-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PENML8dW2kpKNnnQi0B8Y0G/zc7oBlAzftbXUTknxdEkRyVNrTTBQRL0pGaqO+9m eYTLsskGWl5xF3U1k3vWvA== 0000950123-08-017336.txt : 20081210 0000950123-08-017336.hdr.sgml : 20081210 20081210165648 ACCESSION NUMBER: 0000950123-08-017336 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20081210 DATE AS OF CHANGE: 20081210 EFFECTIVENESS DATE: 20081210 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES CENTRAL INDEX KEY: 0001209404 IRS NUMBER: 000000000 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 333-152190 FILM NUMBER: 081241548 BUSINESS ADDRESS: STREET 1: METLIFE INSURANCE COMPANY OF CONNECTICUT STREET 2: ONE CITYPLACE, 185 ASYLUM STREET, 3CP CITY: HARTFORD STATE: CT ZIP: 06103-3415 BUSINESS PHONE: 1-866-547-3793 MAIL ADDRESS: STREET 1: METLIFE INSURANCE COMPANY OF CONNECTICUT STREET 2: ONE CITYPLACE, 185 ASYLUM STREET, 3CP CITY: HARTFORD STATE: CT ZIP: 06103-3415 FORMER COMPANY: FORMER CONFORMED NAME: TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES DATE OF NAME CHANGE: 20021210 0001209404 S000005920 METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES C000068745 Universal Select Annuity (A) 497 1 y61056ae497.txt 497 UNIVERSAL SELECT ANNUITY ISSUED BY METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES METLIFE INSURANCE COMPANY OF CONNECTICUT SUPPLEMENT DATED DECEMBER 8, 2008 TO THE PROSPECTUS DATED APRIL 28, 2008 1. COMBINATION OF SEPARATE ACCOUNTS Effective December 8, 2008, the Company combined MetLife of CT Fund U for Variable Annuities (the "Former Separate Account") with and into MetLife of CT Separate Account Eleven for Variable Annuities (the "Separate Account"). The Separate Account was established on November 14, 2002 and is registered with the Securities and Exchange Commission as a unit investment trust under the Investment Company Act of 1940, as amended. In connection with the combination of the Former Separate Account with and into the Separate Account (the "Combination"), we transferred the assets of the Former Separate Account to the Separate Account and the Separate Account assumed the liabilities and contractual obligations of the Former Separate Account. ALL REFERENCES IN YOUR PROSPECTUS TO THE FORMER SEPARATE ACCOUNT NOW REFER TO THE SEPARATE ACCOUNT. The Combination does not affect you in any way. More particularly: - There are no changes in our obligations or your rights and benefits under the Contract as a result of the Combination. - Your Contract Value is not affected by the Combination and no charges have been or will be imposed in connection therewith. - The Variable Funding Options available under your Contract have not changed as a result of the Combination. - Your Contract Value is allocated to the same Variable Funding Options (with the same Accumulation Unit values or Annuity Unit values) as it was before the Combination. - The Combination does not result in any federal income tax consequences to you. After the Combination, the financial statements will report assets and liabilities on a combined basis. The financial statements also will combine any subaccounts that invest in the same Variable Funding Options and illustrate unit values as a range. If you have any questions, please contact us at 800-842-9406. 2. FEE TABLES Expenses shown in the fee tables do not include any premium taxes of up to 3.5% (see "Charges and Deductions--Premium Tax") or other taxes, which may apply. 3. THE ANNUITY CONTRACT--THE VARIABLE FUNDING OPTIONS Each Underlying Fund has different investment objectives and risks. THE UNDERLYING FUND PROSPECTUSES CONTAIN MORE DETAILED INFORMATION ON EACH UNDERLYING FUND'S INVESTMENT STRATEGY, INVESTMENT ADVISERS AND ITS FEES. YOU MAY OBTAIN AN UNDERLYING FUND PROSPECTUS BY CALLING 1-800-842-9406 OR THROUGH YOUR REGISTERED REPRESENTATIVE. YOU SHOULD READ THE PROSPECTUSES FOR THE UNDERLYING FUNDS CAREFULLY. We do not guarantee the investment results of the Underlying Funds. 4. OTHER INFORMATION--CONFORMITY WITH STATE AND FEDERAL LAWS The Prospectus describes all material features and benefits of the Contract. The language in the Prospectus determines your rights under the federal securities laws. THIS SUPPLEMENT SHOULD BE READ AND RETAINED FOR FUTURE REFERENCE UNIVERSAL ANNUITY ADVANTAGE UNIVERSAL SELECT ANNUITY STATEMENT OF ADDITIONAL INFORMATION DATED DECEMBER 8, 2008 FOR METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES ISSUED BY METLIFE INSURANCE COMPANY OF CONNECTICUT MetLife Insurance Company of Connecticut (the "Company") is a stock insurance company chartered in 1863 in Connecticut and has continuously engaged in the insurance business since that time. The Company is licensed to conduct life insurance business in all states of the United States, the District of Columbia, Puerto Rico, Guam, the U.S. and British Virgin Islands and the Bahamas. The Company is a wholly-owned subsidiary of MetLife, Inc., a publicly-traded company. MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. The Company's Home Office is located at One Cityplace, Hartford, Connecticut 06103-3415. STATE REGULATION. The Company is subject to the laws of the state of Connecticut governing insurance companies and to regulation by the Insurance Commissioner of the state of Connecticut (the "Commissioner"). An annual statement covering the operations of the Company for the preceding year, as well as its financial conditions as of December 31 of such year, must be filed with the Commissioner in a prescribed format on or before March 1 of each year. The Company's books and assets are subject to review or examination by the Commissioner or his agents at all times, and a full examination of its operations is conducted at least once every four years. The Company is also subject to the insurance laws and regulations of all other states in which it is licensed to operate. However, the insurance departments of each of these states generally apply the laws of the home state (jurisdiction of domicile) in determining the field of permissible investments. THE SEPARATE ACCOUNT. Effective December 8, 2008, the Company combined MetLife of CT Fund U for Variable Annuities (the "Former Separate Account") with and into MetLife of CT Separate Account Eleven for Variable Annuities (the "Separate Account"). The Separate Account meets the definition of a separate account under the federal securities laws, and complies with the provisions of the Investment Company Act of 1940, as amended. Additionally, the operations of the Separate Account are subject to the provisions of Section 38a-433 of the Connecticut General Statutes, which authorizes the Commissioner to adopt regulations under it. Section 38a-433 contains no restrictions on the investments of the Separate Account, and the Commissioner has adopted no regulations under the Section that affect the Separate Account. The Company holds title to the assets of the Separate Account. The assets are kept physically segregated and are held separate and apart from the Company's general corporate assets. Records are maintained of all purchases and redemptions of the Underlying Funds held in each of the Variable Funding Options. PRINCIPAL UNDERWRITER MetLife Investors Distribution Company ("MLIDC") serves as principal underwriter for the Separate Account and the Contracts. The offering is continuous. MLIDC's principal executive offices are located at 5 Park Plaza, Suite 1900, Irvine, CA 92614. MLIDC is affiliated with the Company and the Separate Account. DISTRIBUTION AND PRINCIPAL UNDERWRITING AGREEMENT Information about the distribution of the Contracts is contained in the prospectus (see "Other Information -- Distribution of the Variable Annuity Contracts"). Additional information is provided below. Under the terms of the Distribution and Principal Underwriting Agreement among the Separate Account, MLIDC and the Company, MLIDC acts as agent for the distribution of the Contracts and as principal underwriter for the Contracts. The Company reimburses MLIDC for certain sales and overhead expenses connected with sales functions. The following table shows the amount of commissions paid to and the amount of commissions retained by the Distributor and Principal Underwriter over the past three years. UNDERWRITING COMMISSIONS
UNDERWRITING COMMISSIONS PAID AMOUNT OF UNDERWRITING TO THE DISTRIBUTOR BY THE COMMISSIONS RETAINED BY THE YEAR COMPANY DISTRIBUTOR - -------------------------------- -------------------------------- -------------------------------- 2007............................ $128,229,602 $0 2006............................ $ 92,981,365 $0 2005............................ $135,616,994 $0
The Company and MLIDC have also entered into preferred distribution arrangements with certain broker-dealer firms. These arrangements are sometimes called "shelf space" arrangements. Under these arrangements, the Company and MLIDC pay separate, additional compensation to the broker-dealer firms for services the broker-dealer firms provide in connection with the distribution of the Company's products. These services may include providing the Company with access to the distribution network of the broker-dealer firms, the hiring and training of the broker-dealer firms' sales personnel, the sponsoring of conferences and seminars by the broker-dealer firms, or general marketing services performed by the broker-dealer firms. The broker-dealer firms may also provide other services or incur other costs in connection with distributing the Company's products. These preferred distribution arrangements will not be offered to all broker- dealer firms and the terms of such arrangements may differ between broker-dealer firms. Compensation payable under such arrangements may be based on aggregate, net or anticipated sales of the Contract, total assets attributable to sales of the Contract by registered representatives of the broker-dealer firms or based on the length of time that a Contract owner has owned the Contract. Any such compensation payable to a broker-dealer firm will be made by MLIDC or the Company out of their own assets and will not result in any additional direct charge to you. Such compensation may cause the broker-dealer firms and their registered representatives to favor the Company's products. The amount of additional compensation (non-commission amounts) paid to selected broker-dealer firms during 2007 ranged from $86,518 to $5,658,714. The amount of commissions paid to selected broker-dealer firms during 2007 ranged from $91,352 to $10,077,903. The amount of total compensation (includes non-commission as well as commission amounts) paid to selected broker-dealer firms during 2007 ranged from $433,549 to $10,536,736. The following list sets forth the names of broker-dealer firms that have entered into preferred distribution arrangements with the Company and MLIDC under which the broker-dealer firms received additional compensation in 2007 in connection with the sale of our variable annuity contracts, variable life policies and other insurance products (including the Contracts). The broker-dealer firms are listed in alphabetical order: Citicorp Investment Services Citigroup Global Markets Inc. (d/b/a Smith Barney) DWS Scudder Distributors, Inc. Morgan Stanley DW, Inc. PFS Investments, Inc. (d/b/a Primerica) Pioneer Funds Distributor, Inc. There are other broker-dealer firms who receive compensation for servicing our contracts, and the account value of the contracts or the amount of added purchase payments received may be included in determining their additional compensation, if any. REDUCTION OR ELIMINATION OF THE WITHDRAWAL CHARGE. We may reduce or eliminate the withdrawal charge under the Contract when certain sales or administration of the Contract result in savings or reduced expenses and/or risks. We will not reduce or eliminate the withdrawal charge where such reduction or elimination would be unfairly discriminatory to any person. VALUATION OF ASSETS FUNDING OPTIONS. The value of the assets of each Funding Option is determined at 4:00 p.m. eastern time on each business day, unless we need to close earlier due to an emergency. A business day is any day the New York Stock Exchange is open. It is expected that the Exchange will be closed on Saturdays and Sundays and on the observed holidays of New Year's Day, Martin Luther King, Jr. Day, President's Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Each security traded on a national securities exchange is valued at the last reported sale price on the business day. If there has been no sale on that day, then the value of the security is taken to be the mean between the reported bid and asked prices on the business day or on the basis of quotations received from a reputable broker or any other recognized source. THE CONTRACT VALUE: The value of an Accumulation Unit on any business day is determined by multiplying the value on the preceding business day by the net investment factor for the valuation period just ended. The net investment factor is used to measure the investment performance of an investment alternative from one Valuation Period to the next. The net investment factor is determined by dividing (a) by (b) and adding (c) to the result where: (a) is the net result of the Valuation Period's investment income (including, in the case of assets invested in an underlying mutual fund, distributions whose ex-dividend date occurs during the Valuation Period), PLUS capital gains and losses (whether realized or unrealized), LESS any deduction for applicable taxes (presently zero); (b) is the value of the assets at the beginning of the Valuation Period (or, in the case of assets invested in an underlying mutual fund, value is based on the net asset value of the mutual fund); (c) is the net result of 1.000, LESS the Valuation Period deduction for the insurance charge, LESS the applicable deduction for the investment advisory fee. The net investment factor may be more or less than one. THE CONTRACT VALUE. The value of an Accumulation Unit on any business day is determined by multiplying the value on the preceding business day by the net investment factor for the valuation period just ended. The net investment factor is used to measure the investment performance of a Funding Option from one valuation period to the next. The net investment factor for a Funding Option for any valuation period is equal to the sum of 1.000000 plus the net investment rate (the gross investment rate less any applicable Funding Option deductions during the valuation period relating to the mortality and expense risk charge and the administrative expense charge). The gross investment rate of a Funding Option is equal to (a) minus (b), divided by (c) where: (a) = investment income plus capital gains and losses (whether realized or unrealized); (b) = any deduction for applicable taxes (presently zero); and (c) = the value of the assets of the funding option at the beginning of the valuation period. The gross investment rate may be either positive or negative. A Funding Option's investment income includes any distribution whose ex-dividend date occurs during the valuation period. ACCUMULATION UNIT VALUE. The value of the Accumulation Unit for each Funding Option was initially established at $1.00. The value of an Accumulation Unit on any business day is determined by multiplying the value on the preceding business day by the net investment factor for the valuation period just ended. The net investment factor is calculated for each Funding Option and takes into account the investment performance, expenses and the deduction of certain expenses. ANNUITY UNIT VALUE. The initial Annuity Unit value applicable to each Funding Option was established at $1.00. An Annuity Unit value as of any business day is equal to (a) the value of the Annuity Unit on the preceding business day, multiplied by (b) the corresponding net investment factor for the business day just ended, divided by (c) the assumed net investment factor for the valuation period. (For example, the assumed net investment factor based on an annual assumed net investment rate of 3.0% for a valuation period of one day is 1.000081 and, for a period of two days, is 1.000081 x 1.000081.) ANNUITY UNIT VALUE FOR UNIVERSAL SELECT ANNUITY CONTRACTS. An Annuity Unit value as of any business day is equal to (a) the value of the Annuity Unit on the preceding business day, multiplied by (b) the corresponding net investment factor for the business day just ended, divided by (c) the assumed net investment factor for the valuation period. (For example, the assumed net investment factor based on an annual assumed net investment rate of 3.0% for a valuation period of one day is 1.000081 and, for a period of two days, is 1.000081 x1.000081.) ANNUITY UNIT VALUE FOR UNIVERSAL ANNUITY ADVANTAGE CONTRACTS. An Annuity Unit value as of any business day is equal to (a) the value of the Annuity Unit on the preceding business day, multiplied by (b) the corresponding net investment factor for the business day just ended, divided by (c) the assumed net investment factor for the valuation period. (For example, the assumed net investment factor based on an annual assumed net investment rate of 3.5% for a valuation period of one day is 1.000094 and, for a period of two days, is 1.000094 x 1.000094.) CALCULATION OF MONEY MARKET YIELD From time to time, we may quote in advertisements and sales literature the current yield for a money market Subaccount for a 7-day period in a manner that does not take into consideration any realized or unrealized gains or losses on shares of the Underlying Fund or on its respective portfolio securities. On a Contract-specific basis, the current yield is computed by: (a) determining the net change (exclusive of realized gains and losses on the sales of securities and unrealized appreciation and depreciation) at the end of the 7-day period in the value of a hypothetical account under a Contract having a balance of one Accumulation Unit at the beginning of the period, (b) dividing such net change in Subaccount value by the Subaccount value at the beginning of the period to determine the base period return; and (c) annualizing this quotient on a 365-day basis. The net change in Subaccount value reflects net income from the Underlying 365-day basis. The net change in Subaccount value reflects: (1) net income from the Underlying Fund attributable to the hypothetical account; and (2) Contract-level charges and deductions imposed under the Contract which are attributable to the hypothetical account. On a Contract-specific basis, current yield will be calculated according to the following formula: Current Yield = ((NCF -- ES) / UV) x (365 / 7) Where: NCF = the net change in the value of the Underlying Fund (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation) for the 7-day period attributable to a hypothetical account having a balance of one Accumulation Unit. ES = per unit expenses for the hypothetical account for the 7-day period. UV = the unit value on the first day of the 7-day period. We may also quote the effective yield of a money market Subaccount for the same 7-day period, determined on a compounded basis. The effective yield is calculated by compounding the unannualized base period return according to the following formula: Effective Yield = (1 + ((NCF -- ES) / UV)) 365 / 7 -- 1 Where: NCF = the net change in the value of the Underlying Fund (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation) for the 7-day period attributable to a hypothetical account having a balance of one Accumulation Unit. ES = per unit expenses of the hypothetical account for the 7-day period. UV = the unit value for the first day of the 7-day period. Because of the charges and deductions imposed under the Contract, the yield for the Subaccount will be lower than the yield for the corresponding Underlying Fund. The yields on amounts held in the Subaccount normally will fluctuate on a daily basis. Therefore, the disclosed yield for any given past period is not an indication or representation of future yields or rates of return. The actual yield for the Subaccount is affected by changes in interest rates on money market securities, average portfolio maturity of the Underlying Fund, the types and qualities of portfolio securities held by the Underlying Fund, and the Underlying Fund's operating expenses. Yields on amounts held in the Subaccount may also be presented for periods other than a 7-day period. FEDERAL TAX CONSIDERATIONS The following description of the federal income tax consequences under this Contract is general in nature and is therefore not exhaustive and is not intended to cover all situations. Because of the complexity of the law and the fact that the tax results will vary according to the factual status of the individual involved, a person contemplating purchase of an annuity contract and by a Contract Owner or beneficiary who may make elections under a Contract should consult with a qualified tax or legal adviser. FOREIGN TAX CREDIT To the extent permitted under federal income tax law, the Separate Account may claim the benefit of certain tax credits attributable to taxes paid by certain of the Portfolios to foreign jurisdictions. MANDATORY DISTRIBUTIONS FOR QUALIFIED PLANS Federal tax law requires that minimum annual distributions begin by April 1st of the calendar year following the later of calendar year in which a participant under a qualified plan or a Section 403(b) annuity attains age 70 1/2 or retires. Minimum annual distributions under an IRA must begin by April 1(st) of the calendar year in which the Contract Owner attains 70 1/2 regardless of when he or she retires. Distributions must also begin or be continued according to the minimum distribution rules under the Code following the death of the Contract Owner or the annuitant. You should note that the U.S. Treasury recently issued regulations clarifying the operation of the required minimum distribution rules. Upon the death of the Contract Owner and/or Annuitant of a Qualified Contract, the funds remaining in the Contract must be completely withdrawn within 5 years from the date of death (including in a single lump sum) or minimum distributions may be taken over the life expectancy of the individual beneficiaries (and in certain situations, trusts for individuals), provided such distributions are payable at least annually and begin within one year from the date of death. Special rules apply in the case of an IRA where the beneficiary is the surviving spouse which allow the spouse to assume the Contract as owner. Alternative rules permit a spousal beneficiary under a qualified contract, including an IRA, to defer the minimum distribution requirements until the end of the year in which the deceased spouse would have attained age 70 1/2 or to rollover the death proceeds to his or her own IRA or to another eligible retirement plan in which he or she participates. NONQUALIFIED ANNUITY CONTRACTS Individuals may purchase tax-deferred annuities without any limits. The purchase payments receive no tax benefit, deduction or deferral, but taxes on the increases in the value of the contract are generally deferred until distribution and transfers between the various investment options are not subject to tax. Generally, if an annuity contract is owned by other than an individual (or an entity such as a trust or other "look-through" entity which owns for an individual's benefit), the owner will be taxed each year on the increase in the value of the contract. An exception applies for purchase payments made before March 1, 1986. The benefits of tax deferral of income earned under a non- qualified annuity should be compared with the relative federal tax rates on income from other types of investments (dividends and capital gains, taxable at 15% or less) relative to the ordinary income treatment received on annuity income and interest received on fixed instruments (notes, bonds, etc.). If two or more annuity contracts are purchased from the same insurer within the same calendar year, such annuity contract will be aggregated for federal income tax purposes. As a result, distributions from any of them will be taxed based upon the amount of income in all of the same calendar year series of annuities. This will generally have the effect of causing taxes to be paid sooner on the deferred gain in the contracts. Those receiving partial distributions made before the maturity date will generally be taxed on an income-first basis to the extent of income in the contract. If you are exchanging another annuity contract for this annuity, certain pre-August 14, 1982 deposits into an annuity contract that have been placed in the contract by means of a tax-deferred exchange under Section 1035 of the Code may be withdrawn first without income tax liability. This information on deposits must be provided to the Company by the other insurance company at the time of the exchange. There is income in the contract generally to the extent the cash value exceeds the investment in the contract. The investment in the contract is equal to the amount of premiums paid less any amount received previously which was excludable from gross income. Any direct or indirect borrowing against the value of the contract or pledging of the contract as security for a loan will be treated as a cash distribution under the tax law. In order to be treated as an annuity contract for federal income tax purposes, Section 72(s) of the Code requires any non-qualified contract to contain certain provisions specifying how your interest in the contract will be distributed in the event of the death of an owner of the contract. Specifically, Section 72(s) requires that (a) if an owner dies on or after the annuity starting date, but prior to the time the entire interest in the contract has been distributed, the entire interest in the contract will be distributed at least as rapidly as under the method of distribution being used as of the date of such owner's death; and (b) if any owner dies prior to the annuity starting date, the entire interest in the contract will be distributed within five years after the date of such owner's death. These requirements will be considered satisfied as to any portion of an owner's interest which is payable to or for the benefit of a designated beneficiary and which is distributed over the life of such designated beneficiary or over a period not extending beyond the life expectancy of that beneficiary, provided that such distributions begin within one year of the owner's death. The designated beneficiary refers to a natural person designated by the owner as a beneficiary and to whom ownership of the contract passes by reason of death. However, if the designated beneficiary is the surviving spouse of the deceased owner, the contract may be continued with the surviving spouse as the successor-owner. Contracts will be administered by the Company in accordance with these rules and the Company will make a notification when payments should be commenced. Special rules apply regarding distribution requirements when an annuity is owned by a trust or other entity for the benefit of one or more individuals. INDIVIDUAL RETIREMENT ANNUITIES To the extent of earned income for the year and not exceeding the applicable limit for the taxable year, an individual may make deductible contributions to an individual retirement annuity (IRA). The applicable limit ($2,000 per year prior to 2002) has been increased by the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA"). The limit is $3,000 for calendar years 2002 -- 2004, $4,000 for calendar years 2005-2007, and $5,000 for 2008, and will be indexed for inflation in years subsequent to 2008. Additional "catch-up" contributions may be made to an IRA by individuals age 50 or over. There are certain limits on the deductible amount based on the adjusted gross income of the individual and spouse and based on their participation in a retirement plan. If an individual is married and the spouse does not have earned income, the individual may establish IRAs for the individual and spouse. Purchase payments may then be made annually into IRAs for both spouses in the maximum amount of 100% of earned income up to a combined limit based on the individual limits outlined above. The Code provides for the purchase of a Simplified Employee Pension (SEP) plan. A SEP is funded through an IRA with an annual employer contribution limit of up to $40,000 for each participant. The Internal Revenue Services has not reviewed the contract for qualifications as an IRA, and has not addressed in a ruling of general applicability whether a death benefit provision such as the optional enhanced death benefit in the contract comports with IRA qualification requirements. SIMPLE PLAN IRA FORM Effective January 1, 1997, employers may establish a savings incentive match plan for employees ("SIMPLE plan") under which employees can make elective salary reduction contributions to an IRA based on a percentage of compensation of up to the applicable limit for the taxable year. The applicable limit was increased under EGTRRA. The applicable limit was increased under EGTRRA to $7,000 for 2002, $8,000 for 2003, $9,000 in 2004, $10,000 in 2005 (which will be indexed for inflation for years after 2005. (Alternatively, the employer can establish a SIMPLE cash or deferred arrangement under IRS Section 401(k)). Under a SIMPLE plan IRA, the employer must either make a matching contribution or a nonelective contribution based on the prescribed formulas for all eligible employees. Early withdrawals are subject to the 10% early withdrawal penalty generally applicable to IRAs, except that an early withdrawal by an employee under a SIMPLE plan IRA, within the first two years of participation, shall be subject to a 25% early withdrawal tax. ROTH IRAS Effective January 1, 1998, Section 408A of the Code permits certain individuals to contribute to a Roth IRA. Eligibility to make contributions is based upon income, and the applicable limits vary based on marital status and/or whether the contribution is a rollover contribution from another IRA or an annual contribution. Contributions to a Roth IRA, which are subject to certain limitations (similar to the annual limits for the traditional IRA's), are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. A conversion of a "traditional" IRA to a Roth IRA may be subject to tax and other special rules apply. You should consult a tax adviser before combining any converted amounts with other Roth IRA contributions, including any other conversion amounts from other tax years. Qualified distributions from a Roth IRA are tax-free. A qualified distribution requires that the Roth IRA has been held for at least 5 years, and the distribution is made after age 59 1/2, on death or disability of the owner, or for a limited amount ($10,000) for a qualified first time home purchase for the owner or certain relatives. Income tax and a 10% penalty tax may apply to distributions made (1) before age 59 1/2 (subject to certain exceptions) or (2) during five taxable years starting with the year in which the first contribution is made to any Roth IRA of the individual. SECTION 403(B) PLANS Under Code section 403(b), payments made by public school systems and certain tax exempt organizations to purchase annuity contracts for their employees are excludable from the gross income of the employee, subject to certain limitations. However, these payments may be subject to FICA (Social Security) taxes. A qualified contract issued as a tax-sheltered annuity under section 403(b) will be amended as necessary to conform to the requirements of the Code. The annual limits under Code Section 403(b) for employee salary reduction deferrals are increased under the same rules applicable to 401(k) plans ($14,000 in 2005). Code section 403(b)(11) restricts this distribution under Code section 403(b) annuity contracts of: (1) elective contributions made in years beginning after December 31, 1998; (2) earnings on those contributions; and (3) earnings in such years on amounts held as of the last year beginning before January 1, 1989. Distribution of those amounts may only occur upon death of the employee, attainment of age 59 1/2, separation from service, disability, or financial hardship. In addition, income attributable to elective contributions may not be distributed in the case of hardship. QUALIFIED PENSION AND PROFIT-SHARING PLANS Like most other contributions made under a qualified pension or profit-sharing plan, purchase payments made by an employer are not currently taxable to the participant and increases in the value of a contract are not subject to taxation until received by a participant or beneficiary. Distributions are generally taxable to the participant or beneficiary as ordinary income in the year of receipt. Any distribution that is considered the participant's "investment in the contract" is treated as a return of capital and is not taxable. Under a qualified plan, the investment in the contract may be zero. The annual limits that apply to the amounts that may be contributed to a defined contribution plan each year were increased by EGTRRA. The maximum total annual limit was increased from $35,000 to $40,000 ($42,000 for 2005). The limit on employee salary reduction deferrals (commonly referred to as "401(k) contributions") increase on a graduated basis; $11,000 in 2002, $12,000 in 2003, $13,000 in 2004, $14,000 in 2005 and $15,000 in 2006. The $15,000 annual limit will be indexed for inflation after 2006. Additional "catch-up contributions" may be made by individuals age 50 or over. Amounts attributable to salary reduction contributions under Code Section 401(k) and income thereon may not be withdrawn prior to severance from employment, death, total and permanent disability, attainment of age 59 1/2, or in the case of hardship. FEDERAL INCOME TAX WITHHOLDING The portion of a distribution, which is taxable income to the recipient, will be subject to federal income tax withholding as follows: 1. ELIGIBLE ROLLOVER DISTRIBUTION FROM SECTION 403(B) PLANS OR ARRANGEMENTS, FROM QUALIFIED PENSION AND PROFIT-SHARING PLANS, OR FROM 457 PLANS SPONSORED BY GOVERNMENTAL ENTITIES There is a mandatory 20% tax withholding for plan distributions that are eligible for rollover to an IRA or to another qualified retirement plan (including a 457 plan sponsored by a governmental entity) but that are not directly rolled over. A distribution made directly to a participant or beneficiary may avoid this result if: (a) a periodic settlement distribution is elected based upon a life or life expectancy calculation, or (b) a term-for-years settlement distribution is elected for a period of ten years or more, payable at least annually, or (c) a minimum required distribution as defined under the tax law is taken after the attainment of the age of 70 1/2 or as otherwise required by law, or (d) the distribution is a hardship distribution. A distribution including a rollover that is not a direct rollover will be subject to the 20% withholding, and the 10% additional tax penalty on premature withdrawals may apply to any amount not added back in the rollover. The 20% withholding may be recovered when the participant or beneficiary files a personal income tax return for the year if a rollover was completed within 60 days of receipt of the funds, except to the extent that the participant or spousal beneficiary is otherwise underwithheld or short on estimated taxes for that year. 2. OTHER NON-PERIODIC DISTRIBUTIONS (FULL OR PARTIAL REDEMPTIONS) To the extent not subject to 20% mandatory withholding as described in 1. above, the portion of a non-periodic distribution, which constitutes taxable income, will be subject to federal income tax withholding, if the aggregate distributions exceed $200 for the year, unless the recipient elects not to have taxes withheld. If no such election is made, 10% of the taxable portion of the distribution will be withheld as federal income tax; provided that the recipient may elect any other percentage. Election forms will be provided at the time distributions are requested. This form of withholding applies to all annuity programs. 3. PERIODIC DISTRIBUTIONS (DISTRIBUTIONS PAYABLE OVER A PERIOD GREATER THAN ONE YEAR) The portion of a periodic distribution, which constitutes taxable income, will be subject to federal income tax withholding under the wage withholding tables as if the recipient were married claiming three exemptions. A recipient may elect not to have income taxes withheld or have income taxes withheld at a different rate by providing a completed election form. Election forms will be provided at the time distributions are requested. This form of withholding applies to all annuity programs. Recipients who elect not to have withholding made are liable for payment of federal income tax on the taxable portion of the distribution. Recipients may also be subject to penalties under the estimated tax payment rules if withholding and estimated tax payments are not sufficient to cover tax liabilities. Recipients who do not provide a social security number or other taxpayer identification number will not be permitted to elect out of withholding. Additionally, U.S citizens residing outside of the country, or U.S. legal residents temporarily residing outside the country, are subject to different withholding rules and generally cannot elect out of withholding. INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The financial statements of each of the Subaccounts of the Separate Account and consolidated financial statements and the related financial statement schedules of MetLife Insurance Company of Connecticut and subsidiaries (which report expresses an unqualified opinion on the consolidated financial statements and financial statement schedules and includes explanatory paragraphs referring to changes in MetLife Insurance Company of Connecticut and subsidiaries' method of accounting for deferred acquisition costs as required by accounting guidance adopted on January 1, 2007, and the restatement of the 2007 consolidated financial statements) included in this Statement of Additional Information have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their reports appearing herein, and have been so included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing. The principal business address of Deloitte & Touche LLP is 201 East Kennedy Boulevard, Suite 1200, Tampa, FL 33602-5827. CONDENSED FINANCIAL INFORMATION -- UNIVERSAL SELECT ANNUITY - -------------------------------------------------------------------------------- The following tables provide the Accumulation Unit Values information for the MID-RANGE combinations of separate account charges. The Accumulation Unit Value information for the minimum separate account charge and the maximum variable account charge are contained in the Prospectus.
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.40% 3.0% AIR UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Dreyfus Stock Index Subaccount (Initial Shares) (1/92)............................................. 2007 1.266 1.334 -- 2006 1.111 1.266 20,311 2005 1.077 1.111 14,568 2004 1.000 1.077 -- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (5/01)................................... 2006 1.238 1.213 -- 2005 1.093 1.238 -- 2004 1.000 1.093 -- Capital Appreciation Fund Capital Appreciation Fund (12/87).................. 2006 1.351 1.337 -- 2005 1.159 1.351 6,518 2004 1.000 1.159 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (5/03)............................................. 2006 1.209 1.581 -- 2005 1.144 1.209 5,240 2004 1.000 1.144 -- Dreyfus Variable Investment Fund Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (5/98)..................................... 2007 1.154 1.012 8,238 2006 1.128 1.154 8,243 2005 1.081 1.128 8,248 2004 1.000 1.081 -- Fidelity(R) Variable Insurance Products VIP Asset Manager SM Subaccount (Initial Class) (1/92)............................................. 2007 1.129 1.183 -- 2006 1.067 1.129 -- 2005 1.040 1.067 -- 2004 1.000 1.040 -- VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.394 1.612 1,049 2006 1.268 1.394 758 2005 1.103 1.268 425 2004 1.000 1.103 -- VIP Equity -- Income Subaccount (Initial Class) (7/93)............................................. 2007 1.331 1.333 -- 2006 1.123 1.331 -- 2005 1.076 1.123 -- 2004 1.000 1.076 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.40% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- VIP Growth Subaccount (Initial Class) (1/92)....... 2007 1.170 1.465 612 2006 1.111 1.170 618 2005 1.065 1.111 363 2004 1.000 1.065 -- VIP Mid Cap Subaccount (Service Class 2) (5/01).... 2007 1.490 1.694 27,935 2006 1.344 1.490 24,854 2005 1.155 1.344 19,541 2004 1.000 1.155 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (5/01)........................ 2007 1.220 1.338 -- 2006 1.138 1.220 -- 2005 1.101 1.138 -- 2004 1.000 1.101 -- FTVIPT Mutual Shares Securities Subaccount (Class 2) (5/03).......................................... 2006 1.182 1.380 -- 2005 1.084 1.182 443 2004 1.000 1.084 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (5/04)........................ 2007 1.855 2.355 3,823 2006 1.468 1.855 2,980 2005 1.168 1.468 1,620 2004 1.000 1.168 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (5/04)................................... 2007 1.466 1.669 2,031 2006 1.224 1.466 1,375 2005 1.127 1.224 246 2004 1.000 1.127 -- FTVIPT Templeton Global Asset Allocation Subaccount (Class 1) (1/92)................................... 2007 1.382 1.463 -- 2006 1.154 1.382 -- 2005 1.127 1.154 -- 2004 1.000 1.127 -- FTVIPT Templeton Growth Securities Subaccount (Class 1) (1/92)................................... 2007 1.386 1.386 -- 2006 1.188 1.386 -- 2005 1.105 1.188 1,107 2004 1.000 1.105 -- High Yield Bond Trust High Yield Bond Trust (12/87)...................... 2006 1.041 1.065 -- 2005 1.042 1.041 2,629 2004 1.000 1.042 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.40% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Janus Aspen Series Janus Aspen International Growth Subaccount (Service Shares) (5/01)............................ 2007 2.188 2.762 567 2006 1.513 2.188 129 2005 1.163 1.513 -- 2004 1.000 1.163 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (5/03)...... 2006 1.127 1.267 -- 2005 1.099 1.127 -- 2004 1.000 1.099 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (5/01)............................................. 2007 1.286 1.287 13,575 2006 1.199 1.286 8,716 2005 1.089 1.199 2,788 2004 1.000 1.089 -- LMPVET Appreciation Subaccount (Class I) (5/02).... 2007 1.239 1.325 -- 2006 1.095 1.239 -- 2005 1.064 1.095 -- 2004 1.000 1.064 -- LMPVET Fundamental Value Subaccount (Class I) (5/01)............................................. 2007 1.277 1.275 279 2006 1.109 1.277 -- 2005 1.073 1.109 -- 2004 1.000 1.073 -- LMPVET Investors Subaccount (Class I) (5/01)....... 2007 1.310 1.342 -- 2006 1.124 1.310 -- 2005 1.070 1.124 -- 2004 1.000 1.070 -- LMPVET Large Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.150 1.194 -- 2006 1.115 1.150 -- 2005 1.074 1.115 -- 2004 1.000 1.074 -- LMPVET Small Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.343 1.457 -- 2006 1.208 1.343 -- 2005 1.167 1.208 -- 2004 1.000 1.167 -- LMPVET Social Awareness Subaccount (5/92).......... 2007 1.214 1.328 -- 2006 1.143 1.214 -- 2005 1.111 1.143 -- 2004 1.000 1.111 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.40% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (9/03).... 2007 1.036 1.035 -- 2006 1.009 1.036 -- 2005 0.999 1.009 -- 2004 1.000 0.999 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (5/01)......... 2007 1.283 1.347 -- 2006 1.101 1.283 -- 2005 1.073 1.101 -- 2004 1.000 1.073 -- Managed Assets Trust Managed Assets Trust (12/87)....................... 2006 1.084 1.120 -- 2005 1.059 1.084 5,161 2004 1.000 1.059 -- Met Investors Series Trust MIST Batterymarch Growth and Income Subaccount (Class A) (4/06)................................... 2007 1.282 1.363 -- 2006 1.189 1.282 -- MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (4/06).......................................... 2007 1.290 1.349 734 2006 1.353 1.290 747 MIST BlackRock High Yield Subaccount (Class A) (4/07) *........................................... 2007 1.177 1.147 2,778 MIST BlackRock Large-Cap Core Subaccount (Class A) (4/06)............................................. 2007 1.272 1.335 -- 2006 1.200 1.272 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.324 1.335 -- MIST Dreman Small-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.404 1.371 -- 2006 1.316 1.404 -- MIST Harris Oakmark International Subaccount (Class A) (4/06) *........................................ 2007 1.536 1.502 112 2006 1.392 1.536 -- MIST Janus Forty Subaccount (Class A) (4/06)....... 2007 1.373 1.766 10,316 2006 1.337 1.373 8,170 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.236 1.096 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (4/06)................................... 2007 1.185 1.242 10,691 2006 1.120 1.185 7,857 MIST Loomis Sayles Global Markets Subaccount (Class A) (4/07) *........................................ 2007 1.454 1.750 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.40% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Lord Abbett Bond Debenture Subaccount (Class A) (4/06).......................................... 2007 1.157 1.219 -- 2006 1.103 1.157 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (4/06)................................... 2007 1.077 1.102 1,399 2006 1.001 1.077 1,000 MIST Met/AIM Capital Appreciation Subaccount (Class A) (4/06).......................................... 2007 1.205 1.330 -- 2006 1.218 1.205 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (4/06)............................................. 2007 1.319 1.449 -- 2006 1.327 1.319 -- MIST MFS(R) Value Subaccount (Class A) (4/06)...... 2007 1.374 1.459 6,114 2006 1.242 1.374 6,114 MIST Neuberger Berman Real Estate Subaccount (Class A) (4/06).......................................... 2007 1.222 1.026 7,473 2006 1.003 1.222 7,047 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.014 1.075 -- MIST Pioneer Fund Subaccount (Class A) (4/06)...... 2007 1.300 1.346 -- 2006 1.207 1.300 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.131 1.249 -- 2006 1.073 1.131 -- MIST Pioneer Strategic Income Subaccount (Class A) (4/06)............................................. 2007 1.133 1.191 -- 2006 1.092 1.133 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (11/06) *....................................... 2007 1.294 1.237 -- 2006 1.267 1.294 -- MetLife Investment Funds, Inc. MetLife Investment Diversified Bond Subaccount (Class I) (6/93)................................... 2007 1.043 1.076 -- 2006 1.014 1.043 22,388 2005 1.008 1.014 9,362 2004 1.000 1.008 -- MetLife Investment International Stock Subaccount (Class I) (5/93)................................... 2007 1.592 1.706 -- 2006 1.276 1.592 8,220 2005 1.128 1.276 7,897 2004 1.000 1.128 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.40% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MetLife Investment Large Company Stock Subaccount (Class I) (6/93)................................... 2007 1.270 1.325 -- 2006 1.144 1.270 17,295 2005 1.087 1.144 14,884 2004 1.000 1.087 -- MetLife Investment Small Company Stock Subaccount (Class I) (5/93)................................... 2007 1.337 1.334 -- 2006 1.193 1.337 6,387 2005 1.128 1.193 5,647 2004 1.000 1.128 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (4/06).......................................... 2007 1.188 1.411 -- 2006 1.216 1.188 -- MSF BlackRock Bond Income Subaccount (Class A) (4/06) *........................................... 2007 1.042 1.094 169 2006 1.001 1.042 -- MSF BlackRock Diversified Subaccount (Class A) (4/07)............................................. 2007 1.178 1.189 -- MSF BlackRock Money Market Subaccount (Class A) (4/06) *........................................... 2007 1.025 1.063 -- 2006 1.000 1.025 2,684 MSF FI Large Cap Subaccount (Class A) (4/06)....... 2007 1.130 1.158 -- 2006 1.113 1.130 -- MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) (11/07) *................................ 2007 1.075 1.090 2,962 MSF MetLife Aggressive Allocation Subaccount (Class B) (1/06).......................................... 2007 1.122 1.143 -- 2006 1.000 1.122 -- 2005 1.000 1.000 -- MSF MetLife Conservative Allocation Subaccount (Class B) (2/06)................................... 2007 1.050 1.093 -- 2006 1.000 1.050 -- 2005 1.000 1.000 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/06)........................ 2007 1.063 1.099 1,256 2006 1.000 1.063 -- 2005 1.000 1.000 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/06).......................................... 2007 1.074 1.105 53,498 2006 1.000 1.074 -- 2005 1.000 1.000 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.40% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/06)........................ 2007 1.102 1.129 30,658 2006 1.000 1.102 -- 2005 1.000 1.000 -- MSF MetLife Stock Index Subaccount (Class A) (4/07) *.................................................. 2007 1.134 1.125 29,200 MSF MFS(R) Total Return Subaccount (Class F) (4/06)............................................. 2007 1.192 1.225 5,372 2006 1.114 1.192 3,399 MSF Morgan Stanley EAFE(R) Index Subaccount (Class A) (11/07) *....................................... 2007 1.723 1.681 118 MSF Oppenheimer Global Equity Subaccount (Class A) (4/06) *........................................... 2007 1.054 1.107 3,945 2006 0.996 1.054 4,836 MSF Russell 2000(R) Index Subaccount (Class A) (11/07) *.......................................... 2007 1.363 1.324 88 MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (4/06)................................... 2007 1.070 1.152 -- 2006 0.998 1.070 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (4/06)........................ 2007 1.133 1.177 -- 2006 1.065 1.133 2,627 MSF Western Asset Management U.S. Government Subaccount (Class A) (4/06) *...................... 2007 1.042 1.074 2,425 2006 1.005 1.042 1,530 PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (5/05)...................................... 2007 0.989 1.009 -- 2006 0.996 0.989 -- 2005 1.000 0.996 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.046 1.121 4,179 2006 1.021 1.046 3,931 2005 1.011 1.021 3,671 2004 1.000 1.011 -- Putnam Variable Trust Putnam VT Small Cap Value Subaccount (Class IB) (5/01)............................................. 2007 1.395 1.491 -- 2006 1.206 1.395 -- 2005 1.143 1.206 -- 2004 1.000 1.143 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (5/05)............................................. 2006 1.143 1.218 -- 2005 1.000 1.143 -- Travelers Convertible Securities Subaccount (6/05)............................................. 2006 1.034 1.103 -- 2005 1.000 1.034 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.40% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Disciplined Mid Cap Stock Subaccount (5/98)............................................. 2006 1.238 1.353 -- 2005 1.117 1.238 332 2004 1.000 1.117 -- Travelers Large Cap Subaccount (6/05).............. 2006 1.079 1.113 -- 2005 1.000 1.079 -- Travelers Mercury Large Cap Core Subaccount (5/05)............................................. 2006 1.129 1.200 -- 2005 1.000 1.129 -- Travelers MFS(R) Mid Cap Growth Subaccount (5/01).. 2006 1.148 1.216 -- 2005 1.130 1.148 -- 2004 1.000 1.130 -- Travelers MFS(R) Total Return Subaccount (2/95).... 2006 1.078 1.114 -- 2005 1.062 1.078 1,116 2004 1.000 1.062 -- Travelers MFS(R) Value Subaccount (5/04)........... 2006 1.149 1.242 -- 2005 1.094 1.149 6,114 2004 1.000 1.094 -- Travelers Mondrian International Stock Subaccount (5/04)............................................. 2006 1.211 1.392 -- 2005 1.121 1.211 -- 2004 1.000 1.121 -- Travelers Pioneer Fund Subaccount (2/94)........... 2006 1.137 1.207 -- 2005 1.088 1.137 -- 2004 1.000 1.088 -- Travelers Pioneer Mid Cap Value Subaccount (6/05).. 2006 1.019 1.073 -- 2005 1.000 1.019 -- Travelers Pioneer Strategic Income Subaccount (3/95)............................................. 2006 1.080 1.092 -- 2005 1.057 1.080 -- 2004 1.000 1.057 -- Travelers Strategic Equity Subaccount (2/95)....... 2006 1.098 1.146 -- 2005 1.091 1.098 -- 2004 1.000 1.091 -- Travelers Style Focus Series: Small Cap Growth Subaccount (5/05).................................. 2006 1.152 1.327 -- 2005 1.000 1.152 -- Travelers Style Focus Series: Small Cap Value Subaccount (5/05).................................. 2006 1.146 1.316 -- 2005 1.000 1.146 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.40% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers U.S. Government Securities Subaccount (1/92)............................................. 2006 1.042 1.005 -- 2005 1.013 1.042 310 2004 1.000 1.013 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (5/03)............................................. 2007 1.293 1.245 -- 2006 1.130 1.293 -- 2005 1.100 1.130 -- 2004 1.000 1.100 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.65% 3.0% AIR UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Dreyfus Stock Index Subaccount (Initial Shares) (1/92)............................................. 2007 1.259 1.325 -- 2006 1.108 1.259 20,553 2005 1.076 1.108 10,306 2004 1.000 1.076 -- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (5/01)................................... 2006 1.234 1.206 -- 2005 1.092 1.234 -- 2004 1.000 1.092 -- Capital Appreciation Fund Capital Appreciation Fund (12/87).................. 2006 1.347 1.332 -- 2005 1.158 1.347 266 2004 1.000 1.158 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (5/03)............................................. 2006 1.205 1.572 -- 2005 1.143 1.205 1,728 2004 1.000 1.143 -- Dreyfus Variable Investment Fund Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (5/98)..................................... 2007 1.148 1.004 5,373 2006 1.125 1.148 2,639 2005 1.081 1.125 119 2004 1.000 1.081 -- Fidelity(R) Variable Insurance Products VIP Asset Manager SM Subaccount (Initial Class) (1/92)............................................. 2007 1.123 1.175 -- 2006 1.064 1.123 -- 2005 1.039 1.064 -- 2004 1.000 1.039 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.65% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.386 1.599 11,881 2006 1.264 1.386 6,069 2005 1.102 1.264 2,819 2004 1.000 1.102 -- VIP Equity -- Income Subaccount (Initial Class) (7/93)............................................. 2007 1.324 1.322 12,670 2006 1.120 1.324 6,698 2005 1.075 1.120 320 2004 1.000 1.075 -- VIP Growth Subaccount (Initial Class) (1/92)....... 2007 1.164 1.453 -- 2006 1.107 1.164 -- 2005 1.064 1.107 -- 2004 1.000 1.064 -- VIP Mid Cap Subaccount (Service Class 2) (5/01).... 2007 1.481 1.680 14,978 2006 1.340 1.481 10,660 2005 1.154 1.340 6,703 2004 1.000 1.154 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (5/01)........................ 2007 1.213 1.327 -- 2006 1.134 1.213 -- 2005 1.100 1.134 -- 2004 1.000 1.100 -- FTVIPT Mutual Shares Securities Subaccount (Class 2) (5/03).......................................... 2006 1.179 1.372 -- 2005 1.084 1.179 169 2004 1.000 1.084 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (5/04)........................ 2007 1.844 2.336 -- 2006 1.463 1.844 -- 2005 1.167 1.463 -- 2004 1.000 1.167 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (5/04)................................... 2007 1.458 1.656 846 2006 1.220 1.458 668 2005 1.126 1.220 428 2004 1.000 1.126 -- FTVIPT Templeton Global Asset Allocation Subaccount (Class 1) (1/92)................................... 2007 1.374 1.454 -- 2006 1.151 1.374 1,510 2005 1.126 1.151 731 2004 1.000 1.126 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.65% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Growth Securities Subaccount (Class 1) (1/92)................................... 2007 1.378 1.378 -- 2006 1.184 1.378 -- 2005 1.104 1.184 797 2004 1.000 1.104 -- High Yield Bond Trust High Yield Bond Trust (12/87)...................... 2006 1.038 1.061 -- 2005 1.041 1.038 990 2004 1.000 1.041 -- Janus Aspen Series Janus Aspen International Growth Subaccount (Service Shares) (5/01)............................ 2007 2.175 2.739 878 2006 1.508 2.175 526 2005 1.162 1.508 -- 2004 1.000 1.162 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (5/03)...... 2006 1.123 1.260 -- 2005 1.098 1.123 -- 2004 1.000 1.098 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (5/01)............................................. 2007 1.278 1.276 6,968 2006 1.195 1.278 5,820 2005 1.088 1.195 4,617 2004 1.000 1.088 -- LMPVET Appreciation Subaccount (Class I) (5/02).... 2007 1.232 1.314 -- 2006 1.091 1.232 -- 2005 1.064 1.091 -- 2004 1.000 1.064 -- LMPVET Fundamental Value Subaccount (Class I) (5/01)............................................. 2007 1.270 1.265 5,654 2006 1.105 1.270 3,298 2005 1.072 1.105 394 2004 1.000 1.072 -- LMPVET Investors Subaccount (Class I) (5/01)....... 2007 1.303 1.331 -- 2006 1.120 1.303 -- 2005 1.069 1.120 -- 2004 1.000 1.069 -- LMPVET Large Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.143 1.184 -- 2006 1.111 1.143 -- 2005 1.073 1.111 -- 2004 1.000 1.073 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.65% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Small Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.335 1.445 -- 2006 1.204 1.335 -- 2005 1.167 1.204 5 2004 1.000 1.167 -- LMPVET Social Awareness Subaccount (5/92).......... 2007 1.207 1.317 -- 2006 1.140 1.207 -- 2005 1.110 1.140 -- 2004 1.000 1.110 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (9/03).... 2007 1.030 1.027 -- 2006 1.006 1.030 -- 2005 0.999 1.006 -- 2004 1.000 0.999 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (5/01)......... 2007 1.275 1.338 -- 2006 1.098 1.275 -- 2005 1.073 1.098 -- 2004 1.000 1.073 -- Managed Assets Trust Managed Assets Trust (12/87)....................... 2006 1.081 1.115 -- 2005 1.058 1.081 -- 2004 1.000 1.058 -- Met Investors Series Trust MIST Batterymarch Growth and Income Subaccount (Class A) (4/06)................................... 2007 1.274 1.352 -- 2006 1.184 1.274 -- MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (4/06).......................................... 2007 1.283 1.338 -- 2006 1.348 1.283 -- MIST BlackRock High Yield Subaccount (Class A) (4/07) *........................................... 2007 1.169 1.138 2,210 MIST BlackRock Large-Cap Core Subaccount (Class A) (4/06)............................................. 2007 1.267 1.328 -- 2006 1.197 1.267 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.317 1.327 -- MIST Dreman Small-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.399 1.362 2,731 2006 1.313 1.399 1,531 MIST Harris Oakmark International Subaccount (Class A) (4/06) *........................................ 2007 1.527 1.489 -- 2006 1.386 1.527 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.65% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Janus Forty Subaccount (Class A) (4/06)....... 2007 1.365 1.752 18,474 2006 1.332 1.365 7,542 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.230 1.089 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (4/06)................................... 2007 1.178 1.232 5,774 2006 1.115 1.178 2,614 MIST Loomis Sayles Global Markets Subaccount (Class A) (4/07) *........................................ 2007 1.444 1.736 2,148 MIST Lord Abbett Bond Debenture Subaccount (Class A) (4/06).......................................... 2007 1.153 1.211 1,591 2006 1.100 1.153 873 MIST Lord Abbett Growth and Income Subaccount (Class B) (4/06)................................... 2007 1.075 1.097 709 2006 1.001 1.075 448 MIST Met/AIM Capital Appreciation Subaccount (Class A) (4/06).......................................... 2007 1.200 1.321 9,928 2006 1.215 1.200 5,131 MIST Met/AIM Small Cap Growth Subaccount (Class A) (4/06)............................................. 2007 1.314 1.439 -- 2006 1.324 1.314 -- MIST MFS(R) Value Subaccount (Class A) (4/06)...... 2007 1.367 1.447 5,477 2006 1.237 1.367 3,087 MIST Neuberger Berman Real Estate Subaccount (Class A) (4/06).......................................... 2007 1.220 1.022 13,021 2006 1.003 1.220 9,919 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.009 1.068 -- MIST Pioneer Fund Subaccount (Class A) (4/06)...... 2007 1.292 1.335 -- 2006 1.202 1.292 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.127 1.244 -- 2006 1.071 1.127 -- MIST Pioneer Strategic Income Subaccount (Class A) (4/06)............................................. 2007 1.126 1.181 -- 2006 1.088 1.126 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (11/06) *....................................... 2007 1.287 1.227 2,050 2006 1.260 1.287 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.65% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MetLife Investment Funds, Inc. MetLife Investment Diversified Bond Subaccount (Class I) (6/93)................................... 2007 1.037 1.067 -- 2006 1.011 1.037 -- 2005 1.007 1.011 -- 2004 1.000 1.007 -- MetLife Investment International Stock Subaccount (Class I) (5/93)................................... 2007 1.583 1.693 -- 2006 1.272 1.583 -- 2005 1.128 1.272 -- 2004 1.000 1.128 -- MetLife Investment Large Company Stock Subaccount (Class I) (6/93)................................... 2007 1.263 1.314 -- 2006 1.140 1.263 -- 2005 1.087 1.140 -- 2004 1.000 1.087 -- MetLife Investment Small Company Stock Subaccount (Class I) (5/93)................................... 2007 1.329 1.323 -- 2006 1.189 1.329 295 2005 1.127 1.189 135 2004 1.000 1.127 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (4/06).......................................... 2007 1.181 1.399 -- 2006 1.211 1.181 -- MSF BlackRock Bond Income Subaccount (Class A) (4/06) *........................................... 2007 1.041 1.089 -- 2006 1.001 1.041 -- MSF BlackRock Diversified Subaccount (Class A) (4/07)............................................. 2007 1.171 1.179 -- MSF BlackRock Money Market Subaccount (Class A) (4/06) *........................................... 2007 1.023 1.058 -- 2006 1.000 1.023 -- MSF FI Large Cap Subaccount (Class A) (4/06)....... 2007 1.125 1.150 -- 2006 1.110 1.125 -- MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) (11/07) *................................ 2007 1.066 1.081 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/06).......................................... 2007 1.120 1.137 -- 2006 1.000 1.120 -- 2005 1.000 1.000 -- MSF MetLife Conservative Allocation Subaccount (Class B) (2/06)................................... 2007 1.047 1.088 -- 2006 1.000 1.047 -- 2005 1.000 1.000 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.65% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/06)........................ 2007 1.061 1.093 -- 2006 1.000 1.061 -- 2005 1.000 1.000 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/06).......................................... 2007 1.072 1.100 -- 2006 1.000 1.072 -- 2005 1.000 1.000 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/06)........................ 2007 1.100 1.123 -- 2006 1.000 1.100 -- 2005 1.000 1.000 -- MSF MetLife Stock Index Subaccount (Class A) (4/07) *.................................................. 2007 1.131 1.121 34,829 MSF MFS(R) Total Return Subaccount (Class F) (4/06)............................................. 2007 1.186 1.215 11,078 2006 1.109 1.186 8,212 MSF Morgan Stanley EAFE(R) Index Subaccount (Class A) (11/07) *....................................... 2007 1.709 1.668 -- MSF Oppenheimer Global Equity Subaccount (Class A) (4/06) *........................................... 2007 1.052 1.102 1,786 2006 0.996 1.052 1,011 MSF Russell 2000(R) Index Subaccount (Class A) (11/07) *.......................................... 2007 1.352 1.313 430 MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (4/06)................................... 2007 1.068 1.147 -- 2006 0.998 1.068 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (4/06)........................ 2007 1.127 1.170 -- 2006 1.061 1.127 2,222 MSF Western Asset Management U.S. Government Subaccount (Class A) (4/06) *...................... 2007 1.036 1.065 -- 2006 1.001 1.036 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (5/05)...................................... 2007 0.985 1.004 -- 2006 0.994 0.985 -- 2005 1.000 0.994 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.040 1.112 8,406 2006 1.018 1.040 5,835 2005 1.010 1.018 3,080 2004 1.000 1.010 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.65% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Putnam Variable Trust Putnam VT Small Cap Value Subaccount (Class IB) (5/01)............................................. 2007 1.387 1.481 -- 2006 1.202 1.387 3,700 2005 1.142 1.202 2,295 2004 1.000 1.142 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (5/05)............................................. 2006 1.141 1.215 -- 2005 1.000 1.141 234 Travelers Convertible Securities Subaccount (6/05)............................................. 2006 1.032 1.100 -- 2005 1.000 1.032 -- Travelers Disciplined Mid Cap Stock Subaccount (5/98)............................................. 2006 1.234 1.348 -- 2005 1.116 1.234 -- 2004 1.000 1.116 -- Travelers Large Cap Subaccount (6/05).............. 2006 1.078 1.110 -- 2005 1.000 1.078 -- Travelers Mercury Large Cap Core Subaccount (5/05)............................................. 2006 1.127 1.197 -- 2005 1.000 1.127 -- Travelers MFS(R) Mid Cap Growth Subaccount (5/01).. 2006 1.144 1.211 -- 2005 1.129 1.144 -- 2004 1.000 1.129 -- Travelers MFS(R) Total Return Subaccount (2/95).... 2006 1.075 1.109 -- 2005 1.061 1.075 5,682 2004 1.000 1.061 -- Travelers MFS(R) Value Subaccount (5/04)........... 2006 1.145 1.237 -- 2005 1.093 1.145 -- 2004 1.000 1.093 -- Travelers Mondrian International Stock Subaccount (5/04)............................................. 2006 1.207 1.386 -- 2005 1.120 1.207 -- 2004 1.000 1.120 -- Travelers Pioneer Fund Subaccount (2/94)........... 2006 1.133 1.202 -- 2005 1.087 1.133 -- 2004 1.000 1.087 -- Travelers Pioneer Mid Cap Value Subaccount (6/05).. 2006 1.018 1.071 -- 2005 1.000 1.018 -- Travelers Pioneer Strategic Income Subaccount (3/95)............................................. 2006 1.077 1.088 -- 2005 1.056 1.077 -- 2004 1.000 1.056 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.65% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Strategic Equity Subaccount (2/95)....... 2006 1.094 1.142 -- 2005 1.090 1.094 -- 2004 1.000 1.090 -- Travelers Style Focus Series: Small Cap Growth Subaccount (5/05).................................. 2006 1.150 1.324 -- 2005 1.000 1.150 -- Travelers Style Focus Series: Small Cap Value Subaccount (5/05).................................. 2006 1.145 1.313 -- 2005 1.000 1.145 -- Travelers U.S. Government Securities Subaccount (1/92)............................................. 2006 1.039 1.001 -- 2005 1.012 1.039 -- 2004 1.000 1.012 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (5/03)............................................. 2007 1.285 1.235 -- 2006 1.126 1.285 -- 2005 1.100 1.126 27 2004 1.000 1.100 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.75% 3.0% AIR UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Dreyfus Stock Index Subaccount (Initial Shares) (1/92)............................................. 2007 1.174 1.235 -- 2006 1.034 1.174 -- 2005 1.000 1.034 -- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (5/01)................................... 2006 1.160 1.133 -- 2005 1.000 1.160 -- Capital Appreciation Fund Capital Appreciation Fund (12/87).................. 2006 1.171 1.158 -- 2005 1.000 1.171 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (5/03)............................................. 2006 1.089 1.419 -- 2005 1.000 1.089 -- Dreyfus Variable Investment Fund Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (5/98)..................................... 2007 1.083 0.947 -- 2006 1.062 1.083 -- 2005 1.000 1.062 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.75% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Fidelity(R) Variable Insurance Products VIP Asset Manager SM Subaccount (Initial Class) (1/92)............................................. 2007 1.080 1.130 -- 2006 1.024 1.080 -- 2005 1.000 1.024 -- VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.243 1.433 -- 2006 1.135 1.243 -- 2005 1.000 1.135 -- VIP Equity -- Income Subaccount (Initial Class) (7/93)............................................. 2007 1.228 1.225 -- 2006 1.040 1.228 -- 2005 1.000 1.040 -- VIP Growth Subaccount (Initial Class) (1/92)....... 2007 1.108 1.382 -- 2006 1.055 1.108 -- 2005 1.000 1.055 -- VIP Mid Cap Subaccount (Service Class 2) (5/01).... 2007 1.263 1.431 -- 2006 1.143 1.263 -- 2005 1.000 1.143 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (5/01)........................ 2007 1.128 1.233 -- 2006 1.056 1.128 -- 2005 1.000 1.056 -- FTVIPT Mutual Shares Securities Subaccount (Class 2) (5/03).......................................... 2006 1.084 1.261 -- 2005 1.000 1.084 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (5/04)........................ 2007 1.527 1.932 -- 2006 1.213 1.527 -- 2005 1.000 1.213 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (5/04)................................... 2007 1.284 1.457 -- 2006 1.076 1.284 -- 2005 1.000 1.076 -- FTVIPT Templeton Global Asset Allocation Subaccount (Class 1) (1/92)................................... 2007 1.225 1.296 -- 2006 1.027 1.225 -- 2005 1.000 1.027 -- FTVIPT Templeton Growth Securities Subaccount (Class 1) (1/92)................................... 2007 1.242 1.242 -- 2006 1.068 1.242 -- 2005 1.000 1.068 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.75% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- High Yield Bond Trust High Yield Bond Trust (12/87)...................... 2006 0.991 1.013 -- 2005 1.000 0.991 -- Janus Aspen Series Janus Aspen International Growth Subaccount (Service Shares) (5/01)............................ 2007 1.843 2.318 -- 2006 1.279 1.843 -- 2005 1.000 1.279 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (5/03)...... 2006 1.033 1.158 -- 2005 1.000 1.033 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (5/01)............................................. 2007 1.189 1.186 -- 2006 1.112 1.189 -- 2005 1.000 1.112 -- LMPVET Appreciation Subaccount (Class I) (5/02).... 2007 1.148 1.223 -- 2006 1.018 1.148 -- 2005 1.000 1.018 -- LMPVET Fundamental Value Subaccount (Class I) (5/01)............................................. 2007 1.197 1.192 -- 2006 1.043 1.197 -- 2005 1.000 1.043 -- LMPVET Investors Subaccount (Class I) (5/01)....... 2007 1.220 1.246 -- 2006 1.050 1.220 -- 2005 1.000 1.050 -- LMPVET Large Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.089 1.126 -- 2006 1.059 1.089 -- 2005 1.000 1.059 -- LMPVET Small Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.196 1.292 -- 2006 1.079 1.196 -- 2005 1.000 1.079 -- LMPVET Social Awareness Subaccount (5/92).......... 2007 1.109 1.208 -- 2006 1.048 1.109 -- 2005 1.000 1.048 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (9/03).... 2007 1.028 1.024 -- 2006 1.005 1.028 -- 2005 1.000 1.005 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.75% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (5/01)......... 2007 1.204 1.263 -- 2006 1.038 1.204 -- 2005 1.000 1.038 -- Managed Assets Trust Managed Assets Trust (12/87)....................... 2006 1.021 1.053 -- 2005 1.000 1.021 -- Met Investors Series Trust MIST Batterymarch Growth and Income Subaccount (Class A) (4/06)................................... 2007 1.178 1.248 -- 2006 1.095 1.178 -- MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (4/06).......................................... 2007 1.140 1.188 -- 2006 1.198 1.140 -- MIST BlackRock High Yield Subaccount (Class A) (4/07) *........................................... 2007 1.115 1.084 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (4/06)............................................. 2007 1.265 1.326 -- 2006 1.196 1.265 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.315 1.323 -- MIST Dreman Small-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.397 1.359 -- 2006 1.311 1.397 -- MIST Harris Oakmark International Subaccount (Class A) (4/06) *........................................ 2007 1.355 1.320 -- 2006 1.231 1.355 -- MIST Janus Forty Subaccount (Class A) (4/06)....... 2007 1.186 1.520 -- 2006 1.158 1.186 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.228 1.087 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (4/06)................................... 2007 1.112 1.162 -- 2006 1.053 1.112 -- MIST Loomis Sayles Global Markets Subaccount (Class A) (4/07) *........................................ 2007 1.288 1.546 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (4/06).......................................... 2007 1.151 1.208 -- 2006 1.099 1.151 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (4/06)................................... 2007 1.075 1.095 -- 2006 1.001 1.075 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (4/06).......................................... 2007 1.198 1.318 -- 2006 1.214 1.198 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.75% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Met/AIM Small Cap Growth Subaccount (Class A) (4/06)............................................. 2007 1.312 1.436 -- 2006 1.323 1.312 -- MIST MFS(R) Value Subaccount (Class A) (4/06)...... 2007 1.239 1.310 -- 2006 1.122 1.239 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/06).......................................... 2007 1.219 1.020 -- 2006 1.003 1.219 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.007 1.065 -- MIST Pioneer Fund Subaccount (Class A) (4/06)...... 2007 1.194 1.232 -- 2006 1.112 1.194 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.125 1.241 -- 2006 1.070 1.125 -- MIST Pioneer Strategic Income Subaccount (Class A) (4/06)............................................. 2007 1.055 1.106 -- 2006 1.020 1.055 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (11/06) *....................................... 2007 1.183 1.127 -- 2006 1.158 1.183 -- MetLife Investment Funds, Inc. MetLife Investment Diversified Bond Subaccount (Class I) (6/93)................................... 2007 1.021 1.049 -- 2006 0.996 1.021 -- 2005 1.000 0.996 -- MetLife Investment International Stock Subaccount (Class I) (5/93)................................... 2007 1.396 1.491 -- 2006 1.122 1.396 -- 2005 1.000 1.122 -- MetLife Investment Large Company Stock Subaccount (Class I) (6/93)................................... 2007 1.162 1.209 -- 2006 1.051 1.162 -- 2005 1.000 1.051 -- MetLife Investment Small Company Stock Subaccount (Class I) (5/93)................................... 2007 1.206 1.199 -- 2006 1.080 1.206 -- 2005 1.000 1.080 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (4/06).......................................... 2007 1.083 1.281 -- 2006 1.110 1.083 -- MSF BlackRock Bond Income Subaccount (Class A) (4/06) *........................................... 2007 1.040 1.088 -- 2006 1.001 1.040 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.75% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF BlackRock Diversified Subaccount (Class A) (4/07)............................................. 2007 1.125 1.133 -- MSF BlackRock Money Market Subaccount (Class A) (4/06) *........................................... 2007 1.022 1.057 -- 2006 1.000 1.022 -- MSF FI Large Cap Subaccount (Class A) (4/06)....... 2007 1.124 1.147 -- 2006 1.109 1.124 -- MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) (11/07) *................................ 2007 1.048 1.062 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/06).......................................... 2007 1.119 1.135 -- 2006 1.000 1.119 -- 2005 1.000 1.000 -- MSF MetLife Conservative Allocation Subaccount (Class B) (2/06)................................... 2007 1.046 1.086 -- 2006 1.000 1.046 -- 2005 1.000 1.000 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/06)........................ 2007 1.060 1.091 -- 2006 1.000 1.060 -- 2005 1.000 1.000 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/06).......................................... 2007 1.071 1.098 -- 2006 1.000 1.071 -- 2005 1.000 1.000 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/06)........................ 2007 1.099 1.121 -- 2006 1.000 1.099 -- 2005 1.000 1.000 -- MSF MetLife Stock Index Subaccount (Class A) (4/07) *.................................................. 2007 1.130 1.119 -- MSF MFS(R) Total Return Subaccount (Class F) (4/06)............................................. 2007 1.116 1.142 -- 2006 1.045 1.116 -- MSF Morgan Stanley EAFE(R) Index Subaccount (Class A) (11/07) *....................................... 2007 1.506 1.469 -- MSF Oppenheimer Global Equity Subaccount (Class A) (4/06) *........................................... 2007 1.051 1.100 -- 2006 0.996 1.051 -- MSF Russell 2000(R) Index Subaccount (Class A) (11/07) *.......................................... 2007 1.226 1.190 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (4/06)................................... 2007 1.068 1.145 -- 2006 0.998 1.068 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.75% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF Western Asset Management High Yield Bond Subaccount (Class A) (4/06)........................ 2007 1.075 1.115 -- 2006 1.013 1.075 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (4/06) *...................... 2007 0.998 1.025 -- 2006 0.965 0.998 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (5/05)...................................... 2007 0.983 1.002 -- 2006 0.994 0.983 -- 2005 1.000 0.994 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.023 1.093 -- 2006 1.002 1.023 -- 2005 1.000 1.002 -- Putnam Variable Trust Putnam VT Small Cap Value Subaccount (Class IB) (5/01)............................................. 2007 1.219 1.301 -- 2006 1.058 1.219 -- 2005 1.000 1.058 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (5/05)............................................. 2006 1.141 1.214 -- 2005 1.000 1.141 -- Travelers Convertible Securities Subaccount (6/05)............................................. 2006 1.032 1.099 -- 2005 1.000 1.032 -- Travelers Disciplined Mid Cap Stock Subaccount (5/98)............................................. 2006 1.098 1.198 -- 2005 1.000 1.098 -- Travelers Large Cap Subaccount (6/05).............. 2006 1.077 1.109 -- 2005 1.000 1.077 -- Travelers Mercury Large Cap Core Subaccount (5/05)............................................. 2006 1.127 1.196 -- 2005 1.000 1.127 -- Travelers MFS(R) Mid Cap Growth Subaccount (5/01).. 2006 1.050 1.110 -- 2005 1.000 1.050 -- Travelers MFS(R) Total Return Subaccount (2/95).... 2006 1.013 1.045 -- 2005 1.000 1.013 -- Travelers MFS(R) Value Subaccount (5/04)........... 2006 1.039 1.122 -- 2005 1.000 1.039 -- Travelers Mondrian International Stock Subaccount (5/04)............................................. 2006 1.072 1.231 -- 2005 1.000 1.072 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.75% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Pioneer Fund Subaccount (2/94)........... 2006 1.048 1.112 -- 2005 1.000 1.048 -- Travelers Pioneer Mid Cap Value Subaccount (6/05).. 2006 1.017 1.070 -- 2005 1.000 1.017 -- Travelers Pioneer Strategic Income Subaccount (3/95)............................................. 2006 1.010 1.020 -- 2005 1.000 1.010 -- Travelers Strategic Equity Subaccount (2/95)....... 2006 1.047 1.092 -- 2005 1.000 1.047 -- Travelers Style Focus Series: Small Cap Growth Subaccount (5/05).................................. 2006 1.150 1.323 -- 2005 1.000 1.150 -- Travelers Style Focus Series: Small Cap Value Subaccount (5/05).................................. 2006 1.144 1.311 -- 2005 1.000 1.144 -- Travelers U.S. Government Securities Subaccount (1/92)............................................. 2006 1.002 0.965 -- 2005 1.000 1.002 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (5/03)............................................. 2007 1.178 1.130 -- 2006 1.033 1.178 -- 2005 1.000 1.033 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.80% 3.0% AIR UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Dreyfus Stock Index Subaccount (Initial Shares) (1/92)............................................. 2007 1.254 1.320 -- 2006 1.106 1.254 -- 2005 1.075 1.106 -- 2004 1.000 1.075 -- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (5/01)................................... 2006 1.231 1.202 -- 2005 1.091 1.231 -- 2004 1.000 1.091 -- Capital Appreciation Fund Capital Appreciation Fund (12/87).................. 2006 1.344 1.329 -- 2005 1.158 1.344 -- 2004 1.000 1.158 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.80% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (5/03)............................................. 2006 1.203 1.567 -- 2005 1.143 1.203 -- 2004 1.000 1.143 -- Dreyfus Variable Investment Fund Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (5/98)..................................... 2007 1.144 0.999 -- 2006 1.122 1.144 -- 2005 1.080 1.122 -- 2004 1.000 1.080 -- Fidelity(R) Variable Insurance Products VIP Asset Manager SM Subaccount (Initial Class) (1/92)............................................. 2007 1.119 1.171 -- 2006 1.062 1.119 -- 2005 1.039 1.062 -- 2004 1.000 1.039 -- VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.381 1.591 -- 2006 1.262 1.381 -- 2005 1.101 1.262 -- 2004 1.000 1.101 -- VIP Equity -- Income Subaccount (Initial Class) (7/93)............................................. 2007 1.319 1.315 -- 2006 1.118 1.319 -- 2005 1.075 1.118 -- 2004 1.000 1.075 -- VIP Growth Subaccount (Initial Class) (1/92)....... 2007 1.160 1.446 -- 2006 1.105 1.160 -- 2005 1.063 1.105 -- 2004 1.000 1.063 -- VIP Mid Cap Subaccount (Service Class 2) (5/01).... 2007 1.476 1.672 -- 2006 1.337 1.476 -- 2005 1.153 1.337 -- 2004 1.000 1.153 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (5/01)........................ 2007 1.209 1.320 -- 2006 1.132 1.209 -- 2005 1.100 1.132 -- 2004 1.000 1.100 -- FTVIPT Mutual Shares Securities Subaccount (Class 2) (5/03).......................................... 2006 1.176 1.368 -- 2005 1.083 1.176 -- 2004 1.000 1.083 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.80% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (5/04)........................ 2007 1.838 2.324 -- 2006 1.461 1.838 -- 2005 1.167 1.461 -- 2004 1.000 1.167 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (5/04)................................... 2007 1.453 1.648 -- 2006 1.218 1.453 -- 2005 1.126 1.218 -- 2004 1.000 1.126 -- FTVIPT Templeton Global Asset Allocation Subaccount (Class 1) (1/92)................................... 2007 1.369 1.448 -- 2006 1.148 1.369 -- 2005 1.126 1.148 -- 2004 1.000 1.126 -- FTVIPT Templeton Growth Securities Subaccount (Class 1) (1/92)................................... 2007 1.374 1.374 -- 2006 1.182 1.374 -- 2005 1.103 1.182 -- 2004 1.000 1.103 -- High Yield Bond Trust High Yield Bond Trust (12/87)...................... 2006 1.036 1.058 -- 2005 1.041 1.036 -- 2004 1.000 1.041 -- Janus Aspen Series Janus Aspen International Growth Subaccount (Service Shares) (5/01)............................ 2007 2.168 2.726 -- 2006 1.505 2.168 -- 2005 1.161 1.505 -- 2004 1.000 1.161 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (5/03)...... 2006 1.121 1.256 -- 2005 1.097 1.121 -- 2004 1.000 1.097 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (5/01)............................................. 2007 1.274 1.270 -- 2006 1.192 1.274 -- 2005 1.087 1.192 -- 2004 1.000 1.087 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.80% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Appreciation Subaccount (Class I) (5/02).... 2007 1.228 1.307 -- 2006 1.089 1.228 -- 2005 1.063 1.089 -- 2004 1.000 1.063 -- LMPVET Fundamental Value Subaccount (Class I) (5/01)............................................. 2007 1.265 1.258 -- 2006 1.103 1.265 -- 2005 1.072 1.103 -- 2004 1.000 1.072 -- LMPVET Investors Subaccount (Class I) (5/01)....... 2007 1.298 1.325 -- 2006 1.118 1.298 -- 2005 1.068 1.118 -- 2004 1.000 1.068 -- LMPVET Large Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.139 1.178 -- 2006 1.109 1.139 -- 2005 1.073 1.109 -- 2004 1.000 1.073 -- LMPVET Small Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.331 1.438 -- 2006 1.201 1.331 -- 2005 1.166 1.201 -- 2004 1.000 1.166 -- LMPVET Social Awareness Subaccount (5/92).......... 2007 1.203 1.310 -- 2006 1.137 1.203 -- 2005 1.109 1.137 -- 2004 1.000 1.109 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (9/03).... 2007 1.026 1.022 -- 2006 1.004 1.026 -- 2005 0.998 1.004 -- 2004 1.000 0.998 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (5/01)......... 2007 1.271 1.333 -- 2006 1.096 1.271 -- 2005 1.072 1.096 -- 2004 1.000 1.072 -- Managed Assets Trust Managed Assets Trust (12/87)....................... 2006 1.079 1.112 -- 2005 1.058 1.079 -- 2004 1.000 1.058 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.80% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Met Investors Series Trust MIST Batterymarch Growth and Income Subaccount (Class A) (4/06)................................... 2007 1.270 1.345 -- 2006 1.181 1.270 -- MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (4/06).......................................... 2007 1.278 1.332 -- 2006 1.344 1.278 -- MIST BlackRock High Yield Subaccount (Class A) (4/07) *........................................... 2007 1.165 1.132 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (4/06)............................................. 2007 1.264 1.324 -- 2006 1.195 1.264 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.313 1.321 -- MIST Dreman Small-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.395 1.357 -- 2006 1.311 1.395 -- MIST Harris Oakmark International Subaccount (Class A) (4/06) *........................................ 2007 1.522 1.482 -- 2006 1.383 1.522 -- MIST Janus Forty Subaccount (Class A) (4/06)....... 2007 1.361 1.743 -- 2006 1.329 1.361 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.226 1.085 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (4/06)................................... 2007 1.174 1.226 -- 2006 1.112 1.174 -- MIST Loomis Sayles Global Markets Subaccount (Class A) (4/07) *........................................ 2007 1.439 1.727 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (4/06).......................................... 2007 1.150 1.207 -- 2006 1.099 1.150 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (4/06)................................... 2007 1.074 1.094 -- 2006 1.001 1.074 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (4/06).......................................... 2007 1.197 1.316 -- 2006 1.213 1.197 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (4/06)............................................. 2007 1.311 1.434 -- 2006 1.322 1.311 -- MIST MFS(R) Value Subaccount (Class A) (4/06)...... 2007 1.362 1.440 -- 2006 1.234 1.362 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/06).......................................... 2007 1.218 1.020 -- 2006 1.003 1.218 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.80% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.006 1.063 -- MIST Pioneer Fund Subaccount (Class A) (4/06)...... 2007 1.288 1.328 -- 2006 1.199 1.288 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.124 1.240 -- 2006 1.070 1.124 -- MIST Pioneer Strategic Income Subaccount (Class A) (4/06)............................................. 2007 1.122 1.175 -- 2006 1.085 1.122 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (11/06) *....................................... 2007 1.282 1.221 -- 2006 1.256 1.282 -- MetLife Investment Funds, Inc. MetLife Investment Diversified Bond Subaccount (Class I) (6/93)................................... 2007 1.034 1.062 -- 2006 1.009 1.034 -- 2005 1.007 1.009 -- 2004 1.000 1.007 -- MetLife Investment International Stock Subaccount (Class I) (5/93)................................... 2007 1.577 1.685 -- 2006 1.269 1.577 -- 2005 1.127 1.269 -- 2004 1.000 1.127 -- MetLife Investment Large Company Stock Subaccount (Class I) (6/93)................................... 2007 1.258 1.308 -- 2006 1.138 1.258 -- 2005 1.086 1.138 -- 2004 1.000 1.086 -- MetLife Investment Small Company Stock Subaccount (Class I) (5/93)................................... 2007 1.325 1.317 -- 2006 1.186 1.325 -- 2005 1.126 1.186 -- 2004 1.000 1.126 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (4/06).......................................... 2007 1.177 1.392 -- 2006 1.208 1.177 -- MSF BlackRock Bond Income Subaccount (Class A) (4/06) *........................................... 2007 1.040 1.087 -- 2006 1.001 1.040 -- MSF BlackRock Diversified Subaccount (Class A) (4/07)............................................. 2007 1.166 1.173 -- MSF BlackRock Money Market Subaccount (Class A) (4/06) *........................................... 2007 1.022 1.056 -- 2006 1.000 1.022 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.80% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF FI Large Cap Subaccount (Class A) (4/06)....... 2007 1.123 1.146 -- 2006 1.109 1.123 -- MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) (11/07) *................................ 2007 1.061 1.075 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/06).......................................... 2007 1.118 1.134 -- 2006 1.000 1.118 -- 2005 1.000 1.000 -- MSF MetLife Conservative Allocation Subaccount (Class B) (2/06)................................... 2007 1.046 1.084 -- 2006 1.000 1.046 -- 2005 1.000 1.000 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/06)........................ 2007 1.059 1.090 -- 2006 1.000 1.059 -- 2005 1.000 1.000 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/06).......................................... 2007 1.070 1.097 -- 2006 1.000 1.070 -- 2005 1.000 1.000 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/06)........................ 2007 1.098 1.120 2,435 2006 1.000 1.098 -- 2005 1.000 1.000 -- MSF MetLife Stock Index Subaccount (Class A) (4/07) *.................................................. 2007 1.129 1.118 -- MSF MFS(R) Total Return Subaccount (Class F) (4/06)............................................. 2007 1.181 1.209 -- 2006 1.107 1.181 -- MSF Morgan Stanley EAFE(R) Index Subaccount (Class A) (11/07) *....................................... 2007 1.701 1.659 -- MSF Oppenheimer Global Equity Subaccount (Class A) (4/06) *........................................... 2007 1.051 1.099 -- 2006 0.996 1.051 -- MSF Russell 2000(R) Index Subaccount (Class A) (11/07) *.......................................... 2007 1.346 1.306 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (4/06)................................... 2007 1.067 1.144 -- 2006 0.998 1.067 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (4/06)........................ 2007 1.123 1.165 -- 2006 1.058 1.123 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (4/06) *...................... 2007 1.032 1.060 -- 2006 0.999 1.032 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.80% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (5/05)...................................... 2007 0.982 1.001 -- 2006 0.993 0.982 -- 2005 1.000 0.993 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.036 1.107 -- 2006 1.016 1.036 -- 2005 1.010 1.016 -- 2004 1.000 1.010 -- Putnam Variable Trust Putnam VT Small Cap Value Subaccount (Class IB) (5/01)............................................. 2007 1.382 1.475 -- 2006 1.200 1.382 -- 2005 1.141 1.200 -- 2004 1.000 1.141 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (5/05)............................................. 2006 1.140 1.213 -- 2005 1.000 1.140 -- Travelers Convertible Securities Subaccount (6/05)............................................. 2006 1.032 1.099 -- 2005 1.000 1.032 -- Travelers Disciplined Mid Cap Stock Subaccount (5/98)............................................. 2006 1.232 1.344 -- 2005 1.115 1.232 -- 2004 1.000 1.115 -- Travelers Large Cap Subaccount (6/05).............. 2006 1.077 1.109 -- 2005 1.000 1.077 -- Travelers Mercury Large Cap Core Subaccount (5/05)............................................. 2006 1.126 1.195 -- 2005 1.000 1.126 -- Travelers MFS(R) Mid Cap Growth Subaccount (5/01).. 2006 1.142 1.208 -- 2005 1.128 1.142 -- 2004 1.000 1.128 -- Travelers MFS(R) Total Return Subaccount (2/95).... 2006 1.073 1.107 -- 2005 1.061 1.073 -- 2004 1.000 1.061 -- Travelers MFS(R) Value Subaccount (5/04)........... 2006 1.143 1.234 -- 2005 1.093 1.143 -- 2004 1.000 1.093 -- Travelers Mondrian International Stock Subaccount (5/04)............................................. 2006 1.205 1.383 -- 2005 1.120 1.205 -- 2004 1.000 1.120 --
UNIVERSAL SELECT ANNUITY -- SEPARATE ACCOUNT 1.80% 3.0% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Pioneer Fund Subaccount (2/94)........... 2006 1.131 1.199 -- 2005 1.086 1.131 -- 2004 1.000 1.086 -- Travelers Pioneer Mid Cap Value Subaccount (6/05).. 2006 1.017 1.070 -- 2005 1.000 1.017 -- Travelers Pioneer Strategic Income Subaccount (3/95)............................................. 2006 1.075 1.085 -- 2005 1.056 1.075 -- 2004 1.000 1.056 -- Travelers Strategic Equity Subaccount (2/95)....... 2006 1.092 1.139 -- 2005 1.090 1.092 -- 2004 1.000 1.090 -- Travelers Style Focus Series: Small Cap Growth Subaccount (5/05).................................. 2006 1.149 1.322 -- 2005 1.000 1.149 -- Travelers Style Focus Series: Small Cap Value Subaccount (5/05).................................. 2006 1.144 1.311 -- 2005 1.000 1.144 -- Travelers U.S. Government Securities Subaccount (1/92)............................................. 2006 1.037 0.999 -- 2005 1.012 1.037 -- 2004 1.000 1.012 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (5/03)............................................. 2007 1.281 1.229 -- 2006 1.124 1.281 -- 2005 1.099 1.124 -- 2004 1.000 1.099 --
* We are currently waiving a portion of the Mortality and Expense Risk charge for this Subaccount. Please see "Fee Table -- Annual Separate Account Charges" for more information. The date next to each funding option name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amounts allocated to them or were not available as of December 31, 2007. Number of Units Outstanding at the end of the year may include units for Contracts in payout phase. Variable Funding Option mergers and substitutions that occurred between January 1, 2005 and December 31, 2007 are displayed below. Please see Appendix B for more information on Variable Funding Option mergers, substitutions and other changes. Effective on or about 05/01/06, Capital Appreciation Fund merged into Met Investors Series Trust-Janus Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Managed Assets Trust merged into Met Investors Series Trust-Legg Mason Partners Managed Assets Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, High Yield Bond Trust merged into Metropolitan Series Fund, Inc.-Western Asset Management High Yield Bond Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-AIM Capital Appreciation Portfolio merged into Metropolitan Series Fund, Inc.-Met/AIM Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Convertible Securities Portfolio merged into Met Investors Series Trust-Lord Abbett Bond Debenture Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Style Focus Series: Small Cap Value Portfolio merged into Met Investors Series Trust-Dreman Small- Cap Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Style Focus Series: Small Cap Growth Portfolio merged into Met Investors Series Trust-Met/AIM Small Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Mondrian International Stock Portfolio merged into Met Investors Series Trust-Harris Oakmark International Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Pioneer Mid Cap Value Portfolio merged into Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Disciplined Mid Cap Stock Portfolio merged into Met Investors Series Trust-Batterymarch Mid-Cap Stock Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Mercury Large Cap Core Portfolio merged into Met Investors Series Trust-Mercury Large-Cap Core Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-MFS(R) Value Portfolio merged into Met Investors Series Trust-MFS(R) Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Pioneer Fund Portfolio merged into Met Investors Series Trust-Pioneer Fund Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Pioneer Strategic Income Portfolio merged into Met Investors Series Trust-Pioneer Strategic Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Managed Separate Account-Travelers Growth and Income Stock Account for Variable Annuities merged into Met Investors Series Trust-Batterymarch Growth and Income Stock Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Managed Separate Account-Travelers Quality Bond Account for Variable Annuities merged into Metropolitan Series Fund, Inc.- BlackRock Bond Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Managed Separate Account Travelers Money Market Account for Variable Annuities merged into Metropolitan Series Fund, Inc.- BlackRock Money Market Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Large Cap Portfolio merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Strategic Equity Portfolio merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-MFS(R) Mid Cap Growth Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-MFS(R) Total Return Portfolio merged into Metropolitan Series Fund, Inc.-MFS(R) Total Return Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-U.S. Government Securities Portfolio merged into Metropolitan Series Fund, Inc.-Western Asset Manager U.S. Government Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Delaware VIP Trust-Delaware VIP REIT Series was replaced by Met Investors Series Trust-Neuberger Berman Real Estate Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Franklin Templeton Variable Insurance Products Trust-Mutual Shares Securities Fund was replaced by Met Investors Series Trust- Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Franklin Templeton Variable Insurance Products Trust-Templeton Growth Securities Fund was replaced by Metropolitan Series Fund, Inc.-Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, AllianceBernstein Variable Products Series Fund, Inc-AllianceBernstein Large Cap Growth Portfolio was replaced by Metropolitan Series Fund, Inc.-T. Rowe Price Large Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 11/13/06, Lazard Retirement Series, Inc.-Lazard Small Cap Portfolio was replaced by Met Investors Series Trust-Third Avenue Small Cap Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable All Cap Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Fundamental Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class A was exchanged for Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class E and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio merged into Met Investors Series Trust-Lazard Mid-Cap Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Metropolitan Series Funds, Inc.-Western Asset Management High Yield Bond Portfolio merged into Met Investors Series Trust- BlackRock High Yield Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, PIMCO Variable Insurance Trust-Real Return Portfolio was replaced by Met Investors Series Trust-PIMCO Inflation Protected Bond Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Putnam Variable Trust-Putnam VT Small Cap Value Fund was replaced by Met Investors Series Trust-Third Avenue Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment Diversified Bond Portfolio was replaced by Metropolitan Series Fund, Inc.-Lehman Brothers(R) Aggregate Bond Index Portfolio -- Class A and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment International Stock Portfolio was replaced by Metropolitan Series Fund, Inc.-Morgan Stanley EAFE(R) Index Portfolio -- Class A and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment Large Company Stock Fund was replaced by Metropolitan Series Fund, Inc.-MetLife Stock Index Portfolio -- Class A and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment Small Company Stock Fund was replaced by Metropolitan Series Fund, Inc.-Russell 2000(R) Index Portfolio -- Class A and is no longer available as a funding option. Effective on or about 4/30/2007, Fidelity Variable Insurance Products Fund-VIP Asset Manager(SM) Portfolio was replaced by Metropolitan Series Fund, Inc.- BlackRock Diversified Portfolio -- Class A and is no longer available as a funding option. Effective on or about 4/30/2007, Frankin Templeton Variable Insurance Products Trust-Templeton Global Asset Allocation Portfolio was replaced by Met Investors Series Trust-Loomis Sayles Global Markets Portfolio -- Class A and is no longer available as a funding option. Effective on or about 04/30/2007, the Dreyfus Stock Index Fund of the Dreyfus Stock Index Fund, Inc. was replaced by the MetLife Stock Index Portfolio of the Metropolitan Series Fund, Inc. and is no longer available. CONDENSED FINANCIAL INFORMATION -- UNIVERSAL ANNUITY ADVANTAGE - -------------------------------------------------------------------------------- The following tables provide the Accumulation Unit Values information for the MID-RANGE combinations of separate account charges. The Accumulation Unit Value information for the minimum separate account charge and the maximum variable account charge are contained in the Prospectus.
