMPANY OF CONNECTICUT, A CONNECTICUT INSURANCE COMPANY. ("THE CEDING COMPANY" OR "COMPANIES") and GENERALI USA LIFE REASSURANCE COMPANY, A MISSOURI REINSURANCE COMPANY ("THE REINSURER") have by their respective officers executed and delivered this Amendment, effective FEBRUARY 25, 2013. METROPOLITAN LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Senior Vice President ---------------------------------- NEW ENGLAND LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- Page 2 of 4 GENERAL AMERICAN LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- METLIFE INVESTORS USA INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- METLIFE INVESTORS INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- FIRST METLIFE INVESTORS INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- METROPOLITAN TOWER LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- Page 3 of 4 METLIFE INSURANCE COMPANY OF CONNECTICUT By: /s/ Roberto Baron ------------------------------- Name: Roberto Baron ------------------------------- Title: Vice President ------------------------------- GENERALI USA LIFE REASSURANCE COMPANY By: /s/ Nancy Pike By: /s/ David A. Gates ------------------------------- ------------------------------ Name: Nancy Pike Name: David A. Gates ------------------------------- ------------------------------ Title: Asst Registrar Title: Senior Vice President ------------------------------- ------------------------------ Page 4 of 4 AMENDMENT EFFECTIVE APRIL 29, 2013 to the AUTOMATIC AND FACULTATIVE YRT AGREEMENT EFFECTIVE JANUARY 1, 2012 between THE METROPOLITAN LIFE INSURANCE COMPANIES WHICH SHALL INCLUDE THE FOLLOWING COMPANIES: METROPOLITAN LIFE INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, NEW ENGLAND LIFE INSURANCE COMPANY, A MASSACHUSETTS INSURANCE COMPANY, GENERAL AMERICAN LIFE INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, METLIFE INVESTORS USA INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, METLIFE INVESTORS INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, FIRST METLIFE INVESTORS INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, METROPOLITAN TOWER LIFE INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, AND METLIFE INSURANCE COMPANY OF CONNECTICUT, A CONNECTICUT INSURANCE COMPANY. (HEREINAFTER INDIVIDUALLY OR COLLECTIVELY REFERRED TO AS "THE CEDING COMPANY" OR "COMPANIES") AND GENERALI USA LIFE REASSURANCE COMPANY, A MISSOURI REINSURANCE COMPANY (HEREINAFTER REFERRED TO AS "THE REINSURER") This Agreement originally executed effective January 1, 2012, as amended, is hereby amended, effective APRIL 29, 2013 for all eligible policies issued on or after the effective date of this amendment, including policies backdated for up to six (6) months to save age. NOW THEREFORE, in consideration of the mutual and foregoing recitals and the mutual covenants and undertakings herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows. 1. Exhibit III is hereby replaced by the attached Exhibit III - Four additional products are added (OYT w/ Convertible and Renewable Options rider, LP10, LP20, and LP65). 2. Exhibit IV, Table A is hereby replaced by the attached Exhibit IV, Table A--6 class One Year Term rates are added. All terms, provisions, and conditions of this Agreement will continue unchanged except as specifically revised in this Amendment. Page 1 of 13 In witness of the above, THE METROPOLITAN LIFE INSURANCE COMPANIES WHICH SHALL INCLUDE THE FOLLOWING COMPANIES: METROPOLITAN LIFE INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, NEW ENGLAND LIFE INSURANCE COMPANY, A MASSACHUSETTS INSURANCE COMPANY, GENERAL AMERICAN LIFE INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, METLIFE INVESTORS USA INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, METLIFE INVESTORS INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, FIRST METLIFE INVESTORS INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, METROPOLITAN TOWER LIFE INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, AND METLIFE INSURANCE COMPANY OF CONNECTICUT, A CONNECTICUT INSURANCE COMPANY. ("THE CEDING COMPANY" OR "COMPANIES") and GENERALI USA LIFE REASSURANCE COMPANY, A MISSOURI REINSURANCE COMPANY ("THE REINSURER") have by their respective officers executed and delivered this Amendment, effective APRIL 29, 2013. METROPOLITAN LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Senior Vice President ---------------------------------- NEW ENGLAND LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- Page 2 of 13 GENERAL AMERICAN LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- METLIFE INVESTORS USA INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- METLIFE INVESTORS INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- FIRST METLIFE INVESTORS INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- METROPOLITAN TOWER LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- Page 3 of 13 METLIFE INSURANCE COMPANY OF CONNECTICUT By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- GENERALI USA LIFE REASSURANCE COMPANY By: /s/ Tamora Kapeller By: /s/ Nancy Pike ------------------------------- ------------------------------ Name: Tamora Kapeller Name: Nancy Pike ------------------------------- ------------------------------ Title: SVP Title: Asst Registrar ------------------------------- ------------------------------ Page 4 of 13 EXHIBIT III POLICIES AND RIDERS ------------------- The Policies and Riders underwritten by or on behalf of the Ceding Companies or simplified issue with fully underwritten rates, as described below may be ceded hereunder:
STATUTORY VALUATION REINSURANCE REINSURANCE REINSURANCE REINSURANCE CEDING MORTALITY RATES TO BE PRODUCT CATEGORY BASIS MAXIMUM AGE TABLE COMPANY TABLE USED ------- ----------- ------------- ----------- -------------- ---------- --------- --------------- 90-95modified MLI 6 Class GLT Term Excess 100 - UW.xls USA/FMLI 2001 CSO Level Term 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class JSUL 2005 Product First Dollar 120 120.xls USA 2001 CSO (joint life) Permanent - 5 class (single life); Permanent - 4 class (single life); 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 2 class GAUL07 Product First Dollar 121 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class EAVUL08 Product Excess 121 120.xls USA 2001 CSO (single life) Life Paid up at 90-95modified Permanent - Age 100 (WL UL/Accum - UW to age 5 class 08) Product Excess 121 120.xls MLIC 2001 CSO (single life) Permanent - EEA COLI UL/Accum 90-95modified 5 class (2001 CSO) Product Excess 100 - UW.xls NELICO 2001 CSO (single life) Permanent - UL/Accum 90-95modified 4 class PPVUL Product Excess 100 - UW.xls GALIC 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW - 2 class Premier BOLI Product Excess 100 ALB.xls MLIC 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class LASUL 09 Product First Dollar 120 120.xls USA 2001 CSO (joint life) Permanent - 5 class (single life); Permanent - 4 class (single life); 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 2 class GAUL 09 Product First Dollar 121 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class WL 10 Product Excess 120 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class LASUL 11 Product First Dollar 120 120.xls USA 2001 CSO (joint life)
Page 5 of 13
STATUTORY VALUATION REINSURANCE REINSURANCE REINSURANCE REINSURANCE CEDING MORTALITY RATES TO BE PRODUCT CATEGORY BASIS MAXIMUM AGE TABLE COMPANY TABLE USED ------- ----------- ------------- ----------- -------------- ---------- --------- --------------- Permanent - 5 class (single life); Permanent - 4 class (single life); 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 2 class GAUL 11 Product First Dollar 121 120.xls USA 2001 CSO (single life) 90-95modified Permanent - Life Paid up at UL/Accum - UW to age MLIC, MLI 5 class Age 120 (L120) Product Excess 120 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class LASUL 12 Product First Dollar 120 120.xls USA 2001 CSO (joint life) Permanent - 5 class (single life); Permanent - 4 class (single life); 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 2 class GAUL 12 Product First Dollar 121 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class LGUL 12 Product Excess 121 120.xls USA 2001 CSO (single life) 90-95modified MLIC, MLI 6 Class Level CDT Term Excess 100 - UW.xls USA 2001 CSO Term 90-95modified MLIC, MLI 2 Class One OYT Term Excess 100 - UW.xls USA 2001 CSO Year Term OYT w Convertible & Renewable 90-95modified MLIC, MLI 6 Class One Options rider Term Excess 100 - UW.xls USA 2001 CSO Year Term 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class LP 10 Product Excess 120 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class LP 20 Product Excess 120 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class LP 65 Product Excess 120 120.xls USA 2001 CSO (single life)
Product ------- GLT - Guaranteed Level Term JSUL 2005 - Joint Universal Life with Secondary Guarantee GAUL07 - Universal Life with Secondary Guarantee EAVUL08 - Variable Universal Life Life Paid up at Age 100 (WL08) - Whole Life EEA COLI (2001 CSO) - Variable Universal Life PPVUL - Variable Universal Life Premier BOLI - Universal Life LASUL 09 - Joint Universal Life with Secondary Guarantee Page 6 of 13 GAUL 09 - Universal Life with Secondary Guarantee WL 10 - Whole Life LASUL 11 - Joint Universal Life with Secondary Guarantee GAUL 11 - Universal Life with Secondary Guarantee Life Paid up at Age 120 (L120) - Whole Life LASUL 12 - Joint Universal Life with Secondary Guarantee GAUL 12 - Universal Life with Secondary Guarantee LGUL 12 - Universal Life with Secondary Guarantee CDT - Guaranteed Level Term OYT - One Year Term OYT w/ Convertible & Renewable Options rider - One Year Term LP10 - Whole Life LP20 - Whole Life LP65 - Whole Life Riders attached to the listed plans ----------------------------------- ADBR - Accelerated Death Benefit Rider Preliminary Term/Temporary Term ART - Annually Renewable Term JTCR - Joint Term Coverage Rider RPR - Return of Premium Rider EPTR - Estate Preservation Term Rider SFIO - Scheduled Face Increase Option PAIR - Option to Purchase Additional Insurance Rider Inside Term Rider Outside Term Rider FTR - Flexible Term Rider Other ----- The Reinsurer shall pay its share of any claim after the Reinsurance Maximum Age under the extended maturity coverage, including interest, as defined in Article VI. For joint life policies with one life insurable, this will be the Reinsurance Maximum Age of the insurable life and for joint life policies with both lives insurable, this will be the Reinsurance Maximum Age of the younger insured. Products not listed above resulting from the exercise of business exchanges, policy split options, and purchase options shall be covered on an excess reinsurance basis. For Policies ceded with RPR/SFIO riders, the maximum net amount at risk illustrated at the time of issue shall be used for purposes of underwriting, autobind limits, and jumbo limits. For Policies ceded facultatively with RPR rider, the ultimate amount ceded to the Reinsurers shall not exceed the maximum net amount at risk included in the facultative offers from the Reinsurers. Page 7 of 13 EXHIBIT IV TABLE A ------- Joint Life Minimum Premium Per Thousand: 0.15 For policies with a Reinsurance Basis of Excess and Reinsurance Category of Term -------------------------------------------------------------------------------- 6 Class Level Term - T10
