0001193125-18-119709.txt : 20180417
0001193125-18-119709.hdr.sgml : 20180417
20180417150933
ACCESSION NUMBER: 0001193125-18-119709
CONFORMED SUBMISSION TYPE: 485BPOS
PUBLIC DOCUMENT COUNT: 2
FILED AS OF DATE: 20180417
DATE AS OF CHANGE: 20180417
EFFECTIVENESS DATE: 20180430
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: 333-40161
FILM NUMBER: 18758784
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: 18758785
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
C000011873
Equity Options (Equity Additions and Equity Enricher)
485BPOS
1
d504791d485bpos.txt
THE EQUITY OPTIONS POST-EFFECTIVE AMENDMENT NO. 22
AS FILED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION ON APRIL 17, 2018
REGISTRATION NOS. 333-40161
811-06025
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-6
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 22 [X]
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 87 [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
STEPHEN W. GAUSTER, ESQ.
Senior Vice President and Interim General Counsel
Metropolitan Life Insurance Company
200 Park Avenue
New York, NY 10166
(Name and address of agent for service)
COPY TO:
W. THOMAS CONNER
Vedder Price P.C.
1633 Broadway, 31st Floor
New York, New York 10019
Approximate Date of Proposed Public Offering: on April 30, 2018 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 April 30, 2018 pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[ ] on (date) pursuant to paragraph (a)(1) of Rule 485
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment
Title of Securities Being Registered: Interests in Metropolitan Life Separate
Account UL, which funds certain Variable Additional Insurance Options.
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NOTE:
This registration statement incorporates by reference the prospectuses and
supplements dated May 1, 2017, May 1, 2016, May 1, 2015, April 28, 2014, April
29, 2013, April 30, 2012, May 1, 2011, May 1, 2010, May 1, 2009, and April 28,
2008 for the policies, each as filed in Post-Effective Amendment No. 20 filed
on April 14, 2016, Post-Effective Amendment No. 19 filed on April 15, 2015,
Post-Effective Amendment No. 18 filed on April 11, 2014, Post-Effective
Amendment No. 17 filed on April 11, 2013, Post-Effective Amendment No. 16 filed
on April 12, 2012, Post-Effective Amendment No. 15 filed on April 14, 2011,
Post-Effective Amendment No. 14 filed on April 16, 2010, Post- Effective
Amendment No. 13 filed on April 16, 2009, Post-Effective Amendment No. 12 filed
on April 18, 2008, respectively, to the Registration Statement on Form N-6
(File No. 333-40161).
METROPOLITAN LIFE INSURANCE COMPANY ("METLIFE")
THE EQUITY OPTIONS
EQUITY ADDITIONS (ALSO KNOWN AS VARIABLE ADDITIONAL INSURANCE DIVIDEND OPTION)
EQUITY ENRICHER (ALSO KNOWN AS VARIABLE ADDITIONAL BENEFITS RIDER)
SUPPLEMENT DATED APRIL 30, 2018 TO
Prospectus Dated April 28, 2008
This supplement updates certain information contained in your last prospectus
and subsequent supplements. You should read and retain this supplement with
your Policy. We will send you an additional copy of your most recent prospectus
(and any previous supplements thereto), without charge, on written request sent
to MetLife, P.O. Box 543, Warwick, RI 02887-0543. Equity Options policies and
riders ARE NO LONGER AVAILABLE FOR SALE.
You allocate net premiums to and may transfer cash value among the available
Divisions (Divisions may be referred to as "Investment Divisions" in your
Policy and marketing materials) of Metropolitan Life Separate Account UL. Each
available Division, in turn, invests in the shares of one of the following
Portfolios:
BRIGHTHOUSE FUNDS TRUST I (CLASS A)
Morgan Stanley Mid Cap Growth Portfolio*
BRIGHTHOUSE FUNDS TRUST II (CLASS A)
MetLife Stock Index Portfolio
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* This Portfolio is not available for Equity Additions.
The prospectuses for the Portfolios describe in greater detail an investment in
the Portfolios listed above. YOU CAN OBTAIN PROSPECTUSES FOR THE PORTFOLIOS BY
CALLING 1-800-638-5000.
1
SENDING COMMUNICATIONS AND PAYMENTS TO US
You can communicate all of your requests, instructions and notifications to us
by contacting us in writing at our Designated Office. We may require that
certain requests, instructions and notifications be made on forms that we
provide. These include: changing your beneficiary; taking a Policy loan; taking
a partial withdrawal; surrendering your Policy; making transfer requests or
changing your premium allocations. As of the date of this prospectus, requests
for partial withdrawals and Policy loans must be in writing. However, you
should contact us at 1-800-MET-5000 for our current procedures. Below is a list
of our Designated Offices for various functions. We may name additional or
alternate Designated Offices. If we do, we will notify you in writing. You may
also contact us at 1-800-MET-5000 for information on where to direct
communication regarding any function not listed below or for any other inquiry.
FUNCTION DESIGNATED OFFICE ADDRESS
Premium Payments MetLife, P.O. Box 371487, Pittsburgh, PA
15250-7487
Payment Inquiries MetLife, P.O. Box 354, Warwick, RI 02887-0354
Surrenders, Withdrawals, Loans, Investment MetLife, P.O. Box 543, Warwick, RI 02887-0543
Division Transfers, Premium Reallocation
Death Claims MetLife, P.O. Box 353, Warwick, RI 02887-0353
Beneficiary & Ownership MetLife, P.O. Box 313, Warwick, RI 02887-0313
Address Changes MetLife, 500 Schoolhouse Road, Johnstown, PA
15904
Attn: Data Integrity
If you send your premium payments or transaction requests to an address other
than the one we have designated for receipt of such premium 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.
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 Owners'
requests and elections and day-to-day record keeping, are all executed through
computer networks and systems.
We have established administrative and technical controls and a business
continuity plan to protect our operations against cybersecurity breaches.
Despite these protocols, a cybersecurity breach could have a material, negative
impact on MetLife and the Separate Account, as well as individual Owners and
their Policies. Our operations also could be negatively affected by a
cybersecurity breach at a third party, such as a governmental or regulatory
authority or another participant in the financial markets.
Cybersecurity breaches can be intentional or unintentional events, and can
occur through unauthorized access to computer systems, networks or devices;
infection from computer viruses or other malicious software code; or attacks
that shut down, disable, slow or otherwise disrupt operations, business
processes or website access or functionality. Cybersecurity breaches can
interfere with our processing of Policy transactions, including the processing
of transfer orders from our website or with the Funds; impact our ability to
calculate unit values; cause the release and possible destruction of
confidential 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.
2
FEE TABLES
The following tables describe the fees and expenses that the Portfolios will
pay and that therefore a Policy Owner will indirectly pay periodically during
the time that he or she owns an Equity Option. The first table shows the lowest
and highest fees and expenses charged by the Portfolio(s) offered with Equity
Additions and Equity Enricher for the fiscal year ended December 31, 2017. The
next table describes the annual operating expenses for each Portfolio for the
year ended December 31, 2017, as a percentage of the Portfolio's average daily
net assets for the year, before and after any fee waivers and expense
reimbursements. More detail concerning each Portfolio's fees and expenses is
contained in the table that follows this table and in the prospectuses for the
Portfolios.
LOWEST AND HIGHEST TOTAL ANNUAL PORTFOLIO OPERATING EXPENSES
LOWEST HIGHEST
EQUITY ADDITIONS
Total Annual Portfolio Operating Expenses
(expenses that are deducted from Portfolio assets, including management
fees and other expenses) .27% .27%
EQUITY ENRICHER
Total Annual Portfolio Operating Expenses
(expenses that are deducted from Portfolio assets, including management
fees and other expenses) .27% .70%
TOTAL ANNUAL PORTFOLIO OPERATING EXPENSES
TOTAL NET TOTAL
ANNUAL FEE WAIVER ANNUAL
MANAGEMENT OTHER OPERATING AND/OR EXPENSE OPERATING
PORTFOLIO FEE EXPENSES EXPENSES REIMBURSEMENT EXPENSES
BRIGHTHOUSE FUNDS TRUST I -- CLASS A
Morgan Stanley Mid Cap Growth Portfolio1 0.65% 0.05% 0.70% 0.01% 0.69%
BRIGHTHOUSE FUNDS TRUST II -- CLASS A
MetLife Stock Index Portfolio 0.25% 0.02% 0.27% 0.01% 0.26%
1 This Portfolio is not available for Equity Additions.
The information shown in the table above was provided by the Portfolios.
Certain Portfolios and their investment adviser have entered into expense
reimbursement and/or fee waiver arrangements that will continue from May 1,
2018 through at least April 30, 2019. These arrangements can be terminated with
respect to a Portfolio only with the approval of the board of directors or
trustees of that Portfolio. Please see the Portfolios' prospectuses for
additional information regarding these arrangements.
3
THE PORTFOLIOS
MANAGEMENT OF THE PORTFOLIOS
Brighthouse Investment Advisers, LLC is the investment adviser who is
responsible for overall management of Brighthouse Funds Trust I and Brighthouse
Funds Trust II. Brighthouse Investment Advisers, LLC has contracted with
sub-advisers to make day-to-day investment decisions for the Portfolios. The
sub-advisers and the investment objective of each Portfolio are as follows:
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER
BRIGHTHOUSE FUNDS TRUST I -- CLASS A
Morgan Stanley Mid Cap Growth Portfolio Seeks capital appreciation. Brighthouse Investment
Advisers, LLC
Subadviser: Morgan Stanley
Investment Management Inc.
BRIGHTHOUSE FUNDS TRUST II -- CLASS A
MetLife Stock Index Portfolio Seeks to track the performance of Brighthouse Investment
the Standard & Poor's 500(R) Advisers, LLC
Composite Stock Price Index. Subadviser: MetLife Investment
Advisors, LLC
On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse
Financial, Inc. and its subsidiaries ("Brighthouse") where MetLife, Inc.
retained an ownership interest of 19.2% non-voting common stock outstanding of
Brighthouse Financial, Inc. Brighthouse subsidiaries include Brighthouse
Investment Advisers, LLC, which serves as the investment adviser for the
Brighthouse Funds Trust I and Brighthouse Funds Trust II. We and Our affiliated
companies have entered into agreements with Brighthouse Investment Advisers,
LLC, Brighthouse Funds Trust I and Brighthouse Funds Trust II whereby We
receive payments for certain administrative, marketing and support services
described in the previous paragraphs. Currently, the Portfolios in Brighthouse
Funds Trust I and Brighthouse Funds Trust II are only available in variable
annuity contracts and variable life insurance policies issued by Metropolitan
Life Insurance Company and its affiliates, as well as Brighthouse Life
Insurance Company and its affiliates. As of December 31, 2017, approximately
85% of Portfolio assets held in Separate Accounts of Metropolitan Life
Insurance Company and its affiliates were allocated to Portfolios in
Brighthouse Funds Trust I and Brighthouse Funds Trust II. Should We or
Brighthouse Investment Advisers, LLC decide to terminate the agreements, we
would be required to find alternative Portfolios which could have higher or
lower costs to the Contract Owner. In addition, the amount of payments We
receive could cease or be substantially reduced which may have a material
impact on Our financial statements.
FEDERAL TAX MATTERS
The following is a brief summary of some tax rules that may apply to your
Policy. It does not purport to be complete or cover every situation. The
summary does not address state, local or foreign tax issues related to your
Policy. Because individual circumstances vary, you should consult with your own
tax adviser to find out how taxes can affect your benefits and rights under
your Policy, especially before you make unscheduled premium payments, change
your specified face amount, change your death benefit option, change coverage
provided by riders, take a loan or withdrawal, or assign or surrender the
Policy. Under current federal income tax law, the taxable portion of
distributions from variable life contracts is taxed at ordinary income tax
rates and does not qualify for the reduced tax rate applicable to long-term
capital gains and dividends.
INSURANCE PROCEEDS
o Insurance proceeds are generally excludable from your beneficiary's gross
income to the extent provided in Section 101 of the Internal Revenue Code
("Code").
o In the case of employer-owned life insurance as defined in Section 101(j) of
the Code, the amount of the death benefit excludable from gross income is
limited to premiums paid unless the Policy falls
4
within certain specified exceptions and a notice and consent requirement is
satisfied before the Policy is issued. Certain specified exceptions are
based on the status of an employee as highly compensated, a director, or
recently employed. There are also exceptions for Policy proceeds paid to an
employee's heirs. These exceptions only apply if proper notice is given to
the insured employee and consent is received from the insured employee
before the issuance of the Policy. These rules apply to Policies issued
August 18, 2006 and later and also apply to Policies issued before August
18, 2006 after a material increase in the death benefit or other material
change. An IRS reporting requirement applies to employer-owned life
insurance subject to these rules. Because these rules are complex and will
affect the tax treatment of death benefits, it is advisable to consult tax
counsel. The death benefit will also be taxable in the case of a
transfer-for-value unless certain exceptions apply.
o The death proceeds may be subject to federal estate tax: (i) if paid to the
insured's estate or (ii) if paid to a different beneficiary if the insured
possessed incidents of ownership at or within three years before death.
o If you die before the insured, the value of your Policy (determined under IRS
rules) is included in your estate and may be subject to federal estate tax.
o Whether or not any federal estate tax is due is based on a number of factors
including the estate size. Please consult your tax adviser for the
applicable estate tax rates.
o The insurance proceeds payable upon death of the insured will never be less
than the minimum amount required for the Policy to be treated as life
insurance under Section 7702 of the Code, as in effect on the date the
Policy was issued. The rules with respect to Policies issued on a
substandard risk basis are not entirely clear.
CASH VALUE (IF YOUR POLICY IS NOT A MODIFIED ENDOWMENT CONTRACT)
o You are generally not taxed on your cash value (except with respect to the
DWI option) until you withdraw it or surrender your Policy or receive a
distribution (such as when your Policy terminates on the Final Date). In
these cases, you are generally permitted to take withdrawals and receive
other distributions up to the amount of premiums paid without any tax
consequences. However, withdrawals and other distributions will be treated
as gain subject to ordinary income tax after you have received amounts equal
to the total premiums you paid. Somewhat different rules apply in the first
15 Policy years. Distributions during the first 15 Policy years accompanied
by a reduction in Policy benefits, including distributions which must be
made in order to enable the Policy to continue to qualify as a life
insurance contract for federal income tax purposes, are subject to different
tax rules and may be treated in whole or in part as taxable income.
o There may be an indirect tax upon the income in the Policy or the proceeds of
a Policy under the Federal corporate alternative minimum tax, if you are
subject to that tax.
o For income tax purposes, if you surrender an Equity Option for its cash value
but the base Policy remains in force, you will be considered to have made a
partial withdrawal.
o Amounts applied to the DWI option are treated as distributions from the
Policy and interest credited on amounts applied to the DWI option is
currently taxable as ordinary income.
SPLIT-DOLLAR INSURANCE 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
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.
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
5
interpreted to apply to certain split-dollar life insurance arrangements for
directors and executive officers of such companies, since at least some such
arrangements can arguably be viewed as involving a loan from the employer for
at least some purposes.
Any affected business contemplating the payment of a premium on an existing
Policy or the purchase of a new Policy in connection with a split-dollar life
insurance arrangement should consult legal counsel.
LOANS
o Loan amounts you receive will generally not be subject to income tax, unless
your Policy is or becomes a modified endowment contract, is exchanged or
terminates. Loans from or secured by a Policy that is not classified as a
modified endowment contract should not generally be treated as a taxable
distribution so long as the Policy stays in force.
o Interest on loans is generally not deductible. For businesses that own a
Policy, at least part of the interest deduction unrelated to the Policy may
be disallowed unless the insured is a 20% owner, officer, director or
employee of the business.
o If your Policy terminates (upon surrender, cancellation lapse or, in most
cases, exchange) while any Policy loan is outstanding, the amount of the
loan plus accrued interest thereon will be deemed to be a "distribution" to
you. Any such distribution will have the same tax consequences as any other
Policy distribution. In the case of an outstanding loan at the time of an
exchange, the cancelled loan will generally be taxed to the extent of any
policy gain. Since amounts borrowed reduce the cash value that will be
distributed to you if the Policy is surrendered, cancelled or lapses, any
cash value distributed to you in these circumstances may be insufficient to
pay the income tax on any gain.
o The tax consequences of loans outstanding after the 15th Policy year are
uncertain.
o A loan that is taken from, or secured by, a Policy may have tax consequences.
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
so long as the Policy stays in force. 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.
MODIFIED ENDOWMENT CONTRACTS
These contracts are life insurance policies where the premiums paid during the
first 7 years after the Policy is issued, or after a material change in the
Policy, exceeds tax law limits referred to as the "7-pay test." Material
changes in the Policy include changes in the level of benefits, receipt of an
unnecessary premium and certain other changes to your Policy after the issue
date. 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. Reductions in
benefits during a 7-pay testing period also may cause your Policy to become a
modified endowment contract. Generally, a life insurance policy that is
received in exchange for a modified endowment contract will also be considered
a modified endowment contract. The IRS has promulgated a procedure for the
correction of inadvertent modified endowment contracts that may provide relief
in limited circumstances.
Due to the flexibility of the Policies as to premiums and benefits, the
individual circumstances of each Policy will determine whether it is classified
as a modified endowment contract.
If your Policy is considered a modified endowment contract the following
applies:
o The death benefit will still generally be income tax free to your
beneficiary, to the extent discussed above.
o Amounts withdrawn or distributed before the insured's death, including
(without limitation) loans taken from or secured by the Policy, assignments
and pledges, are (to the extent of any gain in your
6
Policy) treated as income first and subject to income tax. All modified
endowment contracts you purchase from us and our affiliates during the same
calendar year are treated as a single contract for purposes of determining
the amount of any such income.
o An additional 10% income tax generally applies to the taxable portion of the
amounts you receive before age 59 1/2 except if you are disabled or if the
distribution is part of a series of substantially equal periodic payments
for your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your beneficiary. The foregoing exceptions to the
10% additional tax generally do not apply to a Policy Owner that is a
non-natural person, such as a corporation.
o If a Policy becomes a modified endowment contract, distributions that occur
during the Policy year will be taxed as distributions from a modified
endowment contract. In addition, distributions from a Policy within two
years before it becomes a modified endowment contract will be taxed in this
manner. This means that a distribution made from a Policy that is not a
modified endowment contract could later become taxable as a distribution
from a modified endowment contract.
DIVERSIFICATION
In order for your Policy to qualify as life insurance, we must comply with
certain diversification standards with respect to the investments underlying
the Policy. We believe that we satisfy and will continue to satisfy these
diversification standards. Inadvertent failure to meet these standards may be
able to be corrected. Failure to meet these standards would result in immediate
taxation to Policy Owners of gains under their Policy. If Portfolio shares are
sold directly to tax-qualified retirement plans that later lose their
tax-qualified status, or to non-qualified plans, there could be adverse
consequences under the diversification rules.
INVESTOR CONTROL
In some circumstances, Owners of variable policies who retain excessive control
over the investment of the underlying Separate Account assets may be treated as
the Owners of those assets and may be subject to tax on income produced by
those assets.The Equity Options are supported by assets held in our Separate
Account. Although published guidance in this area does not address certain
aspects of the Policies, we believe that the Owner of a Policy should not be
treated as an owner of the assets in our Separate Account. We reserve the right
to modify the Policies to bring them into conformity with applicable standards
should such modification be necessary to prevent Owners of the Policies from
being treated as the owners of the underlying Separate Account assets.
ESTATE, GIFT AND GENERATION-SKIPPING TRANSFER TAXES
The transfer of the Policy or the designation of a Beneficiary may have
Federal, state, and/or local transfer and inheritance tax consequences,
including the imposition of gift, estate, and generation-skipping transfer
taxes. When the insured dies, the death proceeds will generally be includable
in the Policy Owner's estate for purposes of the Federal estate tax if the
Policy Owner was the insured, if the insured possessed incidents of ownership
in the Policy at the time of death, or 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 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 Code
may require us to deduct the tax from your Policy, or from any applicable
payment, and pay it directly to the IRS.
Qualified tax advisers should be consulted concerning the estate and gift tax
consequences of Policy ownership and distributions under Federal, state and
local law. The individual situation of each Policy Owner or beneficiary will
determine the extent, if any, to which Federal, state, and local transfer and
inheritance taxes may be imposed and how ownership or receipt of Policy
proceeds will be treated for purposes of Federal, state and local estate,
inheritance, generation-skipping transfer and other taxes.
7
In general, current rules for a $10 million federal estate, gift and
generation-skipping transfer tax exemption (as indexed for inflation) and a top
tax rate of 40 percent through the year 2025.
The complexity of the tax law, along with uncertainty as to how it might be
modified in coming years, underscores the importance of seeking guidance from a
qualified adviser to help ensure that your estate plan adequately addresses
your needs and those of your beneficiaries under all possible scenarios.
WITHHOLDING
To the extent that Policy distributions are taxable, they are generally subject
to withholding for the recipient's Federal income tax liability. Recipients can
generally elect however, not to have tax withheld from distributions.
LIFE INSURANCE PURCHASES BY RESIDENTS OF PUERTO RICO
In Rev. Rul. 2004-75, 2004-31 I.R.B. 109, the IRS announced that income
received by residents of Puerto Rico under life insurance contracts issued by a
Puerto Rico branch of a United States life insurance company is U.S. source
income that is generally subject to United States Federal income tax.
LIFE INSURANCE PURCHASES BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS
Purchasers 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,
purchasers may be subject to state and/or municipal taxes and taxes that may be
imposed by the purchaser's country of citizenship or residence. Prospective
purchasers that are not U.S. citizens or residents are advised to consult with
a qualified tax adviser regarding U.S. and foreign taxation with respect to a
Policy purchase.
BUSINESS USES OF POLICY
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. As noted, in the
case of a business owned Policy, the provisions of Section 101(j) of the Code
may limit the amount of the death benefit excludable from gross income unless a
specified exception applies and a notice and consent requirement is satisfied,
as discussed above. If you are contemplating a change to an existing Policy or
purchasing a Policy for any arrangement the value of which depends in part on
its tax consequences, you should consult a qualified tax adviser.
CHANGES TO TAX RULES AND INTERPRETATIONS
Changes in applicable tax laws, rules and interpretations can adversely affect
the tax treatment of your Policy. These changes may take effect retroactively.
We reserve the right to amend the Policy in any way necessary to avoid any
adverse tax treatment. Examples of changes that could create adverse tax
consequences include:
o Possible taxation of cash value transfers ;
o Possible taxation as if you were the owner of your allocable portion of the
Separate Account's assets;
o Possible changes in the tax treatment of Policy benefits and rights.
8
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.
THE COMPANY'S INCOME TAXES
Under current federal income tax law we are not taxed on the Separate Account's
operations. Thus, currently we do not deduct a charge from the Separate Account
for company federal income taxes. (We do deduct a charge for federal taxes from
premiums.) We reserve the right to charge the Separate Account for any future
federal income taxes we may incur. Under current laws we may incur state and
local taxes (in addition to premium taxes). These taxes are not now significant
and we are not currently charging for them. If they increase, we may deduct
charges for such taxes.
OTHER INFORMATION
The Financial Industry Regulatory Authority ("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.
FINANCIAL STATEMENTS
You can find the financial statements of the Separate Account and the financial
statements of Metropolitan Life Insurance Company in the Statement of
Additional Information. You may obtain a copy of the Statement of Additional
Information, without charge, by e-mailing us at rcg@metlife.com or by calling
800-MET-5000. Our financial statements should be considered only as bearing
upon our ability to meet our obligations under the Policy.
9
EQUITY OPTIONS
EQUITY ADDITIONS (VARIABLE ADDITIONAL INSURANCE DIVIDEND OPTION)
EQUITY ENRICHER (VARIABLE ADDITIONAL BENEFITS RIDER)
METROPOLITAN LIFE SEPARATE ACCOUNT UL
ISSUED BY METROPOLITAN LIFE INSURANCE COMPANY
STATEMENT OF ADDITIONAL INFORMATION
(PART B)
APRIL 30, 2018
This Statement of Additional Information is not a prospectus. This
Statement of Additional Information relates to the prospectus dated April 28,
2008, as supplemented, and should be read in conjunction therewith. A copy of
the prospectus for Equity Options may be obtained by writing to MetLife, P.O.
Box 543, Warwick, RI 02887-0543. YOU MAY OBTAIN PROSPECTUSES FOR THE PORTFOLIOS
BY CALLING 1-800-638-5000.
1
TABLE OF CONTENTS
PAGE
-----
THE COMPANY AND THE SEPARATE ACCOUNT................................ 3
DISTRIBUTION OF THE POLICIES THAT INCLUDE THE EQUITY OPTIONS........ 3
COMMISSIONS......................................................... 3
INCOME PLANS........................................................ 3
POTENTIAL CONFLICTS OF INTEREST..................................... 4
LIMITS TO METLIFE'S RIGHT TO CHALLENGE THE POLICY................... 4
MISSTATEMENT OF AGE OR SEX.......................................... 4
REPORTS............................................................. 4
PERFORMANCE DATA.................................................... 5
PERSONALIZED ILLUSTRATIONS.......................................... 5
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM....................... 6
FINANCIAL STATEMENTS................................................ 6
2
THE COMPANY AND THE SEPARATE ACCOUNT
Metropolitan Life Insurance Company is a provider of insurance, annuities,
employee benefits and asset management. We are also one of the largest
institutional investors in the United States with a $270.2 billion general
account portfolio invested primarily in investment grade corporate bonds,
structured finance securities, mortgage loans and U.S. Treasury and agency
securities, as well as real estate and corporate equity, at December 31, 2017.
The Company was incorporated under the laws of New York in 1868. The Company's
office is located at 200 Park Avenue, New York, New York 10166-0188. The
Company is a wholly-owned subsidiary of MetLife, Inc.
We established the Separate Account under New York law on December 13,
1988. The Separate Account receives premium payments from the Equity Options
described in the Prospectus and other variable life insurance policies that we
issue. We have registered the Separate Account as a unit investment trust under
the Investment Company Act of 1940 (the "1940 Act").
For more information about MetLife, please visit our website at
www.metlife.com
DISTRIBUTION OF THE POLICIES THAT INCLUDE THE EQUITY OPTIONS
MetLife Investors Distribution Company ("MLIDC"), 200 Park Avenue, New
York, New York 10166, is the principal underwriter and distributor of the
Equity Options. MLIDC, which is our affiliate, is registered under the
Securities Exchange Act of 1934 (the "34 Act") as a broker-dealer and is a
member of the Financial Industry Regulatory Authority ("FINRA"). Beginning
January 1, 2009, new Equity Options are no longer sold.
COMMISSIONS
We do not pay commissions for the sale of the Equity Additions. MLIDC
received sales compensation with respect to the sale of Equity Enricher in the
following amounts:
AGGREGATE AMOUNT OF
AGGREGATE AMOUNT OF COMMISSIONS RETAINED
COMMISSIONS PAID TO BY DISTRIBUTOR AFTER
FISCAL YEAR DISTRIBUTOR PAYMENTS TO SELLING FIRMS
--------------- --------------------- --------------------------
2017.........$19,616 $0
2016.........$20,296 $0
2015.........$27,708 $0
INCOME PLANS
Generally, you can receive the Policy's insurance proceeds or amounts paid
upon surrender of your Policy or your Equity Option under an income plan
instead of in a lump sum. Before you choose an income plan you should consider:
o The tax consequences associated with the Policy proceeds, which can
vary considerably, depending on whether a plan is chosen. You or your
beneficiary should consult with a qualified tax adviser about tax
consequences.
3
o That your Policy or your Equity Option will terminate at the time you
commence an income plan and you will receive a new contract, which
describes the terms of the income plan. You should carefully review the
terms of the new contract, because it contains important information
about the terms and conditions of the income plan.
o The rates of return that we credit under these plans are not based on
the performance of any of the Portfolios. Generally, we currently make
the following income plans available:
o Interest Income
o Installment Income for a Stated Amount
o Joint and Survivor Life Income
o Installment Income for a Stated Period
o Single Life Income-Guaranteed Payment Period
o Single Life Income-Guaranteed Return
POTENTIAL CONFLICTS OF INTEREST
The Portfolio's 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 Division from the
Portfolio(s), 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.
LIMITS TO METLIFE'S RIGHT TO CHALLENGE THE POLICY
We will not contest your Policy after two Policy years from the base
Policy's issue or reinstatement (excluding riders added later). We will not
contest an increase in a death benefit after it has been in effect for two
years.
MISSTATEMENT OF AGE OR SEX
We will adjust benefits to reflect the correct age and sex of the insured,
if this information is not correct in the Policy application.
REPORTS
Generally, you will promptly receive statements confirming your
significant transactions such as:
o Transactions between an Equity Option and another part of the Policy.
o Transfers between Divisions.
4
o Partial withdrawals.
o Loan amounts you request.
o Premium payments.
If your premium payments are made through preauthorized checking
arrangement or another systematic payment method, we will not send you any
confirmation in addition to the one you receive from your bank or employer.
We will also send you an annual statement within 30 days after a Policy
year. The statement will summarize the year's transactions and include
information on:
o Deductions and charges.
o Status of the death benefit.
o Cash values.
o Amounts in the Divisions you are using.
o Status of Policy loans.
o Automatic loans to pay interest.
o Information on your modified endowment contract status (if applicable).
We will also send you a Fund's annual and semi-annual reports to
shareholders.
PERFORMANCE DATA
We may provide information concerning the historical investment experience
of the 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. Cost of insurance, sales, premium tax, and mortality and expense
risk charges, which can significantly reduce the return to the Equity Options
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 Division.
PERSONALIZED ILLUSTRATIONS
We may provide personalized illustrations showing how the Equity Options
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 and cash value for the Equity Options 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
5
assumptions, such as face amount, premium payments, insured, underwriting
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 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 death benefit of the Policy.
Illustrations may also show values based on the historical performance of the
Divisions. We reserve the right to impose a $25 fee for each illustration that
you request in excess of one per year.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The financial statements and financial highlights comprising each of the
Divisions of Metropolitan Life Separate Account UL included in this Statement
of Additional Information, have been audited by Deloitte & Touche LLP, an
independent registered public accounting firm, as stated in their report
appearing herein. Such financial statements and financial highlights are
included in reliance upon the report of such firm given upon their authority as
experts in accounting and auditing.
The consolidated financial statements and related financial statement
schedules of Metropolitan Life Insurance Company and subsidiaries included in
this Statement of Additional Information, have been audited by Deloitte &
Touche LLP, an independent registered public accounting firm, as stated in
their report appearing herein. Such financial statements and financial
statement schedules are included in reliance upon the report of such firm given
upon their authority as experts in accounting and auditing.
The principal business address of Deloitte & Touche LLP is 30 Rockefeller
Plaza, New York, New York 10112-0015.
FINANCIAL STATEMENTS
The financial statements of the Separate Account and the financial
statements of Metropolitan Life Insurance Company are attached. Our financial
statements should be considered only as bearing upon our ability to meet our
obligations under the Policy.
6
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
OPINION ON THE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS
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
Divisions listed in Note 2.A as of December 31, 2017, the related statements of
operations and changes in net assets for the respective stated periods in the
three years then ended, the financial highlights in Note 8 for the respective
stated periods in the five years then ended, and the related notes. In our
opinion, the financial statements and financial highlights present fairly, in
all material respects, the financial position of each of the Divisions
constituting the Separate Account of the Company as of December 31, 2017, the
results of their operations and changes in 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.
BASIS FOR OPINION
These financial statements and financial highlights are the responsibility of
the Separate Account's management. Our responsibility is to express an opinion
on the Separate Account's financial statements and financial highlights based
on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to
be independent with respect to the Separate Account in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Separate
Account is not required to have, nor were we engaged to perform, an audit of
its internal control over financial reporting. As part of our audits we are
required to obtain an understanding of internal control over financial
reporting 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.
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements and financial highlights, whether due
to error or fraud, and performing procedures that respond to those risks. Such
procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements and financial highlights. Our
audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of
the financial statements and financial highlights. Our procedures included
confirmation of investments owned as of December 31, 2017, by correspondence
with the custodian or mutual fund companies. We believe that our audits provide
a reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP
Certified Public Accountants
Tampa, Florida
March 23, 2018
We have served as the Separate Account's auditor since 1990.
This page is intentionally left blank.