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.40% 3.5% AIR UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Dreyfus Stock Index Subaccount (Initial Shares) (1/92)............................................. 2007 1.268 1.336 -- 2006 1.113 1.268 634 2005 1.078 1.113 -- 2004 1.000 1.078 -- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (5/01)................................... 2006 1.241 1.216 -- 2005 1.096 1.241 460 2004 1.000 1.096 -- Capital Appreciation Fund Capital Appreciation Fund (12/87).................. 2006 1.330 1.316 -- 2005 1.141 1.330 9,785 2004 1.000 1.141 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (5/03)............................................. 2006 1.185 1.550 -- 2005 1.122 1.185 213 2004 1.000 1.122 -- Dreyfus Variable Investment Fund Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (5/98)..................................... 2007 1.138 0.998 2,082 2006 1.112 1.138 1,336 2005 1.066 1.112 476 2004 1.000 1.066 -- Fidelity(R) Variable Insurance Products VIP Asset Manager SM Subaccount (Initial Class) (1/92)............................................. 2007 1.134 1.188 -- 2006 1.072 1.134 3,935 2005 1.045 1.072 -- 2004 1.000 1.045 -- VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.374 1.589 11,700 2006 1.250 1.374 10,089 2005 1.087 1.250 4,206 2004 1.000 1.087 -- VIP Equity -- Income Subaccount (Initial Class) (7/93)............................................. 2007 1.331 1.333 8,409 2006 1.123 1.331 3,761 2005 1.076 1.123 1,024 2004 1.000 1.076 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.40% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- VIP Growth Subaccount (Initial Class) (1/92)....... 2007 1.183 1.481 1,940 2006 1.123 1.183 1,308 2005 1.076 1.123 470 2004 1.000 1.076 -- VIP Mid Cap Subaccount (Service Class 2) (5/01).... 2007 1.444 1.642 6,774 2006 1.303 1.444 6,784 2005 1.119 1.303 3,581 2004 1.000 1.119 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (5/01)........................ 2007 1.213 1.331 -- 2006 1.132 1.213 -- 2005 1.096 1.132 -- 2004 1.000 1.096 -- FTVIPT Mutual Shares Securities Subaccount (Class 2) (5/03).......................................... 2006 1.173 1.369 -- 2005 1.076 1.173 -- 2004 1.000 1.076 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (5/04)........................ 2007 1.768 2.245 1,446 2006 1.400 1.768 1,450 2005 1.114 1.400 200 2004 1.000 1.114 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (5/04)................................... 2007 1.445 1.645 1,225 2006 1.207 1.445 812 2005 1.111 1.207 289 2004 1.000 1.111 -- FTVIPT Templeton Global Asset Allocation Subaccount (Class 1) (1/92)................................... 2007 1.362 1.442 -- 2006 1.138 1.362 7,813 2005 1.111 1.138 7,819 2004 1.000 1.111 -- FTVIPT Templeton Growth Securities Subaccount (Class 1) (1/92)................................... 2007 1.375 1.375 -- 2006 1.179 1.375 -- 2005 1.097 1.179 -- 2004 1.000 1.097 -- High Yield Bond Trust High Yield Bond Trust (12/87)...................... 2006 1.035 1.059 -- 2005 1.036 1.035 -- 2004 1.000 1.036 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.40% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Janus Aspen Series Janus Aspen International Growth Subaccount (Service Shares) (5/01)............................ 2007 2.121 2.677 400 2006 1.467 2.121 405 2005 1.127 1.467 -- 2004 1.000 1.127 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (5/03)...... 2006 1.140 1.281 -- 2005 1.111 1.140 -- 2004 1.000 1.111 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (5/01)............................................. 2007 1.276 1.277 3,150 2006 1.189 1.276 2,017 2005 1.080 1.189 722 2004 1.000 1.080 -- LMPVET Appreciation Subaccount (Class I) (5/02).... 2007 1.236 1.321 8,458 2006 1.092 1.236 8,458 2005 1.062 1.092 8,379 2004 1.000 1.062 -- LMPVET Fundamental Value Subaccount (Class I) (5/01)............................................. 2007 1.279 1.277 222 2006 1.110 1.279 223 2005 1.075 1.110 224 2004 1.000 1.075 -- LMPVET Investors Subaccount (Class I) (5/01)....... 2007 1.316 1.348 -- 2006 1.128 1.316 -- 2005 1.074 1.128 -- 2004 1.000 1.074 -- LMPVET Large Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.175 1.221 316 2006 1.140 1.175 237 2005 1.098 1.140 88 2004 1.000 1.098 -- LMPVET Small Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.309 1.420 218 2006 1.177 1.309 218 2005 1.138 1.177 219 2004 1.000 1.138 -- LMPVET Social Awareness Subaccount (5/92).......... 2007 1.211 1.324 -- 2006 1.140 1.211 -- 2005 1.107 1.140 -- 2004 1.000 1.107 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.40% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (9/03).... 2007 1.035 1.034 -- 2006 1.008 1.035 -- 2005 0.999 1.008 -- 2004 1.000 0.999 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (5/01)......... 2007 1.282 1.346 -- 2006 1.101 1.282 -- 2005 1.073 1.101 -- 2004 1.000 1.073 -- Managed Assets Trust Managed Assets Trust (12/87)....................... 2006 1.080 1.115 -- 2005 1.055 1.080 8,112 2004 1.000 1.055 -- Met Investors Series Trust MIST Batterymarch Growth and Income Subaccount (Class A) (4/06)................................... 2007 1.276 1.356 450 2006 1.183 1.276 343 MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (4/06).......................................... 2007 1.282 1.341 6,983 2006 1.345 1.282 5,640 MIST BlackRock High Yield Subaccount (Class A) (4/07) *........................................... 2007 1.170 1.141 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (4/06)............................................. 2007 1.272 1.335 -- 2006 1.200 1.272 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.324 1.335 -- MIST Dreman Small-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.404 1.371 -- 2006 1.316 1.404 -- MIST Harris Oakmark International Subaccount (Class A) (4/06) *........................................ 2007 1.501 1.467 1,410 2006 1.360 1.501 910 MIST Janus Forty Subaccount (Class A) (4/06)....... 2007 1.352 1.739 16,486 2006 1.316 1.352 13,918 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.236 1.096 72 MIST Legg Mason Partners Managed Assets Subaccount (Class A) (4/06)................................... 2007 1.180 1.238 8,409 2006 1.115 1.180 8,312 MIST Loomis Sayles Global Markets Subaccount (Class A) (4/07) *........................................ 2007 1.433 1.725 7,808
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.40% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Lord Abbett Bond Debenture Subaccount (Class A) (4/06).......................................... 2007 1.157 1.219 133 2006 1.103 1.157 126 MIST Lord Abbett Growth and Income Subaccount (Class B) (4/06)................................... 2007 1.077 1.102 -- 2006 1.001 1.077 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (4/06).......................................... 2007 1.205 1.330 -- 2006 1.218 1.205 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (4/06)............................................. 2007 1.319 1.449 -- 2006 1.327 1.319 -- MIST MFS(R) Value Subaccount (Class A) (4/06)...... 2007 1.360 1.444 -- 2006 1.229 1.360 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/06).......................................... 2007 1.222 1.026 2,918 2006 1.003 1.222 1,621 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.014 1.075 2,704 MIST Pioneer Fund Subaccount (Class A) (4/06)...... 2007 1.295 1.341 -- 2006 1.203 1.295 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.131 1.249 -- 2006 1.073 1.131 64 MIST Pioneer Strategic Income Subaccount (Class A) (4/06)............................................. 2007 1.116 1.174 2,895 2006 1.076 1.116 1,779 MIST Third Avenue Small Cap Value Subaccount (Class B) (11/06) *....................................... 2007 1.309 1.252 1,222 2006 1.281 1.309 -- MetLife Investment Funds, Inc. MetLife Investment Diversified Bond Subaccount (Class I) (6/93)................................... 2007 1.041 1.073 -- 2006 1.012 1.041 -- 2005 1.005 1.012 -- 2004 1.000 1.005 -- MetLife Investment International Stock Subaccount (Class I) (5/93)................................... 2007 1.561 1.673 -- 2006 1.251 1.561 -- 2005 1.106 1.251 -- 2004 1.000 1.106 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.40% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MetLife Investment Large Company Stock Subaccount (Class I) (6/93)................................... 2007 1.270 1.325 -- 2006 1.144 1.270 2,121 2005 1.087 1.144 434 2004 1.000 1.087 -- MetLife Investment Small Company Stock Subaccount (Class I) (5/93)................................... 2007 1.322 1.319 -- 2006 1.180 1.322 1,715 2005 1.115 1.180 1,720 2004 1.000 1.115 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (4/06).......................................... 2007 1.184 1.406 2,073 2006 1.212 1.184 1,387 MSF BlackRock Bond Income Subaccount (Class A) (4/06) *........................................... 2007 1.042 1.094 -- 2006 1.001 1.042 -- MSF BlackRock Diversified Subaccount (Class A) (4/07)............................................. 2007 1.184 1.194 7,747 MSF BlackRock Money Market Subaccount (Class A) (4/06) *........................................... 2007 1.025 1.063 -- 2006 1.000 1.025 -- MSF FI Large Cap Subaccount (Class A) (4/06)....... 2007 1.130 1.158 -- 2006 1.113 1.130 -- MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) (11/07) *................................ 2007 1.072 1.087 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/06).......................................... 2007 1.122 1.143 -- 2006 1.000 1.122 -- 2005 1.000 1.000 -- MSF MetLife Conservative Allocation Subaccount (Class B) (2/06)................................... 2007 1.050 1.093 -- 2006 1.000 1.050 -- 2005 1.000 1.000 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/06)........................ 2007 1.063 1.099 -- 2006 1.000 1.063 -- 2005 1.000 1.000 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/06).......................................... 2007 1.074 1.105 146 2006 1.000 1.074 135 2005 1.000 1.000 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.40% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/06)........................ 2007 1.102 1.129 -- 2006 1.000 1.102 -- 2005 1.000 1.000 -- MSF MetLife Stock Index Subaccount (Class A) (4/07) *.................................................. 2007 1.134 1.125 8,300 MSF MFS(R) Total Return Subaccount (Class F) (4/06)............................................. 2007 1.188 1.220 19,391 2006 1.110 1.188 14,945 MSF Morgan Stanley EAFE(R) Index Subaccount (Class A) (11/07) *....................................... 2007 1.689 1.649 -- MSF Oppenheimer Global Equity Subaccount (Class A) (4/06) *........................................... 2007 1.054 1.107 -- 2006 0.996 1.054 -- MSF Russell 2000(R) Index Subaccount (Class A) (11/07) *.......................................... 2007 1.348 1.309 1,711 MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (4/06)................................... 2007 1.070 1.152 566 2006 0.998 1.070 567 MSF Western Asset Management High Yield Bond Subaccount (Class A) (4/06)........................ 2007 1.127 1.170 -- 2006 1.059 1.127 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (4/06) *...................... 2007 1.037 1.068 435 2006 1.000 1.037 435 PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (5/05)...................................... 2007 0.989 1.009 -- 2006 0.996 0.989 1,639 2005 1.000 0.996 546 PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.043 1.118 3,046 2006 1.018 1.043 2,032 2005 1.008 1.018 978 2004 1.000 1.008 -- Putnam Variable Trust Putnam VT Small Cap Value Subaccount (Class IB) (5/01)............................................. 2007 1.381 1.476 -- 2006 1.194 1.381 838 2005 1.131 1.194 229 2004 1.000 1.131 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (5/05)............................................. 2006 1.143 1.218 -- 2005 1.000 1.143 -- Travelers Convertible Securities Subaccount (6/05)............................................. 2006 1.034 1.103 -- 2005 1.000 1.034 34
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.40% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Disciplined Mid Cap Stock Subaccount (5/98)............................................. 2006 1.231 1.345 -- 2005 1.110 1.231 1,786 2004 1.000 1.110 -- Travelers Large Cap Subaccount (6/05).............. 2006 1.079 1.113 -- 2005 1.000 1.079 -- Travelers Managed Allocation Series: Aggressive Subaccount (11/05)................................. 2006 1.033 1.099 -- 2005 1.000 1.033 -- Travelers Managed Allocation Series: Moderate Subaccount (8/05).................................. 2006 1.033 1.070 -- 2005 1.000 1.033 35 Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (10/05)...................... 2006 1.041 1.087 -- 2005 1.000 1.041 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (11/05).................... 2006 1.023 1.043 -- 2005 1.000 1.023 -- Travelers Mercury Large Cap Core Subaccount (5/05)............................................. 2006 1.129 1.200 -- 2005 1.000 1.129 -- Travelers MFS(R) Mid Cap Growth Subaccount (5/01).. 2006 1.144 1.212 -- 2005 1.126 1.144 624 2004 1.000 1.126 -- Travelers MFS(R) Total Return Subaccount (2/95).... 2006 1.074 1.110 -- 2005 1.058 1.074 10,710 2004 1.000 1.058 -- Travelers MFS(R) Value Subaccount (5/04)........... 2006 1.137 1.229 -- 2005 1.083 1.137 -- 2004 1.000 1.083 -- Travelers Mondrian International Stock Subaccount (5/04)............................................. 2006 1.183 1.360 -- 2005 1.096 1.183 336 2004 1.000 1.096 -- Travelers Pioneer Fund Subaccount (2/94)........... 2006 1.133 1.203 -- 2005 1.084 1.133 -- 2004 1.000 1.084 -- Travelers Pioneer Mid Cap Value Subaccount (6/05).. 2006 1.019 1.073 -- 2005 1.000 1.019 18
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.40% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Pioneer Strategic Income Subaccount (3/95)............................................. 2006 1.065 1.076 -- 2005 1.042 1.065 604 2004 1.000 1.042 -- Travelers Strategic Equity Subaccount (2/95)....... 2006 1.093 1.142 -- 2005 1.087 1.093 -- 2004 1.000 1.087 -- Travelers Style Focus Series: Small Cap Growth Subaccount (5/05).................................. 2006 1.152 1.327 -- 2005 1.000 1.152 -- Travelers Style Focus Series: Small Cap Value Subaccount (5/05).................................. 2006 1.146 1.316 -- 2005 1.000 1.146 -- Travelers U.S. Government Securities Subaccount (1/92)............................................. 2006 1.037 1.000 -- 2005 1.008 1.037 437 2004 1.000 1.008 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (5/03)............................................. 2007 1.271 1.224 -- 2006 1.110 1.271 -- 2005 1.081 1.110 -- 2004 1.000 1.081 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.65% 3.5% AIR UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Dreyfus Stock Index Subaccount (Initial Shares) (1/92)............................................. 2007 1.261 1.328 -- 2006 1.110 1.261 1,666 2005 1.078 1.110 469 2004 1.000 1.078 -- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (5/01)................................... 2006 1.237 1.209 -- 2005 1.095 1.237 -- 2004 1.000 1.095 -- Capital Appreciation Fund Capital Appreciation Fund (12/87).................. 2006 1.326 1.311 -- 2005 1.140 1.326 981 2004 1.000 1.140 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (5/03)............................................. 2006 1.182 1.542 -- 2005 1.121 1.182 87 2004 1.000 1.121 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.65% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Dreyfus Variable Investment Fund Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (5/98)..................................... 2007 1.131 0.990 5,729 2006 1.108 1.131 201 2005 1.065 1.108 94 2004 1.000 1.065 -- Fidelity(R) Variable Insurance Products VIP Asset Manager SM Subaccount (Initial Class) (1/92)............................................. 2007 1.128 1.181 -- 2006 1.069 1.128 110 2005 1.044 1.069 -- 2004 1.000 1.044 -- VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.366 1.576 12,106 2006 1.246 1.366 2,329 2005 1.086 1.246 694 2004 1.000 1.086 -- VIP Equity -- Income Subaccount (Initial Class) (7/93)............................................. 2007 1.324 1.322 5,404 2006 1.120 1.324 4,266 2005 1.075 1.120 1,211 2004 1.000 1.075 -- VIP Growth Subaccount (Initial Class) (1/92)....... 2007 1.177 1.469 5,240 2006 1.119 1.177 197 2005 1.076 1.119 93 2004 1.000 1.076 -- VIP Mid Cap Subaccount (Service Class 2) (5/01).... 2007 1.436 1.629 -- 2006 1.299 1.436 -- 2005 1.119 1.299 -- 2004 1.000 1.119 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (5/01)........................ 2007 1.207 1.320 -- 2006 1.129 1.207 -- 2005 1.095 1.129 -- 2004 1.000 1.095 -- FTVIPT Mutual Shares Securities Subaccount (Class 2) (5/03).......................................... 2006 1.169 1.362 -- 2005 1.075 1.169 553 2004 1.000 1.075 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (5/04)........................ 2007 1.758 2.227 3,545 2006 1.395 1.758 158 2005 1.113 1.395 81 2004 1.000 1.113 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.65% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (5/04)................................... 2007 1.437 1.632 60 2006 1.203 1.437 65 2005 1.110 1.203 -- 2004 1.000 1.110 -- FTVIPT Templeton Global Asset Allocation Subaccount (Class 1) (1/92)................................... 2007 1.355 1.433 -- 2006 1.135 1.355 -- 2005 1.111 1.135 -- 2004 1.000 1.111 -- FTVIPT Templeton Growth Securities Subaccount (Class 1) (1/92)................................... 2007 1.368 1.368 -- 2006 1.176 1.368 -- 2005 1.096 1.176 951 2004 1.000 1.096 -- High Yield Bond Trust High Yield Bond Trust (12/87)...................... 2006 1.032 1.055 -- 2005 1.035 1.032 97 2004 1.000 1.035 -- Janus Aspen Series Janus Aspen International Growth Subaccount (Service Shares) (5/01)............................ 2007 2.109 2.655 45 2006 1.462 2.109 46 2005 1.126 1.462 -- 2004 1.000 1.126 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (5/03)...... 2006 1.136 1.275 -- 2005 1.111 1.136 -- 2004 1.000 1.111 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (5/01)............................................. 2007 1.269 1.267 10,182 2006 1.186 1.269 375 2005 1.079 1.186 181 2004 1.000 1.079 -- LMPVET Appreciation Subaccount (Class I) (5/02).... 2007 1.229 1.311 -- 2006 1.088 1.229 -- 2005 1.061 1.088 -- 2004 1.000 1.061 -- LMPVET Fundamental Value Subaccount (Class I) (5/01)............................................. 2007 1.272 1.267 133 2006 1.107 1.272 138 2005 1.074 1.107 -- 2004 1.000 1.074 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.65% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Investors Subaccount (Class I) (5/01)....... 2007 1.309 1.337 -- 2006 1.125 1.309 -- 2005 1.073 1.125 -- 2004 1.000 1.073 -- LMPVET Large Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.169 1.211 145 2006 1.136 1.169 159 2005 1.098 1.136 -- 2004 1.000 1.098 -- LMPVET Small Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.302 1.409 1,851 2006 1.174 1.302 1,118 2005 1.138 1.174 200 2004 1.000 1.138 -- LMPVET Social Awareness Subaccount (5/92).......... 2007 1.204 1.313 -- 2006 1.136 1.204 -- 2005 1.107 1.136 -- 2004 1.000 1.107 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (9/03).... 2007 1.029 1.026 -- 2006 1.005 1.029 -- 2005 0.998 1.005 -- 2004 1.000 0.998 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (5/01)......... 2007 1.275 1.338 -- 2006 1.098 1.275 -- 2005 1.073 1.098 -- 2004 1.000 1.073 -- Managed Assets Trust Managed Assets Trust (12/87)....................... 2006 1.077 1.111 -- 2005 1.054 1.077 189 2004 1.000 1.054 -- Met Investors Series Trust MIST Batterymarch Growth and Income Subaccount (Class A) (4/06)................................... 2007 1.268 1.345 9,863 2006 1.179 1.268 386 MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (4/06).......................................... 2007 1.275 1.330 -- 2006 1.340 1.275 -- MIST BlackRock High Yield Subaccount (Class A) (4/07) *........................................... 2007 1.163 1.132 5,807 MIST BlackRock Large-Cap Core Subaccount (Class A) (4/06)............................................. 2007 1.267 1.328 -- 2006 1.197 1.267 137
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.65% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.317 1.327 133 MIST Dreman Small-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.399 1.362 -- 2006 1.313 1.399 -- MIST Harris Oakmark International Subaccount (Class A) (4/06) *........................................ 2007 1.493 1.456 59 2006 1.355 1.493 64 MIST Janus Forty Subaccount (Class A) (4/06)....... 2007 1.344 1.725 13,861 2006 1.311 1.344 3,732 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.230 1.089 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (4/06)................................... 2007 1.174 1.228 11,006 2006 1.111 1.174 402 MIST Loomis Sayles Global Markets Subaccount (Class A) (4/07) *........................................ 2007 1.424 1.711 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (4/06).......................................... 2007 1.153 1.211 -- 2006 1.100 1.153 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (4/06)................................... 2007 1.075 1.097 3,964 2006 1.001 1.075 2,756 MIST Met/AIM Capital Appreciation Subaccount (Class A) (4/06).......................................... 2007 1.200 1.321 -- 2006 1.215 1.200 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (4/06)............................................. 2007 1.314 1.439 -- 2006 1.324 1.314 -- MIST MFS(R) Value Subaccount (Class A) (4/06)...... 2007 1.353 1.432 127 2006 1.225 1.353 139 MIST Neuberger Berman Real Estate Subaccount (Class A) (4/06).......................................... 2007 1.220 1.022 5,640 2006 1.003 1.220 224 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.009 1.068 -- MIST Pioneer Fund Subaccount (Class A) (4/06)...... 2007 1.288 1.330 -- 2006 1.198 1.288 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.127 1.244 -- 2006 1.071 1.127 -- MIST Pioneer Strategic Income Subaccount (Class A) (4/06)............................................. 2007 1.110 1.164 -- 2006 1.072 1.110 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.65% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Third Avenue Small Cap Value Subaccount (Class B) (11/06) *....................................... 2007 1.302 1.242 -- 2006 1.275 1.302 -- MetLife Investment Funds, Inc. MetLife Investment Diversified Bond Subaccount (Class I) (6/93)................................... 2007 1.035 1.065 -- 2006 1.009 1.035 -- 2005 1.005 1.009 -- 2004 1.000 1.005 -- MetLife Investment International Stock Subaccount (Class I) (5/93)................................... 2007 1.552 1.660 -- 2006 1.247 1.552 -- 2005 1.106 1.247 -- 2004 1.000 1.106 -- MetLife Investment Large Company Stock Subaccount (Class I) (6/93)................................... 2007 1.263 1.315 -- 2006 1.140 1.263 -- 2005 1.087 1.140 -- 2004 1.000 1.087 -- MetLife Investment Small Company Stock Subaccount (Class I) (5/93)................................... 2007 1.315 1.309 -- 2006 1.176 1.315 -- 2005 1.115 1.176 -- 2004 1.000 1.115 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (4/06).......................................... 2007 1.178 1.395 68 2006 1.207 1.178 75 MSF BlackRock Bond Income Subaccount (Class A) (4/06) *........................................... 2007 1.041 1.089 -- 2006 1.001 1.041 -- MSF BlackRock Diversified Subaccount (Class A) (4/07)............................................. 2007 1.176 1.185 107 MSF BlackRock Money Market Subaccount (Class A) (4/06) *........................................... 2007 1.023 1.058 -- 2006 1.000 1.023 -- MSF FI Large Cap Subaccount (Class A) (4/06)....... 2007 1.125 1.150 -- 2006 1.110 1.125 -- MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) (11/07) *................................ 2007 1.064 1.078 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/06).......................................... 2007 1.120 1.137 -- 2006 1.000 1.120 -- 2005 1.000 1.000 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.65% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Conservative Allocation Subaccount (Class B) (2/06)................................... 2007 1.047 1.088 -- 2006 1.000 1.047 -- 2005 1.000 1.000 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/06)........................ 2007 1.061 1.093 -- 2006 1.000 1.061 -- 2005 1.000 1.000 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/06).......................................... 2007 1.072 1.100 3,998 2006 1.000 1.072 1,304 2005 1.000 1.000 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/06)........................ 2007 1.100 1.123 -- 2006 1.000 1.100 -- 2005 1.000 1.000 -- MSF MetLife Stock Index Subaccount (Class A) (4/07) *.................................................. 2007 1.131 1.121 2,542 MSF MFS(R) Total Return Subaccount (Class F) (4/06)............................................. 2007 1.181 1.211 18,853 2006 1.106 1.181 6,736 MSF Morgan Stanley EAFE(R) Index Subaccount (Class A) (11/07) *....................................... 2007 1.676 1.635 -- MSF Oppenheimer Global Equity Subaccount (Class A) (4/06) *........................................... 2007 1.052 1.102 11,035 2006 0.996 1.052 4,025 MSF Russell 2000(R) Index Subaccount (Class A) (11/07) *.......................................... 2007 1.337 1.299 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (4/06)................................... 2007 1.068 1.147 -- 2006 0.998 1.068 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (4/06)........................ 2007 1.120 1.163 -- 2006 1.055 1.120 208 MSF Western Asset Management U.S. Government Subaccount (Class A) (4/06) *...................... 2007 1.031 1.060 -- 2006 0.997 1.031 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (5/05)...................................... 2007 0.985 1.004 -- 2006 0.994 0.985 -- 2005 1.000 0.994 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.037 1.109 13,066 2006 1.015 1.037 428 2005 1.007 1.015 195 2004 1.000 1.007 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.65% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Putnam Variable Trust Putnam VT Small Cap Value Subaccount (Class IB) (5/01)............................................. 2007 1.374 1.467 -- 2006 1.191 1.374 -- 2005 1.131 1.191 -- 2004 1.000 1.131 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (5/05)............................................. 2006 1.141 1.215 -- 2005 1.000 1.141 -- Travelers Convertible Securities Subaccount (6/05)............................................. 2006 1.032 1.100 -- 2005 1.000 1.032 -- Travelers Disciplined Mid Cap Stock Subaccount (5/98)............................................. 2006 1.227 1.340 -- 2005 1.109 1.227 -- 2004 1.000 1.109 -- Travelers Large Cap Subaccount (6/05).............. 2006 1.078 1.110 -- 2005 1.000 1.078 -- Travelers Managed Allocation Series: Aggressive Subaccount (11/05)................................. 2006 1.033 1.098 -- 2005 1.000 1.033 -- Travelers Managed Allocation Series: Moderate Subaccount (8/05).................................. 2006 1.032 1.069 -- 2005 1.000 1.032 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (10/05)...................... 2006 1.041 1.085 -- 2005 1.000 1.041 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (11/05).................... 2006 1.022 1.042 -- 2005 1.000 1.022 -- Travelers Mercury Large Cap Core Subaccount (5/05)............................................. 2006 1.127 1.197 -- 2005 1.000 1.127 -- Travelers MFS(R) Mid Cap Growth Subaccount (5/01).. 2006 1.141 1.207 -- 2005 1.125 1.141 -- 2004 1.000 1.125 -- Travelers MFS(R) Total Return Subaccount (2/95).... 2006 1.071 1.106 -- 2005 1.058 1.071 1,822 2004 1.000 1.058 -- Travelers MFS(R) Value Subaccount (5/04)........... 2006 1.134 1.225 -- 2005 1.082 1.134 -- 2004 1.000 1.082 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.65% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Mondrian International Stock Subaccount (5/04)............................................. 2006 1.180 1.355 -- 2005 1.095 1.180 -- 2004 1.000 1.095 -- Travelers Pioneer Fund Subaccount (2/94)........... 2006 1.130 1.198 -- 2005 1.083 1.130 -- 2004 1.000 1.083 -- Travelers Pioneer Mid Cap Value Subaccount (6/05).. 2006 1.018 1.071 -- 2005 1.000 1.018 -- Travelers Pioneer Strategic Income Subaccount (3/95)............................................. 2006 1.061 1.072 -- 2005 1.041 1.061 -- 2004 1.000 1.041 -- Travelers Strategic Equity Subaccount (2/95)....... 2006 1.090 1.137 -- 2005 1.086 1.090 -- 2004 1.000 1.086 -- Travelers Style Focus Series: Small Cap Growth Subaccount (5/05).................................. 2006 1.150 1.324 -- 2005 1.000 1.150 -- Travelers Style Focus Series: Small Cap Value Subaccount (5/05).................................. 2006 1.145 1.313 -- 2005 1.000 1.145 -- Travelers U.S. Government Securities Subaccount (1/92)............................................. 2006 1.034 0.997 -- 2005 1.007 1.034 -- 2004 1.000 1.007 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (5/03)............................................. 2007 1.264 1.214 134 2006 1.107 1.264 139 2005 1.081 1.107 -- 2004 1.000 1.081 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.75% 3.5% AIR UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Dreyfus Stock Index Subaccount (Initial Shares) (1/92)............................................. 2007 1.174 1.235 -- 2006 1.034 1.174 -- 2005 1.000 1.034 -- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (5/01)................................... 2006 1.160 1.133 -- 2005 1.000 1.160 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.75% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Capital Appreciation Fund Capital Appreciation Fund (12/87).................. 2006 1.171 1.158 -- 2005 1.000 1.171 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (5/03)............................................. 2006 1.089 1.419 -- 2005 1.000 1.089 -- Dreyfus Variable Investment Fund Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (5/98)..................................... 2007 1.083 0.947 -- 2006 1.062 1.083 -- 2005 1.000 1.062 -- Fidelity(R) Variable Insurance Products VIP Asset Manager SM Subaccount (Initial Class) (1/92)............................................. 2007 1.080 1.130 -- 2006 1.024 1.080 -- 2005 1.000 1.024 -- VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.243 1.433 -- 2006 1.135 1.243 -- 2005 1.000 1.135 -- VIP Equity -- Income Subaccount (Initial Class) (7/93)............................................. 2007 1.228 1.225 -- 2006 1.040 1.228 -- 2005 1.000 1.040 -- VIP Growth Subaccount (Initial Class) (1/92)....... 2007 1.108 1.382 -- 2006 1.055 1.108 -- 2005 1.000 1.055 -- VIP Mid Cap Subaccount (Service Class 2) (5/01).... 2007 1.263 1.431 -- 2006 1.143 1.263 -- 2005 1.000 1.143 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (5/01)........................ 2007 1.128 1.233 -- 2006 1.056 1.128 -- 2005 1.000 1.056 -- FTVIPT Mutual Shares Securities Subaccount (Class 2) (5/03).......................................... 2006 1.084 1.261 -- 2005 1.000 1.084 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (5/04)........................ 2007 1.527 1.932 -- 2006 1.213 1.527 -- 2005 1.000 1.213 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.75% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (5/04)................................... 2007 1.284 1.457 -- 2006 1.076 1.284 -- 2005 1.000 1.076 -- FTVIPT Templeton Global Asset Allocation Subaccount (Class 1) (1/92)................................... 2007 1.225 1.296 -- 2006 1.027 1.225 -- 2005 1.000 1.027 -- FTVIPT Templeton Growth Securities Subaccount (Class 1) (1/92)................................... 2007 1.242 1.242 -- 2006 1.068 1.242 -- 2005 1.000 1.068 -- High Yield Bond Trust High Yield Bond Trust (12/87)...................... 2006 0.991 1.013 -- 2005 1.000 0.991 -- Janus Aspen Series Janus Aspen International Growth Subaccount (Service Shares) (5/01)............................ 2007 1.843 2.318 -- 2006 1.279 1.843 -- 2005 1.000 1.279 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (5/03)...... 2006 1.033 1.158 -- 2005 1.000 1.033 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (5/01)............................................. 2007 1.189 1.186 -- 2006 1.112 1.189 -- 2005 1.000 1.112 -- LMPVET Appreciation Subaccount (Class I) (5/02).... 2007 1.148 1.223 -- 2006 1.018 1.148 -- 2005 1.000 1.018 -- LMPVET Fundamental Value Subaccount (Class I) (5/01)............................................. 2007 1.197 1.192 -- 2006 1.043 1.197 -- 2005 1.000 1.043 -- LMPVET Investors Subaccount (Class I) (5/01)....... 2007 1.220 1.246 -- 2006 1.050 1.220 -- 2005 1.000 1.050 -- LMPVET Large Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.089 1.126 -- 2006 1.059 1.089 -- 2005 1.000 1.059 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.75% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Small Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.196 1.292 -- 2006 1.079 1.196 -- 2005 1.000 1.079 -- LMPVET Social Awareness Subaccount (5/92).......... 2007 1.109 1.208 -- 2006 1.048 1.109 -- 2005 1.000 1.048 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (9/03).... 2007 1.028 1.024 -- 2006 1.005 1.028 -- 2005 1.000 1.005 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (5/01)......... 2007 1.204 1.263 -- 2006 1.038 1.204 -- 2005 1.000 1.038 -- Managed Assets Trust Managed Assets Trust (12/87)....................... 2006 1.021 1.053 -- 2005 1.000 1.021 -- Met Investors Series Trust MIST Batterymarch Growth and Income Subaccount (Class A) (4/06)................................... 2007 1.178 1.248 -- 2006 1.095 1.178 -- MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (4/06).......................................... 2007 1.140 1.188 -- 2006 1.198 1.140 -- MIST BlackRock High Yield Subaccount (Class A) (4/07) *........................................... 2007 1.115 1.084 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (4/06)............................................. 2007 1.265 1.326 -- 2006 1.196 1.265 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.315 1.323 -- MIST Dreman Small-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.397 1.359 -- 2006 1.311 1.397 -- MIST Harris Oakmark International Subaccount (Class A) (4/06) *........................................ 2007 1.355 1.320 -- 2006 1.231 1.355 -- MIST Janus Forty Subaccount (Class A) (4/06)....... 2007 1.186 1.520 -- 2006 1.158 1.186 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.228 1.087 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.75% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (4/06)................................... 2007 1.112 1.162 -- 2006 1.053 1.112 -- MIST Loomis Sayles Global Markets Subaccount (Class A) (4/07) *........................................ 2007 1.288 1.546 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (4/06).......................................... 2007 1.151 1.208 -- 2006 1.099 1.151 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (4/06)................................... 2007 1.075 1.095 -- 2006 1.001 1.075 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (4/06).......................................... 2007 1.198 1.318 -- 2006 1.214 1.198 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (4/06)............................................. 2007 1.312 1.436 -- 2006 1.323 1.312 -- MIST MFS(R) Value Subaccount (Class A) (4/06)...... 2007 1.239 1.310 -- 2006 1.122 1.239 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/06).......................................... 2007 1.219 1.020 -- 2006 1.003 1.219 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.007 1.065 -- MIST Pioneer Fund Subaccount (Class A) (4/06)...... 2007 1.194 1.232 -- 2006 1.112 1.194 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.125 1.241 -- 2006 1.070 1.125 -- MIST Pioneer Strategic Income Subaccount (Class A) (4/06)............................................. 2007 1.055 1.106 -- 2006 1.020 1.055 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (11/06) *....................................... 2007 1.183 1.127 -- 2006 1.158 1.183 -- MetLife Investment Funds, Inc. MetLife Investment Diversified Bond Subaccount (Class I) (6/93)................................... 2007 1.021 1.049 -- 2006 0.996 1.021 -- 2005 1.000 0.996 -- MetLife Investment International Stock Subaccount (Class I) (5/93)................................... 2007 1.396 1.491 -- 2006 1.122 1.396 -- 2005 1.000 1.122 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.75% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MetLife Investment Large Company Stock Subaccount (Class I) (6/93)................................... 2007 1.162 1.209 -- 2006 1.051 1.162 -- 2005 1.000 1.051 -- MetLife Investment Small Company Stock Subaccount (Class I) (5/93)................................... 2007 1.206 1.199 -- 2006 1.080 1.206 -- 2005 1.000 1.080 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (4/06).......................................... 2007 1.083 1.281 -- 2006 1.110 1.083 -- MSF BlackRock Bond Income Subaccount (Class A) (4/06) *........................................... 2007 1.040 1.088 -- 2006 1.001 1.040 -- MSF BlackRock Diversified Subaccount (Class A) (4/07)............................................. 2007 1.125 1.133 -- MSF BlackRock Money Market Subaccount (Class A) (4/06) *........................................... 2007 1.022 1.057 -- 2006 1.000 1.022 -- MSF FI Large Cap Subaccount (Class A) (4/06)....... 2007 1.124 1.147 -- 2006 1.109 1.124 -- MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) (11/07) *................................ 2007 1.048 1.062 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/06).......................................... 2007 1.119 1.135 -- 2006 1.000 1.119 -- 2005 1.000 1.000 -- MSF MetLife Conservative Allocation Subaccount (Class B) (2/06)................................... 2007 1.046 1.086 -- 2006 1.000 1.046 -- 2005 1.000 1.000 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/06)........................ 2007 1.060 1.091 -- 2006 1.000 1.060 -- 2005 1.000 1.000 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/06).......................................... 2007 1.071 1.098 -- 2006 1.000 1.071 -- 2005 1.000 1.000 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/06)........................ 2007 1.099 1.121 -- 2006 1.000 1.099 -- 2005 1.000 1.000 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.75% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Stock Index Subaccount (Class A) (4/07) *.................................................. 2007 1.130 1.119 -- MSF MFS(R) Total Return Subaccount (Class F) (4/06)............................................. 2007 1.116 1.142 -- 2006 1.045 1.116 -- MSF Morgan Stanley EAFE(R) Index Subaccount (Class A) (11/07) *....................................... 2007 1.506 1.469 -- MSF Oppenheimer Global Equity Subaccount (Class A) (4/06) *........................................... 2007 1.051 1.100 -- 2006 0.996 1.051 -- MSF Russell 2000(R) Index Subaccount (Class A) (11/07) *.......................................... 2007 1.226 1.190 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (4/06)................................... 2007 1.068 1.145 -- 2006 0.998 1.068 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (4/06)........................ 2007 1.075 1.115 -- 2006 1.013 1.075 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (4/06) *...................... 2007 0.998 1.025 -- 2006 0.965 0.998 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (5/05)...................................... 2007 0.983 1.002 -- 2006 0.994 0.983 -- 2005 1.000 0.994 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.023 1.093 -- 2006 1.002 1.023 -- 2005 1.000 1.002 -- Putnam Variable Trust Putnam VT Small Cap Value Subaccount (Class IB) (5/01)............................................. 2007 1.219 1.301 -- 2006 1.058 1.219 -- 2005 1.000 1.058 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (5/05)............................................. 2006 1.141 1.214 -- 2005 1.000 1.141 -- Travelers Convertible Securities Subaccount (6/05)............................................. 2006 1.032 1.099 -- 2005 1.000 1.032 -- Travelers Disciplined Mid Cap Stock Subaccount (5/98)............................................. 2006 1.098 1.198 -- 2005 1.000 1.098 -- Travelers Large Cap Subaccount (6/05).............. 2006 1.077 1.109 -- 2005 1.000 1.077 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.75% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Managed Allocation Series: Aggressive Subaccount (11/05)................................. 2006 1.033 1.098 -- 2005 1.000 1.033 -- Travelers Managed Allocation Series: Moderate Subaccount (8/05).................................. 2006 1.032 1.068 -- 2005 1.000 1.032 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (10/05)...................... 2006 1.040 1.085 -- 2005 1.000 1.040 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (11/05).................... 2006 1.022 1.042 -- 2005 1.000 1.022 -- Travelers Mercury Large Cap Core Subaccount (5/05)............................................. 2006 1.127 1.196 -- 2005 1.000 1.127 -- Travelers MFS(R) Mid Cap Growth Subaccount (5/01).. 2006 1.050 1.110 -- 2005 1.000 1.050 -- Travelers MFS(R) Total Return Subaccount (2/95).... 2006 1.013 1.045 -- 2005 1.000 1.013 -- Travelers MFS(R) Value Subaccount (5/04)........... 2006 1.039 1.122 -- 2005 1.000 1.039 -- Travelers Mondrian International Stock Subaccount (5/04)............................................. 2006 1.072 1.231 -- 2005 1.000 1.072 -- Travelers Pioneer Fund Subaccount (2/94)........... 2006 1.048 1.112 -- 2005 1.000 1.048 -- Travelers Pioneer Mid Cap Value Subaccount (6/05).. 2006 1.017 1.070 -- 2005 1.000 1.017 -- Travelers Pioneer Strategic Income Subaccount (3/95)............................................. 2006 1.010 1.020 -- 2005 1.000 1.010 -- Travelers Strategic Equity Subaccount (2/95)....... 2006 1.047 1.092 -- 2005 1.000 1.047 -- Travelers Style Focus Series: Small Cap Growth Subaccount (5/05).................................. 2006 1.150 1.323 -- 2005 1.000 1.150 -- Travelers Style Focus Series: Small Cap Value Subaccount (5/05).................................. 2006 1.144 1.311 -- 2005 1.000 1.144 -- Travelers U.S. Government Securities Subaccount (1/92)............................................. 2006 1.002 0.965 -- 2005 1.000 1.002 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.75% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (5/03)............................................. 2007 1.178 1.130 -- 2006 1.033 1.178 -- 2005 1.000 1.033 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.80% 3.5% AIR UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Dreyfus Stock Index Subaccount (Initial Shares) (1/92)............................................. 2007 1.257 1.323 -- 2006 1.108 1.257 -- 2005 1.077 1.108 -- 2004 1.000 1.077 -- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (5/01)................................... 2006 1.235 1.205 -- 2005 1.095 1.235 -- 2004 1.000 1.095 -- Capital Appreciation Fund Capital Appreciation Fund (12/87).................. 2006 1.323 1.308 -- 2005 1.140 1.323 -- 2004 1.000 1.140 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (5/03)............................................. 2006 1.180 1.537 -- 2005 1.121 1.180 -- 2004 1.000 1.121 -- Dreyfus Variable Investment Fund Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (5/98)..................................... 2007 1.128 0.985 2,077 2006 1.106 1.128 -- 2005 1.065 1.106 -- 2004 1.000 1.065 -- Fidelity(R) Variable Insurance Products VIP Asset Manager SM Subaccount (Initial Class) (1/92)............................................. 2007 1.124 1.176 -- 2006 1.067 1.124 -- 2005 1.044 1.067 -- 2004 1.000 1.044 -- VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.362 1.569 16,543 2006 1.244 1.362 14,986 2005 1.086 1.244 14,986 2004 1.000 1.086 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.80% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- VIP Equity -- Income Subaccount (Initial Class) (7/93)............................................. 2007 1.319 1.316 16,758 2006 1.118 1.319 16,758 2005 1.075 1.118 16,758 2004 1.000 1.075 -- VIP Growth Subaccount (Initial Class) (1/92)....... 2007 1.173 1.462 -- 2006 1.117 1.173 -- 2005 1.075 1.117 -- 2004 1.000 1.075 -- VIP Mid Cap Subaccount (Service Class 2) (5/01).... 2007 1.431 1.621 1,429 2006 1.297 1.431 -- 2005 1.118 1.297 -- 2004 1.000 1.118 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (5/01)........................ 2007 1.203 1.314 -- 2006 1.127 1.203 -- 2005 1.095 1.127 -- 2004 1.000 1.095 -- FTVIPT Mutual Shares Securities Subaccount (Class 2) (5/03).......................................... 2006 1.167 1.357 -- 2005 1.075 1.167 16,253 2004 1.000 1.075 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (5/04)........................ 2007 1.752 2.216 363 2006 1.393 1.752 -- 2005 1.113 1.393 -- 2004 1.000 1.113 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (5/04)................................... 2007 1.432 1.624 17,415 2006 1.201 1.432 15,954 2005 1.110 1.201 15,954 2004 1.000 1.110 -- FTVIPT Templeton Global Asset Allocation Subaccount (Class 1) (1/92)................................... 2007 1.350 1.428 -- 2006 1.132 1.350 -- 2005 1.110 1.132 -- 2004 1.000 1.110 -- FTVIPT Templeton Growth Securities Subaccount (Class 1) (1/92)................................... 2007 1.364 1.364 -- 2006 1.174 1.364 -- 2005 1.096 1.174 -- 2004 1.000 1.096 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.80% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- High Yield Bond Trust High Yield Bond Trust (12/87)...................... 2006 1.030 1.053 -- 2005 1.035 1.030 -- 2004 1.000 1.035 -- Janus Aspen Series Janus Aspen International Growth Subaccount (Service Shares) (5/01)............................ 2007 2.102 2.643 -- 2006 1.459 2.102 -- 2005 1.126 1.459 -- 2004 1.000 1.126 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (5/03)...... 2006 1.134 1.271 -- 2005 1.110 1.134 -- 2004 1.000 1.110 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (5/01)............................................. 2007 1.264 1.260 -- 2006 1.183 1.264 -- 2005 1.079 1.183 -- 2004 1.000 1.079 -- LMPVET Appreciation Subaccount (Class I) (5/02).... 2007 1.225 1.304 -- 2006 1.087 1.225 -- 2005 1.061 1.087 -- 2004 1.000 1.061 -- LMPVET Fundamental Value Subaccount (Class I) (5/01)............................................. 2007 1.268 1.261 -- 2006 1.105 1.268 -- 2005 1.074 1.105 -- 2004 1.000 1.074 -- LMPVET Investors Subaccount (Class I) (5/01)....... 2007 1.304 1.331 -- 2006 1.123 1.304 -- 2005 1.073 1.123 -- 2004 1.000 1.073 -- LMPVET Large Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.165 1.205 -- 2006 1.134 1.165 -- 2005 1.097 1.134 -- 2004 1.000 1.097 -- LMPVET Small Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.298 1.402 -- 2006 1.172 1.298 -- 2005 1.137 1.172 -- 2004 1.000 1.137 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.80% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Social Awareness Subaccount (5/92).......... 2007 1.200 1.307 -- 2006 1.134 1.200 -- 2005 1.106 1.134 -- 2004 1.000 1.106 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (9/03).... 2007 1.026 1.021 -- 2006 1.003 1.026 -- 2005 0.998 1.003 -- 2004 1.000 0.998 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (5/01)......... 2007 1.271 1.333 -- 2006 1.096 1.271 -- 2005 1.072 1.096 -- 2004 1.000 1.072 -- Managed Assets Trust Managed Assets Trust (12/87)....................... 2006 1.075 1.108 -- 2005 1.054 1.075 -- 2004 1.000 1.054 -- Met Investors Series Trust MIST Batterymarch Growth and Income Subaccount (Class A) (4/06)................................... 2007 1.264 1.339 -- 2006 1.176 1.264 -- MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (4/06).......................................... 2007 1.271 1.324 -- 2006 1.337 1.271 -- MIST BlackRock High Yield Subaccount (Class A) (4/07) *........................................... 2007 1.158 1.126 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (4/06)............................................. 2007 1.264 1.324 -- 2006 1.195 1.264 16,515 MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.313 1.321 16,515 MIST Dreman Small-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.395 1.357 -- 2006 1.311 1.395 -- MIST Harris Oakmark International Subaccount (Class A) (4/06) *........................................ 2007 1.488 1.449 968 2006 1.352 1.488 -- MIST Janus Forty Subaccount (Class A) (4/06)....... 2007 1.340 1.716 1,570 2006 1.308 1.340 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.226 1.085 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.80% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (4/06)................................... 2007 1.170 1.222 -- 2006 1.108 1.170 -- MIST Loomis Sayles Global Markets Subaccount (Class A) (4/07) *........................................ 2007 1.419 1.703 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (4/06).......................................... 2007 1.150 1.207 -- 2006 1.099 1.150 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (4/06)................................... 2007 1.074 1.094 20,267 2006 1.001 1.074 20,267 MIST Met/AIM Capital Appreciation Subaccount (Class A) (4/06).......................................... 2007 1.197 1.316 -- 2006 1.213 1.197 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (4/06)............................................. 2007 1.311 1.434 -- 2006 1.322 1.311 -- MIST MFS(R) Value Subaccount (Class A) (4/06)...... 2007 1.348 1.425 -- 2006 1.222 1.348 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/06).......................................... 2007 1.218 1.020 -- 2006 1.003 1.218 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.006 1.063 -- MIST Pioneer Fund Subaccount (Class A) (4/06)...... 2007 1.284 1.324 -- 2006 1.196 1.284 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (4/06)............................................. 2007 1.124 1.240 -- 2006 1.070 1.124 -- MIST Pioneer Strategic Income Subaccount (Class A) (4/06)............................................. 2007 1.106 1.159 -- 2006 1.069 1.106 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (11/06) *....................................... 2007 1.297 1.236 -- 2006 1.271 1.297 -- MetLife Investment Funds, Inc. MetLife Investment Diversified Bond Subaccount (Class I) (6/93)................................... 2007 1.032 1.060 -- 2006 1.007 1.032 -- 2005 1.005 1.007 -- 2004 1.000 1.005 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.80% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MetLife Investment International Stock Subaccount (Class I) (5/93)................................... 2007 1.547 1.652 -- 2006 1.245 1.547 -- 2005 1.105 1.245 -- 2004 1.000 1.105 -- MetLife Investment Large Company Stock Subaccount (Class I) (6/93)................................... 2007 1.259 1.309 -- 2006 1.138 1.259 -- 2005 1.087 1.138 -- 2004 1.000 1.087 -- MetLife Investment Small Company Stock Subaccount (Class I) (5/93)................................... 2007 1.310 1.303 -- 2006 1.174 1.310 -- 2005 1.114 1.174 -- 2004 1.000 1.114 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (4/06).......................................... 2007 1.174 1.388 -- 2006 1.204 1.174 -- MSF BlackRock Bond Income Subaccount (Class A) (4/06) *........................................... 2007 1.040 1.087 -- 2006 1.001 1.040 -- MSF BlackRock Diversified Subaccount (Class A) (4/07)............................................. 2007 1.172 1.179 -- MSF BlackRock Money Market Subaccount (Class A) (4/06) *........................................... 2007 1.022 1.056 -- 2006 1.000 1.022 -- MSF FI Large Cap Subaccount (Class A) (4/06)....... 2007 1.123 1.146 -- 2006 1.109 1.123 -- MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) (11/07) *................................ 2007 1.059 1.073 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/06).......................................... 2007 1.118 1.134 -- 2006 1.000 1.118 -- 2005 1.000 1.000 -- MSF MetLife Conservative Allocation Subaccount (Class B) (2/06)................................... 2007 1.046 1.084 -- 2006 1.000 1.046 -- 2005 1.000 1.000 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/06)........................ 2007 1.059 1.090 -- 2006 1.000 1.059 -- 2005 1.000 1.000 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.80% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Moderate Allocation Subaccount (Class B) (1/06).......................................... 2007 1.070 1.097 -- 2006 1.000 1.070 -- 2005 1.000 1.000 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/06)........................ 2007 1.098 1.120 -- 2006 1.000 1.098 -- 2005 1.000 1.000 -- MSF MetLife Stock Index Subaccount (Class A) (4/07) *.................................................. 2007 1.129 1.118 -- MSF MFS(R) Total Return Subaccount (Class F) (4/06)............................................. 2007 1.178 1.205 -- 2006 1.103 1.178 -- MSF Morgan Stanley EAFE(R) Index Subaccount (Class A) (11/07) *....................................... 2007 1.668 1.628 -- MSF Oppenheimer Global Equity Subaccount (Class A) (4/06) *........................................... 2007 1.051 1.099 -- 2006 0.996 1.051 -- MSF Russell 2000(R) Index Subaccount (Class A) (11/07) *.......................................... 2007 1.331 1.293 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (4/06)................................... 2007 1.067 1.144 -- 2006 0.998 1.067 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (4/06)........................ 2007 1.117 1.159 -- 2006 1.053 1.117 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (4/06) *...................... 2007 1.028 1.055 -- 2006 0.994 1.028 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (5/05)...................................... 2007 0.982 1.001 -- 2006 0.993 0.982 -- 2005 1.000 0.993 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.033 1.104 -- 2006 1.013 1.033 -- 2005 1.007 1.013 -- 2004 1.000 1.007 -- Putnam Variable Trust Putnam VT Small Cap Value Subaccount (Class IB) (5/01)............................................. 2007 1.369 1.461 -- 2006 1.188 1.369 -- 2005 1.130 1.188 -- 2004 1.000 1.130 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.80% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (5/05)............................................. 2006 1.140 1.213 -- 2005 1.000 1.140 -- Travelers Convertible Securities Subaccount (6/05)............................................. 2006 1.032 1.099 -- 2005 1.000 1.032 -- Travelers Disciplined Mid Cap Stock Subaccount (5/98)............................................. 2006 1.225 1.337 -- 2005 1.109 1.225 -- 2004 1.000 1.109 -- Travelers Large Cap Subaccount (6/05).............. 2006 1.077 1.109 -- 2005 1.000 1.077 -- Travelers Managed Allocation Series: Aggressive Subaccount (11/05)................................. 2006 1.033 1.097 -- 2005 1.000 1.033 -- Travelers Managed Allocation Series: Moderate Subaccount (8/05).................................. 2006 1.031 1.067 -- 2005 1.000 1.031 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (10/05)...................... 2006 1.040 1.084 -- 2005 1.000 1.040 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (11/05).................... 2006 1.022 1.041 -- 2005 1.000 1.022 -- Travelers Mercury Large Cap Core Subaccount (5/05)............................................. 2006 1.126 1.195 -- 2005 1.000 1.126 16,515 Travelers MFS(R) Mid Cap Growth Subaccount (5/01).. 2006 1.139 1.204 -- 2005 1.125 1.139 -- 2004 1.000 1.125 -- Travelers MFS(R) Total Return Subaccount (2/95).... 2006 1.069 1.103 -- 2005 1.057 1.069 -- 2004 1.000 1.057 -- Travelers MFS(R) Value Subaccount (5/04)........... 2006 1.131 1.222 -- 2005 1.082 1.131 -- 2004 1.000 1.082 -- Travelers Mondrian International Stock Subaccount (5/04)............................................. 2006 1.178 1.352 -- 2005 1.095 1.178 -- 2004 1.000 1.095 --
UNIVERSAL ANNUITY ADVANTAGE -- SEPARATE ACCOUNT 1.80% 3.5% AIR (CONTINUED) UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Pioneer Fund Subaccount (2/94)........... 2006 1.128 1.196 -- 2005 1.083 1.128 -- 2004 1.000 1.083 -- Travelers Pioneer Mid Cap Value Subaccount (6/05).. 2006 1.017 1.070 -- 2005 1.000 1.017 -- Travelers Pioneer Strategic Income Subaccount (3/95)............................................. 2006 1.060 1.069 -- 2005 1.041 1.060 -- 2004 1.000 1.041 -- Travelers Strategic Equity Subaccount (2/95)....... 2006 1.088 1.135 -- 2005 1.086 1.088 -- 2004 1.000 1.086 -- Travelers Style Focus Series: Small Cap Growth Subaccount (5/05).................................. 2006 1.149 1.322 -- 2005 1.000 1.149 -- Travelers Style Focus Series: Small Cap Value Subaccount (5/05).................................. 2006 1.144 1.311 -- 2005 1.000 1.144 -- Travelers U.S. Government Securities Subaccount (1/92)............................................. 2006 1.032 0.994 -- 2005 1.007 1.032 -- 2004 1.000 1.007 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (5/03)............................................. 2007 1.259 1.208 1,185 2006 1.105 1.259 -- 2005 1.080 1.105 -- 2004 1.000 1.080 --
* We are currently waiving a portion of the Mortality and Expense Risk charge for this Subaccount. Please see "Fee Table -- Annual Separate Account Charges" for more information. The date next to each funding option name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amounts allocated to them or were not available as of December 31, 2007. Number of Units Outstanding at the end of the year may include units for Contracts in payout phase. Variable Funding Option mergers and substitutions that occurred between January 1, 2005 and December 31, 2007 are displayed below. Please see Appendix B for more information on Variable Funding Option mergers, substitutions and other changes. Effective on or about 05/01/06, Capital Appreciation Fund merged into Met Investors Series Trust-Janus Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Managed Assets Trust merged into Met Investors Series Trust-Legg Mason Partners Managed Assets Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, High Yield Bond Trust merged into Metropolitan Series Fund, Inc.-Western Asset Management High Yield Bond Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-AIM Capital Appreciation Portfolio merged into Met Investors Series Trust-Met/AIM Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Convertible Securities Portfolio merged into Met Investors Series Trust-Lord Abbett Bond Debenture Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Style Focus Series: Small Cap Value Portfolio merged into Met Investors Series Trust-Dreman Small- Cap Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Style Focus Series: Small Cap Growth Portfolio merged into Met Investors Series Trust-Met/AIM Small Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Mondrian International Stock Portfolio merged into Met Investors Series Trust-Harris Oakmark International Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Pioneer Mid Cap Value Portfolio merged into Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Disciplined Mid Cap Stock Portfolio merged into Met Investors Series Trust-Batterymarch Mid-Cap Stock Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Mercury Large Cap Core Portfolio merged into Met Investors Series Trust-Mercury Large-Cap Core Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-MFS(R) Value Portfolio merged into Met Investors Series Trust-MFS(R) Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Pioneer Fund Portfolio merged into Met Investors Series Trust-Pioneer Fund Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Pioneer Strategic Income Portfolio merged into Met Investors Series Trust-Pioneer Strategic Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Managed Separate Account-Travelers Growth and Income Stock Account for Variable Annuities merged into Met Investors Series Trust-Batterymarch Growth and Income Stock Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Managed Separate Account-Travelers Quality Bond Account for Variable Annuities merged into Metropolitan Series Fund, Inc.- BlackRock Bond Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Managed Separate Account Travelers Money Market Account for Variable Annuities merged into Metropolitan Series Fund, Inc.- BlackRock Money Market Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Large Cap Portfolio merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Strategic Equity Portfolio merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-MFS(R) Total Return Portfolio merged into Metropolitan Series Fund, Inc.-MFS(R) Total Return Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-MFS(R) Mid Cap Growth Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-U.S. Government Securities Portfolio merged into Metropolitan Series Fund, Inc.-Western Asset Manager U.S. Government Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Delaware VIP Trust-Delaware VIP REIT Series was replaced by Met Investors Series Trust-Neuberger Berman Real Estate Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Franklin Templeton Variable Insurance Products Trust-Mutual Shares Securities Fund was replaced by Met Investors Series Trust- Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, The Franklin Templeton Variable Insurance Products Trust-Templeton Growth Securities Fund was replaced by the Metropolitan Series Fund, Inc.-Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, AllianceBernstein Variable Products Series Fund, Inc-AllianceBernstein Large Cap Growth Portfolio was replaced by Metropolitan Series Fund, Inc.-T. Rowe Price Large Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 11/13/06, Lazard Small Cap Portfolio was replaced by the Third Avenue Small Cap Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable All Cap Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Fundamental Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios V-Legg Mason Partners Variable Small Cap Growth Opportunities Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Small Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class A was exchanged for Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class E and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio merged into Met Investors Series Trust-Lazard Mid-Cap Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Metropolitan Series Funds, Inc.-Western Asset Management High Yield Bond Portfolio merged into Met Investors Series Trust- BlackRock High Yield Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, PIMCO Variable Insurance Trust-Real Return Portfolio was replaced by Met Investors Series Trust-PIMCO Inflation Protected Bond Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Putnam Variable Trust-Putnam VT Small Cap Value Fund was replaced by Met Investors Series Trust-Third Avenue Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment Diversified Bond Portfolio was replaced by Metropolitan Series Fund, Inc.-Lehman Brothers(R) Aggregate Bond Index Portfolio -- Class A and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment International Stock Portfolio was replaced by Metropolitan Series Fund, Inc.-Morgan Stanley EAFE(R) Index Portfolio -- Class A and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment Large Company Stock Fund was replaced by Metropolitan Series Fund, Inc.-MetLife Stock Index Portfolio -- Class A and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment Small Company Stock Fund was replaced by Metropolitan Series Fund, Inc.-Russell 2000(R) Index Portfolio -- Class A and is no longer available as a funding option. Effective on or about 4/30/2007, Fidelity Variable Insurance Products Fund-VIP Asset Manager(SM) Portfolio was replaced by Metropolitan Series Fund, Inc.- BlackRock Diversified Portfolio -- Class A and is no longer available as a funding option. Effective on or about 4/30/2007, Frankin Templeton Variable Insurance Products Trust-Templeton Global Asset Allocation Portfolio was replaced by Met Investors Series Trust-Loomis Sayles Global Markets Portfolio -- Class A and is no longer available as a funding option. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Contract Owners of MetLife of CT Separate Account Eleven for Variable Annuities and the Board of Directors of MetLife Insurance Company of Connecticut: We have audited the accompanying statements of assets and liabilities of MetLife of CT Separate Account Eleven for Variable Annuities (the "Separate Account") of MetLife Insurance Company of Connecticut (the "Company") comprising each of the individual Subaccounts listed in Appendix A as of December 31, 2007, and the related statements of operations for the periods presented in the year then ended, and the statements of changes in net assets for each of the periods presented in the two years then ended. We have also audited the statements of operations for the periods presented in the year ended December 31, 2007, and the statements of changes in net assets for each of the periods presented in the two years then ended for each of the individual Subaccounts listed in Appendix B. These financial statements are the responsibility of the Separate Account's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial highlights of the Separate Account included in Note 5 for the periods in the two years ended December 31, 2004, were audited by other auditors whose report, dated March 21, 2005, expressed an unqualified opinion on those financial highlights. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Separate Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Separate Account's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the Subaccounts constituting the Separate Account of the Company as of December 31, 2007, the results of their operations for the periods presented in the year then ended, and the changes in their net assets for each of the periods presented in the two years then ended, in conformity with accounting principles generally accepted in the United States of America. /s/ DELOITTE & TOUCHE LLP Certified Public Accountants Tampa, FL March 24, 2008 APPENDIX A AIM V.I. Mid Cap Core Equity Subaccount (Series II) AIM V.I. Utilities Subaccount (Series I) Alger American Leveraged All Cap Subaccount (Class S) American Funds Global Growth Subaccount (Class 2) American Funds Growth-Income Subaccount (Class 2) American Funds Growth Subaccount (Class 2) Credit Suisse Trust Global Small Cap Subaccount Dreyfus Mid Cap Stock Subaccount (Service Shares) Dreyfus Socially Responsible Growth Subaccount (Service Shares) Dreyfus VIF Appreciation Subaccount (Initial Shares) Dreyfus VIF Developing Leaders Subaccount (Initial Shares) DWS VIT Equity 500 Index Subaccount (Class B) DWS VIT RREEF Real Estate Securities Subaccount (Class B) DWSI Global Opportunities Subaccount (Class B) DWSII Balanced Subaccount (Class B) DWSI Bond Subaccount (Class B) DWSI Capital Growth Subaccount (Class B) DWSI Growth & Income Subaccount (Class B) DWSI Health Care Subaccount (Class B) DWSII International Subaccount (Class B) DWSII Strategic Income Subaccount (Class B) DWSII Blue Chip Subaccount (Class B) DWSII Conservative Allocation Subaccount (Class B) DWSII Core Fixed Income Subaccount (Class B) DWSII Davis Venture Value Subaccount (Class B) DWSII Dreman High Return Equity Subaccount (Class B) DWSII Dreman Small Mid Cap Value Subaccount (Class B) DWSII Global Thematic Subaccount (Class B) DWSII Government & Agency Securities Subaccount (Class B) DWSII Growth Allocation Subaccount (Class B) DWSII High Income Subaccount (Class B) DWSII International Select Equity Subaccount (Class B) DWSII Janus Growth & Income Subaccount (Class B) DWSII Large Cap Value Subaccount (Class B) DWSII Mid Cap Growth Subaccount (Class B) DWSII Moderate Allocation Subaccount (Class B) DWSII Money Market Subaccount (Class B) DWSII Small Cap Growth Subaccount (Class B) DWSII Technology Subaccount (Class B) DWSII Turner Mid Cap Growth Subaccount (Class B) Fidelity VIP Contrafund Subaccount (Service Class 2) Fidelity VIP Dynamic Capital Appreciation Subaccount (Service Class 2) Fidelity VIP Mid Cap Subaccount (Service Class 2) FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) FTVIPT Templeton Foreign Securities Subaccount (Class 2) Janus Aspen Global Life Sciences Subaccount (Service Shares) Janus Aspen Global Technology Subaccount (Service Shares) Janus Aspen Worldwide Growth Subaccount (Service Shares) LMPVET Aggressive Growth Subaccount (Class I) LMPVET Aggressive Growth Subaccount (Class II) LMPVET Appreciation Subaccount (Class I) LMPVET Equity Index Subaccount (Class II) LMPVET Fundamental Value Subaccount (Class I) LMPVET Investors Subaccount (Class I) LMPVET Large Cap Growth Subaccount (Class I) LMPVET Small Cap Growth Subaccount (Class I) LMPVET Social Awareness Subaccount LMPVET Capital and Income Subaccount (Class II) LMPVIT Adjustable Rate Income Subaccount MIST Batterymarch Mid-Cap Stock Subaccount (Class A) MIST BlackRock High Yield Subaccount (Class A) MIST BlackRock Large-Cap Core Subaccount (Class E) MIST Dreman Small-Cap Value Subaccount (Class A) MIST Harris Oakmark International Subaccount (Class A) MIST Janus Forty Subaccount (Class A) MIST Lazard Mid-Cap Subaccount (Class B) MIST Legg Mason Partners Managed Assets Subaccount (Class A) MIST Lord Abbett Bond Debenture Subaccount (Class A) MIST Lord Abbett Growth and Income Subaccount (Class B) MIST Lord Abbett Mid-Cap Value Subaccount (Class B) MIST Met/AIM Capital Appreciation Subaccount (Class A) MIST Met/AIM Capital Appreciation Subaccount (Class E) MIST Met/AIM Small Cap Growth Subaccount (Class A) MIST MFS Emerging Markets Equity Subaccount (Class A) APPENDIX A MIST MFS Research International Subaccount (Class B) MIST MFS Value Subaccount (Class A) MIST Neuberger Berman Real Estate Subaccount (Class A) MIST Oppenheimer Capital Appreciation Subaccount (Class B) MIST PIMCO Inflation Protected Bond Subaccount (Class A) MIST Pioneer Fund Subaccount (Class A) MIST Pioneer Strategic Income Subaccount (Class A) MIST Third Avenue Small Cap Value Subaccount (Class B) MSF BlackRock Aggressive Growth Subaccount (Class D) MSF BlackRock Bond Income Subaccount (Class A) MSF BlackRock Money Market Subaccount (Class A) MSF FI Large Cap Subaccount (Class A) MSF FI Value Leaders Subaccount (Class D) MSF MetLife Aggressive Allocation Subaccount (Class B) MSF MetLife Conservative Allocation Subaccount (Class B) MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) MSF MetLife Moderate Allocation Subaccount (Class B) MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) MSF MFS Total Return Subaccount (Class B) MSF MFS Total Return Subaccount (Class F) MSF Oppenheimer Global Equity Subaccount (Class B) MSF T. Rowe Price Large Cap Growth Subaccount (Class B) MSF Western Asset Management U.S. Government Subaccount (Class A) PIMCO VIT Total Return Subaccount (Administrative Class) Pioneer Bond VCT Subaccount (Class II) Pioneer Cullen Value VCT Subaccount (Class II) Pioneer Emerging Markets VCT Subaccount (Class II) Pioneer Equity Income VCT Subaccount (Class II) Pioneer Fund VCT Subaccount (Class II) Pioneer Global High Yield VCT Subaccount (Class II) Pioneer High Yield VCT Subaccount (Class II) Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) Pioneer Independence VCT Subaccount (Class II) Pioneer International Value VCT Subaccount (Class II) Pioneer Mid Cap Value VCT Subaccount (Class II) Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) Pioneer Real Estate Shares VCT Subaccount (Class II) Pioneer Small Cap Value VCT Subaccount (Class II) Pioneer Strategic Income VCT Subaccount (Class II) Van Kampen LIT Comstock Subaccount (Class II) Van Kampen LIT Enterprise Subaccount (Class II) APPENDIX B AIM V.I. Capital Appreciation Subaccount (Series II) Credit Suisse Trust Emerging Markets Subaccount LMPVPI All Cap Subaccount (Class I) LMPVPI All Cap Subaccount (Class II) LMPVPII Growth and Income Subaccount (Class I) LMPVPI Large Cap Growth Subaccount (Class I) LMPVPII Aggressive Growth Subaccount (Class I) LMPVPII Aggressive Growth Subaccount (Class II) LMPVPI Total Return Subaccount (Class II) Lord Abbett Growth and Income Subaccount (Class VC) Lord Abbett Mid-Cap Value Subaccount (Class VC) MIST BlackRock Large-Cap Core Subaccount (Class A) MIST Pioneer Mid-Cap Value Subaccount (Class A) MSF Western Asset Management High Yield Bond Subaccount (Class A) PIMCO VIT Real Return Subaccount (Administrative Class) Pioneer America Income VCT Subaccount (Class II) Pioneer Equity Opportunity VCT Subaccount (Class II) Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) Pioneer Value VCT Subaccount (Class II) Putnam VT International Equity Subaccount (Class IB) Putnam VT Small Cap Value Subaccount (Class IB) METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES OF METLIFE INSURANCE COMPANY OF CONNECTICUT STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2007
AIM V.I. MID CAP ALGER AMERICAN AMERICAN FUNDS CORE EQUITY AIM V.I. UTILITIES LEVERAGED ALLCAP GLOBAL GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERIES II) (SERIES I) (CLASS S) (CLASS 2) ---------------- ------------------ ---------------- -------------- ASSETS: Investments at fair value $2,855,634 $2,730,393 $4,041,927 $24,071,615 ---------- ---------- ---------- ----------- Total Assets 2,855,634 2,730,393 4,041,927 24,071,615 ---------- ---------- ---------- ----------- LIABILITIES: Other payables Insurance charges 427 397 588 3,588 Administrative fees 35 34 50 299 Due to MetLife Insurance Company of Connecticut -- -- -- -- ---------- ---------- ---------- ----------- Total Liabilities 462 431 638 3,887 ---------- ---------- ---------- ----------- NET ASSETS $2,855,172 $2,729,962 $4,041,289 $24,067,728 ========== ========== ========== ===========
The accompanying notes are an integral part of these financial statements. 1
AMERICAN FUNDS AMERICAN FUNDS DREYFUS GROWTH-INCOME GROWTH CREDIT SUISSE TRUST MIDCAP STOCK SUBACCOUNT SUBACCOUNT GLOBAL SMALL CAP SUBACCOUNT (CLASS 2) (CLASS 2) SUBACCOUNT (SERVICE SHARES) -------------- -------------- ------------------- ---------------- ASSETS: Investments at fair value $44,988,255 $55,788,573 $684,699 $4,433,720 ----------- ----------- -------- ---------- Total Assets 44,988,255 55,788,573 684,699 4,433,720 ----------- ----------- -------- ---------- LIABILITIES: Other payables Insurance charges 6,805 8,342 103 661 Administrative fees 558 693 9 55 Due to MetLife Insurance Company of Connecticut -- -- -- -- ----------- ----------- -------- ---------- Total Liabilities 7,363 9,035 112 716 ----------- ----------- -------- ---------- NET ASSETS $44,980,892 $55,779,538 $684,587 $4,433,004 =========== =========== ======== ==========
The accompanying notes are an integral part of these financial statements. 2
DREYFUS SOCIALLY DREYFUS VIF DREYFUS VIF DWS VIT RESPONSIBLE GROWTH APPRECIATION DEVELOPING LEADERS EQUITY 500 INDEX SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE SHARES) (INITIAL SHARES) (INITIAL SHARES) (CLASS B) ------------------ ---------------- ------------------ ---------------- ASSETS: Investments at fair value $279,745 $2,400,273 $7,239,029 $5,511,473 -------- ---------- ---------- ---------- Total Assets 279,745 2,400,273 7,239,029 5,511,473 -------- ---------- ---------- ---------- LIABILITIES: Other payables Insurance charges 43 357 1,096 815 Administrative fees Due to MetLife Insurance 3 30 90 68 Company of Connecticut -- -- -- -- -------- ---------- ---------- ---------- Total Liabilities 46 387 1,186 883 -------- ---------- ---------- ---------- NET ASSETS $279,699 $2,399,886 $7,237,843 $5,510,590 ======== ========== ========== ========== DWS VIT RREEF DWSI REAL ESTATE SECURITIES GLOBAL OPPORTUNITIES SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) ---------------------- -------------------- ASSETS: Investments at fair value $5,103,483 $3,807,476 ---------- ---------- Total Assets 5,103,483 3,807,476 ---------- ---------- LIABILITIES: Other payables Insurance charges 764 571 Administrative fees Due to MetLife Insurance 62 48 Company of Connecticut -- -- ---------- ---------- Total Liabilities 826 619 ---------- ---------- NET ASSETS $5,102,657 $3,806,857 ========== ==========
The accompanying notes are an integral part of these financial statements. 3
DWSII DWSI DWSI DWSI BALANCED BOND CAPITAL GROWTH GROWTH & INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) (CLASS B) ---------- ---------- -------------- --------------- ASSETS: Investments at fair value $3,697,679 $526,477 $7,944,200 $6,122,033 ---------- -------- ---------- ---------- Total Assets 3,697,679 526,477 7,944,200 6,122,033 ---------- -------- ---------- ---------- LIABILITIES: Other payables Insurance charges 570 77 1,207 987 Administrative fees 46 7 98 76 Due to MetLife Insurance Company of Connecticut -- -- -- -- ---------- -------- ---------- ---------- Total Liabilities 616 84 1,305 1,063 ---------- -------- ---------- ---------- NET ASSETS $3,697,063 $526,393 $7,942,895 $6,120,970 ========== ======== ========== ==========
The accompanying notes are an integral part of these financial statements. 4
DWSI DWSII DWSII DWSII DWSII DWSII HEALTH CARE INTERNATIONAL STRATEGIC INCOME BLUE CHIP CONSERVATIVE ALLOCATION CORE FIXED INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) (CLASS B) (CLASS B) (CLASS B) ----------- ------------- ---------------- ---------- ----------------------- ------------------ ASSETS: Investments at fair value $2,893,172 $5,793,025 $4,714,018 $5,881,372 $11,019,224 $6,718,704 ---------- ---------- ---------- ---------- ----------- ---------- Total Assets 2,893,172 5,793,025 4,714,018 5,881,372 11,019,224 6,718,704 ---------- ---------- ---------- ---------- ----------- ---------- LIABILITIES: Other payables Insurance charges 445 912 726 885 1,652 993 Administrative fees 36 72 58 73 136 83 Due to MetLife Insurance Company of Connecticut -- -- -- -- -- -- ---------- ---------- ---------- ---------- ----------- ---------- Total Liabilities 481 984 784 958 1,788 1,076 ---------- ---------- ---------- ---------- ----------- ---------- NET ASSETS $2,892,691 $5,792,041 $4,713,234 $5,880,414 $11,017,436 $6,717,628 ========== ========== ========== ========== =========== ==========
The accompanying notes are an integral part of these financial statements. 5
DWSII DWSII DREMAN DWSII DREMAN DWSII DAVIS VENTURE VALUE HIGH RETURN EQUITY SMALL MID CAP VALUE GLOBAL THEMATIC SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) (CLASS B) ------------------- ------------------ ------------------- --------------- ASSETS: Investments at fair value $10,210,680 $17,533,632 $8,142,916 $4,975,405 ----------- ----------- ---------- ---------- Total Assets 10,210,680 17,533,632 8,142,916 4,975,405 ----------- ----------- ---------- ---------- LIABILITIES: Other payables Insurance charges 1,554 2,556 1,228 755 Administrative fees 126 216 101 62 Due to MetLife Insurance Company of Connecticut -- -- -- -- ----------- ----------- ---------- ---------- Total Liabilities 1,680 2,772 1,329 817 ----------- ----------- ---------- ---------- NET ASSETS $10,209,000 $17,530,860 $8,141,587 $4,974,588 =========== =========== ========== ==========
The accompanying notes are an integral part of these financial statements. 6
DWSII GOVERNMENT & AGENCY DWSII DWSII SECURITIES GROWTH ALLOCATION HIGH INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ------------------- ----------------- ----------- ASSETS: Investments at fair value $1,496,424 $17,863,295 $4,937,779 ---------- ----------- ---------- Total Assets 1,496,424 17,863,295 4,937,779 ---------- ----------- ---------- LIABILITIES: Other payables Insurance charges 228 2,708 742 Administrative fees 18 221 61 Due to MetLife Insurance Company of Connecticut -- -- -- ---------- ----------- ---------- Total Liabilities 246 2,929 803 ---------- ----------- ---------- NET ASSETS $1,496,178 $17,860,366 $4,936,976 ========== =========== ========== DWSII INTERNATIONAL DWSII JANUS DWSII SELECT EQUITY GROWTH & INCOME LARGE CAP VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ------------------- --------------- --------------- ASSETS: Investments at fair value $6,359,240 $2,243,087 $3,178,408 ---------- ---------- ---------- Total Assets 6,359,240 2,243,087 3,178,408 ---------- ---------- ---------- LIABILITIES: Other payables Insurance charges 987 347 491 Administrative fees 79 28 40 Due to MetLife Insurance Company of Connecticut -- -- -- ---------- ---------- ---------- Total Liabilities 1,066 375 531 ---------- ---------- ---------- NET ASSETS $6,358,174 $2,242,712 $3,177,877 ========== ========== ==========
The accompanying notes are an integral part of these financial statements. 7
DWSII DWSII DWSII DWSII MID CAP GROWTH MODERATE ALLOCATION MONEY MARKET SMALL CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) (CLASS B) -------------- ------------------- ------------ ---------------- ASSETS: Investments at fair value $964,295 $17,240,810 $4,766,123 $3,151,441 -------- ----------- ---------- ---------- Total Assets 964,295 17,240,810 4,766,123 3,151,441 -------- ----------- ---------- ---------- LIABILITIES: Other payables Insurance charges 134 2,615 682 501 Administrative fees 12 213 59 39 Due to MetLife Insurance Company of Connecticut -- -- -- -- -------- ----------- ---------- ---------- Total Liabilities 146 2,828 741 540 -------- ----------- ---------- ---------- NET ASSETS $964,149 $17,237,982 $4,765,382 $3,150,901 ======== =========== ========== ==========
The accompanying notes are an integral part of these financial statements. 8
DWSII FIDELITY VIP FTVIPT FRANKLIN DWSII TURNER MID CAP FIDELITY VIP DYNAMIC CAPITAL FIDELITY VIP RISING DIVIDENDS TECHNOLOGY GROWTH CONTRAFUND APPRECIATION MID CAP SECURITIES SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (SERVICE CLASS 2) (SERVICE CLASS 2) (SERVICE CLASS 2) (CLASS 2) ---------- -------------- ----------------- ----------------- ----------------- ---------------- ASSETS: Investments at fair value $1,543,034 $2,585,960 $25,971,107 $1,484,573 $30,671,393 $13,499,890 Total Assets ---------- ---------- ----------- ---------- ----------- ----------- 1,543,034 2,585,960 25,971,107 1,484,573 30,671,393 13,499,890 LIABILITIES: ---------- ---------- ----------- ---------- ----------- ----------- Other payables Insurance charges 228 406 3,868 212 4,463 1,965 Administrative fees 19 32 322 18 381 168 Due to MetLife Insurance Company of Connecticut -- -- -- -- -- -- ---------- ---------- ----------- ---------- ----------- ----------- Total Liabilities 247 438 4,190 230 4,844 2,133 ---------- ---------- ----------- ---------- ----------- ----------- NET ASSETS $1,542,787 $2,585,522 $25,966,917 $1,484,343 $30,666,549 $13,497,757 ========== ========== =========== ========== =========== ===========
The accompanying notes are an integral part of these financial statements. 9
FTVIPT FRANKLIN FTVIPT TEMPLETON JANUS ASPEN SMALL MID-CAP DEVELOPING MARKETS FTVIPT TEMPLETON GLOBAL LIFE GROWTH SECURITIES SECURITIES FOREIGN SECURITIES SCIENCES SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS 2) (CLASS 2) (CLASS 2) (SERVICE SHARES) ----------------- ------------------ ------------------ ---------------- ASSETS: Investments at fair value $7,329,984 $17,565,342 $21,789,963 $305,965 ---------- ----------- ----------- -------- Total Assets 7,329,984 17,565,342 21,789,963 305,965 ---------- ----------- ----------- -------- LIABILITIES: Other payables Insurance charges 1,032 2,551 3,201 43 Administrative fees 91 216 269 4 Due to MetLife Insurance Company of Connecticut -- -- -- -- ---------- ----------- ----------- -------- Total Liabilities 1,123 2,767 3,470 47 ---------- ----------- ----------- -------- NET ASSETS $7,328,861 $17,562,575 $21,786,493 $305,918 ========== =========== =========== ========
The accompanying notes are an integral part of these financial statements. 10
JANUS ASPEN JANUS ASPEN LMPVET LMPVET LMPVET LMPVET GLOBAL TECHNOLOGY WORLDWIDE GROWTH AGGRESSIVE GROWTH AGGRESSIVE GROWTH APPRECIATION EQUITY INDEX SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE SHARES) (SERVICE SHARES) (CLASS I) (CLASS II) (CLASS I) (CLASS II) ----------------- ---------------- ----------------- ----------------- ------------ ------------ ASSETS: Investments at fair value $2,856,610 $289,994 $7,205,488 $6,942,448 $1,645,885 $13,109,760 ---------- -------- ---------- ---------- ---------- ----------- Total Assets 2,856,610 289,994 7,205,488 6,942,448 1,645,885 13,109,760 ---------- -------- ---------- ---------- ---------- ----------- LIABILITIES: Other payables Insurance charges 427 43 1,082 1,030 242 1,929 Administrative fees 35 4 90 86 20 163 Due to MetLife Insurance Company of Connecticut -- -- -- -- -- -- ---------- -------- ---------- ---------- ---------- ----------- Total Liabilities 462 47 1,172 1,116 262 2,092 ---------- -------- ---------- ---------- ---------- ----------- NET ASSETS $2,856,148 $289,947 $7,204,316 $6,941,332 $1,645,623 $13,107,668 ========== ======== ========== ========== ========== ===========
The accompanying notes are an integral part of these financial statements. 11
LMPVET LMPVET LMPVET LMPVET FUNDAMENTAL VALUE INVESTORS LARGE CAP GROWTH SMALL CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS I) (CLASS I) (CLASS I) ----------------- ---------- ---------------- ---------------- ASSETS: Investments at fair value $4,590,855 $3,080,115 $2,440,026 $4,921,726 ---------- ---------- ---------- ---------- Total Assets 4,590,855 3,080,115 2,440,026 4,921,726 ---------- ---------- ---------- ---------- LIABILITIES: Other payables Insurance charges 669 458 368 736 Administrative fees 56 38 30 61 Due to MetLife Insurance Company of Connecticut -- -- -- -- ---------- ---------- ---------- ---------- Total Liabilities 725 496 398 797 ---------- ---------- ---------- ---------- NET ASSETS $4,590,130 $3,079,619 $2,439,628 $4,920,929 ========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements. 12
MIST LMPVET LMPVIT BATTERYMARCH MIST BLACKROCK MIST BLACKROCK LMPVET CAPITAL AND INCOME ADJUSTABLE MID-CAP STOCK HIGH YIELD LARGE-CAP CORE SOCIAL AWARENESS SUBACCOUNT RATE INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) SUBACCOUNT (CLASS A) (CLASS A) (CLASS E) ---------------- ------------------ ----------- ------------- -------------- -------------- ASSETS: Investments at fair value $1,016,608 $4,785,578 $2,424,118 $5,296,486 $11,726,776 $4,252,489 ---------- ---------- ---------- ---------- ----------- ---------- Total Assets 1,016,608 4,785,578 2,424,118 5,296,486 11,726,776 4,252,489 ---------- ---------- ---------- ---------- ----------- ---------- LIABILITIES: Other payables Insurance charges 143 679 361 764 1,579 658 Administrative fees 12 59 30 66 144 53 Due to MetLife Insurance Company of Connecticut -- 3,867 -- -- -- -- ---------- ---------- ---------- ---------- ----------- ---------- Total Liabilities 155 4,605 391 830 1,723 711 ---------- ---------- ---------- ---------- ----------- ---------- NET ASSETS $1,016,453 $4,780,973 $2,423,727 $5,295,656 $11,725,053 $4,251,778 ========== ========== ========== ========== =========== ==========
The accompanying notes are an integral part of these financial statements. 13
MIST MIST DREMAN HARRIS OAKMARK MIST MIST SMALL-CAP VALUE INTERNATIONAL JANUS FORTY LAZARD MID-CAP SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) (CLASS B) --------------- -------------- ----------- -------------- ASSETS: Investments at fair value $499,083 $7,221,372 $10,612,239 $430,006 -------- ---------- ----------- -------- Total Assets 499,083 7,221,372 10,612,239 430,006 -------- ---------- ----------- -------- LIABILITIES: Other payables Insurance charges 72 1,090 1,552 62 Administrative fees 6 89 132 5 Due to MetLife Insurance Company of Connecticut -- -- -- -- -------- ---------- ----------- -------- Total Liabilities 78 1,179 1,684 67 -------- ---------- ----------- -------- NET ASSETS $499,005 $7,220,193 $10,610,555 $429,939 ======== ========== =========== ========
The accompanying notes are an integral part of these financial statements. 14
MIST LEGG MASON PARTNERS MIST LORD ABBETT MIST LORD ABBETT MANAGED ASSETS BOND DEBENTURE GROWTH AND INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS B) ------------------- ---------------- ----------------- ASSETS: Investments at fair value $4,379,421 $3,988,384 $28,512,995 ---------- ---------- ----------- Total Assets 4,379,421 3,988,384 28,512,995 ---------- ---------- ----------- LIABILITIES: Other payables Insurance charges 654 595 3,742 Administrative fees 54 49 354 Due to MetLife Insurance Company of Connecticut -- -- -- ---------- ---------- ----------- Total Liabilities 708 644 4,096 ---------- ---------- ----------- NET ASSETS $4,378,713 $3,987,740 $28,508,899 ========== ========== =========== MIST LORD ABBETT MIST MET/AIM MIST MET/AIM MID-CAP VALUE CAPITAL APPRECIATION CAPITAL APPRECIATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS A) (CLASS E) ---------------- -------------------- -------------------- ASSETS: Investments at fair value $12,279,411 $2,899,011 $6,777,774 ----------- ---------- ---------- Total Assets 12,279,411 2,899,011 6,777,774 ----------- ---------- ---------- LIABILITIES: Other payables Insurance charges 1,832 428 973 Administrative fees 152 36 84 Due to MetLife Insurance Company of Connecticut -- -- -- ----------- ---------- ---------- Total Liabilities 1,984 464 1,057 ----------- ---------- ---------- NET ASSETS $12,277,427 $2,898,547 $6,776,717 =========== ========== ==========
The accompanying notes are an integral part of these financial statements. 15
MIST MIST MIST MET/AIM MFS EMERGING MFS RESEARCH MIST SMALL CAP GROWTH MARKETS EQUITY INTERNATIONAL MFS VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS B) (CLASS A) ---------------- -------------- ------------- ---------- ASSETS: Investments at fair value $439,458 $6,019,504 $2,036,191 $9,217,868 -------- ---------- ---------- ---------- Total Assets 439,458 6,019,504 2,036,191 9,217,868 -------- ---------- ---------- ---------- LIABILITIES: Other payables Insurance charges 65 875 292 1,374 Administrative fees 5 75 25 114 Due to MetLife Insurance Company of Connecticut -- -- -- -- -------- ---------- ---------- ---------- Total Liabilities 70 950 317 1,488 -------- ---------- ---------- ---------- NET ASSETS $439,388 $6,018,554 $2,035,874 $9,216,380 ======== ========== ========== ==========
The accompanying notes are an integral part of these financial statements. 16
MIST MIST MIST NEUBERGER BERMAN OPPENHEIMER PIMCO INFLATION MIST REAL ESTATE CAPITAL APPRECIATION PROTECTED BOND PIONEER FUND SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS A) (CLASS A) ---------------- -------------------- --------------- ------------ ASSETS: Investments at fair value $12,979,313 $6,810,890 $11,978,775 $1,096,201 ----------- ---------- ----------- ---------- Total Assets 12,979,313 6,810,890 11,978,775 1,096,201 ----------- ---------- ----------- ---------- LIABILITIES: Other payables Insurance charges 1,851 979 1,745 156 Administrative fees 158 84 147 13 Due to MetLife Insurance Company of Connecticut -- -- -- -- ----------- ---------- ----------- ---------- Total Liabilities 2,009 1,063 1,892 169 ----------- ---------- ----------- ---------- NET ASSETS $12,977,304 $6,809,827 $11,976,883 $1,096,032 =========== ========== =========== ========== MIST MIST PIONEER STRATEGIC THIRD AVENUE INCOME SMALL CAP VALUE SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) ----------------- --------------- ASSETS: Investments at fair value $9,598,429 $23,373,093 ---------- ----------- Total Assets 9,598,429 23,373,093 ---------- ----------- LIABILITIES: Other payables Insurance charges 1,400 3,402 Administrative fees 118 290 Due to MetLife Insurance Company of Connecticut -- -- ---------- ----------- Total Liabilities 1,518 3,692 ---------- ----------- NET ASSETS $9,596,911 $23,369,401 ========== ===========
The accompanying notes are an integral part of these financial statements. 17
MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK MSF AGGRESSIVE GROWTH BOND INCOME MONEY MARKET FI LARGE CAP SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS D) (CLASS A) (CLASS A) (CLASS A) ----------------- ------------- ------------- ------------ ASSETS: Investments at fair value $5,818,822 $8,452,200 $34,542,169 $4,555,852 ---------- ---------- ----------- ---------- Total Assets 5,818,822 8,452,200 34,542,169 4,555,852 ---------- ---------- ----------- ---------- LIABILITIES: Other payables Insurance charges 834 1,225 5,132 688 Administrative fees 72 104 426 57 Due to MetLife Insurance Company of Connecticut -- -- -- -- ---------- ---------- ----------- ---------- Total Liabilities 906 1,329 5,558 745 ---------- ---------- ----------- ---------- NET ASSETS $5,817,916 $8,450,871 $34,536,611 $4,555,107 ========== ========== =========== ==========
The accompanying notes are an integral part of these financial statements. 18
MSF METLIFE MSF METLIFE MSF MSF METLIFE CONSERVATIVE CONSERVATIVE TO FI VALUE LEADERS AGGRESSIVE ALLOCATION ALLOCATION MODERATE ALLOCATION SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS D) (CLASS B) (CLASS B) (CLASS B) ---------------- --------------------- ------------ ------------------- ASSETS: Investments at fair value $11,078,851 $2,058,480 $2,799,822 $3,940,255 ----------- ---------- ---------- ---------- Total Assets 11,078,851 2,058,480 2,799,822 3,940,255 ----------- ---------- ---------- ---------- LIABILITIES: Other payables Insurance charges 1,658 337 447 582 Administrative fees 137 25 34 48 Due to MetLife Insurance Company of Connecticut -- -- -- -- ----------- ---------- ---------- ---------- Total Liabilities 1,795 362 481 630 ----------- ---------- ---------- ---------- NET ASSETS $11,077,056 $2,058,118 $2,799,341 $3,939,625 =========== ========== ========== ========== MSF METLIFE MSF METLIFE MODERATE TO MODERATE ALLOCATION AGGRESSIVE ALLOCATION SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) ------------------- --------------------- ASSETS: Investments at fair value $12,646,298 $6,675,290 ----------- ---------- Total Assets 12,646,298 6,675,290 ----------- ---------- LIABILITIES: Other payables Insurance charges 1,952 1,004 Administrative fees 157 82 Due to MetLife Insurance Company of Connecticut -- -- ----------- ---------- Total Liabilities 2,109 1,086 ----------- ---------- NET ASSETS $12,644,189 $6,674,204 =========== ==========
The accompanying notes are an integral part of these financial statements. 19
MSF MSF MSF MFS MSF MFS OPPENHEIMER T. ROWE PRICE TOTAL RETURN TOTAL RETURN GLOBAL EQUITY LARGE CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS F) (CLASS B) (CLASS B) ------------ ------------ ------------- ----------------- ASSETS: Investments at fair value $5,485,040 $33,331,699 $33,278,095 $2,730,610 ---------- ----------- ----------- ---------- Total Assets 5,485,040 33,331,699 33,278,095 2,730,610 ---------- ----------- ----------- ---------- LIABILITIES: Other payables Insurance charges 850 4,894 4,888 394 Administrative fees 68 412 412 34 Due to MetLife Insurance Company of Connecticut -- -- -- -- ---------- ----------- ----------- ---------- Total Liabilities 918 5,306 5,300 428 ---------- ----------- ----------- ---------- NET ASSETS $5,484,122 $33,326,393 $33,272,795 $2,730,182 ========== =========== =========== ==========
The accompanying notes are an integral part of these financial statements. 20
MSF WESTERN ASSET MANAGEMENT PIMCO VIT PIONEER U.S. GOVERNMENT TOTAL RETURN BOND VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (ADMINISTRATIVE CLASS) (CLASS II) ----------------- ---------------------- ------------ ASSETS: Investments at fair value $5,929,526 $27,025,149 $9,708,191 ---------- ----------- ---------- Total Assets 5,929,526 27,025,149 9,708,191 ---------- ----------- ---------- LIABILITIES: Other payables Insurance charges 767 3,960 1,396 Administrative fees 73 332 119 Due to MetLife Insurance Company of Connecticut -- -- -- ---------- ----------- ---------- Total Liabilities 840 4,292 1,515 ---------- ----------- ---------- NET ASSETS $5,928,686 $27,020,857 $9,706,676 ========== =========== ========== PIONEER PIONEER EMERGING PIONEER CULLEN VALUE VCT MARKETS VCT EQUITY INCOME VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) ---------------- ---------------- ----------------- ASSETS: Investments at fair value $8,261,796 $16,569,716 $12,466,829 ---------- ----------- ----------- Total Assets 8,261,796 16,569,716 12,466,829 ---------- ----------- ----------- LIABILITIES: Other payables Insurance charges 1,160 2,383 1,701 Administrative fees 103 205 155 Due to MetLife Insurance Company of Connecticut -- -- -- ---------- ----------- ----------- Total Liabilities 1,263 2,588 1,856 ---------- ----------- ----------- NET ASSETS $8,260,533 $16,567,128 $12,464,973 ========== =========== ===========
The accompanying notes are an integral part of these financial statements. 21
PIONEER PIONEER IBBOTSON PIONEER GLOBAL PIONEER AGGRESSIVE FUND VCT HIGH YIELD VCT HIGH YIELD VCT ALLOCATION VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) CLASS II) (CLASS II) (CLASS II) ----------- -------------- -------------- ---------------- ASSETS: Investments at fair value $16,553,420 $5,154,571 $13,521,455 $5,526,540 ----------- ---------- ----------- ---------- Total Assets 16,553,420 5,154,571 13,521,455 5,526,540 ----------- ---------- ----------- ---------- LIABILITIES: Other payables Insurance charges 2,454 793 1,908 787 Administrative fees 206 63 167 68 Due to MetLife Insurance Company of Connecticut -- -- -- -- ----------- ---------- ----------- ---------- Total Liabilities 2,660 856 2,075 855 ----------- ---------- ----------- ---------- NET ASSETS $16,550,760 $5,153,715 $13,519,380 $5,525,685 =========== ========== =========== ==========
The accompanying notes are an integral part of these financial statements. 22
PIONEER PIONEER IBBOTSON PIONEER IBBOTSON PIONEER OAK RIDGE GROWTH MODERATE PIONEER INTERNATIONAL PIONEER MID CAP LARGE CAP ALLOCATION VCT ALLOCATION VCT INDEPENDENCE VCT VALUE VCT VALUE VCT GROWTH VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) (CLASS II) (CLASS II) (CLASS II) ---------------- ---------------- ---------------- ------------- --------------- ---------- ASSETS: Investments at fair value $110,661,932 $56,554,705 $2,297,936 $5,797,434 $11,423,418 $6,041,552 ------------ ----------- ---------- ---------- ----------- ---------- Total Assets 110,661,932 56,554,705 2,297,936 5,797,434 11,423,418 6,041,552 ------------ ----------- ---------- ---------- ----------- ---------- LIABILITIES: Other payables Insurance charges 18,852 9,293 340 829 1,595 885 Administrative fees 1,367 699 28 72 141 75 Due to MetLife Insurance Company of Connecticut -- -- -- -- -- -- ------------ ----------- ---------- ---------- ----------- ---------- Total Liabilities 20,219 9,992 368 901 1,736 960 ------------ ----------- ---------- ---------- ----------- ---------- NET ASSETS $110,641,713 $56,544,713 $2,297,568 $5,796,533 $11,421,682 $6,040,592 ============ =========== ========== ========== =========== ==========
The accompanying notes are an integral part of these financial statements. 23
PIONEER REAL ESTATE PIONEER SMALL PIONEER STRATEGIC VAN KAMPEN LIT SHARES VCT CAP VALUE VCT INCOME VCT COMSTOCK SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) (CLASS II) ------------------- ------------- ----------------- -------------- ASSETS: Investments at fair value $7,785,868 $6,895,810 $22,425,511 $12,613,255 ---------- ---------- ----------- ----------- Total Assets 7,785,868 6,895,810 22,425,511 12,613,255 ---------- ---------- ----------- ----------- LIABILITIES: Other payables Insurance charges 1,088 979 3,202 1,865 Administrative fees 95 85 276 156 Due to MetLife Insurance Company of Connecticut -- -- -- -- ---------- ---------- ----------- ----------- Total Liabilities 1,183 1,064 3,478 2,021 ---------- ---------- ----------- ----------- NET ASSETS $7,784,685 $6,894,746 $22,422,033 $12,611,234 ========== ========== =========== ===========
The accompanying notes are an integral part of these financial statements. 24
VAN KAMPEN LIT ENTERPRISE SUBACCOUNT (CLASS II) --------------------- ASSETS: Investments at fair value $189,891 -------- Total Assets 189,891 -------- LIABILITIES: Other payables Insurance charges 27 Administrative fees 2 Due to MetLife Insurance Company of Connecticut -- -------- Total Liabilities 29 -------- NET ASSETS $189,862 ========
The accompanying notes are an integral part of these financial statements. 25 METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES OF METLIFE INSURANCE COMPANY OF CONNECTICUT STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2007
AIM V.I. MID CAP AIM V.I. AIM V.I. CAPITAL ALGER AMERICAN CORE EQUITY UTILITIES APPRECIATION LEVERAGED ALLCAP SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERIES II) (SERIES I) (SERIES II) (a) (CLASS S) ---------------- ---------- ---------------- ---------------- INVESTMENT INCOME: Dividends $ 1,345 $ 49,273 $ -- $ -- -------- -------- ---------- -------- EXPENSES: Mortality and expense risk charges 51,418 44,514 33,013 52,511 Administrative charges 4,233 3,801 2,823 4,498 -------- -------- ---------- -------- Total expenses 55,651 48,315 35,836 57,009 -------- -------- ---------- -------- Net investment income (loss) (54,306) 958 (35,836) (57,009) -------- -------- ---------- -------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 40,418 127,712 -- -- Realized gains (losses) on sale of investments 50,016 181,290 1,270,367 139,677 -------- -------- ---------- -------- Net realized gains (losses) 90,434 309,002 1,270,367 139,677 -------- -------- ---------- -------- Change in unrealized gains (losses) on investments 156,099 104,574 (860,370) 669,548 -------- -------- ---------- -------- Net increase (decrease) in net assets resulting from operations $192,227 $414,534 $ 374,161 $752,216 ======== ======== ========== ========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 26
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GLOBAL GROWTH GROWTH-INCOME GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS 2) (CLASS 2) (CLASS 2) -------------- -------------- -------------- INVESTMENT INCOME: Dividends $ 622,675 $ 705,051 $ 433,751 ---------- ---------- ---------- EXPENSES: Mortality and expense risk charges 413,178 878,208 1,035,266 Administrative charges 34,228 71,925 85,828 ---------- ---------- ---------- Total expenses 447,406 950,133 1,121,094 ---------- ---------- ---------- Net investment income (loss) 175,269 (245,082) (687,343) ---------- ---------- ---------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 934,214 1,569,583 3,895,771 Realized gains (losses) on sale of investments 680,919 1,016,429 1,761,503 ---------- ---------- ---------- Net realized gains (losses) 1,615,133 2,586,012 5,657,274 ---------- ---------- ---------- Change in unrealized gains (losses) on investments 854,120 (842,340) 552,156 ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations $2,644,522 $1,498,590 $5,522,087 ========== ========== ========== CREDIT SUISSE DREYFUS MIDCAP TRUST EMERGING CREDIT SUISSE TRUST STOCK MARKETS GLOBAL SMALL CAP SUBACCOUNT SUBACCOUNT (a) SUBACCOUNT (SERVICE SHARES) -------------- ------------------- ---------------- INVESTMENT INCOME: Dividends $ -- $ -- $ 15,504 ----------- -------- --------- EXPENSES: Mortality and expense risk charges 27,846 14,625 91,534 Administrative charges 2,331 1,197 7,658 ----------- -------- --------- Total expenses 30,177 15,822 99,192 ----------- -------- --------- Net investment income (loss) (30,177) (15,822) (83,688) ----------- -------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- 606,080 Realized gains (losses) on sale of investments 1,976,912 66,303 (8,117) ----------- -------- --------- Net realized gains (losses) 1,976,912 66,303 597,963 ----------- -------- --------- Change in unrealized gains (losses) on investments (1,764,857) (96,614) (513,759) ----------- -------- --------- Net increase (decrease) in net assets resulting from operations $ 181,878 $(46,133) $ 516 =========== ======== =========
The accompanying notes are an integral part of these financial statements. 27
DREYFUS SOCIALLY DREYFUS VIF DREYFUS VIF DWS VIT RESPONSIBLE GROWTH APPRECIATION DEVELOPING LEADERS EQUITY 500 INDEX SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE SHARES) (INITIAL SHARES) (INITIAL SHARES) (CLASS B) ------------------ ---------------- ------------------ ---------------- INVESTMENT INCOME: Dividends $ 779 $ 38,516 $ 61,518 $ 59,456 ------- -------- ----------- -------- EXPENSES: Mortality and expense risk charges 5,256 44,024 150,099 94,485 Administrative charges 427 3,699 12,336 7,850 ------- -------- ----------- -------- Total expenses 5,683 47,723 162,435 102,335 ------- -------- ----------- -------- Net investment income (loss) (4,904) (9,207) (100,917) (42,879) ------- -------- ----------- -------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- 1,075,555 -- Realized gains (losses) on sale of investments 9,041 66,377 (73,226) 162,027 ------- -------- ----------- -------- Net realized gains (losses) 9,041 66,377 1,002,329 162,027 ------- -------- ----------- -------- Change in unrealized gains (losses) on investments 11,045 66,542 (1,967,078) 44,325 ------- -------- ----------- -------- Net increase (decrease) in net assets resulting from operations $15,182 $123,712 $(1,065,666) $163,473 ======= ======== =========== ========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 28
DWS VIT RREEF DWSI DWSII REAL ESTATE SECURITIES GLOBAL OPPORTUNITIES BALANCED SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ---------------------- -------------------- ---------- INVESTMENT INCOME: Dividends $ 52,812 $ 35,463 $115,799 ----------- --------- -------- EXPENSES: Mortality and expense risk charges 111,958 65,714 72,813 Administrative charges 9,186 5,337 5,843 ----------- --------- -------- Total expenses 121,144 71,051 78,656 ----------- --------- -------- Net investment income (loss) (68,332) (35,588) 37,143 ----------- --------- -------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 910,579 244,883 -- Realized gains (losses) on sale of investments 201,550 155,433 65,476 ----------- --------- -------- Net realized gains (losses) 1,112,129 400,316 65,476 ----------- --------- -------- Change in unrealized gains (losses) on investments (2,174,650) (143,574) (6,068) ----------- --------- -------- Net increase (decrease) in net assets resulting from operations $(1,130,853) $ 221,154 $ 96,551 =========== ========= ======== DWSI DWSI DWSI BOND CAPITAL GROWTH GROWTH & INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ---------- -------------- --------------- INVESTMENT INCOME: Dividends $ 35,835 $ 20,182 $ 58,130 -------- --------- --------- EXPENSES: Mortality and expense risk charges 9,821 145,214 129,624 Administrative charges 854 11,834 9,980 -------- --------- --------- Total expenses 10,675 157,048 139,604 -------- --------- --------- Net investment income (loss) 25,160 (136,866) (81,474) -------- --------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- 91,145 Realized gains (losses) on sale of investments (18,577) 227,802 130,451 -------- --------- --------- Net realized gains (losses) (18,577) 227,802 221,596 -------- --------- --------- Change in unrealized gains (losses) on investments (7,337) 646,315 (193,561) -------- --------- --------- Net increase (decrease) in net assets resulting from operations $ (754) $ 737,251 $ (53,439) ======== ========= =========
The accompanying notes are an integral part of these financial statements. 29
DWSI DWSII DWSII DWSII HEALTH CARE INTERNATIONAL STRATEGIC INCOME BLUE CHIP SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) (CLASS B) ----------- ------------- ---------------- ---------- INVESTMENT INCOME: Dividends $ -- $112,675 $291,880 $ 41,090 -------- -------- -------- --------- EXPENSES: Mortality and expense risk charges 52,635 107,724 92,930 109,305 Administrative charges 4,236 8,472 7,537 9,063 -------- -------- -------- --------- Total expenses 56,871 116,196 100,467 118,368 -------- -------- -------- --------- Net investment income (loss) (56,871) (3,521) 191,413 (77,278) -------- -------- -------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 170,485 -- -- 678,183 Realized gains (losses) on sale of investments 62,968 176,045 7,506 109,032 -------- -------- -------- --------- Net realized gains (losses) 233,453 176,045 7,506 787,215 -------- -------- -------- --------- Change in unrealized gains (losses) on investments 103,781 448,543 (49,877) (592,261) -------- -------- -------- --------- Net increase (decrease) in net assets resulting from operations $280,363 $621,067 $149,042 $ 117,676 ======== ======== ======== =========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 30