Female Female Male Male Risk Class Rate Table Class Yrs 1-10 Yrs 11+ Yrs 1-10 Yrs 11+ Elite+ NS Elite Nonsmoker 63.0% 157.3% 55.0% 137.5% Pref+ NS Elite Nonsmoker 68.2% 170.4% 57.7% 144.1% Std+ NS Preferred Nonsmoker 60.7% 151.6% 53.2% 132.9% Std NS Standard (Residual) Nonsmoker 63.3% 157.8% 54.4% 136.0% Pref SM Preferred Smoker 75.1% 187.5% 85.7% 214.1% Std SM Standard (Residual) Smoker 79.5% 198.5% 78.5% 196.2% 6 Class Level Term - T15 Female Female Male Male Risk Class Rate Table Class Yrs 1-15 Yrs 16+ Yrs 1-15 Yrs 16+ Elite+ NS Elite Nonsmoker 59.9% 149.5% 52.4% 130.8% Pref+ NS Elite Nonsmoker 64.3% 160.5% 55.9% 139.5% Std+ NS Preferred Nonsmoker 58.8% 147.0% 50.8% 127.0% Std NS Standard (Residual) Nonsmoker 58.8% 147.0% 50.0% 124.8% Pref SM Preferred Smoker 73.2% 182.9% 84.0% 209.8% Std SM Standard (Residual) Smoker 77.1% 192.5% 76.7% 191.5% 6 Class Level Term - T20 Female Female Female Male Male Male Risk Class Rate Table Class Yrs 1-15 Yrs 16-20 Yrs 21+ Yrs 1-15 Yrs 16-20 Yrs 21+ Elite+ NS Elite Nonsmoker 62.3% 60.1% 150.1% 54.9% 56.6% 141.2% Pref+ NS Elite Nonsmoker 64.2% 65.4% 163.4% 57.6% 58.3% 145.6% Std+ NS Preferred Nonsmoker 63.4% 59.0% 147.5% 54.6% 53.3% 133.2% Std NS Standard (Residual) Nonsmoker 60.1% 55.9% 139.5% 53.3% 50.6% 126.5% Pref SM Preferred Smoker 71.7% 89.1% 222.8% 79.7% 101.3% 253.2% Std SM Standard (Residual) Smoker 76.3% 88.4% 220.8% 74.6% 91.3% 227.9%
Page 8 of 13 6 Class Level Term - T30
Female Female Female Male Male Male Risk Class Rate Table Class Yrs 1-15 Yrs 16-30 Yrs 31+ Yrs 1-15 Yrs 16-30 Yrs 31+ Elite+ NS Elite Nonsmoker 66.4% 54.6% 136.5% 59.6% 58.9% 147.3% Pref+ NS Elite Nonsmoker 68.8% 56.3% 140.5% 65.9% 62.7% 156.6% Std+ NS Preferred Nonsmoker 71.2% 53.6% 133.9% 62.4% 55.4% 138.4% Std NS Standard (Residual) Nonsmoker 61.7% 45.5% 113.6% 64.3% 53.7% 134.3% Pref SM Preferred Smoker 69.1% 75.9% 189.7% 71.9% 90.2% 225.6% Std SM Standard (Residual) Smoker 76.1% 77.2% 192.7% 70.8% 84.2% 210.3% 2 Class One Year Term Female Male Risk Class Rate Table Class Yr 1 Yr 1 Std NS Standard (Residual) Nonsmoker 74.1% 63.7% Std SM Standard (Residual) Smoker 93.1% 91.9% 6 Class One Year Term Female Male Risk Class Rate Table Class Yrs 1-5 Yrs 1-5 Elite+ NS Elite Nonsmoker 66.8% 58.3% Pref+ NS Elite Nonsmoker 72.3% 61.2% Std+ NS Preferred Nonsmoker 64.4% 56.4% Std NS Standard (Residual) Nonsmoker 67.1% 57.7% Pref SM Preferred Smoker 79.7% 90.9% Std SM Standard (Residual) Smoker 84.3% 83.3%
Page 9 of 13 For policies with a Reinsurance Basis of First Dollar and Reinsurance Category of UL/Accumulation --------------------------------------------------------------------------- Permanent Fully Underwritten 5-Class - Single Life - $1,000,000 + Female Female Female Female Female Female Female Female IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 56.1% 63.6% 76.5% 82.2% Pref NS Preferred Nonsmoker 59.1% 65.2% 74.4% 69.3% Std NS Standard (Residual) Nonsmoker 59.3% 68.6% 68.6% 70.5% 60.0% 60.0% Pref SM Preferred Smoker 77.0% 149.9% 132.7% 176.4% Std SM Standard (Residual) Smoker 80.3% 162.3% 162.3% 123.1% 184.8% 184.8% Agg Aggregate 59.3% 70.5% Male Male Male Male Male Male Male Male IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 46.2% 50.2% 56.2% 66.9% Pref NS Preferred Nonsmoker 49.7% 50.2% 54.4% 57.8% Std NS Standard (Residual) Nonsmoker 46.8% 51.7% 51.7% 48.4% 53.1% 53.1% Pref SM Preferred Smoker 89.0% 139.0% 133.9% 149.7% Std SM Standard (Residual) Smoker 80.2% 147.1% 147.1% 115.6% 134.3% 134.3% Agg Aggregate 46.8% 48.4% Permanent Fully Underwritten 5-Class - Single Life - $250,000 - $999,999 Female Female Female Female Female Female Female Female IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 75.1% 85.8% 98.3% 107.0% Pref NS Preferred Nonsmoker 74.0% 81.1% 97.4% 91.7% Std NS Standard (Residual) Nonsmoker 75.9% 82.5% 82.5% 93.9% 81.0% 81.0% Pref SM Preferred Smoker 103.4% 202.3% 171.5% 241.6% Std SM Standard (Residual) Smoker 108.2% 219.0% 219.0% 159.5% 257.8% 257.8% Agg Aggregate 75.9% 93.9% Male Male Male Male Male Male Male Male IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 60.9% 68.3% 72.8% 87.7% Pref NS Preferred Nonsmoker 63.4% 68.2% 70.6% 76.1% Std NS Standard (Residual) Nonsmoker 61.6% 67.9% 67.9% 62.9% 67.2% 67.2% Pref SM Preferred Smoker 119.8% 189.0% 175.6% 205.4% Std SM Standard (Residual) Smoker 108.3% 170.9% 170.9% 152.9% 184.7% 184.7% Agg Aggregate 61.6% 62.9%
Page 10 of 13 Permanent Fully Underwritten 4-Class - Single Life - $100,000 - $249,999 Female Female Female Female Female Female Female Female IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Pref NS Preferred Nonsmoker 74.0% 81.1% 97.4% 91.7% Std NS Standard (Residual) Nonsmoker 75.9% 82.5% 82.5% 93.9% 81.0% 81.0% Pref SM Preferred Smoker 103.4% 202.3% 171.5% 241.6% Std SM Standard (Residual) Smoker 108.2% 219.0% 219.0% 159.5% 257.8% 257.8% Agg Aggregate 75.9% 93.9% Male Male Male Male Male Male Male Male IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Pref NS Preferred Nonsmoker 63.4% 68.2% 70.6% 76.1% Std NS Standard (Residual) Nonsmoker 61.6% 67.9% 67.9% 62.9% 67.2% 67.2% Pref SM Preferred Smoker 119.8% 189.0% 175.6% 205.4% Std SM Standard (Residual) Smoker 108.3% 170.9% 170.9% 152.9% 184.7% 184.7% Agg Aggregate 61.6% 62.9% Permanent Fully Underwritten 2-Class - Single Life - < $100,000 Female Female Female Female Female Female Female Female IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Std NS Standard (Residual) Nonsmoker 83.4% 95.5% 95.5% 102.7% 93.8% 93.8% Std SM Standard (Residual) Smoker 113.8% 228.2% 228.2% 166.4% 272.9% 272.9% Agg Aggregate 83.4% 102.7% Male Male Male Male Male Male Male Male IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Std NS Standard (Residual) Nonsmoker 67.8% 77.5% 77.5% 69.1% 77.5% 77.5% Std SM Standard (Residual) Smoker 121.3% 191.2% 191.2% 169.0% 208.4% 208.4% Agg Aggregate 67.8% 69.1% Permanent Fully Underwritten 5-Class - Joint Life - $1,000,000 + IA 18-70 IA 71-80 IA 81-90 IA 18-70 IA 71-80 IA 81-90 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 59.8% 74.4% 78.1% 75.0% Pref NS Preferred Nonsmoker 60.6% 69.0% 69.1% 63.9% Std NS Standard (Residual) Nonsmoker 62.3% 66.9% 66.9% 61.2% 58.4% 58.4% Pref SM Preferred Smoker 105.1% 180.4% 164.6% 155.1% Std SM Standard (Residual) Smoker 95.6% 194.8% 194.8% 146.2% 162.8% 162.8%
Page 11 of 13 Permanent Fully Underwritten 5-Class - Joint Life - $250,000 - $999,999
IA 18-70 IA 71-80 IA 81-90 IA 18-70 IA 71-80 IA 81-90 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 61.5% 84.2% 91.4% 93.2% Pref NS Preferred Nonsmoker 66.7% 78.8% 82.4% 79.7% Std NS Standard (Residual) Nonsmoker 69.0% 72.7% 72.7% 74.2% 71.7% 71.7% Pref SM Preferred Smoker 121.2% 219.8% 202.5% 210.6% Std SM Standard (Residual) Smoker 111.6% 240.4% 240.4% 181.2% 224.9% 224.9%
Page 12 of 13 For policies with a Reinsurance Basis of Excess and Reinsurance Category of --------------------------------------------------------------------------- UL/Accumulation --------------- Permanent Fully Underwritten 5-Class - Single Life Female Female Female Female Female Female IA 0-17 IA 18-80 IA 81-85 IA 0-17 IA 18-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 68.1% 75.2% Pref NS Preferred Nonsmoker 63.4% 65.4% Std NS Standard (Residual) Nonsmoker 64.1% 64.1% 60.9% 60.9% Pref SM Preferred Smoker 81.3% 115.0% Std SM Standard (Residual) Smoker 85.7% 85.7% 109.7% 109.7% Agg Aggregate 64.1% 60.9% Male Male Male Male Male Male IA 0-17 IA 18-80 IA 81-85 IA 0-17 IA 18-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 58.1% 62.8% Pref NS Preferred Nonsmoker 56.6% 55.8% Std NS Standard (Residual) Nonsmoker 57.3% 57.3% 52.1% 52.1% Pref SM Preferred Smoker 90.9% 123.2% Std SM Standard (Residual) Smoker 83.2% 83.2% 108.5% 108.5% Agg Aggregate 57.3% 52.1% Permanent Fully Underwritten 4-Class - Single Life Female Female Female Female Female Female IA 0-17 IA 18-80 IA 81-85 IA 0-17 IA 18-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Pref NS Preferred Nonsmoker 62.1% 64.1% Std NS Standard (Residual) Nonsmoker 64.0% 64.0% 60.8% 60.8% Pref SM Preferred Smoker 81.3% 114.9% Std SM Standard (Residual) Smoker 85.7% 85.7% 109.7% 109.7% Agg Aggregate 64.0% 60.8% Male Male Male Male Male Male IA 0-17 IA 18-80 IA 81-85 IA 0-17 IA 18-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Pref NS Preferred Nonsmoker 56.0% 55.2% Std NS Standard (Residual) Nonsmoker 57.3% 57.3% 52.0% 52.0% Pref SM Preferred Smoker 90.8% 123.1% Std SM Standard (Residual) Smoker 83.1% 83.1% 108.4% 108.4% Agg Aggregate 57.3% 52.0% Permanent Fully Underwritten 2-Class - Single Life Female Female Male Male IA 20-80 IA 20-80 IA 20-80 IA 20-80 Risk Class Rate Table Class Yrs 10-15 Yrs 16+ Yrs 1-15 Yrs 16+ Std NS Standard (Residual) Nonsmoker 62.2% 59.0% 57.3% 52.0% Std SM Standard (Residual) Smoker 80.5% 103.1% 79.9% 104.1%