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2017
AMERICAN FUNDS
AB GLOBAL AB AMERICAN GLOBAL SMALL
THEMATIC GROWTH INTERMEDIATE BOND FUNDS BOND CAPITALIZATION
DIVISION DIVISION DIVISION DIVISION
--------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value........... $ 34,675 $ 76,308 $ 6,687,935 $ 75,338,619
Due from Metropolitan Life
Insurance Company................. -- -- -- 24
--------------------- -------------------- -------------------- --------------------
Total Assets................... 34,675 76,308 6,687,935 75,338,643
--------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company................. -- -- 1 --
--------------------- -------------------- -------------------- --------------------
Total Liabilities.............. -- -- 1 --
--------------------- -------------------- -------------------- --------------------
NET ASSETS............................. $ 34,675 $ 76,308 $ 6,687,934 $ 75,338,643
===================== ==================== ==================== ====================
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, 2017
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS
GROWTH GROWTH-INCOME HIGH-INCOME BOND INTERNATIONAL
DIVISION DIVISION DIVISION DIVISION
-------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 200,354,597 $ 120,442,660 $ 8,652 $ 653,285
Due from Metropolitan Life
Insurance Company........ 17 -- -- --
-------------------- -------------------- -------------------- --------------------
Total Assets.......... 200,354,614 120,442,660 8,652 653,285
-------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- -------------------- -------------------- --------------------
Total Liabilities..... -- -- -- --
-------------------- -------------------- -------------------- --------------------
NET ASSETS.................... $ 200,354,614 $ 120,442,660 $ 8,652 $ 653,285
==================== ==================== ==================== ====================
BHFTI ALLIANZ
AMERICAN FUNDS U.S. GLOBAL INVESTORS BHFTI AMERICAN
GOVERNMENT/AAA- BHFTI AB GLOBAL DYNAMIC FUNDS BALANCED
RATED SECURITIES DYNAMIC ALLOCATION MULTI-ASSET PLUS ALLOCATION
DIVISION DIVISION DIVISION DIVISION
-------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 54,697 $ 79,701 $ 6,566 $ 1,216,312
Due from Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- -------------------- -------------------- --------------------
Total Assets.......... 54,697 79,701 6,566 1,216,312
-------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- -------------------- -------------------- --------------------
Total Liabilities..... -- -- -- --
-------------------- -------------------- -------------------- --------------------
NET ASSETS.................... $ 54,697 $ 79,701 $ 6,566 $ 1,216,312
==================== ==================== ==================== ====================
BHFTI AMERICAN BHFTI AMERICAN
FUNDS GROWTH FUNDS MODERATE
ALLOCATION ALLOCATION
DIVISION DIVISION
-------------------- --------------------
ASSETS:
Investments at fair value.. $ 2,284,932 $ 1,445,306
Due from Metropolitan Life
Insurance Company........ -- --
-------------------- --------------------
Total Assets.......... 2,284,932 1,445,306
-------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- --
-------------------- --------------------
Total Liabilities..... -- --
-------------------- --------------------
NET ASSETS.................... $ 2,284,932 $ 1,445,306
==================== ====================
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, 2017
BHFTI BHFTI
AQR GLOBAL BLACKROCK GLOBAL BHFTI BRIGHTHOUSE BHFTI BRIGHTHOUSE
RISK BALANCED TACTICAL STRATEGIES ASSET ALLOCATION 100 BALANCED PLUS
DIVISION DIVISION DIVISION DIVISION
--------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 161,171 $ 423,672 $ 25,375,457 $ 397,746
Due from Metropolitan Life
Insurance Company........ -- -- 1 --
--------------------- -------------------- -------------------- --------------------
Total Assets.......... 161,171 423,672 25,375,458 397,746
--------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- --
--------------------- -------------------- -------------------- --------------------
Total Liabilities..... -- -- -- --
--------------------- -------------------- -------------------- --------------------
NET ASSETS.................... $ 161,171 $ 423,672 $ 25,375,458 $ 397,746
===================== ==================== ==================== ====================
BHFTI BRIGHTHOUSE/ BHFTI BRIGHTHOUSE/ BHFTI BRIGHTHOUSE/
BHFTI BRIGHTHOUSE ABERDEEN EMERGING TEMPLETON WELLINGTON
SMALL CAP VALUE MARKETS EQUITY INTERNATIONAL BOND LARGE CAP RESEARCH
DIVISION DIVISION DIVISION DIVISION
-------------------- -------------------- --------------------- --------------------
ASSETS:
Investments at fair value.. $ 786,268 $ 878,183 $ 251,705 $ 459,536,049
Due from Metropolitan Life
Insurance Company........ -- -- -- 12
-------------------- -------------------- --------------------- --------------------
Total Assets.......... 786,268 878,183 251,705 459,536,061
-------------------- -------------------- --------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- -------------------- --------------------- --------------------
Total Liabilities..... -- -- -- --
-------------------- -------------------- --------------------- --------------------
NET ASSETS.................... $ 786,268 $ 878,183 $ 251,705 $ 459,536,061
==================== ==================== ===================== ====================
BHFTI CLARION BHFTI CLEARBRIDGE
GLOBAL REAL ESTATE AGGRESSIVE GROWTH
DIVISION DIVISION
-------------------- --------------------
ASSETS:
Investments at fair value.. $ 30,031,022 $ 44,501,185
Due from Metropolitan Life
Insurance Company........ 1 --
-------------------- --------------------
Total Assets.......... 30,031,023 44,501,185
-------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- 1
-------------------- --------------------
Total Liabilities..... -- 1
-------------------- --------------------
NET ASSETS.................... $ 30,031,023 $ 44,501,184
==================== ====================
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, 2017
BHFTI HARRIS BHFTI INVESCO BHFTI JPMORGAN
OAKMARK BALANCED-RISK BHFTI INVESCO GLOBAL
INTERNATIONAL ALLOCATION SMALL CAP GROWTH ACTIVE ALLOCATION
DIVISION DIVISION DIVISION DIVISION
-------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 48,278,391 $ 64,239 $ 7,838,418 $ 250,960
Due from Metropolitan Life
Insurance Company........ 1 -- -- --
-------------------- -------------------- -------------------- --------------------
Total Assets.......... 48,278,392 64,239 7,838,418 250,960
-------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- -------------------- -------------------- --------------------
Total Liabilities..... -- -- -- --
-------------------- -------------------- -------------------- --------------------
NET ASSETS.................... $ 48,278,392 $ 64,239 $ 7,838,418 $ 250,960
==================== ==================== ==================== ====================
BHFTI BHFTI BHFTI
BHFTI JPMORGAN LOOMIS SAYLES METLIFE MULTI-INDEX MFS RESEARCH
SMALL CAP VALUE GLOBAL MARKETS TARGETED RISK INTERNATIONAL
DIVISION DIVISION DIVISION DIVISION
-------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 443,605 $ 449,303 $ 176,748 $ 20,729,355
Due from Metropolitan Life
Insurance Company........ -- -- -- 1
-------------------- -------------------- -------------------- --------------------
Total Assets.......... 443,605 449,303 176,748 20,729,356
-------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- -------------------- -------------------- --------------------
Total Liabilities..... -- -- -- --
-------------------- -------------------- -------------------- --------------------
NET ASSETS.................... $ 443,605 $ 449,303 $ 176,748 $ 20,729,356
==================== ==================== ==================== ====================
BHFTI
MORGAN STANLEY BHFTI OPPENHEIMER
MID CAP GROWTH GLOBAL EQUITY
DIVISION DIVISION
-------------------- --------------------
ASSETS:
Investments at fair value.. $ 247,719,328 $ 61,029,650
Due from Metropolitan Life
Insurance Company........ 84 28
-------------------- --------------------
Total Assets.......... 247,719,412 61,029,678
-------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- --
-------------------- --------------------
Total Liabilities..... -- --
-------------------- --------------------
NET ASSETS.................... $ 247,719,412 $ 61,029,678
==================== ====================
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, 2017
BHFTI BHFTI
PANAGORA GLOBAL PIMCO INFLATION BHFTI BHFTI SCHRODERS
DIVERSIFIED RISK PROTECTED BOND PIMCO TOTAL RETURN GLOBAL MULTI-ASSET
DIVISION DIVISION DIVISION DIVISION
-------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 328 $ 10,294,920 $ 43,336,899 $ 72,213
Due from Metropolitan Life
Insurance Company........ -- -- 1 --
-------------------- -------------------- -------------------- --------------------
Total Assets.......... 328 10,294,920 43,336,900 72,213
-------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- -------------------- -------------------- --------------------
Total Liabilities..... -- -- -- --
-------------------- -------------------- -------------------- --------------------
NET ASSETS.................... $ 328 $ 10,294,920 $ 43,336,900 $ 72,213
==================== ==================== ==================== ====================
BHFTI
BHFTI SCHRODERS SSGA GROWTH AND BHFTI BHFTI T. ROWE PRICE
GLOBAL MULTI-ASSET II INCOME ETF SSGA GROWTH ETF LARGE CAP VALUE
DIVISION DIVISION DIVISION DIVISION
--------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 14,281 $ 8,867,092 $ 8,014,231 $ 2,745,970
Due from Metropolitan Life
Insurance Company........ -- -- -- --
--------------------- -------------------- -------------------- --------------------
Total Assets.......... 14,281 8,867,092 8,014,231 2,745,970
--------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- --
--------------------- -------------------- -------------------- --------------------
Total Liabilities..... -- -- -- --
--------------------- -------------------- -------------------- --------------------
NET ASSETS.................... $ 14,281 $ 8,867,092 $ 8,014,231 $ 2,745,970
===================== ==================== ==================== ====================
BHFTI
BHFTI T. ROWE PRICE VICTORY SYCAMORE
MID CAP GROWTH MID CAP VALUE
DIVISION DIVISION
-------------------- --------------------
ASSETS:
Investments at fair value.. $ 41,886,462 $ 91,702,539
Due from Metropolitan Life
Insurance Company........ -- 43
-------------------- --------------------
Total Assets.......... 41,886,462 91,702,582
-------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- --
-------------------- --------------------
Total Liabilities..... -- --
-------------------- --------------------
NET ASSETS.................... $ 41,886,462 $ 91,702,582
==================== ====================
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, 2017
BHFTII BHFTII BLACKROCK
BAILLIE GIFFORD BHFTII BLACKROCK BHFTII BLACKROCK ULTRA-SHORT
INTERNATIONAL STOCK BOND INCOME CAPITAL APPRECIATION TERM BOND
DIVISION DIVISION DIVISION DIVISION
--------------------- -------------------- -------------------- ---------------------
ASSETS:
Investments at fair value.. $ 49,983,594 $ 77,942,299 $ 12,042,675 $ 27,545,528
Due from Metropolitan Life
Insurance Company........ 4 3 -- --
--------------------- -------------------- -------------------- ---------------------
Total Assets.......... 49,983,598 77,942,302 12,042,675 27,545,528
--------------------- -------------------- -------------------- ---------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- --
--------------------- -------------------- -------------------- ---------------------
Total Liabilities..... -- -- -- --
--------------------- -------------------- -------------------- ---------------------
NET ASSETS.................... $ 49,983,598 $ 77,942,302 $ 12,042,675 $ 27,545,528
===================== ==================== ==================== =====================
BHFTII BRIGHTHOUSE BHFTII BRIGHTHOUSE BHFTII BRIGHTHOUSE BHFTII BRIGHTHOUSE
ASSET ALLOCATION 20 ASSET ALLOCATION 40 ASSET ALLOCATION 60 ASSET ALLOCATION 80
DIVISION DIVISION DIVISION DIVISION
-------------------- --------------------- --------------------- ---------------------
ASSETS:
Investments at fair value.. $ 4,439,761 $ 11,333,587 $ 56,043,906 $ 108,508,808
Due from Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- --------------------- --------------------- ---------------------
Total Assets.......... 4,439,761 11,333,587 56,043,906 108,508,808
-------------------- --------------------- --------------------- ---------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- 1 1 1
-------------------- --------------------- --------------------- ---------------------
Total Liabilities..... -- 1 1 1
-------------------- --------------------- --------------------- ---------------------
NET ASSETS.................... $ 4,439,761 $ 11,333,586 $ 56,043,905 $ 108,508,807
==================== ===================== ===================== =====================
BHFTII
BRIGHTHOUSE/ARTISAN BHFTII BRIGHTHOUSE/
MID CAP VALUE WELLINGTON BALANCED
DIVISION DIVISION
-------------------- --------------------
ASSETS:
Investments at fair value.. $ 65,688,626 $ 324,356,062
Due from Metropolitan Life
Insurance Company........ -- 2
-------------------- --------------------
Total Assets.......... 65,688,626 324,356,064
-------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ 10 --
-------------------- --------------------
Total Liabilities..... 10 --
-------------------- --------------------
NET ASSETS.................... $ 65,688,616 $ 324,356,064
==================== ====================
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, 2017
BHFTII BRIGHTHOUSE/ BHFTII
WELLINGTON CORE BHFTII FRONTIER BHFTII LOOMIS SAYLES
EQUITY OPPORTUNITIES MID CAP GROWTH JENNISON GROWTH SMALL CAP CORE
DIVISION DIVISION DIVISION DIVISION
-------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 80,734,815 $ 257,694,582 $ 36,062,693 $ 27,323,851
Due from Metropolitan Life
Insurance Company........ -- -- -- 41
-------------------- -------------------- -------------------- --------------------
Total Assets.......... 80,734,815 257,694,582 36,062,693 27,323,892
-------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ 1 1 1 --
-------------------- -------------------- -------------------- --------------------
Total Liabilities..... 1 1 1 --
-------------------- -------------------- -------------------- --------------------
NET ASSETS.................... $ 80,734,814 $ 257,694,581 $ 36,062,692 $ 27,323,892
==================== ==================== ==================== ====================
BHFTII BHFTII
LOOMIS SAYLES METLIFE AGGREGATE BHFTII METLIFE BHFTII METLIFE
SMALL CAP GROWTH BOND INDEX MID CAP STOCK INDEX MSCI EAFE INDEX
DIVISION DIVISION DIVISION DIVISION
-------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 13,090,723 $ 135,065,115 $ 108,841,778 $ 92,302,765
Due from Metropolitan Life
Insurance Company........ -- -- 11 --
-------------------- -------------------- -------------------- --------------------
Total Assets.......... 13,090,723 135,065,115 108,841,789 92,302,765
-------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- 1 -- 5
-------------------- -------------------- -------------------- --------------------
Total Liabilities..... -- 1 -- 5
-------------------- -------------------- -------------------- --------------------
NET ASSETS.................... $ 13,090,723 $ 135,065,114 $ 108,841,789 $ 92,302,760
==================== ==================== ==================== ====================
BHFTII METLIFE BHFTII
RUSSELL 2000 INDEX METLIFE STOCK INDEX
DIVISION DIVISION
------------------- --------------------
ASSETS:
Investments at fair value.. $ 84,250,319 $ 1,133,720,316
Due from Metropolitan Life
Insurance Company........ 24 --
------------------- --------------------
Total Assets.......... 84,250,343 1,133,720,316
------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- 6
------------------- --------------------
Total Liabilities..... -- 6
------------------- --------------------
NET ASSETS.................... $ 84,250,343 $ 1,133,720,310
=================== ====================
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, 2017
BHFTII BHFTII BHFTII NEUBERGER
MFS TOTAL RETURN BHFTII MFS VALUE MFS VALUE II BERMAN GENESIS
DIVISION DIVISION DIVISION DIVISION
-------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 32,868,276 $ 106,238,351 $ 21,738,289 $ 121,560,476
Due from Metropolitan Life
Insurance Company........ 1 21 2 32
-------------------- -------------------- -------------------- --------------------
Total Assets.......... 32,868,277 106,238,372 21,738,291 121,560,508
-------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- -------------------- -------------------- --------------------
Total Liabilities..... -- -- -- --
-------------------- -------------------- -------------------- --------------------
NET ASSETS.................... $ 32,868,277 $ 106,238,372 $ 21,738,291 $ 121,560,508
==================== ==================== ==================== ====================
BHFTII WESTERN
BHFTII BHFTII BHFTII ASSET MANAGEMENT
T. ROWE PRICE T. ROWE PRICE VANECK GLOBAL STRATEGIC
LARGE CAP GROWTH SMALL CAP GROWTH NATURAL RESOURCES BOND OPPORTUNITIES
DIVISION DIVISION DIVISION DIVISION
-------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 105,928,694 $ 131,687,035 $ 310,832 $ 54,412,032
Due from Metropolitan Life
Insurance Company........ -- -- -- 5
-------------------- -------------------- -------------------- --------------------
Total Assets.......... 105,928,694 131,687,035 310,832 54,412,037
-------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- 4 -- --
-------------------- -------------------- -------------------- --------------------
Total Liabilities..... -- 4 -- --
-------------------- -------------------- -------------------- --------------------
NET ASSETS.................... $ 105,928,694 $ 131,687,031 $ 310,832 $ 54,412,037
==================== ==================== ==================== ====================
BHFTII WESTERN
ASSET MANAGEMENT DREYFUS VIF
U.S. GOVERNMENT INTERNATIONAL VALUE
DIVISION DIVISION
-------------------- --------------------
ASSETS:
Investments at fair value.. $ 15,840,871 $ 245,233
Due from Metropolitan Life
Insurance Company........ -- --
-------------------- --------------------
Total Assets.......... 15,840,871 245,233
-------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- --
-------------------- --------------------
Total Liabilities..... -- --
-------------------- --------------------
NET ASSETS.................... $ 15,840,871 $ 245,233
==================== ====================
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, 2017
FIDELITY VIP ASSET FIDELITY VIP FIDELITY VIP FIDELITY VIP
MANAGER: GROWTH CONTRAFUND EQUITY-INCOME FREEDOM 2010
DIVISION DIVISION DIVISION DIVISION
--------------------- --------------------- --------------------- ---------------------
ASSETS:
Investments at fair value.. $ 2,166,028 $ 3,034,301 $ 1,660 $ 145,861
Due from Metropolitan Life
Insurance Company....... -- -- -- --
--------------------- --------------------- --------------------- ---------------------
Total Assets.......... 2,166,028 3,034,301 1,660 145,861
--------------------- --------------------- --------------------- ---------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company....... -- -- -- --
--------------------- --------------------- --------------------- ---------------------
Total Liabilities..... -- -- -- --
--------------------- --------------------- --------------------- ---------------------
NET ASSETS.................... $ 2,166,028 $ 3,034,301 $ 1,660 $ 145,861
===================== ===================== ===================== =====================
FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP
FREEDOM 2020 FREEDOM 2025 FREEDOM 2030 FREEDOM 2040
DIVISION DIVISION DIVISION DIVISION
-------------------- --------------------- --------------------- ---------------------
ASSETS:
Investments at fair value.. $ 568,714 $ 516,236 $ 279,269 $ 237,064
Due from Metropolitan Life
Insurance Company....... -- -- -- --
-------------------- --------------------- --------------------- ---------------------
Total Assets.......... 568,714 516,236 279,269 237,064
-------------------- --------------------- --------------------- ---------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company....... -- -- -- --
-------------------- --------------------- --------------------- ---------------------
Total Liabilities..... -- -- -- --
-------------------- --------------------- --------------------- ---------------------
NET ASSETS.................... $ 568,714 $ 516,236 $ 279,269 $ 237,064
==================== ===================== ===================== =====================
FIDELITY VIP
FIDELITY VIP GOVERNMENT
FREEDOM 2050 MONEY MARKET
DIVISION DIVISION
--------------------- ---------------------
ASSETS:
Investments at fair value.. $ 191,082 $ 4,356,720
Due from Metropolitan Life
Insurance Company....... -- --
--------------------- ---------------------
Total Assets.......... 191,082 4,356,720
--------------------- ---------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company....... 13 1
--------------------- ---------------------
Total Liabilities..... 13 1
--------------------- ---------------------
NET ASSETS.................... $ 191,069 $ 4,356,719
===================== =====================
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, 2017
FIDELITY VIP
FIDELITY VIP INVESTMENT FTVIPT
HIGH INCOME GRADE BOND FIDELITY VIP MID CAP FRANKLIN INCOME VIP
DIVISION DIVISION DIVISION DIVISION
--------------------- -------------------- --------------------- --------------------
ASSETS:
Investments at fair value.. $ 475,673 $ 1,202,686 $ 277,353 $ 344,847
Due from Metropolitan Life
Insurance Company........ -- -- -- --
--------------------- -------------------- --------------------- --------------------
Total Assets.......... 475,673 1,202,686 277,353 344,847
--------------------- -------------------- --------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- 288,802
--------------------- -------------------- --------------------- --------------------
Total Liabilities..... -- -- -- 288,802
--------------------- -------------------- --------------------- --------------------
NET ASSETS.................... $ 475,673 $ 1,202,686 $ 277,353 $ 56,045
===================== ==================== ===================== ====================
FTVIPT
FRANKLIN MUTUAL FTVIPT FRANKLIN FTVIPT TEMPLETON FTVIPT TEMPLETON
GLOBAL DISCOVERY VIP MUTUAL SHARES VIP FOREIGN VIP GLOBAL BOND VIP
DIVISION DIVISION DIVISION DIVISION
-------------------- -------------------- --------------------- --------------------
ASSETS:
Investments at fair value.. $ 604,329 $ 111,384 $ 10,011,812 $ 755,203
Due from Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- -------------------- --------------------- --------------------
Total Assets.......... 604,329 111,384 10,011,812 755,203
-------------------- -------------------- --------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- -------------------- --------------------- --------------------
Total Liabilities..... -- -- -- --
-------------------- -------------------- --------------------- --------------------
NET ASSETS.................... $ 604,329 $ 111,384 $ 10,011,812 $ 755,203
==================== ==================== ===================== ====================
GOLDMAN SACHS
GOLDMAN SMALL CAP EQUITY
SACHS MID-CAP VALUE INSIGHTS
DIVISION DIVISION
--------------------- --------------------
ASSETS:
Investments at fair value.. $ 86,945 $ 7,764
Due from Metropolitan Life
Insurance Company........ -- --
--------------------- --------------------
Total Assets.......... 86,945 7,764
--------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- --
--------------------- --------------------
Total Liabilities..... -- --
--------------------- --------------------
NET ASSETS.................... $ 86,945 $ 7,764
===================== ====================
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, 2017
INVESCO V.I. JANUS JANUS HENDERSON
INVESCO V.I. COMSTOCK INTERNATIONAL GROWTH HENDERSON BALANCED ENTERPRISE
DIVISION DIVISION DIVISION DIVISION
--------------------- --------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 681,172 $ 364,454 $ 1,219,411 $ 350,154
Due from Metropolitan Life
Insurance Company........ -- -- -- --
--------------------- --------------------- -------------------- --------------------
Total Assets.......... 681,172 364,454 1,219,411 350,154
--------------------- --------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- 1 --
--------------------- --------------------- -------------------- --------------------
Total Liabilities..... -- -- 1 --
--------------------- --------------------- -------------------- --------------------
NET ASSETS.................... $ 681,172 $ 364,454 $ 1,219,410 $ 350,154
===================== ===================== ==================== ====================
JANUS JANUS JANUS MFS VIT
HENDERSON FORTY HENDERSON OVERSEAS HENDERSON RESEARCH GLOBAL EQUITY
DIVISION DIVISION DIVISION DIVISION
--------------------- --------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 330,857 $ 27,304 $ 343,490 $ 338,550
Due from Metropolitan Life
Insurance Company........ -- -- -- --
--------------------- --------------------- -------------------- --------------------
Total Assets.......... 330,857 27,304 343,490 338,550
--------------------- --------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- --
--------------------- --------------------- -------------------- --------------------
Total Liabilities..... -- -- -- --
--------------------- --------------------- -------------------- --------------------
NET ASSETS.................... $ 330,857 $ 27,304 $ 343,490 $ 338,550
===================== ===================== ==================== ====================
MFS VIT
NEW DISCOVERY MFS VIT VALUE
DIVISION DIVISION
-------------------- ---------------------
ASSETS:
Investments at fair value.. $ 20,796 $ 20,375
Due from Metropolitan Life
Insurance Company........ -- --
-------------------- ---------------------
Total Assets.......... 20,796 20,375
-------------------- ---------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- --
-------------------- ---------------------
Total Liabilities..... -- --
-------------------- ---------------------
NET ASSETS.................... $ 20,796 $ 20,375
==================== =====================
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 -- (CONCLUDED)
DECEMBER 31, 2017
MORGAN STANLEY MORGAN STANLEY
MFS VIT II VIF EMERGING VIF EMERGING PIMCO VIT
HIGH YIELD MARKETS DEBT MARKETS EQUITY ALL ASSET
DIVISION DIVISION DIVISION DIVISION
-------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 157,998 $ 1,733,616 $ 3,179,608 $ 146,396
Due from Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- -------------------- -------------------- --------------------
Total Assets.......... 157,998 1,733,616 3,179,608 146,396
-------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- -------------------- -------------------- --------------------
Total Liabilities..... -- -- -- --
-------------------- -------------------- -------------------- --------------------
NET ASSETS.................... $ 157,998 $ 1,733,616 $ 3,179,608 $ 146,396
==================== ==================== ==================== ====================
PIMCO VIT
COMMODITYREALRETURN PIMCO VIT PUTNAM VT
STRATEGY LOW DURATION INTERNATIONAL VALUE ROYCE MICRO-CAP
DIVISION DIVISION DIVISION DIVISION
-------------------- -------------------- -------------------- --------------------
ASSETS:
Investments at fair value.. $ 5,028 $ 921,977 $ 5,527 $ 11,026
Due from Metropolitan Life
Insurance Company........ -- -- -- --
-------------------- -------------------- -------------------- --------------------
Total Assets.......... 5,028 921,977 5,527 11,026
-------------------- -------------------- -------------------- --------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ -- 1 -- --
-------------------- -------------------- -------------------- --------------------
Total Liabilities..... -- 1 -- --
-------------------- -------------------- -------------------- --------------------
NET ASSETS.................... $ 5,028 $ 921,976 $ 5,527 $ 11,026
==================== ==================== ==================== ====================
ROYCE SMALL-CAP
DIVISION
--------------------
ASSETS:
Investments at fair value.. $ 14,989
Due from Metropolitan Life
Insurance Company........ --
--------------------
Total Assets.......... 14,989
--------------------
LIABILITIES:
Due to Metropolitan Life
Insurance Company........ --
--------------------
Total Liabilities..... --
--------------------
NET ASSETS.................... $ 14,989
====================
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 OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015
AB GLOBAL THEMATIC GROWTH
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 88 $ -- $ --
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 88 -- --
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... 2,867 877 4,879
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 2,867 877 4,879
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 8,219 (1,193) (2,756)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 11,086 (316) 2,123
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 11,174 $ (316) $ 2,123
==================== ==================== ====================
AB INTERMEDIATE BOND
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 3,922 $ 2,736 $ 2,061
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 3,922 2,736 2,061
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 1,238 1,264 1,833
Realized gains (losses) on sale of investments....... (3,842) (186) (171)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... (2,604) 1,078 1,662
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 2,197 49 (3,852)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... (407) 1,127 (2,190)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 3,515 $ 3,863 $ (129)
==================== ==================== ====================
AMERICAN FUNDS BOND
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 128,797 $ 110,564 $ 104,107
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 9,943 9,571 8,549
-------------------- -------------------- --------------------
Net investment income (loss).................... 118,854 100,993 95,558
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 98,810 23,172 116,557
Realized gains (losses) on sale of investments....... (4,363) 1,509 (3,532)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 94,447 24,681 113,025
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 12,429 45,632 (201,734)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 106,876 70,313 (88,709)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 225,730 $ 171,306 $ 6,849
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
The accompanying notes are an integral part of these financial statements.
24
The accompanying notes are an integral part of these financial statements.
25
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 302,899 $ 159,045 $ --
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 83,802 77,911 91,602
-------------------- -------------------- --------------------
Net investment income (loss).................... 219,097 81,134 (91,602)
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- 11,923,223 5,579,846
Realized gains (losses) on sale of investments....... 493,132 (19,783) 1,343,378
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 493,132 11,903,440 6,923,224
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 15,300,486 (10,777,574) (6,348,033)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 15,793,618 1,125,866 575,191
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 16,012,715 $ 1,207,000 $ 483,589
==================== ==================== ====================
AMERICAN FUNDS GROWTH
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 940,051 $ 1,259,429 $ 1,004,590
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 168,990 147,194 155,259
-------------------- -------------------- --------------------
Net investment income (loss).................... 771,061 1,112,235 849,331
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 17,857,311 14,591,335 34,618,471
Realized gains (losses) on sale of investments....... 3,386,491 1,564,440 3,175,509
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 21,243,802 16,155,775 37,793,980
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 23,936,579 (2,560,394) (27,669,113)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 45,180,381 13,595,381 10,124,867
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 45,951,442 $ 14,707,616 $ 10,974,198
==================== ==================== ====================
AMERICAN FUNDS GROWTH-INCOME
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,583,807 $ 1,500,084 $ 1,369,670
-------------------- --------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 110,967 100,558 103,704
-------------------- --------------------- --------------------
Net investment income (loss).................... 1,472,840 1,399,526 1,265,966
-------------------- --------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 7,249,514 11,252,001 15,356,438
Realized gains (losses) on sale of investments....... 1,686,109 993,174 1,779,863
-------------------- --------------------- --------------------
Net realized gains (losses)..................... 8,935,623 12,245,175 17,136,301
-------------------- --------------------- --------------------
Change in unrealized gains (losses) on investments... 12,349,992 (2,551,087) (16,929,014)
-------------------- --------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 21,285,615 9,694,088 207,287
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 22,758,455 $ 11,093,614 $ 1,473,253
==================== ===================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
AMERICAN FUNDS
HIGH-INCOME BOND
DIVISION
--------------------
2017 (a)
--------------------
INVESTMENT INCOME:
Dividends............................................ $ 468
--------------------
EXPENSES:
Mortality and expense risk charges................... --
--------------------
Net investment income (loss).................... 468
--------------------
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... (375)
--------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... (375)
--------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 93
====================
AMERICAN FUNDS INTERNATIONAL
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 7,618 $ 4,799 $ 7,125
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 7,618 4,799 7,125
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 6,927 28,955 32,754
Realized gains (losses) on sale of investments....... 7,074 (7,617) 20,582
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 14,001 21,338 53,336
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 132,723 (18,823) (72,634)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 146,724 2,515 (19,298)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 154,342 $ 7,314 $ (12,173)
==================== ==================== ====================
AMERICAN FUNDS U.S. GOVERNMENT/AAA-RATED SECURITIES
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 724 $ 737 $ 712
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 724 737 712
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- 1,010 404
Realized gains (losses) on sale of investments....... (41) (42) (3)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... (41) 968 401
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 178 (1,163) (350)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 137 (195) 51
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 861 $ 542 $ 763
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI AB GLOBAL DYNAMIC ALLOCATION
DIVISION
--------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,050 $ 977 $ 2,180
--------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- -------------------- --------------------
Net investment income (loss).................... 1,050 977 2,180
--------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- 630 2,323
Realized gains (losses) on sale of investments....... 227 (200) (101)
--------------------- -------------------- --------------------
Net realized gains (losses)..................... 227 430 2,222
--------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 7,735 769 (4,443)
--------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 7,962 1,199 (2,221)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 9,012 $ 2,176 $ (41)
===================== ==================== ====================
BHFTI ALLIANZ GLOBAL INVESTORS DYNAMIC MULTI-ASSET PLUS
DIVISION
--------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 94 $ 2 $ 21
-------------------- -------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- ---------------------
Net investment income (loss).................... 94 2 21
-------------------- -------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- 19
Realized gains (losses) on sale of investments....... 101 (12) (278)
-------------------- -------------------- ---------------------
Net realized gains (losses)..................... 101 (12) (259)
-------------------- -------------------- ---------------------
Change in unrealized gains (losses) on investments... 685 80 (72)
-------------------- -------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 786 68 (331)
-------------------- -------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 880 $ 70 $ (310)
==================== ==================== =====================
BHFTI AMERICAN FUNDS BALANCED ALLOCATION
DIVISION
--------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 19,259 $ 18,208 $ 15,506
-------------------- -------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- ---------------------
Net investment income (loss).................... 19,259 18,208 15,506
-------------------- -------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 53,965 77,498 46,196
Realized gains (losses) on sale of investments....... 1,827 (552) 3,497
-------------------- -------------------- ---------------------
Net realized gains (losses)..................... 55,792 76,946 49,693
-------------------- -------------------- ---------------------
Change in unrealized gains (losses) on investments... 98,370 (22,963) (69,036)
-------------------- -------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 154,162 53,983 (19,343)
-------------------- -------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 173,421 $ 72,191 $ (3,837)
==================== ==================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI AMERICAN FUNDS GROWTH ALLOCATION
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 29,710 $ 26,959 $ 24,524
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 29,710 26,959 24,524
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 125,095 165,604 95,418
Realized gains (losses) on sale of investments....... 2,793 (5,416) 15,416
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 127,888 160,188 110,834
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 236,441 (37,021) (141,365)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 364,329 123,167 (30,531)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 394,039 $ 150,126 $ (6,007)
==================== ==================== ====================
BHFTI AMERICAN FUNDS MODERATE ALLOCATION
DIVISION
-----------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- -------------------
INVESTMENT INCOME:
Dividends............................................ $ 27,088 $ 23,999 $ 17,019
-------------------- -------------------- -------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- -------------------
Net investment income (loss).................... 27,088 23,999 17,019
-------------------- -------------------- -------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 56,192 68,764 40,376
Realized gains (losses) on sale of investments....... (553) (1,035) 12,509
-------------------- -------------------- -------------------
Net realized gains (losses)..................... 55,639 67,729 52,885
-------------------- -------------------- -------------------
Change in unrealized gains (losses) on investments... 80,012 (16,232) (73,320)
-------------------- -------------------- -------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 135,651 51,497 (20,435)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 162,739 $ 75,496 $ (3,416)
==================== ==================== ===================
BHFTI AQR GLOBAL RISK BALANCED
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 2,366 $ -- $ 7,434
------------------- ------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
------------------- ------------------- --------------------
Net investment income (loss).................... 2,366 -- 7,434
------------------- ------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 6,628 -- 13,315
Realized gains (losses) on sale of investments....... (1,940) (7,843) (2,519)
------------------- ------------------- --------------------
Net realized gains (losses)..................... 4,688 (7,843) 10,796
------------------- ------------------- --------------------
Change in unrealized gains (losses) on investments... 6,767 18,548 (30,868)
------------------- ------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 11,455 10,705 (20,072)
------------------- ------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 13,821 $ 10,705 $ (12,638)
=================== =================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI BLACKROCK GLOBAL TACTICAL STRATEGIES
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 2,651 $ 4,216 $ 3,577
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- --------------------- ---------------------
Net investment income (loss).................... 2,651 4,216 3,577
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 4,771 23,769 9,296
Realized gains (losses) on sale of investments....... (105) (756) 49
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 4,666 23,013 9,345
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 40,461 (13,208) (14,933)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 45,127 9,805 (5,588)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 47,778 $ 14,021 $ (2,011)
===================== ===================== =====================
BHFTI BRIGHTHOUSE ASSET ALLOCATION 100
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 349,648 $ 523,833 $ 322,952
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... 15,750 14,780 16,490
--------------------- --------------------- ---------------------
Net investment income (loss).................... 333,898 509,053 306,462
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 1,313,399 2,664,123 1,572,075
Realized gains (losses) on sale of investments....... 313,827 102,098 325,688
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 1,627,226 2,766,221 1,897,763
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 2,972,083 (1,391,486) (2,617,113)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 4,599,309 1,374,735 (719,350)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 4,933,207 $ 1,883,788 $ (412,888)
===================== ===================== =====================
BHFTI BRIGHTHOUSE BALANCED PLUS
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 5,462 $ 7,951 $ 4,773
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- --------------------- ---------------------
Net investment income (loss).................... 5,462 7,951 4,773
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 17,375 3,078 13,434
Realized gains (losses) on sale of investments....... 860 (955) (2,885)
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 18,235 2,123 10,549
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 35,046 12,397 (26,058)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 53,281 14,520 (15,509)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 58,743 $ 22,471 $ (10,736)
===================== ===================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI BRIGHTHOUSE SMALL CAP VALUE
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 6,610 $ 8,421 $ 800
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 6,610 8,421 800
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 26,213 21,554 310,745
Realized gains (losses) on sale of investments....... 9,255 (31,090) 1,317
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 35,468 (9,536) 312,062
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 41,355 191,373 (358,930)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 76,823 181,837 (46,868)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 83,433 $ 190,258 $ (46,068)
==================== ==================== ====================
BHFTI BRIGHTHOUSE/ABERDEEN EMERGING MARKETS EQUITY
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 9,611 $ 6,049 $ 10,228
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 9,611 6,049 10,228
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... 7,574 (30,698) (4,559)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 7,574 (30,698) (4,559)
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 170,725 89,323 (82,085)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 178,299 58,625 (86,644)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 187,910 $ 64,674 $ (76,416)
==================== ==================== ====================
BHFTI BRIGHTHOUSE/TEMPLETON INTERNATIONAL BOND
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ -- $ -- $ 16,491
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... -- -- 16,491
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 100 486 355
Realized gains (losses) on sale of investments....... (1,448) (2,171) (5,538)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... (1,348) (1,685) (5,183)
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 2,100 4,976 (19,099)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 752 3,291 (24,282)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 752 $ 3,291 $ (7,791)
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI BRIGHTHOUSE/WELLINGTON LARGE CAP RESEARCH
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 4,789,366 $ 9,605,133 $ 3,933,627
-------------------- --------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 2,236,275 2,007,407 2,110,795
-------------------- --------------------- --------------------
Net investment income (loss).................... 2,553,091 7,597,726 1,822,832
-------------------- --------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 16,060,148 26,127,082 29,529,907
Realized gains (losses) on sale of investments....... 9,245,393 4,953,703 6,791,139
-------------------- --------------------- --------------------
Net realized gains (losses)..................... 25,305,541 31,080,785 36,321,046
-------------------- --------------------- --------------------
Change in unrealized gains (losses) on investments... 57,041,217 (8,253,818) (21,509,605)
-------------------- --------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 82,346,758 22,826,967 14,811,441
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 84,899,849 $ 30,424,693 $ 16,634,273
==================== ===================== ====================
BHFTI CLARION GLOBAL REAL ESTATE
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,053,750 $ 679,349 $ 1,234,670
-------------------- --------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 27,604 29,090 31,928
-------------------- --------------------- --------------------
Net investment income (loss).................... 1,026,146 650,259 1,202,742
-------------------- --------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... 11,186 31,945 48,531
-------------------- --------------------- --------------------
Net realized gains (losses)..................... 11,186 31,945 48,531
-------------------- --------------------- --------------------
Change in unrealized gains (losses) on investments... 1,949,598 (362,033) (1,654,271)
-------------------- --------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 1,960,784 (330,088) (1,605,740)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 2,986,930 $ 320,171 $ (402,998)
==================== ===================== ====================
BHFTI CLEARBRIDGE AGGRESSIVE GROWTH
DIVISION
-------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 411,128 $ 270,534 $ 198,717
--------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 38,033 36,607 45,621
--------------------- -------------------- --------------------
Net investment income (loss).................... 373,095 233,927 153,096
--------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... 1,758,844 970,623 1,820,551
--------------------- -------------------- --------------------
Net realized gains (losses)..................... 1,758,844 970,623 1,820,551
--------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 5,283,206 (103,509) (3,670,688)
--------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 7,042,050 867,114 (1,850,137)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 7,415,145 $ 1,101,041 $ (1,697,041)
===================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI HARRIS OAKMARK INTERNATIONAL
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 809,196 $ 861,973 $ 1,358,813
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 57,884 49,021 57,999
-------------------- -------------------- --------------------
Net investment income (loss).................... 751,312 812,952 1,300,814
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- 2,415,203 3,880,482
Realized gains (losses) on sale of investments....... 298,648 (640,681) 49,542
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 298,648 1,774,522 3,930,024
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 10,649,156 446,527 (6,964,997)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 10,947,804 2,221,049 (3,034,973)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 11,699,116 $ 3,034,001 $ (1,734,159)
==================== ==================== ====================
BHFTI INVESCO BALANCED-RISK ALLOCATION
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,933 $ 63 $ 1,200
-------------------- -------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- ---------------------
Net investment income (loss).................... 1,933 63 1,200
-------------------- -------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 2,679 -- 3,078
Realized gains (losses) on sale of investments....... 1 (528) (1,351)
-------------------- -------------------- ---------------------
Net realized gains (losses)..................... 2,680 (528) 1,727
-------------------- -------------------- ---------------------
Change in unrealized gains (losses) on investments... 724 4,887 (4,753)
-------------------- -------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 3,404 4,359 (3,026)
-------------------- -------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 5,337 $ 4,422 $ (1,826)
==================== ==================== =====================
BHFTI INVESCO SMALL CAP GROWTH
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ -- $ -- $ 9,561
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 8,930 8,076 9,074
-------------------- -------------------- --------------------
Net investment income (loss).................... (8,930) (8,076) 487
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 722,548 1,137,318 1,773,695
Realized gains (losses) on sale of investments....... (32,646) (110,635) 1,804
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 689,902 1,026,683 1,775,499
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 961,544 (318,719) (1,866,286)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 1,651,446 707,964 (90,787)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 1,642,516 $ 699,888 $ (90,300)
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI JPMORGAN GLOBAL ACTIVE ALLOCATION
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 5,628 $ 3,855 $ 5,107
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 5,628 3,855 5,107
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- 3,091 8,853
Realized gains (losses) on sale of investments....... 761 (510) (120)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 761 2,581 8,733
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 28,770 (1,187) (12,813)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 29,531 1,394 (4,080)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 35,159 $ 5,249 $ 1,027
==================== ==================== ====================
BHFTI JPMORGAN SMALL CAP VALUE
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 7,780 $ 6,286 $ 4,196
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 7,780 6,286 4,196
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 27,983 22,605 26,694
Realized gains (losses) on sale of investments....... 12,875 2,029 (765)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 40,858 24,634 25,929
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... (24,944) 79,671 (52,802)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 15,914 104,305 (26,873)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 23,694 $ 110,591 $ (22,677)
==================== ==================== ====================
BHFTI LOOMIS SAYLES GLOBAL MARKETS
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 6,635 $ 6,758 $ 7,875
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 6,635 6,758 7,875
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 1,769 11,125 --
Realized gains (losses) on sale of investments....... 6,743 1,573 18,423
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 8,512 12,698 18,423
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 71,276 (1,350) (13,993)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 79,788 11,348 4,430
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 86,423 $ 18,106 $ 12,305
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI METLIFE MULTI-INDEX TARGETED RISK
DIVISION
------------------------------------------------------------------
2017 2016 2015
------------------- ------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 2,477 $ 1,944 $ 1,398
------------------- ------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
------------------- ------------------- --------------------
Net investment income (loss).................... 2,477 1,944 1,398
------------------- ------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 4,511 -- 3,097
Realized gains (losses) on sale of investments....... 1,795 (37) 1,073
------------------- ------------------- --------------------
Net realized gains (losses)..................... 6,306 (37) 4,170
------------------- ------------------- --------------------
Change in unrealized gains (losses) on investments... 15,712 4,590 (7,672)
------------------- ------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 22,018 4,553 (3,502)
------------------- ------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 24,495 $ 6,497 $ (2,104)
=================== =================== ====================
BHFTI MFS RESEARCH INTERNATIONAL
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 365,364 $ 378,662 $ 565,935
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 16,781 15,460 17,693
-------------------- -------------------- --------------------
Net investment income (loss).................... 348,583 363,202 548,242
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... 120,626 (113,918) 34,366
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 120,626 (113,918) 34,366
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 4,288,325 (396,420) (864,226)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 4,408,951 (510,338) (829,860)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 4,757,534 $ (147,136) $ (281,618)
==================== ==================== ====================
BHFTI MORGAN STANLEY MID CAP GROWTH
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- -------------------
INVESTMENT INCOME:
Dividends............................................ $ 795,262 $ -- $ --
-------------------- -------------------- -------------------
EXPENSES:
Mortality and expense risk charges................... 672,898 581,093 686,901
-------------------- -------------------- -------------------
Net investment income (loss).................... 122,364 (581,093) (686,901)
-------------------- -------------------- -------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... 6,098,517 3,185,085 4,836,759
-------------------- -------------------- -------------------
Net realized gains (losses)..................... 6,098,517 3,185,085 4,836,759
-------------------- -------------------- -------------------
Change in unrealized gains (losses) on investments... 66,869,811 (20,525,720) (15,427,415)
-------------------- -------------------- -------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 72,968,328 (17,340,635) (10,590,656)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 73,090,692 $ (17,921,728) $ (11,277,557)
==================== ==================== ===================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI OPPENHEIMER GLOBAL EQUITY
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 631,796 $ 540,111 $ 609,199
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 143,449 112,319 104,779
-------------------- -------------------- --------------------
Net investment income (loss).................... 488,347 427,792 504,420
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- 2,248,912 1,119,227
Realized gains (losses) on sale of investments....... 2,246,334 1,062,963 1,459,506
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 2,246,334 3,311,875 2,578,733
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 14,255,607 (3,785,262) (1,183,054)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 16,501,941 (473,387) 1,395,679
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 16,990,288 $ (45,595) $ 1,900,099
==================== ==================== ====================
BHFTI PANAGORA GLOBAL DIVERSIFIED RISK
DIVISION
------------------------------------------------------------------
2017 2016 2015 (b)
------------------- -------------------- --------------------
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....... 81 1 (360)
------------------- -------------------- --------------------
Net realized gains (losses)..................... 81 1 (295)
------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 16 (1) 1
------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 97 -- (294)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 97 $ -- $ (244)
=================== ==================== ====================
BHFTI PIMCO INFLATION PROTECTED BOND
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 184,363 $ -- $ 559,967
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 17,161 17,989 19,912
-------------------- -------------------- --------------------
Net investment income (loss).................... 167,202 (17,989) 540,055
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... (123,809) (134,822) (211,211)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... (123,809) (134,822) (211,211)
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 327,314 652,775 (655,945)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 203,505 517,953 (867,156)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 370,707 $ 499,964 $ (327,101)
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI PIMCO TOTAL RETURN
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 849,953 $ 1,232,049 $ 2,501,824
-------------------- -------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... 52,719 55,405 58,540
-------------------- -------------------- ---------------------
Net investment income (loss).................... 797,234 1,176,644 2,443,284
-------------------- -------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 211,560 -- 545,027
Realized gains (losses) on sale of investments....... (75,048) (107,899) (40,218)
-------------------- -------------------- ---------------------
Net realized gains (losses)..................... 136,512 (107,899) 504,809
-------------------- -------------------- ---------------------
Change in unrealized gains (losses) on investments... 1,034,223 134,407 (2,854,535)
-------------------- -------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 1,170,735 26,508 (2,349,726)
-------------------- -------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 1,967,969 $ 1,203,152 $ 93,558
==================== ==================== =====================
BHFTI SCHRODERS GLOBAL MULTI-ASSET
DIVISION
-------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 508 $ 675 $ 467
--------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- -------------------- --------------------
Net investment income (loss).................... 508 675 467
--------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 1,219 658 1,401
Realized gains (losses) on sale of investments....... 255 (11) 35
--------------------- -------------------- --------------------
Net realized gains (losses)..................... 1,474 647 1,436
--------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 6,574 1,558 (2,611)
--------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 8,048 2,205 (1,175)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 8,556 $ 2,880 $ (708)
===================== ==================== ====================
BHFTI SCHRODERS GLOBAL MULTI-ASSET II
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 116 $ 47 $ 86
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 116 47 86
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 1 16 433
Realized gains (losses) on sale of investments....... 43 (9) 545
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 44 7 978
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 1,539 239 (255)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 1,583 246 723
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 1,699 $ 293 $ 809
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI SSGA GROWTH AND INCOME ETF
DIVISION
----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- -------------------
INVESTMENT INCOME:
Dividends............................................ $ 220,103 $ 201,907 $ 200,671
------------------- ------------------- -------------------
EXPENSES:
Mortality and expense risk charges................... 8,503 8,489 9,183
------------------- ------------------- -------------------
Net investment income (loss)..................... 211,600 193,418 191,488
------------------- ------------------- -------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 25,075 439,798 439,240
Realized gains (losses) on sale of investments....... 31,915 (17,565) 68,038
------------------- ------------------- -------------------
Net realized gains (losses)...................... 56,990 422,233 507,278
------------------- ------------------- -------------------
Change in unrealized gains (losses) on investments... 993,368 (166,860) (845,948)
------------------- ------------------- -------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 1,050,358 255,373 (338,670)
------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 1,261,958 $ 448,791 $ (147,182)
=================== =================== ===================
BHFTI SSGA GROWTH ETF
DIVISION
----------------------------------------------------------------
2017 2016 2015
-------------------- ------------------- -------------------
INVESTMENT INCOME:
Dividends............................................ $ 183,120 $ 159,959 $ 152,270
-------------------- ------------------- -------------------
EXPENSES:
Mortality and expense risk charges................... 7,493 7,001 7,372
-------------------- ------------------- -------------------
Net investment income (loss)..................... 175,627 152,958 144,898
-------------------- ------------------- -------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 82,762 424,639 369,187
Realized gains (losses) on sale of investments....... 70,763 (36,140) 30,189
-------------------- ------------------- -------------------
Net realized gains (losses)...................... 153,525 388,499 399,376
-------------------- ------------------- -------------------
Change in unrealized gains (losses) on investments... 1,057,422 (116,079) (699,498)
-------------------- ------------------- -------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 1,210,947 272,420 (300,122)
-------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 1,386,574 $ 425,378 $ (155,224)
==================== =================== ===================
BHFTI T. ROWE PRICE LARGE CAP VALUE
DIVISION
----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 56,019 $ 63,487 $ 36,741
------------------- ------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
------------------- ------------------- --------------------
Net investment income (loss)..................... 56,019 63,487 36,741
------------------- ------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 211,170 241,959 4,421
Realized gains (losses) on sale of investments....... 7,745 22,893 86,882
------------------- ------------------- --------------------
Net realized gains (losses)...................... 218,915 264,852 91,303
------------------- ------------------- --------------------
Change in unrealized gains (losses) on investments... 129,307 1,148 (197,956)
------------------- ------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 348,222 266,000 (106,653)
------------------- ------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 404,241 $ 329,487 $ (69,912)