DWSII CONSERVATIVE DWSII DWSII ALLOCATION CORE FIXED INCOME DAVIS VENTURE VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ------------------ ----------------- ------------------- INVESTMENT INCOME: Dividends $ 227,018 $249,050 $ 32,127 --------- -------- --------- EXPENSES: Mortality and expense risk charges 207,619 117,038 186,563 Administrative charges 17,132 9,741 15,142 --------- -------- --------- Total expenses 224,751 126,779 201,705 --------- -------- --------- Net investment income (loss) 2,267 122,271 (169,578) --------- -------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 306,559 -- 124,347 Realized gains (losses) on sale of investments 93,163 (1,675) 258,201 --------- -------- --------- Net realized gains (losses) 399,722 (1,675) 382,548 --------- -------- --------- Change in unrealized gains (losses) on investments (108,886) (7,065) (15,321) --------- -------- --------- Net increase (decrease) in net assets resulting from operations $ 293,103 $113,531 $ 197,649 ========= ======== ========= DWSII DREMAN DWSII DREMAN SMALL MID CAP DWSII HIGH RETURN EQUITY VALUE GLOBAL THEMATIC SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ------------------ ------------- --------------- INVESTMENT INCOME: Dividends $ 199,182 $ 53,504 $ 11,450 ----------- ----------- --------- EXPENSES: Mortality and expense risk charges 334,160 164,026 88,046 Administrative charges 28,301 13,584 7,251 ----------- ----------- --------- Total expenses 362,461 177,610 95,297 ----------- ----------- --------- Net investment income (loss) (163,279) (124,106) (83,847) ----------- ----------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 157,885 1,283,824 654,590 Realized gains (losses) on sale of investments 363,967 222,419 171,518 ----------- ----------- --------- Net realized gains (losses) 521,852 1,506,243 826,108 ----------- ----------- --------- Change in unrealized gains (losses) on investments (1,081,781) (1,276,884) (595,507) ----------- ----------- --------- Net increase (decrease) in net assets resulting from operations $ (723,208) $ 105,253 $ 146,754 =========== =========== =========
The accompanying notes are an integral part of these financial statements. 31
DWSII GOVERNMENT & AGENCY DWSII DWSII DWSII INTERNATIONAL SECURITIES GROWTH ALLOCATION HIGH INCOME SELECT EQUITY SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) (CLASS B) ------------------- ----------------- ----------- ------------------- INVESTMENT INCOME: Dividends $ 75,954 $ 364,592 $ 408,130 $120,555 -------- ---------- --------- -------- EXPENSES: Mortality and expense risk charges 32,482 341,589 98,619 107,422 Administrative charges 2,745 27,862 8,206 8,408 -------- ---------- --------- -------- Total expenses 35,227 369,451 106,825 115,830 -------- ---------- --------- -------- Net investment income (loss) 40,727 (4,859) 301,305 4,725 -------- ---------- --------- -------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- 930,469 -- 484,245 Realized gains (losses) on sale of investments (21,291) 281,044 (43,617) 229,167 -------- ---------- --------- -------- Net realized gains (losses) (21,291) 1,211,513 (43,617) 713,412 -------- ---------- --------- -------- Change in unrealized gains (losses) on investments 36,490 (561,650) (347,996) (41,110) -------- ---------- --------- -------- Net increase (decrease) in net assets resulting from operations $ 55,926 $ 645,004 $ (90,308) $677,027 ======== ========== ========= ========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 32
DWSII JANUS DWSII DWSII GROWTH & INCOME LARGE CAP VALUE MID CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) --------------- --------------- -------------- INVESTMENT INCOME: Dividends $ 4,797 $ 37,985 $ -- --------- --------- --------- EXPENSES: Mortality and expense risk charges 43,298 54,768 15,358 Administrative charges 3,467 4,386 1,335 --------- --------- --------- Total expenses 46,765 59,154 16,693 --------- --------- --------- Net investment income (loss) (41,968) (21,169) (16,693) --------- --------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- 100,919 -- Realized gains (losses) on sale of investments 99,507 78,336 72,947 --------- --------- --------- Net realized gains (losses) 99,507 179,255 72,947 --------- --------- --------- Change in unrealized gains (losses) on investments 35,667 137,069 (10,600) --------- --------- --------- Net increase (decrease) in net assets resulting from operations $ 93,206 $ 295,155 $ 45,654 ========= ========= ========= DWSII DWSII DWSII MODERATE ALLOCATION MONEY MARKET SMALL CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ------------------- ------------ ---------------- INVESTMENT INCOME: Dividends $ 390,433 $ 235,473 $ -- --------- --------- --------- EXPENSES: Mortality and expense risk charges 324,843 93,444 59,944 Administrative charges 26,424 8,034 4,666 --------- --------- --------- Total expenses 351,267 101,478 64,610 --------- --------- --------- Net investment income (loss) 39,166 133,995 (64,610) --------- --------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 646,027 -- -- Realized gains (losses) on sale of investments 214,308 -- 104,459 --------- --------- --------- Net realized gains (losses) 860,335 -- 104,459 --------- --------- --------- Change in unrealized gains (losses) on investments (360,839) -- 61,972 --------- --------- --------- Net increase (decrease) in net assets resulting from operations $ 538,662 $ 133,995 $ 101,821 ========= ========= =========
The accompanying notes are an integral part of these financial statements. 33
DWSII FIDELITY VIP DWSII TURNER MID CAP FIDELITY VIP DYNAMIC CAPITAL TECHNOLOGY GROWTH CONTRAFUND APPRECIATION SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (SERVICE CLASS 2) (SERVICE CLASS 2) ---------- -------------- ----------------- ----------------- INVESTMENT INCOME: Dividends $ -- $ -- $ 184,895 $ 1,784 -------- -------- ----------- --------- EXPENSES: Mortality and expense risk charges 22,601 43,926 426,787 29,735 Administrative charges 1,816 3,447 35,656 2,563 -------- -------- ----------- --------- Total expenses 24,417 47,373 462,443 32,298 -------- -------- ----------- --------- Net investment income (loss) (24,417) (47,373) (277,548) (30,514) -------- -------- ----------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- 190,548 6,319,085 169,566 Realized gains (losses) on sale of investments 37,650 61,794 393,163 107,119 -------- -------- ----------- --------- Net realized gains (losses) 37,650 252,342 6,712,248 276,685 -------- -------- ----------- --------- Change in unrealized gains (losses) on investments 71,963 260,457 (3,121,266) (154,341) -------- -------- ----------- --------- Net increase (decrease) in net assets resulting from operations $ 85,196 $465,426 $ 3,313,434 $ 91,830 ======== ======== =========== =========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 34
FTVIPT FRANKLIN FTVIPT FRANKLIN FIDELITY VIP RISING DIVIDENDS SMALL MID-CAP MID CAP SECURITIES GROWTH SECURITIES SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE CLASS 2) (CLASS 2) (CLASS 2) ----------------- ---------------- ----------------- INVESTMENT INCOME: Dividends $ 147,700 $ 356,462 $ -- ---------- ----------- --------- EXPENSES: Mortality and expense risk charges 523,783 261,250 105,188 Administrative charges 44,794 22,373 9,099 ---------- ----------- --------- Total expenses 568,577 283,623 114,287 ---------- ----------- --------- Net investment income (loss) (420,877) 72,839 (114,287) ---------- ----------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 2,678,617 218,633 399,100 Realized gains (losses) on sale of investments 407,638 309,869 157,122 ---------- ----------- --------- Net realized gains (losses) 3,086,255 528,502 556,222 ---------- ----------- --------- Change in unrealized gains (losses) on investments 973,936 (1,279,780) (13,503) ---------- ----------- --------- Net increase (decrease) in net assets resulting from operations $3,639,314 $ (678,439) $ 428,432 ========== =========== ========= FTVIPT TEMPLETON JANUS ASPEN DEVELOPING MARKETS FTVIPT TEMPLETON GLOBAL LIFE SECURITIES FOREIGN SECURITIES SCIENCES SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS 2) (CLASS 2) (SERVICE SHARES) ------------------ ------------------ ---------------- INVESTMENT INCOME: Dividends $ 340,975 $ 428,228 $ -- ---------- ---------- ------- EXPENSES: Mortality and expense risk charges 274,050 382,492 4,353 Administrative charges 23,275 32,091 360 ---------- ---------- ------- Total expenses 297,325 414,583 4,713 ---------- ---------- ------- Net investment income (loss) 43,650 13,645 (4,713) ---------- ---------- ------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 1,171,637 976,737 -- Realized gains (losses) on sale of investments 1,097,532 818,125 14,564 ---------- ---------- ------- Net realized gains (losses) 2,269,169 1,794,862 14,564 ---------- ---------- ------- Change in unrealized gains (losses) on investments 1,263,051 802,529 32,755 ---------- ---------- ------- Net increase (decrease) in net assets resulting from operations $3,575,870 $2,611,036 $42,606 ========== ========== =======
The accompanying notes are an integral part of these financial statements. 35
JANUS ASPEN JANUS ASPEN LMPVET LMPVET GLOBAL TECHNOLOGY WORLDWIDE GROWTH AGGRESSIVE GROWTH AGGRESSIVE GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE SHARES) (SERVICE SHARES) (CLASS I) (b) (CLASS II) (b) ----------------- ---------------- ----------------- ----------------- INVESTMENT INCOME: Dividends $ 9,073 $ 1,506 $ -- $ -- -------- ------- --------- --------- EXPENSES: Mortality and expense risk charges 25,208 4,717 96,064 86,905 Administrative charges 2,087 394 7,961 7,277 -------- ------- --------- --------- Total expenses 27,295 5,111 104,025 94,182 -------- ------- --------- --------- Net investment income (loss) (18,222) (3,605) (104,025) (94,182) -------- ------- --------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- 41,475 39,796 Realized gains (losses) on sale of investments 19,478 9,782 (13,865) (10,293) -------- ------- --------- --------- Net realized gains (losses) 19,478 9,782 27,610 29,503 -------- ------- --------- --------- Change in unrealized gains (losses) on investments 230,422 10,593 (293,058) (287,503) -------- ------- --------- --------- Net increase (decrease) in net assets resulting from operations $231,678 $16,770 $(369,473) $(352,182) ======== ======= ========= =========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 36
LMPVET LMPVET LMPVET APPRECIATION EQUITY INDEX FUNDAMENTAL VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (b) (CLASS II) (CLASS I) (b) ------------- ------------ ----------------- INVESTMENT INCOME: Dividends $ 17,535 $ 211,924 $ 57,471 -------- --------- --------- EXPENSES: Mortality and expense risk charges 20,647 240,413 57,079 Administrative charges 1,757 20,294 4,857 -------- --------- --------- Total expenses 22,404 260,707 61,936 -------- --------- --------- Net investment income (loss) (4,869) (48,783) (4,465) -------- --------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 135,727 612,599 224,186 Realized gains (losses) on sale of investments 3,552 281,850 (3,203) -------- --------- --------- Net realized gains (losses) 139,279 894,449 220,983 -------- --------- --------- Change in unrealized gains (losses) on investments (89,742) (450,289) (471,368) -------- --------- --------- Net increase (decrease) in net assets resulting from operations $ 44,668 $ 395,377 $(254,850) ======== ========= ========= LMPVET LMPVET LMPVET INVESTORS LARGE CAP GROWTH SMALL CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS I) (b) (CLASS I) ---------- ---------------- ---------------- INVESTMENT INCOME: Dividends $ 39,313 $ 1,036 $ -- -------- -------- -------- EXPENSES: Mortality and expense risk charges 57,237 31,224 90,607 Administrative charges 4,766 2,579 7,534 -------- -------- -------- Total expenses 62,003 33,803 98,141 -------- -------- -------- Net investment income (loss) (22,690) (32,767) (98,141) -------- -------- -------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 83,520 -- 342,461 Realized gains (losses) on sale of investments 43,129 2,557 99,374 -------- -------- -------- Net realized gains (losses) 126,649 2,557 441,835 -------- -------- -------- Change in unrealized gains (losses) on investments (40,968) 11,416 42,975 -------- -------- -------- Net increase (decrease) in net assets resulting from operations $ 62,991 $(18,794) $386,669 ======== ======== ========
The accompanying notes are an integral part of these financial statements. 37
LMPVPI LMPVPI LMPVPII LMPVET ALL CAP ALL CAP GROWTH AND INCOME SOCIAL AWARENESS SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (a) (CLASS II) (a) (CLASS I) (a) ---------------- ------------- -------------- ----------------- INVESTMENT INCOME: Dividends $ 13,570 $ 13,293 $ 91 $ 980 -------- --------- -------- --------- EXPENSES: Mortality and expense risk charges 16,636 25,605 1,238 9,370 Administrative charges 1,455 2,172 111 793 -------- --------- -------- --------- Total expenses 18,091 27,777 1,349 10,163 -------- --------- -------- --------- Net investment income (loss) (4,521) (14,484) (1,258) (9,183) -------- --------- -------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 157,381 230,450 12,520 70,393 Realized gains (losses) on sale of investments 4,474 760,038 11,533 278,292 -------- --------- -------- --------- Net realized gains (losses) 161,855 990,488 24,053 348,685 -------- --------- -------- --------- Change in unrealized gains (losses) on investments (74,669) (760,158) (11,222) (267,009) -------- --------- -------- --------- Net increase (decrease) in net assets resulting from operations $ 82,665 $ 215,846 $ 11,573 $ 72,493 ======== ========= ======== =========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 38
LMPVPI LMPVPII LMPVPII LARGE CAP GROWTH AGGRESSIVE GROWTH AGGRESSIVE GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (a) (CLASS I) (a) (CLASS II) (a) ---------------- ----------------- ----------------- INVESTMENT INCOME: Dividends $ -- $ -- $ -- --------- ----------- ----------- EXPENSES: Mortality and expense risk charges 15,165 48,946 39,785 Administrative charges 1,246 4,051 3,346 --------- ----------- ----------- Total expenses 16,411 52,997 43,131 --------- ----------- ----------- Net investment income (loss) (16,411) (52,997) (43,131) --------- ----------- ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- 21,243 17,943 Realized gains (losses) on sale of investments 393,380 1,905,882 1,410,393 --------- ----------- ----------- Net realized gains (losses) 393,380 1,927,125 1,428,336 --------- ----------- ----------- Change in unrealized gains (losses) on investments (271,145) (1,587,920) (1,154,276) --------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 105,824 $ 286,208 $ 230,929 ========= =========== =========== LMPVET LMPVIT LMPVPI CAPITAL AND INCOME ADJUSTABLE TOTAL RETURN SUBACCOUNT RATE INCOME SUBACCOUNT (CLASS II) (b) SUBACCOUNT (CLASS II) (a) ------------------ ----------- -------------- INVESTMENT INCOME: Dividends $ 57,286 $117,161 $ 25,178 --------- -------- --------- EXPENSES: Mortality and expense risk charges 54,464 48,832 24,170 Administrative charges 4,760 4,041 2,121 --------- -------- --------- Total expenses 59,224 52,873 26,291 --------- -------- --------- Net investment income (loss) (1,938) 64,288 (1,113) --------- -------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 762,235 -- 28,496 Realized gains (losses) on sale of investments 3,366 (1,954) 394,209 --------- -------- --------- Net realized gains (losses) 765,601 (1,954) 422,705 --------- -------- --------- Change in unrealized gains (losses) on investments (770,491) (72,946) (299,259) --------- -------- --------- Net increase (decrease) in net assets resulting from operations $ (6,828) $(10,612) $ 122,333 ========= ======== =========
The accompanying notes are an integral part of these financial statements. 39
MIST LORD ABBETT LORD ABBETT BATTERYMARCH MIST BLACKROCK GROWTH AND INCOME MID-CAP VALUE MID-CAP STOCK HIGH YIELD SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS VC)(a) (CLASS VC)(a) (CLASS A) (CLASS A) ----------------- ------------- ------------- --------------- INVESTMENT INCOME: Dividends $ -- $ -- $ 17,393 $ 545,775 ----------- ---------- --------- --------- EXPENSES: Mortality and expense risk charges 89,218 77,616 96,681 167,735 Administrative charges 7,214 6,436 8,350 15,128 ----------- ---------- --------- --------- Total expenses 96,432 84,052 105,031 182,863 ----------- ---------- --------- --------- Net investment income (loss) (96,432) (84,052) (87,638) 362,912 ----------- ---------- --------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- 693,497 -- Realized gains (losses) on sale of investments 2,133,663 2,182,490 (20,610) (4,093) ----------- ---------- --------- --------- Net realized gains (losses) 2,133,663 2,182,490 672,887 (4,093) ----------- ---------- --------- --------- Change in unrealized gains (losses) on investments (1,472,754) (801,611) (362,707) (523,685) ----------- ---------- --------- --------- Net increase (decrease) in net assets resulting from operations $ 564,477 $1,296,827 $ 222,542 $(164,866) =========== ========== ========= =========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 40
MIST BLACKROCK MIST BLACKROCK MIST DREMAN LARGE-CAP CORE LARGE-CAP CORE SMALL-CAP VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS E)(b) (CLASS A)(a) (CLASS A) -------------- -------------- --------------- INVESTMENT INCOME: Dividends $ -- $ 34,038 $ -- -------- --------- -------- EXPENSES: Mortality and expense risk charges 58,198 29,208 9,161 Administrative charges 4,695 2,362 783 -------- --------- -------- Total expenses 62,893 31,570 9,944 -------- --------- -------- Net investment income (loss) (62,893) 2,468 (9,944) -------- --------- -------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- 296,540 2,763 Realized gains (losses) on sale of investments 15,733 252,749 12,236 -------- --------- -------- Net realized gains (losses) 15,733 549,289 14,999 -------- --------- -------- Change in unrealized gains (losses) on investments 38,779 (323,399) (23,082) -------- --------- -------- Net increase (decrease) in net assets resulting from operations $ (8,381) $ 228,358 $(18,027) ======== ========= ======== MIST HARRIS OAKMARK MIST MIST INTERNATIONAL JANUS FORTY LAZARD MID-CAP SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS B)(b) -------------- ------------ -------------- INVESTMENT INCOME: Dividends $ 71,730 $ 15,083 $ -- --------- ---------- -------- EXPENSES: Mortality and expense risk charges 136,748 159,348 5,637 Administrative charges 11,361 13,486 482 --------- ---------- -------- Total expenses 148,109 172,834 6,119 --------- ---------- -------- Net investment income (loss) (76,379) (157,751) (6,119) --------- ---------- -------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 615,472 1,450,374 -- Realized gains (losses) on sale of investments 79,383 24,950 (1,201) --------- ---------- -------- Net realized gains (losses) 694,855 1,475,324 (1,201) --------- ---------- -------- Change in unrealized gains (losses) on investments (855,323) 957,135 (54,598) --------- ---------- -------- Net increase (decrease) in net assets resulting from operations $(236,847) $2,274,708 $(61,918) ========= ========== ========
The accompanying notes are an integral part of these financial statements. 41
MIST LEGG MASON PARTNERS MIST LORD ABBETT MIST LORD ABBETT MIST LORD ABBETT MANAGED ASSETS BOND DEBENTURE GROWTH AND INCOME MID-CAP VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS B) (CLASS B) ------------------- ---------------- ----------------- ---------------- INVESTMENT INCOME: Dividends $ 104,641 $231,242 $ 135,508 $ 2,472 --------- -------- --------- ----------- EXPENSES: Mortality and expense risk charges 79,461 75,371 404,296 168,017 Administrative charges 6,587 6,212 38,255 13,957 --------- -------- --------- ----------- Total expenses 86,048 81,583 442,551 181,974 --------- -------- --------- ----------- Net investment income (loss) 18,593 149,659 (307,043) (179,502) --------- -------- --------- ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 367,837 5,333 696,294 52,109 Realized gains (losses) on sale of investments 9,421 49,072 142,939 (85,461) --------- -------- --------- ----------- Net realized gains (losses) 377,258 54,405 839,233 (33,352) --------- -------- --------- ----------- Change in unrealized gains (losses) on investments (213,538) (8,594) (502,781) (1,251,102) --------- -------- --------- ----------- Net increase (decrease) in net assets resulting from operations $ 182,313 $195,470 $ 29,409 $(1,463,956) ========= ======== ========= ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 42
MIST MET/AIM MIST MET/AIM MIST MET/AIM CAPITAL APPRECIATION CAPITAL APPRECIATION SMALL CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS E) (b) (CLASS A) -------------------- -------------------- ---------------- INVESTMENT INCOME: Dividends $ 2,566 $ -- $ -- -------- -------- ------- EXPENSES: Mortality and expense risk charges 51,509 78,651 5,904 Administrative charges 4,336 6,764 495 -------- -------- ------- Total expenses 55,845 85,415 6,399 -------- -------- ------- Net investment income (loss) (53,279) (85,415) (6,399) -------- -------- ------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 7,044 -- 2,839 Realized gains (losses) on sale of investments (11,136) 10,334 6,043 -------- -------- ------- Net realized gains (losses) (4,092) 10,334 8,882 -------- -------- ------- Change in unrealized gains (losses) on investments 324,540 254,599 6,763 -------- -------- ------- Net increase (decrease) in net assets resulting from operations $267,169 $179,518 $ 9,246 ======== ======== ======= MIST MIST MFS EMERGING MFS RESEARCH MIST MARKETS EQUITY INTERNATIONAL MFS VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (b) (CLASS B) (b) (CLASS A) -------------- ------------- ---------- INVESTMENT INCOME: Dividends $ -- $ -- $ 56 ---------- -------- --------- EXPENSES: Mortality and expense risk charges 65,182 13,522 160,783 Administrative charges 5,509 1,202 13,424 ---------- -------- --------- Total expenses 70,691 14,724 174,207 ---------- -------- --------- Net investment income (loss) (70,691) (14,724) (174,151) ---------- -------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- 167,300 Realized gains (losses) on sale of investments 108,210 2,006 105,009 ---------- -------- --------- Net realized gains (losses) 108,210 2,006 272,309 ---------- -------- --------- Change in unrealized gains (losses) on investments 1,139,133 65,605 358,674 ---------- -------- --------- Net increase (decrease) in net assets resulting from operations $1,176,652 $ 52,887 $ 456,832 ========== ======== =========
The accompanying notes are an integral part of these financial statements. 43
MIST MIST MIST NEUBERGER BERMAN OPPENHEIMER PIMCO INFLATION MIST REAL ESTATE CAPITAL APPRECIATION PROTECTED BOND PIONEER FUND SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS A) (b) (CLASS A) ---------------- -------------------- --------------- ------------ INVESTMENT INCOME: Dividends $ 173,503 $ -- $ -- $ 12,448 ----------- --------- --------- -------- EXPENSES: Mortality and expense risk charges 278,512 107,485 138,961 24,161 Administrative charges 23,947 9,276 11,733 2,073 ----------- --------- --------- -------- Total expenses 302,459 116,761 150,694 26,234 ----------- --------- --------- -------- Net investment income (loss) (128,956) (116,761) (150,694) (13,786) ----------- --------- --------- -------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 1,390,332 371,361 -- -- Realized gains (losses) on sale of investments 296,919 61,135 24,102 59,189 ----------- --------- --------- -------- Net realized gains (losses) 1,687,251 432,496 24,102 59,189 ----------- --------- --------- -------- Change in unrealized gains (losses) on investments (4,223,659) 335,584 810,364 1,961 ----------- --------- --------- -------- Net increase (decrease) in net assets resulting from operations $(2,665,364) $ 651,319 $ 683,772 $ 47,364 =========== ========= ========= ========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 44
MIST MIST MIST PIONEER PIONEER STRATEGIC THIRD AVENUE MID-CAP VALUE INCOME SMALL CAP VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (a) (CLASS A) (CLASS B) ------------- ----------------- --------------- INVESTMENT INCOME: Dividends $ 1,939 $ 64,143 $ 119,533 -------- --------- ----------- EXPENSES: Mortality and expense risk charges 2,626 165,907 384,609 Administrative charges 225 13,960 32,531 -------- --------- ----------- Total expenses 2,851 179,867 417,140 -------- --------- ----------- Net investment income (loss) (912) (115,724) (297,607) -------- --------- ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 69,071 -- 785,123 Realized gains (losses) on sale of investments 1,319 23,086 (112,979) -------- --------- ----------- Net realized gains (losses) 70,390 23,086 672,144 -------- --------- ----------- Change in unrealized gains (losses) on investments (22,913) 511,935 (2,462,404) -------- --------- ----------- Net increase (decrease) in net assets resulting from operations $ 46,565 $ 419,297 $(2,087,867) ======== ========= =========== MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK AGGRESSIVE GROWTH BOND INCOME MONEY MARKET SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS D) (CLASS A) (CLASS A) ----------------- ------------- ------------- INVESTMENT INCOME: Dividends $ -- $266,005 $1,398,760 --------- -------- ---------- EXPENSES: Mortality and expense risk charges 92,150 146,498 521,249 Administrative charges 7,966 12,407 42,462 --------- -------- ---------- Total expenses 100,116 158,905 563,711 --------- -------- ---------- Net investment income (loss) (100,116) 107,100 835,049 --------- -------- ---------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- -- Realized gains (losses) on sale of investments 49,747 40,283 -- --------- -------- ---------- Net realized gains (losses) 49,747 40,283 -- --------- -------- ---------- Change in unrealized gains (losses) on investments 926,137 205,044 -- --------- -------- ---------- Net increase (decrease) in net assets resulting from operations $ 875,768 $352,427 $ 835,049 ========= ======== ==========
The accompanying notes are an integral part of these financial statements. 45
MSF METLIFE MSF MSF MSF METLIFE CONSERVATIVE FI LARGE CAP FI VALUE LEADERS AGGRESSIVE ALLOCATION ALLOCATION SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS D) (CLASS B) (CLASS B) ------------ ---------------- --------------------- ------------ INVESTMENT INCOME: Dividends $ 7,850 $ 94,886 $ 1,086 $ -- --------- ---------- -------- -------- EXPENSES: Mortality and expense risk charges 86,945 206,873 39,062 45,152 Administrative charges 7,165 17,142 2,973 3,504 --------- ---------- -------- -------- Total expenses 94,110 224,015 42,035 48,656 --------- ---------- -------- -------- Net investment income (loss) (86,260) (129,129) (40,949) (48,656) --------- ---------- -------- -------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 325,613 1,027,273 3,122 1,320 Realized gains (losses) on sale of investments 7,258 20,878 20,953 59,407 --------- ---------- -------- -------- Net realized gains (losses) 332,871 1,048,151 24,075 60,727 --------- ---------- -------- -------- Change in unrealized gains (losses) on investments (148,568) (661,337) 13,243 65,380 --------- ---------- -------- -------- Net increase (decrease) in net assets resulting from operations $ 98,043 $ 257,685 $ (3,631) $ 77,451 ========= ========== ======== ========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 46
MSF METLIFE MSF METLIFE CONSERVATIVE TO MSF METLIFE MODERATE TO MODERATE ALLOCATION MODERATE ALLOCATION AGGRESSIVE ALLOCATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ------------------- ------------------- --------------------- INVESTMENT INCOME: Dividends $ -- $ 1,046 $ 2,539 -------- --------- --------- EXPENSES: Mortality and expense risk charges 56,051 236,125 136,643 Administrative charges 4,659 18,827 10,996 -------- --------- --------- Total expenses 60,710 254,952 147,639 -------- --------- --------- Net investment income (loss) (60,710) (253,906) (145,100) -------- --------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 6,783 18,833 10,158 Realized gains (losses) on sale of investments 52,356 125,272 298,820 -------- --------- --------- Net realized gains (losses) 59,139 144,105 308,978 -------- --------- --------- Change in unrealized gains (losses) on investments 47,336 349,440 30,367 -------- --------- --------- Net increase (decrease) in net assets resulting from operations $ 45,765 $ 239,639 $ 194,245 ======== ========= ========= MSF MSF MFS MSF MFS OPPENHEIMER TOTAL RETURN TOTAL RETURN GLOBAL EQUITY SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS F) (CLASS B) ------------ ------------ ------------- INVESTMENT INCOME: Dividends $ 84,935 $ 673,358 $ 317,860 --------- ---------- ---------- EXPENSES: Mortality and expense risk charges 86,694 613,982 622,265 Administrative charges 7,040 51,644 53,400 --------- ---------- ---------- Total expenses 93,734 665,626 675,665 --------- ---------- ---------- Net investment income (loss) (8,799) 7,732 (357,805) --------- ---------- ---------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 145,763 1,136,117 527,032 Realized gains (losses) on sale of investments 35,524 274,520 599,413 --------- ---------- ---------- Net realized gains (losses) 181,287 1,410,637 1,126,445 --------- ---------- ---------- Change in unrealized gains (losses) on investments (106,545) (670,943) 822,708 --------- ---------- ---------- Net increase (decrease) in net assets resulting from operations $ 65,943 $ 747,426 $1,591,348 ========= ========== ==========
The accompanying notes are an integral part of these financial statements. 47
MSF MSF WESTERN ASSET MSF WESTERN ASSET T. ROWE PRICE MANAGEMENT HIGH MANAGEMENT U.S. PIMCO VIT LARGE CAP GROWTH YIELD BOND GOVERNMENT REAL RETURN SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS A) (a) (CLASS A) (ADMINISTRATIVE CLASS) (a) ---------------- ----------------- ----------------- -------------------------- INVESTMENT INCOME: Dividends $ 4,920 $ 755,882 $166,660 $ 174,451 -------- --------- -------- --------- EXPENSES: Mortality and expense risk charges 45,591 40,197 94,528 65,458 Administrative charges 3,941 3,577 9,026 5,547 -------- --------- -------- --------- Total expenses 49,532 43,774 103,554 71,005 -------- --------- -------- --------- Net investment income (loss) (44,612) 712,108 63,106 103,446 -------- --------- -------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 22,694 64,810 -- -- Realized gains (losses) on sale of investments 27,649 (5,953) 50,596 (699,546) -------- --------- -------- --------- Net realized gains (losses) 50,343 58,857 50,596 (699,546) -------- --------- -------- --------- Change in unrealized gains (losses) on investments 164,458 (497,478) 43,861 811,182 -------- --------- -------- --------- Net increase (decrease) in net assets resulting from operations $170,189 $ 273,487 $157,563 $ 215,082 ======== ========= ======== =========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 48
PIMCO VIT PIONEER PIONEER TOTAL RETURN AMERICA INCOME VCT BOND VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (ADMINISTRATIVE CLASS) (CLASS II) (c) (CLASS II) (d) ---------------------- ------------------ -------------- INVESTMENT INCOME: Dividends $1,257,131 $368,403 $ 62,589 ---------- -------- -------- EXPENSES: Mortality and expense risk charges 468,166 139,286 24,197 Administrative charges 39,275 12,017 2,059 ---------- -------- -------- Total expenses 507,441 151,303 26,256 ---------- -------- -------- Net investment income (loss) 749,690 217,100 36,333 ---------- -------- -------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- -- Realized gains (losses) on sale of investments (84,476) (93,308) 656 ---------- -------- -------- Net realized gains (losses) (84,476) (93,308) 656 ---------- -------- -------- Change in unrealized gains (losses) on investments 1,029,439 208,007 68,283 ---------- -------- -------- Net increase (decrease) in net assets resulting from operations $1,694,653 $331,799 $105,272 ========== ======== ======== PIONEER PIONEER PIONEER CULLEN VALUE VCT EMERGING MARKETS VCT EQUITY INCOME VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) ---------------- -------------------- ----------------- INVESTMENT INCOME: Dividends $ 58,406 $ 46,012 $ 303,198 -------- ---------- --------- EXPENSES: Mortality and expense risk charges 122,310 238,994 217,290 Administrative charges 10,875 20,417 19,814 -------- ---------- --------- Total expenses 133,185 259,411 237,104 -------- ---------- --------- Net investment income (loss) (74,779) (213,399) 66,094 -------- ---------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- 1,370,335 413,833 Realized gains (losses) on sale of investments 61,965 609,502 265,655 -------- ---------- --------- Net realized gains (losses) 61,965 1,979,837 679,488 -------- ---------- --------- Change in unrealized gains (losses) on investments 291,114 2,768,304 (959,180) -------- ---------- --------- Net increase (decrease) in net assets resulting from operations $278,300 $4,534,742 $(213,598) ======== ========== =========
The accompanying notes are an integral part of these financial statements. 49
PIONEER EQUITY PIONEER PIONEER GLOBAL PIONEER OPPORTUNITY VCT FUND VCT HIGH YIELD VCT HIGH YIELD VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (c) (CLASS II) (CLASS II) (CLASS II) --------------- ---------- -------------- -------------- INVESTMENT INCOME: Dividends $ 1,204 $121,356 $ 386,732 $726,895 -------- -------- --------- -------- EXPENSES: Mortality and expense risk charges 10,166 203,537 89,961 245,987 Administrative charges 858 17,093 7,170 21,477 -------- -------- --------- -------- Total expenses 11,024 220,630 97,131 267,464 -------- -------- --------- -------- Net investment income (loss) (9,820) (99,274) 289,601 459,431 -------- -------- --------- -------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 84,195 -- 72,706 13,146 Realized gains (losses) on sale of investments 9,400 239,790 (3,262) 121,720 -------- -------- --------- -------- Net realized gains (losses) 93,595 239,790 69,444 134,866 -------- -------- --------- -------- Change in unrealized gains (losses) on investments (18,944) 121,440 (395,188) (54,625) -------- -------- --------- -------- Net increase (decrease) in net assets resulting from operations $ 64,831 $261,956 $ (36,143) $539,672 ======== ======== ========= ========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 50
PIONEER IBBOTSON PIONEER IBBOTSON PIONEER IBBOTSON AGGRESSIVE GROWTH MODERATE ALLOCATION VCT ALLOCATION VCT ALLOCATION VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) ---------------- ---------------- ---------------- INVESTMENT INCOME: Dividends $ 66,113 $ 939,850 $ 491,128 -------- ----------- ---------- EXPENSES: Mortality and expense risk charges 90,830 1,921,363 963,328 Administrative charges 7,897 139,506 72,828 -------- ----------- ---------- Total expenses 98,727 2,060,869 1,036,156 -------- ----------- ---------- Net investment income (loss) (32,614) (1,121,019) (545,028) -------- ----------- ---------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 161,831 1,714,800 600,089 Realized gains (losses) on sale of investments 24,928 268,591 307,405 -------- ----------- ---------- Net realized gains (losses) 186,759 1,983,391 907,494 -------- ----------- ---------- Change in unrealized gains (losses) on investments (20,808) 1,225,391 938,264 -------- ----------- ---------- Net increase (decrease) in net assets resulting from operations $133,337 $ 2,087,763 $1,300,730 ======== =========== ========== PIONEER PIONEER INTERNATIONAL PIONEER MID CAP INDEPENDENCE VCT VALUE VCT VALUE VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) ---------------- ------------- --------------- INVESTMENT INCOME: Dividends $ -- $ 15,589 $ 68,569 -------- -------- ---------- EXPENSES: Mortality and expense risk charges 38,898 88,008 199,462 Administrative charges 3,284 7,572 17,650 -------- -------- ---------- Total expenses 42,182 95,580 217,112 -------- -------- ---------- Net investment income (loss) (42,182) (79,991) (148,543) -------- -------- ---------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- 53,857 1,225,256 Realized gains (losses) on sale of investments 48,691 219,660 (155,109) -------- -------- ---------- Net realized gains (losses) 48,691 273,517 1,070,147 -------- -------- ---------- Change in unrealized gains (losses) on investments 109,418 293,415 (602,644) -------- -------- ---------- Net increase (decrease) in net assets resulting from operations $115,927 $486,941 $ 318,960 ======== ======== ==========
The accompanying notes are an integral part of these financial statements. 51
PIONEER OAK RIDGE PIONEER PIONEER LARGE CAP REAL ESTATE SMALL AND MID CAP PIONEER SMALL GROWTH VCT SHARES VCT GROWTH VCT CAP VALUE VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) (c) (CLASS II) ---------- ----------- ----------------- ------------- INVESTMENT INCOME: Dividends $ 11,860 $ 265,134 $ -- $ 40,137 --------- ----------- --------- ----------- EXPENSES: Mortality and expense risk charges 108,393 178,709 36,597 135,595 Administrative charges 9,153 15,770 3,196 11,895 --------- ----------- --------- ----------- Total expenses 117,546 194,479 39,793 147,490 --------- ----------- --------- ----------- Net investment income (loss) (105,686) 70,655 (39,793) (107,353) --------- ----------- --------- ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 24,157 1,000,336 599,465 1,864,038 Realized gains (losses) on sale of investments 154,962 259,981 46,841 (93,194) --------- ----------- --------- ----------- Net realized gains (losses) 179,119 1,260,317 646,306 1,770,844 --------- ----------- --------- ----------- Change in unrealized gains (losses) on investments 273,910 (3,590,805) (250,221) (2,363,206) --------- ----------- --------- ----------- Net increase (decrease) in net assets resulting from operations $ 347,343 $(2,259,833) $ 356,292 $ (699,715) ========= =========== ========= ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 52
PIONEER STRATEGIC PUTNAM VT INCOME VCT PIONEER VALUE VCT INTERNATIONAL EQUITY SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (c) (CLASS IB) (a) ----------------- ----------------- -------------------- INVESTMENT INCOME: Dividends $1,091,148 $ 170,948 $ 20,304 ---------- --------- --------- EXPENSES: Mortality and expense risk charges 366,876 97,174 3,935 Administrative charges 31,742 8,039 345 ---------- --------- --------- Total expenses 398,618 105,213 4,280 ---------- --------- --------- Net investment income (loss) 692,530 65,735 16,024 ---------- --------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 116,013 436,783 87,894 Realized gains (losses) on sale of investments (17,038) 334,799 194,176 ---------- --------- --------- Net realized gains (losses) 98,975 771,582 282,070 ---------- --------- --------- Change in unrealized gains (losses) on investments 104,962 (839,576) (240,847) ---------- --------- --------- Net increase (decrease) in net assets resulting from operations $ 896,467 $ (2,259) $ 57,247 ========== ========= ========= PUTNAM VT VAN KAMPEN LIT VAN KAMPEN LIT SMALL CAP VALUE COMSTOCK ENTERPRISE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS IB) (a) (CLASS II) (CLASS II) --------------- -------------- -------------- INVESTMENT INCOME: Dividends $ 82,872 $ 225,508 $ 290 ----------- ----------- ------- EXPENSES: Mortality and expense risk charges 83,510 256,764 3,167 Administrative charges 7,299 21,453 283 ----------- ----------- ------- Total expenses 90,809 278,217 3,450 ----------- ----------- ------- Net investment income (loss) (7,937) (52,709) (3,160) ----------- ----------- ------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 1,657,447 313,027 -- Realized gains (losses) on sale of investments 1,067,930 256,135 2,861 ----------- ----------- ------- Net realized gains (losses) 2,725,377 569,162 2,861 ----------- ----------- ------- Change in unrealized gains (losses) on investments (1,726,958) (1,080,467) 18,831 ----------- ----------- ------- Net increase (decrease) in net assets resulting from operations $ 990,482 $ (564,014) $18,532 =========== =========== =======
The accompanying notes are an integral part of these financial statements. 53 METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES OF METLIFE INSURANCE COMPANY OF CONNECTICUT STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
AIM V.I. MID CAP CORE EQUITY AIM V.I. UTILITIES AIM V.I. CAPITAL APPRECIATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERIES II) (SERIES I) (SERIES II) ---------------------------- ---------------------- ----------------------------- 2007 2006 2007 2006 2007 (a) 2006 ---------- ---------- ---------- ---------- ------------ ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (54,306) $ (32,556) $ 958 $ 38,151 $ (35,836) $ (101,416) Net realized gains (losses) 90,434 306,099 309,002 115,242 1,270,367 73,612 Change in unrealized gains (losses) on investments 156,099 (61,501) 104,574 283,685 (860,370) 244,796 ---------- ---------- ---------- ---------- --------- ---------- Net increase (decrease) in net assets resulting from operations 192,227 212,042 414,534 437,078 374,161 216,992 ---------- ---------- ---------- ---------- --------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 250,258 471,916 70,298 59,667 189,726 1,075,430 Transfers from other funding options 252,194 137,809 489,719 549,763 81,115 185,268 Contract charges (645) (596) (479) (492) (12) (1,856) Contract surrenders (160,033) (111,983) (287,281) (50,233) (140,279) (353,874) Transfers to other funding options (435,352) (306,337) (386,673) (362,468) (6,273,892) (256,175) Other receipts (payments) (19,403) (88,484) (5,946) -- (13,525) (91,172) ---------- ---------- ---------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions (112,981) 102,325 (120,362) 196,237 (6,156,867) 557,621 ---------- ---------- ---------- ---------- ----------- ---------- Net increase (decrease) in net assets 79,246 314,367 294,172 633,315 (5,782,706) 774,613 NET ASSETS: Beginning of period 2,775,926 2,461,559 2,435,790 1,802,475 5,782,706 5,008,093 ---------- ---------- ---------- ---------- ----------- ---------- End of period $2,855,172 $2,775,926 $2,729,962 $2,435,790 $ -- $5,782,706 ========== ========== ========== ========== =========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 54
ALGER AMERICAN LEVERAGED ALLCAP AMERICAN FUNDS GLOBAL GROWTH SUBACCOUNT SUBACCOUNT (CLASS S) (CLASS 2) ------------------------------- ---------------------------- 2007 2006 2007 2006 ---------- ----------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (57,009) $ (40,043) $ 175,269 $ (198,655) Net realized gains (losses) 139,677 151,574 1,615,133 244,925 Change in unrealized gains (losses) on investments 669,548 201,553 854,120 3,002,642 ---------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 752,216 313,084 2,644,522 3,048,912 ---------- ----------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 87,687 477,849 847,199 1,666,900 Transfers from other funding options 1,597,258 1,684,045 3,312,367 2,763,912 Contract charges (592) (552) (6,264) (5,806) Contract surrenders (115,663) (110,309) (852,170) (457,732) Transfers to other funding options (476,352) (1,437,506) (2,409,097) (1,298,656) Other receipts (payments) (1,569) -- (93,268) (125,665) ---------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 1,090,769 613,527 798,767 2,542,953 ---------- ----------- ----------- ----------- Net increase (decrease) in net assets 1,842,985 926,611 3,443,289 5,591,865 NET ASSETS: Beginning of period 2,198,304 1,271,693 20,624,439 15,032,574 ---------- ----------- ----------- ----------- End of period $4,041,289 $ 2,198,304 $24,067,728 $20,624,439 ========== =========== =========== =========== AMERICAN FUNDS GROWTH-INCOME AMERICAN FUNDS GROWTH SUBACCOUNT SUBACCOUNT (CLASS 2) (CLASS 2) ---------------------------- ------------------------ 2007 2006 2007 2006 ----------- ----------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (245,082) $ (178,851) $ (687,343) $ (615,259) Net realized gains (losses) 2,586,012 1,318,982 5,657,274 911,712 Change in unrealized gains (losses) on investments (842,340) 4,268,292 552,156 3,732,534 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 1,498,590 5,408,423 5,522,087 4,028,987 ----------- ----------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 691,131 2,853,550 1,077,045 3,372,148 Transfers from other funding options 1,405,373 2,243,438 2,251,994 3,014,762 Contract charges (13,277) (13,796) (17,483) (17,689) Contract surrenders (2,207,482) (1,197,684) (3,137,802) (1,438,976) Transfers to other funding options (3,623,052) (1,897,729) (4,815,602) (3,270,390) Other receipts (payments) (146,175) (243,174) (244,337) (132,555) ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions (3,893,482) 1,744,605 (4,886,185) 1,527,300 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets (2,394,892) 7,153,028 635,902 5,556,287 NET ASSETS: Beginning of period 47,375,784 40,222,756 55,143,636 49,587,349 ----------- ----------- ----------- ----------- End of period $44,980,892 $47,375,784 $55,779,538 $55,143,636 =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 55
CREDIT SUISSE TRUST EMERGING CREDIT SUISSE TRUST GLOBAL DREYFUS MIDCAP STOCK MARKETS SMALL CAP SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE SHARES) ---------------------------- -------------------------- ---------------------- 2007 (a) 2006 2007 2006 2007 2006 ----------- ---------- --------- --------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (30,177) $ (61,741) $ (15,822) $ (15,799) $ (83,688) $ (89,666) Net realized gains (losses) 1,976,912 201,216 66,303 21,629 597,963 838,871 Change in unrealized gains (losses) on investments (1,764,857) 997,222 (96,614) 80,799 (513,759) (482,232) ----------- ---------- --------- --------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 181,878 1,136,697 (46,133) 86,629 516 266,973 ----------- ---------- --------- --------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 12,165 431,566 60,413 21,155 69,011 152,491 Transfers from other funding options 186,099 473,203 79,553 191,638 284,864 535,827 Contract charges -- (991) (177) (179) (793) (911) Contract surrenders (119,397) (92,022) (65,427) (68,254) (142,856) (237,531) Transfers to other funding options (5,313,314) (562,378) (226,145) (45,560) (926,334) (444,195) Other receipts (payments) (12,215) -- -- -- (28,441) (22,908) ----------- ---------- --------- --------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions (5,246,662) 249,378 (151,783) 98,800 (744,549) (17,227) ----------- ---------- --------- --------- ---------- ---------- Net increase (decrease) in net assets (5,064,784) 1,386,075 (197,916) 185,429 (744,033) 249,746 NET ASSETS: Beginning of period 5,064,784 3,678,709 882,503 697,074 5,177,037 4,927,291 ----------- ---------- --------- --------- ---------- ---------- End of period $ -- $5,064,784 $ 684,587 $ 882,503 $4,433,004 $5,177,037 =========== ========== ========= ========= ========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 56
DREYFUS SOCIALLY RESPONSIBLE GROWTH DREYFUS VIF APPRECIATION SUBACCOUNT SUBACCOUNT (SERVICE SHARES) (INITIAL SHARES) ------------------ ------------------------ 2007 2006 2007 2006 -------- -------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (4,904) $ (5,783) $ (9,207) $ (8,373) Net realized gains (losses) 9,041 2,647 66,377 18,697 Change in unrealized gains (losses) on investments 11,045 22,235 66,542 306,976 -------- -------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 15,182 19,099 123,712 317,300 -------- -------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 17,597 15,858 17,156 79,383 Transfers from other funding options 2,428 5,663 61,681 165,036 Contract charges (148) (121) (1,034) (1,125) Contract surrenders (38,884) (21,748) (166,387) (77,035) Transfers to other funding options (13,060) (1,077) (142,297) (142,204) Other receipts (payments) -- (4,416) (11,758) -- -------- -------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions (32,067) (5,841) (242,639) 24,055 -------- -------- ---------- ---------- Net increase (decrease) in net assets (16,885) 13,258 (118,927) 341,355 NET ASSETS: Beginning of period 296,584 283,326 2,518,813 2,177,458 -------- -------- ---------- ---------- End of period $279,699 $296,584 $2,399,886 $2,518,813 ======== ======== ========== ========== DREYFUS VIF DEVELOPING LEADERS DWS VIT EQUITY 500 INDEX SUBACCOUNT SUBACCOUNT (INITIAL SHARES) (CLASS 2) ------------------------------ ------------------------ 2007 2006 2007 2006 ----------- ---------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (100,917) $ (134,380) $ (42,879) $ (55,557) Net realized gains (losses) 1,002,329 695,177 162,027 20,662 Change in unrealized gains (losses) on investments (1,967,078) (442,249) 44,325 623,215 ----------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations (1,065,666) 118,548 163,473 588,320 ----------- ---------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 86,279 437,726 3,345 27,389 Transfers from other funding options 522,548 640,662 1,175,621 112,781 Contract charges (2,791) (2,957) (587) (656) Contract surrenders (271,477) (298,693) (41,997) (81,838) Transfers to other funding options (592,305) (528,175) (871,172) (135,734) Other receipts (payments) (19,208) (22,428) (10,681) (26,033) ----------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions (276,954) 226,135 254,529 (104,091) ----------- ---------- ---------- ---------- Net increase (decrease) in net assets (1,342,620) 344,683 418,002 484,229 NET ASSETS: Beginning of period 8,580,463 8,235,780 5,092,588 4,608,359 ----------- ---------- ---------- ---------- End of period $ 7,237,843 $8,580,463 $5,510,590 $5,092,588 =========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements. 57
DWS VIT RREEF REAL ESTATE SECURITIES DWSI GLOBAL OPPORTUNITIES DWSII BALANCED SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ----------------------- ------------------------- ---------------------- 2007 2006 2007 2006 2007 2006 ----------- ---------- ---------- ---------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (68,332) $ (111,255) $ (35,588) $ (33,699) $ 37,143 $ 6,768 Net realized gains (losses) 1,112,129 249,341 400,316 122,779 65,476 65,242 Change in unrealized gains (losses) on investments (2,174,650) 1,545,005 (143,574) 466,588 (6,068) 234,008 ----------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations (1,130,853) 1,683,091 221,154 555,668 96,551 306,018 ----------- ---------- ---------- ---------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 131,303 222,348 49,013 100,800 23,115 103,256 Transfers from other funding options 879,316 382,507 663,650 337,936 64,391 218,433 Contract charges (996) (1,067) (606) (656) (802) (852) Contract surrenders (226,584) (146,142) (102,144) (132,508) (191,713) (246,646) Transfers to other funding options (1,003,030) (608,388) (386,945) (334,672) (296,373) (749,500) Other receipts (payments) (18,685) (12,192) (11,968) (28,574) (48,538) (50,787) ----------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions (238,676) (162,934) 211,000 (57,674) (449,920) (726,096) ----------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets (1,369,529) 1,520,157 432,154 497,994 (353,369) (420,078) NET ASSETS: Beginning of period 6,472,186 4,952,029 3,374,703 2,876,709 4,050,432 4,470,510 ----------- ---------- ---------- ---------- ---------- ---------- End of period $ 5,102,657 $6,472,186 $3,806,857 $3,374,703 $3,697,063 $4,050,432 =========== ========== ========== ========== ========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 58
DWSI BOND DWSI CAPITAL GROWTH DWSI GROWTH & INCOME DWSI HEALTH CARE SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) (CLASS B) ------------------- ------------------------ ---------------------- ---------------------- 2007 2006 2007 2006 2007 2006 2007 2006 --------- -------- ----------- ----------- ---------- ---------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 25,160 $ 2,305 $ (136,866) $ (87,489) $ (81,474) $ (65,550) $ (56,871) $ (53,548) Net realized gains (losses) (18,577) 186 227,802 113,520 221,596 149,319 233,453 54,936 Change in unrealized gains (losses) on investments (7,337) 1,268 646,315 190,167 (193,561) 385,850 103,781 100,207 --------- -------- ----------- ----------- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations (754) 3,759 737,251 216,198 (53,439) 469,619 280,363 101,595 --------- -------- ----------- ----------- ---------- ---------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,590 10,600 115,175 60,795 26,179 144,718 72,070 76,302 Transfers from other funding options 841,196 111,506 892,287 4,715,576 212,877 2,909,906 252,378 184,219 Contract charges (117) (43) (1,750) (1,000) (1,406) (1,164) (507) (570) Contract surrenders (1,535) (487) (268,602) (236,348) (223,637) (207,196) (172,194) (135,987) Transfers to other funding options (481,178) (9,618) (1,516,593) (1,054,981) (731,768) (833,642) (187,517) (226,845) Other receipts (payments) -- -- (33,934) (19,318) (51,623) (1,898) (5,358) (1,905) --------- -------- ----------- ----------- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions 359,956 111,958 (813,417) 3,464,724 (769,378) 2,010,724 (41,128) (104,786) --------- -------- ----------- ----------- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets 359,202 115,717 (76,166) 3,680,922 (822,817) 2,480,343 239,235 (3,191) NET ASSETS: Beginning of period 167,191 51,474 8,019,061 4,338,139 6,943,787 4,463,444 2,653,456 2,656,647 --------- -------- ----------- ----------- ---------- ---------- ---------- ---------- End of period $ 526,393 $167,191 $ 7,942,895 $ 8,019,061 $6,120,970 $6,943,787 $2,892,691 $2,653,456 ========= ======== =========== =========== ========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements. 59
DWSII INTERNATIONAL DWSII STRATEGIC INCOME DWSII BLUE CHIP SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ---------------------- ----------------------- ------------------------ 2007 2006 2007 2006 2007 2006 ---------- ---------- ----------- ---------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (3,521) $ (12,611) $ 191,413 $ 103,134 $ (77,278) $ (85,098) Net realized gains (losses) 176,045 177,533 7,506 46,099 787,215 580,480 Change in unrealized gains (losses) on investments 448,543 483,467 (49,877) 156,271 (592,261) 227,321 ---------- ---------- ----------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 621,067 648,389 149,042 305,504 117,676 722,703 ---------- ---------- ----------- ---------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 74,042 46,169 49,324 161,445 252,399 282,571 Transfers from other funding options 484,452 2,771,594 909,634 1,006,227 1,976,491 2,065,536 Contract charges (1,089) (611) (861) (918) (1,339) (1,489) Contract surrenders (141,779) (95,007) (131,166) (76,213) (189,422) (197,040) Transfers to other funding options (599,728) (738,845) (1,247,581) (934,986) (2,103,228) (2,341,528) Other receipts (payments) (17,943) (30,813) (19,815) (73,527) (22,123) (38,649) ---------- ---------- ----------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions (202,045) 1,952,487 (440,465) 82,028 (87,222) (230,599) ---------- ---------- ----------- ---------- ----------- ----------- Net increase (decrease) in net assets 419,022 2,600,876 (291,423) 387,532 30,454 492,104 NET ASSETS: Beginning of period 5,373,019 2,772,143 5,004,657 4,617,125 5,849,960 5,357,856 ---------- ---------- ----------- ---------- ----------- ----------- End of period $5,792,041 $5,373,019 $ 4,713,234 $5,004,657 $ 5,880,414 $ 5,849,960 ========== ========== =========== ========== =========== ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 60
DWSII CONSERVATIVE ALLOCATION DWSII CORE FIXED INCOME SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) ----------------------------- ----------------------- 2007 2006 2007 2006 -------------- ------------- ---------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 2,267 $ (81,911) $ 122,271 $ 83,220 Net realized gains (losses) 399,722 102,579 (1,675) (20,041) Change in unrealized gains (losses) on investments (108,886) 594,876 (7,065) 52,161 ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 293,103 615,544 113,531 115,340 ----------- ----------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 221,319 311,420 15,845 88,854 Transfers from other funding options 453,417 4,471,601 785,188 549,449 Contract charges (2,906) (2,187) (981) (1,168) Contract surrenders (352,730) (229,036) (287,961) (342,241) Transfers to other funding options (725,040) (633,025) (118,628) (650,079) Other receipts (payments) (98,191) (231,256) (32,834) (15,361) ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions (504,131) 3,687,517 360,629 (370,546) ----------- ----------- ---------- ---------- Net increase (decrease) in net assets (211,028) 4,303,061 474,160 (255,206) NET ASSETS: Beginning of period 11,228,464 6,925,403 6,243,468 6,498,674 ----------- ----------- ---------- ---------- End of period $11,017,436 $11,228,464 $6,717,628 $6,243,468 =========== =========== ========== ========== DWSII DREMAN DWSII DAVIS VENTURE VALUE HIGH RETURN EQUITY SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) ------------------------- ------------------------ 2007 2006 2007 2006 ------------ ----------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (169,578) $ (159,272) $ (163,279) $ (102,278) Net realized gains (losses) 382,548 172,203 521,852 879,283 Change in unrealized gains (losses) on investments (15,321) 1,038,820 (1,081,781) 1,501,496 ----------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 197,649 1,051,751 (723,208) 2,278,501 ----------- ---------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 170,877 865,305 382,098 994,796 Transfers from other funding options 1,249,503 781,176 1,093,502 5,619,090 Contract charges (1,537) (1,604) (3,845) (3,199) Contract surrenders (195,798) (342,323) (669,374) (491,942) Transfers to other funding options (914,024) (861,411) (1,639,374) (809,419) Other receipts (payments) (20,576) (35,413) (74,441) (7,739) ----------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 288,445 405,730 (911,434) 5,301,587 ----------- ---------- ----------- ----------- Net increase (decrease) in net assets 486,094 1,457,481 (1,634,642) 7,580,088 NET ASSETS: Beginning of period 9,722,906 8,265,425 19,165,502 11,585,414 ----------- ---------- ----------- ----------- End of period $10,209,000 $9,722,906 $17,530,860 $19,165,502 =========== ========== =========== ===========
The accompanying notes are an integral part of these financial statements. 61
DWSII DREMAN DWSII SMALL MID CAP VALUE DWSII GLOBAL THEMATIC GOVERNMENT & AGENCY SECURITIES SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ----------------------- ---------------------- ------------------------------ 2007 2006 2007 2006 2007 2006 ----------- ---------- ---------- ---------- ----------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (124,106) $ (137,196) $ (83,847) $ (66,983) $ 40,727 $ 19,098 Net realized gains (losses) 1,506,243 817,446 826,108 361,385 (21,291) (7,930) Change in unrealized gains (losses) on investments (1,276,884) 1,024,068 (595,507) 591,591 36,490 18,107 ----------- ---------- ---------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from operations 105,253 1,704,318 146,754 885,993 55,926 29,275 ----------- ---------- ---------- ---------- ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 211,339 728,868 86,217 107,837 890 1,171 Transfers from other funding options 483,942 536,892 1,087,936 1,076,736 3,024,759 363,226 Contract charges (1,485) (1,534) (784) (712) (268) (334) Contract surrenders (325,963) (328,276) (299,569) (108,662) (73,387) (53,153) Transfers to other funding options (1,569,969) (817,226) (499,690) (445,596) (3,051,238) (217,987) Other receipts (payments) (24,710) (29,530) (19,347) (2,688) (41,964) (21,792) ----------- ---------- ---------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions (1,226,846) 89,194 354,763 626,915 (141,208) 71,131 ----------- ---------- ---------- ---------- ----------- ---------- Net increase (decrease) in net assets (1,121,593) 1,793,512 501,517 1,512,908 (85,282) 100,406 NET ASSETS: Beginning of period 9,263,180 7,469,668 4,473,071 2,960,163 1,581,460 1,481,054 ----------- ---------- ---------- ---------- ----------- ---------- End of period $ 8,141,587 $9,263,180 $4,974,588 $4,473,071 $ 1,496,178 $1,581,460 =========== ========== ========== ========== =========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 62
DWSII GROWTH ALLOCATION DWSII HIGH INCOME SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) ----------------------- ------------------------ 2007 2006 2007 2006 ----------- ----------- ----------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (4,859) $ (214,207) $ 301,305 $ 277,384 Net realized gains (losses) 1,211,513 401,021 (43,617) 2,658 Change in unrealized gains (losses) on investments (561,650) 1,655,329 (347,996) 142,710 ----------- ----------- ----------- ---------- Net increase (decrease) in net assets resulting from operations 645,004 1,842,143 (90,308) 422,752 ----------- ----------- ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 55,138 495,806 24,466 87,013 Transfers from other funding options 205,296 1,523,186 854,261 722,951 Contract charges (3,784) (3,840) (1,168) (1,180) Contract surrenders (756,299) (417,581) (197,233) (224,835) Transfers to other funding options (1,086,012) (2,005,558) (1,304,632) (787,673) Other receipts (payments) (56,189) (43,691) (19,899) (44,621) ----------- ----------- ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions (1,641,850) (451,678) (644,205) (248,345) ----------- ----------- ----------- ---------- Net increase (decrease) in net assets (996,846) 1,390,465 (734,513) 174,407 NET ASSETS: Beginning of period 18,857,212 17,466,747 5,671,489 5,497,082 ----------- ----------- ----------- ---------- End of period $17,860,366 $18,857,212 $ 4,936,976 $5,671,489 =========== =========== ========== ========== DWSII INTERNATIONAL SELECT EQUITY DWSII JANUS GROWTH & INCOME SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) --------------------------------- --------------------------- 2007 2006 2007 2006 ---------- ---------- ---------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 4,725 $ (21,578) $ (41,968) $ (44,214) Net realized gains (losses) 713,412 164,722 99,507 76,911 Change in unrealized gains (losses) on investments (41,110) 789,456 35,667 102,626 ---------- ---------- ---------- ----------- Net increase (decrease) in net assets resulting from operations 677,027 932,600 93,206 135,323 ---------- ---------- ---------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 158,546 316,584 26,379 242,957 Transfers from other funding options 1,524,879 424,403 124,995 198,633 Contract charges (846) (843) (393) (429) Contract surrenders (218,109) (192,475) (103,554) (151,025) Transfers to other funding options (803,936) (548,701) (343,000) (269,745) Other receipts (payments) -- (8,367) (12,571) (11,797) ---------- ---------- ---------- ----------- Net increase (decrease) in net assets resulting from contract transactions 660,534 (9,399) (308,144) 8,594 ---------- ---------- ---------- ----------- Net increase (decrease) in net assets 1,337,561 923,201 (214,938) 143,917 NET ASSETS: Beginning of period 5,020,613 4,097,412 2,457,650 2,313,733 ---------- ---------- ---------- ----------- End of period $6,358,174 $5,020,613 $2,242,712 $ 2,457,650 ========== ========== ========== ===========
The accompanying notes are an integral part of these financial statements. 63
DWSII LARGE CAP VALUE DWSII MID CAP GROWTH DWSII MODERATE ALLOCATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ---------------------- -------------------- ------------------------- 2007 2006 2007 2006 2007 2006 ---------- ---------- --------- --------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (21,169) $ (22,954) $ (16,693) $ (15,707) $ 39,166 $ (189,091) Net realized gains (losses) 179,255 28,146 72,947 26,112 860,335 256,123 Change in unrealized gains (losses) on investments 137,069 322,079 (10,600) 55,324 (360,839) 1,325,633 ---------- ---------- --------- --------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 295,155 327,271 45,654 65,729 538,662 1,392,665 ---------- ---------- --------- --------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 6,924 23,870 38,322 106,666 249,220 981,414 Transfers from other funding options 415,355 102,040 306,532 163,058 592,633 1,273,602 Contract charges (563) (608) (203) (176) (3,753) (3,675) Contract surrenders (92,588) (118,046) (31,354) (5,150) (598,758) (501,079) Transfers to other funding options (297,871) (108,859) (282,829) (147,157) (502,059) (1,081,913) Other receipts (payments) (24,512) -- -- -- (479,639) (245,987) ---------- ---------- --------- --------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 6,745 (101,603) 30,468 117,241 (742,356) 422,362 ---------- ---------- --------- --------- ----------- ----------- Net increase (decrease) in net assets 301,900 225,668 76,122 182,970 (203,694) 1,815,027 NET ASSETS: Beginning of period 2,875,977 2,650,309 888,027 705,057 17,441,676 15,626,649 ---------- ---------- --------- --------- ----------- ----------- End of period $3,177,877 $2,875,977 $ 964,149 $ 888,027 $17,237,982 $17,441,676 ========== ========== ========= ========= =========== ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 64
DWSII MONEY MARKET DWSII SMALL CAP GROWTH SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) ------------------------ ---------------------- 2007 2006 2007 2006 ----------- ----------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 133,995 $ 89,664 $ (64,610) $ (61,628) Net realized gains (losses) -- -- 104,459 38,440 Change in unrealized gains (losses) on investments -- -- 61,972 100,656 ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 133,995 89,664 101,821 77,468 ----------- ----------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 328,695 410,693 52,832 278,354 Transfers from other funding options 9,396,879 6,923,741 543,978 292,218 Contract charges (818) (553) (623) (593) Contract surrenders (1,667,639) (556,025) (86,258) (115,485) Transfers to other funding options (8,336,607) (4,912,150) (485,589) (174,585) Other receipts (payments) (8,996) -- (18,483) (2,316) ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions (288,486) 1,865,706 5,857 277,593 ----------- ----------- ---------- ---------- Net increase (decrease) in net assets (154,491) 1,955,370 107,678 355,061 NET ASSETS: Beginning of period 4,919,873 2,964,503 3,043,223 2,688,162 ----------- ----------- ---------- ---------- End of period $ 4,765,382 $ 4,919,873 $3,150,901 $3,043,223 =========== =========== ========== ========== DWSII TECHNOLOGY DWSII TURNER MID CAP GROWTH SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) ---------------------- --------------------------- 2007 2006 2007 2006 ---------- ---------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (24,417) $ (25,551) $ (47,373) $ (43,932) Net realized gains (losses) 37,650 7,045 252,342 197,886 Change in unrealized gains (losses) on investments 71,963 (12,584) 260,457 (64,557) ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 85,196 (31,090) 465,426 89,397 ---------- ---------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 84,458 31,999 40,631 54,542 Transfers from other funding options 542,361 128,349 347,614 175,552 Contract charges (317) (409) (436) (432) Contract surrenders (50,185) (56,542) (61,014) (55,413) Transfers to other funding options (307,597) (198,669) (313,610) (202,054) Other receipts (payments) (3,440) (44,297) (7,060) -- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions 265,280 (139,569) 6,125 (27,805) ---------- ---------- ---------- ---------- Net increase (decrease) in net assets 350,476 (170,659) 471,551 61,592 NET ASSETS: Beginning of period 1,192,311 1,362,970 2,113,971 2,052,379 ---------- ---------- ---------- ---------- End of period $1,542,787 $1,192,311 $2,585,522 $2,113,971 ========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements. 65
FIDELITY VIP FIDELITY VIP CONTRAFUND DYNAMIC CAPITAL APPRECIATION FIDELITY VIP MID CAP SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE CLASS 2) (SERVICE CLASS 2) (SERVICE CLASS 2) ------------------------ ---------------------------- ------------------------ 2007 2006 2007 2006 2007 2006 ----------- ----------- ---------- ---------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (277,548) $ (192,375) $ (30,514) $ (23,164) $ (420,877) $ (461,646) Net realized gains (losses) 6,712,248 1,931,773 276,685 108,408 3,086,255 3,233,381 Change in unrealized gains (losses) on investments (3,121,266) 71,894 (154,341) 66,890 973,936 (258,591) ----------- ----------- ---------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 3,313,434 1,811,292 91,830 152,134 3,639,314 2,513,144 ----------- ----------- ---------- ---------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 310,331 2,032,476 3,180 14,349 592,186 1,679,991 Transfers from other funding options 2,707,685 2,068,079 234,616 257,160 2,171,755 2,599,742 Contract charges (6,988) (6,634) (218) (184) (8,956) (8,895) Contract surrenders (653,671) (345,152) (51,594) (11,709) (737,574) (547,710) Transfers to other funding options (1,832,363) (1,133,494) (326,395) (296,086) (2,964,944) (1,869,951) Other receipts (payments) (67,569) (13,242) -- -- (17,838) (114,979) ----------- ----------- ---------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 457,425 2,602,033 (140,411) (36,470) (965,371) 1,738,198 ----------- ----------- ---------- ---------- ----------- ----------- Net increase (decrease) in net assets 3,770,859 4,413,325 (48,581) 115,664 2,673,943 4,251,342 NET ASSETS: Beginning of period 22,196,058 17,782,733 1,532,924 1,417,260 27,992,606 23,741,264 ----------- ----------- ---------- ---------- ----------- ----------- End of period $25,966,917 $22,196,058 $1,484,343 $1,532,924 $30,666,549 $27,992,606 =========== =========== ========== ========== =========== ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 66
FTVIPT FRANKLIN FTVIPT FRANKLIN RISING DIVIDENDS SECURITIES SMALL MID-CAP GROWTH SECURITIES SUBACCOUNT SUBACCOUNT (CLASS 2) (CLASS 2) --------------------------- ------------------------------- 2007 2006 2007 2006 ----------- ----------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 72,839 $ (108,097) $ (114,287) $ (88,042) Net realized gains (losses) 528,502 208,846 556,222 103,802 Change in unrealized gains (losses) on investments (1,279,780) 1,660,377 (13,503) 285,461 ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations (678,439) 1,761,126 428,432 301,221 ----------- ----------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,163,280 2,022,600 527,309 978,769 Transfers from other funding options 1,541,454 1,263,572 2,290,289 516,711 Contract charges (3,973) (3,467) (2,181) (1,862) Contract surrenders (908,661) (695,092) (290,955) (377,784) Transfers to other funding options (2,053,077) (757,178) (664,058) (221,516) Other receipts (payments) (102,326) (205,445) (69,625) (251,313) ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions (363,303) 1,624,990 1,790,779 643,005 ----------- ----------- ---------- ---------- Net increase (decrease) in net assets (1,041,742) 3,386,116 2,219,211 944,226 NET ASSETS: Beginning of period 14,539,499 11,153,383 5,109,650 4,165,424 ----------- ----------- ---------- ---------- End of period $13,497,757 $14,539,499 $7,328,861 $5,109,650 =========== =========== ========== ========== FTVIPT TEMPLETON FTVIPT DEVELOPING MARKETS SECURITIES TEMPLETON FOREIGN SECURITIES SUBACCOUNT SUBACCOUNT (CLASS 2) (CLASS 2) ----------------------------- ---------------------------- 2007 2006 2007 2006 ----------- ----------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 43,650 $ (108,038) $ 13,645 $ (126,452) Net realized gains (losses) 2,269,169 371,607 1,794,862 228,189 Change in unrealized gains (losses) on investments 1,263,051 2,437,538 802,529 2,882,934 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 3,575,870 2,701,107 2,611,036 2,984,671 ----------- ----------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 442,641 939,500 1,429,652 1,853,819 Transfers from other funding options 3,059,905 2,651,594 2,598,997 2,256,695 Contract charges (3,634) (3,231) (5,432) (4,816) Contract surrenders (507,018) (111,436) (789,319) (489,647) Transfers to other funding options (3,310,951) (2,179,631) (3,611,403) (1,773,034) Other receipts (payments) (64,028) (31,814) (181,480) (166,748) ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions (383,085) 1,264,982 (558,985) 1,676,269 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets 3,192,785 3,966,089 2,052,051 4,660,940 NET ASSETS: Beginning of period 14,369,790 10,403,701 19,734,442 15,073,502 ----------- ----------- ----------- ----------- End of period $17,562,575 $14,369,790 $21,786,493 $19,734,442 =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 67
JANUS ASPEN GLOBAL JANUS ASPEN GLOBAL JANUS ASPEN LIFE SCIENCES TECHNOLOGY WORLDWIDE GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE SHARES) (SERVICE SHARES) (SERVICE SHARES) ------------------ -------------------- ------------------ 2007 2006 2007 2006 2007 2006 -------- -------- ---------- -------- -------- -------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (4,713) $ (4,846) $ (18,222) $(17,695) $ (3,605) $ (686) Net realized gains (losses) 14,564 5,662 19,478 13,782 9,782 1,761 Change in unrealized gains (losses) on investments 32,755 9,450 230,422 50,725 10,593 33,524 -------- -------- ---------- -------- -------- -------- Net increase (decrease) in net assets resulting from operations 42,606 10,266 231,678 46,812 16,770 34,599 -------- -------- ---------- -------- -------- -------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 523 366 9,733 112,490 45,403 567 Transfers from other funding options 73,829 2,452 1,711,332 185,486 15,576 4,205 Contract charges (79) (119) (326) (341) (49) (56) Contract surrenders (23,019) (4,246) (25,888) (9,889) (35,099) (5,976) Transfers to other funding options (25,539) (1,423) (69,566) (91,786) (3,359) (1,573) Other receipts (payments) -- -- -- (10,012) -- -- -------- -------- ---------- -------- -------- -------- Net increase (decrease) in net assets resulting from contract transactions 25,715 (2,970) 1,625,285 185,948 22,472 (2,833) -------- -------- ---------- -------- -------- -------- Net increase (decrease) in net assets 68,321 7,296 1,856,963 232,760 39,242 31,766 NET ASSETS: Beginning of period 237,597 230,301 999,185 766,425 250,705 218,939 -------- -------- ---------- -------- -------- -------- End of period $305,918 $237,597 $2,856,148 $999,185 $289,947 $250,705 ======== ======== ========== ======== ======== ========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 68
LMPVET AGGRESSIVE GROWTH LMPVET AGGRESSIVE GROWTH SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS II) ------------------------ ------------------------ 2007 (b) 2006 2007 (b) 2006 ----------- ------- ---------- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (104,025) $-- $ (94,182) $-- Net realized gains (losses) 27,610 -- 29,503 -- Change in unrealized gains (losses) on investments (293,058) -- (287,503) -- ----------- --- ---------- --- Net increase (decrease) in net assets resulting from operations (369,473) -- (352,182) -- ----------- --- ---------- --- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 164,743 -- 456,837 -- Transfers from other funding options 8,687,153 -- 7,481,772 -- Contract charges (2,233) -- (2,232) -- Contract surrenders (193,847) -- (176,646) -- Transfers to other funding options (1,076,515) -- (447,656) -- Other receipts (payments) (5,512) -- (18,561) -- ----------- --- ---------- --- Net increase (decrease) in net assets resulting from contract transactions 7,573,789 -- 7,293,514 -- ----------- --- ---------- --- Net increase (decrease) in net assets 7,204,316 -- 6,941,332 -- NET ASSETS: Beginning of period -- -- -- -- ----------- --- ---------- --- End of period $ 7,204,316 $-- $6,941,332 $-- =========== === ========== === LMPVET APPRECIATION LMPVET EQUITY INDEX SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS II) ------------------- ------------------------ 2007 (b) 2006 2007 2006 ---------- ---- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (4,869) $-- $ (48,783) $ (75,050) Net realized gains (losses) 139,279 -- 894,449 338,399 Change in unrealized gains (losses) on investments (89,742) -- (450,289) 1,293,047 ---------- --- ----------- ----------- Net increase (decrease) in net assets resulting from operations 44,668 -- 395,377 1,556,396 ---------- --- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 2,322 -- 289,062 769,934 Transfers from other funding options 1,760,798 -- 484,729 684,964 Contract charges (414) -- (4,857) (5,339) Contract surrenders (14,402) -- (390,577) (274,607) Transfers to other funding options (135,282) -- (1,056,406) (1,127,877) Other receipts (payments) (12,067) -- (31,531) (104,436) ---------- --- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 1,600,955 -- (709,580) (57,361) ---------- --- ----------- ----------- Net increase (decrease) in net assets 1,645,623 -- (314,203) 1,499,035 NET ASSETS: Beginning of period -- -- 13,421,871 11,922,836 ---------- --- ----------- ----------- End of period $1,645,623 $-- $13,107,668 $13,421,871 ========== === =========== ===========
The accompanying notes are an integral part of these financial statements. 69
LMPVET FUNDAMENTAL VALUE LMPVET INVESTORS LMPVET LARGE CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS I) (CLASS I) ------------------------ ---------------------- ----------------------- 2007 (b) 2006 2007 2006 2007 (b) 2006 ---------- ---- ---------- ---------- ---------- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (4,465) $ -- $ (22,690) $ (8,150) $ (32,767) $ -- Net realized gains (losses) 220,983 -- 126,649 113,805 2,557 -- Change in unrealized gains (losses) on investments (471,368) -- (40,968) 322,155 11,416 -- ---------- ---- ---------- ---------- ---------- ---- Net increase (decrease) in net assets resulting from operations (254,850) -- 62,991 427,810 (18,794) -- ---------- ---- ---------- ---------- ---------- ---- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 79,684 -- 35,796 237,656 12,532 -- Transfers from other funding options 4,976,878 -- 45,398 134,550 2,666,149 -- Contract charges (1,288) -- (916) (921) (985) -- Contract surrenders (123,772) -- (66,142) (54,063) (48,331) -- Transfers to other funding options (69,400) -- (89,608) (203,055) (170,943) -- Other receipts (payments) (17,122) -- -- -- -- -- ---------- ---- ---------- ---------- ---------- ---- Net increase (decrease) in net assets resulting from contract transactions 4,844,980 -- (75,472) 114,167 2,458,422 -- ---------- ---- ---------- ---------- ---------- ---- Net increase (decrease) in net assets 4,590,130 -- (12,481) 541,977 2,439,628 -- NET ASSETS: Beginning of period -- -- 3,092,100 2,550,123 -- -- ---------- ---- ---------- ---------- ---------- ---- End of period $4,590,130 $ -- $3,079,619 $3,092,100 $2,439,628 $ -- ========== ==== ========== ========== ========== ====
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 70
LMPVET SMALL CAP GROWTH LMPVPI ALL CAP LMPVPI ALL CAP SUBACCOUNT LMPVET SOCIAL AWARENESS SUBACCOUNT SUBACCOUNT (CLASS I) SUBACCOUNT (CLASS I) (CLASS II) ----------------------- ----------------------- ----------------------- ------------------- 2007 2006 2007 2006 2007 (a) 2006 2007 (a) 2006 ---------- ---------- ----------- --------- ----------- ---------- --------- -------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (98,141) $ (95,035) $ (4,521) $ (11,381) $ (14,484) $ (22,406) $ (1,258) $ 317 Net realized gains (losses) 441,835 307,334 161,855 2,776 990,488 199,926 24,053 7,676 Change in unrealized gains (losses) on investments 42,975 251,001 (74,669) 56,600 (760,158) 449,181 (11,222) 9,801 ---------- ---------- ----------- --------- ----------- ---------- --------- -------- Net increase (decrease) in net assets resulting from operations 386,669 463,300 82,665 47,995 215,846 626,701 11,573 17,794 ---------- ---------- ----------- --------- ----------- ---------- --------- -------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 80,158 243,120 1,876 57,870 11,997 146,402 20,948 183,253 Transfers from other funding options 135,820 527,588 17,118 61,974 20,317 80,010 109 2,208 Contract charges (1,701) (1,740) (458) (435) (4) (1,225) -- (18) Contract surrenders (245,060) (154,261) (3,546) (4,931) (25,835) (90,196) (914) (1,142) Transfers to other funding options (315,930) (607,551) (7,057) (15,852) (4,692,179) (144,839) (257,046) (256) Other receipts (payments) (44,926) (36,982) -- -- (74,586) -- -- -- ---------- ---------- ----------- --------- ----------- ---------- --------- -------- Net increase (decrease) in net assets resulting from contract transactions (391,639) (29,826) 7,933 98,626 (4,760,290) (9,848) (236,903) 184,045 ---------- ---------- ----------- --------- ----------- ---------- --------- -------- Net increase (decrease) in net assets (4,970) 433,474 90,598 146,621 (4,544,444) 616,853 (225,330) 201,839 NET ASSETS: Beginning of period 4,925,899 4,492,425 925,855 779,234 4,544,444 3,927,591 225,330 23,491 ---------- ---------- ----------- --------- ----------- ---------- --------- -------- End of period $4,920,929 $4,925,899 $ 1,016,453 $ 925,855 $ -- $4,544,444 $ -- $225,330 ========== ========== =========== ========= =========== ========== ========= ========
The accompanying notes are an integral part of these financial statements. 71
LMPVPII GROWTH AND INCOME LMPVPI LARGE CAP GROWTH LMPVPII AGGRESSIVE GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS I) (CLASS I) -------------------------- -------------------------- -------------------------- 2007 (a) 2006 2007 (a) 2006 2007 (a) 2006 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (9,183) $ (23,196) $ (16,411) $ (49,824) $ (52,997) $ (163,818) Net realized gains (losses) 348,685 21,591 393,380 29,137 1,927,125 143,032 Change in unrealized gains (losses) on investments (267,009) 156,564 (271,145) 81,311 (1,587,920) 716,481 ----------- ---------- ----------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from operations 72,493 154,959 105,824 60,624 286,208 695,695 ----------- ---------- ----------- ---------- ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 21,393 29,453 36,032 133,332 69,005 773,934 Transfers from other funding options 3,948 67,774 14,217 149,840 187,437 339,982 Contract charges (5) (436) -- (1,019) (7) (2,690) Contract surrenders (9,348) (39,034) (41,194) (31,012) (73,333) (194,003) Transfers to other funding options (1,758,647) (26,288) (2,691,716) (354,249) (8,839,010) (737,160) Other receipts (payments) -- (6,526) (33,971) -- (91,762) (66,802) ----------- ---------- ----------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions (1,742,659) 24,943 (2,716,632) (103,108) (8,747,670) 113,261 ----------- ---------- ----------- ---------- ----------- ---------- Net increase (decrease) in net assets (1,670,166) 179,902 (2,610,808) (42,484) (8,461,462) 808,956 NET ASSETS: Beginning of period 1,670,166 1,490,264 2,610,808 2,653,292 8,461,462 7,652,506 ----------- ---------- ----------- ---------- ----------- ---------- End of period $ -- $1,670,166 $ -- $2,610,808 $ -- $8,461,462 =========== ========== =========== ========== =========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 72
LMPVPII AGGRESSIVE GROWTH LMPVET CAPITAL AND INCOME SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) -------------------------- -------------------------- 2007 (a) 2006 2007 (b) 2006 ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (43,131) $ (120,910) $ (1,938) $-- Net realized gains (losses) 1,428,336 118,217 765,601 -- Change in unrealized gains (losses) on investments (1,154,276) 503,219 (770,491) -- ----------- ---------- ---------- --- Net increase (decrease) in net assets resulting from operations 230,929 500,526 (6,828) -- ----------- ---------- ---------- --- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 187,589 1,785,627 254,815 -- Transfers from other funding options 246,145 427,438 4,884,900 -- Contract charges (17) (1,954) (1,383) -- Contract surrenders (153,377) (277,122) (101,451) -- Transfers to other funding options (7,603,394) (502,030) (222,524) -- Other receipts (payments) (39,460) (12,664) (26,556) -- ----------- ---------- ---------- --- Net increase (decrease) in net assets resulting from contract transactions (7,362,514) 1,419,295 4,787,801 -- ----------- ---------- ---------- --- Net increase (decrease) in net assets (7,131,585) 1,919,821 4,780,973 -- NET ASSETS: Beginning of period 7,131,585 5,211,764 -- -- ----------- ---------- ---------- --- End of period $ -- $7,131,585 $4,780,973 $-- =========== ========== ========== === LMPVPI TOTAL RETURN LMPVIT ADJUSTABLE RATE INCOME SUBACCOUNT SUBACCOUNT (CLASS II) ----------------------------- ------------------------- 2007 2006 2007 (a) 2006 ------------ --------------- ------------ ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 64,288 $ 70,619 $ (1,113) $ 13,187 Net realized gains (losses) (1,954) 3,332 422,705 108,496 Change in unrealized gains (losses) on investments (72,946) (8,331) (299,259) 253,320 ---------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from operations (10,612) 65,620 122,333 375,003 ---------- ---------- ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,416 121,892 187,846 1,347,454 Transfers from other funding options 112,197 868,401 100,687 258,080 Contract charges (668) (777) (4) (1,163) Contract surrenders (127,793) (76,086) (132,480) (102,544) Transfers to other funding options (476,238) (893,533) (4,547,209) (90,927) Other receipts (payments) (15,802) (561,193) (25,986) (82,439) ---------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions (506,888) (541,296) (4,417,146) 1,328,461 ---------- ---------- ----------- ---------- Net increase (decrease) in net assets (517,500) (475,676) (4,294,813) 1,703,464 NET ASSETS: Beginning of period 2,941,227 3,416,903 4,294,813 2,591,349 ---------- ---------- ----------- ---------- End of period $2,423,727 $2,941,227 $ -- $4,294,813 ========== ========== =========== ==========
The accompanying notes are an integral part of these financial statements. 73
LORD ABBETT LORD ABBETT MIST BATTERYMARCH GROWTH AND INCOME MID-CAP VALUE MID-CAP STOCK SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS VC) (CLASS VC) (CLASS A) ------------------------- ------------------------- ---------------------- 2007 (a) 2006 2007 (a) 2006 2007 2006 (c) ------------ ----------- ------------ ----------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (96,432) $ (100,159) $ (84,052) $ (186,978) $ (87,638) $ (66,133) Net realized gains (losses) 2,133,663 527,878 2,182,490 1,090,747 672,887 (21,896) Change in unrealized gains (losses) on investments (1,472,754) 1,484,319 (801,611) 292,716 (362,707) (191,425) ------------ ----------- ------------ ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 564,477 1,912,038 1,296,827 1,196,485 222,542 (279,454) ------------ ----------- ------------ ----------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 90,915 578,596 48,049 445,233 81,108 19,891 Transfers from other funding options 97,809 1,074,212 155,235 765,592 262,383 5,764,668 Contract charges (14) (4,278) (8) (3,745) (1,336) (1,369) Contract surrenders (68,038) (240,488) (106,862) (386,799) (187,607) (60,583) Transfers to other funding options (15,670,309) (574,292) (14,405,873) (1,549,227) (331,657) (175,130) Other receipts (payments) (49,700) (82,956) (24,442) (76,270) (17,800) -- ------------ ----------- ------------ ----------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions (15,599,337) 750,794 (14,333,901) (805,216) (194,909) 5,547,477 ------------ ----------- ------------ ----------- ---------- ---------- Net increase (decrease) in net assets (15,034,860) 2,662,832 (13,037,074) 391,269 27,633 5,268,023 NET ASSETS: Beginning of period 15,034,860 12,372,028 13,037,074 12,645,805 5,268,023 -- ------------ ----------- ------------ ----------- ---------- ---------- End of period $ -- $15,034,860 $ -- $13,037,074 $5,295,656 $5,268,023 ============ =========== ============ =========== ========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 74
MIST BLACKROCK HIGH YIELD MIST BLACKROCK LARGE-CAP CORE SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS E) ------------------------- ----------------------------- 2007 2006 (c) 2007 (b) 2006 ------------ ----------- ------------ --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 362,912 $ (66,719) $ (62,893) $-- Net realized gains (losses) (4,093) 5,441 15,733 -- Change in unrealized gains (losses) on investments (523,685) 316,030 38,779 -- ----------- ---------- ---------- --- Net increase (decrease) in net assets resulting from operations (164,866) 254,752 (8,381) -- ----------- ---------- ---------- --- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 87,026 55,615 8,627 -- Transfers from other funding options 8,090,752 5,238,239 5,176,381 -- Contract charges (3,753) (1,443) (950) -- Contract surrenders (407,005) (91,532) (123,211) -- Transfers to other funding options (1,143,630) (179,465) (800,688) -- Other receipts (payments) -- (9,637) -- -- ----------- ---------- ---------- --- Net increase (decrease) in net assets resulting from contract transactions 6,623,390 5,011,777 4,260,159 -- Net increase (decrease) in net assets 6,458,524 5,266,529 4,251,778 -- NET ASSETS: Beginning of period 5,266,529 -- -- -- ----------- ---------- ---------- --- End of period $11,725,053 $5,266,529 $4,251,778 $-- =========== ========== ========== === MIST BLACKROCK LARGE-CAP CORE MIST DREMAN SMALL-CAP VALUE SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) ----------------------------- --------------------------- 2007 (a) 2006 (c) 2007 2006 (c) ------------ --------------- ----------- -------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 2,468 $ (63,236) $ (9,944) $ (1,264) Net realized gains (losses) 549,289 (7,192) 14,999 4,574 Change in unrealized gains (losses) on investments (323,399) 323,399 (23,082) 21,871 ----------- ---------- --------- --------- Net increase (decrease) in net assets resulting from operations 228,358 252,971 (18,027) 25,181 ----------- ---------- --------- --------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 9,418 37,948 1,480 4,113 Transfers from other funding options 16,864 4,904,678 431,456 476,434 Contract charges (4) (1,008) (129) (47) Contract surrenders (28,141) (28,802) (13,972) (3,486) Transfers to other funding options (5,107,379) (238,238) (273,000) (130,998) Other receipts (payments) (23,618) (23,047) -- -- ----------- ---------- --------- --------- Net increase (decrease) in net assets resulting from contract transactions (5,132,860) 4,651,531 145,835 346,016 Net increase (decrease) in net assets (4,904,502) 4,904,502 127,808 371,197 NET ASSETS: Beginning of period 4,904,502 -- 371,197 -- ----------- ---------- --------- --------- End of period $ -- $4,904,502 $ 499,005 $ 371,197 =========== ========== ========= =========
The accompanying notes are an integral part of these financial statements. 75
MIST HARRIS OAKMARK INTERNATIONAL MIST JANUS FORTY MIST LAZARD MID-CAP SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS B) ----------------------- ----------------------- ------------------- 2007 2006 (c) 2007 2006 (c) 2007 (b) 2006 ----------- ---------- ----------- ---------- -------- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (76,379) $ (67,019) $ (157,751) $ (105,402) $ (6,119) $-- Net realized gains (losses) 694,855 (1,133) 1,475,324 (30,905) (1,201) -- Change in unrealized gains (losses) on investments (855,323) 626,947 957,135 302,770 (54,598) -- ----------- ---------- ----------- ---------- -------- --- Net increase (decrease) in net assets resulting from operations (236,847) 558,795 2,274,708 166,463 (61,918) -- ----------- ---------- ----------- ---------- -------- --- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 141,470 35,614 192,817 250,526 636 -- Transfers from other funding options 2,645,124 6,166,803 862,175 8,746,409 510,526 -- Contract charges (1,858) (1,545) (2,679) (2,875) (117) -- Contract surrenders (328,060) (103,008) (189,053) (142,853) (6,282) -- Transfers to other funding options (1,221,885) (375,036) (816,721) (708,739) (12,906) -- Other receipts (payments) (44,395) (14,979) (3,125) (16,498) -- -- ----------- ---------- ----------- ---------- -------- --- Net increase (decrease) in net assets resulting from contract transactions 1,190,396 5,707,849 43,414 8,125,970 491,857 -- ----------- ---------- ----------- ---------- -------- --- Net increase (decrease) in net assets 953,549 6,266,644 2,318,122 8,292,433 429,939 -- NET ASSETS: Beginning of period 6,266,644 -- 8,292,433 -- -- -- ----------- ---------- ----------- ---------- -------- --- End of period $ 7,220,193 $6,266,644 $10,610,555 $8,292,433 $429,939 $-- =========== ========== =========== ========== ======== ===
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 76
MIST LEGG MASON PARTNERS MIST LORD ABBETT MANAGED ASSETS BOND DEBENTURE SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) ------------------------ ---------------------- 2007 2006 (c) 2007 2006 (c) ---------- ---------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 18,593 $ (54,382) $ 149,659 $ (46,782) Net realized gains (losses) 377,258 953 54,405 2,671 Change in unrealized gains (losses) on investments (213,538) 270,959 (8,594) 212,983 ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 182,313 217,530 195,470 168,872 ---------- ---------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 79,059 50,315 21,154 23,661 Transfers from other funding options 63,859 4,337,962 715,209 4,200,812 Contract charges (1,290) (1,350) (762) (809) Contract surrenders (105,365) (93,707) (221,633) (135,709) Transfers to other funding options (80,450) (202,234) (735,471) (153,144) Other receipts (payments) (67,929) -- (22,734) (67,176) ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions (112,116) 4,090,986 (244,237) 3,867,635 ---------- ---------- ---------- ---------- Net increase (decrease) in net assets 70,197 4,308,516 (48,767) 4,036,507 NET ASSETS: Beginning of period 4,308,516 -- 4,036,507 -- ---------- ---------- ---------- ---------- End of period $4,378,713 $4,308,516 $3,987,740 $4,036,507 ========== ========== ========== ========== MIST LORD ABBETT MIST LORD ABBETT GROWTH AND INCOME MID-CAP VALUE SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) ------------------------ --------------------- 2007 2006 (c) 2007 2006 (c) ----------- ----------- ----------- -------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (307,043) $ (169,137) $ (179,502) $ (663) Net realized gains (losses) 839,233 6,359 (33,352) 298 Change in unrealized gains (losses) on investments (502,781) 1,219,016 (1,251,102) 11,651 ----------- ----------- ----------- -------- Net increase (decrease) in net assets resulting from operations 29,409 1,056,238 (1,463,956) 11,286 ----------- ----------- ----------- -------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 422,190 254,487 282,477 9,360 Transfers from other funding options 16,154,195 14,753,303 14,872,203 94,632 Contract charges (7,313) (3,557) (3,641) (14) Contract surrenders (914,445) (222,994) (380,700) (27) Transfers to other funding options (2,388,078) (427,718) (1,108,221) (8,536) Other receipts (payments) (131,414) (65,404) (27,436) -- ----------- ----------- ----------- -------- Net increase (decrease) in net assets resulting from contract transactions 13,135,135 14,288,117 13,634,682 95,415 ----------- ----------- ----------- -------- Net increase (decrease) in net assets 13,164,544 15,344,355 12,170,726 106,701 NET ASSETS: Beginning of period 15,344,355 -- 106,701 -- ----------- ----------- ----------- -------- End of period $28,508,899 $15,344,355 $12,277,427 $106,701 =========== =========== =========== ========
The accompanying notes are an integral part of these financial statements. 77
MIST MET/AIM MIST MET/AIM MIST MET/AIM CAPITAL APPRECIATION CAPITAL APPRECIATION SMALL CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS E) (CLASS A) ---------------------- -------------------- -------------------- 2007 2006 (c) 2007 (b) 2006 2007 2006 (c) ---------- ---------- ---------- -------- -------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (53,279) $ (30,846) $ (85,415) $-- $ (6,399) $ (1,853) Net realized gains (losses) (4,092) 326,069 10,334 -- 8,882 1,773 Change in unrealized gains (losses) on investments 324,540 (341,583) 254,599 -- 6,763 1,191 ---------- ---------- ---------- --- --------- -------- Net increase (decrease) in net assets resulting from operations 267,169 (46,360) 179,518 -- 9,246 1,111 ---------- ---------- ---------- --- --------- -------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 24,862 80,148 357,872 -- 16,125 21,371 Transfers from other funding options 97,793 2,894,147 7,018,014 -- 424,491 171,589 Contract charges (828) (862) (2,145) -- (149) (47) Contract surrenders (87,925) (127,104) (153,563) -- (47,333) (124) Transfers to other funding options (141,717) (38,026) (607,457) -- (153,154) (3,738) Other receipts (payments) (22,750) -- (15,522) -- -- -- ---------- ---------- ---------- --- --------- -------- Net increase (decrease) in net assets resulting from contract transactions (130,565) 2,808,303 6,597,199 -- 239,980 189,051 ---------- ---------- ---------- --- --------- -------- Net increase (decrease) in net assets 136,604 2,761,943 6,776,717 -- 249,226 190,162 NET ASSETS: Beginning of period 2,761,943 -- -- -- 190,162 -- ---------- ---------- ---------- --- --------- -------- End of period $2,898,547 $2,761,943 $6,776,717 $-- $ 439,388 $190,162 ========== ========== ========== === ========= ========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 78
MIST MFS EMERGING MIST MFS RESEARCH MIST NEUBERGER BERMAN MARKETS EQUITY INTERNATIONAL MIST MFS VALUE REAL ESTATE SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS A) (CLASS A) ----------------- ----------------- ---------------------- ------------------------- 2007 (b) 2006 2007 (b) 2006 2007 2006 (c) 2007 2006 (c) ---------- ----- ---------- ----- ---------- ---------- ----------- ------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (70,691) $-- $ (14,724) $-- $ (174,151) $ 1,035 $ (128,956) $ (207,599) Net realized gains (losses) 108,210 -- 2,006 -- 272,309 336,978 1,687,251 110,595 Change in unrealized gains (losses) on investments 1,139,133 -- 65,605 -- 358,674 409,706 (4,223,659) 3,263,550 ---------- --- ---------- --- ---------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 1,176,652 -- 52,887 -- 456,832 747,719 (2,665,364) 3,166,546 ---------- --- ---------- --- ---------- ---------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 153,442 -- 36,430 -- 198,113 203,620 304,935 373,442 Transfers from other funding options 5,634,569 -- 2,034,165 -- 1,889,901 7,707,291 1,886,078 15,945,212 Contract charges (972) -- (240) -- (2,274) (1,982) (4,986) (5,793) Contract surrenders (144,427) -- (20,060) -- (397,118) (280,806) (816,985) (396,766) Transfers to other funding options (797,616) -- (67,308) -- (970,813) (290,136) (3,572,093) (1,130,589) Other receipts (payments) (3,094) -- -- -- (43,967) -- (60,739) (45,594) ---------- --- ---------- --- ---------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 4,841,902 -- 1,982,987 -- 673,842 7,337,987 (2,263,790) 14,739,912 ---------- --- ---------- --- ---------- ---------- ----------- ----------- Net increase (decrease) in net assets 6,018,554 -- 2,035,874 -- 1,130,674 8,085,706 (4,929,154) 17,906,458 NET ASSETS: Beginning of period -- -- -- -- 8,085,706 -- 17,906,458 -- ---------- --- ---------- --- ---------- ---------- ----------- ----------- End of period $6,018,554 $-- $2,035,874 $-- $9,216,380 $8,085,706 $12,977,304 $17,906,458 ========== === ========== === ========== ========== =========== ===========
The accompanying notes are an integral part of these financial statements. 79
MIST OPPENHEIMER MIST PIMCO INFLATION CAPITAL APPRECIATION PROTECTED BOND MIST PIONEER FUND SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS A) (CLASS A) ---------------------- -------------------- ---------------------- 2007 2006 (c) 2007 (b) 2006 2007 2006 (c) ---------- ---------- ----------- ---- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (116,761) $ (64,493) $ (150,694) $-- $ (13,786) $ (16,608) Net realized gains (losses) 432,496 (16,184) 24,102 -- 59,189 1,161 Change in unrealized gains (losses) on investments 335,584 167,915 810,364 -- 1,961 108,210 ---------- ---------- ----------- --- ---------- ---------- Net increase (decrease) in net assets resulting from operations 651,319 87,238 683,772 -- 47,364 92,763 ---------- ---------- ----------- --- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 488,980 712,505 45,265 -- 954 7,313 Transfers from other funding options 1,288,621 5,437,258 12,489,099 -- 109,093 1,298,290 Contract charges (1,868) (1,758) (3,187) -- (285) (285) Contract surrenders (294,736) (114,790) (363,615) -- (145,415) (18,744) Transfers to other funding options (867,024) (416,857) (861,169) -- (283,051) (11,965) Other receipts (payments) (72,172) (86,889) (13,282) -- -- -- ---------- ---------- ----------- --- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions 541,801 5,529,469 11,293,111 -- (318,704) 1,274,609 ---------- ---------- ----------- --- ---------- ---------- Net increase (decrease) in net assets 1,193,120 5,616,707 11,976,883 -- (271,340) 1,367,372 NET ASSETS: Beginning of period 5,616,707 -- -- -- 1,367,372 -- ---------- ---------- ----------- --- ---------- ---------- End of period $6,809,827 $5,616,707 $11,976,883 $-- $1,096,032 $1,367,372 ========== ========== =========== === ========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 80
MIST PIONEER MID-CAP VALUE MIST PIONEER STRATEGIC INCOME SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) -------------------------- ----------------------------- 2007 (a) 2006 (c) 2007 2006 (c) --------- -------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (912) $ (4,242) $ (115,724) $ 311,067 Net realized gains (losses) 70,390 6,556 23,086 8,461 Change in unrealized gains (losses) on investments (22,913) 22,913 511,935 (29,805) --------- -------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 46,565 25,227 419,297 289,723 --------- -------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 4,944 25,261 61,431 73,463 Transfers from other funding options 3,524 460,166 1,049,246 9,487,051 Contract charges -- (111) (2,162) (2,307) Contract surrenders (440) (4,588) (321,785) (130,452) Transfers to other funding options (521,123) (4,333) (760,979) (450,839) Other receipts (payments) -- (35,092) (33,357) (81,419) --------- -------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions (513,095) 441,303 (7,606) 8,895,497 --------- -------- ---------- ---------- Net increase (decrease) in net assets (466,530) 466,530 411,691 9,185,220 NET ASSETS: Beginning of period 466,530 -- 9,185,220 -- --------- -------- ---------- ---------- End of period $ -- $466,530 $9,596,911 $9,185,220 ========= ======== ========== ========== MIST THIRD AVENUE MSF BLACKROCK SMALL CAP VALUE AGGRESSIVE GROWTH SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS D) ------------------------ ---------------------- 2007 2006 (c) 2007 2006 (c) ----------- ----------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (297,607) $ (99,480) $ (100,116) $ (60,848) Net realized gains (losses) 672,144 (2,289) 49,747 (9,735) Change in unrealized gains (losses) on investments (2,462,404) 373,765 926,137 (51,592) ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations (2,087,867) 271,996 875,768 (122,175) ----------- ----------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 442,010 146,388 93,087 40,666 Transfers from other funding options 16,622,982 12,096,576 551,620 5,191,371 Contract charges (8,108) (1,758) (1,397) (1,400) Contract surrenders (1,108,507) (244,609) (229,644) (101,681) Transfers to other funding options (2,530,412) (167,558) (324,716) (100,328) Other receipts (payments) (61,732) -- (33,630) (19,625) ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions 13,356,233 11,829,039 55,320 5,009,003 ----------- ----------- ---------- ---------- Net increase (decrease) in net assets 11,268,366 12,101,035 931,088 4,886,828 NET ASSETS: Beginning of period 12,101,035 -- 4,886,828 -- ----------- ----------- ---------- ---------- End of period $23,369,401 $12,101,035 $5,817,916 $4,886,828 =========== =========== ========== ==========
The accompanying notes are an integral part of these financial statements. 81
MSF BLACKROCK BOND INCOME MSF BLACKROCK MONEY MARKET MSF FI LARGE CAP SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) ------------------------- ---------------------------- ---------------------- 2007 2006 (c) 2007 2006 (c) 2007 2006 (c) ---------- ---------- ------------ ------------ ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 107,100 $ (104,100) $ 835,049 $ 427,746 $ (86,260) $ (61,579) Net realized gains (losses) 40,283 8,614 -- -- 332,871 (12,487) Change in unrealized gains (losses) on investments 205,044 382,878 -- -- (148,568) 123,803 ---------- ---------- ------------ ------------ ---------- ---------- Net increase (decrease) in net assets resulting from operations 352,427 287,392 835,049 427,746 98,043 49,737 ---------- ---------- ------------ ------------ ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 56,851 280,480 4,632,317 5,472,436 72,653 38,880 Transfers from other funding options 724,406 8,297,101 30,971,588 29,303,741 78,907 5,006,130 Contract charges (2,792) (2,933) (7,170) (6,114) (1,377) (1,448) Contract surrenders (420,040) (128,907) (6,319,569) (1,082,926) (292,225) (81,878) Transfers to other funding options (365,389) (452,070) (18,346,813) (11,000,839) (226,509) (147,673) Other receipts (payments) (80,708) (94,947) (214,864) (127,971) (38,133) -- ---------- ---------- ------------ ------------ ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions (87,672) 7,898,724 10,715,489 22,558,327 (406,684) 4,814,011 ---------- ---------- ------------ ------------ ---------- ---------- Net increase (decrease) in net assets 264,755 8,186,116 11,550,538 22,986,073 (308,641) 4,863,748 NET ASSETS: Beginning of period 8,186,116 -- 22,986,073 -- 4,863,748 -- ---------- ---------- ------------ ------------ ---------- ---------- End of period $8,450,871 $8,186,116 $ 34,536,611 $ 22,986,073 $4,555,107 $4,863,748 ========== ========== ============ ============ ========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 82
MSF METLIFE AGGRESSIVE MSF FI VALUE LEADERS ALLOCATION SUBACCOUNT SUBACCOUNT (CLASS D) (CLASS B) ------------------------ ----------------------- 2007 2006 (c) 2007 2006 (c) ----------- ----------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (129,129) $ (141,256) $ (40,949) $ (20,880) Net realized gains (losses) 1,048,151 (5,539) 24,075 (1,689) Change in unrealized gains (losses) on investments (661,337) 399,189 13,243 111,994 ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 257,685 252,394 (3,631) 89,425 ----------- ----------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 320,866 180,953 57,981 50,481 Transfers from other funding options 351,739 11,075,041 575,785 1,661,481 Contract charges (3,281) (3,406) (1,079) (726) Contract surrenders (315,656) (208,579) (35,823) (40,728) Transfers to other funding options (608,769) (189,704) (201,104) (4,383) Other receipts (payments) (1,851) (30,376) -- (89,561) ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions (256,952) 10,823,929 395,760 1,576,564 ----------- ----------- ---------- ---------- Net increase (decrease) in net assets 733 11,076,323 392,129 1,665,989 NET ASSETS: Beginning of period 11,076,323 -- 1,665,989 -- ----------- ----------- ---------- ---------- End of period $11,077,056 $11,076,323 $2,058,118 $1,665,989 =========== =========== ========== ========== MSF METLIFE CONSERVATIVE MSF METLIFE CONSERVATIVE ALLOCATION TO MODERATE ALLOCATION SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) ------------------------ ------------------------ 2007 2006 (c) 2007 2006 (c) ---------- ---------- ----------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (48,656) $ (33,674) $ (60,710) $ (22,538) Net realized gains (losses) 60,727 5,248 59,139 (50) Change in unrealized gains (losses) on investments 65,380 143,963 47,336 111,973 ---------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from operations 77,451 115,537 45,765 89,385 ---------- ---------- ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 5,576 17,222 267,277 71,199 Transfers from other funding options 897,600 2,611,576 3,107,057 1,878,219 Contract charges (393) (351) (1,036) (829) Contract surrenders (75,345) (44,508) (1,341,761) (11,382) Transfers to other funding options (800,265) (4,759) (76,792) (1,602) Other receipts (payments) -- -- -- (85,875) ---------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions 27,173 2,579,180 1,954,745 1,849,730 ---------- ---------- ----------- ---------- Net increase (decrease) in net assets 104,624 2,694,717 2,000,510 1,939,115 NET ASSETS: Beginning of period 2,694,717 -- 1,939,115 -- ---------- ---------- ----------- ---------- End of period $2,799,341 $2,694,717 $ 3,939,625 $1,939,115 ========== ========== =========== ==========
The accompanying notes are an integral part of these financial statements. 83