Page 13 of 13 AMENDMENT EFFECTIVE SEPTEMBER 3, 2013 to the AUTOMATIC AND FACULTATIVE YRT AGREEMENT EFFECTIVE JANUARY 1, 2012 between THE METROPOLITAN LIFE INSURANCE COMPANIES WHICH SHALL INCLUDE THE FOLLOWING COMPANIES: METROPOLITAN LIFE INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, NEW ENGLAND LIFE INSURANCE COMPANY, A MASSACHUSETTS INSURANCE COMPANY, GENERAL AMERICAN LIFE INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, METLIFE INVESTORS USA INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, METLIFE INVESTORS INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, FIRST METLIFE INVESTORS INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, METROPOLITAN TOWER LIFE INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, AND METLIFE INSURANCE COMPANY OF CONNECTICUT, A CONNECTICUT INSURANCE COMPANY. (HEREINAFTER INDIVIDUALLY OR COLLECTIVELY REFERRED TO AS "THE CEDING COMPANY" OR "COMPANIES") AND GENERALI USA LIFE REASSURANCE COMPANY, A MISSOURI REINSURANCE COMPANY (HEREINAFTER REFERRED TO AS "THE REINSURER") This Agreement originally executed effective January 1, 2012, as amended, is hereby amended, effective SEPTEMBER 3, 2013 for all eligible policies issued on or after the effective date of this amendment, including policies backdated for up to six (6) months to save age. WHEREAS, WL 10 and L120 are covered products under the Agreement and included in the list of products covered in Exhibit III to the Agreement; WHEREAS, WL 10 and L120 are being repriced in September 2013; and WHEREAS, the parties wish to document their mutual understanding that, effective as of the effective date hereof, the Agreement shall cover WL10 and L120 as so repriced; NOW THEREFORE, in consideration of the mutual and foregoing recitals and the mutual covenants and undertakings herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows. 1. Article IV is hereby replaced by the attached Article IV - Language has been added to describe how the net amount at risk is calculated after any accelerations for chronic illness related to the Enhanced Care Acceleration Rider (ECAR). 2. Article VI is hereby replaced by the attached Article VI - Language has been added to describe how claims are handled after any accelerations for chronic illness related to ECAR. Page 1 of 20 3. Exhibit III is hereby replaced by the attached Exhibit III - One additional product and one additional rider are added (GLT 13 and ECAR). 4. The September 2013 reprices of WL10 and L120 are now added as covered products; however, given that the name/plan identifiers for the repriced products are not changing, no updates are needed to Exhibit III. 5. Exhibit IV, Table A is hereby replaced by the attached Exhibit IV, Table A - 6 class Level Term (Elite + NS, Elite NS, Pref NS, Std NS, Pref SM, Std SM) rates are added. All terms, provisions, and conditions of this Agreement will continue unchanged except as specifically revised in this Amendment. Page 2 of 20 AMENDMENT EFFECTIVE JULY 31, 2014 to the AUTOMATIC AND FACULTATIVE YRT AGREEMENT EFFECTIVE JANUARY 1, 2012 (HEREINAFTER REFERRED TO AS THE "AGREEMENT") between THE METROPOLITAN LIFE INSURANCE COMPANIES WHICH SHALL INCLUDE THE FOLLOWING COMPANIES: METROPOLITAN LIFE INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, NEW ENGLAND LIFE INSURANCE COMPANY, A MASSACHUSETTS INSURANCE COMPANY, GENERAL AMERICAN LIFE INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, METLIFE INVESTORS USA INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, METLIFE INVESTORS INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, FIRST METLIFE INVESTORS INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, METROPOLITAN TOWER LIFE INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, AND METLIFE INSURANCE COMPANY OF CONNECTICUT, A CONNECTICUT INSURANCE COMPANY. (HEREINAFTER INDIVIDUALLY OR COLLECTIVELY REFERRED TO AS "THE CEDING COMPANY" OR "COMPANIES") and SCOR GLOBAL LIFE USA REINSURANCE COMPANY (HEREINAFTER REFERRED TO AS "THE REINSURER") This Agreement originally executed effective January 1, 2012, as amended, is hereby amended, effective July 31, 2014. WHEREAS, the Agreement was originally with Generali USA Life Reassurance Company, and WHEREAS, SCOR Global Life USA Reinsurance Company was formerly known as Generali USA Life Reassurance Company; NOW THEREFORE, in consideration of the mutual and foregoing recital and the mutual covenants and undertakings herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows. 1. CANCELLATION OF NEW BUSINESS - After July 31, 2014, the Ceding Company will no longer cede and the Reinsurer will no longer accept new business under this Agreement. All terms, provisions, and conditions of this Agreement will continue unchanged except as specifically revised in this Amendment. Page 1 of 3 In witness of the above, THE METROPOLITAN LIFE INSURANCE COMPANIES WHICH SHALL INCLUDE THE FOLLOWING COMPANIES: METROPOLITAN LIFE INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, NEW ENGLAND LIFE INSURANCE COMPANY, A MASSACHUSETTS INSURANCE COMPANY, GENERAL AMERICAN LIFE INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, METLIFE INVESTORS USA INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, METLIFE INVESTORS INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, FIRST METLIFE INVESTORS INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, METROPOLITAN TOWER LIFE INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, AND METLIFE INSURANCE COMPANY OF CONNECTICUT, A CONNECTICUT INSURANCE COMPANY. ("THE CEDING COMPANY" OR "COMPANIES") and SCOR GLOBAL LIFE USA REINSURANCE COMPANY ("THE REINSURER") have by their respective officers executed and delivered this Amendment, effective July 31, 2014. METROPOLITAN LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Senior Vice President ---------------------------------- NEW ENGLAND LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- GENERAL AMERICAN LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- Page 2 of 3 METLIFE INSURANCE COMPANY USA AS SUCCESSOR IN INTEREST TO METLIFE INVESTORS USA INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- METLIFE INSURANCE COMPANY USA AS SUCCESSOR IN INTEREST TO METLIFE INVESTORS INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- FIRST METLIFE INVESTORS INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- METROPOLITAN TOWER LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- METLIFE INSURANCE COMPANY USA AS SUCCESSOR IN INTEREST TO METLIFE INSURANCE COMPANY OF CONNECTICUT By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- SCOR GLOBAL LIFE USA REINSURANCE COMPANY By: /s/ Eric B. Wilmer By: /s/ David A. Gates ------------------------------- ------------------------------ Name: Eric B. Wilmer Name: David A. Gates ------------------------------- ------------------------------ Title: AVP & Asst. Secretary Title: SVP ------------------------------- ------------------------------ Page 3 of 3 In witness of the above, THE METROPOLITAN LIFE INSURANCE COMPANIES WHICH SHALL INCLUDE THE FOLLOWING COMPANIES: METROPOLITAN LIFE INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, NEW ENGLAND LIFE INSURANCE COMPANY, A MASSACHUSETTS INSURANCE COMPANY, GENERAL AMERICAN LIFE INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, METLIFE INVESTORS USA INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, METLIFE INVESTORS INSURANCE COMPANY, A MISSOURI INSURANCE COMPANY, FIRST METLIFE INVESTORS INSURANCE COMPANY, A NEW YORK INSURANCE COMPANY, METROPOLITAN TOWER LIFE INSURANCE COMPANY, A DELAWARE INSURANCE COMPANY, AND METLIFE INSURANCE COMPANY OF CONNECTICUT, A CONNECTICUT INSURANCE COMPANY. ("THE CEDING COMPANY" OR "COMPANIES") and GENERALI USA LIFE REASSURANCE COMPANY, A MISSOURI REINSURANCE COMPANY ("THE REINSURER") have by their respective officers executed and delivered this Amendment, effective SEPTEMBER 3, 2013. METROPOLITAN LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Senior Vice President ---------------------------------- NEW ENGLAND LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- Page 3 of 20 GENERAL AMERICAN LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- METLIFE INVESTORS USA INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- METLIFE INVESTORS INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- FIRST METLIFE INVESTORS INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- METROPOLITAN TOWER LIFE INSURANCE COMPANY By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- Page 4 of 20 METLIFE INSURANCE COMPANY OF CONNECTICUT By: /s/ Roberto Baron ---------------------------------- Name: Roberto Baron ---------------------------------- Title: Vice President ---------------------------------- GENERALI USA LIFE REASSURANCE COMPANY By: /s/ Nancy Pike By: /s/ David A. Gates ------------------------------- ------------------------------ Name: Nancy Pike Name: David A. Gates ------------------------------- ------------------------------ Title: Asst. Registrar Title: SVP ------------------------------- ------------------------------ Page 5 of 20 ARTICLE IV REINSURANCE PREMIUMS -------------------- A. Life reinsurance shall be on the yearly renewable term basis for the net amount at risk (death benefit less cash value or fund value) on that portion of the policy which is reinsured by the Reinsurer. Premiums and allowances shall be based on the rates specified in Exhibit IV. For purposes of calculating the net amount at risk, the accelerations of death benefit for chronic illness under the Enhanced Care Acceleration Rider (ECAR) are ignored. B. The Reinsurer shall not indemnify the Ceding Company for premium taxes or guaranty fund assessments. In the event that the Reinsurer becomes an alien company, the Reinsurer shall reimburse the Ceding Company for any federal excise tax payable on business ceded under this Agreement. C. The Ceding Company shall report and pay reinsurance premiums on an annual basis in advance without regard to the Policy mode of premium payment. D. For technical reasons relating to statutory reserve requirements, the YRT rates described in Exhibit IV cannot be guaranteed for more than one year. The Reinsurer anticipates continuing to accept premiums on the basis of the YRT rates described in Exhibit IV. The guaranteed reinsurance premium for each age and duration shall be the higher of the premium based on the reinsurance rates shown in Exhibit IV or the premium based on the statutory minimum valuation mortality table, as specified in Exhibit III, and the statutory maximum valuation interest rate permitted for the underlying Policy under the National Association of Insurance Commissioners' Standard Valuation Law. E. During the fifteen (15) years following the issue date of the original Policy, the Reinsurer may increase the YRT rates only due to actual mortality experience poorer than originally priced for on this business and all similar business and only if the Reinsurer also concurrently increases the reinsurance rates on all similar business by a like amount. Similar business would include all reinsurance assumed on fully underwritten products issued in the five (5) years prior or subsequent to the effective date of the Agreement where the Reinsurer has the right to raise rates. Notwithstanding the above, if the Ceding Company increases it's charges to the Policyholder based on changes in actual or expected mortality, the Reinsurer may increase rates on this Agreement on a consistent basis. The Reinsurer shall provide one hundred and eighty (180) days written notice prior to any increase in YRT rates taking effect. Should the Reinsurer at any time be required to establish or maintain any additional reserves, including deficiency reserves, on the inforce business ceded under this Agreement by the insurance regulatory authority in its state of domicile by virtue of the assurances provided above, upon the Reinsurer's