=================== =================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI T. ROWE PRICE MID CAP GROWTH
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ -- $ -- $ --
-------------------- --------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 53,030 45,975 45,309
-------------------- --------------------- --------------------
Net investment income (loss).................... (53,030) (45,975) (45,309)
-------------------- --------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 3,182,369 4,929,907 5,111,107
Realized gains (losses) on sale of investments....... 414,597 274,363 671,843
-------------------- --------------------- --------------------
Net realized gains (losses)..................... 3,596,966 5,204,270 5,782,950
-------------------- --------------------- --------------------
Change in unrealized gains (losses) on investments... 4,985,555 (3,017,999) (3,612,484)
-------------------- --------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 8,582,521 2,186,271 2,170,466
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 8,529,491 $ 2,140,296 $ 2,125,157
==================== ===================== ====================
BHFTI VICTORY SYCAMORE MID CAP VALUE
DIVISION
--------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,006,939 $ 727,789 $ 652,691
--------------------- -------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... 82,275 77,755 88,957
--------------------- -------------------- ---------------------
Net investment income (loss).................... 924,664 650,034 563,734
--------------------- -------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- 3,889,123 4,446,457
Realized gains (losses) on sale of investments....... 763,180 11,246 732,310
--------------------- -------------------- ---------------------
Net realized gains (losses)..................... 763,180 3,900,369 5,178,767
--------------------- -------------------- ---------------------
Change in unrealized gains (losses) on investments... 6,544,581 7,673,646 (13,696,346)
--------------------- -------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 7,307,761 11,574,015 (8,517,579)
--------------------- -------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 8,232,425 $ 12,224,049 $ (7,953,845)
===================== ==================== =====================
BHFTII BAILLIE GIFFORD INTERNATIONAL STOCK
DIVISION
--------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 553,050 $ 627,145 $ 713,415
--------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 209,721 179,611 193,538
--------------------- -------------------- --------------------
Net investment income (loss).................... 343,329 447,534 519,877
--------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... 322,047 (310,525) (206,507)
--------------------- -------------------- --------------------
Net realized gains (losses)..................... 322,047 (310,525) (206,507)
--------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 12,519,996 1,728,920 (1,227,962)
--------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 12,842,043 1,418,395 (1,434,469)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 13,185,372 $ 1,865,929 $ (914,592)
===================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII BLACKROCK BOND INCOME
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 2,411,937 $ 2,531,954 $ 3,137,039
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 272,659 278,834 287,424
-------------------- -------------------- --------------------
Net investment income (loss).................... 2,139,278 2,253,120 2,849,615
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- 918,699
Realized gains (losses) on sale of investments....... (33,084) 30,488 (4,703)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... (33,084) 30,488 913,996
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 749,028 (97,803) (3,544,439)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 715,944 (67,315) (2,630,443)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 2,855,222 $ 2,185,805 $ 219,172
==================== ==================== ====================
BHFTII BLACKROCK CAPITAL APPRECIATION
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 11,274 $ -- $ --
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 11,518 9,977 10,693
-------------------- -------------------- --------------------
Net investment income (loss).................... (244) (9,977) (10,693)
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 248,842 852,431 1,744,269
Realized gains (losses) on sale of investments....... 337,629 195,339 278,466
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 586,471 1,047,770 2,022,735
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 2,528,190 (1,066,351) (1,407,738)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 3,114,661 (18,581) 614,997
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 3,114,417 $ (28,558) $ 604,304
==================== ==================== ====================
BHFTII BLACKROCK ULTRA-SHORT TERM BOND
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 91,995 $ 16,356 $ 813
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 31,108 34,740 35,827
-------------------- -------------------- --------------------
Net investment income (loss).................... 60,887 (18,384) (35,014)
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 532 487 --
Realized gains (losses) on sale of investments....... 25,191 3,225 --
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 25,723 3,712 --
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 119,513 60,725 --
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 145,236 64,437 --
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 206,123 $ 46,053 $ (35,014)
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII BRIGHTHOUSE ASSET ALLOCATION 20
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 126,677 $ 185,658 $ 124,733
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... 7,207 7,760 8,287
--------------------- --------------------- ---------------------
Net investment income (loss).................... 119,470 177,898 116,446
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 87,901 179,520 168,162
Realized gains (losses) on sale of investments....... (47,017) (57,458) 6,832
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 40,884 122,062 174,994
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 193,850 (54,551) (309,762)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 234,734 67,511 (134,768)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 354,204 $ 245,409 $ (18,322)
===================== ===================== =====================
BHFTII BRIGHTHOUSE ASSET ALLOCATION 40
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 243,164 $ 380,608 $ 46,938
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... 15,988 15,456 17,505
--------------------- --------------------- ---------------------
Net investment income (loss).................... 227,176 365,152 29,433
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 340,561 653,875 559,298
Realized gains (losses) on sale of investments....... 8,343 (4,511) 140,214
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 348,904 649,364 699,512
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 555,970 (402,883) (854,363)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 904,874 246,481 (154,851)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 1,132,050 $ 611,633 $ (125,418)
===================== ===================== =====================
BHFTII BRIGHTHOUSE ASSET ALLOCATION 60
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,067,522 $ 1,741,228 $ 390,972
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... 79,507 80,187 85,255
--------------------- --------------------- ---------------------
Net investment income (loss).................... 988,015 1,661,041 305,717
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 2,146,384 4,622,045 3,409,671
Realized gains (losses) on sale of investments....... 456,295 180,894 662,426
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 2,602,679 4,802,939 4,072,097
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 3,901,633 (2,834,262) (4,965,532)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 6,504,312 1,968,677 (893,435)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 7,492,327 $ 3,629,718 $ (587,718)
===================== ===================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII BRIGHTHOUSE ASSET ALLOCATION 80
DIVISION
--------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,815,853 $ 3,023,030 $ 512,933
-------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... 89,663 80,568 85,082
-------------------- --------------------- ---------------------
Net investment income (loss).................... 1,726,190 2,942,462 427,851
-------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 5,578,827 11,163,996 4,372,751
Realized gains (losses) on sale of investments....... 1,298,195 857,817 1,805,013
-------------------- --------------------- ---------------------
Net realized gains (losses)..................... 6,877,022 12,021,813 6,177,764
-------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 9,496,898 (7,365,543) (8,037,823)
-------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 16,373,920 4,656,270 (1,860,059)
-------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 18,100,110 $ 7,598,732 $ (1,432,208)
==================== ===================== =====================
BHFTII BRIGHTHOUSE/ARTISAN MID CAP VALUE
DIVISION
--------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 441,768 $ 623,203 $ 704,333
--------------------- --------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 54,893 49,909 52,726
--------------------- --------------------- --------------------
Net investment income (loss).................... 386,875 573,294 651,607
--------------------- --------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- 6,218,111 7,448,048
Realized gains (losses) on sale of investments....... 643,877 158,671 632,699
--------------------- --------------------- --------------------
Net realized gains (losses)..................... 643,877 6,376,782 8,080,747
--------------------- --------------------- --------------------
Change in unrealized gains (losses) on investments... 6,536,022 4,919,832 (14,388,947)
--------------------- --------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 7,179,899 11,296,614 (6,308,200)
--------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 7,566,774 $ 11,869,908 $ (5,656,593)
===================== ===================== ====================
BHFTII BRIGHTHOUSE/WELLINGTON BALANCED
DIVISION
--------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 6,002,089 $ 8,164,072 $ 6,073,749
-------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... 1,662,608 1,586,955 1,662,109
-------------------- --------------------- ---------------------
Net investment income (loss).................... 4,339,481 6,577,117 4,411,640
-------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 7,530,180 13,751,650 51,879,369
Realized gains (losses) on sale of investments....... 2,933,892 1,873,457 4,030,610
-------------------- --------------------- ---------------------
Net realized gains (losses)..................... 10,464,072 15,625,107 55,909,979
-------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 27,671,155 (3,743,348) (53,963,621)
-------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 38,135,227 11,881,759 1,946,358
-------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 42,474,708 $ 18,458,876 $ 6,357,998
==================== ===================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII BRIGHTHOUSE/WELLINGTON CORE EQUITY OPPORTUNITIES
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,196,624 $ 1,178,342 $ 1,320,806
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 58,748 55,978 57,675
-------------------- -------------------- --------------------
Net investment income (loss).................... 1,137,876 1,122,364 1,263,131
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 2,824,131 3,218,161 25,408,009
Realized gains (losses) on sale of investments....... 379,451 (89,698) 716,455
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 3,203,582 3,128,463 26,124,464
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 9,056,499 855,321 (25,717,218)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 12,260,081 3,983,784 407,246
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 13,397,957 $ 5,106,148 $ 1,670,377
==================== ==================== ====================
BHFTII FRONTIER MID CAP GROWTH
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ -- $ -- $ --
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 1,632,964 1,459,027 1,605,819
-------------------- -------------------- --------------------
Net investment income (loss).................... (1,632,964) (1,459,027) (1,605,819)
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 5,792,652 25,696,515 31,059,487
Realized gains (losses) on sale of investments....... 5,416,830 2,622,698 5,229,191
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 11,209,482 28,319,213 36,288,678
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 43,545,366 (16,692,072) (28,947,695)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 54,754,848 11,627,141 7,340,983
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 53,121,884 $ 10,168,114 $ 5,735,164
==================== ==================== ====================
BHFTII JENNISON GROWTH
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 84,450 $ 66,617 $ 64,278
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 17,500 14,334 14,588
-------------------- -------------------- --------------------
Net investment income (loss).................... 66,950 52,283 49,690
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 1,883,231 2,948,170 3,546,254
Realized gains (losses) on sale of investments....... 374,997 177,425 583,747
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 2,258,228 3,125,595 4,130,001
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 6,383,010 (3,197,364) (1,789,865)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 8,641,238 (71,769) 2,340,136
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 8,708,188 $ (19,486) $ 2,389,826
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII LOOMIS SAYLES SMALL CAP CORE
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 75,600 $ 76,360 $ 38,636
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 26,031 22,984 24,860
-------------------- -------------------- --------------------
Net investment income (loss).................... 49,569 53,376 13,776
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 1,682,939 2,113,583 3,150,294
Realized gains (losses) on sale of investments....... 473,735 122,418 370,891
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 2,156,674 2,236,001 3,521,185
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 1,501,241 1,915,532 (3,857,826)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 3,657,915 4,151,533 (336,641)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 3,707,484 $ 4,204,909 $ (322,865)
==================== ==================== ====================
BHFTII LOOMIS SAYLES SMALL CAP GROWTH
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ -- $ -- $ --
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 9,721 9,163 9,783
-------------------- -------------------- --------------------
Net investment income (loss).................... (9,721) (9,163) (9,783)
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 548,702 1,165,890 1,543,783
Realized gains (losses) on sale of investments....... 214,228 56,242 261,026
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 762,930 1,222,132 1,804,809
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 2,111,346 (582,015) (1,598,061)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 2,874,276 640,117 206,748
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 2,864,555 $ 630,954 $ 196,965
==================== ==================== ====================
BHFTII METLIFE AGGREGATE BOND INDEX
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 3,851,349 $ 3,556,980 $ 3,746,041
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 41,255 40,599 39,974
-------------------- -------------------- --------------------
Net investment income (loss).................... 3,810,094 3,516,381 3,706,067
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... (60,039) 157,844 111,155
-------------------- -------------------- --------------------
Net realized gains (losses)..................... (60,039) 157,844 111,155
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 463,003 (713,953) (3,467,125)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 402,964 (556,109) (3,355,970)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 4,213,058 $ 2,960,272 $ 350,097
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII METLIFE MID CAP STOCK INDEX
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,393,301 $ 1,110,219 $ 1,033,473
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 73,593 65,628 68,461
-------------------- -------------------- --------------------
Net investment income (loss).................... 1,319,708 1,044,591 965,012
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 6,351,214 6,666,040 5,617,501
Realized gains (losses) on sale of investments....... 2,402,793 1,488,577 1,969,456
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 8,754,007 8,154,617 7,586,957
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 4,956,766 7,196,356 (10,506,888)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 13,710,773 15,350,973 (2,919,931)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 15,030,481 $ 16,395,564 $ (1,954,919)
==================== ==================== ====================
BHFTII METLIFE MSCI EAFE INDEX
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- -------------------
INVESTMENT INCOME:
Dividends............................................ $ 2,349,651 $ 1,978,825 $ 2,538,836
------------------- ------------------- -------------------
EXPENSES:
Mortality and expense risk charges................... 40,550 35,536 38,784
------------------- ------------------- -------------------
Net investment income (loss).................... 2,309,101 1,943,289 2,500,052
------------------- ------------------- -------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... 1,359,240 101,562 707,350
------------------- ------------------- -------------------
Net realized gains (losses)..................... 1,359,240 101,562 707,350
------------------- ------------------- -------------------
Change in unrealized gains (losses) on investments... 15,314,940 (990,605) (3,862,935)
------------------- ------------------- -------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 16,674,180 (889,043) (3,155,585)
------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 18,983,281 $ 1,054,246 $ (655,533)
=================== =================== ===================
BHFTII METLIFE RUSSELL 2000 INDEX
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 973,933 $ 959,940 $ 876,249
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 54,478 46,857 47,773
-------------------- -------------------- --------------------
Net investment income (loss).................... 919,455 913,083 828,476
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 3,194,653 4,042,248 4,152,346
Realized gains (losses) on sale of investments....... 2,846,816 1,662,177 2,119,087
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 6,041,469 5,704,425 6,271,433
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 4,109,388 7,347,406 (10,053,677)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 10,150,857 13,051,831 (3,782,244)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 11,070,312 $ 13,964,914 $ (2,953,768)
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII METLIFE STOCK INDEX
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 19,102,288 $ 19,282,251 $ 16,989,974
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 2,334,132 2,114,804 2,188,283
-------------------- -------------------- --------------------
Net investment income (loss).................... 16,768,156 17,167,447 14,801,691
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 30,024,000 42,275,909 40,868,342
Realized gains (losses) on sale of investments....... 34,571,519 15,702,100 17,484,826
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 64,595,519 57,978,009 58,353,168
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 126,477,450 31,292,870 (63,726,527)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 191,072,969 89,270,879 (5,373,359)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 207,841,125 $ 106,438,326 $ 9,428,332
==================== ==================== ====================
BHFTII MFS TOTAL RETURN
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- -------------------
INVESTMENT INCOME:
Dividends............................................ $ 265,892 $ 287,267 $ 256,077
------------------- ------------------- -------------------
EXPENSES:
Mortality and expense risk charges................... 9,874 9,492 8,955
------------------- ------------------- -------------------
Net investment income (loss).................... 256,018 277,775 247,122
------------------- ------------------- -------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 556,179 417,334 --
Realized gains (losses) on sale of investments....... 137,114 162,191 196,619
------------------- ------------------- -------------------
Net realized gains (losses)..................... 693,293 579,525 196,619
------------------- ------------------- -------------------
Change in unrealized gains (losses) on investments... 1,181,033 3,086 (470,036)
------------------- ------------------- -------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 1,874,326 582,611 (273,417)
------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 2,130,344 $ 860,386 $ (26,295)
=================== =================== ===================
BHFTII MFS VALUE
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,881,888 $ 1,901,086 $ 2,325,157
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 74,868 68,482 70,555
-------------------- -------------------- --------------------
Net investment income (loss).................... 1,807,020 1,832,604 2,254,602
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 5,556,050 7,583,219 13,359,170
Realized gains (losses) on sale of investments....... 820,001 440,263 1,066,697
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 6,376,051 8,023,482 14,425,867
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 7,634,853 1,456,878 (16,842,516)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 14,010,904 9,480,360 (2,416,649)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 15,817,924 $ 11,312,964 $ (162,047)
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII MFS VALUE II
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 550,421 $ 319,165 $ 358,828
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 24,035 22,545 23,445
-------------------- -------------------- --------------------
Net investment income (loss).................... 526,386 296,620 335,383
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- 1,458,734 1,605,704
Realized gains (losses) on sale of investments....... (221,837) (389,249) (183,787)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... (221,837) 1,069,485 1,421,917
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 1,234,077 1,883,740 (2,942,487)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 1,012,240 2,953,225 (1,520,570)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 1,538,626 $ 3,249,845 $ (1,185,187)
==================== ==================== ====================
BHFTII NEUBERGER BERMAN GENESIS
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 467,365 $ 488,023 $ 455,355
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 97,289 88,644 93,449
-------------------- -------------------- --------------------
Net investment income (loss).................... 370,076 399,379 361,906
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 9,271,091 -- --
Realized gains (losses) on sale of investments....... 2,786,014 1,826,763 1,512,189
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 12,057,105 1,826,763 1,512,189
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 4,394,645 15,758,188 (1,230,308)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 16,451,750 17,584,951 281,881
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 16,821,826 $ 17,984,330 $ 643,787
==================== ==================== ====================
BHFTII T. ROWE PRICE LARGE CAP GROWTH
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 290,388 $ 49,087 $ 117,835
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 68,479 57,405 60,498
-------------------- -------------------- --------------------
Net investment income (loss).................... 221,909 (8,318) 57,337
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 5,723,064 10,221,524 15,073,030
Realized gains (losses) on sale of investments....... 2,250,944 1,301,214 2,495,339
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 7,974,008 11,522,738 17,568,369
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 19,425,313 (10,229,673) (8,845,976)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 27,399,321 1,293,065 8,722,393
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 27,621,230 $ 1,284,747 $ 8,779,730
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII T. ROWE PRICE SMALL CAP GROWTH
DIVISION
-------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 383,598 $ 278,411 $ 155,566
--------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 422,353 374,021 404,512
--------------------- -------------------- --------------------
Net investment income (loss).................... (38,755) (95,610) (248,946)
--------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 7,083,773 13,259,903 9,768,650
Realized gains (losses) on sale of investments....... 2,988,428 2,246,255 3,150,255
--------------------- -------------------- --------------------
Net realized gains (losses)..................... 10,072,201 15,506,158 12,918,905
--------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 14,656,850 (3,850,598) (9,935,901)
--------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 24,729,051 11,655,560 2,983,004
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 24,690,296 $ 11,559,950 $ 2,734,058
===================== ==================== ====================
BHFTII VANECK GLOBAL NATURAL RESOURCES
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 290 $ 1,967 $ 974
-------------------- --------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- --------------------- --------------------
Net investment income (loss).................... 290 1,967 974
-------------------- --------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... (3,647) (7,201) (9,795)
-------------------- --------------------- --------------------
Net realized gains (losses)..................... (3,647) (7,201) (9,795)
-------------------- --------------------- --------------------
Change in unrealized gains (losses) on investments... 5,530 88,581 (64,308)
-------------------- --------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 1,883 81,380 (74,103)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 2,173 $ 83,347 $ (73,129)
==================== ===================== ====================
BHFTII WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 2,088,016 $ 831,199 $ 1,322,147
-------------------- --------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 86,369 69,295 32,560
-------------------- --------------------- --------------------
Net investment income (loss).................... 2,001,647 761,904 1,289,587
-------------------- --------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... 364,897 119,058 73,628
-------------------- --------------------- --------------------
Net realized gains (losses)..................... 364,897 119,058 73,628
-------------------- --------------------- --------------------
Change in unrealized gains (losses) on investments... 1,796,363 2,417,251 (1,827,670)
-------------------- --------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 2,161,260 2,536,309 (1,754,042)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 4,162,907 $ 3,298,213 $ (464,455)
==================== ===================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII WESTERN ASSET MANAGEMENT U.S. GOVERNMENT
DIVISION
--------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 418,500 $ 416,577 $ 373,766
--------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... 16,252 16,155 16,226
--------------------- -------------------- --------------------
Net investment income (loss).................... 402,248 400,422 357,540
--------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... (35,219) (10,757) (6,880)
--------------------- -------------------- --------------------
Net realized gains (losses)..................... (35,219) (10,757) (6,880)
--------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... (80,512) (199,711) (270,748)
--------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... (115,731) (210,468) (277,628)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 286,517 $ 189,954 $ 79,912
===================== ==================== ====================
DREYFUS VIF INTERNATIONAL VALUE
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 2,916 $ 3,283 $ 4,421
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- --------------------- ---------------------
Net investment income (loss).................... 2,916 3,283 4,421
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... (300) (5,322) (390)
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... (300) (5,322) (390)
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 51,516 (2,271) (10,460)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 51,216 (7,593) (10,850)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 54,132 $ (4,310) $ (6,429)
===================== ===================== =====================
FIDELITY VIP ASSET MANAGER: GROWTH
DIVISION
--------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 24,598 $ 23,502 $ 20,958
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 24,598 23,502 20,958
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 254,110 25,657 1,145
Realized gains (losses) on sale of investments....... 39,851 35,213 127,820
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 293,961 60,870 128,965
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 9,749 (48,668) (145,469)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 303,710 12,202 (16,504)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 328,308 $ 35,704 $ 4,454
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
FIDELITY VIP CONTRAFUND
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 25,600 $ 18,813 $ 25,926
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- --------------------- ---------------------
Net investment income (loss).................... 25,600 18,813 25,926
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 151,989 215,517 265,481
Realized gains (losses) on sale of investments....... 64,249 49,752 107,564
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 216,238 265,269 373,045
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 321,303 (89,763) (372,526)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 537,541 175,506 519
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 563,141 $ 194,319 $ 26,445
===================== ===================== =====================
FIDELITY VIP EQUITY-INCOME
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 40 $ 351 $ 426
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- --------------------- ---------------------
Net investment income (loss).................... 40 351 426
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 208 873 2,231
Realized gains (losses) on sale of investments....... 645 (15) 275
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 853 858 2,506
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... (214) 1,277 (3,341)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 639 2,135 (835)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 679 $ 2,486 $ (409)
===================== ===================== =====================
FIDELITY VIP FREEDOM 2010
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 2,182 $ 439 $ 361
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- --------------------- ---------------------
Net investment income (loss).................... 2,182 439 361
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 1,201 455 65
Realized gains (losses) on sale of investments....... 700 (28) 5,610
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 1,901 427 5,675
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 324 369 (5,470)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 2,225 796 205
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 4,407 $ 1,235 $ 566
===================== ===================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
FIDELITY VIP FREEDOM 2020
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 8,288 $ 8,579 $ 10,060
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- --------------------- ---------------------
Net investment income (loss).................... 8,288 8,579 10,060
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 15,960 16,688 2,356
Realized gains (losses) on sale of investments....... 17,690 2,623 166,915
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 33,650 19,311 169,271
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 50,769 4,403 (177,998)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 84,419 23,714 (8,727)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 92,707 $ 32,293 $ 1,333
===================== ===================== =====================
FIDELITY VIP FREEDOM 2025
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 7,280 $ 6,677 $ 8,151
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- --------------------- ---------------------
Net investment income (loss).................... 7,280 6,677 8,151
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 13,035 13,619 2,389
Realized gains (losses) on sale of investments....... 687 (312) 231
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 13,722 13,307 2,620
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 58,295 6,315 (13,249)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 72,017 19,622 (10,629)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 79,297 $ 26,299 $ (2,478)
===================== ===================== =====================
FIDELITY VIP FREEDOM 2030
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 3,686 $ 2,599 $ 2,154
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- --------------------- ---------------------
Net investment income (loss).................... 3,686 2,599 2,154
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 7,522 4,822 611
Realized gains (losses) on sale of investments....... 8,178 (1,669) 1,142
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 15,700 3,153 1,753
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 21,517 4,716 (4,989)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 37,217 7,869 (3,236)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 40,903 $ 10,468 $ (1,082)
===================== ===================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
FIDELITY VIP FREEDOM 2040
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 2,654 $ 2,084 $ 1,492
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- --------------------- ---------------------
Net investment income (loss).................... 2,654 2,084 1,492
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 5,908 3,682 541
Realized gains (losses) on sale of investments....... 6,961 (877) 263
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 12,869 2,805 804
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 24,961 5,080 (3,345)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 37,830 7,885 (2,541)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 40,484 $ 9,969 $ (1,049)
===================== ===================== =====================
FIDELITY VIP FREEDOM 2050
DIVISION
--------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 2,270 $ 1,500 $ 878
-------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- --------------------- ---------------------
Net investment income (loss).................... 2,270 1,500 878
-------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 4,679 2,239 308
Realized gains (losses) on sale of investments....... 3,738 (570) 535
-------------------- --------------------- ---------------------
Net realized gains (losses)..................... 8,417 1,669 843
-------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 19,567 2,841 (2,416)
-------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 27,984 4,510 (1,573)
-------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 30,254 $ 6,010 $ (695)
==================== ===================== =====================
FIDELITY VIP GOVERNMENT MONEY MARKET
DIVISION
---------------------------------------------
2017 2016 (c)
--------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 22,875 $ 4,167
--------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- --
--------------------- ---------------------
Net investment income (loss).................... 22,875 4,167
--------------------- ---------------------
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................................... $ 22,875 $ 4,167
===================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
FIDELITY VIP HIGH INCOME
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 24,337 $ 18,971 $ 14,336
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- --------------------- ---------------------
Net investment income (loss).................... 24,337 18,971 14,336
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... (18) (443) (455)
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... (18) (443) (455)
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 2,185 19,200 (20,979)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 2,167 18,757 (21,434)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 26,504 $ 37,728 $ (7,098)
===================== ===================== =====================
FIDELITY VIP INVESTMENT GRADE BOND
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 28,197 $ 28,927 $ 31,506
--------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- --------------------- ---------------------
Net investment income (loss).................... 28,197 28,927 31,506
--------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 5,616 587 993
Realized gains (losses) on sale of investments....... (2,296) (2,116) (839)
--------------------- --------------------- ---------------------
Net realized gains (losses)..................... 3,320 (1,529) 154
--------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 18,959 27,988 (39,907)
--------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 22,279 26,459 (39,753)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 50,476 $ 55,386 $ (8,247)
===================== ===================== =====================
FIDELITY VIP MID CAP
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,285 $ 766 $ 745
--------------------- --------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- --------------------- --------------------
Net investment income (loss).................... 1,285 766 745
--------------------- --------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 12,504 14,495 30,638
Realized gains (losses) on sale of investments....... 3,777 (682) 648
--------------------- --------------------- --------------------
Net realized gains (losses)..................... 16,281 13,813 31,286
--------------------- --------------------- --------------------
Change in unrealized gains (losses) on investments... 31,948 9,442 (36,156)
--------------------- --------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 48,229 23,255 (4,870)
--------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 49,514 $ 24,021 $ (4,125)
===================== ===================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
FTVIPT FRANKLIN INCOME VIP
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 2,194 $ 2,059 $ 1,086
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 2,194 2,059 1,086
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... 186 (110) (154)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 186 (110) (154)
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 6,858 3,968 (2,439)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 7,044 3,858 (2,593)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 9,238 $ 5,917 $ (1,507)
==================== ==================== ====================
FTVIPT FRANKLIN MUTUAL GLOBAL DISCOVERY VIP
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 9,201 $ 8,262 $ 13,670
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 9,201 8,262 13,670
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 29,295 39,176 27,512
Realized gains (losses) on sale of investments....... 1,492 (2,198) 194
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 30,787 36,978 27,706
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 6,135 13,065 (58,851)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 36,922 50,043 (31,145)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 46,123 $ 58,305 $ (17,475)
==================== ==================== ====================
FTVIPT FRANKLIN MUTUAL SHARES VIP
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 2,384 $ 1,664 $ 1,895
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 2,384 1,664 1,895
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 4,324 6,856 4,180
Realized gains (losses) on sale of investments....... (2) (444) 33
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 4,322 6,412 4,213
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 1,445 4,437 (9,723)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 5,767 10,849 (5,510)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 8,151 $ 12,513 $ (3,615)
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
FTVIPT TEMPLETON FOREIGN VIP
DIVISION
-----------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- -------------------
INVESTMENT INCOME:
Dividends............................................ $ 225,978 $ 114,022 $ 189,205
-------------------- -------------------- -------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- -------------------
Net investment income (loss).................... 225,978 114,022 189,205
-------------------- -------------------- -------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- 89,391 177,426
Realized gains (losses) on sale of investments....... 5,599 (69,876) 5,027
-------------------- -------------------- -------------------
Net realized gains (losses)..................... 5,599 19,515 182,453
-------------------- -------------------- -------------------
Change in unrealized gains (losses) on investments... 996,224 260,337 (703,728)
-------------------- -------------------- -------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 1,001,823 279,852 (521,275)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 1,227,801 $ 393,874 $ (332,070)
==================== ==================== ===================
FTVIPT TEMPLETON GLOBAL BOND VIP
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ -- $ -- $ 83,772
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... -- -- 83,772
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 1,934 449 5,274
Realized gains (losses) on sale of investments....... (2,105) (4,156) (97,965)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... (171) (3,707) (92,691)
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 11,918 24,908 (36,601)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 11,747 21,201 (129,292)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 11,747 $ 21,201 $ (45,520)
==================== ==================== ====================
GOLDMAN SACHS MID-CAP VALUE
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 623 $ 1,071 $ 1,118
------------------- ------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
------------------- ------------------- --------------------
Net investment income (loss).................... 623 1,071 1,118
------------------- ------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 4,676 43 20,122
Realized gains (losses) on sale of investments....... 316 (9,872) 671
------------------- ------------------- --------------------
Net realized gains (losses)..................... 4,992 (9,829) 20,793
------------------- ------------------- --------------------
Change in unrealized gains (losses) on investments... 3,256 25,433 (48,920)
------------------- ------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 8,248 15,604 (28,127)
------------------- ------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 8,871 $ 16,675 $ (27,009)
=================== =================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
GOLDMAN SACHS SMALL CAP EQUITY INSIGHTS
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- ---------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 41 $ 413 $ 104
--------------------- ---------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- ---------------------- ---------------------
Net investment income (loss)................... 41 413 104
--------------------- ---------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 836 986 4,391
Realized gains (losses) on sale of investments....... 3,260 (839) 336
--------------------- ---------------------- ---------------------
Net realized gains (losses).................... 4,096 147 4,727
--------------------- ---------------------- ---------------------
Change in unrealized gains (losses) on investments... (3,129) 6,057 (5,505)
--------------------- ---------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 967 6,204 (778)
--------------------- ---------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 1,008 $ 6,617 $ (674)
===================== ====================== =====================
INVESCO V.I. COMSTOCK
DIVISION
-----------------------------------------------------------------------
2017 2016 2015
---------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 10,939 $ 4,913 $ 5,695
---------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
---------------------- --------------------- ---------------------
Net investment income (loss)................... 10,939 4,913 5,695
---------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 23,965 29,536 941
Realized gains (losses) on sale of investments....... 4,332 2,231 3,469
---------------------- --------------------- ---------------------
Net realized gains (losses).................... 28,297 31,767 4,410
---------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 52,013 25,839 (32,126)
---------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 80,310 57,606 (27,716)
---------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 91,249 $ 62,519 $ (22,021)
====================== ===================== =====================
INVESCO V.I. INTERNATIONAL GROWTH
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- ---------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 4,975 $ 4,874 $ 5,017
--------------------- ---------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
--------------------- ---------------------- ---------------------
Net investment income (loss)................... 4,975 4,874 5,017
--------------------- ---------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... 6,211 630 2,637
--------------------- ---------------------- ---------------------
Net realized gains (losses).................... 6,211 630 2,637
--------------------- ---------------------- ---------------------
Change in unrealized gains (losses) on investments... 61,391 (8,246) (13,856)
--------------------- ---------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 67,602 (7,616) (11,219)
--------------------- ---------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 72,577 $ (2,742) $ (6,202)
===================== ====================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
JANUS HENDERSON BALANCED
DIVISION
--------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 15,832 $ 20,153 $ 15,263
-------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- --------------------- ---------------------
Net investment income (loss).................... 15,832 20,153 15,263
-------------------- --------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 2,191 14,217 35,506
Realized gains (losses) on sale of investments....... 11,402 8,012 5,452
-------------------- --------------------- ---------------------
Net realized gains (losses)..................... 13,593 22,229 40,958
-------------------- --------------------- ---------------------
Change in unrealized gains (losses) on investments... 160,350 (19) (51,128)
-------------------- --------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 173,943 22,210 (10,170)
-------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 189,775 $ 42,363 $ 5,093
==================== ===================== =====================
JANUS HENDERSON ENTERPRISE
DIVISION
--------------------------------------------
2017 2016 (d)
-------------------- ---------------------
INVESTMENT INCOME:
Dividends............................................ $ 710 $ 107
-------------------- ---------------------
EXPENSES:
Mortality and expense risk charges................... -- --
-------------------- ---------------------
Net investment income (loss).................... 710 107
-------------------- ---------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 32,459 38,700
Realized gains (losses) on sale of investments....... 20,860 (534)
-------------------- ---------------------
Net realized gains (losses)..................... 53,319 38,166
-------------------- ---------------------
Change in unrealized gains (losses) on investments... 49,008 289
-------------------- ---------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 102,327 38,455
-------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 103,037 $ 38,562
==================== =====================
JANUS HENDERSON FORTY
DIVISION
--------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
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.......................... 29,535 67,914 121,081
Realized gains (losses) on sale of investments....... 20,272 (8,107) 1,569
--------------------- -------------------- --------------------
Net realized gains (losses)..................... 49,807 59,807 122,650
--------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 82,066 (58,944) (57,429)
--------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 131,873 863 65,221
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 131,873 $ 863 $ 65,221
===================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
JANUS HENDERSON OVERSEAS
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 358 $ 1,672 $ 225
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 358 1,672 225
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- 1,129 1,449
Realized gains (losses) on sale of investments....... (10,688) (7,649) (6,243)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... (10,688) (6,520) (4,794)
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 18,215 1,900 363
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 7,527 (4,620) (4,431)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 7,885 $ (2,948) $ (4,206)
==================== ==================== ====================
JANUS HENDERSON RESEARCH
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,234 $ 1,500 $ 2,968
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 1,234 1,500 2,968
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 2,957 17,243 84,817
Realized gains (losses) on sale of investments....... 2,574 45,098 17,674
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 5,531 62,341 102,491
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 68,064 (66,733) (79,472)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 73,595 (4,392) 23,019
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 74,829 $ (2,892) $ 25,987
==================== ==================== ====================
MFS VIT GLOBAL EQUITY
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,698 $ 1,326 $ 1,587
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 1,698 1,326 1,587
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 9,831 9,731 6,506
Realized gains (losses) on sale of investments....... 2,533 695 2,452
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 12,364 10,426 8,958
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 40,361 736 (14,256)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 52,725 11,162 (5,298)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 54,423 $ 12,488 $ (3,711)
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
MFS VIT NEW DISCOVERY
DIVISION
-------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
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.......................... 4,695 9,401 6,957
Realized gains (losses) on sale of investments....... 37,307 (174) 374
--------------------- -------------------- --------------------
Net realized gains (losses)..................... 42,002 9,227 7,331
--------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... (961) 7,467 (11,470)
--------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 41,041 16,694 (4,139)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 41,041 $ 16,694 $ (4,139)
===================== ==================== ====================
MFS VIT VALUE
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 345 $ 369 $ 439
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 345 369 439
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 800 1,629 1,237
Realized gains (losses) on sale of investments....... 847 619 659
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 1,647 2,248 1,896
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 1,235 (76) (2,518)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 2,882 2,172 (622)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 3,227 $ 2,541 $ (183)
==================== ==================== ====================
MFS VIT II HIGH YIELD
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 9,827 $ 9,347 $ 9,868
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 9,827 9,347 9,868
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... (95) (220) (99)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... (95) (220) (99)
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... (254) 9,158 (16,013)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... (349) 8,938 (16,112)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 9,478 $ 18,285 $ (6,244)
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
MORGAN STANLEY VIF EMERGING MARKETS DEBT
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 70,167 $ 59,307 $ 45,047
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 70,167 59,307 45,047
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... (7,471) (12,131) (12,799)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... (7,471) (12,131) (12,799)
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 58,835 45,652 (46,377)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 51,364 33,521 (59,176)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 121,531 $ 92,828 $ (14,129)
==================== ==================== ====================
MORGAN STANLEY VIF EMERGING MARKETS EQUITY
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 29,128 $ 12,938 $ 18,406
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 29,128 12,938 18,406
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... 244,612 (37,991) (24,296)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 244,612 (37,991) (24,296)
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 807,706 171,862 (266,747)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 1,052,318 133,871 (291,043)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 1,081,446 $ 146,809 $ (272,637)
==================== ==================== ====================
PIMCO VIT ALL ASSET
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 6,628 $ 3,261 $ 17,942
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 6,628 3,261 17,942
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... (130) (833) (111,468)
-------------------- -------------------- --------------------
Net realized gains (losses)..................... (130) (833) (111,468)
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 11,089 12,619 38,369
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 10,959 11,786 (73,099)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 17,587 $ 15,047 $ (55,157)
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
PIMCO VIT COMMODITYREALRETURN STRATEGY
DIVISION
-----------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- -------------------
INVESTMENT INCOME:
Dividends............................................ $ 1,293 $ 111 $ 1,467
-------------------- -------------------- -------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- -------------------
Net investment income (loss).................... 1,293 111 1,467
-------------------- -------------------- -------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... (3,603) (957) (11,415)
-------------------- -------------------- -------------------
Net realized gains (losses)..................... (3,603) (957) (11,415)
-------------------- -------------------- -------------------
Change in unrealized gains (losses) on investments... 2,335 2,262 3,408
-------------------- -------------------- -------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... (1,268) 1,305 (8,007)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 25 $ 1,416 $ (6,540)
==================== ==================== ===================
PIMCO VIT LOW DURATION
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 12,109 $ 13,010 $ 29,643
------------------- ------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
------------------- ------------------- --------------------
Net investment income (loss).................... 12,109 13,010 29,643
------------------- ------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... (327) (325) 12,574
------------------- ------------------- --------------------
Net realized gains (losses)..................... (327) (325) 12,574
------------------- ------------------- --------------------
Change in unrealized gains (losses) on investments... 386 (271) (33,266)
------------------- ------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 59 (596) (20,692)
------------------- ------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 12,168 $ 12,414 $ 8,951
=================== =================== ====================
PUTNAM VT INTERNATIONAL VALUE
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 86 $ 122 $ 91
------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
------------------- -------------------- --------------------
Net investment income (loss).................... 86 122 91
------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- -- --
Realized gains (losses) on sale of investments....... 45 (165) (22)
------------------- -------------------- --------------------
Net realized gains (losses)..................... 45 (165) (22)
------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... 1,055 58 (118)
------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments..................................... 1,100 (107) (140)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations.................................... $ 1,186 $ 15 $ (49)
=================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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 -- (CONCLUDED)
FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015
ROYCE MICRO-CAP
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 73 $ 61 $ --
-------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- -------------------- --------------------
Net investment income (loss).................... 73 61 --
-------------------- -------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... 1,139 -- 498
Realized gains (losses) on sale of investments....... 5 71 1
-------------------- -------------------- --------------------
Net realized gains (losses)..................... 1,144 71 499
-------------------- -------------------- --------------------
Change in unrealized gains (losses) on investments... (673) 1,525 (1,557)
-------------------- -------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... 471 1,596 (1,058)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ 544 $ 1,657 $ (1,058)
==================== ==================== ====================
ROYCE SMALL-CAP
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- --------------------
INVESTMENT INCOME:
Dividends............................................ $ 136 $ 1,115 $ 443
-------------------- --------------------- --------------------
EXPENSES:
Mortality and expense risk charges................... -- -- --
-------------------- --------------------- --------------------
Net investment income (loss).................... 136 1,115 443
-------------------- --------------------- --------------------
NET REALIZED AND CHANGES IN UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions.......................... -- 11,025 12,749
Realized gains (losses) on sale of investments....... (13,382) (4,843) 64
-------------------- --------------------- --------------------
Net realized gains (losses)..................... (13,382) 6,182 12,813
-------------------- --------------------- --------------------
Change in unrealized gains (losses) on investments... 13,095 2,799 (19,154)
-------------------- --------------------- --------------------
Net realized and changes in unrealized gains (losses)
on investments.................................... (287) 8,981 (6,341)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................... $ (151) $ 10,096 $ (5,898)
==================== ===================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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 CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015
AB GLOBAL THEMATIC GROWTH
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 88 $ -- $ --
Net realized gains (losses)......................... 2,867 877 4,879
Change in unrealized gains (losses) on investments.. 8,219 (1,193) (2,756)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 11,174 (316) 2,123
------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 1,269 1,269 1,493
Net transfers (including fixed account)............. (9,295) (7,397) (6,753)
Policy charges...................................... (859) (883) (1,929)
Transfers for Policy benefits and terminations...... -- (90) (30,831)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (8,885) (7,101) (38,020)
------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 2,289 (7,417) (35,897)
NET ASSETS:
Beginning of year................................... 32,386 39,803 75,700
------------------- -------------------- --------------------
End of year......................................... $ 34,675 $ 32,386 $ 39,803
=================== ==================== ====================
AB INTERMEDIATE BOND
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 3,922 $ 2,736 $ 2,061
Net realized gains (losses)......................... (2,604) 1,078 1,662
Change in unrealized gains (losses) on investments.. 2,197 49 (3,852)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 3,515 3,863 (129)
------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 644 -- 644
Net transfers (including fixed account)............. 32,033 33,741 2,915
Policy charges...................................... (2,761) (3,112) (2,460)
Transfers for Policy benefits and terminations...... (52,174) -- --
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (22,258) 30,629 1,099
------------------- -------------------- --------------------
Net increase (decrease) in net assets............. (18,743) 34,492 970
NET ASSETS:
Beginning of year................................... 95,051 60,559 59,589
------------------- -------------------- --------------------
End of year......................................... $ 76,308 $ 95,051 $ 60,559
=================== ==================== ====================
AMERICAN FUNDS BOND
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 118,854 $ 100,993 $ 95,558
Net realized gains (losses)......................... 94,447 24,681 113,025
Change in unrealized gains (losses) on investments.. 12,429 45,632 (201,734)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 225,730 171,306 6,849
------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 560,778 594,195 595,751
Net transfers (including fixed account)............. 341,614 266,964 482,848
Policy charges...................................... (355,918) (399,254) (353,117)
Transfers for Policy benefits and terminations...... (446,430) (479,171) (500,127)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 100,044 (17,266) 225,355
------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 325,774 154,040 232,204
NET ASSETS:
Beginning of year................................... 6,362,160 6,208,120 5,975,916
------------------- -------------------- --------------------
End of year......................................... $ 6,687,934 $ 6,362,160 $ 6,208,120
=================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
The accompanying notes are an integral part of these financial statements.