MSF METLIFE MSF METLIFE MODERATE TO MODERATE ALLOCATION AGGRESSIVE ALLOCATION MSF MFS TOTAL RETURN SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ------------------------ ----------------------- ---------------------- 2007 2006 (c) 2007 2006 (c) 2007 2006 (c) ----------- ----------- ----------- ---------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (253,906) $ (141,228) $ (145,100) $ (90,249) $ (8,799) $ (51,904) Net realized gains (losses) 144,105 (14,208) 308,978 (32,440) 181,287 5,810 Change in unrealized gains (losses) on investments 349,440 691,802 30,367 481,484 (106,545) 306,914 ----------- ----------- ----------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 239,639 536,366 194,245 358,795 65,943 260,820 ----------- ----------- ----------- ---------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 287,039 314,604 262,356 114,877 439,275 55,068 Transfers from other funding options 2,385,272 10,944,813 1,582,231 7,151,786 1,318,592 4,199,867 Contract charges (3,170) (2,456) (2,790) (2,017) (888) (881) Contract surrenders (434,510) (197,497) (215,285) (63,866) (198,893) (54,601) Transfers to other funding options (856,998) (295,564) (1,981,551) (474,430) (305,811) (260,197) Other receipts (payments) (98,739) (174,610) (250,147) -- (32,325) (1,847) ----------- ----------- ----------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions 1,278,894 10,589,290 (605,186) 6,726,350 1,219,950 3,937,409 ----------- ----------- ----------- ---------- ---------- ---------- Net increase (decrease) in net assets 1,518,533 11,125,656 (410,941) 7,085,145 1,285,893 4,198,229 NET ASSETS: Beginning of period 11,125,656 -- 7,085,145 -- 4,198,229 -- ----------- ----------- ----------- ---------- ---------- ---------- End of period $12,644,189 $11,125,656 $ 6,674,204 $7,085,145 $5,484,122 $4,198,229 =========== =========== =========== ========== ========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 84
MSF OPPENHEIMER MSF MFS TOTAL RETURN GLOBAL EQUITY SUBACCOUNT SUBACCOUNT (CLASS F) (CLASS B) ------------------------ ------------------------ 2007 2006 (c) 2007 2006 (c) ----------- ----------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 7,732 $ (432,641) $ (357,805) $ (407,254) Net realized gains (losses) 1,410,637 42,006 1,126,445 (74,812) Change in unrealized gains (losses) on investments (670,943) 2,583,830 822,708 2,222,408 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 747,426 2,193,195 1,591,348 1,740,342 ----------- ----------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 401,822 813,564 1,181,304 1,515,439 Transfers from other funding options 1,187,260 33,494,651 1,334,790 34,564,009 Contract charges (11,007) (11,377) (8,879) (8,617) Contract surrenders (1,123,813) (648,058) (1,161,257) (456,742) Transfers to other funding options (2,161,949) (1,274,183) (4,691,124) (2,117,664) Other receipts (payments) (141,822) (139,316) (86,026) (124,128) ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions (1,849,509) 32,235,281 (3,431,192) 33,372,297 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets (1,102,083) 34,428,476 (1,839,844) 35,112,639 NET ASSETS: Beginning of period 34,428,476 -- 35,112,639 -- ----------- ----------- ----------- ----------- End of period $33,326,393 $34,428,476 $33,272,795 $35,112,639 =========== =========== =========== =========== MSF WESTERN MSF T. ROWE PRICE ASSET MANAGEMENT LARGE CAP GROWTH HIGH YIELD BOND SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS A) ---------------------- ----------------------- 2007 2006 (c) 2007 (a) 2006 (c) ---------- ---------- ----------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (44,612) $ (31,862) $ 712,108 $ (88,498) Net realized gains (losses) 50,343 6,115 58,857 13,376 Change in unrealized gains (losses) on investments 164,458 194,772 (497,478) 497,478 ---------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from operations 170,189 169,025 273,487 422,356 ---------- ---------- ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 11,586 1,362 39,841 95,216 Transfers from other funding options 246,254 2,626,077 398,977 7,409,746 Contract charges (392) (470) (14) (2,551) Contract surrenders (104,152) (51,035) (82,306) (152,565) Transfers to other funding options (115,830) (222,432) (7,937,563) (376,472) Other receipts (payments) -- -- (12,154) (75,998) ---------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions 37,466 2,353,502 (7,593,219) 6,897,376 ---------- ---------- ----------- ---------- Net increase (decrease) in net assets 207,655 2,522,527 (7,319,732) 7,319,732 NET ASSETS: Beginning of period 2,522,527 -- 7,319,732 -- ---------- ---------- ----------- ---------- End of period $2,730,182 $2,522,527 $ -- $7,319,732 ========== ========== =========== ==========
The accompanying notes are an integral part of these financial statements. 85
MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT PIMCO VIT REAL RETURN PIMCO VIT TOTAL RETURN SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (ADMINISTRATIVE CLASS) (ADMINISTRATIVE CLASS) ---------------------------- ------------------------- ------------------------ 2007 2006 (c) 2007 (a) 2006 2007 2006 ---------- ---------- ---------- ----------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 63,106 $ (71,714) $ 103,446 $ 268,708 $ 749,690 $ 626,122 Net realized gains (losses) 50,596 13,736 (699,546) 260,253 (84,476) 88,236 Change in unrealized gains (losses) on investments 43,861 263,997 811,182 (664,975) 1,029,439 (233,164) ---------- ---------- ------------ ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 157,563 206,019 215,082 (136,014) 1,694,653 481,194 ---------- ---------- ------------ ----------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 46,661 81,080 77,317 598,422 187,484 1,148,037 Transfers from other funding options 637,378 6,731,173 442,120 1,386,466 2,340,729 2,943,855 Contract charges (1,916) (2,090) (8) (3,451) (7,943) (8,449) Contract surrenders (656,978) (161,437) (118,544) (408,641) (1,352,693) (691,486) Transfers to other funding options (564,902) (462,331) (11,870,289) (1,138,470) (1,913,024) (1,278,335) Other receipts (payments) (34,201) (47,333) (51,349) (46,014) (109,648) (128,581) ---------- ---------- ------------ ----------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions (573,958) 6,139,062 (11,520,753) 388,312 (855,095) 1,985,041 ---------- ---------- ------------ ----------- ----------- ----------- Net increase (decrease) in net assets (416,395) 6,345,081 (11,305,671) 252,298 839,558 2,466,235 NET ASSETS: Beginning of period 6,345,081 -- 11,305,671 11,053,373 26,181,299 23,715,064 ---------- ---------- ------------ ----------- ----------- ----------- End of period $5,928,686 $6,345,081 $ -- $11,305,671 $27,020,857 $26,181,299 ========== ========== ============ =========== =========== ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 86
PIONEER AMERICA INCOME VCT PIONEER BOND VCT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) -------------------------- ---------------- 2007 (d) 2006 2007 (e) 2006 ------------ ----------- ---------- --- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 217,100 $ 185,865 $ 36,333 $-- Net realized gains (losses) (93,308) (52,093) 656 -- Change in unrealized gains (losses) on investments 208,007 (36,922) 68,283 -- ------------ ----------- ---------- --- Net increase (decrease) in net assets resulting from operations 331,799 96,850 105,272 -- ------------ ----------- ---------- --- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,049,954 1,642,968 15,428 -- Transfers from other funding options 2,722,121 1,479,627 9,833,238 -- Contract charges (3,064) (2,377) (2) -- Contract surrenders (313,196) (384,720) (75,833) -- Transfers to other funding options (12,254,438) (1,599,120) (151,884) -- Other receipts (payments) (122,403) (62,078) (19,543) -- ------------ ----------- ---------- --- Net increase (decrease) in net assets resulting from contract transactions (8,921,026) 1,074,300 9,601,404 -- ------------ ----------- ---------- --- Net increase (decrease) in net assets (8,589,227) 1,171,150 9,706,676 -- NET ASSETS: Beginning of period 8,589,227 7,418,077 -- -- ------------ ----------- ---------- --- End of period $ -- $ 8,589,227 $9,706,676 $-- ============ =========== ========== === PIONEER CULLEN VALUE VCT PIONEER EMERGING MARKETS VCT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) ------------------------ ---------------------------- 2007 2006 2007 2006 ---------- ---------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (74,779) $ (52,887) $ (213,399) $ (128,755) Net realized gains (losses) 61,965 29,082 1,979,837 1,048,986 Change in unrealized gains (losses) on investments 291,114 492,415 2,768,304 1,449,386 ---------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 278,300 468,610 4,534,742 2,369,617 ---------- ---------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 2,005,898 3,035,083 1,267,341 2,921,001 Transfers from other funding options 1,115,947 865,061 2,696,282 971,810 Contract charges (1,868) (839) (4,327) (2,588) Contract surrenders (166,340) (56,912) (511,022) (367,906) Transfers to other funding options (306,752) (382,637) (2,046,340) (1,124,804) Other receipts (payments) (19,603) -- (132,244) (195,327) ---------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 2,627,282 3,459,756 1,269,690 2,202,186 ---------- ---------- ----------- ----------- Net increase (decrease) in net assets 2,905,582 3,928,366 5,804,432 4,571,803 NET ASSETS: Beginning of period 5,354,951 1,426,585 10,762,696 6,190,893 ---------- ---------- ----------- ----------- End of period $8,260,533 $5,354,951 $16,567,128 $10,762,696 ========== ========== =========== ===========
The accompanying notes are an integral part of these financial statements. 87
PIONEER EQUITY INCOME VCT PIONEER EQUITY OPPORTUNITY VCT PIONEER FUND VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) ------------------------- ------------------------------ ------------------------ 2007 2006 2007 (d) 2006 2007 2006 ----------- ----------- -------------- ------------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 66,094 $ 60,980 $ (9,820) $ (1,674) $ (99,274) $ (71,730) Net realized gains (losses) 679,488 282,110 93,595 717 239,790 115,066 Change in unrealized gains (losses) on investments (959,180) 1,444,717 (18,944) 17,843 121,440 1,106,155 ----------- ----------- ----------- -------- ----------- ----------- Net increase (decrease) in net assets resulting from operations (213,598) 1,787,807 64,831 16,886 261,956 1,149,491 ----------- ----------- ----------- -------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,846,017 2,232,730 122,645 156,477 870,201 1,315,960 Transfers from other funding options 1,360,837 1,726,685 740,576 9,867 6,880,162 687,754 Contract charges (3,996) (3,348) (373) (76) (3,079) (3,044) Contract surrenders (443,711) (424,128) (9,363) (729) (552,260) (562,938) Transfers to other funding options (1,771,616) (1,220,798) (1,114,099) (18,441) (819,925) (391,104) Other receipts (payments) (171,443) (115,242) -- -- (94,967) (99,763) ----------- ----------- ----------- -------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 816,088 2,195,899 (260,614) 147,098 6,280,132 946,865 ----------- ----------- ----------- -------- ----------- ----------- Net increase (decrease) in net assets 602,490 3,983,706 (195,783) 163,984 6,542,088 2,096,356 NET ASSETS: Beginning of period 11,862,483 7,878,777 195,783 31,799 10,008,672 7,912,316 ----------- ----------- ----------- -------- ----------- ----------- End of period $12,464,973 $11,862,483 $ -- $195,783 $16,550,760 $10,008,672 =========== =========== =========== ======== =========== ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 88
PIONEER GLOBAL HIGH YIELD VCT PIONEER HIGH YIELD VCT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) ----------------------------- ------------------------ 2007 2006 2007 2006 ---------- ---------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 289,601 $ 89,795 $ 459,431 $ 421,635 Net realized gains (losses) 69,444 20,174 134,866 56,927 Change in unrealized gains (losses) on investments (395,188) 64,830 (54,625) 300,511 ---------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from operations (36,143) 174,799 539,672 779,073 ---------- ---------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,546,977 2,469,219 1,405,819 4,727,897 Transfers from other funding options 843,205 672,804 5,296,605 3,553,029 Contract charges (1,151) (332) (3,011) (3,291) Contract surrenders (287,550) (17,072) (910,047) (650,639) Transfers to other funding options (418,850) (478,191) (7,503,133) (3,239,433) Other receipts (payments) (10,101) -- (132,576) (173,699) ---------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 1,672,530 2,646,428 (1,846,343) 4,213,864 ---------- ---------- ----------- ----------- Net increase (decrease) in net assets 1,636,387 2,821,227 (1,306,671) 4,992,937 NET ASSETS: Beginning of period 3,517,328 696,101 14,826,051 9,833,114 ---------- ---------- ----------- ----------- End of period $5,153,715 $3,517,328 $13,519,380 $14,826,051 ========== ========== =========== =========== PIONEER IBBOTSON PIONEER IBBOTSON AGGRESSIVE ALLOCATION VCT GROWTH ALLOCATION VCT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) ------------------------- ------------------------- 2007 2006 2007 2006 ---------- ---------- ------------ ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (32,614) $ (48,774) $ (1,121,019) $ (588,483) Net realized gains (losses) 186,759 34,007 1,983,391 115,909 Change in unrealized gains (losses) on investments (20,808) 368,587 1,225,391 4,205,295 ---------- ---------- ------------ ----------- Net increase (decrease) in net assets resulting from operations 133,337 353,820 2,087,763 3,732,721 ---------- ---------- ------------ ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,032,713 2,472,776 40,554,618 51,768,686 Transfers from other funding options 126,731 481,825 10,187,395 5,930,069 Contract charges (2,000) (884) (22,456) (4,469) Contract surrenders (84,960) (5,802) (2,618,825) (269,339) Transfers to other funding options (99,716) (48,506) (4,218,945) 1,043,771) Other receipts (payments) -- -- (152,397) -- ---------- ---------- ------------ ----------- Net increase (decrease) in net assets resulting from contract transactions 972,768 2,899,409 43,729,390 56,381,176 ---------- ---------- ------------ ----------- Net increase (decrease) in net assets 1,106,105 3,253,229 45,817,153 60,113,897 NET ASSETS: Beginning of period 4,419,580 1,166,351 64,824,560 4,710,663 ---------- ---------- ------------ ----------- End of period $5,525,685 $4,419,580 $110,641,713 $64,824,560 ========== ========== ============ ===========
The accompanying notes are an integral part of these financial statements. 89
PIONEER IBBOTSON MODERATE ALLOCATION VCT PIONEER INDEPENDENCE VCT PIONEER INTERNATIONAL VALUE VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) ------------------------ ------------------------ ------------------------------- 2007 2006 2007 2006 2007 2006 ----------- ----------- ----------- ---------- ----------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (545,028) $ (309,882) $ (42,182) $ (29,716) $ (79,991) $ (35,987) Net realized gains (losses) 907,494 138,418 48,691 13,876 273,517 34,026 Change in unrealized gains (losses) on investments 938,264 1,936,597 109,418 123,706 293,415 408,127 ----------- ----------- ---------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from operations 1,300,730 1,765,133 115,927 107,866 486,941 406,166 ----------- ----------- ---------- ---------- ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 16,344,061 20,180,703 408,137 254,028 781,990 806,241 Transfers from other funding options 6,252,221 11,778,814 253,259 160,737 1,704,020 1,946,212 Contract charges (11,848) (3,534) (495) (359) (1,295) (708) Contract surrenders (1,559,261) (273,742) (43,176) (35,217) (144,346) (40,013) Transfers to other funding options (3,344,298) (266,107) (209,850) (127,418) (1,369,579) (184,467) Other receipts (payments) (343,836) (154,507) (4,408) (5,296) (30,293) (20,998) ----------- ----------- ---------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions 17,337,039 31,261,627 403,467 246,475 940,497 2,506,267 ----------- ----------- ---------- ---------- ----------- ---------- Net increase (decrease) in net assets 18,637,769 33,026,760 519,394 354,341 1,427,438 2,912,433 NET ASSETS: Beginning of period 37,906,944 4,880,184 1,778,174 1,423,833 4,369,095 1,456,662 ----------- ----------- ---------- ---------- ----------- ---------- End of period $56,544,713 $37,906,944 $2,297,568 $1,778,174 $ 5,796,533 $4,369,095 =========== =========== ========== ========== =========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 90
PIONEER OAK RIDGE PIONEER MID CAP VALUE VCT LARGE CAP GROWTH VCT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) ------------------------- ----------------------- 2007 2006 2007 2006 ----------- ----------- ---------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (148,543) $ (173,512) $ (105,686) $ (90,484) Net realized gains (losses) 1,070,147 2,358,984 179,119 106,805 Change in unrealized gains (losses) on investments (602,644) (1,250,420) 273,910 7,665 ----------- ----------- ---------- ----------- Net increase (decrease) in net assets resulting from operations 318,960 935,052 347,343 23,986 ----------- ----------- ---------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,096,706 2,298,225 464,225 794,697 Transfers from other funding options 1,874,593 824,473 924,404 1,464,124 Contract charges (3,542) (3,227) (1,509) (1,105) Contract surrenders (433,088) (488,687) (438,646) (117,599) Transfers to other funding options (1,793,419) (1,339,504) (917,663) (1,065,688) Other receipts (payments) (91,342) (18,426) (46,207) -- ----------- ----------- ---------- ----------- Net increase (decrease) in net assets resulting from contract transactions 649,908 1,272,854 (15,396) 1,074,429 ----------- ----------- ---------- ----------- Net increase (decrease) in net assets 968,868 2,207,906 331,947 1,098,415 NET ASSETS: Beginning of period 10,452,814 8,244,908 5,708,645 4,610,230 ----------- ----------- ---------- ----------- End of period $11,421,682 $10,452,814 $6,040,592 $ 5,708,645 =========== =========== ========== =========== PIONEER SMALL AND MID CAP PIONEER REAL ESTATE SHARES VCT GROWTH VCT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) ------------------------------ ------------------------- 2007 2006 2007 (d) 2006 ----------- ----------- ----------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 70,655 $ 49,318 $ (39,793) $ (36,284) Net realized gains (losses) 1,260,317 617,734 646,306 8,449 Change in unrealized gains (losses) on investments (3,590,805) 1,863,546 (250,221) 137,346 ----------- ----------- ----------- ---------- Net increase (decrease) in net assets resulting from operations (2,259,833) 2,530,598 356,292 109,511 ----------- ----------- ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,454,258 2,255,687 137,529 485,259 Transfers from other funding options 1,182,464 1,287,071 595,324 36,309 Contract charges (2,880) (2,793) (560) (392) Contract surrenders (486,564) (223,500) (75,764) (43,539) Transfers to other funding options (3,159,590) (1,170,566) (3,257,540) (50,278) Other receipts (payments) (61,386) (146,404) (16,626) -- ----------- ----------- ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions (1,073,698) 1,999,495 (2,617,637) 427,359 ----------- ----------- ----------- ---------- Net increase (decrease) in net assets (3,333,531) 4,530,093 (2,261,345) 536,870 NET ASSETS: Beginning of period 11,118,216 6,588,123 2,261,345 1,724,475 ----------- ----------- ----------- ---------- End of period $ 7,784,685 $11,118,216 $ -- $2,261,345 =========== =========== =========== ==========
The accompanying notes are an integral part of these financial statements. 91
PIONEER SMALL CAP VALUE VCT PIONEER STRATEGIC INCOME VCT PIONEER VALUE VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) --------------------------- ---------------------------- ----------------------- 2007 2006 2007 2006 2007 (d) 2006 ----------- ---------- ----------- ----------- ----------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (107,353) $ (114,713) $ 692,530 $ 576,131 $ 65,735 $ (94,591) Net realized gains (losses) 1,770,844 289,914 98,975 46,364 771,582 343,489 Change in unrealized gains (losses) on investments (2,363,206) 522,393 104,962 128,927 (839,576) 416,845 ----------- ---------- ----------- ----------- ----------- ---------- Net increase (decrease) in net assets resulting from operations (699,715) 697,594 896,467 751,422 (2,259) 665,743 ----------- ---------- ----------- ----------- ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 789,804 1,788,456 2,877,348 3,742,454 196,969 775,250 Transfers from other funding options 455,525 1,804,887 2,642,452 2,017,657 458,414 243,237 Contract charges (2,095) (1,703) (6,062) (5,418) (2,222) (2,146) Contract surrenders (462,460) (163,801) (1,203,399) (1,233,770) (243,576) (355,280) Transfers to other funding options (940,063) (931,256) (1,430,767) (1,161,335) (6,396,255) (189,772) Other receipts (payments) (42,858) (58,791) (801,236) (219,089) (82,850) (75,500) ----------- ---------- ----------- ----------- ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions (202,147) 2,437,792 2,078,336 3,140,499 (6,069,520) 395,789 ----------- ---------- ----------- ----------- ----------- ---------- Net increase (decrease) in net assets (901,862) 3,135,386 2,974,803 3,891,921 (6,071,779) 1,061,532 NET ASSETS: Beginning of period 7,796,608 4,661,222 19,447,230 15,555,309 6,071,779 5,010,247 ----------- ---------- ----------- ----------- ----------- ---------- End of period $ 6,894,746 $7,796,608 $22,422,033 $19,447,230 $ -- $6,071,779 =========== ========== =========== =========== =========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period May 1, 2006 to December 31, 2006. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 92
PUTNAM VT INTERNATIONAL EQUITY PUTNAM VT SMALL CAP VALUE SUBACCOUNT SUBACCOUNT (CLASS IB) (CLASS IB) ------------------------------ ------------------------- 2007 (a) 2006 2007 (a) 2006 --------- -------- ------------ ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 16,024 $ (8,164) $ (7,937) $ (218,591) Net realized gains (losses) 282,070 26,433 2,725,377 1,449,694 Change in unrealized gains (losses) on investments (240,847) 134,511 (1,726,958) 739,196 --------- -------- ------------ ----------- Net increase (decrease) in net assets resulting from operations 57,247 152,780 990,482 1,970,299 --------- -------- ------------ ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 512 2,309 61,685 801,368 Transfers from other funding options 1,330 43,978 90,997 856,065 Contract charges -- (119) (18) (5,127) Contract surrenders (6,044) (24,754) (80,291) (370,314) Transfers to other funding options (776,602) (63,667) (16,048,838) (1,034,201) Other receipts (payments) -- -- -- (60,124) --------- -------- ------------ ----------- Net increase (decrease) in net assets resulting from contract transactions (780,804) (42,253) (15,976,465) 187,667 --------- -------- ------------ ----------- Net increase (decrease) in net assets (723,557) 110,527 (14,985,983) 2,157,966 NET ASSETS: Beginning of period 723,557 613,030 14,985,983 12,828,017 --------- -------- ------------ ----------- End of period $ -- $723,557 $ -- $14,985,983 ========= ======== ============ =========== VAN KAMPEN LIT COMSTOCK VAN KAMPEN LIT ENTERPRISE SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) ------------------------ ------------------------- 2007 2006 2007 2006 ----------- ----------- -------- -------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (52,709) $ (90,768) $ (3,160) $ (2,763) Net realized gains (losses) 569,162 888,734 2,861 911 Change in unrealized gains (losses) on investments (1,080,467) 970,506 18,831 9,908 ----------- ----------- -------- -------- Net increase (decrease) in net assets resulting from operations (564,014) 1,768,472 18,532 8,056 CONTRACT TRANSACTIONS: Purchase payments received from contract owners 606,814 695,369 636 636 Transfers from other funding options 565,970 511,715 3,577 4,844 Contract charges (3,381) (3,698) (16) (15) Contract surrenders (427,146) (424,238) (1,974) (1,920) Transfers to other funding options (1,989,405) (1,042,727) (5,610) (1,251) Other receipts (payments) (73,281) (95,450) -- -- ----------- ----------- -------- -------- Net increase (decrease) in net assets resulting from contract transactions (1,320,429) (359,029) (3,387) 2,294 ----------- ----------- -------- -------- Net increase (decrease) in net assets (1,884,443) 1,409,443 15,145 10,350 NET ASSETS: Beginning of period 14,495,677 13,086,234 174,717 164,367 ----------- ----------- -------- -------- End of period $12,611,234 $14,495,677 $189,862 $174,717 =========== =========== ======== ========
The accompanying notes are an integral part of these financial statements. 93 METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES OF METLIFE INSURANCE COMPANY OF CONNECTICUT NOTES TO THE FINANCIAL STATEMENTS 1. ORGANIZATION MetLife of CT Separate Account Eleven for Variable Annuities (the "Separate Account"), a separate account of MetLife Insurance Company of Connecticut (the "Company"), was established by the Company's Board of Directors on November 14, 2002 to support operations of the Company with respect to certain variable annuity contracts (the "Contracts"). The Company is a direct wholly-owned subsidiary of MetLife, Inc., a Delaware corporation. The Separate Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended, and exists in accordance with the regulations of the Connecticut Department of Insurance. The Separate Account is divided into Subaccounts, each of which is treated as an individual accounting entity for financial reporting purposes. Each Subaccount invests in shares of the corresponding portfolio, series, or fund (with the same name) of registered investment management companies (the "Trusts") which are presented below: AIM Variable Insurance Funds ("AIM V.I.") The Alger American Fund ("Alger American") American Funds Insurance Series ("American Funds") Credit Suisse Trust Dreyfus Investment Portfolios ("Dreyfus") Dreyfus Socially Responsible Growth Fund, Inc. ("Dreyfus Socially Responsible") Dreyfus Variable Investment Fund ("Dreyfus VIF") DWS Investments VIT Funds ("DWS VIT") DWS Variable Series I ("DWS I") DWS Variable Series II ("DWS II") Fidelity Variable Insurance Products Fund ("Fidelity VIP") Franklin Templeton Variable Insurance Products Trust ("FTVIPT") Janus Aspen Series ("Janus Aspen") Legg Mason Partners Variable Equity Trust ("LMPVET") Legg Mason Partners Variable Income Trust ("LMPVIT") Met Investors Series Trust ("MIST") Metropolitan Series Fund, Inc. ("MSF") PIMCO Variable Insurance Trust ("PIMCO VIT") Pioneer Variable Contracts Trust ("Pioneer") Van Kampen Life Investment Trust ("Van Kampen LIT") The assets of the Separate Account are registered in the name of the Company. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the Company's other assets and liabilities. The portion of the Separate Account's assets applicable to the Contracts is not chargeable with liabilities arising out of any other business the Company may conduct. Purchase payments applied to the Separate Account are invested in one or more Subaccounts in accordance with the selection made by the contract owner. The following Subaccounts were available for investment as of December 31, 2007 (the share class indicated in parentheses is that of the portfolio, series, or fund in which the Subaccount invests): AIM V.I. Mid Cap Core Equity Subaccount (Series II) AIM V.I. Utilities Subaccount (Series I) Alger American Leveraged AllCap Subaccount (Class S) American Funds Global Growth Subaccount (Class 2) American Funds Growth-Income Subaccount (Class 2) American Funds Growth Subaccount (Class 2) Credit Suisse Trust Global Small Cap Subaccount Dreyfus MidCap Stock Subaccount (Service Shares) Dreyfus Socially Responsible Growth Subaccount (Service Shares) Dreyfus VIF Appreciation Subaccount (Initial Shares) Dreyfus VIF Developing Leaders Subaccount (Initial Shares) DWS VIT Equity 500 Index Subaccount (Class B) DWS VIT RREEF Real Estate Securities Subaccount (Class B) DWSI Global Opportunities Subaccount (Class B) DWSII Balanced Subaccount (Class B) DWSI Bond Subaccount (Class B) DWSI Capital Growth Subaccount (Class B) DWSI Growth & Income Subaccount (Class B) DWSI Health Care Subaccount (Class B) 94 1. ORGANIZATION DWSII International Subaccount (Class B) DWSII Strategic Income Subaccount (Class B) DWSII Blue Chip Subaccount (Class B) DWSII Conservative Allocation Subaccount (Class B) DWSII Core Fixed Income Subaccount (Class B) DWSII Davis Venture Value Subaccount (Class B) DWSII Dreman High Return Equity Subaccount (Class B) DWSII Dreman Small Mid Cap Value Subaccount (Class B) DWSII Global Thematic Subaccount (Class B) DWSII Government & Agency Securities Subaccount (Class B) DWSII Growth Allocation Subaccount (Class B) DWSII High Income Subaccount (Class B) DWSII International Select Equity Subaccount (Class B) DWSII Janus Growth & Income Subaccount (Class B) DWSII Large Cap Value Subaccount (Class B) DWSII Mid Cap Growth Subaccount (Class B) DWSII Moderate Allocation Subaccount (Class B) DWSII Money Market Subaccount (Class B) DWSII Small Cap Growth Subaccount (Class B) DWSII Technology Subaccount (Class B) DWSII Turner Mid Cap Growth Subaccount (Class B) Fidelity VIP Contrafund Subaccount (Service Class 2) Fidelity VIP Dynamic Capital Appreciation Subaccount (Service Class 2) Fidelity VIP Mid Cap Subaccount (Service Class 2) FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) FTVIPT Franklin Small Mid-Cap Growth Securities Subaccount (Class 2) FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) FTVIPT Templeton Foreign Securities Subaccount (Class 2) Janus Aspen Global Life Sciences Subaccount (Service Shares) Janus Aspen Global Technology Subaccount (Service Shares) Janus Aspen Worldwide Growth Subaccount (Service Shares) LMPVET Aggressive Growth Subaccount (Class I) LMPVET Aggressive Growth Subaccount (Class II) LMPVET Appreciation Subaccount (Class I) LMPVET Equity Index Subaccount (Class II) LMPVET Fundamental Value Subaccount (Class I) LMPVET Investors Subaccount (Class I) LMPVET Large Cap Growth Subaccount (Class I) LMPVET Small Cap Growth Subaccount (Class I) LMPVET Social Awareness Subaccount LMPVET Capital and Income Subaccount (Class II) LMPVIT Adjustable Rate Income Subaccount MIST Batterymarch Mid-Cap Stock Subaccount (Class A) MIST BlackRock High Yield Subaccount (Class A) MIST BlackRock Large-Cap Core Subaccount (Class E) MIST Dreman Small-Cap Value Subaccount (Class A) MIST Harris Oakmark International Subaccount (Class A) MIST Janus Forty Subaccount (Class A) MIST Lazard Mid-Cap Subaccount (Class B) 95 1. ORGANIZATION MIST Legg Mason Partners Managed Assets Subaccount (Class A) MIST Lord Abbett Bond Debenture Subaccount (Class A) MIST Lord Abbett Growth and Income Subaccount (Class B) MIST Lord Abbett Mid-Cap Value Subaccount (Class B) MIST Met/AIM Capital Appreciation Subaccount (Class A) MIST Met/AIM Capital Appreciation Subaccount (Class E) MIST Met/AIM Small Cap Growth Subaccount (Class A) MIST MFS Emerging Markets Equity Subaccount (Class A) MIST MFS Research International Subaccount (Class B) MIST MFS Value Subaccount (Class A) MIST Neuberger Berman Real Estate Subaccount (Class A) MIST Oppenheimer Capital Appreciation Subaccount (Class B) MIST PIMCO Inflation Protected Bond Subaccount (Class A) MIST Pioneer Fund Subaccount (Class A) MIST Pioneer Strategic Income Subaccount (Class A) MIST Third Avenue Small Cap Value Subaccount (Class B) MSF BlackRock Aggressive Growth Subaccount (Class D) MSF BlackRock Bond Income Subaccount (Class A) MSF BlackRock Money Market Subaccount (Class A) MSF FI Large Cap Subaccount (Class A) MSF FI Value Leaders Subaccount (Class D) MSF MetLife Aggressive Allocation Subaccount (Class B) MSF MetLife Conservative Allocation Subaccount (Class B) MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) MSF MetLife Moderate Allocation Subaccount (Class B) MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) MSF MFS Total Return Subaccount (Class B) MSF MFS Total Return Subaccount (Class F) MSF Oppenheimer Global Equity Subaccount (Class B) MSF T. Rowe Price Large Cap Growth Subaccount (Class B) MSF Western Asset Management U.S. Government Subaccount (Class A) PIMCO VIT Total Return Subaccount (Administrative Class) Pioneer Bond VCT Subaccount (Class II) Pioneer Cullen Value VCT Subaccount (Class II) Pioneer Emerging Markets VCT Subaccount (Class II) Pioneer Equity Income VCT Subaccount (Class II) Pioneer Fund VCT Subaccount (Class II) Pioneer Global High Yield VCT Subaccount (Class II) Pioneer High Yield VCT Subaccount (Class II) Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) Pioneer Independence VCT Subaccount (Class II) Pioneer International Value VCT Subaccount (Class II) Pioneer Mid Cap Value VCT Subaccount (Class II) Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) Pioneer Real Estate Shares VCT Subaccount (Class II) Pioneer Small Cap Value VCT Subaccount (Class II) Pioneer Strategic Income VCT Subaccount (Class II) Van Kampen LIT Comstock Subaccount (Class II) Van Kampen LIT Enterprise Subaccount (Class II) 96 1. ORGANIZATION The following Subaccounts ceased operations during the year ended December 31, 2007: AIM V.I. Capital Appreciation Subaccount Credit Suisse Trust Emerging Markets Subaccount LMPVPI All Cap Subaccount LMPVPII Growth and Income Subaccount LMPVPI Large Cap Growth Subaccount LMPVPII Aggressive Growth Subaccount LMPVPI Total Return Subaccount Lord Abbett Growth and Income Subaccount Lord Abbett Mid Cap Value Subaccount MIST Pioneer Mid-Cap Value Subaccount MSF Western Asset Management High Yield Bond Subaccount PIMCO VIT Real Return Subaccount Pioneer America Income VCT Subaccount Pioneer Equity Opportunity VCT Subaccount Pioneer Small and Mid Cap Growth VCT Subaccount Pioneer Value VCT Subaccount Putnam VT International Equity Subaccount Putnam VT Small Cap Value Subaccount The operations of the Subaccounts were affected by the following changes that occurred during the year ended December 31, 2007: NAME CHANGES:
OLD NAME NEW NAME - -------- -------- Legg Mason Partners Variable Multiple Discipline Legg Mason Partners Variable Capital and Income Portfolio - Balanced All Cap Growth and Value Portfolio Legg Mason Partners Variable Social Awareness Stock Legg Mason Partners Variable Social Awareness Portfolio Portfolio Janus Capital Appreciation Portfolio Janus Forty Portfolio Pioneer Growth Shares VCT Portfolio Pioneer Independence VCT Portfolio
Mergers:
OLD NAME NEW NAME - -------- -------- Legg Mason Partners Variable All Cap Portfolio Legg Mason Partners Variable Fundamental Value Portfolio Legg Mason Partners Variable Large Cap Growth Legg Mason Partners Variable III Large Cap Growth Portfolio I Portfolio Legg Mason Partners Variable Total Return Portfolio Legg Mason Partners Variable Multiple Discipline Portfolio - Balanced All Cap Growth and Value Legg Mason Partners Variable Aggressive Growth Legg Mason Partners Variable III Aggressive Growth Portfolio Portfolio II Legg Mason Partners Variable Growth and Income Legg Mason Partners Variable Appreciation Portfolio Portfolio Pioneer Mid-Cap Value Portfolio Lazard Mid-Cap Portfolio Western Asset Management High Yield Bond Portfolio BlackRock High Yield Portfolio Pioneer America Income VCT Portfolio Pioneer Bond Fund VCT Portfolio Pioneer Value VCT Portfolio Pioneer Fund VCT Portfolio
97 1. ORGANIZATION SUBSTITUTIONS:
OLD NAME NEW NAME - -------- -------- AIM V.I. Capital Appreciation Fund Met/AIM Capital Appreciation Portfolio Credit Suisse Trust Emerging Markets Portfolio MFS Emerging Markets Equity Portfolio Lord Abbett Series Growth and Income Portfolio Lord Abbett Growth and Income Portfolio Lord Abbett Series Mid Cap Value Portfolio Lord Abbett Mid-Cap Value Portfolio PIMCO VIT Real Return Portfolio PIMCO Inflation Protected Bond Portfolio Putnam VT International Equity Fund MFS Research International Portfolio Putnam VT Small Cap Value Fund Third Avenue Small Cap Value Portfolio
PORTFOLIO SHARE CLASS EXCHANGE:
OLD PORTFOLIO NEW PORTFOLIOLIO - ------------- ---------------- BlackRock Large-Cap Core Portfolio (ClassA) BlackRock Large-Cap Core Portfolio (ClassE)
LIQUIDATIONS: Pioneer Equity Opportunity VCT Portfolio Pioneer Small and Mid Cap Growth VCT Portfolio This report is prepared for the general information of contract owners and is not an offer of units of the Separate Account or shares of the Separate Account's underlying investments. It should not be used in connection with any offer except in conjunction with the prospectus for the Separate Account products offered by the Company and the prospectus of the underlying portfolio, series, or fund which collectively contain all the pertinent information, including additional information on charges and expenses. 2. SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for variable annuity separate accounts registered as unit investment trusts. VALUATION OF INVESTMENTS Investments are reported at fair value and are based on the net asset value per share as determined by the underlying assets of the portfolio, series, or fund of the Trusts, which value their investment securities at fair value. Changes in fair value are recorded in the statement of operations. SECURITY TRANSACTIONS Security transactions are recorded on a trade date basis. Realized gains and losses on the sales of investments are computed on the basis of the average cost of the investment sold. Income from dividends and realized gain distributions are recorded on the ex-distribution date. FEDERAL INCOME TAXES The operations of the Separate Account form a part of the total operations of the Company and are not taxed separately. The Company is taxed as a life insurance company under the provisions of the Internal Revenue Code ("IRC"). Under the current provisions of the IRC, the Company does not expect to incur federal income taxes on the earnings of the Separate Account to the extent the earnings are credited under the Contracts. Accordingly, no charge is being made currently to the Separate Account for federal income taxes. The Company will periodically review the status of this policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the Contracts. 98 2. SIGNIFICANT ACCOUNTING POLICIES ANNUITY PAYOUTS Net assets allocated to Contracts in the payout period are computed according to industry standard mortality tables. The assumed investment return is 3.0 percent. The mortality risk is fully borne by the Company and may result in additional amounts being transferred into the Separate Account by the Company to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Company. PURCHASE PAYMENTS Purchase payments received from contract owners by the Company are credited as accumulation units as of the end of the valuation period in which received, as provided in the prospectus. NET TRANSFERS The contract owner has the opportunity to transfer funds between Subaccounts within the Separate Account or the fixed account, which is an investment option in the Company's general account. OTHER RECEIPTS (PAYMENTS) Included in "other receipts (payments)" in the statements of changes in net assets are primarily contract benefits which have been re-deposited with the Company and distributions for payouts. USE OF ESTIMATES The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported herein. Actual results could differ from these estimates. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENT Effective January 1, 2007, the Company adopted Financial Accounting Standards Board ("FASB") Interpretation ("FIN") No. 48, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES -- AN INTERPRETATION OF FASB STATEMENT NO. 109 ("FIN 48"). FIN 48 clarifies the accounting for uncertainty in income tax recognized in a company's financial statements. FIN 48 requires companies to determine whether it is "more likely than not" that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. It also provides guidance on the recognition, measurement, and classification of income tax uncertainties, along with any related interest and penalties. Previously recorded income tax benefits that no longer meet this standard are required to be charged to earnings in the period that such determination is made. The adoption of FIN 48 had no impact on the financial statements of the Separate Account. FUTURE ADOPTION OF NEW ACCOUNTING PRONOUNCEMENT In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS ("SFAS 157"). SFAS 157 defines fair value, establishes a framework for measuring fair value under GAAP and requires enhanced disclosures about fair value measurements. SFAS 157 does not require additional fair value measurements. The pronouncement is effective for fiscal years beginning after November 15, 2007. The guidance in SFAS 157 will be applied prospectively with certain exceptions. The Company believes the adoption of SFAS 157 will have no material impact on the financial statements of the Separate Account. 3. EXPENSES AND RELATED PARTY TRANSACTIONS The following annual Separate Account charges are asset-based charges and assessed through a daily reduction in unit values which are recorded as expenses in the accompanying statement of operations: MORTALITY AND EXPENSE RISK -- The mortality risk assumed by the Company is the risk that those insured may die sooner than anticipated and therefore, the Company will pay an aggregate amount of death benefits greater than anticipated. The expense risk assumed is where expenses incurred in issuing and administering the Contracts will exceed the amounts realized from the administrative charges assessed against the Contracts. In addition, the charge compensates the Company for the risk that the investor may live longer than estimated and the Company would be obligated to pay more in income payments than anticipated. 99 3. EXPENSES AND RELATED PARTY TRANSACTIONS ADMINISTRATIVE -- The Company has responsibility for the administration of the Contracts and the Separate Account. Generally, the administrative charge is related to the maintenance, including distribution, of each contract and the Separate Account. ENHANCED STEPPED-UP PROVISION -- For an additional charge, the total death benefit payable may be increased based on the earnings in the Contracts. GUARANTEED MINIMUM WITHDRAWAL BENEFIT -- For an additional charge, the Company will guarantee the periodic return on the investment. GUARANTEED MINIMUM WITHDRAWAL BENEFIT FOR LIFE -- For an additional charge, the Company will guarantee payments for life after certain conditions are met. GUARANTEED MINIMUM ACCUMULATION BENEFIT -- For an additional charge, the Company will guarantee that the contract value will not be less than a guaranteed minimum amount at the end of a specified number of years. The table below represents the range of effective annual rates for each respective charge for the year ended December 31, 2007: Mortality and Expense Risk 1.40% - 1.75% Administrative 0.15% Enhanced Stepped-Up Provision 0.20% Guaranteed Minimum Withdrawal Benefit 0.25% - 1.00% Guaranteed Minimum Withdrawal Benefit for Life 0.65% - 0.80% Guaranteed Minimum Accumulation Benefit 0.40% - 0.50%
The above referenced charges may not necessarily correspond to the costs associated with providing the services or benefits indicated by the designation of the charge or associated with a particular contract. A contract administrative charge of $40 is assessed on an annual basis for Contracts with a value of less than 100,000. In addition, most Contracts impose a surrender charge which ranges from 0% to 8% if the contract is partially or fully surrendered within the specified surrender charge period. These charges are assessed through the redemption of units and are recorded as contract charges in the accompanying statements of changes in net assets. Certain investments in various portfolios, series, or funds of the MIST and MSF Trusts hold shares which are managed by Met Investors Advisory, LLC and MetLife Advisers, LLC, respectively. Both act in the capacity of investment advisor and are affiliates of the Company. 100 4. STATEMENT OF INVESTMENTS
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ----------------------- ----------------------------- MARKET COST OF PROCEEDS SHARES VALUE ($) PURCHASES ($) FROM SALES ($) ---------- ----------- ------------- -------------- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (Cost $2,626,796) 197,622 2,855,634 467,503 594,210 AIM V.I. Utilities Subaccount (Series I) (Cost $2,128,291) 113,909 2,730,393 728,933 720,635 AIM V.I. Capital Appreciation Subaccount (Series II) (Cost $0) (a) -- -- 231,957 6,425,274 Alger American Leveraged AllCap Subaccount (Class S) (Cost $2,990,625) 74,069 4,041,927 1,610,222 576,054 American Funds Global Growth Subaccount (Class 2) (Cost $18,067,887) 962,865 24,071,615 4,522,465 2,612,560 American Funds Growth-Income Subaccount (Class 2) (Cost $39,070,498) 1,064,559 44,988,255 3,457,747 6,024,548 American Funds Growth Subaccount (Class 2) (Cost $44,049,325) 836,160 55,788,573 6,060,868 7,735,621 Credit Suisse Trust Emerging Markets Subaccount (Cost $0) (a) -- -- 165,346 5,442,723 Credit Suisse Trust Global Small Cap Subaccount (Cost $580,848) 48,629 684,699 136,148 303,737 Dreyfus MidCap Stock Subaccount (Service Shares) (Cost $4,789,923) 286,972 4,433,720 1,015,116 1,237,105 Dreyfus Socially Responsible Growth Subaccount (Service Shares) (Cost $228,996) 9,248 279,745 20,403 57,361 Dreyfus VIF Appreciation Subaccount (Initial Shares) (Cost $1,922,532) 53,506 2,400,273 106,368 358,093 Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (Cost $8,884,396) 223,841 7,239,029 1,524,519 826,576 DWS VIT Equity 500 Index Subaccount (Class 2) (Cost $4,789,510) 355,350 5,511,473 1,243,933 1,031,954 DWS VIT RREEF Real Estate Securities Subaccount (Class B) (Cost $5,208,028) 318,968 5,103,483 1,818,012 1,214,310 DWSI Global Opportunities Subaccount (Class B) (Cost $2,941,602) 211,292 3,807,476 989,105 568,561 DWSII Balanced Subaccount (Class B) (Cost $3,280,266) 149,220 3,697,679 181,169 593,778 DWSI Bond Subaccount (Class B) (Cost $532,382) 75,643 526,477 878,154 492,974 DWSI Capital Growth Subaccount (Class B) (Cost $6,672,726) 391,147 7,944,200 908,322 1,858,212 DWSI Growth & Income Subaccount (Class B) (Cost $5,526,020) 568,434 6,122,033 321,486 1,080,938 DWSI Health Care Subaccount (Class B) (Cost $2,417,747) 200,915 2,893,172 475,780 403,291 DWSII International Subaccount (Class B) (Cost $4,327,000) 386,717 5,793,025 574,974 780,162 DWSII Strategic Income Subaccount (Class B) (Cost $4,592,431) 405,333 4,714,018 1,122,088 1,370,904 DWSII Blue Chip Subaccount (Class B) (Cost $5,667,329) 402,558 5,881,372 2,775,152 2,261,324 DWSII Conservative Allocation Subaccount (Class B) (Cost $10,263,791) 931,464 11,019,224 1,265,724 1,464,132 DWSII Core Fixed Income Subaccount (Class B) (Cost $6,677,188) 569,382 6,718,704 949,439 466,131 DWSII Davis Venture Value Subaccount (Class B) (Cost $8,208,141) 700,802 10,210,680 1,452,786 1,208,956 DWSII Dreman High Return Equity Subaccount (Class B) (Cost $16,039,123) 1,216,768 17,533,632 1,744,229 2,660,319
101 4. STATEMENT OF INVESTMENTS
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ----------------------- ----------------------------- MARKET COST OF PROCEEDS SHARES VALUE ($) PURCHASES ($) FROM SALES ($) ---------- ----------- ------------- -------------- DWSII Dreman Small Mid Cap Value Subaccount (Class B) (Cost $7,763,884) 405,524 8,142,916 1,932,296 1,999,084 DWSII Global Thematic Subaccount (Class B) (Cost $4,341,506) 317,714 4,975,405 1,788,048 862,392 DWSII Government & Agency Securities Subaccount (Class B) (Cost $1,451,436) 121,168 1,496,424 3,100,004 3,200,409 DWSII Growth Allocation Subaccount (Class B) (Cost $15,715,899) 1,406,559 17,863,295 1,487,202 2,202,573 DWSII High Income Subaccount (Class B) (Cost $5,128,842) 632,238 4,937,779 1,227,439 1,570,138 DWSII International Select Equity Subaccount (Class B) (Cost $4,976,471) 380,793 6,359,240 2,145,265 995,267 DWSII Janus Growth & Income Subaccount (Class B) (Cost $1,748,020) 179,017 2,243,087 141,595 491,609 DWSII Large Cap Value Subaccount (Class B) (Cost $2,553,750) 165,542 3,178,408 536,009 449,316 DWSII Mid Cap Growth Subaccount (Class B) (Cost $813,775) 72,232 964,295 343,149 329,320 DWSII Moderate Allocation Subaccount (Class B) (Cost $15,434,855) 1,403,975 17,240,810 1,865,897 1,932,735 DWSII Money Market Subaccount (Class B) (Cost $4,766,123) 4,766,123 4,766,123 9,749,847 9,886,621 DWSII Small Cap Growth Subaccount (Class B) (Cost $2,701,690) 213,368 3,151,441 552,959 611,521 DWSII Technology Subaccount (Class B) (Cost $1,382,806) 146,537 1,543,034 604,442 363,475 DWSII Turner Mid Cap Growth Subaccount (Class B) (Cost $2,073,336) 210,927 2,585,960 584,890 435,391 Fidelity VIP Contrafund Subaccount (Service Class 2) (Cost $26,539,926) 945,780 25,971,107 8,852,706 2,351,914 Fidelity VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (Cost $1,312,397) 165,320 1,484,573 411,064 412,352 Fidelity VIP Mid Cap Subaccount (Service Class 2) (Cost $25,943,086) 860,831 30,671,393 4,397,684 3,103,392 FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (Cost $12,486,703) 700,565 13,499,890 2,477,706 2,554,446 FTVIPT Franklin Small Mid-Cap Growth Securities Subaccount (Class 2) (Cost $6,644,180) 319,947 7,329,984 3,108,901 1,032,722 FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (Cost $11,804,957) 1,097,833 17,565,342 4,300,851 3,467,409 FTVIPT Templeton Foreign Securities Subaccount (Class 2) (Cost $16,473,447) 1,076,048 21,789,963 4,067,504 3,640,258 Janus Aspen Global Life Sciences Subaccount (Service Shares) (Cost $227,373) 26,745 305,965 75,377 54,355 Janus Aspen Global Technology Subaccount (Service Shares) (Cost $2,476,060) 551,469 2,856,610 1,714,230 106,812 Janus Aspen Worldwide Growth Subaccount (Service Shares) (Cost $229,287) 8,278 289,994 62,248 43,361 LMPVET Aggressive Growth Subaccount (Class I) (Cost $7,498,545) (b) 441,783 7,205,488 8,796,560 1,284,149 LMPVET Aggressive Growth Subaccount (Class II) (Cost $7,229,950) (b) 426,178 6,942,448 7,869,060 628,817 LMPVET Appreciation Subaccount (Class I) (Cost $1,735,626) (b) 62,439 1,645,885 1,914,540 182,465
102 4. STATEMENT OF INVESTMENTS
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ----------------------- ----------------------------- MARKET COST OF PROCEEDS SHARES VALUE ($) PURCHASES ($) FROM SALES ($) ---------- ----------- ------------- -------------- LMPVET Equity Index Subaccount (Class II) (Cost $11,493,278) 390,288 13,109,760 1,377,305 1,522,397 LMPVET Fundamental Value Subaccount (Class I) (Cost $5,062,224) (b) 211,658 4,590,855 5,316,619 251,193 LMPVET Investors Subaccount (Class I) (Cost $2,601,036) 186,448 3,080,115 194,714 209,190 LMPVET Large Cap Growth Subaccount (Class I) (Cost $2,428,610) (b) 146,990 2,440,026 2,671,822 245,769 LMPVET Small Cap Growth Subaccount (Class I) (Cost $4,395,761) 327,460 4,921,726 488,240 635,289 LMPVET Social Awareness Subaccount (Cost $974,341) 40,795 1,016,608 187,633 26,779 LMPVPI All Cap Subaccount (Class I) (Cost $0) (a) -- -- 271,447 4,816,249 LMPVPI All Cap Subaccount (Class II) (Cost $0) (a) -- -- 33,341 259,004 LMPVPII Growth and Income Subaccount (Class I) (Cost $0) (a) -- -- 95,849 1,777,473 LMPVPI Large Cap Growth Subaccount (Class I) (Cost $0) (a) -- -- 37,865 2,771,192 LMPVPII Aggressive Growth Subaccount (Class I) (Cost $0) (a) -- -- 187,654 8,967,989 LMPVPII Aggressive Growth Subaccount (Class II) (Cost $0) (a) -- -- 327,003 7,715,462 LMPVET Capital and Income Subaccount (Class II) (Cost $5,556,066) (b) 385,003 4,785,578 5,929,987 377,285 LMPVIT Adjustable Rate Income Subaccount (Cost $2,556,242) 254,367 2,424,118 202,749 645,273 LMPVPI Total Return Subaccount (Class II) (Cost $0) (a) -- -- 357,223 4,747,424 Lord Abbett Growth and Income Subaccount (Class VC) (Cost $0) (a) -- -- 104,826 15,802,246 Lord Abbett Mid-Cap Value Subaccount (Class VC) (Cost $0) (a) -- -- 51,049 14,470,403 MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (Cost $5,850,617) 293,272 5,296,486 990,766 579,530 MIST BlackRock High Yield Subaccount (Class A) (Cost $11,934,432) 1,423,152 11,726,776 8,494,567 1,507,108 MIST BlackRock Large-Cap Core Subaccount (Class E) (Cost $4,213,711) (b) 384,145 4,252,489 5,261,150 1,063,173 MIST BlackRock Large-Cap Core Subaccount (Class A) (Cost $0) (a) -- -- 366,888 5,201,278 MIST Dreman Small-Cap Value Subaccount (Class A) (Cost $500,293) 36,778 499,083 447,523 308,831 MIST Harris Oakmark International Subaccount (Class A) (Cost $7,449,747) 418,145 7,221,372 3,183,797 1,453,779 MIST Janus Forty Subaccount (Class A) (Cost $9,352,334) 126,623 10,612,239 2,360,774 1,023,928 MIST Lazard Mid-Cap Subaccount (Class B) (Cost $484,603) (b) 35,538 430,006 510,219 24,414 MIST Legg Mason Partners Managed Assets Subaccount (Class A) (Cost $4,322,000) 255,211 4,379,421 601,925 327,365 MIST Lord Abbett Bond Debenture Subaccount (Class A) (Cost $3,783,995) 315,787 3,988,384 937,368 1,026,407 MIST Lord Abbett Growth and Income Subaccount (Class B) (Cost $27,796,760) 993,830 28,512,995 16,934,987 3,409,546
103 4. STATEMENT OF INVESTMENTS
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ----------------------- ----------------------------- MARKET COST OF PROCEEDS SHARES VALUE ($) PURCHASES ($) FROM SALES ($) ---------- ----------- ------------- -------------- MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (Cost $13,518,861) 630,360 12,279,411 14,914,867 1,405,604 MIST Met/AIM Capital Appreciation Subaccount (Class A) (Cost $2,916,053) 239,984 2,899,011 123,272 299,901 MIST Met/AIM Capital Appreciation Subaccount (Class E) (Cost $6,523,175) (b) 570,040 6,777,774 7,227,851 715,009 MIST Met/AIM Small Cap Growth Subaccount (Class A) (Cost $431,505) 29,573 439,458 441,525 205,055 MIST MFS Emerging Markets Equity Subaccount (Class A) (Cost $4,880,371) (b) 418,602 6,019,504 5,738,288 966,128 MIST MFS Research International Subaccount (Class B) (Cost $1,970,586) (b) 142,192 2,036,191 2,042,873 74,293 MIST MFS Value Subaccount (Class A) (Cost $8,449,486) 612,890 9,217,868 1,951,003 1,283,386 MIST Neuberger Berman Real Estate Subaccount (Class A) (Cost $13,939,422) 921,826 12,979,313 2,874,787 3,877,052 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (Cost $6,307,392) 690,760 6,810,890 1,867,621 1,070,737 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (Cost $11,168,410) (b) 1,092,954 11,978,775 12,280,476 1,136,168 MIST Pioneer Fund Subaccount (Class A) (Cost $986,031) 71,976 1,096,201 156,126 488,589 MIST Pioneer Mid-Cap Value Subaccount (Class A) (Cost $0) (a) -- -- 79,074 524,058 MIST Pioneer Strategic Income Subaccount (Class A) (Cost $9,116,299) 957,927 9,598,429 956,618 1,079,406 MIST Third Avenue Small Cap Value Subaccount (Class B) (Cost $25,461,732) 1,490,631 23,373,093 17,364,562 3,518,511 MSF BlackRock Aggressive Growth Subaccount (Class D) (Cost $4,944,278) 203,029 5,818,822 583,550 627,946 MSF BlackRock Bond Income Subaccount (Class A) (Cost $7,864,278) 75,662 8,452,200 883,451 863,688 MSF BlackRock Money Market Subaccount (Class A) (Cost $34,542,169) 345,420 34,542,169 28,574,018 17,020,448 MSF FI Large Cap Subaccount (Class A) (Cost $4,580,617) 310,767 4,555,852 450,542 619,244 MSF FI Value Leaders Subaccount (Class D) (Cost $11,340,999) 56,588 11,078,851 1,715,953 1,074,158 MSF MetLife Aggressive Allocation Subaccount (Class B) (Cost $1,933,243) 163,242 2,058,480 606,889 248,786 MSF MetLife Conservative Allocation Subaccount (Class B) (Cost $2,590,480) 251,783 2,799,822 902,008 921,992 MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (Cost $3,780,946) 341,739 3,940,255 3,363,178 1,461,939 MSF MetLife Moderate Allocation Subaccount (Class B) (Cost $11,605,056) 1,057,383 12,646,298 2,534,493 1,489,802 MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (Cost $6,163,439) 539,200 6,675,290 1,968,207 2,708,040 MSF MFS Total Return Subaccount (Class B) (Cost $5,284,670) 35,843 5,485,040 1,878,473 521,109 MSF MFS Total Return Subaccount (Class F) (Cost $31,418,813) 217,215 33,331,699 2,913,970 3,618,006 MSF Oppenheimer Global Equity Subaccount (Class B) (Cost $30,232,981) 1,908,148 33,278,095 2,326,141 5,586,653
104 4. STATEMENT OF INVESTMENTS
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ----------------------- ----------------------------- MARKET COST OF PROCEEDS SHARES VALUE ($) PURCHASES ($) FROM SALES ($) ---------- ----------- ------------- -------------- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (Cost $2,371,380) 166,501 2,730,610 265,855 250,141 MSF Western Asset Management High Yield Bond Subaccount (Class A) (Cost $0) (a) -- -- 1,134,308 7,953,467 MSF Western Asset Management U.S. Government Subaccount (Class A) (Cost $5,621,668) 474,742 5,929,526 771,086 1,281,688 PIMCO VIT Real Return Subaccount (Administrative Class) (Cost $0) (a) -- -- 555,292 11,973,789 PIMCO VIT Total Return Subaccount (Administrative Class) (Cost $26,818,099) 2,576,340 27,025,149 2,707,246 2,811,138 Pioneer America Income VCT Subaccount (Class II) (Cost $0) (c) -- -- 3,836,126 12,540,940 Pioneer Bond VCT Subaccount (Class II) (Cost $9,639,907) (d) 893,128 9,708,191 9,904,035 264,783 Pioneer Cullen Value VCT Subaccount (Class II) (Cost $7,434,146) 609,277 8,261,796 3,097,274 549,345 Pioneer Emerging Markets VCT Subaccount (Class II) (Cost $10,523,440) 382,496 16,569,716 4,344,911 1,922,275 Pioneer Equity Income VCT Subaccount (Class II) (Cost $11,508,088) 521,843 12,466,829 3,307,595 2,016,416 Pioneer Equity Opportunity VCT Subaccount (Class II) (Cost $0) (c) -- -- 921,575 1,107,836 Pioneer Fund VCT Subaccount (Class II) (Cost $14,608,360) 645,106 16,553,420 7,434,591 1,252,158 Pioneer Global High Yield VCT Subaccount (Class II) (Cost $5,482,688) 534,671 5,154,571 2,704,642 669,347 Pioneer High Yield VCT Subaccount (Class II) (Cost $13,622,025) 1,224,753 13,521,455 7,205,719 8,584,369 Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (Cost $5,125,520) 440,713 5,526,540 1,361,739 259,353 Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (Cost $105,046,041) 8,917,158 110,661,932 47,957,674 3,881,577 Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (Cost $53,544,719) 4,712,892 56,554,705 21,836,322 4,438,636 Pioneer Independence VCT Subaccount (Class II) (Cost $1,944,740) 148,638 2,297,936 639,208 277,745 Pioneer International Value VCT Subaccount (Class II) (Cost $4,861,347) 311,690 5,797,434 2,183,464 1,279,250 Pioneer Mid Cap Value VCT Subaccount (Class II) (Cost $12,771,072) 597,147 11,423,418 4,073,375 2,346,082 Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (Cost $5,330,785) 463,309 6,041,552 1,318,227 1,414,801 Pioneer Real Estate Shares VCT Subaccount (Class II) (Cost $8,686,228) 332,020 7,785,868 3,129,909 3,143,310 Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (Cost $0) (c) -- -- 1,302,303 3,360,499 Pioneer Small Cap Value VCT Subaccount (Class II) (Cost $8,166,182) 537,895 6,895,810 3,048,226 1,493,412 Pioneer Strategic Income VCT Subaccount (Class II) (Cost $22,496,042) 2,070,700 22,425,511 5,482,330 2,594,109 Pioneer Value VCT Subaccount (Class II) (Cost $0) (c) -- -- 1,177,973 6,745,637 Putnam VT International Equity Subaccount (Class IB) (Cost $0) (a) -- -- 108,666 785,626
105 4. STATEMENT OF INVESTMENTS
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ----------------------- ----------------------------- MARKET COST OF PROCEEDS SHARES VALUE ($) PURCHASES ($) FROM SALES ($) ---------- ----------- ------------- -------------- Putnam VT Small Cap Value Subaccount (Class IB) (Cost $0) (a) -- -- 1,781,210 16,109,776 Van Kampen LIT Comstock Subaccount (Class II) (Cost $12,026,098) 914,004 12,613,255 1,468,063 2,527,773 Van Kampen LIT Enterprise Subaccount (Class II) (Cost $138,627) 10,870 189,891 4,344 10,881
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 106 5. FINANCIAL HIGHLIGHTS The following is a summary of unit values and units outstanding for the Contracts, net investment income ratios, and expense ratios, excluding expenses for the underlying portfolio, series, or fund for each of the five years in the period ended December 31, 2007.
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000s) HIGHEST ($) ($000s) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------------- ---------- ------------- ---------------- ----------------- AIM V.I. Mid Cap Core Equity 2007 1,764 1.280 - 1.728 2,855 0.05 1.55 - 2.60 6.40 - 7.60 Subaccount (Series II) 2006 1,823 1.203 - 1.606 2,776 0.73 1.55 - 2.60 3.21 - 9.25 2005 1,720 1.112 - 1.470 2,462 0.34 1.55 - 2.60 4.60 - 5.68 2004 1,071 1.067 - 1.391 1,478 0.05 1.55 - 2.50 0.40 - 11.82 2003 204 1.240 - 1.244 253 -- 1.55 - 2.10 2.73 - 10.78 AIM V.I. Utilities 2007 1,270 1.594 - 2.195 2,730 1.94 1.55 - 2.60 8.89 - 18.78 Subaccount (Series I) 2006 1,342 1.356 - 1.848 2,436 3.78 1.55 - 2.60 22.27 - 23.53 2005 1,223 1.109 - 1.496 1,802 3.16 1.55 - 2.60 (4.01) - 15.08 2004 525 1.201 - 1.300 677 1.03 1.55 - 2.45 15.48 - 21.44 2003 67 1.064 - 1.068 71 1.93 1.70 - 2.30 6.29 - 12.00 AIM V.I. Capital Appreciation 2007 -- 1.223 - 1.527 -- -- 1.55 - 2.60 6.16 - 6.63 Subaccount (Series II) (a) 2006 4,167 1.152 - 1.432 5,783 -- 1.55 - 2.60 3.41 - 4.45 2005 3,728 1.114 - 1.371 5,008 -- 1.55 - 2.60 5.79 - 15.98 2004 2,380 1.053 - 1.283 3,034 -- 1.55 - 2.60 (0.17) - 12.70 2003 76 1.221 - 1.225 93 -- 1.55 - 2.10 (0.16) - 8.99 Alger American Leveraged AllCap 2007 2,017 1.713 - 2.061 4,041 -- 1.55 - 2.65 (1.42) - 31.11 Subaccount (Class S) 2006 1,428 1.319 - 1.572 2,198 -- 1.55 - 2.55 11.13 - 17.14 2005 967 1.138 - 1.342 1,272 -- 1.55 - 2.55 7.67 - 18.75 2004 505 1.067 - 1.194 596 -- 1.55 - 2.45 2.25 - 6.13 2003 82 1.120 - 1.123 92 -- 1.70 - 2.10 (0.09) - 1.73 American Funds Global Growth 2007 11,775 1.622 - 2.221 24,068 2.73 1.55 - 2.60 11.86 - 13.09 Subaccount (Class 2) 2006 11,328 1.450 - 1.964 20,624 0.87 1.55 - 2.60 17.31 - 18.53 2005 9,664 1.236 - 1.657 15,033 0.67 1.55 - 2.60 11.15 - 13.63 2004 4,145 1.112 - 1.475 6,038 0.21 1.55 - 2.60 7.00 - 15.54 2003 126 1.313 - 1.320 166 0.01 1.55 - 2.30 5.55 - 20.27 American Funds Growth-Income 2007 28,911 1.260 - 1.670 44,981 1.47 1.55 - 2.60 2.36 - 3.47 Subaccount (Class 2) 2006 31,310 1.231 - 1.614 47,376 1.58 1.55 - 2.60 12.22 - 13.42 2005 29,868 1.097 - 1.423 40,223 1.66 1.55 - 2.60 1.72 - 4.17 2004 12,151 1.063 - 1.366 16,338 2.20 1.55 - 2.60 3.46 - 11.03 2003 296 1.249 - 1.257 371 2.55 1.55 - 2.50 6.26 - 15.31 American Funds Growth 2007 31,127 1.443 - 1.916 55,780 0.76 1.55 - 2.60 9.48 - 10.62 Subaccount (Class 2) 2006 33,890 1.318 - 1.732 55,144 0.80 1.55 - 2.60 7.33 - 8.52 2005 32,712 1.228 - 1.596 49,587 0.83 1.55 - 2.60 6.98 - 14.41 2004 13,782 1.084 - 1.395 19,011 0.39 1.55 - 2.60 7.86 - 17.62 2003 379 1.251 - 1.259 476 0.33 1.55 - 2.50 3.55 - 14.08 Credit Suisse Trust Emerging Markets 2007 -- 1.640 - 2.801 -- -- 1.55 - 2.65 4.39 - 4.79 Subaccount (a) 2006 2,017 1.570 - 2.673 5,065 0.55 1.55 - 2.65 29.03 - 30.45 2005 1,918 1.215 - 2.049 3,679 0.85 1.55 - 2.65 8.00 - 30.59 2004 614 1.163 - 1.626 949 0.39 1.55 - 2.50 11.80 - 23.60 2003 61 1.318 - 1.321 80 -- 1.70 - 2.10 4.27 - 7.05
107 5. FINANCIAL HIGHLIGHTS
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000s) HIGHEST ($) ($000s) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------------- ---------- ------------- ---------------- ----------------- Credit Suisse Trust Global Small Cap 2007 423 1.317 - 1.738 685 -- 1.55 - 2.65 (6.46) - (5.44) Subaccount 2006 504 1.408 - 1.838 883 -- 1.55 - 2.65 10.26 - 12.60 2005 447 1.277 - 1.649 697 -- 1.55 - 2.65 8.91 - 18.65 2004 295 1.131 - 1.442 417 -- 1.55 - 2.45 0.99 - 18.31 2003 11 1.237 - 1.240 13 -- 1.70 - 2.10 (0.16) - 6.26 Dreyfus MidCap Stock 2007 3,080 1.109 - 1.499 4,433 0.30 1.55 - 2.65 (1.29) - (0.20) Subaccount (Service Shares) 2006 3,562 1.122 - 1.502 5,177 0.17 1.55 - 2.65 4.91 - 6.00 2005 3,582 1.069 - 1.417 4,927 -- 1.55 - 2.65 (1.00) - 12.43 2004 2,376 1.114 - 1.321 3,082 0.38 1.55 - 2.65 4.18 - 19.40 2003 224 1.168 - 1.173 263 0.32 1.70 - 2.50 1.30 - 14.47 Dreyfus Socially Responsible Growth 2007 213 1.165 - 1.360 280 0.27 1.55 - 2.65 4.67 - 5.84 Subaccount (Service Shares) 2006 239 1.113 - 1.285 297 -- 1.55 - 2.65 6.10 - 7.35 2005 244 1.049 - 1.197 283 0.22 1.55 - 2.65 1.20 - 6.78 2004 66 1.167 - 1.174 77 0.12 1.70 - 2.10 2.01 - 4.17 2003 64 1.125 - 1.127 72 -- 1.70 - 1.95 2.83 - 6.12 Dreyfus VIF Appreciation 2007 1,683 1.239 - 1.506 2,400 1.56 1.55 - 2.50 4.50 - 5.46 Subaccount (Initial Shares) 2006 1,850 1.185 - 1.428 2,519 1.56 1.55 - 2.50 13.59 - 14.70 2005 1,820 1.042 - 1.245 2,177 0.01 1.55 - 2.50 1.76 - 2.72 2004 874 1.022 - 1.212 1,048 3.31 1.55 - 2.50 2.02 - 5.46 2003 123 1.167 - 1.170 144 1.57 1.70 - 2.15 4.93 - 10.30 Dreyfus VIF Developing Leaders 2007 5,952 0.986 - 1.313 7,238 0.75 1.55 - 2.60 (13.36) - (12.41) Subaccount (Initial Shares) 2006 6,138 1.138 - 1.499 8,580 0.40 1.55 - 2.60 1.07 - 2.18 2005 5,911 1.126 - 1.467 8,236 -- 1.55 - 2.60 2.35 - 4.19 2004 2,867 1.093 - 1.408 3,977 0.44 1.55 - 2.50 7.85 - 16.61 2003 98 1.276 - 1.285 125 0.04 1.55 - 2.50 (0.47) - 14.12 DWS VIT Equity 500 Index 2007 4,714 1.155 - 1.179 5,511 1.14 1.55 - 2.45 2.30 - 3.24 Subaccount (Class 2) 2006 4,482 1.129 - 1.142 5,093 0.80 1.55 - 2.45 3.57 - 13.41 2005 4,582 1.004 - 1.007 4,608 -- 1.55 - 2.45 0.40 - 0.70 DWS VIT RREEF Real Estate Securities 2007 2,881 1.426 - 1.830 5,103 0.86 1.55 - 2.65 (18.51) - (17.64) Subaccount (Class B) 2006 2,994 1.750 - 2.222 6,472 -- 1.55 - 2.65 33.49 - 34.99 2005 3,081 1.311 - 1.646 4,952 2.59 1.55 - 2.65 (1.69) - 17.37 2004 2,085 1.211 - 1.501 3,104 0.29 1.55 - 2.50 1.92 - 35.53 2003 217 1.163 - 1.165 252 -- 1.70 - 2.10 9.91 - 13.67 DWSI Global Opportunities 2007 1,780 1.722 - 2.278 3,807 1.00 1.55 - 2.65 6.08 - 7.25 Subaccount (Class B) 2006 1,696 1.619 - 2.124 3,375 0.93 1.55 - 2.50 18.87 - 20.00 2005 1,726 1.361 - 1.770 2,877 0.33 1.55 - 2.50 3.71 - 16.22 2004 826 1.195 - 1.523 1,225 -- 1.55 - 2.50 2.72 - 20.75 2003 63 1.252 - 1.253 79 -- 1.95 - 2.10 7.19 - 11.79 DWSII Balanced 2007 2,997 1.143 - 1.269 3,697 2.97 1.55 - 2.50 1.84 - 2.75 Subaccount (Class B) 2006 3,359 1.122 - 1.235 4,050 2.19 1.55 - 2.50 5.97 - 8.14 2005 3,989 1.047 - 1.142 4,471 1.82 1.55 - 2.50 0.48 - 4.74 2004 2,374 1.032 - 1.116 2,622 0.47 1.55 - 2.50 2.23 - 5.55 2003 40 1.062 - 1.065 43 -- 1.70 - 2.10 0.09 - 5.14
108 5. FINANCIAL HIGHLIGHTS
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000s) HIGHEST ($) ($000s) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------------- ---------- ------------- ---------------- ----------------- DWSI Bond 2007 508 1.024 - 1.047 526 6.28 1.55 - 2.40 0.39 - 2.25 Subaccount (Class B) 2006 164 1.011 - 1.024 167 3.60 1.55 - 2.40 1.81 - 2.71 2005 52 0.993 - 0.997 51 -- 1.55 - 2.40 (1.00) - 0.91 DWSI Capital Growth 2007 5,507 1.228 - 1.488 7,943 0.26 1.55 - 2.65 (1.15) - 10.47 Subaccount (Class B) 2006 6,117 1.123 - 1.347 8,019 0.20 1.55 - 2.65 (0.46) - 6.48 2005 3,509 1.100 - 1.265 4,338 0.22 1.55 - 2.65 3.48 - 11.97 2004 792 1.055 - 1.184 929 0.08 1.55 - 2.45 3.27 - 5.73 2003 66 1.114 - 1.117 74 -- 1.70 - 2.10 2.76 - 10.19 DWSI Growth & Income 2007 4,547 1.124 - 1.411 6,121 0.87 1.55 - 2.65 (1.71) - (0.56) Subaccount (Class B) 2006 5,105 1.142 - 1.419 6,944 0.56 1.55 - 2.65 0.83 - 11.56 2005 3,621 1.106 - 1.272 4,463 0.86 1.55 - 2.65 3.07 - 9.45 2004 2,537 1.080 - 1.222 3,053 0.16 1.55 - 2.50 1.60 - 10.43 2003 102 1.127 - 1.129 115 -- 1.70 - 2.10 4.83 - 9.41 DWSI Health Care 2007 2,035 1.222 - 1.490 2,893 -- 1.55 - 2.65 9.88 - 11.11 Subaccount (Class B) 2006 2,070 1.110 - 1.341 2,653 -- 1.55 - 2.65 1.37 - 4.20 2005 2,153 1.077 - 1.287 2,657 -- 1.55 - 2.65 0.00 - 8.95 2004 1,239 1.037 - 1.210 1,477 -- 1.55 - 2.65 (1.95) - 7.57 2003 101 1.122 - 1.123 113 -- 1.95 - 2.10 7.06 - 7.57 DWSII International 2007 2,826 1.739 - 2.151 5,792 1.99 1.55 - 2.65 11.26 - 12.50 Subaccount (Class B) 2006 2,931 1.563 - 1.912 5,373 1.60 1.55 - 2.65 2.54 - 23.51 2005 1,833 1.280 - 1.548 2,772 1.25 1.55 - 2.65 3.79 - 17.79 2004 1,332 1.137 - 1.359 1,788 0.37 1.55 - 2.50 3.22 - 15.28 2003 53 1.184 - 1.185 62 -- 1.90 - 2.10 9.33 - 15.61 DWSII Strategic Income 2007 4,106 1.120 - 1.207 4,713 5.81 1.55 - 2.65 2.25 - 3.45 Subaccount (Class B) 2006 4,484 1.093 - 1.173 5,005 4.22 1.55 - 2.65 5.92 - 7.10 2005 4,407 1.031 - 1.100 4,617 6.60 1.55 - 2.65 (1.00) - 0.83 2004 2,492 1.037 - 1.058 2,605 -- 1.55 - 2.65 1.65 - 10.64 2003 268 0.983 - 0.985 263 -- 1.95 - 2.30 2.50 - 3.69 DWSII Blue Chip 2007 3,729 1.326 - 1.639 5,880 0.68 1.55 - 2.65 0.45 - 1.55 Subaccount (Class B) 2006 3,736 1.316 - 1.614 5,850 0.47 1.55 - 2.65 12.15 - 13.42 2005 3,865 1.171 - 1.423 5,358 0.49 1.55 - 2.65 4.28 - 8.38 2004 2,316 1.109 - 1.318 3,006 0.04 1.55 - 2.65 1.56 - 14.41 2003 113 1.155 - 1.156 131 -- 1.90 - 2.10 5.19 - 15.48 DWSII Conservative Allocation 2007 9,308 1.099 - 1.203 11,017 1.99 1.55 - 2.55 2.04 - 3.08 Subaccount (Class B) 2006 9,737 1.077 - 1.167 11,228 1.02 1.55 - 2.55 6.11 - 7.16 2005 6,416 1.015 - 1.089 6,925 -- 1.55 - 2.55 1.12 - 3.35 2004 2,298 1.056 - 1.060 2,431 -- 1.55 - 2.45 1.54 - 4.75 DWSII Core Fixed Income 2007 6,432 1.007 - 1.077 6,718 3.83 1.55 - 2.65 0.30 - 2.11 Subaccount (Class B) 2006 6,082 0.997 - 1.060 6,243 3.26 1.55 - 2.65 1.22 - 2.36 2005 6,450 0.985 - 1.041 6,499 3.03 1.55 - 2.65 (1.70) - 0.78 2004 5,115 0.993 - 1.015 5,159 0.48 1.55 - 2.65 0.20 - 3.86 2003 189 0.986 - 0.990 186 -- 1.70 - 2.30 1.12 - 3.02
109 5. FINANCIAL HIGHLIGHTS
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000s) HIGHEST ($) ($000s) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------------- ---------- ------------- ---------------- ----------------- DWSII Davis Venture Value 2007 6,710 1.281 - 1.581 10,209 0.32 1.55 - 2.65 1.43 - 2.53 Subaccount (Class B) 2006 6,525 1.263 - 1.542 9,723 0.26 1.55 - 2.65 11.38 - 12.64 2005 6,219 1.134 - 1.369 8,265 0.34 1.55 - 2.65 2.89 - 8.00 2004 4,121 1.068 - 1.273 5,180 0.01 1.55 - 2.50 1.94 - 9.48 2003 185 1.156 - 1.160 214 -- 1.70 - 2.30 5.65 - 16.06 DWSII Dreman High Return Equity 2007 11,712 1.138 - 1.547 17,531 1.06 1.55 - 2.65 (4.77) - (3.67) Subaccount (Class B) 2006 12,289 1.194 - 1.606 19,166 1.21 1.55 - 2.65 15.11 - 16.40 2005 8,634 1.036 - 1.380 11,585 1.11 1.55 - 2.65 1.07 - 6.28 2004 4,520 1.113 - 1.304 5,841 0.28 1.55 - 2.65 3.20 - 14.51 2003 182 1.159 - 1.164 212 -- 1.70 - 2.50 5.63 - 19.06 DWSII Dreman Small Mid Cap Value 2007 4,202 1.306 - 2.067 8,142 0.59 1.55 - 2.65 (0.07) - 1.13 Subaccount (Class B) 2006 4,783 1.305 - 2.044 9,263 0.38 1.55 - 2.65 21.35 - 22.62 2005 4,743 1.075 - 1.667 7,470 0.30 1.55 - 2.65 (0.87) - 9.34 2004 2,539 1.165 - 1.542 3,800 0.17 1.55 - 2.65 2.35 - 23.90 2003 201 1.244 - 1.246 250 -- 1.70 - 2.10 9.60 - 20.66 DWSII Global Thematic 2007 2,430 1.540 - 2.137 4,975 0.24 1.55 - 2.60 3.15 - 4.24 Subaccount (Class B) 2006 2,262 1.493 - 2.050 4,473 0.18 1.55 - 2.60 11.58 - 27.65 2005 1,912 1.343 - 1.606 2,960 -- 1.55 - 2.60 10.48 - 21.70 2004 1,176 1.123 - 1.332 1,532 0.44 1.55 - 2.50 2.72 - 18.68 2003 109 1.179 - 1.180 128 -- 1.95 - 2.10 7.08 - 8.16 DWSII Government & Agency Securities 2007 1,408 1.032 - 1.089 1,496 4.15 1.55 - 2.65 2.69 - 3.93 Subaccount (Class B) 2006 1,537 1.005 - 1.054 1,581 3.22 1.55 - 2.65 1.11 - 2.15 2005 1,466 0.994 - 1.037 1,481 3.53 1.55 - 2.65 (0.40) - 0.98 2004 1,224 0.998 - 1.015 1,234 0.84 1.55 - 2.65 (0.20) - 2.54 2003 182 0.995 181 -- 1.95 - 2.10 (0.30) - 2.05 DWSII Growth Allocation 2007 13,744 1.171 - 1.320 17,860 1.96 1.55 - 2.55 2.90 - 3.94 Subaccount (Class B) 2006 15,021 1.138 - 1.270 18,857 0.79 1.55 - 2.55 9.85 - 10.92 2005 15,355 1.036 - 1.145 17,467 -- 1.55 - 2.55 (0.09) - 8.13 2004 4,429 1.094 - 1.097 4,852 -- 1.55 - 2.30 0.64 - 7.78 DWSII High Income 2007 3,876 1.048 - 1.319 4,937 7.46 1.55 - 2.65 (2.14) - (1.05) Subaccount (Class B) 2006 4,372 1.070 - 1.333 5,671 7.05 1.55 - 2.65 7.25 - 8.46 2005 4,575 0.997 - 1.229 5,497 8.44 1.55 - 2.65 0.17 - 2.47 2004 2,742 1.082 - 1.207 3,274 1.96 1.55 - 2.65 1.01 - 10.25 2003 186 1.088 - 1.093 202 -- 1.70 - 2.50 4.50 - 10.86 DWSII International Select Equity 2007 2,994 1.545 - 2.224 6,358 2.15 1.55 - 2.65 13.14 - 14.40 Subaccount (Class B) 2006 2,721 1.364 - 1.944 5,021 1.61 1.55 - 2.65 21.80 - 23.12 2005 2,731 1.119 - 1.579 4,097 2.29 1.55 - 2.65 2.68 - 15.80 2004 1,580 1.150 - 1.407 2,192 0.11 1.55 - 2.50 2.88 - 22.00 2003 68 1.206 - 1.210 82 -- 1.95 - 2.50 6.35 - 20.40 DWSII Janus Growth & Income 2007 1,543 1.193 - 1.501 2,243 0.21 1.55 - 2.65 3.42 - 4.60 Subaccount (Class B) 2006 1,762 1.152 - 1.435 2,458 0.24 1.55 - 2.65 2.89 - 6.30 2005 1,755 1.095 - 1.350 2,314 -- 1.55 - 2.65 4.16 - 10.02 2004 1,146 1.099 - 1.227 1,383 -- 1.55 - 2.65 4.35 - 13.58 2003 204 1.116 - 1.121 229 -- 1.70 - 2.50 6.08 - 11.23
110 5. FINANCIAL HIGHLIGHTS
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000s) HIGHEST ($) ($000s) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------------- ---------- ------------- ---------------- ----------------- DWSII Large Cap Value 2007 2,093 1.311 - 1.581 3,178 1.30 1.55 - 2.65 9.80 - 11.03 Subaccount (Class B) 2006 2,093 1.104 - 1.424 2,876 1.17 1.55 - 2.65 11.90 - 13.20 2005 2,178 0.985 - 1.258 2,650 1.42 1.55 - 2.65 (1.10) - 1.52 2004 1,853 1.078 - 1.258 2,291 0.23 1.55 - 2.65 1.55 - 9.81 2003 122 1.159 - 1.164 142 -- 1.70 - 2.50 8.22 - 15.26 DWSII Mid Cap Growth 2007 635 1.327 - 1.555 964 -- 1.55 - 2.45 5.32 - 6.29 Subaccount (Class B) 2006 620 1.260 - 1.463 888 -- 1.55 - 2.45 3.35 - 12.95 2005 536 1.168 - 1.344 705 -- 1.55 - 2.45 5.69 - 12.85 2004 413 1.044 - 1.191 486 -- 1.55 - 2.45 0.94 - 16.70 2003 17 1.164 19 -- 2.10 (0.26) DWSII Moderate Allocation 2007 13,894 1.135 - 1.260 17,238 2.22 1.55 - 2.55 2.44 - 3.45 Subaccount (Class B) 2006 14,481 1.108 - 1.218 17,442 0.87 1.55 - 2.55 8.10 - 9.24 2005 14,106 1.025 - 1.115 15,627 -- 1.55 - 2.55 2.60 - 5.84 2004 4,088 1.075 - 1.078 4,398 -- 1.55 - 2.30 1.42 - 6.22 DWSII Money Market 2007 4,611 1.012 - 1.047 4,765 4.40 1.55 - 2.55 0.79 - 2.95 Subaccount (Class B) 2006 4,882 0.990 - 1.017 4,920 4.19 1.55 - 2.55 1.60 - 2.62 2005 3,008 0.972 - 1.000 2,965 2.52 1.55 - 2.55 0.10 - 0.92 2004 2,361 0.971 - 0.987 2,311 0.61 1.55 - 2.30 (1.52) - (0.40) 2003 290 0.989 - 0.992 288 0.10 1.55 - 2.10 (0.50) - (0.20) DWSII Small Cap Growth 2007 2,345 1.093 - 1.396 3,151 -- 1.55 - 2.65 3.01 - 4.18 Subaccount (Class B) 2006 2,352 1.060 - 1.340 3,043 -- 1.55 - 2.65 1.99 - 3.24 2005 2,131 1.037 - 1.298 2,688 -- 1.55 - 2.65 (0.36) - 11.53 2004 970 1.064 - 1.235 1,185 -- 1.55 - 2.65 0.49 - 22.16 2003 87 1.132 - 1.133 98 -- 1.90 - 2.10 0.27 - 8.21 DWSII Technology 2007 1,159 1.138 - 1.372 1,543 -- 1.55 - 2.65 (3.20) - 12.09 Subaccount (Class B) 2006 1,004 1.025 - 1.224 1,192 -- 1.55 - 2.65 (7.55) - (1.13) 2005 1,127 1.045 - 1.238 1,363 0.12 1.55 - 2.65 0.58 - 15.49 2004 818 1.043 - 1.217 976 -- 1.55 - 2.65 (0.66) - 13.62 2003 114 1.215 - 1.217 139 -- 1.70 - 2.10 3.58 - 15.48 DWSII Turner Mid Cap Growth 2007 1,456 1.374 - 1.869 2,586 -- 1.55 - 2.65 0.73 - 23.20 Subaccount (Class B) 2006 1,459 1.127 - 1.517 2,114 -- 1.55 - 2.65 (6.86) - 4.62 2005 1,467 1.187 - 1.450 2,052 -- 1.55 - 2.65 4.62 - 12.38 2004 1,107 1.097 - 1.324 1,451 -- 1.55 - 2.50 6.10 - 12.71 2003 92 1.210 - 1.213 111 -- 1.95 - 2.30 2.36 - 16.01 Fidelity VIP Contrafund 2007 13,481 1.559 - 2.046 25,967 0.78 1.55 - 2.60 1.63 - 15.46 Subaccount (Service Class 2) 2006 13,276 1.364 - 1.772 22,196 1.00 1.55 - 2.60 8.51 - 9.72 2005 11,559 1.257 - 1.615 17,783 0.08 1.55 - 2.60 11.70 - 17.26 2004 4,082 1.107 - 1.406 5,658 0.03 1.55 - 2.50 5.13 - 16.00 2003 98 1.234 - 1.240 121 -- 1.55 - 2.30 0.24 - 16.70 Fidelity VIP Dynamic Capital Appreciation 2007 913 1.436 - 1.654 1,484 0.10 1.55 - 2.50 4.08 - 5.08 Subaccount (Service Class 2) 2006 988 1.373 - 1.574 1,533 0.24 1.55 - 2.50 10.95 - 12.03 2005 1,020 1.232 - 1.405 1,417 -- 1.55 - 2.50 17.70 - 26.48 2004 387 1.042 - 1.182 454 -- 1.55 - 2.50 (0.85) - 16.29 2003 115 1.181 - 1.185 136 -- 1.55 - 2.10 3.32 - 7.36
111 5. FINANCIAL HIGHLIGHTS
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000s) HIGHEST ($) ($000s) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------------- ---------- ------------- ---------------- ----------------- Fidelity VIP Mid Cap 2007 13,188 1.734 - 2.529 30,667 0.49 1.55 - 2.60 12.38 - 13.56 Subaccount (Service Class 2) 2006 13,669 1.543 - 2.227 27,993 0.17 1.55 - 2.60 9.51 - 10.63 2005 12,662 1.409 - 2.013 23,741 -- 1.55 - 2.60 14.37 - 16.22 2004 4,744 1.227 - 1.732 8,105 -- 1.55 - 2.50 14.03 - 25.97 2003 135 1.402 - 1.411 190 -- 1.55 - 2.50 5.22 - 12.57 FTVIPT Franklin Rising Dividends 2007 9,440 1.168 - 1.495 13,498 2.39 1.55 - 2.60 (5.19) - (4.23) Securities Subaccount (Class 2) 2006 9,632 1.232 - 1.561 14,539 1.05 1.55 - 2.60 14.18 - 15.37 2005 8,404 1.079 - 1.353 11,153 0.90 1.55 - 2.60 (0.31) - 4.84 2004 4,561 1.074 - 1.329 6,023 0.26 1.55 - 2.50 0.40 - 12.39 2003 68 1.211 - 1.216 82 -- 1.55 - 2.10 1.68 - 13.22 FTVIPT Franklin Small Mid-Cap Growth 2007 4,323 1.270 - 1.772 7,329 -- 1.55 - 2.60 8.36 - 9.52 Securities Subaccount (Class 2) 2006 3,318 1.172 - 1.618 5,110 -- 1.55 - 2.60 (2.74) - 7.01 2005 2,841 1.106 - 1.512 4,165 -- 1.55 - 2.60 2.12 - 9.27 2004 1,763 1.083 - 1.465 2,564 -- 1.55 - 2.60 3.04 - 14.35 2003 121 1.330 - 1.335 161 -- 1.55 - 2.10 (0.82) - 6.12 FTVIPT Templeton Developing Markets 2007 5,256 2.449 - 3.645 17,563 2.20 1.55 - 2.60 1.06 - 26.83 Securities Subaccount (Class 2) 2006 5,399 1.952 - 2.874 14,370 1.05 1.55 - 2.60 24.81 - 26.11 2005 4,916 1.564 - 2.279 10,404 1.19 1.55 - 2.60 22.19 - 26.88 2004 1,742 1.261 - 1.816 3,128 1.52 1.55 - 2.50 5.88 - 28.51 2003 12 1.474 - 1.479 17 -- 1.55 - 2.10 5.57 - 21.63 FTVIPT Templeton Foreign Securities 2007 10,181 1.650 - 2.303 21,786 2.00 1.55 - 2.60 12.47 - 13.67 Subaccount (Class 2) 2006 10,416 1.467 - 2.026 19,734 1.22 1.55 - 2.60 18.40 - 19.60 2005 9,400 1.239 - 1.694 15,074 1.14 1.55 - 2.60 6.60 - 10.44 2004 3,390 1.153 - 1.562 5,239 0.57 1.55 - 2.60 4.34 - 16.82 2003 195 1.333 - 1.338 260 -- 1.55 - 2.10 6.28 - 9.80 Janus Aspen Global Life Sciences 2007 167 1.796 - 1.860 306 -- 1.55 - 2.30 18.94 - 19.85 Subaccount (Service Shares) 2006 156 1.510 - 1.552 238 -- 1.55 - 2.30 3.92 - 4.65 2005 157 1.453 - 1.483 230 -- 1.55 - 2.30 9.74 - 10.67 2004 157 1.324 - 1.340 209 -- 1.55 - 2.30 1.07 - 12.42 2003 15 1.189 - 1.192 18 -- 1.55 - 1.95 7.02 - 8.96 Janus Aspen Global Technology 2007 1,559 1.433 - 1.918 2,856 0.65 1.55 - 2.40 8.62 - 19.80 Subaccount (Service Shares) 2006 659 1.206 - 1.601 999 -- 1.55 - 2.40 5.24 - 6.17 2005 536 1.146 - 1.508 766 -- 1.55 - 2.40 4.56 - 23.46 2004 279 1.217 - 1.373 381 -- 1.55 - 2.30 (1.37) - 3.49 2003 9 1.382 - 1.386 12 -- 1.55 - 1.95 (0.86) - 9.05 Janus Aspen Worldwide Growth 2007 176 1.635 - 1.677 290 0.57 1.55 - 2.10 7.07 - 7.64 Subaccount (Service Shares) 2006 163 1.515 - 1.558 251 1.64 1.55 - 2.30 12.31 - 16.18 2005 165 1.322 - 1.341 219 1.34 1.55 - 2.10 3.36 - 3.95 2004 106 1.279 - 1.290 136 1.18 1.55 - 2.10 (4.19) - 2.87 2003 30 1.250 - 1.254 38 0.25 1.55 - 1.95 11.76 - 13.53 LMPVET Aggressive Growth Subaccount (Class I) (b) 2007 4,852 1.203 - 1.602 7,204 -- 1.55 - 2.50 (5.02) - (4.42) LMPVET Aggressive Growth Subaccount (Class II) (b) 2007 4,748 1.185 - 1.566 6,941 -- 1.55 - 2.60 (5.20) - (4.51)
112 5. FINANCIAL HIGHLIGHTS
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000s) HIGHEST ($) ($000s) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------------- ---------- ------------- ---------------- ----------------- LMPVET Appreciation Subaccount (Class I) (b) 2007 1,072 1.260 - 1.591 1,646 1.02 1.55 - 2.40 2.27 - 2.84 LMPVET Equity Index 2007 8,658 1.253 - 1.581 13,108 1.57 1.55 - 2.50 2.37 - 3.27 Subaccount (Class II) 2006 9,130 1.224 - 1.531 13,422 1.34 1.55 - 2.50 12.22 - 13.41 2005 9,144 1.089 - 1.350 11,923 1.48 1.55 - 2.50 1.70 - 8.80 2004 5,183 1.072 - 1.316 6,722 3.15 1.55 - 2.50 5.08 - 10.47 2003 239 1.208 - 1.212 290 1.73 1.55 - 2.10 5.49 - 14.81 LMPVET Fundamental Value Subaccount (ClassI) (b) 2007 2,906 1.215 - 1.659 4,590 1.21 1.55 - 2.60 (5.70) - (5.04) LMPVET Investors 2007 1,909 1.331 - 1.730 3,080 1.24 1.55 - 2.50 1.35 - 2.31 Subaccount (Class I) 2006 1,948 1.308 - 1.691 3,092 1.66 1.55 - 2.50 15.32 - 16.46 2005 1,832 1.129 - 1.452 2,550 1.40 1.55 - 2.50 3.89 - 4.84 2004 1,277 1.081 - 1.385 1,743 3.68 1.55 - 2.50 7.66 - 9.86 2003 55 1.266 - 1.274 70 2.35 1.55 - 2.50 5.64 - 13.55 LMPVET Large Cap Growth Subaccount (ClassI) (b) 2007 1,812 1.077 - 1.426 2,440 0.04 1.55 - 2.50 (1.16) - (0.56) LMPVET Small Cap Growth 2007 2,663 1.402 - 2.013 4,921 -- 1.55 - 2.60 7.19 - 8.28 Subaccount (Class I) 2006 2,870 1.308 - 1.859 4,926 -- 1.55 - 2.60 9.92 - 11.05 2005 2,880 1.190 - 1.674 4,492 -- 1.55 - 2.60 1.10 - 3.27 2004 1,599 1.166 - 1.621 2,522 -- 1.55 - 2.50 1.39 - 25.00 2003 192 1.425 - 1.430 274 -- 1.55 - 2.10 3.63 - 21.29 LMPVET Social Awareness 2007 823 1.202 - 1.263 1,016 1.40 1.55 - 2.50 8.09 - 9.21 Subaccount 2006 816 1.112 - 1.162 926 0.55 1.55 - 2.50 5.10 - 6.05 2005 727 1.058 - 1.102 779 0.91 1.55 - 2.50 1.83 - 4.08 2004 267 1.039 - 1.077 278 1.43 1.55 - 2.50 0.00 - 12.42 LMPVPI All Cap 2007 -- 1.296 - 1.747 -- 0.29 1.55 - 2.50 4.66 - 4.92 Subaccount (Class I) (a) 2006 2,869 1.238 - 1.665 4,544 1.39 1.55 - 2.50 15.19 - 16.27 2005 2,874 1.074 - 1.432 3,928 1.02 1.55 - 2.50 1.45 - 10.49 2004 1,925 1.059 - 1.398 2,644 1.09 1.55 - 2.50 5.68 - 13.60 2003 186 1.302 - 1.311 244 0.54 1.55 - 2.50 7.83 - 16.37 LMPVPI All Cap 2007 -- 1.233 - 1.261 -- 0.04 1.55 - 2.60 2.53 - 4.82 Subaccount (Class II) (a) 2006 188 1.180 - 1.203 225 2.20 1.55 - 2.60 4.93 - 16.01 2005 23 1.027 - 1.037 23 0.63 1.55 - 2.60 1.58 - 8.02 LMPVPII Growth and Income 2007 -- 1.232 - 1.547 -- 0.06 1.55 - 2.40 4.14 - 4.46 Subaccount (Class I) (a) 2006 1,170 1.183 - 1.481 1,670 0.41 1.55 - 2.40 9.74 - 11.84 2005 1,151 1.078 - 1.338 1,490 0.41 1.55 - 2.40 1.22 - 2.06 2004 878 1.065 - 1.311 1,134 2.13 1.55 - 2.40 2.36 - 8.77 2003 57 1.225 - 1.229 70 0.55 1.55 - 1.95 5.06 - 7.24 LMPVPI Large Cap Growth 2007 -- 1.087 - 1.434 -- -- 1.55 - 2.50 3.83 - 4.16 Subaccount (Class I) (a) 2006 2,012 1.045 - 1.377 2,611 -- 1.55 - 2.50 1.68 - 2.68 2005 2,073 1.023 - 1.341 2,653 0.02 1.55 - 2.50 2.67 - 3.55 2004 1,359 0.992 - 1.295 1,723 0.39 1.55 - 2.50 (4.19) - 13.94 2003 106 1.303 - 1.308 139 -- 1.55 - 2.10 3.66 - 14.44
113 5. FINANCIAL HIGHLIGHTS
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000s) HIGHEST ($) ($000s) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------------- ---------- ------------- ---------------- ----------------- LMPVPII Aggressive Growth 2007 -- 1.266 - 1.676 -- -- 1.55 - 2.50 3.26 - 3.52 Subaccount (Class I) (a) 2006 5,658 1.226 - 1.619 8,461 -- 1.55 - 2.50 8.32 - 9.39 2005 5,529 1.131 - 1.480 7,653 -- 1.55 - 2.50 7.13 - 17.99 2004 2,209 1.056 - 1.368 2,975 -- 1.55 - 2.50 (1.53) - 13.30 2003 122 1.265 - 1.274 155 -- 1.55 - 2.50 4.20 - 13.14 LMPVPII Aggressive Growth 2007 -- 1.250 - 1.640 -- -- 1.55 - 2.60 3.14 - 3.47 Subaccount (Class II) (a) 2006 4,745 1.212 - 1.585 7,132 -- 1.55 - 2.60 7.93 - 9.08 2005 3,681 1.123 - 1.453 5,212 -- 1.55 - 2.60 6.85 - 17.48 2004 2,435 1.051 - 1.346 3,257 -- 1.55 - 2.60 (0.89) - 10.69 2003 146 1.252 - 1.257 184 -- 1.55 - 2.10 (0.08) - 7.45 LMPVET Capital and Income Subaccount (Class II) (b) 2007 3,621 1.086 - 1.372 4,781 1.23 1.55 - 2.70 (1.75) - 0.00 LMPVIT Adjustable Rate Income 2007 2,401 0.985 - 1.026 2,424 4.35 1.55 - 2.50 (1.10) - (0.19) Subaccount 2006 2,895 0.996 - 1.028 2,941 4.21 1.55 - 2.60 1.41 - 2.49 2005 3,439 0.981 - 1.003 3,417 3.88 1.55 - 2.60 (0.20) - 0.80 2004 1,531 0.983 - 0.999 1,515 2.81 1.55 - 2.60 (0.91) - (0.10) 2003 24 0.998 - 0.999 24 0.46 1.55 - 1.70 0.00 - 0.10 LMPVPI Total Return 2007 -- 1.096 - 1.372 -- 0.57 1.55 - 2.70 2.42 - 2.85 Subaccount (Class II) (a) 2006 3,314 1.069 - 1.334 4,295 2.23 1.55 - 2.70 2.00 - 10.52 2005 2,172 1.056 - 1.207 2,591 2.12 1.55 - 2.60 (0.85) - 3.22 2004 1,125 1.117 - 1.191 1,333 4.47 1.55 - 2.50 0.09 - 6.82 2003 80 1.112 - 1.115 89 0.77 1.55 - 1.95 3.15 - 8.58 Lord Abbett Growth and Income 2007 -- 1.308 - 1.682 -- -- 1.55 - 2.60 3.62 - 3.89 Subaccount (Class VC) (a) 2006 9,932 1.262 - 1.619 15,035 1.28 1.55 - 2.60 14.21 - 15.48 2005 9,339 1.105 - 1.402 12,372 1.31 1.55 - 2.60 0.74 - 4.69 2004 3,180 1.099 - 1.379 4,334 2.24 1.55 - 2.50 2.01 - 14.21 2003 169 1.239 - 1.243 210 1.69 1.55 - 2.10 4.98 - 12.93 Lord Abbett Mid-Cap Value 2007 -- 1.477 - 1.995 -- -- 1.55 - 2.50 9.90 - 10.22 Subaccount (Class VC) (a) 2006 7,690 1.343 - 1.810 13,037 0.49 1.55 - 2.50 9.46 - 10.50 2005 8,163 1.226 - 1.638 12,646 0.58 1.55 - 2.50 5.55 - 13.54 2004 3,089 1.160 - 1.537 4,701 0.80 1.55 - 2.50 3.66 - 21.96 2003 108 1.252 - 1.257 136 2.19 1.70 - 2.30 7.90 - 16.90 MIST Batterymarch Mid-Cap Stock 2007 3,112 1.302 - 1.792 5,296 0.31 1.55 - 2.60 3.33 - 4.43 Subaccount (Class A) 2006 3,217 1.260 - 1.716 5,268 -- 1.55 - 2.60 (5.48) - (4.77) MIST BlackRock High Yield 2007 9,128 1.152 - 1.331 11,725 5.40 1.44 - 2.39 (3.11) - 1.14 Subaccount (Class A) 2006 4,114 1.157 - 1.316 5,267 -- 1.55 - 2.50 4.78 - 5.45 MIST BlackRock Large-Cap Core Subaccount (Class E) (b) 2007 2,586 1.415 - 1.724 4,252 -- 1.55 - 2.60 (0.77) - (0.06) MIST BlackRock Large-Cap Core 2007 -- 1.426 - 1.725 -- 0.69 1.55 - 2.60 4.53 - 4.86 Subaccount (Class A) (a) 2006 3,099 1.364 - 1.645 4,905 -- 1.55 - 2.60 5.17 - 5.92 MIST Dreman Small-Cap Value 2007 381 1.293 - 1.322 499 -- 1.55 - 2.40 (3.29) - (2.51) Subaccount (Class A) 2006 276 1.335 - 1.356 371 0.64 1.55 - 2.50 (0.37) - 9.48
114 5. FINANCIAL HIGHLIGHTS
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000s) HIGHEST ($) ($000s) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------------- ---------- ------------- ---------------- ----------------- MIST Harris Oakmark International 2007 3,949 1.477 - 1.924 7,220 0.95 1.54 - 2.59 (3.40) - (2.34) Subaccount (Class A) 2006 3,322 1.529 - 1.970 6,267 -- 1.51 - 2.56 9.45 - 17.50 MIST Janus Forty 2007 5,161 1.717 - 2.172 10,611 0.17 1.55 - 2.60 27.09 - 28.44 Subaccount (Class A) 2006 5,188 1.351 - 1.691 8,292 -- 1.55 - 2.60 1.87 - 2.55 MIST Lazard Mid-Cap Subaccount (Class B) (b) 2007 385 1.105 - 1.127 430 -- 1.55 - 2.30 (12.79) - (12.36) MIST Legg Mason Partners Managed 2007 3,583 1.197 - 1.240 4,379 2.38 1.55 - 2.50 3.73 - 4.73 Assets Subaccount (Class A) 2006 3,675 1.154 - 1.186 4,309 -- 1.55 - 2.50 5.00 - 5.71 MIST Lord Abbett Bond Debenture 2007 2,966 1.180 - 1.387 3,988 5.58 1.55 - 2.50 4.24 - 5.24 Subaccount (Class A) 2006 3,146 1.131 - 1.318 4,037 -- 1.55 - 2.50 4.17 - 4.77 MIST Lord Abbett Growth and Income 2007 26,022 1.084 - 1.104 28,509 0.53 1.30 - 2.35 (2.43) - 2.41 Subaccount (Class B) 2006 14,276 1.071 - 1.078 15,344 -- 1.30 - 2.25 6.99 - 7.69 MIST Lord Abbett Mid-Cap Value 2007 11,639 1.045 - 1.062 12,277 0.03 1.55 - 2.50 (10.68) - (0.93) Subaccount (Class B) 2006 100 1.066 - 1.072 107 -- 1.55 - 2.40 (0.47) - 14.41 MIST Met/AIM Capital Appreciation 2007 1,935 1.267 - 1.596 2,899 0.09 1.55 - 2.60 9.04 - 10.14 Subaccount (Class A) 2006 2,015 1.162 - 1.449 2,762 0.18 1.55 - 2.60 (1.86) - (1.16) MIST Met/AIM Capital Appreciation Subaccount (Class E) (b) 2007 4,459 1.253 - 1.574 6,777 -- 1.55 - 2.60 2.45 - 3.08 MIST Met/AIM Small Cap Growth 2007 320 1.358 - 1.388 439 -- 1.55 - 2.40 8.81 - 9.72 Subaccount (Class A) 2006 151 1.248 - 1.265 190 -- 1.55 - 2.40 (1.27) - 14.44 MIST MFS Emerging Markets Equity Subaccount (Class A) (b) 2007 1,831 2.040 - 3.509 6,019 -- 1.55 - 2.65 24.32 - 25.28 MIST MFS Research International Subaccount (Class B) (b) 2007 898 1.798 - 2.326 2,036 -- 1.55 - 2.30 (2.43) - 4.49 MIST MFS Value 2007 6,311 1.425 - 1.475 9,216 -- 1.55 - 2.50 5.01 - 5.96 Subaccount (Class A) 2006 5,845 1.357 - 1.399 8,086 1.33 1.55 - 2.50 9.79 - 10.56 MIST Neuberger Berman Real Estate 2007 12,750 1.006 - 1.024 12,977 1.09 1.55 - 2.60 (17.00) - (16.13) Subaccount (Class A) 2006 14,706 1.212 - 1.221 17,906 -- 1.55 - 2.60 20.84 - 21.73 MIST Oppenheimer Capital Appreciation 2007 6,037 1.115 - 1.134 6,810 -- 1.55 - 2.60 11.39 - 12.50 Subaccount (Class B) 2006 5,584 1.001 - 1.008 5,617 -- 1.55 - 2.60 0.70 - 1.41 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (b) 2007 10,145 1.080 - 1.214 11,977 -- 1.55 - 2.60 5.58 - 6.30 MIST Pioneer Fund 2007 710 1.328 - 1.606 1,096 0.90 1.55 - 2.50 2.40 - 3.41 Subaccount (Class A) 2006 915 1.291 - 1.553 1,367 -- 1.55 - 2.50 6.91 - 7.55 MIST Pioneer Mid-Cap Value 2007 -- 1.267 - 1.286 -- 0.42 1.55 - 2.30 9.47 - 10.48 Subaccount (Class A) (a) 2006 403 1.151 - 1.164 467 0.25 1.55 - 2.30 1.05 - 7.93
115 5. FINANCIAL HIGHLIGHTS
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000s) HIGHEST ($) ($000s) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------------- ---------- ------------- ---------------- ----------------- MIST Pioneer Strategic Income 2007 7,953 1.176 - 1.222 9,597 0.69 1.55 - 2.60 3.90 - 5.00 Subaccount (Class A) 2006 7,967 1.131 - 1.170 9,185 4.88 1.55 - 2.60 2.85 - 3.57 MIST Third Avenue Small Cap Value 2007 23,927 0.965 - 0.983 23,369 0.55 1.55 - 2.60 (10.65) - (4.47) Subaccount (Class B) 2006 11,793 1.023 - 1.029 12,101 -- 1.55 - 2.50 1.99 - 2.59 MSF BlackRock Aggressive Growth 2007 3,419 1.301 - 1.791 5,818 -- 1.55 - 2.50 17.41 - 18.61 Subaccount (Class D) 2006 3,413 1.106 - 1.510 4,887 -- 1.55 - 2.50 (2.98) - (2.39) MSF BlackRock Bond Income 2007 7,720 1.057 - 1.114 8,451 3.22 1.55 - 2.50 3.60 - 4.70 Subaccount (Class A) 2006 7,799 1.017 - 1.064 8,186 -- 1.55 - 2.50 3.32 - 3.91 MSF BlackRock Money Market 2007 32,798 1.023 - 1.069 34,537 4.94 1.55 - 2.70 0.38 - 3.38 Subaccount (Class A) 2006 22,531 0.999 - 1.034 22,986 3.30 1.55 - 2.70 1.09 - 2.27 MSF FI Large Cap 2007 3,476 1.161 - 1.427 4,555 0.16 1.55 - 2.60 1.22 - 2.37 Subaccount (Class A) 2006 3,768 1.147 - 1.394 4,864 -- 1.55 - 2.60 0.70 - 1.38 MSF FI Value Leaders 2007 7,652 1.212 - 1.519 11,077 0.83 1.55 - 2.60 1.34 - 2.50 Subaccount (Class D) 2006 7,806 1.196 - 1.482 11,076 -- 1.55 - 2.60 1.96 - 2.63 MSF MetLife Aggressive Allocation 2007 1,927 1.060 - 1.078 2,058 0.05 1.55 - 2.60 0.66 - 1.60 Subaccount (Class B) 2006 1,577 1.053 - 1.061 1,666 -- 1.55 - 2.60 5.09 - 5.89 MSF MetLife Conservative Allocation 2007 2,606 1.067 - 1.084 2,799 -- 1.55 - 2.50 (0.09) - 3.93 Subaccount (Class B) 2006 2,593 1.036 - 1.043 2,695 -- 1.55 - 2.50 0.97 - 5.80 MSF MetLife Conservative to Moderate 2007 3,662 1.068 - 1.083 3,940 -- 1.55 - 2.40 1.04 - 3.66 Allocation Subaccount (Class B) 2006 1,853 1.044 - 1.050 1,939 -- 1.55 - 2.40 3.77 - 4.79 MSF MetLife Moderate Allocation 2007 11,761 1.067 - 1.084 12,644 0.01 1.55 - 2.50 1.81 - 2.75 Subaccount (Class B) 2006 10,582 1.048 - 1.055 11,126 -- 1.55 - 2.50 4.59 - 9.92 MSF MetLife Moderate to Aggressive 2007 6,204 1.065 - 1.084 6,674 0.03 1.55 - 2.60 (2.26) - 2.26 Allocation Subaccount (Class B) 2006 6,709 1.052 - 1.060 7,085 -- 1.55 - 2.60 4.99 - 5.79 MSF MFS Total Return 2007 5,033 1.077 - 1.099 5,484 1.81 1.55 - 2.75 (3.47) - 2.52 Subaccount (Class B) 2006 3,929 1.064 - 1.072 4,198 -- 1.55 - 2.65 6.08 - 6.88 MSF MFS Total Return 2007 24,421 1.226 - 1.419 33,326 1.96 1.55 - 2.50 1.57 - 2.60 Subaccount (Class F) 2006 25,723 1.205 - 1.383 34,428 -- 1.55 - 2.50 6.26 - 6.88 MSF Oppenheimer Global Equity 2007 30,426 1.081 - 1.101 33,273 0.89 1.55 - 2.60 3.54 - 4.66 Subaccount (Class B) 2006 33,480 1.044 - 1.052 35,113 -- 1.39 - 2.54 4.82 - 5.62 MSF T. Rowe Price Large Cap Growth 2007 2,390 1.131 - 1.149 2,730 0.19 1.55 - 2.50 (2.24) - 7.48 Subaccount (Class B) 2006 2,365 1.062 - 1.069 2,523 -- 1.55 - 2.50 6.41 - 7.11 MSF Western Asset Management High 2007 -- 1.163 - 1.199 -- 10.16 1.55 - 2.50 3.47 - 3.82 Yield Bond Subaccount (Class A) (a) 2006 6,377 1.124 - 1.157 7,320 -- 1.55 - 2.50 5.64 - 6.37 MSF Western Asset Management 2007 5,392 1.067 - 1.117 5,929 2.77 1.40 - 2.45 1.86 - 2.89 U.S. Government Subaccount (Class A) 2006 5,918 1.046 - 1.091 6,345 -- 1.40 - 2.45 2.77 - 3.47
116 5. FINANCIAL HIGHLIGHTS
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000s) HIGHEST ($) ($000s) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------------- ---------- ------------- ---------------- ----------------- PIMCO VIT Real Return 2007 -- 1.020 - 1.141 -- 1.55 1.55 - 2.60 1.72 - 1.98 Subaccount (Administrative Class) (a) 2006 10,340 1.002 - 1.119 11,306 4.24 1.55 - 2.60 (1.89) - (0.80) 2005 9,967 1.018 - 1.128 11,053 2.92 1.55 - 2.60 (0.56) - 0.66 2004 4,188 1.020 - 1.122 4,667 1.18 1.55 - 2.60 1.23 - 7.47 2003 331 1.043 - 1.047 346 0.38 1.55 - 2.10 (1.23) - 2.45 PIMCO VIT Total Return 2007 23,835 1.095 - 1.155 27,021 4.80 1.55 - 2.60 5.98 - 7.04 Subaccount (Administrative Class) 2006 24,626 1.030 - 1.079 26,181 4.42 1.55 - 2.60 1.15 - 2.27 2005 22,715 1.014 - 1.055 23,715 3.59 1.55 - 2.60 (0.19) - 0.86 2004 8,552 1.011 - 1.046 8,894 1.99 1.55 - 2.60 0.10 - 3.26 2003 649 1.007 - 1.013 656 1.33 1.55 - 2.50 (1.37) - 3.58 Pioneer America Income VCT 2007 -- 1.022 - 1.077 -- 3.94 1.55 - 2.70 2.51 - 3.79 Subaccount (Class II) (c) 2006 8,439 0.993 - 1.042 8,589 4.41 1.55 - 2.70 0.49 - 2.55 2005 7,379 0.985 - 1.031 7,418 4.46 1.55 - 2.60 (1.16) - 0.41 2004 3,712 0.990 - 1.034 3,730 4.63 1.55 - 2.50 (1.19) - 3.07 2003 95 0.993 - 0.995 94 0.66 1.55 - 1.95 (0.10) - 1.22 Pioneer Bond VCT Subaccount (Class II) (d) 2007 8,897 1.090 - 1.092 9,707 0.65 1.55 - 2.70 9.00 - 9.20 Pioneer Cullen Value VCT 2007 6,349 1.274 - 1.312 8,261 0.80 1.55 - 2.60 2.32 - 4.79 Subaccount (Class II) 2006 4,297 1.229 - 1.252 5,355 0.17 1.55 - 2.60 4.91 - 15.29 2005 1,318 1.077 - 1.086 1,427 -- 1.55 - 2.60 0.65 - 10.74 Pioneer Emerging Markets VCT 2007 4,034 3.178 - 4.474 16,567 0.34 1.55 - 2.60 38.78 - 40.25 Subaccount (Class II) 2006 3,673 2.290 - 3.190 10,763 0.34 1.55 - 2.60 18.94 - 33.42 2005 2,674 1.734 - 2.391 6,191 0.46 1.55 - 2.60 31.92 - 39.65 2004 1,557 1.294 - 1.764 2,728 0.56 1.55 - 2.60 0.00 - 28.02 2003 55 1.505 - 1.510 82 -- 1.55 - 2.10 1.28 - 18.69 Pioneer Equity Income VCT 2007 7,595 1.347 - 1.703 12,465 2.30 1.55 - 2.60 (2.04) - (0.99) Subaccount (Class II) 2006 7,097 1.375 - 1.720 11,862 2.42 1.55 - 2.60 11.13 - 20.28 2005 5,594 1.155 - 1.430 7,879 2.23 1.55 - 2.60 0.61 - 4.05 2004 3,021 1.127 - 1.377 4,140 3.12 1.55 - 2.50 2.36 - 14.27 2003 101 1.201 - 1.205 121 0.92 1.55 - 2.10 4.43 - 10.56 Pioneer Equity Opportunity VCT 2007 -- 1.339 - 1.377 -- 0.18 1.55 - 2.60 (5.61) - 10.07 Subaccount (Class II) (c) 2006 158 1.228 - 1.251 196 0.32 1.55 - 2.60 (0.88) - 17.46 2005 30 1.058 - 1.065 32 -- 1.55 - 2.40 (1.21) - 8.45 Pioneer Fund VCT 2007 10,620 1.301 - 1.633 16,551 1.06 1.55 - 2.60 2.12 - 3.16 Subaccount (Class II) 2006 6,575 1.274 - 1.583 10,009 1.13 1.55 - 2.60 13.35 - 14.63 2005 5,875 1.124 - 1.381 7,912 1.16 1.55 - 2.60 3.21 - 6.18 2004 3,497 1.089 - 1.324 4,598 1.17 1.55 - 2.60 0.74 - 13.11 2003 336 1.208 - 1.213 407 0.74 1.55 - 2.10 0.25 - 12.86 Pioneer Global High Yield VCT 2007 4,530 1.069 - 1.154 5,154 8.08 1.55 - 2.75 (0.71) - 0.52 Subaccount (Class II) 2006 3,095 1.075 - 1.148 3,517 7.29 1.55 - 2.75 2.37 - 10.28 2005 670 1.032 - 1.041 696 4.80 1.55 - 2.60 (0.48) - 5.06 Pioneer High Yield VCT 2007 10,357 1.068 - 1.357 13,519 5.08 1.55 - 2.75 0.66 - 3.98 Subaccount (Class II) 2006 11,739 1.044 - 1.305 14,826 5.26 1.55 - 2.70 0.17 - 6.62 2005 8,126 1.074 - 1.224 9,833 5.23 1.55 - 2.60 (0.83) - 1.99 2004 6,312 1.087 - 1.223 7,686 5.01 1.55 - 2.50 1.21 - 6.93 2003 332 1.148 - 1.152 382 2.37 1.55 - 2.10 1.68 - 9.09
117 5. FINANCIAL HIGHLIGHTS
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000s) HIGHEST ($) ($000s) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------------- ---------- ------------- ---------------- ----------------- Pioneer Ibbotson Aggressive Allocation VCT 2007 4,404 1.236 - 1.266 5,526 1.26 1.55 - 2.40 2.66 - 3.60 Subaccount (Class II) 2006 3,637 1.204 - 1.222 4,420 0.26 1.55 - 2.40 6.56 - 12.63 2005 1,079 1.078 - 1.085 1,166 -- 1.55 - 2.40 2.56 - 10.94 Pioneer Ibbotson Growth Allocation VCT 2007 91,686 1.089 - 1.230 110,642 1.01 1.55 - 2.90 2.74 - 4.06 Subaccount (Class II) 2006 55,528 1.060 - 1.182 64,825 0.14 1.55 - 2.90 5.35 - 10.99 2005 4,439 1.058 - 1.065 4,711 -- 1.55 - 2.40 0.95 - 9.15 Pioneer Ibbotson Moderate Allocation VCT 2007 48,332 1.081 - 1.190 56,545 1.01 1.55 - 2.70 2.85 - 4.02 Subaccount (Class II) 2006 33,498 1.051 - 1.144 37,907 0.30 1.55 - 2.70 (0.26) - 8.95 2005 4,663 1.043 - 1.050 4,880 -- 1.55 - 2.40 2.44 - 7.28 Pioneer Independence VCT 2007 1,704 1.207 - 1.394 2,298 -- 1.55 - 2.60 4.68 - 5.77 Subaccount (Class II) 2006 1,390 1.153 - 1.318 1,778 -- 1.55 - 2.60 1.57 - 12.18 2005 1,184 1.086 - 1.228 1,424 0.58 1.55 - 2.60 (0.44) - 3.52 2004 799 1.189 - 1.208 962 -- 1.55 - 2.50 4.18 - 10.55 2003 77 1.149 - 1.154 88 -- 1.55 - 2.10 0.17 - 2.58 Pioneer International Value VCT 2007 2,695 1.729 - 2.295 5,797 0.31 1.55 - 2.60 10.34 - 11.46 Subaccount (Class II) 2006 2,234 1.567 - 2.059 4,369 0.26 1.55 - 2.60 19.44 - 20.69 2005 873 1.312 - 1.706 1,457 0.06 1.55 - 2.60 9.65 - 18.76 2004 504 1.480 - 1.504 752 0.32 1.55 - 2.50 12.62 - 16.59 2003 16 1.286 - 1.290 21 -- 1.55 - 1.95 12.41 - 12.76 Pioneer Mid Cap Value VCT 2007 6,362 1.345 - 1.928 11,422 0.58 1.55 - 2.60 2.67 - 3.71 Subaccount (Class II) 2006 5,978 1.310 - 1.859 10,453 -- 1.55 - 2.60 9.35 - 10.52 2005 5,101 1.198 - 1.682 8,245 0.21 1.55 - 2.60 (0.07) - 5.99 2004 2,609 1.143 - 1.587 4,112 0.17 1.55 - 2.50 0.78 - 19.86 2003 205 1.317 - 1.324 271 -- 1.55 - 2.30 7.24 - 11.20 Pioneer Oak Ridge Large Cap Growth VCT 2007 4,884 1.189 - 1.257 6,041 0.19 1.55 - 2.60 5.41 - 6.44 Subaccount (Class II) 2006 4,896 1.128 - 1.181 5,709 0.03 1.55 - 2.60 (1.18) - 1.20 2005 3,982 1.127 - 1.167 4,610 0.14 1.55 - 2.60 4.59 - 10.98 2004 1,455 1.070 - 1.095 1,589 -- 1.55 - 2.50 (0.09) - 11.01 Pioneer Real Estate Shares VCT 2007 4,048 1.470 - 2.035 7,785 2.52 1.55 - 2.60 (21.18) - (6.17) Subaccount (Class II) 2006 4,537 1.859 - 2.555 11,118 2.40 1.55 - 2.60 20.87 - 34.40 2005 3,540 1.462 - 1.901 6,588 3.29 1.55 - 2.60 4.24 - 18.55 2004 1,875 1.310 - 1.681 3,137 4.29 1.55 - 2.30 4.13 - 41.52 2003 99 1.256 - 1.261 125 2.94 1.55 - 2.10 (0.16) - 15.69 Pioneer Small and Mid Cap Growth VCT 2007 -- 1.266 - 1.388 -- -- 1.55 - 2.60 17.11 - 18.23 Subaccount (Class II) (c) 2006 1,958 1.081 - 1.174 2,261 -- 1.55 - 2.60 1.05 - 8.48 2005 1,575 1.029 - 1.106 1,724 -- 1.55 - 2.60 1.47 - 6.69 2004 794 1.010 - 1.074 850 -- 1.55 - 2.40 (1.11) - 5.29 Pioneer Small Cap Value VCT 2007 4,166 1.255 - 1.797 6,895 0.51 1.55 - 2.60 (9.58) - (8.60) Subaccount (Class II) 2006 4,228 1.388 - 1.966 7,797 -- 1.55 - 2.60 11.22 - 12.41 2005 2,736 1.248 - 1.749 4,661 -- 1.55 - 2.60 8.39 - 18.16 2004 1,455 1.156 - 1.599 2,314 -- 1.55 - 2.50 3.96 - 19.94 2003 182 1.348 - 1.355 247 -- 1.55 - 2.30 8.00 - 10.49
118 5. FINANCIAL HIGHLIGHTS
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000s) HIGHEST ($) ($000s) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------------- ---------- ------------- ---------------- ----------------- Pioneer Strategic Income VCT 2007 17,800 1.064 - 1.301 22,422 5.15 1.55 - 2.70 3.30 - 4.50 Subaccount (Class II) 2006 15,977 1.030 - 1.245 19,447 5.17 1.55 - 2.70 3.39 - 4.62 2005 13,239 1.060 - 1.190 15,555 5.58 1.55 - 2.60 (0.18) - 1.79 2004 7,013 1.097 - 1.179 8,226 5.63 1.55 - 2.60 0.18 - 8.26 2003 552 1.085 - 1.089 601 2.51 1.55 - 2.10 0.18 - 6.06 Pioneer Value VCT 2007 -- 1.231 - 1.528 -- 2.74 1.55 - 2.60 (0.73) - 0.13 Subaccount (Class II) (c) 2006 4,146 1.240 - 1.526 6,072 0.22 1.55 - 2.60 12.12 - 13.29 2005 3,810 1.106 - 1.347 5,010 0.09 1.55 - 2.60 (0.07) - 6.14 2004 2,559 1.085 - 1.307 3,321 0.04 1.55 - 2.60 0.46 - 11.26 2003 76 1.187 - 1.192 91 0.03 1.55 - 2.10 3.56 - 8.09 Putnam VT International Equity 2007 -- 2.161 - 2.226 -- 2.83 1.55 - 2.30 8.05 - 8.27 Subaccount (Class IB) (a) 2006 356 2.000 - 2.056 724 0.62 1.55 - 2.30 24.77 - 25.75 2005 378 1.603 - 1.635 613 1.38 1.55 - 2.30 9.64 - 10.47 2004 327 1.462 - 1.480 482 1.46 1.55 - 2.30 13.60 - 14.37 2003 73 1.287 - 1.294 95 -- 1.55 - 2.30 7.92 - 13.76 Putnam VT Small Cap Value 2007 -- 1.509 - 2.310 -- 0.55 1.55 - 2.60 6.46 - 6.80 Subaccount (Class IB) (a) 2006 7,589 1.416 - 2.163 14,986 0.32 1.55 - 2.60 14.33 - 15.48 2005 7,439 1.235 - 1.873 12,828 0.14 1.55 - 2.60 0.42 - 10.99 2004 3,522 1.180 - 1.777 6,159 0.06 1.55 - 2.50 3.02 - 25.92 2003 119 1.423 - 1.430 169 -- 1.55 - 2.30 4.84 - 27.62 Van Kampen LIT Comstock 2007 8,374 1.242 - 1.642 12,611 1.58 1.55 - 2.50 (4.73) - (3.86) Subaccount (Class II) 2006 9,180 1.302 - 1.708 14,496 1.27 1.55 - 2.50 13.18 - 14.25 2005 9,419 1.149 - 1.495 13,086 0.64 1.55 - 2.50 1.53 - 5.03 2004 3,433 1.133 - 1.458 4,944 0.31 1.55 - 2.50 3.91 - 15.62 2003 229 1.255 - 1.261 288 -- 1.55 - 2.30 6.90 - 14.05 Van Kampen LIT Enterprise 2007 128 1.463 - 1.501 190 0.15 1.55 - 2.10 10.08 - 10.69 Subaccount (Class II) 2006 130 1.329 - 1.356 175 0.18 1.55 - 2.10 4.56 - 5.20 2005 128 1.271 - 1.289 164 0.46 1.55 - 2.10 5.65 - 6.18 2004 126 1.203 - 1.214 152 0.04 1.55 - 2.10 1.77 - 5.80 2003 21 1.185 - 1.188 25 -- 1.55 - 1.95 2.78 - 5.79
(1) The Company sells a number of variable annuity products which have unique combinations of features and fees that are charged against the contract owner's account balance. Differences in the fee structures result in a variety of unit values, expense ratios, and total returns. (2) These amounts represent the dividends, excluding distributions of capital gains, received by the Subaccount from the underlying portfolio, series, or fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense risk charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The investment income ratio is calculated for each period indicated or from the effective date through the end of the reporting period. The recognition of investment income by the Subaccount is affected by the timing of the declaration of dividends by the underlying portfolio, series, or fund in which the Subaccount invests. (3) These amounts represent the annualized contract expenses of the Separate Account, consisting primarily of mortality and expense risk charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying portfolio, series, or fund have been excluded. (4) These amounts represent the total return for the period indicated, including changes in the value of the underlying portfolio, series, or fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract total returns are not within the ranges presented. (a) For the period January1, 2007 to April 27, 2007. (b) For the period April30, 2007 to December 31, 2007. (c) For the period January1, 2007 to November 9, 2007. (d) For the period November12, 2007 to December 31, 2007. 119 6. SCHEDULES OF ACCUMULATION UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
AIM V.I. MID CAP CORE EQUITY AIM V.I. UTILITIES AIM V.I. CAPITAL APPRECIATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERIES II) (SERIES I) (SERIES II) ---------------------------- -------------------- ---------------------------- 2007 2006 2007 2006 2007 (a) 2006 ------------- ------------- ---------- --------- -------------- ------------ Accumulation units beginning of year 1,823,430 1,719,897 1,341,715 1,222,977 4,167,301 3,727,550 Accumulation units issued and transferred from other funding options 329,756 451,093 276,827 381,339 197,560 953,140 Accumulation units redeemed and transferred to other funding options (389,422) (347,560) (348,519) (262,601) (4,364,861) (513,389) --------- --------- --------- --------- ---------- --------- Accumulation units end of year 1,763,764 1,823,430 1,270,023 1,341,715 -- 4,167,301 ========= ========= ========= ========= ========== =========
AMERICAN FUNDS GROWTH CREDIT SUISSE TRUST CREDIT SUISSE TRUST SUBACCOUNT EMERGING MARKETS GLOBAL SMALL CAP (CLASS 2) SUBACCOUNT SUBACCOUNT ---------------------- --------------------- ------------------- 2007 2006 2007 (a) 2006 2007 2006 ---------- ---------- ---------- --------- --------- -------- Accumulation units beginning of year 33,890,233 32,711,932 2,016,848 1,918,047 504,122 447,132 Accumulation units issued and transferred from other funding options 1,867,433 4,297,613 85,397 410,923 81,688 128,585 Accumulation units redeemed and transferred to other funding options (4,630,599) (3,119,312) (2,102,245) (312,122) (163,194) (71,595) ---------- ---------- ---------- --------- -------- ------- Accumulation units end of year 31,127,067 33,890,233 -- 2,016,848 422,616 504,122 ========== ========== ========== ========= ======== =======
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 120
ALGER AMERICAN AMERICAN FUNDS AMERICAN FUNDS LEVERAGED ALLCAP GLOBAL GROWTH GROWTH-INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS S) (CLASS 2) (CLASS 2) --------------------- ---------------------- ---------------------- 2007 2006 2007 2006 2007 2006 --------- --------- ---------- ---------- ---------- ---------- Accumulation units beginning of year 1,428,189 967,064 11,327,782 9,664,246 31,309,671 29,867,942 Accumulation units issued and transferred from other funding options 911,453 1,547,142 2,140,353 2,798,905 1,321,568 3,822,444 Accumulation units redeemed and transferred to other funding options (322,625) (1,086,017) (1,693,285) (1,135,369) (3,720,330) (2,380,715) --------- --------- ---------- ---------- ---------- ---------- Accumulation units end of year 2,017,017 1,428,189 11,774,850 11,327,782 28,910,909 31,309,671 ========= ========= ========== ========== ========== ==========
DREYFUS SOCIALLY DREYFUS MIDCAP STOCK RESPONSIBLE GROWTH DREYFUS VIF APPRECIATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE SHARES) (SERVICE SHARES) (INITIAL SHARES) -------------------- ------------------ ------------------------ 2007 2006 2007 2006 2007 2006 --------- --------- -------- -------- ----------- ---------- Accumulation units beginning of year 3,562,336 3,581,835 239,136 243,937 1,849,997 1,820,257 Accumulation units issued and transferred from other funding options 235,752 473,462 15,376 17,946 56,196 202,190 Accumulation units redeemed and transferred to other funding options (718,512) (492,961) (41,363) (22,747) (222,942) (172,450) --------- --------- ------- ------- --------- --------- Accumulation units end of year 3,079,576 3,562,336 213,149 239,136 1,683,251 1,849,997 ========= ========= ======= ======= ========= =========
121 6. SCHEDULES OF ACCUMULATION UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
DREYFUS VIF DWS VIT DWS VIT RREEF DEVELOPING LEADERS EQUITY 500 INDEX REAL ESTATE SECURITIES SUBACCOUNT SUBACCOUNT SUBACCOUNT (INITIAL SHARES) (CLASS 2) (CLASS B) -------------------- -------------------- ---------------------- 2007 2006 2007 2006 2007 2006 --------- --------- --------- --------- --------- --------- Accumulation units beginning of year 6,138,061 5,910,602 4,482,020 4,581,625 2,993,707 3,081,435 Accumulation units issued and transferred from other funding options 457,307 856,650 1,007,274 130,897 483,792 327,513 Accumulation units redeemed and transferred to other funding options (643,095) (629,191) (775,159) (230,502) (596,051) (415,241) --------- --------- --------- --------- --------- --------- Accumulation units end of year 5,952,273 6,138,061 4,714,135 4,482,020 2,881,448 2,993,707 ========= ========= ========= ========= ========= =========
DWSI CAPITAL GROWTH DWSI GROWTH & INCOME DWSI HEALTH CARE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ---------------------- -------------------- -------------------- 2007 2006 2007 2006 2007 2006 ---------- ---------- --------- --------- --------- --------- Accumulation units beginning of year 6,117,071 3,508,968 5,105,253 3,621,286 2,070,255 2,153,075 Accumulation units issued and transferred from other funding options 711,649 3,653,924 174,110 2,302,701 232,949 211,313 Accumulation units redeemed and transferred to other funding options (1,321,570) (1,045,821) (732,048) (818,734) (268,203) (294,133) ---------- ---------- --------- --------- --------- --------- Accumulation units end of year 5,507,150 6,117,071 4,547,315 5,105,253 2,035,001 2,070,255 ========== ========== ========= ========= ========= =========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 122
DWSI GLOBAL OPPORTUNITIES DWSII BALANCED DWSI BOND SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ------------------------- -------------------- ---------------- 2007 2006 2007 2006 2007 2006 --------- --------- --------- --------- ------- ------- Accumulation units beginning of year 1,695,520 1,725,554 3,358,797 3,988,934 164,445 51,780 Accumulation units issued and transferred from other funding options 320,112 245,891 70,012 275,420 813,413 122,831 Accumulation units redeemed and transferred to other funding options (235,379) (275,925) (431,750) (905,557)(469,823) (10,166) --------- --------- --------- --------- -------- ------- Accumulation units end of year 1,780,253 1,695,520 2,997,059 3,358,797 508,035 164,445 ========= ========= ========= ========= ======== =======
DWSII INTERNATIONAL DWSII STRATEGIC INCOME DWSII BLUE CHIP SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) -------------------- ---------------------- ---------------------- 2007 2006 2007 2006 2007 2006 --------- --------- ---------- ---------- ---------- ---------- Accumulation units beginning of year 2,931,211 1,832,877 4,484,148 4,406,818 3,736,156 3,864,532 Accumulation units issued and transferred from other funding options 284,221 1,625,828 853,117 1,091,893 1,405,123 1,606,502 Accumulation units redeemed and transferred to other funding options (389,782) (527,494) (1,231,652) (1,014,563) (1,412,470) (1,734,878) --------- --------- ---------- ---------- ---------- ---------- Accumulation units end of year 2,825,650 2,931,211 4,105,613 4,484,148 3,728,809 3,736,156 ========= ========= ========== ========== ========== ==========
123 6. SCHEDULES OF ACCUMULATION UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