written notice to the Ceding Company, this Section E will be modified and amended as mutually agreed upon by the Ceding Company and Reinsurer to eliminate any additional reserves, including deficiency reserves, on the inforce business ceded under this Agreement. If, after thirty (30) days following this Page 6 of 20 notice, this Section E language cannot be agreed to by the Ceding Company and the Reinsurer, the first paragraph of this Section E will be deleted without any further formalities or actions. F. For Policies that terminate, reduce or change, the Reinsurer shall refund any unearned reinsurance premium net of any allowances. G. For Policies that are reinstated after coverage has ceased, the Ceding Company shall pay to the Reinsurer reinsurance premiums net of any allowances for the period for which the Ceding Company received Policy premiums in arrears. Page 7 of 20 ARTICLE VI CLAIMS ------ A. The Reinsurer shall in all cases be obligated to follow the Ceding Company's fortunes and settlements. The Reinsurer shall be unconditionally bound by the judgment of the Ceding Company as to the obligations and liabilities of the Ceding Company under any Policy. The Ceding Company's decision to pay contractual Policy claims without contest, compromise or litigation shall be unconditionally binding on the Reinsurer. The Reinsurer shall consider participating in the Ceding Company's EX GRATIA payments on a case-by-case basis but is not legally bound to participate in such payments. B. The Ceding Company shall give written notice within a reasonable timeframe of Policy claims to the Reinsurer. In respect of any claim, the Ceding Company shall, at the Reinsurer's request, provide copies to the Reinsurer of the proof of payment by the Ceding Company and a copy of the insured's death certificate. For those claims where documentation is provided, the Reinsurer shall accept copies of the proof of payment by the Ceding Company and copy of the insured's death certificate provided by the Ceding Company as sufficient evidence of the Ceding Company's liability. C. The Ceding Company shall give written notice within a reasonable timeframe to the Reinsurer that the Ceding Company intends to contest, compromise or litigate a Policy claim over $2,000,000. The Ceding Company shall also provide the Reinsurer written notice within a reasonable timeframe of any legal proceedings initiated against the Ceding Company in response to its contest of a Policy claim over $2,000,000. Upon receipt of the Ceding Company's notice of its intent to contest, compromise or litigate a Policy claim, the Reinsurer shall promptly pay its share of the amount that would have been payable had there been no controversy. For any Policy claim of $2,000,000 or less, the Reinsurer shall be deemed to have agreed to participate in the contest; however, for purposes of extra-contractual damages as described in Article XVI, Section I, the Reinsurer shall not be deemed to have agreed in writing to participate in the contest. If the Reinsurer has agreed to participate in the contest and the contest, compromise or litigation results in a reduction in the liability of the Policy, the Reinsurer shall share in the reduction in the same proportion that the amount of reinsurance bore to the amount payable under the terms of the Policy on the date of death of the insured. D. The Reinsurer shall pay its share of specific claim investigation and legal expenses relative to contested, compromised or litigated claims, the investigation of contestable death claims, accelerated death benefit claims, foreign death claims or investigative expenses associated with a fraudulent life insurance matter unless the Reinsurer has discharged its liability in accordance with Section C, above. If the Reinsurer has so discharged its liability, it shall not participate in any expenses incurred thereafter. The Reinsurer shall not be liable for any portion of any administrative expenses incidental to the settlement of claims or for the compensation of salaried officers and employees of the Ceding Company involved in the settlement or investigation of claims, provided however that compensation as used in this Page 8 of 20 paragraph shall not include the hourly fees and expenses associated with the investigation or litigation of a particular claim by salaried officers and employees of the Ceding Company. The Reinsurer shall not be liable for expenses incurred by the Ceding Company solely to resolve a dispute arising out of conflicting claims of entitlement to policy proceeds or benefits. E. In the event that the amount of insurance provided by a Policy or Policies reinsured hereunder shall be increased or reduced because of a misstatement of age or sex established after the death of the insured, the Reinsurer shall share in the increase or reduction in the proportion to the net liability that the Reinsurer bore to the total net liability under the Policy immediately prior to such increase or reduction. The Policy or Policies shall be restated in accordance with the terms and rules of the Ceding Company; however, no adjustment in age or sex shall be deemed to cause a Policy or Policies to exceed the Automatic Binding Limits or Jumbo Limits. Any adjustment for the difference in reinsurance premiums shall be made without interest. F. The Reinsurer shall pay interest on its share of any Policy claim settlement calculated at the same rate and for the same period of time as that used by the Ceding Company. G. The Reinsurer shall share in the same proportion of any claim under an accelerated death benefit rider (and any continued coverage under the policy) that the Reinsurer would share in the absence of the rider. H. The Reinsurer shall pay its share of any death benefit that has been accelerated under ECAR at the time of the insured's death. For any Policy with ECAR where a portion of the death benefit has been accelerated under the rider, the claim includes any amounts accelerated and proof of payment shall include proof of payment for any accelerated payments. For any Policy with ECAR where a portion of the death benefit has been accelerated and the Policy has later terminated, documentation from the Social Security Death Index shall be sufficient evidence of death. I. Policy Rescission: If it is determined that a policy reinsured under this Agreement should be rescinded due to misrepresentation by the policyholder or the insured, the Reinsurer will pay its share of reasonable investigation and legal expenses connected with the rescission action. The Reinsurer shall not be liable for any portion of any administrative expenses incidental to the rescission action or for the compensation of salaried officers and employees of the Ceding Company involved in the rescission action other than third party expenses incurred by the Ceding Company, provided however that compensation as used in this paragraph shall not include the hourly fees and expenses associated with the investigation or litigation of a particular rescission by salaried officers and employees of the Ceding Company. If the Ceding Company returns premiums to the policy owner or beneficiary as a result of misrepresentation, or if the Ceding Company pays a suicide benefit equal to the premiums paid for the policy, the Reinsurer will refund net Page 9 of 20 reinsurance premiums received on that policy to the Ceding Company, without interest. Page 10 of 20 EXHIBIT III POLICIES AND RIDERS ------------------- The Policies and Riders underwritten by or on behalf of the Ceding Companies or simplified issue with fully underwritten rates, as described below may be ceded hereunder:
STATUTORY VALUATION REINSURANCE REINSURANCE REINSURANCE REINSURANCE CEDING MORTALITY RATES TO BE PRODUCT CATEGORY BASIS MAXIMUM AGE TABLE COMPANY TABLE USED ------- ----------- ------------- ----------- -------------- ---------- --------- --------------- 90-95modified MLI 6 Class GLT Term Excess 100 - UW.xls USA/FMLI 2001 CSO Level Term 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class (joint JSUL 2005 Product First Dollar 120 120.xls USA 2001 CSO life) Permanent - 5 class (single life); Permanent - 4 class (single life); 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 2 class GAUL07 Product First Dollar 121 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class EAVUL08 Product Excess 121 120.xls USA 2001 CSO (single life) Life Paid up at 90-95modified Permanent - Age 100 (WL UL/Accum - UW to age 5 class 08) Product Excess 121 120.xls MLIC 2001 CSO (single life) Permanent - EEA COLI UL/Accum 90-95modified 5 class (2001 CSO) Product Excess 100 - UW.xls NELICO 2001 CSO (single life) Permanent - UL/Accum 90-95modified 4 class PPVUL Product Excess 100 - UW.xls GALIC 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW - 2 class Premier BOLI Product Excess 100 ALB.xls MLIC 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class LASUL 09 Product First Dollar 120 120.xls USA 2001 CSO (joint life) Permanent - 5 class (single life); Permanent - 4 class (single life); 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 2 class GAUL 09 Product First Dollar 121 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class WL 10 Product Excess 120 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class (joint LASUL 11 Product First Dollar 120 120.xls USA 2001 CSO life)
Page 11 of 20
STATUTORY VALUATION REINSURANCE REINSURANCE REINSURANCE REINSURANCE CEDING MORTALITY RATES TO BE PRODUCT CATEGORY BASIS MAXIMUM AGE TABLE COMPANY TABLE USED ------- ----------- ------------ ----------- ------------- --------- --------- -------------- Permanent - 5 class (single life); Permanent - 4 class (single life); 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 2 class GAUL 11 Product First Dollar 121 120.xls USA 2001 CSO (single life) Life Paid up at 90-95modified Permanent - Age 120 UL/Accum - UW to age MLIC, MLI 5 class (L120) Product Excess 120 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class LASUL 12 Product First Dollar 120 120.xls USA 2001 CSO (joint life) Permanent - 5 class (single life); Permanent - 4 class (single life); 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 2 class GAUL 12 Product First Dollar 121 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class LGUL 12 Product Excess 121 120.xls USA 2001 CSO (single life) 90-95modified MLIC, MLI 6 Class CDT Term Excess 100 - UW.xls USA 2001 CSO Level Term 90-95modified MLIC, MLI 2 Class One OYT Term Excess 100 - UW.xls USA 2001 CSO Year Term OYT w Convertible & Renewable 90-95modified MLIC, MLI 6 Class One Options rider Term Excess 100 - UW.xls USA 2001 CSO Year Term 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class LP 10 Product Excess 120 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class LP 20 Product Excess 120 120.xls USA 2001 CSO (single life) 90-95modified Permanent - UL/Accum - UW to age MLIC, MLI 5 class LP 65 Product Excess 120 120.xls USA 2001 CSO (single life) 6 class Level Term (Elite + NS, Elite NS, Pref NS, Std 90-95modified MLIC, MLI NS, Pref SM, GLT 13 Term Excess 100 - UW.xls USA 2001 CSO Std SM )