100
The accompanying notes are an integral part of these financial statements.
101
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 219,097 $ 81,134 $ (91,602)
Net realized gains (losses)......................... 493,132 11,903,440 6,923,224
Change in unrealized gains (losses) on investments.. 15,300,486 (10,777,574) (6,348,033)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 16,012,715 1,207,000 483,589
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 4,572,438 4,934,049 5,361,656
Net transfers (including fixed account)............. (860,452) (1,739,842) (992,517)
Policy charges...................................... (3,422,778) (3,505,140) (3,751,216)
Transfers for Policy benefits and terminations...... (4,732,036) (4,322,961) (4,463,980)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (4,442,828) (4,633,894) (3,846,057)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 11,569,887 (3,426,894) (3,362,468)
NET ASSETS:
Beginning of year................................... 63,768,756 67,195,650 70,558,118
-------------------- -------------------- --------------------
End of year......................................... $ 75,338,643 $ 63,768,756 $ 67,195,650
==================== ==================== ====================
AMERICAN FUNDS GROWTH
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 771,061 $ 1,112,235 $ 849,331
Net realized gains (losses)......................... 21,243,802 16,155,775 37,793,980
Change in unrealized gains (losses) on investments.. 23,936,579 (2,560,394) (27,669,113)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from operations................................ 45,951,442 14,707,616 10,974,198
-------------------- -------------------- -------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 9,971,466 10,568,668 11,128,355
Net transfers (including fixed account)............. (2,105,090) (1,947,160) (2,877,301)
Policy charges...................................... (9,064,646) (8,879,484) (8,922,399)
Transfers for Policy benefits and terminations...... (13,311,865) (10,245,919) (10,503,688)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (14,510,135) (10,503,895) (11,175,033)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets............. 31,441,307 4,203,721 (200,835)
NET ASSETS:
Beginning of year................................... 168,913,307 164,709,586 164,910,421
-------------------- -------------------- -------------------
End of year......................................... $ 200,354,614 $ 168,913,307 $ 164,709,586
==================== ==================== ===================
AMERICAN FUNDS GROWTH-INCOME
DIVISION
------------------------------------------------------------------
2017 2016 2015
------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 1,472,840 $ 1,399,526 $ 1,265,966
Net realized gains (losses)......................... 8,935,623 12,245,175 17,136,301
Change in unrealized gains (losses) on investments.. 12,349,992 (2,551,087) (16,929,014)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 22,758,455 11,093,614 1,473,253
------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 6,390,830 6,753,905 7,132,701
Net transfers (including fixed account)............. (931,937) (1,474,231) (706,082)
Policy charges...................................... (5,833,783) (5,885,637) (5,898,040)
Transfers for Policy benefits and terminations...... (7,681,451) (6,406,059) (6,373,610)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (8,056,341) (7,012,022) (5,845,031)
------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 14,702,114 4,081,592 (4,371,778)
NET ASSETS:
Beginning of year................................... 105,740,546 101,658,954 106,030,732
------------------- -------------------- --------------------
End of year......................................... $ 120,442,660 $ 105,740,546 $ 101,658,954
=================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
The accompanying notes are an integral part of these financial statements.
102
The accompanying notes are an integral part of these financial statements.
103
METROPOLITAN LIFE SEPARATE ACCOUNT UL
OF METROPOLITAN LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015
AMERICAN FUNDS
HIGH-INCOME BOND
DIVISION
--------------------
2017 (a)
--------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 468
Net realized gains (losses)......................... --
Change in unrealized gains (losses) on investments.. (375)
--------------------
Net increase (decrease) in net assets resulting
from operations................................ 93
--------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ --
Net transfers (including fixed account)............. 8,614
Policy charges...................................... (55)
Transfers for Policy benefits and terminations...... --
--------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 8,559
--------------------
Net increase (decrease) in net assets............. 8,652
NET ASSETS:
Beginning of year................................... --
--------------------
End of year......................................... $ 8,652
====================
AMERICAN FUNDS INTERNATIONAL
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 7,618 $ 4,799 $ 7,125
Net realized gains (losses)......................... 14,001 21,338 53,336
Change in unrealized gains (losses) on investments.. 132,723 (18,823) (72,634)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 154,342 7,314 (12,173)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 37,367 2,192 6,030
Net transfers (including fixed account)............. 217,535 -- (251,186)
Policy charges...................................... (15,980) (6,055) (9,566)
Transfers for Policy benefits and terminations...... (88,369) (70,171) --
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 150,553 (74,034) (254,722)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 304,895 (66,720) (266,895)
NET ASSETS:
Beginning of year................................... 348,390 415,110 682,005
-------------------- -------------------- --------------------
End of year......................................... $ 653,285 $ 348,390 $ 415,110
==================== ==================== ====================
AMERICAN FUNDS U.S. GOVERNMENT/AAA-RATED SECURITIES
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 724 $ 737 $ 712
Net realized gains (losses)......................... (41) 968 401
Change in unrealized gains (losses) on investments.. 178 (1,163) (350)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 861 542 763
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 1,253 5,191 2,595
Net transfers (including fixed account)............. 1 9 1
Policy charges...................................... (1,725) (1,778) (1,568)
Transfers for Policy benefits and terminations...... -- -- --
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (471) 3,422 1,028
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 390 3,964 1,791
NET ASSETS:
Beginning of year................................... 54,307 50,343 48,552
-------------------- -------------------- --------------------
End of year......................................... $ 54,697 $ 54,307 $ 50,343
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI AB GLOBAL DYNAMIC ALLOCATION
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 1,050 $ 977 $ 2,180
Net realized gains (losses)......................... 227 430 2,222
Change in unrealized gains (losses) on investments.. 7,735 769 (4,443)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 9,012 2,176 (41)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 14,853 15,256 16,182
Net transfers (including fixed account)............. 4,736 (2,468) 8,940
Policy charges...................................... (8,465) (8,319) (9,589)
Transfers for Policy benefits and terminations...... (2,345) (5,916) (4,204)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 8,779 (1,447) 11,329
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 17,791 729 11,288
NET ASSETS:
Beginning of year................................... 61,910 61,181 49,893
-------------------- -------------------- --------------------
End of year......................................... $ 79,701 $ 61,910 $ 61,181
==================== ==================== ====================
BHFTI ALLIANZ GLOBAL INVESTORS DYNAMIC MULTI-ASSET PLUS
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 94 $ 2 $ 21
Net realized gains (losses)......................... 101 (12) (259)
Change in unrealized gains (losses) on investments.. 685 80 (72)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 880 70 (310)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 3,038 3,715 1,892
Net transfers (including fixed account)............. 19 274 1,102
Policy charges...................................... (1,306) (1,293) (645)
Transfers for Policy benefits and terminations...... (851) -- (95)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 900 2,696 2,254
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 1,780 2,766 1,944
NET ASSETS:
Beginning of year................................... 4,786 2,020 76
-------------------- -------------------- --------------------
End of year......................................... $ 6,566 $ 4,786 $ 2,020
==================== ==================== ====================
BHFTI AMERICAN FUNDS BALANCED ALLOCATION
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 19,259 $ 18,208 $ 15,506
Net realized gains (losses)......................... 55,792 76,946 49,693
Change in unrealized gains (losses) on investments.. 98,370 (22,963) (69,036)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 173,421 72,191 (3,837)
-------------------- --------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 143,128 85,094 112,261
Net transfers (including fixed account)............. (1,238) 21,073 (10,152)
Policy charges...................................... (81,299) (69,192) (60,959)
Transfers for Policy benefits and terminations...... (8,464) (12,455) (19,938)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 52,127 24,520 21,212
-------------------- --------------------- --------------------
Net increase (decrease) in net assets............. 225,548 96,711 17,375
NET ASSETS:
Beginning of year................................... 990,764 894,053 876,678
-------------------- --------------------- --------------------
End of year......................................... $ 1,216,312 $ 990,764 $ 894,053
==================== ===================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI AMERICAN FUNDS GROWTH ALLOCATION
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 29,710 $ 26,959 $ 24,524
Net realized gains (losses)......................... 127,888 160,188 110,834
Change in unrealized gains (losses) on investments.. 236,441 (37,021) (141,365)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 394,039 150,126 (6,007)
------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 312,058 271,362 284,585
Net transfers (including fixed account)............. 23,444 26,046 (51,416)
Policy charges...................................... (159,833) (153,833) (138,948)
Transfers for Policy benefits and terminations...... (46,322) (70,269) (45,437)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 129,347 73,306 48,784
------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 523,386 223,432 42,777
NET ASSETS:
Beginning of year................................... 1,761,546 1,538,114 1,495,337
------------------- -------------------- --------------------
End of year......................................... $ 2,284,932 $ 1,761,546 $ 1,538,114
=================== ==================== ====================
BHFTI AMERICAN FUNDS MODERATE ALLOCATION
DIVISION
-----------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 27,088 $ 23,999 $ 17,019
Net realized gains (losses)......................... 55,639 67,729 52,885
Change in unrealized gains (losses) on investments.. 80,012 (16,232) (73,320)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from operations................................ 162,739 75,496 (3,416)
-------------------- -------------------- -------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 283,128 234,792 222,467
Net transfers (including fixed account)............. 6,385 22,400 58,079
Policy charges...................................... (137,260) (128,785) (117,193)
Transfers for Policy benefits and terminations...... (28,322) (14,859) (211,042)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 123,931 113,548 (47,689)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets............. 286,670 189,044 (51,105)
NET ASSETS:
Beginning of year................................... 1,158,636 969,592 1,020,697
-------------------- -------------------- -------------------
End of year......................................... $ 1,445,306 $ 1,158,636 $ 969,592
==================== ==================== ===================
BHFTI AQR GLOBAL RISK BALANCED
DIVISION
-----------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,366 $ -- $ 7,434
Net realized gains (losses)......................... 4,688 (7,843) 10,796
Change in unrealized gains (losses) on investments.. 6,767 18,548 (30,868)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from operations................................ 13,821 10,705 (12,638)
-------------------- -------------------- -------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 32,619 40,240 47,166
Net transfers (including fixed account)............. (4,180) (10,383) (53,166)
Policy charges...................................... (14,372) (20,166) (21,458)
Transfers for Policy benefits and terminations...... (2,595) (19,162) (5,275)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 11,472 (9,471) (32,733)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets............. 25,293 1,234 (45,371)
NET ASSETS:
Beginning of year................................... 135,878 134,644 180,015
-------------------- -------------------- -------------------
End of year......................................... $ 161,171 $ 135,878 $ 134,644
==================== ==================== ===================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI BLACKROCK GLOBAL TACTICAL STRATEGIES
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,651 $ 4,216 $ 3,577
Net realized gains (losses)......................... 4,666 23,013 9,345
Change in unrealized gains (losses) on investments.. 40,461 (13,208) (14,933)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 47,778 14,021 (2,011)
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 85,970 84,543 68,269
Net transfers (including fixed account)............. 3,878 26,959 617
Policy charges...................................... (28,027) (25,547) (22,928)
Transfers for Policy benefits and terminations...... (3,363) (9,699) (8,345)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 58,458 76,256 37,613
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............. 106,236 90,277 35,602
NET ASSETS:
Beginning of year................................... 317,436 227,159 191,557
--------------------- --------------------- ---------------------
End of year......................................... $ 423,672 $ 317,436 $ 227,159
===================== ===================== =====================
BHFTI BRIGHTHOUSE ASSET ALLOCATION 100
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 333,898 $ 509,053 $ 306,462
Net realized gains (losses)......................... 1,627,226 2,766,221 1,897,763
Change in unrealized gains (losses) on investments.. 2,972,083 (1,391,486) (2,617,113)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 4,933,207 1,883,788 (412,888)
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 2,127,500 2,219,202 2,468,258
Net transfers (including fixed account)............. (38,240) (470,839) (542,629)
Policy charges...................................... (1,156,903) (1,181,948) (1,172,423)
Transfers for Policy benefits and terminations...... (2,194,731) (1,188,155) (791,081)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (1,262,374) (621,740) (37,875)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............. 3,670,833 1,262,048 (450,763)
NET ASSETS:
Beginning of year................................... 21,704,625 20,442,577 20,893,340
--------------------- --------------------- ---------------------
End of year......................................... $ 25,375,458 $ 21,704,625 $ 20,442,577
===================== ===================== =====================
BHFTI BRIGHTHOUSE BALANCED PLUS
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 5,462 $ 7,951 $ 4,773
Net realized gains (losses)......................... 18,235 2,123 10,549
Change in unrealized gains (losses) on investments.. 35,046 12,397 (26,058)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 58,743 22,471 (10,736)
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 76,917 69,223 60,907
Net transfers (including fixed account)............. 18,013 10,477 16,180
Policy charges...................................... (39,341) (34,809) (31,093)
Transfers for Policy benefits and terminations...... (33,545) (11,096) (10,066)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 22,044 33,795 35,928
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............. 80,787 56,266 25,192
NET ASSETS:
Beginning of year................................... 316,959 260,693 235,501
--------------------- --------------------- ---------------------
End of year......................................... $ 397,746 $ 316,959 $ 260,693
===================== ===================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI BRIGHTHOUSE SMALL CAP VALUE
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 6,610 $ 8,421 $ 800
Net realized gains (losses)......................... 35,468 (9,536) 312,062
Change in unrealized gains (losses) on investments.. 41,355 191,373 (358,930)
------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from operations................................ 83,433 190,258 (46,068)
------------------- ------------------- -------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 13,771 27,558 9,270
Net transfers (including fixed account)............. (68,948) (158,661) (679)
Policy charges...................................... (16,210) (18,270) (21,127)
Transfers for Policy benefits and terminations...... (173) (68,518) (3,611)
------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (71,560) (217,891) (16,147)
------------------- ------------------- -------------------
Net increase (decrease) in net assets............. 11,873 (27,633) (62,215)
NET ASSETS:
Beginning of year................................... 774,395 802,028 864,243
------------------- ------------------- -------------------
End of year......................................... $ 786,268 $ 774,395 $ 802,028
=================== =================== ===================
BHFTI BRIGHTHOUSE/ABERDEEN EMERGING MARKETS EQUITY
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 9,611 $ 6,049 $ 10,228
Net realized gains (losses)......................... 7,574 (30,698) (4,559)
Change in unrealized gains (losses) on investments.. 170,725 89,323 (82,085)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 187,910 64,674 (76,416)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 102,644 132,505 116,005
Net transfers (including fixed account)............. 21,155 50,504 29,215
Policy charges...................................... (36,046) (33,644) (40,363)
Transfers for Policy benefits and terminations...... (49,717) (100,287) (11,079)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 38,036 49,078 93,778
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 225,946 113,752 17,362
NET ASSETS:
Beginning of year................................... 652,237 538,485 521,123
-------------------- -------------------- --------------------
End of year......................................... $ 878,183 $ 652,237 $ 538,485
==================== ==================== ====================
BHFTI BRIGHTHOUSE/TEMPLETON INTERNATIONAL BOND
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ -- $ -- $ 16,491
Net realized gains (losses)......................... (1,348) (1,685) (5,183)
Change in unrealized gains (losses) on investments.. 2,100 4,976 (19,099)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 752 3,291 (7,791)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 55,578 49,471 46,145
Net transfers (including fixed account)............. 3,740 10,118 (9,888)
Policy charges...................................... (21,986) (19,999) (17,243)
Transfers for Policy benefits and terminations...... (5,055) (7,706) (1,587)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 32,277 31,884 17,427
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 33,029 35,175 9,636
NET ASSETS:
Beginning of year................................... 218,676 183,501 173,865
-------------------- -------------------- --------------------
End of year......................................... $ 251,705 $ 218,676 $ 183,501
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI BRIGHTHOUSE/WELLINGTON LARGE CAP RESEARCH
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,553,091 $ 7,597,726 $ 1,822,832
Net realized gains (losses)......................... 25,305,541 31,080,785 36,321,046
Change in unrealized gains (losses) on investments.. 57,041,217 (8,253,818) (21,509,605)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 84,899,849 30,424,693 16,634,273
-------------------- --------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 23,708,302 24,784,013 25,871,596
Net transfers (including fixed account)............. (10,690,456) (2,994,332) (1,616,660)
Policy charges...................................... (25,868,642) (26,012,789) (25,907,001)
Transfers for Policy benefits and terminations...... (22,138,025) (21,189,207) (22,796,743)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (34,988,821) (25,412,315) (24,448,808)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets............. 49,911,028 5,012,378 (7,814,535)
NET ASSETS:
Beginning of year................................... 409,625,033 404,612,655 412,427,190
-------------------- --------------------- --------------------
End of year......................................... $ 459,536,061 $ 409,625,033 $ 404,612,655
==================== ===================== ====================
BHFTI CLARION GLOBAL REAL ESTATE
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 1,026,146 $ 650,259 $ 1,202,742
Net realized gains (losses)......................... 11,186 31,945 48,531
Change in unrealized gains (losses) on investments.. 1,949,598 (362,033) (1,654,271)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 2,986,930 320,171 (402,998)
-------------------- --------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 1,960,709 2,067,349 2,178,317
Net transfers (including fixed account)............. 293,430 (931,910) (643,155)
Policy charges...................................... (1,382,360) (1,519,377) (1,546,835)
Transfers for Policy benefits and terminations...... (1,474,396) (1,814,112) (1,529,344)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (602,617) (2,198,050) (1,541,017)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets............. 2,384,313 (1,877,879) (1,944,015)
NET ASSETS:
Beginning of year................................... 27,646,710 29,524,589 31,468,604
-------------------- --------------------- --------------------
End of year......................................... $ 30,031,023 $ 27,646,710 $ 29,524,589
==================== ===================== ====================
BHFTI CLEARBRIDGE AGGRESSIVE GROWTH
DIVISION
-------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 373,095 $ 233,927 $ 153,096
Net realized gains (losses)......................... 1,758,844 970,623 1,820,551
Change in unrealized gains (losses) on investments.. 5,283,206 (103,509) (3,670,688)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 7,415,145 1,101,041 (1,697,041)
--------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 2,977,490 3,112,659 3,350,304
Net transfers (including fixed account)............. (1,093,022) (1,658,736) (548,727)
Policy charges...................................... (2,255,371) (2,334,139) (2,487,088)
Transfers for Policy benefits and terminations...... (3,530,000) (2,140,654) (2,989,221)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (3,900,903) (3,020,870) (2,674,732)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 3,514,242 (1,919,829) (4,371,773)
NET ASSETS:
Beginning of year................................... 40,986,942 42,906,771 47,278,544
--------------------- -------------------- --------------------
End of year......................................... $ 44,501,184 $ 40,986,942 $ 42,906,771
===================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI HARRIS OAKMARK INTERNATIONAL
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 751,312 $ 812,952 $ 1,300,814
Net realized gains (losses)......................... 298,648 1,774,522 3,930,024
Change in unrealized gains (losses) on investments.. 10,649,156 446,527 (6,964,997)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 11,699,116 3,034,001 (1,734,159)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 2,813,108 2,947,689 3,189,787
Net transfers (including fixed account)............. (487,527) (726,193) 74,671
Policy charges...................................... (2,050,005) (1,927,311) (2,084,965)
Transfers for Policy benefits and terminations...... (3,161,406) (2,331,900) (2,507,280)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (2,885,830) (2,037,715) (1,327,787)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 8,813,286 996,286 (3,061,946)
NET ASSETS:
Beginning of year................................... 39,465,106 38,468,820 41,530,766
-------------------- -------------------- --------------------
End of year......................................... $ 48,278,392 $ 39,465,106 $ 38,468,820
==================== ==================== ====================
BHFTI INVESCO BALANCED-RISK ALLOCATION
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 1,933 $ 63 $ 1,200
Net realized gains (losses)......................... 2,680 (528) 1,727
Change in unrealized gains (losses) on investments.. 724 4,887 (4,753)
-------------------- -------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 5,337 4,422 (1,826)
-------------------- -------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 16,796 15,956 16,400
Net transfers (including fixed account)............. 2,860 (1,153) 2,103
Policy charges...................................... (6,613) (5,759) (5,388)
Transfers for Policy benefits and terminations...... -- (6,082) (3,815)
-------------------- -------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 13,043 2,962 9,300
-------------------- -------------------- ---------------------
Net increase (decrease) in net assets............. 18,380 7,384 7,474
NET ASSETS:
Beginning of year................................... 45,859 38,475 31,001
-------------------- -------------------- ---------------------
End of year......................................... $ 64,239 $ 45,859 $ 38,475
==================== ==================== =====================
BHFTI INVESCO SMALL CAP GROWTH
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ (8,930) $ (8,076) $ 487
Net realized gains (losses)......................... 689,902 1,026,683 1,775,499
Change in unrealized gains (losses) on investments.. 961,544 (318,719) (1,866,286)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 1,642,516 699,888 (90,300)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 384,742 407,148 432,154
Net transfers (including fixed account)............. (138,396) (213,557) (314,953)
Policy charges...................................... (302,479) (295,102) (309,254)
Transfers for Policy benefits and terminations...... (470,556) (427,897) (252,225)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (526,689) (529,408) (444,278)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 1,115,827 170,480 (534,578)
NET ASSETS:
Beginning of year................................... 6,722,591 6,552,111 7,086,689
-------------------- -------------------- --------------------
End of year......................................... $ 7,838,418 $ 6,722,591 $ 6,552,111
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI JPMORGAN GLOBAL ACTIVE ALLOCATION
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 5,628 $ 3,855 $ 5,107
Net realized gains (losses)......................... 761 2,581 8,733
Change in unrealized gains (losses) on investments.. 28,770 (1,187) (12,813)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 35,159 5,249 1,027
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 39,817 41,651 43,757
Net transfers (including fixed account)............. 2,080 2,362 (2,180)
Policy charges...................................... (26,387) (25,382) (25,286)
Transfers for Policy benefits and terminations...... (3,100) (6,113) (2,835)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 12,410 12,518 13,456
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 47,569 17,767 14,483
NET ASSETS:
Beginning of year................................... 203,391 185,624 171,141
-------------------- -------------------- --------------------
End of year......................................... $ 250,960 $ 203,391 $ 185,624
==================== ==================== ====================
BHFTI JPMORGAN SMALL CAP VALUE
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 7,780 $ 6,286 $ 4,196
Net realized gains (losses)......................... 40,858 24,634 25,929
Change in unrealized gains (losses) on investments.. (24,944) 79,671 (52,802)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 23,694 110,591 (22,677)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 51,003 42,502 42,823
Net transfers (including fixed account)............. 9,535 (23,758) 19,637
Policy charges...................................... (31,389) (27,602) (22,975)
Transfers for Policy benefits and terminations...... (18,537) (2,886) (1,767)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 10,612 (11,744) 37,718
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 34,306 98,847 15,041
NET ASSETS:
Beginning of year................................... 409,299 310,452 295,411
-------------------- -------------------- --------------------
End of year......................................... $ 443,605 $ 409,299 $ 310,452
==================== ==================== ====================
BHFTI LOOMIS SAYLES GLOBAL MARKETS
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 6,635 $ 6,758 $ 7,875
Net realized gains (losses)......................... 8,512 12,698 18,423
Change in unrealized gains (losses) on investments.. 71,276 (1,350) (13,993)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 86,423 18,106 12,305
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 55,503 52,697 43,858
Net transfers (including fixed account)............. (831) 16,922 (6,677)
Policy charges...................................... (36,611) (36,634) (35,911)
Transfers for Policy benefits and terminations...... (26,763) (6,534) (109,930)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (8,702) 26,451 (108,660)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 77,721 44,557 (96,355)
NET ASSETS:
Beginning of year................................... 371,582 327,025 423,380
-------------------- -------------------- --------------------
End of year......................................... $ 449,303 $ 371,582 $ 327,025
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI METLIFE MULTI-INDEX TARGETED RISK
DIVISION
------------------------------------------------------------------
2017 2016 2015
------------------- ------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,477 $ 1,944 $ 1,398
Net realized gains (losses)......................... 6,306 (37) 4,170
Change in unrealized gains (losses) on investments.. 15,712 4,590 (7,672)
------------------- ------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 24,495 6,497 (2,104)
------------------- ------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 24,213 27,195 18,161
Net transfers (including fixed account)............. (7,266) 14,107 13,332
Policy charges...................................... (15,476) (14,951) (11,516)
Transfers for Policy benefits and terminations...... (17,570) (583) (3,193)
------------------- ------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (16,099) 25,768 16,784
------------------- ------------------- --------------------
Net increase (decrease) in net assets............. 8,396 32,265 14,680
NET ASSETS:
Beginning of year................................... 168,352 136,087 121,407
------------------- ------------------- --------------------
End of year......................................... $ 176,748 $ 168,352 $ 136,087
=================== =================== ====================
BHFTI MFS RESEARCH INTERNATIONAL
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 348,583 $ 363,202 $ 548,242
Net realized gains (losses)......................... 120,626 (113,918) 34,366
Change in unrealized gains (losses) on investments.. 4,288,325 (396,420) (864,226)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 4,757,534 (147,136) (281,618)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 991,117 1,065,950 1,136,865
Net transfers (including fixed account)............. (330,753) (137,625) (166,293)
Policy charges...................................... (838,473) (829,989) (883,299)
Transfers for Policy benefits and terminations...... (1,056,169) (900,863) (790,282)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (1,234,278) (802,527) (703,009)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 3,523,256 (949,663) (984,627)
NET ASSETS:
Beginning of year................................... 17,206,100 18,155,763 19,140,390
-------------------- -------------------- --------------------
End of year......................................... $ 20,729,356 $ 17,206,100 $ 18,155,763
==================== ==================== ====================
BHFTI MORGAN STANLEY MID CAP GROWTH
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 122,364 $ (581,093) $ (686,901)
Net realized gains (losses)......................... 6,098,517 3,185,085 4,836,759
Change in unrealized gains (losses) on investments.. 66,869,811 (20,525,720) (15,427,415)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from operations................................ 73,090,692 (17,921,728) (11,277,557)
-------------------- -------------------- -------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 16,448,838 17,390,742 17,952,987
Net transfers (including fixed account)............. (1,158,342) (2,231,512) (1,160,187)
Policy charges...................................... (13,161,117) (12,792,889) (13,674,535)
Transfers for Policy benefits and terminations...... (13,535,181) (10,991,989) (13,144,136)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (11,405,802) (8,625,648) (10,025,871)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets............. 61,684,890 (26,547,376) (21,303,428)
NET ASSETS:
Beginning of year................................... 186,034,522 212,581,898 233,885,326
-------------------- -------------------- -------------------
End of year......................................... $ 247,719,412 $ 186,034,522 $ 212,581,898
==================== ==================== ===================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI OPPENHEIMER GLOBAL EQUITY
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 488,347 $ 427,792 $ 504,420
Net realized gains (losses)......................... 2,246,334 3,311,875 2,578,733
Change in unrealized gains (losses) on investments.. 14,255,607 (3,785,262) (1,183,054)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 16,990,288 (45,595) 1,900,099
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 3,244,364 2,752,403 2,885,208
Net transfers (including fixed account)............. 678,986 (1,108,515) 1,263,650
Policy charges...................................... (2,364,753) (2,302,561) (2,404,251)
Transfers for Policy benefits and terminations...... (3,776,926) (2,511,117) (2,602,123)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (2,218,329) (3,169,790) (857,516)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 14,771,959 (3,215,385) 1,042,583
NET ASSETS:
Beginning of year................................... 46,257,719 49,473,104 48,430,521
-------------------- -------------------- --------------------
End of year......................................... $ 61,029,678 $ 46,257,719 $ 49,473,104
==================== ==================== ====================
BHFTI PANAGORA GLOBAL DIVERSIFIED RISK
DIVISION
------------------------------------------------------------------
2017 2016 2015 (b)
------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ -- $ -- $ 50
Net realized gains (losses)......................... 81 1 (295)
Change in unrealized gains (losses) on investments.. 16 (1) 1
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 97 -- (244)
------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 313 29 41
Net transfers (including fixed account)............. 59 -- 440
Policy charges...................................... (141) (24) (64)
Transfers for Policy benefits and terminations...... (15) -- (163)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 216 5 254
------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 313 5 10
NET ASSETS:
Beginning of year................................... 15 10 --
------------------- -------------------- --------------------
End of year......................................... $ 328 $ 15 $ 10
=================== ==================== ====================
BHFTI PIMCO INFLATION PROTECTED BOND
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 167,202 $ (17,989) $ 540,055
Net realized gains (losses)......................... (123,809) (134,822) (211,211)
Change in unrealized gains (losses) on investments.. 327,314 652,775 (655,945)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 370,707 499,964 (327,101)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 814,655 856,782 942,996
Net transfers (including fixed account)............. 43,919 (25,570) (578,943)
Policy charges...................................... (608,502) (670,606) (670,899)
Transfers for Policy benefits and terminations...... (685,248) (448,728) (496,484)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (435,176) (288,122) (803,330)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. (64,469) 211,842 (1,130,431)
NET ASSETS:
Beginning of year................................... 10,359,389 10,147,547 11,277,978
-------------------- -------------------- --------------------
End of year......................................... $ 10,294,920 $ 10,359,389 $ 10,147,547
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI PIMCO TOTAL RETURN
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 797,234 $ 1,176,644 $ 2,443,284
Net realized gains (losses)......................... 136,512 (107,899) 504,809
Change in unrealized gains (losses) on investments.. 1,034,223 134,407 (2,854,535)
-------------------- -------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 1,967,969 1,203,152 93,558
-------------------- -------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 3,438,184 3,607,110 3,809,014
Net transfers (including fixed account)............. 446,327 (511,885) (1,054,727)
Policy charges...................................... (2,583,508) (2,866,241) (2,872,640)
Transfers for Policy benefits and terminations...... (2,772,964) (2,911,492) (2,635,927)
-------------------- -------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (1,471,961) (2,682,508) (2,754,280)
-------------------- -------------------- ---------------------
Net increase (decrease) in net assets............. 496,008 (1,479,356) (2,660,722)
NET ASSETS:
Beginning of year................................... 42,840,892 44,320,248 46,980,970
-------------------- -------------------- ---------------------
End of year......................................... $ 43,336,900 $ 42,840,892 $ 44,320,248
==================== ==================== =====================
BHFTI SCHRODERS GLOBAL MULTI-ASSET
DIVISION
-------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 508 $ 675 $ 467
Net realized gains (losses)......................... 1,474 647 1,436
Change in unrealized gains (losses) on investments.. 6,574 1,558 (2,611)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 8,556 2,880 (708)
--------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 17,420 20,016 11,927
Net transfers (including fixed account)............. 1,670 3,252 948
Policy charges...................................... (7,406) (7,221) (5,687)
Transfers for Policy benefits and terminations...... (343) (4,272) (605)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 11,341 11,775 6,583
--------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 19,897 14,655 5,875
NET ASSETS:
Beginning of year................................... 52,316 37,661 31,786
--------------------- -------------------- --------------------
End of year......................................... $ 72,213 $ 52,316 $ 37,661
===================== ==================== ====================
BHFTI SCHRODERS GLOBAL MULTI-ASSET II
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 116 $ 47 $ 86
Net realized gains (losses)......................... 44 7 978
Change in unrealized gains (losses) on investments.. 1,539 239 (255)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 1,699 293 809
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 6,204 6,148 3,971
Net transfers (including fixed account)............. 104 421 96
Policy charges...................................... (2,164) (1,837) (2,087)
Transfers for Policy benefits and terminations...... -- (196) (755)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 4,144 4,536 1,225
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 5,843 4,829 2,034
NET ASSETS:
Beginning of year................................... 8,438 3,609 1,575
-------------------- -------------------- --------------------
End of year......................................... $ 14,281 $ 8,438 $ 3,609
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI SSGA GROWTH AND INCOME ETF
DIVISION
----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 211,600 $ 193,418 $ 191,488
Net realized gains (losses)......................... 56,990 422,233 507,278
Change in unrealized gains (losses) on investments.. 993,368 (166,860) (845,948)
------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from operations................................. 1,261,958 448,791 (147,182)
------------------- ------------------- -------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 707,289 817,890 902,958
Net transfers (including fixed account)............. (395,331) (55,673) (56,759)
Policy charges...................................... (484,758) (475,048) (487,928)
Transfers for Policy benefits and terminations...... (344,355) (255,414) (287,368)
------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from Policy transactions........................ (517,155) 31,755 70,903
------------------- ------------------- -------------------
Net increase (decrease) in net assets............. 744,803 480,546 (76,279)
NET ASSETS:
Beginning of year................................... 8,122,289 7,641,743 7,718,022
------------------- ------------------- -------------------
End of year......................................... $ 8,867,092 $ 8,122,289 $ 7,641,743
=================== =================== ===================
BHFTI SSGA GROWTH ETF
DIVISION
----------------------------------------------------------------
2017 2016 2015
-------------------- ------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 175,627 $ 152,958 $ 144,898
Net realized gains (losses)......................... 153,525 388,499 399,376
Change in unrealized gains (losses) on investments.. 1,057,422 (116,079) (699,498)
-------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from operations................................. 1,386,574 425,378 (155,224)
-------------------- ------------------- -------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 760,215 957,099 1,101,174
Net transfers (including fixed account)............. (687,768) (419,927) 27,146
Policy charges...................................... (319,979) (381,379) (371,675)
Transfers for Policy benefits and terminations...... (266,828) (150,373) (335,865)
-------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from Policy transactions........................ (514,360) 5,420 420,780
-------------------- ------------------- -------------------
Net increase (decrease) in net assets............. 872,214 430,798 265,556
NET ASSETS:
Beginning of year................................... 7,142,017 6,711,219 6,445,663