DWSII DWSII DWSII CONSERVATIVE ALLOCATION CORE FIXED INCOME DAVIS VENTURE VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ----------------------- --------------------- -------------------- 2007 2006 2007 2006 2007 2006 --------- --------- --------- ---------- --------- --------- Accumulation units beginning of year 9,736,937 6,415,915 6,082,456 6,450,173 6,525,305 6,218,858 Accumulation units issued and transferred from other funding options 567,570 4,304,151 775,746 640,305 924,969 1,197,184 Accumulation units redeemed and transferred to other funding options (996,457) (983,129) (425,863) (1,008,022) (740,426) (890,737) --------- --------- --------- ---------- --------- --------- Accumulation units end of year 9,308,050 9,736,937 6,432,339 6,082,456 6,709,848 6,525,305 ========= ========= ========= ========== ========= =========
DWSII GOVERNMENT & AGENCY SECURITIES DWSII GROWTH ALLOCATION DWSII HIGH INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) --------------------- ----------------------- --------------------- 2007 2006 2007 2006 2007 2006 ---------- --------- ----------- ---------- ---------- --------- Accumulation units beginning of year 1,536,570 1,465,842 15,020,557 15,355,054 4,371,814 4,575,042 Accumulation units issued and transferred from other funding options 2,894,350 361,115 199,607 1,733,154 657,422 645,706 Accumulation units redeemed and transferred to other funding options (3,022,995) (290,387) (1,475,840) (2,067,651) (1,153,008) (848,934) ---------- --------- ---------- ---------- ---------- --------- Accumulation units end of year 1,407,925 1,536,570 13,744,324 15,020,557 3,876,228 4,371,814 ========== ========= ========== ========== ========== =========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 124
DWSII DREMAN DWSII DREMAN DWSII HIGH RETURN EQUITY SMALL MID CAP VALUE GLOBAL THEMATIC SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ---------------------- -------------------- -------------------- 2007 2006 2007 2006 2007 2006 ---------- ---------- --------- --------- --------- --------- Accumulation units beginning of year 12,289,457 8,634,012 4,782,849 4,743,295 2,262,472 1,911,607 Accumulation units issued and transferred from other funding options 940,231 4,577,342 346,432 709,429 551,390 668,695 Accumulation units redeemed and transferred to other funding options (1,517,394) (921,897) (927,452) (669,875) (384,106) (317,830) ---------- ---------- --------- --------- --------- --------- Accumulation units end of year 11,712,294 12,289,457 4,201,829 4,782,849 2,429,756 2,262,472 ========== ========== ========= ========= ========= =========
DWSII INTERNATIONAL DWSII DWSII SELECT EQUITY JANUS GROWTH & INCOME LARGE CAP VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) -------------------- --------------------- ------------------- 2007 2006 2007 2006 2007 2006 --------- --------- --------- --------- -------- --------- Accumulation units beginning of year 2,720,551 2,731,496 1,761,679 1,755,072 2,093,220 2,178,193 Accumulation units issued and transferred from other funding options 813,826 441,196 105,964 323,340 286,392 98,580 Accumulation units redeemed and transferred to other funding options (539,971) (452,141) (324,216) (316,733) (286,739) (183,553) --------- --------- --------- --------- --------- --------- Accumulation units end of year 2,994,406 2,720,551 1,543,427 1,761,679 2,092,873 2,093,220 ========= ========= ========= ========= ========= =========
125 6. SCHEDULES OF ACCUMULATION UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
DWSII MID CAP GROWTH DWSII MODERATE ALLOCATION DWSII MONEY MARKET SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) -------------------- ------------------------- ---------------------- 2007 2006 2007 2006 2007 2006 -------- -------- ---------- ---------- ---------- ---------- Accumulation units beginning of year 619,590 535,680 14,480,930 14,105,725 4,881,772 3,008,146 Accumulation units issued and transferred from other funding options 218,719 190,825 684,692 1,990,699 9,539,157 7,382,314 Accumulation units redeemed and transferred to other funding options (203,132) (106,915) (1,272,031) (1,615,494) (9,810,312) (5,508,688) -------- -------- ---------- ---------- ---------- ---------- Accumulation units end of year 635,177 619,590 13,893,591 14,480,930 4,610,617 4,881,772 ======== ======== ========== ========== ========== ==========
FIDELITY VIP FIDELITY VIP DYNAMIC FIDELITY VIP CONTRAFUND CAPITAL APPRECIATION MID CAP SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE CLASS 2) (SERVICE CLASS 2) (SERVICE CLASS 2) ---------------------- -------------------- ---------------------- 2007 2006 2007 2006 2007 2006 ---------- ---------- -------- --------- ---------- ---------- Accumulation units beginning of year 13,276,383 11,558,934 987,639 1,019,630 13,668,604 12,661,865 Accumulation units issued and transferred from other funding options 1,624,741 2,663,803 144,271 183,819 1,197,289 2,294,370 Accumulation units redeemed and transferred to other funding options (1,419,773) (946,354) (218,941) (215,810) (1,677,846) (1,287,631) ---------- ---------- -------- -------- ---------- ---------- Accumulation units end of year 13,481,351 13,276,383 912,969 987,639 13,188,047 13,668,604 ========== ========== ======== ======== ========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 126
DWSII TURNER DWSII SMALL CAP GROWTH DWSII TECHNOLOGY MID CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ---------------------- -------------------- -------------------- 2007 2006 2007 2006 2007 2006 --------- --------- --------- --------- --------- --------- Accumulation units beginning of year 2,351,746 2,131,360 1,004,327 1,127,295 1,459,226 1,467,222 Accumulation units issued and transferred from other funding options 423,475 443,283 447,411 138,566 233,208 163,309 Accumulation units redeemed and transferred to other funding options (430,265) (222,897) (292,449) (261,534) (236,341) (171,305) --------- --------- --------- --------- --------- --------- Accumulation units end of year 2,344,956 2,351,746 1,159,289 1,004,327 1,456,093 1,459,226 ========= ========= ========= ========= ========= =========
FTVIPT FRANKLIN FTVIPT FRANKLIN SMALL MID-CAP FTVIPT TEMPLETON RISING DIVIDENDS SECURITIES GROWTH SECURITIES DEVELOPING MARKETS SECURITIES SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS 2) (CLASS 2) (CLASS 2) --------------------------- -------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 --------- --------- --------- --------- ----------- ----------- Accumulation units beginning of year 9,631,983 8,404,286 3,318,352 2,841,043 5,399,345 4,916,065 Accumulation units issued and transferred from other funding options 1,815,168 2,400,678 1,606,442 1,028,179 1,157,528 1,529,889 Accumulation units redeemed and transferred to other funding options (2,007,015) (1,172,981) (602,041) (550,870) (1,300,557) (1,046,609) ---------- ---------- --------- --------- ---------- ---------- Accumulation units end of year 9,440,136 9,631,983 4,322,753 3,318,352 5,256,316 5,399,345 ========== ========== ========= ========= ========== ==========
127 6. SCHEDULES OF ACCUMULATION UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
FTVIPT JANUS ASPEN JANUS ASPEN TEMPLETON FOREIGN SECURITIES GLOBAL LIFE SCIENCES GLOBAL TECHNOLOGY SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS 2) (SERVICE SHARES) (SERVICE SHARES) ---------------------------- -------------------- ------------------ 2007 2006 2007 2006 2007 2006 ------------- ------------- --------- --------- --------- ------- Accumulation units beginning of year 10,416,476 9,400,022 155,572 157,194 659,196 535,707 Accumulation units issued and transferred from other funding options 1,966,388 2,442,002 40,398 1,816 956,872 199,091 Accumulation units redeemed and transferred to other funding options (2,201,869) (1,425,548) (29,110) (3,438) (57,413) (75,602) ---------- ---------- ------- ------- --------- ------- Accumulation units end of year 10,180,995 10,416,476 166,860 155,572 1,558,655 659,196 ========== ========== ======= ======= ========= =======
LMPVET APPRECIATION LMPVET EQUITY INDEX LMPVET FUNDAMENTAL VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS II) (CLASS I) ------------------- --------------------- ------------------------ 2007 (b) 2006 2007 2006 2007 (b) 2006 ---------- ---- --------- ---------- ------------ ------- Accumulation units beginning of year -- -- 9,129,895 9,143,966 -- -- Accumulation units issued and transferred from other funding options 1,184,416 -- 499,090 1,086,227 3,037,012 -- Accumulation units redeemed and transferred to other funding options (112,861) -- (970,744) (1,100,298) (131,245) -- --------- --- --------- --------- --------- --- Accumulation units end of year 1,071,555 -- 8,658,241 9,129,895 2,905,767 -- ========= === ========= ========= ========= ===
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 128
JANUS ASPEN LMPVET LMPVET WORLDWIDE GROWTH AGGRESSIVE GROWTH AGGRESSIVE GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE SHARES) (CLASS I) (CLASS II) ---------------- ----------------- ----------------- 2007 2006 2007 (b) 2006 2007 (b) 2006 ------- ------- --------- ---- --------- ---- Accumulation units beginning of year 163,227 164,893 -- -- -- -- Accumulation units issued and transferred from other funding options 37,029 3,522 5,720,120 -- 5,163,546 -- Accumulation units redeemed and transferred to other funding options (24,133) (5,188) (868,227) -- (415,709) -- ------- ------- --------- --- --------- --- Accumulation units end of year 176,123 163,227 4,851,893 -- 4,747,837 -- ======= ======= ========= === ========= ===
LMPVET INVESTORS LMPVET LARGE CAP GROWTH LMPVET SMALL CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS I) (CLASS I) -------------------- ----------------------- ----------------------- 2007 2006 2007 (b) 2006 2007 2006 --------- --------- ------------ --------- ----------- ---------- Accumulation units beginning of year 1,947,674 1,832,284 -- -- 2,869,723 2,879,621 Accumulation units issued and transferred from other funding options 54,645 292,625 1,985,499 -- 118,818 471,394 Accumulation units redeemed and transferred to other funding options (93,696) (177,235) (173,480) -- (325,682) (481,292) --------- --------- --------- --- --------- --------- Accumulation units end of year 1,908,623 1,947,674 1,812,019 -- 2,662,859 2,869,723 --------- --------- --------- --- --------- ---------
129 6. SCHEDULES OF ACCUMULATION UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
LMPVET LMPVPI ALL CAP LMPVPI ALL CAP SOCIAL AWARENESS SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS II) ---------------- --------------------- ----------------- 2007 2006 2007 (a) 2006 2007 (a) 2006 ------- ------- ---------- --------- -------- ------- Accumulation units beginning of year 815,931 726,696 2,869,332 2,873,516 188,198 22,789 Accumulation units issued and transferred from other funding options 16,208 108,865 19,736 154,965 17,716 166,677 Accumulation units redeemed and transferred to other funding options (9,359) (19,630) (2,889,068) (159,149) (205,914) (1,268) ------- ------- ---------- --------- -------- ------- Accumulation units end of year 822,780 815,931 -- 2,869,332 -- 188,198 ======= ======= ========== ========= ======== =======
LMPVPII LMPVET AGGRESSIVE GROWTH CAPITAL AND INCOME LMPVIT SUBACCOUNT SUBACCOUNT ADJUSTABLE RATE INCOME (CLASS II) (CLASS II) SUBACCOUNT --------------------- ------------------ ---------------------- 2007 (a) 2006 2007 (b) 2006 2007 2006 ---------- --------- --------- ---- --------- ----------- Accumulation units beginning of year 4,745,180 3,680,636 -- -- 2,894,867 3,439,397 Accumulation units issued and transferred from other funding options 296,482 1,608,782 3,884,299 -- 111,567 989,908 Accumulation units redeemed and transferred to other funding options (5,041,662) (544,238) (263,670) -- (605,303) (1,534,438) ---------- --------- --------- ---- --------- ----------- Accumulation units end of year -- 4,745,180 3,620,629 -- 2,401,131 2,894,867 ========== ========= ========= ==== ========= ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 130
LMPVPII LMPVPI LMPVPII GROWTH AND INCOME LARGE CAP GROWTH AGGRESSIVE GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS I) (CLASS I) --------------------- --------------------- --------------------- 2007 (a) 2006 2007 (a) 2006 2007 (a) 2006 ---------- --------- ---------- --------- ---------- --------- Accumulation units beginning of year 1,170,026 1,150,610 2,012,091 2,072,507 5,658,321 5,529,157 Accumulation units issued and transferred from other funding options 19,254 73,093 38,411 234,618 180,607 821,206 Accumulation units redeemed and transferred to other funding options (1,189,280) (53,677) (2,050,502) (295,034) (5,838,928) (692,042) ---------- --------- ---------- --------- ---------- --------- Accumulation units end of year -- 1,170,026 -- 2,012,091 -- 5,658,321 ========== ========= ========== ========= ========== =========
LORD ABBETT LORD ABBETT LMPVPI TOTAL RETURN GROWTH AND INCOME MID-CAP VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS VC) (CLASS VC) --------------------- ---------------------- ---------------------- 2007 (a) 2006 2007 (a) 2006 2007 (a) 2006 ---------- --------- ----------- --------- ---------- ---------- Accumulation units beginning of year 3,314,367 2,171,929 9,932,005 9,338,526 7,690,373 8,163,451 Accumulation units issued and transferred from other funding options 228,874 1,371,443 124,553 1,233,150 118,079 816,651 Accumulation units redeemed and transferred to other funding options (3,543,241) (229,005) (10,056,558) (639,671) (7,808,452) (1,289,729) ---------- --------- ----------- --------- ---------- ---------- Accumulation units end of year -- 3,314,367 -- 9,932,005 -- 7,690,373 ========== ========= =========== ========= ========== ==========
131 6. SCHEDULES OF ACCUMULATION UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST BATTERYMARCH MIST BLACKROCK MIST BLACKROCK MID-CAP STOCK HIGH YIELD LARGE-CAP CORE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS E) -------------------- --------------------- --------------- 2007 2006 2007 2006 2007 (b) 2006 --------- --------- ---------- --------- --------- ---- Accumulation units beginning of year 3,216,940 -- 4,113,595 -- -- -- Accumulation units issued and transferred from other funding options 193,746 3,363,071 6,208,300 4,343,746 3,125,272 -- Accumulation units redeemed and transferred to other funding options (298,598) (146,131) (1,194,377) (230,151) (539,006) -- --------- --------- --------- --------- --------- --- Accumulation units end of year 3,112,088 3,216,940 9,127,518 4,113,595 2,586,266 -- ========= ========= ========= ========= ========= ===
MIST LEGG MASON PARTNERS MIST JANUS FORTY MIST LAZARD MID-CAP MANAGED ASSETS SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS A) -------------------- ------------------- ------------------------ 2007 2006 2007 (b) 2006 2007 2006 --------- --------- --------- ---- --------- --------- Accumulation units beginning of year 5,188,079 -- -- -- 3,675,447 -- Accumulation units issued and transferred from other funding options 566,824 5,762,736 401,107 -- 118,770 3,943,353 Accumulation units redeemed and transferred to other funding options (594,085) (574,657) (16,058) -- (211,594) (267,906) --------- --------- ------- --- --------- --------- Accumulation units end of year 5,160,818 5,188,079 385,049 -- 3,582,623 3,675,447 ========= ========= ======= === ========= =========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 132
MIST BLACKROCK MIST DREMAN MIST HARRIS OAKMARK LARGE-CAP CORE SMALL-CAP VALUE INTERNATIONAL SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) --------------------- ------------------ -------------------- 2007 (a) 2006 2007 2006 2007 2006 ---------- --------- -------- -------- --------- --------- Accumulation units beginning of year 3,099,244 -- 275,512 -- 3,322,398 -- Accumulation units issued and transferred from other funding options 16,857 3,302,279 316,207 381,716 1,429,651 3,611,302 Accumulation units redeemed and transferred to other funding options (3,116,101) (203,035) (211,038) (106,204) (803,285) (288,904) ---------- --------- -------- -------- --------- --------- Accumulation units end of year -- 3,099,244 380,681 275,512 3,948,764 3,322,398 ========== ========= ======== ======== ========= =========
MIST LORD ABBETT MIST LORD ABBETT MIST LORD ABBETT BOND DEBENTURE GROWTH AND INCOME MID-CAP VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS B) --------------------- ---------------------- ------------------- 2007 2006 2007 2006 2007 2006 ---------- --------- ---------- ---------- ---------- ------- Accumulation units beginning of year 3,146,161 -- 14,275,553 -- 99,669 -- Accumulation units issued and transferred from other funding options 576,718 3,433,474 14,856,127 14,993,449 12,918,221 108,274 Accumulation units redeemed and transferred to other funding options (756,597) (287,313) (3,109,457) (717,896) (1,378,605) (8,605) --------- --------- ---------- ---------- ---------- ------ Accumulation units end of year 2,966,282 3,146,161 26,022,223 14,275,553 11,639,285 99,669 ========= ========= ========== ========== ========== ======
133 6. SCHEDULES OF ACCUMULATION UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST MET/AIM MIST MET/AIM MIST MET/AIM CAPITAL APPRECIATION CAPITAL APPRECIATION SMALL CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS E) (CLASS A) -------------------- -------------------- ----------------- 2007 2006 2007 (b) 2006 2007 2006 --------- --------- --------- ---- -------- ------- Accumulation units beginning of year 2,015,446 -- -- -- 151,251 -- Accumulation units issued and transferred from other funding options 86,651 2,139,092 4,971,536 -- 314,696 154,551 Accumulation units redeemed and transferred to other funding options (167,318) (123,646) (512,247) -- (146,233) (3,300) --------- --------- --------- --- ------- ------- Accumulation units end of year 1,934,779 2,015,446 4,459,289 -- 319,714 151,251 ========= ========= ========= === ======= =======
MIST NEUBERGER BERMAN MIST OPPENHEIMER MIST PIMCO REAL ESTATE CAPITAL APPRECIATION INFLATION PROTECTED BOND SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS A) ---------------------- --------------------- ------------------------ 2007 2006 2007 2006 2007 (b) 2006 ---------- ---------- ---------- --------- ---------- ---- Accumulation units beginning of year 14,706,355 -- 5,583,958 -- -- -- Accumulation units issued and transferred from other funding options 1,900,596 16,175,653 1,593,063 6,236,033 11,241,613 -- Accumulation units redeemed and transferred to other funding options (3,856,920) (1,469,298) (1,140,259) (652,075) (1,096,790) -- ---------- ---------- ---------- --------- ---------- --- Accumulation units end of year 12,750,031 14,706,355 6,036,762 5,583,958 10,144,823 -- ========== ========== ========== ========= ========== ===
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 134
MIST MFS EMERGING MIST MFS RESEARCH MARKETS EQUITY INTERNATIONAL MIST MFS VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS A) ----------------- ----------------- -------------------- 2007 (b) 2006 2007 (b) 2006 2007 2006 --------- ---- -------- ---- --------- --------- Accumulation units beginning of year -- -- -- -- 5,844,597 -- Accumulation units issued and transferred from other funding options 2,153,591 -- 937,540 -- 1,441,701 6,289,699 Accumulation units redeemed and transferred to other funding options (322,705) -- (39,259) -- (974,994) (445,102) --------- --- ------- --- --------- --------- Accumulation units end of year 1,830,886 -- 898,281 -- 6,311,304 5,844,597 ========= === ======= === ========= =========
MIST PIONEER MIST PIONEER MIST PIONEER FUND MID-CAP VALUE STRATEGIC INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) ----------------- ---------------- -------------------- 2007 2006 2007 (a) 2006 2007 2006 ------- ------- -------- ------ --------- --------- Accumulation units beginning of year 915,160 -- 403,004 -- 7,966,865 -- Accumulation units issued and transferred from other funding options 67,103 936,567 7,134 444,589 939,399 8,557,312 Accumulation units redeemed and transferred to other funding options (272,490) (21,407) (410,138) (41,585) (952,979) (590,447) -------- ------- -------- ------- --------- --------- Accumulation units end of year 709,773 915,160 -- 403,004 7,953,285 7,966,865 ======== ======= ======== ======= ========= =========
135 6. SCHEDULES OF ACCUMULATION UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST THIRD AVENUE MSF BLACKROCK MSF BLACKROCK SMALL CAP VALUE AGGRESSIVE GROWTH BOND INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS D) (CLASS A) ---------------------- -------------------- -------------------- 2007 2006 2007 2006 2007 2006 ---------- ---------- --------- --------- --------- --------- Accumulation units beginning of year 11,792,862 -- 3,413,185 -- 7,798,698 -- Accumulation units issued and transferred from other funding options 15,734,507 12,210,404 392,831 3,578,209 737,988 8,462,148 Accumulation units redeemed and transferred to other funding options (3,600,075) (417,542) (387,135) (165,024) (816,797) (663,450) ---------- ---------- --------- --------- --------- --------- Accumulation units end of year 23,927,294 11,792,862 3,418,881 3,413,185 7,719,889 7,798,698 ========== ========== ========= ========= ========= =========
MSF METLIFE MSF METLIFE MSF METLIFE CONSERVATIVE TO AGGRESSIVE ALLOCATION CONSERVATIVE ALLOCATION MODERATE ALLOCATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) --------------------- ----------------------- --------------------- 2007 2006 2007 2006 2007 2006 ---------- --------- ---------- ----------- --------- ---------- Accumulation units beginning of year 1,576,664 -- 2,592,542 -- 1,853,011 -- Accumulation units issued and transferred from other funding options 569,918 1,713,712 847,935 2,641,429 3,144,748 1,952,711 Accumulation units redeemed and transferred to other funding options (219,409) (137,048) (834,669) (48,887) (1,336,214) (99,700) --------- --------- --------- --------- ---------- --------- Accumulation units end of year 1,927,173 1,576,664 2,605,808 2,592,542 3,661,545 1,853,011 ========= ========= ========= ========= ========== =========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 136
MSF BLACKROCK MONEY MARKET MSF FI LARGE CAP MSF FI VALUE LEADERS SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS D) -------------------------- -------------------- --------------------- 2007 2006 2007 2006 2007 2006 ----------- ----------- --------- --------- --------- ---------- Accumulation units beginning of year 22,531,235 -- 3,768,467 -- 7,805,775 -- Accumulation units issued and transferred from other funding options 34,307,877 34,590,620 113,449 3,952,303 470,362 8,124,164 Accumulation units redeemed and transferred to other funding options (24,040,617) (12,059,385) (405,727) (183,836) (624,559) (318,389) ----------- ----------- --------- --------- --------- --------- Accumulation units end of year 32,798,495 22,531,235 3,476,189 3,768,467 7,651,578 7,805,775 =========== =========== ========= ========= ========= =========
MSF METLIFE MSF METLIFE MODERATE TO MODERATE ALLOCATION AGGRESSIVE ALLOCATION MSF MFS TOTAL RETURN SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) ---------------------- --------------------- --------------------- 2007 2006 2007 2006 2007 2006 ---------- ---------- ---------- --------- ---------- --------- Accumulation units beginning of year 10,582,466 -- 6,708,557 -- 3,929,278 -- Accumulation units issued and transferred from other funding options 2,471,387 11,263,109 1,679,272 7,282,341 1,590,076 4,242,002 Accumulation units redeemed and transferred to other funding options (1,293,116) (680,643) (2,184,319) (573,784) (486,637) (312,724) ---------- ---------- ---------- --------- --------- --------- Accumulation units end of year 11,760,737 10,582,466 6,203,510 6,708,557 5,032,717 3,929,278 ========== ========== ========== ========= ========= =========
137 6. SCHEDULES OF ACCUMULATION UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MSF OPPENHEIMER MSF T. ROWE PRICE MSF MFS TOTAL RETURN GLOBAL EQUITY LARGE CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS F) (CLASS B) (CLASS B) ---------------------- ---------------------- ------------------- 2007 2006 2007 2006 2007 2006 ---------- ---------- ---------- ---------- -------- --------- Accumulation units beginning of year 25,722,813 -- 33,479,697 -- 2,365,014 -- Accumulation units issued and transferred from other funding options 1,167,773 27,356,393 2,303,702 36,311,128 224,399 2,635,279 Accumulation units redeemed and transferred to other funding options (2,469,417) (1,633,580) (5,356,933) (2,831,431) (199,525) (270,265) ---------- ---------- ---------- ---------- --------- --------- Accumulation units end of year 24,421,169 25,722,813 30,426,466 33,479,697 2,389,888 2,365,014 ========== ========== ========== ========== ========= =========
PIMCO VIT TOTAL RETURN PIONEER AMERICA INCOME VCT PIONEER BOND VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (ADMINISTRATIVE CLASS) (CLASS II) (CLASS II) ---------------------- -------------------------- ---------------- 2007 2006 2007 (c) 2006 2007 (d) 2006 ---------- ---------- ----------- ---------- --------- ---- Accumulation units beginning of year 24,626,133 22,715,127 8,438,521 7,378,651 -- -- Accumulation units issued and transferred from other funding options 2,349,273 3,933,547 3,663,714 3,095,937 9,125,288 -- Accumulation units redeemed and transferred to other funding options (3,140,604) (2,022,541) (12,102,235) (2,036,067) (227,940) -- ---------- ---------- ----------- ---------- --------- --- Accumulation units end of year 23,834,802 24,626,133 -- 8,438,521 8,897,348 -- ========== ========== =========== ========== ========= ===
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 138
MSF WESTERN ASSET MSF WESTERN ASSET MANAGEMENT MANAGEMENT PIMCO VIT HIGH YIELD BOND U.S. GOVERNMENT REAL RETURN SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (ADMINISTRATIVE CLASS) --------------------- --------------------- ------------------------ 2007 (a) 2006 2007 2006 2007 (a) 2006 ---------- --------- ---------- --------- ----------- ----------- Accumulation units beginning of year 6,376,927 -- 5,917,674 -- 10,339,811 9,966,865 Accumulation units issued and transferred from other funding options 376,308 6,932,418 635,895 6,558,211 477,387 1,820,158 Accumulation units redeemed and transferred to other funding options (6,753,235) (555,491) (1,162,059) (640,537) (10,817,198) (1,447,212) ---------- -------- ---------- --------- ----------- ---------- Accumulation units end of year -- 6,376,927 5,391,510 5,917,674 -- 10,339,811 ========== ======== ========== ========= =========== ==========
PIONEER EMERGING PIONEER CULLEN VALUE VCT MARKETS VCT PIONEER EQUITY INCOME VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) ------------------------ -------------------- ------------------------- 2007 2006 2007 2006 2007 2006 --------- --------- --------- --------- ---------- ----------- Accumulation units beginning of year 4,297,206 1,317,687 3,672,536 2,673,916 7,097,228 5,593,506 Accumulation units issued and transferred from other funding options 2,431,693 3,347,734 1,120,206 1,638,593 1,882,074 2,656,143 Accumulation units redeemed and transferred to other funding options (380,226) (368,215) (758,750) (639,973) (1,384,548) (1,152,421) --------- --------- --------- --------- ---------- ---------- Accumulation units end of year 6,348,673 4,297,206 4,033,992 3,672,536 7,594,754 7,097,228 ========= ========= ========= ========= ========== ==========
139 6. SCHEDULES OF ACCUMULATION UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
PIONEER EQUITY OPPORTUNITY VCT PIONEER FUND VCT PIONEER GLOBAL HIGH YIELD VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) ------------------ --------------------- ----------------------------- 2007 (c) 2006 2007 2006 2007 2006 -------- -------- ---------- --------- ---------- --------- Accumulation units beginning of year 157,920 29,930 6,574,991 5,875,325 3,094,636 670,475 Accumulation units issued and transferred from other funding options 643,206 145,078 4,960,574 1,441,436 2,052,285 2,877,657 Accumulation units redeemed and transferred to other funding options (801,126) (17,088) (915,105) (741,770) (616,505) (453,496) -------- ------- ---------- --------- --------- --------- Accumulation units end of year -- 157,920 10,620,460 6,574,991 4,530,416 3,094,636 ======== ======= ========== ========= ========= =========
PIONEER IBBOTSON PIONEER INTERNATIONAL MODERATE ALLOCATION VCT PIONEER INDEPENDENCE VCT VALUE VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) ------------------------- ------------------------ --------------------- 2007 2006 2007 2006 2007 2006 ---------- ---------- ---------- --------- --------- --------- Accumulation units beginning of year 33,497,696 4,662,565 1,389,954 1,184,218 2,234,002 873,269 Accumulation units issued and transferred from other funding options 19,312,093 29,480,619 497,153 343,955 1,190,952 1,498,574 Accumulation units redeemed and transferred to other funding options (4,477,681) (645,488) (183,413) (138,219) (729,634) (137,841) ---------- ---------- --------- --------- --------- --------- Accumulation units end of year 48,332,108 33,497,696 1,703,694 1,389,954 2,695,320 2,234,002 ========== ========== ========= ========= ========= =========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 140
PIONEER IBBOTSON PIONEER IBBOTSON PIONEER HIGH YIELD VCT AGGRESSIVE ALLOCATION VCT GROWTH ALLOCATION VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) ---------------------- ------------------------- ---------------------- 2007 2006 2007 2006 2007 2006 ---------- ---------- ------------ ----------- ---------- ---------- Accumulation units beginning of year 11,739,167 8,125,948 3,636,672 1,079,371 55,528,247 4,438,944 Accumulation units issued and transferred from other funding options 5,048,767 6,964,538 912,353 2,604,253 41,954,885 52,273,408 Accumulation units redeemed and transferred to other funding options (6,430,691) (3,351,319) (145,293) (46,952) (5,796,944) (1,184,105) ---------- ---------- --------- --------- ---------- ---------- Accumulation units end of year 10,357,243 11,739,167 4,403,732 3,636,672 91,686,188 55,528,247 ========== ========== ========= ========= ========== ==========
PIONEER OAK RIDGE PIONEER REAL ESTATE PIONEER MID CAP VALUE VCT LARGE CAP GROWTH VCT SHARES VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) ------------------------- ---------------------- ---------------------- 2007 2006 2007 2006 2007 2006 ----------- ----------- ---------- ---------- ---------- ---------- Accumulation units beginning of year 5,977,757 5,101,198 4,895,868 3,981,959 4,536,822 3,539,719 Accumulation units issued and transferred from other funding options 1,577,586 1,997,504 1,142,360 1,981,145 1,111,440 1,711,288 Accumulation units redeemed and transferred to other funding options (1,192,980) (1,120,945) (1,154,178) (1,067,236) (1,600,366) (714,185) ---------- ---------- ---------- ---------- ---------- --------- Accumulation units end of year 6,362,363 5,977,757 4,884,050 4,895,868 4,047,896 4,536,822 ========== ========== ========== ========== ========== =========
141 6. SCHEDULES OF ACCUMULATION UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
PIONEER SMALL AND MID CAP GROWTH VCT PIONEER SMALL CAP VALUE VCT PIONEER STRATEGIC INCOME VCT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) (CLASS II) ------------------------- --------------------------- ---------------------------- 2007 (c) 2006 2007 2006 2007 2006 ---------- --------- --------- --------- ---------- ---------- Accumulation units beginning of year 1,958,429 1,574,787 4,227,642 2,736,236 15,976,603 13,239,389 Accumulation units issued and transferred from other funding options 575,778 467,306 708,121 2,141,083 4,568,930 4,938,561 Accumulation units redeemed and transferred to other funding options (2,534,207) (83,664) (769,442) (649,677) (2,745,238) (2,201,347) ---------- --------- --------- --------- ---------- ---------- Accumulation units end of year -- 1,958,429 4,166,321 4,227,642 17,800,295 15,976,603 ========== ========= ========= ========= ========== ==========
VAN KAMPEN LIT COMSTOCK VAN KAMPEN LIT ENTERPRISE SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS II) ----------------------- ------------------------- 2007 2006 2007 2006 ---------- ---------- ------- ------- Accumulation units beginning of year 9,180,155 9,419,284 130,233 128,454 Accumulation units issued and transferred from other funding options 711,896 829,323 3,027 4,219 Accumulation units redeemed and transferred to other funding options (1,518,296) (1,068,452) (5,098) (2,440) ---------- ---------- ------- ------- Accumulation units end of year 8,373,755 9,180,155 128,162 130,233 ========== ========== ======= =======
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 142
PIONEER VALUE VCT PUTNAM VT INTERNATIONAL EQUITY PUTNAM VT SMALL CAP VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS II) (CLASS IB) (CLASS IB) --------------------- ------------------------------ ------------------------- 2007 (c) 2006 2007 (a) 2006 2007 (a) 2006 ---------- --------- -------- ------- ---------- --------- Accumulation units beginning of year 4,145,657 3,810,379 355,928 377,849 7,588,935 7,438,554 Accumulation units issued and transferred from other funding options 427,838 790,341 936 26,406 75,921 968,543 Accumulation units redeemed and transferred to other funding options (4,573,495) (455,063) (356,864) (48,327) (7,664,856) (818,162) ---------- --------- -------- ------- ---------- --------- Accumulation units end of year -- 4,145,657 -- 355,928 -- 7,588,935 ========== ========= ======== ======= ========== =========
143 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Contract Owners of MetLife of CT Fund U for Variable Annuities and the Board of Directors of MetLife Insurance Company of Connecticut: We have audited the accompanying statements of assets and liabilities of MetLife of CT Fund U for Variable Annuities (the "Separate Account") of MetLife Insurance Company of Connecticut (the "Company") comprising each of the individual Subaccounts listed in Appendix A as of December 31, 2007, and the related statements of operations for the periods presented in the year then ended, and the statements of changes in net assets for each of the periods presented in the two years then ended. We have also audited the statements of operations for the periods presented in the year ended December 31, 2007, and the statements of changes in net assets for each of the periods presented in the two years then ended for each of the individual Subaccounts listed in Appendix B. These financial statements are the responsibility of the Separate Account's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial highlights of the Separate Account included in Note 5 for the periods in the two years ended December 31, 2004, were audited by other auditors whose report, dated March 21, 2005, expressed an unqualified opinion on those financial highlights. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Separate Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Separate Account's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the Subaccounts constituting the Separate Account of the Company as of December 31, 2007, the results of their operations for the periods presented in the year then ended, and the changes in their net assets for each of the periods presented in the two years then ended, in conformity with accounting principles generally accepted in the United States of America. /s/ DELOITTE & TOUCHE LLP Certified Public Accountants Tampa, FL March 24, 2008 APPENDIX A Dreyfus VIF Developing Leaders Subaccount (Initial Shares) Fidelity VIP Contrafund Subaccount (Service Class 2) Fidelity VIP Equity-Income Subaccount (Initial Class) Fidelity VIP Growth Subaccount (Initial Class) Fidelity VIP High Income Subaccount (Initial Class) Fidelity VIP Mid Cap Subaccount (Service Class 2) FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) FTVIPT Templeton Foreign Securities Subaccount (Class 2) Janus Aspen International Growth Subaccount (Service Shares) LMPVET Aggressive Growth Subaccount (Class I) LMPVET Appreciation Subaccount (Class I) LMPVET Fundamental Value Subaccount (Class I) LMPVET International All Cap Opportunity Subaccount LMPVET Investors Subaccount (Class I) LMPVET Large Cap Growth Subaccount (Class I) LMPVET Small Cap Growth Subaccount (Class I) LMPVET Social Awareness Subaccount LMPVIT Adjustable Rate Income Subaccount MIST Batterymarch Growth and Income Subaccount (Class A) MIST Batterymarch Mid-Cap Stock Subaccount (Class A) MIST BlackRock High Yield Subaccount (Class A) MIST BlackRock Large-Cap Core Subaccount (Class E) MIST Cyclical Growth & Income EFT Subaccount MIST Cyclical Growth EFT Subaccount MIST Dreman Small-Cap Value Subaccount (Class A) MIST Harris Oakmark International Subaccount (Class A) MIST Janus Forty Subaccount (Class A) MIST Lazard Mid-Cap Subaccount (Class B) MIST Legg Mason Partners Managed Assets Subaccount (Class A) MIST Loomis Sayles Global Markets Subaccount (Class A) MIST Lord Abbett Bond Debenture Subaccount (Class A) MIST Lord Abbett Growth and Income Subaccount (Class B) MIST Met/AIM Capital Appreciation Subaccount (Class A) MIST Met/AIM Small Cap Growth Subaccount (Class A) MIST MFS Research International Subaccount (Class B) MIST MFS Value Subaccount (Class A) MIST Neuberger Berman Real Estate Subaccount (Class A) MIST PIMCO Inflation Protected Bond Subaccount (Class A) MIST Pioneer Fund Subaccount (Class A) MIST Pioneer Strategic Income Subaccount (Class A) MIST Third Avenue Small Cap Value Subaccount (Class B) MSF BlackRock Aggressive Growth Subaccount (Class D) MSF BlackRock Bond Income Subaccount (Class A) MSF BlackRock Diversified Subaccount (Class A) MSF BlackRock Money Market Subaccount (Class A) MSF FI Large Cap Subaccount (Class A) MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) MSF MetLife Aggressive Allocation Subaccount (Class B) MSF MetLife Conservative Allocation Subaccount (Class B) MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) MSF MetLife Mid Cap Stock Index Subaccount (Class A) MSF MetLife Moderate Allocation Subaccount (Class B) MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) MSF MetLife Stock Index Subaccount (Class A) MSF MFS Total Return Subaccount (Class F) MSF Morgan Stanley EAFE Index Subaccount (Class A) MSF Oppenheimer Global Equity Subaccount (Class A) MSF Russell 2000 Index Subaccount (Class A) MSF T. Rowe Price Large Cap Growth Subaccount (Class B) MSF Western Asset Management Strategic Bond Opportunities Subaccount (Class A) MSF Western Asset Management U.S. Government Subaccount (Class A) PIMCO VIT Total Return Subaccount (Administrative Class) Van Kampen LIT Comstock Subaccount (Class II) APPENDIX B Dreyfus Stock Index Subaccount (Initial Shares) Fidelity VIP Asset Manager (SM) Subaccount (Initial Class) FTVIP Templeton Global Asset Allocation Subaccount (Class 1) LMPVPI All Cap Subaccount (Class I) LMPVPIII Large Cap Value Subaccount MIST BlackRock Large-Cap Core Subaccount (Class A) MIST Pioneer Mid-Cap Value Subaccount (Class A) MetLife Investment Diversified Bond Subaccount (Class I) MetLife Investment International Stock Subaccount (Class I) MetLife Investment Large Company Stock Subaccount (Class I) MetLife Investment Small Company Stock Subaccount (Class I) MSF Western Asset Management High Yield Bond Subaccount (Class A) PIMCO Real Return Subaccount (Administrative Class) Putnam VT International Equity Subaccount (Class IB) Putnam VT Small Cap Value Subaccount (Class IB) METLIFE OF CT FUND U FOR VARIABLE ANNUITIES OF METLIFE INSURANCE COMPANY OF CONNECTICUT STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2007
DREYFUS VIF FIDELITY VIP FIDELITY VIP FIDELITY VIP DEVELOPING LEADERS CONTRAFUND EQUITY-INCOME GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (INITIAL SHARES) (SERVICE CLASS 2) (INITIAL CLASS) (INITIAL CLASS) ------------------ ----------------- --------------- --------------- ASSETS: Investments at fair value $47,595,644 $90,973,105 $351,219,511 $492,220,282 ----------- ----------- ------------ ------------ Total Assets 47,595,644 90,973,105 351,219,511 492,220,282 ----------- ----------- ------------ ------------ LIABILITIES: Other payables Insurance charges 4,936 9,388 36,267 50,823 ----------- ----------- ------------ ------------ Total Liabilities 4,936 9,388 36,267 50,823 ----------- ----------- ------------ ------------ NET ASSETS $47,590,708 $90,963,717 $351,183,244 $492,169,459 =========== =========== ============ ============
The accompanying notes are an integral part of these financial statements. 1
FTVIPT FRANKLIN SMALL-MID CAP FTVIPT TEMPLETON FIDELITY VIP FIDELITY VIP GROWTH DEVELOPING MARKETS HIGH MID CAP SECURITIES SECURITIES INCOME SUBACCOUNT SUBACCOUNT (SERVICE SUBACCOUNT SUBACCOUNT (INITIAL CLASS) CLASS 2) (CLASS 2) (CLASS 2) ----------------- ------------------- --------------- ------------------ ASSETS: Investments at fair value $32,830,358 $114,951,678 $6,559,461 $32,127,371 ----------- ------------ ---------- ----------- Total Assets 32,830,358 114,951,678 6,559,461 32,127,371 ----------- ------------ ---------- ----------- LIABILITIES: Other payables Insurance charges 3,368 11,884 680 3,300 ----------- ------------ ---------- ----------- Total Liabilities 3,368 11,884 680 3,300 ----------- ------------ ---------- ----------- NET ASSETS $32,826,990 $114,939,794 $6,558,781 $32,124,071 =========== ============ ========== ===========
The accompanying notes are an integral part of these financial statements. 2
FTVIPT TEMPLETON JANUS ASPEN FOREIGN SECURITIES INTERNATIONAL LMPVET AGGRESSIVE SUBACCOUNT GROWTH SUBACCOUNT GROWTH SUBACCOUNT (CLASS 2) (SERVICE SHARES) (CLASS I) ------------------ ----------------- ----------------- ASSETS: Investments at fair value $13,837,307 $82,356,431 $58,714,582 ----------- ----------- ----------- Total Assets 13,837,307 82,356,431 58,714,582 ----------- ----------- ----------- LIABILITIES: Other payables Insurance charges 1,425 8,416 6,089 ----------- ----------- ----------- Total Liabilities 1,425 8,416 6,089 ----------- ----------- ----------- NET ASSETS $13,835,882 $82,348,015 $58,708,493 =========== =========== =========== LMPVET LMPVET LMPVET APPRECIATION FUNDAMENTAL VALUE INTERNATIONAL ALL SUBACCOUNT SUBACCOUNT CAP OPPORTUNITY (CLASS I) (CLASS I) SUBACCOUNT ------------ ----------------- ----------------- ASSETS: Investments at fair value $10,356,884 $68,036,209 $20,893,791 ----------- ----------- ----------- Total Assets 10,356,884 68,036,209 20,893,791 ----------- ----------- ----------- LIABILITIES: Other payables Insurance charges 1,074 7,032 2,159 ----------- ----------- ----------- Total Liabilities 1,074 7,032 2,159 ----------- ----------- ----------- NET ASSETS $10,355,810 $68,029,177 $20,891,632 =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 3
LMPVET LMPVET LARGE CAP LMPVET SMALL CAP INVESTORS GROWTH GROWTH LMPVET SOCIAL SUBACCOUNT SUBACCOUNT SUBACCOUNT AWARENESS (CLASS I) (CLASS I) (CLASS I) SUBACCOUNT ----------- ---------------- ---------------- ------------- ASSETS: Investments at fair value $27,899,590 $14,129,601 $8,986,946 $35,778,161 ----------- ----------- ---------- ----------- Total Assets 27,899,590 14,129,601 8,986,946 35,778,161 ----------- ----------- ---------- ----------- LIABILITIES: Other payables Insurance charges 2,883 1,463 924 3,687 ----------- ----------- ---------- ----------- Total Liabilities 2,883 1,463 924 3,687 ----------- ----------- ---------- ----------- NET ASSETS $27,896,707 $14,128,138 $8,986,022 $35,774,474 =========== =========== ========== ===========
The accompanying notes are an integral part of these financial statements. 4
MIST BATTERYMARCH MIST BATTERYMARCH MIST BLACKROCK MIST BLACKROCK MIST CYCLICAL LMPVIT ADJUSTABLE GROWTH AND INCOME MID-CAP STOCK HIGH YIELD LARGE-CAP CORE GROWTH & RATE INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT INCOME EFT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) (CLASS E) SUBACCOUNT ----------------- ----------------- ----------------- -------------- -------------- ------------- ASSETS: Investments at fair value $909,375 $440,371,901 $45,321,887 $39,553,703 $2,472,174 $167,321,702 -------- ------------ ----------- ----------- ---------- ------------ Total Assets 909,375 440,371,901 45,321,887 39,553,703 2,472,174 167,321,702 -------- ------------ ----------- ----------- ---------- ------------ LIABILITIES: Other payables Insurance charges 93 43,217 4,693 3,703 257 17,265 -------- ------------ ----------- ----------- ---------- ------------ Total Liabilities 93 43,217 4,693 3,703 257 17,265 -------- ------------ ----------- ----------- ---------- ------------ NET ASSETS $909,282 $440,328,684 $45,317,194 $39,550,000 $2,471,917 $167,304,437 ======== ============ =========== =========== ========== ============
The accompanying notes are an integral part of these financial statements. 5
MIST HARRIS MIST DREMAN OAKMARK MIST MIST CYCLICAL SMALL-CAP VALUE INTERNATIONAL JANUS FORTY GROWTH EFT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) ------------- --------------- ------------- ------------ ASSETS: Investments at fair value $202,751,881 $4,126,247 $10,786,403 $606,505,134 ------------ ---------- ----------- ------------ Total Assets 202,751,881 4,126,247 10,786,403 606,505,134 ------------ ---------- ----------- ------------ LIABILITIES: Other payables Insurance charges 20,964 427 1,104 62,794 ------------ ---------- ----------- ------------ Total Liabilities 20,964 427 1,104 62,794 ------------ ---------- ----------- ------------ NET ASSETS $202,730,917 $4,125,820 $10,785,299 $606,442,340 ============ ========== =========== ============
The accompanying notes are an integral part of these financial statements. 6
MIST LEGG MASON MIST LAZARD PARTNERS MANAGED MIST LOOMIS SAYLES MID-CAP ASSETS GLOBAL MARKETS SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS A) (CLASS A) ----------- ---------------- ------------------ ASSETS: Investments at fair value $1,619,281 $177,179,012 $227,436,485 ---------- ------------ ------------ Total Assets 1,619,281 177,179,012 227,436,485 ---------- ------------ ------------ LIABILITIES: Other payables Insurance charges 166 18,278 23,404 ---------- ------------ ------------ Total Liabilities 166 18,278 23,404 ---------- ------------ ------------ NET ASSETS $1,619,115 $177,160,734 $227,413,081 ========== ============ ============ MIST LORD ABBETT MIST LORD ABBETT MIST MET/AIM BOND DEBENTURE GROWTH AND INCOME CAPITAL APPRECIATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS A) ---------------- ----------------- -------------------- ASSETS: Investments at fair value $3,257,319 $15,113,985 $1,150,394 ---------- ----------- ---------- Total Assets 3,257,319 15,113,985 1,150,394 ---------- ----------- ---------- LIABILITIES: Other payables Insurance charges 332 1,560 119 ---------- ----------- ---------- Total Liabilities 332 1,560 119 ---------- ----------- ---------- NET ASSETS $3,256,987 $15,112,425 $1,150,275 ========== =========== ==========
The accompanying notes are an integral part of these financial statements. 7
MIST MET/AIM MIST MFS RESEARCH MIST MFS MIST NEUBERGER SMALL CAP GROWTH INTERNATIONAL VALUE BERMAN REAL ESTATE SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS A) (CLASS A) ---------------- ----------------- ------------ ------------------ ASSETS: Investments at fair value $2,523,228 $8,797,910 $19,702,499 $24,882,671 ---------- ---------- ----------- ----------- Total Assets 2,523,228 8,797,910 19,702,499 24,882,671 ---------- ---------- ----------- ----------- LIABILITIES: Other payables Insurance charges 261 910 2,037 2,528 ---------- ---------- ----------- ----------- Total Liabilities 261 910 2,037 2,528 ---------- ---------- ----------- ----------- NET ASSETS $2,522,967 $8,797,000 $19,700,462 $24,880,143 ========== ========== =========== ===========
The accompanying notes are an integral part of these financial statements. 8
MIST PIMCO INFLATION PROTECTED MIST MIST PIONEER BOND PIONEER FUND STRATEGIC INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) ------------------- ------------- ---------------- ASSETS: Investments at fair value $2,925,774 $15,582,958 $10,998,224 ---------- ----------- ----------- Total Assets 2,925,774 15,582,958 10,998,224 ---------- ----------- ----------- LIABILITIES: Other payables Insurance charges 288 1,613 1,127 ---------- ----------- ----------- Total Liabilities 288 1,613 1,127 ---------- ----------- ----------- NET ASSETS $2,925,486 $15,581,345 $10,997,097 ========== =========== =========== MIST THIRD AVENUE MSF BLACKROCK MSF BLACKROCK SMALL CAP VALUE AGGRESSIVE GROWTH BOND INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS D) (CLASS A) ----------------- ----------------- -------------- ASSETS: Investments at fair value $74,298,230 $7,944,651 $76,788,733 ----------- ---------- ----------- Total Assets 74,298,230 7,944,651 76,788,733 ----------- ---------- ----------- LIABILITIES: Other payables Insurance charges 7,672 818 6,652 ----------- ---------- ----------- Total Liabilities 7,672 818 6,652 ----------- ---------- ----------- NET ASSETS $74,290,558 $7,943,833 $76,782,081 =========== ========== ===========
The accompanying notes are an integral part of these financial statements. 9
MSF LEHMAN MSF BLACKROCK MSF BLACKROCK MSF FI BROTHERS AGGREGATE DIVERSIFIED MONEY MARKET LARGE CAP BOND INDEX SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) (CLASS A) ------------- ------------- ----------- ------------------ ASSETS: Investments at fair value $172,548,686 $77,501,337 $57,743,689 $94,039,430 ------------ ----------- ----------- ----------- Total Assets 172,548,686 77,501,337 57,743,689 94,039,430 ------------ ----------- ----------- ----------- LIABILITIES: Other payables Insurance charges 17,797 7,332 5,974 9,635 ------------ ----------- ----------- ----------- Total Liabilities 17,797 7,332 5,974 9,635 ------------ ----------- ----------- ----------- NET ASSETS $172,530,889 $77,494,005 $57,737,715 $94,029,795 ============ =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 10
MSF METLIFE MSF METLIFE MSF METLIFE CONSERVATIVE TO AGGRESSIVE ALLOCATION CONSERVATIVE ALLOCATION MODERATE ALLOCATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS B) --------------------- ----------------------- -------------------- ASSETS: Investments at fair value $46,928,845 $3,784,806 $45,959,524 ----------- ---------- ----------- Total Assets 46,928,845 3,784,806 45,959,524 ----------- ---------- ----------- LIABILITIES: Other payables Insurance charges 4,847 388 4,723 ----------- ---------- ----------- Total Liabilities 4,847 388 4,723 ----------- ---------- ----------- NET ASSETS $46,923,998 $3,784,418 $45,954,801 =========== ========== =========== MSF METLIFE MSF METLIFE MID CAP STOCK MSF METLIFE MODERATE TO INDEX MODERATE ALLOCATION AGGRESSIVE ALLOCATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS B) ------------- ------------------- --------------------- ASSETS: Investments at fair value $5,704,025 $331,977,390 $331,983,700 ---------- ------------ ------------ Total Assets 5,704,025 331,977,390 331,983,700 ---------- ------------ ------------ LIABILITIES: Other payables Insurance charges 589 34,198 34,244 ---------- ------------ ------------ Total Liabilities 589 34,198 34,244 ---------- ------------ ------------ NET ASSETS $5,703,436 $331,943,192 $331,949,456 ========== ============ ============
The accompanying notes are an integral part of these financial statements. 11
MSF METLIFE STOCK MSF MFS TOTAL MSF MORGAN STANLEY MSF OPPENHEIMER INDEX RETURN EAFE INDEX GLOBAL EQUITY SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS F) (CLASS A) (CLASS A) ----------------- ------------- ------------------ --------------- ASSETS: Investments at fair value $533,748,527 $121,666,608 $83,173,404 $325,026,085 ------------ ------------ ----------- ------------ Total Assets 533,748,527 121,666,608 83,173,404 325,026,085 ------------ ------------ ----------- ------------ LIABILITIES: Other payables Insurance charges 54,335 12,517 8,580 33,596 ------------ ------------ ----------- ------------ Total Liabilities 54,335 12,517 8,580 33,596 ------------ ------------ ----------- ------------ NET ASSETS $533,694,192 $121,654,091 $83,164,824 $324,992,489 ============ ============ =========== ============
The accompanying notes are an integral part of these financial statements. 12
MSF WESTERN ASSET MSF RUSSELL 2000 MSF T. ROWE PRICE MANAGEMENT STRATEGIC INDEX LARGE CAP GROWTH BOND OPPORTUNITIES SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS A) ---------------- ----------------- -------------------- ASSETS: Investments at fair value $98,761,115 $6,790,013 $1,642,732 ----------- ---------- ---------- Total Assets 98,761,115 6,790,013 1,642,732 ----------- ---------- ---------- LIABILITIES: Other payables Insurance charges 10,225 701 168 ----------- ---------- ---------- Total Liabilities 10,225 701 168 ----------- ---------- ---------- NET ASSETS $98,750,890 $6,789,312 $1,642,564 =========== ========== ========== MSF WESTERN ASSET MANAGEMENT PIMCO VIT VAN KAMPEN LIT U.S. GOVERNMENT TOTAL RETURN COMSTOCK SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (ADMINISTRATIVE CLASS) (CLASS II) ----------------- ---------------------- -------------- ASSETS: Investments at fair value $61,791,865 $19,413,330 $10,775,897 ----------- ----------- ----------- Total Assets 61,791,865 19,413,330 10,775,897 ----------- ----------- ----------- LIABILITIES: Other payables Insurance charges 5,573 1,984 1,113 ----------- ----------- ----------- Total Liabilities 5,573 1,984 1,113 ----------- ----------- ----------- NET ASSETS $61,786,292 $19,411,346 $10,774,784 =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 13 METLIFE OF CT FUND U FOR VARIABLE ANNUITIES OF METLIFE INSURANCE COMPANY OF CONNECTICUT STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2007
DREYFUS VIF FIDELITY VIP FIDELITY VIP DREYFUS STOCK INDEX DEVELOPING LEADERS ASSET MANAGER SM CONTRAFUND SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (INITIAL SHARES) (a) (INITIAL SHARES) (INITIAL CLASS) (a) (SERVICE CLASS 2) -------------------- ------------------ ------------------- ----------------- INVESTMENT INCOME: Dividends $ 1,886,611 $ 436,124 $ 5,897,989 $ 639,455 ------------- ------------ ----------- ------------ EXPENSES: Mortality and expense risk charges 1,812,682 709,837 761,977 975,210 ------------- ------------ ----------- ------------ Net investment income (loss) 73,929 (273,713) 5,136,012 (335,755) ------------- ------------ ----------- ------------ NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- 7,625,030 5,394,502 21,833,897 Realized gains (losses) on sale of investments 145,872,860 (995,649) 6,384,730 360,919 ------------- ------------ ----------- ------------ Net realized gains (losses) 145,872,860 6,629,381 11,779,232 22,194,816 ------------- ------------ ----------- ------------ Change in unrealized gains (losses) on investments (121,898,740) (13,065,681) (7,932,294) (10,604,292) ------------- ------------ ----------- ------------ Net increase (decrease)in net assets resulting from operations $ 24,048,049 $ (6,710,013) $ 8,982,950 $ 11,254,769 ============= ============ =========== ============
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 14
FIDELITY VIP FIDELITY VIP EQUITY-INCOME FIDELITY VIP GROWTH HIGH INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT (INITIAL CLASS) (INITIAL CLASS) (INITIAL CLASS) --------------- ------------------- --------------- INVESTMENT INCOME: Dividends $ 6,688,322 $ 3,906,813 $2,768,000 ------------ ------------ ---------- EXPENSES: Mortality and expense risk charges 4,821,323 5,840,615 447,558 ------------ ------------ ---------- Net investment income (loss) 1,866,999 (1,933,802) 2,320,442 ------------ ------------ ---------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 29,490,976 404,562 -- Realized gains (losses) on sale of investments 10,116,558 10,762,638 (873,755) ------------ ------------ ---------- Net realized gains (losses) 39,607,534 11,167,200 (873,755) ------------ ------------ ---------- Change in unrealized gains (losses) on investments (38,900,118) 95,987,779 (850,549) ------------ ------------ ---------- Net increase (decrease)in net assets resulting from operations $ 2,574,415 $105,221,177 $ 596,138 ============ ============ ========== FTVIP TEMPLETON FTVIPT FRANKLIN FIDELITY VIP GLOBAL ASSET SMALL-MID CAP MID CAP ALLOCATION GROWTH SECURITIES SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE CLASS 2) (CLASS 1) (a) (CLASS 2) ----------------- --------------- ----------------- INVESTMENT INCOME: Dividends $ 532,684 $ -- $ -- ----------- ------------ --------- EXPENSES: Mortality and expense risk charges 1,347,917 762,001 70,004 ----------- ------------ --------- Net investment income (loss) (815,233) (762,001) (70,004) ----------- ------------ --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 9,325,876 -- 396,011 Realized gains (losses) on sale of investments 904,741 42,299,861 208,446 ----------- ------------ --------- Net realized gains (losses) 10,230,617 42,299,861 604,457 ----------- ------------ --------- Change in unrealized gains (losses) on investments 4,093,341 (30,418,125) (131,936) ----------- ------------ --------- Net increase (decrease)in net assets resulting from operations $13,508,725 $ 11,119,735 $ 402,517 =========== ============ =========
The accompanying notes are an integral part of these financial statements. 15
FTVIPT TEMPLETON DEVELOPING FTVIPT TEMPLETON JANUS ASPEN LMPVET MARKETS SECURITIES FOREIGN SECURITIES INTERNATIONAL GROWTH AGGRESSIVE GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS 2) (CLASS 2) (SERVICE SHARES) (CLASS I) -------------------- ------------------ -------------------- ----------------- INVESTMENT INCOME: Dividends $ 550,623 $ 231,935 $ 304,245 $ -- ---------- ---------- ----------- ----------- EXPENSES: Mortality and expense risk charges 321,280 147,346 811,795 793,451 ---------- ---------- ----------- ----------- Net investment income (loss) 229,343 84,589 (507,550) (793,451) ---------- ---------- ----------- ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 1,892,013 529,016 -- 338,170 Realized gains (losses) on sale of investments 905,893 260,139 2,101,468 2,585,092 ---------- ---------- ----------- ----------- Net realized gains (losses) 2,797,906 789,155 2,101,468 2,923,262 ---------- ---------- ----------- ----------- Change in unrealized gains (losses) on investments 2,964,085 661,619 13,024,720 (1,837,124) ---------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $5,991,334 $1,535,363 $14,618,638 $ 292,687 ========== ========== =========== ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 16
LMPVET LMPVET FUNDAMENTAL LMPVET APPRECIATION VALUE INTERNATIONAL SUBACCOUNT SUBACCOUNT ALL CAP OPPORTUNITY (CLASS I) (CLASS I) SUBACCOUNT ------------------------ ---------- ------------------- INVESTMENT INCOME: Dividends $ 110,336 $ 853,415 $ 201,283 ---------- ----------- ------------ EXPENSES: Mortality and expense risk charges 129,604 809,120 279,624 ---------- ----------- ------------ Net investment income (loss) (19,268) 44,295 (78,341) ---------- ----------- ------------ NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 853,707 3,336,911 10,539,269 Realized gains (losses) on sale of investments 268,501 955,561 1,517,966 ---------- ----------- ------------ Net realized gains (losses) 1,122,208 4,292,472 12,057,235 ---------- ----------- ------------ Change in unrealized gains (losses) on investments (386,397) (5,511,325) (10,827,231) ---------- ----------- ------------ Net increase (decrease) in net assets resulting from operations $ 716,543 $(1,174,558) $ 1,151,663 ========== =========== ============ LMPVET LMPVET LMPVET INVESTORS LARGE CAP GROWTH SMALL CAP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS I) (CLASS I) ----------- ---------------- ---------------- INVESTMENT INCOME: Dividends $ 357,781 $ 6,017 $ -- ----------- --------- --------- EXPENSES: Mortality and expense risk charges 287,488 186,755 105,858 ----------- --------- --------- Net investment income (loss) 70,293 (180,738) (105,858) ----------- --------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 767,199 -- 608,078 Realized gains (losses) on sale of investments 307,222 562,657 217,683 ----------- --------- --------- Net realized gains (losses) 1,074,421 562,657 825,761 ----------- --------- --------- Change in unrealized gains (losses) on investments (1,451,723) 225,371 (29,206) ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $ (307,009) $ 607,290 $ 690,697 =========== ========= =========
The accompanying notes are an integral part of these financial statements. 17
LMPVIT LMPVET LMPVPI ALL CAP ADJUSTABLE LMPVPIII SOCIAL AWARENESS SUBACCOUNT RATE INCOME LARGE CAP VALUE SUBACCOUNT (CLASS I) (a) SUBACCOUNT SUBACCOUNT (a) ----------------- -------------- ----------- --------------- INVESTMENT INCOME: Dividends $ 477,302 $ 78,762 $ 45,449 $ 86,184 ----------- ----------- -------- ----------- EXPENSES: Mortality and expense risk charges 441,335 108,258 12,673 93,825 ----------- ----------- -------- ----------- Net investment income (loss) 35,967 (29,496) 32,776 (7,641) ----------- ----------- -------- ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 5,535,520 1,365,451 -- -- Realized gains (losses) on sale of investments 870,799 6,230,416 (3,566) 5,104,240 ----------- ----------- -------- ----------- Net realized gains (losses) 6,406,319 7,595,867 (3,566) 5,104,240 ----------- ----------- -------- ----------- Change in unrealized gains (losses) on investments (3,221,300) (6,224,829) (27,383) (3,915,357) ----------- ----------- -------- ----------- Net increase (decrease) in net assets resulting from operations $ 3,220,986 $ 1,341,542 $ 1,827 $ 1,181,242 =========== =========== ======== ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 18
MIST BATTERYMARCH MIST BATTERYMARCH MIST BLACKROCK GROWTH AND INCOME MID-CAP STOCK HIGH YIELD SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) (b) ----------------- ----------------- -------------- INVESTMENT INCOME: Dividends $ 4,128,240 $ 152,503 $ -- ----------- ----------- ----------- EXPENSES: Mortality and expense risk charges 5,576,273 610,869 323,507 ----------- ----------- ----------- Net investment income (loss) (1,448,033) (458,366) (323,507) ----------- ----------- ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 32,293,126 6,080,662 -- Realized gains (losses) on sale of investments 6,014,928 (322,138) (69,318) ----------- ----------- ----------- Net realized gains (losses) 38,308,054 5,758,524 (69,318) ----------- ----------- ----------- Change in unrealized gains (losses) on investments (6,295,531) (2,935,310) (662,615) ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $30,564,490 $ 2,364,848 $(1,055,440) =========== =========== =========== MIST BLACKROCK MIST BLACKROCK MIST CYCLICAL LARGE-CAP CORE LARGE-CAP CORE GROWTH & SUBACCOUNT SUBACCOUNT INCOME EFT (CLASS E) (b) (CLASS A) (a) SUBACCOUNT -------------- -------------- ------------- INVESTMENT INCOME: Dividends $ -- $ 14,872 $ 818 -------- --------- ----------- EXPENSES: Mortality and expense risk charges 19,215 8,370 2,163,180 -------- --------- ----------- Net investment income (loss) (19,215) 6,502 (2,162,362) -------- --------- ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- 129,568 12,864 Realized gains (losses) on sale of investments (3,774) 108,156 2,087,981 -------- --------- ----------- Net realized gains (losses) (3,774) 237,724 2,100,845 -------- --------- ----------- Change in unrealized gains (losses) on investments 18,537 (141,368) 7,152,995 -------- --------- ----------- Net increase (decrease) in net assets resulting from operations $ (4,452) $ 102,858 $ 7,091,478 ======== ========= ===========
The accompanying notes are an integral part of these financial statements. 19
MIST DREMAN MIST HARRIS OAKMARK MIST CYCLICAL SMALL-CAP VALUE INTERNATIONAL MIST JANUS FORTY GROWTH EFT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) ------------- --------------- ------------------- ---------------- INVESTMENT INCOME: Dividends $ -- $ -- $ 89,352 $ 957,006 ----------- --------- ----------- ------------ EXPENSES: Mortality and expense risk charges 2,601,238 46,039 130,273 6,887,948 ----------- --------- ----------- ------------ Net investment income (loss) (2,601,238) (46,039) (40,921) (5,930,942) ----------- --------- ----------- ------------ NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- 16,323 766,673 92,024,720 Realized gains (losses) on sale of investments 2,234,110 45,550 (67,487) 1,030,819 ----------- --------- ----------- ------------ Net realized gains (losses) 2,234,110 61,873 699,186 93,055,539 ----------- --------- ----------- ------------ Change in unrealized gains (losses) on investments 9,155,332 (176,178) (1,252,324) 53,875,427 ----------- --------- ----------- ------------ Net increase (decrease) in net assets resulting from operations $ 8,788,204 $(160,344) $ (594,059) $141,000,024 =========== ========= =========== ============
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 20
MIST LAZARD MIST LEGG MASON MIST LOOMIS SAYLES MID-CAP PARTNERS MANAGED ASSETS GLOBAL MARKETS SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B)(b) (CLASS A) (CLASS A)(b) ------------ ----------------------- ------------------ INVESTMENT INCOME: Dividends $ -- $ 4,559,521 $ -- --------- ----------- ----------- EXPENSES: Mortality and expense risk charges 13,224 2,328,534 1,781,432 --------- ----------- ----------- Net investment income (loss) (13,224) 2,230,987 (1,781,432) --------- ----------- ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- 16,027,739 -- Realized gains (losses) on sale of investments (10,169) 664,316 885,869 --------- ----------- ----------- Net realized gains (losses) (10,169) 16,692,055 885,869 --------- ----------- ----------- Change in unrealized gains (losses) on investments (185,732) (9,667,056) 38,723,173 --------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $(209,125) $ 9,255,986 $37,827,610 ========= =========== =========== MIST LORD ABBETT MIST LORD ABBETT MIST MET/AIM BOND DEBENTURE GROWTH AND INCOME CAPITAL APPRECIATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS A) ---------------- ----------------- -------------------- INVESTMENT INCOME: Dividends $113,709 $ 142,219 $ 773 -------- --------- -------- EXPENSES: Mortality and expense risk charges 30,532 199,891 11,770 -------- --------- -------- Net investment income (loss) 83,177 (57,672) (10,997) -------- --------- -------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 2,622 730,780 2,122 Realized gains (losses) on sale of investments 899 182,878 160 -------- --------- -------- Net realized gains (losses) 3,521 913,658 2,282 -------- --------- -------- Change in unrealized gains (losses) on investments 24,288 (445,276) 94,447 -------- --------- -------- Net increase (decrease) in net assets resulting from operations $110,986 $ 410,710 $ 85,732 ======== ========= ========
The accompanying notes are an integral part of these financial statements. 21
MIST MFS MIST MET/AIM RESEARCH MIST NEUBERGER SMALL CAP GROWTH INTERNATIONAL MIST MFS VALUE BERMAN REAL ESTATE SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (b) (CLASS A) (CLASS A) ---------------- ------------- -------------- ------------------ INVESTMENT INCOME: Dividends $ -- $ -- $ 102 $ 387,111 -------- -------- --------- ----------- EXPENSES: Mortality and expense risk charges 18,552 71,752 217,724 415,035 -------- -------- --------- ----------- Net investment income (loss) (18,552) (71,752) (217,622) (27,924) -------- -------- --------- ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 14,407 -- 308,795 3,102,033 Realized gains (losses) on sale of investments 22,523 27,243 116,183 13,005 -------- -------- --------- ----------- Net realized gains (losses) 36,930 27,243 424,978 3,115,038 -------- -------- --------- ----------- Change in unrealized gains (losses) on investments 46,954 398,381 689,806 (8,724,685) -------- -------- --------- ----------- Net increase (decrease) in net assets resulting from operations $ 65,332 $353,872 $ 897,162 $(5,637,571) ======== ======== ========= ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 22
MIST PIMCO INFLATION MIST PIONEER PROTECTED BOND MIST PIONEER FUND MID-CAP VALUE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (b) (CLASS A) (CLASS A) (a) -------------- ----------------- ------------- INVESTMENT INCOME: Dividends $ -- $147,665 $ 4,683 -------- -------- -------- EXPENSES: Mortality and expense risk charges 18,827 207,049 3,771 -------- -------- -------- Net investment income (loss) (18,827) (59,384) 912 -------- -------- -------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- 166,813 Realized gains (losses) on sale of investments 10,563 295,821 (40,121) -------- -------- -------- Net realized gains (losses) 10,563 295,821 126,692 -------- -------- -------- Change in unrealized gains (losses) on investments 160,886 400,565 (29,926) -------- -------- -------- Net increase (decrease) in net assets resulting from operations $152,622 $637,002 $ 97,678 ======== ======== ======== MIST PIONEER MIST THIRD AVENUE METLIFE INVESTMENT STRATEGIC INCOME SMALL CAP VALUE DIVERSIFIED BOND SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS I) (c) ---------------- ----------------- ------------------ INVESTMENT INCOME: Dividends $ 61,854 $ 113,240 $ 16,481,114 -------- ----------- ------------ EXPENSES: Mortality and expense risk charges 119,007 762,122 3,574,115 -------- ----------- ------------ Net investment income (loss) (57,153) (648,882) 12,906,999 -------- ----------- ------------ NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- 743,788 -- Realized gains (losses) on sale of investments 15,972 (422,420) 18,596,688 -------- ----------- ------------ Net realized gains (losses) 15,972 321,368 18,596,688 -------- ----------- ------------ Change in unrealized gains (losses) on investments 542,923 (7,535,812) (20,981,465) -------- ----------- ------------ Net increase (decrease) in net assets resulting from operations $501,742 $(7,863,326) $ 10,522,222 ======== =========== ============
The accompanying notes are an integral part of these financial statements. 23
METLIFE INVESTMENT METLIFE INVESTMENT METLIFE INVESTMENT MSF BLACKROCK INTERNATIONAL STOCK LARGE COMPANY STOCK SMALL COMPANY STOCK AGGRESSIVE GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (c) (CLASS I) (c) (CLASS I) (c) (CLASS D) ------------------- ------------------- ------------------- ----------------- INVESTMENT INCOME: Dividends $ 5,440,186 $ 3,899,650 $ 545,631 $ -- ------------ ----------- ------------ ---------- EXPENSES: Mortality and expense risk charges 2,484,702 3,720,352 2,214,987 88,955 ------------ ----------- ------------ ---------- Net investment income (loss) 2,955,484 179,298 (1,669,356) (88,955) ------------ ----------- ------------ ---------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 19,728,070 656,471 30,195,418 -- Realized gains (losses) on sale of investments 70,932,914 16,647,770 1,862,631 97,443 ------------ ----------- ------------ ---------- Net realized gains (losses) 90,660,984 17,304,241 32,058,049 97,443 ------------ ----------- ------------ ---------- Change in unrealized gains (losses) on investments (76,632,676) (1,144,123) (29,202,303) 1,189,504 ------------ ----------- ------------ ---------- Net increase (decrease) in net assets resulting from operations $ 16,983,792 $16,339,416 $ 1,186,390 $1,197,992 ============ =========== ============ ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 24
MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK BOND INCOME DIVERSIFIED MONEY MARKET SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (b) (CLASS A) ------------- ------------- ------------- INVESTMENT INCOME: Dividends $2,595,335 $ -- $3,574,904 ---------- ----------- ---------- EXPENSES: Mortality and expense risk charges 834,377 1,527,739 831,329 ---------- ----------- ---------- Net investment income (loss) 1,760,958 (1,527,739) 2,743,575 ---------- ----------- ---------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- -- Realized gains (losses) on sale of investments 495,454 67,533 -- ---------- ----------- ---------- Net realized gains (losses) 495,454 67,533 -- ---------- ----------- ---------- Change in unrealized gains (losses) on investments 1,686,913 2,467,854 -- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from operations $3,943,325 $ 1,007,648 $2,743,575 ========== =========== ========== MSF LEHMAN BROTHERS MSF METLIFE MSF FI LARGE CAP AGGREGATE BOND INDEX AGGRESSIVE ALLOCATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (d) (CLASS B) ---------------- -------------------- --------------------- INVESTMENT INCOME: Dividends $ 103,070 $ -- $ 2,182 ----------- ---------- --------- EXPENSES: Mortality and expense risk charges 781,608 167,488 133,168 ----------- ---------- --------- Net investment income (loss) (678,538) (167,488) (130,986) ----------- ---------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 4,275,337 -- 6,272 Realized gains (losses) on sale of investments 112,830 12,523 21,107 ----------- ---------- --------- Net realized gains (losses) 4,388,167 12,523 27,379 ----------- ---------- --------- Change in unrealized gains (losses) on investments (1,982,123) 1,370,742 (84,338) ----------- ---------- --------- Net increase (decrease) in net assets resulting from operations $ 1,727,506 $1,215,777 $(187,945) =========== ========== =========
The accompanying notes are an integral part of these financial statements. 25
MSF METLIFE MSF METLIFE CONSERVATIVE CONSERVATIVE TO MSF METLIFE MSF METLIFE ALLOCATION MODERATE ALLOCATION MID CAP STOCK INDEX MODERATE ALLOCATION SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS A) (CLASS B) ------------ ------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends $ -- $ -- $ 36,068 $ 2,093 -------- --------- -------- ---------- EXPENSES: Mortality and expense risk charges 24,659 165,030 62,594 904,940 -------- --------- -------- ---------- Net investment income (loss) (24,659) (165,030) (26,526) (902,847) -------- --------- -------- ---------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 1,484 11,101 193,264 37,678 Realized gains (losses) on sale of investments 21,411 27,866 22,858 99,861 -------- --------- -------- ---------- Net realized gains (losses) 22,895 38,967 216,122 137,539 -------- --------- -------- ---------- Change in unrealized gains (losses) on investments 75,435 497,518 (41,449) 2,087,338 -------- --------- -------- ---------- Net increase (decrease) in net assets resulting from operations $ 73,671 $ 371,455 $148,147 $1,322,030 ======== ========= ======== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 26
MSF METLIFE MODERATE TO MSF METLIFE MSF MFS AGGRESSIVE ALLOCATION STOCK INDEX TOTAL RETURN SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS A) (CLASS F) --------------------- ----------- ------------ INVESTMENT INCOME: Dividends $ 6,801 $ 64,157 $ 2,421,904 --------- ----------- ----------- EXPENSES: Mortality and expense risk charges 853,232 4,002,126 1,547,092 --------- ----------- ----------- Net investment income (loss) (846,431) (3,937,969) 874,812 --------- ----------- ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 27,203 124,713 4,086,336 Realized gains (losses) on sale of investments 67,336 258,797 665,893 --------- ----------- ----------- Net realized gains (losses) 94,539 383,510 4,752,229 --------- ----------- ----------- Change in unrealized gains (losses) on investments 972,656 (1,103,493) (2,154,876) --------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 220,764 $(4,657,952) $ 3,472,165 ========= =========== =========== MSF MORGAN STANLEY MSF OPPENHEIMER MSF RUSSELL 2000 EAFE INDEX GLOBAL EQUITY INDEX SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (d) (CLASS A) (CLASS A) (d) ------------------ --------------- ---------------- INVESTMENT INCOME: Dividends $ -- $ 3,869,765 $ -- ----------- ----------- --------- EXPENSES: Mortality and expense risk charges 150,492 4,269,337 177,864 ----------- ----------- --------- Net investment income (loss) (150,492) (399,572) (177,864) ----------- ----------- --------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- 5,048,374 -- Realized gains (losses) on sale of investments (23,858) 4,111,814 (22,492) ----------- ----------- --------- Net realized gains (losses) (23,858) 9,160,188 (22,492) ----------- ----------- --------- Change in unrealized gains (losses) on investments (1,064,535) 9,020,326 (558,230) ----------- ----------- --------- Net increase (decrease) in net assets resulting from operations $(1,238,885) $17,780,942 $(758,586) =========== =========== =========
The accompanying notes are an integral part of these financial statements. 27
MSF WESTERN MSF WESTERN ASSET MSF WESTERN MSF T. ROWE PRICE ASSET MANAGEMENT MANAGEMENT STRATEGIC ASSET MANAGEMENT LARGE CAP GROWTH HIGH YIELD BOND BOND OPPORTUNITIES U.S. GOVERNMENT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS A) (a) (CLASS A) (CLASS A) ----------------- ---------------- -------------------- ---------------- INVESTMENT INCOME: Dividends $ 10,715 $ 4,505,290 $36,648 $1,731,156 -------- ----------- ------- ---------- EXPENSES: Mortality and expense risk charges 74,406 178,824 18,218 694,107 -------- ----------- ------- ---------- Net investment income (loss) (63,691) 4,326,466 18,430 1,037,049 -------- ----------- ------- ---------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 49,429 386,288 1,264 -- Realized gains (losses) on sale of investments 107,879 31,827 24,752 354,883 -------- ----------- ------- ---------- Net realized gains (losses) 157,308 418,115 26,016 354,883 -------- ----------- ------- ---------- Change in unrealized gains (losses) on investments 306,354 (3,022,800) (1,809) 595,834 -------- ----------- ------- ---------- Net increase (decrease) in net assets resulting from operations $399,971 $ 1,721,781 $42,637 $1,987,766 ======== =========== ======= ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 28
PIMCO VIT PIMCO VIT PUTNAM VT REAL RETURN TOTAL RETURN INTERNATIONAL EQUITY SUBACCOUNT SUBACCOUNT SUBACCOUNT (ADMINISTRATIVE CLASS) (a) (ADMINISTRATIVE CLASS) (CLASS IB) (a) -------------------------- ---------------------- -------------------- INVESTMENT INCOME: Dividends $ 26,819 $ 802,413 $ 215,410 -------- ---------- ----------- EXPENSES: Mortality and expense risk charges 7,101 208,829 29,824 -------- ---------- ----------- Net investment income (loss) 19,718 593,584 185,586 -------- ---------- ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- 932,503 Realized gains (losses) on sale of investments (75,504) (60,227) 1,496,168 -------- ---------- ----------- Net realized gains (losses) (75,504) (60,227) 2,428,671 -------- ---------- ----------- Change in unrealized gains (losses) on investments 90,751 710,825 (2,004,865) -------- ---------- ----------- Net increase (decrease) in net assets resulting from operations $ 34,965 $1,244,182 $ 609,392 ======== ========== =========== PUTNAM VT VAN KAMPEN SMALL CAP VALUE LIT COMSTOCK SUBACCOUNT SUBACCOUNT (CLASS IB) (a) (CLASS II) --------------- ------------ INVESTMENT INCOME: Dividends $ 424,843 $ 201,684 ------------ ----------- EXPENSES: Mortality and expense risk charges 310,650 157,001 ------------ ----------- Net investment income (loss) 114,193 44,683 ------------ ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 8,496,852 279,892 Realized gains (losses) on sale of investments 15,249,712 370,712 ------------ ----------- Net realized gains (losses) 23,746,564 650,604 ------------ ----------- Change in unrealized gains (losses) on investments (18,657,452) (1,065,200) ------------ ----------- Net increase (decrease) in net assets resulting from operations $ 5,203,305 $ (369,913) ============ ===========
The accompanying notes are an integral part of these financial statements. 29 METLIFE OF CT FUND U FOR VARIABLE ANNUITIES OF METLIFE INSURANCE COMPANY OF CONNECTICUT STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
DREYFUS STOCK INDEX DREYFUS VIF DEVELOPING LEADERS FIDELITY VIP ASSET MANAGER(SM) SUBACCOUNT SUBACCOUNT SUBACCOUNT (INITIAL SHARES) (INITIAL SHARES) (INITIAL CLASS) --------------------------- -------------------------- -------------- -------------- 2007 (a) 2006 2007 2006 2007 (a) 2006 ------------- ------------ ------------ ----------- -------------- -------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 73,929 $ 1,767,485 $ (273,713) $ (541,228) $ 5,136,012 $ 2,968,717 Net realized gains (losses) 145,872,860 8,198,404 6,629,381 5,250,625 11,779,232 5,918 Change in unrealized gains (losses) on investments (121,898,740) 47,542,766 (13,065,681) (3,322,157) (7,932,294) 8,247,029 ------------- ------------ ------------ ----------- ------------- ------------ Net increase (decrease) in net assets resulting from operations 24,048,049 57,508,655 (6,710,013) 1,387,240 8,982,950 11,221,664 ------------- ------------ ------------ ----------- ------------- ------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners 10,147,848 33,397,799 5,496,870 7,300,986 2,122,484 7,009,845 Transfers from other funding options 5,244,121 11,503,346 3,110,983 4,399,949 446,587 1,937,705 Administrative and asset allocation charges (2,707) (547,399) (59,863) (74,723) (844) (174,347) Contract surrenders (16,321,178) (49,140,260) (6,060,631) (6,739,299) (6,031,370) (25,149,270) Transfers to other funding options (476,869,416) (26,121,371) (9,975,934) (9,465,425) (195,196,329) (7,504,544) Other receipts (payments) (403,665) (772,158) (167,313) (46,622) (859,162) (706,654) ------------- ------------ ------------ ----------- ------------- ------------ Net increase (decrease) in net assets resulting from contract transactions (478,204,997) (31,680,043) (7,655,888) (4,625,134) (199,518,634) (24,587,265) ------------- ------------ ------------ ----------- ------------- ------------ Net increase (decrease) in net assets (454,156,948) 25,828,612 (14,365,901) (3,237,894) (190,535,684) (13,365,601) NET ASSETS: Beginning of period 454,156,948 428,328,336 61,956,609 65,194,503 190,535,684 203,901,285 ------------- ------------ ------------ ----------- ------------- ------------ End of period $ -- $454,156,948 $ 47,590,708 $61,956,609 $ -- $190,535,684 ============= ============ ============ =========== ============= ============
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period May 1, 2006 to December 31, 2006. (c) For the period April 30, 2007 to December 31, 2007. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 30
FIDELITY VIP CONTRAFUND FIDELITY VIP EQUITY-INCOME SUBACCOUNT SUBACCOUNT (SERVICE CLASS 2) (INITIAL CLASS) ------------ ----------- ------------ ------------ 2007 2006 2007 2006 ------------ ----------- ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (335,755) $ (97,190) $ 1,866,999 $ 7,522,454 Net realized gains (losses) 22,194,816 5,149,009 39,607,534 50,010,617 Change in unrealized gains (losses) on investments (10,604,292) (121,643) (38,900,118) 4,827,683 ------------ ----------- ------------ ------------ Net increase (decrease) in net assets resulting from operations 11,254,769 4,930,176 2,574,415 62,360,754 ------------ ----------- ------------ ------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners 9,516,149 9,064,436 18,243,862 18,777,260 Transfers from other funding options 22,194,359 23,305,740 14,906,543 13,647,918 Administrative and asset allocation charges (74,256) (58,156) (297,731) (328,306) Contract surrenders (8,062,509) (4,690,869) (49,604,315) (43,278,100) Transfers to other funding options (8,109,090) (5,801,133) (19,264,047) (13,105,412) Other receipts (payments) (154,856) (94,087) (1,315,829) (770,739) ------------ ----------- ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions 15,309,797 21,725,931 (37,331,517) (25,057,379) ------------ ----------- ------------ ------------ Net increase (decrease) in net assets 26,564,566 26,656,107 (34,757,102) 37,303,375 NET ASSETS: Beginning of period 64,399,151 37,743,044 385,940,346 348,636,971 ------------ ----------- ------------ ------------ End of period $ 90,963,717 $64,399,151 $351,183,244 $385,940,346 ============ =========== ============ ============ FIDELITY VIP GROWTH FIDELITY VIP HIGH INCOME SUBACCOUNT SUBACCOUNT (INITIAL CLASS) (INITIAL CLASS) ------------ ------------ ----------- ----------- 2007 2006 2007 2006 ------------ ------------ ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (1,933,802) $ (3,938,539) $ 2,320,442 $ 2,337,055 Net realized gains (losses) 11,167,200 2,050,076 (873,755) (1,142,495) Change in unrealized gains (losses) on investments 95,987,779 26,421,589 (850,549) 2,306,362 ------------ ------------ ----------- ----------- Net increase (decrease) in net assets resulting from operations 105,221,177 24,533,126 596,138 3,500,922 ------------ ------------ ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 17,695,273 22,372,180 1,269,128 1,416,725 Transfers from other funding options 8,824,856 6,454,520 3,870,737 3,801,842 Administrative and asset allocation charges (413,599) (458,557) (29,202) (34,970) Contract surrenders (59,605,817) (57,122,237) (5,358,572) (5,372,745) Transfers to other funding options (26,627,315) (24,552,253) (4,859,509) (4,352,278) Other receipts (payments) (1,405,990) (992,287) (134,138) (43,815) ------------ ------------ ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions (61,532,592) (54,298,634) (5,241,556) (4,585,241) ------------ ------------ ----------- ----------- Net increase (decrease) in net assets 43,688,585 (29,765,508) (4,645,418) (1,084,319) NET ASSETS: Beginning of period 448,480,874 478,246,382 37,472,408 38,556,727 ------------ ------------ ----------- ----------- End of period $492,169,459 $448,480,874 $32,826,990 $37,472,408 ============ ============ =========== ===========
The accompanying notes are an integral part of these financial statements. 31
FTVIPT FRANKLIN FTVIP TEMPLETON SMALL-MID CAP FIDELITY VIP MID CAP GLOBAL ASSET ALLOCATION GROWTH SECURITIES SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE CLASS 2) (CLASS 1) (CLASS 2) -------------------------- --------------------------- ----------------------- 2007 2006 2007 (a) 2006 2007 2006 ------------ ------------ ------------- ------------ ----------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (815,233) $ (936,004) $ (762,001) $ 10,153,628 $ (70,004) $ (55,274) Net realized gains (losses) 10,230,617 9,845,879 42,299,861 12,196,586 604,457 152,425 Change in unrealized gains (losses) on investments 4,093,341 (523,834) (30,418,125) 8,784,131 (131,936) 197,123 ------------ ------------ ------------- ------------ ----------- ---------- Net increase (decrease) in net assets resulting from operations 13,508,725 8,386,041 11,119,735 31,134,345 402,517 294,274 ------------ ------------ ------------- ------------ ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 13,752,324 15,056,759 3,019,138 8,450,041 575,157 619,264 Transfers from other funding options 14,162,075 22,817,015 7,725,417 16,154,551 2,599,733 943,018 Administrative and asset allocation charges (88,042) (80,866) (665) (140,601) (4,529) (4,299) Contract surrenders 10,190,476) (7,034,632) (7,022,457) (20,900,610) (584,934) (453,102) Transfers to other funding options (11,800,106) (14,105,040) (200,828,036) (7,266,519) (1,115,165) (903,552) Other receipts (payments) (197,888) (203,652) (739,050) (477,006) -- (3,338) ------------ ------------ ------------- ------------ ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions 5,637,887 16,449,584 (197,845,653) (4,180,144) 1,470,262 197,991 ------------ ------------ ------------- ------------ ----------- ---------- Net increase (decrease) in net assets 19,146,612 24,835,625 (186,725,918) 26,954,201 1,872,779 492,265 NET ASSETS: Beginning of period 95,793,182 70,957,557 186,725,918 159,771,717 4,686,002 4,193,737 ------------ ------------ ------------- ------------ ----------- ---------- End of period $114,939,794 $ 95,793,182 $ -- $186,725,918 $ 6,558,781 $4,686,002 ============ ============ ============= ============ =========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period May 1, 2006 to December 31, 2006. (c) For the period April 30, 2007 to December 31, 2007. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 32
FTVIPT TEMPLETON DEVELOPING FTVIPT TEMPLETON FOREIGN MARKETS SECURITIES SECURITIES SUBACCOUNT SUBACCOUNT (CLASS 2) (CLASS 2) --------------------------- ------------------------- 2007 2006 2007 2006 ----------- -------------- ------------ ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 229,343 $ (24,483) $ 84,589 $ (709) Net realized gains (losses) 2,797,906 560,843 789,155 76,731 Change in unrealized gains (losses) on investments 2,964,085 3,261,343 661,619 1,360,610 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 5,991,334 3,797,703 1,535,363 1,436,632 ----------- ----------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 2,604,004 2,706,073 1,580,638 1,575,973 Transfers from other funding options 11,920,114 12,090,721 4,214,513 3,386,607 Administrative and asset allocation charges (19,011) (14,424) (10,795) (8,560) Contract surrenders (2,237,394) (1,270,611) (1,317,539) (614,664) Transfers to other funding options (7,270,879) (8,330,915) (2,019,946) (1,193,608) Other receipts (payments) (41,274) (12,222) (76,173) (38,627) ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 4,955,560 5,168,622 2,370,698 3,107,121 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets 10,946,894 8,966,325 3,906,061 4,543,753 NET ASSETS: Beginning of period 21,177,177 12,210,852 9,929,821 5,386,068 ----------- ----------- ----------- ----------- End of period $32,124,071 $21,177,177 $13,835,882 $ 9,929,821 =========== =========== =========== =========== JANUS ASPEN INTERNATIONAL GROWTH LMPVET AGGRESSIVE GROWTH SUBACCOUNT SUBACCOUNT (SERVICE SHARES) (CLASS I) ------------------------- ------------------------ 2007 2006 2007 2006 ------------ ----------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (507,550) $ 211,995 $ (793,451) $ (806,724) Net realized gains (losses) 2,101,468 579,434 2,923,262 1,148,698 Change in unrealized gains (losses) on investments 13,024,720 9,138,137 (1,837,124) 4,227,123 ------------ ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 14,618,638 9,929,566 292,687 4,569,097 ------------ ----------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 6,280,074 3,882,457 6,860,727 9,298,983 Transfers from other funding options 40,873,926 29,148,765 1,442,008 3,261,011 Administrative and asset allocation charges (45,552) (25,700) (73,345) (83,691) Contract surrenders (5,466,871) (1,942,259) (6,241,263) (5,252,011) Transfers to other funding options (18,650,441) (8,541,035) (9,468,101) (7,196,211) Other receipts (payments) (77,263) (77,747) (51,190) (35,406) ------------ ----------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 22,913,873 22,444,481 (7,531,164) (7,325) ------------ ----------- ----------- ----------- Net increase (decrease) in net assets 37,532,511 32,374,047 (7,238,477) 4,561,772 NET ASSETS: Beginning of period 44,815,504 12,441,457 65,946,970 61,385,198 ------------ ----------- ----------- ----------- End of period $ 82,348,015 $44,815,504 $58,708,493 $65,946,970 ============ =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 33
LMPVET APPRECIATION LMPVET FUNDAMENTAL VALUE LMPVET INTERNATIONAL ALL CAP SUBACCOUNT SUBACCOUNT OPPORTUNITY (CLASS I) (CLASS I) SUBACCOUNT ----------------------- ------------------------ ---------------------------- 2007 2006 2007 2006 2007 2006 ----------- ---------- ----------- ----------- ------------ -------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (19,268) $ (5,111) $ 44,295 $ 177,393 $ (78,341) $ 185,065 Net realized gains (losses) 1,122,208 380,699 4,292,472 2,336,664 12,057,235 1,672,893 Change in unrealized gains (losses) on investments (386,397) 769,202 (5,511,325) 3,847,040 (10,827,231) 2,796,289 ----------- ---------- ----------- ----------- ------------ ----------- Net increase (decrease) in net assets resulting from operations 716,543 1,144,790 (1,174,558) 6,361,097 1,151,663 4,654,247 ----------- ---------- ----------- ----------- ------------ ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,486,641 1,885,214 6,317,249 6,002,695 952,529 1,135,781 Transfers from other funding options 364,336 663,705 29,463,970 1,995,464 1,295,229 2,082,158 Administrative and asset allocation charges (11,558) (12,219) (71,512) (53,095) (20,864) (23,436) Contract surrenders (860,638) (558,611) (6,945,099) (3,967,047) (3,124,316) (2,642,754) Transfers to other funding options (1,251,578) (947,665) (7,114,303) (4,599,529) (2,369,309) (2,167,695) Other receipts (payments) (47,840) (20,689) (33,748) (86,745) 13,880 (49,002) ----------- ---------- ----------- ----------- ------------ ----------- Net increase (decrease) in net assets resulting from contract transactions (320,637) 1,009,735 21,616,557 (708,257) (3,252,851) (1,664,948) ----------- ---------- ----------- ----------- ------------ ----------- Net increase (decrease) in net assets 395,906 2,154,525 20,441,999 5,652,840 (2,101,188) 2,989,299 NET ASSETS: Beginning of period 9,959,904 7,805,379 47,587,178 41,934,338 22,992,820 20,003,521 ----------- ---------- ----------- ----------- ------------ ----------- End of period $10,355,810 $9,959,904 $68,029,177 $47,587,178 $ 20,891,632 $22,992,820 =========== ========== =========== =========== ============ ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period May 1, 2006 to December 31, 2006. (c) For the period April 30, 2007 to December 31, 2007. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 34
LMPVET INVESTORS LMPVET LARGE CAP GROWTH SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS I) ----------------------- ------------------------ 2007 2006 2007 2006 ----------- ---------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 70,293 $ 29,137 $ (180,738) $ (178,139) Net realized gains (losses) 1,074,421 401,660 562,657 419,787 Change in unrealized gains (losses) on investments (1,451,723) 742,015 225,371 167,568 ----------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from operations (307,009) 1,172,812 607,290 409,216 ----------- ---------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,282,366 835,377 1,663,920 2,315,899 Transfers from other funding options 23,788,727 280,031 1,304,483 1,060,822 Administrative and asset allocation charges (27,200) (7,757) (15,498) (18,535) Contract surrenders (2,656,740) (940,418) (1,878,137) (1,734,614) Transfers to other funding options (1,972,744) (528,591) (2,864,655) (4,667,507) Other receipts (payments) (146,835) 7,357 (44,210) (48,975) ----------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 20,267,574 (354,001) (1,834,097) (3,092,910) ----------- ---------- ----------- ----------- Net increase (decrease) in net assets 19,960,565 818,811 (1,226,807) (2,683,694) NET ASSETS: Beginning of period 7,936,142 7,117,331 15,354,945 18,038,639 ----------- ---------- ----------- ----------- End of period $27,896,707 $7,936,142 $14,128,138 $15,354,945 =========== ========== =========== =========== LMPVET SMALL CAP GROWTH SUBACCOUNT LMPVET SOCIAL AWARENESS (CLASS I) SUBACCOUNT -------------------------- ------------------------ 2007 2006 2007 2006 ----------- ------------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (105,858) $ (90,367) $ 35,967 $ (254,492) Net realized gains (losses) 825,761 575,593 6,406,319 431,500 Change in unrealized gains (losses) on investments (29,206) 228,068 (3,221,300) 1,920,186 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 690,697 713,294 3,220,986 2,097,194 ----------- ----------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 949,801 1,094,045 2,016,354 2,525,628 Transfers from other funding options 1,685,915 2,239,415 739,534 404,202 Administrative and asset allocation charges (8,056) (7,931) (44,402) (49,803) Contract surrenders (1,056,253) (735,407) (3,401,922) (3,253,524) Transfers to other funding options (1,165,003) (1,917,850) (2,123,892) (2,161,492) Other receipts (payments) (18,489) (35,235) (154,167) (63,362) ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 387,915 637,037 (2,968,495) (2,598,351) ----------- ----------- ----------- ----------- Net increase (decrease) in net assets 1,078,612 1,350,331 252,491 (501,157) NET ASSETS: Beginning of period 7,907,410 6,557,079 35,521,983 36,023,140 ----------- ----------- ----------- ----------- End of period $ 8,986,022 $ 7,907,410 $35,774,474 $35,521,983 =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 35
LMPVPI ALL CAP SUBACCOUNT LMPVIT ADJUSTABLE RATE INCOME LMPVPIII LARGE CAP VALUE (CLASS I) SUBACCOUNT SUBACCOUNT ------------------------- ----------------------------- ------------------------- 2007 (a) 2006 2007 2006 2007 (a) 2006 ------------ ----------- ---------- ---------- ------------ ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (29,496) $ 24,547 $ 32,776 $ 35,203 $ (7,641) $ (7,752) Net realized gains (losses) 7,595,867 1,726,411 (3,566) 714 5,104,240 851,541 Change in unrealized gains (losses) on investments (6,224,829) 2,243,272 (27,383) (11,634) (3,915,357) 2,774,398 ------------ ----------- ---------- ---------- ------------ ----------- Net increase (decrease) in net assets resulting from operations 1,341,542 3,994,230 1,827 24,283 1,181,242 3,618,187 ------------ ----------- ---------- ---------- ------------ ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 898,858 2,954,044 126,596 122,144 320,917 1,128,428 Transfers from other funding options 307,526 765,281 160,687 496,947 547,879 542,307 Administrative and asset allocation charges (106) (27,107) (790) (715) (214) (23,599) Contract surrenders (899,399) (2,726,276) (182,201) (63,716) (1,410,328) (3,102,064) Transfers to other funding options (28,668,886) (3,312,628) (208,554) (289,724) (24,302,111) (1,671,337) Other receipts (payments) (3,248) (12,223) -- (26,193) (97,605) (54,295) ------------ ----------- ---------- ---------- ------------ ----------- Net increase (decrease) in net assets resulting from contract transactions (28,365,255) (2,358,909) (104,262) 238,743 (24,941,462) (3,180,560) ------------ ----------- ---------- ---------- ------------ ----------- Net increase (decrease) in net assets (27,023,713) 1,635,321 (102,435) 263,026 (23,760,220) 437,627 NET ASSETS: Beginning of period 27,023,713 25,388,392 1,011,717 748,691 23,760,220 23,322,593 ------------ ----------- ---------- ---------- ------------ ----------- End of period $ -- $27,023,713 $ 909,282 $1,011,717 $ -- $23,760,220 ============ =========== ========== ========== ============ ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period May 1, 2006 to December 31, 2006. (c) For the period April 30, 2007 to December 31, 2007. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 36
MIST BATTERYMARCH MIST BATTERYMARCH MIST BLACKROCK MIST BLACKROCK GROWTH AND INCOME MID-CAP STOCK HIGH YIELD LARGE-CAP CORE SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) (CLASS E) -------------------------- ------------------------ ----------------- ----------------- 2007 2006 2007 2006 (b) 2007 (c) 2006 2007 (c) 2006 ------------ ------------ ----------- ----------- ----------- ---- ---------- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (1,448,033) $ (3,760,921) $ (458,366) $ (434,520) $ (323,507) $-- $ (19,215) $-- Net realized gains (losses) 38,308,054 433,263 5,758,524 (596,690) (69,318) -- (3,774) -- Change in unrealized gains (losses) on investments (6,295,531) 39,105,467 (2,935,310) (1,824,763) (662,615) -- 18,537 -- ------------ ------------ ----------- ----------- ----------- --- ---------- --- Net increase (decrease) in net assets resulting from operations 30,564,490 35,777,809 2,364,848 (2,855,973) (1,055,440) -- (4,452) -- ------------ ------------ ----------- ----------- ----------- --- ---------- --- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 9,184,218 7,291,966 3,391,534 2,753,170 1,703,095 -- 218,745 -- Transfers from other funding options 5,465,260 490,410,705 3,458,925 60,550,234 47,207,138 -- 2,874,427 -- Administrative and asset allocation charges (294,325) (330,325) (42,870) (49,284) (36,588) -- (2,136) -- Contract surrenders (67,438,826) (40,640,870) (5,920,049) (3,604,274) (4,189,283) -- (163,028) -- Transfers to other funding options (16,793,945) (12,861,087) (7,124,597) (7,431,774) (3,935,565) -- (438,976) -- Other receipts (payments) (3,237,300) 3,230,914 (147,554) (25,142) (143,357) -- (12,663) -- ------------ ------------ ----------- ----------- ----------- --- ---------- --- Net increase (decrease) in net assets resulting from contract transactions (73,114,918) 447,101,303 (6,384,611) 52,192,930 40,605,440 -- 2,476,369 -- ------------ ------------ ----------- ----------- ----------- --- ---------- --- Net increase (decrease) in net assets (42,550,428) 482,879,112 (4,019,763) 49,336,957 39,550,000 -- 2,471,917 -- NET ASSETS: Beginning of period 482,879,112 -- 49,336,957 -- -- -- -- -- ------------ ------------ ----------- ----------- ----------- --- ---------- --- End of period $440,328,684 $482,879,112 $45,317,194 $49,336,957 $39,550,000 $-- $2,471,917 $-- ============ ============ =========== =========== =========== === ========== ===
The accompanying notes are an integral part of these financial statements. 37
MIST BLACKROCK LARGE-CAP CORE MIST CYCLICAL MIST SUBACCOUNT GROWTH & INCOME EFT CYCLICAL GROWTH EFT (CLASS A) SUBACCOUNT SUBACCOUNT ----------------------- -------------------------- -------------------------- 2007 (a) 2006 (b) 2007 2006 2007 2006 ----------- ---------- ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 6,502 $ (14,472) $ (2,162,362) $ 482,770 $ (2,601,238) $ (169,978) Net realized gains (losses) 237,724 (7,284) 2,100,845 384,788 2,234,110 949,291 Change in unrealized gains (losses) on investments (141,368) 141,368 7,152,995 13,553,898 9,155,332 18,836,279 ----------- ---------- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 102,858 119,612 7,091,478 14,421,456 8,788,204 19,615,592 ----------- ---------- ------------ ------------ ------------ ------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners 111,021 224,794 11,335,717 13,326,556 21,235,888 25,513,480 Transfers from other funding options 131,752 2,288,443 2,083,240 167,606,513 3,121,510 180,791,471 Administrative and asset allocation charges 1 (1,748) (241,969) (266,517) (295,298) (319,425) Contract surrenders (5,511) (89,473) (17,847,551) (14,557,462) (17,960,597) (12,994,053) Transfers to other funding options (2,354,286) (527,463) (6,990,650) (7,206,704) (12,498,630) (11,313,834) Other receipts (payments) -- -- (1,138,847) (310,823) (565,607) (387,784) ----------- ---------- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions (2,117,023) 1,894,553 (12,800,060) 158,591,563 (6,962,734) 181,289,855 ----------- ---------- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (2,014,165) 2,014,165 (5,708,582) 173,013,019 1,825,470 200,905,447 NET ASSETS: Beginning of period 2,014,165 -- 173,013,019 -- 200,905,447 -- ----------- ---------- ------------ ------------ ------------ ------------ End of period $ -- $2,014,165 $167,304,437 $173,013,019 $202,730,917 $200,905,447 =========== ========== ============ ============ ============ ============
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period May 1, 2006 to December 31, 2006. (c) For the period April 30, 2007 to December 31, 2007. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 38
MIST DREMAN SMALL-CAP VALUE MIST HARRIS OAKMARK SUBACCOUNT INTERNATIONAL SUBACCOUNT (CLASS A) (CLASS A) ----------------------- ------------------------ 2007 2006 (b) 2007 2006 (b) ----------- ---------- ----------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (46,039) $ 150 $ (40,921) $ (23,223) Net realized gains (losses) 61,873 9,708 699,186 350 Change in unrealized gains (losses) on investments (176,178) 142,897 (1,252,324) 452,143 ----------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from operations (160,344) 152,755 (594,059) 429,270 ----------- ---------- ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 480,517 64,322 1,302,965 284,922 Transfers from other funding options 3,465,770 2,327,816 9,640,124 5,562,039 Administrative and asset allocation charges (2,308) (737) (6,726) (2,575) Contract surrenders (399,520) (122,786) (1,019,237) (125,463) Transfers to other funding options (1,358,533) (302,438) (4,178,404) (492,941) Other receipts (payments) (18,694) -- (14,616) -- ----------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions 2,167,232 1,966,177 5,724,106 5,225,982 ----------- ---------- ----------- ---------- Net increase (decrease) in net assets 2,006,888 2,118,932 5,130,047 5,655,252 NET ASSETS: Beginning of period 2,118,932 -- 5,655,252 -- ----------- ---------- ----------- ---------- End of period $ 4,125,820 $2,118,932 $10,785,299 $5,655,252 =========== ========== =========== ========== MIST JANUS FORTY MIST LAZARD MID-CAP SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) -------------------------- ------------------- 2007 2006 (b) 2007 (c) 2006 ------------ ------------ ---------- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (5,930,942) $ (4,475,878) $ (13,224) $ -- Net realized gains (losses) 93,055,539 (1,672,643) (10,169) -- Change in unrealized gains (losses) on investments 53,875,427 18,905,195 (185,732) -- ------------ ------------ ---------- ---- Net increase (decrease) in net assets resulting from operations 141,000,024 12,756,674 (209,125) -- ------------ ------------ ---------- ---- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 24,312,349 18,932,511 112,619 -- Transfers from other funding options 15,577,146 580,968,967 2,213,581 -- Administrative and asset allocation charges (561,114) (607,655) (1,032) -- Contract surrenders (70,195,365) (41,549,325) (126,927) -- Transfers to other funding options (41,858,394) (30,671,489) (370,001) -- Other receipts (payments) (1,747,420) 85,431 -- -- ------------ ------------ ---------- ---- Net increase (decrease) in net assets resulting from contract transactions (74,472,798) 527,158,440 1,828,240 -- ------------ ------------ ---------- ---- Net increase (decrease) in net assets 66,527,226 539,915,114 1,619,115 -- NET ASSETS: Beginning of period 539,915,114 -- -- -- ------------ ------------ ---------- ---- End of period $606,442,340 $539,915,114 $1,619,115 $ -- ============ ============ ========== ====
The accompanying notes are an integral part of these financial statements. 39
MIST LEGG MASON PARTNERS MIST LOOMIS SAYLES MIST LORD ABBETT MANAGED ASSETS GLOBAL MARKETS BOND DEBENTURE SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) ------------------------------ -------------------- -------------------------- 2007 2006 (b) 2007 (c) 2006 2007 2006 (b) -------------- -------------- -------------- ---- ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 2,230,987 $ (1,604,491) $ (1,781,432) $-- $ 83,177 $ (5,017) Net realized gains (losses) 16,692,055 118,401 885,869 -- 3,521 8,976 Change in unrealized gains (losses) on investments (9,667,056) 12,266,981 38,723,173 -- 24,288 40,926 ------------- ------------- ------------- --- ----------- ----------- Net increase (decrease) in net assets resulting from operations 9,255,986 10,780,891 37,827,610 -- 110,986 44,885 ------------- ------------- ------------- --- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 5,808,968 4,448,627 5,723,942 -- 299,647 56,292 Transfers from other funding options 2,588,394 197,219,236 211,346,352 -- 2,378,351 1,730,321 Administrative and asset allocation charges (156,760) (176,812) (147,528) -- (1,728) (537) Contract surrenders (23,857,775) (15,298,029) (20,229,136) -- (230,770) (62,580) Transfers to other funding options (7,645,976) (5,315,070) (6,992,974) -- (707,528) (360,352) Other receipts (payments) (662,294) 171,348 (115,185) -- -- -- ------------- ------------- ------------- --- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions (23,925,443) 181,049,300 189,585,471 -- 1,737,972 1,363,144 ------------- ------------- ------------- --- ----------- ----------- Net increase (decrease) in net assets (14,669,457) 191,830,191 227,413,081 -- 1,848,958 1,408,029 NET ASSETS: Beginning of period 191,830,191 -- -- -- 1,408,029 -- ------------- ------------- ------------- --- ----------- ----------- End of period $ 177,160,734 $ 191,830,191 $ 227,413,081 $-- $ 3,256,987 $ 1,408,029 ============= ============= ============= === =========== ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period May 1, 2006 to December 31, 2006. (c) For the period April 30, 2007 to December 31, 2007. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 40