Product ------- GLT - Guaranteed Level Term JSUL 2005 - Joint Universal Life with Secondary Guarantee GAUL07 - Universal Life with Secondary Guarantee Page 12 of 20 EAVUL08 - Variable Universal Life Life Paid up at Age 100 (WL08) - Whole Life EEA COLI (2001 CSO) - Variable Universal Life PPVUL - Variable Universal Life Premier BOLI - Universal Life LASUL 09 - Joint Universal Life with Secondary Guarantee GAUL 09 - Universal Life with Secondary Guarantee WL 10 - Whole Life LASUL 11 - Joint Universal Life with Secondary Guarantee GAUL 11 - Universal Life with Secondary Guarantee Life Paid up at Age 120 (L120) - Whole Life LASUL 12 - Joint Universal Life with Secondary Guarantee GAUL 12 - Universal Life with Secondary Guarantee LGUL 12 - Universal Life with Secondary Guarantee CDT - Guaranteed Level Term OYT - One Year Term OYT w/ Convertible & Renewable Options rider - One Year Term LP10 - Whole Life LP20 - Whole Life LP65 - Whole Life GLT 13 - Guaranteed Level Term Riders attached to the listed plans ----------------------------------- ADBR - Accelerated Death Benefit Rider Preliminary Term/Temporary Term ART - Annually Renewable Term JTCR - Joint Term Coverage Rider RPR - Return of Premium Rider EPTR - Estate Preservation Term Rider SFIO - Scheduled Face Increase Option PAIR - Option to Purchase Additional Insurance Rider Inside Term Rider Outside Term Rider FTR - Flexible Term Rider ECAR - Enhanced Care Acceleration Rider Other ----- The Reinsurer shall pay its share of any claim after the Reinsurance Maximum Age under the extended maturity coverage, including interest, as defined in Article VI. For joint life policies with one life insurable, this will be the Reinsurance Maximum Age of the insurable life and for joint life policies with both lives insurable, this will be the Reinsurance Maximum Age of the younger insured. Products not listed above resulting from the exercise of business exchanges, policy split options, and purchase options shall be covered on an excess reinsurance basis. For Policies ceded with RPR/SFIO riders, the maximum net amount at risk illustrated at the time of issue shall be used for purposes of underwriting, autobind limits, and jumbo limits. For Policies ceded facultatively with RPR rider, the ultimate amount ceded to the Reinsurers shall not exceed the maximum net amount at risk included in the facultative offers from the Reinsurers. Page 13 of 20 EXHIBIT IV TABLE A ------- Joint Life Minimum Premium Per Thousand: 0.15 For policies with a Reinsurance Basis of Excess and Reinsurance Category of Term -------------------------------------------------------------------------------- 6 Class Level Term - T10
Female Female Male Male Risk Class Rate Table Class Yrs 1-10 Yrs 11 + Yrs 1-10 Yrs 11+ Elite+ NS Elite Nonsmoker 63.0% 157.3% 55.0% 137.5% Pref+ NS Elite Nonsmoker 68.2% 170.4% 57.7% 144.1% Std+ NS Preferred Nonsmoker 60.7% 151.6% 53.2% 132.9% Std NS Standard (Residual) Nonsmoker 63.3% 157.8% 54.4% 136.0% Pref SM Preferred Smoker 75.1% 187.5% 85.7% 214.1% Std SM Standard (Residual) Smoker 79.5% 198.5% 78.5% 196.2% 6 Class Level Term - T15 Female Female Male Male Risk Class Rate Table Class Yrs 1-15 Yrs 16+ Yrs 1-15 Yrs 16+ Elite+ NS Elite Nonsmoker 59.9% 149.5% 52.4% 130.8% Pref+ NS Elite Nonsmoker 64.3% 160.5% 55.9% 139.5% Std+ NS Preferred Nonsmoker 58.8% 147.0% 50.8% 127.0% Std NS Standard (Residual) Nonsmoker 58.8% 147.0% 50.0% 124.8% Pref SM Preferred Smoker 73.2% 182.9% 84.0% 209.8% Std SM Standard (Residual) Smoker 77.1% 192.5% 76.7% 191.5% 6 Class Level Term - T20 Female Female Female Male Male Male Risk Class Rate Table Class Yrs 1-15 Yrs 16-20 Yrs 21 + Yrs 1-15 Yrs 16-20 Yrs 21+ Elite+ NS Elite Nonsmoker 62.3% 60.1% 150.1% 54.9% 56.6% 141.2% Pref+ NS Elite Nonsmoker 64.2% 65.4% 163.4% 57.6% 58.3% 145.6% Std+ NS Preferred Nonsmoker 63.4% 59.0% 147.5% 54.6% 53.3% 133.2% Std NS Standard (Residual) Nonsmoker 60.1% 55.9% 139.5% 53.3% 50.6% 126.5% Pref SM Preferred Smoker 71.7% 89.1% 222.8% 79.7% 101.3% 253.2% Std SM Standard (Residual) Smoker 76.3% 88.4% 220.8% 74.6% 91.3% 227.9%
Page 14 of 20 6 Class Level Term - T30 Female Female Female Male Male Male Risk Class Rate Table Class Yrs 1-15 Yrs 16-30 Yrs 31+ Yrs 1-15 Yrs 16-30 Yrs 31+ Eiite+ NS Elite Nonsmoker 66.4% 54.6% 136.5% 59.6% 58.9% 147.3% Pref+ NS Elite Nonsmoker 68.8% 56.3% 140.5% 65.9% 62.7% 156.6% Std+ NS Preferred Nonsmoker 71.2% 53.6% 133.9% 62.4% 55.4% 138.4% Std NS Standard (Residual) Nonsmoker 61.7% 45.5% 113.6% 64.3% 53.7% 134.3% Pref SM Preferred Smoker 69.1% 75.9% 189.7% 71.9% 90.2% 225.6% Std SM Standard (Residual) Smoker 76.1% 77.2% 192.7% 70.8% 84.2% 210.3% 2 Class One Year Term Female Male Risk Class Rate Table Class Yr 1 Yr 1 Std NS Standard (Residual) Nonsmoker 74.1% 63.7% Std SM Standard (Residual) Smoker 93.1% 91.9% 6 Class One Year Term Female Male Risk Class Rate Table Class Yrs 1-5 Yrs 1-5 Elite+ NS Elite Nonsmoker 66.8% 58.3% Pref+ NS Elite Nonsmoker 72.3% 61.2% Std+ NS Preferred Nonsmoker 64.4% 56.4% Std NS Standard (Residual) Nonsmoker 67.1% 57.7% Pref SM Preferred Smoker 79.7% 90.9% Std SM Standard (Residual) Smoker 84.3% 83.3% 6 Class Level Term (Elite + NS, Elite NS, Pref NS, Std NS, Pref SM, Std SM ) - T10 Female Female Male Male Risk Class Rate Table Class Yrs 1-10 Yrs 11+ Yrs 1-10 Yrs 11+ Elite+ NS Elite Nonsmoker 63.0% 157.3% 55.0% 137.5% Elite NS Elite Nonsmoker 68.2% 170.4% 57.7% 144.1% Pref NS Preferred Nonsmoker 60.7% 151.6% 53.2% 132.9% Std NS Standard (Residual) Nonsmoker 63.3% 157.8% 54.4% 136.0% Pref SM Preferred Smoker 75.1% 187.5% 85.7% 214.1% Std SM Standard (Residual) Smoker 79.5% 198.5% 78.5% 196.2%
35 6 Class Level Term (Elite + NS, Elite NS, Pref NS, Std NS, Pref SM, Std SM ) - T15 Female Female Male Male Risk Class Rate Table Class Yrs 1-15 Yrs 16+ Yrs 1-15 Yrs 16+ Elite+ NS Elite Nonsmoker 59.9% 149.5% 52.4% 130.8% Elite NS Elite Nonsmoker 64.3% 160.5% 55.9% 139.5% Pref NS Preferred Nonsmoker 58.8% 147.0% 50.8% 127.0% Std NS Standard (Residual) Nonsmoker 58.8% 147.0% 50.0% 124.8% Pref SM Preferred Smoker 73.2% 182.9% 84.0% 209.8% Std SM Standard (Residual) Smoker 77.1% 192.5% 76.7% 191.5% 6 Class Level Term (Elite + NS, Elite NS, Pref NS, Std NS, Pref SM, Std SM ) - T20 Female Female Female Male Male Male Risk Class Rate Table Class Yrs 1-15 Yrs 16-20 Yrs 21+ Yrs 1-15 Yrs 16-20 Yrs 21+ Elite+ NS Elite Nonsmoker 62.3% 60.1% 150.1% 54.9% 56.6% 141.2% Elite NS Elite Nonsmoker 64.2% 65.4% 163.4% 57.6% 58.3% 145.6% Pref NS Preferred Nonsmoker 63.4% 59.0% 147.5% 54.6% 53.3% 133.2% Std NS Standard (Residual) Nonsmoker 60.1% 55.9% 139.5% 53.3% 50.6% 126.5% Pref SM Preferred Smoker 71.7% 89.1% 222.8% 79.7% 101.3% 253.2% Std SM Standard (Residual) Smoker 76.3% 88.4% 220.8% 74.6% 91.3% 227.9% 6 Class Level Term (Elite + NS, Elite NS, Pref NS, Std NS, Pref SM, Std SM ) - T30 Female Female Female Male Male Male Risk Class Rate Table Class Yrs 1-15 Yrs 16-30 Yrs 31+ Yrs 1-15 Yrs 16-30 Yrs 31+ Elite+ NS Elite Nonsmoker 66.4% 54.6% 136.5% 59.6% 58.9% 147.3% Elite NS Elite Nonsmoker 68.8% 56.3% 140.5% 65.9% 62.7% 156.6% Pref NS Preferred Nonsmoker 71.2% 53.6% 133.9% 62.4% 55.4% 138.4% Std NS Standard (Residual) Nonsmoker 61.7% 45.5% 113.6% 64.3% 53.7% 134.3% Pref SM Preferred Smoker 69.1% 75.9% 189.7% 71.9% 90.2% 225.6% Std SM Standard (Residual) Smoker 76.1% 77.2% 192.7% 70.8% 84.2% 210.3%
36 For policies with a Reinsurance Basis of First Dollar and Reinsurance Category ------------------------------------------------------------------------------ of UL/Accumulation ------------------ Permanent Fully Underwritten 5-Class - Single Life -$1,000,000 + Female Female Female Female Female Female Female Female IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 56.1% 63.6% 76.5% 82.2% Pref NS Preferred Nonsmoker 59.1% 65.2% 74.4% 69.3% Std NS Standard (Residual) Nonsmoker 59.3% 68.6% 68.6% 70.5% 60.0% 60.0% Pref SM Preferred Smoker 77.0% 149.9% 132.7% 176.4% Std SM Standard (Residual) Smoker 80.3% 162.3% 162.3% 123.1% 184.8% 184.8% Agg Aggregate 59.3% 70.5% Male Male Male Male Male Male Male Male IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 46.2% 50.2% 56.2% 66.9% Pref NS Preferred Nonsmoker 49.7% 50.2% 54.4% 57.8% Std NS Standard (Residual) Nonsmoker 46.8% 51.7% 51.7% 48.4% 53.1% 53.1% Pref SM Preferred Smoker 89.0% 139.0% 133.9% 149.7% Std SM Standard (Residual) Smoker 80.2% 147.1% 147.1% 115.6% 134.3% 134.3% Agg Aggregate 46.8% 48.4% Permanent Fully Underwritten 5-Class - Single Life - $250,000 - $999,999 Female Female Female Female Female Female Female Female IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 75.1% 85.8% 98.3% 107.0% Pref NS Preferred Nonsmoker 74.0% 81.1% 97.4% 91.7% Std NS Standard (Residual) Nonsmoker 75.9% 82.5% 82.5% 93.9% 81.0% 81.0% Pref SM Preferred Smoker 103.4% 202.3% 171.5% 241.6% Std SM Standard (Residual) Smoker 108.2% 219.0% 219.0% 159.5% 257.8% 257.8% Agg Aggregate 75.9% 93.9% Male Male Male Male Male Male Male Male IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 60.9% 68.3% 72.8% 87.7% Pref NS Preferred Nonsmoker 63.4% 68.2% 70.6% 76.1% Std NS Standard (Residual) Nonsmoker 61.6% 67.9% 67.9% 62.9% 67.2% 67.2% Pref SM Preferred Smoker 119.8% 189.0% 175.6% 205.4% Std SM Standard (Residual) Smoker 108.3% 170.9% 170.9% 152.9% 184.7% 184.7% Agg Aggregate 61.6% 62.9%
Page 17 of 20 Permanent Fully Underwritten 4-Class - Single Life - $100,000 - $249,999 Female Female Female Female Female Female Female Female IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Pref NS Preferred Nonsmoker 74.0% 81.1% 97.4% 91.7% Std NS Standard (Residual) Nonsmoker 75.9% 82.5% 82.5% 93.9% 81.0% 81.0% Pref SM Preferred Smoker 103.4% 202.3% 171.5% 241.6% Std SM Standard (Residual) Smoker 108.2% 219.0% 219.0% 159.5% 257.8% 257.8% Agg Aggregate 75.9% 93.9% Male Male Male Male Male Male Male Male IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Pref NS Preferred Nonsmoker 63.4% 68.2% 70.6% 76.1% Std NS Standard (Residual) Nonsmoker 61.6% 67.9% 67.9% 62.9% 67.2% 67.2% Pref SM Preferred Smoker 119.8% 189.0% 175.6% 205.4% Std SM Standard (Residual) Smoker 108.3% 170.9% 170.9% 152.9% 184.7% 184.7% Agg Aggregate 61.6% 62.9% Permanent Fully Underwritten 2-Class - Single Life - < $100,000 Female Female Female Female Female Female Female Female IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Std NS Standard (Residual) Nonsmoker 83.4% 95.5% 95.5% 102.7% 93.8% 93.8% Std SM Standard (Residual) Smoker 113.8% 228.2% 228.2% 166.4% 272.9% 272.9% Agg Aggregate 83.4% 102.7% Male Male Male Male Male Male Male Male IA 0-17 IA 18-70 IA 71-80 IA 81-85 IA 0-17 IA 18-70 IA 71-80 IA 81-85 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Yrs 16+ Std NS Standard (Residual) Nonsmoker 67.8% 77.5% 77.5% 69.1% 77.5% 77.5% Std SM Standard (Residual) Smoker 121.3% 191.2% 191.2% 169.0% 208.4% 208.4% Agg Aggregate 67.8% 69.1% Permanent Fully Underwritten 5-Class - Joint Life - $1,000,000 + IA 18-70 IA 71-80 IA 81-90 IA 18-70 IA 71-80 IA 81-90 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 59.8% 74.4% 78.1% 75.0% Pref NS Preferred Nonsmoker 60.6% 69.0% 69.1% 63.9% Std NS Standard (Residual) Nonsmoker 62.3% 66.9% 66.9% 61.2% 58.4% 58.4% Pref SM Preferred Smoker 105.1% 180.4% 164.6% 155.1% Std SM Standard (Residual) Smoker 95.6% 194.8% 194.8% 146.2% 162.8% 162.8%