-------------------- ------------------- -------------------
End of year......................................... $ 8,014,231 $ 7,142,017 $ 6,711,219
==================== =================== ===================
BHFTI T. ROWE PRICE LARGE CAP VALUE
DIVISION
----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 56,019 $ 63,487 $ 36,741
Net realized gains (losses)......................... 218,915 264,852 91,303
Change in unrealized gains (losses) on investments.. 129,307 1,148 (197,956)
------------------- ------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................. 404,241 329,487 (69,912)
------------------- ------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 3,636 4,540 7,472
Net transfers (including fixed account)............. 45,576 57,340 (203,997)
Policy charges...................................... (34,475) (30,407) (30,931)
Transfers for Policy benefits and terminations...... (8) (63,517) (68,966)
------------------- ------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions........................ 14,729 (32,044) (296,422)
------------------- ------------------- --------------------
Net increase (decrease) in net assets............. 418,970 297,443 (366,334)
NET ASSETS:
Beginning of year................................... 2,327,000 2,029,557 2,395,891
------------------- ------------------- --------------------
End of year......................................... $ 2,745,970 $ 2,327,000 $ 2,029,557
=================== =================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTI T. ROWE PRICE MID CAP GROWTH
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ (53,030) $ (45,975) $ (45,309)
Net realized gains (losses)......................... 3,596,966 5,204,270 5,782,950
Change in unrealized gains (losses) on investments.. 4,985,555 (3,017,999) (3,612,484)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 8,529,491 2,140,296 2,125,157
-------------------- --------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 2,065,072 2,103,996 2,017,424
Net transfers (including fixed account)............. 456,210 419,067 2,394,912
Policy charges...................................... (1,760,965) (1,724,543) (1,635,548)
Transfers for Policy benefits and terminations...... (2,147,279) (2,214,117) (2,115,852)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (1,386,962) (1,415,597) 660,936
-------------------- --------------------- --------------------
Net increase (decrease) in net assets............. 7,142,529 724,699 2,786,093
NET ASSETS:
Beginning of year................................... 34,743,933 34,019,234 31,233,141
-------------------- --------------------- --------------------
End of year......................................... $ 41,886,462 $ 34,743,933 $ 34,019,234
==================== ===================== ====================
BHFTI VICTORY SYCAMORE MID CAP VALUE
DIVISION
--------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 924,664 $ 650,034 $ 563,734
Net realized gains (losses)......................... 763,180 3,900,369 5,178,767
Change in unrealized gains (losses) on investments.. 6,544,581 7,673,646 (13,696,346)
--------------------- -------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 8,232,425 12,224,049 (7,953,845)
--------------------- -------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 5,231,778 5,540,189 5,923,611
Net transfers (including fixed account)............. (641,335) (1,504,903) 396,833
Policy charges...................................... (4,566,534) (4,725,378) (5,050,098)
Transfers for Policy benefits and terminations...... (5,546,494) (5,462,656) (5,269,245)
--------------------- -------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (5,522,585) (6,152,748) (3,998,899)
--------------------- -------------------- ---------------------
Net increase (decrease) in net assets............. 2,709,840 6,071,301 (11,952,744)
NET ASSETS:
Beginning of year................................... 88,992,742 82,921,441 94,874,185
--------------------- -------------------- ---------------------
End of year......................................... $ 91,702,582 $ 88,992,742 $ 82,921,441
===================== ==================== =====================
BHFTII BAILLIE GIFFORD INTERNATIONAL STOCK
DIVISION
--------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 343,329 $ 447,534 $ 519,877
Net realized gains (losses)......................... 322,047 (310,525) (206,507)
Change in unrealized gains (losses) on investments.. 12,519,996 1,728,920 (1,227,962)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 13,185,372 1,865,929 (914,592)
--------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 3,220,885 3,389,861 3,575,231
Net transfers (including fixed account)............. (148,010) (547,175) (179,571)
Policy charges...................................... (2,700,122) (2,612,067) (2,610,457)
Transfers for Policy benefits and terminations...... (2,532,657) (2,000,028) (2,221,523)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (2,159,904) (1,769,409) (1,436,320)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 11,025,468 96,520 (2,350,912)
NET ASSETS:
Beginning of year................................... 38,958,130 38,861,610 41,212,522
--------------------- -------------------- --------------------
End of year......................................... $ 49,983,598 $ 38,958,130 $ 38,861,610
===================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII BLACKROCK BOND INCOME
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,139,278 $ 2,253,120 $ 2,849,615
Net realized gains (losses)......................... (33,084) 30,488 913,996
Change in unrealized gains (losses) on investments.. 749,028 (97,803) (3,544,439)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 2,855,222 2,185,805 219,172
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 5,963,012 6,132,147 6,361,507
Net transfers (including fixed account)............. 626,685 326,685 (1,236,326)
Policy charges...................................... (5,216,503) (5,607,933) (5,484,593)
Transfers for Policy benefits and terminations...... (3,563,517) (4,113,027) (4,302,406)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (2,190,323) (3,262,128) (4,661,818)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 664,899 (1,076,323) (4,442,646)
NET ASSETS:
Beginning of year................................... 77,277,403 78,353,726 82,796,372
-------------------- -------------------- --------------------
End of year......................................... $ 77,942,302 $ 77,277,403 $ 78,353,726
==================== ==================== ====================
BHFTII BLACKROCK CAPITAL APPRECIATION
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ (244) $ (9,977) $ (10,693)
Net realized gains (losses)......................... 586,471 1,047,770 2,022,735
Change in unrealized gains (losses) on investments.. 2,528,190 (1,066,351) (1,407,738)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 3,114,417 (28,558) 604,304
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 713,936 736,403 793,014
Net transfers (including fixed account)............. 183,165 (3,208) 336,170
Policy charges...................................... (575,499) (570,923) (588,991)
Transfers for Policy benefits and terminations...... (896,039) (856,815) (655,032)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (574,437) (694,543) (114,839)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 2,539,980 (723,101) 489,465
NET ASSETS:
Beginning of year................................... 9,502,695 10,225,796 9,736,331
-------------------- -------------------- --------------------
End of year......................................... $ 12,042,675 $ 9,502,695 $ 10,225,796
==================== ==================== ====================
BHFTII BLACKROCK ULTRA-SHORT TERM BOND
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 60,887 $ (18,384) $ (35,014)
Net realized gains (losses)......................... 25,723 3,712 --
Change in unrealized gains (losses) on investments.. 119,513 60,725 --
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 206,123 46,053 (35,014)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 493,430 567,291 476,089
Net transfers (including fixed account)............. 5,565,246 (1,366,452) (4,569,788)
Policy charges...................................... (892,674) (907,994) (886,480)
Transfers for Policy benefits and terminations...... (483,837) (365,895) (333,363)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 4,682,165 (2,073,050) (5,313,542)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 4,888,288 (2,026,997) (5,348,556)
NET ASSETS:
Beginning of year................................... 22,657,240 24,684,237 30,032,793
-------------------- -------------------- --------------------
End of year......................................... $ 27,545,528 $ 22,657,240 $ 24,684,237
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII BRIGHTHOUSE ASSET ALLOCATION 20
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 119,470 $ 177,898 $ 116,446
Net realized gains (losses)......................... 40,884 122,062 174,994
Change in unrealized gains (losses) on investments.. 193,850 (54,551) (309,762)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 354,204 245,409 (18,322)
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 436,850 475,558 514,400
Net transfers (including fixed account)............. 657,738 274,364 93,614
Policy charges...................................... (497,021) (539,657) (522,816)
Transfers for Policy benefits and terminations...... (1,579,139) (823,306) (165,837)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (981,572) (613,041) (80,639)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............ (627,368) (367,632) (98,961)
NET ASSETS:
Beginning of year................................... 5,067,129 5,434,761 5,533,722
--------------------- --------------------- ---------------------
End of year......................................... $ 4,439,761 $ 5,067,129 $ 5,434,761
===================== ===================== =====================
BHFTII BRIGHTHOUSE ASSET ALLOCATION 40
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 227,176 $ 365,152 $ 29,433
Net realized gains (losses)......................... 348,904 649,364 699,512
Change in unrealized gains (losses) on investments.. 555,970 (402,883) (854,363)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 1,132,050 611,633 (125,418)
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 939,941 946,570 952,025
Net transfers (including fixed account)............. 326,039 238,465 315,680
Policy charges...................................... (790,214) (796,923) (829,348)
Transfers for Policy benefits and terminations...... (647,227) (274,767) (637,520)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (171,461) 113,345 (199,163)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............ 960,589 724,978 (324,581)
NET ASSETS:
Beginning of year................................... 10,372,997 9,648,019 9,972,600
--------------------- --------------------- ---------------------
End of year......................................... $ 11,333,586 $ 10,372,997 $ 9,648,019
===================== ===================== =====================
BHFTII BRIGHTHOUSE ASSET ALLOCATION 60
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 988,015 $ 1,661,041 $ 305,717
Net realized gains (losses)......................... 2,602,679 4,802,939 4,072,097
Change in unrealized gains (losses) on investments.. 3,901,633 (2,834,262) (4,965,532)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 7,492,327 3,629,718 (587,718)
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 4,213,884 4,497,839 4,710,179
Net transfers (including fixed account)............. 171,111 27,071 (516,267)
Policy charges...................................... (3,453,056) (3,556,897) (3,570,057)
Transfers for Policy benefits and terminations...... (4,940,179) (3,005,552) (2,803,258)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (4,008,240) (2,037,539) (2,179,403)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............ 3,484,087 1,592,179 (2,767,121)
NET ASSETS:
Beginning of year................................... 52,559,818 50,967,639 53,734,760
--------------------- --------------------- ---------------------
End of year......................................... $ 56,043,905 $ 52,559,818 $ 50,967,639
===================== ===================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII BRIGHTHOUSE ASSET ALLOCATION 80
DIVISION
--------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 1,726,190 $ 2,942,462 $ 427,851
Net realized gains (losses)......................... 6,877,022 12,021,813 6,177,764
Change in unrealized gains (losses) on investments.. 9,496,898 (7,365,543) (8,037,823)
-------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 18,100,110 7,598,732 (1,432,208)
-------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 7,718,644 8,365,149 9,064,666
Net transfers (including fixed account)............. (246,902) (1,384,318) (479,555)
Policy charges...................................... (5,348,857) (5,526,010) (5,646,022)
Transfers for Policy benefits and terminations...... (7,915,157) (6,463,563) (5,971,484)
-------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (5,792,272) (5,008,742) (3,032,395)
-------------------- --------------------- ---------------------
Net increase (decrease) in net assets............. 12,307,838 2,589,990 (4,464,603)
NET ASSETS:
Beginning of year................................... 96,200,969 93,610,979 98,075,582
-------------------- --------------------- ---------------------
End of year......................................... $ 108,508,807 $ 96,200,969 $ 93,610,979
==================== ===================== =====================
BHFTII BRIGHTHOUSE/ARTISAN MID CAP VALUE
DIVISION
--------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 386,875 $ 573,294 $ 651,607
Net realized gains (losses)......................... 643,877 6,376,782 8,080,747
Change in unrealized gains (losses) on investments.. 6,536,022 4,919,832 (14,388,947)
--------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 7,566,774 11,869,908 (5,656,593)
--------------------- --------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 3,822,689 3,977,996 4,248,709
Net transfers (including fixed account)............. (582,080) (613,228) (532,025)
Policy charges...................................... (3,236,913) (3,245,776) (3,288,323)
Transfers for Policy benefits and terminations...... (4,024,252) (3,402,376) (3,481,517)
--------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (4,020,556) (3,283,384) (3,053,156)
--------------------- --------------------- --------------------
Net increase (decrease) in net assets............. 3,546,218 8,586,524 (8,709,749)
NET ASSETS:
Beginning of year................................... 62,142,398 53,555,874 62,265,623
--------------------- --------------------- --------------------
End of year......................................... $ 65,688,616 $ 62,142,398 $ 53,555,874
===================== ===================== ====================
BHFTII BRIGHTHOUSE/WELLINGTON BALANCED
DIVISION
--------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 4,339,481 $ 6,577,117 $ 4,411,640
Net realized gains (losses)......................... 10,464,072 15,625,107 55,909,979
Change in unrealized gains (losses) on investments.. 27,671,155 (3,743,348) (53,963,621)
-------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 42,474,708 18,458,876 6,357,998
-------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 20,315,289 21,296,974 22,226,199
Net transfers (including fixed account)............. 324,049 (1,837,317) (1,114,111)
Policy charges...................................... (21,609,300) (22,205,884) (22,125,724)
Transfers for Policy benefits and terminations...... (16,611,763) (16,090,657) (17,838,451)
-------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (17,581,725) (18,836,884) (18,852,087)
-------------------- --------------------- ---------------------
Net increase (decrease) in net assets............. 24,892,983 (378,008) (12,494,089)
NET ASSETS:
Beginning of year................................... 299,463,081 299,841,089 312,335,178
-------------------- --------------------- ---------------------
End of year......................................... $ 324,356,064 $ 299,463,081 $ 299,841,089
==================== ===================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII BRIGHTHOUSE/WELLINGTON CORE EQUITY OPPORTUNITIES
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 1,137,876 $ 1,122,364 $ 1,263,131
Net realized gains (losses)......................... 3,203,582 3,128,463 26,124,464
Change in unrealized gains (losses) on investments.. 9,056,499 855,321 (25,717,218)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 13,397,957 5,106,148 1,670,377
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 4,437,684 4,745,132 5,175,987
Net transfers (including fixed account)............. (902,918) (230,740) (1,253,819)
Policy charges...................................... (3,769,635) (3,977,030) (3,976,712)
Transfers for Policy benefits and terminations...... (5,948,302) (4,646,198) (4,646,062)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (6,183,171) (4,108,836) (4,700,606)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 7,214,786 997,312 (3,030,229)
NET ASSETS:
Beginning of year................................... 73,520,028 72,522,716 75,552,945
-------------------- -------------------- --------------------
End of year......................................... $ 80,734,814 $ 73,520,028 $ 72,522,716
==================== ==================== ====================
BHFTII FRONTIER MID CAP GROWTH
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ (1,632,964) $ (1,459,027) $ (1,605,819)
Net realized gains (losses)......................... 11,209,482 28,319,213 36,288,678
Change in unrealized gains (losses) on investments.. 43,545,366 (16,692,072) (28,947,695)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 53,121,884 10,168,114 5,735,164
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 12,186,623 12,817,058 13,526,076
Net transfers (including fixed account)............. (7,255,002) (1,665,871) (546,174)
Policy charges...................................... (12,987,997) (13,012,542) (13,281,761)
Transfers for Policy benefits and terminations...... (12,680,835) (10,971,677) (13,018,169)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (20,737,211) (12,833,032) (13,320,028)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 32,384,673 (2,664,918) (7,584,864)
NET ASSETS:
Beginning of year................................... 225,309,908 227,974,826 235,559,690
-------------------- -------------------- --------------------
End of year......................................... $ 257,694,581 $ 225,309,908 $ 227,974,826
==================== ==================== ====================
BHFTII JENNISON GROWTH
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 66,950 $ 52,283 $ 49,690
Net realized gains (losses)......................... 2,258,228 3,125,595 4,130,001
Change in unrealized gains (losses) on investments.. 6,383,010 (3,197,364) (1,789,865)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 8,708,188 (19,486) 2,389,826
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 1,299,752 1,333,946 1,340,497
Net transfers (including fixed account)............. 5,991,640 2,483 509,083
Policy charges...................................... (1,281,802) (1,218,365) (1,224,290)
Transfers for Policy benefits and terminations...... (1,623,326) (1,425,516) (1,580,551)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 4,386,264 (1,307,452) (955,261)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 13,094,452 (1,326,938) 1,434,565
NET ASSETS:
Beginning of year................................... 22,968,240 24,295,178 22,860,613
-------------------- -------------------- --------------------
End of year......................................... $ 36,062,692 $ 22,968,240 $ 24,295,178
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII LOOMIS SAYLES SMALL CAP CORE
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 49,569 $ 53,376 $ 13,776
Net realized gains (losses)......................... 2,156,674 2,236,001 3,521,185
Change in unrealized gains (losses) on investments.. 1,501,241 1,915,532 (3,857,826)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 3,707,484 4,204,909 (322,865)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 1,274,560 1,334,562 1,455,376
Net transfers (including fixed account)............. (516,348) (285,957) (362,429)
Policy charges...................................... (1,191,127) (1,187,314) (1,217,974)
Transfers for Policy benefits and terminations...... (1,805,701) (1,306,062) (1,348,393)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (2,238,616) (1,444,771) (1,473,420)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 1,468,868 2,760,138 (1,796,285)
NET ASSETS:
Beginning of year................................... 25,855,024 23,094,886 24,891,171
-------------------- -------------------- --------------------
End of year......................................... $ 27,323,892 $ 25,855,024 $ 23,094,886
==================== ==================== ====================
BHFTII LOOMIS SAYLES SMALL CAP GROWTH
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ (9,721) $ (9,163) $ (9,783)
Net realized gains (losses)......................... 762,930 1,222,132 1,804,809
Change in unrealized gains (losses) on investments.. 2,111,346 (582,015) (1,598,061)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 2,864,555 630,954 196,965
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 688,741 747,090 790,736
Net transfers (including fixed account)............. (344,283) (235,047) 38,986
Policy charges...................................... (570,448) (586,052) (610,291)
Transfers for Policy benefits and terminations...... (670,562) (620,076) (603,154)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (896,552) (694,085) (383,723)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 1,968,003 (63,131) (186,758)
NET ASSETS:
Beginning of year................................... 11,122,720 11,185,851 11,372,609
-------------------- -------------------- --------------------
End of year......................................... $ 13,090,723 $ 11,122,720 $ 11,185,851
==================== ==================== ====================
BHFTII METLIFE AGGREGATE BOND INDEX
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 3,810,094 $ 3,516,381 $ 3,706,067
Net realized gains (losses)......................... (60,039) 157,844 111,155
Change in unrealized gains (losses) on investments.. 463,003 (713,953) (3,467,125)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 4,213,058 2,960,272 350,097
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 10,119,467 10,321,297 10,650,517
Net transfers (including fixed account)............. 8,297,879 1,939,507 (390,145)
Policy charges...................................... (8,103,229) (8,491,979) (8,265,344)
Transfers for Policy benefits and terminations...... (6,849,400) (6,293,235) (6,269,190)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 3,464,717 (2,524,410) (4,274,162)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 7,677,775 435,862 (3,924,065)
NET ASSETS:
Beginning of year................................... 127,387,339 126,951,477 130,875,542
-------------------- -------------------- --------------------
End of year......................................... $ 135,065,114 $ 127,387,339 $ 126,951,477
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII METLIFE MID CAP STOCK INDEX
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 1,319,708 $ 1,044,591 $ 965,012
Net realized gains (losses)......................... 8,754,007 8,154,617 7,586,957
Change in unrealized gains (losses) on investments.. 4,956,766 7,196,356 (10,506,888)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 15,030,481 16,395,564 (1,954,919)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 5,357,530 5,416,314 5,638,229
Net transfers (including fixed account)............. 4,274,293 (936,758) 508,090
Policy charges...................................... (4,778,563) (4,718,498) (4,665,601)
Transfers for Policy benefits and terminations...... (6,221,097) (4,649,606) (5,028,583)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (1,367,837) (4,888,548) (3,547,865)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 13,662,644 11,507,016 (5,502,784)
NET ASSETS:
Beginning of year................................... 95,179,145 83,672,129 89,174,913
-------------------- -------------------- --------------------
End of year......................................... $ 108,841,789 $ 95,179,145 $ 83,672,129
==================== ==================== ====================
BHFTII METLIFE MSCI EAFE INDEX
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,309,101 $ 1,943,289 $ 2,500,052
Net realized gains (losses)......................... 1,359,240 101,562 707,350
Change in unrealized gains (losses) on investments.. 15,314,940 (990,605) (3,862,935)
------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from operations................................ 18,983,281 1,054,246 (655,533)
------------------- ------------------- -------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 5,958,371 6,241,891 6,286,345
Net transfers (including fixed account)............. 450,416 813,637 1,565,657
Policy charges...................................... (4,348,604) (4,254,888) (4,329,144)
Transfers for Policy benefits and terminations...... (5,191,027) (3,939,562) (4,133,342)
------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (3,130,844) (1,138,922) (610,484)
------------------- ------------------- -------------------
Net increase (decrease) in net assets............. 15,852,437 (84,676) (1,266,017)
NET ASSETS:
Beginning of year................................... 76,450,323 76,534,999 77,801,016
------------------- ------------------- -------------------
End of year......................................... $ 92,302,760 $ 76,450,323 $ 76,534,999
=================== =================== ===================
BHFTII METLIFE RUSSELL 2000 INDEX
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 919,455 $ 913,083 $ 828,476
Net realized gains (losses)......................... 6,041,469 5,704,425 6,271,433
Change in unrealized gains (losses) on investments.. 4,109,388 7,347,406 (10,053,677)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 11,070,312 13,964,914 (2,953,768)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 4,793,790 4,810,814 4,964,713
Net transfers (including fixed account)............. (1,452,551) (461,739) 432,389
Policy charges...................................... (3,676,061) (3,605,728) (3,613,698)
Transfers for Policy benefits and terminations...... (5,164,111) (4,191,102) (4,335,031)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (5,498,933) (3,447,755) (2,551,627)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 5,571,379 10,517,159 (5,505,395)
NET ASSETS:
Beginning of year................................... 78,678,964 68,161,805 73,667,200
-------------------- -------------------- --------------------
End of year......................................... $ 84,250,343 $ 78,678,964 $ 68,161,805
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII METLIFE STOCK INDEX
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 16,768,156 $ 17,167,447 $ 14,801,691
Net realized gains (losses)......................... 64,595,519 57,978,009 58,353,168
Change in unrealized gains (losses) on investments.. 126,477,450 31,292,870 (63,726,527)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 207,841,125 106,438,326 9,428,332
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 64,139,582 67,338,784 70,011,175
Net transfers (including fixed account)............. (45,284,438) (2,630,167) 798,237
Policy charges...................................... (47,182,585) (47,351,375) (46,759,361)
Transfers for Policy benefits and terminations...... (68,817,043) (60,879,042) (59,435,957)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (97,144,484) (43,521,800) (35,385,906)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 110,696,641 62,916,526 (25,957,574)
NET ASSETS:
Beginning of year................................... 1,023,023,669 960,107,143 986,064,717
-------------------- -------------------- --------------------
End of year......................................... $ 1,133,720,310 $ 1,023,023,669 $ 960,107,143
==================== ==================== ====================
BHFTII MFS TOTAL RETURN
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 256,018 $ 277,775 $ 247,122
Net realized gains (losses)......................... 693,293 579,525 196,619
Change in unrealized gains (losses) on investments.. 1,181,033 3,086 (470,036)
------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from operations................................ 2,130,344 860,386 (26,295)
------------------- ------------------- -------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 684,608 866,669 968,017
Net transfers (including fixed account)............. 20,897,739 183,218 63,944
Policy charges...................................... (679,171) (622,365) (604,132)
Transfers for Policy benefits and terminations...... (574,164) (685,850) (558,787)
------------------- ------------------- -------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 20,329,012 (258,328) (130,958)
------------------- ------------------- -------------------
Net increase (decrease) in net assets............. 22,459,356 602,058 (157,253)
NET ASSETS:
Beginning of year................................... 10,408,921 9,806,863 9,964,116
------------------- ------------------- -------------------
End of year......................................... $ 32,868,277 $ 10,408,921 $ 9,806,863
=================== =================== ===================
BHFTII MFS VALUE
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 1,807,020 $ 1,832,604 $ 2,254,602
Net realized gains (losses)......................... 6,376,051 8,023,482 14,425,867
Change in unrealized gains (losses) on investments.. 7,634,853 1,456,878 (16,842,516)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 15,817,924 11,312,964 (162,047)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 5,176,715 5,385,806 5,724,364
Net transfers (including fixed account)............. 7,193,791 (616,694) (394,287)
Policy charges...................................... (4,697,059) (4,746,152) (4,715,726)
Transfers for Policy benefits and terminations...... (5,665,116) (5,299,972) (5,310,681)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 2,008,331 (5,277,012) (4,696,330)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 17,826,255 6,035,952 (4,858,377)
NET ASSETS:
Beginning of year................................... 88,412,117 82,376,165 87,234,542
-------------------- -------------------- --------------------
End of year......................................... $ 106,238,372 $ 88,412,117 $ 82,376,165
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII MFS VALUE II
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 526,386 $ 296,620 $ 335,383
Net realized gains (losses)......................... (221,837) 1,069,485 1,421,917
Change in unrealized gains (losses) on investments.. 1,234,077 1,883,740 (2,942,487)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 1,538,626 3,249,845 (1,185,187)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 1,479,679 1,545,784 1,614,117
Net transfers (including fixed account)............. 421,641 (30,878) 139,650
Policy charges...................................... (1,081,681) (1,098,505) (1,098,817)
Transfers for Policy benefits and terminations...... (1,629,097) (1,075,384) (1,132,285)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (809,458) (658,983) (477,335)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 729,168 2,590,862 (1,662,522)
NET ASSETS:
Beginning of year................................... 21,009,123 18,418,261 20,080,783
-------------------- -------------------- --------------------
End of year......................................... $ 21,738,291 $ 21,009,123 $ 18,418,261
==================== ==================== ====================
BHFTII NEUBERGER BERMAN GENESIS
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 370,076 $ 399,379 $ 361,906
Net realized gains (losses)......................... 12,057,105 1,826,763 1,512,189
Change in unrealized gains (losses) on investments.. 4,394,645 15,758,188 (1,230,308)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 16,821,826 17,984,330 643,787
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 6,489,836 6,799,075 7,267,381
Net transfers (including fixed account)............. (977,458) (1,167,465) (927,026)
Policy charges...................................... (5,884,389) (5,931,913) (5,942,383)
Transfers for Policy benefits and terminations...... (7,393,489) (6,477,508) (6,568,694)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (7,765,500) (6,777,811) (6,170,722)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 9,056,326 11,206,519 (5,526,935)
NET ASSETS:
Beginning of year................................... 112,504,182 101,297,663 106,824,598
-------------------- -------------------- --------------------
End of year......................................... $ 121,560,508 $ 112,504,182 $ 101,297,663
==================== ==================== ====================
BHFTII T. ROWE PRICE LARGE CAP GROWTH
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 221,909 $ (8,318) $ 57,337
Net realized gains (losses)......................... 7,974,008 11,522,738 17,568,369
Change in unrealized gains (losses) on investments.. 19,425,313 (10,229,673) (8,845,976)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 27,621,230 1,284,747 8,779,730
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 4,795,916 4,913,132 5,084,380
Net transfers (including fixed account)............. 477,359 143,272 (3,825)
Policy charges...................................... (4,722,995) (4,630,873) (4,639,514)
Transfers for Policy benefits and terminations...... (6,543,490) (5,259,756) (4,665,654)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (5,993,210) (4,834,225) (4,224,613)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 21,628,020 (3,549,478) 4,555,117
NET ASSETS:
Beginning of year................................... 84,300,674 87,850,152 83,295,035
-------------------- -------------------- --------------------
End of year......................................... $ 105,928,694 $ 84,300,674 $ 87,850,152
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII T. ROWE PRICE SMALL CAP GROWTH
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ (38,755) $ (95,610) $ (248,946)
Net realized gains (losses)......................... 10,072,201 15,506,158 12,918,905
Change in unrealized gains (losses) on investments.. 14,656,850 (3,850,598) (9,935,901)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 24,690,296 11,559,950 2,734,058
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 6,652,241 6,771,118 6,600,673
Net transfers (including fixed account)............. 1,786,581 (896,281) 926,025
Policy charges...................................... (5,234,546) (5,218,226) (5,239,072)
Transfers for Policy benefits and terminations...... (8,669,274) (7,068,348) (7,416,481)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (5,464,998) (6,411,737) (5,128,855)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 19,225,298 5,148,213 (2,394,797)
NET ASSETS:
Beginning of year................................... 112,461,733 107,313,520 109,708,317
-------------------- -------------------- --------------------
End of year......................................... $ 131,687,031 $ 112,461,733 $ 107,313,520
==================== ==================== ====================
BHFTII VANECK GLOBAL NATURAL RESOURCES
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 290 $ 1,967 $ 974
Net realized gains (losses)......................... (3,647) (7,201) (9,795)
Change in unrealized gains (losses) on investments.. 5,530 88,581 (64,308)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 2,173 83,347 (73,129)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 58,187 56,552 58,025
Net transfers (including fixed account)............. 28,003 (24,534) 33,612
Policy charges...................................... (21,430) (19,533) (16,064)
Transfers for Policy benefits and terminations...... (15,365) (10,218) (4,972)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 49,395 2,267 70,601
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 51,568 85,614 (2,528)
NET ASSETS:
Beginning of year................................... 259,264 173,650 176,178
-------------------- -------------------- --------------------
End of year......................................... $ 310,832 $ 259,264 $ 173,650
==================== ==================== ====================
BHFTII WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES
DIVISION
-------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,001,647 $ 761,904 $ 1,289,587
Net realized gains (losses)......................... 364,897 119,058 73,628
Change in unrealized gains (losses) on investments.. 1,796,363 2,417,251 (1,827,670)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 4,162,907 3,298,213 (464,455)
--------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 3,662,710 3,165,030 2,048,302
Net transfers (including fixed account)............. (114,949) 26,947,040 416,380
Policy charges...................................... (2,872,301) (2,541,922) (1,498,601)
Transfers for Policy benefits and terminations...... (3,348,106) (2,942,766) (1,520,683)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (2,672,646) 24,627,382 (554,602)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 1,490,261 27,925,595 (1,019,057)
NET ASSETS:
Beginning of year................................... 52,921,776 24,996,181 26,015,238
--------------------- -------------------- --------------------
End of year......................................... $ 54,412,037 $ 52,921,776 $ 24,996,181
===================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
BHFTII WESTERN ASSET MANAGEMENT U.S. GOVERNMENT
DIVISION
--------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 402,248 $ 400,422 $ 357,540
Net realized gains (losses)......................... (35,219) (10,757) (6,880)
Change in unrealized gains (losses) on investments.. (80,512) (199,711) (270,748)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 286,517 189,954 79,912
--------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 1,666,603 1,678,562 1,737,457
Net transfers (including fixed account)............. 455,559 141,399 3,538
Policy charges...................................... (1,243,499) (1,306,280) (1,277,275)
Transfers for Policy benefits and terminations...... (980,456) (908,115) (1,069,051)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (101,793) (394,434) (605,331)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 184,724 (204,480) (525,419)
NET ASSETS:
Beginning of year................................... 15,656,147 15,860,627 16,386,046
--------------------- -------------------- --------------------
End of year......................................... $ 15,840,871 $ 15,656,147 $ 15,860,627
===================== ==================== ====================
DREYFUS VIF INTERNATIONAL VALUE
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,916 $ 3,283 $ 4,421
Net realized gains (losses)......................... (300) (5,322) (390)
Change in unrealized gains (losses) on investments.. 51,516 (2,271) (10,460)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 54,132 (4,310) (6,429)
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ -- -- --
Net transfers (including fixed account)............. -- (12,134) --
Policy charges...................................... (2,197) (2,110) (2,287)
Transfers for Policy benefits and terminations...... -- -- (1)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (2,197) (14,244) (2,288)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............. 51,935 (18,554) (8,717)
NET ASSETS:
Beginning of year................................... 193,298 211,852 220,569
--------------------- --------------------- ---------------------
End of year......................................... $ 245,233 $ 193,298 $ 211,852
===================== ===================== =====================
FIDELITY VIP ASSET MANAGER: GROWTH
DIVISION
--------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 24,598 $ 23,502 $ 20,958
Net realized gains (losses)......................... 293,961 60,870 128,965
Change in unrealized gains (losses) on investments.. 9,749 (48,668) (145,469)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 328,308 35,704 4,454
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 53,311 69,385 154,105
Net transfers (including fixed account)............. 162,659 6,528 (120,734)
Policy charges...................................... (65,514) (69,707) (80,789)
Transfers for Policy benefits and terminations...... (111,829) (113,789) (173,241)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 38,627 (107,583) (220,659)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 366,935 (71,879) (216,205)
NET ASSETS:
Beginning of year................................... 1,799,093 1,870,972 2,087,177
-------------------- -------------------- --------------------
End of year......................................... $ 2,166,028 $ 1,799,093 $ 1,870,972
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
FIDELITY VIP CONTRAFUND
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 25,600 $ 18,813 $ 25,926
Net realized gains (losses)......................... 216,238 265,269 373,045
Change in unrealized gains (losses) on investments.. 321,303 (89,763) (372,526)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 563,141 194,319 26,445
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 66,230 82,242 177,261
Net transfers (including fixed account)............. (24,949) (6,803) (158,700)
Policy charges...................................... (93,243) (91,600) (94,010)
Transfers for Policy benefits and terminations...... (152,087) (278,347) (89,062)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (204,049) (294,508) (164,511)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............ 359,092 (100,189) (138,066)
NET ASSETS:
Beginning of year................................... 2,675,209 2,775,398 2,913,464
--------------------- --------------------- ---------------------
End of year......................................... $ 3,034,301 $ 2,675,209 $ 2,775,398
===================== ===================== =====================
FIDELITY VIP EQUITY-INCOME
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 40 $ 351 $ 426
Net realized gains (losses)......................... 853 858 2,506
Change in unrealized gains (losses) on investments.. (214) 1,277 (3,341)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 679 2,486 (409)
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 143 1,787 2,405
Net transfers (including fixed account)............. -- -- --
Policy charges...................................... (39) (227) (278)
Transfers for Policy benefits and terminations...... (16,006) (1) (14,085)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (15,902) 1,559 (11,958)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............ (15,223) 4,045 (12,367)
NET ASSETS:
Beginning of year................................... 16,883 12,838 25,205
--------------------- --------------------- ---------------------
End of year......................................... $ 1,660 $ 16,883 $ 12,838
===================== ===================== =====================
FIDELITY VIP FREEDOM 2010
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,182 $ 439 $ 361
Net realized gains (losses)......................... 1,901 427 5,675
Change in unrealized gains (losses) on investments.. 324 369 (5,470)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 4,407 1,235 566
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 63,343 54,823 49,696
Net transfers (including fixed account)............. 103,209 -- (481)
Policy charges...................................... -- -- --
Transfers for Policy benefits and terminations...... (54,488) (45,887) (78,676)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 112,064 8,936 (29,461)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............ 116,471 10,171 (28,895)
NET ASSETS:
Beginning of year................................... 29,390 19,219 48,114
--------------------- --------------------- ---------------------
End of year......................................... $ 145,861 $ 29,390 $ 19,219