MIST LORD ABBETT MIST MET/AIM GROWTH AND INCOME CAPITAL APPRECIATION SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS A) ---------------------------- ------------------------ 2007 2006 (b) 2007 2006 (b) ------------- ------------- ------------ ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (57,672) $ (112,064) $ (10,997) $ (3,896) Net realized gains (losses) 913,658 (6,484) 2,282 85,060 Change in unrealized gains (losses) on investments (445,276) 1,126,710 94,447 (74,470) ----------- ----------- ---------- -------- Net increase (decrease) in net assets resulting from operations 410,710 1,008,162 85,732 6,694 ----------- ----------- ---------- -------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,793,529 1,137,952 199,971 143,803 Transfers from other funding options 2,442,293 15,252,196 422,383 660,584 Administrative and asset allocation charges (11,371) (10,563) (1,331) (924) Contract surrenders (2,069,957) (963,384) (80,301) (8,062) Transfers to other funding options (2,540,233) (1,297,296) (196,118) (82,156) Other receipts (payments) (26,194) (13,419) -- -- ----------- ----------- ---------- -------- Net increase (decrease) in net assets resulting from contract transactions (411,933) 14,105,486 344,604 713,245 ----------- ----------- ---------- -------- Net increase (decrease) in net assets (1,223) 15,113,648 430,336 719,939 NET ASSETS: Beginning of period 15,113,648 -- 719,939 -- ----------- ----------- ---------- -------- End of period $15,112,425 $15,113,648 $1,150,275 $719,939 =========== =========== ========== ======== MIST MET/AIM MIST MFS RESEARCH SMALL CAP GROWTH INTERNATIONAL SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) -------------------------- --------------------- 2007 2006 (b) 2007 (c) 2006 ------------ ------------ ------------- ------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (18,552) $ (4,104) $ (71,752) $-- Net realized gains (losses) 36,930 (11,354) 27,243 -- Change in unrealized gains (losses) on investments 46,954 21,433 398,381 -- ---------- ---------- ----------- --- Net increase (decrease) in net assets resulting from operations 65,332 5,975 353,872 -- ---------- ---------- ----------- --- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 179,772 57,379 385,201 -- Transfers from other funding options 2,189,781 1,176,763 10,233,594 -- Administrative and asset allocation charges (1,329) (432) (5,195) -- Contract surrenders (126,746) (21,273) (762,451) -- Transfers to other funding options (585,540) (416,715) (1,408,021) -- Other receipts (payments) -- -- -- -- ---------- ---------- ----------- --- Net increase (decrease) in net assets resulting from contract transactions 1,655,938 795,722 8,443,128 -- ---------- ---------- ----------- --- Net increase (decrease) in net assets 1,721,270 801,697 8,797,000 -- NET ASSETS: Beginning of period 801,697 -- -- -- ---------- ---------- ----------- --- End of period $2,522,967 $ 801,697 $ 8,797,000 $-- ========== ========== =========== ===
The accompanying notes are an integral part of these financial statements. 41
MIST NEUBERGER BERMAN MIST PIMCO MIST MFS VALUE REAL ESTATE INFLATION PROTECTED BOND SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) ------------------------ ------------------------- ------------------------- 2007 2006 (b) 2007 2006 (b) 2007 (c) 2006 ----------- ----------- ------------ ----------- ---------- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (217,622) $ 70,801 $ (27,924) $ (245,759) $ (18,827) $-- Net realized gains (losses) 424,978 517,821 3,115,038 104,484 10,563 -- Change in unrealized gains (losses) on investments 689,806 596,317 (8,724,685) 5,958,079 160,886 -- ----------- ----------- ------------ ----------- ---------- --- Net increase (decrease) in net assets resulting from operations 897,162 1,184,939 (5,637,571) 5,816,804 152,622 -- ----------- ----------- ------------ ----------- ---------- --- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 2,019,265 905,059 4,080,324 2,608,084 198,627 -- Transfers from other funding options 8,134,129 12,471,659 9,006,536 31,621,826 3,366,834 -- Administrative and asset allocation charges (13,089) (8,724) (29,064) (31,330) (2,186) -- Contract surrenders (1,975,475) (342,031) (3,850,052) (2,018,227) (174,985) -- Transfers to other funding options (2,600,173) (956,239) (13,581,341) (2,916,098) (615,426) -- Other receipts (payments) (16,020) -- (46,806) (142,942) -- -- ----------- ----------- ------------ ----------- ---------- --- Net increase (decrease) in net assets resulting from contract transactions 5,548,637 12,069,724 (4,420,403) 29,121,313 2,772,864 -- ----------- ----------- ------------ ----------- ---------- --- Net increase (decrease) in net assets 6,445,799 13,254,663 (10,057,974) 34,938,117 2,925,486 -- NET ASSETS: Beginning of period 13,254,663 -- 34,938,117 -- -- -- ----------- ----------- ------------ ----------- ---------- --- End of period $19,700,462 $13,254,663 $ 24,880,143 $34,938,117 $2,925,486 $-- =========== =========== ============ =========== ========== ===
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period May 1, 2006 to December 31, 2006. (c) For the period April 30, 2007 to December 31, 2007. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 42
MIST PIONEER MIST PIONEER FUND MID-CAP VALUE SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) ------------------------ ----------------------- 2007 2006 (b) 2007 (a) 2006 (b) ----------- ----------- ----------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (59,384) $ (139,360) $ 912 $ (3,622) Net realized gains (losses) 295,821 14,661 126,692 (3,590) Change in unrealized gains (losses) on investments 400,565 1,334,732 (29,926) 29,926 ----------- ----------- ----------- ---------- Net increase (decrease) in net assets resulting from operations 637,002 1,210,033 97,678 22,714 ----------- ----------- ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 880,798 641,510 38,970 61,198 Transfers from other funding options 453,032 17,609,504 546,920 1,100,536 Administrative and asset allocation charges (17,285) (19,212) 1 (494) Contract surrenders (2,151,326) (1,676,337) (53,702) (15,208) Transfers to other funding options (819,038) (913,608) (1,359,116) (439,497) Other receipts (payments) (165,241) (88,487) -- -- ----------- ----------- ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions (1,819,060) 15,553,370 (826,927) 706,535 ----------- ----------- ----------- ---------- Net increase (decrease) in net assets (1,182,058) 16,763,403 (729,249) 729,249 NET ASSETS: Beginning of period 16,763,403 -- 729,249 -- ----------- ----------- ----------- ---------- End of period $15,581,345 $16,763,403 $ -- $ 729,249 =========== =========== =========== ========== MIST PIONEER MIST THIRD AVENUE STRATEGIC INCOME SMALL CAP VALUE SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) ----------------------- ------------------------ 2007 2006 (b) 2007 2006 (b) ----------- ---------- ------------ ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (57,153) $ 325,156 $ (648,882) $ (17,140) Net realized gains (losses) 15,972 10,767 321,368 1,228 Change in unrealized gains (losses) on investments 542,923 (59,516) (7,535,812) 223,318 ----------- ---------- ------------ ---------- Net increase (decrease) in net assets resulting from operations 501,742 276,407 (7,863,326) 207,406 ----------- ---------- ------------ ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,138,777 830,286 5,758,184 161,902 Transfers from other funding options 3,603,082 8,402,113 85,653,856 9,808,688 Administrative and asset allocation charges (6,638) (5,551) (70,259) (3,704) Contract surrenders (1,447,233) (280,671) (6,874,600) (141,287) Transfers to other funding options (1,219,110) (796,107) (12,024,219) (97,867) Other receipts (payments) -- -- (223,570) (646) ----------- ---------- ------------ ---------- Net increase (decrease) in net assets resulting from contract transactions 2,068,878 8,150,070 72,219,392 9,727,086 ----------- ---------- ------------ ---------- Net increase (decrease) in net assets 2,570,620 8,426,477 64,356,066 9,934,492 NET ASSETS: Beginning of period 8,426,477 -- 9,934,492 -- ----------- ---------- ------------ ---------- End of period $10,997,097 $8,426,477 $ 74,290,558 $9,934,492 =========== ========== ============ ==========
The accompanying notes are an integral part of these financial statements. 43
METLIFE INVESTMENT METLIFE INVESTMENT METLIFE INVESTMENT DIVERSIFIED BOND INTERNATIONAL STOCK LARGE COMPANY STOCK SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS I) (CLASS I) --------------------------- --------------------------- --------------------------- 2007 (d) 2006 2007 (d) 2006 2007 (d) 2006 ------------- ------------ ------------- ------------ ------------- ------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 12,906,999 $ 9,671,435 $ 2,955,484 $ 1,307,247 $ 179,298 $ (1,028,387) Net realized gains (losses) 18,596,688 2,023,523 90,660,984 11,241,693 17,304,241 (2,467,932) Change in unrealized gains (losses) on investments (20,981,465) (1,442,384) (76,632,676) 39,965,231 (1,144,123) 40,352,263 ------------- ------------ ------------- ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations 10,522,222 10,252,574 16,983,792 52,514,171 16,339,416 36,855,944 ------------- ------------ ------------- ------------ ------------- ------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners 20,245,046 30,569,789 11,381,774 17,276,461 18,142,239 28,206,032 Transfers from other funding options 16,227,696 25,083,104 4,692,529 6,691,301 4,093,636 10,828,000 Administrative and asset allocation charges (1,360,321) (2,867,246) (871,499) (1,902,192) (1,439,526) (2,956,176) Contract surrenders (41,086,145) (38,617,466) (27,741,793) (25,832,545) (41,861,703) (37,707,180) Transfers to other funding options (349,330,844) (24,911,957) (245,184,808) (37,876,205) (351,302,582) (25,167,713) Other receipts (payments) (633,522) (809,805) (373,303) (425,477) (547,733) (598,801) ------------- ------------ ------------- ------------ ------------- ------------ Net increase (decrease) in net assets resulting from contract transactions (355,938,090) (11,553,581) (258,097,100) (42,068,657) (372,915,669) (27,395,838) ------------- ------------ ------------- ------------ ------------- ------------ Net increase (decrease) in net assets (345,415,868) (1,301,007) (241,113,308) 10,445,514 (356,576,253) 9,460,106 NET ASSETS: Beginning of period 345,415,868 346,716,875 241,113,308 230,667,794 356,576,253 347,116,147 ------------- ------------ ------------- ------------ ------------- ------------ End of period $ -- $345,415,868 $ -- $241,113,308 $ -- $356,576,253 ============= ============ ============= ============ ============= ============
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period May 1, 2006 to December 31, 2006. (c) For the period April 30, 2007 to December 31, 2007. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 44
METLIFE INVESTMENT MSF BLACKROCK SMALL COMPANY STOCK AGGRESSIVE GROWTH SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS D) --------------------------- ----------------------- 2007 (d) 2006 2007 2006 (b) ------------- ------------ ----------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (1,669,356) $ (2,420,288) $ (88,955) $ (55,665) Net realized gains (losses) 32,058,049 28,783,535 97,443 (80,449) Change in unrealized gains (losses) on investments (29,202,303) (1,615,850) 1,189,504 (49,359) ------------- ------------ ----------- ---------- Net increase (decrease) in net assets resulting from operations 1,186,390 24,747,397 1,197,992 (185,473) ------------- ------------ ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 9,828,926 14,937,022 814,450 609,085 Transfers from other funding options 4,164,613 5,012,463 1,668,251 7,845,818 Administrative and asset allocation charges (633,700) (1,347,843) (7,403) (7,358) Contract surrenders (25,765,343) (24,083,593) (982,161) (830,553) Transfers to other funding options (201,716,911) (19,258,036) (1,250,983) (911,624) Other receipts (payments) (459,284) (392,183) (7,904) (8,304) ------------- ------------ ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions (214,581,699) (25,132,170) 234,250 6,697,064 ------------- ------------ ----------- ---------- Net increase (decrease) in net assets (213,395,309) (384,773) 1,432,242 6,511,591 NET ASSETS: Beginning of period 213,395,309 213,780,082 6,511,591 -- ------------- ------------ ----------- ---------- End of period $ -- $213,395,309 $ 7,943,833 $6,511,591 ============= ============ =========== ========== MSF BLACKROCK MSF BLACKROCK BOND INCOME DIVERSIFIED SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) ------------------------ ------------------ 2007 2006 2007 (c) 2006 ----------- ----------- ------------ ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 1,760,958 $ (598,521) $ (1,527,739) $-- Net realized gains (losses) 495,454 212,932 67,533 -- Change in unrealized gains (losses) on investments 1,686,913 3,871,277 2,467,854 -- ----------- ----------- ------------ --- Net increase (decrease) in net assets resulting from operations 3,943,325 3,485,688 1,007,648 -- ----------- ----------- ------------ --- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 2,946,647 2,163,315 3,587,047 -- Transfers from other funding options 2,841,527 86,847,215 192,743,745 -- Administrative and asset allocation charges (52,508) (60,371) (149,932) -- Contract surrenders (9,736,829) (8,296,526) (19,667,857) -- Transfers to other funding options (3,530,604) (2,462,906) (4,953,375) -- Other receipts (payments) (1,147,869) (158,023) (36,387) -- ----------- ----------- ------------ --- Net increase (decrease) in net assets resulting from contract transactions (8,679,636) 78,032,704 171,523,241 -- ----------- ----------- ------------ --- Net increase (decrease) in net assets (4,736,311) 81,518,392 172,530,889 -- NET ASSETS: Beginning of period 81,518,392 -- -- -- ----------- ----------- ------------ --- End of period $76,782,081 $81,518,392 $172,530,889 $-- =========== =========== ============ ===
The accompanying notes are an integral part of these financial statements. 45
MSF BLACKROCK MSF LEHMAN BROTHERS MONEY MARKET MSF FI LARGE CAP AGGREGATE BOND INDEX SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) -------------------------- -------------------------- -------------------- 2007 2006 2007 2006 (b) 2007 (e) 2006 ------------ ------------ ------------ ------------ ------------ ------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 2,743,575 $ 1,741,817 $ (678,538) $ (552,610) $ (167,488) $-- Net realized gains (losses) -- -- 4,388,167 (315,439) 12,523 -- Change in unrealized gains (losses) on investments -- -- (1,982,123) 1,612,173 1,370,742 -- ------------ ------------ ------------ ------------ ------------ --- Net increase (decrease) in net assets resulting from operations 2,743,575 1,741,817 1,727,506 744,124 1,215,777 -- ------------ ------------ ------------ ------------ ------------ --- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 4,981,153 4,011,401 3,228,901 2,843,576 788,818 -- Transfers from other funding options 53,472,259 94,654,895 1,036,275 72,578,655 94,414,969 -- Administrative and asset allocation charges (77,342) (83,032) (68,241) (81,148) (48,848) -- Contract surrenders (19,147,017) (11,091,656) (9,304,064) (5,994,292) (1,760,326) -- Transfers to other funding options (31,708,875) (21,558,373) (5,090,724) (3,586,953) (575,698) -- Other receipts (payments) (157,137) (287,663) (277,642) (18,258) (4,897) -- ------------ ------------ ------------ ------------ ------------ --- Net increase (decrease) in net assets resulting from contract transactions 7,363,041 65,645,572 (10,475,495) 65,741,580 92,814,018 -- ------------ ------------ ------------ ------------ ------------ --- Net increase (decrease) in net assets 10,106,616 67,387,389 (8,747,989) 66,485,704 94,029,795 -- NET ASSETS: Beginning of period 67,387,389 -- 66,485,704 -- -- -- ------------ ------------ ------------ ------------ ------------ --- End of period $ 77,494,005 $ 67,387,389 $ 57,737,715 $ 66,485,704 $ 94,029,795 $-- ============ ============ ============ ============ ============ ===
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period May 1, 2006 to December 31, 2006. (c) For the period April 30, 2007 to December 31, 2007. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 46
MSF METLIFE MSF METLIFE CONSERVATIVE AGGRESSIVE ALLOCATION ALLOCATION SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) ----------------------- ------------------------ 2007 2006 (b) 2007 2006 (b) ----------- ---------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (130,986) $ (6,046) $ (24,659) $ 1,690 Net realized gains (losses) 27,379 4,598 22,895 4,814 Change in unrealized gains (losses) on investments (84,338) 119,851 75,435 16,459 ----------- ---------- ----------- --------- Net increase (decrease) in net assets resulting from operations (187,945) 118,403 73,671 22,963 ----------- ---------- ----------- --------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,323,034 170,061 385,687 52,786 Transfers from other funding options 45,321,133 2,075,880 4,670,120 778,021 Administrative and asset allocation charges (37,142) (1,406) (2,350) (339) Contract surrenders (589,524) (35,944) (129,604) (69,140) Transfers to other funding options (956,439) (276,113) (1,833,086) (164,311) Other receipts (payments) -- -- -- -- ----------- ---------- ----------- --------- Net increase (decrease) in net assets resulting from contract transactions 45,061,062 1,932,478 3,090,767 597,017 ----------- ---------- ----------- --------- Net increase (decrease) in net assets 44,873,117 2,050,881 3,164,438 619,980 NET ASSETS: Beginning of period 2,050,881 -- 619,980 -- ----------- ---------- ----------- --------- End of period $46,923,998 $2,050,881 $ 3,784,418 $ 619,980 =========== ========== =========== ========= MSF METLIFE CONSERVATIVE TO MSF METLIFE MODERATE ALLOCATION MID CAP STOCK INDEX SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) --------------------------- ------------------------ 2007 2006 (b) 2007 2006 ------------ ------------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (165,030) $ (10,884) $ (26,526) $ (15,830) Net realized gains (losses) 38,967 12,190 216,122 (29,752) Change in unrealized gains (losses) on investments 497,518 140,071 (41,449) 67,655 ------------ ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 371,455 141,377 148,147 22,073 ------------ ----------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,663,678 260,763 426,952 104,926 Transfers from other funding options 43,225,136 3,131,107 3,913,392 3,478,051 Administrative and asset allocation charges (28,525) (1,532) (3,908) (1,833) Contract surrenders (1,579,049) (204,897) (451,793) (263,703) Transfers to other funding options (779,667) (183,355) (1,141,322) (525,700) Other receipts (payments) (61,743) 53 -- (1,846) ------------ ----------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 42,439,830 3,002,139 2,743,321 2,789,895 ------------ ----------- ----------- ----------- Net increase (decrease) in net assets 42,811,285 3,143,516 2,891,468 2,811,968 NET ASSETS: Beginning of period 3,143,516 -- 2,811,968 -- ------------ ----------- ----------- ----------- End of period $ 45,954,801 $ 3,143,516 $ 5,703,436 $ 2,811,968 ============ =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 47
MSF METLIFE MSF METLIFE MODERATE TO MODERATE ALLOCATION AGGRESSIVE ALLOCATION MSF METLIFE STOCK INDEX SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS A) -------------------------- ------------------------- ------------------------ 2007 2006 (b) 2007 2006 (b) 2007 2006 ------------ ------------ ------------ ----------- ------------ ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (902,847) $ (36,927) $ (846,431) $ (34,975) $ (3,937,969) $ (14,868) Net realized gains (losses) 137,539 25,923 94,539 28,194 383,510 890 Change in unrealized gains (losses) on investments 2,087,338 590,659 972,656 684,163 (1,103,493) 203,439 ------------ ----------- ------------ ----------- ------------ ---------- Net increase (decrease) in net assets resulting from operations 1,322,030 579,655 220,764 677,382 (4,657,952) 189,461 ------------ ----------- ------------ ----------- ------------ ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 7,767,918 738,987 7,114,875 893,255 19,440,497 95,024 Transfers from other funding options 322,231,015 12,633,422 321,777,725 11,445,877 576,823,302 3,416,956 Administrative and asset allocation charges (247,719) (6,249) (276,096) (6,493) (542,543) (2,001) Contract surrenders (8,905,940) (348,180) (5,816,320) (95,961) (41,795,940) (167,959) Transfers to other funding options (3,367,715) (347,737) (3,454,980) (525,286) (18,332,077) (40,543) Other receipts (payments) (5,024) (101,271) (5,286) -- (732,033) -- ------------ ----------- ------------ ----------- ------------ ---------- Net increase (decrease) in net assets resulting from contract transactions 317,472,535 12,568,972 319,339,918 11,711,392 534,861,206 3,301,477 ------------ ----------- ------------ ----------- ------------ ---------- Net increase (decrease) in net assets 318,794,565 13,148,627 319,560,682 12,388,774 530,203,254 3,490,938 NET ASSETS: Beginning of period 13,148,627 -- 12,388,774 -- 3,490,938 -- ------------ ----------- ------------ ----------- ------------ ---------- End of period $331,943,192 $13,148,627 $331,949,456 $12,388,774 $533,694,192 $3,490,938 ============ =========== ============ =========== ============ ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period May 1, 2006 to December 31, 2006. (c) For the period April 30, 2007 to December 31, 2007. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 48
MSF MORGAN STANLEY MSF MFS TOTAL RETURN EAFE INDEX SUBACCOUNT SUBACCOUNT (CLASS F) (CLASS A) -------------------------- ------------------------ 2007 2006 (b) 2007 (e) 2006 ------------ ------------ ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 874,812 $ (974,317) $ (150,492) $-- Net realized gains (losses) 4,752,229 103,694 (23,858) -- Change in unrealized gains (losses) on investments (2,154,876) 8,879,240 (1,064,535) -- ------------ ------------ ----------- --- Net increase (decrease) in net assets resulting from operations 3,472,165 8,008,617 (1,238,885) -- ------------ ------------ ----------- --- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 12,362,072 8,801,718 566,033 -- Transfers from other funding options 10,065,923 119,498,853 86,042,037 -- Administrative and asset allocation charges (138,789) (147,009) (40,294) -- Contract surrenders (15,948,985) (9,696,940) (1,418,451) -- Transfers to other funding options (8,126,551) (6,177,059) (699,146) -- Other receipts (payments) (234,823) (85,101) (46,470) -- ------------ ------------ ----------- --- Net increase (decrease) in net assets resulting from contract transactions (2,021,153) 112,194,462 84,403,709 -- ------------ ------------ ----------- --- Net increase (decrease) in net assets 1,451,012 120,203,079 83,164,824 -- NET ASSETS: Beginning of period 120,203,079 -- -- -- ------------ ------------ ----------- --- End of period $121,654,091 $120,203,079 $83,164,824 $-- ============ ============ =========== === MSF OPPENHEIMER GLOBAL EQUITY MSF RUSSELL 2000 INDEX SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) -------------------------- ------------------------- 2007 2006 (b) 2007 (e) 2006 ------------ ------------ ------------ ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (399,572) $ (2,755,685) $ (177,864) $-- Net realized gains (losses) 9,160,188 (593,120) (22,492) -- Change in unrealized gains (losses) on investments 9,020,326 22,047,681 (558,230) -- ------------ ------------ ------------ --- Net increase (decrease) in net assets resulting from operations 17,780,942 18,698,876 (758,586) -- ------------ ------------ ------------ --- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 15,618,722 10,889,058 693,531 -- Transfers from other funding options 8,847,569 352,023,696 101,550,688 -- Administrative and asset allocation charges (229,808) (252,327) (48,238) -- Contract surrenders (43,080,718) (25,668,377) (1,511,231) -- Transfers to other funding options (16,859,592) (11,535,167) (1,159,413) -- Other receipts (payments) (1,083,619) (156,766) (15,861) -- ------------ ------------ ------------ --- Net increase (decrease) in net assets resulting from contract transactions (36,787,446) 325,300,117 99,509,476 -- ------------ ------------ ------------ --- Net increase (decrease) in net assets (19,006,504) 343,998,993 98,750,890 -- NET ASSETS: Beginning of period 343,998,993 -- -- -- ------------ ------------ ------------ --- End of period $324,992,489 $343,998,993 $ 98,750,890 $-- ============ ============ ============ ===
The accompanying notes are an integral part of these financial statements. 49
MSF T. ROWE PRICE MSF WESTERN ASSET MANAGEMENT MSF WESTERN ASSET MANAGEMENT LARGE CAP GROWTH HIGH YIELD BOND STRATEGIC BOND OPPORTUNITIES SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS A) (CLASS A) ----------------------- ---------------------------- ---------------------------- 2007 2006 (b) 2007 (a) 2006 (b) 2007 2006 (b) ----------- ---------- -------------- ------------ ------------- ------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (63,691) $ (35,441) $ 4,326,466 $ (367,287) $ 18,430 $ (10,833) Net realized gains (losses) 157,308 550 418,115 65,474 26,016 7,962 Change in unrealized gains (losses) on investments 306,354 362,632 (3,022,800) 3,022,800 (1,809) 62,151 ----------- ---------- ------------ ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 399,971 327,741 1,721,781 2,720,987 42,637 59,280 ----------- ---------- ------------ ----------- ---------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 568,768 327,798 978,616 2,082,746 101,747 62,894 Transfers from other funding options 2,902,692 4,926,356 2,113,645 46,553,476 806,190 1,980,838 Administrative and asset allocation charges (5,306) (4,806) (202) (41,206) (1,003) (960) Contract surrenders (550,898) (330,933) (1,930,055) (4,064,086) (247,476) (139,513) Transfers to other funding options (1,309,719) (461,022) (47,040,398) (3,051,973) (514,496) (507,574) Other receipts (payments) -- (1,330) (54,051) 10,720 -- -- ----------- ---------- ------------ ----------- ---------- ---------- Net increase (decrease) in net assets resulting from contract transactions 1,605,537 4,456,063 (45,932,445) 41,489,677 144,962 1,395,685 ----------- ---------- ------------ ----------- ---------- ---------- Net increase (decrease) in net assets 2,005,508 4,783,804 (44,210,664) 44,210,664 187,599 1,454,965 NET ASSETS: Beginning of period 4,783,804 -- 44,210,664 -- 1,454,965 -- ----------- ---------- ------------ ----------- ---------- ---------- End of period $ 6,789,312 $4,783,804 $ -- $44,210,664 $1,642,564 $1,454,965 =========== ========== ============ =========== ========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period May 1, 2006 to December 31, 2006. (c) For the period April 30, 2007 to December 31, 2007. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 50
MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT PIMCO VIT REAL RETURN SUBACCOUNT SUBACCOUNT (CLASS A) (ADMINISTRATIVE CLASS) ---------------------------- ----------------------- 2007 2006 (b) 2007 (a) 2006 ------------- ------------- ----------- ---------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 1,037,049 $ (498,676) $ 19,718 $ 42,824 Net realized gains (losses) 354,883 149,590 (75,504) 29,958 Change in unrealized gains (losses) on investments 595,834 2,792,383 90,751 (73,125) ----------- ----------- ----------- ---------- Net increase (decrease) in net assets resulting from operations 1,987,766 2,443,297 34,965 (343) ----------- ----------- ----------- ---------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 4,179,889 3,130,827 135,965 229,833 Transfers from other funding options 5,036,717 71,315,841 297,307 1,400,837 Administrative and asset allocation charges (63,635) (75,593) (5) (1,528) Contract surrenders (8,650,225) (6,741,493) (14,624) (137,610) Transfers to other funding options (5,433,130) (4,911,894) (2,097,851) (813,864) Other receipts (payments) (250,694) (181,381) -- -- ----------- ----------- ----------- ---------- Net increase (decrease) in net assets resulting from contract transactions (5,181,078) 62,536,307 (1,679,208) 677,668 ----------- ----------- ----------- ---------- Net increase (decrease) in net assets (3,193,312) 64,979,604 (1,644,243) 677,325 NET ASSETS: Beginning of period 64,979,604 -- 1,644,243 966,918 ----------- ----------- ----------- ---------- End of period $61,786,292 $64,979,604 $ -- $1,644,243 =========== =========== =========== ========== PIMCO VIT TOTAL RETURN PUTNAM VT INTERNATIONAL EQUITY SUBACCOUNT SUBACCOUNT (ADMINISTRATIVE CLASS) (CLASS IB) ------------------------ ------------------------------ 2007 2006 2007 (a) 2006 ----------- ----------- -------------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 593,584 $ 423,040 $ 185,586 $ (38,090) Net realized gains (losses) (60,227) 35,996 2,428,671 346,276 Change in unrealized gains (losses) on investments 710,825 (111,353) (2,004,865) 977,872 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 1,244,182 347,683 609,392 1,286,058 ----------- ----------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 1,859,627 2,099,864 224,591 558,487 Transfers from other funding options 6,220,950 4,618,436 1,198,003 2,743,107 Administrative and asset allocation charges (13,585) (13,274) (28) (4,537) Contract surrenders (2,732,576) (1,711,862) (294,761) (550,530) Transfers to other funding options (2,328,410) (1,541,925) (8,895,628) (1,443,705) Other receipts (payments) (75,599) (10,706) (23,688) -- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions 2,930,407 3,440,533 (7,791,511) 1,302,822 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets 4,174,589 3,788,216 (7,182,119) 2,588,880 NET ASSETS: Beginning of period 15,236,757 11,448,541 7,182,119 4,593,239 ----------- ----------- ----------- ----------- End of period $19,411,346 $15,236,757 $ -- $ 7,182,119 =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 51
PUTNAM VT SMALL CAP VALUE VAN KAMPEN LIT COMSTOCK SUBACCOUNT SUBACCOUNT (CLASS IB) (CLASS II) ------------------------- ------------------------ 2007 (a) 2006 2007 2006 ------------ ----------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 114,193 $ (651,464) $ 44,683 $ (313) Net realized gains (losses) 23,746,564 7,655,617 650,604 811,117 Change in unrealized gains (losses) on investments (18,657,452) 3,024,118 (1,065,200) 816,708 ------------ ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 5,203,305 10,028,271 (369,913) 1,627,512 ------------ ----------- ----------- ----------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 2,650,138 8,798,397 1,451,024 1,724,740 Transfers from other funding options 3,470,469 10,575,463 1,655,472 1,810,517 Administrative and asset allocation charges (297) (66,637) (11,001) (12,202) Contract surrenders (3,213,340) (6,393,725) (2,052,139) (1,283,217) Transfers to other funding options (83,903,734) (9,560,135) (2,638,526) (1,952,605) Other receipts (payments) (40,056) (253,339) (29,095) (71,281) ------------ ----------- ----------- ----------- Net increase (decrease) in net assets resulting from contract transactions (81,036,820) 3,100,024 (1,624,265) 215,952 ------------ ----------- ----------- ----------- Net increase (decrease) in net assets (75,833,515) 13,128,295 (1,994,178) 1,843,464 NET ASSETS: Beginning of period 75,833,515 62,705,220 12,768,962 10,925,498 ------------ ----------- ----------- ----------- End of period $ -- $75,833,515 $10,774,784 $12,768,962 ============ =========== =========== ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period May 1, 2006 to December 31, 2006. (c) For the period April 30, 2007 to December 31, 2007. (d) For the period January 1, 2007 to November 9, 2007. (e) For the period November 12, 2007 to December 31, 2007. The accompanying notes are an integral part of these financial statements. 52 This page is intentionally left blank. METLIFE OF CT FUND U FOR VARIABLE ANNUITIES OF METLIFE INSURANCE COMPANY OF CONNECTICUT NOTES TO THE FINANCIAL STATEMENTS 1. ORGANIZATION MetLife of CT Fund U for Variable Annuities (the "Separate Account"), a separate account of MetLife Insurance Company of Connecticut (the "Company"), was established by the Company's Board of Directors on May 16, 1983 to support operations of the Company with respect to certain variable annuity contracts (the "Contracts"). The Company is a direct wholly-owned subsidiary of MetLife, Inc., a Delaware corporation. The Separate Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended, and exists in accordance with the regulations of the Connecticut Department of Insurance. The Separate Account is divided into Subaccounts, each of which is treated as an individual accounting entity for financial reporting purposes. Each Subaccount invests in shares of the corresponding portfolio, series, or fund (with the same name) of registered investment management companies (the "Trusts") which are presented below: Dreyfus Variable Investment Fund ("Dreyfus VIF") Fidelity Variable Insurance Products Fund ("Fidelity VIP") Franklin Templeton Variable Insurance Products Trust ("FTVIPT") Janus Aspen Series ("Janus Aspen") Legg Mason Partners Variable Equity Trust ("LMPVET") Legg Mason Partners Variable Income Trust ("LMPVIT") Met Investors Series Trust ("MIST") Metropolitan Series Fund, Inc. ("MSF") PIMCO Variable Insurance Trust ("PIMCO VIT") Van Kampen Life Investment Trust ("Van Kampen LIT") The assets of the Separate Account are registered in the name of the Company. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the Company's other assets and liabilities. The portion of the Separate Account's assets applicable to the Contracts is not chargeable with liabilities arising out of any other business the Company may conduct. Purchase payments applied to the Separate Account are invested in one or more Subaccounts in accordance with the selection made by the contract owner. The following Subaccounts were available for investment as of December 31, 2007 (the share class indicated in parentheses is that of the portfolio, series, or fund in which the Subaccount invests): Dreyfus VIF Developing Leaders Subaccount (Initial Shares) Fidelity VIP Contrafund Subaccount (Service Class 2) Fidelity VIP Equity-Income Subaccount (Initial Class) Fidelity VIP Growth Subaccount (Initial Class) Fidelity VIP High Income Subaccount (Initial Class) Fidelity VIP Mid Cap Subaccount (Service Class 2) FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) FTVIPT Templeton Foreign Securities Subaccount (Class 2) Janus Aspen International Growth Subaccount (Service Shares) LMPVET Aggressive Growth Subaccount (Class I) LMPVET Appreciation Subaccount (Class I) LMPVET Fundamental Value Subaccount (Class I) LMPVET International All Cap Opportunity Subaccount LMPVET Investors Subaccount (Class I) LMPVET Large Cap Growth Subaccount (Class I) LMPVET Small Cap Growth Subaccount (Class I) LMPVET Social Awareness Subaccount LMPVIT Adjustable Rate Income Subaccount MIST Batterymarch Growth and Income Subaccount (Class A) MIST Batterymarch Mid-Cap Stock Subaccount (Class A) 54 MIST BlackRock High Yield Subaccount (Class A) MIST BlackRock Large-Cap Core Subaccount (Class E) MIST Cyclical Growth & Income EFT Subaccount MIST Cyclical Growth EFT Subaccount MIST Dreman Small-Cap Value Subaccount (Class A) MIST Harris Oakmark International Subaccount (Class A) MIST Janus Forty Subaccount (Class A) MIST Lazard Mid-Cap Subaccount (Class B) MIST Legg Mason Partners Managed Assets Subaccount (Class A) MIST Loomis Sayles Global Markets Subaccount (Class A) MIST Lord Abbett Bond Debenture Subaccount (Class A) MIST Lord Abbett Growth and Income Subaccount (Class B) MIST Met/AIM Capital Appreciation Subaccount (Class A) MIST Met/AIM Small Cap Growth Subaccount (Class A) MIST MFS Research International Subaccount (Class B) MIST MFS Value Subaccount (Class A) MIST Neuberger Berman Real Estate Subaccount (Class A) MIST PIMCO Inflation Protected Bond Subaccount (Class A) MIST Pioneer Fund Subaccount (Class A) MIST Pioneer Strategic Income Subaccount (Class A) MIST Third Avenue Small Cap Value Subaccount (Class B) MSF BlackRock Aggressive Growth Subaccount (Class D) MSF BlackRock Bond Income Subaccount (Class A) MSF BlackRock Diversified Subaccount (Class A) MSF BlackRock Money Market Subaccount (Class A) MSF FI Large Cap Subaccount (Class A) MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) MSF MetLife Aggressive Allocation Subaccount (Class B) MSF MetLife Conservative Allocation Subaccount (Class B) MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) MSF MetLife Mid Cap Stock Index Subaccount (Class A) MSF MetLife Moderate Allocation Subaccount (Class B) MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) MSF MetLife Stock Index Subaccount (Class A) MSF MFS Total Return Subaccount (Class F) MSF Morgan Stanley EAFE Index Subaccount (Class A) MSF Oppenheimer Global Equity Subaccount (Class A) MSF Russell 2000 Index Subaccount (Class A) MSF T. Rowe Price Large Cap Growth Subaccount (Class B) MSF Western Asset Management Strategic Bond Opportunities Subaccount (Class A) MSF Western Asset Management U.S. Government Subaccount (Class A) PIMCO VIT Total Return Subaccount (Administrative Class) Van Kampen LIT Comstock Subaccount (Class II) 55 The following Subaccounts ceased operations during the year ended December 31, 2007:
Dreyfus Stock Index Subaccount MetLife Investment Large Company Stock Subaccount Fidelity VIP Asset Manager(SM) Subaccount MetLife Investment Small Company Stock Subaccount FTVIP Templeton Global Asset Allocation Subaccount MSF Western Asset Management High Yield Bond LMPVPI All Cap Subaccount Subaccount LMPVPIII Large Cap Value Subaccount PIMCO VIT Real Return Subaccount MIST Pioneer Mid-Cap Value Subaccount Putnam VT International Equity Subaccount MetLife Investment Diversified Bond Subaccount Putnam VT Small Cap Value Subaccount MetLife Investment International Stock Subaccount
The operations of the Subaccounts were affected by the following changes that occurred during the year ended December 31, 2007: NAME CHANGES:
OLD NAME NEW NAME - -------- -------- Legg Mason Partners Variable International Legg Mason Partners Variable International All Cap All Cap Growth Portfolio Opportunity Portfolio Legg Mason Partners Variable Social Awareness Legg Mason Partners Variable Social Awareness Stock Portfolio Portfolio Janus Capital Appreciation Portfolio Janus Forty Portfolio
MERGERS:
OLD NAME NEW NAME - -------- -------- Legg Mason Partners Variable All Cap Portfolio Legg Mason Partners Variable Fundamental Value Legg Mason Partners Variable Large Cap Value Portfolio Portfolio Legg Mason Partners Variable Investors Portfolio Pioneer Mid-Cap Value Portfolio Lazard Mid-Cap Portfolio Western Asset Management High Yield Bond Portfolio BlackRock High Yield Portfolio
SUBSTITUTIONS:
OLD NAME NEW NAME - -------- -------- Dreyfus Stock Index Fund MetLife Stock Index Portfolio Fidelity Asset Manager(SM) Portfolio BlackRock Diversified Portfolio Putnam VT International Equity Fund MFS Research International Portfolio Putnam VT Small Cap Value Fund Third Avenue Small Cap Value Portfolio PIMCO VIT Real Return Portfolio PIMCO Inflation Protected Bond Portfolio Templeton Global Asset Allocation Portfolio Loomis Sayles Global Markets Portfolio MetLife Investment International Stock Fund Morgan Stanley EAFE Index Portfolio MetLife Investment Small Company Stock Fund Russell 2000 Index Portfolio MetLife Investment Large Company Stock Fund MetLife Stock Index Portfolio MetLife Investment Diversified Bond Fund Lehman Brothers Aggregate Bond Index Portfolio
PORTFOLIO SHARE CLASS EXCHANGE:
OLD PORTFOLIO NEW PORTFOLIO - ------------- ------------- BlackRock Large-Cap Core Portfolio (Class A) BlackRock Large-Cap Core Portfolio (Class E)
56 This report is prepared for the general information of contract owners and is not an offer of units of the Separate Account or shares of the Separate Account's underlying investments. It should not be used in connection with any offer except in conjunction with the prospectus for the Separate Account products offered by the Company and the prospectus of the underlying portfolio, series, or fund which collectively contain all the pertinent information, including additional information on charges and expenses. 2. SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for variable annuity separate accounts registered as unit investment trusts. VALUATION OF INVESTMENTS Investments are reported at fair value and are based on the net asset value per share as determined by the underlying assets of the portfolio, series, or fund of the Trusts, which value their investment securities at fair value. Changes in fair value are recorded in the statement of operations. SECURITY TRANSACTIONS Security transactions are recorded on a trade date basis. Realized gains and losses on the sales of investments are computed on the basis of the average cost of the investment sold. Income from dividends and realized gain distributions are recorded on the ex-distribution date. FEDERAL INCOME TAXES The operations of the Separate Account form a part of the total operations of the Company and are not taxed separately. The Company is taxed as a life insurance company under the provisions of the Internal Revenue Code ("IRC"). Under the current provisions of the IRC, the Company does not expect to incur federal income taxes on the earnings of the Separate Account to the extent the earnings are credited under the Contracts. Accordingly, no charge is being made currently to the Separate Account for federal income taxes. The Company will periodically review the status of this policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the Contracts. ANNUITY PAYOUTS Net assets allocated to Contracts in the payout period are computed according to industry standard mortality tables. The assumed investment return is 3.5 percent. The mortality risk is fully borne by the Company and may result in additional amounts being transferred into the Separate Account by the Company to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Company. PURCHASE PAYMENTS Purchase payments received from contract owners by the Company are credited as accumulation or annuity units as of the end of the valuation period in which received, as provided in the prospectus. NET TRANSFERS The contract owner has the opportunity to transfer funds between Subaccounts within the Separate Account or the fixed account, which is an investment option in the Company's general account. OTHER RECEIPTS (PAYMENTS) Included in "other receipts (payments)" in the statements of changes in net assets are primarily contract benefits which have been re-deposited with the Company and distributions for payouts. 57 USE OF ESTIMATES The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported herein. Actual results could differ from these estimates. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENT Effective January 1, 2007, the Company adopted Financial Accounting Standards Board ("FASB") Interpretation ("FIN") No. 48, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES -- AN INTERPRETATION OF FASB STATEMENT NO. 109 ("FIN 48"). FIN 48 clarifies the accounting for uncertainty in income tax recognized in a company's financial statements. FIN 48 requires companies to determine whether it is "more likely than not" that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. It also provides guidance on the recognition, measurement, and classification of income tax uncertainties, along with any related interest and penalties. Previously recorded income tax benefits that no longer meet this standard are required to be charged to earnings in the period that such determination is made. The adoption of FIN 48 had no impact on the financial statements of the Separate Account. FUTURE ADOPTION OF NEW ACCOUNTING PRONOUNCEMENT In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS ("SFAS 157"). SFAS 157 defines fair value, establishes a framework for measuring fair value under GAAP and requires enhanced disclosures about fair value measurements. SFAS 157 does not require additional fair value measurements. The pronouncement is effective for fiscal years beginning after November 15, 2007. The guidance in SFAS 157 will be applied prospectively with certain exceptions. The Company believes the adoption of SFAS 157 will have no material impact on the financial statements of the Separate Account. 3. EXPENSES AND RELATED PARTY TRANSACTIONS The following annual Separate Account charge is an asset-based charge and assessed through a daily reduction in unit values which is recorded as an expense in the accompanying statement of operations: MORTALITY AND EXPENSE RISK -- The mortality risk assumed by the Company is the risk that those insured may die sooner than anticipated and therefore, the Company will pay an aggregate amount of death benefits greater than anticipated. The expense risk assumed is where expenses incurred in issuing and administering the Contracts will exceed the amounts realized from the administrative charges assessed against the Contracts. In addition, the charge compensates the Company for the risk that the investor may live longer than estimated and the Company would be obligated to pay more in income payments than anticipated. ENHANCED STEPPED-UP PROVISION -- For an additional charge, the total death benefit payable may be increased based on the earnings in the Contracts. GUARANTEED MINIMUM WITHDRAWAL BENEFIT -- For an additional charge, the Company will guarantee the periodic return on the investment. The table below represents the effective annual rates for each respective charge for the year ended December 31, 2007: Mortality and Expense Risk 1.25% Enhanced Stepped-Up Provision 0.15% Guaranteed Minimum Withdrawal Benefit 0.40%
The above referenced charge may not necessarily correspond to the costs associated with providing the services or benefits indicated by the designation of the charge or associated with a particular contract. 58 A contract administrative charge of $15 is assessed on an annual basis for Contracts with a value of less than $60,000. In addition, most Contracts impose a surrender charge which ranges from 0% to 5% if the contract is partially or fully surrendered within the specified surrender charge period. Participants in the CHART asset allocation program enter into an agreement with MetLife Investment Fund Service, LLC ("MIFS"), an affiliate of the Company. Under this arrangement, MIFS provides asset allocation advice and charges participants an annual fee, plus a one-time set-up fee of $30. The maximum annual fee is 1% which decreases as a participant's assets increase. Effective November 9, 2007, the CHART allocation program was closed. Participants in the Managed Advisory Portfolio Program ("MAPP"), an asset allocation program, enter into an agreement with Tower Square Securities Inc. ("Tower Square"), an affiliate of the Company, which provides asset allocation advice and charges participants an annual fee. The annual fee is 0.80% which decreases as a participant's assets increase. Effective May 1, 2006, MAPP was closed to new plans. Effective July 1, 2006, MAPP was closed to new plan participants in plans in which MAPP was available. These charges are assessed through the redemption of units and are recorded as administrative and asset allocation charges in the accompanying statements of changes in net assets. Certain investments in the various portfolios, series or funds of the MIST and MSF Trusts hold shares which are managed by Met Investors Advisory, LLC and MetLife Advisers, LLC, respectively. Both act in the capacity of investment advisor and are indirect affiliates of the Company. 4. NET ASSETS HELD ON BEHALF OF AN AFFILIATE Approximately $22,859,000 and $25,670,000 of the net assets of the Separate Account were held on behalf of an affiliate of the Company as of December 31, 2007 and 2006, respectively. Transactions with this affiliate during the years ended December 31, 2007 and 2006, comprised of participant purchase payments of approximately $8,207,000 and $7,275,000, respectively, and contract surrenders of approximately $13,103,000 and $7,081,000, respectively. 59 5. STATEMENT OF INVESTMENTS
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ----------------------- ------------------------------ MARKET COST OF PROCEEDS SHARES VALUE ($) PURCHASES ($) FROM SALES ($) ---------- ----------- ------------- --------------- Dreyfus Stock Index Subaccount (Initial Shares) (Cost $0) (a) -- -- 2,340,812 480,530,191 Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (Cost $59,959,020) 1,471,727 47,595,644 10,130,506 10,441,813 Fidelity VIP Asset Manager(SM) Subaccount (Initial Class) (Cost $0) (a) -- -- 11,329,191 200,338,332 Fidelity VIP Contrafund Subaccount (Service Class 2) (Cost $95,957,144) 3,312,932 90,973,105 39,799,113 2,998,416 Fidelity VIP Equity-Income Subaccount (Initial Class) (Cost $315,102,981) 14,689,231 351,219,511 38,310,908 44,302,833 Fidelity VIP Growth Subaccount (Initial Class) (Cost $364,119,961) 10,909,137 492,220,282 5,185,604 68,248,153 Fidelity VIP High Income Subaccount (Initial Class) (Cost $38,673,342) 5,490,026 32,830,358 5,682,476 8,604,121 Fidelity VIP Mid Cap Subaccount (Service Class 2) (Cost $92,544,987) 3,226,261 114,951,678 19,476,165 5,335,505 FTVIP Templeton Global Asset Allocation Subaccount (Class 1) (Cost $0) (a) -- -- 3,065,025 201,693,018 FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (Cost $5,777,303) 286,314 6,559,461 2,909,723 1,113,864 FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (Cost $24,190,581) 2,007,961 32,127,371 11,042,894 3,965,142 FTVIPT Templeton Foreign Securities Subaccount (Class 2) (Cost $11,344,051) 683,324 13,837,307 4,468,115 1,483,887 Janus Aspen International Growth Subaccount (Service Shares) (Cost $57,456,054) 1,276,646 82,356,431 30,548,268 8,139,177 LMPVET Aggressive Growth Subaccount (Class I) (Cost $43,257,675) 3,599,913 58,714,582 1,288,752 9,277,367 LMPVET Appreciation Subaccount (Class I) (Cost $9,123,079) 392,902 10,356,884 1,939,000 1,425,002 LMPVET Fundamental Value Subaccount (Class I) (Cost $66,277,436) 3,136,755 68,036,209 32,995,079 7,996,707 LMPVET International All Cap Opportunity Subaccount (Cost $23,411,676) 2,334,502 20,893,791 11,447,589 4,239,160 LMPVET Investors Subaccount (Class I) (Cost $27,475,648) 1,688,837 27,899,590 24,862,990 3,764,286 LMPVET Large Cap Growth Subaccount (Class I) (Cost $11,579,873) 851,181 14,129,601 1,134,390 3,149,599 LMPVET Small Cap Growth Subaccount (Class I) (Cost $8,098,283) 597,934 8,986,946 2,256,061 1,365,906 LMPVET Social Awareness Subaccount (Cost $32,891,489) 1,435,721 35,778,161 6,817,911 4,216,095 LMPVPI All Cap Subaccount (Class I) (Cost $0) (a) -- -- 1,745,091 28,776,936 LMPVIT Adjustable Rate Income Subaccount (Cost $959,432) 95,422 909,375 297,588 369,107 LMPVPIII Large Cap Value Subaccount (Cost $0) (a) -- -- 464,405 25,416,945 MIST Batterymarch Growth and Income Subaccount (Class A) (Cost $407,561,965) 19,554,703 440,371,901 36,881,926 79,165,595 MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (Cost $50,081,959) 2,509,518 45,321,887 8,345,394 9,111,888 MIST BlackRock High Yield Subaccount (Class A) (Cost $40,216,318) (b) 4,800,207 39,553,703 46,178,887 5,893,251 MIST BlackRock Large-Cap Core Subaccount (Class E) (Cost $2,453,636) (b) 223,322 2,472,174 2,948,894 491,483
60
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ----------------------- ------------------------------ MARKET COST OF PROCEEDS SHARES VALUE ($) PURCHASES ($) FROM SALES ($) ---------- ----------- ------------- --------------- MIST BlackRock Large-Cap Core Subaccount (Class A) (Cost $0) (a) -- -- 320,167 2,301,664 MIST Cyclical Growth & Income EFT Subaccount (Cost $146,614,809) 14,264,425 167,321,702 2,474,205 17,419,078 MIST Cyclical Growth EFT Subaccount (Cost $174,760,270) 16,853,855 202,751,881 6,020,624 15,578,576 MIST Dreman Small-Cap Value Subaccount (Class A) (Cost $4,159,526) 304,071 4,126,247 3,129,394 991,825 MIST Harris Oakmark International Subaccount (Class A) (Cost $11,586,583) 624,575 10,786,403 9,156,774 2,706,736 MIST Janus Forty Subaccount (Class A) (Cost $533,724,511) 7,236,668 606,505,134 94,786,432 83,181,326 MIST Lazard Mid-Cap Subaccount (Class B) (Cost $1,805,013) (b) 133,825 1,619,281 2,213,792 398,610 MIST Legg Mason Partners Managed Assets Subaccount (Class A) (Cost $174,579,087) 10,325,117 177,179,012 21,262,080 26,941,287 MIST Loomis Sayles Global Markets Subaccount (Class A) (Cost $188,713,312) (b) 17,126,241 227,436,485 201,160,200 13,332,758 MIST Lord Abbett Bond Debenture Subaccount (Class A) (Cost $3,192,104) 257,903 3,257,319 2,544,634 720,628 MIST Lord Abbett Growth and Income Subaccount (Class B) (Cost $14,432,551) 526,803 15,113,985 3,164,438 2,907,211 MIST Met/AIM Capital Appreciation Subaccount (Class A) (Cost $1,130,417) 95,231 1,150,394 562,686 226,947 MIST Met/AIM Small Cap Growth Subaccount (Class A) (Cost $2,454,841) 169,800 2,523,228 2,047,374 395,615 MIST MFS Research International Subaccount (Class B) (Cost $8,399,529) (b) 614,379 8,797,910 9,920,575 1,548,289 MIST MFS Value Subaccount (Class A) (Cost $18,416,376) 1,310,007 19,702,499 7,445,678 1,805,921 MIST Neuberger Berman Real Estate Subaccount (Class A) (Cost $27,649,277) 1,767,235 24,882,671 8,993,982 10,342,526 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (Cost $2,764,888) (b) 266,950 2,925,774 3,378,340 624,015 MIST Pioneer Fund Subaccount (Class A) (Cost $13,847,662) 1,023,175 15,582,958 593,782 2,472,998 MIST Pioneer Mid-Cap Value Subaccount (Class A) (Cost $0) (a) -- -- 686,427 1,345,699 MIST Pioneer Strategic Income Subaccount (Class A) (Cost $10,514,817) 1,097,627 10,998,224 3,325,678 1,314,117 MIST Third Avenue Small Cap Value Subaccount (Class B) (Cost $81,610,724) 4,738,407 74,298,230 83,492,842 11,172,318 MetLife Investment Diversified Bond Subaccount (Class I) (Cost $0) (c) -- -- 27,112,054 370,169,242 MetLife Investment International Stock Subaccount (Class I) (Cost $0) (c) -- -- 25,391,448 260,823,021 MetLife Investment Large Company Stock Subaccount (Class I) (Cost $0) (c) -- -- 4,748,588 376,855,570 MetLife Investment Small Company Stock Subaccount (Class I) (Cost $0) (c) -- -- 31,197,517 217,269,630 MSF BlackRock Aggressive Growth Subaccount (Class D) (Cost $6,804,506) 277,203 7,944,651 1,417,608 1,273,019 MSF BlackRock Bond Income Subaccount (Class A) (Cost $71,230,543) 687,394 76,788,733 3,789,596 10,717,424
61
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ----------------------- ------------------------------ MARKET COST OF PROCEEDS SHARES VALUE ($) PURCHASES ($) FROM SALES ($) ---------- ----------- ------------- --------------- MSF BlackRock Diversified Subaccount (Class A) (Cost $170,080,831) (b) 9,491,127 172,548,686 192,373,771 22,360,473 MSF BlackRock Money Market Subaccount (Class A) (Cost $77,501,337) 775,013 77,501,337 36,780,569 26,720,700 MSF FI Large Cap Subaccount (Class A) (Cost $58,113,639) 3,938,860 57,743,689 4,620,558 11,504,407 MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) (Cost $92,668,688) (d) 8,572,418 94,039,430 94,902,358 2,246,193 MSF MetLife Aggressive Allocation Subaccount (Class B) (Cost $46,893,333) 3,721,558 46,928,845 45,645,788 704,758 MSF MetLife Conservative Allocation Subaccount (Class B) (Cost $3,692,912) 340,360 3,784,806 4,699,128 1,631,190 MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (Cost $45,321,935) 3,986,082 45,959,524 43,716,762 1,427,203 MSF MetLife Mid Cap Stock Index Subaccount (Class A) (Cost $5,677,819) 379,509 5,704,025 3,798,397 887,941 MSF MetLife Moderate Allocation Subaccount (Class B) (Cost $329,299,393) 27,757,307 331,977,390 321,740,672 5,100,162 MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (Cost $330,326,882) 26,816,131 331,983,700 322,382,293 3,828,206 MSF MetLife Stock Index Subaccount (Class A) (Cost $534,648,580) 14,425,636 533,748,527 568,745,212 37,643,167 MSF MFS Total Return Subaccount (Class F) (Cost $114,942,245) 792,875 121,666,608 12,452,090 9,523,398 MSF Morgan Stanley EAFE Index Subaccount (Class A) (Cost $84,237,939) (d) 4,838,476 83,173,404 86,213,113 1,951,316 MSF Oppenheimer Global Equity Subaccount (Class A) (Cost $293,958,079) 18,572,919 325,026,085 9,771,329 41,917,368 MSF Russell 2000 Index Subaccount (Class A) (Cost $99,319,345) (d) 6,964,818 98,761,115 101,675,112 2,333,275 MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (Cost $6,121,028) 414,025 6,790,013 2,625,393 1,034,087 MSF Western Asset Management High Yield Bond Subaccount (Class A) (Cost $0) (a) -- -- 6,172,939 47,398,263 MSF Western Asset Management Strategic Bond Opportunities Subaccount (Class A) (Cost $1,582,390) 129,146 1,642,732 909,400 744,675 MSF Western Asset Management U.S. Government Subaccount (Class A) (Cost $58,403,648) 4,947,307 61,791,865 4,506,387 8,651,620 PIMCO VIT Real Return Subaccount (Administrative Class) (Cost $0) (a) -- -- 413,984 2,073,646 PIMCO VIT Total Return Subaccount (Administrative Class) (Cost $19,079,718) 1,850,696 19,413,330 6,061,914 2,539,308 Putnam VT International Equity Subaccount (Class IB) (Cost $0) (a) -- -- 2,226,039 8,900,064 Putnam VT Small Cap Value Subaccount (Class IB) (Cost $0) (a) -- -- 10,595,766 83,033,985 Van Kampen LIT Comstock Subaccount (Class II) (Cost $10,203,452) 780,862 10,775,897 1,994,001 3,294,860
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 62 6. FINANCIAL HIGHLIGHTS The following table is a summary of unit values and units outstanding for the Contracts, net investment income ratios, and expense ratios, excluding expenses for the underlying portfolio, series, or fund for each of the five years in the period ended December 31, 2007:
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------- ------------- ---------- ------------- ---------------- ---------------- Dreyfus Stock Index 2007 -- 1.325 - 3.800 -- 0.42 1.25 - 1.65 5.24 - 5.43 Subaccount (Initial Shares) (a) 2006 126,362 1.259 - 3.605 454,157 1.66 1.25 - 1.65 10.36 - 14.05 2005 135,730 1.108 - 3.161 428,328 1.61 1.25 - 1.65 3.40 - 6.52 2004 143,469 1.077 - 3.057 438,544 1.81 1.25 0.56 - 9.30 2003 149,014 2.797 416,863 1.50 1.25 26.73 Dreyfus VIF Developing Leaders 2007 40,820 0.985 - 1.166 47,591 0.77 1.25 - 1.80 (12.54) - (11.97) Subaccount (Initial Shares) 2006 46,675 1.131 - 1.328 61,957 0.40 1.25 - 1.65 2.04 - 2.55 2005 50,330 1.108 - 1.295 65,195 -- 1.25 - 1.65 (0.88) - 9.41 2004 52,507 1.240 65,097 0.20 1.25 10.03 2003 50,883 1.127 57,369 0.03 1.25 29.99 Fidelity VIP Asset Manager(SM) 2007 -- 1.181 - 2.629 -- 3.10 1.25 - 1.65 4.70 - 4.85 Subaccount (Initial Class) (a) 2006 75,975 1.128 - 2.508 190,536 2.76 1.25 - 1.65 1.17 - 5.99 2005 86,165 1.069 - 2.367 203,901 2.80 1.25 2.78 - 2.79 2004 100,168 1.040 - 2.303 230,702 2.79 1.25 0.29 - 4.16 2003 112,404 2.211 248,544 3.66 1.25 16.49 Fidelity VIP Contrafund 2007 43,996 1.569 - 2.073 90,964 0.82 1.25 - 1.80 15.20 - 15.88 Subaccount (Service Class 2) 2006 36,076 1.362 - 1.790 64,399 1.06 1.25 - 1.80 9.49 - 10.09 2005 23,258 1.244 - 1.626 37,743 0.09 1.25 - 1.80 (0.96) - 18.67 2004 10,199 1.412 14,397 0.12 1.25 13.78 2003 3,102 1.241 3,851 -- 1.25 24.10 Fidelity VIP Equity-Income 2007 98,582 1.316 - 3.566 351,183 1.73 1.25 - 1.80 (0.23) - 0.30 Subaccount (Initial Class) 2006 108,591 1.319 - 3.557 385,940 3.33 1.25 - 1.80 17.98 - 18.72 2005 116,400 1.118 - 2.996 348,637 1.66 1.25 - 1.80 (0.53) - 10.53 2004 127,917 2.866 366,570 1.56 1.25 10.15 2003 136,245 2.602 354,471 1.82 1.25 28.75 Fidelity VIP Growth 2007 130,853 1.465 - 3.762 492,169 0.84 1.25 - 1.65 24.81 - 25.47 Subaccount (Initial Class) 2006 149,502 1.170 - 3.000 448,481 0.40 1.25 - 1.65 5.18 - 5.52 2005 168,219 1.111 - 2.843 478,246 0.52 1.25 - 1.65 4.48 - 7.18 2004 192,953 2.721 525,048 0.27 1.25 2.10 2003 212,463 2.665 566,276 0.27 1.25 31.22 Fidelity VIP High Income 2007 15,113 1.184 - 2.172 32,827 7.73 1.25 (0.59) - 1.50 Subaccount (Initial Class) 2006 17,511 2.140 37,472 7.54 1.25 9.86 2005 19,794 1.948 38,557 15.22 1.25 1.41 2004 22,537 1.921 43,285 8.28 1.25 8.29 2003 25,476 1.774 45,206 6.99 1.25 25.64 Fidelity VIP Mid Cap 2007 50,842 1.621 - 2.266 114,940 0.49 1.25 - 1.80 (0.31) - 13.93 Subaccount (Service Class 2) 2006 48,252 1.444 - 1.989 95,793 0.16 1.25 - 1.65 10.52 - 11.07 2005 39,654 1.303 - 1.792 70,958 -- 1.25 - 1.65 7.51 - 20.50 2004 27,002 1.537 41,510 -- 1.25 23.06 2003 14,087 1.249 17,590 0.22 1.25 36.50
63
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------- ------------- ---------- ------------- ---------------- ---------------- FTVIP Templeton Global Asset 2007 -- 1.442 - 4.301 -- -- 1.25 - 1.65 5.82 - 5.94 Allocation Subaccount (Class 1) (a) 2006 46,145 1.362 - 4.060 186,726 7.22 1.25 - 1.65 19.37 - 19.91 2005 47,260 1.138 - 3.386 159,772 3.93 1.25 - 1.65 2.57 - 5.18 2004 50,673 3.301 167,292 2.99 1.25 14.50 2003 53,977 2.883 155,637 2.79 1.25 30.63 FTVIPT Franklin Small-Mid Cap Growth 2007 5,502 1.192 - 1.345 6,559 -- 1.25 9.86 - 9.89 Securities Subaccount (Class 2) 2006 4,318 1.085 - 1.224 4,686 -- 1.25 7.32 - 7.37 2005 4,149 1.011 - 1.140 4,194 -- 1.25 3.48 - 7.04 2004 3,984 0.977 3,890 -- 1.25 10.15 2003 3,061 0.887 2,715 -- 1.25 35.63 FTVIPT Templeton Developing Markets 2007 12,909 2.216 - 2.490 32,124 2.14 1.25 - 1.80 3.89 - 27.19 Securities Subaccount (Class 2) 2006 10,824 1.758 - 1.958 21,177 1.11 1.25 - 1.65 26.02 - 26.51 2005 7,894 1.395 - 1.548 12,211 1.08 1.25 - 1.65 7.31 - 25.85 2004 846 1.230 1,041 0.17 1.25 23.00 FTVIPT Templeton Foreign Securities 2007 8,067 1.624 - 1.715 13,836 1.97 1.25 - 1.80 13.41 - 14.07 Subaccount (Class 2) 2006 6,601 1.432 - 1.505 9,930 1.24 1.25 - 1.80 8.86 - 20.02 2005 4,295 1.201 - 1.254 5,386 1.13 1.25 - 1.80 1.78 - 11.65 2004 1,035 1.153 1,193 0.05 1.25 15.30 Janus Aspen International Growth 2007 36,232 2.272 - 2.775 82,348 0.47 1.25 - 1.65 25.89 - 26.43 Subaccount (Service Shares) 2006 24,929 1.797 - 2.195 44,816 2.00 1.25 - 1.65 7.41 - 44.80 2005 10,024 1.241 - 1.516 12,441 1.22 1.25 30.36 - 33.92 2004 5,365 0.952 5,108 0.91 1.25 17.24 2003 3,558 0.812 2,890 1.10 1.25 32.90 LMPVET Aggressive Growth 2007 54,440 1.078 - 1.293 58,708 -- 1.25 - 1.65 (0.16) - 0.28 Subaccount (Class I) 2006 61,313 1.075 - 1.290 65,947 -- 1.25 - 1.65 6.95 - 7.41 2005 61,332 1.001 - 1.201 61,385 -- 1.25 - 1.65 10.24 - 19.50 2004 59,276 0.908 - 1.089 53,799 -- 1.25 1.02 - 8.61 2003 46,836 0.836 39,149 -- 1.25 32.91 LMPVET Appreciation 2007 7,407 1.321 - 1.399 10,356 1.06 1.25 - 1.40 6.88 - 7.12 Subaccount (Class I) 2006 7,627 1.236 - 1.306 9,960 1.19 1.25 - 1.40 13.19 - 13.37 2005 6,775 1.092 - 1.152 7,805 0.96 1.25 - 1.40 2.95 - 7.69 2004 5,139 1.119 5,749 1.41 1.25 7.49 2003 2,887 1.041 3,006 1.01 1.25 23.05 LMPVET Fundamental Value 2007 54,379 1.251 - 1.282 68,029 1.32 1.25 - 1.65 (0.39) - 0.16 Subaccount (Class I) 2006 38,043 1.251 - 1.281 47,587 1.65 1.25 - 1.65 7.52 - 15.41 2005 38,670 1.084 - 1.111 41,934 0.96 1.25 - 1.65 2.60 - 11.22 2004 38,937 1.048 40,803 0.72 1.25 6.83 2003 30,790 0.981 30,191 0.74 1.25 37.01 LMPVET International All Cap 2007 11,309 1.847 20,892 0.90 1.25 5.00 Opportunity Subaccount 2006 13,071 1.759 22,993 2.12 1.25 24.31 2005 14,134 1.415 20,004 1.36 1.25 10.29 2004 15,470 1.283 19,844 0.94 1.25 16.42 2003 16,482 1.102 18,163 1.10 1.25 25.94
64
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------- ------------- ---------- ------------- --------------- ----------------- LMPVET Investors 2007 22,308 1.250 - 1.349 27,897 1.55 1.25 2.54 - 2.59 Subaccount (Class I) 2006 6,512 1.219 - 1.315 7,936 1.64 1.25 16.76 - 16.79 2005 6,821 1.044 - 1.126 7,117 1.21 1.25 5.24 - 7.24 2004 6,899 0.992 6,843 1.60 1.25 9.01 2003 5,708 0.910 5,194 1.66 1.25 30.75 LMPVET Large Cap Growth 2007 12,980 1.088 - 1.221 14,128 0.04 1.25 - 1.65 3.59 - 3.99 Subaccount (Class I) 2006 14,672 1.047 - 1.175 15,355 0.15 1.25 - 1.65 3.07 - 5.41 2005 17,805 1.013 - 1.140 18,039 0.13 1.25 - 1.40 3.90 - 9.30 2004 19,869 0.975 19,371 0.36 1.25 (0.91) 2003 16,497 0.984 16,228 0.04 1.25 45.78 LMPVET Small Cap Growth 2007 6,845 1.312 - 1.464 8,986 -- 1.25 - 1.65 8.22 - 8.70 Subaccount (Class I) 2006 6,545 1.207 - 1.347 7,907 -- 1.25 - 1.65 10.88 - 11.35 2005 6,045 1.084 - 1.210 6,557 -- 1.25 - 1.65 2.64 - 15.51 2004 6,387 1.047 6,685 -- 1.25 13.68 2003 5,518 0.921 5,080 -- 1.25 47.12 LMPVET Social Awareness Subaccount 2007 11,332 1.334 - 3.166 35,774 1.35 1.25 9.51 - 9.52 2006 12,310 1.218 - 2.891 35,522 0.52 1.25 6.28 - 6.36 2005 13,263 1.146 - 2.718 36,023 0.71 1.25 3.07 - 3.15 2004 14,427 1.111 - 2.637 38,036 0.74 1.25 2.21 - 4.93 2003 15,328 2.513 38,519 0.55 1.25 27.24 LMPVPI All Cap Subaccount (Class I) (a) 2007 -- 1.293 - 1.352 -- 0.29 1.25 5.04 - 5.05 2006 21,951 1.231 - 1.287 27,024 1.34 1.25 16.68 2005 24,056 1.055 - 1.103 25,388 0.84 1.25 2.73 - 5.75 2004 26,498 1.027 27,217 0.56 1.25 6.98 2003 23,366 0.960 22,436 0.31 1.25 37.34 LMPVIT Adjustable Rate Income 2007 875 1.039 - 1.040 909 4.48 1.25 0.10 Subaccount 2006 975 1.038 - 1.039 1,012 5.35 1.25 2.77 2005 741 1.010 - 1.011 749 4.16 1.25 0.60 - 1.10 2004 320 0.999 320 1.60 1.25 (0.10) 2003 37 1.000 37 0.71 1.25 -- LMPVPIII Large Cap Value Subaccount (a) 2007 -- 2.624 -- 0.37 1.25 5.25 2006 9,530 2.493 23,760 1.22 1.25 16.77 2005 10,927 2.135 23,323 1.59 1.25 5.17 2004 12,122 2.030 24,602 1.89 1.25 9.26 2003 12,794 1.858 23,766 1.77 1.25 26.05 MIST Batterymarch Growth and Income 2007 18,278 1.345 - 25.333 440,329 0.87 1.00 - 1.65 6.07 - 6.77 Subaccount (Class A) 2006 21,299 1.268 - 23.727 482,879 -- 1.00 - 1.65 7.55 - 8.09 MIST Batterymarch Mid-Cap Stock 2007 22,849 1.341 - 1.984 45,317 0.31 1.25 - 1.40 4.57 - 4.71 Subaccount (Class A) 2006 26,053 1.282 - 1.895 49,337 -- 1.25 - 1.40 (4.68) - (4.50) MIST BlackRock High Yield Subaccount (Class A) (b) 2007 6,736 1.132 - 6.037 39,550 -- 1.14 - 1.54 (2.74) - (2.43) MIST BlackRock Large-Cap Core Subaccount (Class E) (b) 2007 1,844 1.321 - 1.341 2,472 -- 1.25 - 1.80 (0.23) - 0.15
65
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------- ------------- ---------- ------------- --------------- ---------------- MIST BlackRock Large-Cap Core 2007 -- 1.324 - 1.339 -- 0.72 1.25 - 1.80 4.75 - 5.02 Subaccount (Class A) (a) 2006 1,580 1.264 - 1.275 2,014 -- 1.25 - 1.80 5.77 - 6.07 MIST Cyclical Growth & Income EFT 2007 147,442 1.135 167,304 -- 1.25 4.13 Subaccount 2006 158,710 1.090 173,013 1.47 1.25 9.00 MIST Cyclical Growth EFT Subaccount 2007 175,301 1.156 202,731 -- 1.25 4.24 2006 181,207 1.109 200,905 1.09 1.25 10.90 MIST Dreman Small-Cap Value 2007 2,997 1.362 - 1.377 4,126 -- 1.25 - 1.65 (2.64) - (2.20) Subaccount (Class A) 2006 1,505 1.399 - 1.408 2,119 0.86 1.25 - 1.65 6.83 - 12.37 MIST Harris Oakmark International 2007 7,019 1.449 - 1.537 10,785 0.84 1.24 - 1.79 (9.44) - (2.04) Subaccount (Class A) 2006 3,604 1.493 - 1.569 5,655 -- 1.21 - 1.61 10.18 - 10.47 MIST Janus Forty Subaccount (Class A) 2007 71,472 1.716 - 8.811 606,442 0.17 1.25 - 1.80 15.95 - 28.83 2006 81,897 1.344 - 6.839 539,915 -- 1.25 - 1.65 2.48 - 2.77 MIST Lazard Mid-Cap Subaccount (Class B) (b) 2007 1,471 1.096 - 1.100 1,619 -- 1.25 - 1.40 (12.25) - (12.21) MIST Legg Mason Partners Managed Assets 2007 27,862 1.228 - 6.834 177,161 2.45 1.25 - 1.65 4.58 - 5.05 Subaccount (Class A) 2006 31,625 1.174 - 6.508 191,830 -- 1.25 - 1.65 5.65 - 5.97 MIST Loomis Sayles Global Markets Subaccount (Class A) (b) 2007 44,358 1.725 - 5.148 227,413 -- 1.25 - 1.65 19.39 - 19.74 MIST Lord Abbett Bond Debenture 2007 2,662 1.211 - 1.224 3,257 4.65 1.25 - 1.65 5.03 - 5.52 Subaccount (Class A) 2006 1,214 1.153 - 1.160 1,408 -- 1.25 - 1.65 4.63 - 5.07 MIST Lord Abbett Growth and Income 2007 13,682 1.094 - 1.105 15,112 0.89 1.25 - 1.80 1.86 - 2.50 Subaccount (Class B) 2006 14,016 1.074 - 1.078 15,114 -- 1.25 - 1.80 7.29 - 7.69 MIST Met/AIM Capital Appreciation 2007 862 1.321 - 1.335 1,150 0.08 1.25 - 1.65 10.08 - 10.51 Subaccount (Class A) 2006 596 1.200 - 1.208 720 0.21 1.25 - 1.65 (1.23) - (0.98) MIST Met/AIM Small Cap Growth 2007 1,734 1.455 2,523 -- 1.25 10.06 Subaccount (Class A) 2006 606 1.322 802 -- 1.25 (0.53) MIST MFS Research International Subaccount (Class B) (b) 2007 5,456 1.612 8,797 -- 1.25 4.68 MIST MFS Value Subaccount (Class A) 2007 13,099 1.432 - 1.504 19,700 -- 1.25 - 1.65 5.84 - 6.31 2006 9,368 1.353 - 1.415 13,255 1.55 1.25 - 1.65 10.42 - 10.76 MIST Neuberger Berman Real Estate 2007 24,178 1.022 - 1.029 24,880 1.17 1.25 - 1.65 (16.23) - (15.86) Subaccount (Class A) 2006 28,569 1.220 - 1.223 34,938 -- 1.25 - 1.65 21.64 - 21.93 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (b) 2007 2,711 1.075 - 1.079 2,925 -- 1.25 - 1.40 6.44 - 6.52 MIST Pioneer Fund Subaccount (Class A) 2007 7,484 1.352 - 2.083 15,581 0.89 1.25 3.68 2006 8,347 1.304 - 2.009 16,763 -- 1.25 7.77 - 7.78
66
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------- ------------- ---------- ------------- --------------- ---------------- MIST Pioneer Mid-Cap Value 2007 -- 1.249 - 1.253 -- 0.50 1.25 - 1.40 10.43 - 10.49 Subaccount (Class A) (a) 2006 643 1.131 - 1.134 729 0.26 1.25 - 1.40 5.41 - 5.49 MIST Pioneer Strategic Income 2007 6,640 1.174 - 1.663 10,997 0.65 1.25 - 1.40 5.20 - 5.32 Subaccount (Class A) 2006 5,356 1.116 - 1.579 8,426 5.46 1.25 - 1.40 3.72 - 3.88 MIST Third Avenue Small Cap Value 2007 43,382 1.227 - 1.716 74,291 0.19 1.25 - 1.65 (10.04) - (4.24) Subaccount (Class B) 2006 5,548 1.298 - 1.792 9,934 -- 1.25 2.12 - 2.17 MetLife Investment Diversified Bond 2007 -- 1.076 - 2.035 -- 4.94 1.25 - 1.40 3.16 - 3.25 Subaccount (Class I) (c) 2006 175,504 1.043 - 1.972 345,416 4.06 1.25 - 1.40 2.86 - 3.05 2005 181,335 1.014 - 1.914 346,717 3.28 1.25 - 1.40 0.79 - 2.11 2004 185,980 1.008 - 1.899 353,096 3.36 1.25 0.20 - 3.38 2003 181,300 1.837 333,057 4.03 1.25 4.26 MetLife Investment International Stock 2007 -- 1.706 - 2.827 -- 2.57 1.25 - 1.40 7.16 - 7.33 Subaccount (Class I) (c) 2006 91,641 1.592 - 2.634 241,113 1.80 1.25 - 1.40 24.76 - 24.96 2005 109,499 1.276 - 2.108 230,668 1.31 1.25 - 1.40 13.20 - 13.83 2004 120,929 1.129 - 1.862 225,110 1.34 1.25 (0.18) - 13.47 2003 133,441 1.641 219,019 0.78 1.25 28.40 MetLife Investment Large Company Stock 2007 -- 1.325 - 2.157 -- 1.12 1.25 - 1.40 4.33 - 4.47 Subaccount (Class I) (c) 2006 172,829 1.270 - 2.065 356,576 0.95 1.25 - 1.40 11.01 - 11.17 2005 186,965 1.144 - 1.858 347,116 1.11 1.25 - 1.40 5.33 - 10.96 2004 199,733 1.088 - 1.763 352,169 0.83 1.25 (0.09) - 8.69 2003 208,253 1.622 337,893 0.70 1.25 26.52 MetLife Investment Small Company Stock 2007 -- 1.319 - 2.939 -- 0.26 1.25 - 1.65 (0.45) - (0.07) Subaccount (Class I) (c) 2006 72,655 1.322 - 2.941 213,395 0.13 1.25 - 1.65 11.77 - 12.25 2005 81,647 1.180 - 2.620 213,780 0.11 1.25 - 1.65 5.90 - 16.26 2004 89,122 1.128 - 2.474 220,449 0.11 1.25 (0.27) - 13.54 2003 98,738 2.179 215,162 0.13 1.25 41.31 MSF BlackRock Aggressive Growth 2007 10,582 0.750 - 1.418 7,944 -- 1.25 - 1.65 18.42 - 18.96 Subaccount (Class D) 2006 10,316 0.631 - 1.192 6,512 -- 1.25 - 1.65 (2.40) - (2.17) MSF BlackRock Bond Income 2007 69,927 1.094 - 1.101 76,782 3.29 0.88 - 1.28 3.60 - 5.36 Subaccount (Class A) 2006 78,084 1.044 - 1.045 81,518 -- 0.88 - 1.13 4.30 - 4.40 MSF BlackRock Diversified Subaccount (Class A) (b) 2007 65,246 1.185 - 2.645 172,531 -- 1.25 - 1.65 0.34 - 0.61 MSF BlackRock Money Market 2007 72,731 1.063 - 1.070 77,494 4.94 0.90 - 1.30 3.71 - 4.09 Subaccount (Class A) 2006 65,692 1.025 - 1.028 67,387 3.29 0.90 - 1.30 2.50 - 2.80 MSF FI Large Cap 2007 49,679 1.162 57,738 0.16 1.25 2.65 Subaccount (Class A) 2006 58,724 1.132 66,486 -- 1.25 1.62 MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) (d) 2007 45,703 1.090 - 2.062 94,030 -- 1.25 - 1.40 1.30 - 1.33 MSF MetLife Aggressive Allocation 2007 40,937 1.146 46,924 0.02 1.25 1.96 Subaccount (Class B) 2006 1,825 1.124 2,051 0.19 1.25 5.44 - 12.40
67
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------- ------------- ---------- ------------- --------------- ---------------- MSF MetLife Conservative Allocation 2007 3,454 1.096 3,784 -- 1.25 3.59 - 4.28 Subaccount (Class B) 2006 590 1.051 620 1.69 1.25 5.10 MSF MetLife Conservative to Moderate 2007 41,710 1.099 - 1.102 45,955 -- 1.25 - 1.40 0.55 - 3.57 Allocation Subaccount (Class B) 2006 2,953 1.064 3,144 0.23 1.25 4.62 - 6.40 MSF MetLife Mid Cap Stock Index 2007 5,334 1.069 5,703 0.72 1.25 6.37 Subaccount (Class A) 2006 2,799 1.005 2,812 -- 1.25 0.10 MSF MetLife Moderate Allocation 2007 299,458 1.100 - 1.108 331,943 -- 1.25 - 1.65 2.41 - 2.97 Subaccount (Class B) 2006 12,224 1.072 - 1.076 13,149 0.23 1.25 - 1.65 5.40 - 9.95 MSF MetLife Moderate to Aggressive 2007 293,190 1.120 - 1.132 331,949 0.01 1.25 - 1.80 (2.69) - 2.54 Allocation Subaccount (Class B) 2006 11,222 1.104 12,389 0.24 1.25 9.52 - 10.40 MSF MetLife Stock Index 2007 472,993 1.121 - 1.128 533,694 0.02 1.23 - 1.63 (1.67) - 3.87 Subaccount (Class A) 2006 3,216 1.086 3,491 -- 1.25 8.49 MSF MFS Total Return 2007 43,297 1.211 - 2.846 121,654 1.96 1.25 - 1.65 2.45 - 2.93 Subaccount (Class F) 2006 43,900 1.181 - 2.767 120,203 -- 1.25 - 1.65 6.78 - 7.16 MSF Morgan Stanley EAFE Index Subaccount (Class A) (d) 2007 29,876 1.681 - 2.786 83,165 -- 1.25 - 1.40 (1.47) - (1.40) MSF Oppenheimer Global Equity 2007 292,950 1.102 - 1.109 324,992 1.13 1.25 - 1.65 4.75 - 5.12 Subaccount (Class A) 2006 326,130 1.052 - 1.055 343,999 -- 1.24 - 1.64 5.62 - 5.92 MSF Russell 2000 Index Subaccount (Class A) (d) 2007 33,899 1.309 - 2.917 98,751 -- 1.25 - 1.65 (0.76) - (0.75) MSF T. Rowe Price Large Cap Growth 2007 5,879 1.152 - 1.155 6,789 0.18 1.25 - 1.40 7.66 - 7.84 Subaccount (Class B) 2006 4,466 1.070 - 1.071 4,784 -- 1.25 - 1.40 7.21 - 7.31 MSF Western Asset Management High 2007 -- 1.163 - 6.188 -- 10.09 1.25 - 1.65 3.82 - 3.96 Yield Bond Subaccount (Class A) (a) 2006 7,594 1.120 - 5.954 44,211 -- 1.25 - 1.65 6.16 - 6.49 MSF Western Asset Management Strategic Bond Opportunities Subaccount 2007 794 2.068 1,643 2.51 1.25 2.73 (Class A) 2006 723 2.013 1,455 -- 1.25 4.46 MSF Western Asset Management U.S. 2007 27,178 1.068 - 2.276 61,786 2.74 1.10 - 1.25 2.99 - 3.22 Government Subaccount (Class A) 2006 29,494 1.037 - 2.205 64,980 -- 1.10 - 1.25 3.68 - 3.77 PIMCO VIT Real Return 2007 -- 1.009 - 1.013 -- 1.56 1.25 - 1.40 2.02 - 2.22 Subaccount (Administrative Class) (a) 2006 1,658 0.989 - 0.991 1,644 4.30 1.25 - 1.40 (0.70) - (0.60) 2005 970 0.996 - 0.997 967 2.14 1.25 - 1.40 (1.29) - (0.30) PIMCO VIT Total Return 2007 16,639 1.109 - 1.167 19,411 4.80 1.25 - 1.65 6.92 - 7.44 Subaccount (Administrative Class) 2006 14,025 1.037 - 1.087 15,237 4.43 1.25 - 1.65 2.16 - 2.55 2005 10,806 1.015 - 1.060 11,449 3.52 1.25 - 1.65 0.30 - 1.50 2004 5,879 1.047 6,158 1.91 1.25 3.56 2003 2,400 1.011 2,427 1.66 1.25 1.10
68
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------- ------------------------------------------------ UNIT VALUE(1) INVESTMENT(2) EXPENSE RATIO(3) TOTAL RETURN(4) UNITS LOWEST TO NET ASSETS INCOME LOWEST TO LOWEST TO (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------- ------------- ---------- ------------- --------------- ---------------- Putnam VT International Equity 2007 -- 1.540 -- 2.89 1.25 8.37 Subaccount (Class IB) (a) 2006 5,055 1.421 7,182 0.55 1.25 26.20 2005 4,078 1.126 4,593 1.43 1.25 10.83 2004 3,869 1.016 3,932 1.36 1.25 14.67 2003 3,592 0.886 3,182 0.77 1.25 26.93 Putnam VT Small Cap Value 2007 -- 1.476 - 2.121 -- 0.55 1.25 - 1.65 6.78 - 6.93 Subaccount (Class IB) (a) 2006 38,305 1.381 - 1.984 75,834 0.31 1.25 - 1.65 15.39 - 15.82 2005 36,661 1.194 - 1.713 62,705 0.17 1.25 - 1.65 5.74 - 14.37 2004 33,662 1.620 54,536 0.33 1.25 24.62 2003 27,307 1.300 35,491 0.32 1.25 47.90 Van Kampen LIT Comstock 2007 6,549 1.208 - 1.652 10,775 1.61 1.25 - 1.80 (7.57) - (3.50) Subaccount (Class II) 2006 7,478 1.264 - 1.712 12,769 1.25 1.25 - 1.65 10.88 - 14.59 2005 7,330 1.126 - 1.494 10,925 0.72 1.25 - 1.65 0.90 - 4.14 2004 3,260 1.453 4,737 0.63 1.25 15.96 2003 1,507 1.253 1,888 -- 1.25 25.30
(1) The Company sells a number of variable annuity products which have unique combinations of features and fees that are charged against the contract owner's account balance. Differences in the fee structures result in a variety of unit values, expense ratios, and total returns. (2) These amounts represent the dividends, excluding distributions of capital gains, received by the Subaccount from the underlying portfolio, series, or fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense risk charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The investment income ratio is calculated for each period indicated or from the effective date through the end of the reporting period. The recognition of investment income by the Subaccount is affected by the timing of the declaration of dividends by the underlying portfolio, series, or fund in which the Subaccount invests. (3) These amounts represent the annualized contract expenses of the Separate Account, consisting primarily of mortality and expense risk charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying portfolio, series, or fund have been excluded. (4) These amounts represent the total return for the period indicated, including changes in the value of the underlying portfolio, series, or fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract total returns are not within the ranges presented. (a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 69 7. SCHEDULES OF ACCUMULATION AND ANNUITY UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
DREYFUS STOCK INDEX DREYFUS VIF DEVELOPING LEADERS FIDELITY VIP ASSET MANAGER(SM) SUBACCOUNT SUBACCOUNT SUBACCOUNT (INITIAL SHARES) (INITIAL SHARES) (INITIAL CLASS) ------------------------- ------------------------------ ------------------------------ 2007 (a) 2006 2007 2006 2007 (a) 2006 ------------ ----------- -------------- -------------- ----------- ----------- Accumulation and annuity units beginning of year 126,361,653 135,729,790 46,675,056 50,330,246 75,974,688 86,165,488 Accumulation units issued and transferred from other funding options 4,274,068 13,732,591 6,561,305 8,918,812 1,009,657 3,710,451 Accumulation units redeemed and transferred to other funding options (130,616,241) (23,093,318) (12,414,216) (12,572,214) (76,859,739) (13,890,537) Annuity units (19,480) (7,410) (2,139) (1,788) (124,606) (10,714) ------------ ----------- ----------- ----------- ----------- ----------- Accumulation and annuity units end of year -- 126,361,653 40,820,006 46,675,056 -- 75,974,688 ============ =========== =========== =========== =========== ===========
FTVIP TEMPLETON GLOBAL ASSET FIDELITY VIP HIGH INCOME FIDELITY VIP MID CAP ALLOCATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (INITIAL CLASS) (SERVICE CLASS 2) (CLASS 1) ------------------------ ------------------------ ---------------------------- 2007 2006 2007 2006 2007 (a) 2006 ---------- ---------- ----------- ----------- ----------- ---------- Accumulation and annuity units beginning of year 17,511,349 19,793,518 48,251,841 39,654,245 46,145,215 47,260,191 Accumulation units issued and transferred from other funding options 2,354,621 2,591,849 12,893,360 19,904,744 2,632,362 6,741,957 Accumulation units redeemed and transferred to other funding options (4,751,669) (4,864,714) (10,299,615) (11,276,587) (48,704,144) (7,832,221) Annuity units (1,525) (9,304) (4,005) (30,561) (73,433) (24,712) ---------- ---------- ----------- ----------- ----------- ---------- Accumulation and annuity units end of year 15,112,776 17,511,349 50,841,581 48,251,841 -- 46,145,215 ========== ========== =========== =========== =========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 70
FIDELITY VIP CONTRAFUND FIDELITY VIP EQUITY-INCOME FIDELITY VIP GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE CLASS 2) (INITIAL CLASS) (INITIAL CLASS) ----------------------- -------------------------- ------------------------ 2007 2006 2007 2006 2007 2006 ---------- ---------- ----------- ----------- ----------- ----------- Accumulation and annuity units beginning of year 36,075,581 23,258,376 108,590,707 116,400,334 149,502,010 168,219,238 Accumulation units issued and transferred from other funding options 16,470,879 19,126,440 9,013,907 10,076,515 7,828,783 9,944,784 Accumulation units redeemed and transferred to other funding options (8,549,294) (6,309,364) (19,002,423) (17,866,985) (26,465,317) (28,650,086) Annuity units (1,497) 129 (20,165) (19,157) (12,903) (11,926) ---------- ---------- ----------- ----------- ----------- ----------- Accumulation and annuity units end of year 43,995,669 36,075,581 98,582,026 108,590,707 130,852,573 149,502,010 ========== ========== =========== =========== =========== ===========
FTVIPT FRANKLIN SMALL-MID CAP FTVIPT TEMPLETON DEVELOPING FTVIPT TEMPLETON FOREIGN GROWTH SECURITIES MARKETS SECURITIES SECURITIES SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS 2) (CLASS 2) (CLASS 2) ----------------------------- --------------------------- ------------------------ 2007 2006 2007 2006 2007 2006 ---------- ---------- ---------- ---------- ---------- ---------- Accumulation and annuity units beginning of year 4,318,204 4,149,035 10,823,743 7,893,712 6,601,435 4,294,732 Accumulation units issued and transferred from other funding options 2,631,500 1,483,430 6,452,543 8,646,074 3,588,989 3,676,211 Accumulation units redeemed and transferred to other funding options (1,448,048) (1,314,261) (4,367,101) (5,716,043) (2,123,565) (1,369,508) Annuity units -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Accumulation and annuity units end of year 5,501,656 4,318,204 12,909,185 10,823,743 8,066,859 6,601,435 ========== ========== ========== ========== ========== ==========
71 FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
JANUS ASPEN INTERNATIONAL GROWTH LMPVET AGGRESSIVE GROWTH LMPVET APPRECIATION SUBACCOUNT SUBACCOUNT SUBACCOUNT (SERVICE SHARES) (CLASS I) (CLASS I) -------------------------------- ------------------------ ---------------------- 2007 2006 2007 2006 2007 2006 ----------- ------------------- ----------- ----------- ---------- ---------- Accumulation and annuity units beginning of year 24,929,308 10,023,661 61,313,316 61,331,748 7,627,148 6,775,400 Accumulation units issued and transferred from other funding options 23,331,300 22,068,100 7,563,346 12,115,453 1,368,922 2,114,653 Accumulation units redeemed and transferred to other funding options (12,025,321) (7,149,920) (14,434,664) (12,135,224) (1,589,488) (1,262,905) Annuity units (3,215) (12,533) (2,389) 1,339 -- -- ----------- ---------- ----------- ----------- ---------- ---------- Accumulation and annuity units end of year 36,232,072 24,929,308 54,439,609 61,313,316 7,406,582 7,627,148 =========== ========== =========== =========== ========== ==========
LMPVET LARGE CAP GROWTH LMPVET SMALL CAP GROWTH SUBACCOUNT SUBACCOUNT LMPVET SOCIAL AWARENESS (CLASS I) (CLASS I) SUBACCOUNT ----------------------- ----------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---------- ----------- ---------- ----------- ---------- ----------- Accumulation and annuity units beginning of year 14,672,169 17,805,285 6,544,956 6,045,011 12,310,000 13,263,201 Accumulation units issued and transferred from other funding options 2,746,768 3,422,001 2,047,281 2,860,387 925,226 1,082,345 Accumulation units redeemed and transferred to other funding options (4,436,902) (6,553,889) (1,746,815) (2,360,442) (1,903,560) (2,035,546) Annuity units (1,656) (1,228) -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Accumulation and annuity units end of year 12,980,379 14,672,169 6,845,422 6,544,956 11,331,666 12,310,000 ========== ========== ========== ========== ========== ==========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 72
LMPVET FUNDAMENTAL VALUE LMPVET INTERNATIONAL ALL CAP LMPVET INVESTORS SUBACCOUNT OPPORTUNITY SUBACCOUNT (CLASS I) SUBACCOUNT (CLASS I) ------------------------ ---------------------------- ---------------------- 2007 2006 2007 2006 2007 2006 ----------- ----------- ---------- ---------------- ---------- ---------- Accumulation and annuity units beginning of year 38,042,598 38,669,511 13,071,034 14,134,259 6,511,514 6,820,564 Accumulation units issued and transferred from other funding options 27,367,444 6,958,150 1,231,805 2,071,131 19,567,883 1,007,565 Accumulation units redeemed and transferred to other funding options (11,028,806) (7,586,615) (2,994,149) (3,134,356) (3,770,507) (1,316,615) Annuity units (2,256) 1,552 -- -- (973) -- ----------- ---------- ---------- ---------- ---------- ---------- Accumulation and annuity units end of year 54,378,980 38,042,598 11,308,690 13,071,034 22,307,917 6,511,514 =========== ========== ========== ========== ========== ==========
LMPVPI ALL CAP SUBACCOUNT LMPVIT ADJUSTABLE RATE INCOME LMPVPIII LARGE CAP VALUE (CLASS I) SUBACCOUNT SUBACCOUNT ----------------------- ----------------------------- ------------------------ 2007 (a) 2006 2007 2006 2007 (a) 2006 ----------- ---------- -------- ------------------- ---------- ------------ Accumulation and annuity units beginning of year 21,950,836 24,055,624 974,537 741,457 9,530,131 10,926,641 Accumulation units issued and transferred from other funding options 971,298 3,297,245 274,271 605,311 344,643 733,470 Accumulation units redeemed and transferred to other funding options (22,922,134) (5,402,033) (373,803) (372,231) (9,874,523) (2,130,288) Annuity units -- -- -- -- (251) 308 ----------- ---------- -------- -------- ---------- ---------- Accumulation and annuity units end of year -- 21,950,836 875,005 974,537 -- 9,530,131 =========== ========== ======== ======== ========== ==========
73 FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST BATTERYMARCH MIST BATTERYMARCH GROWTH AND INCOME MID-CAP STOCK MIST BLACKROCK HIGH YIELD SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) ---------------------- ---------------------- ------------------------- 2007 2006 2007 2006 2007 (b) 2006 ---------- ---------- ---------- ---------- ---------- ---- Accumulation and annuity units beginning of year 21,299,043 -- 26,052,639 -- -- -- Accumulation units issued and transferred from other funding options 642,556 23,704,853 3,336,094 32,092,154 8,115,003 -- Accumulation units redeemed and transferred to other funding options (3,656,989) (2,613,946) (6,539,258) (6,044,252) (1,378,477) -- Annuity units (7,003) 208,136 (317) 4,737 (887) -- ---------- ---------- ---------- ---------- --------- --- Accumulation and annuity units end of year 18,277,607 21,299,043 22,849,158 26,052,639 6,735,639 -- ========== ========== ========== ========== ========= ===
MIST HARRIS OAKMARK MIST DREMAN SMALL-CAP VALUE INTERNATIONAL MIST CYCLICAL GROWTH EFT SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) ------------------------ --------------------------- --------------------- 2007 2006 2007 2006 2007 2006 ----------- ----------- ---------- --------- ---------- --------- Accumulation and annuity units beginning of year 181,206,750 -- 1,505,096 -- 3,604,457 -- Accumulation units issued and transferred from other funding options 20,969,866 205,396,351 2,729,733 1,829,152 6,640,046 4,035,144 Accumulation units redeemed and transferred to other funding options (26,875,351) (24,189,601) (1,238,251) (324,056) (3,225,013) (430,687) Annuity units -- -- -- -- -- -- ----------- ----------- ---------- --------- ---------- --------- Accumulation and annuity units end of year 175,301,265 181,206,750 2,996,578 1,505,096 7,019,490 3,604,457 =========== =========== ========== ========= ========== =========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 74
MIST BLACKROCK LARGE-CAP CORE MIST BLACKROCK LARGE-CAP CORE MIST CYCLICAL SUBACCOUNT SUBACCOUNT GROWTH & INCOME EFT (CLASS E) (CLASS A) SUBACCOUNT ----------------------------- ----------------------------- ------------------------ 2007 (b) 2006 2007 (a) 2006 2007 2006 --------- ---- ---------- --------- ----------- ----------- Accumulation and annuity units beginning of year -- -- 1,579,557 -- 158,709,583 -- Accumulation units issued and transferred from other funding options 2,307,237 -- 189,132 2,106,071 11,817,500 180,568,111 Accumulation units redeemed and transferred to other funding options (463,424) -- (1,768,689) (526,514) (23,085,482) (21,858,528) Annuity units -- -- -- -- -- -- --------- --- ---------- --------- ----------- ----------- Accumulation and annuity units end of year 1,843,813 -- -- 1,579,557 147,441,601 158,709,583 ========= === ========== ========= =========== ===========
MIST LEGG MASON PARTNERS MIST JANUS FORTY MIST LAZARD MID-CAP MANAGED ASSETS SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS A) ------------------------ ------------------- ------------------------ 2007 2006 2007 (b) 2006 2007 2006 ----------- ----------- --------- ---- ---------- ---------- Accumulation and annuity units beginning of year 81,896,826 -- -- -- 31,625,266 -- Accumulation units issued and transferred from other funding options 5,499,099 93,665,917 1,881,818 -- 1,378,918 35,210,176 Accumulation units redeemed and transferred to other funding options (15,910,381) (11,847,104) (410,491) -- (5,135,422) (3,689,455) Annuity units (13,129) 78,013 -- -- (6,931) 104,545 ----------- ----------- --------- --- ---------- ---------- Accumulation and annuity units end of year 71,472,415 81,896,826 1,471,327 -- 27,861,831 31,625,266 =========== =========== ========= === ========== ==========
75 FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST LOOMIS SAYLES GLOBAL MIST LORD ABBETT BOND MIST LORD ABBETT MARKETS DEBENTURE GROWTH AND INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS B) ------------------------- --------------------- ---------------------- 2007 (b) 2006 2007 2006 2007 2006 ---------- ---- --------- --------- ---------- ---------- Accumulation and annuity units beginning of year -- -- 1,214,316 -- 14,015,764 -- Accumulation units issued and transferred from other funding options 50,282,804 -- 2,235,097 1,584,522 3,844,209 16,291,570 Accumulation units redeemed and transferred to other funding options (5,993,689) -- (787,493) (370,206) (4,178,143) (2,275,806) Annuity units 69,049 -- -- -- -- -- ---------- --- --------- --------- ---------- ---------- Accumulation and annuity units end of year 44,358,164 -- 2,661,920 1,214,316 13,681,830 14,015,764 ========== === ========= ========= ========== ==========
MIST NEUBERGER BERMAN MIST PIMCO MIST MFS VALUE REAL ESTATE INFLATION PROTECTED BOND SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) ---------------------- ----------------------- ------------------------ 2007 2006 2007 2006 2007 (b) 2006 ---------- ---------- ----------- ---------- --------- ---- Accumulation and annuity units beginning of year 9,368,434 -- 28,569,036 -- -- -- Accumulation units issued and transferred from other funding options 6,823,403 10,379,399 10,719,854 33,291,685 3,484,013 -- Accumulation units redeemed and transferred to other funding options (3,093,007) (1,010,965) (15,110,872) (4,722,649) (772,837) -- Annuity units -- -- -- -- -- -- ---------- ---------- ----------- ---------- --------- --- Accumulation and annuity units end of year 13,098,830 9,368,434 24,178,018 28,569,036 2,711,176 -- ========== ========== =========== ========== ========= ===
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 76
MIST MET/AIM CAPITAL MIST MET/AIM SMALL CAP MIST MFS RESEARCH APPRECIATION GROWTH INTERNATIONAL SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS B) -------------------- ---------------------- ----------------- 2007 2006 2007 2006 2007 (b) 2006 -------- ------- --------- -------- ---------- ---- Accumulation and annuity units beginning of year 596,091 -- 606,319 -- -- -- Accumulation units issued and transferred from other funding options 475,937 674,535 1,623,007 963,433 6,844,262 -- Accumulation units redeemed and transferred to other funding options (210,320) (78,444) (495,004) (357,114) (1,388,388) -- Annuity units -- -- -- -- -- -- -------- ------- --------- -------- ---------- --- Accumulation and annuity units end of year 861,708 596,091 1,734,322 606,319 5,455,874 -- ======== ======= ========= ======== ========== ===
MIST PIONEER FUND MIST PIONEER MID-CAP VALUE MIST PIONEER STRATEGIC INCOME SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) ---------------------- -------------------------- ----------------------------- 2007 2006 2007 (a) 2006 2007 2006 ---------- ---------- ---------- --------- ---------- --------- Accumulation and annuity units beginning of year 8,347,427 -- 643,271 -- 5,355,790 -- Accumulation units issued and transferred from other funding options 635,485 9,787,328 498,965 1,084,272 2,945,296 6,057,698 Accumulation units redeemed and transferred to other funding options (1,498,592) (1,445,932) (1,142,236) (441,001) (1,661,177) (701,908) Annuity units (749) 6,031 -- -- -- -- ---------- ---------- ---------- --------- ---------- --------- Accumulation and annuity units end of year 7,483,571 8,347,427 -- 643,271 6,639,909 5,355,790 ========== ========== ========== ========= =========== =========
77 FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST THIRD AVENUE METLIFE INVESTMENT METLIFE INVESTMENT SMALL CAP VALUE DIVERSIFIED BOND INTERNATIONAL STOCK SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS I) (CLASS I) ----------------------- ------------------------- ------------------------ 2007 2006 2007 (c) 2006 2007 (c) 2006 ----------- ---------- ------------ ----------- ----------- ----------- Accumulation and annuity units beginning of year 5,547,628 -- 175,504,071 181,334,511 91,640,960 109,498,566 Accumulation units issued and transferred from other funding options 48,344,671 5,684,498 18,432,704 29,144,046 5,837,739 10,277,595 Accumulation units redeemed and transferred to other funding options (10,530,231) (136,870) (193,918,162) (34,957,398) (97,469,867) (28,126,866) Annuity units 19,515 -- (18,613) (17,088) (8,832) (8,335) ----------- --------- ------------ ----------- ----------- ----------- Accumulation and annuity units end of year 43,381,583 5,547,628 -- 175,504,071 -- 91,640,960 =========== ========= ============ =========== =========== ===========
MSF BLACKROCK BOND INCOME MSF BLACKROCK DIVERSIFIED MSF BLACKROCK MONEY MARKET SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (CLASS A) -------------------------- ------------------------- -------------------------- 2007 2006 2007 (b) 2006 2007 2006 ------------ ------------ ----------- ------------ ------------- ----------- Accumulation and annuity units beginning of year 78,084,119 -- -- -- 65,692,166 -- Accumulation units issued and transferred from other funding options 5,478,465 88,829,064 74,686,263 -- 55,885,552 98,302,722 Accumulation units redeemed and transferred to other funding options (13,609,707) (10,609,429) (9,555,511) -- (48,799,560) (32,442,443) Annuity units (26,293) (135,516) 115,563 -- (47,029) (168,113) ----------- ----------- ---------- --- ----------- ----------- Accumulation and annuity units end of year 69,926,584 78,084,119 65,246,315 -- 72,731,129 65,692,166 =========== =========== ========== === =========== ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 78
METLIFE INVESTMENT LARGE METLIFE INVESTMENT SMALL COMPANY STOCK COMPANY STOCK MSF BLACKROCK AGGRESSIVE GROWTH SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS I) (CLASS I) (CLASS D) ------------------------- ------------------------ ------------------------------- 2007 (c) 2006 2007 (c) 2006 2007 2006 ------------ ----------- ----------- ----------- ---------- ---------- Accumulation and annuity units beginning of year 172,828,761 186,965,079 72,655,277 81,646,686 10,316,402 -- Accumulation units issued and transferred from other funding options 10,354,537 20,460,893 4,607,536 7,223,028 3,513,323 13,229,514 Accumulation units redeemed and transferred to other funding options (183,169,917) (34,584,692) (77,233,990) (16,208,620) (3,247,662) (2,913,112) Annuity units (13,381) (12,519) (28,823) (5,817) -- -- ------------ ---------- ----------- ----------- ---------- ---------- Accumulation and annuity units end of year -- 172,828,761 -- 72,655,277 10,582,063 10,316,402 ============ =========== =========== =========== ========== ==========
MSF LEHMAN BROTHERS AGGREGATE MSF FI LARGE CAP BOND INDEX MSF METLIFE SUBACCOUNT SUBACCOUNT AGGRESSIVE ALLOCATION (CLASS A) (CLASS A) SUBACCOUNT (CLASS B) ----------------------- ----------------------------- ----------------------- 2007 2006 2007 (d) 2006 2007 2006 ----------- ---------- -------------- ------------- ----------- ---------- Accumulation and annuity units beginning of year 58,723,878 -- -- -- 1,824,749 -- Accumulation units issued and transferred from other funding options 3,663,900 67,861,072 46,875,969 -- 40,461,281 2,123,695 Accumulation units redeemed and transferred to other funding options (12,697,578) (9,173,950) (1,179,653) -- (1,349,225) (298,946) Annuity units (11,056) 36,756 6,503 -- -- -- ----------- ---------- ---------- --- ---------- --------- Accumulation and annuity units end of year 49,679,144 58,723,878 45,702,819 -- 40,936,805 1,824,749 =========== ========== ========== === ========== =========
79 FOR THE YEARS ENDED DECEMBER 31,2007 AND 2006
MSF METLIFE CONSERVATIVE MSF METLIFE CONSERVATIVE TO MSF METLIFE MID CAP ALLOCATION MODERATE ALLOCATION STOCK INDEX SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS B) (CLASS B) (CLASS A) ------------------------ --------------------------- --------------------- 2007 2006 2007 2006 2007 2006 --------- -------- ---------- --------- ---------- --------- Accumulation and annuity units beginning of year 589,878 -- 2,953,267 -- 2,799,148 -- Accumulation units issued and transferred from other funding options 4,701,299 816,665 40,990,487 3,329,396 4,008,796 3,634,147 Accumulation units redeemed and transferred to other funding options (1,837,630) (226,787) (2,233,538) (376,180) (1,474,141) (834,999) Annuity units -- -- (349) 51 -- -- --------- -------- ---------- --------- ---------- --------- Accumulation and annuity units end of year 3,453,547 589,878 41,709,867 2,953,267 5,333,803 2,799,148 ========= ======== ========== ========= ========== =========
MSF MORGAN STANLEY MSF OPPENHEIMER MSF MFS TOTAL RETURN EAFE INDEX GLOBAL EQUITY SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS F) (CLASS A) (CLASS A) ---------------------- ------------------ ------------------------ 2007 2006 2007 (d) 2006 2007 2006 ---------- ---------- ---------- ---- ----------- ----------- Accumulation and annuity units beginning of year 43,900,409 -- -- -- 326,129,682 -- Accumulation units issued and transferred from other funding options 7,984,282 50,123,052 30,667,192 -- 22,067,775 364,937,766 Accumulation units redeemed and transferred to other funding options (8,582,441) (6,232,016) (789,521) -- (55,233,835) (38,965,979) Annuity units (5,055) 9,373 (1,581) -- (13,946) 157,895 ---------- ---------- ---------- ---- ----------- ----------- Accumulation and annuity units end of year 43,297,195 43,900,409 29,876,090 -- 292,949,676 326,129,682 ========== ========== ========== ==== =========== ===========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 80
MSF METLIFE MODERATE TO MSF METLIFE MODERATE ALLOCATION AGGRESSIVE ALLOCATION SUBACCOUNT SUBACCOUNT MSF METLIFE STOCK INDEX (CLASS B) (CLASS B) SUBACCOUNT ------------------------------- ----------------------- ---------------------- 2007 2006 2007 2006 2007 2006 ----------- ---------- ----------- ---------- ----------- --------- Accumulation and annuity units beginning of year 12,223,678 -- 11,222,317 -- 3,215,810 -- Accumulation units issued and transferred from other funding options 298,523,514 12,992,805 290,372,150 11,814,294 523,293,115 3,423,156 Accumulation units redeemed and transferred to other funding options (11,288,940) (769,127) (8,404,899) (591,977) (53,467,537) (207,346) Annuity units -- -- -- -- (48,436) -- ----------- ---------- ----------- ---------- ----------- --------- Accumulation and annuity units end of year 299,458,252 12,223,678 293,189,568 11,222,317 472,992,952 3,215,810 =========== ========== =========== ========== =========== =========
MSF T. ROWE PRICE LARGE CAP MSF WESTERN ASSET MANAGEMENT MSF RUSSELL 2000 INDEX GROWTH HIGH YIELD BOND SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS B) (CLASS A) --------------------- -------------------------- ---------------------------- 2007 (d) 2006 2007 2006 2007 (a) 2006 ---------- ---- --------- --------- ---------- ---------- Accumulation and annuity units beginning of year -- -- 4,465,651 -- 7,593,779 -- Accumulation units issued and transferred from other funding options 34,841,099 -- 3,054,741 5,269,413 524,109 8,870,300 Accumulation units redeemed and transferred to other funding options (941,362) -- (1,641,029) (803,762) (8,117,529) (1,284,487) Annuity units (948) -- -- -- (359) 7,966 ---------- ---- ---------- --------- ---------- ---------- Accumulation and annuity units end of year 33,898,789 -- 5,879,363 4,465,651 -- 7,593,779 ========== ==== ========== ========= ========== ==========
81 FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MSF WESTERN ASSET MANAGEMENT MSF WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES U.S. GOVERNMENT PIMCO VIT REAL RETURN SUBACCOUNT SUBACCOUNT SUBACCOUNT (CLASS A) (CLASS A) (ADMINISTRATIVE CLASS) ---------------------------- ---------------------------- ---------------------- 2007 2006 2007 2006 2007 (a) 2006 -------- --------- ---------- ---------- ---------- --------- Accumulation and annuity units beginning of year 722,740 -- 29,493,750 -- 1,658,363 969,907 Accumulation units issued and transferred from other funding options 447,103 1,055,584 4,145,080 35,009,018 430,999 1,641,969 Accumulation units redeemed and transferred to other funding options (375,674) (332,844) (6,459,115) (5,534,681) (2,089,362) (953,513) Annuity units -- -- (1,447) 19,413 -- -- -------- --------- ---------- ---------- ---------- --------- Accumulation and annuity units end of year 794,169 722,740 27,178,268 29,493,750 -- 1,658,363 ======== ========= ========== ========== ========== =========
(a) For the period January 1, 2007 to April 27, 2007. (b) For the period April 30, 2007 to December 31, 2007. (c) For the period January 1, 2007 to November 9, 2007. (d) For the period November 12, 2007 to December 31, 2007. 82
PIMCO VIT TOTAL RETURN PUTNAM VT INTERNATIONAL EQUITY PUTNAM VT SMALL CAP VALUE VAN KAMPEN LIT COMSTOCK SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT (ADMINISTRATIVE CLASS) (CLASS IB) (CLASS IB) (CLASS II) ---------------------- ------------------------------ ------------------------- ----------------------- 2007 2006 2007 (a) 2006 2007 (a) 2006 2007 2006 ---------- ---------- ---------- ---------- ----------- ---------- ---------- ---------- Accumulation and annuity units beginning of year 14,025,362 10,806,123 5,055,410 4,078,177 38,304,597 36,660,979 7,478,125 7,330,122 Accumulation units issued and transferred from other funding options 7,277,478 6,302,257 968,868 2,580,844 3,015,245 10,523,096 1,774,239 2,253,768 Accumulation units redeemed and transferred to other funding options (4,663,343) (3,083,018) (6,024,278) (1,603,611) (41,318,649) (8,858,264) (2,702,453) (2,105,781) Annuity units -- -- -- -- (1,193) (21,214) (1,078) 16 ---------- ---------- ---------- ---------- ----------- ---------- ---------- ---------- Accumulation and annuity units end of year 16,639,497 14,025,362 -- 5,055,410 -- 38,304,597 6,548,833 7,478,125 ========== ========== ========== ========== =========== ========== ========== ==========
83 8. SUBSEQUENT EVENT The Company anticipates merging the Separate Account with and into MetLife of CT Separate Account Eleven for Variable Annuities, which is another separate account of the Company, during the fourth quarter of 2008 at the earliest, subject to regulatory approval. This merger will have no effect on the provisions of, and the rights and obligations under, the Contracts. 84 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of MetLife Insurance Company of Connecticut: We have audited the accompanying consolidated balance sheets of MetLife Insurance Company of Connecticut and subsidiaries (the "Company") as of December 31, 2007 and 2006, and the related consolidated statements of income, stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2007. Our audits also included the financial statement schedules listed in the Index to Consolidated Financial Statements and Schedules. These consolidated financial statements and financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on the consolidated financial statements and financial statement schedules based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of MetLife Insurance Company of Connecticut and subsidiaries as of December 31, 2007 and 2006, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2007, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein. As discussed in Note 1, the Company changed its method of accounting for deferred acquisition costs as required by accounting guidance adopted on January 1, 2007. As discussed in Note 20, the accompanying 2007 consolidated financial statements have been restated. /s/ DELOITTE & TOUCHE LLP New York, New York March 26, 2008 (May 14, 2008, as to Note 20 and October 29, 2008, as to Note 21) F-1 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2007 AND 2006 (IN MILLIONS, EXCEPT SHARE AND PER SHARE DATA)
2007 2006 ------------- -------- (AS RESTATED, SEE NOTE 20) ASSETS Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $46,264 and $48,406, respectively)........................................... $ 45,671 $ 47,846 Equity securities available-for-sale, at estimated fair value (cost: $992 and $777, respectively)............... 952 795 Mortgage and consumer loans................................ 4,404 3,595 Policy loans............................................... 913 918 Real estate and real estate joint ventures held-for- investment.............................................. 541 173 Real estate held-for-sale.................................. -- 7 Other limited partnership interests........................ 1,130 1,082 Short-term investments..................................... 1,335 777 Other invested assets...................................... 1,445 1,241 -------- -------- Total investments....................................... 56,391 56,434 Cash and cash equivalents.................................... 1,774 649 Accrued investment income.................................... 637 597 Premiums and other receivables............................... 8,320 8,410 Deferred policy acquisition costs and value of business acquired................................................... 4,948 5,111 Current income tax recoverable............................... 72 94 Deferred income tax assets................................... 846 1,007 Goodwill..................................................... 953 953 Other assets................................................. 753 765 Separate account assets...................................... 53,867 50,067 -------- -------- Total assets............................................ $128,561 $124,087 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES: Future policy benefits..................................... $ 19,576 $ 19,654 Policyholder account balances.............................. 33,815 35,099 Other policyholder funds................................... 1,777 1,513 Long-term debt -- affiliated............................... 635 435 Payables for collateral under securities loaned and other transactions............................................ 10,471 9,155 Other liabilities.......................................... 1,072 749 Separate account liabilities............................... 53,867 50,067 -------- -------- Total liabilities....................................... 121,213 116,672 -------- -------- CONTINGENCIES, COMMITMENTS AND GUARANTEES (NOTE 12) STOCKHOLDERS' EQUITY: Common stock, par value $2.50 per share; 40,000,000 shares authorized; 34,595,317 shares issued and outstanding at December 31, 2007 and 2006................................. 86 86 Additional paid-in capital................................... 6,719 7,123 Retained earnings............................................ 892 520 Accumulated other comprehensive income (loss)................ (349) (314) -------- -------- Total stockholders' equity.............................. 7,348 7,415 -------- -------- Total liabilities and stockholders' equity.............. $128,561 $124,087 ======== ========
See accompanying notes to consolidated financial statements. F-2 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005 (IN MILLIONS)
2007 2006 2005 ------------- ------ ------ (AS RESTATED, SEE NOTE 20) REVENUES Premiums............................................... $ 353 $ 308 $ 281 Universal life and investment-type product policy fees................................................. 1,411 1,268 862 Net investment income.................................. 2,893 2,839 1,438 Other revenues......................................... 251 212 132 Net investment gains (losses).......................... (142) (521) (198) ------ ------ ------ Total revenues.................................. 4,766 4,106 2,515 ------ ------ ------ EXPENSES Policyholder benefits and claims....................... 978 792 570 Interest credited to policyholder account balances..... 1,299 1,316 720 Other expenses......................................... 1,446 1,173 678 ------ ------ ------ Total expenses.................................. 3,723 3,281 1,968 ------ ------ ------ Income from continuing operations before provision for income tax........................................... 1,043 825 547 Provision for income tax............................... 303 228 156 ------ ------ ------ Income from continuing operations...................... 740 597 391 Income from discontinued operations, net of income tax.................................................. 4 -- -- ------ ------ ------ Net income............................................. $ 744 $ 597 $ 391 ====== ====== ======