Page 18 of 20 Permanent Fully Underwritten 5-Class - Joint Life - $250,000 - $999,999
IA 18-70 IA 71-80 IA 81-90 IA 18-70 IA 71-80 IA 81-90 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 61.5% 84.2% 91.4% 93.2% Pref NS Preferred Nonsmoker 66.7% 78.8% 82.4% 79.7% Std NS Standard (Residual) Nonsmoker 69.0% 72.7% 72.7% 74.2% 71.7% 71.7% Pref SM Preferred Smoker 121.2% 219.8% 202.5% 210.6% Std SM Standard (Residual) Smoker 111.6% 240.4% 240.4% 181.2% 224.9% 224.9%
Page 19 of 20 For policies with a Reinsurance Basis of Excess and Reinsurance Category ------------------------------------------------------------------------ of UL/Accumulation ------------------ Permanent Fully Underwritten 5-Class - Single Life Female Female Female Female Female Female IA 0-17 IA 18-80 IA 81-85 IA 0-17 IA 18-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 68.1% 75.2% Pref NS Preferred Nonsmoker 63.4% 65.4% Std NS Standard (Residual) Nonsmoker 64.1% 64.1% 60.9% 60.9% Pref SM Preferred Smoker 81.3% 115.0% Std SM Standard (Residual) Smoker 85.7% 85.7% 109.7% 109.7% Agg Aggregate 64.1% 60.9% Male Male Male Male Male Male IA 0-17 IA 18-80 IA 81-85 IA 0-17 IA 18-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Elite NS Elite Nonsmoker 58.1% 62.8% Pref NS Preferred Nonsmoker 56.6% 55.8% Std NS Standard (Residual) Nonsmoker 57.3% 57.3% 52.1% 52.1% Pref SM Preferred Smoker 90.9% 123.2% Std SM Standard (Residual) Smoker 83.2% 83.2% 108.5% 108.5% Agg Aggregate 57.3% 52.1% Permanent Fully Underwritten 4-Class - Single Life Female Female Female Female Female Female IA 0-17 IA 18-80 IA 81-85 IA 0-17 IA 18-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Pref NS Preferred Nonsmoker 62.1% 64.1% Std NS Standard (Residual) Nonsmoker 64.0% 64.0% 60.8% 60.8% Pref SM Preferred Smoker 81.3% 114.9% Std SM Standard (Residual) Smoker 85.7% 85.7% 109.7% 109.7% Agg Aggregate 64.0% 60.8% Male Male Male Male Male Male IA 0-17 IA 18-80 IA 81-85 IA 0-17 IA 18-80 IA 81-85 Risk Class Rate Table Class Yrs 1-15 Yrs 1-15 Yrs 1-15 Yrs 16+ Yrs 16+ Yrs 16+ Pref NS Preferred Nonsmoker 56.0% 55.2% Std NS Standard (Residual) Nonsmoker 57.3% 57.3% 52.0% 52.0% Pref SM Preferred Smoker 90.8% 123.1% Std SM Standard (Residual) Smoker 83.1% 83.1% 108.4% 108.4% Agg Aggregate 57.3% 52.0% Permanent Fully Underwritten 2-Class - Single Life Female Female Male Male IA 20-80 IA 20-80 IA 20-80 IA 20-80 Risk Class Rate Table Class Yrs 1-15 Yrs 16+ Yrs 1-15 Yrs 16+ Std NS Standard (Residual) Nonsmoker 62.2% 59.0% 57.3% 52.0% Std SM Standard (Residual) Smoker 80.5% 103.1% 79.9% 104.1%
Page 20 of 20 COX, PATRISHA -------------------------------------------------------------------------------- FROM: SCOR Global Life Americas SENT: Monday, November 25, 2013 1:02 PM TO: SCOR Global Life Americas SUBJECT: New Name - SCOR Global Life USA Reinsurance Company [LOGO OF SCOR Global Life] November 25, 2013 Dear Valued Client, As you know, on October 1, SCOR successfully closed the acquisition of 100% of Generali U.S. Holdings, Inc., the holding company for Generali USA Life Reassurance Company ("Generali USA"), which then became part of SCOR Global Life Americas. We're pleased to inform you that the Delaware Department of Insurance has approved the name change from Generali USA Life Reassurance Company to SCOR Global Life USA Reinsurance Company (SGL-USA). The NAIC number (97071) remains the same. The legal entity names have not changed for SCOR Global Life Americas Reinsurance Company or SCOR Global Life Reinsurance Company of Texas. SGL-USA operates under the marketing name of "SCOR Global Life Americas." However, our new reinsurance and other agreements will begin using the SGL-USA legal entity name. There is no requirement that documents utilizing the old Generali USA be amended to reflect the new name. Of course, if there is a business need for an amendment to an existing agreement, we anticipate adding appropriate language referencing that circumstance. As we've communicated previously, since the purchase of SGL-USA was executed via a stock acquisition, all of its existing treaties will remain in force and there is no need for novations or other similar activity. We would like to take this opportunity to thank you once again for your support during the sale process and the integration into the SCOR organization. Please do not hesitate to call your account executive or me at any time if you have questions about these or other matters. 1 Sincerely, /s/ J.C. Brueckner -------------------------- J.C. Brueckner Head of US Life Reinsurance SCOR GLOBAL LIFE USA REINSURANCE COMPANY Tel: (913) 901-4600 11625 Rosewood Street, Suite 300 Fax: (913) 901-4778 Leawood, KS 66211 WWW.SCOR.COM/SGLA ----------------- United States Ce message, ainsi que les pieces jointes, sont exclusivement destines aux personnes dont le nom figure ci-dessus. Ils peuvent contenir des informations confidentielles dont la divulgation est a ce titre rigoureusement interdite. Dans l'hypothese ou vous auriez recu ce message par erreur, merci de le supprimer et d'en avertir l'expediteur a l'adresse e-mail ci-dessus. Diese E-Mail, einschliesslich angehangter Dateien, kann vertrauliche und/oder rechtlich geschutzte Informationen enthalten. Wenn Sie nicht der beabsichtigte Empfanger sind oder diese E-Mail irrtumlich erhalten haben, informieren Sie bitte sofort den Absender per E-Mail und loschen Sie diese E-Mail aus Ihrem System. Das unerlaubte Kopieren sowie die unbefugte Weitergabe dieser E-Mail ist nicht gestattet. ******************************************************************************* ********************************************* ********************************** This message, including attachments, is intended for the above-mentioned addressees only. It may contain confidential information the review, dissemination or disclosure of which is strictly prohibited. Should you receive this message in error, please delete it and notify the sender to the e-mail address indicated above. 2 COX, PATRISHA -------------------------------------------------------------------------------- FROM: Cox, Patrisha SENT: Wednesday, November 19, 2014 11:23 AM TO: 'VILLA Manny' SUBJECT: Notice for MetLife Insurance Company of Connecticut, MetLife Investors Insurance Company, MetLife Investors USA Insurance Company and Exeter Reassurance Company, Ltd. Please be advised that in connection with an internal restructuring effective on November 14, 2014, MetLife Insurance Company of Connecticut has been redomiciled from Connecticut to Delaware and renamed MetLife Insurance Company USA ("MICUSA"). In addition, effective on November 14, 2014, MetLife Investors Insurance Company (currently domiciled in Missouri), MetLife Investors USA Insurance Company (currently domiciled in Delaware) and Exeter Reassurance Company, Ltd. (currently domiciled in Delaware) have been merged with and into MetLife Insurance Company USA, with MICUSA being the surviving entity in each of those mergers. Accordingly, effective as of the effective time of the name change, each existing reinsurance agreement with MetLife Insurance Company of Connecticut has continued with the company under the new name of MetLife Insurance Company USA. Accordingly, effective as of the effective time of the applicable merger, each existing reinsurance agreement with MetLife Investors Insurance Company, MetLife Investors USA Insurance Company and Exeter Reassurance Company, Ltd. has become a reinsurance agreement with their successor MetLife Insurance Company USA. MetLife Investors Insurance Company, MetLife Investors USA Insurance Company and Exeter Reassurance Company, Ltd. no longer exist and all of their rights and obligations have become, by operation of law, rights and obligations of MICUSA. For your information, MetLife Insurance Company USA's Employer ID Number will remain 06-0566090 and NAIC Company Code is 87726. Please file this notice in all affected reinsurance agreements. We look forward to our continuing reinsurance relationship with you. /s/ Trisha Cox -------------------------- Trisha Cox, FSA, MAAA Asst. Vice President & Actuary MetLife tcox1@metlife.com ----------------- (617)578-4697 (phone) 1 EX-99.H(XII) 3 d22797dex99hxii.txt PARTICIPATION AGREEMENT AMENDMENT AMENDMENT TO PARTICIPATION AGREEMENT Franklin Templeton Variable Insurance Products Trust Franklin/Templeton Distributors, Inc. Metropolitan Life Insurance Company MetLife Investors Distribution Company Franklin Templeton Variable Insurance Products Trust (the "Trust"), Franklin/Templeton Distributors, Inc. (the "Underwriter," and together with the Trust, "we," "our," or "us"), Metropolitan Life Insurance Company, and MetLife Investors Distribution Company, your distributor (collectively, the "Company" "you" or "your"), on your behalf and on behalf of certain Accounts, (individually a "Party", collectively, the "Parties") have previously entered into a Participation Agreement dated May 1, 2004, as amended (the "Agreement"). The Parties now desire to amend the Agreement by this amendment (the "Amendment"). Unless otherwise indicated, the terms defined in the Agreement shall have the same meaning in this Amendment. A M E N D M E N T For good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree to amend the Agreement as follows: 1. Paragraph 3.3.1 of Section 3.3 of the Agreement is deleted and replaced in its entirety with the paragraph 3.3.1 below: "3.3 MANUAL PURCHASE AND REDEMPTION 3.3.1 You are hereby appointed as our designee for the sole purpose of receiving from Contract owners purchase and exchange orders and requests for redemption resulting from investment in and payments under the Contracts that pertain to subaccounts that invest in Portfolios ("Instructions"). "Business Day" shall mean any day on which the New York Stock Exchange is