===================== ===================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
FIDELITY VIP FREEDOM 2020
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 8,288 $ 8,579 $ 10,060
Net realized gains (losses)......................... 33,650 19,311 169,271
Change in unrealized gains (losses) on investments.. 50,769 4,403 (177,998)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 92,707 32,293 1,333
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 178,672 159,769 132,204
Net transfers (including fixed account)............. (78,756) (46) (413,184)
Policy charges...................................... (6,488) (6,174) (7,305)
Transfers for Policy benefits and terminations...... (184,941) (146,943) (168,987)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (91,513) 6,606 (457,272)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............ 1,194 38,899 (455,939)
NET ASSETS:
Beginning of year................................... 567,520 528,621 984,560
--------------------- --------------------- ---------------------
End of year......................................... $ 568,714 $ 567,520 $ 528,621
===================== ===================== =====================
FIDELITY VIP FREEDOM 2025
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 7,280 $ 6,677 $ 8,151
Net realized gains (losses)......................... 13,722 13,307 2,620
Change in unrealized gains (losses) on investments.. 58,295 6,315 (13,249)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 79,297 26,299 (2,478)
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ -- -- --
Net transfers (including fixed account)............. 1 -- 407,484
Policy charges...................................... (11,328) (10,760) (9,867)
Transfers for Policy benefits and terminations...... -- -- --
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (11,327) (10,760) 397,617
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............ 67,970 15,539 395,139
NET ASSETS:
Beginning of year................................... 448,266 432,727 37,588
--------------------- --------------------- ---------------------
End of year......................................... $ 516,236 $ 448,266 $ 432,727
===================== ===================== =====================
FIDELITY VIP FREEDOM 2030
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 3,686 $ 2,599 $ 2,154
Net realized gains (losses)......................... 15,700 3,153 1,753
Change in unrealized gains (losses) on investments.. 21,517 4,716 (4,989)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 40,903 10,468 (1,082)
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 399,414 337,954 248,938
Net transfers (including fixed account)............. (17,095) (74) 1,585
Policy charges...................................... -- -- --
Transfers for Policy benefits and terminations...... (325,781) (286,393) (211,226)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 56,538 51,487 39,297
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............ 97,441 61,955 38,215
NET ASSETS:
Beginning of year................................... 181,828 119,873 81,658
--------------------- --------------------- ---------------------
End of year......................................... $ 279,269 $ 181,828 $ 119,873
===================== ===================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
FIDELITY VIP FREEDOM 2040
DIVISION
--------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,654 $ 2,084 $ 1,492
Net realized gains (losses)......................... 12,869 2,805 804
Change in unrealized gains (losses) on investments.. 24,961 5,080 (3,345)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 40,484 9,969 (1,049)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 308,883 263,618 178,750
Net transfers (including fixed account)............. -- (142) --
Policy charges...................................... -- -- --
Transfers for Policy benefits and terminations...... (271,312) (203,651) (141,983)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 37,571 59,825 36,767
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 78,055 69,794 35,718
NET ASSETS:
Beginning of year................................... 159,009 89,215 53,497
-------------------- -------------------- --------------------
End of year......................................... $ 237,064 $ 159,009 $ 89,215
==================== ==================== ====================
FIDELITY VIP FREEDOM 2050
DIVISION
--------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,270 $ 1,500 $ 878
Net realized gains (losses)......................... 8,417 1,669 843
Change in unrealized gains (losses) on investments.. 19,567 2,841 (2,416)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 30,254 6,010 (695)
--------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 199,787 171,698 115,247
Net transfers (including fixed account)............. -- -- (1,460)
Policy charges...................................... -- -- --
Transfers for Policy benefits and terminations...... (146,021) (122,043) (88,414)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 53,766 49,655 25,373
--------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 84,020 55,665 24,678
NET ASSETS:
Beginning of year................................... 107,049 51,384 26,706
--------------------- -------------------- --------------------
End of year......................................... $ 191,069 $ 107,049 $ 51,384
===================== ==================== ====================
FIDELITY VIP GOVERNMENT MONEY MARKET
DIVISION
---------------------------------------------
2017 2016 (c)
--------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 22,875 $ 4,167
Net realized gains (losses)......................... -- --
Change in unrealized gains (losses) on investments.. -- --
--------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 22,875 4,167
--------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 133,488 256,858
Net transfers (including fixed account)............. 623,595 3,598,871
Policy charges...................................... (65,496) (34,257)
Transfers for Policy benefits and terminations...... (183,382) --
--------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 508,205 3,821,472
--------------------- ---------------------
Net increase (decrease) in net assets............. 531,080 3,825,639
NET ASSETS:
Beginning of year................................... 3,825,639 --
--------------------- ---------------------
End of year......................................... $ 4,356,719 $ 3,825,639
===================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
FIDELITY VIP HIGH INCOME
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 24,337 $ 18,971 $ 14,336
Net realized gains (losses)......................... (18) (443) (455)
Change in unrealized gains (losses) on investments.. 2,185 19,200 (20,979)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 26,504 37,728 (7,098)
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 88,023 35,555 12,069
Net transfers (including fixed account)............. -- 96,126 35,979
Policy charges...................................... (7,437) (6,565) (5,315)
Transfers for Policy benefits and terminations...... (1) -- (2,074)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 80,585 125,116 40,659
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............ 107,089 162,844 33,561
NET ASSETS:
Beginning of year................................... 368,584 205,740 172,179
--------------------- --------------------- ---------------------
End of year......................................... $ 475,673 $ 368,584 $ 205,740
===================== ===================== =====================
FIDELITY VIP INVESTMENT GRADE BOND
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 28,197 $ 28,927 $ 31,506
Net realized gains (losses)......................... 3,320 (1,529) 154
Change in unrealized gains (losses) on investments.. 18,959 27,988 (39,907)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 50,476 55,386 (8,247)
--------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 1,122 293 829
Net transfers (including fixed account)............. 97,158 (24,137) (11,610)
Policy charges...................................... (14,491) (14,328) (14,132)
Transfers for Policy benefits and terminations...... (173,140) -- --
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (89,351) (38,172) (24,913)
--------------------- --------------------- ---------------------
Net increase (decrease) in net assets............ (38,875) 17,214 (33,160)
NET ASSETS:
Beginning of year................................... 1,241,561 1,224,347 1,257,507
--------------------- --------------------- ---------------------
End of year......................................... $ 1,202,686 $ 1,241,561 $ 1,224,347
===================== ===================== =====================
FIDELITY VIP MID CAP
DIVISION
---------------------------------------------------------------------
2017 2016 2015
--------------------- --------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 1,285 $ 766 $ 745
Net realized gains (losses)......................... 16,281 13,813 31,286
Change in unrealized gains (losses) on investments.. 31,948 9,442 (36,156)
--------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 49,514 24,021 (4,125)
--------------------- --------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 1,110 1,018 1,486
Net transfers (including fixed account)............. (9,016) 261 32,283
Policy charges...................................... (5,116) (4,768) (4,213)
Transfers for Policy benefits and terminations...... (15,522) (43,917) --
--------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (28,544) (47,406) 29,556
--------------------- --------------------- --------------------
Net increase (decrease) in net assets............ 20,970 (23,385) 25,431
NET ASSETS:
Beginning of year................................... 256,383 279,768 254,337
--------------------- --------------------- --------------------
End of year......................................... $ 277,353 $ 256,383 $ 279,768
===================== ===================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
FTVIPT FRANKLIN INCOME VIP
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,194 $ 2,059 $ 1,086
Net realized gains (losses)......................... 186 (110) (154)
Change in unrealized gains (losses) on investments.. 6,858 3,968 (2,439)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 9,238 5,917 (1,507)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 7,835 4,179 5,340
Net transfers (including fixed account)............. (9,352) 10,302 12,510
Policy charges...................................... (3,310) (3,200) (2,666)
Transfers for Policy benefits and terminations...... (4,397) -- --
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (9,224) 11,281 15,184
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 14 17,198 13,677
NET ASSETS:
Beginning of year................................... 56,031 38,833 25,156
-------------------- -------------------- --------------------
End of year......................................... $ 56,045 $ 56,031 $ 38,833
==================== ==================== ====================
FTVIPT FRANKLIN MUTUAL GLOBAL DISCOVERY VIP
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 9,201 $ 8,262 $ 13,670
Net realized gains (losses)......................... 30,787 36,978 27,706
Change in unrealized gains (losses) on investments.. 6,135 13,065 (58,851)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 46,123 58,305 (17,475)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 96,318 55,906 24,639
Net transfers (including fixed account)............. (33,115) (15,004) 13,951
Policy charges...................................... (10,889) (11,796) (15,139)
Transfers for Policy benefits and terminations...... (53,287) (7,814) (14,827)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (973) 21,292 8,624
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 45,150 79,597 (8,851)
NET ASSETS:
Beginning of year................................... 559,179 479,582 488,433
-------------------- -------------------- --------------------
End of year......................................... $ 604,329 $ 559,179 $ 479,582
==================== ==================== ====================
FTVIPT FRANKLIN MUTUAL SHARES VIP
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,384 $ 1,664 $ 1,895
Net realized gains (losses)......................... 4,322 6,412 4,213
Change in unrealized gains (losses) on investments.. 1,445 4,437 (9,723)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 8,151 12,513 (3,615)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 18,402 14,420 10,729
Net transfers (including fixed account)............. 1,080 9,226 27,697
Policy charges...................................... (9,419) (7,976) (5,813)
Transfers for Policy benefits and terminations...... (3,131) (3,186) (72)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 6,932 12,484 32,541
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 15,083 24,997 28,926
NET ASSETS:
Beginning of year................................... 96,301 71,304 42,378
-------------------- -------------------- --------------------
End of year......................................... $ 111,384 $ 96,301 $ 71,304
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
FTVIPT TEMPLETON FOREIGN VIP
DIVISION
-----------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 225,978 $ 114,022 $ 189,205
Net realized gains (losses)......................... 5,599 19,515 182,453
Change in unrealized gains (losses) on investments.. 996,224 260,337 (703,728)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from operations................................ 1,227,801 393,874 (332,070)
-------------------- -------------------- -------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 375,066 450,424 522,167
Net transfers (including fixed account)............. 2,927,494 (43,239) 131,629
Policy charges...................................... (222,574) (193,490) (204,300)
Transfers for Policy benefits and terminations...... (58,419) (189,973) (119,949)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 3,021,567 23,722 329,547
-------------------- -------------------- -------------------
Net increase (decrease) in net assets............. 4,249,368 417,596 (2,523)
NET ASSETS:
Beginning of year................................... 5,762,444 5,344,848 5,347,371
-------------------- -------------------- -------------------
End of year......................................... $ 10,011,812 $ 5,762,444 $ 5,344,848
==================== ==================== ===================
FTVIPT TEMPLETON GLOBAL BOND VIP
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ -- $ -- $ 83,772
Net realized gains (losses)......................... (171) (3,707) (92,691)
Change in unrealized gains (losses) on investments.. 11,918 24,908 (36,601)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 11,747 21,201 (45,520)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 142,166 66,454 35,603
Net transfers (including fixed account)............. 35,287 5,683 (632,092)
Policy charges...................................... (25,311) (25,780) (35,622)
Transfers for Policy benefits and terminations...... (33,359) (2,149) --
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 118,783 44,208 (632,111)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 130,530 65,409 (677,631)
NET ASSETS:
Beginning of year................................... 624,673 559,264 1,236,895
-------------------- -------------------- --------------------
End of year......................................... $ 755,203 $ 624,673 $ 559,264
==================== ==================== ====================
GOLDMAN SACHS MID-CAP VALUE
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 623 $ 1,071 $ 1,118
Net realized gains (losses)......................... 4,992 (9,829) 20,793
Change in unrealized gains (losses) on investments.. 3,256 25,433 (48,920)
------------------- ------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 8,871 16,675 (27,009)
------------------- ------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ -- -- --
Net transfers (including fixed account)............. -- (183,580) --
Policy charges...................................... (4,651) (4,736) (7,778)
Transfers for Policy benefits and terminations...... -- (1) (12,103)
------------------- ------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (4,651) (188,317) (19,881)
------------------- ------------------- --------------------
Net increase (decrease) in net assets............. 4,220 (171,642) (46,890)
NET ASSETS:
Beginning of year................................... 82,725 254,367 301,257
------------------- ------------------- --------------------
End of year......................................... $ 86,945 $ 82,725 $ 254,367
=================== =================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
GOLDMAN SACHS SMALL CAP EQUITY INSIGHTS
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- ---------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 41 $ 413 $ 104
Net realized gains (losses)......................... 4,096 147 4,727
Change in unrealized gains (losses) on investments.. (3,129) 6,057 (5,505)
--------------------- ---------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 1,008 6,617 (674)
--------------------- ---------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 6,029 10,556 1,112
Net transfers (including fixed account)............. (37,089) -- --
Policy charges...................................... (1,675) (3,587) (3,707)
Transfers for Policy benefits and terminations...... (62) (7,826) (1)
--------------------- ---------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (32,797) (857) (2,596)
--------------------- ---------------------- ---------------------
Net increase (decrease) in net assets............ (31,789) 5,760 (3,270)
NET ASSETS:
Beginning of year................................... 39,553 33,793 37,063
--------------------- ---------------------- ---------------------
End of year......................................... $ 7,764 $ 39,553 $ 33,793
===================== ====================== =====================
INVESCO V.I. COMSTOCK
DIVISION
-----------------------------------------------------------------------
2017 2016 2015
---------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 10,939 $ 4,913 $ 5,695
Net realized gains (losses)......................... 28,297 31,767 4,410
Change in unrealized gains (losses) on investments.. 52,013 25,839 (32,126)
---------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 91,249 62,519 (22,021)
---------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 157,051 59,070 21,481
Net transfers (including fixed account)............. (7,282) 257 (1,856)
Policy charges...................................... (9,718) (8,620) (8,488)
Transfers for Policy benefits and terminations...... (14) -- (34)
---------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 140,037 50,707 11,103
---------------------- --------------------- ---------------------
Net increase (decrease) in net assets............ 231,286 113,226 (10,918)
NET ASSETS:
Beginning of year................................... 449,886 336,660 347,578
---------------------- --------------------- ---------------------
End of year......................................... $ 681,172 $ 449,886 $ 336,660
====================== ===================== =====================
INVESCO V.I. INTERNATIONAL GROWTH
DIVISION
----------------------------------------------------------------------
2017 2016 2015
--------------------- ---------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 4,975 $ 4,874 $ 5,017
Net realized gains (losses)......................... 6,211 630 2,637
Change in unrealized gains (losses) on investments.. 61,391 (8,246) (13,856)
--------------------- ---------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 72,577 (2,742) (6,202)
--------------------- ---------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 7,874 16,357 --
Net transfers (including fixed account)............. (59,675) 40,410 2,025
Policy charges...................................... (15,059) (16,023) (16,496)
Transfers for Policy benefits and terminations...... (65) (9,023) (1)
--------------------- ---------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (66,925) 31,721 (14,472)
--------------------- ---------------------- ---------------------
Net increase (decrease) in net assets............ 5,652 28,979 (20,674)
NET ASSETS:
Beginning of year................................... 358,802 329,823 350,497
--------------------- ---------------------- ---------------------
End of year......................................... $ 364,454 $ 358,802 $ 329,823
===================== ====================== =====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
JANUS HENDERSON BALANCED
DIVISION
--------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 15,832 $ 20,153 $ 15,263
Net realized gains (losses)......................... 13,593 22,229 40,958
Change in unrealized gains (losses) on investments.. 160,350 (19) (51,128)
-------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 189,775 42,363 5,093
-------------------- --------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 40,337 55,816 36,006
Net transfers (including fixed account)............. (46,193) (14,696) 28,037
Policy charges...................................... (30,609) (32,106) (33,574)
Transfers for Policy benefits and terminations...... (7,289) (79,063) (17,338)
-------------------- --------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (43,754) (70,049) 13,131
-------------------- --------------------- ---------------------
Net increase (decrease) in net assets............. 146,021 (27,686) 18,224
NET ASSETS:
Beginning of year................................... 1,073,389 1,101,075 1,082,851
-------------------- --------------------- ---------------------
End of year......................................... $ 1,219,410 $ 1,073,389 $ 1,101,075
==================== ===================== =====================
JANUS HENDERSON ENTERPRISE
DIVISION
--------------------------------------------
2017 2016 (d)
-------------------- ---------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 710 $ 107
Net realized gains (losses)......................... 53,319 38,166
Change in unrealized gains (losses) on investments.. 49,008 289
-------------------- ---------------------
Net increase (decrease) in net assets resulting
from operations................................ 103,037 38,562
-------------------- ---------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ -- --
Net transfers (including fixed account)............. (139,404) 417,833
Policy charges...................................... (4,932) (3,776)
Transfers for Policy benefits and terminations...... (61,166) --
-------------------- ---------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (205,502) 414,057
-------------------- ---------------------
Net increase (decrease) in net assets............. (102,465) 452,619
NET ASSETS:
Beginning of year................................... 452,619 --
-------------------- ---------------------
End of year......................................... $ 350,154 $ 452,619
==================== =====================
JANUS HENDERSON FORTY
DIVISION
--------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ -- $ -- $ --
Net realized gains (losses)......................... 49,807 59,807 122,650
Change in unrealized gains (losses) on investments.. 82,066 (58,944) (57,429)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 131,873 863 65,221
--------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 9,767 21,593 8,927
Net transfers (including fixed account)............. (53,562) -- 262
Policy charges...................................... (12,150) (15,394) (19,291)
Transfers for Policy benefits and terminations...... (250,103) (106,582) (964)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (306,048) (100,383) (11,066)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets............. (174,175) (99,520) 54,155
NET ASSETS:
Beginning of year................................... 505,032 604,552 550,397
--------------------- -------------------- --------------------
End of year......................................... $ 330,857 $ 505,032 $ 604,552
===================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
JANUS HENDERSON OVERSEAS
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 358 $ 1,672 $ 225
Net realized gains (losses)......................... (10,688) (6,520) (4,794)
Change in unrealized gains (losses) on investments.. 18,215 1,900 363
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 7,885 (2,948) (4,206)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 18,271 21,555 5,534
Net transfers (including fixed account)............. (37,562) -- --
Policy charges...................................... (4,253) (6,610) (7,590)
Transfers for Policy benefits and terminations...... (87) (4,970) (5,157)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (23,631) 9,975 (7,213)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. (15,746) 7,027 (11,419)
NET ASSETS:
Beginning of year................................... 43,050 36,023 47,442
-------------------- -------------------- --------------------
End of year......................................... $ 27,304 $ 43,050 $ 36,023
==================== ==================== ====================
JANUS HENDERSON RESEARCH
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 1,234 $ 1,500 $ 2,968
Net realized gains (losses)......................... 5,531 62,341 102,491
Change in unrealized gains (losses) on investments.. 68,064 (66,733) (79,472)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 74,829 (2,892) 25,987
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 8,642 3,252 6,990
Net transfers (including fixed account)............. -- -- --
Policy charges...................................... (11,111) (11,346) (16,553)
Transfers for Policy benefits and terminations...... (69) (187,482) (26,764)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (2,538) (195,576) (36,327)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 72,291 (198,468) (10,340)
NET ASSETS:
Beginning of year................................... 271,199 469,667 480,007
-------------------- -------------------- --------------------
End of year......................................... $ 343,490 $ 271,199 $ 469,667
==================== ==================== ====================
MFS VIT GLOBAL EQUITY
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 1,698 $ 1,326 $ 1,587
Net realized gains (losses)......................... 12,364 10,426 8,958
Change in unrealized gains (losses) on investments.. 40,361 736 (14,256)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 54,423 12,488 (3,711)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 70,644 27,743 10,152
Net transfers (including fixed account)............. 7,066 (176) (8,832)
Policy charges...................................... (4,554) (4,103) (4,102)
Transfers for Policy benefits and terminations...... (7,604) -- (175)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 65,552 23,464 (2,957)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 119,975 35,952 (6,668)
NET ASSETS:
Beginning of year................................... 218,575 182,623 189,291
-------------------- -------------------- --------------------
End of year......................................... $ 338,550 $ 218,575 $ 182,623
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
MFS VIT NEW DISCOVERY
DIVISION
-------------------------------------------------------------------
2017 2016 2015
--------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ -- $ -- $ --
Net realized gains (losses)......................... 42,002 9,227 7,331
Change in unrealized gains (losses) on investments.. (961) 7,467 (11,470)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 41,041 16,694 (4,139)
--------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ -- -- --
Net transfers (including fixed account)............. -- -- --
Policy charges...................................... (6,131) (6,581) (6,330)
Transfers for Policy benefits and terminations...... (220,519) (38) (52)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (226,650) (6,619) (6,382)
--------------------- -------------------- --------------------
Net increase (decrease) in net assets............. (185,609) 10,075 (10,521)
NET ASSETS:
Beginning of year................................... 206,405 196,330 206,851
--------------------- -------------------- --------------------
End of year......................................... $ 20,796 $ 206,405 $ 196,330
===================== ==================== ====================
MFS VIT VALUE
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 345 $ 369 $ 439
Net realized gains (losses)......................... 1,647 2,248 1,896
Change in unrealized gains (losses) on investments.. 1,235 (76) (2,518)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 3,227 2,541 (183)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ -- -- --
Net transfers (including fixed account)............. 1 -- --
Policy charges...................................... (2,898) (2,348) (2,032)
Transfers for Policy benefits and terminations...... -- -- --
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (2,897) (2,348) (2,032)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 330 193 (2,215)
NET ASSETS:
Beginning of year................................... 20,045 19,852 22,067
-------------------- -------------------- --------------------
End of year......................................... $ 20,375 $ 20,045 $ 19,852
==================== ==================== ====================
MFS VIT II HIGH YIELD
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 9,827 $ 9,347 $ 9,868
Net realized gains (losses)......................... (95) (220) (99)
Change in unrealized gains (losses) on investments.. (254) 9,158 (16,013)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 9,478 18,285 (6,244)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ -- -- --
Net transfers (including fixed account)............. -- 1 (33)
Policy charges...................................... (2,591) (2,483) (2,300)
Transfers for Policy benefits and terminations...... -- -- --
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (2,591) (2,482) (2,333)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 6,887 15,803 (8,577)
NET ASSETS:
Beginning of year................................... 151,111 135,308 143,885
-------------------- -------------------- --------------------
End of year......................................... $ 157,998 $ 151,111 $ 135,308
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
MORGAN STANLEY VIF EMERGING MARKETS DEBT
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 70,167 $ 59,307 $ 45,047
Net realized gains (losses)......................... (7,471) (12,131) (12,799)
Change in unrealized gains (losses) on investments.. 58,835 45,652 (46,377)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 121,531 92,828 (14,129)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 2,113 3,052 3,052
Net transfers (including fixed account)............. 377,231 264,923 149,611
Policy charges...................................... (24,084) (19,895) (14,377)
Transfers for Policy benefits and terminations...... -- (18) (781)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 355,260 248,062 137,505
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 476,791 340,890 123,376
NET ASSETS:
Beginning of year................................... 1,256,825 915,935 792,559
-------------------- -------------------- --------------------
End of year......................................... $ 1,733,616 $ 1,256,825 $ 915,935
==================== ==================== ====================
MORGAN STANLEY VIF EMERGING MARKETS EQUITY
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 29,128 $ 12,938 $ 18,406
Net realized gains (losses)......................... 244,612 (37,991) (24,296)
Change in unrealized gains (losses) on investments.. 807,706 171,862 (266,747)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 1,081,446 146,809 (272,637)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 9,120 4,305 4,305
Net transfers (including fixed account)............. (995,326) 831,692 408,440
Policy charges...................................... (61,562) (47,189) (36,287)
Transfers for Policy benefits and terminations...... (14,962) (296) (301)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (1,062,730) 788,512 376,157
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 18,716 935,321 103,520
NET ASSETS:
Beginning of year................................... 3,160,892 2,225,571 2,122,051
-------------------- -------------------- --------------------
End of year......................................... $ 3,179,608 $ 3,160,892 $ 2,225,571
==================== ==================== ====================
PIMCO VIT ALL ASSET
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 6,628 $ 3,261 $ 17,942
Net realized gains (losses)......................... (130) (833) (111,468)
Change in unrealized gains (losses) on investments.. 11,089 12,619 38,369
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 17,587 15,047 (55,157)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 9,625 8,337 4,611
Net transfers (including fixed account)............. -- 76 (723,721)
Policy charges...................................... (7,019) (7,013) (18,374)
Transfers for Policy benefits and terminations...... -- -- --
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 2,606 1,400 (737,484)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 20,193 16,447 (792,641)
NET ASSETS:
Beginning of year................................... 126,203 109,756 902,397
-------------------- -------------------- --------------------
End of year......................................... $ 146,396 $ 126,203 $ 109,756
==================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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, 2017, 2016 AND 2015
PIMCO VIT COMMODITYREALRETURN STRATEGY
DIVISION
-----------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 1,293 $ 111 $ 1,467
Net realized gains (losses)......................... (3,603) (957) (11,415)
Change in unrealized gains (losses) on investments.. 2,335 2,262 3,408
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from operations................................ 25 1,416 (6,540)
-------------------- -------------------- -------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 2,720 -- 2,720
Net transfers (including fixed account)............. (6,206) -- (19,227)
Policy charges...................................... (1,439) (1,699) (1,972)
Transfers for Policy benefits and terminations...... -- -- --
-------------------- -------------------- -------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (4,925) (1,699) (18,479)
-------------------- -------------------- -------------------
Net increase (decrease) in net assets............. (4,900) (283) (25,019)
NET ASSETS:
Beginning of year................................... 9,928 10,211 35,230
-------------------- -------------------- -------------------
End of year......................................... $ 5,028 $ 9,928 $ 10,211
==================== ==================== ===================
PIMCO VIT LOW DURATION
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- ------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 12,109 $ 13,010 $ 29,643
Net realized gains (losses)......................... (327) (325) 12,574
Change in unrealized gains (losses) on investments.. 386 (271) (33,266)
------------------- ------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 12,168 12,414 8,951
------------------- ------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 3,335 3,335 1,329
Net transfers (including fixed account)............. 49,928 48,327 (723,808)
Policy charges...................................... (16,019) (16,404) (16,831)
Transfers for Policy benefits and terminations...... (18) (14) (4)
------------------- ------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 37,226 35,244 (739,314)
------------------- ------------------- --------------------
Net increase (decrease) in net assets............. 49,394 47,658 (730,363)
NET ASSETS:
Beginning of year................................... 872,582 824,924 1,555,287
------------------- ------------------- --------------------
End of year......................................... $ 921,976 $ 872,582 $ 824,924
=================== =================== ====================
PUTNAM VT INTERNATIONAL VALUE
DIVISION
-----------------------------------------------------------------
2017 2016 2015
------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 86 $ 122 $ 91
Net realized gains (losses)......................... 45 (165) (22)
Change in unrealized gains (losses) on investments.. 1,055 58 (118)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 1,186 15 (49)
------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 1,288 -- 1,288
Net transfers (including fixed account)............. -- 1 --
Policy charges...................................... (1,208) (1,450) (1,363)
Transfers for Policy benefits and terminations...... -- -- (1)
------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... 80 (1,449) (76)
------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 1,266 (1,434) (125)
NET ASSETS:
Beginning of year................................... 4,261 5,695 5,820
------------------- -------------------- --------------------
End of year......................................... $ 5,527 $ 4,261 $ 5,695
=================== ==================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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 -- (CONCLUDED)
FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015
ROYCE MICRO-CAP
DIVISION
------------------------------------------------------------------
2017 2016 2015
-------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 73 $ 61 $ --
Net realized gains (losses)......................... 1,144 71 499
Change in unrealized gains (losses) on investments.. (673) 1,525 (1,557)
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ 544 1,657 (1,058)
-------------------- -------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ -- 939 939
Net transfers (including fixed account)............. -- -- --
Policy charges...................................... (101) (81) (78)
Transfers for Policy benefits and terminations...... -- (71) --
-------------------- -------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (101) 787 861
-------------------- -------------------- --------------------
Net increase (decrease) in net assets............. 443 2,444 (197)
NET ASSETS:
Beginning of year................................... 10,583 8,139 8,336
-------------------- -------------------- --------------------
End of year......................................... $ 11,026 $ 10,583 $ 8,139
==================== ==================== ====================
ROYCE SMALL-CAP
DIVISION
-------------------------------------------------------------------
2017 2016 2015
-------------------- --------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)........................ $ 136 $ 1,115 $ 443
Net realized gains (losses)......................... (13,382) 6,182 12,813
Change in unrealized gains (losses) on investments.. 13,095 2,799 (19,154)
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from operations................................ (151) 10,096 (5,898)
-------------------- --------------------- --------------------
POLICY TRANSACTIONS:
Premium payments received from Policy owners........ 10,945 21,194 278
Net transfers (including fixed account)............. (62,685) -- 12,275
Policy charges...................................... (1,574) (4,548) (4,053)
Transfers for Policy benefits and terminations...... (96) (12,165) --
-------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from Policy transactions....................... (53,410) 4,481 8,500
-------------------- --------------------- --------------------
Net increase (decrease) in net assets............. (53,561) 14,577 2,602
NET ASSETS:
Beginning of year................................... 68,550 53,973 51,371
-------------------- --------------------- --------------------
End of year......................................... $ 14,989 $ 68,550 $ 53,973
==================== ===================== ====================
(a) Had no net assets at December 31, 2016 and 2015.
(b) Commenced April 28, 2014 and began transactions in 2015.
(c) For the period April 29, 2016 to December 31, 2016.
(d) Commenced May 3, 2010 and began transactions in 2016.
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 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, 2017 and 2016 and for the Years Ended December 31, 2017,
2016 and 2015:
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............................................................... 28
Note 3 -- Disposition....................................................................... 34
Note 4 -- Insurance......................................................................... 34
Note 5 -- Deferred Policy Acquisition Costs, Value of Business Acquired and Other
Intangibles............................................................................... 46
Note 6 -- Reinsurance....................................................................... 49
Note 7 -- Closed Block...................................................................... 55
Note 8 -- Investments....................................................................... 57
Note 9 -- Derivatives....................................................................... 78
Note 10 -- Fair Value....................................................................... 93
Note 11 -- Long-term and Short-term Debt.................................................... 112
Note 12 -- Equity........................................................................... 114
Note 13 -- Other Expenses................................................................... 119
Note 14 -- Employee Benefit Plans........................................................... 120
Note 15 -- Income Tax....................................................................... 129
Note 16 -- Contingencies, Commitments and Guarantees........................................ 135
Note 17 -- Quarterly Results of Operations (Unaudited)...................................... 144
Note 18 -- Related Party Transactions....................................................... 145
Financial Statement Schedules at December 31, 2017 and 2016 and for the Years Ended December 31,
2017, 2016 and 2015:
Schedule I -- Consolidated Summary of Investments -- Other Than Investments in Related
Parties....................................................................................... 146
Schedule III -- Consolidated Supplementary Insurance Information................................ 147
Schedule IV -- Consolidated Reinsurance......................................................... 149
1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the stockholder and the Board of Directors of Metropolitan Life Insurance
Company
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Metropolitan
Life Insurance Company and subsidiaries (the "Company") as of December 31, 2017
and 2016, 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, 2017, and the related notes and the schedules listed in the
Index to Consolidated Financial Statements, Notes and Schedules (collectively
referred to as the "consolidated financial statements"). In our opinion, the
consolidated financial statements present fairly, in all material respects, the
financial position of the Company as of December 31, 2017 and 2016, and the
results of its operations and its cash flows for each of the three years in the
period ended December 31, 2017, in conformity with accounting principles
generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on the Company's
consolidated financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board
(PCAOB) and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Company is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. As part of our audits, we are required to
obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated
financial statements. We believe that our audits provide a reasonable basis for
our opinion.
/s/ DELOITTE & TOUCHE LLP
New York, New York
March 19, 2018
We have served as the Company's auditor since at least 1968; however, the
specific year has not been determined.