See accompanying notes to consolidated financial statements. F-3 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005 (IN MILLIONS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ---------------------------- NET FOREIGN ADDITIONAL UNREALIZED CURRENCY COMMON PAID-IN RETAINED INVESTMENT TRANSLATION STOCK CAPITAL EARNINGS GAINS (LOSSES) ADJUSTMENTS TOTAL ------ ---------- -------- -------------- ----------- ------ Balance at January 1, 2005............... $11 $ 471 $ 190 $ 30 $-- $ 702 MetLife Insurance Company of Connecticut's common stock purchased by MetLife, Inc. (Notes 2 and 3).......... 75 6,709 6,784 Comprehensive income (loss): Net income............................. 391 391 Other comprehensive income (loss): Unrealized gains (losses) on derivative instruments, net of income tax........................ (1) (1) Unrealized investment gains (losses), net of related offsets and income tax.................... (445) (445) Foreign currency translation adjustments, net of income tax.... 2 2 ------ Other comprehensive income (loss)... (444) ------ Comprehensive income (loss)............ (53) --- ------ ----- ----- --- ------ Balance at December 31, 2005............. 86 7,180 581 (416) 2 7,433 Revisions of purchase price pushed down to MetLife Insurance Company of Connecticut's net assets acquired (Note 2)..................................... 40 40 Dividend paid to MetLife, Inc. .......... (259) (658) (917) Capital contribution of intangible assets from MetLife, Inc., net of income tax (Notes 8 and 14)....................... 162 162 Comprehensive income: Net income............................. 597 597 Other comprehensive income: Unrealized gains (losses) on derivative instruments, net of income tax........................ (5) (5) Unrealized investment gains (losses), net of related offsets and income tax.................... 107 107 Foreign currency translation adjustments, net of income tax.... (2) (2) ------ Other comprehensive income.......... 100 ------ Comprehensive income................... 697 --- ------ ----- ----- --- ------ Balance at December 31, 2006............. 86 7,123 520 (314) -- 7,415 Cumulative effect of change in accounting principle, net of income tax (Note 1).. (86) (86) --- ------ ----- ----- --- ------ Balance at January 1, 2007............... 86 7,123 434 (314) -- 7,329 Dividend paid to MetLife, Inc. .......... (404) (286) (690) Comprehensive income: Net income, (As Restated, See Note 20)................................. 744 744 Other comprehensive income (loss): Unrealized gains (losses) on derivative instruments, net of income tax........................ (2) (2) Unrealized investment gains (losses), net of related offsets and income tax.................... (45) (45) Foreign currency translation adjustments, net of income tax, (As Restated, See Note 20)........ 12 12 ------ Other comprehensive income (loss), (As Restated, See Note 20)........ (35) ------ Comprehensive income, (As Restated, See Note 20)............................ 709 --- ------ ----- ----- --- ------ Balance at December 31, 2007, (As Restated, See Note 20)................. $86 $6,719 $ 892 $(361) $12 $7,348 === ====== ===== ===== === ======
See accompanying notes to consolidated financial statements. F-4 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005 (IN MILLIONS)
2007 2006 2005 ------------- -------- -------- (AS RESTATED, SEE NOTE 20) CASH FLOWS FROM OPERATING ACTIVITIES Net income.......................................... $ 744 $ 597 $ 391 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expenses......... 26 6 4 Amortization of premiums and accretion of discounts associated with investments, net... 11 74 112 Losses from sales of investments and businesses, net.............................. 145 521 198 Gain from recapture of ceded reinsurance....... (22) -- -- Undistributed equity earnings of real estate joint ventures and other limited partnership interests.................................... (121) (83) (19) Interest credited to policyholder account balances..................................... 1,299 1,316 720 Universal life and investment-type product policy fees.................................. (1,411) (1,268) (862) Change in accrued investment income............ (35) 2 (68) Change in premiums and other receivables....... 360 (509) (415) Change in deferred policy acquisition costs, net.......................................... 61 (234) (211) Change in insurance-related liabilities........ 71 234 812 Change in trading securities................... -- (43) 103 Change in income tax payable................... 308 156 298 Change in other assets......................... 681 586 574 Change in other liabilities.................... 234 (351) (876) Other, net..................................... -- -- 2 -------- -------- -------- Net cash provided by operating activities........... 2,351 1,004 763 -------- -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Sales, maturities and repayments of: Fixed maturity securities...................... 21,546 27,706 24,008 Equity securities.............................. 146 218 221 Mortgage and consumer loans.................... 1,208 1,034 748 Real estate and real estate joint ventures..... 155 126 65 Other limited partnership interests............ 465 762 173 Purchases of: Fixed maturity securities...................... (19,365) (23,840) (32,850) Equity securities.............................. (357) (109) -- Mortgage and consumer loans.................... (2,030) (2,092) (500) Real estate and real estate joint ventures..... (458) (56) (13) Other limited partnership interests............ (515) (343) (330) Net change in policy loans........................ 5 (2) 3 Net change in short-term investments.............. (558) 991 599 Net change in other invested assets............... (175) (316) 233 Other, net........................................ 16 1 3 -------- -------- -------- Net cash provided by (used in) investing activities........................................ $ 83 $ 4,080 $ (7,640) -------- -------- --------
See accompanying notes to consolidated financial statements. F-5 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005 -- (CONTINUED) (IN MILLIONS)
2007 2006 2005 ------------- -------- -------- (AS RESTATED, SEE NOTE 20) CASH FLOWS FROM FINANCING ACTIVITIES Policyholder account balances: Deposits....................................... $ 11,395 $ 8,185 $ 11,230 Withdrawals.................................... (13,563) (11,637) (12,369) Net change in payables for collateral under securities loaned and other transactions....... 1,316 (582) 7,675 Net change in short-term debt -- affiliated....... -- -- (26) Long-term debt issued -- affiliated............... 200 -- 400 Dividends on common stock......................... (690) (917) -- Financing element on certain derivative instruments.................................... 33 (55) (49) Contribution of MetLife Insurance Company of Connecticut from MetLife, Inc. ................ -- -- 443 -------- -------- -------- Net cash (used in) provided by financing activities........................................ (1,309) (5,006) 7,304 -------- -------- -------- Change in cash and cash equivalents................. 1,125 78 427 Cash and cash equivalents, beginning of year........ 649 571 144 -------- -------- -------- CASH AND CASH EQUIVALENTS, END OF YEAR.............. $ 1,774 $ 649 $ 571 ======== ======== ======== Supplemental disclosures of cash flow information: Net cash paid (received) during the year for: Interest....................................... $ 33 $ 31 $ 18 ======== ======== ======== Income tax..................................... $ (6) $ 81 $ 87 ======== ======== ======== Non-cash transactions during the year: Net assets of MetLife Insurance Company of Connecticut acquired by MetLife, Inc. and contributed to MetLife Investors USA Insurance Company, net of cash received of $0, $0 and $443 million...................... $ -- $ -- $ 6,341 ======== ======== ======== Contribution of equity securities to MetLife Foundation................................... $ 12 $ -- $ -- ======== ======== ======== Contribution of other intangible assets from MetLife, Inc., net of deferred income tax.... $ -- $ 162 $ -- ======== ======== ======== Contribution of goodwill from MetLife, Inc. ... $ -- $ 29 $ -- ======== ======== ========
- -------- See Note 9 for disclosure regarding the receipt of $901 million under an affiliated reinsurance agreement during the year ended December 31, 2007, which is included in the change in premiums and other receivables in net cash provided by operating activities. See Note 2 for further discussion of the net assets of MetLife Insurance Company of Connecticut acquired by MetLife, Inc. and contributed to MetLife Investors USA Insurance Company. See accompanying notes to consolidated financial statements. F-6 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) 1. BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BUSINESS "MICC" or the "Company" refers to MetLife Insurance Company of Connecticut, a Connecticut corporation incorporated in 1863, and its subsidiaries, including MetLife Investors USA Insurance Company ("MLI-USA"). The Company is a subsidiary of MetLife, Inc. ("MetLife"). The Company offers individual annuities, individual life insurance, and institutional protection and asset accumulation products. On December 7, 2007, MetLife Life and Annuity Company of Connecticut ("MLAC"), a former subsidiary, was merged with and into MetLife Insurance Company of Connecticut, its parent. The merger had no impact on the Company's consolidated financial statements. On October 11, 2006, MetLife transferred MLI-USA to MetLife Insurance Company of Connecticut. See Note 3. On July 1, 2005 (the "Acquisition Date"), MetLife Insurance Company of Connecticut became a wholly-owned subsidiary of MetLife. MetLife Insurance Company of Connecticut, together with substantially all of Citigroup Inc.'s ("Citigroup") international insurance businesses, excluding Primerica Life Insurance Company and its subsidiaries ("Primerica") (collectively, "Travelers"), were acquired by MetLife from Citigroup (the "Acquisition") for $12.1 billion. See Note 2 for further information on the Acquisition. 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. BASIS OF PRESENTATION The accompanying consolidated financial statements include the accounts of (i) MLI-USA and effective July 1, 2005, MetLife Insurance Company of Connecticut and its subsidiaries (See Notes 2 and 3); (ii) partnerships and joint ventures in which the Company has control; and (iii) variable interest entities ("VIEs") for which the Company is deemed to be the primary beneficiary. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for investments in equity securities in which it has more than a 20% interest and for real estate joint ventures and other limited partnership interests in which it has more than a minor equity interest or more than a minor influence over the joint venture's or partnership's operations, but does not have a controlling interest and is not the primary beneficiary. The Company uses the cost method of accounting for investments in real estate joint ventures and other limited partnership interests in which it has a minor equity investment and virtually no influence over the joint venture's or partnership's operations. During the second quarter of 2007, the nature of the Company's partnership interest in Greenwich Street Investments, LP ("Greenwich") changed such that Greenwich is no longer consolidated and is now accounted for under the equity method of accounting. During the second quarter of 2006, the Company's ownership interest in Tribeca Citigroup Investments, Ltd. ("Tribeca") declined to a position whereby Tribeca is no longer consolidated and is now accounted for under the equity method of accounting. As such, there was no minority interest liability at December 31, 2007. Minority interest related to Greenwich included in other liabilities was $43 million at December 31, 2006. Certain amounts in the prior year periods' consolidated financial statements have been reclassified to conform with the 2007 presentation. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES 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 F-7 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) assumptions that affect amounts reported in the consolidated financial statements. The most critical estimates include those used in determining: (i) the fair value of investments in the absence of quoted market values; (ii) investment impairments; (iii) the recognition of income on certain investments; (iv) the application of the consolidation rules to certain investments; (v) the fair value of and accounting for derivatives; (vi) the capitalization and amortization of deferred policy acquisition costs ("DAC") and the establishment and amortization of value of business acquired ("VOBA"); (vii) the measurement of goodwill and related impairment, if any; (viii) the liability for future policyholder benefits; (ix) accounting for income taxes and the valuation of deferred tax assets; (x) accounting for reinsurance transactions; and (xi) the liability for litigation and regulatory matters. A description of such critical estimates is incorporated within the discussion of the related accounting policies which follow. The application of purchase accounting requires the use of estimation techniques in determining the fair values of assets acquired and liabilities assumed -- the most significant of which relate to the aforementioned critical estimates. In applying these policies, management makes subjective and complex judgments that frequently require estimates 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 businesses and operations. Actual results could differ from these estimates. Investments The Company's principal investments are in fixed maturity and equity securities, mortgage and consumer loans, policy loans, real estate, real estate joint ventures and other limited partnerships, short-term investments, and other invested assets. The accounting policies related to each are as follows: Fixed Maturity and Equity Securities. The Company's fixed maturity and equity securities are classified as available-for-sale 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 or loss, net of policyholder related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales of securities are determined on a specific identification basis. Interest income on fixed maturity securities is recorded when earned using an effective yield method giving effect to amortization of premiums and accretion of discounts. Dividends on equity securities are recorded when declared. These dividends and interest income are recorded as part of net investment income. Included within fixed maturity securities are loan-backed securities including mortgage-backed and asset-backed securities. Amortization of the premium or discount from the purchase of these securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single class and multi-class mortgage-backed and asset-backed securities are obtained from F-8 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) broker-dealer survey values or internal estimates. For credit-sensitive mortgage-backed and asset-backed securities and certain prepayment- sensitive securities, the effective yield is recalculated on a prospective basis. For all other mortgage-backed and asset-backed securities, the effective yield is recalculated on a retrospective basis. The cost of fixed maturity and equity securities is adjusted for impairments in value deemed to be other-than-temporary in the period in which the determination is made. These impairments are included within net investment gains (losses) and the cost basis of the fixed maturity and equity securities is reduced accordingly. The Company does not change the revised cost basis for subsequent recoveries in value. The assessment of whether impairments have occurred is based on management's case-by-case evaluation of the underlying reasons for the decline in fair value. The Company's review of its fixed maturity and equity securities for impairments includes an analysis of the total gross unrealized losses by three categories of securities: (i) securities where the estimated fair value had declined and remained below cost or amortized cost by less than 20%; (ii) securities where the estimated fair value had declined and remained below cost or amortized cost by 20% or more for less than six months; and (iii) securities where the estimated fair value had declined and remained below cost or amortized cost by 20% or more for six months or greater. Additionally, management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management's evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used by the Company in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the market value has been below cost or amortized cost; (ii) the potential for impairments of securities when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments of securities where the issuer, series of issuers or industry has suffered a catastrophic type of loss or has exhausted natural resources; (vi) the Company's ability and intent to hold the security for a period of time sufficient to allow for the recovery of its value to an amount equal to or greater than cost or amortized cost (See also Note 4); (vii) unfavorable changes in forecasted cash flows on mortgage-backed and asset-backed securities; and (viii) other subjective factors, including concentrations and information obtained from regulators and rating agencies. Securities Lending. Securities loaned transactions are treated as financing arrangements and are recorded at the amount of cash received. The Company obtains collateral in an amount equal to 102% of the fair value of the securities loaned. The Company monitors the market value of the securities loaned on a daily basis with additional collateral obtained as necessary. Substantially all of the Company's securities loaned transactions are with large brokerage firms. Income and expenses associated with securities loaned transactions are reported as investment income and investment expense, respectively, within net investment income. Mortgage and Consumer Loans. Mortgage and consumer loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, net of valuation allowances. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. Interest income, amortization of premiums and discounts, and prepayment fees are reported in net investment income. Loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. Valuation allowances are established for the excess carrying value of the loan over the present value of expected future cash flows discounted at the loan's original effective interest rate, the value of the loan's F-9 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or the loan's market value if the loan is being sold. The Company also establishes allowances for loan losses when a loss contingency exists for pools of loans with similar characteristics, such as mortgage loans based on similar property types or loan to value risk factors. A loss contingency exists when the likelihood that a future event will occur is probable based on past events. Interest income earned on impaired loans is accrued on the principal amount of the loan based on the loan's contractual interest rate. However, interest ceases to be accrued for loans on which interest is generally more than 60 days past due and/or where the collection of interest is not considered probable. Cash receipts on such impaired loans are recorded as a reduction of the recorded investment. Gains and losses from the sale of loans and changes in valuation allowances are reported in net investment gains (losses). Policy Loans. Policy loans are stated at unpaid principal balances. Interest income on such loans is recorded as earned using the contractually agreed upon interest rate. Generally, interest is capitalized on the policy's anniversary date. Real Estate. Real estate held-for-investment, including related improvements, is stated at cost less accumulated depreciation. Depreciation is provided 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 classifies a property as held-for-sale if it commits to a plan to sell a property within one year and actively markets the property in its current condition for a price that is reasonable in comparison to its fair value. The Company classifies the results of operations and the gain or loss on sale of a property that either has been disposed of or classified as held- for-sale as discontinued operations, if the ongoing operations of the property will be eliminated from the ongoing operations of the Company and if the Company will not have any significant continuing involvement in the operations of the property after the sale. Real estate held-for-sale is stated at the lower of depreciated cost or fair value less expected disposition costs. Real estate is not depreciated while it is classified as held-for-sale. The Company periodically reviews its properties held-for- investment for impairment and tests properties for recoverability whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable and the carrying value of the property exceeds its fair value. Properties whose carrying values are greater than their undiscounted cash flows are written down to their fair value, with the impairment loss included in net investment gains (losses). Impairment losses are based upon the estimated fair value of real estate, which is generally computed using the present value of expected future cash flows from the real estate discounted at a rate commensurate with the underlying risks. Real estate acquired upon foreclosure of commercial and agricultural mortgage loans is recorded at the lower of estimated fair value or the carrying value of the mortgage loan at the date of foreclosure. Real Estate Joint Ventures and Other Limited Partnership Interests. The Company uses the equity method of accounting for investments in real estate joint ventures and other limited partnership interests in which it has more than a minor equity interest or more than a minor influence over the joint ventures or partnership's operations, but does not have a controlling interest and is not the primary beneficiary. The Company uses the cost method of accounting for investments in real estate joint ventures and other limited partnership interests in which it has a minor equity investment and virtually no influence over the joint ventures or the partnership's operations. In addition to the investees performing regular evaluations for the impairment of underlying investments, the Company routinely evaluates its investments in real estate joint ventures and other limited partnerships for impairments. For its cost method investments, the Company follows an impairment analysis which is similar to the process followed for its fixed maturity and equity securities as described previously. 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. When an other-than- F-10 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) temporary impairment is deemed to have occurred, the Company records a realized capital loss within net investment gains (losses) to record the investment at its fair value. Short-term Investments. Short-term investments include investments with remaining maturities of one year or less, but greater than three months, at the time of acquisition and are stated at amortized cost, which approximates fair value. Other Invested Assets. Other invested assets consist primarily of stand-alone derivatives with positive fair values. Estimates and Uncertainties. The Company's investments are exposed to three primary sources of risk: credit, interest rate and market valuation. The financial statement risks, stemming from such investment risks, are those associated with the recognition of impairments, the recognition of income on certain investments, and the determination of fair values. The determination of the amount of allowances and impairments, as applicable, are described previously by investment type. The determination of such allowances and impairments is highly subjective and is based upon the Company's periodic evaluation and assessment of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available. Management updates its evaluations regularly and reflects changes in allowances and impairments in operations as such evaluations are revised. The recognition of income on certain investments (e.g. loan-backed securities including mortgage-backed and asset-backed securities, certain investment transactions, etc.) is dependent upon market conditions, which could result in prepayments and changes in amounts to be earned. The fair values of publicly held fixed maturity securities and publicly held equity securities are based on quoted market prices or estimates from independent pricing services. However, in cases where quoted market prices are not available, such as for private fixed maturity securities, fair values are estimated using present value or valuation techniques. The determination of fair values is based on: (i) valuation methodologies; (ii) securities the Company deems to be comparable; and (iii) assumptions deemed appropriate given the circumstances. The fair value estimates are made at a specific point in time, based on available market information and judgments about financial instruments, including estimates of the timing and amounts of expected future cash flows and the credit standing of the issuer or counterparty. Factors considered in estimating fair value include: coupon rate, maturity, estimated duration, call provisions, sinking fund requirements, credit rating, industry sector of the issuer, and quoted market prices of comparable securities. The use of different methodologies and assumptions may have a material effect on the estimated fair value amounts. Additionally, when the Company enters into certain real estate joint ventures and other limited partnerships for which the Company may be deemed to be the primary beneficiary under Financial Accounting Standards Board ("FASB") Interpretation ("FIN") No. 46(r), Consolidation of Variable Interest Entities -- An Interpretation of ARB No. 51, it may be required to consolidate such investments. The accounting rules for the determination of the primary beneficiary are complex and require evaluation of the contractual rights and obligations associated with each party involved in the entity, an estimate of the entity's expected losses and expected residual returns and the allocation of such estimates to each party. The use of different methodologies and assumptions as to the determination of the fair value of investments, the timing and amount of impairments, the recognition of income, or consolidation of investments may have a material effect on the amounts presented within the consolidated financial statements. F-11 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) Derivative Financial Instruments Derivatives are financial instruments whose values are derived from interest rates, foreign currency exchange rates, or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter market. The Company uses a variety of derivatives, including swaps, forwards, futures and option contracts, to manage the risk associated with variability in cash flows or changes in fair values related to the Company's financial instruments. The Company also uses derivative instruments to hedge its currency exposure associated with net investments in certain foreign operations. To a lesser extent, the Company uses credit derivatives, such as credit default swaps, to synthetically replicate investment risks and returns which are not readily available in the cash market. The Company also purchases certain securities, issues certain insurance policies and investment contracts and engages in certain reinsurance contracts that have embedded derivatives. Freestanding derivatives are carried on the Company's consolidated balance sheet either as assets within other invested assets or as liabilities within other liabilities at fair value as determined by quoted market prices or through the use of pricing models. The determination of fair value, when quoted market values are not available, is based on valuation methodologies and assumptions deemed appropriate under the circumstances. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, market volatility, and liquidity. Values can also be affected by changes in estimates and assumptions used in pricing models. Such assumptions include estimates of volatility, interest rates, foreign currency exchange rates, other financial indices and credit ratings. Essential to the analysis of the fair value is risk of counterparty default. The use of different assumptions may have a material effect on the estimated derivative fair value amounts, as well as the amount of reported net income. 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 fair value of the derivative are generally reported in net investment gains (losses). The fluctuations in fair value of derivatives which have not been designated for hedge accounting can result in significant volatility in net income. 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 as either (i) a hedge of the fair value of a recognized asset or liability or an unrecognized firm commitment ("fair value hedge"); (ii) 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 ("cash flow hedge"); or (iii) a hedge of a net investment in a foreign operation. In this 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 which 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 periodically 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 accounting for derivatives is complex and interpretations of the primary accounting standards continue to evolve in practice. Judgment is applied in determining the availability and application of hedge accounting designations and the appropriate accounting treatment under these accounting standards. If it was determined that hedge accounting designations were not appropriately applied, reported net income could be materially affected. Differences in judgment as to the availability and application of hedge accounting designations and the appropriate accounting treatment may result in a differing impact on the consolidated financial statements of the Company from that previously reported. F-12 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) Under a fair value hedge, changes in the fair value of the hedging derivative, including amounts measured as ineffectiveness, and changes in the fair value of the hedged item related to the designated risk being hedged, are reported within net investment gains (losses). The fair values of the hedging derivatives are exclusive of any accruals that are separately reported in the consolidated statement of income within interest income or interest expense to match the location of the hedged item. Under a cash flow hedge, changes in the fair value of the hedging derivative measured as effective are reported within other comprehensive income (loss), a separate component of stockholders' equity, and the deferred gains or losses on the derivative are reclassified into the consolidated statement of income when the Company's earnings are affected by the variability in cash flows of the hedged item. Changes in the fair value of the hedging instrument measured as ineffectiveness are reported within net investment gains (losses). The fair values of the hedging derivatives are exclusive of any accruals that are separately reported in the consolidated statement of income within interest income or interest expense to match the location of the hedged item. In a hedge of a net investment in a foreign operation, changes in the fair value of the hedging derivative that are measured as effective are reported within other comprehensive income (loss) consistent with the translation adjustment for the hedged net investment in the foreign operation. Changes in the fair value of the hedging instrument measured as ineffectiveness are reported within net investment gains (losses). The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the 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; (iv) a hedged firm commitment no longer meets the definition of a firm commitment; or (v) 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 fair value or cash flows of a hedged item, the derivative continues to be carried on the consolidated balance sheet at its fair value, with changes in fair value recognized currently in net investment 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 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 fair value of derivatives recorded in other comprehensive income (loss) related to discontinued cash flow hedges are released into the consolidated statement of income 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 by the end of the specified time period or the hedged item no longer meets the definition of a firm commitment, the derivative continues to be carried on the consolidated balance sheet at its fair value, with changes in fair value recognized currently in net investment gains (losses). Any asset or liability associated with a recognized firm commitment is derecognized from the consolidated balance sheet, and recorded currently in net investment gains (losses). Deferred gains and losses of a derivative recorded in other comprehensive income (loss) pursuant to the cash flow hedge of a forecasted transaction are recognized immediately in net investment gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its fair value on the consolidated balance sheet, with changes in its fair value recognized in the current period as net investment gains (losses). The Company is also a party to financial instruments that contain terms which are deemed to be embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. If the instrument would not be accounted for in its entirety at fair value and it is determined that the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract, F-13 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) and that a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative. Such embedded derivatives are carried on the consolidated balance sheet at fair value with the host contract and changes in their fair value are reported currently in net investment 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 fair value, with changes in fair value recognized in the current period in net investment gains (losses). Additionally, the Company may elect to carry an entire contract on the balance sheet at fair value, with changes in fair value recognized in the current period in net investment gains (losses) if that contract contains an embedded derivative that requires bifurcation. There is a risk that embedded derivatives requiring bifurcation may not be identified and reported at fair value in the consolidated financial statements and that their related changes in fair value could materially affect reported net income. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. 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 either the straight-line or sum-of-the-years- digits method over the estimated useful lives of the assets, as appropriate. Estimated lives generally range from five to ten years for leasehold improvements and three to seven years for all other property and equipment. The net book value of property, equipment and leasehold improvements was less than $1 million and $1 million at December 31, 2007 and 2006, 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 $72 million and $52 million at December 31, 2007 and 2006, respectively. Accumulated amortization of capitalized software was $11 million and $3 million at December 31, 2007 and 2006, respectively. Related amortization expense was $11 million, $3 million and $1 million for the years ended December 31, 2007, 2006 and 2005, respectively. Deferred Policy Acquisition Costs and Value of Business Acquired The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that vary with and relate to the production of new business are deferred as DAC. Such costs consist principally of commissions and agency and policy issue expenses. VOBA is an intangible asset that reflects the estimated fair value of in-force contracts in a life insurance company acquisition and represents the portion of the purchase price that is allocated to the value of the right to receive future cash flows from the business in- force at the acquisition date. VOBA is based on actuarially determined projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns and other factors. Actual experience on the purchased business may vary from these projections. The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated in the financial statements for reporting purposes. DAC and VOBA on life insurance or investment-type contracts are amortized in proportion to gross premiums or gross profits, depending on the type of contract as described below. F-14 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) The Company amortizes DAC and VOBA related to non-participating traditional contracts (term insurance and non-participating whole life insurance) over the entire premium paying period in proportion to the present value of actual historic and expected future gross premiums. The present value of expected premiums is 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, that 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. The Company amortizes DAC and VOBA related to fixed and variable universal life contracts and fixed and variable deferred annuity contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used, and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses, and persistency are reasonably likely to impact significantly the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. 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. 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 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 changes and only changes the assumption when its long-term expectation changes. The Company also reviews periodically other long-term assumptions underlying the projections of estimated gross profits. These include investment returns, interest crediting rates, mortality, persistency, and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross profits which may have significantly changed. If the update of assumptions causes expected future gross 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 profits to decrease. Prior to 2007, DAC related to any internally replaced contract was generally expensed at the date of replacement. As described more fully in "Adoption of New Accounting Pronouncements", effective January 1, 2007, the Company adopted Statement of Position ("SOP") 05-1, Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts ("SOP 05-1"). Under SOP 05-1, an internal replacement is defined as a modification in 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 the modification substantially changes the contract, the DAC is written off F-15 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) 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 amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Sales Inducements The Company 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. Goodwill Goodwill is the excess of cost over the fair value of net assets acquired. Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test. Impairment testing is performed using the fair value approach, which requires the use of estimates and judgment, at the "reporting unit" level. A reporting unit 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, goodwill within Corporate & Other is allocated to reporting units within the Company's business segments. If the carrying value of a reporting unit's goodwill exceeds its fair value, the excess is recognized as an impairment and recorded as a charge against net income. The fair values of the reporting units are determined using a market multiple or a discounted cash flow model. The critical estimates necessary in determining fair value are projected earnings, comparative market multiples and the discount rate. Liability for Future Policy Benefits and Policyholder Account Balances The Company establishes liabilities for amounts payable under insurance policies, including traditional life insurance, traditional annuities and non- medical health insurance. 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, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. Utilizing these assumptions, liabilities are established on a block of business basis. Future policy benefit liabilities for non-participating traditional life insurance policies are equal to the aggregate of the present value of expected future benefit payments and related expenses less the present value of expected future net premiums. Assumptions as to mortality and persistency are based upon the Company's experience when the basis of the liability is established. Interest rates for future policy benefit liabilities on non-participating traditional life insurance range from 3% to 8%. Future policy benefit liabilities for individual and group traditional fixed annuities after annuitization are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 4% to 11%. Future policy benefit liabilities for non-medical health insurance are calculated using the net level premium method and assumptions as to future morbidity, withdrawals and interest, which provide a margin for adverse deviation. Interest rates used in establishing such liabilities range from 4% to 7%. F-16 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) Future policy benefit liabilities for disabled lives are estimated using the present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rates used in establishing such liabilities range from 3% to 6%. Liabilities for unpaid claims and claim expenses for the Company's workers' compensation business are included in future policyholder benefits and are estimated based upon the Company's historical experience and other actuarial assumptions that consider the effects of current developments, anticipated trends and risk management programs, reduced for anticipated subrogation. The effects of changes in such estimated liabilities are included in the results of operations in the period in which the changes occur. The Company establishes future policy benefit liabilities for minimum death and income benefit guarantees relating to certain annuity contracts and secondary guarantees relating to certain life policies as follows: - Annuity guaranteed minimum death benefit ("GMDB") liabilities are determined by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. The assumptions used in estimating the GMDB liabilities are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. The assumptions of investment performance and volatility are consistent with the historical experience of the Standard & Poor's 500 Index ("S&P"). The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. - Guaranteed minimum income benefit ("GMIB") liabilities are determined by estimating the expected value of the income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. The assumptions used for estimating the GMIB liabilities are consistent with those used for estimating the GMDB liabilities. In addition, the calculation of guaranteed annuitization benefit liabilities incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder. Liabilities for universal and variable life secondary 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 Company regularly evaluates estimates used and adjusts the additional liability balances, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. The assumptions used in estimating the secondary guarantee liabilities are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. The assumptions of investment performance and volatility for variable products are consistent with historical S&P experience. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The Company establishes policyholder account balances for guaranteed minimum benefit riders relating to certain variable annuity products as follows: - Guaranteed minimum withdrawal benefit riders ("GMWB") guarantee the contractholder a return of their purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that the contractholder's cumulative withdrawals in a contract year do not exceed a certain limit. The initial guaranteed withdrawal amount is equal to the initial benefit base as defined in the contract (typically, the initial purchase payments plus applicable bonus amounts). The GMWB is an embedded derivative, which is measured at fair value separately from the host variable annuity product. F-17 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) - Guaranteed minimum accumulation benefit riders ("GMAB") provide the contractholder, after a specified period of time determined at the time of issuance of the variable annuity contract, with a minimum accumulation of their purchase payments even if the account value is reduced to zero. The initial guaranteed accumulation amount is equal to the initial benefit base as defined in the contract (typically, the initial purchase payments plus applicable bonus amounts). The GMAB is also an embedded derivative, which is measured at fair value separately from the host variable annuity product. - For both GMWB and GMAB, the initial benefit base is increased by additional purchase payments made within a certain time period and decreases by benefits paid and/or withdrawal amounts. After a specified period of time, the benefit base may also increase as a result of an optional reset as defined in the contract. The fair values of the GMWB and GMAB riders are calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior. In measuring the fair value of GMWBs and GMABs, the Company attributes a portion of the fees collected from the policyholder equal to the present value of expected future guaranteed minimum withdrawal and accumulation benefits (at inception). The changes in fair value are reported in net investment gains (losses). Any additional fees represent "excess" fees and are reported in universal life and investment-type product policy fees. These riders may be more costly than expected in volatile or declining markets, causing an increase in liabilities for future policy benefits, negatively affecting net income. The Company issues both GMWBs and GMABs directly and assumes risk relating to GMWBs and GMABs issued by an affiliate through a financing agreement. Some of the risks associated with GMWBs and GMABs directly written and assumed were transferred to a different affiliate through another financing agreement and are included in premiums and other receivables. The Company periodically reviews its estimates of actuarial liabilities for future policy benefits and compares them with its actual experience. Differences between actual experience and the assumptions used in pricing these policies, guarantees and riders and in the establishment of the related liabilities result in variances in profit and could result in losses. The effects of changes in such estimated liabilities are included in the results of operations in the period in which the changes occur. Policyholder account balances relate to investment-type contracts and universal life-type policies. Investment-type contracts principally include traditional individual fixed annuities in the accumulation phase and non- variable group annuity contracts. Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments; (ii) credited interest, ranging from 1% to 13%, less expenses, mortality charges, and withdrawals; and (iii) fair value purchase accounting adjustments relating to the Acquisition. Other Policyholder Funds Other policyholder funds include policy and contract claims, and unearned revenue liabilities. The liability for policy and contract claims generally relates to incurred but not reported death, disability, and long-term care ("LTC") claims as well as claims which have been reported but not yet settled. The liability for these claims is based on the Company's estimated ultimate cost of settling all claims. The Company derives estimates for the development of incurred but not reported claims principally from actuarial analyses of historical patterns of claims and claims development for each line of business. The methods used to determine these estimates are continually reviewed. Adjustments resulting from this continuous review process and differences between estimates and payments for claims are recognized in policyholder benefits and claims expense in the period in which the estimates are changed or payments are made. The unearned revenue liability relates to universal life-type and investment-type products and represents policy charges for services to be provided in future periods. The charges are deferred as unearned revenue and F-18 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) amortized using the product's estimated gross profits, similar to DAC. Such amortization is recorded in universal life and investment-type product policy fees. Recognition of Insurance Revenue and Related Benefits Premiums related to traditional life and annuity policies with life contingencies are recognized as revenues when due from policyholders. Policyholder benefits and expenses are provided against such revenues to recognize profits over the estimated lives of the 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 operations in a constant relationship to insurance in-force or, for annuities, the amount of expected future policy benefit payments. Premiums related to non-medical health and disability contracts are recognized on a pro rata basis over the applicable contract term. Deposits related to universal life-type and investment-type products are credited to policyholder account balances. Revenues from such contracts consist of amounts assessed against policyholder account balances 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 operations include interest credited and benefit claims incurred in excess of related policyholder account balances. Premiums related to workers' compensation contracts are recognized as revenue on a pro rata basis over the applicable contract term. Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. Other Revenues Other revenues include advisory fees, broker-dealer commissions and fees, and administrative service fees. Such fees and commissions are recognized in the period in which services are performed. Income Taxes MetLife Insurance Company of Connecticut files a consolidated U.S. federal income tax return with its includable subsidiaries in accordance with the provisions of the Internal Revenue Code of 1986, as amended (the "Code"). Non- includable subsidiaries file either separate individual corporate tax returns or separate consolidated tax returns. Prior to the transfer of MLI-USA to MetLife Insurance Company of Connecticut, MLI-USA joined MetLife's includable subsidiaries in filing a federal income tax return. MLI-USA joined MetLife Insurance Company of Connecticut's includable subsidiaries as of October 11, 2006. 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. In connection with the Acquisition, for U.S. federal income tax purposes, an election in 2005 under Internal Revenue Code Section 338 was made by the Company's parent, MetLife. As a result of this election, the tax basis in the acquired assets and liabilities was adjusted as of the Acquisition Date and the related deferred tax asset established for the taxable difference from the book basis. The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when management determines, based on available information, that it is more likely than not that F-19 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established as well as the amount of such allowances. When making such determination, consideration is given to, among other things, the following: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. The Company may be required to change its provision for income taxes in certain circumstances. Examples of such circumstances include when the ultimate deductibility of certain items is challenged by taxing authorities (See also Note 11) or when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, future events, such as changes in tax laws, tax regulations, or interpretations of such laws or regulations, could have an impact on the provision for income tax and the effective tax rate. Any such changes could significantly affect the amounts reported in the consolidated financial statements in the year these changes occur. As described more fully in "Adoption of New Accounting Pronouncements", the Company adopted FIN No. 48, Accounting for Uncertainty in Income Taxes -- An Interpretation of FASB Statement No. 109 ("FIN 48") effective January 1, 2007. Under FIN 48, the Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent 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. Reinsurance The Company enters into reinsurance transactions as both a provider and a purchaser of reinsurance for its life insurance products. For each of its reinsurance contracts, the Company determines if the contract provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. The Company reviews all contractual features, particularly 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 contract. The net cost of reinsurance is recorded as an adjustment to DAC and recognized as a component of other expenses on a basis consistent with the way the acquisition costs on the underlying reinsured contracts would be recognized. 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) future policy benefit liabilities are established. The assumptions used to account for long-duration reinsurance contracts are consistent with those used for the underlying contracts. Ceded policyholder and contract related liabilities, other than those currently due, are reported gross on the balance sheet. F-20 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) Amounts currently recoverable under reinsurance contracts are included in premiums and other receivables and amounts currently payable are included in other liabilities. Such assets and liabilities relating to reinsurance contracts with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance contract. Premiums, fees and policyholder benefits and claims include amounts assumed under reinsurance contracts and are net of reinsurance ceded. If the Company determines that a reinsurance contract does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the contract using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within other assets. 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. Amounts received from reinsurers for policy administration are reported in other revenues. Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed previously. Separate Accounts Separate accounts are established in conformity with insurance laws and are generally not chargeable with liabilities that arise from any other business of the Company. Separate account assets are subject to general account claims only to the extent the value of such assets exceeds the separate account liabilities. The Company reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separate accounts if (i) such separate accounts are legally recognized; (ii) assets supporting the contract liabilities are legally insulated from the Company's general account liabilities; (iii) investments are directed by the contractholder; and (iv) all investment performance, net of contract fees and assessments, is passed through to the contractholder. The Company reports separate account assets meeting such criteria at their fair value. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line in the consolidated statements of income. 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. Separate accounts not meeting the above criteria are combined on a line-by-line basis with the Company's general account assets, liabilities, revenues and expenses. Employee Benefit Plans Eligible employees, sales representatives and retirees of the Company are provided pension, postretirement and postemployment benefits under plans sponsored and administered by Metropolitan Life Insurance Company ("MLIC"), an affiliate of the Company. The Company's obligation and expense related to these benefits is limited to the amount of associated expense allocated from MLIC. F-21 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) Foreign Currency Balance sheet accounts of foreign operations are translated at the exchange rates in effect at each year-end and income and expense accounts are translated at the average rates of exchange prevailing during the year. The functional currencies of foreign operations are the currencies in which these operations principally do business, typically local currencies, unless the local economy is highly inflationary. Translation adjustments are charged or credited directly to other comprehensive income or loss. Gains and losses from foreign currency transactions are reported as net investment gains (losses) in the period in which they occur. Discontinued Operations The results of operations of a component of the Company that either has been disposed of or is classified as held-for-sale are reported in discontinued operations if the operations and cash flows of the component have been or will be eliminated from the ongoing operations of the Company as a result of the disposal transaction and the Company will not have any significant continuing involvement in the operations of the component after the disposal transaction. Litigation Contingencies The Company is a party to legal actions and is involved in 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. On a quarterly and annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected in the Company's consolidated financial statements. It is possible that an adverse outcome in certain matters, or the use of different assumptions in the determination of amounts recorded, could have a material adverse effect upon the Company's consolidated net income or cash flows in particular quarterly or annual periods. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS Income Taxes Effective January 1, 2007, the Company adopted FIN 48. FIN 48 clarifies the accounting for uncertainty in income tax recognized in a company's financial statements. FIN 48 requires companies to determine whether it is "more likely than not" that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. It also provides guidance on the recognition, measurement, and classification of income tax uncertainties, along with any related interest and penalties. Previously recorded income tax benefits that no longer meet this standard are required to be charged to earnings in the period that such determination is made. The adoption of FIN 48 did not have a material impact on the Company's consolidated financial statements. See also Note 11. Insurance Contracts Effective January 1, 2007, the Company adopted SOP 05-1 which provides guidance on accounting by insurance enterprises for DAC on internal replacements of insurance and investment contracts other than those specifically described in Statement of Financial Accounting Standards ("SFAS") No. 97, Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments. SOP 05-1 defines an internal replacement and is effective for internal replacements occurring in fiscal years beginning after December 15, 2006. In addition, in February 2007, the American Institute of Certified Public Accountants ("AICPA") issued related Technical Practice Aids ("TPAs") to provide further clarification of SOP 05-1. The TPAs became effective concurrently with the adoption of SOP 05-1. F-22 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) As a result of the adoption of SOP 05-1 and the related TPAs, if an internal replacement modification substantially changes a contract, then the DAC is written off immediately through income and any new deferrable costs associated with the new replacement are deferred. If a contract modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are immediately expensed. The adoption of SOP 05-1 and the related TPAs resulted in a reduction to DAC and VOBA on January 1, 2007 and an acceleration of the amortization period relating primarily to the Company's group life and non-medical health insurance contracts that contain certain rate reset provisions. Prior to the adoption of SOP 05-1, DAC on such contracts was amortized over the expected renewable life of the contract. Upon adoption of SOP 05-1, DAC on such contracts is to be amortized over the rate reset period. The impact as of January 1, 2007 was a cumulative effect adjustment of $86 million, net of income tax of $46 million, which was recorded as a reduction to retained earnings. Derivative Financial Instruments The Company has adopted guidance relating to derivative financial instruments as follows: - Effective January 1, 2006, the Company adopted prospectively SFAS No. 155, Accounting for Certain Hybrid Instruments ("SFAS 155"). SFAS 155 amends SFAS No. 133, Accounting for Derivative Instruments and Hedging ("SFAS 133") and SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities ("SFAS 140"). SFAS 155 allows financial instruments that have embedded derivatives to be accounted for as a whole, eliminating the need to bifurcate the derivative from its host, if the holder elects to account for the whole instrument on a fair value basis. In addition, among other changes, SFAS 155: (i) clarifies which interest-only strips and principal-only strips are not subject to the requirements of SFAS 133; (ii) establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; (iii) clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and (iv) amends SFAS 140 to eliminate the prohibition on a qualifying special-purpose entity ("QSPE") from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial interest. The adoption of SFAS 155 did not have a material impact on the Company's consolidated financial statements. - Effective October 1, 2006, the Company adopted SFAS 133 Implementation Issue No. B40, Embedded Derivatives: Application of Paragraph 13(b) to Securitized Interests in Prepayable Financial Assets ("Issue B40"). Issue B40 clarifies that a securitized interest in prepayable financial assets is not subject to the conditions in paragraph 13(b) of SFAS 133, if it meets both of the following criteria: (i) the right to accelerate the settlement if the securitized interest cannot be controlled by the investor; and (ii) the securitized interest itself does not contain an embedded derivative (including an interest rate-related derivative) for which bifurcation would be required other than an embedded derivative that results solely from the embedded call options in the underlying financial assets. The adoption of Issue B40 did not have a material impact on the Company's consolidated financial statements. - Effective January 1, 2006, the Company adopted prospectively SFAS 133 Implementation Issue No. B38, Embedded Derivatives: Evaluation of Net Settlement with Respect to the Settlement of a Debt Instrument F-23 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) through Exercise of an Embedded Put Option or Call Option ("Issue B38") and SFAS 133 Implementation Issue No. B39, Embedded Derivatives: Application of Paragraph 13(b) to Call Options That Are Exercisable Only by the Debtor ("Issue B39"). Issue B38 clarifies that the potential settlement of a debtor's obligation to a creditor occurring upon exercise of a put or call option meets the net settlement criteria of SFAS 133. Issue B39 clarifies that an embedded call option, in which the underlying is an interest rate or interest rate index, that can accelerate the settlement of a debt host financial instrument should not be bifurcated and fair valued if the right to accelerate the settlement can be exercised only by the debtor (issuer/borrower) and the investor will recover substantially all of its initial net investment. The adoption of Issues B38 and B39 did not have a material impact on the Company's consolidated financial statements. Other Effective January 1, 2007, the Company adopted SFAS No. 156, Accounting for Servicing of Financial Assets -- an amendment of FASB Statement No. 140 ("SFAS 156"). Among other requirements, SFAS 156 requires an entity to recognize a servicing asset or servicing liability each time it undertakes an obligation to service a financial asset by entering into a servicing contract in certain situations. The adoption of SFAS 156 did not have an impact on the Company's consolidated financial statements. Effective November 15, 2006, the Company adopted U.S. Securities and Exchange Commission ("SEC") Staff Accounting Bulletin ("SAB") No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements ("SAB 108"). SAB 108 provides guidance on how prior year misstatements should be considered when quantifying misstatements in current year financial statements for purposes of assessing materiality. SAB 108 requires that registrants quantify errors using both a balance sheet and income statement approach and evaluate whether either approach results in quantifying a misstatement that, when relevant quantitative and qualitative factors are considered, is material. SAB 108 permits companies to initially apply its provisions by either restating prior financial statements or recording a cumulative effect adjustment to the carrying values of assets and liabilities as of January 1, 2006 with an offsetting adjustment to retained earnings for errors that were previously deemed immaterial but are material under the guidance in SAB 108. The adoption of SAB 108 did not have a material impact on the Company's consolidated financial statements. Effective January 1, 2006, the Company adopted SFAS No. 154, Accounting Changes and Error Corrections, a replacement of APB Opinion No. 20 and FASB Statement No. 3 ("SFAS 154"). SFAS 154 requires retrospective application to prior periods' financial statements for a voluntary change in accounting principle unless it is deemed impracticable. It also requires that a change in the method of depreciation, amortization, or depletion for long-lived, non- financial assets be accounted for as a change in accounting estimate rather than a change in accounting principle. The adoption of SFAS 154 did not have a material impact on the Company's consolidated financial statements. In June 2005, the Emerging Issues Task Force ("EITF") reached consensus on Issue No. 04-5, Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights ("EITF 04-5"). EITF 04-5 provides a framework for determining whether a general partner controls and should consolidate a limited partnership or a similar entity in light of certain rights held by the limited partners. The consensus also provides additional guidance on substantive rights. EITF 04-5 was effective after June 29, 2005 for all newly formed partnerships and for any pre-existing limited partnerships that modified their partnership agreements after that date. For all other limited partnerships, EITF 04-5 required adoption by January 1, 2006 through a cumulative effect of a change in accounting principle recorded in opening equity or applied retrospectively by adjusting prior period financial statements. The adoption of the provisions of EITF 04-5 did not have a material impact on the Company's consolidated financial statements. Effective November 9, 2005, the Company prospectively adopted the guidance in FASB Staff Position ("FSP") No. FAS 140-2, Clarification of the Application of Paragraphs 40(b) and 40(c) of FAS 140 ("FSP 140-2"). F-24 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) FSP 140-2 clarified certain criteria relating to derivatives and beneficial interests when considering whether an entity qualifies as a QSPE. Under FSP 140- 2, the criteria must only be met at the date the QSPE issues beneficial interests or when a derivative financial instrument needs to be replaced upon the occurrence of a specified event outside the control of the transferor. The adoption of FSP 140-2 did not have a material impact on the Company's consolidated financial statements. Effective July 1, 2005, the Company adopted SFAS No. 153, Exchanges of Nonmonetary Assets, an amendment of APB Opinion No. 29 ("SFAS 153"). SFAS 153 amended prior guidance to eliminate the exception for nonmonetary exchanges of similar productive assets and replaced it with a general exception for exchanges of nonmonetary assets that do not have commercial substance. A nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange. The provisions of SFAS 153 were required to be applied prospectively for fiscal periods beginning after June 15, 2005. The adoption of SFAS 153 did not have a material impact on the Company's consolidated financial statements. In June 2005, the FASB completed its review of EITF Issue No. 03-1, The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments ("EITF 03-1"). EITF 03-1 provides accounting guidance regarding the determination of when an impairment of debt and marketable equity securities and investments accounted for under the cost method should be considered other-than- temporary and recognized in income. EITF 03-1 also requires certain quantitative and qualitative disclosures for debt and marketable equity securities classified as available-for-sale or held-to-maturity under SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities, that are impaired at the balance sheet date but for which an other-than-temporary impairment has not been recognized. The FASB decided not to provide additional guidance on the meaning of other-than-temporary impairment but has issued FSP Nos. FAS 115-1 and FAS 124-1, The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments ("FSP 115-1"), which nullifies the accounting guidance on the determination of whether an investment is other-than-temporarily impaired as set forth in EITF 03-1. As required by FSP 115-1, the Company adopted this guidance on a prospective basis, which had no material impact on the Company's consolidated financial statements, and has provided the required disclosures. FUTURE ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS Fair Value In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements ("SFAS 157"). SFAS 157 defines fair value, establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. Effective January 1, 2008, the Company adopted SFAS 157 and applied the provisions of the statement prospectively to assets and liabilities measured and disclosed at fair value. In addition to new disclosure requirements, the adoption of SFAS 157 changes the valuation of certain freestanding derivatives by moving from a mid to bid pricing convention as well as changing the valuation of embedded derivatives associated with annuity contracts. The change in valuation of embedded derivatives associated with annuity contracts results from the incorporation of risk margins and the Company's own credit standing in their valuation. As a result of the adoption of SFAS 157 on January 1, 2008, the Company expects such changes to result in a gain in the range of $30 million to $50 million, net of income tax, in the Company's consolidated statement of income. In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities ("SFAS 159"). SFAS 159 permits entities the option to measure most financial instruments and certain other items at fair value at specified election dates and to report related unrealized gains and losses in earnings. The fair value option is generally applied on an instrument-by-instrument basis and is generally an irrevocable election. Effective January 1, 2008, the Company did not elect the fair value option for any instruments. Accordingly, there was no impact on the Company's retained earnings or equity as of January 1, 2008. F-25 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) In June 2007, the AICPA issued SOP 07-1, Clarification of the Scope of the Audit and Accounting Guide Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies ("SOP 07-1"). Upon adoption of SOP 07-1, the Company must also adopt the provisions of FASB Staff Position FSP No. FIN 46(r)-7, Application of FASB Interpretation No. 46 to Investment Companies ("FSP FIN 46(r)-7"), which permanently exempts investment companies from applying the provisions of FIN No. 46(r), Consolidation of Variable Interest Entities -- An Interpretation of Accounting Research Bulletin No. 51, and its December 2003 revision ("FIN 46(r)") to investments carried at fair value. SOP 07-1 provides guidance for determining whether an entity falls within the scope of the AICPA Audit and Accounting Guide Investment Companies and whether investment company accounting should be retained by a parent company upon consolidation of an investment company subsidiary or by an equity method investor in an investment company. In certain circumstances, SOP 07-1 precludes retention of specialized accounting for investment companies (i.e., fair value accounting), when similar direct investments exist in the consolidated group and are measured on a basis inconsistent with that applied to investment companies. Additionally, SOP 07-1 precludes retention of specialized accounting for investment companies if the reporting entity does not distinguish through documented policies the nature and type of investments to be held in the investment companies from those made in the consolidated group where other accounting guidance is being applied. In February 2008, the FASB issued FSP No. SOP 7-1-1, Effective Date of AICPA Statement of Position 07-1, which delays indefinitely the effective date of SOP 07-1. The Company is closely monitoring further FASB developments. In May 2007, the FASB issued FSP No. FIN 39-1, Amendment of FASB Interpretation No. 39 ("FSP 39-1"). FSP 39-1 amends FIN No. 39, Offsetting of Amounts Related to Certain Contracts ("FIN 39"), to permit a reporting entity to offset fair value amounts recognized for the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement that have been offset in accordance with FIN 39. FSP 39-1 also amends FIN 39 for certain terminology modifications. FSP 39-1 applies to fiscal years beginning after November 15, 2007. FSP 39-1 will be applied retrospectively, unless it is impracticable to do so. Upon adoption of FSP 39-1, the Company is permitted to change its accounting policy to offset or not offset fair value amounts recognized for derivative instruments under master netting arrangements. The adoption of FSP 39-1 will not have an impact on the Company's financial statements. Business Combinations In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combinations -- A Replacement of FASB Statement No. 141 ("SFAS 141(r)") and SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements -- An Amendment of ARB No. 51 ("SFAS 160") which are effective for fiscal years beginning after December 15, 2008. Under SFAS 141(r) and SFAS 160: - All business combinations (whether full, partial, or "step" acquisitions) result in all assets and liabilities of an acquired business being recorded at fair value, with limited exceptions. - Acquisition costs are generally expensed as incurred; restructuring costs associated with a business combination are generally expensed as incurred subsequent to the acquisition date. - The fair value of the purchase price, including the issuance of equity securities, is determined on the acquisition date. - Certain acquired contingent liabilities are recorded at fair value at the acquisition date and subsequently measured at either the higher of such amount or the amount determined under existing guidance for non-acquired contingencies. - Changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date generally affect income tax expense. F-26 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) - Noncontrolling interests (formerly known as "minority interests") are valued at fair value at the acquisition date and are presented as equity rather than liabilities. - When control is attained on previously noncontrolling interests, the previously held equity interests are remeasured at fair value and a gain or loss is recognized. - Purchases or sales of equity interests that do not result in a change in control are accounted for as equity transactions. - When control is lost in a partial disposition, realized gains or losses are recorded on equity ownership sold and the remaining ownership interest is remeasured and holding gains or losses are recognized. The pronouncements are effective for fiscal years beginning on or after December 15, 2008 and apply prospectively to business combinations. Presentation and disclosure requirements related to noncontrolling interests must be retrospectively applied. The Company is currently evaluating the impact of SFAS 141(r) on its accounting for future acquisitions and the impact of SFAS 160 on its consolidated financial statements. Other In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities -- An Amendment of FASB Statement No. 133 ("SFAS 161"). SFAS 161 requires enhanced qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. SFAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The Company is currently evaluating the impact of SFAS 161 on its consolidated financial statements. In February 2008, the FASB issued FSP No. FAS 140-3, Accounting for Transfers of Financial Assets and Repurchase Financing Transactions ("FSP 140- 3"). FSP 140-3 provides guidance for evaluating whether to account for a transfer of a financial asset and repurchase financing as a single transaction or as two separate transactions. FSP 140-3 is effective prospectively for financial statements issued for fiscal years beginning after November 15, 2008. The Company is currently evaluating the impact of FSP 140-3 on its consolidated financial statements. In January 2008, the FASB cleared SFAS 133 Implementation Issue E23, Clarification of the Application of the Shortcut Method ("Issue E23"). Issue E23 amends SFAS 133 by permitting interest rate swaps to have a non-zero fair value at inception, as long as the difference between the transaction price (zero) and the fair value (exit price), as defined by SFAS 157, is solely attributable to a bid-ask spread. In addition, entities would not be precluded from assuming no ineffectiveness in a hedging relationship of interest rate risk involving an interest bearing asset or liability in situations where the hedged item is not recognized for accounting purposes until settlement date as long as the period between trade date and settlement date of the hedged item is consistent with generally established conventions in the marketplace. Issue E23 is effective for hedging relationships designated on or after January 1, 2008. The Company does not expect the adoption of Issue E23 to have a material impact on its consolidated financial statements. In December 2007, the FASB ratified as final the consensus on EITF Issue No. 07-6, Accounting for the Sale of Real Estate When the Agreement Includes a Buy-Sell Clause ("EITF 07-6"). EITF 07-6 addresses whether the existence of a buy-sell arrangement would preclude partial sales treatment when real estate is sold to a jointly owned entity. The consensus concludes that the existence of a buy-sell clause does not necessarily preclude partial sale treatment under current guidance. EITF 07-6 applies prospectively to new arrangements entered into and assessments on existing transactions performed in fiscal years beginning after December 15, 2008. The Company does not expect the adoption of EITF 07-6 to have a material impact on its consolidated financial statements. F-27 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) 2. ACQUISITION OF METLIFE INSURANCE COMPANY OF CONNECTICUT BY METLIFE, INC. FROM CITIGROUP INC. On the Acquisition Date, MetLife Insurance Company of Connecticut became a subsidiary of MetLife. MetLife Insurance Company of Connecticut, together with substantially all of Citigroup's international insurance businesses, excluding Primerica, were acquired by MetLife from Citigroup for $12.1 billion. Prior to the Acquisition, MetLife Insurance Company of Connecticut was a subsidiary of Citigroup Insurance Holding Company ("CIHC"). Primerica was distributed via dividend from MetLife Insurance Company of Connecticut to CIHC on June 30, 2005 in contemplation of the Acquisition. The total consideration paid by MetLife for the purchase consisted of $11.0 billion in cash and 22,436,617 shares of MetLife's common stock with a market value of $1.0 billion to Citigroup and $100 million in other transaction costs. In accordance with FASB SFAS No. 141, Business Combinations, and SFAS No. 142, Goodwill and Other Intangible Assets, the Acquisition was accounted for by MetLife using the purchase method of accounting, which requires that the assets and liabilities of MetLife Insurance Company of Connecticut be identified and measured at their fair value as of the acquisition date. As of July 1, 2005 the net fair value of assets acquired and liabilities assumed totaled $5.9 billion, resulting in goodwill of $885 million. Further information on goodwill is described in Note 7. See Note 6 for the VOBA acquired as part of the acquisition and Note 8 for the value of distribution agreements ("VODA") and the value of customer relationships acquired ("VOCRA"). 3. CONTRIBUTION OF METLIFE INSURANCE COMPANY OF CONNECTICUT FROM METLIFE, INC. On October 11, 2006, MetLife Insurance Company of Connecticut and MetLife Investors Group, Inc. ("MLIG"), both subsidiaries of MetLife, entered into a transfer agreement ("Transfer Agreement"), pursuant to which MetLife Insurance Company of Connecticut agreed to acquire all of the outstanding stock of MLI-USA from MLIG in exchange for shares of MetLife Insurance Company of Connecticut's common stock. To effectuate the exchange of shares, MetLife returned 10,000,000 shares just prior to the closing of the transaction and retained 30,000,000 shares representing 100% of the then issued and outstanding shares of MetLife Insurance Company of Connecticut. MetLife Insurance Company of Connecticut issued 4,595,317 new shares to MLIG in exchange for all of the outstanding common stock of MLI-USA. After the closing of the transaction, 34,595,317 shares of MetLife Insurance Company of Connecticut's common stock are outstanding, of which MLIG holds 4,595,317 shares, with the remaining shares held by MetLife. In connection with the Transfer Agreement on October 11, 2006, MLIG transferred to MetLife Insurance Company of Connecticut certain assets and liabilities, including goodwill, VOBA and deferred income tax liabilities, which remain outstanding from MetLife's acquisition of MLIG on October 30, 1997. The assets and liabilities have been included in the financial data of the Company for all periods presented. The transfer of MLI-USA to MetLife Insurance Company of Connecticut was a transaction between entities under common control. Since MLI-USA was the original entity under common control, for financial statement reporting purposes, MLI-USA is considered the accounting acquirer of MetLife Insurance Company of Connecticut. Accordingly, all financial data included in these financial statement periods prior to July 1, 2005 is that of MLI-USA. For periods subsequent to July 1, 2005, MetLife Insurance Company of Connecticut has been combined with MLI-USA in a manner similar to a pooling of interests. F-28 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) The equity of MetLife Insurance Company of Connecticut has been adjusted to reflect the return of the MetLife Insurance Company of Connecticut common stock by MetLife in connection with the transfer of MLI-USA to MetLife Insurance Company of Connecticut as follows:
ACCUMULATED OTHER COMPREHENSIVE INCOME ---------------- ADDITIONAL NET UNREALIZED COMMON PAID-IN RETAINED INVESTMENT GAINS STOCK CAPITAL EARNINGS (LOSSES) TOTAL ------ ---------- -------- ---------------- ------ MetLife Insurance Company of Connecticut's common stock purchased by MetLife in the Acquisition on July 1, 2005... $100 $6,684 $-- $-- $6,784 Return of MetLife Insurance Company of Connecticut's common stock from MetLife..... (25)(1) 25 -- -- -- ---- ------ --- --- ------ MetLife Insurance Company of Connecticut's common stock purchased by MetLife on July 1, 2005, as adjusted.......... $ 75 $6,709 $-- $-- $6,784 ==== ====== === === ======
- -------- (1) Represents the return of 10,000,000 shares of MetLife Insurance Company of Connecticut's common stock, at $2.50 par value, by MetLife to MetLife Insurance Company of Connecticut in anticipation of the transfer of MLI- USA to MetLife Insurance Company of Connecticut, for a total adjustment of $25 million. F-29 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) 4. INVESTMENTS FIXED MATURITY AND EQUITY SECURITIES AVAILABLE-FOR-SALE The following tables present the cost or amortized cost, gross unrealized gain and loss, and estimated fair value of the Company's fixed maturity and equity securities, the percentage that each sector represents by the total fixed maturity securities holdings and by the total equity securities holdings at:
DECEMBER 31, 2007 ---------------------------------------------- GROSS COST OR UNREALIZED AMORTIZED ------------- ESTIMATED % OF COST GAIN LOSS FAIR VALUE TOTAL --------- ---- ------ ---------- ----- (IN MILLIONS) U.S. corporate securities............. $17,174 $119 $ 618 $16,675 36.5% Residential mortgage-backed securities.......................... 11,914 98 80 11,932 26.1 Foreign corporate securities.......... 6,536 83 184 6,435 14.1 U.S.Treasury/agency securities........ 3,976 126 11 4,091 9.0 Commercial mortgage-backed securities.......................... 3,182 28 67 3,143 6.9 Asset-backed securities............... 2,236 4 108 2,132 4.7 Foreign government securities......... 635 55 2 688 1.5 State and political subdivision securities.......................... 611 4 40 575 1.2 ------- ---- ------ ------- ----- Total fixed maturity securities..... $46,264 $517 $1,110 $45,671 100.0% ======= ==== ====== ======= ===== Non-redeemable preferred stock........ $ 777 $ 21 $ 63 $ 735 77.2% Common stock.......................... 215 9 7 217 22.8 ------- ---- ------ ------- ----- Total equity securities............. $ 992 $ 30 $ 70 $ 952 100.0% ======= ==== ====== ======= =====
DECEMBER 31, 2006 -------------------------------------------- GROSS COST OR UNREALIZED AMORTIZED ----------- ESTIMATED % OF COST GAIN LOSS FAIR VALUE TOTAL --------- ---- ---- ---------- ----- (IN MILLIONS) U.S. corporate securities.............. $17,331 $101 $424 $17,008 35.5% Residential mortgage-backed securities........................... 11,951 40 78 11,913 24.9 Foreign corporate securities........... 5,563 64 128 5,499 11.5 U.S.Treasury/agency securities......... 5,455 7 126 5,336 11.2 Commercial mortgage-backed securities.. 3,353 19 47 3,325 6.9 Asset-backed securities................ 3,158 14 10 3,162 6.6 Foreign government securities.......... 533 45 5 573 1.2 State and political subdivision securities........................... 1,062 6 38 1,030 2.2 ------- ---- ---- ------- ----- Total fixed maturity securities...... $48,406 $296 $856 $47,846 100.0% ======= ==== ==== ======= ===== Non-redeemable preferred stock......... $ 671 $ 22 $ 9 $ 684 86.0% Common stock........................... 106 6 1 111 14.0 ------- ---- ---- ------- ----- Total equity securities.............. $ 777 $ 28 $ 10 $ 795 100.0% ======= ==== ==== ======= =====
F-30 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) The Company held foreign currency derivatives with notional amounts of $911 million and $472 million to hedge the exchange rate risk associated with foreign denominated fixed maturity securities at December 31, 2007 and 2006, respectively. The Company is not exposed to any significant concentrations of credit risk in its equity securities portfolio. The Company is exposed to concentrations of credit risk related to U.S. Treasury securities and obligations of U.S. government corporations and agencies. Additionally, at December 31, 2007 and 2006, the Company had exposure to fixed maturity securities backed by sub-prime mortgages with estimated fair values of $570 million and $819 million, respectively, and unrealized losses of $45 million and $2 million, respectively. These securities are classified within asset-backed securities in the immediately preceding tables. At December 31, 2007, 14% have been guaranteed by financial guarantors, of which 57% was guaranteed by financial guarantors who remained Aaa rated through February 2008. Overall, at December 31, 2007, $1.2 billion of the estimated fair value of the Company's fixed maturity securities were credit enhanced by financial guarantors of which $537 million, $499 million and $195 million at December 31, 2007, are included within corporate securities, state and political subdivisions and asset-backed securities, respectively, and 84% were guaranteed by financial guarantors who remained Aaa rated through February 2008. The Company held fixed maturity securities at estimated fair values that were below investment grade or not rated by an independent rating agency that totaled $3.8 billion and $3.2 billion at December 31, 2007 and 2006, respectively. These securities had net unrealized gains (losses) of $(94) million and $51 million at December 31, 2007 and 2006, respectively. Non-income producing fixed maturity securities were $1 million and $6 million at December 31, 2007 and 2006, respectively. Net unrealized gains associated with non-income producing fixed maturity securities were less than $1 million and $1 million at December 31, 2007 and 2006, respectively. The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date (excluding scheduled sinking funds), are as follows:
DECEMBER 31, ----------------------------------------------- 2007 2006 ---------------------- ---------------------- AMORTIZED ESTIMATED AMORTIZED ESTIMATED COST FAIR VALUE COST FAIR VALUE --------- ---------- --------- ---------- (IN MILLIONS) Due in one year or less................. $ 1,172 $ 1,163 $ 1,620 $ 1,616 Due after one year through five years... 8,070 8,035 9,843 9,733 Due after five years through ten years.. 7,950 7,858 7,331 7,226 Due after ten years..................... 11,740 11,408 11,150 10,871 ------- ------- ------- ------- Subtotal.............................. 28,932 28,464 29,944 29,446 Mortgage-backed and asset-backed securities............................ 17,332 17,207 18,462 18,400 ------- ------- ------- ------- Total fixed maturity securities....... $46,264 $45,671 $48,406 $47,846 ======= ======= ======= =======
Fixed maturity securities not due at a single maturity date have been included in the above table in the year of final contractual maturity. Actual maturities may differ from contractual maturities due to the exercise of prepayment options. F-31 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) Sales or disposals of fixed maturity and equity securities classified as available-for-sale are as follows:
YEARS ENDED DECEMBER 31, --------------------------- 2007 2006 2005 ------- ------- ------- (IN MILLIONS) Proceeds....................................... $14,826 $23,901 $22,241 Gross investment gains......................... $ 146 $ 73 $ 48 Gross investment losses........................ $ (373) $ (519) $ (347)
UNREALIZED LOSS FOR FIXED MATURITY AND EQUITY SECURITIES AVAILABLE-FOR-SALE The following tables present the estimated fair value and gross unrealized loss of the Company's fixed maturity (aggregated by sector) and equity securities in an unrealized loss position, aggregated by length of time that the securities have been in a continuous unrealized loss position at:
DECEMBER 31, 2007 ------------------------------------------------------------------------------------------ EQUAL TO OR GREATER THAN 12 LESS THAN 12 MONTHS MONTHS TOTAL ---------------------------- ---------------------------- ---------------------------- ESTIMATED GROSS ESTIMATED GROSS ESTIMATED GROSS FAIR VALUE UNREALIZED LOSS FAIR VALUE UNREALIZED LOSS FAIR VALUE UNREALIZED LOSS ---------- --------------- ---------- --------------- ---------- --------------- (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) U.S. corporate securities............ $ 6,643 $316 $ 5,010 $302 $11,653 $ 618 Residential mortgage- backed securities..... 2,374 52 1,160 28 3,534 80 Foreign corporate securities............ 2,350 86 2,234 98 4,584 184 U.S. Treasury/agency securities............ 307 2 343 9 650 11 Commercial mortgage- backed securities..... 417 26 1,114 41 1,531 67 Asset-backed securities............ 1,401 91 332 17 1,733 108 Foreign government securities............ 63 1 62 1 125 2 State and political subdivision securities............ 84 9 387 31 471 40 ------- ---- ------- ---- ------- ------ Total fixed maturity securities......... $13,639 $583 $10,642 $527 $24,281 $1,110 ======= ==== ======= ==== ======= ====== Equity securities....... $ 386 $ 42 $ 190 $ 28 $ 576 $ 70 ======= ==== ======= ==== ======= ====== Total number of securities in an unrealized loss position.............. 2,011 1,487 ======= =======
F-32 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED)
DECEMBER 31, 2006 ------------------------------------------------------------------------------------------ EQUAL TO OR GREATER THAN 12 LESS THAN 12 MONTHS MONTHS TOTAL ---------------------------- ---------------------------- ---------------------------- ESTIMATED GROSS ESTIMATED GROSS ESTIMATED GROSS FAIR VALUE UNREALIZED LOSS FAIR VALUE UNREALIZED LOSS FAIR VALUE UNREALIZED LOSS ---------- --------------- ---------- --------------- ---------- --------------- (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) U.S. corporate securities............ $ 4,895 $104 $ 7,543 $320 $12,438 $424 Residential mortgage- backed securities..... 4,113 20 3,381 58 7,494 78 Foreign corporate securities............ 1,381 29 2,547 99 3,928 128 U.S. Treasury/agency securities............ 2,995 48 1,005 78 4,000 126 Commercial mortgage- backed securities..... 852 6 1,394 41 2,246 47 Asset-backed securities............ 965 3 327 7 1,292 10 Foreign government securities............ 51 1 92 4 143 5 State and political subdivision securities............ 29 2 414 36 443 38 ------- ---- ------- ---- ------- ---- Total fixed maturity securities......... $15,281 $213 $16,703 $643 $31,984 $856 ======= ==== ======= ==== ======= ==== Equity securities....... $ 149 $ 3 $ 188 $ 7 $ 337 $ 10 ======= ==== ======= ==== ======= ==== Total number of securities in an unrealized loss position.............. 1,955 2,318 ======= =======
AGING OF GROSS UNREALIZED LOSS FOR FIXED MATURITY AND EQUITY SECURITIES AVAILABLE-FOR-SALE The following tables present the cost or amortized cost, gross unrealized loss and number of securities for fixed maturity and equity securities, where the estimated fair value had declined and remained below cost or amortized cost by less than 20%, or 20% or more at:
DECEMBER 31, 2007 --------------------------------------------------------------------------------------- COST OR AMORTIZED COST GROSS UNREALIZED LOSS NUMBER OF SECURITIES --------------------------- --------------------------- --------------------------- LESS THAN 20% 20% OR MORE LESS THAN 20% 20% OR MORE LESS THAN 20% 20% OR MORE ------------- ----------- ------------- ----------- ------------- ----------- (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) Less than six months............ $10,721 $484 $ 368 $130 1,923 98 Six months or greater but less than nine months.. 3,011 -- 155 -- 337 -- Nine months or greater but less than twelve months............ 1,560 -- 86 -- 174 -- Twelve months or greater........... 10,261 -- 441 -- 1,375 -- ------- ---- ------ ---- Total............. $25,553 $484 $1,050 $130 ======= ==== ====== ====
F-33 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED)
DECEMBER 31, 2006 --------------------------------------------------------------------------------------- COST OR AMORTIZED COST GROSS UNREALIZED LOSS NUMBER OF SECURITIES --------------------------- --------------------------- --------------------------- LESS THAN 20% 20% OR MORE LESS THAN 20% 20% OR MORE LESS THAN 20% 20% OR MORE ------------- ----------- ------------- ----------- ------------- ----------- (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) Less than six months... $12,922 $ 9 $150 $ 4 1,537 15 Six months or greater but less than nine months............... 568 -- 6 -- 78 1 Nine months or greater but less than twelve months............... 2,134 14 52 4 323 1 Twelve months or greater.............. 17,540 -- 650 -- 2,318 -- ------- --- ---- --- Total................ $33,164 $23 $858 $ 8 ======= === ==== ===
At December 31, 2007 and 2006, $1,050 million and $858 million, respectively, of unrealized losses related to securities with an unrealized loss position of less than 20% of cost or amortized cost, which represented 4% and 3%, respectively, of the cost or amortized cost of such securities. At December 31, 2007, $130 million of unrealized losses related to securities with an unrealized loss position of 20% or more of cost or amortized cost, which represented 27% of the cost or amortized cost of such securities. All of such unrealized losses of $130 million were related to securities that were in an unrealized loss position for a period of less than six months. At December 31, 2006, $8 million of unrealized losses related to securities with an unrealized loss position of 20% or more of cost or amortized cost, which represented 35% of the cost or amortized cost of such securities. Of such unrealized losses of $8 million, $4 million related to securities that were in an unrealized loss position for a period of less than six months. The Company held two fixed maturity and equity securities, each with a gross unrealized loss at December 31, 2007 of greater than $10 million. These securities represented 2%, or $21 million in the aggregate, of the gross unrealized loss on fixed maturity and equity securities. The Company held two fixed maturity and equity securities, each with a gross unrealized loss at December 31, 2006 of greater than $10 million. These securities represented 3%, or $25 million in the aggregate, of the gross unrealized loss on fixed maturity and equity securities. At December 31, 2007 and 2006, the Company had $1.2 billion and $866 million, respectively, of gross unrealized losses related to its fixed maturity and equity securities. These securities are concentrated, calculated as a percentage of gross unrealized loss, as follows:
DECEMBER 31, ----------- 2007 2006 ---- ---- SECTOR: U.S. corporate securities.................................. 52% 49% Foreign corporate securities............................... 16 15 Asset-backed securities.................................... 9 1 Residential mortgage-backed securities..................... 7 9 Commercial mortgage-backed securities...................... 6 5 U.S. Treasury/agency securities............................ 1 15 Other...................................................... 9 6 --- --- Total................................................... 100% 100% === ===
F-34 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED)
DECEMBER 31, ----------- 2007 2006 ---- ---- INDUSTRY: Finance.................................................... 36% 18% Industrial................................................. 23 26 Mortgage-backed............................................ 13 14 Utility.................................................... 8 10 Government................................................. 1 15 Other...................................................... 19 17 --- --- Total................................................... 100% 100% === ===
As described more fully in Note 1, the Company performs a regular evaluation, on a security-by-security basis, of its investment holdings in accordance with its impairment policy in order to evaluate whether such securities are other-than-temporarily impaired. One of the criteria which the Company considers in its other-than-temporary impairment analysis is its intent and ability to hold securities for a period of time sufficient to allow for the recovery of their value to an amount equal to or greater than cost or amortized cost. The Company's intent and ability to hold securities considers broad portfolio management objectives such as asset/liability duration management, issuer and industry segment exposures, interest rate views and the overall total return focus. In following these portfolio management objectives, changes in facts and circumstances that were present in past reporting periods may trigger a decision to sell securities that were held in prior reporting periods. Decisions to sell are based on current conditions or the Company's need to shift the portfolio to maintain its portfolio management objectives including liquidity needs or duration targets on asset/liability managed portfolios. The Company attempts to anticipate these types of changes and if a sale decision has been made on an impaired security and that security is not expected to recover prior to the expected time of sale, the security will be deemed other-than- temporarily impaired in the period that the sale decision was made and an other- than-temporary impairment loss will be recognized. Based upon the Company's current evaluation of the securities in accordance with its impairment policy, the cause of the decline being principally attributable to the general rise in interest rates during the holding period, and the Company's current intent and ability to hold the fixed maturity and equity securities with unrealized losses for a period of time sufficient for them to recover, the Company has concluded that the aforementioned securities are not other-than-temporarily impaired. SECURITIES LENDING The Company participates in a securities lending program whereby blocks of securities, which are included in fixed maturity and equity securities, are loaned to third parties, primarily major brokerage firms. The Company requires a minimum of 102% of the fair value of the loaned securities to be separately maintained as collateral for the loans. Securities with a cost or amortized cost of $9.9 billion and $8.8 billion and an estimated fair value of $9.8 billion and $8.6 billion were on loan under the program at December 31, 2007 and 2006, respectively. Securities loaned under such transactions may be sold or repledged by the transferee. The Company was liable for cash collateral under its control of $10.1 billion and $8.9 billion at December 31, 2007 and 2006, respectively. Security collateral of $40 million and $83 million on deposit from customers in connection with the securities lending transactions at December 31, 2007 and 2006, respectively, may not be sold or repledged and is not reflected in the consolidated financial statements. F-35 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) ASSETS ON DEPOSIT AND ASSETS PLEDGED AS COLLATERAL The Company had investment assets on deposit with regulatory agencies with a fair market value of $22 million and $20 million at December 31, 2007 and 2006, respectively, consisting primarily of fixed maturity and equity securities. Certain of the Company's fixed maturity securities are pledged as collateral for various derivative transactions as described in Note 5. Additionally, the Company has pledged certain of its fixed maturity securities in support of its funding agreements as described in Note 8. MORTGAGE AND CONSUMER LOANS Mortgage and consumer loans are categorized as follows:
DECEMBER 31, ----------------------------------- 2007 2006 ---------------- ---------------- AMOUNT PERCENT AMOUNT PERCENT ------ ------- ------ ------- (IN MILLIONS) Commercial mortgage loans..................... $3,125 71% $2,095 58% Agricultural mortgage loans................... 1,265 29 1,460 41 Consumer loans................................ 22 -- 46 1 ------ --- ------ --- Total....................................... 4,412 100% 3,601 100% === === Less: Valuation allowances.................... 8 6 ------ ------ Total mortgage and consumer loans........... $4,404 $3,595 ====== ======
Mortgage loans are collateralized by properties primarily located in the United States. At December 31, 2007, 26%, 7% and 7% of the value of the Company's mortgage and consumer loans were located in California, Florida and New York, respectively. Generally, the Company, as the lender, only loans up to 75% of the purchase price of the underlying real estate. Information regarding loan valuation allowances for mortgage and consumer loans is as follows:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Balance at January 1,.................................... $ 6 $ 9 $ 1 Additions................................................ 7 3 8 Deductions............................................... (5) (6) -- --- --- --- Balance at December 31,.................................. $ 8 $ 6 $ 9 === === ===
F-36 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) A portion of the Company's mortgage and consumer loans was impaired and consisted of the following:
DECEMBER 31, ----------- 2007 2006 ---- ---- (IN MILLIONS) Impaired loans with valuation allowances..................... $65 $-- Impaired loans without valuation allowances.................. 2 8 --- --- Subtotal................................................... 67 8 Less: Valuation allowances on impaired loans................. 4 -- --- --- Impaired loans............................................. $63 $ 8 === ===
The average investment on impaired loans was $21 million, $32 million and $12 million for the years ended December 31, 2007, 2006 and 2005, respectively. Interest income on impaired loans was $3 million, $1 million and $2 million for the years ended December 31, 2007, 2006 and 2005, respectively. The investment in restructured loans was less than $1 million at December 31, 2007. There was no investment in restructured loans at December 31, 2006. Interest income, recognized on restructured loans, was less than $1 million for both years ended December 31, 2007 and 2006, respectively. There was no interest income on restructured loans for the year ended December 31, 2005. Gross interest income that would have been recorded in accordance with the original terms of such loans amounted to less than $1 million for each of the years ended December 31, 2007 and 2006. There was no gross interest income that would have been recorded in accordance with the original terms of such loans for the year ended December 31, 2005. Mortgage and consumer loans with scheduled payments of 90 days or more past due on which interest is still accruing, had an amortized cost of less than $1 million and $6 million at December 31, 2007 and 2006, respectively. There were no mortgage and consumer loans on which interest no longer accrued at both December 31, 2007 and 2006. There were no mortgage and consumer loans in foreclosure at both December 31, 2007 and 2006. REAL ESTATE HOLDINGS Real estate holdings consisted of the following:
DECEMBER 31, ----------- 2007 2006 ---- ---- (IN MILLIONS) Real estate............................................... $ 86 $ 30 Accumulated depreciation.................................. (11) (1) ---- ---- Net real estate........................................... 75 29 Real estate joint ventures................................ 466 144 ---- ---- Real estate and real estate joint ventures.............. 541 173 Real estate held-for-sale................................. -- 7 ---- ---- Total real estate holdings.............................. $541 $180 ==== ====
Related depreciation expense on real estate was $8 million for the year ended December 31, 2007. Depreciation expense on real estate was less than $1 million for both years ended December 31, 2006 and 2005. There was no depreciation expense related to discontinued operations for the years ended December 31, 2007 and 2005. Depreciation expense related to discontinued operations was less than $1 million of the year ended December 31, 2006. F-37 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) There were no impairments recognized on real estate held-for-sale for the years ended December 31, 2007, 2006 and 2005. The carrying value of non-income producing real estate was $1 million at December 31, 2007. There was no non- income producing real estate at December 31, 2006. The Company did not own any real estate acquired in satisfaction of debt during the years ended December 31, 2007 and 2006. Real estate holdings were categorized as follows:
DECEMBER 31, ----------------------------------- 2007 2006 ---------------- ---------------- AMOUNT PERCENT AMOUNT PERCENT ------ ------- ------ ------- (IN MILLIONS) Development joint ventures.................... $287 53% $ -- --% Real estate investment funds.................. 111 21 93 52 Office........................................ 88 16 46 26 Apartments.................................... 35 6 -- -- Agriculture................................... 19 4 28 15 Land.......................................... 1 -- 1 -- Retail........................................ -- -- 12 7 ---- --- ---- --- Total real estate holdings.................. $541 100% $180 100% ==== === ==== ===