open for trading and on which the Trust calculates its net asset value pursuant to the rules of the SEC and its current prospectus. "Close of Trading" shall mean the close of trading on the New York Stock Exchange, generally 4:00 p.m. Eastern Time. You represent and warrant that all Instructions transmitted to us for processing on or as of a given Business Day (the "Designated Day") shall have been received in proper form and time stamped by you prior to the Close of Trading on the Designated Day. Such Instructions shall receive the Portfolio share price next calculated following the Close of Trading on the Designated Day (the "Designated Day Price"), provided that we receive the Instructions from you before 9:00 a.m. Eastern Time on the Business Day following the Designated Day (the "Submission Time"). Any such Instructions that we receive after the Submission Time may, but are not guaranteed to, receive the Designated Day Price. You assume responsibility for any loss to a Portfolio caused by our receipt of Instructions after the Submission Time, including but not limited to, losses caused by such Instructions receiving the Designated Day Price, or any cancellation or correction made subsequent to the Submission Time. You will immediately pay the amount of such loss to a Portfolio upon notification by us. You represent and warrant that you have, maintain and periodically test, procedures and systems in place reasonably designed to prevent Instructions received after the Close of Trading on a Designated Day from being executed with Instructions received before the Close of Trading on that Designated Day." 2. Paragraph 3.4.3 of Section 3.4 of the Agreement is deleted and replaced in its entirety with the paragraph 3.4.3 below: "3.4 AUTOMATED PURCHASE AND REDEMPTION 3.4.3 On each Business Day, you shall aggregate all purchase and redemption orders for shares of a Portfolio that you received prior to the Close of Trading. You represent and warrant that all orders for net purchases or net redemptions derived from Instructions received by you and transmitted to Fund/SERV for processing on or as of a given Business Day (the "Designated Day") shall have been received in proper form and time stamped by you prior to the Close of Trading on the Designated Day. Such orders shall receive the Portfolio share price next calculated following the Close of Trading on the Designated Day (the "Designated Day Price"), provided that we receive Instructions from Fund/SERV by 9:00 a.m. Eastern Time on the Business Day following the Designated Day (the "Submission Time"). Any such Instructions that we receive after the Submission Time may, but are not guaranteed to, receive the Designated Day Price. You assume responsibility for any loss to a Portfolio caused by our receipt of Instructions after the Submission Time including, but not limited to, losses caused by such Instructions receiving the Designated Day Price, or any cancellation or correction made subsequent to the Submission Time. You will immediately pay the amount of such loss to a Portfolio upon notification by us. You represent and warrant that you have, maintain and periodically test, procedures and systems in place reasonably designed to prevent Instructions received after the Close of Trading on a Designated Day from being executed with Instructions received before the Close of Trading on that Designated Day." 3. All other terms and provisions of the Agreement not amended herein shall remain in full force and effect. IN WITNESS WHEREOF, each of the Parties has caused its duly authorized officers to execute this Amendment effective as of August 1, 2014. The Trust: FRANKLIN TEMPLETON VARIABLE INSURANCE ONLY ON BEHALF OF PRODUCTS TRUST EACH PORTFOLIO LISTED ON SCHEDULE C OF THE AGREEMENT. By: /s/ Karen L. Skidmore ------------------------------------- Name: Karen L. Skidmore Title: Vice President 2 The Underwriter: FRANKLIN/TEMPLETON DISTRIBUTORS, INC. By: /s/ Christopher Felchlin ------------------------------------- Name: Christopher Felchlin Title: Vice President The Company: METROPOLITAN LIFE INSURANCE COMPANY By: /s/ Alan C. Leland, Jr. ------------------------------------- Name: Alan C. Leland, Jr. Title: Vice President The Distributor: METLIFE INVESTORS DISTRIBUTION COMPANY By: /s/ Elizabeth M. Forget ------------------------------------- Name: Elizabeth M. Forget Title: President 3 EX-99.L 4 d22797dex99l.txt ACTUARIAL OPINION & CONSENT Metropolitan Life Insurance Company 11215 North Community House Road Charlotte, NC 28277 Barbara Stroz Vice President and Actuary April 14, 2016 Metropolitan Life Insurance Company 200 Park Avenue New York, New York 10166 Re: Equity Advantage VUL Ladies and Gentlemen: In my capacity as Vice President and Actuary of Metropolitan Life Insurance Company (the "Company"), I have provided actuarial advice concerning: The preparation of Post-Effective Amendment No. 8 to the registration statement on Form N-6 (File No. 333-147508) filed by Metropolitan Life Separate Account UL and the Company with the Securities and Exchange Commission under the Securities Act of 1933 with respect to variable life insurance policies (the "Registration Statement"); and The preparation of policy forms for the variable life insurance policies described in the Registration Statement (the "Policies"). It is my professional opinion that: 1. The illustrations of death benefits, cash surrender values and cash values shown under "Partial Withdrawal" and in Appendix B of the Prospectus, based on the assumptions stated in the illustrations, are consistent with the provisions of the Policies. The rate structure of the Policies has not been designed so as to make the relationship between premiums and benefits, as shown in the illustrations, appear to be correspondingly more favorable to prospective purchasers of Policies for male insureds, aged 35 in the underwriting class illustrated, than to prospective purchasers of Policies for insureds of other sexes or ages. Insureds in other underwriting classes may have higher cost of insurance charges. 2. The calculation of surrender charges, face amounts and cash values shown in the Example under the heading "Surrenders and Partial Withdrawals - Partial Withdrawal" are accurate and consistent with the provisions of the Policies based on the assumptions stated in the Example. 3. The illustration of net premiums shown under the heading "Charges - Deductions from Premiums" in the Prospectus contains the net premium amounts allocated to the Policy for a $4,000 premium. 4. The maximum surrender charges shown in the examples of surrender charges under the heading "Charges - Surrender Charges" are the correct amounts based on the Policy's face amount and the characteristics of the insured. I hereby consent to the filing of this opinion as an Exhibit to this Post-Effective Amendment to the Registration Statement and to the use of my name under the heading "Experts" in the Statement of Additional Information. Sincerely, /s/ Barbara Stroz Barbara Stroz, F.S.A. Vice President and Actuary EX-99.M 5 d22797dex99m.txt CALCULATION EXHIBIT CALCULATION EXHIBIT FOR EQUITY ADVANTAGE VUL 08 ASSUMPTIONS: MALE, ISSUE AGE 35, PREFERRED NONSMOKER FACE AMOUNT OF 375,000.00 GUIDELINE PREMIUM TEST, LEVEL DB OPTION PLANNED ANNUAL PREMIUM OF 2,500.00 USING CURRENT CHARGES, 6.00% GROSS INTEREST RATE THE FOLLOWING IS A DETAILED REPRESENTATION OF THE MONTHLY PROCESSING DURING POLICY YEAR 5:
BEGINNING COST END OUT- END END OF MONTH GROSS OF NET OF MONTH STANDING OF MONTH OF MONTH POLICY POLICY CASH PREMIUM PREMIUM ASSET ADMIN RIDER INSURANCE INVESTMENT CASH SURRENDER LOAN CASH SURR DEATH YEAR MONTH VALUE PAID LOAD CHARGE CHARGE CHARGE CHARGE EARNIGS VALUE CHARGE BALANCE VALUE BENEFIT 5 1 6,783.92 2,500.00 137.50 4.56 61.73 0.00 17.99 38.51 9,100.65 4,492.10 0.00 4,608.55 375,000.00 5 2 9,100.65 0.00 0.00 4.54 61.73 0.00 18.00 38.31 9,054.69 4,433.76 0.00 4,620.93 375,000.00 5 3 9,054.69 0.00 0.00 4.51 61.73 0.00 18.00 38.12 9,008.57 4,375.43 0.00 4,633.14 375,000.00 5 4 9,008.57 0.00 0.00 4.49 61.73 0.00 18.00 37.92 8,962.27 4,317.09 0.00 4,645.18 375,000.00 5 5 8,962.27 0.00 0.00 4.47 61.73 0.00 18.00 37.73 8,915.80 4,258.75 0.00 4,657.05 375,000.00 5 6 8,915.80 0.00 0.00 4.45 61.73 0.00 18.01 37.53 8,869.14 4,200.41 0.00 4,668.73 375,000.00 5 7 8,869.14 0.00 0.00 4.42 61.73 0.00 18.01 37.33 8,822.31 4,142.08 0.00 4,680.23 375,000.00 5 8 8,822.31 0.00 0.00 4.40 61.73 0.00 18.01 37.13 8,775.30 4,083.74 0.00 4,691.56 375,000.00 5 9 8,775.30 0.00 0.00 4.38 61.73 0.00 18.01 36.93 8,728.11 4,025.40 0.00 4,702.71 375,000.00 5 10 8,728.11 0.00 0.00 4.35 61.73 0.00 18.01 36.73 8,680.75 3,967.06 0.00 4,713.69 375,000.00 5 11 8,680.75 0.00 0.00 4.33 61.73 0.00 18.02 36.53 8,633.20 3,908.73 0.00 4,724.47 375,000.00 5 12 8,633.20 0.00 0.00 4.30 61.73 0.00 18.02 36.33 8,585.48 3,850.39 0.00 4,735.09 375,000.00
THE FOLLOWING IS A DESCRIPTION OF EACH COLUMN OF THE DETAILED REPRESENTATION: POLICY YEAR The policy year is assumed to be 5, as described above. POLICY MONTH The policy month ranges from 1 through 12, to describe the monthly processing that occurs throughout the policy year. BEGINNING OF MONTH CASH VALUE The beginning of month cash value (BOM CV) in each current month is equal to the end of month cash value from each previous month. This demonstration assumes that the cash value is comprised of separate account cash value only; no general account cash value or loan account cash value are present. GROSS PREMIUM PAID The gross premium paid is the planned ANNUAL premium of 2,500.00 as described above. PREMIUM LOAD The premium load is the sum of the sales charge, premium tax, and federal tax as described in the Transaction Fees table. For year 5, this sum is 5.50% of gross premium paid up to target, and 3.25% of gross premium paid over target. In year 5 month 1, the premium load is therefore 5.50% x 2,500.00 + 3.25% x Max{0, 2,500.00 - 3,500.36} = 137.50 (the target premium is 3,500.36). ASSET CHARGE The asset charge is a percentage of the separate account cash value at the time that the charge is deducted. This demonstration assumes that all cash value is comprised of separate account cash value only. The annual percentages are described in the Periodic Fees table. The monthly percentages are the annual percentages compounded monthly. For example, in year 5 month 1, the annual percentage is 0.60% and the cash value at the time that the charge is deducted is: Cash Value = BOM CV + Gross Premium Paid - Premium Load Cash Value = 6,783.92 + 2,500.00 - 137.50 (values are from the Detailed Representation above) Cash Value = 9,146.42 The asset charge is therefore {[(1+0.60%)^(1/12)]-1} x 9,146.42 = 0.049863025% x 9,146.42 = 2.80.