2
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Consolidated Balance Sheets
December 31, 2017 and 2016
(In millions, except share and per share data)
2017 2016
------------- -------------
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated
fair value (amortized cost: $157,809 and $155,141,
respectively).............................................. $ 170,272 $ 163,120
Equity securities available-for-sale, at estimated fair
value (cost: $1,579 and $1,785, respectively).............. 1,658 1,839
Mortgage loans (net of valuation allowances of $271 and
$267, respectively; includes $520 and $566, respectively,
under the fair value option)............................... 58,459 56,560
Policy loans................................................ 6,006 5,945
Real estate and real estate joint ventures (includes $1,077
and $1,124, respectively, relating to variable interest
entities; includes $25 and $56, respectively, of real
estate held-for-sale)...................................... 6,656 6,386
Other limited partnership interests (includes $0 and $14,
respectively, relating to variable interest entities)...... 3,991 3,725
Short-term investments, principally at estimated fair value. 3,155 4,690
Other invested assets (includes $131 and $39, respectively,
relating to variable interest entities).................... 14,911 17,255
------------- -------------
Total investments......................................... 265,108 259,520
Cash and cash equivalents, principally at estimated fair
value (includes $12 and $0, respectively, relating to
variable interest entities)................................ 5,069 5,714
Accrued investment income................................... 2,042 2,019
Premiums, reinsurance and other receivables (includes $3
and $6, respectively, relating to variable interest
entities).................................................. 22,098 22,383
Deferred policy acquisition costs and value of business
acquired................................................... 4,348 4,743
Current income tax recoverable.............................. 64 --
Other assets (includes $2 and $3, respectively, relating to
variable interest entities)................................ 4,741 4,346
Separate account assets..................................... 130,825 133,836
------------- -------------
Total assets.............................................. $ 434,295 $ 432,561
============= =============
Liabilities and Equity
Liabilities
Future policy benefits...................................... $ 119,415 $ 115,519
Policyholder account balances............................... 93,939 92,466
Other policy-related balances............................... 7,176 7,103
Policyholder dividends payable.............................. 499 510
Policyholder dividend obligation............................ 2,121 1,931
Payables for collateral under securities loaned and other
transactions............................................... 19,871 20,815
Short-term debt............................................. 243 100
Long-term debt (includes $6 and $12, respectively, at
estimated fair value, relating to variable interest
entities).................................................. 1,667 1,589
Current income tax payable.................................. -- 50
Deferred income tax liability............................... 1,369 2,385
Other liabilities (includes $3 and $0, respectively,
relating to variable interest entities).................... 27,409 29,497
Separate account liabilities................................ 130,825 133,836
------------- -------------
Total liabilities......................................... 404,534 405,801
------------- -------------
Contingencies, Commitments and Guarantees (Note 16)
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.................................. 14,150 14,413
Retained earnings........................................... 10,035 9,033
Accumulated other comprehensive income (loss)............... 5,428 3,119
------------- -------------
Total Metropolitan Life Insurance Company stockholder's
equity................................................... 29,618 26,570
Noncontrolling interests.................................... 143 190
------------- -------------
Total equity.............................................. 29,761 26,760
------------- -------------
Total liabilities and equity.............................. $ 434,295 $ 432,561
============= =============
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, 2017, 2016 and 2015
(In millions)
2017 2016 2015
------------ ------------ ------------
Revenues
Premiums........................................................................... $ 22,925 $ 22,393 $ 21,934
Universal life and investment-type product policy fees............................. 2,227 2,542 2,584
Net investment income.............................................................. 10,513 11,083 11,539
Other revenues..................................................................... 1,570 1,478 1,536
Net investment gains (losses):
Other-than-temporary impairments on fixed maturity securities...................... (7) (87) (49)
Other-than-temporary impairments on fixed maturity securities transferred to other
comprehensive income (loss)....................................................... 1 (10) (5)
Other net investment gains (losses)................................................ 340 229 313
------------ ------------ ------------
Total net investment gains (losses).............................................. 334 132 259
Net derivative gains (losses)...................................................... (344) (1,138) 881
------------ ------------ ------------
Total revenues................................................................... 37,225 36,490 38,733
------------ ------------ ------------
Expenses
Policyholder benefits and claims................................................... 25,792 25,313 24,547
Interest credited to policyholder account balances................................. 2,235 2,233 2,183
Policyholder dividends............................................................. 1,097 1,200 1,264
Other expenses..................................................................... 5,135 5,803 6,258
------------ ------------ ------------
Total expenses................................................................... 34,259 34,549 34,252
------------ ------------ ------------
Income (loss) before provision for income tax...................................... 2,966 1,941 4,481
Provision for income tax expense (benefit)......................................... (561) 199 1,763
------------ ------------ ------------
Net income (loss)................................................................ 3,527 1,742 2,718
Less: Net income (loss) attributable to noncontrolling interests................... 2 (8) --
------------ ------------ ------------
Net income (loss) attributable to Metropolitan Life Insurance Company............ $ 3,525 $ 1,750 $ 2,718
============ ============ ============
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, 2017, 2016 and 2015
(In millions)
2017 2016 2015
-------------- --------- ---------
Net income (loss)............. $ 3,527 $ 1,742 $ 2,718
Other comprehensive income
(loss):
Unrealized investment gains
(losses), net of related
offsets...................... 4,079 406 (4,434)
Unrealized gains (losses) on
derivatives.................. (848) 36 559
Foreign currency translation
adjustments.................. 26 13 (101)
Defined benefit plans
adjustment................... 129 217 342
-------------- --------- ---------
Other comprehensive income
(loss), before income tax.. 3,386 672 (3,634)
Income tax (expense) benefit
related to items of other
comprehensive income (loss).. (1,077) (238) 1,285
-------------- --------- ---------
Other comprehensive income
(loss), net of income tax.. 2,309 434 (2,349)
-------------- --------- ---------
Comprehensive income (loss)... 5,836 2,176 369
Less: Comprehensive income
(loss) attributable to
noncontrolling interest, net
of income tax................ 2 (8) --
-------------- --------- ---------
Comprehensive income (loss)
attributable to
Metropolitan Life
Insurance Company.......... $ 5,834 $ 2,184 $ 369
============== ========= =========
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, 2017, 2016 and 2015
(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,
2014, as previously
reported............... $ 5 $ 14,448 $ 12,470 $ 5,034 $ 31,957 $ 392 $ 32,349
Prior period revisions
(Note 1)............... (164) (164) (164)
-------- ----------- ---------- -------------- --------------------- --------------- ---------
Balance at December 31,
2014................... 5 14,448 12,306 5,034 31,793 392 32,185
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)....... 2,718 2,718 2,718
Other comprehensive
income (loss), net of
income tax............. (2,349) (2,349) (2,349)
-------- ----------- ---------- -------------- --------------------- --------------- ---------
Balance at December 31,
2015................... 5 14,444 13,535 2,685 30,669 372 31,041
Capital contributions
from MetLife, Inc...... 10 10 10
Returns of capital...... (68) (68) (68)
Excess tax benefits
related to stock-based
compensation........... 27 27 27
Dividends paid to
MetLife, Inc........... (3,600) (3,600) (3,600)
Dividend of
subsidiaries (Note 3).. (2,652) (2,652) 2 (2,650)
Change in equity of
noncontrolling
interests.............. -- (176) (176)
Net income (loss)....... 1,750 1,750 (8) 1,742
Other comprehensive
income (loss), net of
income tax............. 434 434 434
-------- ----------- ---------- -------------- --------------------- --------------- ---------
Balance at December 31,
2016................... 5 14,413 9,033 3,119 26,570 190 26,760
Capital contributions
from MetLife, Inc...... 6 6 6
Returns of capital...... (20) (20) (20)
Purchase of operating
joint venture interest
from an affiliate
(Note 8)............... (249) (249) (249)
Dividends paid to
MetLife, Inc........... (2,523) (2,523) (2,523)
Change in equity of
noncontrolling
interests.............. -- (49) (49)
Net income (loss)....... 3,525 3,525 2 3,527
Other comprehensive
income (loss), net of
income tax............. 2,309 2,309 2,309
-------- ----------- ---------- -------------- --------------------- --------------- ---------
Balance at December 31,
2017................... $ 5 $ 14,150 $ 10,035 $ 5,428 $ 29,618 $ 143 $ 29,761
======== =========== ========== ============== ===================== =============== =========
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, 2017, 2016 and 2015
(In millions)
2017 2016 2015
---------- ---------- ----------
Cash flows from operating activities
Net income (loss)....................... $ 3,527 $ 1,742 $ 2,718
Adjustments to reconcile net income
(loss) to net cash provided by (used
in) operating activities:
Depreciation and amortization expenses. 395 367 474
Amortization of premiums and accretion
of discounts associated with
investments, net...................... (823) (975) (848)
(Gains) losses on investments and from
sales of businesses, net.............. (334) (132) (259)
(Gains) losses on derivatives, net..... 900 1,865 (426)
(Income) loss from equity method
investments, net of dividends or
distributions......................... 314 483 320
Interest credited to policyholder
account balances...................... 2,235 2,233 2,183
Universal life and investment-type
product policy fees................... (2,227) (2,542) (2,584)
Change in fair value option and
trading securities.................... 17 406 278
Change in accrued investment income.... (40) 81 113
Change in premiums, reinsurance and
other receivables..................... 277 (2,606) (135)
Change in deferred policy acquisition
costs and value of business acquired,
net................................... 180 108 260
Change in income tax................... (2,200) (438) 238
Change in other assets................. 309 701 763
Change in insurance-related
liabilities and policy-related
balances.............................. 4,029 2,741 2,648
Change in other liabilities............ (156) 1,731 (461)
Other, net............................. (49) 39 (16)
---------- ---------- ----------
Net cash provided by (used in)
operating activities................. 6,354 5,804 5,266
---------- ---------- ----------
Cash flows from investing activities
Sales, maturities and repayments of:
Fixed maturity securities.............. 53,984 74,985 82,744
Equity securities...................... 831 859 651
Mortgage loans......................... 8,810 11,286 11,189
Real estate and real estate joint
ventures.............................. 955 762 2,734
Other limited partnership interests.... 565 830 1,185
Purchases of:
Fixed maturity securities.............. (55,973) (72,414) (76,594)
Equity securities...................... (607) (771) (694)
Mortgage loans......................... (10,680) (16,039) (16,268)
Real estate and real estate joint
ventures.............................. (885) (1,390) (823)
Other limited partnership interests.... (794) (809) (668)
Cash received in connection with
freestanding derivatives............... 1,661 1,372 1,039
Cash paid in connection with
freestanding derivatives............... (2,688) (2,451) (1,012)
Net change in policy loans.............. (61) 85 357
Net change in short-term investments.... 1,623 694 (1,117)
Net change in other invested assets..... (177) (434) (603)
Net change in property, equipment and
leasehold improvements................. (177) (227) 23
---------- ---------- ----------
Net cash provided by (used in)
investing activities................. $ (3,613) $ (3,662) $ 2,143
---------- ---------- ----------
See accompanying notes to the consolidated financial statements.
7
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Consolidated Statements of Cash Flows -- (continued)
For the Years Ended December 31, 2017, 2016 and 2015
(In millions)
2017 2016 2015
-------- -------- --------
Cash flows from financing activities
Policyholder account balances:
Deposits...................................................................... $ 70,258 $ 64,962 $ 60,216
Withdrawals................................................................... (70,215) (61,252) (61,248)
Net change in payables for collateral under securities loaned and other
transactions................................................................... (525) (696) (2,230)
Long-term debt issued........................................................... 169 45 907
Long-term debt repaid........................................................... (92) (58) (673)
Financing element on certain derivative instruments and other derivative
related transactions, net...................................................... (300) (321) (66)
Cash paid in connection with noncontrolling interests........................... (71) -- (159)
Dividend of subsidiaries........................................................ -- (115) --
Dividends paid to MetLife, Inc.................................................. (2,523) (3,600) (1,489)
Returns of capital.............................................................. (5) (68) (11)
Return of capital associated with the purchase of operating joint venture
interest from an affiliate (Note 8)............................................ (249) -- --
Other, net...................................................................... 164 24 2
-------- -------- --------
Net cash provided by (used in) financing activities........................... (3,389) (1,079) (4,751)
-------- -------- --------
Effect of change in foreign currency exchange rates on cash and cash
equivalents balances........................................................... 3 -- --
-------- -------- --------
Change in cash and cash equivalents........................................... (645) 1,063 2,658
Cash and cash equivalents, beginning of year.................................... 5,714 4,651 1,993
-------- -------- --------
Cash and cash equivalents, end of year........................................ $ 5,069 $ 5,714 $ 4,651
======== ======== ========
Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest........................................................................ $ 105 $ 114 $ 123
======== ======== ========
Income tax...................................................................... $ 1,693 $ 819 $ 1,217
======== ======== ========
Non-cash transactions
Capital contributions from MetLife, Inc......................................... $ 6 $ 10 $ 4
======== ======== ========
Returns of capital.............................................................. $ 15 $ -- $ --
======== ======== ========
Fixed maturity securities received in connection with pension risk transfer
transactions................................................................... $ -- $ 985 $ 903
======== ======== ========
Transfer of fixed maturity securities from affiliates........................... $ 292 $ 367 $ --
======== ======== ========
Transfer of fixed maturity securities to affiliates............................. $ -- $ 3,940 $ --
======== ======== ========
Transfer of mortgage loans to affiliates........................................ $ -- $ 626 $ --
======== ======== ========
Deconsolidation of real estate investment vehicles (1):
Reduction of long-term debt................................................... $ -- $ -- $ 543
======== ======== ========
Reduction of real estate and real estate joint ventures....................... $ -- $ 354 $ 389
======== ======== ========
Increase in noncontrolling interests.......................................... $ -- $ -- $ 153
======== ======== ========
Reduction of noncontrolling interests......................................... $ -- $ 354 $ --
======== ======== ========
Disposal of subsidiaries:
Assets disposed................................................................. $ -- $ 27,476 $ --
Liabilities disposed............................................................ -- (24,572) --
-------- -------- --------
Net assets disposed........................................................... -- 2,904 --
Cash disposed................................................................... -- (115) --
Dividend of interests in subsidiaries........................................... -- (2,789) --
-------- -------- --------
Loss on dividend of interests in subsidiaries................................. $ -- $ -- $ --
======== ======== ========
---------
(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 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 insurance, annuities, employee
benefits and asset management and is organized into two segments: U.S. and
MetLife Holdings. 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 these
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. 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.
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.
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)
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.
Revisions
On December 15, 2017, MetLife, Inc. announced that it was undertaking a
review of practices and procedures used to estimate its reserves related to
certain Retirement and Income Solutions ("RIS") group annuitants who have
been unresponsive or missing over time. As a result of this process, the
Company increased reserves by $510 million, before income tax, to reinstate
reserves previously released, and to reflect accrued interest and other
related liabilities. Of this increase, $372 million was considered an error
and, recording this amount in the fourth quarter of 2017 financial statements
would have had a material effect on the results of operations for 2017. As a
result of this adjustment, amounts previously reported have been immaterially
restated. The impact of this revision to net income (loss) attributable to
Metropolitan Life Insurance Company was a reduction of $21 million and
$20 million for the years ended December 31, 2016 and 2015, respectively. In
addition, the Company has corrected other unrelated immaterial errors which
were previously recorded in the periods the Company identified them.
The impact of the revisions is shown in the tables below:
December 31, 2016
-------------------------------
As
Previously As
Consolidated Balance Sheets Reported Revisions Revised
----------------------------------------------------------------- ---------- --------- ----------
(In millions)
Liabilities
Future policy benefits......................................... $ 115,556 $ (37) $ 115,519
Other policy-related balances.................................. $ 6,731 $ 372 $ 7,103
Deferred income tax liability.................................. $ 2,503 $ (118) $ 2,385
Total liabilities.............................................. $ 405,584 $ 217 $ 405,801
Equity
Retained earnings.............................................. $ 9,250 $ (217) $ 9,033
Total Metropolitan Life Insurance Company stockholder's equity. $ 26,787 $ (217) $ 26,570
Total equity................................................... $ 26,977 $ (217) $ 26,760
For the Years Ended December 31,
-------------------------------------------------------------
2016 2015
----------------------------- -------------------------------
As As
Previously As Previously As
Consolidated Statements of Operations Reported Revisions Revised Reported Revisions Revised
---------------------------------------------------- ---------- --------- -------- ---------- --------- ----------
(In millions, except per share data)
Revenues
Net investment income............................. $ 11,083 $ -- $ 11,083 $ 11,577 $ (38) $ 11,539
Total revenues.................................... $ 36,490 $ -- $ 36,490 $ 38,771 $ (38) $ 38,733
Expenses
Policyholder benefits and claims.................. $ 25,291 $ 22 $ 25,313 $ 24,527 $ 20 $ 24,547
Total expenses.................................... $ 34,527 $ 22 $ 34,549 $ 34,232 $ 20 $ 34,252
Income (loss) before provision for income tax....... $ 1,963 $ (22) $ 1,941 $ 4,539 $ (58) $ 4,481
Provision for income tax expense (benefit).......... $ 207 $ (8) $ 199 $ 1,782 $ (19) $ 1,763
Net income (loss)................................... $ 1,756 $ (14) $ 1,742 $ 2,757 $ (39) $ 2,718
Net income (loss) attributable to Metropolitan Life
Insurance Company.................................. $ 1,764 $ (14) $ 1,750 $ 2,757 $ (39) $ 2,718
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)
For the Years Ended December 31,
---------------------------------------------------------------
2016 2015
------------------------------ --------------------------------
As As
Previously As Previously As
Consolidated Statements of Comprehensive Income (Loss) Reported Revisions Revised Reported Revisions Revised
------------------------------------------------------ ---------- --------- -------- ---------- --------- ----------
(In millions)
Net income (loss).................................. $ 1,756 $ (14) $ 1,742 $ 2,757 $ (39) $ 2,718
Comprehensive income (loss)........................ $ 2,190 $ (14) $ 2,176 $ 408 $ (39) $ 369
Comprehensive income (loss) attributable to
Metropolitan Life Insurance Company............. $ 2,198 $ (14) $ 2,184 $ 408 $ (39) $ 369
As
Previously As
Consolidated Statements of Equity Reported Revisions Revised
--------------------------------------------------------------- ---------- --------- ---------
(In millions)
Retained Earnings
Balance at December 31, 2014................................. $ 12,470 $ (164) $ 12,306
Net income (loss)............................................ $ 2,757 $ (39) $ 2,718
Balance at December 31, 2015................................. $ 13,738 $ (203) $ 13,535
Net income (loss)............................................ $ 1,764 $ (14) $ 1,750
Balance at December 31, 2016................................. $ 9,250 $ (217) $ 9,033
Total Metropolitan Life Insurance Company Stockholder's Equity
Balance at December 31, 2014................................. $ 31,957 $ (164) $ 31,793
Balance at December 31, 2015................................. $ 30,872 $ (203) $ 30,669
Balance at December 31, 2016................................. $ 26,787 $ (217) $ 26,570
Total Equity
Balance at December 31, 2014................................. $ 32,349 $ (164) $ 32,185
Balance at December 31, 2015................................. $ 31,244 $ (203) $ 31,041
Balance at December 31, 2016................................. $ 26,977 $ (217) $ 26,760
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)
For the Years Ended December 31,
------------------------------------------------------------
2016 2015
----------------------------- -----------------------------
As As
Previously As Previously As
Consolidated Statements of Cash Flows Reported Revisions Revised Reported Revisions Revised
------------------------------------------------------------- ---------- --------- -------- ---------- --------- --------
(In millions)
Cash flows from operating activities
Net income (loss)........................................... $ 1,756 $ (14) $ 1,742 $ 2,757 $ (39) $ 2,718
Change in income tax........................................ $ (430) $ (8) $ (438) $ 257 $ (19) $ 238
Change in insurance-related liabilities and policy-related
balances................................................... $ 2,719 $ 22 $ 2,741 $ 2,628 $ 20 $ 2,648
Change in other liabilities................................. $ 1,731 $ -- $ 1,731 $ (499) $ 38 $ (461)
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 14
--------------------------------------------------------------------------------------------
Income Tax 15
--------------------------------------------------------------------------------------------
Litigation Contingencies 16
--------------------------------------------------------------------------------------------
Insurance
Future Policy Benefit Liabilities and Policyholder Account Balances
The Company establishes liabilities for amounts payable under insurance
policies. Generally, amounts are payable over an extended period of time and
related liabilities are calculated as the present value of future expected
benefits to be paid, reduced by the present value of future expected
premiums. Such liabilities are established based on methods and underlying
assumptions in accordance with GAAP and applicable actuarial standards.
Principal assumptions used in the establishment of liabilities for future
policy benefits are mortality, morbidity, policy lapse, renewal, retirement,
disability incidence, disability terminations, investment returns,
inflation, expenses and other contingent events as appropriate to the
respective product type. These assumptions are established at the time the
policy is issued and are intended to estimate the experience for the period
the policy benefits are payable. Utilizing these assumptions, liabilities
are established on a block of business basis. For long-duration insurance
contracts, assumptions such as mortality, morbidity and interest rates are
"locked in" upon the issuance of new business. However, significant adverse
changes in experience on such contracts may require the establishment of
premium deficiency reserves. Such reserves are determined based on the then
current assumptions and do not include a provision for adverse deviation.
Premium deficiency reserves may also be established for short-duration
contracts to provide for expected future losses. These reserves are based on
actuarial estimates of the amount of loss inherent in that period, including
losses incurred for which claims have not been reported. The provisions for
unreported claims are calculated using studies that measure the historical
length of time between the incurred date of a claim and its eventual
reporting to the Company. Anticipated investment income is considered in the
calculation of premium deficiency losses for short-duration contracts.
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)
Liabilities for universal and variable life policies with 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 Global Ratings ("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 adjusted for
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 a specific
insurable event, or (ii) the policyholder to annuitize. Alternatively, a
guarantee is accounted for as an insurance liability if the guarantee is
paid only upon either (i) the occurrence of a specific insurable event, or
(ii) annuitization. In certain cases, a guarantee may have elements of both
an insurance liability and an embedded derivative and in such cases the
guarantee is split and accounted for under both models.
Guarantees accounted for as insurance liabilities in future policy
benefits include guaranteed minimum death benefits ("GMDBs"), the portion of
guaranteed minimum income benefits ("GMIBs") that require annuitization, and
the life-contingent portion of guaranteed minimum withdrawal
benefits ("GMWBs").
Guarantees accounted for as embedded derivatives in 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, premiums
received in advance, unearned revenue liabilities, obligations assumed under
structured settlements, policyholder dividends due and unpaid, and
policyholder dividends left on deposit.
The liability for policy and contract claims generally relates to incurred
but not reported ("IBNR") 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
IBNR 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 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.
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.
See Note 4 for additional information on obligations assumed under
structured settlement assignments.
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)
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.
Premiums related to short-duration non-medical health, disability and
accident & health 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.
All revenues and expenses are presented net of reinsurance, as applicable.
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.
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 on the financial statements
for reporting purposes.
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)
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 standards. Cessions
under reinsurance agreements do not discharge the Company's obligations as
the primary insurer. The Company reviews all contractual features, including
those that may limit the amount of insurance risk to which the reinsurer is
subject or features that delay the timely reimbursement of claims.
For reinsurance of existing in-force blocks of long-duration contracts that
transfer significant insurance risk, the difference, if any, between the
amounts paid (received), and the liabilities ceded (assumed) related to the
underlying contracts is considered the net cost of reinsurance at the
inception of the reinsurance agreement. The net cost of reinsurance is
recorded as an adjustment to DAC when there is a gain at inception on the
ceding entity and to other liabilities when there is a loss at inception. The
net cost of reinsurance is recognized as a component of other expenses when
there is a gain at inception and as policyholder benefits and claims when
there is a loss and is subsequently amortized on a basis consistent with the
methodology used for amortizing DAC related to the underlying reinsured
contracts. Subsequent amounts paid (received) on the reinsurance of in-force
blocks, as well as amounts paid (received) related to new business, are
recorded as ceded (assumed) premiums; and ceded (assumed) premiums,
reinsurance and other receivables (future policy benefits) are established.
For prospective reinsurance of short-duration contracts that meet the
criteria for reinsurance accounting, amounts paid (received) are recorded as
ceded (assumed) premiums and ceded (assumed) unearned premiums. Unearned
premiums are reflected as a component of premiums, reinsurance and other
receivables (future policy benefits). Such amounts are amortized through
earned premiums over the remaining contract period in proportion to the
amount of insurance protection provided. For retroactive reinsurance of
short-duration contracts that meet the criteria of reinsurance accounting,
amounts paid (received) in excess of the related insurance liabilities
ceded (assumed) are recognized immediately as a loss and are reported in the
appropriate line item within the statement of operations. Any gain on such
retroactive agreement is deferred and is amortized as part of DAC, primarily
using the recovery method.
Amounts currently recoverable under reinsurance agreements are included in
premiums, reinsurance and other receivables and amounts currently payable are
included in other liabilities. Assets and liabilities relating to reinsurance
agreements with the same reinsurer may be recorded net on the balance sheet,
if a right of offset exists within the reinsurance agreement. In the event
that reinsurers do not meet their obligations to the Company under the terms
of the reinsurance agreements, reinsurance recoverable balances could become
uncollectible. In such instances, reinsurance recoverable balances are stated
net of allowances for uncollectible reinsurance.
15
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting
Policies (continued)
The funds withheld liability represents amounts withheld by the Company in
accordance with the terms of the reinsurance agreements. The Company
withholds the funds rather than transferring the underlying investments and,
as a result, records funds withheld liability within other liabilities. The
Company recognizes interest on funds withheld, included in other expenses, at
rates defined by the terms of the agreement which may be contractually
specified or directly related to the investment portfolio.
Premiums, fees and policyholder benefits and claims include amounts assumed
under reinsurance agreements and are net of reinsurance ceded. Amounts
received from reinsurers for policy administration are reported in other
revenues. With respect to GMIBs, a portion of the directly written GMIBs are
accounted for as insurance liabilities, but the associated reinsurance
agreements contain embedded derivatives. These embedded derivatives are
included in premiums, reinsurance and other receivables with changes in
estimated fair value reported in net derivative gains (losses). 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).
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.
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, and is based on the
estimated economic life of the securities, which for mortgage-backed and
asset-backed securities considers the estimated timing and amount of
prepayments of the underlying loans. See Note 8 "Fixed Maturity and Equity
Securities AFS -- Methodology for Amortization of Premium and Accretion of
Discount on Structured Securities." The amortization of premium and
accretion of discount of fixed maturity securities also takes into
consideration call and maturity dates. 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 "Fixed
Maturity and Equity Securities AFS -- Evaluation of AFS Securities for OTTI
and Evaluating Temporarily Impaired AFS Securities."
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)
For fixed maturity securities in an unrealized loss position, an
other-than-temporary impairment ("OTTI") is recognized in earnings when it
is anticipated that the amortized cost will not be recovered. When either:
(i) the Company has the intent to sell the security; or (ii) it is more
likely than not that the Company will be required to sell the security
before recovery, the OTTI recognized in earnings is the entire difference
between the security's amortized cost and estimated fair value. If neither
of these conditions exists, the difference between the amortized cost of the
security and the present value of projected future cash flows expected to be
collected is recognized as an OTTI in earnings ("credit loss"). If the
estimated fair value is less than the present value of projected future cash
flows expected to be collected, this portion of OTTI related to
other-than-credit factors ("noncredit loss") is recorded in OCI.
With respect to equity securities, the Company considers in its OTTI
analysis its intent and ability to hold a particular equity security for a
period of time sufficient to allow for the recovery of its estimated fair
value to an amount equal to or greater than cost. If a sale decision is made
for an equity security and recovery to an amount at least equal to cost
prior to the sale is not expected, the security will be deemed to be
other-than-temporarily impaired in the period that the sale decision was
made and an OTTI loss will be recorded in earnings. The OTTI loss recognized
is the entire difference between the security's cost and its estimated fair
value.
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 fair value option ("FVO") was elected and which 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
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.
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)
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. 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 when such distributions
become payable 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.
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. See
Note 15.
. Loans to affiliates which are stated at unpaid principal balance and
adjusted for any unamortized premium or discount.
. 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.
. 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. Leveraged leases derive investment
returns in part from their income tax treatment. The Company regularly
reviews residual values for impairment.
. Direct financing leases gross investment is equal to the minimum lease
payments plus the unguaranteed residual value. Income is recorded by
applying the pre-tax internal rate of return to the investment balance.
The Company regularly reviews lease receivables for impairment.
. Funds withheld 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.
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)
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.
Repurchase Agreements
The Company participates in short-term repurchase agreements with
unaffiliated financial institutions. Under these agreements, the Company
lends fixed maturity securities and receives cash as collateral in an amount
generally equal to 95% to 100% of the estimated fair value of the securities
loaned at the inception of the transaction. The associated liability is
recorded at the amount of cash received. The Company monitors the estimated
fair value of the collateral and the securities loaned throughout the
duration of the transaction and additional collateral is obtained as
necessary. Securities loaned under such transactions may be sold or
re-pledged by the transferee.
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).
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)
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
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.
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.
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)
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's 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 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 benefit
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, generally 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.
Net periodic benefit costs are determined using management's 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
employees under which a portion of employee 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 insurance and non-life insurance 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.
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)
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 against deferred tax assets when management determines, based on
available information, that it is more likely than not that deferred income
tax assets will not be realized. Significant judgment is required in
determining whether valuation allowances should be established, as well as
the amount of such allowances. When making such determination the Company
considers many factors, including:
. the nature, frequency, and amount of cumulative financial reporting
income and losses in recent years;
. the jurisdiction in which the deferred tax asset was generated;
. the length of time that carryforward can be utilized in the various
taxing jurisdictions;
. 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 on 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.
On December 22, 2017, President Trump signed into law H.R. 1, commonly
referred to as the Tax Cuts and Jobs Act of 2017 ("U.S. Tax Reform"). See
Note 15 for additional information on U.S. Tax Reform and related Staff
Accounting Bulletin ("SAB") 118 provisional amounts.
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 16, 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.
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)
MetLife, Inc. grants certain employees stock-based compensation awards
under various plans that are subject to specific vesting conditions. With
the exception of performance shares granted in 2013 and after which are
re-measured quarterly, the cost of all stock-based transactions is measured
at fair value at the 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 the attainment of the applicable criteria for post-employment
award continuation, the requisite service period subsequent to attaining
such criteria 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 such
criteria. 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,
2017 and 2016, respectively. Accumulated depreciation and amortization of
property, equipment and leasehold improvements was $614 million and
$673 million at December 31, 2017 and 2016, respectively. Related
depreciation and amortization expense was $124 million, $139 million and
$159 million for the years ended December 31, 2017, 2016 and 2015,
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 $1.7 billion
and $1.5 billion at December 31, 2017 and 2016, respectively. Accumulated
amortization of capitalized software was $1.3 billion and $1.1 billion at
December 31, 2017 and 2016, respectively. Related amortization expense was
$164 million, $132 million and $150 million for the years ended December 31,
2017, 2016 and 2015, respectively.
Other Revenues
Other revenues primarily include, in addition to items described elsewhere
herein, prepaid legal plan fees, administrative service fees, and fees
related to certain stable value products. Such fees are recognized in the
period in which services are performed.
Policyholder Dividends
Policyholder dividends are approved annually by Metropolitan Life
Insurance Company's board 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.
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.
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)
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 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.
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 determine the fair values of its reporting units by applying
a market multiple, discounted cash flow, and/or an actuarial based valuation
approach.
For the 2017 annual goodwill impairment tests, the Company concluded that
goodwill was not impaired. The goodwill balance was $70 million in the U.S
segment and $31 million in the MetLife Holdings segment, at both
December 31, 2017 and 2016.
Adoption of New Accounting Pronouncements
Effective January 1, 2017, the Company early adopted guidance relating to
business combinations. The new guidance clarifies the definition of a business
and requires that an entity apply certain criteria in order to determine when a
set of assets and activities qualifies as a business. The adoption of this
standard will result in fewer acquisitions qualifying as businesses and,
accordingly, acquisition costs for those acquisitions that do not qualify as
businesses will be capitalized rather than expensed. The adoption did not have
a material impact on the Company's consolidated financial statements.
Effective January 1, 2017, the Company retrospectively adopted guidance
relating to consolidation. The new guidance does not change the characteristics
of a primary beneficiary under current GAAP. It changes how a reporting entity
evaluates whether it is the primary beneficiary of a VIE by changing how a
reporting entity that is a single decisionmaker of a VIE handles indirect
interests in the entity held through related parties that are under common
control with the reporting entity. The adoption did not have a material impact
on the Company's consolidated financial statements.
Effective January 1, 2016, the Company retrospectively adopted guidance
relating to short-duration contracts. The new guidance requires insurance
entities to provide users of financial statements with more 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
did not have an impact on the Company's consolidated financial statements other
than expanded disclosures in Note 4.
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)
Effective January 1, 2016, the Company retrospectively adopted new guidance
relating to the consolidation of certain entities. The objective of the new
standard is to improve targeted areas of the consolidation guidance and to
reduce the number of consolidation models. The new consolidation standard
provides guidance on how a reporting entity (i) evaluates whether the entity
should consolidate limited partnerships and similar entities, (ii) assesses
whether the fees paid to a decisionmaker or service provider are variable
interests in a VIE, and (iii) assesses the variable interests in a VIE held by
related parties of the reporting entity. The new guidance also eliminates the
VIE consolidation model based on majority exposure to variability that applied
to certain investment companies and similar entities. The adoption of the new
guidance did not impact which entities are consolidated by the Company. The
consolidated VIE assets and liabilities and unconsolidated VIE carrying amounts
and maximum exposure to loss as of December 31, 2016, disclosed in Note 8,
reflect the application of the new guidance.
Other
Effective January 3, 2017, the Chicago Mercantile Exchange ("CME") amended
its rulebook, resulting in the characterization of variation margin transfers
as settlement payments, as opposed to adjustments to collateral. These
amendments impacted the accounting treatment of the Company's centrally cleared
derivatives for which the CME serves as the central clearing party. As of the
effective date, the application of the amended rulebook reduced gross
derivative assets by $751 million, gross derivative liabilities by
$603 million, accrued investment income by $55 million, accrued investment
expense recorded within other liabilities by $10 million, collateral
receivables recorded within premiums, reinsurance and other receivables of
$226 million, and collateral payables recorded within payables for collateral
under securities loaned and other transactions of $419 million.
Future Adoption of New Accounting Pronouncements
In February 2018, the Financial Accounting Standards Board ("FASB") issued
new guidance on reporting comprehensive income (Accounting Standards Update
("ASU") 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220):
Reclassification of Certain Tax Effects from AOCI). The new guidance is
effective for fiscal years beginning after December 15, 2018 and interim
periods within those fiscal years and should be applied either in the period of
adoption or retrospectively to each period (or periods) in which the effect of
the change in the U.S. federal corporate income tax rate or law in U.S. Tax
Reform is recognized. Early adoption is permitted. Current GAAP guidance
requires that the effect of a change in tax laws or rates on deferred tax
liabilities or assets to be included in income from continuing operations in
the reporting period that includes the enactment date, even if the related
income tax effects were originally charged or credited directly to AOCI. The
new guidance allows a reclassification of AOCI to retained earnings for
stranded tax effects resulting from U.S. Tax Reform. Also, the new guidance
requires certain disclosures about stranded tax effects. The Company will early
adopt the new guidance in the first quarter of 2018. The Company expects the
impact of the new guidance at adoption will be a decrease to retained earnings
as of January 1, 2018 of approximately $1.0 billion with a corresponding
increase to AOCI.
In August 2017, the FASB issued new guidance on hedging activities
(ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to
Accounting for Hedging Activities). The new guidance is effective for fiscal
years beginning after December 15, 2018 and interim periods within those fiscal
years and should be applied on a modified retrospective basis through a
cumulative-effect adjustment to retained earnings. Early adoption is permitted.
The new guidance simplifies the application of hedge accounting in certain
situations and amends the hedge accounting model to enable entities to better
portray the economics of their risk management activities in the financial
statements. The Company is currently evaluating the impact of the new guidance
on its consolidated financial statements.
In March 2017, the FASB issued new guidance on purchased callable debt
securities (ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs
(Subtopic 310-20), Premium Amortization on Purchased Callable Debt
Securities). The new guidance is effective for fiscal years beginning after
December 15, 2018 and interim periods within those fiscal years and should be
applied on a modified retrospective basis through a cumulative-effect
adjustment to retained earnings. Early adoption is permitted. The ASU shortens
the amortization period for certain callable debt securities held at a premium
and requires the premium to be amortized to the earliest call date. However,
the new guidance does not require an accounting change for securities held at a
discount whose discount continues to be amortized to maturity. The Company is
currently evaluating the impact of the new guidance on its consolidated
financial statements.
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)
In March 2017, the FASB issued new guidance on the presentation of net
periodic pension cost and net periodic postretirement benefit cost
(ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the
Presentation of Net Periodic Pension Cost and Net Periodic Postretirement
Benefit Cost). The new guidance is effective for annual periods beginning after
December 15, 2017 and interim periods within those annual periods. The guidance
requires that an employer that offers to its employees defined benefit pension
or other postretirement benefit plans report the service cost component in the
same line item or items as other compensation costs. The other components of
net benefit cost are required to be presented in the income statement
separately from the service cost component and outside a subtotal of income
from operations, if one is presented. If a separate line item is not used, the
line item used in the income statement to present the other components of net
benefit cost must be disclosed. In addition, the guidance allows only the
service cost component to be eligible for capitalization when applicable. The
guidance should be applied retrospectively for the presentation of the service
cost component in the income statement with a practical expedient for the
estimation basis for applying the retrospective presentation requirements, and
prospectively for the capitalization of the service component. The adoption of
the new guidance will not have a material impact on the Company's consolidated
financial statements.
In February 2017, the FASB issued new guidance on derecognition of
nonfinancial assets (ASU 2017-05, Other Income-Gains and Losses from the
Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of
Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial
Assets). The new guidance is effective for fiscal years beginning after
December 15, 2017 and interim periods within those fiscal years. Early adoption
is permitted for interim or annual reporting periods beginning after
December 15, 2016. The guidance may be applied retrospectively for all periods
presented or retrospectively with a cumulative-effect adjustment to retained
earnings at the date of adoption. The new guidance clarifies the scope and
accounting of a financial asset that meets the definition of an "in-substance
nonfinancial asset" and defines the term "in-substance nonfinancial asset." The
ASU also adds guidance for partial sales of nonfinancial assets. The adoption
of the new guidance will not have a material impact on the Company's
consolidated financial statements.
In January 2017, the FASB issued new guidance on goodwill impairment
(ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test
for Goodwill Impairment). The new guidance is effective for fiscal years
beginning after December 15, 2019 and interim periods within those fiscal
years, and should be applied on a prospective basis. Early adoption is
permitted for interim or annual goodwill impairment tests performed on testing
dates after January 1, 2017. The new guidance simplifies the current two-step
goodwill impairment test by eliminating Step 2 of the test. The new guidance
requires a one-step impairment test in which an entity compares the fair value
of a reporting unit with its carrying amount and recognizes an impairment
charge for the amount by which the carrying amount exceeds the reporting unit's
fair value, if any. The Company expects the adoption of the new guidance will
reduce the complexity involved with the evaluation of goodwill for impairment.
The impact of this guidance will depend on the outcomes of future goodwill
impairment tests.
In November 2016, the FASB issued new guidance on restricted cash
(ASU 2016-18, Statement of Cash Flows (Topic 230): A consensus of the FASB
Emerging Issues Task Force). The new guidance is effective for fiscal years
beginning after December 15, 2017 and interim periods within those fiscal
years, and should be applied on a retrospective basis. Early adoption is
permitted. The new guidance requires that a statement of cash flows explain the
change during the period in the total of cash, cash equivalents, and amounts
generally described as restricted cash or restricted cash equivalents. As a
result, the new guidance requires that amounts generally described as
restricted cash and restricted cash equivalents should be included with cash
and cash equivalents when reconciling the beginning-of-period and end-of-period
total amounts shown on the statement of cash flows. The new guidance does not
provide a definition of restricted cash or restricted cash equivalents. The
adoption of the new guidance will not have a material impact on the Company's
consolidated financial statements.
In October 2016, the FASB issued new guidance on tax accounting for
intra-entity transfers of assets (ASU 2016-16, Income Taxes (Topic 740):
Intra-Entity Transfers of Assets Other Than Inventory). The new guidance is
effective for fiscal years beginning after December 15, 2017 and interim
periods within those fiscal years, and should be applied on a modified
retrospective basis. The Company will apply the guidance as of January 1, 2018.
Current guidance prohibits the recognition of current and deferred income taxes
for an intra-entity asset transfer until the asset has been sold to an outside
party. The new guidance requires an entity to recognize the income tax
consequences of an intra-entity transfer of an asset other than inventory when
the transfer occurs. Based on the Company's assessment of the intra-entity
asset transfers and related deferred income taxes that are in scope, the
Company expects the adoption of the new guidance will not have a material
impact on the Company's consolidated financial statements.