The Company's real estate holdings are primarily located in the United States. At December 31, 2007, 22%, 21%, 6% and 5% of the Company's real estate holdings were located in California, New York, Texas and Florida, respectively. OTHER LIMITED PARTNERSHIP INTERESTS The carrying value of other limited partnership interests (which primarily represent ownership interests in pooled investment funds that make private equity investments in companies in the United States and overseas) was $1.1 billion at both December 31, 2007 and 2006. Included within other limited partnership interests at December 31, 2007 and 2006 were $433 million and $354 million, respectively, of hedge funds. For the years ended December 31, 2007, 2006 and 2005, net investment income from other limited partnership interests included $16 million, $30 million and $4 million, respectively, related to hedge funds. F-38 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) NET INVESTMENT INCOME The components of net investment income are as follows:
YEARS ENDED DECEMBER 31, ------------------------ 2007 2006 2005 ------ ------ ------ (IN MILLIONS) Fixed maturity securities........................... $2,803 $2,719 $1,377 Equity securities................................... 45 17 6 Mortgage and consumer loans......................... 263 182 113 Policy loans........................................ 53 52 26 Real estate and real estate joint ventures.......... 81 29 2 Other limited partnership interests................. 164 238 33 Cash, cash equivalents and short-term investments... 104 137 71 Other............................................... 7 8 -- ------ ------ ------ Total investment income........................... 3,520 3,382 1,628 Less: Investment expenses........................... 627 543 190 ------ ------ ------ Net investment income............................. $2,893 $2,839 $1,438 ====== ====== ======
For the years ended December 31, 2007 and 2006, affiliated investment expense of $36 million and $32 million, respectively, related to investment expenses, is included in the table above. There were no affiliated investment expenses for the year ended December 31, 2005. See "-- Related Party Investment Transactions" for discussion of affiliated net investment income related to short-term investments included in the table above. NET INVESTMENT GAINS (LOSSES) The components of net investment gains (losses) are as follows:
YEARS ENDED DECEMBER 31, ----------------------------- (AS RESTATED, SEE NOTE 20) ------------- ----- ----- 2007 2006 2005 ------------- ----- ----- (IN MILLIONS) Fixed maturity securities......................... $(272) $(497) $(300) Equity securities................................. 15 10 1 Mortgage and consumer loans....................... (2) 7 (9) Real estate and real estate joint ventures........ 1 64 7 Other limited partnership interests............... (19) (1) (1) Sales of businesses............................... -- -- 2 Derivatives....................................... 305 177 (2) Other............................................. (170) (281) 104 ----- ----- ----- Net investment gains (losses) $(142) $(521) $(198) ===== ===== =====
The Company periodically disposes of fixed maturity and equity securities at a loss. Generally, such losses are insignificant in amount or in relation to the cost basis of the investment, are attributable to declines in fair value occurring in the period of the disposition or are as a result of management's decision to sell securities based on current conditions or the Company's need to shift the portfolio to maintain its portfolio management objectives. F-39 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) Losses from fixed maturity and equity securities deemed other-than- temporarily impaired, included within net investment gains (losses), were $30 million and $41 million for the years ended December 31, 2007 and 2006, respectively. There were no losses from fixed maturity and equity securities deemed other-than-temporarily impaired for the year ended December 31, 2005. NET UNREALIZED INVESTMENT GAINS (LOSSES) The components of net unrealized investment gains (losses), included in accumulated other comprehensive income (loss), are as follows:
YEARS ENDED DECEMBER 31, --------------------- 2007 2006 2005 ----- ----- ----- (IN MILLIONS) Fixed maturity securities............................ $(606) $(566) $(639) Equity securities.................................... (38) 17 (4) Derivatives.......................................... (13) (9) (2) Other................................................ 8 7 (19) ----- ----- ----- Subtotal........................................... (649) (551) (664) ----- ----- ----- Amounts allocated from: Insurance liability loss recognition............... -- -- (78) DAC and VOBA....................................... 93 66 102 ----- ----- ----- Subtotal........................................... 93 66 24 ----- ----- ----- Deferred income tax.................................. 195 171 224 ----- ----- ----- Subtotal........................................... 288 237 248 ----- ----- ----- Net unrealized investment gains (losses)............. $(361) $(314) $(416) ===== ===== =====
The changes in net unrealized investment gains (losses) are as follows:
YEARS ENDED DECEMBER 31, --------------------- 2007 2006 2005 ----- ----- ----- (IN MILLIONS) Balance, January 1,.................................. $(314) $(416) $ 30 Unrealized investment gains (losses) during the year............................................... (98) 113 (756) Unrealized investment gains (losses) relating to: Insurance liability gain (loss) recognition........ -- 78 (78) DAC and VOBA....................................... 27 (36) 148 Deferred income tax................................ 24 (53) 240 ----- ----- ----- Balance, December 31,................................ $(361) $(314) $(416) ===== ===== ===== Net change in unrealized investment gains (losses)... $ (47) $ 102 $(446) ===== ===== =====
TRADING SECURITIES MetLife Insurance Company of Connecticut was the majority owner of Tribeca on the Acquisition Date. Tribeca was a feeder fund investment structure whereby the feeder fund invests substantially all of its assets in the master fund, Tribeca Global Convertible Instruments Ltd. The primary investment objective of the master fund is to achieve enhanced risk-adjusted return by investing in domestic and foreign equities and equity-related securities F-40 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) utilizing such strategies as convertible securities arbitrage. At December 31, 2005, the Company was the majority owner of the feeder fund and consolidated the fund within its consolidated financial statements. Net investment income related to the trading activities of Tribeca, which included interest and dividends earned on trading securities in addition to the net realized and unrealized gains (losses), was $12 million and $6 million for the six months ended June 30, 2006 and the year ended December 31, 2005, respectively. During the second quarter of 2006, the Company's ownership interests in Tribeca declined to a position whereby Tribeca is no longer consolidated and, as of June 30, 2006, was accounted for under the equity method of accounting. The equity method investment at December 31, 2006 of $82 million was included in other limited partnership interests. Net investment income related to the Company's equity method investment in Tribeca was $9 million for the six months ended December 31, 2006. VARIABLE INTEREST ENTITIES The following table presents the total assets of and maximum exposure to loss relating to VIEs for which the Company has concluded that it holds significant variable interests but it is not the primary beneficiary and which have not been consolidated:
DECEMBER 31, 2007 ----------------------- MAXIMUM TOTAL EXPOSURE TO ASSETS(1) LOSS(2) --------- ----------- (IN MILLIONS) Asset-backed securitizations........................... $ 1,140 $ 77 Real estate joint ventures(3).......................... 942 44 Other limited partnership interests(4)................. 3,876 418 Trust preferred securities(5).......................... 22,775 546 Other investments(6)................................... 1,600 79 ------- ------ Total................................................ $30,333 $1,164 ======= ======
- -------- (1) The assets of the asset-backed securitizations are reflected at fair value. The assets of the real estate joint ventures, other limited partnership interests, trust preferred securities and other investments are reflected at the carrying amounts at which such assets would have been reflected on the Company's consolidated balance sheet had the Company consolidated the VIE from the date of its initial investment in the entity. (2) The maximum exposure to loss relating to the asset-backed securitizations is equal to the carrying amounts of participation. The maximum exposure to loss relating to real estate joint ventures, other limited partnership interests, trust preferred securities and other investments is equal to the carrying amounts plus any unfunded commitments, reduced by amounts guaranteed by other partners. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (3) Real estate joint ventures include partnerships and other ventures which engage in the acquisition, development, management and disposal of real estate investments. (4) Other limited partnership interests include partnerships established for the purpose of investing in public and private debt and equity securities. (5) Trust preferred securities are complex, uniquely structured investments which contain features of both equity and debt, may have an extended or no stated maturity, and may be callable at the issuer's option after a defined period of time. (6) Other investments include securities that are not trust preferred securities or asset-backed securitizations. F-41 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) RELATED PARTY INVESTMENT TRANSACTIONS As of December 31, 2007 and 2006, the Company held $582 million and $581 million, respectively, of its total invested assets in the MetLife Money Market Pool and the MetLife Intermediate Income Pool which are affiliated partnerships. These amounts are included in short-term investments. Net investment income from these invested assets was $25 million, $29 million and $10 million for the years ended December 31, 2007, 2006 and 2005, respectively. In the normal course of business, the Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Assets transferred to and from affiliates, inclusive of amounts related to reinsurance agreements, are as follows:
YEARS ENDED DECEMBER 31, ---------------------- 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Estimated fair market value of assets transferred to affiliates......................................... $628 $164 $ 79 Amortized cost of assets transferred to affiliates... $629 $164 $ 78 Net investment gains (losses) recognized on transfers.......................................... $ (1) $ -- $ 1 Estimated fair market value of assets transferred from affiliates.................................... $836 $ 89 $830
5. DERIVATIVE FINANCIAL INSTRUMENTS TYPES OF DERIVATIVE FINANCIAL INSTRUMENTS The following table presents the notional amount and current market or fair value of derivative financial instruments held at:
DECEMBER 31, 2007 DECEMBER 31, 2006 ------------------------------- ------------------------------- CURRENT MARKET CURRENT MARKET OR FAIR VALUE OR FAIR VALUE NOTIONAL -------------------- NOTIONAL -------------------- AMOUNT ASSETS LIABILITIES AMOUNT ASSETS LIABILITIES -------- ------ ----------- -------- ------ ----------- (IN MILLIONS) Interest rate swaps................ $12,437 $ 336 $144 $ 8,841 $ 431 $ 70 Interest rate floors............... 12,071 159 -- 9,021 71 -- Interest rate caps................. 10,715 7 -- 6,715 6 -- Financial futures.................. 721 2 5 602 6 1 Foreign currency swaps............. 3,716 788 97 2,723 580 66 Foreign currency forwards.......... 167 2 -- 124 1 -- Options............................ -- 85 1 -- 80 7 Financial forwards................. 1,108 20 -- 900 -- 15 Credit default swaps............... 1,013 5 3 1,231 1 5 ------- ------ ---- ------- ------ ---- Total............................ $41,948 $1,404 $250 $30,157 $1,176 $164 ======= ====== ==== ======= ====== ====
The above table does not include notional amounts for equity futures, equity variance swaps and equity options. At December 31, 2007 and 2006, the Company owned 403 and 290 equity futures, respectively. Fair values of equity futures are included in financial futures in the preceding table. At December 31, 2007 and 2006, the Company owned 122,153 and 85,500 equity variance swaps, respectively. Fair values of equity variance swaps are included in financial forwards in the preceding table. At December 31, 2007 and 2006, the Company owned 821,100 and 1,022,900 equity options, respectively. Fair values of equity options are included in options in the preceding table. F-42 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) The following table presents the notional amount of derivative financial instruments by maturity at December 31, 2007:
REMAINING LIFE ------------------------------------------------------------------------------------- AFTER ONE YEAR AFTER FIVE YEARS ONE YEAR OR LESS THROUGH FIVE YEARS THROUGH TEN YEARS AFTER TEN YEARS TOTAL ---------------- ------------------ ----------------- --------------- ------- (IN MILLIONS) Interest rate swaps.... $ 4,723 $ 4,963 $ 1,352 $1,399 $12,437 Interest rate floors... -- 2,551 9,520 -- 12,071 Interest rate caps..... 8,702 2,013 -- -- 10,715 Financial futures...... 634 -- -- 87 721 Foreign currency swaps................ 20 2,593 836 267 3,716 Foreign currency forwards............. 165 -- -- 2 167 Financial forwards..... -- -- -- 1,108 1,108 Credit default swaps... 205 519 289 -- 1,013 ------- ------- ------- ------ ------- Total................ $14,449 $12,639 $11,997 $2,863 $41,948 ======= ======= ======= ====== =======
Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. The Company also enters into basis swaps to better match the cash flows from assets and related liabilities. In a basis swap, both legs of the swap are floating with each based on a different index. Generally, no cash is exchanged at the outset of the contract and no principal payments are made by either party. A single net payment is usually made by one counterparty at each due date. Basis swaps are included in interest rate swaps in the preceding table. Interest rate caps and floors are used by the Company primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities (duration mismatches), as well as to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level, respectively. In exchange-traded interest rate (Treasury and swap) and equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate and equity securities, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, and to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swap curve performance. The value of interest rate futures is substantially impacted by changes in interest rates and they can be used to modify or hedge existing interest rate risk. F-43 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) Exchange-traded equity futures are used primarily to hedge liabilities embedded in certain variable annuity products offered by the Company. Foreign currency derivatives, including foreign currency swaps, foreign currency forwards and currency option contracts, are used by the Company to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a forward exchange rate calculated by reference to an agreed upon principal amount. The principal amount of each currency is exchanged at the inception and termination of the currency swap by each party. In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made in a different currency at the specified future date. The Company enters into currency option contracts that give it the right, but not the obligation, to sell the foreign currency amount in exchange for a functional currency amount within a limited time at a contracted price. The contracts may also be net settled in cash, based on differentials in the foreign exchange rate and the strike price. Currency option contracts are included in options in the preceding table. Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Equity index options are included in options in the preceding table. The Company enters into financial forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. Equity variance swaps are included in financial forwards in the preceding table. Certain credit default swaps are used by the Company to hedge against credit-related changes in the value of its investments and to diversify its credit risk exposure in certain portfolios. In a credit default swap transaction, the Company agrees with another party, at specified intervals, to pay a premium to insure credit risk. If a credit event, as defined by the contract, occurs, generally the contract will require the swap to be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit default swaps are also used to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. Treasury or Agency security. F-44 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) HEDGING The following table presents the notional amount and fair value of derivatives by type of hedge designation at:
DECEMBER 31, 2007 DECEMBER 31, 2006 ------------------------------- ------------------------------- FAIR VALUE FAIR VALUE NOTIONAL -------------------- NOTIONAL -------------------- AMOUNT ASSETS LIABILITIES AMOUNT ASSETS LIABILITIES -------- ------ ----------- -------- ------ ----------- (IN MILLIONS) Fair value................... $ 651 $ 20 $ 3 $ 69 $ -- $ 1 Cash flow.................... 486 85 3 455 42 -- Non-qualifying............... 40,811 1,299 244 29,633 1,134 163 ------- ------ ---- ------- ------ ---- Total...................... $41,948 $1,404 $250 $30,157 $1,176 $164 ======= ====== ==== ======= ====== ====
The following table presents the settlement payments recorded in income for the:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Qualifying hedges: Interest credited to policyholder account balances..... $(6) $(9) $(1) Non-qualifying hedges: Net investment gains (losses).......................... 82 73 (8) --- --- --- Total............................................... $76 $64 $(9) === === ===
FAIR VALUE HEDGES The Company designates and accounts for the following as fair value hedges when they have met the requirements of SFAS 133: (i) interest rate swaps to convert fixed rate investments to floating rate investments; and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated investments and liabilities. The Company recognized net investment gains (losses) representing the ineffective portion of all fair value hedges as follows:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Changes in the fair value of derivatives................ $ 18 $(1) $-- Changes in the fair value of the items hedged........... (20) 2 -- ---- --- --- Net ineffectiveness of fair value hedging activities.... $ (2) $ 1 $-- ==== === ===
All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. There were no instances in which the Company discontinued fair value hedge accounting due to a hedged firm commitment no longer qualifying as a fair value hedge. F-45 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) CASH FLOW HEDGES The Company designates and accounts for the following as cash flow hedges, when they have met the requirements of SFAS 133: (i) interest rate swaps to convert floating rate investments to fixed rate investments; (ii) interest rate swaps to convert floating rate liabilities to fixed rate liabilities; and (iii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated investments and liabilities. For the years ended December 31, 2007 and 2006, the Company did not recognize any net investment gains (losses) which represented the ineffective portion of all cash flow hedges. For the year ended December 31, 2005, the Company recognized insignificant net investment gains (losses), which represented the ineffective portion of all cash flow hedges. All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. For the years ended December 31, 2007, 2006 and 2005, there were no instances in which the Company discontinued cash flow hedge accounting because the forecasted transactions did not occur on the anticipated date or in the additional time period permitted by SFAS 133. There were no hedged forecasted transactions, other than the receipt or payment of variable interest payments for the years ended December 31, 2007, 2006 and 2005. The following table presents the components of other comprehensive income (loss), before income tax, related to cash flow hedges:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Other comprehensive income (loss) balance at January 1,.................................................... $ (9) $ (2) $(4) Gains (losses) deferred in other comprehensive income (loss) on the effective portion of cash flow hedges... 39 41 1 Amounts reclassified to net investment gains (losses)... (43) (48) 1 ---- ---- --- Other comprehensive income (loss) balance at December 31,................................................... $(13) $ (9) $(2) ==== ==== ===
At December 31, 2007, $65 million of the deferred net gain (loss) on derivatives accumulated in other comprehensive income (loss) is expected to be reclassified to earnings during the year ending December 31, 2008. NON-QUALIFYING DERIVATIVES AND DERIVATIVES FOR PURPOSES OTHER THAN HEDGING The Company enters into the following derivatives that do not qualify for hedge accounting under SFAS 133 or for purposes other than hedging: (i) interest rate swaps, purchased caps and floors, and interest rate futures to economically hedge its exposure to interest rate volatility; (ii) foreign currency forwards, swaps and option contracts to economically hedge its exposure to adverse movements in exchange rates; (iii) credit default swaps to economically hedge exposure to adverse movements in credit; (iv) equity futures, equity index options and equity variance swaps to economically hedge liabilities embedded in certain variable annuity products; (v) credit default swaps to synthetically create investments; (vi) financial forwards to buy and sell securities; and (vii) basis swaps to better match the cash flows of assets and related liabilities. The following table presents changes in fair value related to derivatives that do not qualify for hedge accounting:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Net investment gains (losses), excluding embedded derivatives........................................... $112 $16 $(37)
F-46 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) EMBEDDED DERIVATIVES The Company has certain embedded derivatives that are required to be separated from their host contracts and accounted for as derivatives. These host contracts include guaranteed minimum withdrawal contracts, guaranteed minimum accumulation contracts and affiliated reinsurance contracts related to guaranteed minimum withdrawal contracts, guaranteed minimum accumulation contracts and certain guaranteed minimum income contracts. The following table presents the fair value of the Company's embedded derivatives at:
DECEMBER 31, ----------- 2007 2006 ---- ---- (IN MILLIONS) Embedded derivative assets................................... $125 $17 Embedded derivative liabilities.............................. $ -- $ 3
The following table presents changes in fair value related to embedded derivatives:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Net investment gains (losses)................................. $116 $85 $41
CREDIT RISK The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments. Generally, the current credit exposure of the Company's derivative contracts is limited to the fair value at the reporting date. The credit exposure of the Company's derivative transactions is represented by the fair value of contracts with a net positive fair value at the reporting date. The Company manages its credit risk related to over-the-counter derivatives by entering into transactions with creditworthy counterparties, maintaining collateral arrangements and through the use of master agreements that provide for a single net payment to be made by one counterparty to another at each due date and upon termination. Because exchange traded futures are effected through regulated exchanges, and positions are marked to market on a daily basis, the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivative instruments. The Company enters into various collateral arrangements, which require both the pledging and accepting of collateral in connection with its derivative instruments. As of December 31, 2007 and 2006, the Company was obligated to return cash collateral under its control of $370 million and $273 million, respectively. This unrestricted cash collateral is included in cash and cash equivalents and the obligation to return it is included in payables for collateral under securities loaned and other transactions in the consolidated balance sheets. As of December 31, 2007 and 2006, the Company had also accepted collateral consisting of various securities with a fair market value of $526 million and $410 million, respectively, which are held in separate custodial accounts. The Company is permitted by contract to sell or repledge this collateral, but as of December 31, 2007 and 2006, none of the collateral had been sold or repledged. In addition, the Company has exchange traded futures, which require the pledging of collateral. As of both December 31, 2007 and 2006, the Company pledged collateral of $25 million, which is included in fixed maturity securities. The counterparties are permitted by contract to sell or repledge this collateral. F-47 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) 6. DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED Information regarding DAC and VOBA is as follows:
DAC VOBA TOTAL ------ ------ ------ (IN MILLIONS) Balance at January 1, 2005.......................... $ 678 $ -- $ 678 Contribution of MetLife Insurance Company of Connecticut from MetLife (Note 2)................. -- 3,490 3,490 Capitalizations................................... 886 -- 886 ------ ------ ------ Subtotal..................................... 1,564 3,490 5,054 ------ ------ ------ Less: Amortization related to: Net investment gains (losses).................. -- (26) (26) Unrealized investment gains (losses)........... (41) (107) (148) Other expenses................................. 109 205 314 ------ ------ ------ Total amortization........................... 68 72 140 ------ ------ ------ Balance at December 31, 2005........................ 1,496 3,418 4,914 Capitalizations................................... 721 -- 721 ------ ------ ------ Subtotal..................................... 2,217 3,418 5,635 ------ ------ ------ Less: Amortization related to: Net investment gains (losses).................. (16) (68) (84) Unrealized investment gains (losses)........... (10) 46 36 Other expenses................................. 252 320 572 ------ ------ ------ Total amortization........................... 226 298 524 ------ ------ ------ Balance at December 31, 2006........................ 1,991 3,120 5,111 Effect of SOP 05-1 adoption....................... (7) (125) (132) Capitalizations................................... 682 -- 682 ------ ------ ------ Subtotal..................................... 2,666 2,995 5,661 ------ ------ ------ Less: Amortization related to: Net investment gains (losses).................. 44 (16) 28 Unrealized investment gains (losses)........... (18) (9) (27) Other expenses................................. 388 324 712 ------ ------ ------ Total amortization........................... 414 299 713 ------ ------ ------ Balance at December 31, 2007........................ $2,252 $2,696 $4,948 ====== ====== ======
The estimated future amortization expense allocated to other expenses for the next five years for VOBA is $342 million in 2008, $303 million in 2009, $269 million in 2010, $237 million in 2011, and $195 million in 2012. Amortization of VOBA and DAC is related to (i) investment gains and losses and the impact of such gains and losses on the amount of the amortization; (ii) unrealized investment gains and losses to provide information regarding the amount that would have been amortized if such gains and losses had been recognized; and (iii) other expenses to provide amounts related to the gross profits originating from transactions other than investment gains and losses. F-48 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) 7. GOODWILL Goodwill is the excess of cost over the fair value of net assets acquired. Information regarding goodwill is as follows:
DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Balance at January 1,.................................. $953 $924 $ 68 Contribution from MetLife (Note 2)..................... -- 29 856 ---- ---- ---- Balance at December 31,................................ $953 $953 $924 ==== ==== ====
8. INSURANCE INSURANCE LIABILITIES Insurance liabilities are as follows:
DECEMBER 31, ------------------------------------------------------------- OTHER FUTURE POLICY POLICYHOLDER ACCOUNT POLICYHOLDER BENEFITS BALANCES FUNDS ----------------- ----------------------- --------------- (AS RESTATED, SEE NOTE 20) ------- ------- ------------- ------- ------ ------ 2007 2006 2007 2006 2007 2006 ------- ------- ------------- ------- ------ ------ (IN MILLIONS) Individual Traditional life................ $ 921 $ 871 $ -- $ -- $ 50 $ 37 Universal variable life......... 575 527 4,995 4,522 1,496 1,314 Annuities....................... 944 1,015 15,058 16,106 36 5 Other........................... -- -- 47 32 -- -- Institutional Group life...................... 220 234 763 765 5 6 Retirement & savings............ 12,040 12,325 12,780 13,731 -- -- Non-medical health & other...... 303 328 -- -- 2 2 Corporate & Other (1)............. 4,573 4,354 172 (57) 188 149 ------- ------- ------- ------- ------ ------ Total........................ $19,576 $19,654 $33,815 $35,099 $1,777 $1,513 ======= ======= ======= ======= ====== ======
(1) Corporate & Other includes intersegment eliminations. Affiliated insurance liabilities included in the table above include reinsurance assumed and ceded. Affiliated future policy benefits, included in the table above, were $29 million and $25 million at December 31, 2007 and 2006, respectively. Affiliated policyholder account balances, included in the table above, were $97 million and $(57) million at December 31, 2007 and 2006, respectively. Affiliated other policyholder funds, included in the table above, were $1.3 billion and $1.2 billion at December 31, 2007 and 2006, respectively. F-49 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) VALUE OF DISTRIBUTION AGREEMENTS AND CUSTOMER RELATIONSHIPS ACQUIRED Information regarding the VODA and VOCRA, which are reported in other assets, is as follows:
YEARS ENDED DECEMBER 31, ---------------------- 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Balance at January 1,............................... $237 $ 72 $-- Contribution from MetLife........................... -- -- 73 Contribution of VODA from MetLife................... -- 167 -- Amortization........................................ (5) (2) (1) ---- ---- --- Balance at December 31,............................. $232 $237 $72 ==== ==== ===
The estimated future amortization expense allocated to other expenses for the next five years for VODA and VOCRA is $7 million in 2008, $9 million in 2009, $11 million in 2010, $13 million in 2011 and $15 million in 2012. On September 30, 2006, MLI-USA received a capital contribution from MetLife of $162 million in the form of intangible assets related to VODA of $167 million, net of deferred income tax of $5 million, for which MLI-USA receives the benefit. The VODA originated through MetLife's acquisition of Travelers and is reported within other assets in the amount of $164 million and $166 million at December 31, 2007 and 2006, respectively. The value of the other identifiable intangibles as discussed above reflects the estimated fair value of the Citigroup/Travelers distribution agreements acquired at July 1, 2005 and will be amortized in relation to the expected economic benefits of the agreement. The weighted average amortization period of the other intangible assets is 16 years. If actual experience under the distribution agreements differs from expectations, the amortization of these intangibles will be adjusted to reflect actual experience. The use of discount rates was necessary to establish the fair value of the other identifiable intangible assets. In selecting the appropriate discount rates, management considered its weighted average cost of capital as well as the weighted average cost of capital required by market participants. A discount rate of 11.5% was used to value these intangible assets. SALES INDUCEMENTS Information regarding deferred sales inducements, which are reported in other assets, is as follows:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Balance at January 1,................................ $330 $218 $143 Capitalization....................................... 124 129 83 Amortization......................................... (51) (17) (8) ---- ---- ---- Balance at December 31,.............................. $403 $330 $218 ==== ==== ====
SEPARATE ACCOUNTS Separate account assets and liabilities consist of pass-through separate accounts totaling $53.9 billion and $50.1 billion at December 31, 2007 and 2006, respectively, for which the policyholder assumes all investment risk. Fees charged to the separate accounts by the Company (including mortality charges, policy administration fees and surrender charges) are reflected in the Company's revenues as universal life and investment-type product policy F-50 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) fees and totaled $947 million, $800 million and $467 million for the years ended December 31, 2007, 2006 and 2005, respectively. For the years ended December 31, 2007, 2006 and 2005, there were no investment gains (losses) on transfers of assets from the general account to the separate accounts. OBLIGATIONS UNDER GUARANTEED INTEREST CONTRACT PROGRAM The Company issues fixed and floating rate obligations under its guaranteed interest contract ("GIC") program which are denominated in either U.S. dollars or foreign currencies. During the year ended December 31, 2007, the Company issued $653 million in such obligations and repaid $616 million. During the year ended December 31, 2006, there were no new issuances of such obligations and there were repayments of $1.1 billion. There were no new issuances or repayments of such obligations for the year ended December 31, 2005. Accordingly, at December 31, 2007 and 2006, GICs outstanding, which are included in policyholder account balances, were $5.1 billion (as restated, see Note 20) and $4.6 billion, respectively. During the years ended December 31, 2007, 2006 and 2005, interest credited on the contracts, which are included in interest credited to policyholder account balances, was $230 million, $163 million and $80 million, respectively. OBLIGATIONS UNDER FUNDING AGREEMENTS MICC is a member of the Federal Home Loan Bank of Boston (the "FHLB of Boston") and holds $70 million of common stock of the FHLB of Boston at both December 31, 2007 and 2006, which is included in equity securities. MICC has also entered into funding agreements with the FHLB of Boston whereby MICC has issued such funding agreements in exchange for cash and for which the FHLB of Boston has been granted a blanket lien on certain MICC assets, including residential mortgage-backed securities, to collateralize MICC's obligations under the funding agreements. MICC maintains control over these pledged assets, and may use, commingle, encumber or dispose of any portion of the collateral 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 MICC, the FHLB of Boston's recovery on the collateral is limited to the amount of MICC's liability to the FHLB of Boston. The amount of MICC's liability for funding agreements with the FHLB of Boston was $726 million and $926 million at December 31, 2007 and 2006, respectively, which is included in policyholder account balances. The advances on these funding agreements are collateralized by residential mortgage-backed securities with fair values of $901 million and $1.1 billion at December 31, 2007 and 2006, respectively. F-51 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) LIABILITIES FOR UNPAID CLAIMS AND CLAIM EXPENSES Information regarding the liabilities for unpaid claims and claim expenses relating to group accident and non-medical health policies and contracts, which are reported in future policy benefits, is as follows:
YEARS ENDED DECEMBER 31, -------------------- 2007 2006 2005 ----- ----- ---- (IN MILLIONS) Balance at January 1,............................... $ 551 $ 512 $ -- Less: Reinsurance recoverables.................... (403) (373) -- ----- ----- ---- Net balance at January 1,........................... 148 139 -- ----- ----- ---- Contribution of MetLife Insurance Company of Connecticut by MetLife (Note 3)................... -- -- 137 Incurred related to: Current year...................................... 32 29 19 Prior years....................................... (5) 4 (3) ----- ----- ---- 27 33 16 ----- ----- ---- Paid related to: Current year...................................... (2) (2) (1) Prior years....................................... (24) (22) (13) ----- ----- ---- (26) (24) (14) ----- ----- ---- Net balance at December 31,......................... 149 148 139 Add: Reinsurance recoverables..................... 463 403 373 ----- ----- ---- Balance at December 31,............................. $ 612 $ 551 $512 ===== ===== ====
Claims and claim adjustment expenses associated with prior periods decreased by $5 million for the year ended December 31, 2007, increased by $4 million for the year ended December 31, 2006, and decreased by $3 million for the year ended December 31, 2005. In all periods presented, the change was due to differences between actual benefit periods and expected benefit periods for LTC and disability contracts. GUARANTEES The Company issues annuity contracts which may include contractual guarantees to the contractholder for: (i) return of no less than total deposits made to the contract less any partial withdrawals ("return of net deposits"); and (ii) the highest contract value on a specified anniversary date minus any withdrawals following the contract anniversary, or total deposits made to the contract less any partial withdrawals plus a minimum return ("anniversary contract value" or "minimum return"). The Company also issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee. F-52 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts is as follows:
DECEMBER 31, --------------------------------------------------------------- 2007 2006 ------------------------------ ------------------------------ IN THE AT IN THE AT EVENT OF DEATH ANNUITIZATION EVENT OF DEATH ANNUITIZATION -------------- ------------- -------------- ------------- (IN MILLIONS) ANNUITY CONTRACTS(1) RETURN OF NET DEPOSITS Separate account value........ $ 11,337 N/A $ 8,213 N/A Net amount at risk(2)......... $ 33(3) N/A $ --(3) N/A Average attained age of contractholders............. 62 years N/A 61 years N/A ANNIVERSARY CONTRACT VALUE OR MINIMUM RETURN Separate account value........ $ 41,515 $ 16,143 $ 44,036 $ 13,179 Net amount at risk(2)......... $ 1,692(3) $ 245(4) $ 1,422(3) $ 30(4) Average attained age of contractholders............. 56 years 61 years 58 years 60 years
DECEMBER 31, ----------------------- 2007 2006 ---------- ---------- SECONDARY SECONDARY GUARANTEES GUARANTEES ---------- ---------- (IN MILLIONS) UNIVERSAL AND VARIABLE LIFE CONTRACTS(1) Account value (general and separate account)........ $ 2,797 $ 3,262 Net amount at risk(2)............................... $ 38,621(3) $ 48,630(3) Average attained age of policyholders............... 57 years 57 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) The net amount at risk is based on the direct amount at risk (excluding reinsurance). (3) The net amount at risk for guarantees of amounts in the event of death is defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (4) The net amount at risk for guarantees of amounts at annuitization is defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. F-53 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) Information regarding the liabilities for guarantees (excluding base policy liabilities) relating to annuity and universal and variable life contracts is as follows:
UNIVERSAL AND VARIABLE LIFE ANNUITY CONTRACTS CONTRACTS -------------------------- ------------- GUARANTEED GUARANTEED DEATH ANNUITIZATION SECONDARY BENEFITS BENEFITS GUARANTEES TOTAL ---------- ------------- ------------- ----- (IN MILLIONS) Balance at January 1, 2005........... $-- $-- $-- $-- Incurred guaranteed benefits......... 3 -- 9 12 Paid guaranteed benefits............. -- -- -- -- --- --- --- --- Balance at December 31, 2005......... 3 -- 9 12 Incurred guaranteed benefits......... -- -- 22 22 Paid guaranteed benefits............. (3) -- -- (3) --- --- --- --- Balance at December 31, 2006......... -- -- 31 31 Incurred guaranteed benefits......... 6 28 34 68 Paid guaranteed benefits............. (4) -- -- (4) --- --- --- --- Balance at December 31, 2007......... $ 2 $28 $65 $95 === === === ===
Excluded from the table above are guaranteed death and annuitization benefit liabilities on the Company's annuity contracts of $45 million, $38 million and $28 million at December 31, 2007, 2006 and 2005, respectively, which were reinsured 100% to an affiliate and had corresponding recoverables from affiliated reinsurers related to such guarantee liabilities. Account balances of contracts with insurance guarantees are invested in separate account asset classes as follows:
DECEMBER 31, ----------------- 2007 2006 ------- ------- (IN MILLIONS) Mutual Fund Groupings Equity.............................................. $40,608 $37,992 Bond................................................ 2,307 2,831 Balanced............................................ 4,422 2,790 Money Market........................................ 1,265 949 Specialty........................................... 395 460 ------- ------- Total.................... ........................ $48,997 $45,022 ======= =======
9. REINSURANCE The Company's life insurance operations participate in reinsurance activities in order to limit losses, minimize exposure to large risks, and provide additional capacity for future growth. The Company has historically reinsured the mortality risk on new individual life insurance policies primarily on an excess of retention basis or a quota share basis. The Company has reinsured up to 90% of the mortality risk for all new individual life insurance policies. This practice was initiated by the Company for different products starting at various points in time between 1997 and 2004. On a case by case basis, the Company may retain up to $5 million per life on single life individual policies and reinsure 100% of amounts in excess of the Company's retention limits. The Company evaluates its reinsurance F-54 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) programs routinely and may increase or decrease its retention at any time. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specific characteristics. In addition to reinsuring mortality risk as described previously, the Company reinsures other risks, as well as specific coverages. The Company routinely reinsures certain classes of risks in order to limit its exposure to particular travel, avocation and lifestyle hazards. The Company has exposure to catastrophes, which could contribute to significant fluctuations in the Company's results of operations. The Company uses excess of retention and quota share reinsurance arrangements to provide greater diversification of risk and minimize exposure to larger risks. MICC's workers' compensation business is reinsured through a 100% quota- share agreement with The Travelers Indemnity Company, an insurance subsidiary of The Travelers Companies, Inc. Effective July 1, 2000, MetLife Insurance Company of Connecticut reinsured 90% of its individual LTC insurance business with Genworth Life Insurance Company and its subsidiary ("GLIC"), in the form of indemnity reinsurance agreements. In accordance with the terms of the reinsurance agreements, GLIC will effect assumption and novation of the reinsured contracts, to the extent permitted by law, by July 31, 2008. The Company reinsures the new production of fixed annuities and the riders containing benefit guarantees related to variable annuities to affiliated and non-affiliated reinsurers. The Company reinsures its business through a diversified group of reinsurers. No single unaffiliated reinsurer has a material obligation to the Company nor is the Company's business substantially dependent upon any reinsurance contracts. The Company is contingently liable with respect to ceded reinsurance should any reinsurer be unable to meet its obligations under these agreements. The amounts in the consolidated statements of income are presented net of reinsurance ceded. Information regarding the effect of reinsurance is as follows:
YEARS ENDED DECEMBER 31, --------------------- 2007 2006 2005 ----- ----- ----- (IN MILLIONS) Direct premiums.................................... $ 654 $ 599 $ 413 Reinsurance assumed................................ 17 21 38 Reinsurance ceded.................................. (318) (312) (170) ----- ----- ----- Net premiums....................................... $ 353 $ 308 $ 281 ===== ===== ===== Reinsurance recoverables netted against policyholder benefits and claims.............................. $ 671 $ 635 $ 560 ===== ===== =====
Reinsurance recoverables, included in premiums and other receivables, were $4.9 billion and $4.6 billion at December 31, 2007 and 2006, respectively, including $3.4 billion and $3.0 billion at December 31, 2007 and 2006, respectively, relating to reinsurance on the run-off LTC business and $1.2 billion and $1.3 billion at December 31, 2007 and 2006, respectively, relating to reinsurance on the run-off of workers' compensation business. Reinsurance and ceded commissions payables, included in other liabilities, were $128 million and $99 million at December 31, 2007 and 2006, respectively. The Company has reinsurance agreements with MetLife and certain of its subsidiaries, including MLIC, Reinsurance Group of America, Incorporated, MetLife Reinsurance Company of South Carolina ("MRSC"), Exeter Reassurance Company, Ltd. ("Exeter"), General American Life Insurance Company ("GALIC"), Mitsui Sumitomo MetLife Insurance Co., Ltd. and MetLife Reinsurance Company of Vermont ("MRV"). At December 31, 2007, the Company had reinsurance-related assets and liabilities from these agreements totaling $3.4 billion and $1.7 billion, F-55 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) respectively. At December 31, 2006, comparable assets and liabilities were $2.8 billion and $1.2 billion, respectively. The following table reflects related party reinsurance information:
YEARS ENDED DECEMBER 31, ---------------------- 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Assumed premiums................................... $ 17 $ 21 $ 38 Assumed fees, included in universal life and investment-type product policy fees.............. $119 $ 65 $194 Assumed fees, included in net investment gains (losses)......................................... $ -- $ -- $ 6 Assumed benefits, included in policyholder benefits and claims....................................... $ 18 $ 11 $ 32 Assumed benefits, included in interest credited to policyholder account balances.................... $ 53 $ 49 $ 42 Assumed acquisition costs, included in other expenses......................................... $ 39 $ 58 $111 Ceded premiums..................................... $ 32 $ 21 $ 12 Ceded fees, included in universal life and investment-type product policy fees.............. $216 $130 $ 93 Interest earned on ceded reinsurance, included in other revenues................................... $ 85 $ 68 $ 55 Ceded benefits, included in policyholder benefits and claims........................................... $ 95 $ 86 $ 92 Interest costs on ceded reinsurance, included in other expenses................................... $ 33 $ 77 $182
The Company has assumed risks related to guaranteed minimum benefit riders from an affiliated joint venture under a reinsurance contract. Such guaranteed minimum benefit riders are embedded derivatives and are included within net investment gains (losses). The assumed amounts were $(113) million, $57 million and $28 million for the years ended December 31, 2007, 2006 and 2005, respectively. These risks have been retroceded in full to another affiliate under a retrocessional agreement resulting in no net impact on net investment gains (losses). The Company has also ceded risks related to guaranteed minimum benefit riders written by the Company to another affiliate. The guaranteed minimum benefit riders directly written by the Company are embedded derivatives and changes in their fair value are included within net investment gains (losses). The ceded reinsurance also contain embedded derivatives and changes in their fair value are also included within net investment gains (losses). The ceded amounts were $276 million, $(31) million and $5 million for the years ended December 31, 2007, 2006 and 2005, respectively. Effective December 20, 2007, MLI-USA recaptured two ceded blocks of business (the "Recaptured Business") from Exeter. The Recaptured Business consisted of two blocks of universal life secondary guarantee risk, one assumed from GALIC, and the other written by MLI-USA. As a result of the recapture, MLI- USA received $258 million of assets from Exeter, reduced receivables from affiliates, included in premiums and other receivables, by $112 million and reduced other assets by $124 million. The recapture resulted in a pre-tax gain of $22 million. Concurrent with the recapture, the same business was ceded to MRV. The cession does not transfer risk to MRV and is therefore accounted for under the deposit method. MLI-USA transferred $258 million of assets to MRV as a result of this cession, and recorded a receivable from affiliates, included in premiums and other receivables, of $258 million. Effective December 31, 2007, MLI-USA entered into a reinsurance agreement to cede two blocks of business to MRV, on a 90% coinsurance funds withheld basis. This agreement covered certain term and certain universal life policies issued in 2007 and to be issued during 2008 by MLI-USA. This agreement transfers risk to MRV and, therefore, is accounted for as reinsurance. As a result of the agreement, DAC decreased $136 million, affiliated F-56 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) reinsurance recoverables, included in premiums and other receivables, increased $326 million, MLI-USA recorded a funds withheld liability for $223 million, included in other liabilities, and unearned revenue, included in other policyholder funds, was reduced by $33 million. On December 1, 2006, the Company acquired a block of structured settlement business from Texas Life Insurance Company ("Texas Life"), a wholly-owned subsidiary of MetLife, through an assumptive reinsurance agreement. This transaction increased future policy benefits of the Company by $1.3 billion and decreased deferred income tax liabilities by $142 million at December 31, 2006. During the year ended December 31, 2007, the receivable from Texas Life related to premiums and other considerations of $1.2 billion held at December 31, 2006 was settled with $901 million of cash and $304 million of fixed maturity securities. Effective January 1, 2005, MLI-USA entered into a reinsurance agreement to assume an in-force block of business from GALIC. This agreement covered certain term and universal life policies issued by GALIC on and after January 1, 2000 through December 31, 2004. This agreement also covered certain term and universal life policies issued on or after January 1, 2005. MLI-USA paid and deferred 100% of a ceding commission to GALIC of $386 million resulting in no gain or loss on the transfer of the in-force business as of January 1, 2005. 10. LONG-TERM DEBT -- AFFILIATED Long-term debt outstanding is as follows:
DECEMBER 31, ----------- 2007 2006 ---- ---- (IN MILLIONS) Surplus notes, interest rate 7.349%, due 2035..................... $400 $400 Surplus notes, interest rate LIBOR plus 1.15%, maturity date 2009............................................................ 200 -- Surplus notes, interest rate 5%, due upon request................. 25 25 Surplus notes, interest rate LIBOR plus 0.75%, due upon request... 10 10 ---- ---- Total long-term debt -- affiliated................................ $635 $435 ==== ====
MetLife Credit Corp., an affiliate, is the holder of a surplus note issued by the Company during the fourth quarter of 2007 in the amount of $200 million at December 31, 2007. MetLife is the holder of a surplus note issued by MLI-USA in the amount of $400 million at December 31, 2007 and 2006. MLIG is the holder of two surplus notes issued by MLI-USA in the amounts of $25 million and $10 million at both December 31, 2007 and 2006. These surplus notes may be redeemed, in whole or in part, at the election of the Company at any time, subject to the prior approval of the insurance department of the state of domicile. Payments of interest and principal on these surplus notes may be made only with the prior approval of the insurance department of the state of domicile. The aggregate maturities of long-term debt as of December 31, 2007 are $200 million in 2009, $400 million in 2035, and $35 million payable upon request and regulatory approval. Interest expense related to the Company's indebtedness, included in other expenses, was $33 million, $31 million and $25 million for the years ended December 31, 2007, 2006 and 2005, respectively. F-57 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) 11. INCOME TAXES The provision for income tax from continuing operations is as follows:
YEARS ENDED DECEMBER 31, ------------------------------------ (AS RESTATED, SEE NOTE 20) ------------- ------------- ---- 2007 2006 2005 ------------- ------------- ---- (IN MILLIONS) Current: Federal..................................... $ 9 $ 18 $ (3) State and local............................. 4 -- (2) Foreign..................................... 1 -- -- ---- ---- ---- Subtotal.................................. 14 18 (5) ---- ---- ---- Deferred: Federal..................................... $306 $212 $162 State and local............................. -- (2) (1) Foreign..................................... (17) -- -- ---- ---- ---- Subtotal.................................. 289 210 161 ---- ---- ---- Provision for income tax...................... $303 $228 $156 ==== ==== ====
The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported for continuing operations is as follows:
YEARS ENDED DECEMBER 31, ------------------------------------ (AS RESTATED, SEE NOTE 20) ------------- ------------- ---- 2007 2006 2005 ------------- ------------- ---- (IN MILLIONS) Tax provision at U.S. statutory rate.......... $365 $288 $191 Tax effect of: Tax-exempt investment income................ (65) (62) (27) Prior year tax.............................. 9 (9) (9) Foreign tax rate differential and change in valuation allowance....................... (7) 12 -- State tax, net of federal benefit........... 3 -- 2 Other, net.................................. (2) (1) (1) ---- ---- ---- Provision for income tax...................... $303 $228 $156 ==== ==== ====
F-58 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) Deferred income tax represents the tax effect of the differences between the book and tax basis of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following:
DECEMBER 31, ----------------------- (AS RESTATED, SEE NOTE 20) ------------- ------- 2007 2006 ------------- ------- (IN MILLIONS) Deferred income tax assets: Benefit, reinsurance and other reserves............ $ 1,929 $ 2,238 Net unrealized investment losses................... 195 171 Capital loss carryforwards......................... 150 155 Investments........................................ 54 63 Net operating loss carryforwards................... 42 10 Tax credits........................................ 20 -- Operating lease reserves........................... 13 13 Employee benefits.................................. -- 3 Litigation-related................................. -- 1 Other.............................................. 13 20 ------- ------- 2,416 2,674 Less: Valuation allowance.......................... -- 4 ------- ------- 2,416 2,670 ------- ------- Deferred income tax liabilities: DAC and VOBA....................................... (1,570) (1,663) ------- ------- (1,570) (1,663) ------- ------- Net deferred income tax asset........................ $ 846 $ 1,007 ======= =======
Domestic net operating loss carryforwards amount to $29 million at December 31, 2007 and will expire beginning in 2025. Foreign net operating loss carryforwards amount to $113 million at December 31, 2007 with indefinite expiration. Capital loss carryforwards amount to $430 million at December 31, 2007 and will expire beginning in 2010. Tax credit carryforwards amount to $20 million at December 31, 2007. The Company has recorded a valuation allowance related to tax benefits of certain foreign net operating loss carryforwards. The valuation allowance reflects management's assessment, based on available information, that it is more likely than not that the deferred income tax asset for certain foreign net operating loss carryforwards will not be realized. The tax benefit will be recognized when management believes that it is more likely than not that these deferred income tax assets are realizable. In 2007, the Company recorded a reduction of $4 million to the deferred income tax valuation allowance related to certain foreign net operating loss carryforwards. The Company files income tax returns with the U.S. federal government and various state and local jurisdictions, as well as foreign jurisdictions. With a few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2003 and is no longer subject to foreign income tax examinations for the years prior to 2006. The adoption of FIN 48 did not have a material impact on the Company's consolidated financial statements. The Company reclassified, at adoption, $64 million of deferred income tax liabilities, for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility, to the liability F-59 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) for unrecognized tax benefits. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. The total amount of unrecognized tax benefits as of January 1, 2007 that would affect the effective tax rate, if recognized, was $5 million. The Company also had less than $1 million of accrued interest, included within other liabilities, as of January 1, 2007. The Company classifies interest accrued related to unrecognized tax benefits in interest expense, while penalties are included within income tax expense. As of December 31, 2007, the Company's total amount of unrecognized tax benefits is $53 million and there are no amounts of unrecognized tax benefits that would affect the effective tax rate, if recognized. The total amount of unrecognized tax benefit decreased by $11 million from the date of adoption primarily due to a settlement reached with the Internal Revenue Service ("IRS") with respect to a post-sale purchase price adjustment. As a result of the settlement, an item within the liability for unrecognized tax benefits, in the amount of $6 million, was reclassified to deferred income taxes. The Company does not anticipate any material change in the total amount of unrecognized tax benefits over the ensuing 12 month period. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ended December 31, 2007, is as follows:
TOTAL UNRECOGNIZED TAX BENEFITS ------------------ (IN MILLIONS) Balance at January 1, 2007 (date of adoption)........... $64 Reductions for tax positions of prior years............. (2) Additions for tax positions of current year............. 5 Reductions for tax positions of current year............ (8) Settlements with tax authorities........................ (6) --- Balance at December 31, 2007............................ $53 ===
During the year ended December 31, 2007, the Company recognized $2 million in interest expense associated with the liability for unrecognized tax benefits. As of December 31, 2007, the Company had $3 million of accrued interest associated with the liability for unrecognized tax benefits, an increase of $2 million from the date of adoption. On September 25, 2007, the IRS issued Revenue Ruling 2007-61, which announced its intention to issue regulations with respect to certain computational aspects of the Dividends Received Deduction ("DRD") on separate account assets held in connection with variable annuity contracts. Revenue Ruling 2007-61 suspended a revenue ruling issued in August 2007 that would have changed accepted industry and IRS interpretations of the statutes governing these computational questions. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other interested parties will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. As a result, the ultimate timing and substance of any such regulations are unknown at this time. For the year ended December 31, 2007, the Company recognized an income tax benefit of $64 million related to the separate account DRD. The Company will file a consolidated tax return with its includable subsidiaries. Non-includable subsidiaries file either separate individual corporate tax returns or separate consolidated tax returns. Under the tax allocation agreement, the federal income tax will be allocated between the companies on a separate return basis and adjusted for credits and other amounts required by such tax allocation agreement. F-60 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) 12. CONTINGENCIES, COMMITMENTS AND GUARANTEES CONTINGENCIES LITIGATION The Company is a defendant in a number of litigation matters. In some of the matters, large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the United States permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrate to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Thus, unless stated below, the specific monetary relief sought is not noted. Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be inherently impossible to ascertain with any degree of certainty. Inherent uncertainties can include how fact finders will view individually and in their totality documentary evidence, the credibility and effectiveness of witnesses' testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and contingencies to be reflected in the Company's consolidated financial statements. The review includes senior legal and financial personnel. Estimates of possible losses or ranges of loss for particular matters cannot in the ordinary course be made with a reasonable degree of certainty. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of December 31, 2007. The Company has faced numerous claims, including class action lawsuits, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds or other products. The Company continues to vigorously defend against the claims in all pending matters. Some sales practices claims have been resolved through settlement. Other sales practices claims have been won by dispositive motions or have gone to trial. Most of the current cases seek substantial damages, including in some cases punitive and treble damages and attorneys' fees. Additional litigation relating to the Company's marketing and sales of individual life insurance, annuities, mutual funds or other products may be commenced in the future. Various litigation, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company's financial statements, have arisen in the course of the Company's business, including, but not limited to, in connection with its activities as an insurer, employer, investor, investment advisor or taxpayer. Further, federal, state or industry regulatory or governmental authorities may conduct investigations, serve subpoenas or make other inquiries concerning a wide variety of issues, including the Company's compliance with applicable insurance and other laws and regulations. It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings or provide reasonable ranges of potential losses. In some of the matters referred to previously, large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company's financial F-61 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) position, based on information currently known by the Company's management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company's net income or cash flows in particular quarterly or annual periods. INSOLVENCY ASSESSMENTS Most of the jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guaranty associations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. Assets and liabilities held for insolvency assessments are as follows:
DECEMBER 31, ----------- 2007 2006 ---- ---- (IN MILLIONS) Other Assets: Premium tax offset for future undiscounted assessments.. $ 8 $ 9 Premium tax offsets currently available for paid assessments........................................... 1 1 --- --- $ 9 $10 === === Liability: Insolvency assessments................................... $17 $19 === ===
Assessments levied against the Company were less than $1 million for each of the years ended December 31, 2007, 2006 and 2005. COMMITMENTS LEASES The Company, as lessee, has entered into lease agreements for office space. Future sublease income is projected to be insignificant. Future minimum rental income and minimum gross rental payments relating to these lease agreements are as follows:
GROSS RENTAL RENTAL INCOME PAYMENTS ------ -------- (IN MILLIONS) 2008................................................... $ 3 $15 2009................................................... $ 3 $ 8 2010................................................... $ 3 $ 6 2011................................................... $ 3 $ 6 2012................................................... $ 3 $-- Thereafter............................................. $80 $--
F-62 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) COMMITMENTS TO FUND PARTNERSHIP INVESTMENTS The Company makes commitments to fund partnership investments in the normal course of business. The amounts of these unfunded commitments were $1.4 billion and $616 million at December 31, 2007 and 2006, respectively. The Company anticipates that these amounts will be invested in partnerships over the next five years. MORTGAGE LOAN COMMITMENTS The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $626 million and $665 million at December 31, 2007 and 2006, respectively. COMMITMENTS TO FUND BANK CREDIT FACILITIES AND PRIVATE CORPORATE BOND INVESTMENTS The Company commits to lend funds under bank credit facilities and private corporate bond investments. The amounts of these unfunded commitments were $488 million and $173 million at December 31, 2007 and 2006, respectively. OTHER COMMITMENTS The Company has entered into collateral arrangements with affiliates, which require the transfer of collateral in connection with secured demand notes. At December 31, 2007, the Company had agreed to fund up to $60 million of cash upon the request of an affiliate and had transferred collateral consisting of various securities with a fair market value of $73 million to custody accounts to secure the notes. The counterparties are permitted by contract to sell or repledge this collateral. GUARANTEES In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties pursuant to which it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities, and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation, such as in the case of MetLife International Insurance Company, Ltd. ("MLII"), a former affiliate, discussed below, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. The Company has provided a guarantee on behalf of MLII that is triggered if MLII cannot pay claims because of insolvency, liquidation or rehabilitation. During the second quarter of 2007, MLII was sold to a third party. Life insurance coverage in-force, representing the maximum potential obligation under this guarantee, was $434 million and $444 million at December 31, 2007 and 2006, respectively. The Company does not have any collateral related to this guarantee, but has recorded a liability of $1 million that was based on the total account value of the guaranteed policies plus the amounts retained per policy at December 31, 2007. The remainder of the risk was ceded to external reinsurers. The Company did not have a recorded liability related to this guarantee at December 31, 2006. In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company's F-63 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. In connection with synthetically created investment transactions, the Company writes credit default swap obligations that generally require payment of principal outstanding due in exchange for the referenced credit obligation. If a credit event, as defined by the contract, occurs the Company's maximum amount at risk, assuming the value of the referenced credits becomes worthless, was $324 million at December 31, 2007. The credit default swaps expire at various times during the next ten years. 13. EMPLOYEE BENEFIT PLANS Subsequent to the Acquisition, the Company became a participating affiliate in qualified and non-qualified, noncontributory defined benefit pension and other postretirement plans sponsored by MLIC. Employees were credited with prior service recognized by Citigroup, solely (with regard to pension purposes) for the purpose of determining eligibility and vesting under the Metropolitan Life Retirement Plan for United States Employees (the "Plan"), a noncontributory qualified defined benefit pension plan, with respect to benefits earned under the Plan subsequent to the Acquisition Date. Net periodic expense related to these plans was based on the employee population at the beginning of the year. During 2006, the employees of the Company were transferred to MetLife Group, Inc., a wholly-owned subsidiary of MetLife ("MetLife Group"), therefore no pension expense was allocated to the Company for the year ended December 31, 2007. Pension expense of $8 million related to the MLIC plans was allocated to the Company for the year ended December 31, 2006. There were no expenses allocated to the Company for the six months ended December 31, 2005. 14. EQUITY COMMON STOCK The Company has 40,000,000 authorized shares of common stock, 34,595,317 shares of which are outstanding as of December 31, 2007. Of such outstanding shares, 30,000,000 shares are owned directly by MetLife, Inc. and the remaining shares are owned by MLIG. CAPITAL CONTRIBUTIONS On September 30, 2006, MLI-USA received a capital contribution from MetLife of $162 million in the form of intangible assets related to VODA, and the associated deferred income tax liability, which is more fully described in Note 8. See also Note 3 for information related to the change in the reporting entity. STATUTORY EQUITY AND INCOME Each insurance company's state of domicile imposes minimum risk-based capital ("RBC") requirements that were developed by the National Association of Insurance Commissioners ("NAIC"). The formulas for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital, as defined by the NAIC, to authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. MetLife Insurance Company of Connecticut and MLI-USA each exceeded the minimum RBC requirements for all periods presented herein. F-64 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) The NAIC adopted the Codification of Statutory Accounting Principles ("Codification") in 2001. Codification was intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting principles continue to be established by individual state laws and permitted practices. The Connecticut Insurance Department and the Delaware Department of Insurance have adopted Codification with certain modifications for the preparation of statutory financial statements of insurance companies domiciled in Connecticut and Delaware, respectively. Modifications by the various state insurance departments may impact the effect of Codification on the statutory capital and surplus of MetLife Insurance Company of Connecticut and MLI-USA. Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting surplus notes as surplus instead of debt and valuing securities on a different basis. In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. The most significant assets not admitted by the Company are net deferred income tax assets resulting from temporary differences between statutory accounting principles basis and tax basis not expected to reverse and become recoverable within a year. Further, statutory accounting principles do not give recognition to purchase accounting adjustments made as a result of the Acquisition. Statutory net income of MetLife Insurance Company of Connecticut, a Connecticut domiciled insurer, was $1.1 billion, $856 million and $1.0 billion for the years ended December 31, 2007, 2006 and 2005, respectively. Statutory capital and surplus, as filed with the Connecticut Insurance Department, was $4.2 billion and $4.1 billion at December 31, 2007 and 2006, respectively. Due to the merger of MLAC with and into MetLife Insurance Company of Connecticut, the 2006 statutory net income balance was adjusted. Statutory net loss of MLI-USA, a Delaware domiciled insurer, was $1.1 billion, $116 million and $227 million for the years ended December 31, 2007, 2006 and 2005, respectively. Statutory capital and surplus, as filed with the Delaware Insurance Department, was $584 million and $575 million at December 31, 2007 and 2006, respectively. DIVIDEND RESTRICTIONS Under Connecticut State Insurance Law, MetLife Insurance Company of Connecticut is permitted, without prior insurance regulatory clearance, to pay shareholder dividends to its parent as long as the amount of such dividends, when aggregated with all other dividends in the preceding 12 months, does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year. MetLife Insurance Company of Connecticut will be permitted to pay a cash dividend in excess of the greater of such two amounts only if it files notice of its declaration of such a dividend and the amount thereof with the Connecticut Commissioner of Insurance ("Connecticut Commissioner") and the Connecticut Commissioner does not disapprove the payment within 30 days after notice. In addition, any dividend that exceeds earned surplus (unassigned funds, reduced by 25% of unrealized appreciation in value or revaluation of assets or unrealized profits on investments) as of the last filed annual statutory statement requires insurance regulatory approval. Under Connecticut State Insurance Law, the Connecticut Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its shareholders. The Connecticut State Insurance Law requires prior approval for any dividends for a period of two years following a change in control. As a result of the Acquisition on July 1, 2005, under Connecticut State Insurance Law, all dividend payments by MetLife Insurance Company of Connecticut through June 30, 2007 required prior approval of the Connecticut Commissioner. In the third quarter of 2006, after receiving regulatory approval from the Connecticut Commissioner, MetLife Insurance Company of Connecticut paid a $917 million dividend. Of that amount, F-65 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) $259 million was a return of capital. In the fourth quarter of 2007, MetLife Insurance Company of Connecticut paid a dividend of $690 million. Of that amount, $404 million was a return of capital as approved by the insurance regulator. During 2008, MetLife Insurance Company of Connecticut is permitted to pay, without regulatory approval, a dividend of $1,026 million. Under Delaware State Insurance Law, MLI-USA is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to its parent as long as the amount of the dividend when aggregated with all other dividends in the preceding 12 months does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). MLI-USA will be permitted to pay a cash dividend to MetLife Insurance Company of Connecticut in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Delaware Commissioner of Insurance ("Delaware Commissioner") and the Delaware Commissioner does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as unassigned funds) as of the last filed annual statutory statement requires insurance regulatory approval. Under Delaware State Insurance Law, the Delaware Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. MLI-USA did not pay dividends for the years ended December 31, 2007 and 2006. Because MLI-USA's statutory unassigned funds surplus is negative, MLI-USA cannot pay any dividends without prior approval of the Delaware Commissioner in 2008. OTHER COMPREHENSIVE INCOME (LOSS) The following table sets forth the reclassification adjustments required for the years ended December 31, 2007, 2006 and 2005 in other comprehensive income (loss) that are included as part of net income for the current year that have been reported as a part of other comprehensive income (loss) in the current or prior year:
YEARS ENDED DECEMBER 31, --------------------------------------- (AS RESTATED, SEE NOTE 20) ------------- ------------- ------- 2007 2006 2005 ------------- ------------- ------- (IN MILLIONS) Holding gains (losses) on investments arising during the year............................. $(358) $(434) $(1,148) Income tax effect of holding gains (losses)... 122 147 402 Reclassification adjustments: Recognized holding (gains) losses included in current year income................... 260 487 295 Amortization of premiums and accretion of discounts associated with investments.... -- 60 96 Income tax effect........................... (88) (186) (137) Allocation of holding gains on investments relating to other policyholder amounts...... 27 42 71 Income tax effect of allocation of holding gains to other policyholder amounts......... (10) (14) (25) ----- ----- ------- Net unrealized investment gains (losses)...... (47) 102 (446) ----- ----- ------- Foreign currency translation adjustment....... 12 (2) 2 ----- ----- ------- Other comprehensive income (loss)............. $ (35) $ 100 $ (444) ===== ===== =======
F-66 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) 15. OTHER EXPENSES Information on other expenses is as follows:
YEARS ENDED DECEMBER 31, ------------------------------ (AS RESTATED, SEE NOTE 20) ------------- ------ ----- 2007 2006 2005 ------------- ------ ----- (IN MILLIONS) Compensation...................................... $ 125 $ 134 $ 106 Commissions....................................... 633 712 931 Interest and debt issue costs..................... 35 31 25 Amortization of DAC and VOBA...................... 740 488 288 Capitalization of DAC............................. (682) (721) (886) Rent, net of sublease income...................... 5 11 7 Minority interest................................. -- 26 1 Insurance tax..................................... 44 42 10 Other............................................. 546 450 196 ------ ------ ----- Total other expenses............................ $1,446 $1,173 $ 678 ====== ====== =====
See Notes 9, 10 and 19 for discussion of affiliated expenses included in the table above. 16. BUSINESS SEGMENT INFORMATION The Company has two operating segments, Individual and Institutional, as well as Corporate & Other. These segments are managed separately because they either provide different products and services, require different strategies or have different technology requirements. Individual offers a wide variety of protection and asset accumulation products, including life insurance, annuities and mutual funds. Institutional offers a broad range of group insurance and retirement & savings products and services, including group life insurance and other insurance products and services. Corporate & Other contains the excess capital not allocated to the business segments, various start-up entities and run-off business, the Company's ancillary international operations, interest expense related to the majority of the Company's outstanding debt, expenses associated with certain legal proceedings and the elimination of intersegment transactions. 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 businesses. As a part of the economic capital process, a portion of net investment income is credited to the segments based on the level of allocated equity. 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, 2007, 2006 and 2005. The accounting policies of the segments are the same as those of the Company, except for the method of capital allocation and the accounting for gains (losses) from intercompany sales, which are eliminated in consolidation. Subsequent to the Acquisition Date, the Company allocates equity to each segment based upon the economic capital model used by MetLife that allows MetLife and the Company to effectively manage their capital. The Company evaluates the performance of each segment based upon net income excluding net investment gains (losses), net of income tax, and adjustments related to net investment gains (losses), net of income tax. F-67 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED)
FOR THE YEAR ENDED CORPORATE & DECEMBER 31, 2007 INDIVIDUAL INSTITUTIONAL OTHER TOTAL - ------------------ ---------- ------------- ----------- -------- (AS RESTATED, SEE NOTE 20) (IN MILLIONS) STATEMENT OF INCOME: Premiums.................................... $ 295 $ 34 $ 24 $ 353 Universal life and investment-type product policy fees............................... 1,370 39 2 1,411 Net investment income....................... 1,090 1,510 293 2,893 Other revenues.............................. 237 14 -- 251 Net investment gains (losses)............... 116 (263) 5 (142) Policyholder benefits and claims............ 479 466 33 978 Interest credited to policyholder account balances.................................. 661 638 -- 1,299 Other expenses.............................. 1,329 50 67 1,446 ------- ------- ------- -------- Income from continuing operations before provision for income tax.................. 639 180 224 1,043 Provision for income tax.................... 227 60 16 303 ------- ------- ------- -------- Income from continuing operations........... 412 120 208 740 Income from discontinued operations, net of income tax................................ -- 4 -- 4 ------- ------- ------- -------- Net income.................................. $ 412 $ 124 $ 208 $ 744 ======= ======= ======= ======== BALANCE SHEET: Total assets................................ $82,214 $35,154 $11,193 $128,561 DAC and VOBA................................ $ 4,930 $ 16 $ 2 $ 4,948 Goodwill.................................... $ 234 $ 312 $ 407 $ 953 Separate account assets..................... $51,398 $ 2,469 $ -- $ 53,867 Policyholder liabilities.................... $24,122 $26,113 $ 4,933 $ 55,168 Separate account liabilities................ $51,398 $ 2,469 $ -- $ 53,867
F-68 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED)
FOR THE YEAR ENDED CORPORATE & DECEMBER 31, 2006 INDIVIDUAL INSTITUTIONAL OTHER TOTAL - ------------------ ---------- ------------- ----------- -------- (IN MILLIONS) STATEMENT OF INCOME: Premiums.................................... $ 218 $ 65 $ 25 $ 308 Universal life and investment- type product policy fees............................... 1,244 24 -- 1,268 Net investment income....................... 985 1,449 405 2,839 Other revenues.............................. 195 15 2 212 Net investment gains (losses)............... (194) (282) (45) (521) Policyholder benefits and claims............ 315 450 27 792 Interest credited to policyholder account balances.................................. 669 647 -- 1,316 Other expenses.............................. 1,045 16 112 1,173 ------- ------- ------- -------- Income from continuing operations before provision for income tax.................. 419 158 248 825 Provision for income tax.................... 145 55 28 228 ------- ------- ------- -------- Net income.................................. $ 274 $ 103 $ 220 $ 597 ======= ======= ======= ======== BALANCE SHEET: Total assets................................ $76,897 $35,982 $11,208 $124,087 DAC and VOBA................................ $ 4,946 $ 165 $ -- $ 5,111 Goodwill.................................... $ 234 $ 312 $ 407 $ 953 Separate account assets..................... $47,566 $ 2,501 $ -- $ 50,067 Policyholder liabilities.................... $24,429 $27,391 $ 4,446 $ 56,266 Separate account liabilities................ $47,566 $ 2,501 $ -- $ 50,067
FOR THE YEAR ENDED CORPORATE & DECEMBER 31, 2005(1) INDIVIDUAL INSTITUTIONAL OTHER TOTAL - -------------------- ---------- ------------- ----------- ------ (IN MILLIONS) STATEMENT OF INCOME: Premiums................................... $ 152 $116 $ 13 $ 281 Universal life and investment-type product policy fees.............................. 845 17 -- 862 Net investment income...................... 530 712 196 1,438 Other revenues............................. 121 10 1 132 Net investment gains (losses).............. (113) (87) 2 (198) Policyholder benefits and claims........... 224 324 22 570 Interest credited to policyholder account balances................................. 417 303 -- 720 Other expenses............................. 640 30 8 678 ----- ---- ---- ------ Income from continuing operations before provision for income tax................. 254 111 182 547 Provision for income tax................... 53 38 65 156 ----- ---- ---- ------ Net income................................. $ 201 $ 73 $117 $ 391 ===== ==== ==== ======
- -------- (1) Includes six months of results for MetLife Insurance Company of Connecticut and its subsidiaries and twelve months of results for MLI- USA. F-69 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) Net investment income and net investment gains (losses) are based upon the actual results of each segment's specifically identifiable asset portfolio 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. Revenues derived from any customer did not exceed 10% of consolidated revenues for the years ended December 31, 2007, 2006 and 2005. Substantially all of the Company's revenues originated in the United States. 17. DISCONTINUED OPERATIONS The Company actively manages its real estate portfolio with the objective of maximizing earnings through selective acquisitions and dispositions. Income related to real estate classified as held-for-sale or sold is presented in discontinued operations. These assets are carried at the lower of depreciated cost or fair value less expected disposition costs. In the Institutional segment, the Company had net investment income of $1 million, net investment gains of $5 million and income tax of $2 million related to discontinued operations resulting in income from discontinued operations of $4 million, net of income tax, for the year ended December 31, 2007. The Company had $1 million of investment income and $1 million of investment expense resulting in no change to net investment income for the year ended December 31, 2006. The Company did not have investment income or expense related to discontinued operations for the year ended December 31, 2005. There was no carrying value of real estate related to discontinued operations at December 31, 2007. The carrying value of real estate related to discontinued operations was $7 million at December 31, 2006. 18. FAIR VALUE INFORMATION The estimated fair value of financial instruments have been determined by using available market information and the valuation methodologies described below. Considerable judgment is often required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein may not necessarily be indicative of amounts that could be realized in a current market exchange. The use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. The implementation of SFAS 157 may impact the fair value assumptions and methodologies associated with the valuation of assets and liabilities. See also Note 1 regarding the adoption of SFAS 157. F-70 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) Amounts related to the Company's financial instruments are as follows:
DECEMBER 31, 2007 NOTIONAL CARRYING ESTIMATED (AS RESTATED, SEE NOTE 20) AMOUNT VALUE FAIR VALUE -------- -------- ---------- (IN MILLIONS) Assets: Fixed maturity securities...................... $45,671 $45,671 Equity securities.............................. $ 952 $ 952 Mortgage and consumer loans.................... $ 4,404 $ 4,407 Policy loans................................... $ 913 $ 913 Short-term investments......................... $ 1,335 $ 1,335 Cash and cash equivalents...................... $ 1,774 $ 1,774 Accrued investment income...................... $ 637 $ 637 Mortgage loan commitments...................... $626 $ -- $ (11) Commitments to fund bank credit facilities and private corporate bond investments.......... $488 $ -- $ (31) Liabilities: Policyholder account balances.................. $28,056 $27,651 Long-term debt -- affiliated................... $ 635 $ 609 Payables for collateral under securities loaned and other transactions...................... $10,471 $10,471
NOTIONAL CARRYING ESTIMATED DECEMBER 31, 2006 AMOUNT VALUE FAIR VALUE -------- -------- ---------- (IN MILLIONS) Assets: Fixed maturity securities...................... $47,846 $47,846 Equity securities.............................. $ 795 $ 795 Mortgage and consumer loans.................... $ 3,595 $ 3,547 Policy loans................................... $ 918 $ 918 Short-term investments......................... $ 777 $ 777 Cash and cash equivalents...................... $ 649 $ 649 Accrued investment income...................... $ 597 $ 597 Mortgage loan commitments...................... $665 $ -- $ 1 Commitments to fund bank credit facilities and private corporate bond investments.......... $173 $ -- $ -- Liabilities: Policyholder account balances.................. $29,780 $28,028 Long-term debt -- affiliated................... $ 435 $ 425 Payables for collateral under securities loaned and other transactions...................... $ 9,155 $ 9,155
F-71 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) The methods and assumptions used to estimate the fair value of financial instruments are summarized as follows: FIXED MATURITY SECURITIES AND EQUITY SECURITIES The fair values of publicly held fixed maturity securities and publicly held equity securities are based on quoted market prices or estimates from independent pricing services. However, in cases where quoted market prices are not available, such as for private fixed maturity securities, fair values are estimated using present value or valuation techniques. The determination of fair values is based on: (i) valuation methodologies; (ii) securities the Company deems to be comparable; and (iii) assumptions deemed appropriate given the circumstances. The fair value estimates are based on available market information and judgments about financial instruments, including estimates of the timing and amounts of expected future cash flows and the credit standing of the issuer or counterparty. Factors considered in estimating fair value include; coupon rate, maturity, estimated duration, call provisions, sinking fund requirements, credit rating, industry sector of the issuer, and quoted market prices of comparable securities. MORTGAGE AND CONSUMER LOANS, MORTGAGE LOAN COMMITMENTS, COMMITMENTS TO FUND BANK CREDIT FACILITIES, AND PRIVATE CORPORATE BOND INVESTMENTS Fair values for mortgage and consumer loans are estimated by discounting expected future cash flows, using current interest rates for similar loans with similar credit risk. For mortgage loan commitments, commitments to fund bank credit facilities, and private corporate bond investments the estimated fair value is the net premium or discount of the commitments. POLICY LOANS The carrying values for policy loans approximate fair value. CASH AND CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS The carrying values for cash and cash equivalents and short-term investments approximate fair values due to the short-term maturities of these instruments. ACCRUED INVESTMENT INCOME The carrying value for accrued investment income approximates fair value. POLICYHOLDER ACCOUNT BALANCES The fair value of policyholder account balances which have final contractual maturities are estimated by discounting expected future cash flows based upon interest rates currently being offered for similar contracts with maturities consistent with those remaining for the agreements being valued. The fair value of policyholder account balances without final contractual maturities are assumed to equal their current net surrender value. LONG-TERM DEBT -- AFFILIATED The fair values of long-term debt are determined by discounting expected future cash flows using risk rates currently available for debt with similar terms and remaining maturities. F-72 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) PAYABLES FOR COLLATERAL UNDER SECURITIES LOANED AND OTHER TRANSACTIONS The carrying value for payables for collateral under securities loaned and other transactions approximate fair value. DERIVATIVE FINANCIAL INSTRUMENTS The fair value of derivative financial instruments, including financial futures, financial forwards, interest rate, credit default and foreign currency swaps, foreign currency forwards, caps, floors, and options are based upon quotations obtained from dealers or other reliable sources. See Note 5 for derivative fair value disclosures. 19. RELATED PARTY TRANSACTIONS SERVICE AGREEMENTS The Company has entered into a Master Service Agreement with MLIC, which provides administrative, accounting, legal and similar services to the Company. MLIC charged the Company $170 million, $93 million and $15 million, included in other expenses, for services performed under the Master Service Agreement for the years ended December 31, 2007, 2006 and 2005, respectively. The Company has entered into a Service Agreement with MetLife Group, under which MetLife Group provides personnel services, as needed, to support the activities of the Company. MetLife Group charged the Company $107 million, $154 million and $49 million, included in other expenses, for services performed under the Service Agreement for the years ended December 31, 2007, 2006 and 2005, respectively. The Company has entered into various additional agreements with other affiliates for services necessary to conduct its activities. Typical services provided under these additional agreements include management, policy administrative functions and distribution services. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $198 million, $190 million and $48 million for the years ended December 31, 2007, 2006 and 2005, respectively. In 2005, the Company entered into Broker-Dealer Wholesale Sales Agreements with several affiliates ("Distributors"), in which the Distributors agree to sell, on the Company's behalf, fixed rate insurance products through authorized retailers. The Company agrees to compensate the Distributors for the sale and servicing of such insurance products in accordance with the terms of the agreements. The Distributors charged the Company $89 million and $65 million, included in other expenses, for the years ended December 31, 2007 and 2006, respectively. The Company did not incur any such expenses for the year ended December 31, 2005. The Company had net payables to affiliates of $27 million and $9 million at December 31, 2007 and 2006, respectively, related to the expenses discussed above. These payables exclude affiliated reinsurance expenses discussed in Note 9. See Notes 4, 8, 9 and 10 for additional related party transactions. 20. RESTATEMENT The Company identified a miscalculation of the foreign exchange adjustment related to the accrued interest credited liability (included within policyholder account balances) on its foreign denominated issuances under its GIC program. This miscalculation resulted in an overstatement of the foreign currency exchange loss on accrued interest credited payable and an understatement of net income. In addition, the Company recognized that its assessment of the functional currency of its operations in Ireland was not in accordance with the applicable accounting principles. Accordingly, the Company restated its consolidated financial statements for the year ended December 31, 2007 and the quarter ended September 30, 2007 to properly reflect the accrued interest credited F-73 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED) liability on its foreign denominated GICs and to properly reflect the functional currency of its operations in Ireland as of the respective date. As a result of the foregoing, the Company's net income for the year ended December 31, 2007 and the quarter ended September 30, 2007 increased by $49 million and $36 million, respectively. A summary of the effects of these restatements on the Company's consolidated financial statements is as set forth in the table below. See also Note 22, Quarterly Results of Operations (Unaudited).
SEPTEMBER 30, 2007 DECEMBER 31, 2007 -------------------------- -------------------------- AS PREVIOUSLY AS PREVIOUSLY REPORTED AS RESTATED REPORTED AS RESTATED ------------- ----------- ------------- ----------- (IN MILLIONS) ASSETS: Current income tax recoverable..... $ 148 $ 133 $ 91 $ 72 Deferred income tax assets......... $ 1,050 $ 1,049 $ 848 $ 846 Total assets....................... $130,928 $130,912 $128,582 $128,561 LIABILITIES: Policyholder account balances...... $ 34,233 $ 34,189 $ 33,871 $ 33,815 Total liabilities.................. $123,951 $123,907 $121,269 $121,213 STOCKHOLDERS' EQUITY: Retained earnings.................. $ 645 $ 681 $ 843 $ 892 Accumulated other comprehensive income (loss).................... $ (473) $ (481) $ (335) $ (349) Total stockholders' equity......... $ 6,977 $ 7,005 $ 7,313 $ 7,348 Total liabilities and stockholders' equity........................... $130,928 $130,912 $128,582 $128,561
FOR THE THREE MONTHS ENDED FOR THE YEAR ENDED SEPTEMBER 30, 2007 DECEMBER 31, 2007 --------------------------- --------------------------- AS PREVIOUSLY AS PREVIOUSLY REPORTED AS RESTATED REPORTED AS RESTATED ------------- ----------- ------------- ----------- (IN MILLIONS) REVENUES: Net investment gains (losses).......... $ (90) $ (48) $ (198) $ (142) Total revenues......................... $1,136 $1,178 $4,710 $4,766 EXPENSES: Interest credited to policyholder account balances.................... $ 327 $ 325 $1,304 $1,299 Other expenses......................... $ 327 $ 319 $1,455 $1,446 Total expenses......................... $ 910 $ 900 $3,737 $3,723 Income from continuing operations before provision for income tax............... $ 226 $ 278 $ 973 $1,043 Provision for income tax................. $ 72 $ 88 $ 282 $ 303 Income from continuing operations........ $ 154 $ 190 $ 691 $ 740 Net income............................... $ 154 $ 190 $ 695 $ 744
F-74 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 20) -- (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2007 --------------------------- AS PREVIOUSLY REPORTED AS RESTATED ------------- ----------- (IN MILLIONS) CASH FLOWS FROM OPERATING ACTIVITIES Net income............................................... $ 695 $ 744 Losses from sales of investments and businesses, net..... $ 201 $ 145 Interest credited to policyholder account balances....... $1,304 $1,299 Change in income tax payable............................. $ 287 $ 308 Change in other assets................................... $ 690 $ 681
21. SUBSEQUENT EVENT In October 2008, the Company received advances totaling $300 million from the Federal Home Loan Bank of Boston, which will be included in debt. In April 2008, MICC issued a surplus note with a face amount of $750 million and a discount of $7 million ($743 million) to MetLife Capital Trust X, an affiliate, with an interest rate of 8.595%. 22. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The unaudited quarterly results of operations for 2007 and 2006 are summarized in the table below:
THREE MONTHS ENDED --------------------------------------------------- (AS RESTATED, SEE NOTE 20) ---------------------------- MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, --------- -------- ------------- ------------ (IN MILLIONS) 2007 Total revenues........................ $1,097 $1,143 $1,178 $1,348 Total expenses........................ $ 903 $ 885 $ 900 $1,035 Income from continuing operations..... $ 152 $ 187 $ 190 $ 211 Income from discontinued operations, net of income tax................... $ 4 -- -- $ -- Net income............................ $ 156 $ 187 $ 190 $ 211
THREE MONTHS ENDED --------------------------------------------------- MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, --------- -------- ------------- ------------ (IN MILLIONS) 2006 Total revenues........................ $1,006 $1,068 $1,057 $975 Total expenses........................ $ 830 $ 796 $ 770 $885 Income from continuing operations..... $ 127 $ 191 $ 207 $ 72 Income from discontinued operations, net of income tax................... -- -- -- -- Net income............................ $ 127 $ 191 $ 207 $ 72
F-75 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) SCHEDULE I CONSOLIDATED SUMMARY OF INVESTMENTS -- OTHER THAN INVESTMENTS IN RELATED PARTIES DECEMBER 31, 2007 (IN MILLIONS)
AMOUNT AT COST OR ESTIMATED WHICH SHOWN ON AMORTIZED COST (1) FAIR VALUE BALANCE SHEET TYPE OF INVESTMENTS ------------------ ---------- -------------- Fixed Maturity Securities: Bonds: U.S. Treasury/agency securities.......... $ 3,976 $ 4,091 $ 4,091 State and political subdivision securities............................. 611 575 575 Foreign government securities............ 635 688 688 Public utilities......................... 2,546 2,500 2,500 All other corporate bonds................ 19,661 19,242 19,242 Mortgage-backed and asset-backed securities............................... 17,332 17,207 17,207 Redeemable preferred stock.................. 1,503 1,368 1,368 ------- ------- ------- Total fixed maturity securities.......... 46,264 45,671 45,671 ------- ------- ------- Equity Securities: Common stock: Banks, trust and insurance companies..... 1 1 1 Industrial, miscellaneous and all other.. 214 216 216 Non-redeemable preferred stock.............. 777 735 735 ------- ------- ------- Total equity securities.................. 992 952 952 ------- ------- ------- Mortgage and consumer loans................... 4,404 4,404 Policy loans.................................. 913 913 Real estate and real estate joint ventures.... 541 541 Other limited partnership interests........... 1,130 1,130 Short-term investments........................ 1,335 1,335 Other invested assets......................... 1,445 1,445 ------- ------- Total investments...................... $57,024 $56,391 ======= =======
- -------- (1) Cost or amortized cost for fixed maturity securities and mortgage and consumer loans represents original cost reduced by repayments, net valuation allowances and writedowns from other-than-temporary declines in value and adjusted for amortization of premiums or discounts; for equity securities, cost represents original cost reduced by writedowns from other-than-temporary declines in value; for real estate, cost represents original cost reduced by writedowns and adjusted for valuation allowances and depreciation; cost for real estate joint ventures and other limited partnership interests represents original cost reduced for other-than- temporary impairments or original cost adjusted for equity in earnings and distributions. F-76 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) SCHEDULE III CONSOLIDATED SUPPLEMENTARY INSURANCE INFORMATION DECEMBER 31, 2007, 2006 AND 2005 (IN MILLIONS)
DAC FUTURE POLICY POLICYHOLDER AND BENEFITS AND OTHER ACCOUNT UNEARNED SEGMENT VOBA POLICYHOLDER FUNDS BALANCES REVENUE (1) - ------- ------ ------------------ ------------ ----------- 2007 (As Restated, See Note 20) Individual............................... $4,930 $ 4,022 $20,100 $342 Institutional............................ 16 12,570 13,543 -- Corporate & Other........................ 2 4,761 172 1 ------ ------- ------- ---- $4,948 $21,353 $33,815 $343 ====== ======= ======= ==== 2006 Individual............................... $4,946 $ 3,769 $20,660 $260 Institutional............................ 165 12,895 14,496 3 Corporate & Other........................ -- 4,503 (57) -- ------ ------- ------- ---- $5,111 $21,167 $35,099 $263 ====== ======= ======= ==== 2005 Individual............................... $4,753 $ 3,452 $21,403 $141 Institutional............................ 161 11,880 16,460 1 Corporate & Other........................ -- 4,305 (23) -- ------ ------- ------- ---- $4,914 $19,637 $37,840 $142 ====== ======= ======= ====
- -------- (1) Amounts are included within the future policy benefits and other policyholder funds column. F-77 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) SCHEDULE III -- (CONTINUED) CONSOLIDATED SUPPLEMENTARY INSURANCE INFORMATION DECEMBER 31, 2007, 2006 AND 2005 (IN MILLIONS)
AMORTIZATION OF PREMIUM NET POLICYHOLDER DAC AND VOBA OTHER REVENUE AND INVESTMENT BENEFITS AND CHARGED TO OPERATING PREMIUMS WRITTEN SEGMENT POLICY CHARGES INCOME INTEREST CREDITED OTHER EXPENSES EXPENSES (1) (EXCLUDING LIFE) - ------- -------------- ---------- ----------------- --------------- ------------ ---------------- 2007 (As Restated, See Note 20) Individual............... $1,665 $1,090 $1,140 $717 $612 $-- Institutional............ 73 1,510 1,104 23 27 7 Corporate & Other........ 26 293 33 -- 67 25 ------ ------ ------ ---- ---- --- $1,764 $2,893 $2,277 $740 $706 $32 ====== ====== ====== ==== ==== === 2006 Individual............... $1,462 $ 985 $ 984 $481 $564 $-- Institutional............ 89 1,449 1,097 6 10 9 Corporate & Other........ 25 405 27 1 111 25 ------ ------ ------ ---- ---- --- $1,576 $2,839 $2,108 $488 $685 $34 ====== ====== ====== ==== ==== === 2005 (2) Individual............... $ 997 $ 530 $ 641 $287 $353 $-- Institutional............ 133 712 627 1 29 9 Corporate & Other........ 13 196 22 -- 8 13 ------ ------ ------ ---- ---- --- $1,143 $1,438 $1,290 $288 $390 $22 ====== ====== ====== ==== ==== ===
- -------- (1) Includes other expenses excluding amortization of DAC and VOBA charged to other expenses. (2) Includes six months of results for MetLife Insurance Company of Connecticut and twelve months of results for MLI-USA. F-78 METLIFE INSURANCE COMPANY OF CONNECTICUT (A Wholly-Owned Subsidiary of MetLife, Inc.) SCHEDULE IV CONSOLIDATED REINSURANCE DECEMBER 31, 2007, 2006 AND 2005 (IN MILLIONS)
% AMOUNT ASSUMED GROSS AMOUNT CEDED ASSUMED NET AMOUNT TO NET ------------ -------- ------- ---------- -------- 2007 Life insurance in-force............. $189,630 $152,943 $13,934 $50,621 27.5% ======== ======== ======= ======= Insurance premium Life insurance...................... $ 384 $ 82 $ 17 $ 319 5.3% Accident and health................. 270 236 -- 34 --% -------- -------- ------- ------- Total insurance premium........... $ 654 $ 318 $ 17 $ 353 4.8% ======== ======== ======= =======
% AMOUNT ASSUMED GROSS AMOUNT CEDED ASSUMED NET AMOUNT TO NET ------------ -------- ------- ---------- -------- 2006 Life insurance in-force............. $153,390 $119,281 $14,374 $48,483 29.6% ======== ======== ======= ======= Insurance premium Life insurance...................... $ 323 $ 72 $ 21 $ 272 7.7% Accident and health................. 276 240 -- 36 --% -------- -------- ------- ------- Total insurance premium........... $ 599 $ 312 $ 21 $ 308 6.8% ======== ======== ======= =======
% AMOUNT ASSUMED GROSS AMOUNT CEDED ASSUMED NET AMOUNT TO NET ------------ ------- ------- ---------- -------- 2005 (1) Life insurance in-force............. $126,362 $93,686 $16,921 $49,597 34.1% ======== ======= ======= ======= Insurance premium Life insurance...................... $ 269 $ 45 $ 38 $ 262 14.5% Accident and health................. 144 125 -- 19 --% -------- ------- ------- ------- Total insurance premium........... $ 413 $ 170 $ 38 $ 281 13.5% ======== ======= ======= =======
For the year ended December 31, 2007, reinsurance ceded and assumed included affiliated transactions of $32 million and $17 million, respectively. For the year ended December 31, 2006, both reinsurance ceded and assumed included affiliated transactions of $21 million. For the year ended December 31, 2005, reinsurance ceded and assumed included affiliated transactions of $12 million and $38 million, respectively. - -------- (1) Includes six months of results for MetLife Insurance Company of Connecticut and twelve months of results for MLI-USA. F-79 Effective on or about 04/30/2007, the Dreyfus Stock Index Fund of the Dreyfus Stock Index Fund, Inc. was replaced by the MetLife Stock Index Portfolio of the Metropolitan Series Fund, Inc. and is no longer available. UNIVERSAL ANNUITY ADVANTAGE UNIVERSAL SELECT ANNUITY STATEMENT OF ADDITIONAL INFORMATION METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES ISSUED BY METLIFE INSURANCE COMPANY OF CONNECTICUT ONE CITYPLACE HARTFORD, CONNECTICUT 06103-3415 MIC-Book 94-95 December 8, 2008 -----END PRIVACY-ENHANCED MESSAGE-----