ADMIN CHARGE The admin charge is the sum of the Policy Charge and the Administration and Issue Expense Charge (per 1000) multiplied by the face amount divided by 1000 as described in the Periodic Fees table (although the Administration and Issue Expense Charge (per 1000) listed in the Periodic Fees table is rounded to 2 places, whereas the exact charge is used here). In year 5, this sum is therefore 0.00 + (0.1646 x 375,000.00 / 1,000) = 61.73. RIDER CHARGE The rider charge is the sum of the charges for all riders present, except for the Guaranteed Survivor Income Benefit Rider (GSIB), the Guaranteed Minimum Death Benefit Rider (GMDB), and the Waiver of Monthly Deduction Rider (WMD). The GSIB and GMDB riders are calculated at the same point in time as the Cost of Insurance Charge because they use the same death benefit and net amount at risk respectively. The WMD is calculated after the Cost of Insurance Charge because it uses that charge in its calculation. This illustration assumes no riders (including GSIB, GMDB, and WMD) are present; the rider charge (as well as GSIB charge, GMDB charge, and WMD charge) is therefore 0.00. A list of available riders can be found in the Rider Fees Table. COST OF INSURANCE CHARGE The cost of insurance (COI) charge is the product of the monthly COI rate and the net amount at risk (NAR). The NAR is the difference between the death benefit (DB) and the cash value (floored at 0), both at the time that the NAR is calculated. There are 6 different DB options: level DB option, guideline premium test: DB = Max (face amount , cash value x IRS Corridor Factor) increasing DB option, guideline premium test: DB = Max (face amount + cash value (floored at 0), cash value x IRS Corridor Factor) mixed DB option, guideline premium test: DB = increasing DB option, guideline premium test until attained age 65, level DB option, guideline premium test thereafter level DB option, cash value accumulation test: DB = Max (face amount , cash value x NSP Corridor Factor) increasing DB option, cash value accumulation test: DB = Max (face amount + cash value (floored at 0), cash value x NSP Corridor Factor) mixed DB option, cash value accumulation test: DB = increasing DB option, cash value accumulation test until attained age 65, level DB option, cash value accumulation test thereafter
At the time that the NAR is calculated, the face amount is comprised of those attributable to the base policy, the Supplemental Coverage Term Rider, and the Return of Premium Rider. It is divided by a monthly discount factor which is calculated based upon the guaranteed interest rate. The guaranteed interest rate is 3.00%, so the monthly discount factor is calculated as follows: monthly discount factor = ROUND {(1 + guaranteed interest rate) ^ (1/12), 7} monthly discount factor = ROUND {(1 + 3.00%) ^ (1/12), 7} monthly discount factor = 1.0024663 The NAR is: NAR = death benefit - Max (0, cash value) and finally the COI charge is: COI charge = monthly COI rate x NAR For example, in year 5 month 1, we have the following: level DB option, guideline premium test face amount = 375,000.00 cash value = BOM CV + Gross Premium Paid - Premium Load - Asset Charge - Admin Charge - Rider Charge cash value = 6,783.92 + 2,500.00 - 137.50 - 2.80 - 61.73 - 0.00 cash value = 9,081.90 IRS Corridor Factor = 2.50 monthly discount factor = 1.0024663 monthly COI rate = 0.0000493 DB = Max (face amount / monthly discount factor, cash value x IRS Corridor Factor) DB = Max (375,000.00 / 1.0024663, 9,081.90 x 2.50) DB = Max (374,077.41287662, 22,704.74) DB = 374,077.41287662 NAR = DB - Max (0, cash value) NAR = 374,077.41287662 - Max (0, 9,081.90) NAR = 374,077.41287662 - 9,081.90 NAR = 364,995.51787662 COI charge = monthly COI rate x NAR COI charge = 0.0000493 x 364,995.51787662 COI charge = 17.99
NET INVESTMENT EARNINGS The net investment earnings represent the policy performance of the cash value. The cash value is actually tracked separately for each separate account fund that has invested cash value, as well as for a loan fund if any loan balance is present. This demonstration assumes fund performance across all funds to average a gross annual interest rate of 6.00% and an investment management fee of 0.74%. To calculate the annual net interest rate (used to calculate the net investment earnings), given the annual gross interest rate and the investment management fee, we use the following: annual net interest rate = ROUND{([ {(1+I)^(1/365)} x {1-(IMF/365)} ] ^ 365) - 1, 4} where: I = annual gross interest rate IMF = investment management fee
For I = 6.00% and IMF = 0.74%, we have: annual net interest rate = ROUND{([ {(1+I)^(1/365)} x {1-(IMF/365)} ] ^ 365) - 1, 4} annual net interest rate = ROUND{([ {(1+6.00%)^(1/365)} x {1-(0.74%/365)} ] ^ 365) - 1, 4} annual net interest rate = ROUND{([ {(1.06)^(1/365)} x {1-0.00002027} ] ^ 365) - 1, 4} annual net interest rate = ROUND{([ 1.00015965 x 0.99997973 ] ^ 365) - 1, 4} annual net interest rate = ROUND{(1.00013938 ^ 365) - 1, 4} annual net interest rate = ROUND{(1.05218487 - 1, 4} annual net interest rate = ROUND{0.05218487, 4} annual net interest rate = 0.0522
which expressed as a percentage is 5.22%. To calculate the net investment earnings for the month, we calculate the product of the cash value at the time the net investment earnings is calculated and the monthly net interest rate. The cash value at the time the net investment earnings is calculated is: cash value = BOM CV + Gross Premium Paid - Premium Load - Asset Charge - Admin Charge - Rider Charge - COI Charge
The monthly net interest rate is not simply 1/12th of the annual net interest rate, but rather we use a compound formula to solve: monthly net interest rate = [(1 + annual net interest rate) ^ (1/12)] - 1 monthly net interest rate = [(1 + 0.0522) ^ (1/12)] - 1 monthly net interest rate = [1.0522 ^ (1/12)] - 1 monthly net interest rate = 1.0042493 - 1 monthly net interest rate = 0.0042493
For example, in year 5 month 1, we have the following: cash value = BOM CV + Gross Premium Paid - Premium Load - Asset Charge - Admin Charge - Rider Charge - COI Charge cash value = 6,783.92 + 2,500.00 - 137.50 - 2.80 - 61.73 - 0.00 - 17.99 cash value = 9,063.91 net investment earnings = cash value x monthly net interest rate net investment earnings = 9,063.91 x 0.0042493 net investment earnings = 38.51
END OF MONTH CASH VALUE The end of month cash value (EOM CV) is simply: EOM CV = BOM CV + Gross Premium Paid - Premium Load - Asset Charge - Admin Charge - Rider Charge - COI Charge + Net Investment Earnings
In year 5 month 1, we have: EOM CV = BOM CV + Gross Premium Paid - Premium Load - Asset Charge - Admin Charge - Rider Charge - COI Charge + Net Investment Earnings EOM CV = 6,783.92 + 2,500.00 - 137.50 - 2.80 - 61.73 - 0.00 - 17.99 + 38.51 EOM CV = 9,102.42
SURRENDER CHARGE The surrender charge is defined as a per thousand of base face amount charge applied to the base policy on new issues, and to any increase in face amount. The per thousand rates (which are used to calculate the charge) vary by segment issue age, sex, and underwriting class. Using the assumptions from above, the surrender charge per thousand rates are as follows:
M 35 PREFERRED NONSMOKER END OF YR PER 1000 RATE 1 14.0014 2 14.0014 3 14.0014 4 12.1345 5 10.2677 6 9.3343 7 8.4008 8 6.5340 9 3.2670 10 0.0000
The surrender charge is level for the first year and after the first year, grades down linearly on a monthly basis to the rate at the end of the following year. For example, in year 5 month 1, we have the following: base face amount = 375,000.00 year 4 month 12 per thousand rate = 12.1345 year 5 month 12 per thousand rate = 10.2677 N1 = # of months from year 4 month 12 until year 5 month 1 = 1 N2 = # of months from year 4 month 12 until year 5 month 12 = 12 surrender charge = [year 4 month 12 per thousand rate x (1 - N1/N2) + year 5 month 12 per thousand rate x (N1/N2)] x base face amount / 1000 surrender charge = [12.1345 x (1 - 1/12) + 10.2677 x 1/12] x 375,000.00 / 1000 surrender charge = [12.1345 x (1 - 0.08333333) + 10.2677 x 0.08333333] x 375,000.00 / 1000 surrender charge = [12.1345 x 0.91666667 + 10.2677 x 0.08333333] x 375,000.00 / 1000 surrender charge = [11.12329167 + 0.85564167] x 375.00 surrender charge = 11.97893333 x 375.00 surrender charge = 4,492.10
OUTSTANDING LOAN BALANCE The outstanding loan balance represents the amount of cash value loaned, including loan charged interest as described in the Periodic Fees table. This illustration assumes no loans have been taken; the outstanding loan balance is therefore 0.00. END OF MONTH CASH SURRENDER VALUE The end of month cash surrender value (EOM CSV) is the end of month cash value net of surrender charge and outstanding loan balance. That is: EOM CSV = EOM CV - surrender charge - outstanding loan balance In year 5 month 1, we have: EOM CSV = EOM CV - surrender charge - outstanding loan balance EOM CSV = 9,102.42 - 4,492.10 - 0.00 EOM CSV = 4,610.32 END OF MONTH DEATH BENEFIT The end of month death benefit (EOM DB) is calculated based upon the DB option. The DB options are as follows: level DB option, guideline premium test: DB = Max (face amount , cash value x IRS Corridor Factor) increasing DB option, guideline premium test: DB = Max (face amount + cash value (floored at 0), cash value x IRS Corridor Factor) mixed DB option, guideline premium test: DB = increasing DB option, guideline premium test until attained age 65, level DB option, guideline premium test thereafter level DB option, cash value accumulation test: DB = Max (face amount , cash value x NSP Corridor Factor) increasing DB option, cash value accumulation test: DB = Max (face amount + cash value (floored at 0), cash value x NSP Corridor Factor) mixed DB option, cash value accumulation test: DB = increasing DB option, cash value accumulation test until attained age 65,
The face amount is the same as that used to calculate the NAR in the COI charge. If the Convertible Supplemental Coverage Term Rider is present, the face amount attributable to that rider is added to the DB. The DB is actually the gross DB, before the reduction of any outstanding loan balance. The EOM DB is therefore: EOM DB = DB - outstanding loan balance In year 5 month 1, we have: level DB option, guideline premium test face amount = 375,000.00 cash value = EOM CV = 9,102.42 IRS Corridor Factor = 2.50 DB = Max (face amount, cash value x IRS Corridor Factor) DB = Max (375,000.00, 9,102.42 x 2.50) DB = Max (375,000.00, 22,756.04) DB = 375,000.00
EOM DB = DB - outstanding loan balance EOM DB = 375,000.00 - 0.00 EOM DB = 375,000.00
EX-99.N 6 d22797dex99n.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. 8/Amendment No. 76 to Registration Statement File Nos. 333-147508/811-06025 on Form N-6 of our report dated March 25, 2016, 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 24, 2016, 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 14, 2016 EX-99.R 7 d22797dex99r.txt POWERS OF ATTORNEY 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 Michele H. Abate, Christine M. DeBiase, Andrew L. 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: . 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-________) . 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-________) . 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) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . 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 . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . 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 10th day of September, 2015. /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 Michele H. Abate, Christine M. DeBiase, Andrew L. 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: . 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-________) . 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-________) . 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) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . 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 . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . 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 22nd day of September, 2015. /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 Michele H. Abate, Christine M. DeBiase, Andrew L. 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: . 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-________) . 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-________) . 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) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . 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 . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . 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 22nd day of September, 2015. /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 Michele H. Abate, Christine M. DeBiase, Andrew L. 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: . 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-________) . 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-________) . 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) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . 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 . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . 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 22nd day of September, 2015. /s/ R. Glenn Hubbard ---------------------------------- R. Glenn Hubbard 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 Michele H. Abate, Christine M. DeBiase, Andrew L. 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: . 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-________) . 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-________) . 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) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . 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 . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . 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 22/nd/ day of September, 2015. /s/ Alfred F. Kelly, Jr. ---------------------------------- Alfred F. Kelly, Jr. 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 Michele H. Abate, Christine M. DeBiase, Andrew L. 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: . 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-________) . 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-________) . 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) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . 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 . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . 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 22nd day of September, 2015. /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 Michele H. Abate, Christine M. DeBiase, Andrew L. 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: . 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-________) . 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-________) . 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) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . 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 . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . 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 22nd day of September, 2015. /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 Michele H. Abate, Christine M. DeBiase, Andrew L. 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: . 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-________) . 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-________) . 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) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . 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 . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . 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 22nd day of September, 2015. /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 Michele H. Abate, Christine M. DeBiase, Andrew L. 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: . 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-________) . 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-________) . 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) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . 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 . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . 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 22nd day of September, 2015. /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 Michele H. Abate, Christine M. DeBiase, Andrew L. 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: . 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-________) . 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-________) . 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) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . 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 . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . 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 22nd day of September, 2015. /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 Michele H. Abate, Christine M. DeBiase, Andrew L. 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: . 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-________) . 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-________) . 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) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . 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 . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . 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 22nd day of September, 2015. /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 Michele H. Abate, Christine M. DeBiase, Andrew L. 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: . 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-________) . 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-________) . 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) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . 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 . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . 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 10th day of September, 2015. /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 Michele H. Abate, Christine M. DeBiase, Andrew L. 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: . 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-________) . 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-________) . 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) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . 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 . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . 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 9th day of September, 2015. /s/ Peter M. Carlson ---------------------------------- Peter M. Carlson