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)
In August 2016, the FASB issued new guidance on cash flow statement
presentation (ASU 2016-15, Statement of Cash Flows (Topic 230): Classification
of Certain Cash Receipts and Cash Payments). The new guidance is effective for
fiscal years beginning after December 15, 2017 and interim periods within those
fiscal years, and should be applied retrospectively to all periods presented.
Early adoption is permitted in any interim or annual period. The new guidance
addresses diversity in how certain cash receipts and cash payments are
presented and classified in the statement of cash flows. The adoption of the
new guidance will not have a material impact on the Company's consolidated
financial statements.
In June 2016, the FASB issued new guidance on measurement of credit losses on
financial instruments (ASU 2016-13, Financial Instruments - Credit Losses
(Topic 326): Measurement of Credit Losses on Financial Instruments). The new
guidance is effective for fiscal years beginning after December 15, 2019,
including interim periods within those fiscal years. Early adoption is
permitted for fiscal years, and interim periods within those fiscal years,
beginning after December 15, 2018. This ASU replaces the incurred loss
impairment methodology with one that reflects expected credit losses. The
measurement of expected credit losses should be based on historical loss
information, current conditions, and reasonable and supportable forecasts. The
new guidance requires that an OTTI on a debt security will be recognized as an
allowance going forward, such that improvements in expected future cash flows
after an impairment will no longer be reflected as a prospective yield
adjustment through net investment income, but rather a reversal of the previous
impairment and recognized through realized investment gains and losses. The
guidance also requires enhanced disclosures. The Company has assessed the asset
classes impacted by the new guidance and is currently assessing the accounting
and reporting system changes that will be required to comply with the new
guidance. The Company believes that the most significant impact upon adoption
will be to its mortgage loan investments. The Company is continuing to evaluate
the overall impact of the new guidance on its consolidated financial statements.
In February 2016, the FASB issued new guidance on leasing transactions
(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. Early
adoption is permitted. The new guidance requires a lessee to recognize assets
and liabilities for leases with lease terms of more than 12 months. Leases
would be classified as finance or operating leases and both types of leases
will 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's implementation efforts are primarily focused on the review of its
existing lease contracts, identification of other contracts that may fall under
the scope of the new guidance, and performing a gap analysis on the current
state of lease-related activities compared with the future state of
lease-related activities. The Company is currently evaluating the overall
impact of the new 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, as amended by ASU 2018-03, Financial
Instruments-Overall: Technical Corrections and Improvements, issued in February
2018) 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. Additionally, there will no longer be
a requirement to assess equity securities for impairment since such securities
will be measured at fair value through net income. The Company has assessed the
population of financial instruments that are subject to the new guidance and
has determined that the most significant impact will be the requirement to
report changes in fair value in net income each reporting period for all equity
securities currently classified as AFS and to a lesser extent, other limited
partnership interests and real estate joint ventures that are currently
accounted for under the cost method. The Company will utilize a modified
retrospective approach to adopt the new guidance effective January 1, 2018. The
expected impact related to the change in accounting for equity securities AFS
will be $63 million of net unrealized investment gains, net of income tax,
which will be reclassified from AOCI to retained earnings. The estimated
financial statement impact related to cost method other limited partnership
interests and real estate joint ventures was not material.
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)
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, 2017 and interim periods within those
fiscal years. The Company will apply the guidance retrospectively with a
cumulative-effect adjustment as of January 1, 2018. The new guidance supersedes
nearly all existing revenue recognition guidance under U.S. GAAP. However, it
does not impact the accounting for insurance and investment contracts within
the scope of Accounting Standards Codification (ASC) Topic 944, Financial
Services - Insurance, leases, financial instruments and certain guarantees. For
those contracts that are impacted, the new guidance requires an entity to
recognize revenue upon the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity expects to be
entitled, in exchange for those goods or services. The Company identified
revenue streams within the scope of the guidance that are all included within
other revenues in the consolidated statements of operations and evaluated the
related contracts, primarily consisting of prepaid legal plans and
administrative-only contracts within the U.S. segment, and distribution and
administrative services fees within the MetLife Holdings segment. As other
revenues represents approximately 4% of consolidated total revenues for the
year ended December 31, 2017, the modified retrospective adoption as of
January 1, 2018, did not have a material impact on the Company's consolidated
financial position and the Company has not identified any material prospective
changes in the recognition and measurement of other revenue. The Company
expects to expand its qualitative disclosures within the notes to the
consolidated financial statements.
Other
Effective January 16, 2018, the London Clearing House ("LCH") amended its
rulebook, resulting in the characterization of variation margin transfers as
settlement payments, as opposed to adjustments to collateral. These amendments
will impact the accounting treatment of the Company's centrally cleared
derivatives, for which the LCH serves as the central clearing party. The
application of the amended rulebook is expected to reduce the gross derivative
assets and liabilities, as well as the related collateral, recorded on the
consolidated balance sheet for trades cleared through the LCH. The Company is
currently evaluating the impact of these amendments on its consolidated
financial statements.
2. Segment Information
The Company is organized into two segments: U.S. and MetLife Holdings. In
addition, the Company reports certain of its results of operations in
Corporate & Other.
On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse
Financial, Inc. and its subsidiaries ("Brighthouse") through a distribution of
96,776,670 shares of the 119,773,106 shares of Brighthouse Financial, Inc.
common stock outstanding, representing 80.8% of those shares, to MetLife, Inc.
common shareholders (the "Separation"). MetLife, Inc. retained the remaining
ownership interest of 22,996,436 shares, or 19.2%, of Brighthouse Financial,
Inc. common stock outstanding.
U.S.
The U.S. segment offers a broad range of protection products and services
aimed at serving the financial needs of customers throughout their lives. These
products are sold to corporations and their respective employees, other
institutions and their respective members, as well as individuals. The U.S.
segment is organized into two businesses: Group Benefits and Retirement and
Income Solutions.
. The Group Benefits business offers insurance products and services which
include life, dental, group short- and long-term disability, individual
disability, accidental death and dismemberment, vision and accident &
health coverages, as well as prepaid legal plans. This business also sells
administrative services-only arrangements to some employers.
. The Retirement and Income Solutions business offers a broad range of
annuity and investment products, including capital market investment
products, institutional income annuities, stable value and pension risk
transfer products. This business also includes products to fund tort
settlements, as well as postretirement benefits and company-, bank- or
trust-owned life insurance.
MetLife Holdings
The MetLife Holdings segment consists of operations relating to products and
businesses no longer actively marketed by the Company, such as variable,
universal, term and whole life insurance, variable, fixed and index-linked
annuities and long-term care insurance.
28
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 certain charges and
activities, not allocated to the segments, including enterprise-wide strategic
initiative restructuring charges and various start-up businesses (including the
direct to consumer portion of the U.S. Direct business). Corporate & Other also
includes 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. For the
years ended December 31, 2016 and 2015, Corporate & Other includes business of
the Company that was transferred to Brighthouse. In addition, 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
Adjusted earnings is used by management to evaluate performance and allocate
resources. Consistent with GAAP guidance for segment reporting, adjusted
earnings is also the Company's GAAP measure of segment performance and is
reported below. Adjusted earnings should not be viewed as a substitute for net
income (loss). The Company believes the presentation of adjusted 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. Adjusted earnings allows analysis of the
Company's performance and facilitates comparisons to industry results.
Adjusted earnings is defined as adjusted revenues less adjusted expenses, net
of income tax.
The financial measures of adjusted revenues and adjusted expenses focus on
the Company's primary businesses principally by excluding the impact of market
volatility, which could distort trends, and revenues and costs related to
non-core products and certain entities required to be consolidated under GAAP.
Also, these measures exclude results of discontinued operations under GAAP and
other businesses that have been or will be sold or exited by MLIC but do not
meet the discontinued operations criteria under GAAP and are referred to as
divested businesses. Divested businesses also includes the net impact of
transactions with exited businesses that have been eliminated in consolidation
under GAAP and costs relating to businesses that have been or will be sold or
exited by MLIC that do not meet the criteria to be included in results of
discontinued operations under GAAP. Adjusted revenues also excludes net
investment gains (losses) and net derivative gains (losses).
The following additional adjustments are made to revenues, in the line items
indicated, in calculating adjusted 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 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) excludes post-tax adjusted earnings
adjustments relating to insurance joint ventures accounted for under the
equity method and (iii) excludes certain amounts related to securitization
entities that are VIEs consolidated under GAAP.
The following additional adjustments are made to expenses, in the line items
indicated, in calculating adjusted 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.
29
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
2. Segment Information (continued)
The tax impact of the adjustments mentioned above are calculated net of the
U.S. or foreign statutory tax rate, which could differ from the Company's
effective tax rate.
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, 2017, 2016 and 2015 and at December 31, 2017 and 2016. The segment
accounting policies are the same as those used to prepare the Company's
consolidated financial statements, except for adjusted 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 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, net income (loss) or adjusted
earnings.
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.
30
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
2. Segment Information (continued)
MetLife Corporate Total
Year Ended December 31, 2017 U.S. Holdings & Other Total Adjustments Consolidated
--------------------------------------------------- ---------- ---------- --------- ----------- ----------- ------------
(In millions)
Revenues
Premiums........................................... $ 19,496 $ 3,420 $ 9 $ 22,925 $ -- $ 22,925
Universal life and investment-type product policy
fees.............................................. 1,004 1,126 -- 2,130 97 2,227
Net investment income.............................. 6,206 4,920 (243) 10,883 (370) 10,513
Other revenues..................................... 781 200 589 1,570 -- 1,570
Net investment gains (losses)...................... -- -- -- -- 334 334
Net derivative gains (losses)...................... -- -- -- -- (344) (344)
---------- ---------- --------- ----------- ----------- ------------
Total revenues................................... 27,487 9,666 355 37,508 (283) 37,225
---------- ---------- --------- ----------- ----------- ------------
Expenses
Policyholder benefits and claims and policyholder
dividends......................................... 20,558 6,006 4 26,568 321 26,889
Interest credited to policyholder account balances. 1,459 779 -- 2,238 (3) 2,235
Capitalization of DAC.............................. (48) (13) -- (61) -- (61)
Amortization of DAC and VOBA....................... 56 303 -- 359 (118) 241
Interest expense on debt........................... 11 8 87 106 -- 106
Other expenses..................................... 2,717 1,201 930 4,848 1 4,849
---------- ---------- --------- ----------- ----------- ------------
Total expenses................................... 24,753 8,284 1,021 34,058 201 34,259
---------- ---------- --------- ----------- ----------- ------------
Provision for income tax expense (benefit)......... 954 427 (368) 1,013 (1,574) (561)
---------- ---------- --------- ----------- ------------
Adjusted earnings................................ $ 1,780 $ 955 $ (298) 2,437
========== ========== =========
Adjustments to:
Total revenues..................................... (283)
Total expenses..................................... (201)
Provision for income tax (expense) benefit......... 1,574
-----------
Net income (loss).......................................... $ 3,527 $ 3,527
=========== ============
MetLife Corporate
At December 31, 2017 U.S. Holdings & Other Total
--------------------------------------- ---------- ---------- --------- ----------
(In millions)
Total assets........................... $ 245,750 $ 163,397 $ 25,148 $ 434,295
Separate account assets................ $ 80,240 $ 50,585 $ -- $ 130,825
Separate account liabilities........... $ 80,240 $ 50,585 $ -- $ 130,825
31
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
2. Segment Information (continued)
MetLife Corporate Total
Year Ended December 31, 2016 U.S. Holdings & Other Total Adjustments Consolidated
--------------------------------------------------- ----------- ----------- ---------- ----------- ----------- ------------
(In millions)
Revenues
Premiums........................................... $ 17,921 $ 4,411 $ 61 $ 22,393 $ -- $ 22,393
Universal life and investment-type product policy
fees.............................................. 988 1,236 216 2,440 102 2,542
Net investment income.............................. 6,075 5,606 (67) 11,614 (531) 11,083
Other revenues..................................... 750 110 618 1,478 -- 1,478
Net investment gains (losses)...................... -- -- -- -- 132 132
Net derivative gains (losses)...................... -- -- -- -- (1,138) (1,138)
----------- ----------- ---------- ----------- ----------- -----------
Total revenues................................... 25,734 11,363 828 37,925 (1,435) 36,490
----------- ----------- ---------- ----------- ----------- -----------
Expenses
Policyholder benefits and claims and
policyholder dividends............................ 18,968 7,244 130 26,342 171 26,513
Interest credited to policyholder account balances. 1,297 907 32 2,236 (3) 2,233
Capitalization of DAC.............................. (60) (267) (5) (332) -- (332)
Amortization of DAC and VOBA....................... 56 675 56 787 (346) 441
Interest expense on debt........................... 10 7 95 112 -- 112
Other expenses..................................... 2,770 1,850 825 5,445 137 5,582
----------- ----------- ---------- ----------- ----------- -----------
Total expenses................................... 23,041 10,416 1,133 34,590 (41) 34,549
----------- ----------- ---------- ----------- ----------- -----------
Provision for income tax expense (benefit)......... 963 274 (551) 686 (487) 199
----------- ----------- ---------- ----------- -----------
Adjusted earnings................................ $ 1,730 $ 673 $ 246 2,649
=========== =========== ==========
Adjustments to:
Total revenues..................................... (1,435)
Total expenses..................................... 41
Provision for income tax (expense) benefit......... 487
-----------
Net income (loss).................................................................... $ 1,742 $ 1,742
=========== ===========
MetLife Corporate
At December 31, 2016 U.S. Holdings & Other Total
----------------------------- ------------ ------------ ----------- ------------
(In millions)
Total assets................. $ 247,555 $ 163,024 $ 21,982 $ 432,561
Separate account assets...... $ 85,854 $ 47,982 $ -- $ 133,836
Separate account liabilities. $ 85,854 $ 47,982 $ -- $ 133,836
32
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
2. Segment Information (continued)
MetLife Corporate Total
Year Ended December 31, 2015 U.S. Holdings & Other Total Adjustments Consolidated
--------------------------------------------------- ----------- ----------- ---------- ----------- ----------- ------------
(In millions)
Revenues
Premiums........................................... $ 17,340 $ 4,527 $ 67 $ 21,934 $ -- $ 21,934
Universal life and investment-type product policy
fees.............................................. 941 1,294 249 2,484 100 2,584
Net investment income.............................. 6,011 5,890 94 11,995 (456) 11,539
Other revenues..................................... 729 135 672 1,536 -- 1,536
Net investment gains (losses)...................... -- -- -- -- 259 259
Net derivative gains (losses)...................... -- -- -- -- 881 881
----------- ----------- ---------- ----------- ---------- -----------
Total revenues................................... 25,021 11,846 1,082 37,949 784 38,733
----------- ----------- ---------- ----------- ---------- -----------
Expenses
Policyholder benefits and claims and policyholder
dividends......................................... 18,415 7,207 125 25,747 64 25,811
Interest credited to policyholder account balances. 1,212 933 34 2,179 4 2,183
Capitalization of DAC.............................. (71) (409) (2) (482) -- (482)
Amortization of DAC and VOBA....................... 59 527 44 630 112 742
Interest expense on debt........................... 5 4 113 122 -- 122
Other expenses..................................... 2,724 1,825 1,324 5,873 3 5,876
----------- ----------- ---------- ----------- ---------- -----------
Total expenses................................... 22,344 10,087 1,638 34,069 183 34,252
----------- ----------- ---------- ----------- ---------- -----------
Provision for income tax expense (benefit)......... 961 556 37 1,554 209 1,763
----------- ----------- ---------- ----------- -----------
Adjusted earnings................................ $ 1,716 $ 1,203 $ (593) 2,326
=========== =========== ==========
Adjustments to:
Total revenues..................................... 784
Total expenses..................................... (183)
Provision for income tax (expense) benefit......... (209)
-----------
Net income (loss)................................ $ 2,718 $ 2,718
=========== ===========
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,
-----------------------
2017 2016 2015
------- ------- -------
(In millions)
Life insurance............................... $13,139 $13,907 $13,811
Accident & health insurance.................. 7,933 7,889 7,475
Annuities.................................... 5,390 4,379 4,548
Non-insurance................................ 260 238 220
------- ------- -------
Total....................................... $26,722 $26,413 $26,054
======= ======= =======
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 U.S. customer were $2.8 billion, $2.8 billion and
$2.7 billion for the years ended December 31, 2017, 2016 and 2015,
respectively, which represented 11%, 10% 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, 2017, 2016 and 2015.
33
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
3. Disposition
In December 2016, the Company distributed to MetLife, Inc. as a non-cash
extraordinary dividend all of the issued and outstanding shares of common stock
of its wholly-owned subsidiaries, New England Life Insurance Company ("NELICO")
and General American Life Insurance Company ("GALIC"). The net book value of
NELICO and GALIC at the time of the dividend was $2.9 billion, which was
recorded as a dividend of retained earnings of $2.7 billion and a decrease to
other comprehensive income of $254 million, net of income tax. As of the date
of the dividend payment, the Company no longer consolidates the assets,
liabilities and operations of NELICO and GALIC.
4. Insurance
34
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Insurance (continued)
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,
-----------------
2017 2016
-------- --------
(In millions)
U.S............... $131,224 $124,877
MetLife Holdings.. 89,012 89,874
Corporate & Other. 294 337
-------- --------
Total............ $220,530 $215,088
======== ========
See Note 6 for discussion of affiliated reinsurance liabilities included in
the table above.
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 future expected
benefit payments and related expenses less the
present value of future expected 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 Present value of future expected payments.
traditional fixed annuities Interest rate assumptions used in establishing
after annuitization such liabilities range from 1% to 11%.
-------------------------------------------------------------------------------
Non-medical health The net level premium method and assumptions as
insurance 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 4% of the Company's life insurance
in-force at both December 31, 2017 and 2016. Participating policies represented
21%, 26% and 27% of gross traditional life insurance premiums for the years
ended December 31, 2017, 2016 and 2015, 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.
35
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 do 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 withdrawals that are
life contingent.
------------------------------------------------------------------------------
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.
36
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Insurance (continued)
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, 2015... $ 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
Incurred guaranteed benefits. 55 63 92 11 221
Paid guaranteed benefits..... (1) -- -- -- (1)
Dispositions (1)............. (18) (134) (99) -- (251)
----- ----- ---------- ---------- ------
Balance at December 31, 2016. 268 467 620 102 1,457
Incurred guaranteed benefits. 58 112 105 7 282
Paid guaranteed benefits..... -- -- -- -- --
----- ----- ---------- ---------- ------
Balance at December 31, 2017. $ 326 $ 579 $725 $109 $1,739
===== ===== ========== ========== ======
Ceded:
Balance at January 1, 2015... $ 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
Incurred guaranteed benefits. 13 (8) (8) 8 5
Paid guaranteed benefits..... (1) -- -- -- (1)
Dispositions (1)............. (18) (39) (97) -- (154)
----- ----- ---------- ---------- ------
Balance at December 31, 2016. 44 (21) 249 71 343
Incurred guaranteed benefits. (44) 21 23 5 5
Paid guaranteed benefits..... -- -- -- -- --
----- ----- ---------- ---------- ------
Balance at December 31, 2017. $ -- $ -- $272 $ 76 $ 348
===== ===== ========== ========== ======
Net:
Balance at January 1, 2015... $ 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
Incurred guaranteed benefits. 42 71 100 3 216
Paid guaranteed benefits..... -- -- -- -- --
Dispositions (1)............. -- (95) (2) -- (97)
----- ----- ---------- ---------- ------
Balance at December 31, 2016. 224 488 371 31 1,114
Incurred guaranteed benefits. 102 91 82 2 277
Paid guaranteed benefits..... -- -- -- -- --
----- ----- ---------- ---------- ------
Balance at December 31, 2017. $ 326 $ 579 $453 $ 33 $1,391
===== ===== ========== ========== ======
--------
(1) See Note 3.
37
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Insurance (continued)
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,
---------------------------------------------------------------
2017 2016
----------------------------- -----------------------------
In the At In the At
Event of Death Annuitization Event of Death Annuitization
-------------- ------------- -------------- -------------
(Dollars in millions)
Annuity Contracts (1):
Variable Annuity Guarantees:
Total account value (2).................. $ 56,136 $ 25,257 $ 54,629 $ 24,310
Separate account value................... $ 45,431 $ 24,336 $ 43,359 $ 23,330
Net amount at risk....................... $ 990 (3) $ 353 (4) $ 1,386 (3) $ 328 (4)
Average attained age of contractholders.... 66 years 65 years 65 years 64 years
Other Annuity Guarantees:
Total account value (2).................. N/A $ 141 N/A $ 141
Net amount at risk....................... N/A $ 92 (5) N/A $ 92 (5)
Average attained age of contractholders.... N/A 52 years N/A 52 years
December 31,
---------------------------------------------------------------
2017 2016
----------------------------- -----------------------------
Secondary Paid-Up Secondary Paid-Up
Guarantees Guarantees Guarantees Guarantees
-------------- ------------- -------------- -------------
(Dollars in millions)
Universal and Variable Life Contracts (1):
Total account value (2).................. $ 4,679 $ 977 $ 4,306 $ 1,014
Net amount at risk (6)................... $ 46,704 $ 6,713 $ 49,161 $ 7,164
Average attained age of policyholders...... 54 years 62 years 53 years 62 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.
38
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Insurance (continued)
Account balances of contracts with guarantees were invested in separate
account asset classes as follows at:
December 31,
---------------
2017 2016
------- -------
(In millions)
Fund Groupings:
Equity.......... $21,464 $19,929
Balanced........ 19,443 18,833
Bond............ 3,798 3,882
Money Market.... 57 64
------- -------
Total.......... $44,762 $42,708
======= =======
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 Brighthouse 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
unconsolidated 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, 2017,
2016 and 2015, the Company issued $42.7 billion, $39.7 billion and
$35.1 billion, respectively, and repaid $41.4 billion, $38.5 billion and
$35.5 billion, respectively, of such funding agreements. At December 31, 2017
and 2016, liabilities for funding agreements outstanding, which are included in
policyholder account balances, were $34.2 billion and $30.8 billion,
respectively.
Metropolitan Life Insurance Company is a member of the Federal Home Loan Bank
("FHLB") of New York. Holdings of common stock of the FHLB of New York,
included in equity securities, were $733 million and $748 million at
December 31, 2017 and 2016, respectively.
39
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Insurance (continued)
The Company has also entered into funding agreements with the FHLB of New
York and a subsidiary of 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,
------------------------------------------------------------
2017 2016 2017 2016
------------ ------------ ---------------- ----------------
(In millions)
FHLB of New York (1). $ 14,445 $ 14,445 $ 16,605 (2) $ 16,828 (2)
Farmer Mac (3)....... $ 2,550 $ 2,550 $ 2,644 $ 2,645
--------
(1) Represents funding agreements issued to the FHLB of New York in exchange
for cash and for which the FHLB of New York has been granted a lien on
certain assets, some of which are in the custody of the FHLB of New York,
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 the
FHLB of New York 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, the FHLB of New York's
recovery on the collateral is limited to the amount of the Company's
liability to the FHLB of New York.
(2) Advances are collateralized by mortgage-backed securities. The amount of
collateral presented is at estimated fair value.
(3) Represents funding agreements issued to a subsidiary of Farmer Mac, as well
as 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 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
The following is information about incurred and paid claims development by
segment as of December 31, 2017. Such amounts are presented net of reinsurance,
and are not discounted. The tables present claims development and cumulative
claim payments by incurral year. The development tables are only presented for
significant short-duration product liabilities within each segment. Where
practical, up to 10 years of history has been provided. The information about
incurred and paid claims development prior to 2016 is presented as
supplementary information, as described in Note 1.
40
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Insurance (continued)
U.S.
Group Life - Term
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2017
--------------------------------------------------------------------------------- ----------------------------
For the Years Ended December 31, Total IBNR
--------------------------------------------------------------------------------- Liabilities Plus Cumulative
(Unaudited) Expected Number of
----------------------------------------------------------- Development on Reported
Incurral Year 2011 2012 2013 2014 2015 2016 2017 Reported Claims Claims
------------- --------- --------- --------- --------- --------- --------- ---------- ---------------- -----------
(Dollars in millions)
2011........ $ 6,318 $ 6,290 $ 6,293 $ 6,269 $ 6,287 $ 6,295 $ 6,294 $ 1 207,301
2012........ 6,503 6,579 6,569 6,546 6,568 6,569 3 208,626
2013........ 6,637 6,713 6,719 6,720 6,730 15 210,643
2014........ 6,986 6,919 6,913 6,910 5 210,797
2015........ 7,040 7,015 7,014 12 211,597
2016........ 7,125 7,085 21 206,610
2017........ 7,432 898 186,954
----------
Total................................................................................ 48,034
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (46,136)
All outstanding liabilities for incurral years prior to 2011, net of reinsurance....... 5
----------
Total unpaid claims and claim adjustment expenses, net of reinsurance................ $ 1,903
==========
Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
---------------------------------------------------------------------------------------
For the Years Ended December 31,
---------------------------------------------------------------------------------------
(Unaudited)
-------------------------------------------------------------
Incurral Year 2011 2012 2013 2014 2015 2016 2017
------------- ---------- ---------- ---------- ---------- ---------- ---------- ------------
(In millions)
2011............ $ 4,982 $ 6,194 $ 6,239 $ 6,256 $ 6,281 $ 6,290 $ 6,292
2012............ 5,132 6,472 6,518 6,532 6,558 6,565
2013............ 5,216 6,614 6,664 6,678 6,711
2014............ 5,428 6,809 6,858 6,869
2015............ 5,524 6,913 6,958
2016............ 5,582 6,980
2017............ 5,761
------------
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 46,136
============
Average Annual Percentage Payout
The following is supplementary information about average historical claims
duration as of December 31, 2017:
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
-------------------------------------------------------------------------------------------
Years.............. 1 2 3 4 5 6 7
Group Life -- Term. 78.3% 20.0% 0.7% 0.2% 0.4% 0.1% --%
41
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Insurance (continued)
Group Long-Term Disability
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2017
--------------------------------------------------------------------------------- ----------------------------
For the Years Ended December 31, Total IBNR
--------------------------------------------------------------------------------- Liabilities Plus Cumulative
(Unaudited) Expected Number of
----------------------------------------------------------- Development on Reported
Incurral Year 2011 2012 2013 2014 2015 2016 2017 Reported Claims Claims
------------- --------- --------- --------- --------- --------- --------- ---------- ---------------- -----------
(Dollars in millions)
2011........ $ 955 $ 916 $ 894 $ 914 $ 924 $ 923 $ 918 $ -- 21,642
2012........ 966 979 980 1,014 1,034 1,037 -- 20,085
2013........ 1,008 1,027 1,032 1,049 1,070 -- 21,123
2014........ 1,076 1,077 1,079 1,101 -- 22,838
2015........ 1,082 1,105 1,093 4 21,136
2016........ 1,131 1,139 26 17,585
2017........ 1,244 585 9,258
----------
Total................................................................................ 7,602
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (3,006)
All outstanding liabilities for incurral years prior to 2011, net of reinsurance....... 2,539
----------
Total unpaid claims and claim adjustment expenses, net of reinsurance................ $ 7,135
==========
Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
------------------------------------------------------------------------------------------
For the Years Ended December 31,
------------------------------------------------------------------------------------------
(Unaudited)
---------------------------------------------------------------
Incurral Year 2011 2012 2013 2014 2015 2016 2017
------------- ----------- ------------ ------------ ------------ ------------ ------------ -------------
(In millions)
2011......... $ 44 $ 217 $ 337 $ 411 $ 478 $ 537 $ 588
2012......... 43 229 365 453 524 591
2013......... 43 234 382 475 551
2014......... 51 266 428 526
2015......... 50 264 427
2016......... 49 267
2017......... 56
-------------
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 3,006
=============
Average Annual Percentage Payout
The following is supplementary information about average historical claims
duration as of December 31, 2017:
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
------------------------------------------------------------------------------------------
Years...................... 1 2 3 4 5 6 7
Group Long-Term Disability. 4.4% 18.8% 13.9% 8.5% 7.1% 6.4% 5.6%
Significant Methodologies and Assumptions
Group Life - Term and Group Long-Term Disability incurred but not paid
("IBNP") liabilities are developed using a combination of loss ratio and
development methods. Claims in the course of settlement are then subtracted
from the IBNP liabilities, resulting in the IBNR liabilities. The loss ratio
method is used in the period in which the claims are neither sufficient nor
credible. In developing the loss ratios, any material rate increases that
could change the underlying premium without affecting the estimated incurred
losses are taken into account. For periods where sufficient and credible
claim data exists, the development method is used based on the claim
triangles which categorize claims according to both the period in which they
were incurred and the period in which they were paid, adjudicated or
reported. The end result is a triangle of known data that is used to develop
known completion ratios and factors. Claims paid are then subtracted from
the estimated ultimate incurred claims to calculate the IBNP liability.
42
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Insurance (continued)
An expense liability is held for the future expenses associated with
the payment of incurred but not yet paid claims (IBNR and pending). This
is expressed as a percentage of the underlying claims liability and is
based on past experience and the anticipated future expense structure.
For Group Life - Term and Group Long-Term Disability, first year
incurred claims and allocated loss adjustment expenses increased in 2017
compared to the 2016 incurral year due to the growth in the size of the
business.
There were no significant changes in methodologies during 2017. The
assumptions used in calculating the unpaid claims and claim adjustment
expenses for Group Life - Term and Group Long-Term Disability are updated
annually to reflect emerging trends in claim experience.
No additional premiums or return premiums have been accrued as a result
of the prior year development.
Liabilities for Group Life - Term unpaid claims and claim adjustment
expenses are not discounted.
The liabilities for Group Long-Term Disability unpaid claims and claim
adjustment expenses were $6.0 billion and $5.8 billion at December 31,
2017 and 2016, respectively. These amounts were discounted using interest
rates ranging from 3% to 8%, based on the incurral year. The total
discount applied to these liabilities was $1.3 billion at both
December 31, 2017 and 2016. The amount of interest accretion recognized
was $510 million, $565 million and $517 million for the years ended
December 31, 2017, 2016 and 2015, respectively. These amounts were
reflected in policyholder benefits and claims.
For Group Life - Term, claims were based upon individual death claims.
For Group Long-Term Disability, claim frequency was determined by the
number of reported claims as identified by a unique claim number assigned
to individual claimants. Claim counts initially include claims that do not
ultimately result in a liability. These claims are omitted from the claim
counts once it is determined that there is no liability.
The Group Long-Term Disability IBNR, included in the development tables
above, was developed using discounted cash flows, and is presented on a
discounted basis.
43
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Insurance (continued)
Reconciliation of the Disclosure of Incurred and Paid Claims Development to
the Liability for Unpaid Claims and Claim Adjustment Expenses
The reconciliation of the net incurred and paid claims development tables
to the liability for unpaid claims and claims adjustment expenses on the
consolidated balance sheet was as follows at:
December 31, 2017
----------------------------------
(In millions)
Short-Duration:
Unpaid claims and allocated claims adjustment expenses, net of reinsurance:
U.S.:
Group Life - Term....................................................................... $ 1,903
Group Long-Term Disability.............................................................. 7,135
----------------
Total................................................................................. $ 9,038
Other insurance lines - all segments combined........................................... 504
-----------------
Total unpaid claims and allocated claims adjustment expenses, net of reinsurance...... 9,542
-----------------
Reinsurance recoverables on unpaid claims:
U.S.:
Group Life - Term....................................................................... 16
Group Long-Term Disability.............................................................. 95
----------------
Total................................................................................. 111
Other insurance lines - all segments combined........................................... 29
-----------------
Total reinsurance recoverable on unpaid claims........................................ 140
-----------------
Total unpaid claims and allocated claims adjustment expense........................... 9,682
Discounting............................................................................. (1,272)
-----------------
Liability for unpaid claims and claim adjustment liabilities - short-duration........... 8,410
Liability for unpaid claims and claim adjustment liabilities - all long-duration lines.. 3,680
-----------------
Total liability for unpaid claims and claim adjustment expense (included in future
policy benefits and other policy-related balances).................................. $ 12,090
=================
44
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Insurance (continued)
Rollforward of Claims and Claim Adjustment Expenses
Information regarding the liabilities for unpaid claims and claim
adjustment expenses was as follows:
Years Ended December 31,
-----------------------------------------------
2017 2016 (1) 2015 (2)
--------------- --------------- ---------------
(In millions)
Balance at December 31 of prior period..... $ 11,621 $ 7,527 $ 7,310
Less: Reinsurance recoverables........... 1,251 273 286
--------------- --------------- ---------------
Net balance at December 31 of prior period. 10,370 7,254 7,024
Cumulative adjustment (3).................. -- 3,277 --
--------------- --------------- ---------------
Net balance at January 1,.................. 10,370 10,531 7,024
Incurred related to:
Current year............................. 16,264 15,978 5,316
Prior years (4).......................... 175 322 13
--------------- --------------- ---------------
Total incurred......................... 16,439 16,300 5,329
Paid related to:
Current year............................. (12,212) (12,454) (3,415)
Prior years.............................. (3,908) (3,905) (1,684)
--------------- --------------- ---------------
Total paid............................. (16,120) (16,359) (5,099)
Dispositions (5)........................... -- (102) --
--------------- --------------- ---------------
Net balance at December 31,................ 10,689 10,370 7,254
Add: Reinsurance recoverables............ 1,401 1,251 273
--------------- --------------- ---------------
Balance at December 31,.................... $ 12,090 $ 11,621 $ 7,527
=============== =============== ===============
--------
(1) In addition to the revisions discussed in Note 1, at December 31, 2016, the
Net balance decreased by $712 million and the Reinsurance recoverables
increased by $712 million from those amounts previously reported primarily
to correct for the improper classification of reinsurance recoverables.
(2) Limited to group accident and non-medical health policies and contracts.
(3) Reflects the accumulated adjustment, net of reinsurance, upon
implementation of the new short-duration contracts guidance which clarified
the requirement to include claim information for long-duration contracts.
The accumulated adjustment primarily reflects unpaid claim liabilities, net
of reinsurance, for long-duration contracts as of the beginning of the
period presented. Prior periods have not been restated. See Note 1.
(4) During 2017, as a result of changes in estimates of insured events in the
respective prior year, claims and claim adjustment expenses associated with
prior years increased due to events incurred in prior years but reported
during current year. During 2016, as a result of changes in estimates of
insured events in the respective prior year, claims and claim adjustment
expenses associated with prior years increased due to the implementation of
new guidance related to short-duration contracts.
(5) See Note 3.
Separate Accounts
Separate account assets and liabilities include two categories of account
types: pass-through separate accounts totaling $75.2 billion and $73.6 billion
at December 31, 2017 and 2016, respectively, for which the policyholder assumes
all investment risk, and separate accounts for which the Company contractually
guarantees either a minimum return or account value to the policyholder which
totaled $55.6 billion and $60.2 billion at December 31, 2017 and 2016,
respectively. The latter category consisted primarily of guaranteed interest
contracts. The average interest rate credited on these contracts was 2.40% and
2.39% at December 31, 2017 and 2016, respectively.
45
Metropolitan Life Insurance Company
(A Wholly-Owned Subsidiary of MetLife, Inc.)
Notes to the Consolidated Financial Statements -- (continued)
4. Insurance (continued)
For the years ended December 31, 2017, 2016 and 2015, 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 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 significantly impact 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.
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)
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, policyholder behavior and expenses to
administer business. Management annually updates assumptions used in the
calculation of estimated gross margins and profits which may have significantly
changed. If the update of assumptions causes expected future gross margins and
profits to increase, DAC and VOBA amortization will decrease, resulting in a
current period increase to earnings. The opposite result occurs when the
assumption update causes expected future gross margins and profits to decrease.
Periodically, the Company modifies product benefits, features, rights or
coverages that occur by the exchange of a contract for a new contract, or by
amendment, endorsement, or rider to a contract, or by election or coverage
within a contract. If such modification, referred to as an internal
replacement, substantially changes the contract, the associated DAC or VOBA is
written off immediately through income and any new deferrable costs associated
with the replacement contract are deferred. If the modification does not
substantially change the contract, the DAC or VOBA amortization on the original
contract will continue and any acquisition costs associated with the related
modification are expensed.
Amortization of DAC and VOBA is attributed to net investment gains (losses)
and net derivative gains (losses), and to other expenses for the amount of
gross margins or profits originating from transactions other than 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.
47
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 DAC and VOBA was as follows:
Years Ended December 31,
-------------------------------------------------
2017 2016 2015
--------------- --------------- ---------------
(In millions)
DAC:
Balance at January 1,........................................... $ 4,714 $ 5,977 $ 5,905
Capitalizations................................................. 61 332 482
Amortization related to:
Net investment gains (losses) and net derivative gains (losses). 91 353 (111)
Other expenses.................................................. (331) (791) (624)
--------------- --------------- ---------------
Total amortization............................................ (240) (438) (735)
--------------- --------------- ---------------
Unrealized investment gains (losses)............................ (215) (12) 325
Dispositions (1)................................................ -- (1,145) --
--------------- --------------- ---------------
Balance at December 31,......................................... 4,320 4,714 5,977
--------------- --------------- ---------------
VOBA:
Balance at January 1,........................................... 29 66 70
Amortization related to:
Other expenses.................................................. (1) (3) (7)
--------------- --------------- ---------------
Total amortization............................................ (1) (3) (7)
--------------- --------------- ---------------
Unrealized investment gains (losses)............................ -- 13 3
Dispositions (1)................................................ -- (47) --
--------------- --------------- ---------------
Balance at December 31,......................................... 28 29 66
--------------- --------------- ---------------
Total DAC and VOBA:
Balance at December 31,......................................... $ 4,348 $ 4,743 $ 6,043
=============== =============== ===============
--------
(1) See Note 3.
Information regarding total DAC and VOBA by segment, as well as Corporate &
Other, was as follows at:
December 31,
---------------------------
2017 2016
------------- -------------
(In millions)
U.S............... $ 413 $ 421
MetLife Holdings.. 3,930 4,317
Corporate & Other. 5 5
------------- -------------
Total........... $ 4,348 $ 4,743
============= =============
48
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 other intangibles was as follows:
Years Ended December 31,
----------------------------------
2017 2016 2015
---------- ---------- ----------
(In millions)